/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/130820.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, August 20, 2013, Vol. 17, No. 230 Headlines 1250 OCEANSIDE: Hawaiian Family Seeks to Claw Back Sold Property 710 LONG: Wants Lease Decision Period Stretched Until Oct. 31 AGFEED INDUSTRIES: US Trustee Rips Bid to Retain Foley & Lardner AGFEED INDUSTRIES: Creditors' Committee Objects to Cash Use ALL AMERICAN SEMICONDUCTOR: Trade Secret Claim Ruling Appeal Nixed AMBAC FINANCIAL: Reports Profit Out of Bankruptcy Protection AMERICAN AIRLINES: $700-Mil. Reserve for Disputed Claims Okayed AMERICAN AIRLINES: Signs Deal With Ace to Assume Policies AMERICAN AIRLINES: AMR-US Air Assemble Antitrust Guns in DOJ Suit AMERICAN AIRLINES: Bankruptcy Plan Argued Amid DOJ Merger Suit AMERICAN AIRLINES: Teamsters Ends Representational Campaign AMERICAN AIRLINES: Reports July 2013 Traffic AMERICAN WEST: Hid Ties to Claims Agent, U.S. Trustee Says ANCHOR BANCORP: Fudged Financial Reports, SEC Accuses APPLIED MINERALS: James Berylson Held 6.6% Equity Stake at Aug. 1 ASHAND ENTERPRISES: Case Summary & 9 Unsecured Creditors AVID TECHNOLOGY: Gets NASDAQ Listing Non-Compliance Notice BANKUNITED FINANCIAL: 11th Circ. Sends Tax Refund to FDIC BELLE FOODS: Court Clears Co. to Auction 44 Locations BIOFUELS POWER: Delays Form 10-Q for Second Quarter BLUE SKY: Case Summary & 20 Largest Unsecured Creditors BRAFFITS CREEK: Bankruptcy Case Now Assigned to Judge Laurel Davis BRAFFITS CREEK: Taps David J. Winterton as Bankruptcy Counsel BUILDERS GROUP: Battle Brewing Over Use of Shopping Center Cash BUILDERS GROUP: Monge Robertin Approved as Restructuring Advisor C HACKETT: Case Summary & 11 Unsecured Creditors CAMCO FINANCIAL: Files Form 10-Q, Incurs $6.1MM Net Loss in Q2 CAPITOL BANCORP: Court Clears Firm to Sell Stake in Ohio Bank CASCADE AG: Court Authorizes Asset Sale to Pleasant Valley CASCADE AG: Has Until Sept. 30 to Decide on Unexpired Leases CENGAGE LEARNING: Creditors Seek to Probe LBO, Apax Debt Buys CENGAGE LEARNING: Chap. 11 Plan Filed CENGAGE LEARNING: Committee's Hiring Approvals Sought CENTENE CORP: Moody's Affirms 'Ba2' Senior Debt; Outlook Stable COLEMAN CABLE: Performance Strengthens Amidst Copper Price Hike COLOREP INC: Sept. 19 Auction of Substantially All Assets Approved COLOREP INC: Executive Sounding Board to Provide Crisis Management COLOREP INC: Taps Stubbs Alderton as Special Corporate Counsel COLOREP INC: Hiring Stutman Treister as Reorganization Counsel COMMUNITYONE BANCORP: Second Quarter Financial Presentation COMPETITIVE TECHNOLOGIES: Tonaquint Had 6% Equity Stake at Aug. 9 CONNACHER OIL: S&P Lowers Corporate Credit Rating to 'CCC+' CORNERSONE BANCOR: Voluntary Chapter 11 Case Summary DBK INVESTMENTS: Court Approves John Smith as Accountants DESIGNLINE INT'L: Files for Bankruptcy DETROIT, MI: Objections Filed on Chapter 9 Eligibility DETROIT, MI: City, Pension Fund Reps Met Monday DETROIT, MI: Robert Fishman Appointed as Fee Examiner DETROIT, MI: Bond Insurer Protests Casino Revenue Protections DETROIT, MI: Pension Funds to Object to City's Bankruptcy DIGERATI TECHNOLOGIES: Files Motion in Limine in Case Transfer Bid DIGITAL GENERATION: Moody's Lowers CFR & Senior Debt Rating to B2 DYNASIL CORP: Incurs $366,000 Net Loss in June 30 Quarter EASTMAN KODAK: Court Approves Estimation of BNY Mellon Claims EASTMAN KODAK: Bayer Unit Challenges Ch. 11 Plan Over $250MM Claim EASTMAN KODAK: Obtains Court Approval to Assume IP Contracts EASTMAN KODAK: Says Plan Satisfies Confirmation Requirements EASTMAN KODAK: Creditors Support Plan of Reorganization EASTMAN KODAK: Names Nine People for Its Post-Bankruptcy Board ECOTALITY INC: Robbins Geller Files Securities Class Action ELEPHANT TALK: Files Copy of Investor Presentation with SEC ENDICOTT INTERCONNECT: Creditors Seek to Probe 'Insider' Dealings ENDICOTT INTERCONNECT: Creditors Seek Ability to Bid $5-Mil. Debt ENDICOTT INTERCONNECT: Hearing Today on Cash, Sale ENDICOTT INTERCONNECT: Panel Taps Arent Fox as Bankruptcy Counsel ENDICOTT INTERCONNECT: Taps Feather Lane Financial Advisor ENERSYS: Moody's Raises Corp. Family Rating to Ba1; Outlook Stable EXCEL MARITIME: Employs Donlin Recano as Solicitation Agent EXCEL MARITIME: Hires Global Maritime as Financial Advisor EXCEL MARITIME: Taps Miller Buckfire as Financial Advisor EXCEL MARITIME: Files Schedules of Assets & Liabilities EXIDE TECHNOLOGIES: Incentive Plan Approved EXIDE TECHNOLOGIES: Settles Differences w/ EPA Over Planned Sales EXPLO SYSTEMS: La. Explosives Deactivator Files for Bankruptcy FIBERTOWER CORP: Directors Could Face Suit Over FCC License Loss FLAMINGO PRODUCTS: Case Summary & 20 Largest Unsecured Creditors FULLCIRCLE REGISTRY: Incurs $179,000 Net Loss in Second Quarter FURNITURE BRANDS: Paul Hastings, Miller Buckfire on Board GATEHOUSE MEDIA: Looming Default Cues Moody's to Cut PDR to Ca-PD GROWTHWORKS CANADIAN: Roseway Waives Security Agreement Default HAYDEL PROPERTIES: Parties Want Plan Confirmation Denied HERON LAKE: Project Viking Held 63.3% of A & B Units at July 31 HIGHWAY TECHNOLOGIES: Gets Nod on Settlement, $3MM DIP Loans HOWREY LLP: Strikes $41MM Deal with BakerHostetler HULDRA SILVER: Obtains First Tranche of DIP Financing Loan IDERA PHARMACEUTICALS: Regains Compliance with $1 Bid Price Rule INDYMAC BANCORP: FDIC Asks 9th Circ. to Open Up $80MM D&O Policies INTELLICELL BIOSCIENCES: Obtains TRO on Assets Sale INTERNATIONAL WIRE: Moody's Keeps Ratings on Cooper Price Hike J REALTY: Case Summary & 8 Unsecured Creditors JEFFERSON COUNTY, AL: Bond Rating Agency Cites Risks in Exit Plan JERRY'S NUGGET: Plan Exclusivity Extended Through Sept. 30 JVMW PROPERTIES: BPPR to Exercise Foreclosure on Assets K-V PHARMACEUTICAL: Exclusive Periods Extension Sought LEHMAN BROTHERS: JPMorgan in $23 Million Settlement with Clients LEHMAN BROTHERS: Moves to End Bankruptcy Fight with Citigroup LIBBEY INC: S&P Raises Rating on Sr. Sec. Notes Due 2020 to 'BB-' LIGHTSQUARED INC: Lawyers for Falcone, Ergen Spar Over Suit LONE PINE: LPR Canada Fails to Pay Senior Notes Interest LONE PINE: S&P Lowers CCR to 'D' After Missed Interest Payment MARTIN MIDSTREAM: Moody's Says Alinda Purchase is Credit Positive MARK DAHRLING: Couple Seeks to Dodge Ponzi Clawback Suit MAXCOM TELECOMUNICACIONES: Confirmation Hearing Set for Sept. 10 MERGE HEALTHCARE: S&P Revises Outlook to Neg. & Affirms 'B' CCR METRO-GOLDWYN-MAYER: S&P Raises CCR to 'B+'; Outlook Stable METROLINA STEEL: Case Summary & 20 Largest Unsecured Creditors MFM DELAWARE: Has Interim Authority to Obtain Loans from T. Kraatz MINT LEASING: Delays Second Quarter Form 10-Q for Review MONTREAL MAINE: Canada Suspends Operating License MPG OFFICE: Reclassifies Results of Bank Tower & Westlawn Garage MUNICIPAL MORTGAGE: Incurs $5.5-Mil. Net Loss in Second Quarter NATURAL PORK: Sept. 20 Hearing on Sale of Brayton Residence OGX PETROLEO: Shareholders Plan Legal Action Against Eike Batista OMNICOMM SYSTEMS: Incurs $1.6 Million Net Loss in Second Quarter ONCURE HOLDINGS: Files Schedules of Assets and Liabilities ORAGENICS INC: Incurs $2.1 Million Net Loss in Second Quarter ORCKIT COMMUNICATIONS: Networks Terminates SIA ORMET CORP: Facing Liquidity Crisis, Seeks $10MM in Add'l Loans ORMET CORP: Seeks Emergency Approval for Extra $10-Mil. Loan PATIENT SAFETY: Incurs $568,600 Net Loss in Second Quarter PATRIOT COAL: Statements on New CBA Agreements Filed PATRIOT COAL: UMWA Members Ratify Settlement PENN CENTRAL: 3rd Circ. Backs $14.7MM Award to Former Employees PENSON WORLDWIDE: 5th Amended Liquidation Plan Effective PEREGRINE FINANCIAL: US Bank Is Complicit in Fraud, CFTC Says PHILADELPHIA, PA: Borrows So Its Schools Open on Time PHYSICAL PROPERTY: Incurs HK$43,000 Net Loss in Second Quarter PICCADILLY RESTAURANT: Hearing Today on Exclusivity Extension Bid PICCADILLY RESTAURANTS: Sept. 17 Hearing to Approve Plan Outline PICADILLY RESTAURANT: Hearing on Protiviti Hiring Continued Today PJ HANLEY'S: Bankruptcy Baron to "Finally Pay the Piper" QBEX ELECTRONICS: Creditors Panel Balks at Exclusivity Extension RESIDENTIAL CAPITAL: Freddie Mac Challenges $600MM FGIC Settlement RESIDENTIAL CAPITAL: PNC Challenges $300MM Mortgage Settlement REVLON CONSUMER: Moody's Confirms Ba3 CFR and Negative Outlook REVLON CONSUMER: S&P Affirms 'B+' Corp. Credit Rating REVOLUTION DAIRY: Aug. 22 Hearing on Adequacy of Plan Outline REVOLUTION DAIRY: Berkeley Research Okayed as Panel Fin'l Advisor REVOLUTION DAIRY: Court OKs Modification to TCF Lease Agreement REVOLUTION DAIRY: Dr. Corbett Okayed as Management Advisor REVOLUTION DAIRY: Farm Credit's Stay Relief Bid Settled RIO VISTA: Voluntary Chapter 11 Case Summary ROTECH HEALTHCARE: Baker & McKenzie, Bifferato Released From Ch.11 ROTECH HEALTHCARE: Taps Cole Schotz as Counsel for BOD Committee ROTECH HEALTHCARE: 2 Firms Seek to Withdraw as Equity Panel Atty. ROTECH HEALTHCARE: Seeks Pretrial Decision to Thwart Shareholders RURAL/METRO CORP: DRC Retained as Noticing Agent in Ch. 11 Cases SCIENTIFIC LEARNING: Incurs $54,000 Net Loss in 2nd Quarter SCOOTER STORE: Seeking Continued Use of Cash Collateral SEMGROUP LP: Former Investors Fight Ex-CEO's Fast-Track Appeal SOLIMAR ENERGY: Debenture Holders Agree to Waive Event of Default SPORTSMAN'S WAREHOUSE: S&P Affirms 'B' CCR; Outlook Stable SPORTSMAN'S WAREHOUSE: Moody's Assigns B2 Rating to New Term Loan SPROUTS FARMERS: Debt Reduction Spurs Moody's to Lift CFR to B1 STACY'S INC: Accuses Lender of Trying to Derail Sale SYNAGRO TECHNOLOGIES: Lowballed $4MM Claim, Conn. City Says T-L BRYWOOD: RCG-KC Brywood Balks at Plan Outline Approval TALON INTERNATIONAL: Posts $1.3 Million Net Income in Q2 TERESA GIUDICE: 'Real Housewives Of NJ' Stars Plead Not Guilty TIMIOS NATIONAL: Posts $329,000 Net Income in Second Quarter TNP STRATEGIC: Proposal Would Have Avoided Defaults, Thompson Says TRINITY COAL: Files Bankruptcy-Exit Plan Backed by Essar UNIFIED 2020: Can Employ Southland as Property Tax Consultant UNIFIED 2020: Taps J. Slim for Litigation Matters Pending in Court UNIFIED 2020: Schiller Exline Asks Court to Remove Edward Roush UNIFIED 2020: OBS Asks Court to Appoint Chapter 11 Trustee UNITEK GLOBAL: Incurs $77.7 Million Net Loss in 2012 VALLEYCREST COS: S&P Raises Corp. Credit Rating to 'B' VILLAGE AT NIPOMO: Proposed Final Cash Collateral Order Opposed WATERSTONE AT PANAMA: Seeks Extension to File Plan Until Dec. 5 WEB.COM GROUP: S&P Revises Outlook to Pos. & Affirms 'B' CCR WEST AIRPORT: Gets Final OK to Hire James Schwitalla as Counsel WEST AIRPORT: Obtains Final OK for Luis Perez as Accountant WESTERN CAPITAL: Seeks Extension of Plan Filing Until Dec. 6 WESTERN CAPITAL: Limits Hatch Ray's Services to Three Matters WESTERN CAPITAL: Court OKs K. Madden as "JRG Dakota" Case Counsel WESTERN CAPITAL: Taps K. Strauss as Counsel in Foreclosure Case WOUND MANAGEMENT: Incurs $32,000 Net Loss in Second Quarter * 6th Circ. Says Rejection of Ch. 11 Plan Isn't Final Order * Fed Given Week by Judge to Respond on New Swipe-Fee Rules * U.S. Judges Urge Congress to Give Courts More Money * NYC Gets Nod From State to Address Hospital Crisis * Hill Wallack Accused of Forcing Client Into Bad Settlement * Ex-Taylor English Atty Admits to Ripping Off Clients * JPMorgan Said to Expect Multiple Fines for Whale Loss * Obama to Meet with Regulators over Wall Street Reforms * SEC Approves $8-Billion Sale of NYSE Parent to ICE * Falcone and Harbinger Agree to Settlement With SEC * Justice Dept. Wants Ruling Ordering Bernanke to Testify Tossed * Fed Says It Will Collect $440 Million in Fees from Banks * Reno-Sparks Metro Foreclosure Activity Plunges 33% in July 2013 * Roetzel's Bruce Schrader Named Bankruptcy Lawyer of the Year * U.S. Foreclosure Activity Up 2% in July, RealtyTrac Data Show * Manatt Bankruptcy Lawyer Ivan Kallick in 2014 Best Lawyers List * Cohen & Grigsby Bankruptcy Lawyers Named to Best Lawyers List * Dorsey & Whitney Bankruptcy Lawyers Named to Best Lawyers List * Mintz, Levin's Jeffry Davis Named Bankruptcy Lawyer of the Year * Greenberg Traurig Bankruptcy Lawyers Named to Best Lawyers List * Brickler & Eckler Bankruptcy Lawyers Named to Best Lawyers List * Mintz Levin Bankruptcy Lawyers Named to Best Lawyers List * Two Federal Bankruptcy Judges Appointed for N.C. District * Fitch: US Airways-AMR Merger Block May Be Positive for Airports * Fitch Says Audit Report Proposal Likely Helpful for Investors * Moody's Affirms B1 Rating on Oakdale's Sewer Revenue Bonds * Large Companies With Insolvent Balance Sheets ********* 1250 OCEANSIDE: Hawaiian Family Seeks to Claw Back Sold Property ---------------------------------------------------------------- Patrick Fitzgerald, writing for DBR Small Cap, reported that a Hawaiian family wants a bankruptcy judge to allow it to seize back the land it sold to troubled developer 1250 Oceanside Partners as part of a stalled $1 billion Big Island real-estate project. About 1250 Oceanside Partners 1250 Oceanside Partners, Front Nine LLC, and Pacific Star Company LLC, owners of the 1,800-acre Hokuli'a luxury real estate development near Kona on the island of Hawaii, sought Chapter 11 protection (Bankr. D. Hawaii Lead Case No. 13-00353) on March 6, 2013, in Honolulu. The Debtors were formed by developer Lyle Anderson and were part of his development "empire", which included developments in Hawaii, Arizona, New Mexico and Scotland. The secured lender, Bank of Scotland, declared a default and obtained control of the Debtors in January 2008. Development of the property, which has 3.5 miles of waterfront on the Kona coast, stopped after the developers were declared in default under the loan. Oceanside and Front Nine own most of the land within the Hokuli'a project, which is the principal development. Pacific Star owns the land referred to as "Keopuka", near Hokuli'a. The Hokuli'a was to have 730 residential units, an 18-hole golf course, club and other amenities. The Debtors say their assets are worth $68.1 million while they are jointly liable to $625 million of debt to Sun Kona Finance LLC, which acquired the Hawaii loan from Bank of Scotland. Simon Klevansky, Esq., Alika L. Piper, Esq., and Nicole D. Stucki, Esq., at Klevansky Piper, LLP, represent the Debtor in its restructuring effort. They replace the law firm of Gelber, Gelber & Ingersoll as general counsel. A creditors committee has not been appointed. James A. Wagner, Esq., at Wagner Choi & Verbrugge, represents Sun Kona Finance I, LLC and Sun Kona Finance II, LLC, as counsel. 710 LONG: Wants Lease Decision Period Stretched Until Oct. 31 ------------------------------------------------------------- 710 Long Ridge Road Operating Company II, LLC, et al., ask the U.S. Bankruptcy Court for the District of New Jersey to further extend until Oct. 31, 2013, their time to assume or reject their unexpired non-residential real property leases on consent of the landlords. The Court previously extended the Debtors' lease decision period until Sept. 22. The Court will hold a Sept. 12 hearing at 10 a.m. on the request. About 710 Long Ridge Road Operating Company II 710 Long Ridge Road Operating Company II, LLC and four affiliates own sub-acute and long-term nursing care facilities for the elderly in Connecticut. The facilities, which are managed by HealthBridge Management LLC, are Long Ridge of Stamford, Newington Health Care Center, Westport Health Care Center, West River Health Care Center, and Danbury Health Care Center. 710 Long Ridge Road Operating Company II and its affiliates sought Chapter 11 protection (Bankr. D.N.J. Case Nos. 13-13653 to 13- 13657) on Feb. 24, 2013, to modify their collective bargaining agreements with the New England Health Care Employees Union, District 1199, SEIU. The Debtors owe $18.9 million to M&T Bank and $7.99 million on loans from the U.S. Department of Housing and Urban Development Federal Housing Administration. Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, serve as counsel to the Debtors. Logan & Company, Inc. is the claims and notice agent. Alvarez & Marsal Healthcare Industry Group, LLC, is the financial advisor. Porzio, Bromberg & Newman, P.C., represents the Official Committee of Unsecured Creditors. The Committee tapped to retain EisnerAmper LLP as accountant. AGFEED INDUSTRIES: US Trustee Rips Bid to Retain Foley & Lardner ---------------------------------------------------------------- Law360 reported that the U.S. trustee overseeing AgFeed Industries Inc.'s Chapter 11 proceedings opposed the appointment of Foley & Lardner LLP as AgFeed's special counsel, saying a conflict of interest exists because the law firm has a $1.28 million claim against the company. According to the report, in a brief filed in Delaware bankruptcy court, U.S. Trustee Roberta A. DeAngelis asked U.S. Bankruptcy Judge Brendan Shannon to deny AgFeed's application to retain Foley as special counsel to handle corporate matters, litigation and the proposed sale of its assets. About Agfeed Industries AgFeed Industries, formerly known as M2 P2, LLC, is an international agribusiness with operations in the U.S. and China. AgFeed has two business lines: animal nutrition in premix, concentrates and complete feeds and hog production. In the U.S., AgFeed's hog production unit, M2P2, is a market leader in setting new standards for production efficiency and productivity. AgFeed believes the transfer of these processes, procedures and techniques will allow its new Western-style Chinese hog production units to set new standards for production in China. China is the world's largest pork market consuming 50 percent of global production and over 62 percent of total protein consumed in China is pork. Hog production in China currently enjoys income tax free status. AgFeed Industries, Inc., and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. The Debtors' claims and noticing agent is BMC Group, Inc. AGFEED INDUSTRIES: Creditors' Committee Objects to Cash Use ----------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the Chapter 11 cases of AgFeed USA, LLC, et al., states that, in general, it supports the Debtors' request to use cash collateral securing their prepetition indebtedness but complained that certain provisions of the interim order are unduly prejudicial to the rights of unsecured creditors and, therefore, must be stricken or modified in any final order authorizing the Debtors' use of Cash Collateral. Specifically, the Creditors' Committee complains that the granting of replacement liens on potentially valuable unencumbered property, including the assets of certain Debtors in which the liens are avoided, avoidance actions, and their proceeds, is improper and unnecessary. Moreover, the Committee complains that neither the motion nor the budget explicitly set forth the amount of a carve-out for the fees and expenses of its professionals. For the reasons states, the Creditors' Committee asks the U.S. Bankruptcy Court for the District of Delaware to sustain its objection and deny entry of a Final Order absent the modifications raised. The Committee is represented by Sandra G.M. Selzer, Esq., at Greenberg Traurig LLP, in Wilmington, Delaware; Jeffrey D. Prol, Esq., Timothy R. Wheeler, Esq., and Beth L. Williams, Esq., at Lowenstein Sandler LLP, in Roseland, New Jersey; and Bruce S. Nathan, Esq., at Lowenstein Sandler LLP, in New York. About Agfeed Industries AgFeed Industries, formerly known as M2 P2, LLC, is an international agribusiness with operations in the U.S. and China. AgFeed has two business lines: animal nutrition in premix, concentrates and complete feeds and hog production. In the U.S., AgFeed's hog production unit, M2P2, is a market leader in setting new standards for production efficiency and productivity. AgFeed believes the transfer of these processes, procedures and techniques will allow its new Western-style Chinese hog production units to set new standards for production in China. China is the world's largest pork market consuming 50 percent of global production and over 62 percent of total protein consumed in China is pork. Hog production in China currently enjoys income tax free status. AgFeed Industries, Inc., and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. The Debtors' claims and noticing agent is BMC Group, Inc. ALL AMERICAN SEMICONDUCTOR: Trade Secret Claim Ruling Appeal Nixed ------------------------------------------------------------------ Law360 reported that a California appeals court affirmed a lower court's judgment and attorneys' fees award in a trade secret misappropriation suit brought by All American Semiconductor LLC alleging APX Technology Corp. misused assets bought out of bankruptcy, finding that AAS' claims have no merit. According to the report, AAS appealed after a trial court granted summary adjudication in favor of APX on AAS' trade secret misappropriation cause of action in a suit over a patented memory module design, arguing that triable issues of fact precluded the judgment. About All American Semiconductor Based in Miami, Florida, All American Semiconductor Inc. (Pink Sheets: SEMI.PK) -- http://www.allamerican.com/-- distributed electronic components manufactured by other firms. In total, the company offered approximately 40,000 products produced by approximately 60 manufacturers. The company had 36 strategic locations throughout North America and Mexico, as well as operations in China and Western Europe. The Company and its debtor-affiliates filed for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 07-12963) on April 25, 2007. Jason Z. Jones, Esq., Mindy A. Mora, Esq., at Bilzin Sumberg; and Tina M. Talarchyk, Esq., at Squire Sanders, served as counsel to the Debtors. Adrian C. Delancy, Esq., Jerry M. Markowitz, Esq., Rachel Lopate Rubio, Esq., Rilyn A. Carnahan, Esq., Ross R. Hartog, Esq., at Markowitz, Davis, Ringel & Trusty; and Stanley F. Orszula, Esq., at Loeb & Loeb, represented the Official Committee of Unsecured Creditors. As of June 30, 2007, the company posted total assets of $4.07 million and liabilities of $18.3 million. The Bankruptcy Court confirmed on April 8, 2009, the Third Amended Plan of Liquidation proposed by the official committee of unsecured creditors appointed in the bankruptcy cases of All American Semiconductor. The Plan contemplated the liquidation of all assets of the consolidated estate for the benefit of the holders of allowed claims and allowed interests. AMBAC FINANCIAL: Reports Profit Out of Bankruptcy Protection ------------------------------------------------------------ Ben Fox, writing for The Wall Street Journal, reported that Ambac Financial Group Inc. reported a profit in its first reporting period after emerging from bankruptcy protection in early May, helped by sharply lower costs. According to the report, the bond insurer, which sells protection on mortgage securities, filed for Chapter 11 bankruptcy protection in late 2010 after the Internal Revenue Service questioned the accounting that allowed the company to receive more than $700 million in tax refunds. The company completed its financial restructuring and came out of bankruptcy protection on May 1. Under the terms of the restructuring, all allowed claims of Ambac's former creditors were discharged and those creditors received new stock, and in some cases, new warrants, issued by the reorganized company, the report said. All stock of the company that existed prior to Ambac's emergence from bankruptcy was canceled. For the two-month period from May 1 to June 30, the newly emerged company reported a profit of $205.7 million, or $4.42 a share, on total revenue of $242.8 million, the report related. The predecessor company posted a loss of $811.1 million, or $2.68 a share, with total revenue being negative $6 million during the second quarter a year ago. The latest two-month period had only $36.6 million in total expenses before reorganization items and no debt-extinguishment related losses, while the predecessor company's results were weighed down by losses in derivate products and net realized losses on extinguishment of debt, as well as $806.8 million in total expenses before reorganization items, the report further related. About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac's bond insurance unit, Ambac Assurance Corp., is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about US$1.62 billion. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. Bankruptcy Judge Shelley C. Chapman entered an order confirming the Fifth Amended Plan of Reorganization of Ambac Financial Group, Inc. on March 14, 2012. The Plan provides for the full payment of secured claims and 8.5% to 13.2% recovery for general unsecured claims. The second modified version of the confirmed Plan was declared effective on May 1, 2013, with Ambac obtaining bankruptcy court approval of a $100+ million claims settlement with the Internal Revenue Service. Bankruptcy Creditors' Service, Inc., publishes AMBAC BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Ambac Financial Group and the restructuring proceedings of Ambac Assurance Corp. (http://bankrupt.com/newsstand/or 215/945- 7000). AMERICAN AIRLINES: $700-Mil. Reserve for Disputed Claims Okayed --------------------------------------------------------------- Judge Sean Lane authorized American Airlines Inc. and its affiliates to establish a $700 million reserve for disputed claims. In an August 9 decision, Judge Lane ordered the Debtors to establish a $700 million reserve, which will serve as the "maximum limitation on the ultimate aggregate allowed amount of the disputed single-dip general unsecured claims." The disputed single-dip general unsecured claims consist of more than 1,000 claims, which include intellectual property and employee claims. Judge Lane also required the Debtors to establish so-called "sub reserves" within the $700 million reserve in the total amount of $155.9 million for certain claims filed by AT&T Credit Holdings Inc., Banc of America Leasing & Capital LLC, Bay 2 Bay Leasing LLC, DFO Partnership, HNB Investment Corp., Manufacturers and Traders Trust Co., UnionBanCal Leasing Corp., V44A-767x2 and a group of claimants led by Verizon Capital Corp. The sub reserves and the claims are not subject to the procedures governing the administration of the $700 million reserve, which the bankruptcy judge also approved in his August 9 decision. The court order is available for free at http://is.gd/Lrs1Hw The Debtors originally proposed to establish a $331 million reserve for disputed claims but it was met with opposition from creditors. The creditors complained that the amount is "preposterously low" and would "inevitably deprive creditors of their ability to recover on their claims." About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. 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. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The deal is subject to clearance by U.S. and foreign regulators and by the bankruptcy judge overseeing AMR's bankruptcy case. In April 2013, AMR filed a Chapter 11 plan of reorganization that will carry out the merger. By distributing stock in the merged airlines, the plan is designed to pay all creditors in full, with interest. The hearing before the Court to consider confirmation of the Plan is scheduled for Aug. 15, 2013. 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: Signs Deal With Ace to Assume Policies --------------------------------------------------------- AMR Corp. and ACE American Insurance Co. signed an agreement, which calls for the assumption by the company of ACE's insurance policies. Under the deal, AMR agreed to take over the insurance policies and related agreements pursuant to its proposed Chapter 11 reorganization plan. The assumption will take effect on the date AMR officially emerges from bankruptcy protection. After the plan's effective date, the reorganized company will be liable for all obligations of AMR and its affiliated debtors under the policies and agreements. A copy of the agreement can be accessed for free at http://is.gd/OjUpcJ ACE American Insurance Co. is represented by: Margery Reed, Esq. Wendy Simkulak, Esq. DUANE MORRIS LLP 30 South 17th Street Philadelphia, PA 19103 Tel: (215) 979-1547 Fax: (215) 979-1020 Email: MReed@duanemorris.com WMSimkulak@duanemorris.com 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. 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. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The deal is subject to clearance by U.S. and foreign regulators and by the bankruptcy judge overseeing AMR's bankruptcy case. In April 2013, AMR filed a Chapter 11 plan of reorganization that will carry out the merger. By distributing stock in the merged airlines, the plan is designed to pay all creditors in full, with interest. The hearing before the Court to consider confirmation of the Plan is scheduled for Aug. 15, 2013. 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: AMR-US Air Assemble Antitrust Guns in DOJ Suit ----------------------------------------------------------------- Law360 reported that the decorated team of attorneys enlisted by US Airways Group Inc. and bankrupt American Airlines Inc. to fight the U.S. Department of Justice's antitrust challenge to a $11 billion merger should give the airlines a fighting chance in salvaging the deal, lawyers said. Led by O'Melveny & Myers LLP's Richard Parker, who is representing US Airways, the team also includes Dechert LLP's Paul Denis and Joe Sims of Jones Day, the report said. The trio told reporters that the airlines have every intention to litigate the case, the report further related. Brent Kendall, writing for Daily Bankruptcy Review, reported that the Justice Department built its lawsuit against the merger of US Airways Group and AMR Corp. in significant part on company executives' own past comments, a strategy the government has used successfully in other recent antitrust cases. Deals Market Chelsey Dulaney & Beth Williams, writing for Bloomberg News, reported that the U.S. Justice Department's move to block the merger between AMR Corp. and US Airways Group Inc. is sending a chill through the deals market. According to the report, since both airline companies were sued Aug. 13 to prevent the transaction that would create the world's largest carrier, traders grew more skittish around other U.S. deals seeking regulatory approval. OfficeMax Inc. shares traded the furthest below Office Depot Inc.'s offer in more than two months, and the spread between Arbitron Inc.'s stock price and Nielsen Holdings NV's cash bid hit a record, according to data compiled by Bloomberg. "I would say that 90 percent of the Street was totally shocked that the DOJ decided to sue to block," Kathleen Renck, New York- based head of event-driven research at FBN Securities Inc., told Bloomberg in a phone interview. "Definitely it seems like the DOJ and FTC are taking a harder line. It's certainly not better for Wall Street if the deals are more complicated or if they have to litigate." The Justice Department argued that consumers may face higher fares and fewer flights across a range of markets if the $14 billion airline transaction were to go through, the report said. Just two weeks ago, Office Depot assured shareholders that its $1.2 billion acquisition is on track to close by year-end as it seeks approval from the U.S. Federal Trade Commission. Meanwhile, Nielsen's $1.3 billion bid to combine U.S. television and radio ratings data also is still under review after a second request for information from the FTC. The antitrust case is U.S. v. US Airways Group Inc. (LCC), 13-cv- 01236, U.S. District Court, District of Columbia (Washington). 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. 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. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The deal is subject to clearance by U.S. and foreign regulators and by the bankruptcy judge overseeing AMR's bankruptcy case. In April 2013, AMR filed a Chapter 11 plan of reorganization that will carry out the merger. By distributing stock in the merged airlines, the plan is designed to pay all creditors in full, with interest. The hearing before the Court to consider confirmation of the Plan began Aug. 15, 2013. 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: Bankruptcy Plan Argued Amid DOJ Merger Suit -------------------------------------------------------------- Law360 reported that despite a looming lawsuit from regulators to block the merger, the parent company of American Airlines is moving forward with a reorganization plan that would combine the bankrupt carrier with US Airways to become the world's largest airline. According to the report, a confirmation hearing for AMR Corp. moved forward in New York bankruptcy court Thursday in an at- capacity courtroom with broken air conditioning. Some observers had speculated the hearing would be adjourned as lawyers scramble to strategize just 48 hours after the U.S. Department of Justice filed a lawsuit blocking the merger deal. Square One? Nick Brown, writing for Reuters, reported that AMR Corp. could face months of new restructuring talks, with shareholders likely to suffer the biggest blow, if its merger with US Airways Group is successfully blocked by the U.S. government, according to people close to the bankruptcy proceedings and experts. The report related that the Justice Department sued to stop American Airlines' parent from combining with US Airways, saying the proposed tie-up would reduce competition and hurt consumers by leading to higher airfares and fees. The two airlines vowed to defend the $11 billion deal in court. If the government succeeds, it would send AMR, which has been in bankruptcy since 2011, back to the drawing board to figure out how to pay back creditors, fund a restructuring and improve its business model, the report said. "It would basically be a second bankruptcy," said Stephen Lubben, a bankruptcy expert and professor at Seton Hall University School of Law. Some of AMR's financial issues were resolved before the merger was announced in February. Most notably, the company had reached money-saving labor deals with the unions after months of bitter talks, so they are not contingent on the merger. 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. 