/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/121105.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, November 5, 2012, Vol. 16, No. 308 Headlines 189 AVEC: Case Summary & 4 Unsecured Creditors 319-321 JEFFERSON: Case Summary & 12 Unsecured Creditors 38 STUDIOS: Former Chairman, Wells Fargo Sued by Rhode Island A123 SYSTEMS: Fisker Balks at Bid to Scrap Contract A123 SYSTEMS: Committee Formation Extended Due to Sandy AE BIOFUELS: Files 2011 Annual Report, Had $18.3-Mil. Loss ALT HOTEL: DiamondRock Has $71MM Settlement; Plan Confirmed AMERICAN AIRLINES: Settles Dispute With Sabre Over Travel Bookings AMERICAN AIRLINES: Calls Marathon Bid for Examiner Delay Tactic AMERICAN AIRLINES: Purchase of 787-823 Plane Approved AMERICAN AIRLINES: Seeks to Expand Skyworks Services BIG CYPRESS: Case Summary & 11 Unsecured Creditors BIONOVO INC.: Seeks Chapter 7 Liquidation BLACK PRESS: S&P Cuts CCR to 'B-' on Weak Operating Performance BLUE SPRINGS: Wants Plan Filing Exclusivity Extended to Feb. 14 BOMBARDIER RECREATIONAL: Moody's Affirms 'B1' CFR; Outlook Stable BOMBARDIER RECREATIONAL: S&P Affirms 'B+' CCR on Debt Refinancing BON-TON STORES: Amends Loan Agreement with Bank of America BUILDERS FIRSTSOURCE: Files Form 10-Q; Incurs $13.5MM Loss in Q3 CAESARS ENTERTAINMENT: Incurs $503.4 Million Net Loss in Q3 CASCADE AG: Has Interim Access to Cash Collateral Until Nov. 6 CASCADE AG: Seeks Final Order to Obtain Secured Loan from OPCB CELL THERAPEUTICS: Has $10.8 Million Net Loss in September CELL THERAPEUTICS: Inks Settlement With Former President CHRYSLER LLC: TRWE Escapes Defect Indemnity Suit CIF BARCELONETA: Case Summary & 20 Largest Unsecured Creditors CLEAN HARBORS: S&P Puts 'BB+' CCR on Watch on Acquisition Pact CLEARWIRE CORP: Mount Kellett Owns 7.7% of Class A Shares COMMONWEALTH BIOTECH: Fornova Claim Is Equitably Subordinated COMPETITIVE TECHNOLOGIES: Carl O'Connell Named President and CEO COUSINS INT'L: Case Summary & 20 Largest Unsecured Creditors CROWN MEDIA: Reports $11.5 Million Net Income in Third Quarter CROWN MEDIA: To Offset $700-Mil. of NOLs Against Taxable Income CROWN MEDIA: Hallmark Cards Owns 90.3% of Class A Shares DANA GAS: UAE Company Misses Payment on $920MM Islamic Bonds DANIEL MILES: Clawback Suit v. Landlord Survives Dismissal Bid DANIEL MILES: Clawback Suit v. Ex-Lover Survives Dismissal Bid DEMUZIO CAPITAL: Court Orders $3MM Payment Over Forex Fraud DAFFY'S INC: GA Keen to Market High-Fashion Discount Stores DEWEY & LEBOEUF: Creditors Want Ex-Partners Committee Dissolved DIGITAL DOMAIN: Faces Questions Over Bankruptcy Settlement DUNES MOTEL: Case Summary & 2 Largest Unsecured Creditors EAST COAST: Case Summary & 17 Unsecured Creditors EASY FINANCING: Case Summary & 20 Largest Unsecured Creditors EDIETS.COM INC: Signs Definitive Merger Agreement with ASTV EDISON MISSION: Incurs $162 Million Net Loss in Third Quarter EDISON MISSION: May File for Bankruptcy Protection ELPIDA MEMORY: Tokyo District Court Picks Micron as Buyer EME HOMER: Incurs $180 Million Net Loss in Third Quarter FIRST FINANCIAL: Closing of Sale Agreement Extended to Nov. 14 FIRST MARINER: Reports $7.9 Million Net Income in Third Quarter GARLOCK SEALING: Wants Asbestos Claimants Barred From Injury Case GATEHOUSE MEDIA: Incurs $9.4 Million Net Loss in Third Quarter GENERAL MOTORS: Dist. Court Rejects Employee's Retaliation Claim GRAY TELEVISION: Reports $15.8 Million Net Income in 3rd Quarter GROUPON INC: SEC Completes Review Over Financial Restatement GUITAMMER COMPANY: Had $261,600 Net Loss in Third Quarter HARVARD ANNE: Case Summary & 2 Unsecured Creditors HOSTESS BRANDS: Judge Approves Settlements With Seven Unions IMPERIAL CAPITAL: FDIC Appeal on Directors Probe Ruling Nixed INDIANAPOLIS DOWNS: Judge Okays $500-Mil. Sale to Rival Centaur INFUSYSTEM HOLDINGS: Leap Tide Discloses 6.3% Equity Stake INSPIRATION BIOPHARMACEUTICALS: Seeks to Sell Assets in Ch. 11 INVESTOR 2006: Case Summary & 9 Unsecured Creditors J&J HOLDINGS: Case Summary & 20 Largest Unsecured Creditors JEFFERSON 28K: Case Summary & 2 Unsecured Creditors JERRY'S NUGGET: Can Use Cash Collateral Thru Entry of Final Order LE-NATURE'S INC: Marshall Files $184MM Suit Over Inflated Price LEHMAN BROTHERS: Demands Giants' Compliance With Subpoenas LEHMAN BROTHERS: LBI Proposes Claims Settlement Procedures LEHMAN BROTHERS: LBI Assets at $25.955 Billion as of Sept. 30 LEHMAN BROTHERS: Has $14.3 Billion in Restricted Cash at Sept. 30 MG FORGE: Case Summary & 20 Largest Unsecured Creditors MGM RESORTS: Incurs $181.1 Million Net Loss in Third Quarter MICROVISION INC: Amends Last Year's 10-K to Include Opinion MILLER BROS: Case Summary & 20 Largest Unsecured Creditors MISSION NEWENERGY: Grant Thornton Raises Going Concern Doubt MISSION WEST: To Liquidate, Sell Properties to DivcoWest, TPG NAVISTAR INTERNATIONAL: To Close Garland Truck Plant NEWPAGE CORP: Asks Judge's Approval for $850MM Exit Financing NORTHERN TIER: Moody's Rates $275MM Senior Secured Notes 'B1' NORTHERN TIER: S&P Gives 'BB-' Rating on New Senior Secured Notes NOVA FINANCIAL: Capital Woes Spur Chapter 7 Liquidation ORIENTAL TRADING: Berkshire to Buy Toy Retailer for $500MM PACER MANAGEMENT: Wants Access to Cash Collateral Until Jan. 11 PEREGRINE FINANCIAL: Chapter 7 Trustee to Subpoena Auditor PITTSBURGH CORNING: Prices $250 Million of Senior Unsecured Notes POWERWAVE TECHNOLOGIES: John Clendenin to Retire as Director QUANTUM CORP: Peter Feld Discloses 15.9% Equity Stake QUANTUM CORP: Prices $60-Mil. of 4.50% Convertible Senior Notes REALOGY CORP: Incurs $33 Million Net Loss in Third Quarter RONNIE SWIFT: Court Rejects Plan That Protects Non-Debtor RESURRECTION CATHOLIC: Case Summary & 20 Largest Unsec. Creditors RONALD PHILLIPS: Case Summary & 20 Largest Unsecured Creditors ROOMSTORE INC: Sleepy's, Longroad Vie for Mattress Discounters SAN BERNARDINO: Says It Chopped $29 Million From Deficit SAN BERNARDINO, CA: To Defer CalPERS Payments Amid Ch. 9 Woes SHAMROCK-HOSTMARK: Plan Filing Period Extended Until Jan. 31 SHARP CORP: Faces Material Doubt on Survival After Wider Loss SINCLAIR BROADCAST: Posts $26.3-Mil. Net Income in 3rd Quarter SMILE BRANDS: Moody's Cuts CFR/PDR to 'B3'; Outlook Negative SOLYNDRA LLC: Approval of Bankruptcy Plan Faces Appeal by IRS SPEIGHT FAMILY: Case Summary & 2 Unsecured Creditors SPORTS AUTHORITY: Moody's Rates $630MM Sr. Sec. Term Loan 'B3' SUBMARINA, INC: Case Summary & 20 Largest Unsecured Creditors SURF'S WILMINGTON: Case Summary & 19 Largest Unsecured Creditors T3 MOTION: Receives Delisting Notice From NYSE MKT THINKFILM LLC: Judge Denies Bid to Withdraw Film Library Suit THERAPEUTIC SOLUTIONS: PLS CPA Raises Going Concern Doubt TITAN PHARMACEUTICALS: Files New Drug Application for Probuphine TK1 INVESTMENTS: Case Summary & 2 Unsecured Creditors TONI BRAXTON: Case Trustee Sues Ex-Husband to Recoup $53,490 TRANS-LUX CORP: Reports $739,000 Net Income in Second Quarter USEC INC: Reports $4.5 Million Net Income in Third Quarter VALENCE TECHNOLOGY: Seeks 60-Day Plan-Filing Extension VELTEX CORPORATION: Awarded Damages in Utah State Court Matter VERTIS COMMUNICATIONS: Wins Court OK for Auction Procedures WARNACO GROUP: Moody's Reviews 'Ba1' CFR/PDR for Downgrade WESTINGHOUSE SOLAR: Had $2.2-Million Net Loss in Third Quarter WESTMORELAND COAL: S&P Raises CCR to 'B-' on Improved Liquidity WINN PROFESSIONAL: Case Summary & 12 Unsecured Creditors XEBEX CORPORATION: Case Summary & 20 Largest Unsecured Creditors * 2 Faegre Baker Lawyers Appointed to Bankruptcy Bench * Canada August Bankruptcies Rise 4.5%, Superintendent Reports * Global Regulators to Cut List of Too-Big-To-Fail Banks to 28 * Jones Day, K&L Gates Attorneys Join Barnes & Thornburg * BOND PRICING: For Week From Oct. 29 to Nov. 2, 2012 ********* 189 AVEC: Case Summary & 4 Unsecured Creditors ---------------------------------------------- Debtor: 189 Avec Moi LLC P.O. Box 1225 Seaford, NY 11783 Bankruptcy Case No.: 12-14415 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Robert E. Gerber Debtor's Counsel: Jonathan S. Pasternak, Esq. RATTET PASTERNAK, LLP 550 Mamaroneck Avenue, Suite 510 Harrison, NY 10528 Tel: (914) 381-7400 Fax: (914) 381-7406 E-mail: jsp@rattetlaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nysb12-14415.pdf The petition was signed by John Ruha, managing member. 319-321 JEFFERSON: Case Summary & 12 Unsecured Creditors -------------------------------------------------------- Debtor: 319-321 Jefferson Street, LLC 321 S. Jefferson St., 3rd Floor Chicago, IL 60661 Bankruptcy Case No.: 12-42529 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Jack B. Schmetterer Debtor's Counsel: Robert W. Glantz, Esq. SHAW FISHMAN GLANTZ & TOWBIN LLC 321 N. Clark St., Suite 800 Chicago, IL 60654 Tel: (312) 541-0151 Fax: (312) 980-3888 E-mail: rglantz@shawfishman.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 12 unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb12-42529.pdf The petition was signed by Thomas V. Economou, manager. 38 STUDIOS: Former Chairman, Wells Fargo Sued by Rhode Island ------------------------------------------------------------- Don Jeffrey at Bloomberg News reports the Rhode Island Economic Development Corp. sued Wells Fargo & Co., Barclays Plc and Curt Schilling, the former chairman of video-game maker 38 Studios LLC, claiming that undisclosed risks led to the bankruptcy of the company. The banks and Mr. Schilling, the former Boston Red Sox pitcher who founded 38 Studios, didn't disclose to the state's economic development organization the negative information about the company's financial projections and business plan, according to a filing Nov. 1 in Rhode Island Superior Court. "38 Studios failed because of risks that had not been disclosed to the EDC board, but were or should have been known by" the defendants, the state said in the complaint. The EDC board in 2010 approved the issuance of $75 million in bonds to finance a loan to allow 38 Studios to move to Providence, Rhode Island, from Massachusetts and complete a multiplayer online game called Copernicus. The company hadn't yet published a video game, according to the complaint. The board's advisers mentioned the risks and the board concluded that the "merits and benefits of the transaction were sufficient" to justify taking them, the EDC said. Those risks included the company's lack of a track record and its ability to finish developing the game on time and within its budget, according to the complaint. Placement Agents "Even with the loan from the EDC, 38 Studios was undercapitalized by many millions of dollars and would not have nearly enough money to relocate to Rhode Island and complete Copernicus," according to the complaint. The report notes that Wells Fargo and Barclays were the placement agents for the $75 million loan. "We are reviewing this matter and have no comment at this time," Dana Obrist, a spokeswoman for San Francisco-based Wells Fargo, said in an e-mail. Mark Lane, a spokesman for London based Barclays, declined to comment. Katie Leighton, a spokeswoman for Schilling, didn't respond to messages seeking comment on the suit. "For your tax dollars to be squandered is unacceptable," Rhode Island Governor Lincoln Chafee said in a statement Nov. 1. "The board's legal action was taken to rectify a grave injustice put upon the people of Rhode Island." The Bloomberg report discloses that among those also sued were First Southwest Co., the EDC's financial adviser for the loan; Starr Indemnity & Liability Co., an insurer for 38 Studios; Adler Pollock & Sheehan, the law firm that represented the board; Keith Stokes, the EDC's former executive director; and other officers and directors of 38. The EDC and Bank of New York Mellon Trust Co. won court approval in August to take possession of 38 Studios' assets. About 38 Studios 38 Studios LLC, a video-game developer founded by former Boston Red Sox pitcher Curt Schilling, filed for liquidation on June 8, 2012, without attempting to reorganize. Although based in Providence, Rhode Island, the company filed the Chapter 7 petition in Delaware (Case No. 12-11743). A123 SYSTEMS: Fisker Balks at Bid to Scrap Contract --------------------------------------------------- Patrick Fitzgerald at Dow Jones' Daily Bankruptcy Review reports that electric car maker Fisker Automotive Inc. says recently bankrupt battery maker A123 Systems Inc.'s bid to scrap their contract will "severely harm" its business. Jamie Santo at Bankruptcy Law360 reports that Fisker on Tuesday protested A123 Systems' request to reject its contract with the electric car company, saying the groundless motion would hurt Fisker while burdening the bankrupt battery maker's estate with a claim that could top $100 million. About A123 Systems Based in Waltham, Massachusetts, A123 Systems Inc. designs, develops, manufactures and sells advanced rechargeable lithium-ion batteries and battery systems and provides research and development services to government agencies and commercial customers. A123 is the recipient of a $249 million federal grant from the Obama administration. Pre-bankruptcy, A123 had an agreement to sell an 80% stake to Chinese auto-parts maker Wanxiang Group Corp. U.S. lawmakers opposed the deal over concerns on the transfer of American taxpayer dollars and technology to China. A123 didn't make a $2.7 million payment due Oct. 15 on $143.75 million in 3.75% convertible subordinated notes due 2016. A123 and U.S. affiliates, A123 Securities Corporation and Grid Storage Holdings LLC, sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 12-12859 to 12-12861) on Oct. 16, 2012, with a deal to sell its auto-business assets to Johnson Controls Inc. The deal with JCI is valued at $125 million, and subject to higher offers at a bankruptcy auction. A123 disclosed assets of $459.8 million and liabilities totaling $376 million. Debt includes $143.8 million on 3.75% convertible subordinated notes. Other liabilities include $22.5 million on a bridge loan owing to Wanziang. About $33 million is owed to trade suppliers. The Hon. Kevin J. Carey presides over the case. Lawyers at Richards, Layton & Finger, P.A., and Latham & Watkins LLP serve as the Debtors' counsel. Lazard Freres & Co. LLC acts as the Debtors' financial advisors, while Alvarez & Marsal serves as restructuring advisors. Logan & Company Inc. serves as the Debtors' claims and noticing agent. Wanxiang America Corporation and Wanxiang Clean Energy USA Corp. are represented in the case by lawyers at Young Conaway Stargatt & Taylor, LLP, and Sidley Austin LLP. A123 SYSTEMS: Committee Formation Extended Due to Sandy ------------------------------------------------------- The U.S. Trustee, the branch of the Justice Department that ensures bankruptcy rules are followed, extended the period for forming a committee of unsecured creditors in the bankruptcy case of A123 Systems Inc. due to Hurricane Sandy. The superstorm that wreaked havoc on the East Coast, leaving millions of people without power and others without homes, forced the U.S. Bankruptcy Court in Wilmington, Delaware, to be closed for the first two days of last week. Any unsecured creditor interested to serve on the official committee was required respond to a questionnaire Nov. 1. Chosen creditors were to be notified Nov. 2 and can listen to a telephonic briefing the same day. About A123 Systems Based in Waltham, Massachusetts, A123 Systems Inc. designs, develops, manufactures and sells advanced rechargeable lithium-ion batteries and battery systems and provides research and development services to government agencies and commercial customers. A123 is the recipient of a $249 million federal grant from the Obama administration. Pre-bankruptcy, A123 had an agreement to sell an 80% stake to Chinese auto-parts maker Wanxiang Group Corp. U.S. lawmakers opposed the deal over concerns on the transfer of American taxpayer dollars and technology to China. A123 didn't make a $2.7 million payment due Oct. 15 on $143.75 million in 3.75% convertible subordinated notes due 2016. A123 and U.S. affiliates, A123 Securities Corporation and Grid Storage Holdings LLC, sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 12-12859 to 12-12861) on Oct. 16, 2012, with a deal to sell its auto-business assets to Johnson Controls Inc. The deal with JCI is valued at $125 million, and subject to higher offers at a bankruptcy auction. A123 disclosed assets of $459.8 million and liabilities totaling $376 million. Debt includes $143.8 million on 3.75% convertible subordinated notes. Other liabilities include $22.5 million on a bridge loan owing to Wanziang. About $33 million is owed to trade suppliers. The Hon. Kevin J. Carey presides over the case. Lawyers at Richards, Layton & Finger, P.A., and Latham & Watkins LLP serve as the Debtors' counsel. Lazard Freres & Co. LLC acts as the Debtors' financial advisors, while Alvarez & Marsal serves as restructuring advisors. Logan & Company Inc. serves as the Debtors' claims and noticing agent. Wanxiang America Corporation and Wanxiang Clean Energy USA Corp. are represented in the case by lawyers at Young Conaway Stargatt & Taylor, LLP, and Sidley Austin LLP. AE BIOFUELS: Files 2011 Annual Report, Had $18.3-Mil. Loss ---------------------------------------------------------- Aemetis, inc., formerly known as AE Biofuels Inc., filed with the U.S. Securities and Exchange Commission its 2011 annual report and its quarterly reports for the first and second quarter of 2012. Aemetis disclosed a net loss of $18.29 million on $141.85 million of revenue for the year ended Dec. 31, 2011, compared with a net loss of $8.56 million on $8.13 million of revenue during the prior year. "The construction, repairs, and upgrades of our ethanol and biodiesel plants, along with working capital, were financed in part through debt facilities. We may need to seek additional financing to continue or grow our operations. However, our recent financial performance and generally unfavorable credit market conditions may make it difficult to obtain necessary capital or additional debt financing on commercially viable terms or at all. If we are unable to pay our debt we may be forced to delay or cancel capital expenditures, sell assets, restructure our indebtedness, seek additional financing, or file for bankruptcy," the Company said in its 2011 Form 10-K. A copy of the 2011 Annual Report is available at http://is.gd/xErkPu The Company incurred a net loss of $8.36 million on $44.19 million of revenue for the three months ended March 31, 2012, compared with a net loss of $4.26 million on $738,469 of revenue for the same period during the prior year. A copy of the Q1 Form 10-Q is available for free at http://is.gd/AJeAbj The Company reported a net loss of $18.11 million on $88.47 million of revenue for the six months ended June 30, 2012, compared with a net loss of $10.63 million on $27.99 million of revenue for the same period during the prior year. For the three months ended June 30, 2012, the Company reported a net loss of $9.74 million on $44.27 million of revenue, in comparison with a net loss of $6.36 million on $27.25 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed $24.68 million in total assets, $62.10 million in total liabilities and a $37.41 million total stockholders' deficit. A copy of the Q2 Form 10-Q is available for free at http://is.gd/iVPcuu About AE Biofuels AE Biofuels, Inc. (OTC BB: AEBF) -- http://www.aebiofuels.com/-- is a biofuels company based in Cupertino, California, developing sustainable solutions to address the world's renewable energy needs. The Company is commercializing its patent-pending next- generation cellulosic ethanol technology that enables the production of biofuels from both non-food and traditional feedstocks. Its wholly-owned Universal Biofuels subsidiary built and operates a nameplate 50 million gallon per year biodiesel production facility on the east coast of India. BDO Seidman, LLP, in San Jose, Calif., expressed substantial doubt about AE Biofuels' ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has incurred recurring losses, and has a working capital deficit and total stockholders' deficit as of Dec. 31, 2009. McGladrey LLP, in Des Moines, Iowa, did not issue a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2011. ALT HOTEL: DiamondRock Has $71MM Settlement; Plan Confirmed ----------------------------------------------------------- DiamondRock Hospitality Company announced that it reached a settlement of the bankruptcy and related litigation involving the Allerton Hotel. "This settlement allows DiamondRock to receive a meaningful return on its original distressed debt investment in the Allerton Hotel with a combination of a cash payment and restructured mortgage loan totaling $71 million. We look forward to generating a strong cash yield from our investment in the Allerton Hotel mortgage debt. In addition, we are optimistic that the current owners will successfully restore the hotel to its historic place among the hotels on Magnificent Mile," stated Mark W. Brugger, Chief Executive Officer of DiamondRock Hospitality Company. In exchange for resolving its objection to the plan of reorganization filed by affiliates of Petra Capital Management, DiamondRock will receive a $5 million principal payment and will restructure the debt it currently holds into a $66 million senior mortgage loan with a four-year term (plus a one year extension option), bearing interest at 5.5%. The settlement, which has been approved by the United States Bankruptcy Court in the Northern District of Illinois, is subject to certain closing conditions. If these conditions are not met by January 18, 2013, including the payment of $5 million, then the Allerton Hotel will be sold pursuant to an auction in accordance with the Bankruptcy Code, in which case the Company would have a $71 million claim in the sale process. In 2010 the Company paid approximately $60 million for this distressed debt. The interest income and legal fees related to the Company's interest in the Allerton hotel have been excluded, and will continue to be excluded, from its reported Adjusted EBITDA and Adjusted FFO during 2012. As of September 7, 2012, the Company's net book value of the mortgage note receivable was approximately $54.2 million. The Company intends to include the interest income from the note in the Company's reported Adjusted EBITDA and Adjusted FFO starting on January 1, 2013. Chapter 11 Plan Michael Bathon at Bloomberg News reports that ALT Hotel LLC, an affiliate of Petra Capital Management LLC, won bankruptcy court approval of its restructuring plan that pays unsecured creditors in full over time after resolving DiamondRock's objection, according to court documents filed Oct. 29. The settlement provided that under the plan DiamondRock will get $5 million payment and will restructure its debt into a $66 million senior mortgage loan with a four-year term bearing interest at 5.5%, with a one-year extension option, according to the statement. Eric Hornbeck at Bankruptcy Law360 reports that Petra Capital and DiamondRock Hospitality settled their loan repayment dispute in Illinois bankruptcy court Monday over the landmark Allerton Hotel in downtown Chicago. Bankruptcy Law360 says the deal allows Petra affiliate ALT Hotel LLC to retain control of the 25-story, 443-room Allerton Hotel on Chicago's Magnificent Mile, according to bankruptcy court filings. Petra affiliates held a $10 million junior loan on the property. About DiamondRock Hospitality DiamondRock Hospitality Company -? http://www.drhc.com/-- is a self-advised real estate investment trust that is an owner of premium hotel properties. DiamondRock owns 20 hotels with 9,600 guestrooms. About ALT Hotel LLC ALT Hotel, LLC's sole asset is the Allerton Hotel located in the "Magnificent Mile" area of Chicago. The Hotel is managed by Kokua Hospitality, LLC, pursuant to a Hotel Management Agreement, dated Nov. 9, 2006. Kokua is the exclusive manager and operator of the Hotel, and receives management fees for its services, with the amount of such fees directly linked to the annual performance of the Hotel. Hotel Allerton Mezz, LLC, is the sole member of ALT Hotel. ALT Hotel filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 11-19401) on May 5, 2011. Judge A. Benjamin Goldgar presides over the case. Neal L. Wolf, Esq., Dean C. Gramlich, Esq., and Jordan M. Litwin, Esq., at Neal Wolf & Associates, LLC, in Chicago, Illinois, serve as bankruptcy counsel to the Debtor. In its petition, the Debtor estimated $100 million to $500 million in assets and $50 million to $100 million in debts. FTI Consulting serves as the Debtor's financial advisors. Affiliate PETRA Fund REIT Corp. sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-15500) on Oct. 20, 2010. AMERICAN AIRLINES: Settles Dispute With Sabre Over Travel Bookings ------------------------------------------------------------------ Sabre Holdings and American Airlines, Inc., have settled their disputes and have renewed their current distribution agreement for multiple years. American has also agreed to negotiate with Sabre for additional technology services in the future. As part of the settlement, American Airlines will receive a monetary payment from Sabre. American will continue pursuing its direct connect initiative. Additional information will be announced at a later date. Terms of the settlement and distribution agreements require review and approval by the court presiding over AMR Corporation's restructuring procedures. Michael Bathon at Bloomberg News reports that Sabre Holdings is the flight data and reservation business that American spun off in 2000 and later accused of trying to crush competition from its former parent. According to Bloomberg, the airline will receive an unspecified sum of money from Sabre. The settlement comes one week into the Fort Worth, Texas, state court jury trial of a lawsuit in which American claimed Sabre units doubled fees for displaying the airline's data on its system, suppressed that data and organized a boycott to punish the carrier for trying to develop a new data and reservation system. The report relates that created by American in 1960 and spun off in 2000, Southlake, Texas-based Sabre operates the world's most extensive flight data and reservations network, linking more than 350,000 travel agents to more than 400 airlines through its global distribution system, or GDS, according to its website. It also runs the online bookings site Travelocity. Travel agent sales of American plane tickets through Sabre's system comprised the carrier's largest non-direct source of bookings, accounting for more than $7.7 billion in revenue in 2010, according to a January 2012 court filing by the airline. The settlement requires approval from the judge overseeing that case, according to Nov. 1 statement. The case is American Airlines Inc. v. Sabre Inc., 067-249214-10, Tarrant County, Texas, District Court for the 67th Judicial District. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. AMR's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN AIRLINES: Calls Marathon Bid for Examiner Delay Tactic --------------------------------------------------------------- David McLaughlin at Bloomberg News reports that AMR Corp., the airline restructuring in bankruptcy, urged a judge to deny a request by Marathon Asset Management LP for a court-ordered investigation into an aircraft deal, saying it's an "improper litigation tactic." According to the report, the hedge fund is trying to delay AMR's reorganization efforts and approval of a proposed settlement related to aircraft financing, the parent of American Airlines said in a filing Nov. 1 in U.S. Bankruptcy Court in Manhattan. "The appointment of an examiner is unnecessary and inappropriate," the carrier said, accusing Marathon of raising "baseless allegations and conjecture." The report relates that Marathon wants an examiner to investigate a move by American Airlines before its bankruptcy filing to assume $2.26 billion in debt American Eagle owed to lenders in exchange for regional jets. The hedge fund says there are "serious questions" about whether American received fair value in exchange for incurring the debt. The Bloomberg report discloses that AMR said it conducted "a thorough and independent investigation" of the transaction with American Eagle and that an examiner would duplicate that review. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. AMR's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN AIRLINES: Purchase of 787-823 Plane Approved ----------------------------------------------------- Judge Sean Lane gave American Airlines Inc. the go-signal to purchase from The Boeing Co. a Boeing 737-823 bearing U.S. Registration No. N906NN, and to implement a sale and simultaneous leaseback of the aircraft with International Lease Finance Corp. Since its bankruptcy filing, American Airlines has sought and obtained court approval to purchase almost 40 aircraft from Boeing and enter into sale and leaseback transactions with respect to the purchased aircraft. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. AMR's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN AIRLINES: Seeks to Expand Skyworks Services ---------------------------------------------------- AMR Corp. filed a supplemental application to expand the scope of services of SkyWorks Capital, LLC. AMR requested that the firm also provide advisory services in connection with American Airlines Inc.'s desire to pursue a regional jet aircraft order, and obtain manufacturer financing or backstop financing in connection with the order pursuant to an engagement agreement between the airline and SkyWorks dated October 22, 2012. The agreement can be accessed for free at http://bankrupt.com/misc/AMR_AgreementSCLLC102212.pdf A court hearing to consider approval of the application is scheduled for November 8. Objections are due by November 1. 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). BIG CYPRESS: Case Summary & 11 Unsecured Creditors -------------------------------------------------- Debtor: Big Cypress Asset Management, LLC dba Waters Car Spa 5821 Silver Moon Avenue Tampa, FL 33625 Bankruptcy Case No.: 12-16264 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Buddy D. Ford, Esq. BUDDY D. FORD, P.A. 115 N. MacDill Avenue Tampa, FL 33609-1521 Tel: (813) 877-4669 Fax: (813) 877-5543 E-mail: Buddy@tampaesq.com Scheduled Assets: $697,018 Scheduled Liabilities: $1,670,397 A copy of the Company's list of its 11 unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb12-16264.pdf The petition was signed by Todd R. Palmer, managing member. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Palmer, Todd & Keri 12-16265 10/26/12 BIONOVO INC.: Seeks Chapter 7 Liquidation ----------------------------------------- BankruptcyData.com reports that Bionovo, Inc., filed for Chapter 7 bankruptcy (Bankr. N.D. Calif. Case No. 12-48725). The Company is represented by John W. Lucas of Pachulski Stang Ziehl & Jones. On March 9, 2012, the Company announced that it reduced its workforce by over 90%, leaving just five employees. In its most recent 10-Q filed with the SEC, Bionovo explained, "The Company has experienced and continues to experience operating losses and negative cash flows from operations, as well as an ongoing requirement for substantial additional capital investment. In order to continue as a going concern, the Company must obtain additional financing urgently . . . If the Company is not successful in its efforts to raise additional funds in the near term, the Company may be required to sell its capital equipment at a significant discount or discontinue operations altogether." Bionovo operates as a late stage clinical drug discovery and development company focusing on women's health and cancer. BLACK PRESS: S&P Cuts CCR to 'B-' on Weak Operating Performance --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Victoria, B.C.-based Black Press Ltd. to 'B-' from 'B'. The outlook is negative. "We base the downgrade on our view that Black Press' operating performance will remain weak in the medium term due to difficult industry fundamentals. While revenue remained largely flat for the six months ended Aug. 31, 2012, compared with the same period last year, reported EBITDA was down 6.3% during this period. Given the lackluster economy and declining newspaper print advertising sales, we expect the company's performance to remain sluggish for the remainder of fiscal 2013 (ending Feb. 28, 2013). Furthermore, Black Press faces refinancing risk with its senior secured bank facilities maturing in August 2013 and senior subordinated notes maturing in February 2014," S&P said. "At the same time, we revised our recovery rating on the company's senior secured bank debt to '1' from '2', and affirmed our 'B+' issue-level rating (two notches above the corporate credit rating) on the debt. A '1' recovery rating indicates our expectation of very high (90%-100%) recovery in the event of default, in contrast to a '2' recovery rating, which indicates our expectation of substantial (70%-90%) recovery. We revised the revised recovery rating based on our view of improved recovery prospects for the senior secured debt given Black Press' continued repayment of the debt," S&P said. Rationale "The ratings on Black Press reflect Standard & Poor's assessment of the company's vulnerable business risk profile and highly leveraged financial risk profile (as our criteria define the terms). We base our business risk assessment on the company's weak operating performance, declining organic revenue base, and lack of revenue diversification outside of the newspaper publishing industry. We believe the industry faces long-term secular pressures related to market share erosion toward online and other forms of advertising. Partially offsetting these business risk factors, we believe, is the company's solid market position within several of its regions. Our financial risk assessment is based on Black Press' aggressive financial policy, weak credit protection measures, high debt burden, and tight leverage covenant cushion," S&P said. "Black Press has followed a clustering strategy with its portfolio of newspapers. Western Canada is the company's core geographic market, generating 71% of revenue in the six months ended Aug. 31, 2012, with Ohio and Washington State making up the balance. Black Press' revenue declined 0.9% in the six months ended Aug. 31, 2012, compared with the same period in fiscal 2012, largely because of lower advertising sales and reduced printing revenue, partially offset by the contribution from U.S. acquisitions and favorable foreign exchange. We believe the company's key source of revenue, newspaper print advertising sales, will remain soft compared with historical performance. The reported EBITDA margin declined to 19.6% in the first-half fiscal 2013 compared with 20.7% for the same period the year before," S&P said. S&P's base case scenario for Black Press in fiscal 2013 expects: * Revenue to decline on an organic basis in the low-single-digit percent area due largely to lower advertising sales; * Margins to be pressured from the expected decline in revenue combined with the company's relatively high fixed-cost base; * Newsprint costs to have no significant impact on margins this year; and * Free cash flow to remain sufficient to support term loan amortization. "While Black Press' debt balance has declined this year from scheduled amortization payments and the cash flow sweep, EBITDA also declined resulting in flat-to-weaker credit protection measures year-over-year. Adjusted debt to EBITDA of 5.0x in the 12 months ended Aug. 31, 2012, is unchanged year-over-year; while EBITDA interest coverage weakened to about 2.2x during this period from 2.9x for the 12 months ended Aug. 31, 2011, due to lower EBITDA and higher interest costs. We expect credit measures to remain in line with the ratings category in the next year," S&P said. Liquidity S&P believes Black Press has less-than-adequate liquidity based on refinancing risk and the company's tight leverage covenant cushion. Relevant expectations and assumptions in its assessment of Black Press' liquidity profile are: * Its sources of liquidity are free cash flow and cash. * The company was compliant with its financial covenants at Aug. 31, 2012, including a maximum 4.75x debt-to-EBITDA ratio and a minimum 2.00x EBITDA interest coverage ratio. However, compliance with the leverage covenant would not have survived a 15% drop in EBITDA at Aug. 31, which is the minimum required for S&P's definition of adequate liquidity. * S&P believes Black Press will generate sufficient cash flow in fiscal 2013 to support term loan amortization and capital expenditures," S&P said. * Black Press is subject to a cash flow sweep (as defined in the credit agreement) as long as debt to EBITDA exceeds 3.75x, which has resulted in debt repayment above the scheduled amortization. * The company faces refinancing risk as its senior secured bank facilities mature in August 2013 and senior subordinated notes mature in February 2014. Recovery Analysis S&P rates Black Press' senior secured bank debt 'B+' (two notches above the corporate credit rating on the company), with a '1' recovery rating indicating its expectation of very high (90%-100%) recovery in the event of default. Outlook "The negative outlook reflects our expectation that we could lower the ratings on Black Press in the near term if the company fails to address its refinancing risk. In addition, we could consider lowering our ratings on Black Press if operating performance weakens more than we expect, if adjusted debt to EBITDA is above 6x, or if there is less than a 10% EBITDA cushion within the financial covenants. We could revise the outlook to stable after completion of the refinancing for the company's debt coming due in the next 18 months, as well as if the company demonstrates sustainable improvement in its operating performance, including revenue and margin stability, which we expect would result in adequate covenant cushion with continued debt repayment," S&P said. Black Press is a private company and does not release financial information publicly. Ratings List To From Black Press Ltd. Corporate credit rating B-/Negative/-- B/Negative/-- Ratings Affirmed/ Recovery Rating Revised To From Black Press Group Ltd. Senior secured debt B+ B+ Recovery rating 1 2 Black Press U.S. Partnership Senior secured debt B+ B+ Recovery rating 1 2 BLUE SPRINGS: Wants Plan Filing Exclusivity Extended to Feb. 14 --------------------------------------------------------------- Blue Springs Ford Sales, Inc., asks the U.S. Bankruptcy Court for the District of Delaware to further extend its exclusive periods to file and solicit acceptances of a Chapter 11 plan until Feb. 14, 2013, and April 15, 2013, respectively. In its request to extend the plan filing period beyond Nov. 16, 2012, the Debtor says it needs to accommodate the review and, if necessary, the resolution of claims filed in order that a plan of reorganization may take all timely and proper claims into consideration. The final date for all creditors to file proofs of claim is Nov. 16, 2012, which is the same date as the current exclusive filing period. In addition, the Debtor says it has accomplished a significant amount in the short time since the Petition Date to lay the foundation necessary for a viable and successful plan of reorganization. Further, the Debtor says it has paid and continues to pay its post-petition expenses as they become due and adequate cash and lines of credit are in place to pay administrative claims in the future. Blue Springs Ford Blue Springs Ford Sales, Inc. -- http://www.bluespringsford.com/ -- is a Ford dealer, serving Blue Springs in Missouri. A jury verdict assessing actual damages of $171,500 and punitive damages in the amount of $1.75 million (54 times the actual damages) prompted Blue Springs Ford to seek Chapter 11 protection. The judgment was on account of a suit filed by a customer in Circuit Court of Jackson County, Missouri, under a variety of legal claims, including, but not limited to, the company's alleged failure to adequately disclose a full detailed vehicle history report in connection with a sale of a used Ford. Blue Springs Ford filed a Chapter 11 petition (Bankr. D. Del. Case No. 12-10982) on March 21, 2012, listing $10 million to $50 million in assets and debts. Christopher A. Ward, Esq., at Polsinelli Shughart PC, serves as the Debtor's counsel. Donlin Recano & Company Inc. serves as the Debtor's claims agent. The petition was signed by Robert C. Balderston, president. Delaware Bankruptcy Judge Mary F. Walrath in a March 28 order transferred the case's venue following an oral motion by the judgment, creditors Kimberly and Michael von David, at a March 23 hearing. The case was transferred to the U.S. Bankruptcy Court Western District of Missouri Court (Case No. 12-41176) and assigned to the Hon. Jerry W. Venters. BOMBARDIER RECREATIONAL: Moody's Affirms 'B1' CFR; Outlook Stable ----------------------------------------------------------------- Moody's Investors Service affirmed Bombardier Recreational Products Inc.'s ("BRP") B1 corporate family and probability of default ratings, Ba1 senior secured revolving credit facility rating, and assigned a B1 rating to BRP's proposed senior secured term loan. Proceeds from the new $1.05 billion term loan will be used to refinance $675 million of existing term loans and pay dividends of $375 million to its private owners ($200 million at close and $175 million in calendar 2013). The B1 ratings on existing term loans were affirmed and will be withdrawn when the refinancing transaction closes. The rating outlook remains stable. BRP's B1 rating was affirmed as it already incorporated the potential that a re-leveraging dividend would occur and pro-forma metrics remain strong for the rating: adjusted Debt/EBITDA increases to 3.7x from 2.7x and EBITA/Interest decreases to 2.8x from 3.3x. As well, Moody's expects BRP to de-leverage slightly in the next 12 to 18 months as stable demand for existing products and growth from new product introductions drives improved profitability and free cash flow. Ratings Rationale BRP's B1 corporate family rating primarily reflects event risk related to its majority ownership by financial sponsors as well as the cyclical demand for its high-priced, discretionary products. The rating also reflects Moody's modest volume growth expectations for BRP's established products into the medium term due to ongoing economic challenges, elevated consumer debt and high unemployment levels. However, the rating considers BRP's well-recognized global brands and leading market positions, efficient management of dealer inventory levels, good liquidity, and demonstrated ability to successfully launch new products. Moody's expects modest earnings growth and ongoing free cash flow generation will enable the company's adjusted Debt/ EBITDA to fall below 3.5x within the next 12 to 18 months. The rating is stable because Moody's expects BRP to realize modest earnings growth through the next 12 to 18 months with minimal deleveraging following the debt-financed dividend recapitalization. The rating would be upgraded if BRP's Debt/EBITDA were to decline and remain below 3x, EBITA/Interest was sustained above 3.5x and Moody's was to gain confidence that BRP would not be relevered through shareholder actions. This would be associated with a material decline in the ownership of BRP by its financial sponsors. The ratings could be downgraded should increased debt levels, cash distributions to private owners or earnings shortfalls result in adjusted Debt/ EBITDA being sustained above 4x and EBITA/ Interest falls below 2x. The principal methodology used in rating BRP was the Global Consumer Durables 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. Bombardier Recreational Products Inc. is a leading global manufacturer of motorized recreational products, including snowmobiles, personal watercraft, all-terrain vehicles, motorcycles and related products. Revenue for the last twelve months ended July 31, 2012 was $2.9 billion. The company is headquartered in Valcourt, Quebec, Canada. BOMBARDIER RECREATIONAL: S&P Affirms 'B+' CCR on Debt Refinancing ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on Valcourt, Que.-based recreational products manufacturer Bombardier Recreational Products Inc. (BRP), including its 'B+' long-term corporate credit rating on the company. The outlook is stable. "In addition, we assigned our 'B+' issue-level rating and '4' recovery rating to BRP's proposed US$1.05 billion senior secured term loan B due 2018. The '4' recovery rating indicates our expectation of average (30%-50%) recovery in the event of default. We understand that proceeds of the new term loan will be used to refinance existing term debt, pay a special C$375 million dividend, and for general corporate purposes," S&P said. Rationale "The ratings on BRP reflect Standard & Poor's view of the company's 'weak' business risk profile and 'aggressive' financial risk profile (as our criteria define the terms). We base our business risk assessment on the volatile demand for the company's products due to their discretionary nature, which led to sharp declines in revenue and profit in the last recession, and intense competition. These factors are partially offset by what we consider BRP's solid market position in the recreational products industry, improved operating performance, and well-established dealer network. Our financial risk assessment is based on the company's aggressive financial policy and weak credit protection measures," S&P said. "BRP manufactures motorized recreational products including snowmobiles under the Ski-Doo and Lynx brand names, watercraft under the Sea-Doo name, power sport engines under the Rotax name, all-terrain vehicles (ATV), side-by-side vehicles and roadsters under the Can-Am name, and outboard engines under the Evinrude name. The company's revenues are geographically diversified, with key markets in the U.S., Canada, and Europe," S&P said. "Consumer spending for 'big ticket' discretionary items, such as BRP's snowmobiles, personal watercraft, and ATVs, declined considerably in 2008 and 2009, but began improving in 2010. Growth has continued since then, with reported revenue and gross profit up a significant 21% and 36%, respectively, in the six months ended July 31, 2012, compared with the same period in 2011, largely because of increased volume, favorable product mix, and lower sales incentive costs, partially offset by higher commodity costs. Management's aggressive cost cutting in the past few years to better streamline the operations is reflected in BRP's improved profitability," S&P said. In its base case scenario for fiscal 2013, Standard & Poor's expects: * BRP's good operating performance to continue this year, albeit with growth in revenue and gross profit likely to be at a slower pace than in fiscal 2012, including low-teen double- digit percent revenue growth; * Cost of goods sold will decline as a percent of revenue, leading to improvement in the gross margin; and * The company will continue to generate positive free cash flow. "Credit protection measures (adjusted for operating leases, pension liability, and accounts receivable securitization) continued to improve because of higher EBITDA, with adjusted debt to EBITDA of 2.5x for the 12 months ended July 31, 2012, which is down from 3.8x for the same period last year. Pro forma for the proposed sizable dividend payment and resulting additional debt, we expect adjusted debt to EBITDA to rise to about 3.8x, which remains in line with our guidance for the corporate credit rating and outlook," S&P said. Liquidity S&P believes BRP will have adequate liquidity in the next 12 months, with sources exceeding uses by more than 1.2x. It expects that net sources would be positive, even with a 15% drop in EBITDA. S&P's view is based on these information and assumptions: * The company's sources of liquidity are: cash, availability under the C$350 million asset-backed lending facility due March 2016, and free cash flow. S&P believes BRP will generate sufficient cash flow in fiscal 2013 to support capital expenditures. * The proposed term loan is expected to amortize by 1% annually. The proposed credit agreement includes an excess cash flow sweep that begins in 2014, which could result in expected higher-than-scheduled amortization of the term loan. * S&P believes that the company will maintain at least a 15% EBITDA cushion on its minimum fixed charge coverage ratio of 1.1x. The covenant only applies when excess availability (as defined in the credit agreement) on the revolver is less than C$100 million for seven consecutive days. * S&P expects BRP to have sound relationships with its banks and a generally satisfactory standing in credit markets. Standard & Poor's understands that the company's liquidity position can fluctuate significantly from quarter to quarter because of the seasonal nature of revenues and cash flows. Recovery analysis "Standard & Poor's rates BRP's senior secured revolving credit facility 'BB' (two notches above the corporate credit rating on the company), with a '1' recovery rating, indicating our expectation of very high (90%-100%) recovery in a default scenario," S&P said. "We also rate the company's senior secured term debt 'B+' (the same as the corporate credit rating on BRP), with a recovery rating of '4', indicating our expectation of average (30%-50%) recovery in the event of a default," S&P said. Outlook "The stable outlook reflects Standard & Poor's opinion that BRP will sustain improvement in its operating performance and that credit ratios will be in line with our expectations in the medium term, including adjusted debt to EBITDA in the 3x-4x range. We could lower the ratings if the company's financial flexibility weakens because of poor operating performance or additional sizable dividends, resulting in adjusted debt to EBITDA above 5x. Although we recognize the company's good credit metrics for the ratings and higher margin point to potentially improving creditworthiness, the ratings on BRP remain constrained at current levels owing to its ownership structure and future financial policy considerations," S&P said. Ratings List Bombardier Recreational Products Inc. Ratings Affirmed/Recovery Ratings Unchanged Corporate credit rating B+/Stable/-- Senior secured revolver BB Recovery rating 1 Senior secured term debt B+ Recovery rating 4 Ratings Assigned US$1.05 bil. sr secured term debt due 2018 B+ Recovery rating 4 BON-TON STORES: Amends Loan Agreement with Bank of America ---------------------------------------------------------- The Bon-Ton Department Stores, Inc., The Elder-Beerman Stores Corp., Carson Pirie Scott II, Inc., Bon-Ton Distribution, Inc., McRIL, LLC, and The Bon-Ton Stores of Lancaster, Inc., as borrowers, and The Bon-Ton Stores, Inc., and certain other subsidiaries as obligors, entered into a First Amendment to the Second Amended and Restated Loan and Security Agreement with Bank of America, N.A., as Agent, and certain financial institutions as lenders, dated March 21, 2011. Commitments for loans under the Second Amended and Restated Loan and Security Agreement are in two tranches: Tranche A revolving commitments of $575 million (which includes a $150 million sub- line for letters of credit and $75 million for swing line loans) and Tranche A-1 revolving commitments of $50 million. The First Amendment (i) increases the Tranche A-1 revolving commitment to $100 million, (ii) increases the margins applicable to borrowings under the Tranche A-1 revolving commitments by 0.25% and (iii) makes certain other changes to the borrowing base calculations under the Second Amended and Restated Loan and Security Agreement. A copy of the First Amendment is available for free at: http://is.gd/xlkn4b 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 reported a net loss of $85.81 million on $1.23 billion of net sales for the 26 weeks ended July 28, 2012, compared with a net loss of $68.28 million on $1.24 billion of net sales for the 26 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. * * * 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. 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. Moody's said the affirmation of the company's 'Caa1' corporate family rating reflects the company's persistent negative trends in sales and operating margins and uncertainties that the company's strategies to reverse these trends will be effective. BUILDERS FIRSTSOURCE: Files Form 10-Q; Incurs $13.5MM Loss in Q3 ---------------------------------------------------------------- Builders FirstSource, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $13.56 million on $291.78 million of sales for the three months ended Sept. 30, 2012, compared with a net loss of $11.56 million on $217.19 million of sales for the same period during the prior year. The Company reported a net loss of $44.80 million on $783.08 million of sales for the nine months ended Sept. 30, 2012, compared with a net loss of $48.29 million on $586.41 million of sales for the same period a year ago. The Company's balance sheet at Sept. 30, 2012, showed $498.77 million in total assets, $439.91 million in total liabilities and $58.86 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/M3U8Yv About Builders FirstSource Headquartered in Dallas, Texas, Builders FirstSource Inc. -- http://www.bldr.com/-- supplies and manufactures building products for residential new construction. The Company operates in 9 states, principally in the southern and eastern United States, and has 55 distribution centers and 51 manufacturing facilities, many of which are located on the same premises as its distribution facilities. Builders FirstSource reported a net loss of $64.99 million in 2011, a net loss of $95.51 million in 2010, and a net loss of $61.85 million in 2009. * * * In April 2012, Standard & Poor's Ratings Services revised its outlook on Builders FirstSource Inc. to positive from negative. S&P also affirmed its 'CCC' corporate credit rating on the company. "The outlook revision reflects our assessment that Builders FirstSource's operating conditions are improving such that we now expect the building products manufacturer and distributor to post positive annual EBITDA for the first time since 2007, albeit at very low levels," said Standard & Poor's credit analyst James Fielding. "In our view, improved profitability will better position the company to refinance some of its expensive floating rate debt and possibly close its interest coverage shortfall over the next 12 months." CAESARS ENTERTAINMENT: Incurs $503.4 Million Net Loss in Q3 ----------------------------------------------------------- Caesars Entertainment Corporation reported a net loss of $503.4 million on $2.19 billion of net revenues for the quarter ended Sept. 30, 2012, compared with a net loss of $173.4 million on $2.18 billion of net revenues for the same period a year ago. The Company reported a net loss of $1.02 billion on $6.57 billion of net revenues for the nine months ended Sept. 30, 2012, compared with a net loss of $471.3 million on $6.46 billion of net revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2012, showed $28.34 billion in total assets, $28.22 billion in total liabilities and $114.7 million in total equity. "We continued to make significant progress during the third quarter on a strategy designed to position our company for future growth," said Gary Loveman, Caesars Entertainment chairman, chief executive officer and president. "We continued to refinance our nearest-term maturities and improve our financial flexibility. In August 2012, we issued $750 million in new debt due 2020, with proceeds used to refinance debt maturing in 2014 and 2015 and to increase liquidity. In conjunction with this transaction, which closed in October, we extended the maturity of approximately $958 million of term loans from 2015 to 2018 and beyond, and repaid approximately $479 million of term loans under our credit facilities." A copy of the press release is available for free at: http://is.gd/sNvggX 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. * * * 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. and wholly owned subsidiary Caesars Entertainment Operating Co. Inc. 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 CEC's long-term issuer default rating at 'CCC'. CASCADE AG: Has Interim Access to Cash Collateral Until Nov. 6 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Washington authorized in a second interim order Cascade AG Services, Inc., to use cash collateral until Nov. 6, 2012, to pay the expenses identified in the Interim Budget, except that no interest payments on One Pacific Coast Bank's prepetition obligation will be authorized. The Debtor is authorized and directed to provide adequate protection to the secured lenders in the form of replacement liens. The replacement liens will be subordinate in priority to a $165,000 carve out for postpetition administrative and professional fees, on a pro rata basis. The Debtor's right to use such creditor's cash collateral will cease immediately upon conversion of the case to a Chapter 7 case or if a trustee is appointed, or elected in the Chapter 11 case. Holders of valid and enforceable prepetition and postpetition Perishable Agricultural Commodities Act ("PACA") Trust Claims will retain their trust rights, if any, to the extent provided by law against all prepetition and post petition assets of Debtor and its estate and Debtor will pay valid and enforceable postpetition PACA trust Claims when due or as agreed by PACA creditors. About Cascade AG Cascade AG Services, Inc., dba Pleasant Valley Farms, fdba Mountain View Produce, Inc., fdba Staffanson Harvesting LLC, fdba Sterling Investment Group, L.L.C., filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 12-18366) on Aug. 13, 2012. It scheduled $25,820,499 in assets and $22,255,482 in liabilities. Lawyers at Cairncross & Hempelmann PS, in Seattle, serve as the Debtor's counsel. The petition was signed by Craig Staffanson, president. The U.S. Trustee appointed seven creditors to the Official Unsecured Creditors' Committee. Lawrence R. Ream, Esq., at Schwabe, Williamson & Wyatt PC, Seattle, represents the Committee as counsel. DIP lender One PacificCoast Bank, FSB, is represented by Brad T. Summers, Esq., and David W. Criswell, Esq., at Ball Janik LLP. CASCADE AG: Seeks Final Order to Obtain Secured Loan from OPCB -------------------------------------------------------------- Cascade AG Services, Inc., asks the U.S. Bankruptcy Court for the Western District of Washington to enter a final order authorizing it to use cash collateral of One PacificCoast Bank, FSB ("OPCB") and to obtain secured postpetition financing on a superpriority basis, up to an aggregate principal amount of $550,000 from OPCB. The aggregate obligations owing to OPCB as of the Petition Date were $2.5 million in principal, plus interest and fees. The Debtor tells the Court that it has been unable to procure required funds in the form of unsecured credit or unsecured debt with an administrative priority The DIP Agreement's significant provisions are: a) Interest Rate: 7.75% per annum on amounts advanced under the DIP Agreement; b) Payments: Monthly of all interest and fees in arrears, and applied first to principal, second to interest, and third to unpaid fees, costs, and expenses under the DIP Agreement and finally to amounts due under the Prepetition Loan Documents; c) Maturity: Dec. 31, 2012; d) Liens: All assets other than professional retainers and avoidance actions; e) DIP Agreement Fee: The Debtor will pay a one time fee of $27,500 upon the Maturity Date; f) Professional Fee Carve Out: Any liens granted pursuant to the DIP Agreement or any orders with respect to the DIP Agreement and any administrative expense claims (superpriority or otherwise) granted or created in favor of the Lender will be subordinate and subject to the Carve Out for the quarterly fees payable to the Office of the United States Trustee and fees and expenses payable to professionals retained in the case, including professionals retained by the official committee of unsecured creditors; provided that the Carve-Out is subject to a cap in the amount of $185,000 (which is inclusive of the $165,000 carve out provided for in the Court's Aug. 17, 2012 Interim Order authorizing use of cash collateral). About Cascade AG Cascade AG Services, Inc., dba Pleasant Valley Farms, fdba Mountain View Produce, Inc., fdba Staffanson Harvesting LLC, fdba Sterling Investment Group, L.L.C., filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 12-18366) on Aug. 13, 2012. It scheduled $25,820,499 in assets and $22,255,482 in liabilities. Lawyers at Cairncross & Hempelmann PS, in Seattle, serve as the Debtor's counsel. The petition was signed by Craig Staffanson, president. The U.S. Trustee appointed seven creditors to the Official Unsecured Creditors' Committee. Lawrence R. Ream, Esq., at Schwabe, Williamson & Wyatt PC, Seattle, represents the Committee as counsel. DIP lender One PacificCoast Bank, FSB, is represented by Brad T. Summers, Esq., and David W. Criswell, Esq., at Ball Janik LLP. CELL THERAPEUTICS: Has $10.8 Million Net Loss in September ---------------------------------------------------------- Cell Therapeutics, Inc., provided information pursuant to a request from the Italian securities regulatory authority, CONSOB, pursuant to Article 114, Section 5 of the Unified Financial Act, that the Company issue at the end of each month a press release providing a monthly update of certain information relating to the Company's management and financial situation. The Company estimates a net loss attributable to common shareholders of $10.88 million on $0 of net revenue for the month ended Sept. 30, 2012, compared with a net loss attributable to common shareholders of $4.37 million on $0 of net revenue during the prior month. Estimated research and development expenses were $2.1 million for the month of August 2012 and $2.4 million for the month of September 2012. There were no convertible notes outstanding as of Aug. 31, 2012, and Sept. 30, 2012. A copy of the press release is available for free at: http://is.gd/O2XOts About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. Cell Therapeutics reported a net loss attributable to CTI of US$62.36 million in 2011, compared with a net loss attributable to CTI of US$82.64 million in 2010. The Company's balance sheet at June 30, 2012, showed $38.34 million in total assets, $39.83 million in total liabilities, $13.46 million in common stock purchase warrants, and a $14.95 million total shareholders' deficit. Going Concern Doubt Raised The report of Marcum LLP, in San Francisco, Calif., dated March 8, 2012, expressed an unqualified opinion, with an explanatory paragraph as to the uncertainty regarding the Company's ability to continue as a going concern. The Company's available cash and cash equivalents are US$47.1 million as of Dec. 31, 2011. The Company's total current liabilities were US$17.8 million as of Dec. 31, 2011. The Company does not expect that it will have sufficient cash to fund its planned operations beyond the second quarter of 2012, which raises substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning The Form 10-K for the year ended Dec. 31, 2011, noted that if the Company receives approval of Pixuvri by the EMA or the FDA, it would anticipate significant additional commercial expenses associated with Pixuvri operations. Accordingly, the Company will need to raise additional funds and are currently exploring alternative sources of equity or debt financing. The Company may seek to raise that capital through public or private equity financings, partnerships, joint ventures, disposition of assets, debt financings or restructurings, bank borrowings or other sources of financing. However, the Company has a limited number of authorized shares of common stock available for issuance and additional funding may not be available on favorable terms or at all. If additional funds are raised by issuing equity securities, substantial dilution to existing shareholders may result. If the Company fails to obtain additional capital when needed, it may be required to delay, scale back, or eliminate some or all of its research and development programs and may be forced to cease operations, liquidate its assets and possibly seek bankruptcy protection. CELL THERAPEUTICS: Inks Settlement With Former President -------------------------------------------------------- As previously announced, Craig W. Philips resigned as President of Cell Therapeutics, Inc., effective as of July 16, 2012. The Company has entered into a Settlement Agreement and Full and Final Release of Claims, dated as of Oct. 25, 2012, with Mr. Philips. Mr. Philips will be entitled to receive a severance payment of $435,500, with 25% of that amount to be paid within 30 days and the balance of that amount to be paid in twelve monthly instalments thereafter. The Company will also pay Mr. Philips' premiums to continue his health coverage for 13 months following his termination. Mr. Philips' equity awards granted by the Company and Aequus Biopharma, Inc., a subsidiary of the Company, to the extent then outstanding and unvested, terminated as of June 16, 2012. Pursuant to the Settlement Agreement, Mr. Philips has agreed to vote the existing shares of the Company that he owns in a manner consistent with the recommendation of the Company's board of directors through Oct. 13, 2013. The Settlement Agreement also includes a release by Mr. Philips of claims against the Company and certain non-competition and other restrictive covenants by Mr. Philips in favor of the Company. A copy of the Settlement Agreement is available at: http://is.gd/TaGYjV About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. Cell Therapeutics reported a net loss attributable to CTI of US$62.36 million in 2011, compared with a net loss attributable to CTI of US$82.64 million in 2010. The Company's balance sheet at June 30, 2012, showed $38.34 million in total assets, $39.83 million in total liabilities, $13.46 million in common stock purchase warrants, and a $14.95 million total shareholders' deficit. Going Concern Doubt Raised The report of Marcum LLP, in San Francisco, Calif., dated March 8, 2012, expressed an unqualified opinion, with an explanatory paragraph as to the uncertainty regarding the Company's ability to continue as a going concern. The Company's available cash and cash equivalents are US$47.1 million as of Dec. 31, 2011. The Company's total current liabilities were US$17.8 million as of Dec. 31, 2011. The Company does not expect that it will have sufficient cash to fund its planned operations beyond the second quarter of 2012, which raises substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning The Form 10-K for the year ended Dec. 31, 2011, noted that if the Company receives approval of Pixuvri by the EMA or the FDA, it would anticipate significant additional commercial expenses associated with Pixuvri operations. Accordingly, the Company will need to raise additional funds and are currently exploring alternative sources of equity or debt financing. The Company may seek to raise that capital through public or private equity financings, partnerships, joint ventures, disposition of assets, debt financings or restructurings, bank borrowings or other sources of financing. However, the Company has a limited number of authorized shares of common stock available for issuance and additional funding may not be available on favorable terms or at all. If additional funds are raised by issuing equity securities, substantial dilution to existing shareholders may result. If the Company fails to obtain additional capital when needed, it may be required to delay, scale back, or eliminate some or all of its research and development programs and may be forced to cease operations, liquidate its assets and possibly seek bankruptcy protection. CHRYSLER LLC: TRWE Escapes Defect Indemnity Suit ------------------------------------------------ Sean McLernon at Bankruptcy Law360 reports that an Oklahoma federal judge on Wednesday tossed a suit seeking to force an auto parts maker to indemnify DaimlerChrysler Corp. in a putative vehicle defect class action that has been stayed by a bankruptcy court, ruling TRW Automotive US LLC's obligation does not yet exist. About Chrysler Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. Chrysler LLC and 24 affiliates on April 30, 2009, sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. As of Dec. 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat acquired a 20% equity interest in Chrysler Group as part of the deal. The U.S. and Canadian governments provided Chrysler with $4.5 billion to finance its bankruptcy case. Those loans were repaid with the proceeds of the bankruptcy estate's liquidation. The Debtor changed its corporate name to Old CarCo following the sale. CIF BARCELONETA: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: CIF Barceloneta, Corp. aka IHOP Barceloneta P.O. Box 1556 Bayamon, PR 00960 Bankruptcy Case No.: 12-08570 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Charles Alfred Cuprill, Esq. CHARLES A CURPILL, PSC LAW OFFICE 356 Calle Fortaleza Second Floor San Juan, PR 00901 Tel: (787) 977-0515 E-mail: cacuprill@cuprill.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb12-08570.pdf The petition was signed by Mohammed Saber, president. CLEAN HARBORS: S&P Puts 'BB+' CCR on Watch on Acquisition Pact -------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB+' corporate credit rating and all other ratings on Norwell, Mass.-based Clean Harbors Inc. on CreditWatch with negative implications. "At the same time, we placed our ratings, including our 'B+' corporate credit rating, on Plano, Texas-based Safety-Kleen Systems Inc. on CreditWatch with positive implications," S&P said. Rationale "The CreditWatch placement reflects the likelihood that Clean Harbors Inc.'s financial risk profile could weaken beyond expectations at the current rating, given our expectation that the company will primarily fund the Safety-Kleen acquisition with debt. While management has publicly stated that it will use more than $400 million of existing cash on hand to fund a portion of the transaction and that it intends to keep its reported debt-to- EBITDA in the 2.5x area (under 3.0x at maximum), the company's pro forma funds from operations (FFO)-to-debt ratio will likely fall below the 30% mark we deem appropriate for the rating," S&P said. "The CreditWatch placement also reflects our view that Safety- Kleen's credit quality may improve as it becomes part of Clean Harbors. The company will become part of a company with a larger scope of operations and greater geographic and service diversity," S&P said. "With roughly $2.2 billion in trailing-12-month revenues at June 30, 2012, Clean Harbors is one of the largest providers of environmental services and the largest operator of nonnuclear hazardous waste treatment facilities in North America. The company's operations include the collection, transport, treatment, and disposal of hazardous and industrial wastes; on-site maintenance services, such as tank cleaning, decontamination, remediation, and spill cleanup; high-pressure and chemical cleaning, catalyst handling, decoking, material processing, and lodging services to energy and industrial companies; and fluid handling, downhole servicing, directional boring services to oil and gas exploration, production, and power generation customers. A key to resolving the CreditWatch will be assessing the implications of the acquisition on Clean Harbors' competitive position, growth strategy, and the company's track record of balancing its growth objectives in accordance with prudent financial policies," S&P said. "The company expects the acquisition to close in the fourth quarter of 2012 and the acquisition is subject to customary regulatory approvals and closing conditions," S&P said. CreditWatch "We placed the ratings on Clean Harbors on CreditWatch with negative implications and placed the ratings on Safety-Kleen on CreditWatch with positive implications. We will monitor developments relating to this transaction and will resolve the CreditWatch listings once further details related to the transaction become available. We intend to meet with management to discuss a variety of topics related to the transaction, such as integration risks, the pro forma capital structure, and management's strategic objectives and financial policies. The CreditWatch placements indicate the heightened risk that we will lower Clean Harbors' ratings and raise Safety-Kleen's ratings following our review of the transaction and implications for credit quality," S&P said. Ratings List CreditWatch Action Clean Harbors Inc. To From Corporate credit rating BB+/Watch Neg/-- BB+/Stable/-- Senior secured BB+/Watch Neg BB+ Recovery rating 4 4 Senior unsecured BB+/Watch Neg BB+ Recovery rating 4 4 Safety-Kleen Systems Inc. To From Corporate credit rating B+/Watch Pos/-- B+/Stable Senior secured BB-/Watch Pos BB- Recovery rating 2 2 CLEARWIRE CORP: Mount Kellett Owns 7.7% of Class A Shares --------------------------------------------------------- In a Schedule 13D filing with the U.S. Securities and Exchange Commission, Mount Kellett Capital Management LP disclosed that, as of Nov. 1, 2012, it beneficially owns 53,188,166 shares of Class A Common Stock of Clearwire Corporation representing 7.7% of the shares outstanding. A copy of the filing is available at: http://is.gd/VqWwxt About Clearwire Corporation Kirkland, Wash.-based Clearwire Corporation (NASDAQ: CLWR) -- http://www.clearwire.com/-- through its operating subsidiaries, is a provider of 4G mobile broadband network services in 68 markets, including New York City, Los Angeles, Chicago, Dallas, Philadelphia, Houston, Miami, Washington, D.C., Atlanta and Boston. The Company reported a net loss attributable to the Company of $717.33 million in 2011, a net loss attributable to the Company of $487.43 million in 2010, and a net loss attributable to the Company of $325.58 million in 2009. The Company's balance sheet at Sept. 30, 2012, showed $8.14 billion in total assets, $5.86 billion in total liabilities and $2.28 billion in total stockholders' equity. * * * As reported by the TCR on Nov. 25, 2011, Standard & Poor's Ratings Services lowered its corporate credit and senior secured first- lien issue-level ratings on Bellevue, Wash.-based wireless provider Clearwire Corp. to 'CCC' from 'CCC+'. The ratings on Clearwire continue to reflect its "highly leveraged" financial risk profile based on its high debt burden and "weak" liquidity (both terms as defined in S&P's criteria). "The ratings also reflect our view that Clearwire has a vulnerable business position as a developmental-stage company with significant competition from better capitalized wireless carriers, including AT&T Mobility and Verizon Wireless, which are deploying their own 4G wireless services," S&P said in January 2012. "We believe that the company would likely run out of cash in the late 2012 to early 2013 time frame absent significant asset sales, since we view the terms in the December 2011 wholesale agreement with Sprint Nextel as unfavorable in the near term and will likely constrain cash inflows in 2012 to 2013. We have not assumed spectrum sales in our liquidity assessment because of the uncertainty involved in finding a buyer, as well as timing. However, if the company could secure sufficient funding for operations through 2013, we could raise the ratings," S&P also stated. COMMONWEALTH BIOTECH: Fornova Claim Is Equitably Subordinated ------------------------------------------------------------- Bankruptcy Judge Kevin R. Huennekens ruled that the claims of Fornova Pharmaworld US Inc. is equitably subordinated to the valid allowed claims of general unsecured creditors in the Chapter 11 case of Commonwealth Biotechnologies, Inc. The Debtor filed a complaint against Fornova, saying the claim was unfounded because no business relationship existed between the Debtor and Fornova and, as a result, no documentation existed in support of the Claim. The judge also noted that a purported trustee of the Defendant made repeated attempts to circumvent the Court's instruction that he retain counsel to represent the Defendant. The lawsuit is, COMMONWEALTH BIOTECHNOLOGIES, INC. Plaintiff, v. FORNOVA PHARMWORLD, INC. Defendant, Adv. Proc. No. 12-03038 (Bankr. E.D. Va.). A copy of the Court's Nov. 1 Memorandum Opinion is available at http://is.gd/4JtZ2Nfrom Leagle.com. 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. COMPETITIVE TECHNOLOGIES: Carl O'Connell Named President and CEO ---------------------------------------------------------------- The Board of Directors of Competitive Technologies, Inc., appointed Carl O'Connell as President and Chief Executive Officer. Mr. O'Connell replaces Johnnie D. Johnson, interim Chief Executive Officer, who will continue serving as Chief Financial Officer and Director of Investor Relations reporting to Mr. O'Connell. The appointments take effect Nov. 1, 2012. Mr. O'Connell has a total 30 years of experience in the healthcare field and 20 years as a leader in the medical device arena. Prior to joining Competitive Technologies Mr. O'Connell held executive positions for top global medical device and fortune 500 companies. He recently served as President and CEO for the US Healthcare Division MedSurg for ITOCHU, a Japanese conglomerate, Vice President of Global Marketing for Stryker Spine, and President of Carl Zeiss Surgical, the market leader in optical digital solutions for Neurosurgery, Spine, Ophthalmology, ENT and Dentistry. He is an experienced, driven executive with strong marketing and sales experience. Mr. O'Connell also has a proven track record in commercializing medical technologies as well as building effective and profitable sales and distribution organizations. Pursuant to the agreement, which was signed Oct. 25, 2012, Mr. O'Connell will act as CEO and President for an initial trial term of 60 days. After meeting clearly defined and board approved goals and objectives within the 60 days, Mr. O'Connell's employment will be made permanent and he will be appointed to the Board. Annual salary is $250,000 during the trial period and $300,000 thereafter, provided he meets the goals provided by the Board. Equity and cash bonus will be based on performance goals, up to 100% of his base salary. Mr. O'Connell will be granted one million incentive stock options vesting over a five year period. 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 June 30, 2012, showed $4.66 million in total assets, $7.65 million in total liabilities, and a $2.99 million total shareholders' deficit. COUSINS INT'L: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Cousins International Food, Corp. aka Ihop Caguas P.O. Box 690 Vega Alta, PR 00692 Bankruptcy Case No.: 12-08567 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Charles Alfred Cuprill, Esq. CHARLES A CURPILL, PSC LAW OFFICE 356 Calle Fortaleza, Second Floor San Juan, PR 00901 Tel: (787) 977-0515 E-mail: cacuprill@cuprill.com Scheduled Assets: $2,924,318 Scheduled Liabilities: $1,896,475 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/prb12-08567.pdf The petition was signed by Mohammed Saber, president. CROWN MEDIA: Reports $11.5 Million Net Income in Third Quarter -------------------------------------------------------------- Crown Media Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to common stockholders of $11.49 million on $77.05 million of net total revenue for the three months ended Sept. 30, 2012, compared with net income attributable to common stockholders of $163.20 million on $74.04 million of net total revenue for the same period during the prior year. The Company reported net income attributable to common stockholders of $37.24 million on $247.56 million of net total revenue for the nine months ended Sept. 30, 2012, compared with net income attributable to common stockholders of $226.01 million on $223.79 million of net total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2012, showed $930.57 million in total assets, $667.83 million in total liabilities and $262.74 million in total stockholders' equity. "Crown Media saw a positive third quarter with solid increases in EBITDA and advertising revenue," said Bill Abbott, President and CEO of Crown Media Family Networks. "During the third quarter, our family-friendly programming continued to be of high value to advertisers and viewers despite strong competition from the Summer Olympics. The September 8th premiere of Hallmark Channel original movie, "Puppy Love", was the network's highest rated original premiere for 2012 to-date while Hallmark Movie Channel's October 13th premiere of "The Seven Year Hitch" was the most watched original premiere among women 25-54 in the network's history. We are confident in our ability to capitalize on the strength of our brand during the upcoming holiday season and look forward to our holiday programming schedule, and to achieving our fourth quarter revenue goals." A copy of the Form 10-Q is available for free at: http://is.gd/FyXlBQ About Crown Media Studio City, Calif.