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. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The deal is subject to clearance by U.S. and foreign regulators and by the bankruptcy judge overseeing AMR's bankruptcy case. In April 2013, AMR filed a Chapter 11 plan of reorganization that will carry out the merger. By distributing stock in the merged airlines, the plan is designed to pay all creditors in full, with interest. The hearing before the Court to consider confirmation of the Plan began Aug. 15, 2013. 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: Teamsters Ends Representational Campaign ----------------------------------------------------------- The International Brotherhood of Teamsters on Aug. 16 announced an end to the year-long campaign to represent aircraft mechanics and related personnel at American Airlines. The following is a statement by Teamsters spokesman Bret Caldwell: "The Teamsters Union has determined that the recent announcement that the federal government will fight the proposed merger between US Airways and American Airlines places the workers at American Airlines in significant turmoil. American Airlines' emergence from bankruptcy has been cast into doubt and the union has determined that the continued conflict between labor organizations is not in the best interest of the workers. This is not a time for workers to fight among themselves. "More than 6,000 American Airlines mechanics and related personnel signed cards to make the Teamsters their bargaining representative. The Teamsters want to thank those men and women for joining us in the fight to improve their wages and working conditions. As the largest union of airline mechanics and related personnel in the nation, the Teamsters will continue to set the standard for good wages, strong benefits, real job security and workplace dignity in this industry." Founded in 1903, the International Brotherhood of Teamsters -- http://www.teamster.org-- represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. 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. 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. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The deal is subject to clearance by U.S. and foreign regulators and by the bankruptcy judge overseeing AMR's bankruptcy case. In April 2013, AMR filed a Chapter 11 plan of reorganization that will carry out the merger. By distributing stock in the merged airlines, the plan is designed to pay all creditors in full, with interest. The hearing before the Court to consider confirmation of the Plan began Aug. 15, 2013. 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: Reports July 2013 Traffic -------------------------------------------- AMR Corporation reported July 2013 consolidated revenue and traffic results for its principal subsidiary, American Airlines, Inc., and its wholly owned subsidiary, AMR Eagle Holding Corporation. July's consolidated passenger revenue per available seat mile (PRASM) increased an estimated 4.0 percent versus last year, to an all-time record high for any month of 14.61 cents/ASM. Consolidated capacity and traffic were 2.6 percent and 2.5 percent higher year-over-year, respectively, resulting in a consolidated load factor of 86.9 percent, 0.1 points lower versus the same period last year. Domestic traffic was 0.3 percent higher year-over-year on 0.2 percent less capacity, resulting in a domestic load factor of 88.7 percent, 0.5 points higher compared to the same period last year. International load factor of 86.4 percent was 0.7 points lower year-over-year, as traffic increased 5.4 percent on 6.2 percent more capacity. On a consolidated basis, the company boarded 10 million passengers in July. 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. 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. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The deal is subject to clearance by U.S. and foreign regulators and by the bankruptcy judge overseeing AMR's bankruptcy case. In April 2013, AMR filed a Chapter 11 plan of reorganization that will carry out the merger. By distributing stock in the merged airlines, the plan is designed to pay all creditors in full, with interest. The hearing before the Court to consider confirmation of the Plan is scheduled for Aug. 15, 2013. 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 WEST: Hid Ties to Claims Agent, U.S. Trustee Says ---------------------------------------------------------- Law360 reported that the U.S. trustee overseeing the American West Development Inc. bankruptcy lodged an adversary proceeding in Nevada federal court, seeking an order revoking approval of its Chapter 11 reorganization plan in light of its president's allegedly undisclosed relationship with the ex-claims representative and his counsel. According to the report, Acting U.S. Trustee August B. Landis contends that the home builder and its president, Robert M. Evans, helped perpetrate a fraud upon the court by concealing Evans' past dealings with the case's claims agent, James L. Moore, and his attorney. About American West American West Development, Inc. -- fdba Castlebay 1, Inc., et al. -- is a homebuilder in Las Vegas, Nevada, founded on July 31, 1984. Initially, AWDI was known as CKC Corporation, but later changed its name. AWDI filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 12-12349) on March 1, 2012. Judge Mike K. Nakagawa presides over the case. Brett A. Axelrod, Esq., and Micaela Rustia Moore, Esq., at Fox Rothschild LLP, serve as AWDI's bankruptcy counsel. Nathan A. Schultz, P.C., is AWDI's conflicts counsel. AWDI hired Garden City Group as its claims and notice agent. American West disclosed $55.39 million in assets and $208.5 million in liabilities as of the Chapter 11 filing. James L. Moore, as future claims representative in the Chapter 11 case of American West Development, Inc., tapped the law firm of Field Law Ltd. as his counsel. ANCHOR BANCORP: Fudged Financial Reports, SEC Accuses ----------------------------------------------------- Law360 reported that bankrupt Anchor BanCorp Wisconsin Inc. used an estimating system to file misleading financial reports that misrepresented millions of dollars in losses, the U.S. Securities and Exchange Commission said in a suit filed in Washington federal court. According to the report, the suit was settled concurrently with the filing without Anchor paying monetary penalties. Due to the high volume of loans it manages, Anchor uses an estimating system in its quarterly reports, the commission says, the report related. Anchor BanCorp Wisconsin Inc., a bank holding company, filed a prepackaged Chapter 11 petition (Bankr. W.D. Wisc. Case No. 13-14003) on Aug. 12 in the hometown of Madison, Wisconsin, because one of three secured bank lenders wouldn't go along with an out-of-court recapitalization. Anchor BanCorp Wisconsin Inc. on Aug. 13 disclosed that the Holding Company has entered into definitive stock purchase agreements with a number of institutional and other private investors as part of a $175 million recapitalization of the institution. No new investor will own in excess of 9.9% of the common equity of the recapitalized Holding Company. At the same time, in order to facilitate the recapitalization, the Holding Company announced that it has filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Western District of Wisconsin to implement a "pre-packaged" plan of reorganization to restructure the Holding Company and recapitalize its wholly-owned subsidiary, AnchorBank, fsb ("AnchorBank" or the "Bank"). APPLIED MINERALS: James Berylson Held 6.6% Equity Stake at Aug. 1 ----------------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, James Berylson and his affiliates disclosed that as of Aug. 1, 2013, they beneficially owned 6,434,524 shares of common stock of Applied Minerals Inc. representing 6.6 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/Ga8Oi1 About Applied Minerals New York City-based Applied Minerals, Inc. (OTC BB: AMNL) is a leading global producer of halloysite clay used in the development of advanced polymer, catalytic, environmental remediation, and controlled release applications. The Company operates the Dragon Mine located in Juab County, Utah, the only commercial source of halloysite clay in the western hemisphere. Halloysite is an aluminosilicate clay that forms naturally occurring nanotubes. The Company reported a net loss attributable to the Company of $7.48 million in 2011, a net loss attributable to the Company of $4.76 million in 2010, and a net loss attributable to the Company of $6.76 million in 2009. The Company's balance sheet at March 31, 2013, showed $10.52 million in total assets, $2.75 million in total liabilities, and $7.77 million in total stockholders' equity. Going Concern The Company has incurred material recurring losses from operations. At March 31, 2012, the Company had a total accumulated deficit of approximately $43,084,500. For the three months ended March 31, 2012, and 2011, the Company sustained net losses from exploration stage before discontinued operations of approximately $4,056,700 and $1,695,100, respectively. The Company said that these factors indicate that it may be unable to continue as a going concern for a reasonable period of time. The Company's continuation as a going concern is contingent upon its ability to generate revenue and cash flow to meet its obligations on a timely basis and management's ability to raise financing or dispose of certain non-core assets as required. If successful, this will mitigate the factors that raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning At Dec. 31, 2011, and 2010, the Company had accumulated deficits of $39,183,632 and $31,543,411, respectively, in addition to limited cash and unprofitable operations. For the year ended Dec. 31, 2011, and 2010, the Company sustained net losses before discontinued operations of $7,476,864 and $4,891,525, respectively. As of March 15, 2012, the Company has not commercialized the Dragon Mine and has had to rely on cash flow generated from the sale of stock and convertible debt to fund its operations. If the Company is unable to fund its operations through the commercialization of the Dragon Mine, the sale of equity or debt or a combination of both, it may have to file bankruptcy. ASHAND ENTERPRISES: Case Summary & 9 Unsecured Creditors -------------------------------------------------------- Debtor: Ashand Enterprises, Inc. 86-48 122 Street Richmond Hill, NY 11418 Bankruptcy Case No.: 13-44999 Chapter 11 Petition Date: August 14, 2013 Court: U.S. Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Carla E. Craig Debtor's Counsel: H. Bruce Bronson, Esq. BRONSON LAW OFFICES, P.C. 61-43 186th Street Fresh Meadows, NY 11365 Tel: (877) 385-7793 E-mail: hbbronson@gmail.com Scheduled Assets: $7,050,000 Scheduled Liabilities: $4,020,497 A copy of the Company's list of its largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nyeb13-44999.pdf The petition was signed by Velappan Veeraswamy, president/sole director. AVID TECHNOLOGY: Gets NASDAQ Listing Non-Compliance Notice ---------------------------------------------------------- Avid Technology, Inc., disclosed that on August 14, 2013 it received an anticipated additional notification from the staff of the NASDAQ Listing Qualifications Department of Avid's continued noncompliance with NASDAQ Listing Rule 5250(c)(1) due to Avid's delay in filing its Form 10-Q for the quarter ended June 30, 2013. The notification, which was superseded by a notification dated August 15, 2013 to correct a typographical error, was issued in accordance with NASDAQ procedure, which provides that failure to comply with the rule could serve as a basis for the delisting of Avid's stock from the NASDAQ Global Select Market. The NASDAQ notification requires Avid to submit an update to its original plan to regain compliance with NASDAQ's filing requirements for continued listing by August 21, 2013. Avid intends to submit such an update to its original plan by the required date. If the Staff does not accept Avid's plan, Avid will have the opportunity to appeal that decision to a NASDAQ Hearings Panel. If the Staff accepts the Company's plan, the Staff could grant the Company until September 16, 2013, to regain compliance. The NASDAQ notice has no immediate effect on the listing of Avid's common stock on the NASDAQ Global Select Market. As previously announced, the Company's annual report on Form 10-K for the year ended December 31, 2012 and quarterly reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013, could not be filed timely because the Company's ongoing accounting evaluation and the restatement of the Company's financial statements for the fiscal years ended December 31, 2011, 2010 and 2009 and for the quarterly periods ended March 31, 2012 and 2011, June 30, 2012 and 2011, and September 30, 2012 and 2011. The Company is working diligently to complete the accounting evaluation, the restatements and the filings as soon as possible. During this evaluation, Avid plans to continue to invest in its product innovation and execute on its growth strategy. Avid believes it is well positioned to support its customers' ongoing success. About Avid Avid Technology, Inc. -- http://www.avid.com-- creates the digital audio and video technology used to make the most listened to, most watched and most loved media in the world -- from the most prestigious and award-winning feature films, music recordings, television shows, to live concert tours and news broadcasts. Some of Avid's most influential and pioneering solutions include Media Composer(R), Pro Tools(R), Interplay(R), ISIS(R), VENUE, Sibelius(R), and System 5. BANKUNITED FINANCIAL: 11th Circ. Sends Tax Refund to FDIC --------------------------------------------------------- Law360 reported that the Eleventh Circuit ordered BankUnited Financial Corp. to forward refunds from a consolidated tax return to the FDIC as receiver, for distribution to its subsidiaries. According to the report, the ruling reverses a Florida bankruptcy court's decision to allow BankUnited to keep the refunds as assets for its bankruptcy estate. The opinion, written by U.S. Circuit Judge Gerald Bard Tjoflat, noted that the bankruptcy court's decision undermined a tax sharing agreement BankUnited signed with its bank subsidiary BankUnited FSB more than a decade before BankUnited entered bankruptcy, the report related. About BankUnited Financial BankUnited Financial Corp. (OTC Ticker Symbol: BKUNQ) -- http://www.bankunited.com/-- was the holding company for BankUnited FSB, the largest banking institution headquartered in Coral Gables, Florida. On May 21, 2009, BankUnited FSB was closed by regulators and the Federal Deposit Insurance Corporation facilitated a sale of the bank to a management team headed by John Kanas, a veteran of the banking industry and former head of North Fork Bank, and a group of investors that include W.L. Ross & Co., Blackstone Group, Carlyle and Centerbridge. The new owners installed Mr. Kanas as CEO and he sought to revamp BankUnited as a commercial lender in south Florida. BankUnited Financial and its affiliates filed for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 09-19940) on May 22, 2009. Stephen P. Drobny, Esq., and Peter Levitt, Esq., at Shutts & Bowen LLP; Mark D. Bloom, Esq., and Scott M. Grossman, Esq., at Greenberg Traurig, LLP; and Michael C. Sontag, at Camner, Lipsitz, P.A., represent the Debtors as counsel. Corali Lopez-Castro, Esq., David Samole, Esq., at Kozyak Tropin & Throckmorton, P.A.; and Todd C. Meyers, Esq., at Kilpatrick Stockton LLP, serve as counsel to the official committee of unsecured creditors. The banking unit had assets of $12.8 billion and deposits of $8.6 billion as of May 2, 2009. The holding company, in its bankruptcy petition, disclosed $37,729,520 in assets against $559,740,185 in debts. Aside from those assets, BankUnited said a "valuable" asset is its $3.6 billion net operating loss carryforward. Wilmington Trust Co., U.S. Bank, N.A., and the Bank of New York were listed among the company's largest unsecured creditors in their roles as trustees for security issues. BankUnited estimated the Bank of New York claim tied to convertible securities at $184 million. U.S. Bank and Wilmington Trust are owed $120 million and $118.171 million on account of senior notes. The Fourth Amended Joint Plan of Liquidation proposed by the Official Committee of Unsecured Creditors of BankUnited Financial became effective on March 9, 2012. BELLE FOODS: Court Clears Co. to Auction 44 Locations ----------------------------------------------------- Marie Beaudette, writing for DBR Small Cap, reported that a bankruptcy judge said grocery chain Belle Foods LLC can put 44 of its 57 stores on the auction block next month after receiving unexpected interest in some of its locations. An earlier DBR report said that reports retailer-owned cooperative Associated Wholesale Grocers Inc. sought key changes to the proposed rules that would govern an auction of 44 of the stores. Associated Wholesale relayed that some of its members are interested in bidding on Belle Foods grocery stores. About Belle Foods Belle Foods, LLC, bought 57 stores from Southern Family Markets LLC in 2012, and put the business into Chapter 11 reorganization (Bankr. N.D. Ala. Case No. 13-81963) on July 1, 2013, in Decatur, Alabama. The chain is owned by a father and son who purchased the operation with a $4 million secured term loan and $24 million revolving credit from the seller. The stores are in Florida, Georgia, Alabama and Mississippi. The petition shows assets and debt both for more than $10 million. C&S Wholesale Grocers Inc. is owed about $6 million on secured and unsecured debt. Belle Foods owes another $8 million to trade suppliers, according to a court filing. D, Christopher Carson, Esq., Brent W. Dorner, Esq., and Marc P. Solomon, Esq., at Burr & Forman, LLP, represent the Debtor as counsel. BIOFUELS POWER: Delays Form 10-Q for Second Quarter --------------------------------------------------- Biofuels Power Corp. notified the U.S. Securities and Exchange Commission that the filing of its quarterly report on Form 10-Q for the period ended June 30, 2013, will be dalayed. The Company said its financial statements for the quarter are not yet ready for distribution as a result of recent measures the Company has taken with regard to efforts to sign operating agreements which will effect subsequent events at the balance sheet date. Biofuels Power Humble, Tex.