-based Crown Media Holdings, Inc. (NASDAQ: CRWN) -- http://www.hallmarkchannel.com/-- owns and operates cable television channels dedicated to high quality, broad appeal, entertainment programming. The Company currently operates and distributes Hallmark Channel in both high definition (HD) and standard definition (SD) to 90 million subscribers in the U.S. Crown Media also operates a second 24-hour linear channel, Hallmark Movie Channel, available in both HD and SD, which focuses on family-friendly movies with a mix of classic theatrical films, presentations from the acclaimed Hallmark Hall of Fame library, original Hallmark Channel movies and special events. Bankruptcy Warning According to the Form 10-K for the year ended Dec. 31, 2011, the Company's senior secured credit facilities and the indenture governing the Notes contain a number of covenants that impose significant operating and financial restrictions on the Company, including restrictions on its ability to, among other things, incur additional debt or issue certain preferred shares, pay dividends on or make distributions in respect of the Company's capital stock or make other restricted payments, and make certain payments on debt that is subordinated or secured on a junior basis. Any of these restrictions could limit the Company's ability to plan for or react to market conditions and could otherwise restrict corporate activities. Any failure to comply with these covenants could result in a default under the Company's senior secured credit facilities and the indenture governing the Notes. Upon a default, unless waived, the lenders under the Company's senior secured credit facilities could elect to terminate their commitments, cease making further loans, foreclose on the Company's assets pledged to those lenders to secure its obligations under the senior secured credit facilities and force the Company into bankruptcy or liquidation. * * * As reported by the TCR on May 28, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Studio City, Calif.-based cable network company Crown Media Holdings Inc. to 'B+' from 'B'. "The upgrade reflects Crown Media's recent operating performance, which achieved higher EBITDA and lower leverage than our expectations," said Standard & Poor's credit analyst Deborah Kinzer. Crown Media carries a B2 Corporate Family Rating from Moody's Investors Service. Crown Media's B2 CFR reflects the company's small size and niche market position among cable network operators, concentration in two Hallmark-branded channels, reliance on licensed third party content for a majority of its programming, and high leverage. CROWN MEDIA: To Offset $700-Mil. of NOLs Against Taxable Income --------------------------------------------------------------- Crown Media Holdings, Inc., entered into a transaction designed to enable it to access its net operating losses of approximately $700 million. Because the Company is currently anticipated to generate taxable income, the Company intends to offset these NOLs against that income with the goal of reducing the Company's tax burden. The Company was previously part of Hallmark Cards, Incorporated's consolidated tax group for Federal income tax purposes, and was restricted in its ability to utilize the NOLs that accumulated prior to the Company joining the HC Tax Group. As a result of the Transaction, the Company will no longer be a member of the HC Tax Group and may utilize the NOLs. The Transaction included, among other things: (1) the transfer on Oct. 31, 2012, by Hallmark Cards of 40 million shares of the Company's common stock to a German affiliate that is not part of the HC Tax Group; (2) receipt of a private letter ruling from the Internal Revenue Service in support of the Company's position that as a result of the Transfer, it will no longer be part of the HC Tax Group and those restrictions on its ability to utilize the NOLs will no longer apply; and (3) the entry into an acknowledgement and agreement with Hallmark Cards and HC Crown, LLC, which was a condition to Hallmark's transfer of those shares. The Agreement provides that: (1) consistent with the terms of the existing Stockholders Agreement, dated June 29, 2010, among HCC, Hallmark Cards and the Company, the Company will not impede future transfers of the Company's common stock back to an affiliate of Hallmark Cards; and (2) if a taxing authority determines that the Transfer did not result in the Company no longer being a member of the HC Tax Group, the Federal Tax Sharing Agreement dated March 11, 2003, between Hallmark Cards and the Company, as amended, will be deemed to have been continuously in effect. As is the Company's policy with respect to material transactions with Hallmark Cards, a special committee of independent directors reviewed and approved the Transaction. The special committee was assisted in its review by outside legal counsel. The summary of the terms of the Acknowledgement and Agreement is available at http://is.gd/LT3pK3 About Crown Media Studio City, Calif.-based Crown Media Holdings, Inc. (NASDAQ: CRWN) -- http://www.hallmarkchannel.com/-- owns and operates cable television channels dedicated to high quality, broad appeal, entertainment programming. The Company currently operates and distributes Hallmark Channel in both high definition (HD) and standard definition (SD) to 90 million subscribers in the U.S. Crown Media also operates a second 24-hour linear channel, Hallmark Movie Channel, available in both HD and SD, which focuses on family-friendly movies with a mix of classic theatrical films, presentations from the acclaimed Hallmark Hall of Fame library, original Hallmark Channel movies and special events. The Company's balance sheet at Sept. 30, 2012, showed $930.57 million in total assets, $667.83 million in total liabilities and $262.74 million in total stockholders' equity. Bankruptcy Warning According to the Form 10-K for the year ended Dec. 31, 2011, the Company's senior secured credit facilities and the indenture governing the Notes contain a number of covenants that impose significant operating and financial restrictions on the Company, including restrictions on its ability to, among other things, incur additional debt or issue certain preferred shares, pay dividends on or make distributions in respect of the Company's capital stock or make other restricted payments, and make certain payments on debt that is subordinated or secured on a junior basis. Any of these restrictions could limit the Company's ability to plan for or react to market conditions and could otherwise restrict corporate activities. Any failure to comply with these covenants could result in a default under the Company's senior secured credit facilities and the indenture governing the Notes. Upon a default, unless waived, the lenders under the Company's senior secured credit facilities could elect to terminate their commitments, cease making further loans, foreclose on the Company's assets pledged to those lenders to secure its obligations under the senior secured credit facilities and force the Company into bankruptcy or liquidation. * * * As reported by the TCR on May 28, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Studio City, Calif.-based cable network company Crown Media Holdings Inc. to 'B+' from 'B'. "The upgrade reflects Crown Media's recent operating performance, which achieved higher EBITDA and lower leverage than our expectations," said Standard & Poor's credit analyst Deborah Kinzer. Crown Media carries a B2 Corporate Family Rating from Moody's Investors Service. Crown Media's B2 CFR reflects the company's small size and niche market position among cable network operators, concentration in two Hallmark-branded channels, reliance on licensed third party content for a majority of its programming, and high leverage. CROWN MEDIA: Hallmark Cards Owns 90.3% of Class A Shares -------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Hallmark Cards, Incorporated, and its affiliates disclosed that, as of Oct. 31, 2012, they beneficially own 324,885,516 shares of Class A common stock of Crown Media Holdings, Inc., representing 90.3% of the shares outstanding. A copy of the amended filing is available at http://is.gd/bXfxYH About Crown Media Studio City, Calif.-based Crown Media Holdings, Inc. (NASDAQ: CRWN) -- http://www.hallmarkchannel.com/-- owns and operates cable television channels dedicated to high quality, broad appeal, entertainment programming. The Company currently operates and distributes Hallmark Channel in both high definition (HD) and standard definition (SD) to 90 million subscribers in the U.S. Crown Media also operates a second 24-hour linear channel, Hallmark Movie Channel, available in both HD and SD, which focuses on family-friendly movies with a mix of classic theatrical films, presentations from the acclaimed Hallmark Hall of Fame library, original Hallmark Channel movies and special events. The Company's balance sheet at Sept. 30, 2012, showed $930.57 million in total assets, $667.83 million in total liabilities and $262.74 million in total stockholders' equity. Bankruptcy Warning According to the Form 10-K for the year ended Dec. 31, 2011, the Company's senior secured credit facilities and the indenture governing the Notes contain a number of covenants that impose significant operating and financial restrictions on the Company, including restrictions on its ability to, among other things, incur additional debt or issue certain preferred shares, pay dividends on or make distributions in respect of the Company's capital stock or make other restricted payments, and make certain payments on debt that is subordinated or secured on a junior basis. Any of these restrictions could limit the Company's ability to plan for or react to market conditions and could otherwise restrict corporate activities. Any failure to comply with these covenants could result in a default under the Company's senior secured credit facilities and the indenture governing the Notes. Upon a default, unless waived, the lenders under the Company's senior secured credit facilities could elect to terminate their commitments, cease making further loans, foreclose on the Company's assets pledged to those lenders to secure its obligations under the senior secured credit facilities and force the Company into bankruptcy or liquidation. * * * As reported by the TCR on May 28, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Studio City, Calif.-based cable network company Crown Media Holdings Inc. to 'B+' from 'B'. "The upgrade reflects Crown Media's recent operating performance, which achieved higher EBITDA and lower leverage than our expectations," said Standard & Poor's credit analyst Deborah Kinzer. Crown Media carries a B2 Corporate Family Rating from Moody's Investors Service. Crown Media's B2 CFR reflects the company's small size and niche market position among cable network operators, concentration in two Hallmark-branded channels, reliance on licensed third party content for a majority of its programming, and high leverage. DANA GAS: UAE Company Misses Payment on $920MM Islamic Bonds ------------------------------------------------------------ Nikhil Lohade, writing for The Source, reported that Dana Gas has failed to repay a $920 million Islamic bond that came due Wednesday, Oct. 31, arguably the first U.A.E. company to do so. The report said Dana Gas had a three-day grace period to meet its obligations after the bonds matured. The report said the so-called sukuk holders include two large asset management firms Blackrock Inc. of the U.S. and the U.K.'s Ashmore Investment Management, part of Ashmore Group PLC. According to the report, the bond holders could seek legal recourse to retrieve the money that the company owes them. And that is what they are planning to do, according to a person involved in the matter, the report said. According to the report, the Sharjah-based energy company acknowledged on Thursday its failure to repay the bond on maturity, while noting that discussions are ongoing with the debt holders to amend the terms of the sukuk and extend its maturity. The report said Dana had about $141 million in cash at the end of September and continues to be in talks with the governments in Egypt and Iraq's Kurdistan region for about $570 million of late payments. Dana and the sukuk holders have been in talks over the debt repayment for months. The report said both are represented by high profile advisers. DANIEL MILES: Clawback Suit v. Landlord Survives Dismissal Bid -------------------------------------------------------------- Bankruptcy Judge Margaret H. Murphy denied motions seeking sanctions in and dismissal of a clawback lawsuit filed by the Chapter 7 trustee in the liquidation case of Daniel J. Miles. James C. Cifelli, the Chapter 7 Trustee, seeks to avoid allegedly fraudulent transfers from the Debtor to Rame Properties, LLC, Rame at Chattahoochee, LLC, Sharon Mualem, and "Moshe Avi Manoah" under a residential lease and an amendment to that lease. The Defendants contend that Sharon Mualem and "Moshe Avi Manoah" are inappropriate parties to the proceeding, and thus seek sanctions against the Trustee. They also argue, relying on Stern v. Marshall, 131 S.Ct. 2594 (2011), that the Bankruptcy Court lacks the constitutional authority to decide the case because such an avoidance action is a proceeding adjudicable only by an Article III court. The Chapter 7 Trustee's complaint challenges three transfers of $60,000, $20,000, and $60,000 from the Debtor to the Defendants in October 2009, made as payments under a 2009 Lease for Residential Property and an Amendment to Agreement for a residential property located at 8395 Jett Ferry Road, Atlanta, Georgia. The Lease was for a term of 30 months. Pursuant to 11 U.S.C. 365(d)(1), the Chapter 7 Trustee rejected the Lease effective 60 days after the order for relief in the Chapter 7 case, and challenged the payments made. According to Judge Murphy, Stern should be narrowly interpreted to limit the power of bankruptcy courts only in counterclaims against a creditor, resolution of which is unnecessary to rule on the proof of claim at issue in the bankruptcy case; and, even if Stern did preclude the bankruptcy court from issuing a final judgment in a fraudulent conveyance action, the lack of explicit authorization in the Bankruptcy Code is not enough to preclude the court from issuing proposed findings of fact and conclusions of law to the district court. The lawsuit is captioned, JAMES C. CIFELLI, Trustee, Plaintiff, v. RAME PROPERTIES, LLC; RAME AT CHATTAHOOCHEE, LLC, SHARON MUALEM, MOSHE AVI MANOAH, Defendants, Adv. Proc. No. 11-5707 (Bankr. N.D. Ga.). A copy of the Court's Oct. 29, 2012 Orders is available at http://is.gd/aNL1CYfrom Leagle.com. An involuntary Chapter 7 bankruptcy petition was filed against Daniel J. Miles (Bankr. N.D. Ga. Case No. 09-92601) on Dec. 9, 2009. On Dec. 17, 2009, an Order for Relief under Chapter 11 was entered in connection with Mr. Mile's motion to convert the case to Chapter 11. On June 1, 2010, the case was re-converted to Chapter 7. James C. Cifelli was appointed as Chapter 7 Trustee. DANIEL MILES: Clawback Suit v. Ex-Lover Survives Dismissal Bid -------------------------------------------------------------- Bankruptcy Judge Margaret H. Murphy denied a request to dismiss the lawsuit commenced by the Chapter 7 trustee of the bankruptcy estate of Daniel J. Miles. James C. Cifelli, the Chapter 7 Trustee, challenges two transfers made by the Debtor to Nerissa Mursalim: (1) $6,000 transferred on or about Sept. 3, 2009, and (2) an 11.27 carat weight brilliant clear diamond in a platinum setting. The Trustee's complaint states that "Defendant contends that the Debtor transferred the Ring to her in October 2007 as part of a marriage engagement," that the engagement was terminated in May 2008, and alleges that the marriage was a sham designed to defraud the Debtor's creditors. The Trustee states that the Defendant sold the Ring to East Coast Jewelry for $525,000 in October 2009, and subsequently lent the Debtor a portion of the proceeds and invested a portion in Marquise Investments, LLC, an entity for which the Debtor works as a consultant. Ms. Mursalim seeks dismissal of the complaint for lack of subject matter jurisdiction, for failure to state a claim upon which relief can be granted, and because the Bankruptcy Court lacks the authority to adjudicate the claim under Stern v. Marshall, 131 S.Ct. 2594 (2011). She has not filed a proof of claim to the Debtor's estate, and states that she will demand a jury trial on all claims raised by the Complaint. Judge Murphy ruled that Stern and the Constitution do not preclude the Bankruptcy Court from entering final judgment in a fraudulent conveyance action. Even if they did, however, the Bankruptcy Court would retain the power to hear such cases and propose findings of fact and conclusions of law to the District Court. If the Defendant properly demands a jury trial and does not consent to such jury trial before the Bankruptcy Court, Judge Murphy said the adversary proceeding will remain pending before the Bankruptcy court until the case is ready for trial, at which time the proceeding will be transferred to the District Court. Moreover, the Chapter 7 Trustee's complaint does state a claim upon which relief may be granted. The lawsuit is captioned, JAMES C. CIFELLI, Trustee, Plaintiff, v. NERISSA MURSALIM, Defendant, Adv. Proc. No. 11-5705 (Bankr. N.D. Ga.). A copy of the Bankruptcy Court's Oct. 29, 2012 Order is available at http://is.gd/Z5jrH3from Leagle.com. An involuntary Chapter 7 bankruptcy petition was filed against Daniel J. Miles (Bankr. N.D. Ga. Case No. 09-92601) on Dec. 9, 2009. On Dec. 17, 2009, an Order for Relief under Chapter 11 was entered in connection with Mr. Mile's motion to convert the case to Chapter 11. On June 1, 2010, the case was re-converted to Chapter 7. James C. Cifelli was appointed as Chapter 7 Trustee. DEMUZIO CAPITAL: Court Orders $3MM Payment Over Forex Fraud ----------------------------------------------------------- The U.S. Commodity Futures Trading Commission said Judge B. Lynn Winmill of the U.S. District Court for the District of Idaho entered a consent order for permanent injunction against defendant Brad L. Demuzio and an order of default judgment against his company, Demuzio Capital Management, LLC (DCM), both of Chubbuck, Idaho, charged by the CFTC with operating a fraudulent $1.8 million commodity pool and foreign currency (forex) Ponzi scheme (see CFTC Press Release 6229-12, April 12, 2012). The consent order and order of default judgment (final orders) impose a permanent injunction against Demuzio and DCM, respectively, finding that the defendants violated the anti-fraud provisions of the Commodity Exchange Act and failed to register with the CFTC as Commodity Pool Operators (CPOs). In addition to the permanent injunction, the final orders each impose permanent trading and registration bans against Demuzio and DCM and order them to jointly pay restitution of $805,273. In addition, under terms of the final orders Demuzio is required to jointly pay a $1 million civil monetary penalty, and DCM is ordered to jointly pay a civil monetary penalty of $2,415,819. The final orders find that from at least June 18, 2008 through November 2011, Demuzio, through DCM, solicited and accepted approximately $1.8 million from at least 16 investors to trade forex through a pooled investment vehicle. The final orders find that the defendants misappropriated investor funds to pay Demuzio's personal expenses and sent emails to investors that falsely represented that their principal remained intact and was earning profits. The final orders also find that the defendants acted as a CPO without being registered as such. In a related criminal proceeding based on substantially the same facts, Demuzio pleaded guilty in the U.S. District Court for the District of Idaho to one count of wire fraud. Sentencing is scheduled for November 5, 2012. The CFTC appreciates the assistance of the U.S. Attorney's Office for the District of Idaho and the Federal Bureau of Investigation. CFTC Division of Enforcement staff members responsible for this action are Lara Turcik, Christopher Giglio, Manal M. Sultan, Lenel Hickson, Jr., Stephen J. Obie, and Vincent A. McGonagle. DAFFY'S INC: GA Keen to Market High-Fashion Discount Stores ----------------------------------------------------------- GA Keen Realty Advisors, a division of Great American Group, Inc., is marketing several world-class lease opportunities that offer strategic retail locations in New York City and surrounding areas and boroughs, along with three sites in northeastern New Jersey. GA Keen Realty Advisors has been retained by Jericho Acquisitions I, LLC and Aurora Capital Associates to market the remaining 11 former Daffy's high-fashion discount stores as part of a bankruptcy lease auction, according to GA Keen Realty Advisors Co- President Harold Bordwin. "All sites are available at below-market lease rates and are in strategic locations with flagship potential, which make these properties desirable for retailers who want to make inroads into New York City and its adjacent markets," Mr. Bordwin said. The retail spaces range from 17,000 to 54,000 square feet in size and are at the following locations: - Route 1 and Route 9 North, Elizabeth, New Jersey - 165 Route 4 West, Paramus, New Jersey (Paramus Place) - 215 Route 46 West, Totowa, New Jersey (Totowa Shopping Center) - 2146 Bartow Ave., Bronx, New York (Bay Plaza) - 88-01 Queens Blvd., Elmhurst, New York (Queens Place) - 1900 Northern Blvd., Manhasset, New York - 335 Madison Ave. at 44th St., New York City - 135 East 57th St., New York City - 1775 Broadway at 57th St., New York City - 229 West 43rd St., New York City - 3 East 18th St., New York City The bid deadline is Friday, Dec. 7 and an auction date is currently set for Wednesday, Dec. 12. All transactions are subject to bankruptcy court approval. "We have the ability to transact prior to the bid deadline so we encourage all interested parties to reach out to us immediately." For more information about the properties, contact Harold Bordwin at 646-381-9222 or email daffys@greatamerican.com Daffy's Inc., founded in 1961 and based in Secaucus, New Jersey, was known for selling national fashion brands at up to 80 percent off list prices. A victim of a fiercely competitive landscape that had already claimed rivals Syms and Filene's Basement, the company announced it was going out of business in July. * Disclosure-Pursuant to an Order dated August 8, 2012, of the United States Bankruptcy Court presiding over the Chapter 11 case, Case #12-13312( MG) In Re Daffy's Inc., Daffy's was authorized to sell certain assets to Jericho Acquisition l, LLC including but not limited to its interest in certain real property leases. Jericho has retained GA Keen Realty Advisors, LLC and Keen Realty, LLC to conduct an auction in order to sell these real property leases acquired from Daffy's. GA Keen Realty Advisors provides real estate analysis, valuation and strategic planning services, brokerage, M&A, auction services, lease restructuring services and real estate capital market services. For more information, contact GA Keen Realty Advisors at (646) 381-9222 or visit http://www.greatamerican.com/services/real_estate/real_estate.html About Great American Group Great American Group (OTCBB: GAMR) -- is a provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. About Daffy's Inc. Secaucus, New Jersey-based Daffy's Inc., a 19-store chain, off- price retailer of designer fashions for women, men, children, and the home, located in the New York metropolitan area and Philadelphia, filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-13312) on Aug. 1, 2012, with a plan to shutter the business and pay off creditors in full. A copy of the Plan is available at: http://bankrupt.com/misc/Daffys_Chapter_11_Plan.pdf The Debtor has an Asset Purchase, Assignment and Support Agreement, dated as July 18, 2012, with Marcia Wilson, The Wilson 2003 Family Trust, and Jericho Acquisitions I LLC, pursuant to which the Debtor's leasehold interests will be sold to Jericho Acquisitions I LLC through the Plan. The Debtor has hired Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources LLC to liquidate the Debtor's inventory. The Debtor estimates that the proceeds received from the liquidation of its inventory and the sale of its leasehold interests will exceed at least $60 million to satisfy approximately $37 million in claims. Cost of administering the chapter 11 case will not exceed approximately $5 million (after certain expenses are reimbursed pursuant to the Purchase Agreement). Accordingly, the Debtor believes that the disposition of the Debtor's principal assets will generate more than sufficient cash to pay all holders of Allowed Claims (as such term is defined in the Plan) in full, with interest, thus rendering all classes under the Plan unimpaired. The Debtor has filed its schedules, disclosing $51,106,469 in total assets and $36,646,856 in total liabilities. Bankruptcy Judge Martin Glenn presides over the case. The Debtor is represented by Andrea Bernstein, Esq., and Debra A. Dandeneau, Esq., at Weil, Gotshal & Manges LLP as counsel. Donlin, Recano & Company, Inc., serves as claims and notice agent. The Debtor's case is being funded by a $10 million postpetition financing with Vim-3, L.L.C., Vimwilco, L.P., and Marcia Wilson, as successor to Vim Associates, as guarantors; and Wells Fargo, National Association, as DIP lender. The DIP loan consists of $2.5 million in new money loans available on a revolving basis; and the roll up of $6.2 million of existing prepetition debt. Counsel for the DIP Lender are Donald E. Rothman, Esq., and Nathan C. Pagett, Esq., at Riemer & Braunstein LLP. Gordon Brothers and Hilco Merchant Resources are represented by Curtis, Mallet-Prevost, Colt & Mosle LLP Jericho Acquisition is represented by Brad Eric Scheler, Esq., at Fried, Frank, Harris, Shriver & Jacobson LLP. Marcia Wilson is represented by Dana B. Cobb, Esq., at Beattie Padovano, LLC. DEWEY & LEBOEUF: Creditors Want Ex-Partners Committee Dissolved --------------------------------------------------------------- Stewart Bishop at Bankruptcy Law360 reports that the official committee of unsecured creditors on Tuesday joined Dewey & LeBoeuf LLP in asking a New York bankruptcy judge to dissolve the official committee of former partners in the case, arguing its continued existence is too expensive as well as unnecessary. The unsecured creditors committee claims the former partners committee is dedicated to promoting the interests of a subset of its intended constituents -- Dewey retirees -- as opposed to former partners, and is not even essential to properly represent those interests, according to Bankruptcy Law360. Bankruptcy Law360 also reports that Dewey & LeBoeuf again pressed the bankruptcy judge to disband the former partners' committee, arguing there is no justification for the "extraordinary remedy" of a second statutory committee in the case. Bankruptcy Law360 relates that the bankrupt law firm claims the U.S. Trustee in the action has failed to explain why the former partners committee is necessary or appropriate, either when it was originally appointed or now. About Dewey & LeBoeuf Dewey & LeBoeuf LLP sought Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) to complete the wind-down of its operations. The firm had struggled with high debt and partner defections. Dewey disclosed debt of $245 million and assets of $193 million in its chapter 11 filing late evening on May 29, 2012. Dewey & LeBoeuf LLP operated as a prestigious, New York City- based, law firm that traced its roots to the 2007 merger of Dewey Ballantine LLP -- originally founded in 1909 as Root, Clark & Bird -- and LeBoeuf, Lamb, Green & MacCrae LLP -- originally founded in 1929. In recent years, more than 1,400 lawyers worked at the firm in numerous domestic and foreign offices. At its peak, Dewey employed about 2,000 people with 1,300 lawyers in 25 offices across the globe. When it filed for bankruptcy, only 150 employees were left to complete the wind-down of the business. Dewey's offices in Hong Kong and Beijing are being wound down. The partners of the separate partnership in England are in process of winding down the business in London and Paris, and administration proceedings in England were commenced May 28. All lawyers in the Madrid and Brussels offices have departed. Nearly all of the lawyers and staff of the Frankfurt office have departed, and the remaining personnel are preparing for the closure. The firm's office in Sao Paulo, Brazil, is being prepared for closure and the liquidation of the firm's local affiliate. The partners of the firm in the Johannesburg office, South Africa, are planning to wind down the practice. The firm's ownership interest in its practice in Warsaw, Poland, was sold to the firm of Greenberg Traurig PA on May 11 for $6 million. The Pension benefit Guaranty Corp. took $2 million of the proceeds as part of a settlement. Judge Martin Glenn oversees the case. Albert Togut, Esq., at Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The petition was signed by Jonathan A. Mitchell, chief restructuring officer. JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the lenders under the Revolver Agreement, hired Kramer Levin Naftalis & Frankel LLP. JPMorgan, as Collateral Agent for the Revolver Lenders and the Noteholders, hired FTI Consulting and Gulf Atlantic Capital, as financial advisors. The Noteholders hired Bingham McCutchen LLP as counsel. The U.S. Trustee formed two committees -- one to represent unsecured creditors and the second to represent former Dewey partners. The creditors committee hired Brown Rudnick LLP led by Edward S. Weisfelner, Esq., as counsel. The Former Partners hired Tracy L. Klestadt, Esq., and Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel. DIGITAL DOMAIN: Faces Questions Over Bankruptcy Settlement ---------------------------------------------------------- Peg Brickley at Dow Jones' DBR Small Cap reports that a federal bankruptcy watchdog and private equity investor Palm Beach Capital say Digital Domain Media Group is back in the special effects business, but not in a good way. About Digital Domain Digital Domain Media Group, Inc. --http://www.digitaldomain.com/ -- Port St. Lucie, Florida-based engaged in the creation of original content animation feature films, and development of computer-generated imagery for feature films and transmedia advertising primarily in the United States. Digital Domain Media Group, Inc. and 13 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-12568) on Sept. 11, 2012, to sell its business for $15 million to Searchlight Capital Partners LP, subject to higher and better offers. At the auction on Sept. 21, the principal part of the business was purchased by a joint venture between Galloping Horse America LLC, an affiliate of Beijing Galloping Horse Co., and an affiliate of Reliance Capital Ltd., based in Mumbai. The $36.7 million total value of the contact includes $3.6 million to cure defaults on contracts and $2.9 million in reimbursement of payroll costs. Attorneys at Pachulski Stang Ziehl & Jones serve as counsel to the Debtors. FTI Consulting, Inc.'s Michael Katzenstein is the chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. An official committee of unsecured creditors appointed in the case is represented by lawyers at Sullivan Hazeltine Allinson LLC and Brown Rudnick LLP. The company listed assets of $205 million and liabilities totaling $214 million. Debt includes $40 million on senior secured convertible notes plus $24.7 million in interest. There is another issue of $8 million in subordinated secured convertible notes. The Debtors also have sought ancillary relief in Canada, pursuant to the Companies' Creditors Arrangement Act in the Supreme Court of British Columbia, Vancouver Registry. DUNES MOTEL: Case Summary & 2 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Dunes Motel, Inc. 40 Lake Belleuve, #100 Bellevue, WA 98005 Bankruptcy Case No.: 12-20811 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court Western District of Washington (Seattle) Judge: Marc Barreca Debtor's Counsel: Dallas W. Jolley, Jr., Esq. 4707 S. Junett Street, Suite B Tacoma, WA 98409 Tel: (253) 761-8970 E-mail: dallas@jolleylaw.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/wawb12-20811.pdf The petition was signed by Gregory S. Tift, president. EAST COAST: Case Summary & 17 Unsecured Creditors ------------------------------------------------- Debtor: East Coast Capital Investment, LLC dba East Coast Capital Investments, LLC 260 Westward Drive, #202 Miami Springs, FL 33166 Bankruptcy Case No.: 12-35532 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: Laurel M. Isicoff Debtor's Counsel: Richard R. Robles, Esq. LAW OFFICES OF RICHARD R. ROBLES, P.A. 905 Brickell Bay Drive, #228 Miami, FL 33131 Tel: (305) 755-9200 E-mail: rrobles@roblespa.com Scheduled Assets: $1,100 Scheduled Liabilities: $5,703,121 A copy of the Company's list of its 17 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/flsb12-35532.pdf The petition was signed by William A. Ugarte, managing member. EASY FINANCING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Easy Financing Corporation 6804 Holabird Avenue Dundalk, MD 21222-1745 Bankruptcy Case No.: 12-29443 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court District of Maryland (Baltimore) Judge: James F. Schneider Debtor's Counsel: Stephen B. Gerald, Esq. WHITEFORD, TAYLOR & PRESTON 7 St. Paul Street, Suite 1400 Baltimore, MD 21202 Tel: (410) 347-8700 E-mail: sgerald@wtplaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/mdb12-29443.pdf The petition was signed by Matthew A. Hornung, president. EDIETS.COM INC: Signs Definitive Merger Agreement with ASTV ----------------------------------------------------------- eDiets.com, Inc., has signed a definitive merger agreement under which eDiets.com will become a wholly-owned subsidiary of As Seen On TV, Inc. (OTCQB: ASTV), a direct response marketing company and owner of AsSeenOnTV.com, in a stock-for-stock transaction valued at approximately $13 million based on the closing per share price of ASTV's common stock on Oct. 30, 2012. Under the terms of the agreement, ASTV will issue 19,077,252 shares of its common stock in exchange for all of the issued and outstanding shares of eDiets common stock. Based on the number of shares that eDiets expects to have outstanding at the effective date of the merger, the Company expects that each eDiets.com stockholder will receive 1.2667 shares of ASTV common stock for each share of eDiets.com common stock. "The combination of eDiets and As Seen on TV will bring together what we believe to be the strongest team of direct response talent in the industry and a product line with significant growth potential," said Kevin Richardson, Chairman of eDiets.com. "We are excited to benefit from As Seen On TV's extensive marketing infrastructure, including new potential marketing channels, customer database and celebrity contacts and believe that they have the depth and experience needed to realize the potential of our fresh-prepared diet meal delivery service. We trust our stockholders will share our enthusiasm for the prospects of this exciting combination." The boards of directors of both companies have approved the agreement and the eDiets.com Board of Directors has recommended that eDiets.com's stockholders approve the merger. Upon receipt of stockholder approval and consummation of the anticipated merger, eDiets.com will become a wholly-owned subsidiary of As Seen On TV, Inc., and will continue to be operated by its current management team, including Kevin Richardson, Chairman of eDiets.com, and Jennifer Hartnett, President and Chief Executive Officer. The closing of the merger is subject to customary closing conditions, including approval of the transaction by eDiet.com's stockholders. Subject to satisfaction or waiver of these conditions, eDiets.com anticipates that the merger will close during the first quarter of 2013. Under the terms of the merger agreement, the Company may solicit superior proposals from third parties for a period of 30 calendar days continuing through Nov. 30, 2012. It is not anticipated that any developments will be disclosed with regard to this process unless the Company's Board of Directors makes a decision with respect to a potential superior proposal. There are no guarantees that this process will result in a superior proposal. 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 June 30, 2012, showed $1.99 million in total assets, $4.26 million in total liabilities, all current, and a $2.26 million total stockholders' deficit. Bankruptcy Warning On Aug. 10, 2012, the Company entered into a letter of intent with As Seen On TV, Inc., a direct response marketing company, whereby ASTV agreed to acquire all of the Company's outstanding shares of common stock in exchange for 16,185,392 newly issued shares of ASTV common stock, representing an acquisition price of approximately $0.80 per share of the Company's common stock. Under the Letter of Intent, all of the Company's other outstanding securities exercisable or exchangeable for, or convertible into, the Company's capital stock would be deemed converted into, and exchanged for securities of ASTV on an as converted basis immediately prior to the record date of the acquisition. Both before and after consummation of the transactions described in the Letter of Intent, and if those transactions are never consummated, the continuation of the Company's business is dependent upon raising additional financial support. "In light of our results of operations, management has and intends to continue to evaluate various possibilities to the extent these possibilities do not conflict with our obligations under the Letter of Intent," the Company said in its quarterly report for the period ended June 30, 2012. "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 our assets, entering into a business combination, reducing or eliminating operations, liquidating assets, or seeking relief through a filing under the U.S. Bankruptcy Code." EDISON MISSION: Incurs $162 Million Net Loss in Third Quarter ------------------------------------------------------------- Edison Mission Energy filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $162 million on $340 million of operating revenues for the three months ended Sept. 30, 2012, compared with net income of $33 million on $437 million of operating revenues for the same period during the prior year. For the nine months ended Sept. 30, 2012, the Company reported a net loss of $348 million on $1 billion of operating revenues, in comparison with a net loss of $19 million on $1.27 billion of operating revenues for the same period a year ago. The Company's balance sheet at Sept. 30, 2012, showed $8.17 billion in total assets, $6.68 billion in total liabilities and $1.48 billion in total equity. A copy of the Form 10-Q is available for free at: http://is.gd/CNzn5m About Edison Mission Santa Ana, California-based Edison Mission Energy is a holding company whose subsidiaries and affiliates are engaged in the business of developing, acquiring, owning or leasing, operating and selling energy and capacity from independent power production facilities. EME also engages in hedging and energy trading activities in power markets through its subsidiary Edison Mission Marketing & Trading, Inc. EME was formed in 1986 and is an indirect subsidiary of Edison International. Edison International also owns Southern California Edison Company, one of the largest electric utilities in the United States. As of Dec. 31, 2010, EME's subsidiaries and affiliates owned or leased interests in 39 operating projects with an aggregate net physical capacity of 10,979 MW of which EME's pro rata share was 9,852 MW. At Dec. 31, 2010, EME's subsidiaries and affiliates also owned four wind projects under construction totaling 480 MW of net generating capacity. The Company reported a net loss of $1.07 billion in 2011, compared with net income of $163 million in 2010. Bankruptcy Warning At June 30, 2012, EME, and its subsidiaries without contractual dividend restrictions, had corporate cash and cash equivalents of $879 million, which includes Midwest Generation's cash and cash equivalents of $177 million. EME and Midwest Generation's previous revolving credit agreements have been terminated or expired and no longer are sources of liquidity. At June 30, 2012, EME had $3.7 billion of unsecured notes outstanding, $500 million of which mature in June 2013. EME is currently experiencing operating losses due to lower realized energy and capacity prices, higher fuel costs and lower generation at the Midwest Generation plants. Forward market prices indicate that these trends are expected to continue for a number of years. As a result, EME expects that it will incur further reductions in cash flow and losses in the current year and in subsequent years. A continuation of these adverse trends coupled with pending debt maturities and the need to retrofit its Midwest Generation plants to comply with governmental regulations will exhaust EME's liquidity. Consequently, EME will need to consider all options available to it, including potential sales of assets, restructuring, reorganization of its capital structure, or conservation of cash that would be otherwise applied to the payment of obligations. EME has entered into non-disclosure and engagement agreements with advisors representing certain of its unsecured bondholders for the purpose of engaging in discussions with those advisors and Edison International regarding EME's financial condition. Absent a restructuring of its obligations, based on current projections, EME is not expected to have sufficient liquidity to repay the $500 million debt obligation due in June 2013. As a result, EME may need to file for protection under Chapter 11 of the U.S. Bankruptcy Code. * * * As reported by the TCR on July 4, 2012, Standard & Poor's Ratings Services lowered its corporate credit rating on Edison Mission Energy (EME) and its subsidiaries Midwest Generation LLC (Midwest Gen) and Edison Mission Marketing & Trading Inc. (EMMT), to 'CCC' from 'CCC+' based on greater refinance risk in 2013 due to lower cash flow over the medium term and reduced liquidity and greater potential for corporate restructuring. In the April 26, 2012, edition of the TCR, Fitch Ratings has lowered Edison Mission Energy (EME) and Midwest Generation LLC's (MWG) long-term Issuer Default Ratings (IDRs) to 'CC' from 'B-'. The lower IDRs for EME and MWG reflect the challenges to the companies' future solvency and liquidity caused primarily by a prolonged decline in historic and forward power price curves, rising operating and capital costs due to environmental regulations and an unsustainably high debt burden. The Troubled Company Reporter said on April 14, 2012, that Moody's Investors Service downgraded EME's Corporate Family Rating (CFR) and Probability of Default Rating (PDR) to Ca from Caa2. "The rating action reflects the high probability of a default over the next several months as the capital structure appears likely to be restructured in light of expected weak cash flow, environmental capital requirements, and upcoming debt maturities," said A.J. Sabatelle, Senior Vice President at Moody's. "The rating action recognizes comments by EME's management in its recent SEC quarterly filings concerning the increased default prospects for EME and its subsidiary MWG, and factors in Moody's recovery prospects for security holders at EME and MWG in a default scenario," added Sabatelle. EDISON MISSION: May File for Bankruptcy Protection -------------------------------------------------- Mark Chediak at Bloomberg News reports that Edison International's Edison Mission Energy unit may not make a $97 million bond interest payment on Nov. 15, which would require the unit to file for Chapter 11 bankruptcy protection, Edison Chief Executive Officer Ted Craver said during a conference call Nov. 1. About Edison Mission Santa Ana, California-based Edison Mission Energy is a holding company whose subsidiaries and affiliates are engaged in the business of developing, acquiring, owning or leasing, operating and selling energy and capacity from independent power production facilities. EME also engages in hedging and energy trading activities in power markets through its subsidiary Edison Mission Marketing & Trading, Inc. EME was formed in 1986 and is an indirect subsidiary of Edison International. Edison International also owns Southern California Edison Company, one of the largest electric utilities in the United States. As of Dec. 31, 2010, EME's subsidiaries and affiliates owned or leased interests in 39 operating projects with an aggregate net physical capacity of 10,979 MW of which EME's pro rata share was 9,852 MW. At Dec. 31, 2010, EME's subsidiaries and affiliates also owned four wind projects under construction totaling 480 MW of net generating capacity. The Company reported a net loss of $1.07 billion in 2011, compared with net income of $163 million in 2010. The Company's balance sheet at June 30, 2012, showed $8.25 billion in total assets, $6.59 billion in total liabilities and $1.66 billion in total equity. Bankruptcy Warning At June 30, 2012, EME, and its subsidiaries without contractual dividend restrictions, had corporate cash and cash equivalents of $879 million, which includes Midwest Generation's cash and cash equivalents of $177 million. EME and Midwest Generation's previous revolving credit agreements have been terminated or expired and no longer are sources of liquidity. At June 30, 2012, EME had $3.7 billion of unsecured notes outstanding, $500 million of which mature in June 2013. EME is currently experiencing operating losses due to lower realized energy and capacity prices, higher fuel costs and lower generation at the Midwest Generation plants. Forward market prices indicate that these trends are expected to continue for a number of years. As a result, EME expects that it will incur further reductions in cash flow and losses in the current year and in subsequent years. A continuation of these adverse trends coupled with pending debt maturities and the need to retrofit its Midwest Generation plants to comply with governmental regulations will exhaust EME's liquidity. Consequently, EME will need to consider all options available to it, including potential sales of assets, restructuring, reorganization of its capital structure, or conservation of cash that would be otherwise applied to the payment of obligations. EME has entered into non-disclosure and engagement agreements with advisors representing certain of its unsecured bondholders for the purpose of engaging in discussions with those advisors and Edison International regarding EME's financial condition. Absent a restructuring of its obligations, based on current projections, EME is not expected to have sufficient liquidity to repay the $500 million debt obligation due in June 2013. As a result, EME may need to file for protection under Chapter 11 of the U.S. Bankruptcy Code. * * * In August 2012, Moody's Investors Service downgraded the long-term ratings of Edison Mission Energy and its subsidiary, Midwest Generation Company, LLC (MWG), including EME's senior unsecured notes to Ca from Caa3 and EME's Corporate Family Rating (CFR) and Probability of Default Rating (PDR) to Ca from Caa2. The rating outlook for EME and MWG is negative. "The rating action reflects the high probability of a default over the next several months as the capital structure appears likely to be restructured in light of expected weak cash flow, environmental capital requirements, and upcoming debt maturities," said A.J. Sabatelle, Senior Vice President at Moody's. "The rating action recognizes comments by EME's management in its recent SEC quarterly filings concerning the increased default prospects for EME and its subsidiary MWG, and factors in Moody's recovery prospects for security holders at EME and MWG in a default scenario," added Sabatelle. ELPIDA MEMORY: Tokyo District Court Picks Micron as Buyer --------------------------------------------------------- Michael Bathon at Bloomberg News reports that the Tokyo District Court picked Micron Technology Inc. as the buyer for Elpida Memory Inc. to revive the bankrupt Japanese chipmaker, dismissing an alternative plan put forward by bondholders. According to the report, the court said creditors must vote on a reorganization plan that includes the Micron offer by Feb. 26, Elpida said in a statement Oct. 31. Boise, Idaho-based Micron offered 200 billion yen ($2.5 billion) in July to take over Elpida. Bondholders challenged the deal, calling it "severely detrimental." "This is an important step forward in the reorganization process," Micron Chief Executive Officer Mark Durcan said in a separate statement. The transaction, which remains subject to creditors' approval as well as court and regulatory approvals in other countries, is expected to close in the first half of 2013, the company said. The report relates that Micron's purchase of Tokyo-based Elpida may help the U.S. company vie with industry leader Samsung Electronics Co. while giving it greater control over supply gluts that have caused it to report losses amid falling prices. The deal doubles the U.S. company's share of the global market for dynamic random access memory, the most widely used memory chips in personal computers, to about 24%. The Bloomberg report discloses that Micron, the largest U.S. maker of computer memory chips, won approval from the Tokyo District Court in May to negotiate to buy Elpida's entire business after the Japanese company held two bidding rounds. Some of Elpida's creditors had urged the Tokyo court to reject Micron's takeover and presented an alternative plan in August. About Elpida Memory Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a Japan-based company principally engaged in the development, design, manufacture and sale of semiconductor products, with a focus on dynamic random access memory (DRAM) silicon chips. The main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile RAM and XDR DRAM, among others. The Company distributes its products to both domestic and overseas markets, including the United States, Europe, Singapore, Taiwan, Hong Kong and others. The company has eight subsidiaries and two associated companies. After semiconductor prices plunged, Japan's largest maker of DRAM chips filed for bankruptcy in February with liabilities of 448 billion yen ($5.6 billion) after losing money for five quarters. Elpida Memory and its subsidiary, Akita Elpida Memory, Inc., filed for corporate reorganization proceedings in Tokyo District Court on Feb. 27, 2012. The Tokyo District Court immediately rendered a temporary restraining order to restrain creditors from demanding repayment of debt or exercising their rights with respect to the company's assets absent prior court order. Atsushi Toki, Attorney-at-Law, has been appointed by the Tokyo Court as Supervisor and Examiner in the case. Elpida Memory Inc. sought the U.S. bankruptcy court's recognition of its reorganization proceedings currently pending in Tokyo District Court, Eight Civil Division. Yuko Sakamoto, as foreign representative, filed a Chapter 15 petition (Bankr. D. Del. Case No. 12-10947) for Elpida on March 19, 2012. EME HOMER: Incurs $180 Million Net Loss in Third Quarter -------------------------------------------------------- EME Homer City Generation L.P. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $180 million on $122 million of total operating revenues for the three months ended Sept. 30, 2012, compared with net income of $5 million on $158 million of total operating revenues for the same period a year ago. The Company incurred a net loss of $290 million on $300 million of total operating revenues for the nine months ended Sept. 30, 2012, compared with a net loss of $38 million on $410 million of total operating revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2012, showed $1.08 billion in total assets, $1.72 billion in total liabilities, and a $641 million partners' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/WjbZ3x About Homer City Homer City, Pennsylvania-based EME Homer City Generation L.P., is a Pennsylvania limited partnership with Chestnut Ridge Energy Company as a limited partner with a 99.9 percent interest and Mission Energy Westside Inc. as a general partner with a 0.1 percent interest. Both Chestnut Ridge Energy and Mission Energy Westside are wholly owned subsidiaries of Edison Mission Holdings Co., a wholly owned subsidiary of EME. EME is an indirect wholly owned subsidiary of Edison International. EME Homer City was formed for the purpose of acquiring, owning and operating three coal-fired electric generating units and related facilities located in Indiana County, Pennsylvania with an aggregate capacity of 1,884 MW, which Homer City collectively refers to as the "Homer City plant," for the purpose of producing electric energy. Homer City acquired the Homer City plant on March 18, 1999, and completed a sale-leaseback of its facilities to third parties in December 2001. Certain divestitures of Homer City's leasehold interest in the plant are subject to consent rights of the holders of the secured lease obligation bonds issued in connection with the original sale-leaseback transaction. GECC is currently engaged in discussions and has reached an agreement in principle on a non- binding restructuring term sheet with certain of the holders of the secured lease obligation bonds regarding amendments to the terms of the 8.137% Senior Secured Bonds due 2019 and the 8.734% Senior Secured Bonds due 2026, each issued by Homer City Funding LLC. "Even though an agreement in principle has been reached with certain holders of the secured lease obligation bonds, that agreement may not be approved by the secured lease obligation bondholders as required under the operative documents to effectuate the necessary modifications to the terms of the bonds. If an agreement to modify the terms of the bonds is not approved and consummated, then it is possible that Homer City could become the subject of bankruptcy proceedings," the Partnership said in its quarterly report for the period ended June 30, 2012. The Company reported a net loss of $686 million in 2011, compared with net income of $27 million in 2010. PricewaterhouseCoopers LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2011. The indepdendent auditors noted that the Partnership does not expect to generate sufficient capital from operations necessary to meet its obligations, which raises substantial doubt on its ability to continue as a going concern. FIRST FINANCIAL: Closing of Sale Agreement Extended to Nov. 14 -------------------------------------------------------------- First Federal Savings Bank of Elizabethtown, Inc., First Financial Service Corporation's banking subsidiary, and First Security Bank of Owensboro, Inc., the banking subsidiary of First Security, Inc., agreed to extend the termination date of their Branch Purchase Agreement from Oct. 31, 2012, to Nov. 14, 2012. The Agreement provides for the sale of First Federal's four retail banking offices in Louisville, Kentucky to First Security. The sale of First Federal's Louisville branches is subject to First Security obtaining regulatory approvals, raising sufficient capital to meet any condition for such regulatory approval, and other customary closing conditions. The extension is intended to give the parties an additional two weeks to attempt to negotiate an amendment to the agreement that gives First Security additional time to complete its capital raise and meet the closing conditions on terms satisfactory to First Federal. About First Financial Elizabethtown, Kentucky-based First Financial Service Corporation is the parent bank holding company of First Federal Savings Bank of Elizabethtown, which was chartered in 1923. The Bank serves six contiguous counties encompassing central Kentucky and the Louisville metropolitan area, through its 17 full-service banking centers and a commercial private banking center. As reported in the TCR on April 9, 2012, Crowe Horwath LLP, in Louisville, Ky., audited the Company's financial statements for 2011. The independent auditors said that the Company has recently incurred substantial losses, largely as a result of elevated provisions for loan losses and other credit related costs. "In addition, both the Company and its bank subsidiary, First Federal Savings Bank, are under regulatory enforcement orders issued by their primary regulators. First Federal Savings Bank is not in compliance with its regulatory enforcement order which requires, among other things, increased minimum regulatory capital ratios. First Federal Savings Bank's continued non-compliance with its regulatory enforcement order may result in additional adverse regulatory action." The Company's balance sheet at June 30, 2012, showed $1.192 billion in total assets, $1.143 billion in total liabilities, and stockholders' equity of $48.5 million. In its 2012 Consent Order with the FDIC and KDFI, the Bank agreed to achieve and maintain a Tier 1 capital ratio of 9.0% and a total risk-based capital ratio of 12.0% by June 30, 2012. "At June 30, 2012, we were not in compliance with the Tier 1 and total risk- based capital requirements. We notified the bank regulatory agencies that the increased capital levels would not be achieved and anticipate that the FDIC and KDFI will reevaluate our progress toward achieving the higher capital ratios at Sept. 30, 2012." FIRST MARINER: Reports $7.9 Million Net Income in Third Quarter --------------------------------------------------------------- 1st Mariner Bancorp reported net income of $7.92 million on $11.91 million of total interest income for the three months ended Sept. 30, 2012, compared with a net loss of $7.96 million on $11.67 million of total interest income for the same period during the prior year. The Company reported net income of $15.41 million on $34.70 million of total interest income for the nine months ended Sept. 30, 2012, compared with a net loss of $26.26 million on $35.51 million of total interest income for the same period a year ago. The Company's balance sheet at Sept. 30, 2012, showed $1.29 billion in total assets, $1.30 billion in total liabilities, and a $8.76 million total stockholders' deficit. Mark A. Keidel, 1st Mariner's chief executive officer, said, "Our positive momentum in earnings continued as we experienced improvements in operating results across all segments of operating performance measures. A record number of mortgage originations during the quarter and for the first nine months of 2012 drove a 110% increase in non-interest income in the third quarter of 2012. While mortgage led the way in operating performance improvement for the third quarter, we also experienced higher net interest income, lower charge offs and credit related expenses, and reduced operating expenses." Mr. Keidel added, "Along with the improved financial performance, 1st Mariner successfully consolidated administrative units in its Canton headquarters in the third quarter which will reduce future occupancy costs and recently completed a successful conversion of its data processing platform that will enhance customer capabilities and improve back office efficiencies. These initiatives required extraordinary commitment and skill from our employees, and lay the groundwork for improved customer service and lower operating costs." A copy of the press release is available for free at: http://is.gd/uNCdB8 About First Mariner Headquartered in Baltimore, Maryland, First Mariner Bancorp -- http://www.1stmarinerbancorp.com/-- is a bank holding company whose business is conducted primarily through its wholly owned operating subsidiary, First Mariner Bank, which is engaged in the general general commercial banking business. First Mariner was established in 1995 and has total assets in excess of $1.3 billion as of Dec. 31, 2010. "Quantitative measures established by regulation to ensure capital adequacy require the [First Mariner] Bank to maintain minimum amounts and ratios of total and Tier I capital to risk-weighted assets, and of Tier I capital to average quarterly assets," the Company said in the filing. "As of March 31, 2011, the Bank was "under-capitalized" under the regulatory framework for prompt corrective action." For the year ended Dec. 31, 2011, Stegman & Company, in Baltimore, Maryland, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company continued to incur significant net losses in 2011, primarily from loan losses and costs associated with real estate acquired through foreclosure. The Company has insufficient capital per regulatory guidelines and has failed to reach capital levels required in the Cease and Desist Order issued by the Federal Deposit Insurance Corporation in September 2009. Bankruptcy Warning As of Dec. 31, 2011, the Bank's and the Company's capital levels were not sufficient to achieve compliance with the higher capital requirements the Company was required to have met by June 30, 2010. The failure to meet and maintain these capital requirements could result in further action by the Company's regulators. In the September Order, the FDIC and the Commissioner directed the Bank to raise its leverage and total risk-based capital ratios to 6.5% and 10%, respectively, by March 31, 2010 and to 7.5% and 11%, respectively, by June 30, 2010. The Company did not meet these requirements. The Company has been in regular communication with the staffs of the FDIC and the Commissioner regarding efforts to satisfy the higher capital requirements. First Mariner currently does not have any material amounts of capital available to invest in the Bank and any further increases to the Company's allowance for loan losses and operating losses would negatively impact the Company's capital levels and make it more difficult to achieve the capital levels directed by the FDIC and the Commissioner. Because the Company has not met all of the capital requirements set forth in the September Order within the prescribed timeframes, the FDIC and the Commissioner could take additional enforcement action against the Company, including the imposition of monetary penalties, as well as further operating restrictions. The FDIC or the Commissioner could direct us to seek a merger partner or possibly place the Bank in receivership. If the Bank is placed into receivership, the Company would cease operations and liquidate or seek bankruptcy protection. If the Company were to liquidate or seek bankruptcy protection, First Mariner does not believe that there would be assets available to holders of the capital stock of the Company. GARLOCK SEALING: Wants Asbestos Claimants Barred From Injury Case ----------------------------------------------------------------- Brian Mahoney at Bankruptcy Law360 reports that Garlock Sealing Technologies LLC asked a North Carolina bankruptcy court Tuesday to deny asbestos claimants' request to intervene in its suit accusing a woman of fraudulently winning a $1.5 million Kentucky state court verdict over her husband's asbestos exposure. About Garlock Sealing Headquartered in Palmyra, New York, Garlock Sealing Technologies LLC is a unit of EnPro Industries, Inc. (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, 2010, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D. N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in their Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for asbestos matters. The Official Committee of Asbestos Personal Injury Claimants in the Chapter 11 cases is represented by Travis W. Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC, Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and Jeanna Rickards Koski, Esq., in Washington, D.C. 20005. Joseph W. Grier, III, the Court-appointed legal representative for future asbestos claimants, has retained A. Cotten Wright, Esq., at Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co- counsel. About 124,000 asbestos claims are pending against Garlock in state and federal courts across the country. The Company says majority of pending asbestos actions against it is stale and dormant -- almost 110,000 or 88% were filed more than four years ago and more than 44,000 or 35% were filed more than 10 years ago. Garlock said in the Disclosure Statement that all asbestos claims must be paid in full. Full payment enables the plan to allow continued ownership by parent EnPro Industries Inc. The Plan will create a trust to fund payment to present and future asbestos claimants. For currently existing claims, the trust will have insurance proceeds plus cash from Garlock together with a promise from EnPro to provide up to $30 million over time. For future claims, the trust will receive $60 million from Garlock plus a secured promise by Garlock to supply an additional $140 million. The promise will be secured by 51% of Garlock's stock. GATEHOUSE MEDIA: Incurs $9.4 Million Net Loss in Third Quarter -------------------------------------------------------------- Gatehouse Media, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $9.41 million on $120.79 million of total revenues for the three months ended Sept. 30, 2012, compared with a net loss of $5.16 million on $125.02 million of total revenues for the three months ended Sept. 25, 2011. For the nine months ended Sept. 30, 2012, the Company reported a net loss of $25.65 million on $365.39 million of total revenues, in comparison with a net loss of $28.42 million on $374.95 million of total revenues for the nine months ended Sept. 25, 2011. The Company's balance sheet at Sept. 30, 2012, showed $480.43 million in total assets, $1.30 billion in total liabilities, and a $829.10 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/jmL3tM About GateHouse Media GateHouse Media, Inc. -- http://www.gatehousemedia.com/-- headquartered in Fairport, New York, is one of the largest publishers of locally based print and online media in the United States as measured by its 97 daily publications. GateHouse Media currently serves local audiences of more than 10 million per week across 21 states through hundreds of community publications and local Web sites. The Company reported a net loss of $22.22 million for the year ended Jan. 1, 2012, a net loss of $26.64 million for the year ended Dec. 31, 2010, and a net loss of $530.61 million for the year ended Dec. 31, 2009. Bankruptcy Warning 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. There can be no assurance that the Company's business will generate cash flow from operations or that future borrowings will be available to the Company in amounts sufficient to enable it to pay its indebtedness or to fund our other liquidity needs. Currently the Company does not have the ability to draw upon its revolving credit facility which limits its immediate and short- term access to funds. If the Company is unable to repay its indebtedness at maturity the Company may be forced to liquidate or reorganize its operations and business under the federal bankruptcy laws. GENERAL MOTORS: Dist. Court Rejects Employee's Retaliation Claim ---------------------------------------------------------------- District Judge David M. Lawson granted, in part, and denied, in part, General Motors LLC's motion for summary judgment in an employee compensation lawsuit. Patricia Kienzle alleges in a complaint filed in District Court that from July 2009 to January 2010, General Motors paid her less money for doing the same work as male supervisors and the male engineers that she managed. In an amended complaint, she also alleges that male supervisors she worked with harassed her, that managers and company human resources representative ignored her complaints of harassment, and that managers retaliated against her when she complained. Ms. Kienzle bases her complaints of discrimination and retaliation on Title VII of the Civil Rights Act of 1964, Michigan's counterpart legislation, and the Equal Pay Act. Ms. Kienzle has been working at GM since 1983, first, at its Ypsilanti facility, then at the Pontiac facility, both in Michigan. The Court heard oral argument on GM's motion on Oct. 25, 2012, and has concluded that the plaintiff has offered sufficient evidence on her Equal Pay Act and disparate treatment claims to survive summary judgment, but she has failed to do so on her retaliation claims. Accordingly, the Court ruled that the plaintiff's claims of retaliation under Title VII of the Civil Rights Act of 1964 and Michigan's Elliott-Larsen Civil Rights Act in the amended complaint are dismissed with prejudice. The motion is denied in all other respects. The lawsuit is captioned, PATRICIA A. KIENZLE, Plaintiff, v. GENERAL MOTORS, LLC, Defendant, Case No. 11-11930 (E.D. Mich.). A copy of the Court's Oct. 29 Opinion and Order is available at http://is.gd/pDL1ZFfrom Leagle.com. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company (NYSE:GM, TSX: GMM) -- http://www.gm.com/-- is one of the world's largest automakers, traces its roots back to 1908. GM employs 208,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GM's largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. was formed to acquire the operations of General Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The U.S. government once owned as much as 60.8% stake in New GM on account of the financing it provided to the bankrupt entity. The deal was closed July 10, 2009, and Old GM changed its name to Motors Liquidation Co. General Motors Corp. and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31, 2011. GRAY TELEVISION: Reports $15.8 Million Net Income in 3rd Quarter ---------------------------------------------------------------- Gray Television, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $15.87 million on $102.87 million of revenue for the three months ended Sept. 30, 2012, compared with net income of $1.98 million on $76.51 million of revenue for the same period during the prior year. The Company reported net income of $30.23 million on $278.24 million of revenue for the nine months ended Sept. 30, 2012, compared with net income of $1.46 million on $222.46 million of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2012, showed $1.27 billion in total assets, $1.11 billion in total liabilities, $13.19 million in series D perpetual preferred stock, and $149.94 million in total stockholders' equity. "We are pleased with our operating results for the third quarter of 2012. Our period over period increase in revenue for the third quarter was primarily due to increases in political advertising revenue and retransmission consent revenue. In addition, our local advertising, national advertising, internet advertising and other revenue also increased," the Company said in a press release. A copy of the Form 10-Q is available for free at: http://is.gd/jewl3e About Gray Television Formerly known as Gray Communications System, Atlanta, Georgia- based Gray Television, Inc., is a television broadcast company. Gray currently operates 36 television stations serving 30 markets. Each of the stations are affiliated with either CBS (17 stations), NBC (10 stations), ABC (8 stations) or FOX (1 station). In addition, Gray currently operates 38 digital second channels including 1 ABC, 4 Fox, 7 CW, 16 MyNetworkTV and 1 Universal Sports Network affiliates plus 8 local news/weather channels and 1 "independent" channel in certain of its existing markets. * * * As reported by the TCR on Sept. 26, 2012, Moody's Investors Service upgraded Gray Television, Inc.'s Corporate Family Rating (CFR) and Probability of Default Rating (PDR) each to B3 from Caa1. The upgrades reflect Moody's expectations for the company to benefit from strong political revenue demand through November 2012 resulting in improved credit metrics combined with management's commitment to reduce leverage. In the April 9, 2012, edition of the TCR, Standard & Poor's Ratings Services raised its corporate credit rating on Atlanta, Ga.-based TV broadcaster Gray Television Inc. to 'B' from 'B-'. "The 'B' rating reflects company's still-high debt leverage and weak discretionary cash flow, as well as our expectation that the company will maintain adequate headroom with its financial covenants in the absence of any further tightening of covenant thresholds. The stable rating outlook reflects our expectation that Gray will maintain lease-adjusted debt to average trailing- eight-quarter EBITDA below 7.5x. We also expect the company to generate modest positive discretionary cash flow in 2012," S&P said. GROUPON INC: SEC Completes Review Over Financial Restatement ------------------------------------------------------------ The Wall Street Journal's Shira Ovide reports that the Securities and Exchange Commission said in a letter dated Oct. 4 and released Friday by Groupon Inc. that the agency has completed its review of Groupon's filings. The SEC this summer began pressing Groupon to disclose more details on revenue from its new business lines and on reasons behind the daily-deal site's financial revision this spring. The Oct. 4 letter says the SEC still can take action later against Groupon. On March 30, 2012, Groupon announced it would revise its fourth quarter, 2011 financial results. The revision, the company said, would include a reduction in revenue and an increase in operating expenses. Groupon also noted, "In conjunction with the completion of the audit of Groupon's financial statements for the year ended December 31, 2011 by its independent auditor, Ernst & Young LLP, the Company included a statement of a material weakness in its internal controls over its financial statement close process in its Annual Report on Form 10-K for year ended December 31, 2011." Following the announcement, Groupon's stock declined sharply, losing nearly 17% of its value on April 2, 2012, closing at $15.27. Groupon, certain of its officers and directors, and the underwriters of its IPO, are facing various securities class- action lawsuits alleging violation of the federal securities laws by issuing false and misleading statements to investors. WSJ notes Groupon shares, which for months have traded well off their November initial public offering price of $20, on Nov. 2 touched an all-time low of $3.68. Groupon's stock price ended trading Friday at $3.83, down 5% on the day. About Groupon Inc. Chicago-based Groupon Inc. (NASDAQ: GRPN)-- http://www.groupon.com -- features a daily deal on the best stuff to do, eat, see and buy in 48 countries around the world. Groupon works with selected business partners to create a win-win proposition for business and consumers, delivering more than 1,000 daily deals globally. GUITAMMER COMPANY: Had $261,600 Net Loss in Third Quarter --------------------------------------------------------- The Guitammer Company reported a net loss of $261,592 on $555,115 of revenues for the three months ended Sept. 30, 2012, compared with a net loss of $221,995 on $179,272 of revenues for the same period last year. For the nine months ended Sept. 30, 2012, the Company had a net loss of $840,705 on $1.6 million of revenues, compared with a net loss of $666,263 on $1.2 million of revenues for the same period of 2011. The increase in net loss for the nine months ended Sept. 30, 2012, was caused by the increase of approximately $307,000 of non-cash expenses. The Company's balance sheet at Sept. 30, 2012, showed $1.1 million in total assets, $3.1 million in total liabilities, and a stockholders' deficit of $2.0 million. "The Company has incurred net losses, negative cash flows from operating activities, and has an accumulated deficit of approximately $7.7 million at Sept. 30, 2012. In addition, at Sept. 30, 2012, the Company had a cash balance of $216,069 and working capital deficiency of approximately $1.5 million. The Company has relied upon cash from its financing activities to fund its ongoing operations as it has not been able to generate sufficient cash from its operating activities in the past and there is no assurance it will be able to do so in the future. Unless the Company can obtain additional cash resources, these factors raise substantial doubt about the Company's ability to continue as a going concern." Friedman LLP, in East Hanover, New Jersey, following its audit of the Company's consolidated financial statements for the year ended Dec. 31, 2011, said that the Company's accumulated deficit and lack of capital raise substantial doubt about its ability to continue as a going concern. A copy of the Form 10-Q is available at http://is.gd/pyu7VY Westerville, Ohio-based The Guitammer Company is involved in the design and distribution of a low frequency audio transducer branded as the original ButtKicker(R) products. The Company, sells its products internationally. HARVARD ANNE: Case Summary & 2 Unsecured Creditors -------------------------------------------------- Debtor: Harvard Anne, LLC 3130 West Harvard Street Santa Ana, CA 92704 Bankruptcy Case No.: 12-22434 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Scott C. Clarkson Debtor's Counsel: Solomon A. Cheifer, Esq. LAW OFFICE OF SOLOMON A. CHEIFER 1101 California Avenue, Suite 100 Corona, CA 92881 Tel: (951) 520-6979 Fax: (951) 880-0893 E-mail: solomon@cheiferlaw.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 unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/cacb12-22434.pdf The petition was signed by Mark Louvier, managing member. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Trimco Finish, Inc. 12-14331 04/05/12 HOSTESS BRANDS: Judge Approves Settlements With Seven Unions ------------------------------------------------------------ Rachel Feintzeig at Dow Jones' Daily Bankruptcy Review reports that a bankruptcy judge approved settlement agreements that Hostess Brands Inc. struck with seven of its 12 unions, a group that consensually -- if reluctantly -- agreed to fresh labor deals and deep concessions. About Hostess Brands Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known for iconic brands such as Butternut, Ding Dongs, Dolly Madison, Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride, Twinkies and Wonder. Hostess has 36 bakeries, 565 distribution centers and 570 outlets in 49 states. Hostess filed for Chapter 11 bankruptcy protection early morning on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through 12-22056) in White Plains, New York. Debtor-affiliates that filed separate Chapter 11 petition are IBC Sales Corporation, IBC Trucking LLC, IBC Services LLC, Interstate Brands Corporation, and MCF Legacy Inc. Hostess Brands disclosed assets of $982 million and liabilities of $1.43 billion as of Dec. 10, 2011. Debt includes $860 million on four loan agreements. Trade suppliers are owed as much as $60 million. The bankruptcy filing was made two years after predecessors Interstate Bakeries Corp. and its affiliates emerged from bankruptcy (Bankr. W.D. Mo. Case No. 04-45814). Ripplewood Holding LLC, after providing $130 million to finance the plan, obtained control of IBC's business following the prior reorganization. Hostess Brands is privately held. The new owners pursued new Chapter 11 cases to escape from what they called "uncompetitive and unsustainable" union contracts, pension plans, and health benefit programs. In 2011, Hostess retained Houlihan Lokey to explore sales of its smaller assets and individual brands. Houlihan Lokey oversaw the sale of Mrs. Cubbison's to Sugar Foods Corporation for $12 million, but was unable to sell any of Hostess' core assets. Judge Robert D. Drain oversees the case. Hostess has hired Jones Day as bankruptcy counsel; Stinson Morrison Hecker LLP as general corporate counsel and conflicts counsel; Perella Weinberg Partners LP as investment bankers, FTI Consulting, Inc. to provide an interim treasurer and additional personnel for the Debtors, and Kurtzman Carson Consultants LLC as administrative agent. Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry Wilson, the head of turnaround and restructuring firm MAEVA Advisors, are representing the Teamsters union. Attorneys for The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union and Bakery & Confectionery Union & Industry International Pension Fund are Jeffrey R. Freund, Esq., at Bredhoff & Kaiser, P.L.L.C.; and Ancela R. Nastasi, Esq., David A. Rosenzweig, Esq., and Camisha L. Simmons, Esq., at Fulbright & Jaworski L.L.P. An official committee of unsecured creditors has been appointed in the case. The committee selected New York law firm Kramer Levin Naftalis & Frankel LLP as its counsel. Tom Mayer and Ken Eckstein head the legal team for the committee. IMPERIAL CAPITAL: FDIC Appeal on Directors Probe Ruling Nixed ------------------------------------------------------------- Carolina Bolado at Bankruptcy Law360 reports that U.S. District Judge Cathy Ann Bencivengo has dismissed an appeal from the Federal Deposit Insurance Corp., as the receiver for Imperial Capital Bancorp Inc., of a bankruptcy court's ruling allowing the unsecured creditors committee to investigate claims against the directors and officers of the bankrupt bank. In an order filed Oct. 24, Judge Bencivengo dismissed the FDIC's appeal without prejudice after both parties in the dispute had jointly asked to end the appeal, according to Bankruptcy Law360. About Imperial Capital La Jolla, California-based Imperial Capital Bancorp, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Calif. Case No. 09-19431) on Dec. 18, 2009. Gary E. Klausner, Esq., Eve H. Karasik, Esq., and Gregory K. Jones, Esq., at Stutman, Treister & Glatt, P.C., in Los Angeles, serves as the Debtor's bankruptcy counsel. FTI Consulting Inc. serves as its financial advisor. The Company disclosed $40.4 million in assets and $98.7 million in liabilities. Tiffany L. Carroll, the U.S. Trustee for Region 15, appointed three members to the official committee of unsecured creditors in the Debtor's case. David P. Simonds, Esq., and Christina M. Padien, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Los Angeles, represents the Committee as counsel. The ankruptcy Court last month confirmed Imperial Capital's Second Amended Chapter 11 Plan of Reorganization proposed by the Debtors and HoldCo Advisors. INDIANAPOLIS DOWNS: Judge Okays $500-Mil. Sale to Rival Centaur --------------------------------------------------------------- Jamie Santo at Bankruptcy Law360 reports that a Delaware bankruptcy judge on Wednesday approved the $500 million sale of Indianapolis Downs LLC to cross-state rival Centaur Holdings LLC but said he was not close to ruling on the confirmation of the horse track and casino's contested Chapter 11 plan. Bankruptcy Law360 relates that track chairman and CEO Ross Mangano -- the head of several family trusts collectively known as the "Oliver parties" -- had questioned the integrity of the sale process, especially Centaur's negotiations to resolve tax issues with the state of Indiana. About Indianapolis Downs Indianapolis Downs LLC operates Indiana Live -- http://www.indianalivecasino.com/-- a combined race track and casino at a state-of-the-art 283 acre Shelbyville, Indiana site. It also operates two satellite wagering facilities in Evansville and Clarksville, Indiana. Total revenue for 2010 was $270 million, representing an 8.7% increase in 2009. The casino captured 53% of the Indianapolis market share. In July 2001, Indianapolis Downs was granted a permit to conduct a horse track operation in Shelvyville, Indiana, and started operating the track in 2002. It was granted permission to operate the casino at the racetrack operation in May 2007. The casino began operations in July 2010. Indianapolis Downs and subsidiary, Indianapolis Downs Capital Corp., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-11046) in Wilmington, Delaware, on April 7, 2011. Indianapolis Downs estimated $500 million to $1 billion in assets and up to $500 million in debt as of the Chapter 11 filing. According to a court filing, the Debtor owes $98,125,000 on a first lien debt. It also owes $375 million on secured notes and $72.6 million on subordinated notes. Matthew L. Hinker, Esq., Scott D. Cousins, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP in Wilmington, Delaware, have been tapped as counsel to the Debtors. Christopher A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware, is the conflicts counsel. Lazard Freres & Co. LLC is the investment banker. Bose Mckinney & Evans LLP and Bose Public Affairs Group LLC serve as special counsel. Kobi Partners, LLC, is the restructuring services provider. Epiq Bankruptcy Solutions is the claims and notice agent. INFUSYSTEM HOLDINGS: Leap Tide Discloses 6.3% Equity Stake ---------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Leap Tide Capital Management, LLC, and Jan Loeb disclosed that, as of Oct. 22, 2012, they beneficially own 1,383,313 shares of common stock of InfuSystem Holdings, Inc., representing 6.33% of the shares outstanding. A copy of the filing is available for free at http://is.gd/fmCNiq About InfuSystem Holdings InfuSystem Holdings, Inc., operates through operating subsidiaries, including InfuSystem, Inc., and First Biomedical, Inc. InfuSystem provides infusion pumps and related services. InfuSystem provides services to hospitals, oncology practices and facilities and other alternate site healthcare providers. Headquartered in Madison Heights, Michigan, InfuSystem delivers local, field-based customer support, and also operates pump service and repair Centers of Excellence in Michigan, Kansas, California, and Ontario, Canada. After auditing the Company's 2011 financial statements, Deloitte & Touche LLP, in Detroit, Michigan, said that the possibility of a change in the majority representation of the Board and consequent event of default under the Credit Facility, which would allow the lenders to cause the debt of $24.0 million to become immediately due and payable, raises substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of $45.44 million in 2011, compared with a net loss of $1.85 million in 2010. The Company's balance sheet at June 30, 2012, showed $74.72 million in total assets, $35.52 million in total liabilities and $39.20 million in total stockholders' equity. INSPIRATION BIOPHARMACEUTICALS: Seeks to Sell Assets in Ch. 11 -------------------------------------------------------------- Inspiration Biopharmaceuticals Inc. has commenced a voluntary reorganization case pursuant to Chapter 11's provisions of the U.S. Bankruptcy Code. Inspiration's Chapter 11 case was filed on Oct. 30, 2012 with the U.S. Bankruptcy Court in Boston, Massachusetts (Bankr. D. Mass. Case No. 12-18687). With this filing, Inspiration is seeking to have the Bankruptcy Court's approval on detailed bidding and auction procedures for the sale of its assets to a third party purchaser. Inspiration's assets are notably comprised of commercial rights(1) to OBI-1, a recombinant porcine factor VIII (rpFVIII) for the treatment of hemophilia A with inhibitors and IB1001, a recombinant factor IX (rFIX) for the treatment of hemophilia B. Through its $200 million of convertible bonds, Ipsen is Inspiration's only senior secured creditor. Ipsen has agreed to include its hemophilia assets in the sale process under certain conditions. Ipsen's assets are comprised of commercial rights(2) to OBI-1 and IB1001 as well as its OBI-1 industrial facility in Milford (Boston, MA). In connection with the proposed asset sale, Inspiration and Ipsen will jointly mandate an investment bank for the transaction. Marc de Garidel, Chairman and Chief Executive Officer of Ipsen, said "The Chapter 11 filing and the proposed asset sale reflect the efforts by both Inspiration and Ipsen to find the best path to develop and commercialize their product candidates. Both companies will now strive to find the best partner to provide both patients and the medical community with new therapeutic solutions." Marc de Garidel added: "The first nine months sales of 2012, with all three specialty franchises up double digit, once more highlight the pertinence of the Group's strategy of focus. These solid fundamentals associated to external growth and partnering opportunities allow us to confirm our 2020 ambition of doubling sales and tripling recurring adjusted EBIT." Under the Chapter 11 procedure, Ipsen has agreed to provide Inspiration with so-called: "Debtor-in-Possession financing" (DIP) for an amount of up to $18.3 million assuming certain conditions are met. It is anticipated that the DIP financing will be sufficient to enable Inspiration and Ipsen to successfully achieve the sale to a third party purchaser. On the basis of available information, Ipsen's related impairment could result in the depreciation of part or all of the hemophilia- related assets on Ipsen's balance sheet for a total non-cash and non-recurring amount of around 120 million euros after tax (mainly composed of the convertible bonds, the Milford manufacturing site and the DIP financing). The ultimate charge will depend on the results of the auction process and the bankruptcy court's determination of the proceeds distribution to creditors therein. Partnership Agreement In January 2010, Inspiration entered into a strategic agreement with Ipsen, leveraging the combined expertise and resources of the two companies, to develop a broad portfolio of hemophilia products and two products in phase III. IB1001, an investigational intravenous recombinant factor IX (rFIX) therapy for the treatment and prevention of bleeding episodes in people with hemophilia B and OBI-1 an investigational intravenous recombinant porcine factor VIII (rpFVIII) therapy for the treatment of patients with i) acquired hemophilia A and ii) congenital hemophilia A who have developed inhibitors against human FVIII. In August 2011, Ipsen and Inspiration announced the extension of their agreement to create a hemophilia business unit structure that will act as the exclusive sales organization for all hemophilia products commercialized under the Inspiration brand in Europe. In July 2012 Inspiration announced that IB1001 was placed on clinical hold by the Food and Drug Administration (FDA). On 21 August 2012, Ipsen and Inspiration renegotiated their 2010 partnership. This agreement aimed to establish an effective structure whereby Ipsen gained commercial rights in key territories. Inspiration remains responsible for the world-wide development of OBI-1 and IB1001. Ipsen paid a bridging facility for an amount of $30 million providing both Inspiration with time to secure independent third party financing and Ipsen with time to assess potential ways forward. On 31 August 2012, Ipsen paid Inspiration $7.5 million and received a warrant for 15% of Inspiration's equity. Ipsen had agreed to pay Inspiration an additional $12.5 million if Inspiration had raised third party financing by the contractual deadline of 30 September 2012. Inspiration did not manage to raise external funding by this contractual deadline. About Ipsen Ipsen -- http://www.ipsen.com/-- is a global specialty-driven pharmaceutical company with total sales exceeding EUR1.1 billion in 2011. Ipsen's ambition is to become a leader in specialty healthcare solutions for targeted debilitating diseases. Its development strategy is supported by four franchises: neurology / Dysport(R), endocrinology / Somatuline(R), uro-oncology / Decapeptyl(R) and hemophilia. Moreover, the Group has an active policy of partnerships. Ipsen's R&D is focused on its innovative and differentiated technological platforms, peptides and toxins. In 2011, R&D expenditure totaled more than EUR250 million, above 21% of Group sales. The Group has total worldwide staff of close to 4,500 employees. Ipsen's shares are traded on segment A of Euronext Paris (stock code:IPN)(isin code:FR0010259150) and eligible to the "Service de Reglement Differe" ("SRD"). The Group is part of the SBF 120 index. Ipsen has implemented a Sponsored Level I American Depositary Receipt (ADR) program, which trade on the over-the-counter market in the United States under the symbol IPSEY. About Inspiration Biopharmaceuticals Inspiration Biopharmaceuticals develops recombinant blood coagulation factor products for the treatment of hemophilia. Inspiration is represented by Harold B. Murphy of Murphy & King. It indicated total assets of more than $100 million on its Chapter 11 petition. INVESTOR 2006: Case Summary & 9 Unsecured Creditors --------------------------------------------------- Debtor: Investor 2006 LLC 5414 1st Avenue South Seattle, WA 98108 Bankruptcy Case No.: 12-20804 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court Western District of Washington (Seattle) Judge: Karen A. Overstreet Debtor's Counsel: M. Wayne Boyack, Esq. LAW OFFICES OF M. WAYNE BOYACK 1370 Stewart Street, #106 Seattle, WA 98109 Tel: (206) 625-1212 E-mail: wayneb@boyacklawoffice.com Scheduled Assets: $2,002,900 Scheduled Liabilities: $2,473,140 A copy of the Company's list of its nine largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/wawb12-20804.pdf The petition was signed by Rajbir Singh, president. J&J HOLDINGS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: J&J Holdings HCC, L.P. c/o Rudov & Stein, P.C. 100 First Avenue, Suite 500 Pittsburgh, PA 15222 Bankruptcy Case No.: 12-25293 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court Western District of Pennsylvania (Pittsburgh) Judge: Jeffery A. Deller Debtor's Counsel: David K. Rudov, Esq. RUDOV & STEIN First and Market Building 100 First Avenue, Suite 500 Pittsburgh, PA 15222 Tel: (412) 281-7300 Fax: (412) 281-7305 E-mail: drudov@rudovstein.com Scheduled Assets: $2,440,000 Scheduled Liabilities: $3,248,546 A copy of the Company's list of its 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/pawb12-25293.pdf The petition was signed by F. Daniel Caste, authorized representative of Limrick, LP. JEFFERSON 28K: Case Summary & 2 Unsecured Creditors --------------------------------------------------- Debtor: Jefferson 28K G3 Murrieta LLC 29995 Technology Drive Ste 304 Murrieta, CA 92563 Bankruptcy Case No.: 12-34131 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court Central District of California (Riverside) Judge: Scott C. Clarkson Debtor's Counsel: Bill Parks, Esq. LAW OFFICES OF BILL PARKS 316 S Melrose Dr Vista, CA 92081 Tel: (760) 806-9293 Scheduled Assets: $1,400,000 Scheduled Liabilities: $1,081,900 A copy of the Company's list of its two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb12-34131.pdf The petition was signed by Edward A. Shepherd, manager. JERRY'S NUGGET: Can Use Cash Collateral Thru Entry of Final Order ----------------------------------------------------------------- In a second interim order dated Oct. 2, 2012, the U.S. Bankruptcy Court for the District of Nevada authorized Jerry's Nugget, Inc., and Spartan Gaming LLC to continue using cash collateral and disputed cash collateral determined to be cash collateral in accordance with the terms of the Interim Order (ECF No. 83 dated Aug. 31, 2012) through the entry of the Court's final order on the motion. Pursuant to the Interim Order, among others, US Bank and CM Capital are granted replacement liens on all existing and hereafter acquired property and assets of Debtors, to the same extent and in the same validity, priority and enforceability as held by U.S. Bank and CM Capital pre-petition. Unless the Court otherwise orders, Debtors' right to assert, and US Bank's right to dispute that the JNI Cash on Hand, the JNI Deposit Accounts, the JNI Postpetition Cash, the SG Deposit Accounts, and the SG Postpetition Cash (collectively, "Debtors' Cash") do not constitute cash collateral are reserved and preserved, pending the final hearing on the motion. 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, in Las Vegas, 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. In its schedules, the Debtors disclosed $12,378,944 in assets and $10,771,442 in liabilities as of the Petition Date. LE-NATURE'S INC: Marshall Files $184MM Suit Over Inflated Price --------------------------------------------------------------- Maria Chutchian at Bankruptcy Law360 reports that the Marshall Group Inc. on Wednesday hit Krones AG with a lawsuit over its 2005 sale of bottling equipment to the now-bankrupt Le-Nature's Inc., saying Krones intentionally overpriced and lied about the $184 million transaction for the purpose of furthering Le-Nature's fraud scheme. Marshall served as the syndication agent for the deal, bringing in financial institutions to purchase participation interest in the synthetic lease financing of the fallen beverage company's Phoenix plant. About Le-Nature's Inc. Headquartered in Latrobe, Pennsylvania, Le-Nature's Inc. -- http://www.le-natures.com/-- made bottled waters, teas, juices and nutritional drinks. Its brands included Kettle Brewed Ice Teas, Dazzler fruit juice drinks and lemonade, and AquaAde vitamin-enriched water. On Oct. 27, 2006, the Delaware Chancery Court appointed Kroll Zolfo Cooper, Inc., as custodian of Le-Nature's, placing it in charge of management and operations. Within several days, Kroll uncovered massive fraud at Le-Nature's. On Nov. 1, 2006, Steven G. Panagos, a Kroll managing director, filed an affidavit with the Delaware Chancery Court setting forth the evidence of the financial fraud he had discovered at Le-Nature's. Four unsecured creditors of Le-Nature's filed an involuntary Chapter 7 petition against the Company (Bankr. W.D. Pa. Case No. 06-25454) on Nov. 1, 2006. Kroll converted the proceedings from Chapter 7 to Chapter 11. On Nov. 6, 2006, two of Le-Nature's subsidiaries, Le-Nature's Holdings Inc., and Tea Systems International Inc., filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. The Debtors' cases were jointly administered. The Debtors' schedules filed with the Court showed $40 million in total assets and $450 million in total liabilities. Douglas Anthony Campbell, Esq., Ronald B. Roteman, Esq., and Stanley Edward Levine, Esq., at Campbell & Levine, LLC, represented the Debtors in their restructuring efforts. The Court appointed R. Todd Neilson as Chapter 11 Trustee. Dean Z. Ziehl, Esq., Richard M. Pachulski, Esq., Stan Goldich, Esq., Ilan D. Scharf, Esq., and Debra Grassgreen, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP, represented the Chapter 11 Trustee. David K. Rudov, Esq., at Rudov & Stein, and S. Jason Teele, Esq., and Thomas A. Pitta, Esq., at Lowenstein Sandler PC, represented the Official Committee of Unsecured Creditors. Edward S. Weisfelner, Esq., Robert J. Stark, Esq., and Andrew Dash, Esq., at Brown Rudnick Berlack Israels LLP, and James G. McLean, Esq., at Manion McDonough & Lucas, represented the Ad Hoc Committee of Secured Lenders. Thomas Moers Mayer, Esq., and Matthew J. Williams, Esq. at Kramer Levin Naftalis & Frankel LLP, represented the Ad Hoc Committee of Senior Subordinated Noteholders. On July 8, 2008, the Bankruptcy Court issued an order confirming the liquidation plan for Le-Nature's. LEHMAN BROTHERS: Demands Giants' Compliance With Subpoenas ---------------------------------------------------------- Lehman Brothers Holdings Inc. asked Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York to force Giants Stadium LLC to comply with the subpoenas it issued against the company. The move comes after Giants Stadium asked the bankruptcy court to quash the subpoenas, saying they were served to "harass" the company and to further delay the prosecution of its claims against Lehman. The first subpoena was served in July 2011, which required Giants Stadium to give testimony while the second subpoena issued early this year required the company to turn over documents related to a swap deal with Lehman. In a court filing, Richard Slack, Esq., at Weil Gotshal & Manges LLP, in New York, said Lehman has not yet completed its investigation of Giants Stadium's claims and that continuing the investigation is necessary after Giants Stadium increased the amount of its claims from $301 million to as much as $585 million. Mr. Slack said the investigation taken to date concerned the initial $301 million claim only. "Lehman has been afforded no opportunity to take discovery of the new $585 million claim," he said. The Lehman lawyer denied Giants Stadium's allegation that the subpoenas were served to harass the company, saying they merely seek information related to the amended claims and the sale of Giants Stadium's claims to another company. A court hearing is scheduled for Nov. 14. Objections are due by Nov. 8. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. LEHMAN BROTHERS: LBI Proposes Claims Settlement Procedures ---------------------------------------------------------- The trustee liquidating Lehman Brothers Holdings Inc.'s brokerage is seeking court approval to implement procedures governing the filing of objections to and the settlement of general creditor claims. Approximately 9,000 general creditor claims, and 4,500 customer claims that have been reclassified as general creditor claims were filed against the Lehman brokerage. The parent company and its European affiliate are so far the largest general creditors of the brokerage, according to a court filing. James Giddens, the court-appointed trustee, has reached an agreement in principle with the administrators of Lehman Brothers International (Europe) to settle $38 billion in claims, and finalized an agreement with Lehman Brothers Finance AG's liquidators to resolve almost $6 billion in claims. In February, the trustee reached an agreement in principle with the Lehman parent and some of its affiliates to settle more than $70 billion in claims. James Kobak, Jr., Esq., at Hughes Hubbard & Reed LLP, in New York, said the proposed procedures will reduce costs and will "streamline the general creditor claim reconciliation process." The procedures, however, won't be applied to general creditor claims filed by affiliates of the Lehman brokerage, the Lehman trustee's lawyer also said. The procedures are detailed in the proposed order, which can be accessed for free at http://is.gd/bJbKKb A court hearing to consider approval of the procedures is scheduled for Nov. 14. Objections are due by Nov. 7. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. LEHMAN BROTHERS: LBI Assets at $25.955 Billion as of Sept. 30 ------------------------------------------------------------- The court-appointed trustee of Lehman Brothers Holdings Inc.'s brokerage has filed an interim report in connection with the liquidation of the brokerage under the Securities Investor Protection Act. The 25-page report, which covers the period April 21 to October 24, 2012, noted these accomplishments in the past six months: * Reached an agreement in principle with Lehman Brothers International (Europe) to resolve all claims between Lehman Brothers Inc. and LBIE totaling approximately $38 billion. The October 4, 2012 agreement in principle is subject to drafting and execution of a final and binding agreement, and court approval. However, effective immediately, and regardless of the outcome of further drafting, the agreement in principle caps the maximum recovery each of LBI and LBIE can make from the other's estate from the claims asserted. * Negotiated and achieved settlements in principle with Lehman Brothers Bankhaus AG, Lehman Brothers Luxembourg S.A. and Lehman Brothers Finance AG to resolve claims totaling more than $7 billion, and continued to advance settlement negotiations with other international affiliates. The settlements in principle are subject to negotiation, execution of final and binding agreements, and court approval. * Continued to work toward consummating the settlement in principle with LBHI and certain of its affiliates to resolve all claims between the estates. * Continued to litigate the approximately $7 billion dispute with Barclays Capital Inc. that is currently on appeal in the United States Court of Appeals for the Second Circuit and will materially impact the assets available in the estate for distribution to claimants. * Negotiated with non-affiliated claimants the withdrawal of more than $120 million in customer claims. * Won a favorable ruling from the Court confirming that claims for soft dollar commission credits are not customer claims under SIPA. * Initiated a comprehensive review and reconciliation of all general creditor claims to determine the validity and actual allowed amounts of such claims, and filed two omnibus objections to general creditor claims as well as a motion for approval of general creditor objection procedures and settlement procedures. The trustee disclosed that as of September 30, 2012, the brokerage's assets under his control are worth $25.955 billion, composed of $395 million of total cash and cash equivalents, and $25.56 billion worth of securities. A full-text copy of the report is available without charge at http://bankrupt.com/misc/LBHI_LBI8thReport.pdf About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. LEHMAN BROTHERS: Has $14.3 Billion in Restricted Cash at Sept. 30 ----------------------------------------------------------------- Michael Bathon at Bloomberg News reports that defunct Lehman Brothers Holdings Inc. and its affiliates had $14.3 billion in restricted cash on Sept. 30, including $10.9 billion of reserves for claims, according to a federal court filing in Manhattan. According to the report, free cash and investments totaled almost $11 billion. The claim reserves include $5.8 billion held for disputed amounts, Lehman said. The former investment bank plans two payments to creditors every year. The last payment was Oct. 1. Lehman has said it intends to raise $53 billion through 2016 or so, to pay an average of 18 cents on the dollar on final claims of $300 billion. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. Lehman made its first payment of $22.5 billion to creditors in April 2012 and a second payment of $10.2 billion on Oct. 1. A third distribution is set for around March 30, 2013. The brokerage is yet to make a first distribution to non-customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) MG FORGE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: MG Forge Construction, LLC 125 Pompton Plains Crossroads Wayne, NJ 07470 Bankruptcy Case No.: 12-35817 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court District of New Jersey (Newark) Judge: Rosemary Gambardella Debtor's Counsel: Stuart Gold, Esq. MANDELBAUM SALSBURG ET. AL. 155 Prospect Avenue West Orange, NJ 07052 Tel: (973) 736-4600 Fax: (973)325-7467 E-mail: sgold@msgld.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/njb12-35817.pdf The petition was signed by Eugene J. Merlino, president. MGM RESORTS: Incurs $181.1 Million Net Loss in Third Quarter ------------------------------------------------------------ MGM Resorts International reported a net loss attributable to the Company of $181.15 million on $2.25 billion of revenue for the three months ended Sept. 30, 2012, compared with a net loss attributable to the Company of $123.78 million on $2.23 billion of revenue for the same period during the prior year. For the nine months ended Sept. 30, 2012, the Company reported a net loss attributable to the Company of $543.86 million on $6.86 billion of revenue, in comparison with net income attributable to the Company of $3.22 billion on $5.55 billion of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2012, showed $27.83 billion in total assets, $18.56 billion in total liabilities, and $9.26 billion in total stockholders' equity. "Our third quarter operating results are reflective of a challenging consumer environment, but we had some bright spots with strong results from MGM Grand Las Vegas and The Mirage and record third quarters from MGM China and CityCenter," said Jim Murren, Chairman and CEO of MGM Resorts International. "We have achieved a great milestone with MGM China by accepting the formal land concession agreement and look forward to continuing to make progress towards a second resort and casino in Macau. Meanwhile, early fourth quarter trends are improving at our domestic resorts and forward convention booking pace is showing growth in 2013 and is further accelerating into 2014." A copy of the press release is available for free at: http://is.gd/Rj1H5M About MGM Resorts MGM Resorts International (NYSE: MGM) -- http://www.mgmresorts.com/-- has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, Illinois and Macau. The Company reported net income of $3.23 billion in 2011 and a net loss of $1.43 billion in 2010. Bankruptcy Warning In the Form 10-K for the year ended Dec. 31, 2011, the Company said that any default under the senior credit facility or the indentures governing the Company's other debt could adversely affect its growth, its financial condition, its results of operations and its ability to make payments on its debt, and could force the Company to seek protection under the bankruptcy laws. * * * As reported by the TCR on Nov. 14, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on MGM Resorts International to 'B-' from 'CCC+'. In March 2012, S&P revised the outlook to positive from stable. "The revision of our rating outlook to positive reflects strong performance in 2011 and our expectation that MGM will continue to benefit from the improving performance trends on the Las Vegas Strip," S&P said. In March 2012, Moody's Investors Service affirmed its B2 corporate family rating and probability of default rating. The affirmation of MGM's B2 Corporate Family Rating reflects Moody's view that positive lodging trends in Las Vegas will continue through 2012 which will help improve MGM's leverage and coverage metrics, albeit modestly. Additionally, the company's declaration of a $400 million dividend ($204 million to MGM) from its 51% owned Macau joint venture due to be paid shortly will also improve the company's liquidity profile. The ratings also consider MGM's recent bank amendment that resulted in about 50% of its $3.5 billion senior credit facility being extended one year from 2014 to 2015. As reported by the TCR on Oct. 15, 2012, Fitch Ratings has affirmed MGM Resorts International's (MGM) Issuer Default Rating (IDR) at 'B-' and MGM Grand Paradise, S.A.'s (MGM Grand Paradise) IDR at 'B+'. MICROVISION INC: Amends Last Year's 10-K to Include Opinion ----------------------------------------------------------- MicroVision, Inc., filed on Oct. 30, 2012, Amendment No. 1 on Form 10-K/A to amend its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011, as originally filed with the Securities and Exchange Commission on March 9, 2012. The report of the independent auditors attached to the 2011 Form 10-K did not include an opinion on the financial statement schedule, presented on page 53 in the 2011 Form 10-K. This amendment corrects that inadvertent omission. A copy of the Form 10-K/A is available at http://is.gd/IVTBMW A copy of the 2011 Form 10-K is available at http://is.gd/f0nZaM PricewaterhouseCoopers LLP, in Seattle, Washington, 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. The Company reported a net loss of $35.8 million on $5.6 million of total revenue in 2011, compared with a net loss of $47.5 million on $4.7 million of total revenue in 2010. The Company's balance sheet at Dec. 31, 2011, showed $23.9 million in total assets, $13.1 million in total liabilities, and stockholders' equity of $10.8 million. About MicroVision Redmond, Wash.-based MicroVision, Inc., provides the patented PicoP(R) display technology platform designed to enable next generation display capabilities for consumer devices and vehicle displays. The company's PicoP display technology uses highly efficient laser light sources which can create vivid images with high contrast and brightness. The Company reported a net loss of $14.8 million on $3.0 million of total revenue for the six months ended June 30, 2012, compared with a net loss of $18.2 million on $2.3 million of total revenue for the same period of 2011. The Company's balance sheet at June 30, 2012, showed $20.7 million in total assets, $9.2 million in total liabilities, and stockholders' equity of $11.5 million. MILLER BROS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Miller Bros Wallpaper Company dba Miller Bros Paint Miller Bros Paint & Decorating Miller Bros Paint & Wallpaper P.O. Box 12210 Cincinnati, OH 45212 Bankruptcy Case No.: 12-15725 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court Southern District of Ohio (Cincinnati) Judge: Beth A. Buchanan Debtor's Counsel: Philomena S. Ashdown, Esq. STRAUSS & TROY The Federal Reserve Building 150 East Fourth Street, Fourth Floor Cincinnati, OH 45202-4018 Tel: (513) 621-2120 E-mail: psashdown@strausstroy.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 with the petition is available for free at: http://bankrupt.com/misc/ohsb12-15725.pdf The petition was signed by Victor Wells, president and sole shareholder. MISSION NEWENERGY: Grant Thornton Raises Going Concern Doubt ------------------------------------------------------------ Mission NewEnergy Limited filed on Oct. 30, 2012, its annual report on Form 20-F for the fiscal year ended June 30, 2012. Grant Thornton Audit Pty Ltd, in Perth, Australia, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred operating cash outflows of A$4.9 million during the year ended June 30, 2012, and, as of that date, the consolidated entity's total liabilities exceeded its total assets by A$24.4 million. The Company reported a net loss of A$6.1 million on A$38.3 million of revenue in fiscal 2012, compared with a net loss of $21.7 million on A$16.4 million of revenue in fiscal 2011. Revenue increased by A$21.9 million (133%) from A$16.4 million in fiscal 2011 to A$38.3 million in fiscal 2012 principally as a result of an increase in biofuel sales (increased A$13.8 million from A$13.5 million in fiscal 2011 to A$27.3 million in fiscal 2012) and other revenue (increased A$8.2 million from A$ 2.8 million in 2011 to A$11.0 million in 2012). The Company's refinery operated for approximately six months in fiscal 2012 and approximately three months in 2011. The Company's balance sheet at June 30, 2012, showed A$10.7 million in total assets, A$35.1 million in total liabilities, resulting in an equity deficiency of A$24.4 million. A copy of the Form 20-F is available at http://is.gd/JqwTx9 Based in Subiaco, Western Australia, Mission NewEnergy Limited is a producer of biodiesel that integrates sustainable biodiesel feedstock cultivation, biodiesel production and wholesale biodiesel distribution focused on the government mandated markets of the United States and Europe. The Company is not operating its biodiesel refining segment. The refineries are being held in care and maintenance either awaiting a return to positive operating conditions or the sale of assets. The Company has materially diminished its Jatropha contract farming operation and the company is now focused on divesting the remaining Indian assets. The Company intends to cease all Indian operations. At this point in time, due to failure of material obligations by PTPN111, the Joint Venture in Indonesia has been terminated. The Company is reviewing its position in the Joint Venture in Indonesia and expects that this will result in either the continuation of the project of the sale of its equity interests. MISSION WEST: To Liquidate, Sell Properties to DivcoWest, TPG ------------------------------------------------------------- Hui-Yong Yu at Bloomberg news reports that Mission West Properties Inc., a California real estate investment trust that put itself up for sale in December, agreed to sell certain property assets to a venture of closely held DivcoWest and TPG Real Estate. The joint venture will pay about $400 million in cash and assume $398 million of debt and other obligations, Cupertino, California-based Mission West said in a statement. Some of the company's operating partnerships will retain other assets and liabilities with an approximate net value of $525 million. According to the report, Mission West said it plans to liquidate after it completes these transactions by year-end. The company said shareholders and owners of operating partnership units that choose to redeem their stakes will receive a distribution of $9.20 to $9.28 a share in cash, though the final amount might be less. The Bloomberg report discloses that the distribution estimate includes the sales proceeds and the final 2012 dividend. Mission West owns and manages 101 research and development properties, most in Silicon Valley, totaling about 7.6 million rentable square feet (706,000 square meters). The company began exploring a sale late last year to take advantage of growing investor interest in commercial real estate. DivcoWest is a San Francisco-based real estate investment firm founded in 1993. TPG Real Estate is a unit of the TPG Capital private equity firm started by David Bonderman and James Coulter. NAVISTAR INTERNATIONAL: To Close Garland Truck Plant ---------------------------------------------------- Navistar International Corporation intends to close its Garland, Texas, truck manufacturing operation as part of its efforts to reduce costs and optimize its manufacturing footprint. Navistar intends to cease operations at the Garland facility by the first half of 2013. "Closing a facility is always difficult because of its impact on the many great people who've been part of our company," said Troy Clarke, Navistar president and chief operating officer. "But the fact is that Navistar has too much manufacturing capacity in North America and we must take quick action to improve our business and position the company for long-term success." The Garland facility currently employs 900 salaried, hourly and third party temporary workers. "We understand that these decisions affect employees and the community," Clarke added. "We will treat people with respect and provide support to help them with their transitions." Truck volume now produced at Garland will transition to other North America operations that currently build similar models beginning in January 2013. Once completed, the Garland closure is expected to reduce Navistar's operating costs by $25-$35 million annually. The Company will record a fourth-quarter 2012 charge, primarily for employee separation benefits, which is not expected to exceed $10 million on a pre-tax basis. As the closure plan is implemented during the 2013 fiscal year, the company expects to record certain pre-tax charges, primarily related to accelerated depreciation and other related items, ranging from $30-$50 million dependent upon determination of fair value. Navistar projects this action will be cash flow positive in year one. About Navistar International Navistar International Corporation (NYSE: NAV) -- http://www.Navistar.com/-- is a holding company whose subsidiaries and affiliates subsidiaries produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine parts and service. Another affiliate offers financing services. The Company's balance sheet at July 31, 2012, showed $11.14 billion in total assets, $11.50 billion in total liabilities, and a $363 million total stockholders' deficit. * * * In the Aug. 3, 2012, edition of the TCR, Moody's Investors Service lowered Navistar International Corporation's Corporate Family Rating (CFR), Probability of Default Rating (PDR), and senior note rating to B2 from B1. The downgrade of Navistar's ratings reflects the significant challenges the company will face during the next eighteen months in re-establishing the profitability and competitiveness of its US and Canadian truck operations in light of the failure to achieve EPA certification of its EGR emissions technology, the significant reductions in military revenues and substantially higher engine warranty reserves. As reported by the TCR on June 13, 2012, Standard & Poor's Ratings Services lowered its ratings on Navistar International Corp., including the corporate credit rating to 'B+', from 'BB-'. "The downgrade and CreditWatch placement reflect the company's operational and financial setbacks in recent months," said Standard & Poor's credit analyst Sol Samson. In the Sept. 19, 2012, edition of the TCR, Fitch Ratings has downgraded the Issuer Default Ratings (IDR) for Navistar International Corporation (NAV) and Navistar Financial Corporation (NFC) to 'CCC' from 'B-'. The rating Outlook is Negative. The rating downgrades and Negative Rating Outlook reflect the company's heightened liquidity risk and negative manufacturing free cash flow (FCF) which could continue into 2013. NEWPAGE CORP: Asks Judge's Approval for $850MM Exit Financing ------------------------------------------------------------- BankruptcyData.com reports that NewPage Corp. filed with the U.S. Bankruptcy Court a motion for approval to enter into an exit financing commitment letter with Goldman Sachs Lending Partners, JPMorgan Chase Bank and Barclays Bank. The funding is comprised of a $500 million term loan facility and a $350 million revolving facility. The reorganized Debtors will use the proceeds to fund distributions under the Plan, including repayment of claims arising under the D.I.P. financing facility and a cash distribution to the first lien noteholders, payment of cash distributions pursuant to the settlements embodied in the Plan and funding the reorganized Debtors' post-emergence working capital needs. The revolving facility will be used to fund letters of credit post-emergence. The funding would bear interest at Base Rate plus 6.00% or adjusted Eurodollar Rate plus 7.00%. The Court scheduled a Nov. 6, 2012 hearing on the matter. About NewPage Corp Headquartered in Miamisburg, Ohio, NewPage Corporation was the leading producer of printing and specialty papers in North America, based on production capacity, with $3.6 billion in net sales for the year ended Dec. 31, 2010. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. NewPage Group, NewPage Holding, NewPage, and certain of their U.S. subsidiaries commenced Chapter 11 voluntary cases (Bankr. D. Del. Case Nos. 11-12804 through 11-12817) on Sept. 7, 2011. Its subsidiary, Consolidated Water Power Company, is not a part of the Chapter 11 proceedings. Separately, on Sept. 6, 2011, its Canadian subsidiary, NewPage Port Hawkesbury Corp., brought a motion before the Supreme Court of Nova Scotia to commence proceedings to seek creditor protection under the Companies' Creditors Arrangement Act of Canada. NPPH is under the jurisdiction of the Canadian court and the court- appointed Monitor, Ernst & Young in the CCAA Proceedings. Initial orders were issued by the Supreme Court of Nova Scotia on Sept. 9, 2011 commencing the CCAA Proceedings and approving a settlement and transition agreement transferring certain current assets to NewPage against a settlement payment of $25 million and in exchange for being relieved of all liability associated with NPPH. On Sept. 16, 2011, production ceased at NPPH. NewPage originally engaged Dewey & LeBoeuf LLP as general bankruptcy counsel. In May 2012, Dewey dissolved and commenced its own Chapter 11 case. Dewey's restructuring group led by Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M. Abelson, Esq., moved to Proskauer Rose LLP. In June, NewPage sought to hire Proskauer as replacement counsel. NewPage is also represented by Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, as co-counsel. Lazard Freres & Co. LLC is the investment banker, and FTI Consulting Inc. is the financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. In its balance sheet, NewPage disclosed $3.4 billion in assets and $4.2 billion in total liabilities as of June 30, 2011. The Official Committee of Unsecured Creditors selected Paul Hastings LLP as its bankruptcy counsel and Young Conaway Stargatt & Taylor, LLP to act as its Delaware and conflicts counsel. NORTHERN TIER: Moody's Rates $275MM Senior Secured Notes 'B1' ------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to Northern Tier Energy LLC's (NTE) proposed $275 million senior secured notes due 2020. The notes are being co-issued by Northern Tier Finance Corporation. NTE's B1 Corporate Family Rating, SGL-3 Speculative Grade Liquidity Rating and stable rating outlook remain unchanged. The proposed notes, in addition to roughly $31 million of cash on the balance sheet, will be used to repurchase NTE's existing 10.5% Senior Secured Notes due 2017. Rating Assignments: $275 Million Senior Secured Notes due in 2020, Rated B1 (LGD 4, 50%) Moody's current ratings for Northern Tier Energy LLC are: Corporate Family Rating of B1 Probability of Default Rating of B1 10.5% Senior Secured Regular Bond, B1 Speculative Grade Liquidity Rating, SGL-3 Ratings Rationale NTE's B1 Corporate Family Rating reflects the company's single refinery asset risk and relatively small scale, particularly compared to its largest regional competitor, the inherent volatility and capital intensity of the refining sector, and the excess cash payouts and inherent event risk associated with its MLP corporate structure. The rating is supported by the St. Paul Park refinery's proven operational track record and favorable geographic location. NTE's refinery has access to heavily discounted Bakken and Canadian crude oils and is well positioned within a product short region, resulting in record strong margins since 2011. Moody's believes that NTE's crude sourcing differentials will continue to remain supportive, but will begin to narrow over the next several years as increased take away capacity comes on stream. The Corporate Family Rating also benefits modestly from NTE's integrated owned/operated retail network through which NTE sells more than 50% of its gasoline production. Under Moody's Loss Given Default Methodology, the B1 rating on the senior secured notes reflects both the overall probability of default of NTE, to which Moody's has assigned at B1 Probability of Default Rating and a Loss Given Default of LGD 4, 50%. In addition to the senior secured notes, NTE has an undrawn $300 million committed credit facility, subject to a borrowing base. The senior secured notes have a first lien against the PP&E of NTE, while the credit facility has a first lien on working capital assets. As a result of the senior notes having discreet assets as collateral and the view that the refinery should provide sufficient value for the note holders, even in the event of distress, the notes are rated in line with the Corporate Family Rating. Nevertheless, Moody's views consider the asset recovery for the secured notes to be inferior to that of NTE's credit facility and have thus incorporated a deficiency assumption for recovery in its loss given default analysis for the notes ratings. The stable outlook assumes that NTE will continue to demonstrate consistent operating performance and remain moderately leveraged. The stable outlook also assumes that all future acquisitions and major growth capital expenditures are adequately funded with equity. This single asset risk and MLP business model limits ratings upside given that any unforeseen prolonged downtime and the company's high payout model could have a significant impact on sufficient cash flow to service debt and capital needs. A modestly-levered acquisition of another refinery might add the operational diversity and scale that would allow an upgrade to be considered. The ratings could be downgraded if leverage materially rises or liquidity weakens (including cash balances materially declining) due to a prolonged period of unplanned downtime, debt funding of an acquisition, capital spending requirement or distribution, or a prolonged period of margin softness. The principal methodology used in rating Northern Tier was the Global Refining and Marketing 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. Northern Tier Energy, LLC is a wholly-owned subsidiary of Northern Tier Energy LP, and is headquartered in Ridgefield, CT. NORTHERN TIER: S&P Gives 'BB-' Rating on New Senior Secured Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' issue rating and '2' recovery rating to Northern Tier Energy LLC's (B+/Stable/--) new senior secured notes due 2020. The company intends to use proceeds from the notes to pay down its existing 10.5% senior secured notes due 2017. Pro forma for the issuance, S&P expects the company's debt to EBITDA ratio will be below 2x during the next year; however, there could be some volatility in these cash flows depending on market conditions. Ridgefield, Conn.-based independent downstream energy company Northern Tier Energy engages in refining, retail, and pipeline operations in the PADD II region of the U.S. The company's main assets include the St. Paul Park Refinery, a retail network of SuperAmerica brand convenience stores, and a 17% equity interest in Minnesota Pipeline. Ratings List Northern Tier Energy LLC Corporate credit rating B+/Stable/-- Ratings Assigned Senior secured notes BB- Recovery rating 2 NOVA FINANCIAL: Capital Woes Spur Chapter 7 Liquidation ------------------------------------------------------- Ama Sarfo at Bankruptcy Law360 reports that just days after the Pennsylvania Department of Banking and Securities closed Nova Financial Holdings Inc., the bank on Tuesday filed for Chapter 7 bankruptcy in Pennsylvania federal court, citing its inability to raise capital as the basis for its liquidation. The bank's Chapter 7 petition estimated up to $100,000 in assets and over $10 million in liabilities, owed to up to 49 creditors. As recently as June 30, the bank had about $483 million in assets, according to the Federal Deposit Insurance Corp., Bankruptcy Law360 says. NOVA Financial is a registered bank holding company and is subject to regulation and supervision by the Board of Governors of the Federal Reserve System. ORIENTAL TRADING: Berkshire to Buy Toy Retailer for $500MM ---------------------------------------------------------- Matt Wirz, writing for The Wall Street Journal, reports that Berkshire Hathaway Inc., run by Warren Buffett, said it agreed to buy Oriental Trading Co., a mail-order toy and novelty retailer owned by private-equity firm KKR & Co. and a group of other investors. According to WSJ, a person with knowledge of the deal said Berkshire agreed to pay about $500 million for the business. WSJ reports that, according to two people with knowledge of the matter, Berkshire's purchase values the company at about seven times earnings, allowing KKR to double its initial investment in Oriental Trading's loans. WSJ notes as recently as 2006, Oriental Trading was valued at about $1 billion, when Carlyle Group LP paid about $750 million to buy a 75% stake from Brentwood Associates. Shortly after that deal, Oriental Trading's sales began to slip and, by early 2009, it had missed financial performance targets required under its loan agreements, according to Moody's Investors Service. WSJ relates the Berkshire deal is expected to close at the end of November pending antitrust clearance, according Berkshire's press statement. WSJ recounts Oriental Trading's shareholders began exploring a sale earlier this year, hiring Lazard Ltd. to run the process. After an auction failed to yield a buyer, Berkshire stepped in with a compelling offer, one person close to the deal said. About Oriental Trading & OTC Holdings Omaha, Nebraska-based OTC Holdings Corporation sought Chapter 11 protection (Bankr. D. Del. Case No. 10-12636) on Aug. 25, 2010. Affiliates OTC Investors Corporation (Bankr. D. Del. Case No. 10-12637), Oriental Trading Company, Inc. (Bankr. D. Del. Case No. 10-12638), Fun Express, Inc. (Bankr. D. Del. Case No. 10-12639), and Oriental Trading Marketing, Inc. (Bankr. D. Del. Case No. 10-12640), also filed separate Chapter 11 petitions. The Debtors disclosed $463 million in assets and $757 million in liabilities as of the Chapter 11 filing. Richard Hahn, Esq., My Chi To, Esq., Jae-Sun Chung, Esq., Huyue Angela Zhang, Esq., and Jessica Katz, Esq., at Debevoise & Plimpton LLP, represented the Debtors. Joel A. Waite, Esq., and Kenneth J. Enos, Esq., at Young, Conaway, Stargatt & Taylor, served as the Debtors' local counsel. Jefferies & Company, Inc., acted as the Debtors' financial advisor. Protiviti, Inc., served as the Debtors' restructuring consultant. Kurtzman Carson Consultants LLC acted as the Debtors' claims agent. The Official Committee of Unsecured Creditors' counsel was represented by Ashby & Geddes, P.A. Oriental Trading won confirmation of its reorganization plan on Dec. 16, 2010. OTC was able to confirm the plan following a settlement between first- and second-lien lenders. The plan gave the new stock plus cash or a new $200 million second-lien note to senior lenders owed $403 million. Second lien lenders were to receive five-year warrants for 5% of the stock based on a $422 million enterprise value. They would also receive five-year warrants for 4.5% based on a $447 million enterprise value. First- lien lenders provided $1.1 million for unsecured creditors with $6.8 million in claims. On Feb. 14, 2011, Oriental Trading announced its exit from bankruptcy, having reduced its debt by nearly 70%. PACER MANAGEMENT: Wants Access to Cash Collateral Until Jan. 11 --------------------------------------------------------------- Pacer Management of Kentucky, LLC ("PM") and Pacer Health Management Corporation of Kentucky ("PHM") ask the Bankruptcy Court for authorization to continue using cash collateral of the cash collateral creditors through the week ending Jan. 11, 2013. The Debtors also seek authorization to continue paying adequate protection payments to the U.S. Internal Revenue Service. Additionally, the Debtors request a carve-out from cash collateral in order to pay legal and accounting fees and U.S. Trustee fees. The Debtors request a monthly carve-out of $40,000 for such professional fees pending confirmation of a plan. As adequate protection for any diminution in the value of the cash collateral creditors' interests in the cash collateral, the Debtors propose to continue the existence of the replacement liens, subject only to the lien in favor of the postpetition lenders on the DIP Lender's collateral and any valid and enforceable, perfected and non-avoidable liens of other secured creditors. About Pacer Management Pacer Management of Kentucky, LLC, and Pacer Health Management Corporation of Kentucky filed voluntary Chapter 11 petitions (Bankr. E.D. Ky. Case Nos. 12-60410 and 12-60411) on March 27, 2012. Cumberland-Pacer, LLC also filed for Chapter 11 (Bankr. E.D. Ky. Case No. 12-60412) also filed a separate petition on the same day. Pacer Management estimated up to $50 million in assets and debts. The Debtors lease the assets and real property to operate the hospital from Knox County, Kentucky and Knox Hospital Corporation. According to court filings, the lessors in 2009 filed suit against Pacer Health and others in the Knox Circuit Court alleging a breach of the Lease Agreement but the suit was later resolved. Under the deal, CP was substituted as lessee. CP is a Kentucky limited liability company established by Dr. Satyabrata Chatterjee and Dr. Ashwini Anand to purchase the stock of Pacer Holdings of Kentucky, Inc., which owned 100% of the stock of Pacer Health and 60% of the stock of Pacer Management. CP, which previously owned 40% of the stock of Pacer Management, became the sole owner of Pacer Management following the transaction. In October 2011, the county notified CP it was in default under the lease agreement. The parties negotiated numerous extensions of time to cure the alleged defaults, most recently until 12:01 a.m. on March 29, 2012. Prior to expiration of the most recent extension, the Lessors again filed suit in the Knox Circuit Court on March 20, 2012 seeking to have the Lease Agreement terminated and requesting entry of a restraining order against CP, PHM and PM, among others. On March 20, 2012, the Knox Circuit Court issued a restraining order which precluded the Debtors from spending hospital funds other than for ordinary operating expenses, among other things. A March 22, 2012 report by The Associated Press said that county officials and the hospital board have agreed to terminate the facility's lease with the Debtors. The group then agreed to sign with another management company that will keep the hospital open and prepare it to be sold, according to the report. The Debtors filed for Chapter 11 protection to retain control of the Hospital. The Debtors said they seek to continue operating the Hospital pursuant to the terms of the Lease Agreement and preserve their option to purchase the Hospital. Judge Joseph M. Scott, Jr. presides over the case. Lawyers at DelCotto Law Group PLLC, in Lexington, Ky., serve as the Debtors' counsel. Craig Morgan, the Debtors' CEO, has been appointed by the Court as the individual responsible for performing the duties of the Company as a Debtor in possession. Mr. Morgan signed the bankruptcy petitions. Dr. Satyabrata Chatterjee, one of the DIP lenders, is represented by Dinsmore & Shohl, LLP. Dr. Ashwini Anand has teamed up with Dr. Chatterjee to provide the DIP loan. An Official Committee of Unsecured Creditors has been appointed and reconstituted by the United States Trustee in the Chapter 11 cases, but has not been active. No trustee or examiner has been appointed, although a patient care ombudsman has been appointed. PEREGRINE FINANCIAL: Chapter 7 Trustee to Subpoena Auditor ---------------------------------------------------------- Megan Stride at Bankruptcy Law360 reports that the bankruptcy trustee charged with liquidating Peregrine Financial Group Inc. won court approval Wednesday to subpoena the firm's onetime auditor, as well as two other entities that had "significant business dealings" with the fallen brokerage firm that the trustee wants to investigate. U.S. Bankruptcy Judge Carol A. Doyle granted Chapter 7 trustee Ira Bodenstein's subpoena bid, which the trustee said he would use to obtain documents and possibly conduct examinations of Halyard Capital Advisors LLC, Out Structure LLC and former Peregrine auditor Jeannie Veraja-Snelling of Veraja-Snelling, according to Bankruptcy Law360. About Great American Group Great American Group -- http://www.greatamerican.com/ -- is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. 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. PITTSBURGH CORNING: Prices $250 Million of Senior Unsecured Notes ----------------------------------------------------------------- Corning Incorporated, a subsidiary of Pittsburgh Corning Corp., has priced $250 million aggregate principal amount of senior unsecured notes at a coupon of 1.45%. The notes will mature on Nov. 15, 2017. Subject to customary closing conditions, the transaction is expected to close on Oct. 31, 2012. A portion of the net proceeds of the offering will be used to fund the purchase of the debt securities subject to the tender offer and the redemptions announced by the company, and any excess net proceeds will be used for general corporate purposes. Citigroup Global Markets Inc. and J.P. Morgan Securities LLC served as joint book-running managers and underwriters for the offering. The offering of the notes is being made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained by contacting: Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone: (800) 831-9146; or J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY, 10179, Attn: Investment Grade Syndicate Desk, (212) 834-4533. An electronic copy of the prospectus supplement and the accompanying prospectus will also be available on the website of the Securities and Exchange Commission at http://www.sec.gov. The offering is being made pursuant to an effective automatic shelf registration statement filed with the Securities and Exchange Commission on Dec. 1, 2011. About Pittsburgh Corning Pittsburgh Corning Corporation filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 00-22876) on April 16, 2000, to address numerous claims alleging personal injury from exposure to asbestos. At the time of the bankruptcy filing, there were about 11,800 claims pending against the Company in state court lawsuits alleging various theories of liability based on exposure to Pittsburgh Corning's asbestos products and typically requesting monetary damages in excess of $1 million per claim. The Hon. Judith K. Fitzgerald presides over the case. Reed Smith LLP serves as counsel and Deloitte & Touche LLP as accountants to the Debtor. The United States Trustee appointed a Committee of Unsecured Trade Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of Leech, Tishman, Fuscaldo & Lampl, LLC, as counsel to the Committee of Unsecured Trade Creditors, and Pascarella & Wiker, LLP, as financial advisor. The U.S. Trustee also appointed a Committee of Asbestos Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of these professionals by the Committee of Asbestos Creditors: (i) Caplin & Drysdale, Chartered as Committee Counsel; (ii) Campbell & Levine as local counsel; (iii) Anderson Kill & Olick, P.C. as special insurance counsel; (iv) Legal Analysis Systems, Inc., as Asbestos-Related Bodily Injury Consultant; (v) defunct firm, L. Tersigni Consulting, P.C. as financial advisor, and (vi) Professor Elizabeth Warren, as a consultant to Caplin & Drysdale, Chartered. On Feb. 16, 2001, the Court approved the appointment of Lawrence Fitzpatrick as the Future Claimants' Representative. The Bankruptcy Court authorized the retention of Meyer, Unkovic & Scott LLP as his counsel, Young Conaway Stargatt & Taylor, LLP, as his special counsel, and Analysis, Research and Planning Corporation as his claims consultant. In 2003, a plan of reorganization was agreed to by various parties-in-interest, but, on Dec. 21, 2006, the Bankruptcy Court issued an order denying the confirmation of that plan, citing that the plan was too broad in addressing independent asbestos claims that were not associated with Pittsburgh Corning. On Jan. 29, 2009, an amended plan of reorganization (the Amended PCC Plan) -- which addressed the issues raised by the Court when it denied confirmation of the 2003 Plan -- was filed with the Bankruptcy Court. As reported by the TCR on April 25, 2012, Pittsburgh Corning Corp., a joint venture between Corning Inc. and PPG Industries Inc., filed another amendment to its reorganization plan designed to wrap up a Chapter 11 begun 12 years ago. The Company's balance sheet at Sept. 30, 2012, showed $29.41 billion in total assets, $7.52 billion in total liabilities and $21.88 billion in total equity. POWERWAVE TECHNOLOGIES: John Clendenin to Retire as Director ------------------------------------------------------------ John L. Clendenin notified the Board of Directors of Powerwave Technologies, Inc., that he is retiring from the Board of the Company effective Dec. 17, 2012, and that he will not stand for re-election at the Company's 2012 Annual Meeting of Shareholders scheduled for Dec. 17, 2012. In connection with the decision of Mr. Clendenin to not stand for re-election, on Oct. 29, 2012, the Board approved an amendment to the bylaws of the Company to decrease the number of authorized directors from eight to seven. The amendment to the Bylaws will be effective on Dec. 17, 2012. The Bylaws provide that the number of directors may be increased or decreased from time to time by an amendment to the Bylaws, but that the number of directors will not be less than four nor more than nine. About Powerwave Technologies Powerwave Technologies, Inc., headquartered in Santa Ana, Calif., is a global supplier of end-to-end wireless solutions for wireless communications networks. The Company has historically sold the majority of its product solutions to the commercial wireless infrastructure industry. The Company's balance sheet at July 1, 2012, showed $232.55 million in total assets, $363.67 million in total liabilities, and a shareholders' deficit of $131.12 million. According to the quarterly report for the period ended July 1, 2012, the Company has experienced significant recurring net losses and operating cash flow deficits for the past four quarters. The Company's ability to continue as a going concern is dependent on many factors, including among others, its ability to raise additional funding, and its ability to successfully restructure operations to lower manufacturing costs and reduce operating expenses. QUANTUM CORP: Peter Feld Discloses 15.9% Equity Stake ----------------------------------------------------- In a Schedule 13D filing with the U.S. Securities and Exchange Commission, Peter A. Feld and his affiliates disclosed that, as of Oct. 25, 2012, they beneficially own 41,234,935 shares of common stock of Quantum Corporation representing 15.9% of the shares outstanding. A copy of the filing is available for free at: http://is.gd/omsiLQ About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. The Company reported a net loss of $8.81 million for the fiscal year ended March 31, 2012, compared with net income of $4.54 million during the prior year. Quantum Corporation's balance sheet at June 30, 2012, showed $364.52 million in total assets, $425.08 million in total liabilities and a $60.55 million total stockholders' deficit. QUANTUM CORP: Prices $60-Mil. of 4.50% Convertible Senior Notes --------------------------------------------------------------- Quantum Corp. priced a private placement of $60 million aggregate principal amount of 4.50% Convertible Senior Subordinated Notes due 2017 to be issued to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended. The company has granted the initial purchaser of the notes an over-allotment option to purchase up to an additional $10 million aggregate principal amount of notes for a period of 30 days from Oct. 26, 2012. The notes will be Quantum's unsecured senior subordinated obligations and will bear interest semiannually at a rate of 4.50% per annum. The notes will be convertible, at the option of the holders, into shares of the Company's common stock at an initial conversion rate of 607.1645 shares per $1,000 principal amount of notes. At the initial conversion rate, the notes will be convertible into shares of common stock at a conversion price of approximately $1.65 per share, representing a conversion premium of approximately 35 percent over the last reported sale price of the Company's common stock on Oct. 25, 2012, which was $1.22 per share. The conversion rate will be adjusted for certain dilutive and concentrative events and will be increased upon conversion in connection with certain corporate transactions. The notes are convertible at any time prior to the close of business on the business day immediately preceding the maturity date of the notes. The holders of the notes will have the ability to require Quantum to repurchase the notes in whole or in part for cash in the event of a fundamental change. In that case, the repurchase price would generally be 100 percent of the principal amount of the notes plus any accrued and unpaid interest. Quantum intends to use the net proceeds from the private placement primarily to repay in full all amounts outstanding under its senior secured credit agreement with Wells Fargo and to use any remaining net proceeds for general corporate purposes. A copy of the Indenture governing the Notes is available at: http://is.gd/DnoJaC About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. The Company reported a net loss of $8.81 million for the fiscal year ended March 31, 2012, compared with net income of $4.54 million during the prior year. Quantum Corporation's balance sheet at June 30, 2012, showed $364.52 million in total assets, $425.08 million in total liabilities and a $60.55 million total stockholders' deficit. REALOGY CORP: Incurs $33 Million Net Loss in Third Quarter ---------------------------------------------------------- Realogy Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $33 million on $1.28 billion of net revenues for the three months ended Sept. 30, 2012, compared with a net loss of $27 million on $1.15 billion of net revenues for the same period during the prior year. The Company reported a net loss of $249 million on $3.46 billion of net revenues for the nine months ended Sept. 30, 2012, compared with a net loss of $285 million on $3.16 billion of net revenues for the same period a year ago. The Company's balance sheet at Sept. 30, 2012, showed $7.35 billion in total assets, $9.09 billion in total liabilities and a $1.74 billion total deficit. "Our revenue and EBITDA were strong in the third quarter, with revenue up 11% compared to the same period in 2011 and EBITDA increasing 14%," said Richard A. Smith, chairman, chief executive officer and president of Realogy. "The early-stage housing market recovery that we spoke of in the first two quarters of the year continued in the third quarter of 2012. Once again, we experienced strong year-over-year gains in homesale units and average home sale price as the housing market continued its recovery." Realogy also announced the appointment of Michael J. Williams to its Board of Directors. Most recently, Williams was president and chief executive officer of Fannie Mae from April 2009 to June 2012, managing the company during the period of conservatorship as it dealt with the many challenges presented by the worst housing market downturn in U.S. history. "We are pleased to welcome Mike to our Board as an independent director," said Smith. "Mike's more than 21 years in the housing industry, expert knowledge of the mortgage finance industry and practical regulatory experience will add substantial value to our Board." A copy of the Form 10-Q is available for free at: http://is.gd/9tboVc About Realogy Corp. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have around 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. The Company reported a net loss of $439 million in 2011, a net loss of $97 million in 2010, and a net loss of $260 million in 2009. * * * In the Oct. 9, 2012, edition of the TCR, Moody's Investors Service upgraded certain debt ratings of Realogy, Inc., including the Corporate Family to Caa1, Probability of Default and senior unsecured to Caa2 and senior subordinated to Caa3. The rating upgrades incorporate Moody's view that Realogy is positioned to benefit as the number of residential home sales and the average price of each transaction in the U.S. are expected to continue to grow modestly through 2013. As reported by the TCR on Oct. 15, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Realogy Corp. to 'B' from 'CCC' and removed it, along with all related issue-level ratings, from CreditWatch, where it was placed with positive implications Sept. 28, 2012. "The action follows the completion of the company's IPO of its common stock. Concurrent with and in addition to the IPO, Realogy converted $1.9 billion in convertible debt to common stock," S&P said. RONNIE SWIFT: Court Rejects Plan That Protects Non-Debtor --------------------------------------------------------- Bankruptcy Judge Timothy J. Mahoney denied confirmation of Ronnie E. Swift's Chapter 11 plan, which purports to protect a non-debtor co-obligor -- his spouse -- from creditor actions to collect on the debt from the co-obligor through state law procedures. Judge Mahoney said there is no authority in the Bankruptcy Code or the case law that allows a Chapter 11 individual debtor to provide those protections. The judge also noted that the ballot summary shows that out of the 13 classes, only one class, Class 11 -- which consists of any and all allowed secured claims wherein the collateral is something other than or in addition to real estate -- voted to accept the plan. Since no other class accepts the Plan, it appears that the plan is not proposed in good faith as required by 11 U.S.C. Sec. 1129(a)(3), the judge said. The Plan drew objections from: -- U.S. Bank National Association, as trustee, on behalf of the holders of the Structured Asset Investment Loan Trust Mortgage Pass-Through Certificates, Series 2006-3, c/o Select Portfolio Servicing, Inc.; -- U.S. Bank National Association as trustee successor in interest to Wachovia Bank, N.A. as trustee for Chase Funding Loan Acquisition Trust (Chase CFLAT 2004-AQ1 2004-AQ1); and -- The Bank of New York Mellon Trust Company, National Association, f/k/a The Bank of New York Trust Company, N.A. as successor to JPMorgan Chase Bank N.A., as Trustee, by GMAC Mortgage, L.L.C Select Portfolio holds a note signed only by the Debtor's spouse. The note is secured by a deed of trust executed by both the Debtor and his spouse and the real estate in question is owned by the Debtor and his spouse as joint tenants with rights of survivorship. The note principal balance on the petition date was less than the value of the property. The Select Portfolio claim is dealt with in Class 10 of the plan. That class does not specifically identify the Select Portfolio claim, but includes it with other allowed secured claims which are not specifically identified by the claim holder. The treatment of the claims in Class 10 is such that principal balances will be paid, together with simple annual interest is at the rate of 5.50% amortized over a 30-year period of time. The Debtor proposes that he will be responsible for taxes and insurance on the property and there will be no escrow. Select Portfolio contends the proposal to pay principal plus simple interest on the over-secured claim does not give Select Portfolio the right to collect attorney fees and other costs up to the value of the collateral as provided in 11 U.S.C. Sec. 506(b). Select Portfolio objects that its claim has been placed in Class 10 with others which are not similar in violation of Sec. 1122(a). The treatment violates a good faith requirement of Sec. 1129(a)(3) because it deprives Select Portfolio of its right to vote as a class, and deprives it of its contractual rights. Select Portfolio further argues that since the Debtor is not a party to the note, he has no ability to modify the note. U.S. Bank objects to the plan, first because the property which is its collateral is the homestead of the Debtor and his spouse. Under Sec. 1129(b)(5), the Debtor is prohibited from modifying the note. Nevertheless, the Debtor has failed to make seven post- petition payments and the bank believes no plan should be confirmed until the post-petition delinquencies are cured. Additionally, the contract between the bank and the Debtor and his spouse provides for pre-petition attorney fees incurred through collection efforts and the plan totally ignores that obligation, thereby modifying the contract. Finally, U.S. Bank suggests that an inability to make post-petition payments on this note indicates a lack of feasibility. GMAC holds a note with a principal balance of $61,387 as of March 2011, and a payoff of $73,297 as of the date of the hearing. The value of the real estate securing the note is $65,000. The plan proposes to pay only the principal and not pay any amounts accruing above the principal up to the value of $65,000. GMAC also objects to being placed in Class 10 with other secured claims. It also asserts that providing for a stay of any actions against the Debtor's spouse, a co-signer on the debt, is bad faith. GMAC objects that the plan proposes to extend the term of the promissory note for 30 years beyond the last payment date of Nov. 1, 2032. It also objects to that provision in the plan that the Debtor will be responsible for taxes and insurance because, on this particular note, there is private mortgage insurance and if the Debtor does not have his own PMI policy, the creditor would need to escrow the account in order to adequately protect the parties' interest. GMAC also objects that since the Debtor's spouse is obligated on the note and the deed of trust and has not filed a bankruptcy case, confirmation of the plan modifying the note would also modify GMAC's ability to enforce its rights against the non-debtor spouse and, therefore, such plan is not proposed in good faith. GMAC also objects to the stay prohibiting actions against the non- debtor obligor. Donna Rothlisberger as Trustee of the Donna Rothlisberger Revocable Trust objected to the Plan. The Rothlisberger objection was settled on the record at the hearing on the objections. According to Judge Mahoney, the Plan provision that puts two or more secured claims in Class 10 is improper. Each secured creditor has rights and collateral that are substantially different from one another. Placing them together violates Sec. 1122. Judge Mahoney also noted that the Debtor is not current on his post-petition obligations concerning his homestead. Not only does that raise feasibility issues, but it simply does not conform to the statutory obligation of 11 U.S.C. Sec. 1129(b)(5) which prohibits modification of that type of obligation. In addition, the Plan ignores contractual obligation on the homestead note to provide for pre-petition attorney fees for the creditor. Moreover, there is no evidence of feasibility of the Plan. Apparently, no payments have been made on the non-homestead notes since the petition date and there is no evidence that the Debtor has the ability to make any such payments. A copy of the Court's Nov. 1 Order is available at http://is.gd/Cd5cWYfrom Leagle.com. Ronnie E. Swift filed an individual Chapter 11 case (Bankr. D. Neb. Case No. 11-80717) on March 24, 2011. RESURRECTION CATHOLIC: Case Summary & 20 Largest Unsec. Creditors ----------------------------------------------------------------- Debtor: Resurrection Catholic Missions of the South, Inc. dba Resurrection Catholic School dba Resurrection Catholic Church 2815 Forbes Drive Montgomery, AL 36110 Bankruptcy Case No.: 12-32856 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court Middle District of Alabama (Montgomery) Judge: William R. Sawyer Debtor's Counsel: Michael A. Fritz, Sr., Esq. FRITZ HUGHES & HILL, LLC 1784 Taliaferro Trail, Suite A Montgomery, AL 36117 Tel: (334) 215-4422 Fax: (334) 215-4424 E-mail: bankruptcy@fritzandhughes.