-based Biofuels Power Corporation is a distributed energy company that is pioneering the use of biodiesel to fuel small electric generating facilities that are located in close proximity to end-users. BPC's first power plant is currently located near Houston, Texas in the city of Oak Ridge North. Biofuels Power disclosed net income of $342,456 on $0 of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $1.28 million on $0 of revenue during the prior year. The Company's balance sheet at March 31, 2013, showed $1.21 million in total assets, $5.58 million in total liabilities and a $4.37 million total stockholders' deficit. Clay Thomas, P.C., in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has suffered significant losses and will require additional capital to develop its business until the Company either (1) achieves a level of revenues adequate to generate sufficient cash flows from operations; or (2) obtains additional financing necessary to support its working capital requirements. These conditions raise substantial doubt about the Company's ability to continue as a going concern. BLUE SKY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Blue Sky Association, LLC 6001 Edinger Avenue Huntington Beach, CA 92647 Bankruptcy Case No.: 13-16914 Chapter 11 Petition Date: August 14, 2013 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Daniel S. Miller, Esq. LAW OFFICE OF DANIEL S. MILLER 412 Olive Avenue #620 Huntington Beach, CA 92648 Tel: (714) 342-5992 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/cacb13-16914.pdf The petition was signed by Steve Gutierrez, managing dire BRAFFITS CREEK: Bankruptcy Case Now Assigned to Judge Laurel Davis ------------------------------------------------------------------ The U.S. Bankruptcy Court District of Nevada has reassigned the any related adversary proceedings and the Chapter 11 case of Braffits Creek Estates, LLC, to Judge Laurel E. Davis. According to the document filed with the Court, the reassignment was pursuant to the delegation of powers and duties given to the Clerk in Local Rule 5075. Braffits Creek Estates LLC filed for Chapter 11 protection (Bankr. D. Nev. Case No. 12-19780) on Aug. 23, 2012. Bankruptcy Judge Bruce A. Markell presides over the case. David J. Winterton, & Assoc., Ltd., represents the Debtor in its restructuring effort. The Debtor disclosed $25,003,800 in assets and $33,959,140 in liabilities as of the Chapter 11 filing. BRAFFITS CREEK: Taps David J. Winterton as Bankruptcy Counsel ------------------------------------------------------------- Braffits Creek Estates, LLC, filed amended papers asking the U.S. Bankruptcy Court for the District of Nevada for permission to employ the Law Firm of David J. Winterton & Assoc., Ltd. as counsel. The hourly rates of the firm's personnel are: Attorneys $250 to $400 Paralegal $125 To the best of the Debtor's knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: David J. Winteron, Esq. DAVID J. WINTERTON & ASSOC., LTD. 1140 N. Town Center Drive, Suite 120 Las Vegas, NV 89144 Tel: (702) 363 0317 E-mail: david@davidwinterton.com About Braffits Creek Estates LLC Braffits Creek Estates LLC filed for Chapter 11 protection (Bankr. D. Nev. Case No. 12-19780) on Aug. 23, 2012. Bankruptcy Judge Bruce A. Markell presides over the case. David J. Winterton, & Assoc., Ltd., represents the Debtor in its restructuring effort. The Debtor disclosed $25,003,800 in assets and $33,959,140 in liabilities as of the Chapter 11 filing. BUILDERS GROUP: Battle Brewing Over Use of Shopping Center Cash --------------------------------------------------------------- Secured and judgment creditor CPG/GS PR NPL LLC replied to Builders Group & Development Corp.'s opposition to CPG/GS' motion for order determining the foreclosure of rents or prohibiting the use of CPG/GS' cash collateral. According to CPG/GS, rents from the Cupey Professional Mall became the property of CPG/GS pursuant to a prepetition foreclosure that took place over two years before the Debtor's bankruptcy filing. Additionally, CPG/GS stated that, among other things: -- a state court judgment precludes the issue of the amount of the debt through both collateral estoppel and the Rooker- Feldman Doctrine; -- the Debtor's claim for a section 506(c) surcharge is legally insufficient; -- the Debtor's claims for additional relief, as set forth in the opposition, are not applicable; and -- the Court must prohibit the use of any cash collateral due to the Debtor's inability to properly administer the shopping center. As reported in the Troubled Company Reporter on July 31, 2013, the Debtor said CPG's statement related to "settlement attempts, bad faith, mismanagement and alienation of patrons" is "self-serving and fictional," with the only purpose being to influence the Court to take a stance against Builders. Contrary to CPG's representations, Builders and CPG reached a prepetition agreement through a mediated effort which only required minimal changes prior to execution, and CPG kept delaying the signing, then it about-faced and filed a complaint for foreclosure. Builders, through its president's personal resources and those of related companies, has paid the expenses of maintaining the Cupey Professional Mall out of pocket since September 2010. The Debtor said the collateral has been protected and the value has been increased due to the efforts of Builders. The Hon. Enrique S. Lamoutte Inclan will convene a hearing on Aug. 26, 2013, at 2 p.m., to consider: -- Builders Group & Development Corp.'s motion to use cash collateral, and -- secured and judgment creditor CPG/GS PR NPL LLC's motion to alter or amend the Court's interim order entered on July 19, 2013; and the Debtor's opposition to that motion. CPG/GS, in its objection to the interim order authorizing the Debtor's use of cash collateral, stated that CPG has no confidence in the honesty or the capacity of the Debtor's current management and will not consent to the Debtor's current management's use of its cash collateral. CPG also explained that the Debtor has (a) no right to use any cash collateral of CPG/GS, as the same was properly foreclosed and transferred prepetition to CPG/GS, thus does not constitute an asset of the bankruptcy estate; (b) Debtor is not able of providing any reasonable adequate protection to CPG/GS as there exists no equity in its assets, and there exists no reorganization or refinancing alternatives that could even remotely provide a viable exit strategy pursuant to which creditors, such as CPG/GS, will be paid the amount and value of their security interest. About Builders Group Builders Group & Development Corp. owns and manages the Cupey Professional Mall, a shopping center located in Cupey, Puerto Rico. The Company sought Chapter 11 protection (Bankr. D.P.R. Case No. 13-04867) on June 12, 2013, in San Juan, Puerto Rico, its home-town. The company sought bankruptcy on the eve of a foreclosure sale of its property. The Debtor estimated at least $10 million in assets and liabilities in its petition. The Debtor is represented by Kendra Loomis, Esq. at G A Carlo-Altieri & Associates. Jose M. Monge Robertin, CPA, serves as accountant. BUILDERS GROUP: Monge Robertin Approved as Restructuring Advisor ---------------------------------------------------------------- The Hon. Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for the District of Puerto Rico authorized Builders Group & Development Corp., to employ Monge Robertin & Asociados Inc. as CPA/Insolvency and Restructuring Advisor. To the best of the Debtor's knowledge the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Builders Group Builders Group & Development Corp. owns and manages the Cupey Professional Mall, a shopping center located in Cupey, Puerto Rico. The Company sought Chapter 11 protection (Bankr. D.P.R. Case No. 13-04867) on June 12, 2013, in San Juan, Puerto Rico, its home-town. The company sought bankruptcy on the eve of a foreclosure sale of its property. The Debtor estimated at least $10 million in assets and liabilities in its petition. The Debtor is represented by Kendra Loomis, Esq. at G A Carlo-Altieri & Associates. Jose M. Monge Robertin, CPA, serves as accountant. C HACKETT: Case Summary & 11 Unsecured Creditors ------------------------------------------------ Debtor: C Hackett, Inc. dba C Hackett Chrysler Dodge Jeep & Ram C Hackett Auto Rental & Leasing 400 Washington Street Newell, WV 26050 Bankruptcy Case No.: 13-23414 Chapter 11 Petition Date: August 14, 2013 Court: U.S. Bankruptcy Court Western District of Pennsylvania (Pittsburgh) Judge: Thomas P. Agresti Debtor's Counsel: Robert O. Lampl, Esq. 960 Penn Avenue, Suite 1200 Pittsburgh, PA 15222 Tel: (412) 392-0330 Fax: (412) 392-0335 E-mail: rol@lampllaw.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 11 unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/pawb13-23414.pdf The petition was signed by Charles Hackett, principal. CAMCO FINANCIAL: Files Form 10-Q, Incurs $6.1MM Net Loss in Q2 -------------------------------------------------------------- Camco Financial Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net earnings of $6.15 million on $6.88 million of total interest and dividend income for the three months ended June 30, 2013, as compared with net earnings of $482,000 on $7.93 million of total interest and dividend income for the same period during the prior year. For the six months ended June 30, 2013, the Company posted net earnings of $6.65 million on $13.74 million of total interest and dividend income, as compared with net earnings of $895,000 on $16.34 million of total interest and dividend income for the same period a year ago. As of June 30, 2013, the Company's balance sheet showed $756.77 million in total assets, $690.84 million in total liabilities and $65.93 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/bJ2I0T About Camco Financial Cambridge, Ohio-based Camco Financial Corporation is a bank holding company that was organized under Delaware law in 1970. Camco is engaged in the financial services business in Ohio, Kentucky and West Virginia, through its wholly-owned subsidiary, Advantage Bank, an Ohio bank. On March 31, 2011, Camco divested activities related to Camco Title Agency and decertified as a financial holding company. Camco remains a bank holding company and continues to be regulated by the Federal Reserve Board. Plante & Moran PLLC, in Auburn Hills, Michigan, noted that the Corporation's bank subsidiary is not in compliance with revised minimum regulatory capital requirements under a formal regulatory agreement with the banking regulators, and that failure to comply with the regulatory agreement may result in additional regulatory enforcement actions. As discussed in Note K, Camco's wholly-owned subsidiary Advantage Bank's Tier 1 capital does not meet the requirements set forth in the 2012 Consent Order. As a result, the Corporation will need to increase capital levels. The Corporation reported net earnings of $4.2 million on net interest income (before provision for loan losses) of $23.9 million in 2012, compared with net earnings of $214,000 on net interest income of $214,000 on net interest income (before provision for loan losses) of $25.9 million in 2011. CAPITOL BANCORP: Court Clears Firm to Sell Stake in Ohio Bank ------------------------------------------------------------- Patrick Fitzgerald writing for Daily Bankruptcy Review reports that embattled bank-holding company Capitol Bancorp Ltd. won court approval to sell its controlling stake in an Ohio community bank to Amalgamated Bank of Chicago. About Capitol Bancorp Capitol Bancorp Ltd. and Financial Commerce Corporation filed voluntary Chapter 11 bankruptcy petitions (Bankr. E.D. Mich. Case Nos. 12-58409 and 12-58406) on Aug. 9, 2012. Capitol Bancorp -- http://www.capitolbancorp.com/-- is a community banking company with a network of individual banks and bank operations in 10 states and total consolidated assets of roughly $2.0 billion as of June 30, 2012. CBC owns roughly 97% of FCC, with a number of CBC affiliates owning the remainder. FCC, in turn, is the holding company for five of the banks in CBC's network. CBC is registered as a bank holding company under the Bank Holding Company Act of 1956, as amended, 12 U.S.C. Sec. 1841, et seq., and trades on the OTCQB under the symbol "CBCR." Lawyers at Honigman Miller Schwartz and Cohn LLP represent the Debtors as counsel. John A. Simon, Esq., at Foley & Lardner LLP, represents the Official Committee of Unsecured Creditors as counsel. In its petition, Capitol Bancorp scheduled $112,634,112 in total assets and $195,644,527 in total liabilities. The petitions were signed by Cristin K. Reid, corporate president. The Company's balance sheet at Sept. 30, 2012, showed $1.749 billion in total assets, $1.891 billion in total liabilities, and a stockholders' deficit of $141.8 million. Prepetition, the Debtor arranged a reorganization plan that was accepted by the requisite majorities of creditors and equity holders in all classes. Problems arose when affiliates of Valstone Partners LLC declined to proceed with a tentative agreement to fund the reorganization by paying $50 million for common and preferred stock while buying $207 million in face amount of defaulted commercial and residential mortgages. CASCADE AG: Court Authorizes Asset Sale to Pleasant Valley ---------------------------------------------------------- The Hon. Karen A. Overstreet of the U.S. Bankruptcy Court for the Western District of Washington authorized Cascade Ag Services, Inc., to sell assets pursuant to the terms and conditions of an asset purchase agreement, dated Aug. 2, 2013, with Pleasant Valley Farms, LLC, formerly known as Triak Holdings, LLC. As reported in the Troubled Company Reporter on July 17, 2013, the Court approved bidding procedures governing the sale of all or substantially all of the Debtor's assets. Triak Holdings, the stalking horse bidder, was deemed a final bidder. One Pacific Coast Bank, Washington Federal and Columbia State Bank, Skagit Farmers and RSF Mezzanine Fund also submitted bids. The stalking horse APA contemplated the purchase of substantially all of the Debtor's assets for $3 million cash at closing. The stalking horse APA also contemplated the possible assumption by the Debtor of certain executory contracts to be determined by the stalking horse. Secured creditors One Pacific Coast Bank, Columbia Bank and Washington Federal agreed that they will not take any action and forbear until Sept. 15, so that the Debtor and purchaser may close on the transaction under the APA. 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., is a vegetable processing company that processes Washington-grown cucumbers and cabbage into pickles and sauerkraut. Cascade AG filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 12-18366) on Aug. 13, 2012. In amended schedules, the Debtor disclosed $25,522,648 in assets and $21,354,742 in liabilities as of the Chapter 11 filing. Lawyers at Cairncross & Hempelmann PS, in Seattle, serve as the Debtor's counsel. Clyde A. Hamstreet & Associates, LLC, is the Debtor's chief restructuring officer and financial advisor. 