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/almb12-32856.pdf The petition was signed by Father Manuel Williams. RONALD PHILLIPS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Joint Debtors: Ronald Frank Phillips dba EMU Composting dba EMU Topsoil aka Ron Phillips Gloria Jean Phillips 22244 Port Gamble Rd Poulsbo, WA 98370 Bankruptcy Case No.: 12-20832 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Karen A. Overstreet Debtor's Counsel: David Carl Hill, Esq. LAW OFFICE OF DAVID CARL HILL 2472 Bethel Rd SE Ste A Port Orchard, WA 98366 Tel: (360) 876-5015 E-mail: bankruptcy@hilllaw.com Scheduled Assets: $2,873,681 Scheduled Liabilities: $2,469,718 A copy of the Joint Debtors' list of its 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb12-20832.pdf ROOMSTORE INC: Sleepy's, Longroad Vie for Mattress Discounters -------------------------------------------------------------- Marie Beaudette and Rachel Feintzeig at Dow Jones' DBR Small Cap reports that mattress giant Sleepy's Inc. will battle private equity firm Longroad Asset Management LLC at an upcoming auction for the equity in Mattress Discounters, in which defunct furniture retailer RoomStore Inc. holds a 65% stake. About RoomStore Inc. With more than $300 million in net sales for its fiscal year ending 2010, Richmond, Virginia-based RoomStore, Inc., was one of the 30 largest furniture retailers in the United States. RoomStore also offers its home furnishings through Furniture.com, a provider of Internet-based sales opportunities for regional furniture retailers. RoomStore filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 11-37790) on Dec. 12, 2011, following store-closing sales at four of its retail stores, located in Hoover, Alabama; Fayetteville, North Carolina; Tallahassee, Florida; and Baltimore, Maryland. At the time of the filing, the Company operated a chain of 64 retail furniture stores, including both large-format stores and clearance centers in eight states: Pennsylvania, Maryland, Virginia, North Carolina, South Carolina, Florida, Alabama, and Texas. It also had five warehouses and distribution centers located in Maryland, North Carolina, and Texas that service the Retail Stores. RoomStore also owns 65% of Mattress Discounters Group LLC, which operates 80 mattress stores (as of Nov. 30, 2011) in the states of Delaware, Maryland and Virginia and in the District of Columbia. RoomStore acquired the MDG stake after MDG's second bankruptcy in 2008. MDG sought Chapter 11 relief on Sept. 10, 2008 (Bankr. D. Md. Case Nos. 08-21642 and 08-21644). It filed the first Chapter 11 bankruptcy on Oct. 23, 2002 (Bankr. D. Md. Case No. 02-22330), and emerged on March 14, 2003. Judge Douglas O. Tice, Jr., presides over RoomStore's case. Lawyers at Lowenstein Sandler PC serve as the Debtor's bankruptcy counsel. Kaplan & Frank, PLC, serves as local counsel. FTI Consulting, Inc., serves as the Debtor's financial advisors and consultants. American Legal Claims Services, LLC, serves as its notice and claims agent. Lucy L. Thomson of Alexandria, Virginia, was appointed as consumer privacy ombudsman. RoomStore filed a plan of liquidation in June 2012 that provides for the sale of inventory and remaining assets to generate sufficient cash to pay secured and unsecured creditors in full. RoomStore's balance sheet at Nov. 30, 2011, showed $59.57 million in total assets, $57.75 million in total liabilities, and stockholders' equity of $1.82 million. The Debtor disclosed $44,624,007 in assets and $34,746,919 in liabilities as of the Chapter 11 filing. The petition was signed by Stephen Girodano, president and chief executive officer. Liquidator Hilco Merchant Resources, Inc., is represented in the case by Gregg M. Galardi, Esq., at DLA Piper LLP (US); and Robert S. Westermann, Esq., and Sheila de la Cruz, Esq., at Hirschler Fleischer, P.C. The U.S. Trustee for Region 4 named seven members to the official committee of unsecured creditors in the case. The Creditors Committee tapped Hunton & Williams LLP as its counsel. SAN BERNARDINO: Says It Chopped $29 Million From Deficit -------------------------------------------------------- Phil Milford at Bloomberg News reports that bankrupt San Bernardino, California, officials said in a status report released Nov. 2 that they've eliminated about $29 million from the city's budget deficit, and are making progress "toward fiscal stability." According to the report, city administrators also asked a U.S. bankruptcy judge supervising their Chapter 9 case in Riverside to set a status conference within 45 days to help resolve objections to their decision to seek court supervision. "The city has made expenditure reductions that substantially reduce its staggering $48.5 million budget deficit," resulting in "a remaining projected budget deficit of about $16.03 million for the current fiscal year," wrote City Attorney Paul Glassman the eight-page report. The report relates that he said city staff "are diligently working" to develop a plan for a balanced budget for this fiscal year. Among the cost savings were budget cuts, "revenue offsets" and "adjusted net transfers," according to court papers. The city also said it saved money by deferring payments to the California Public Employees' Retirement System, apparently the city's biggest creditor. The Bloomberg report discloses that in the status report, the city said that without court protection from creditors, it wouldn't be able to pay employees, and service debt for police cruisers, fire engines, or garbage trucks to protect the health and safety of its citizens. About San Bernardino San Bernardino, California, filed an emergency petition for municipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 12-28006) on Aug. 1, 2012. San Bernardino, a city of about 210,000 residents roughly 65 miles (104 km) east of Los Angeles, estimated assets and debts of more than $1 billion in the bare-bones bankruptcy petition. The city council voted on July 10, 2012, to file for bankruptcy. The move lets San Bernardino bypass state-required mediation with creditors and proceed directly to U.S. Bankruptcy Court. The city is represented that Paul R. Glassman, Esq., at Stradling Yocca Carlson & Rauth. San Bernardino joins two other California cities in bankruptcy: Stockton, an agricultural center of 292,000 east of San Francisco, and Mammoth Lakes, a mountain resort town of 8,200 south of Yosemite National Park. SAN BERNARDINO, CA: To Defer CalPERS Payments Amid Ch. 9 Woes ------------------------------------------------------------- Sindhu Sundar at Bankruptcy Law360 reports that the City of San Bernardino, Calif., will defer a part of its payments to the California Public Employees' Retirement System in efforts to reduce costs as it negotiates through a roughly $46 million budget shortfall amid mounting obligations to its creditors, the bankrupt city said Monday. About San Bernardino San Bernardino, California, filed an emergency petition for municipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 12-28006) on Aug. 1, 2012. San Bernardino, a city of about 210,000 residents roughly 65 miles (104 km) east of Los Angeles, estimated assets and debts of more than $1 billion in the bare-bones bankruptcy petition. The city council voted on July 10, 2012, to file for bankruptcy. The move lets San Bernardino bypass state-required mediation with creditors and proceed directly to U.S. Bankruptcy Court. The city is represented that Paul R. Glassman, Esq., at Stradling Yocca Carlson & Rauth. San Bernardino joins two other California cities in bankruptcy: Stockton, an agricultural center of 292,000 east of San Francisco, and Mammoth Lakes, a mountain resort town of 8,200 south of Yosemite National Park. SHAMROCK-HOSTMARK: Plan Filing Period Extended Until Jan. 31 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Illinois extended Shamrock-Hostmark Princeton, LLC's exclusive periods to file a plan of reorganization and to solicit acceptances of that plan until Jan. 31, 2013, and April 1, 2013. This is the first extension of the Debtors' exclusive periods. General Electric Capital Corporation, as senior secured lender, had objected to the extension of the exclusive periods. GECC said the case is neither large no complex. "There is one asset and one secured creditor. The aggregate amount of unsecured clams listed in the Debtor's schedules is less than $500,000. It is not clear whether the Debtor even has any employees." Further, GECC said, the Debtor has made no progress toward formulating or negotiating a plan. About Shamrock-Hostmark Schaumburg, Ill.-based Shamrock-Hostmark Princeton Hotel, LLC, filed for Chapter 11 protection (Bank. N.D. Ill. Case No. 12-25860) on June 27, 2012. William Gingrich signed the petition as vice president-CFO, of Hostmark Hospitality Group. Shamrock- Hostmark Princeton Hotel disclosed $522,413 in assets and $15,457,812 in liabilities as of the Chapter 11 filing. Judge Jacqueline P. Cox presides over the case. Shamrock-Hostmark Andover and four affiliates are units of investment fund Shamrock-Hostmark Hotel Fund that own hotels. Shamrock-Hostmark Princeton owns the DoubleTree by Hilton Hotel Princeton located in Princeton, New Jersey. Shamrock-Hostmark Texas owns Crowne Plaza Hotel in San Antonio, TX. Shamrock- Hostmark Palm owns Embassy Suites Palm Desert in Palm Desert, CA. Shamrock-Hostmark Andover owns the Wyndham Boston Andover in Andover, MA. Shamrock-Hostmark Tampa owns the DoubleTree by Hilton Hotel Tampa Airport - Westshore in Tampa, FL. The Debtors are represented by David M. Neff, Esq., at Perkins Coie LLP, in Chicago, Illinois. SHARP CORP: Faces Material Doubt on Survival After Wider Loss ------------------------------------------------------------- Mariko Yasu and Naoko Fujimura at Bloomberg News reports that Sharp Corp., the world's worst performing major stock, said there was "material doubt" about its ability to survive after forecasting a record $5.6 billion full-year loss on falling demand for its display panels. According to the report, the net loss will probably be JPY450 billion in the year ending March 31, the Osaka-based TV maker said in a statement Oct. 31, scrapping its earlier projection for a JPY250 billion loss. The new forecast compares with the JPY296 billion loss average of 17 analyst estimates compiled by Bloomberg. The report relates that Sharp has failed to win a planned 67 billion-yen investment from Taiwan's Foxconn Technology Group and has had difficulty selling commercial paper as it burns through cash. The company said its loss for the six months ended Sept. 30 was "huge," stemming from falling prices for liquid-crystal- display panels, delays at an LCD factory and declining sales in Japan and China. The company's warning echoes that made by chipmaker Elpida Memory Inc. before it filed for bankruptcy in February. "Sharp is in a desperate situation as it tries to deal with short-term funding problems," said Ichiro Takamatsu, a fund manager at Tokyo-based Bayview Asset Management, which oversees 150 billion yen. "It doesn't have a long-term vision except for its plan to sell more small- and mid-sized LCDs." Foxconn Partnership The report notes that Sharp follows Panasonic Corp. in predicting losses worse than analysts estimated after losing ground to Samsung Electronics Co. in TVs. In contrast, Sony Corp. reiterated its forecast for a first annual profit in five years after slashing costs, exiting panel ventures and trimming its TV lineup. "Sharp is in circumstances in which material doubt about its assumed going concern is found," the company said in a statement to the Tokyo Stock Exchange. The company's turnaround plan includes seeking voluntary retirements, cutting salaries, selling assets and reducing capital investments, it said. Japan's largest maker of liquid crystal displays also is considering several partnerships as talks with Foxconn continue, President Takashi Okuda said. "I seriously take to heart that we had to add that comment," Mr. Okuda said. "We will revive our earnings and trust from investors as soon as possible. We will show that with a result." Sharp fell 1.7% to 169 yen at the close in Tokyo trading before the announcement. The stock has plunged 75% this year, the worst performer among more than 1,600 companies in the MSCI World Index. Sony, Panasonic The report relays that Panasonic, Japan's second-biggest TV maker, said Oct. 31 it expected a 765 billion-yen full-year net loss, or 30 times bigger than analysts had estimated, citing restructuring costs and falling demand for its products. Osaka-based Panasonic said it won't pay a dividend for the first time since 1950 because of an "urgent need" to improve its financial position. Sony, Japan's biggest consumer-electronics exporter, kept its full-year net-income forecast unchanged at 20 billion yen even as it unexpectedly posted a seventh straight quarterly loss on slumping demand for Bravia TVs and Cyber-shot cameras. Operating loss at the home-entertainment unit, which includes the TV operations, shrank to 15.8 billion yen in the quarter ended Sept. 30 compared with 41.8 billion yen a year earlier, Sony said in a statement. The company is ahead of its plan to turn around the TV business, Chief Executive Officer Kazuo Hirai said in October. Tokyo-based Sony has halved the number of Bravia models sold in the U.S. and Japan to a combined 39 from 79. 'Drastic Measures' According to Bloomberg, Sharp widened its full-year forecast for operating loss for LCDs to JPY132 billion from JPY105 billion, saying it took a 53.5 billion-yen write down on its large LCD inventory and sales of small LCDs fell below estimates. Global TV demand is expected to remain little changed in 2013 after shipments of all TV types declined more than 4% this year, researcher DisplaySearch said. Sharp also posted a 61 billion-yen charge on deferred tax assets and took a 30.1 billion-yen write down on equipment for solar-panel production. "Sharp must take drastic measures or else banks will give up on it," said Makoto Kikuchi, chief executive officer at Myojo Asset Management Japan Co., a Tokyo-based hedge fund advisory firm. About Sharp Corp. Based in Osaka, Japan, Sharp Corporation (TYO:6753) -- http://sharp-world.com/-- manufactures and sells electronic telecommunication devices, electronic machines and components. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 4, 2012, Standard & Poor's Ratings Services lowered to 'BB+' its long-term corporate credit and senior unsecured debt ratings on Sharp Corp. and its overseas subsidiaries, Sharp Electronics Corp. and Sharp International Finance (U.K.) PLC. "At the same time, we lowered our short-term ratings on the companies to 'B' from 'A-2'. We kept Sharp's long- and short-term ratings on CreditWatch with negative implications," S&P said. "Sharp's liquidity position is weakening, in Standard & Poor's view. Internal cash flow remains weak, and financial market conditions for the company have deteriorated. The company has forecast an expected JPY250 billion net loss for fiscal 2012 (ending March 31, 2013), exceeding its budgeted depreciation expense of JPY200 billion. As of June 30, 2012, Sharp had a high dependence on short-term borrowings. It had JPY336 billion in short-term debt and JPY362 billion in commercial paper. In recent weeks, the company has faced unfavorable financial market conditions, as evidenced by a recent rise in spreads on credit default swaps, which has added to its difficulty in issuing new commercial paper. Weak internal cash flow has forced the company to repay its commercial paper primarily with bank borrowings. Because its current liquidity needs exceed sources, we view Sharp's liquidity position as 'less than adequate.' Under our ratings criteria, we assign an issuer credit rating no higher than 'BB+' to a company with 'less than adequate' liquidity," S&P said. SINCLAIR BROADCAST: Posts $26.3-Mil. Net Income in 3rd Quarter -------------------------------------------------------------- Sinclair Broadcast Group, Inc., reported net income of $26.35 million on $260.48 million of total revenues for the three months ended Sept. 30, 2012, compared with net income of $19.33 million on $181.04 million of total revenues for the same period during the prior year. For the nine months ended Sept. 30, 2012, the Company reported net income of $85.55 million on $736.81 million of total revenues, in comparison with net income of $52.93 million on $552.51 million of total revenues for the same period a year ago. The Company's balance sheet at Sept. 30, 2012, showed $2.24 billion in total assets, $2.29 billion in total liabilities and a $52.38 million total stockholders' deficit. "We are very pleased with our results for the third quarter, which were driven by increased advertising spending by the political and automotive categories, as well as higher retransmission revenues," commented David Smith, President and CEO of Sinclair. "Despite increased demand for air-time by politicians and political action groups, the core business showed solid growth. On a same station basis, excluding political, net broadcast revenues grew 6.9% in the third quarter." "We continue to reinvest in the Company's long term growth, having recently entered into an agreement to buy the non-license assets of KBTV, the FOX affiliate in the Beaumont/Port Arthur, Texas market, where we also own the CBS station. We also entered into an agreement to sell our ABC station, WLAJ, in Lansing, Michigan as part of our on-going portfolio evaluation in which we identify pockets of opportunity as well as non-strategic markets." Mr. Smith continued, "In an extraordinary, value-creation action and in anticipation of a potential increase in dividend tax rates in 2013, the Board of Directors decided to return approximately $81.2 million of value to our shareholders in the form of a $1.00 per share special cash dividend, in addition to our regular $0.15 per share quarterly dividend." A copy of the press release is available for free at: http://is.gd/iQmau5 About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22% of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. The Company said in the Form 10-Q for the quarter ended March 31, 2012, that any insolvency or bankruptcy proceeding relating to Cunningham, one of its LMA partners, would cause a default and potential acceleration under a Bank Credit Agreement and could, potentially, result in Cunningham's rejection of the Company's seven LMAs with Cunningham, which would negatively affect the Company's financial condition and results of operations. * * * As reported by the TCR on Feb. 24, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on Hunt Valley, Md.- based TV broadcaster Sinclair Broadcast Group Inc. to 'BB-' from 'B+'. The rating outlook is stable. "The 'BB-' rating on Sinclair reflects S&P's expectation that the company could keep its lease-adjusted debt to EBITDA below historical levels throughout the election cycle, absent a reversal of economic growth, meaningful debt-financed acquisitions, or significant shareholder-favoring measures," explained Standard & Poor's credit analyst Deborah Kinzer. In September 2010, Moody's raised its ratings for Sinclair Broadcast and subsidiary Sinclair Television Group, Inc., including the Corporate Family Rating and Probability-of-Default Rating, each to Ba3 from B1, and the ratings for individual debt instruments. Moody's also assigned a B2 (LGD 5, 87%) rating to the proposed $250 million issuance of Senior Unsecured Notes due 2018 by STG. The Speculative Grade Liquidity Rating remains unchanged at SGL-2. The rating outlook is now stable. SMILE BRANDS: Moody's Cuts CFR/PDR to 'B3'; Outlook Negative ------------------------------------------------------------ Moody's Investors Service downgraded Smile Brands Group, Inc.'s Corporate Family and Probability of Default Ratings to B3 from B2, its $240 million senior secured rating to B1 from Ba3, and its $35 million revolving credit facility to B1 from Ba3. The rating outlook is negative. The rating action is due to a deterioration in the company's EBITDA, cash flow, and credit metrics and Moody's belief that Smile Brands will be unable to restore metrics to levels appropriate to a B2 rating over the near to intermediate- term. The downgrade also reflects the recent deterioration in the company's internal and external liquidity sources. "The downgrade reflects our view that credit metrics are weak for the prior B2 rating, and are unlikely to improve to levels appropriate for a B2 over the near term," said Daniel Gon‡alves, Analyst at Moody's Investors Service. "We believe the company's continued aggressive de novo strategy and the challenging consumer spending environment are the prevailing factors that will constrain Smile Brands' earnings and cash flow," continued Gon‡alves. Following is a summary of Moody's rating actions. Ratings downgraded: Smile Brands Group, Inc. Corporate Family Rating to B3 from B2 Probability of Default Rating to B3 from B2 $35 million senior secured first lien revolving credit facility to B1 (LGD 3, 31%) from Ba3 (LGD 3, 32%) $240 million senior secured first lien term loan to B1 (LGD3, 31%) from Ba3 (LGD3, 32%) The rating outlook is negative. Ratings Rationale Smile Brand's B3 Corporate Family Rating reflects the company's relatively small size, high financial leverage, weak interest coverage, and negative free cash flow due to the company's aggressive growth strategy. Also constraining the rating is the limited availability under the company's external liquidity sources, and the high proportion of patient out-of-pocket expenses, exposing the company to economic cycles and consumer spending patterns. The ratings also incorporate Moody's expectation of continued expansion activity over the intermediate- term, a strategy that the rating agency expects to continue to constrain profitability margins and free cash flow. The ratings are supported by Smile Brands' strong market position as the largest dental service organization (DSO) in the U.S., maintaining leading competitive positions in many of its large markets. Ratings are also supported by the company's ability to reduce growth if necessary, which would allow it to generate positive free cash flow that could be used to reduce debt. The negative rating outlook reflects Moody's expectation that the company's key credit metrics will remain weak, that the consumer spending environment will remain challenging, and availability under the company's liquidity sources will remain limited over the next twelve-to-eighteen months. The ratings could be downgraded if the company's key credit metrics or liquidity profile further deteriorates. In addition, the ratings could be lowered if the company engages in material debt-financed acquisitions. Given the Smile Brands' weak credit metrics and constrained liquidity, a rating upgrade in the near to intermediate term is unlikely. Over the longer term, ratings could be upgraded if the company can demonstrate revenue and EBITDA growth such that debt to EBITDA approaches 5.5 times, free cash flow to debt is sustained above 2%, and EBITDA minus capital expenditures to interest expense is maintained above 1.0 times. The principal methodology used in rating Smile Brands Group, Inc. 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 Irvine, California, Smile Brands Group Inc. is a leading dental service organization ("DSO") in the United States. Through its owned subsidiaries and affiliated professional corporations (PCs), the company provides comprehensive business support services, non-clinical personnel, facilities and equipment to more than 1,100 dentists and hygienists practicing in over 359 offices nationally. Smile Brands' primary equity sponsor is Welsh, Carson, Anderson & Stowe ("WCAS"). For the twelve months ended June 30, 2012, the company had revenues of $499 million. SOLYNDRA LLC: Approval of Bankruptcy Plan Faces Appeal by IRS ------------------------------------------------------------- Karen Gullo at Bloomberg News reports that a bankruptcy judge's decision to approve Solyndra LLC's plan to exit court protection was appealed by the Internal Revenue Service. The agency notified U.S. Bankruptcy Judge Mary Walrath in Wilmington, Delaware, of the appeal in a court filing Nov. 1. According to the report, Judge Walrath approved the plan over government objections last month. Under the plan, Solyndra, the failed solar-panel maker that received a $535 million U.S. Energy Department loan guarantee before going bankrupt, will be liquidated. Its parent, 360 Degree Solar Holdings Inc., will exit court protection with so called net operating loss carry forwards of as much as $975 million, which it may use against future income, according to court papers. The potential tax breaks may be as much as $341 million. The Bloomberg report discloses that the IRS objected, arguing the plan couldn't be approved because its principal purpose was to allow 360 Degree investors Argonaut Ventures I LLC and Madrone Partners LP to avoid taxes. Judge Walrath rejected the IRS's challenge, saying at an Oct. 22 hearing that tax avoidance "has to be the primary, most important part of the plan, and I just don't see that here." About Solyndra LLC Founded in 2005, Solyndra LLC was a U.S. manufacturer of solar photovoltaic solar power systems specifically designed for large commercial and industrial rooftops and for certain shaded agriculture applications. The Company had 968 full time employees and 211 temporary employees. Solyndra has sold more than 500,000 of its panels since 2008 and generated cumulative sales of over $250 million. Fremont, California-based Solyndra and affiliate 360 Degree Solar Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at least the third solar company to seek court protection from creditors since August 2011. Judge Mary F. Walrath presides over the Debtors' cases. The Debtors are represented by Pachulski Stang Ziehl & Jones LLP as legal adviser. AlixPartners LLP serves as noticing claims and balloting agent. Imperial Capital LLC serves as the company's investment banker and financial adviser. The Debtors also tapped former Massachusetts Governor William F. Weld, now with the law firm McDermott Will & Emery, to represent the company in government investigations and related litigation. BDO Consulting, a division of BDO USA, LLP, as financial advisor and BDO Capital Advisors, LLC, serves as investment banker for the creditors' panel. The Official Committee of Unsecured Creditors of Solyndra LLC has tapped Blank Rome LLP as counsel and BDO Consulting as financial advisors. In October 2011, the Debtors hired Berkeley Research Group, LLC, and designated R. Todd Neilson as Chief Restructuring Officer. Solyndra owed secured lenders $783.8 million, including $527.8 million to the U.S. government pursuant to a federal loan guarantee, and held assets valued at $859 million as of the Petition date. The U.S. Federal Financing Bank, owned by the U.S. Treasury Department, is the Company's biggest lender. When they filed for Chapter 11, the Debtors pursued a two-pronged strategy to effectuate either a sale of their business to a "turnkey" buyer who may acquire substantially all of Solyndra's assets or, if the Debtors were unable to identify any potential buyers, an orderly liquidation of the assets for the benefit of their creditors. Solyndra did not receive acceptable offers to buy the business as a going concern. Two auctions late last year brought in a total of $8 million. A three-day auction in February generated another $3.8 million. An auction in June generated $1.79 million from the sale of 7,200 lots of equipment. Solyndra filed a liquidating plan at the end of July and scheduled a hearing on Sept. 7 for approval of the explanatory disclosure statement. The Plan is designed to pay 2.5% to 6% to unsecured creditors with claims totaling as much as $120 million. Unsecured creditors with $27 million in claims against the holding company are projected to have a 3% dividend. SPEIGHT FAMILY: Case Summary & 2 Unsecured Creditors ---------------------------------------------------- Debtor: Speight Family Partnership, LLLP 1440 State Highway 248, Suite Q Branson, MO 65616 Bankruptcy Case No.: 12-61950 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court Western District of Missouri (Springfield) Judge: Arthur B. Federman Debtor's Counsel: David E. Schroeder, Esq. DAVID SCHROEDER LAW OFFICES, P.C. 1524 East Primrose Street, Suite A Springfield, MO 65804-7915 Tel: (417) 890-1000 Fax: (417) 886-8563 E-mail: bk1@dschroederlaw.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 unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/mowb12-61950.pdf The petition was signed by Robert Speight, managing partner. SPORTS AUTHORITY: Moody's Rates $630MM Sr. Sec. Term Loan 'B3' -------------------------------------------------------------- Moody's Investors Service revised the outlook for The Sports Authority Inc. to stable from negative and assigned a B3 rating to its proposed $630 million senior secured term loan. All other existing ratings including the B3 corporate family rating and the B3 probability of default rating were affirmed. The change in outlook to stable from negative was based on the reduction of future interest expense pro forma for the refinancing combined with management's strategic initiatives to improve store efficiencies. "The dollar-for-dollar refinancing is leverage neutral but improves the company's interest coverage," stated Moody's Analyst Mariko Semetko. As the refinancing is anniversaried over the coming year, EBITA/interest expense will likely improve to a mid-one-times range, a level more consistent with the B3 corporate family rating. Historically, EBITA/interest expense hovered around 1.0 time. In addition, the company has been lowering inventory levels, which will reduce the risk of markdowns and associated margin declines, a factor that will be particularly key as the company enters its peak winter selling season. Last winter, the company had to take markdowns as a result of unusually warm weather combined with high inventory levels. The improvements in interest coverage will not be sufficient to change the corporate family rating, as The Sport Authority's debt/EBITDA remains high at 6.7 times as of July 28, 2012. Moody's expects the company to maintain good liquidity, reflecting expectations for positive free cash flow, the absence of near term debt maturities and availability under its amended $650 million ABL revolver (unrated by Moody's). The ratings are contingent upon the transaction closing as proposed, and the receipt and review of final documentation. The following rating has been assigned: - Proposed $630 million senior secured term loan due 2019 at B3 (LGD4, 54%) The following ratings have been affirmed: - Corporate family rating at B3 - Probability of default rating at B3 The following will be withdrawn upon closing of the refinancing: - $295 million term loan due 2017 at B3 (LGD3, 44%) Ratings Rationale The Sports Authority's B3 corporate family rating reflects the company's high debt leverage, the highly competitive sports retail environment, and the company's weak same store sales growth. At the same time, the company's well-recognized brand name, national footprint, management initiatives to reduce costs and improve store efficiencies, and good liquidity profile support its rating. The stable outlook reflects Moody's expectations that the company will continue to implement cost control initiatives and disciplined inventory management to minimize markdowns, while maintaining good liquidity. The stable outlook also incorporates expectations for flat-to-low single digit same store sales growth. Ratings could be downgraded if debt/EBITDA is sustained at or above 7.0x or EBITA/interest expense remains at or below 1.0x. Further, any deterioration in liquidity may result in a downgrade. Given the company's substantial balance sheet leverage and inconsistent track record of same store sales growth, an upgrade is unlikely in the near term. However, over the longer term, sustained same store sales growth, improvement in operating performance and ongoing deleveraging could have positive rating implications. Specifically, ratings could be upgraded if debt/EBITDA approaches 5.5 times and EBITA/interest expense is sustained above 1.5 times. The principal methodology used in rating The Sports Authority, Inc. was the Global Retail Industry Methodology published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. The Sports Authority, Inc., under The Sports Authority and S.A. Elite banners, is a full-line sporting goods retailer operating over 470 stores in 43 states. Revenues for the twelve months ended July 28, 2012 were approximately $2.7 billion. The company is owned by private equity firm Leonard Green & Partners, L.P. SUBMARINA, INC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Submarina, Inc. 4801 Woodway Drive, Suite 300E HOUSTON, TX 77056 Bankruptcy Case No.: 12-22097 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Matthew L. Johnson, Esq. MATTHEW L. JOHNSON & ASSOCIATES, P.C. 8831 W. Sahara Avenue Las Vegas, NV 89117 Tel: (702) 471-0065 Fax: (702) 471-0075 E-mail: shari@mjohnsonlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nvb12-22097.pdf The petition was signed by Bruce N. Rosenthal, president and CEO. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Kerensa Investment Fund 1, LLC 11-24352 09/09/11 SURF'S WILMINGTON: Case Summary & 19 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Surf's Wilmington, LLC dba Surfs Bar and Grille 24 Merchants Way, Suite 208 Colts Neck, NJ 07722 Bankruptcy Case No.: 12-07630 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court Eastern District of North Carolina (Wilson) Debtor's Counsel: George M. Oliver, Esq. OLIVER FRIESEN CHEEK, PLLC P.O. Box 1548 New Bern, NC 28563 Tel: (252) 633-1930 Fax: (252) 633-1950 E-mail: efile@ofc-law.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 19 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nceb12-07630.pdf The petition was signed by W. Benjamin Minton, member/manager of Coastal Restaurant Associates, LLC. Affiliates that filed separate Chapter 11 petitions: Entity Case No. Petition Date ------ -------- ------------- Promenade Partners, LLC 12-01485 02/27/12 The Shops at Promenade, LLC 11-02000 03/16/11 T3 MOTION: Receives Delisting Notice From NYSE MKT -------------------------------------------------- T3 Motion, Inc., disclosed that the Company received a notice dated Oct. 26, 2012, from the NYSE MKT Staff indicating that the Company was not in compliance with the Exchange's continued listing standards. Specifically, the Company is not in compliance with Section 1003(a)(iv) in that it has sustained losses which are so substantial in relation to its overall operations or its existing financial resources or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether the Company will be able to continue operations and/or meet its obligation as they mature. As a result, the Company's securities are subject to being delisted from the Exchange pursuant to Section 1009 of the Company Guide. T3 Motion, Inc. has been operating under a Plan of Compliance accepted by the Exchange on Aug. 10, 2012, that originally allowed the Company until Nov. 20, 2012, to regain compliance with the deficiencies noted above. During this period, the Company has been subject to periodic review by Exchange Staff, and was informed of the requirement to make progress consistent with the Plan or to regain compliance with the continued listing standards of the Exchange by the end of the Extension Date. In the Oct. 26, 2012, notice, however, the Company was informed of the Staff's determination that the Company had not made progress consistent with the Plan and failed to present a reasonable basis to conclude that the Company could regain compliance with the Exchange's listing standards. Accordingly, the Company's securities are subject to immediate delisting proceedings. T3 Motion, Inc. appreciates the time given to the Company to cure its deficiencies, and has informed NYSE MKT of its intention to pursue the right of appeal and request a hearing pursuant to Sections 1203 and 1009(d) of the Exchange's Company Guide. There can be no assurance that the Company's request for continued listing will be granted at this hearing. In the event the Company's appeal is unsuccessful, the Company expects that its common stock will trade on OTC-BB following any official delisting from NYSE MKT. After review of the available options, the Company's board of directors concluded that current negotiations for investment capital would, if consummated quickly, provide sufficient capital to put T3 Motion, Inc. in compliance with the Exchange's listing standards and allow T3 Motion, Inc. to retain its NYSE MKT listing. The marginal costs of the appeal and of continuing ongoing negotiations create a positive cost/benefit tradeoff. However, there can be no guarantee of finalizing a transaction or, if such a transaction is completed, of retaining the Exchange listing even if the Company improves its financial condition. In any scenario, T3 Motion, Inc. intends to remain as a fully reporting, current SEC filer with transparent accounting and proper corporate governance. The Company will continue to update its stockholders on its progress, including, but not limited to, the status of its NYSE MKT listing. The Company's trading symbol will bear the "BC" indicator until the Company is either delisted or regains compliance with the Exchange's continued listing requirements. 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. 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. THINKFILM LLC: Judge Denies Bid to Withdraw Film Library Suit ------------------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that U.S. District Judge Philip S. Gutierrez on Friday refused to withdraw from bankruptcy court a derivative lawsuit accusing film producer and financier David Bergstein of fraudulently transferring a valuable film library beyond the reach of his bankrupt companies' creditors. Bankruptcy Law360, citing an order filed with the court, relates that Judge Gutierrez denied as untimely defendant Library Asset Acquisition Company Ltd.'s bid to withdraw reference from the bankruptcy court. About Thinkfilm LLC CapCo Group LLC and four other companies controlled by David Bergstein are part of a wider network of entities that distribute and finance films. Among the approximately 1,300 films they have the rights to are "Boondock Saints" and "The Wedding Planner." Several creditors filed for involuntary Chapter 11 bankruptcy against the companies on March 17, 2010 -- CT-1 Holdings LLC (Bankr. C.D. Calif. Case No. 10-19927); CapCo Group, LLC (Bankr. C.D. Calif. Case No. 10-19929); Capitol Films Development LLC (Bankr. C.D. Calif. Case No. 10-19938); R2D2, LLC (Bankr. C.D. Calif. Case No. 10-19924); and ThinkFilm LLC (Bankr. C.D. Calif. Case No. 10-19912). Judge Barry Russell presides over the cases. The Petitioners are represented by David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP. Judge Barry Russell formally declared David Bergstein's ThinkFilm LLC and Capitol Films Development bankrupt on Oct. 5, 2010. Mr. Bergstein is being sued for tens of millions of dollars by nearly 30 creditors -- including advertisers, publicists and the Writers Guild West. Five Bergstein controlled companies have been named in the suit. THERAPEUTIC SOLUTIONS: PLS CPA Raises Going Concern Doubt --------------------------------------------------------- Therapeutic Solutions International, Inc., filed on Oct. 31, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. PLS CPA, A Professional Corp., in San Diego, expressed substantial doubt about Therapeutic Solutions' ability to continue as a going concern. The independent auditors noted that under the New License Agreement the Company's rights to sell Anterior Midpoint Stop Appliances to the US market (81% of total revenue) will expire at the end of 2012. The Company reported a net loss of $970,699 on $1.7 million of net revenues in 2011, compared with a net loss of $7,657 on $nil revenue for the period Sept. 21, 2010, to Dec. 31, 2010. The Company's balance sheet at Dec. 31, 2011, showed $3.5 million in total assets, $3.2 million in total liabilities, and a stockholders' deficit of $302,383. A copy of the Form 10-K is available at http://is.gd/9ZgpqS Oceanside, Calif.-based Therapeutic Solutions International, Inc., manufactures and sells AMPSA Products to licensed dentists. The AMPSA Products are FDA cleared for the prophylactic treatment of medically diagnosed migraine pain as well as migraine associated tension-type headaches, by reducing their signs and symptoms through reduction of trigeminally innervated muscular activity. AMPSA Products are either fitted chairside by licensed dentists or produced and sold on a semi-custom basis by dental laboratories. AMPSA Products are made of polycarbonate plastic and are designed to fit over either the upper or lower front incisor teeth and protect teeth, muscles and joints by significantly suppressing parafunctional muscle contraction. TITAN PHARMACEUTICALS: Files New Drug Application for Probuphine ---------------------------------------------------------------- Titan Pharmaceuticals, Inc., announced the submission of a New Drug Application to the U.S. Food and Drug Administration for the investigational product Probuphine for the maintenance treatment of opioid dependence in adult patients. Probuphine, a novel, subdermal implant, is the first long-acting product designed to deliver six months of the drug buprenorphine hydrochloride following a single treatment. The NDA has been submitted under Section 505(b)(2) of the Food, Drug and Cosmetic Act and references the approved sublingual tablet formulations of buprenorphine. U.S. sales of daily dosed sublingual formulations containing buprenorphine indicated for the treatment of opioid dependence were approximately $1.3 billion in 2011. "We are extremely pleased to submit this NDA, including our request for a Priority Review of Probuphine, following the successful manufacture of the first commercial scale batch in the new production facility," said Sunil Bhonsle, president of Titan. "Not only does this key milestone mark a significant step forward for Titan and our shareholders but, most importantly, we believe that Probuphine, if approved, will provide an important treatment option for patients and physicians." About Titan Pharmaceuticals South San Francisco, California-based Titan Pharmaceuticals, Inc., is a biopharmaceutical company developing proprietary therapeutics primarily for the treatment of central nervous system disorders. Following the 2011 results, OUM & Co. LLP, in San Francisco, California, expressed substantial doubt about Titan Pharmaceuticals' ability to continue as a going concern. The independent auditors noted that the Company's cash resources will not be sufficient to sustain its operations through 2012 without additional financing, and that the Company also has suffered recurring operating losses and negative cash flows from operations. Titan Pharmaceuticals' balance sheet at June 30, 2012, showed $10.05 million in total assets, $33.04 million in total liabilities and a $22.99 million total stockholders' deficit. TK1 INVESTMENTS: Case Summary & 2 Unsecured Creditors ----------------------------------------------------- Debtor: TK1 Investments, LLC 855 Trosper Rd. S.W. #108-105 Olympia, WA 98512 Bankruptcy Case No.: 12-47303 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court Western District of Washington (Tacoma) Judge: Brian D. Lynch Debtor's Counsel: Brian L. Budsberg, Esq. BUDSBERG LAW GROUP PLLC 1115 W Bay Dr., Suite 201 Olympia, WA 98502 Tel: (360) 584-9093 E-mail: paralegal@budsberg.