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. The Plan filed in the Debtor's case contemplates a $3.0 million capital infusion. Money contributed to fund the Plan will be used to satisfy Administrative Expense Claims to the extent that those Claims must be satisfied for Confirmation, unless there is agreement with Holders of Administrative Expense Claims to defer payment. CASCADE AG: Has Until Sept. 30 to Decide on Unexpired Leases ------------------------------------------------------------ The U.S. Bankruptcy Court for the Western District of Washington extended until Sept. 30, 2013, its time to assume or reject certain unexpired leases of nonresidential real property. This is the Debtor's fourth request for extension. The Debtor said the extension will minimize interruptions to its operations during the upcoming sale process, and ensure that potential purchasers of the Debtor's assets have the opportunity to value and acquire the Debtor's assets as a going concern. The extension will also allow the Debtor time to assume and assign any leases -- to the extent such leases are assumable and assignable -- as part of a sale. 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., is a vegetable processing company that processes Washington-grown cucumbers and cabbage into pickles and sauerkraut. Cascade AG filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 12-18366) on Aug. 13, 2012. In amended schedules, the Debtor disclosed $25,522,648 in assets and $21,354,742 in liabilities as of the Chapter 11 filing. Lawyers at Cairncross & Hempelmann PS, in Seattle, serve as the Debtor's counsel. Clyde A. Hamstreet & Associates, LLC, is the Debtor's chief restructuring officer and financial advisor. 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. The Plan filed in the Debtor's case contemplates a $3.0 million capital infusion. Money contributed to fund the Plan will be used to satisfy Administrative Expense Claims to the extent that those Claims must be satisfied for Confirmation, unless there is agreement with Holders of Administrative Expense Claims to defer payment. CENGAGE LEARNING: Creditors Seek to Probe LBO, Apax Debt Buys ------------------------------------------------------------- Stephanie Gleason, writing for Daily Bankruptcy Review, reported that a group of Cengage Learning Inc.'s creditors are seeking to investigate the company's 2007 leveraged buyout by private equity firm Apax Partners L.P. and debt acquisitions that took place ahead of the textbook company's Chapter 11 filing, even as an independent director looks into some of the same issues. About Cengage Learning Stamford, Connecticut-based Cengage Learning -- http://www.cengage.com/-- provides innovative teaching, learning and research solutions for the academic, professional and library markets worldwide. Cengage Learning's brands include Brooks/Cole, Course Technology, Delmar, Gale, Heinle, South Western and Wadsworth, among others. Apax Partners LLP bought Cengage in 2007 from Thomson Reuters Corp. in a $7.75 billion transaction. The acquisition was funded in part with $5.6 billion in new debt financing. Cengage Learning Inc. filed a petition for Chapter 11 reorganization (Bankr. E.D.N.Y. Case No. 13-bk-44106) on July 2, 2013, in Brooklyn, New York, after signing an agreement where holders of $2 billion in first-lien debt agree to support a reorganization plan. The plan will eliminate more than $4 billion of $5.8 billion in debt. First-lien lenders who signed the so-called plan-support agreement include funds affiliated with BlackRock Inc., Franklin Mutual Adviser LLC, KKR & Co. and Oaktree Capital Management LP. Second- lien creditors and holders of unsecured notes aren't part of the agreement. The Debtors have tapped Kirkland & Ellis LLP as counsel, Lazard Freres & CO. LLC as financial advisor, Alvarez & Marsal North America, LLC, as restructuring advisor, and Donlin, Recano & Company, Inc., as claims and notice agent. A nine-member official committee of unsecured creditors has been appointed in the Debtors' Chapter 11 cases. CENGAGE LEARNING: Chap. 11 Plan Filed ------------------------------------- BankruptcyData reported that Cengage Learning filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, "Among other things, the Plan contemplates the following: * An approximate $4,300 million reduction of funded debt; * A de-leveraged post-reorganization capital structure consisting of (i) a new first-out revolving credit facility of no less than $250 million and up to $400 million to be raised from third-parties on market terms and (ii) $1.5 billion first lien term loan facility (subject to the terms of the RSA); * Holders of First Lien Secured Claims will receive their pro rata share of (1) 100% of the equity in the reorganized Debtors less any amount of New Equity that is part of the Unsecured CLAI Recovery or the Unsecured CLI Recovery (and subject to dilution on account of the Management Incentive Plan), (2) the New Debt Facility Consideration, and (3) the Excess Cash; * Unsecured creditors (including the holders of first lien deficiency claims) (1) against CLAI will receive a distribution on account of that portion of the Disputed Cash determined by Final Order to be unencumbered and the CLA C.V. 35% Equity, which shall be in the form of either: (a) Cash and/or New Equity in an amount to be determined by the Bankruptcy Court, which will be distributed on the Effective Date or adequately reserved for pursuant to a Final Order of the Bankruptcy Court or (b) interests in a Trust established on the Effective Date holding (i) Cash and/or New Equity in an amount to be determined by the Bankruptcy Court or (ii) the CLA C.V.35% Equity and Disputed Cash and (2) against CLI will receive a distribution on account of that portion of Disputed Copyrights determined by Final Order to be unencumbered and the Non-Wholly Owned Subsidiaries, which shall be in the form of either: (a) Cash and/or New Equity in an amount to be determined by the Bankruptcy Court, which will be distributed on the Effective Date or adequately reserved for pursuant to a Final Order of the Bankruptcy Court or (b) interests in a Trust established on the Effective Date holding (i) Cash and/or New Equity in an amount to be determined by the Bankruptcy Court or (ii) the Disputed Copyrights and the Non-Wholly Owned Subsidiaries, which distribution shall be made in accordance with a priority waterfall that shall take into account all applicable priority principles of the Bankruptcy Code and other applicable law, including but not limited to subordination provisions and provisions in intercreditor agreements; * The terms of certain post-reorganization governance rights applicable to the holders of new equity (including rights to nominate directors); and * The cancellation of existing equity interests other than to the extent necessary to preserve the general corporate structure of the Debtors; and Certain other customary terms and provisions." Interested parties must submit ballots and/or objections for the Plan by November 1, 2013; and the Court scheduled a November 8, 2013 hearing to consider the Plan. About Cengage Learning Stamford, Connecticut-based Cengage Learning -- http://www.cengage.com/-- provides innovative teaching, learning and research solutions for the academic, professional and library markets worldwide. Cengage Learning's brands include Brooks/Cole, Course Technology, Delmar, Gale, Heinle, South Western and Wadsworth, among others. Apax Partners LLP bought Cengage in 2007 from Thomson Reuters Corp. in a $7.75 billion transaction. The acquisition was funded in part with $5.6 billion in new debt financing. Cengage Learning Inc. filed a petition for Chapter 11 reorganization (Bankr. E.D.N.Y. Case No. 13-bk-44106) on July 2, 2013, in Brooklyn, New York, after signing an agreement where holders of $2 billion in first-lien debt agree to support a reorganization plan. The plan will eliminate more than $4 billion of $5.8 billion in debt. First-lien lenders who signed the so-called plan-support agreement include funds affiliated with BlackRock Inc., Franklin Mutual Adviser LLC, KKR & Co. and Oaktree Capital Management LP. Second- lien creditors and holders of unsecured notes aren't part of the agreement. The Debtors have tapped Kirkland & Ellis LLP as counsel, Lazard Freres & CO. LLC as financial advisor, Alvarez & Marsal North America, LLC, as restructuring advisor, and Donlin, Recano & Company, Inc., as claims and notice agent. A nine-member official committee of unsecured creditors has been appointed in the Debtors' Chapter 11 cases. CENGAGE LEARNING: Committee's Hiring Approvals Sought ----------------------------------------------------- BankruptcyData reported that Cengage Learning's official committee of unsecured creditors filed with the U.S. Bankruptcy Court motions to retain: -- FTI Consulting (Contact: Samuel Star) as financial advisor at the following hourly rates: senior managing director at $790 to 895; director/managing director at 570 to 755; consultant/senior consultant at 290 to 540 and administrative, paraprofessional and associate at 120 to 250; and -- Moelis & Company (Contact: William Q. Derrough) as investment banker for a monthly fee of $150,000 and a restructuring fee of $4 million payable upon consummation of any restructuring. About Cengage Learning Stamford, Connecticut-based Cengage Learning -- http://www.cengage.com/-- provides innovative teaching, learning and research solutions for the academic, professional and library markets worldwide. Cengage Learning's brands include Brooks/Cole, Course Technology, Delmar, Gale, Heinle, South Western and Wadsworth, among others. Apax Partners LLP bought Cengage in 2007 from Thomson Reuters Corp. in a $7.75 billion transaction. The acquisition was funded in part with $5.6 billion in new debt financing. Cengage Learning Inc. filed a petition for Chapter 11 reorganization (Bankr. E.D.N.Y. Case No. 13-bk-44106) on July 2, 2013, in Brooklyn, New York, after signing an agreement where holders of $2 billion in first-lien debt agree to support a reorganization plan. The plan will eliminate more than $4 billion of $5.8 billion in debt. First-lien lenders who signed the so-called plan-support agreement include funds affiliated with BlackRock Inc., Franklin Mutual Adviser LLC, KKR & Co. and Oaktree Capital Management LP. Second- lien creditors and holders of unsecured notes aren't part of the agreement. The Debtors have tapped Kirkland & Ellis LLP as counsel, Lazard Freres & CO. LLC as financial advisor, Alvarez & Marsal North America, LLC, as restructuring advisor, and Donlin, Recano & Company, Inc., as claims and notice agent. A nine-member official committee of unsecured creditors has been appointed in the Debtors' Chapter 11 cases. CENTENE CORP: Moody's Affirms 'Ba2' Senior Debt; Outlook Stable --------------------------------------------------------------- Moody's Investors Service has affirmed the debt ratings of Centene Corporation (NYSE:CNC, senior debt at Ba2) and changed the outlook on the ratings to stable from negative following its exit from its Kentucky managed Medicaid contract on July 5, 2013. The Baa2 insurance financial strength (IFS) ratings of the company's operating subsidiaries were also affirmed, with the outlook changed to stable from negative. Rating Rationale: Moody's stated the rating affirmation and change in outlook to stable reflects Centene's exit from its Medicaid contract with the Commonwealth of Kentucky, which had been incurring financial losses. In addition, the rating agency commented that the rating action reflects the company's improved profitability since 2012 resulting from additional Medicaid contracts implemented during 2012 and 2013, and significant rate increases obtained on some of its existing Medicaid contracts. According to Moody's, the Kentucky Medicaid contract had been a drain on earnings, including a $41.5 million pre-tax premium deficiency reserve established in 2012 to reflect anticipated losses through the termination date of the contract in July, 2013. However, Moody's Senior Vice President Steve Zaharuk said, "While Centene has terminated its Medicaid contract with Kentucky, and is only liable for run-out medical claims incurred on or before the termination date, the company remains entangled in a legal dispute with the Commonwealth, which may take several years to resolve and could possibly result in a significant financial penalty." The rating agency commented that given Centene's good capital and cash flow, it should be able to manage a fairly sizeable penalty without materially impacting the company's credit profile; however, should the penalty exceed 15% of shareholders' equity (i.e., above $170 million), there would be a negative credit impact. Moody's added that the rating affirmation also reflects new contract wins for Centene in California, Florida, New Hampshire, and Massachusetts; dual-eligible contracts in Ohio and Illinois; and expansion contracts awarded in Ohio and Texas, which more than offset the termination of the Kentucky contract. Zaharuk noted, "As a result of the anticipated growth from these contracts, the company's capital requirements will also grow; however, Moody's anticipates that Centene will maintain the company's consolidated NAIC Risk Based Capital (RBC) ratio at approximately 175% of company action level (CAL), which is a key factor supporting the company's ratings." While the company has expanded its revolving credit facility to $500 million to provide additional financial flexibility, the company has been able to meet its additional capital needs to date through internal cash generation. Moody's Ba2 senior debt rating for Centene is based primarily on the company's concentration in the Medicaid market, acquisitive nature, and moderate level of financial leverage, offset by its multi-state presence, expansion into other healthcare product opportunities, relatively stable financial profile and adequate capitalization. The rating also reflects concerns with respect to the level of reimbursements to Medicaid managed care companies as states fall under budgetary and political pressures. According to the rating agency, while rate increases have been under pressure over the last two years, it appears that states have adhered to actuarial valuations in determining reimbursement levels, resulting in reasonable rate increases in most states. It should also be noted that healthcare reform legislation, which will increase the number of persons eligible for Medicaid, has increased interest among states in Medicaid managed care options, providing growth opportunities for Centene. Moody's said that Centene's ratings could be upgraded if: 1) EBITDA margins approach 4% on a consistent basis, 2) financial leverage (debt to capital) is reduced to or below 30%, and 3) the company successfully operates on the individual exchanges, resulting in increased premium diversity. Moody's added that on the other hand, the following could result in a rating downgrade: 1) loss or impairment of one or more additional Medicaid contracts, 2), a loss or penalty associated with the exit from the Kentucky Medicaid contract in excess of 15% of shareholders' equity, 3) EBITDA interest coverage falling below 6x, or 4) Debt to EBITDA ratio remaining above 3x. The principal methodology used in rating Centene was Moody's Rating Methodology for U.S. Health Insurers rating methodology published in May 2011. The following ratings were affirmed with the outlook changed to stable from negative: Centene Corporation -- senior unsecured debt rating at Ba2; senior unsecured shelf debt rating at (P)Ba2; subordinated debt shelf rating at (P)Ba3; corporate family rating at Ba2; Managed Health Services Insurance Corp. -- insurance financial strength rating at Baa2; Peach State Health Plan, Inc. -- insurance financial strength rating at Baa2; Coordinated Care Corp. Indiana, Inc. -- insurance financial strength rating at Baa2; Superior HealthPlan, Inc. -- insurance financial strength rating at Baa2. Centene Corporation is headquartered in St. Louis, Missouri. For the first six months of 2013 the company reported total revenues of $5.4 billion with managed care membership as of June 30, 2013 of approximately 2.7 million. As of June 30, 2013 the company reported shareholders' equity of approximately $1.1 billion. Moody's insurance financial strength ratings (IFSR) are opinions about the ability of insurance companies to punctually pay senior policyholder claims and obligations. COLEMAN CABLE: Performance Strengthens Amidst Copper Price Hike --------------------------------------------------------------- Moody's Investors Service said that Coleman Cable's (B2 positive) credit profile continues to strengthen despite a recent rally in copper prices. Headquartered in Waukegan, Illinois, Coleman Cable, Inc. is a leading designer, developer, manufacturer and supplier of electrical wire and cable products for consumer, commercial and industrial applications, with operations primarily in the United States. The company reported sales of $867 million for the fiscal- year ended December 31, 2011. COLOREP INC: Sept. 19 Auction of Substantially All Assets Approved ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Central District of California approved bidding procedures to govern the sale of substantially all assets of Colorep, Inc., et al. The Debtors intend to sell assets that comprise (a) substantially all of the tangible and intangible personal property that is used or useful in the operation of the Debtors' business; (b) real estate owned by the Debtors; (c) certain executory contracts and unexpired leases of the Debtors to be specified by the prevailing bidder; (d) intellectual property, including patents, trademarks, copyrights and related interests; (e) the equity securities held by the Debtors in certain of their subsidiaries; (f) cash and accounts receivables; and (g) such other property of the Sellers designated by the buyer, provided however that cash and other assets in an amount to be set forth in the APA of any prospective bidder, will remain in the Debtors' estates to be used in satisfaction of administrative expense claims and those amounts determined necessary to cover the Debtors' wind-down expenses. Pursuant to the bidding procedures, these schedules are set: Aug. 27 deadline of the Debtor to file and serve their cure notice to the counterparties to all executory contracts and unexpired leases Sept. 18 deadline for objections to sale, cure cost and assignment and assumption, adequate assurance of future performance and objections other than to the cure cost Sept. 19 date of auction at the offices of the Debtors' counsel, Stutman, Treister & Glatt, PC, 1901 Avenue of the Stars, 12th Floor, Los Angeles, California, if the Debtors receive more than one qualified bid Sept. 24 deadline for objections to notice of proposed assumption of leases and executory contracts, and adequate assurance of future performance Sept. 26 sale hearing The bidding procedures also provides that the purchase price will be the highest or best price and terms, determined at the conclusion of the auction, by the Debtors, in consultation with the Official Committee of Unsecured Creditors, if one is formed, and Fuller Smith Capital Management LLC as DIP Agent, and FSCM and Meserole, LLC in their capacities as debtor-in-possession lenders, if the DIP Lenders are not a bidder at the auction. All due diligence must be completed by an interested party prior to its submission of a qualified bid in connection with the auction. Any party that wishes to conduct due diligence must contact the Debtors' investment banker. A copy of the sale bid procedures is available for free at http://bankrupt.com/misc/COLOREPINC_sale_order.pdf The Debtor has not signed an agreement with a stalking horse bidder yet. About Colorep Inc. Colorep Inc., an industrial printer from Harrisonburg, Virginia, filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 13-27689) on July 10 in Los Angeles, owing $17 million to secured lender Meserole LLC. The company licenses a fabric-dyeing process known as AirDye. Colorep's subsidiary Transprint USA Inc. also filed in Chapter 11. Transprint produces transfer-printing paper. Gary E. Klausner, Esq., at Stutman, Treister & Glatt Professional Corporation, represents the Debtors in their restructuring effort. COLOREP INC: Executive Sounding Board to Provide Crisis Management ------------------------------------------------------------------ Colorep, Inc., et al., ask the U.S. Bankruptcy Court for the Central District of California to: -- approve the agreement with Executive Sounding Board Associates, Inc., to provide crisis management services and also to provide Robert D. Katz to serve as the Debtors' chief restructuring officer, well as any required additional temporary staff, including, but not limited to, Paul Newton; and -- authorize the appointment of Mr. Katz as CRO. The Debtors have agreed to provide a postpetition retainer to ESBA in the amount of $85,000 to be funded from the proceeds of the DIP Financing Facility or cash collateral. ESBA will have no obligations to represent the Debtors unless the proposed postpetition retainer is promptly funded. Mr. Katz and ESBA will, among other things: -- act as the CRO and as such ESBA will be appointed CRO and assume certain duties and responsibilities of the day to day management and operation of the Debtors' businesses, during their Chapter 11 cases, including responsibility for the Debtors' compliance with UST requirements and regulations; -- evaluate and develop alternative reorganization strategies; and -- working to improve the manufacturing process; enhancing throughput; and material utilization. ESBA will be compensated on an hourly basis for fees incurred in rendering services to the Debtors, and reimbursed for actual and necessary expenses. The hourly billing rate for Mr. Katz is $525 and the hourly billing rate for Mr. Newton will be $395, which amounts represent reductions of their normal hourly rates and in consideration of this engagement. In the unlikely event that Mr. Newton works more than 40 hours per week, ESBA has agreed to cap Mr. Newton's fees at $15,000 per week. As an alternative and at ESBA's sole discretion, ESBA would cap Mr. Newton's fees at $12,500 per week with a $200,000 "success fee" to be paid by prepetition lender Meserole LLC upon completion of a reorganization under Chapter 11 of the Bankruptcy Code or a Section 363 sale. If the election is made, the ESBA Agreement provides that the terms and conditions of the success fee will be formalized in a written addendum to the ESBA Agreement. To the extent they are not performing other billable work while traveling, travel time for ESBA consultants will be billed at 1/4 their normal hourly rate. If other consultants from ESBA be needed, their rates will be billed between $295 and $480 per hour and will be approved by the Debtors' boards of director in advance. If the engagement lasts more than six months, ESBA has reserved the right to increase the hourly fee rates charged, upon prior written notice. ESBA was given a $30,000 retainer to secure payment of its fees and expenses in the prepetition period. Additionally, the Debtors have agreed that ESBA will be given the proposed postpetition retainer in the amount of $85,000, which will be funded from the first funds available under the DIP Financing Facility. To the best of the Debtors' knowledge, ESBA, nor any of its principals, employees, agents or affiliates holds or represents an interest materially adverse to the Debtors' estates. ESBA may be reached at: Robert D Katz, CTP MBA CPA Managing Director EXECUTIVE SOUNDING BOARD ASSOCIATES INC 1500 John F. Kennedy Boulevard, Suite 1730 Philadelphia, PA 19102 Tel: (215) 568-5788 Fax: (215) 568-5769 E-mail: rdkatz@esba.com About Colorep Inc. Colorep Inc., an industrial printer from Harrisonburg, Virginia, filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 13-27689) on July 10 in Los Angeles, owing $17 million to secured lender Meserole LLC. The company licenses a fabric-dyeing process known as AirDye. Colorep's subsidiary Transprint USA Inc. also filed in Chapter 11. Transprint produces transfer-printing paper. Gary E. Klausner, Esq., at Stutman, Treister & Glatt Professional Corporation, represents the Debtors in their restructuring effort. COLOREP INC: Taps Stubbs Alderton as Special Corporate Counsel -------------------------------------------------------------- Colorep, Inc., et al., ask the U.S. Bankruptcy Court for the Central District of California for permission to employ Stubbs, Alderton & Markiles, LLP as their special corporate counsel. Stubbs has worked with the Debtors on transactional and corporate governance matters since June 2013. Past services have included advice with respect to the Debtors' organizational documents as they relate to the Debtors' pending bankruptcy proceedings; and on various state and federal WARN Act matters in connection with termination of employees. The Debtors wish to employ Jonathan Hodes, Joe Stubbs, Jason Lee, and other members, associates and of-counsel attorneys of Stubbs as the Debtors' special counsel in connection with the cases, effective as of the Petition Date. The Debtors require special corporate counsel to render the professional services: a. providing general corporate advice to the Debtors and their boards of directors, including any special committees formed, related to governance and operations. b. attending any board of director or special committee meetings, as requested by the Debtors. c. analyzing and drafting agreements required in connection with the sale of the Debtors' assets, including making sure that any subject transactions conform with applicable nonbankruptcy law. d. preparing contracts or agreements related to the governance or operations of the Debtors. Stubbs will not be responsible for matters of bankruptcy law, including general representation of the Debtors in the cases, as the Debtors have already retained reorganization counsel for such purposes, specifically the firm of Stutman, Treister & Glatt Professional Corporation. On July 15, 2013, Stubbs received a $10,000 postpetition retainer to secure the payment of a portion of Stubbs' fees and expenses. The Chapter 11 Retainer was funded from the distribution made by Meserole, LLC under the postpetition financing approved on an interim basis by the Court on July 18, 2013. Jonathan R. Hodes, Esq., principal at Stubbs, assures the Court that Stubbs neither holds nor represents any interest materially adverse to the interests of the Debtors' estates. He may be reached at: Jonathan R. Hodes, Esq. STUBBS ALDERTON & MARKILES, LLP 15260 Ventura Blvd., 20th FL Sherman Oaks, CA 91403 Tel: (818) 444-4508 (818) 444-6308 E-mail: jhodes@stubbsalderton.com About Colorep Inc. Colorep Inc., an industrial printer from Harrisonburg, Virginia, filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 13-27689) on July 10 in Los Angeles, owing $17 million to secured lender Meserole LLC. The company licenses a fabric-dyeing process known as AirDye. Colorep's subsidiary Transprint USA Inc. also filed in Chapter 11. Transprint produces transfer-printing paper. Gary E. Klausner, Esq., at Stutman, Treister & Glatt Professional Corporation, represents the Debtors in their restructuring effort. COLOREP INC: Hiring Stutman Treister as Reorganization Counsel -------------------------------------------------------------- Colorep, Inc., et al., ask the U.S. Bankruptcy Court for the Central District of California for permission to employ Stutman, Treister & Glatt Professional Corporation as reorganization counsel. The Debtors have agreed to provide a postpetition retainer to Stutman Treister in the amount of $125,000 to be funded from disbursements pursuant to the Debtors under the proposed DIP financing which is currently being presented to the court. Prior to the Petition Date, Stutman Treister received a retainer, paid from the monies advanced to the Debtors by its prepetition secured lender, in the amount of $150,000 for services rendered and expenses incurred prior to the filing of the Debtors' chapter 11 cases. Prior to the commencement of these Chapter 11 cases, Stutman Treister drew down $150,000 from the Pre-Chapter 11 Retainer for prepetition services rendered to the Debtors. The Debtors do not owe Stutman Treister any amount for prepetition services. In addition to the Chapter 11 Retainer, Stutman Treister also received, from funds advanced by the Debtors' prepetition secured lender, $10,000 to be held in trust and to be paid as a retainer to the Debtors' corporate counsel if and when retained and $25,000 to cover filing fees and other expenses incurred in connection with the Debtors' chapter 11 cases. Gary E. Klaus, senior shareholder at Stutman Treister, assures the Court that Stutman Treister does not hold or represent an interest adverse to the Debtors' estates. About Colorep Inc. Colorep Inc., an industrial printer from Harrisonburg, Virginia, filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 13-27689) on July 10 in Los Angeles, owing $17 million to secured lender Meserole LLC. The company licenses a fabric-dyeing process known as AirDye. Colorep's subsidiary Transprint USA Inc. also filed in Chapter 11. Transprint produces transfer-printing paper. Gary E. Klausner, Esq., at Stutman, Treister & Glatt Professional Corporation, represents the Debtors in their Restructuring effort. COMMUNITYONE BANCORP: Second Quarter Financial Presentation ----------------------------------------------------------- CommunityOne Bancorp posted its second quarter 2013 financial presentation on the Investor Relations section of its Web site, www.community1.com CommunityOne Bancorp disclosed a net loss of $3.18 million on $18.13 million of total interest income for the three months ended June 30, 2013, as compared with a net loss of $18.13 million on $20.43 million of total interest income for the same period a year ago. For the six months ended June 30, 2013, the Company incurred a net loss of $7.77 million on $36.20 million of total interest income, as compared with a net loss of $28.99 million on $40.42 million of total interest income for the same period during the prior year. FNB United incurred a net loss of $40 million in 2012, a net loss of $137.31 in 2011, and a net loss of $131.82 million in 2010. As of June 30, 2013, the Company had $2.03 billion in total assets, $1.96 billion in total liabilities and $76.04 million in total shareholders' equity. A copy of the Financial Presentation is available for free at: http://is.gd/6hrE8O About CommunityOne CommunityOne Bancorp (formerly FNB United) is the North Carolina- based bank holding company for CommunityOne Bank, N.A. (community1.com), which offers a full range of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth and online banking services through 55 branches in 44 communities throughout the central, southern and western regions of the state. COMPETITIVE TECHNOLOGIES: Tonaquint Had 6% Equity Stake at Aug. 9 ----------------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Tonaquint, Inc., and its affiliates disclosed that as of Aug. 9, 2013, they beneficially owned 1,061,226 shares of common stock of Competitive Technologies, Inc., representing 6.49 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/4I1vkG 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. Competitive Technologies incurred a net loss of $3 million on $546,139 of gross profit from product sales in 2012, as compared with a net loss of $3.59 million on $1.86 million of gross profit from product sales in 2011. As of March 31, 2013, the Company had $4.60 million in total assets, $9.25 million in total liabilities and a $4.64 million total shareholders' deficit. Mayer Hoffman McCann CPAs (The New York Practice of Mayer Hoffman McCann P.C.), in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that at Dec. 31, 2012, the Company has incurred operating losses since fiscal year 2006. These conditions raise substantial doubt about the Company's ability to continue as a going concern. CONNACHER OIL: S&P Lowers Corporate Credit Rating to 'CCC+' ----------------------------------------------------------- Standard & Poor's Rating Services said it lowered its long-term corporate credit rating on Calgary, Alta.