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 A copy of the Company's list of its two largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wawb12-47303.pdf The petition was signed by Kevin Turner, managing member. TONI BRAXTON: Case Trustee Sues Ex-Husband to Recoup $53,490 ------------------------------------------------------------ TMZ reports that the bankruptcy trustee overseeing Toni Braxton's bankruptcy estate has filed a lawsuit alleging Ms. Braxton fraudulently transferred $53,490 to her estranged husband, Keri Lewis, in order to avoid paying back creditors in her bankruptcy case. TMZ relates that, according to new docs filed in Ms. Braxton's ongoing bankruptcy case, Mr. Lewis received the 5-figure sum after Toni's money was already earmarked to repay creditors. Toni Braxton filed for Chapter 7 bankruptcy in 2010, claiming she owed between $10 million and $50 million in debts. TRANS-LUX CORP: Reports $739,000 Net Income in Second Quarter ------------------------------------------------------------- Trans-Lux Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $739,000 on $6.84 million of total revenues for the three months ended June 30, 2012, compared with a net loss of $1.63 million on $5.09 million of total revenues for the same period during the prior year. The Company reported a net loss of $931,000 on $12.47 million of total revenues for the six months ended June 30, 2012, compared with a net loss of $3.30 million on $10 million of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2012, showed $25.05 million in total assets, $22.11 million in total liabilities and $2.94 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/3VNpOS 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. USEC INC: Reports $4.5 Million Net Income in Third Quarter ---------------------------------------------------------- USEC Inc. reported net income of $4.5 million on $570.5 million of total revenue for the three months ended Sept. 30, 2012, compared with a net loss of $6.9 million on $374.5 million of total revenue for the same period during the prior year. The Company reported a net loss of $116.3 million on $1.49 billion of total revenue for the nine months ended Sept. 30, 2012, compared with a net loss of $44.7 million on $1.20 billion of total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2012, showed $3.76 billion in total assets, $3.11 billion in total liabilities, and $652.2 million in stockholders' equity. "I am pleased to report crisp execution in the third quarter of the RD&D program and the multi-party contract that has extended enrichment activities at the Paducah Gaseous Diffusion Plant," said John K. Welch, USEC president and chief executive officer. "We reported better financial results year over year with an improved gross profit, and finished the quarter with a cash balance just over $300 million. We reiterated our guidance for 2012 and expect to finish the year with a cash balance exceeding $200 million," Welch noted. Bankruptcy Warning "A delisting of our common stock by the NYSE and the failure of our common stock to be listed on another national exchange could have significant adverse consequences. A delisting would likely have a negative effect on the price of our common stock and would impair shareholders' ability to sell or purchase our common stock. As of September 30, 2012, we had $530 million of convertible notes outstanding. A "fundamental change" is triggered under the terms of our convertible notes if our shares of common stock are not listed for trading on any of the NYSE, the American Stock Exchange, the NASDAQ Global Market or the NASDAQ Global Select Market. Our receipt of a NYSE continued listing standards notification ... did not trigger a fundamental change. If a fundamental change occurs under the convertible notes, the holders of the notes can require us to repurchase the notes in full for cash. We do not have adequate cash to repurchase the notes. In addition, the occurrence of a fundamental change under the convertible notes that permits the holders of the convertible notes to require a repurchase for cash is an event of default under our credit facility. Accordingly, our inability to maintain the continued listing of our common stock on the NYSE or another national exchange would have a material adverse effect on our liquidity and financial condition and would likely require us to file for bankruptcy protection." A copy of the Form 10-Q is available for free at: http://is.gd/Wahxou A copy of the press release is available for free at: http://is.gd/Eb7JsC About USEC Inc. Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) -- http://www.usec.com/-- supplies enriched uranium fuel for commercial nuclear power plants. The Company reported a net loss of $540.70 million in 2011, compared with net income of $7.50 million in 2010. * * * USEC Inc. carries 'Caa1' corporate and probability of default ratings, with "developing" outlook, from Moody's, and 'CCC+' long term foreign issuer credit rating and 'CCC-' long term local issuer credit rating, with outlook "developing", from Standard & Poor's. In May 2010, S&P said that its rating and outlook on USEC Inc. are not affected by the announcement that Toshiba Corp. and Babcock & Wilcox Investment Co., an affiliate of The Babcock & Wilcox Co., have signed a definitive investment agreement for $200 million with USEC. VALENCE TECHNOLOGY: Seeks 60-Day Plan-Filing Extension ------------------------------------------------------ Marie Beaudette at Dow Jones' DBR Small Cap reports that Valence Technology Inc. is seeking a 60-day extension to file a plan to exit Chapter 11 protection as it works to line up bankruptcy-exit financing. About Valence Technology Valence Technology, Inc., filed a Chapter 11 petition (Bankr. W.D. Tex. Case No. 12-11580) on July 12, 2012, in its home-town in Austin. Founded in 1989, Valence develops lithium iron magnesium phosphate rechargeable batteries. Its products are used in hybrid and electric vehicles, as well as hybrid boats and Segway personal transporters. The Debtor disclosed debt of $82.6 million and assets of $31.5 million as of March 31, 2012. Chairman Carl E. Berg and related entities own 44.4% of the shares. ClearBridge Advisors, LLC owns 5.5%. Valence expects to complete its restructuring during 2012. Judge Craig A. Gargotta presides over the case. The Company is being advised by Streusand, Landon & Ozburn, LLP with respect to bankruptcy matters. The petition was signed by Robert Kanode, CEO. On Aug. 8, 2012, the United States Trustee for Region 7 appointed 5 creditors to serve on the Official Committee of Unsecured Creditors of the Debtor. VELTEX CORPORATION: Awarded Damages in Utah State Court Matter -------------------------------------------------------------- Veltex Corporation, in a long and successful series of legal victories, today announced efficacious results from the Company's litigation in the State of Utah, re Veltex Corporation v Lee G. Scharf, Case No. 08-0907145 and in the U.S. Bankruptcy Court in Los Angeles, California in re Veltex Corporation vs Lee George Scharf, case 2:09-bk-03558-PC. Utah State Judge, the Honorable Kate A. Toomey, after an evidentiary hearing awarded Veltex monetary damages against former Veltex Receiver Lee George Scharf of South Redondo Beach, California. Mr. Scharf filed bankruptcy in Los Angeles, California and attempted to discharge his debt obligations to the corporation. Veltex filed suit in the United States Bankruptcy Court to block this attempt. U.S. Bankruptcy Judge, the Honorable Peter H. Carroll, handed down Summary Judgment in favor of Veltex Corporation and against Lee G. Scharf. The court awarded $57,167 plus interest beginning from Jan. 4, 2012 and continuing. Provisions providing time for appeals by the defendant have now lapsed in both forums. James Jacob, President and CEO, and major shareholder, stated "Veltex shareholders can be assured that this Board of Directors and management has the same verve and energy as we had from the beginning to recover, protect and maximize the value of any and all assets belonging to the corporation. We continue to explore all opportunities available to us and are working diligently to secure the corporation's rights on all fronts. Veltex continues to work closely with law enforcement officials in perusing other individuals or corporations who assisted in the wrongful transfer of assets away from the company and to secure their return." In late March of this year a United States District Court in California handed down one of the largest awards ever in the Central District of California, more than $102 million, in favor of Veltex Corporation. The judgment continues to carry interest in favor of Veltex. Several defendants in that matter have settled with Veltex under strict confidentiality agreements. That case was filed in the United States District Court, Central District of California (Western Division - Los Angeles) entitled, Veltex Corporation vs. Javeed Azziz Matin et al, case number 2:10- cv-01746-ABC-PJW. The case alleged damages from 22 individual and corporate defendants. The litigation which had been followed closely by legal scholars outlined a massive fraudulent conveyance and transfer count wherein millions of dollars of corporate assets were stolen by the defendants. Veltex will update shareholders with developments as progress warrants on legal matters. Veltex Corporation, incorporated in Utah September 17, 1987, is a public holding corporation which maintains its corporate headquarters in Chicago, Illinois. The company's common shares trade OTC Markets under the symbol VLXC. VERTIS COMMUNICATIONS: Wins Court OK for Auction Procedures ----------------------------------------------------------- Vertis Holdings, Inc., said Nov. 1 it achieved the next key milestones in its Chapter 11 case and sale process by obtaining the Bankruptcy Court's approval of the procedures through which it will evaluate any competing offers for its businesses to ensure it receives the highest and best offer. The Court also issued final orders giving the Company access to $150 million in new financing obtained in conjunction with the filing as well as the authority to maintain its client programs, pay employees' wages and benefits and otherwise operate its business as usual. These motions had been approved on an interim basis on Oct. 12, 2012. "We are very pleased with the continued momentum of our Chapter 11 case, which has given us all of the tools we need to provide our clients with consistently high levels of quality and service - and meet all of our delivery deadlines - as we work to achieve our financial and operational objectives," said Gerald Sokol, Jr., Chief Executive Officer. "We are confident we are on the right path and look forward to efficiently completing these next key milestones to establish continuity, financial stability and continued business investment for our clients and employees." Vertis previously announced on Oct. 10, 2012, that it had signed an agreement with Quad/Graphics through which Quad/Graphics will acquire substantially all of the assets comprising Vertis' businesses for $258.5 million, which includes the payment of approximately $88.5 million for current assets that are in excess of normalized working capital requirements. Vertis simultaneously filed voluntary petitions for Chapter 11 relief to complete the sale as efficiently as possible while maintaining continuity for its clients and employees. As part of the sale through the Chapter 11 case, Vertis and its advisors will evaluate any competing bids that may be submitted in order to ensure it receives the highest and best offer. The procedures approved today by the Bankruptcy Court require any competing bidders to submit their offers in accordance with the approved procedures by Nov. 23, 2012, in order to be considered. Vertis has the support of its lenders with respect to the sale to Quad/Graphics and currently anticipates the transaction will be approved by the Bankruptcy Court during the fourth quarter of 2012 and close in the first quarter of 2013, pending the receipt of customary regulatory approvals. Vertis and Quad/Graphics will continue to operate separately and independently until regulatory approval is received and the sale closes. Objections to Asset Sale Lance Duroni at Bankruptcy Law360 reports that Vertis Holdings Inc. on Wednesday fired back at unsecured creditors who are challenging the company's bankruptcy financing and plan to auction its assets, claiming their objections are merely "hold-up" tactics to secure a cut from the sale. Bankruptcy Law360 relates that in a reply brief filed in Delaware bankruptcy court, Vertis said the objections from its official committee of unsecured creditors could derail the carefully negotiated auction process, for which Quad/Graphics Marketing LLC has submitted a $258 million stalking horse bid. About Vertis Vertis Holdings Inc. -- http://www.thefuturevertis.com/-- provides advertising services in a variety of print media, including newspaper inserts such as magazines and supplements. Vertis and its affiliates (Bankr. D. Del. Lead Case No. 12-12821), returned to Chapter 11 bankruptcy on Oct. 10, 2012, this time to sell the business to Quad/Graphics, Inc., for $258.5 million, subject to higher and better offers in an auction. As of Aug. 31, 2012, the Debtors' unaudited consolidated financial statements reflected assets of approximately $837.8 million and liabilities of approximately $814.0 million. Bankruptcy Judge Christopher Sontchi presides over the 2012 case. Vertis is advised by Perella Weinberg Partners, Alvarez & Marsal, and Cadwalader, Wickersham & Taft LLP. Quad/Graphics is advised by Blackstone Advisory Partners, Arnold & Porter LLP and Foley & Lardner LLP, special counsel for antitrust advice. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Quad/Graphics is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts/circulars, direct mail, books, directories, and commercial and specialty products, including in-store signage. Headquartered in Sussex, Wis. (just west of Milwaukee), the Company has approximately 22,000 full-time equivalent employees working from more than 50 print-production facilities as well as other support locations throughout North America, Latin America and Europe. Vertis first filed for bankruptcy (Bankr. D. Del. Case No. 08-11460) on July 15, 2008, to complete a merger with American Color Graphics. ACG also commenced separate bankruptcy proceedings. In August 2008, Vertis emerged from bankruptcy, completing the merger. Vertis against filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 10-16170) on Nov. 17, 2010. The Debtor estimated its assets and debts of more than $1 billion. Affiliates also filed separate Chapter 11 petitions -- American Color Graphics, Inc. (Bankr. S.D.N.Y. Case No. 10-16169), Vertis Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10-16170), Vertis, Inc. (Bankr. S.D.N.Y. Case No. 10-16171), ACG Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10-16172), Webcraft, LLC (Bankr. S.D.N.Y. Case No. 10-16173), and Webcraft Chemicals, LLC (Bankr. S.D.N.Y. Case No. 10-16174). The bankruptcy court approved the prepackaged Chapter 11 plan on Dec. 16, 2010, and Vertis consummated the plan on Dec. 21. The plan reduced Vertis' debt by more than $700 million or 60%. GE Capital Corporation, which serves as DIP Agent and Prepetition Agent, is represented in the 2012 case by lawyers at Winston & Strawn LLP. Morgan Stanely Senior Funding Inc., the agent under the prepetition term loan, and as term loan collateral agent, is represented by lawyers at White & Case LLP, and Milbank Tweed Hadley & McCloy LLP. WARNACO GROUP: Moody's Reviews 'Ba1' CFR/PDR for Downgrade ---------------------------------------------------------- Moody's Investors Service today placed all ratings of Warnaco Group, Inc. on review for downgrade. LGD assessments are subject to change. The following ratings were placed on review for downgrade: Warnaco Group Inc. Corporate Family Rating at Ba1 Probability of Default Rating at Ba1 Warnaco Inc. $196 million term loan due 2018 at Ba1 (LGD 3, 46%) Ratings Rationale The review for downgrade reflects the execution of a definitive agreement for Warnaco to be acquired by lower-rated PVH Corporation (Ba2/Review for Downgrade). The cash-and-stock offer valued Warnaco at approximately $2.9 billion. The transaction is expected to close in early 2013. Moody's notes that the company's rated term loan does contain a change-of-control provision thus Moody's expects this loan will be refinanced in full at the time of closing of the acquisition. Moody's review will focus on the closing of the proposed transaction and, if not closed, the company's ongoing financial policies. The principal methodology used in rating Warnaco Group Inc. and Warnaco Inc was the Global Apparel Industry Methodology published in May 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. The Warnaco Group, Inc., headquartered in New York, New York designs, sources, markets, licenses and distributes a broad line of intimate apparel, sportswear and swimwear worldwide under a variety of brands such as Calvin Klein, Speedo, Chaps, Warner's and Olga. WESTINGHOUSE SOLAR: Had $2.2-Million Net Loss in Third Quarter -------------------------------------------------------------- Westinghouse Solar, Inc., reported a net loss of $2.2 million on $838,446 of net revenue for the three months ended Sept. 30, 2012, compared with a net loss of $744,913 on $3.4 million of net revenue for the comparable period last year. For the nine months ended Sept. 30, 2012, the Company had a net loss of $7.3 million on $4.5 million of net revenue, compared with a net loss of $3.4 million on $8.1 million of net revenue for the same period in 2011. The Company's balance sheet at Sept. 30, 2012, showed $4.4 million in total assets, $5.6 million in total liabilities, and a stockholders' deficit of $1.2 million. A copy of the Form 10-Q is available at http://is.gd/kywsy7 Campbell, Calif.-based Westinghouse Solar, Inc., is a designer and manufacturer of solar power systems and solar panels with integrated microinverters. The Company designs, markets and sells these solar power systems to solar installers, trade workers and do-it-yourself customers in the United States and Canada through distribution partnerships, the Company's dealer network and retail outlets. * * * 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. WESTMORELAND COAL: S&P Raises CCR to 'B-' on Improved Liquidity --------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Englewood, Co.-based Westmoreland Coal Co (WLB). to 'B-' from 'CCC+'. The rating outlook is stable. "At the same time, we raised the issue-level rating on WLB's $275 million senior secured notes due 2018 to 'B-' (the same as the corporate credit rating) from 'CCC+'. The recovery rating remains a '4', reflecting our expectation for average (30%-50%) recovery for lenders under our default scenario," S&P said. Rationale "The upgrade reflects our view that WLB is less vulnerable to default after successfully negotiating less restrictive covenant requirements for an unrated $110 million term loan due 2018. Our assessment of WLB's business risk profile as 'vulnerable' and financial risk profile as 'highly leveraged' are unchanged. We are revising our liquidity score to 'adequate' based on the covenant relief and additional liquidity provided under the company's new $20 million assetbased loan (ABL) facility from 'less than adequate.' Our outlook for the coal industry remains negative because demand for domestic coal is still depressed due to natural gas substitution and continued high inventories at utilities following last year's unusually warm winter," S&P said. "Our base-case scenario anticipates that WLB will produce around 22 million tons of coal in 2012 and generate EBITDA (including adjustments for pension and asset retirement expenses) of about $135 million. This EBITDA figure is higher than our earlier projections due to better-thanexpected performance from the company's recently acquired Kemmerer mine, which boasts higher margins than its other mines. At year-end, we expect the company's total debt to approximate $800 million, including $440 million in adjustments for pensions, asset retirement obligations, and operating leases. We expect leverage at year end to be around 5.9x, with funds from operations (FFO)-to-debt of about 8%. In 2013, we expect EBITDA will grow modestly to about $145 million, and that debt reductions in the form of required amortization and excess cash flow payments will reduce total debt by about $30 million. These factors lead us to anticipate further improvements in credit metrics by the end of 2013, with leverage around 5.3x and FFOto-debt of about 10%," S&P said. "WLB operates six coal mines in Montana, Texas, North Dakota, and Wyoming, with 80% of its coal reserves concentrated in the Powder River Basin (PRB). The company has about 486 million tons of proven or probable coal reserves, a significant increase over the past several years, and it estimates that its proven and probable reserves will last 10 to 40 years. We believe that WLB, which has about 80% of capacity in the northern PRB, is a high-cost coal producer," S&P said. "Despite the company's strategy of operating mines situated at or near its electric utility customers, thus reducing transportation costs, we estimate that it operates at cash costs well above $10 per ton--significantly higher than those of its larger competitors in the region. The company also has significant customer concentration. In 2012, we expect it will generate approximately 65% of total revenues from coal sales to five power plants, leading to the risk that any mine disruptions or unexpected customer outages could hurt profitability. However, nearly all of WLB's production is sold under long-term contracts and provides for sales to customers for periods of three to nine years. In our view, these contracts somewhat limit customers' ability to switch suppliers before their contracts expire and provides some predictability to the company's revenue stream," S&P said. "WLB also operates two coal-fired power-generating units with a total capacity of 230 megawatts in North Carolina. The company conducts its power operations through its subsidiaries (collectively, ROVA). It purchases coal for ROVA under long-term contracts from suppliers in Central Appalachia. The ROVA facilities supply electricity to Dominion Virginia Power under power purchase agreements extending through 2019 and 2020. However, ROVA's coal supply agreements extend through 2014 and 2015 at prices substantially below current market rates. Dominion is not obligated under the fixed-price purchase power agreement to bear potentially significantly higher fuel costs. As a result, WLB's ROVA facilities could incur substantial operating losses starting in 2014. Although outside of the rating time horizon, we have assumed a significant decline in revenue from the ROVA facilities in 2015, no further revenue contributions in 2016, and a $50 million charge in 2016 to account for any associated losses," S&P said. Liquidity S&P regards WLB's liquidity as adequate, based on these assumptions: * Liquidity sources, which primarily consist of FFO generation and availability under the ABL facilities, will exceed uses by at least 1.2x over the next 12-18 months; * Liquidity sources will continue to exceed uses, even if EBITDA were to decline by 15%; and * Compliance with assumed financial maintenance covenants would likely survive a 15% drop in EBITDA. "As of Sept. 30, 2012, WLB had total liquidity of $97 million, consisting of $54 million in cash and $43 million in total availability under its $20 million ABL at WLB due 2017 and its $25 million ABL at its subsidiary Westmoreland Mining LLC (WML) due 2013. The company recently amended covenant measures under its WML subsidiary $110 million term loan due 2018 (unrated). WML's required leverage ratio will now step down to 1.5x from the current 2.25x in quarterly increments over the course of 2013, a more gradual change than the previous requirement to step down to 1.5x as of year-end 2012. We expect that WLB will be able to maintain at least a 15% EBITDA cushion under the new covenant restrictions," S&P said. "We anticipate that WLB will generate cash flow from operations of around $59 million in 2012, which will cover its expected capital expenditures of $26 million. We project the company will end the year with about $44 million in cash, some of which will be used to reduce debt under the company's required 75% excess cash flow sweep. In 2013, we expect the company to produce free operating cash flow in the range of $50 million to $55 million, after capital spending of about $20 million," S&P said. "WLB's debt maturities over the next several years are manageable. Its notes and term loan debt are due in 2018. The company has not paid dividends on its common stock for some time, and we don't anticipate it will pay any common stock dividends in the foreseeable future," S&P said. Recovery Analysis "We rate WLB's $275 million term loan 'B-' (same as the corporate credit rating) with a recovery rating of '4', indicating our expectation of average (30%-50%) recovery for bondholders in the event of a payment default under our default scenario. Standard & Poor's does not rate WML's term loan," S&P said. Outlook "The stable rating outlook reflects our expectation that, despite headwinds in the coal industry, WLB will maintain a minimum 15% EBITDA covenant cushion over the next 12 to 18 months while continuing to improve its credit metrics," S&P said. "A positive rating action is unlikely given the company's highly leveraged financial profile (we expect debt-to-EBITDA of around 6x in 2012) and vulnerable business profile. We could raise the ratings if we expect the company to maintain leverage metrics below 5x and FFO-to-debt above 12%. This could occur if the company increases its mine diversity and production levels without adding to its existing debt load," S&P said. "We would consider a negative rating action if, as a result of deterioration in operating performance during the next several quarters, WLB's credit measures and liquidity position deteriorated. This could include the financial covenant cushion falling below our 15% EBITDA benchmark. This could occur if the economic recovery takes longer than we expect, if the company incurs greater-than-expected costs in association with its ROVA contracts, or if coalpowered electricity consumption falls, resulting in a decline in total coal volumes sold," S&P said. Ratings List Ratings Raised; Outlook Stable To From Westmoreland Coal Co. Corporate Credit Rating B-/Stable/-- CCC+/Positive/-- Senior Unsecured B- C WINN PROFESSIONAL: Case Summary & 12 Unsecured Creditors -------------------------------------------------------- Debtor: Winn Professional Engineers and Constructors, LLC P.O. Box 2727 Longview, TX 75606 Bankruptcy Case No.: 12-60882 Chapter 11 Petition Date: October 25, 2012 Court: U.S. Bankruptcy Court Eastern District of Texas (Tyler) Debtor's Counsel: Glen E. Patrick, Esq. MCNALLY & PATRICK, LLP 100 E. Ferguson Street, Suite 400 Tyler, TX 75702 Tel: (903) 597-6301 Fax: (903) 597-6302 E-mail: gpoffice@suddenlinkmail.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 12 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/txeb12-60882.pdf The petition was signed by Walter T. Winn, Jr., president. XEBEX CORPORATION: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Xebex Corporation 1938 Marydale Dallas, TX 75208 Bankruptcy Case No.: 12-36773 Chapter 11 Petition Date: October 26, 2012 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Harlin DeWayne Hale Debtor's Counsel: Eric A. Liepins, Esq. ERIC A. LIEPINS, P.C. 12770 Coit Rd., Suite 1100 Dallas, TX 75251 Tel: (972) 991-5591 E-mail: eric@ealpc.com Estimated Assets: $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 together with the petition is available for free at http://bankrupt.com/misc/txnb12-36773.pdf The petition was signed by Scott N. Weinert, president. * 2 Faegre Baker Lawyers Appointed to Bankruptcy Bench ------------------------------------------------------ Zach Winnick at Bankruptcy Law360 reports that Faegre Baker Daniels partner James M. Carr and of counsel Thomas M. Lynch have been appointed by Seventh Circuit Chief Judge Frank Easterbrook to serve as federal bankruptcy judges, the firm announced Wednesday, saying both attorneys will begin their 14-year terms in January 2013. Bankruptcy Law360 relates that the announcements highlighted the strength of the firm's bankruptcy and business law practices, as the two attorneys prepare to fill out upcoming vacancies on the federal bankruptcy bench in Illinois and Indiana. * Canada August Bankruptcies Rise 4.5%, Superintendent Reports -------------------------------------------------------------- Michael Bathon at Bloomberg News reports that bankruptcies in Canada rose 4.5% in August from a month earlier, the Office of the Superintendent of Bankruptcy said. Bankruptcies fell 9.3% in August from a year earlier, the Ottawa-based agency said in a release posted on its Web site. * Global Regulators to Cut List of Too-Big-To-Fail Banks to 28 -------------------------------------------------------------- Brian Parkin and Ben Moshinsky at Bloomberg News report that according to a German government official, global regulators will publish a list of 28 too-big-to-fail banks that must hold additional capital. That is one less than the 29 identified last year. According to the report, the list, which was set to be published Nov. 1 in advance of a Nov. 4 meeting in Mexico of finance officials from the world's biggest economies, the German official told reporters in Berlin on condition of anonymity because the G- 20 negotiations are private. The Financial Stability Board last year published a list of 29 banks that should hold more capital than required by other international agreements because of their importance to the global financial system. Citigroup Inc., JPMorgan Chase & Co., BNP Paribas SA, Royal Bank of Scotland Group Plc, and HSBC Holdings Plc were provisionally earmarked to face the top level of surcharges, set at 2.5% of risk-weighted assets. "I think there is general agreement around the world that increasing capital requirements has a negative effect on the economy and delays the recovery," Simon Gleeson, financial regulation partner at Clifford Chance LLP, said in a telephone interview Nov. 1. "It's a question of calibration." The most likely bank to drop off the updated list is Dexia SA, the Franco-Belgian lender that is being broken up after losing access to unsecured funding, Karel Lannoo, chief executive officer of the Centre for European Policy Studies in Brussels, said last month. G-20 Nations The report relates the FSB said last year that regulators would update the list on an annual basis, with each revision to be published in November. The FSB brings together central bankers, regulators and government officials from G-20 nations to coordinate financial rulemaking. The report notes that the capital surcharges for systemic banks, ranging from 1% to 2.5%, come on top of agreements by the Basel Committee on Banking Supervision to more than triple the core reserves that lenders have to hold against possible losses. These so-called Basel III rules are intended to apply to all internationally active banks, and are scheduled to fully apply from 2019. The Bloomberg report discloses that large international lenders would have faced a 374.1 billion euro shortfall ($484.4 billion) in the capital needed to meet Basel III had it been in force at the end of 2011, according to data published by the Basel group in September. The figure factors in the surcharges for globally systemic banks. * Jones Day, K&L Gates Attorneys Join Barnes & Thornburg -------------------------------------------------------- Barnes & Thornburg LLP announced on Oct. 30, 2012, that Lindsey D. G. Dates and Daniel J. Lawler have joined the firm's Chicago office as partners in the Litigation and Healthcare Departments, respectively. Previously, Dates worked in the Chicago office of Jones Day and Lawler worked in the Chicago office of K&L Gates LLP. "Adding these highly regarded partners reflects and advances our strategy to deepen our resources across a number of practice areas in Chicago," said Mark Rust, managing partner of Barnes & Thornburg's Chicago office. "We are pleased to have Lindsey and Dan join our growing Chicago office." Dates is a trial lawyer who represents global clients in high- stakes litigation matters and focuses on commercial contract and business tort litigation. His broad array of complex litigation experience includes antitrust, intellectual property, product liability, white collar criminal, commercial real estate, labor, bankruptcy, and health care litigation matters. Lawler has extensive experience representing healthcare providers in regulatory proceedings before the Illinois Department of Public Health, the Department of Healthcare and Family Services (f/k/a Department of Public Aid), and the Illinois Health Facilities and Services Review Board (IHFSRB). Most notably, Lawler represented Centegra Health System in front of the IHFSRB on its Certificate of Need (CON) application. The new Centegra Hospital-Huntley will be one of only two new, non-replacement acute care hospitals in the Chicago area in the last 30 years. In addition, Lawler has litigated many cases on behalf of a variety of providers in their disputes with managed care payors, including the successful mediation of claims arising out of the insolvency of independent practice associations (IPAs). He also obtained for a number of providers the largest monetary judgment to date against the Illinois HMO Guaranty Association following the insolvency of an HMO. "We look forward to Lindsey bringing a skill-set and forceful intellect to Barnes & Thornburg. He will bolster the Litigation Department's depth and ability to litigate a wide range of complex litigation matters," said Bill McErlean, chair of Barnes & Thornburg's Litigation Department. "Lindsey is a talented lawyer. We are glad to have him on our team and are confident that he will develop into one of the superb trial lawyers of his generation." "Dan will be a true asset to the Healthcare Department as he strengthens the firm's ability to handle healthcare litigation of different kinds," added Rust, who also chairs the firm's national Healthcare Department. "His experience working with Certificate of Need issues will also be of great value to our clients." Dates and Lawler are the latest lateral attorneys to join Barnes & Thornburg as the firm continues the strategic expansion across the country of its leading practice groups. Their arrivals come on the heels of corporate attorney Bonita Hatchett joining the Chicago office in August and environmental attorney Michael Elam joining the Chicago office in July. * BOND PRICING: For Week From Oct. 29 to Nov. 2, 2012 ----------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- --------- AMBAC INC 6.150 2/7/2087 3.500 AES EASTERN ENER 9.000 1/2/2017 2.000 AES EASTERN ENER 9.670 1/2/2029 4.750 AGY HOLDING COR 11.000 11/15/2014 48.060 AHERN RENTALS 9.250 8/15/2013 66.000 ALION SCIENCE 10.250 2/1/2015 53.900 AM AIRLN PT TRST 10.180 1/2/2013 95.375 ARK OF SAFETY 8.000 4/15/2029 6.000 ATP OIL & GAS 11.875 5/1/2015 15.000 ATP OIL & GAS 11.875 5/1/2015 15.000 ATP OIL & GAS 11.875 5/1/2015 15.250 BUFFALO THUNDER 9.375 12/15/2014 35.000 CALIF BAPTIST 7.100 4/1/2014 4.500 CAPMARK FINL GRP 6.300 5/10/2017 2.000 CENTRAL EUROPEAN 3.000 3/15/2013 87.875 CHAMPION ENTERPR 2.750 11/1/2037 1.000 CVI-CALL11/12 9.000 4/1/2015 104.200 CVI-CALL11/12 9.000 4/1/2015 104.200 DIRECTBUY HLDG 12.000 2/1/2017 20.500 DIRECTBUY HLDG 12.000 2/1/2017 20.500 DOWNEY FINANCIAL 6.500 7/1/2014 58.125 DYN-RSTN/DNKM PT 7.670 11/8/2016 62.500 NGC CORP CAP TR 8.316 6/1/2027 13.000 EDISON MISSION 7.500 6/15/2013 48.500 EASTMAN KODAK CO 7.250 11/15/2013 10.375 EASTMAN KODAK CO 7.000 4/1/2017 12.250 EASTMAN KODAK CO 9.950 7/1/2018 10.750 EASTMAN KODAK CO 9.200 6/1/2021 10.000 ENERGY CONVERS 3.000 6/15/2013 40.000 FRIENDSHIP WEST 8.000 6/15/2024 9.100 FIBERTOWER CORP 9.000 1/1/2016 30.000 GLB AVTN HLDG IN 14.000 8/15/2013 35.363 GMX RESOURCES 5.000 2/1/2013 89.750 GMX RESOURCES 4.500 5/1/2015 49.000 GEOKINETICS HLDG 9.750 12/15/2014 43.200 GLOBALSTAR INC 5.750 4/1/2028 48.750 HAWKER BEECHCRAF 8.500 4/1/2015 19.500 HAWKER BEECHCRAF 8.875 4/1/2015 19.500 HAWKER BEECHCRAF 9.750 4/1/2017 0.250 HUTCHINSON TECH 8.500 1/15/2026 55.425 IBI GROUP INC 5.750 6/30/2017 10.010 KV PHARM 12.000 3/15/2015 50.375 LAMR-CALL11/12 6.625 8/15/2015 101.000 LEAP-CALL11/12 10.000 7/15/2015 105.000 LEHMAN BROS HLDG 1.000 10/17/2013 19.375 LEHMAN BROS HLDG 0.250 12/12/2013 19.375 LEHMAN BROS HLDG 0.250 1/26/2014 19.375 LEHMAN BROS HLDG 1.250 2/6/2014 19.375 LEHMAN BROS HLDG 1.000 3/29/2014 19.375 LEHMAN BROS HLDG 1.000 8/17/2014 19.375 LEHMAN BROS HLDG 1.000 8/17/2014 19.375 LEHMAN BROS INC 7.500 8/1/2026 7.000 LIFEPOINT CMNTY 8.400 10/20/2036 4.000 LIFECARE HOLDING 9.250 8/15/2013 36.854 MASHANTUCKET PEQ 8.500 11/15/2015 9.250 MASHANTUCKET PEQ 8.500 11/15/2015 15.750 MASHANTUCKET TRB 5.912 9/1/2021 9.250 METRO BAP CHURCH 8.400 1/12/2029 4.000 MF GLOBAL LTD 9.000 6/20/2038 59.100 MANNKIND CORP 3.750 12/15/2013 67.750 MRC-CALL11/12 9.500 12/15/2016 108.150 NEWPAGE CORP 10.000 5/1/2012 5.500 NEWPAGE CORP 11.375 12/31/2014 47.000 OVERSEAS SHIPHLD 8.750 12/1/2013 36.000 OVERSEAS SHIPHLD 8.125 3/30/2018 28.500 PLATINUM ENERGY 14.250 3/1/2015 40.000 PMI GROUP INC 6.000 9/15/2016 26.700 PMI CAPITAL I 8.309 2/1/2027 1.125 PENSON WORLDWIDE 8.000 6/1/2014 40.744 POWERWAVE TECH 3.875 10/1/2027 12.647 POWERWAVE TECH 3.875 10/1/2027 13.500 RESIDENTIAL CAP 6.500 4/17/2013 26.938 RESIDENTIAL CAP 6.875 6/30/2015 25.500 SCHOOL SPECIALTY 3.750 11/30/2026 58.500 SAVIENT PHARMA 4.750 2/1/2018 27.000 THQ INC 5.000 8/15/2014 56.861 TRAVELPORT LLC 11.875 9/1/2016 39.750 TRAVELPORT LLC 11.875 9/1/2016 42.000 TIMES MIRROR CO 7.250 3/1/2013 36.000 TRIBUNE CO 5.250 8/15/2015 35.050 TERRESTAR NETWOR 6.500 6/15/2014 10.000 TEXAS COMP/TCEH 10.250 11/1/2015 19.750 TEXAS COMP/TCEH 10.250 11/1/2015 14.920 TEXAS COMP/TCEH 10.250 11/1/2015 22.075 TEXAS COMP/TCEH 15.000 4/1/2021 27.000 TEXAS COMP/TCEH 15.000 4/1/2021 34.250 USEC INC 3.000 10/1/2014 42.000 VERSO PAPER 11.375 8/1/2016 49.400 WCI COMMUNITIES 6.625 3/15/2015 0.625 ********* 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, Carmel Paderog, Meriam Fernandez, 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 ***