-based Connacher Oil and Gas Ltd. to 'CCC+' from 'B-'. The outlook is stable. At the same time, Standard & Poor's lowered its issue-level rating on the company's second lien US$550 million and C$350 million debt issues to 'B' from 'B+'. The '1' recovery rating on the second lien debt is unchanged. "The downgrade reflects our view that the company's persistently high cost structure, limited cash flow generation, and inability to exploit the organic growth potential inherent in its in-situ oil sands resource base are characteristic of the 'CCC+' rating," said Standard & Poor's credit analyst Michelle Dathorne. "Nevertheless, we believe the company's existing liquidity, which the 2012 disposition of its conventional oil and gas assets and Montana refinery has bolstered, should remain adequate to fund its expected spending throughout our forecast period. The strength of Connacher's liquidity is a material factor supporting the stable outlook," Ms. Dathorne added. The ratings reflect S&P's view of Connacher's very high cost structure, limited internal cash flow generation, and inability to exploit the organic growth potential inherent in its in-situ oil sands resource base, and very high balance sheet leverage. S&P believes the size and quality of the company's reserves base and liquidity position offset these factors. Connacher is an oil sands-focused exploration and production company producing bitumen using steam-assisted gravity drainage (SAGD) technology. It holds a 100% interest in approximately 98,000 acres of oil sands leases in the Great Divide region near Fort McMurray, Alta. The company's first 10,000 barrel-per-day (bbl/d) SAGD oil sands project (Pod I) commenced commercial production in March 2008, and its second 10,000 bbl/d SAGD project (Algar) began producing in August 2010. The stable outlook reflects Standard & Poor's expectation that Connacher should be able to generate sufficient funds from operations (FFO) to sustain its oil sands bitumen production at a minimum of 65% of its total design capacity (or 13,000 bbl/d) throughout our 2014-2015 forecast period. Although S&P believes the company's current production capacity is below the minimum threshold where economies of scale could be realized, in S&P's opinion, Connacher should be able to generate sufficient FFO, under S&P's current hydrocarbon price assumptions, to fund its minimum maintenance capital spending. S&P believes the company should continue to generate marginal positive free operating cash flow throughout our forecast period, but its high full-cycle cost profile, weak cash flow protection metrics, and highly leveraged balance sheet will likely continue to constrain its overall credit profile. If Connacher's liquidity position deteriorates and becomes less than adequate, whereby its total liquidity sources represents less than 1.2x of total anticipated uses of liquidity, S&P would lower the ratings. This would occur if the company's spending materially outpaces S&P's current capital expenditure estimates during its forecast period, such that it generates negative free operating cash flow. S&P do not believe Connacher's current SAGD operations, with its total 20,000 bbl/d design capacity, will generate sufficient internal cash flow to fund organic growth, so the company will need to secure significant external equity funding to improve its capital structure and expand its SAGD operations. Although Connacher is no longer actively pursuing a joint venture or strategic partner to manage its oil sands operations, a positive rating action remains contingent on the company's ability to complete a transformative transaction. CORNERSONE BANCOR: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Cornersone Bancor Mortgage Corp. 85 Shinnecock Avenue Massapequa, NY 11758 Bankruptcy Case No.: 13-74205 Chapter 11 Petition Date: August 14, 2013 Court: U.S. Bankruptcy Court Eastern District of New York (Central Islip) Judge: Alan S. Trust Debtor's Counsel: Gary C. Fischoff, Esq. BERGER, FISCHOFF & SHUMER, LLP 40 Crossways Park Drive Woodbury, NY 11797 Tel: (516) 747-1136 E-mail: gfischoff@sfbblaw.com Scheduled Assets: $576,800 Scheduled Liabilities: $1,229,593 The Company's list of its largest unsecured creditors filed with the petition does not contain any entry. The petition was signed by Mathew Sutphen, president. Mr. Sutphen himself sought bankruptcy protection on March 25, 2013 (Case No. 13-71506). DBK INVESTMENTS: Court Approves John Smith as Accountants --------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of West Virginia authorized DBK Investments & Development Corporation to employ John Smith and Smith & Company as its accountant. Smith & Company will render, prepare, and file the Debtor's income tax returns, operating results, quarterly reports and monthly tax reports, and all of the bookkeeping services required by the Court. The Debtor will pay Smith & Company $150 per hour for senior staff and $75 per hour for mid-level staff. To the best of the Debtor's knowledge, Smith & Company is a disinterested person as that term is defined in 11 U.S.C. Section 101(13). About DBK Investments & Development Corporation Bettye J. Morehead, Brown, Edwards & Co., and Smith & Co. filed on April 1, 2013, an involuntary Chapter 11 petition (Bankr. S.D. W.V. Case No. 13-50063) against Beckley, West Virginia-based DBK Investments & Development Corporation, dba Americas Best Value Inn, fka Best Western. Judge Ronald G. Pearson presides over the case. The Petitioners are represented by Joe M. Supple, Esq., at Supple Law Office, PLLC. The Bankruptcy Court entered a default order for relief on May 1, 2013. The Debtor failed to file any timely pleading or defense to the petition as required by the Bankruptcy Rule 1013(b). Judy A. Robbins, the U.S. Trustee for Region 4, has informed the Bankruptcy Court that she was unable to appoint a committee of unsecured creditors in the case. DESIGNLINE INT'L: Files for Bankruptcy -------------------------------------- The Associated Press reported that a Charlotte-based manufacturer of hybrid and electric buses has filed for bankruptcy protection following several weeks of furloughs and layoffs. According to the report, federal court documents show DesignLine has assets of $14 million and debts of $37.5 million. DesignLine is the former employer of U.S. Transportation Secretary Anthony Foxx, who was Charlotte's mayor until the Senate confirmed President Obama's nominee in June, the report said. Foxx made $88,000 a year as deputy general counsel, a job he had throughout his tenure as mayor. The company's largest creditor is New Jersey Transit, which has paid $3.6 million for buses it hasn't received, the report related. DesignLine was founded in New Zealand but moved its headquarters to Charlotte in 2006, the report said. The company employed about 250 people there earlier this year. DETROIT, MI: Objections Filed on Chapter 9 Eligibility ------------------------------------------------------ Nathan Bomey, writing for the Detroit Free Press, reports that dozens of creditors, unions and retiree groups objected to Detroit's eligibility to file for Chapter 9 bankruptcy. Those objections were due Monday. According to Free Press, the objections, which were widely expected and numbered nearly 100 by 7 p.m., attacked Detroit's financial standing, its legal authority to file for bankruptcy and the process leading up to its July 18 filing. Several objectors said the city is not eligible for bankruptcy because Detroit emergency manager Kevyn Orr plans to pursue reduced pension payments during the bankruptcy. The objectors included: -- Detroit's largest union, the Michigan chapter of the American Federation of State, County & Municipal Employees, -- The Retired Detroit Police & Fire Fighters Association and the Detroit Retired City Employees Association, which collectively represent about 70% of the city's approximately 21,000 retirees, and -- individual retirees. The report relates U.S. Bankruptcy Judge Steven Rhodes plans to hold a trial Oct. 23 to hear arguments about whether the city has a right to file for bankruptcy. Constitutional Grounds Bernie Woodall, writing for Reuters, reported that Detroit's two public pension funds will file an objection to the city's bankruptcy filing on Michigan constitutional grounds, a representative of the pension boards said. According to the report, the challenge expected from the pension funds is the first to emerge from among several parties likely to object to the city of Detroit's claim that it is bankrupt. For Detroit's Chapter 9 bankruptcy to proceed U.S. Bankruptcy Judge Steven Rhodes, who is overseeing the case, must first find the city has proved it is insolvent and negotiated in good faith with its creditors, or that there were too many creditors to make negotiation feasible, the report noted. In a court filing earlier this month, Detroit released a list of creditors, including current, former and retired workers, that filled 3,504 pages, the report said. If Detroit is ultimately deemed eligible for municipal bankruptcy, it would be the biggest such case in U.S. history. The city's two pension boards will claim that Michigan Governor Rick Snyder violated the state's Constitution when he allowed Detroit's state-appointed emergency manager, Kevyn Orr, to make the bankruptcy filing, the report added. About Detroit, Michigan The city of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The city's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. DETROIT, MI: City, Pension Fund Reps Met Monday ----------------------------------------------- Alisa Priddle, writing for the Detroit Free Press, reports that legal and financial representatives of the city of Detroit and its two pension systems -- the Police and Fire Retirement System and the General Retirement System -- held a 3-hour meeting Monday to discuss the city's underfunded pensions. According to the Free Press, the meeting "is being described as the first real effort by both sides to put their data on the table and start haggling over discrepancies in how underfunded the systems are." The report notes the Police and Fire Retirement System and the General Retirement System have stated through their actuaries that they are underfunded by $640 million; emergency manager Kevyn Orr's team has found the number to be closer to $3.5 billion. According to Free Press, attorneys, restructuring professionals and actuaries from the city's Emergency Manager's Office and the two independent retirement systems spent Monday afternoon comparing figures. According to the report, Detroit is currently relying on a June 4 report it commissioned from the Milliman accounting firm. Mr. Orr spokesman Bill Nowling said a more comprehensive Milliman report is in the works. Initially, the city hoped it would be ready this week but mr. Nowling said Monday that a few more weeks of work are required to complete it. A copy of the General Retirement System pension report is available at http://www.freep.com/assets/freep/pdf/C4210423816.PDF from the Free Press. A copy of the Police and Fire Retirement System pension report is available at http://www.freep.com/assets/freep/pdf/C4210424816.PDF from the Free Press. Law360 reported that a Michigan federal judge involved in Detroit's insolvency proceedings ordered the city and several unions into mediation in order to sort out the renegotiation of collective bargaining agreements. According to the report, U.S. District Judge Gerald E. Rosen, who was named as the mediator in the case days earlier, directed the city, two of its retirement funds and multiple unions including the American Federation of State, County, and Municipal Employees, the city's police and fire unions and the United Auto Workers to attend an initial mediation session in September. About Detroit, Michigan The city of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The city's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. DETROIT, MI: Robert Fishman Appointed as Fee Examiner ----------------------------------------------------- Nathan Bomey, writing for the Detroit Free Press, reports that Bankruptcy Judge Steven Rhodes appointed Robert M. Fishman, Esq. -- rfishman@shawfishman.com -- of Chicago-based firm Shaw Fishman Glantz and Towbin as fee examiner to monitor legal bills in Detroit's Chapter 9 bankruptcy. Mr. Fishman is tasked to ensure the city's legal fees and consulting bills don't become exorbitant. Mr. Fishman also will be charged with making sure the fees are public information. Mr. Fishman's hourly rate will be $600 an hour. That's a discount from his typical hourly rate, which is $675, according to the Free Press. Kapila & Co. on Board Too According to the report, Mr. Fishman can also contract Ft. Lauderdaule, Fla.-based accounting firm Soneet R. Kapila and Kapila & Co. to help monitor fees. The report notes Judge Rhodes capped the average rate of Fishman attorneys and staff who will work on Detroit's case at $430 per hour. He capped the average rate of Kapila associates who will work on the Detroit case at $300 per hour. Free Press says some observers expected Judge Rhodes to appoint law firm Godfrey & Kahn, which served as fee examiner in General Motors' Chapter 11 bankruptcy and expressed interest in the Detroit case. Professional fees topped $120 million in GM's bankruptcy. Free Press relates Mr. Fishman, 59, a native of Bloomington, Ill., has been in private practice since 1980. He served as mediator in several cases, including the Chapter 11 bankruptcies of Lauth Investment Properties. A George Washington University law graduate, he is a past chairman and president of the American Bankruptcy Institute. He could not be reached for comment, according to Free Press. According to the report, Judge Rhodes scheduled a Sept. 10 hearing on a proposed order requiring attorneys and consultants to file monthly invoices with the fee examiner, who would be required to file a report on his findings at least once every three months. If he believes fees are too high, Fishman could recommend a hearing before Judge Rhodes. Jones Day Write Off According to the Free Press, experts have estimated that Detroit's legal fees could top $100 million if the case drags out. The report notes the city's main bankruptcy firm, Jones Day, has already written off millions in bills it does not expect to be paid, officials said. Hourly fees for Jones Day bankruptcy attorneys range from about $425 to more than $1,000, according to the firm's contract with the city. About Detroit, Michigan The city of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The city's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. DETROIT, MI: Bond Insurer Protests Casino Revenue Protections ------------------------------------------------------------- Katy Stech, writing for Daily Bankruptcy Review, reported that the bond insurer caught up in the battle over Detroit's casino tax revenue has asked the city's bankruptcy judge to throw out a restraining order that's keeping millions of dollars flowing to the city. About Detroit, Michigan The city of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The city's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. The Debtor is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. DETROIT, MI: Pension Funds to Object to City's Bankruptcy --------------------------------------------------------- Bernie Woodall, writing for Reuters, reported that Detroit's two public pension funds will file an objection to the city's bankruptcy filing on Michigan constitutional grounds, a representative of the pension boards said. According to the report, the challenge expected from the pension funds is the first to emerge from among several parties likely to object to the city of Detroit's claim that it is bankrupt. For Detroit's Chapter 9 bankruptcy to proceed U.S. Bankruptcy Judge Steven Rhodes, who is overseeing the case, must first find the city has proved it is insolvent and negotiated in good faith with its creditors, or that there were too many creditors to make negotiation feasible, the report noted. In a court filing earlier this month, Detroit released a list of creditors, including current, former and retired workers, that filled 3,504 pages, the report said. If Detroit is ultimately deemed eligible for municipal bankruptcy, it would be the biggest such case in U.S. history. The city's two pension boards will claim that Michigan Governor Rick Snyder violated the state's Constitution when he allowed Detroit's state-appointed emergency manager, Kevyn Orr, to make the bankruptcy filing, the report added. About Detroit, Michigan The city of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The city's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. The Debtor is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. DIGERATI TECHNOLOGIES: Files Motion in Limine in Case Transfer Bid ------------------------------------------------------------------ Digerati Technologies, Inc., filed a motion in limine asking the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, to strike and prohibit the use of Rhodes Holdings, LLC's designation of the June 12, 2013 hearing transcript from Adversary Proceeding Case No. 13-03121 and the June 21, 2013, hearing transcript from the Case No. 2013-CI-02253 pending before the Bexar County District. To recall, Rhodes Holdings filed a motion to transfer venue. Prior to filing the Motion to Transfer Venue, Rhodes Holdings filed pleadings seeking the Court's ruling on an emergency motion to remand in AP Case No. 13-03121. The case was transferred by Court Order to the Southern District of Texas. Rhodes Holdings never sought reconsideration of the ordering transferring the adversary to the Southern District of Texas. Rhodes Holdings then appealed the ruling on its Motion to the Southern District of Texas. The hearing on the Motion for Remand was held and a ruling was issued, incorporating the oral ruling given during the hearing. According to Deirdre Carey Brown, Esq., at Hoover Slovacek LLP, in Houston, Texas, it appears that Rhodes Holding is deliberately making misrepresentations to the Debtor to shut the Debtor out of the Bexar County proceedings to improperly use the proceeding for a fishing expedition without the Debtor being a party to defend or object. Rhodes Holdings seeks to designate the transcripts under Rule 32(a)(3) of the Federal Rules of Civil Procedure and (a)(6). Rule 32 relates to deposition transcripts not hearing transcripts, Ms. Brown asserts. Rhodes Holdings cites to no caselaw that makes Rule 32 applicable to testimony from a court hearing where the Debtor was not a party, Ms. Brown argues. The Debtor is also represented by Edward L. Rothberg, Esq., Melissa A. Haselden, Esq., Mazelle S. Krasoff, Esq., at HOOVER SLOVACEK LLP, in Houston, Texas. About Digerati Technologies Digerati Technologies, Inc., filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 13-33264) in Houston, on May 30, 2013. Digerati -- http://www.digerati-inc.com-- is a diversified holding company which owns operating subsidiaries in the oil field services and the cloud communications industry. Digerati and its subsidiaries maintain Texas Offices in San Antonio and Houston. The Debtor has no independent operations apart from its subsidiaries. The Debtor's subsidiaries include Shift 8 Networks, a cloud communication service, Hurley Enterprises, Inc., and Dishon Disposal, Inc., both oil field services companies. The Debtor disclosed $60 million in assets and $62.5 million in liabilities as of May 29, 2013. Bankruptcy Judge Jeff Bohm oversees the case. Deirdre Carey Brown, Esq., Annie E. Catmull, Esq., Melissa Anne Haselden, Esq., Mazelle Sara Krasoff, Esq., and Edward L Rothberg, at Hoover Slovacek, LLP, in Houston, represent the Debtor as counsel. The Debtor tapped Gilbert A. Herrera and Herrera Partners as the investment banker. DIGITAL GENERATION: Moody's Lowers CFR & Senior Debt Rating to B2 ----------------------------------------------------------------- Moody's Investors Service has downgraded Digital Generation, Inc.'s Corporate Family Rating to B2, Probability of Default Rating to B3-PD and senior secured debt ratings to B2. The rating outlook is changed to developing from stable. Moody's notes that this rating action is not being triggered by DG's announcement on August 12, 2013 that it has entered into an agreement to sell its television business to Extreme Reach, Inc., a cross-media video advertising management platform, for $485 million. Rather, the rating revision reflects Moody's view that although DG's operating performance has recently improved, it remains below Moody's expectations, which were set in July 2011 when the CFR was initially assigned, and will continue to face earnings pressure over the near-term. Since Moody's does not expect the transaction to close until fiscal 2014, the rating also incorporates the possibility of delays in obtaining shareholder and regulatory approvals or from submission of competing bids that may arise. The developing outlook reflects uncertainties surrounding the timing of the transaction. Proceeds from the asset sale will be used to retire the term loan ($395 million outstanding) and distribute $3 per share to DG's shareholders (roughly $83.3 million). Shareholders will also own 100% of the equity of the remaining standalone online advertising business. The transaction, which is subject to shareholder and regulatory approvals, is expected to close during the first quarter of fiscal 2014. Upon transaction close and repayment of outstanding senior secured borrowings, Moody's expects to withdraw all company ratings. DG previously announced in February 2013 that it had concluded its Special Committee review of strategic alternatives, including a partial or complete sale, spin-off or split-off of the business, which at the time, did not result in an offer to purchase the company or any of its divisions. The Board had also adopted a Rights Plan as an effective poison pill against takeovers in September 2012, which expired in March 2013. The rating revision reflects Moody's expectation that DG's financial leverage will be sustained above its 3.75x downgrade trigger over the rating horizon due to lower-than-anticipated EBITDA (assumes DG's TV and online businesses remain in their current form and no debt-financed acquisitions). Although the amended credit agreement requires higher quarterly amortization and the company prepaid $50 million on the term loan during the quarter ending 3/31/2013, Moody's expects adjusted debt-to-EBITDA (3.9x as of 6/30/2013) to remain in the 3.8x to 4x range. This is driven by Moody's revised expectations of EBITDA generation as a result of challenges related to the integration of past acquisitions, continued pricing pressure in the HD sub-segment of the traditional television distribution business and intense competition in online distribution. In March 2013, DG made several amendments to its credit facility including revolver downsizing to $50 million, higher quarterly amortization, interest rate increases of 150 basis points on the term loan and 100 basis points on revolver borrowings, and revision of covenants to allow more cushion. The amendments do provide lender protection given lower absolute debt levels as a result of the $50 million prepayment, higher required quarterly amortization of around $8.6 million during fiscal 2013 and around $6 million thereafter, and higher excess cash flow sweep if leverage (as defined in the credit agreement) exceeds 3x. Nevertheless, Moody's believes these developments indicate the company is facing core business challenges, including margin compression from pricing pressure, exposure to technology risk and heightened competition as the shift to online ad distribution accelerates. Ratings Downgraded: Corporate Family Rating to B2 from B1 Probability of Default Rating to B3-PD from B2-PD $490 Million ($395 Million outstanding) Senior Secured Term Loan due 2018 to B2 (LGD-3, 34%) from B1 (LGD-3, 33%) $50 Million Senior Secured Revolver due 2016 to B2 (LGD-3, 34%) from B1 (LGD-3, 33%) Ratings Rationale: The ratings downgrade was prompted by DG's underperformance relative to Moody's expectations when the CFR was initially assigned in July 2011, and its view that the company will continue to struggle to meaningfully expand EBITDA as a result of recent developments within the industry. Given the company's small scale and low visibility into future revenue generation, Moody's believes a more conservative leverage compared to global cross- industry B2-rated peers is appropriate. Although Moody's expects DG to generate positive free cash flow of around $40 million over the next twelve months, it is concerned the company may not have adequate liquidity to make necessary investments in the business to stay competitive in online ad distribution after making higher quarterly principal repayments as required by the amended credit agreement. The company's rating is supported by its installed equipment base at over 95% of US television and radio broadcasters, and its established relationships with advertising agencies, publishers, broadcasters and advertisers. DG's neutral position has allowed it to develop relationships with a wide network of advertising agencies and advertisers, which positions it well to expand its television advertising business to online platforms as the shift of advertising dollars from traditional print and broadcasting to online media accelerates. Standard Definition (SD) Volume Declines and High Definition (HD) Pricing Pressures in TV Segment Although revenue generated by the mature television segment has remained relatively stable as the company is capturing the shift from SD to HD deliveries, which is higher margin, the increase in HD volume has only partially offset the decrease in price. HD revenue is vulnerable to rapid margin erosion due to pressures to keep pricing competitive in light of increased competition including providers of cloud-based services. Although the average price of HD deliveries remains around 7 times that of SD, HD pricing has dropped 20%-25% each quarter from prior year, compressing margins. Moody's expects revenue generated by the TV segment will constitute less than 50% of total revenue by fiscal 2014. Positioned to Benefit from Shift of Ad Dollars Online But Higher Technology, Competitive and Regulatory Risks As the Number two provider of online distribution services, behind Google's DoubleClick, DG is positioned to capture some share of growing demand for online content distribution globally and offset revenue decline in the traditional TV content distribution segment. However, Moody's believes the company will be more vulnerable to technology shifts with the emergence of multiple platforms, some of which are less optimal for ad content distribution. As users increasingly connect to the Internet using devices other than traditional PCs, such as mobile phones or game consoles, advertisers and distributors will have more difficulty collecting data to analyze. Since DG's MediaMind platform creates value for clients by helping them manage different advertising channels, it will need to continually invest in product development to stay relevant in a rapidly evolving industry. However, as the company services interest expense and makes higher amortization payments on the term loan, cash flow may not be sufficient to fund the necessary R&D investments, capital expenditures and tuck-in technology acquisitions. With AOL's recently announced purchase of Adap.tv, a third-party programmatic video advertising firm that matches advertisers with video publishers via an exchange, Moody's expects DG will increasingly face competitors with significantly more financial resources as its smaller rivals are acquired by larger, deep- pocketed entrants. Moody's also believes Extreme Reach may become a stronger competitor against DG in the online segment, especially after acquiring customer relationships through DG's TV distribution business. Although DG's MediaMind platform is currently more sophisticated and well-recognized in the online space, Moody's expects Extreme Reach, with the backing of its new financial sponsor, to invest in developing its online product offerings. Further, Moody's believes there is meaningful regulatory risk if online advertisement distributors become legally restricted from using tools, such as cookies and tags, to gather data. Moody's believes much of DG's value to clients comes from the analysis of data that allow it to profile Internet users and help clients target their campaign to the desired audience. If it becomes unlawful in any of DG's markets to use such data gathering technologies due to concerns about privacy and security, Moody's believes a valuable functionality of its online ad campaign management platform will be lost. Consolidation Among Advertising Agencies Expected to Squeeze Ad Distributors' Margins Moody's believes DG will face increasing pricing pressure with the recent trend of consolidation among advertising agencies, which are the company's main direct clients. There has been significant acquisition activity among advertising agencies, leaving only a handful of major players. In July 2013, Omnicom Group Inc. (Baa1 stable) and Publicis Groupe SA (Baa2 review for upgrade) announced they have agreed to enter a merger of equals and expect $500 million of annual cost synergies. Moody's believes much of the benefit from the combined scale will be derived from negotiating better ad rates for customers' media placements across various distribution platforms. As a major ad distributor with relationships with both Omnicom and Publicis, Moody's expects DG to be pressured to reduce its prices. The Omnicom Publicis merger could lead to future asset purchases by the remaining agencies, consolidating the industry even further and allowing the few remaining players to actively leverage their competitive position to negotiate lower prices in the distribution of their content. Delays in Integrating Multiple Acquisitions Hurt Relationships with Clients DG's strategy historically has been to grow through acquisitions and the company has made five acquisitions (North Country, Peer39, Eye Wonder, MediaMind and MIJO) since April 2011. The company has faced significant challenges in the integration of multiple acquired platforms, particularly in combining the MediaMind (July 2011 for $499 million cash) and Eye Wonder (September 2011 for $61 million) platforms. Operational efficiency and dependable customer service are crucial for content distributors like DG, so the company's brand image suffered as result of delays in migrating clients to the new platform. However, Moody's notes the company has launched a rebranding campaign, which should help it win back some customers lost during the integration process. Although Moody's does not anticipate another large acquisition in the near term, it believes smaller tuck-in acquisitions to enhance DG's product offerings and technology capabilities are possible. Rating Outlook Developing. Moody's believes DG is appropriately positioned within the B2 rating category since it will continue to repay the term loan while EBITDA remains under pressure as the business model transitions to an online distributor of ad content. Nonetheless, with the recent announcement to sell the television distribution business, the developing outlook recognizes two potential paths over the near-term due to uncertainties surrounding the transaction: (1) the likelihood that the term loan will be repaid in full, which would be a positive outcome for debtholders; or (2) possible delays in closing (or failure to close) the transaction, prolonging the continued earnings deterioration in the television business and increasing pressure to return value to shareowners, which could result in a negative outcome to debtholders. Moody's believes DG's server-based distribution business will remain relatively stable as increasing volumes should offset pricing pressures and the company will continue to capture online distribution business as ad dollars shift to new media. Moody's expects total debt-to-EBITDA ratios will be sustained between 3.8x and 4x (including Moody's standard adjustments) over the rating horizon. Moody's also expects the company will maintain good liquidity with the potential for continued tuck-in acquisitions. What Could Change the Rating -- Up Ratings could be upgraded if there are signs of price stabilization across the company's various distribution services and total debt-to-EBITDA is sustained comfortably below 3.5x, with free cash flow-to-debt ratios greater than 18%. What Could Change the Rating -- Down Ratings could be downgraded if revenue or EBITDA fall short of Moody's revised expectations due to general economic weakness, decreasing demand from ad agencies, or pricing erosion resulting in total debt-to-EBITDA ratios being sustained above 4.5x (including Moody's standard adjustments). Heightened acquisition activity or margin erosion resulting in weakened liquidity or deterioration in EBITDA cushion relative to financial maintenance covenant could also lead to a downgrade. The principal methodology used in this rating was the Global Business & Consumer Service Industry Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Irving, TX, Digital Generation, Inc. (formerly known as DGFastChannel, Inc.) is a leading ad management and distribution platform connecting nearly 14,000 global advertisers and 7,400 agencies with their targeted audiences through a network of 5,900 television broadcast stations and 16,000 web publishers in 78 countries. DG's television division (around 61% of total revenue) utilizes network and content management technologies, creative and production resources, digital asset management and syndication services that enable advertisers and agencies to work more competitively. The company's online division (around 39% of total revenue), allows marketers to manage online advertising campaigns with data driven metrics. DG is publicly traded and shares are widely held with Scott K. Ginsburg (Executive Chairman) owning approximately 10.2% of common shares and voting control. For the twelve months ended June 30, 2013, revenue totaled $386 million. DYNASIL CORP: Incurs $366,000 Net Loss in June 30 Quarter --------------------------------------------------------- Dynasil Corporation of America filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $366,360 on $11.32 million of net revenue for the three months ended June 30, 2013, as compared with a net loss of $331,900 on $12.08 million of net revenue for the same period during the prior year. For the nine months ended June 30, 2013, the Company incurred a net loss of $7.98 million on $32.36 million of net revenue, as compared with a net loss of $546,572 on $36.51 million of net revenue for the same period a year ago. The Company reported a net loss of $4.30 million for the year ended Sept. 30, 2012, as compared with net income of $1.35 million during the prior fiscal year. The Company's balance sheet at June 30, 2013, showed $27.74 million in total assets, $16.82 million in total liabilities and $10.92 million in total stockholders' equity. Bankruptcy Warning "If our lenders were to accelerate our debt payments, our assets may not be sufficient to fully repay the debt and we may not be able to obtain capital from other sources at favorable terms or at all. If additional funding is required, this funding may not be available on favorable terms, if at all, or without potentially very substantial dilution to our stockholders . If we do not raise the necessary funds, we may need to curtail or cease our operations, sell certain assets and/or file for bankruptcy, which would have a material adverse effect on our financial condition and results of operations," the Company said in the periodic filing. A copy of the Form 10-Q is available for free at: http://is.gd/8DNweU About Dynasil Watertown, Mass.-based Dynasil Corporation of America (NASDAQ: DYSL) -- http://www.dynasil.com/-- develops and manufactures detection and analysis technology, precision instruments and optical components for the homeland security, medical and industrial markets. McGladrey LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2012, citing default with the financial covenants under the Company's outstanding loan agreements and a loss from operations which factors raise substantial doubt about the Company's ability to continue as a going concern. EASTMAN KODAK: Court Approves Estimation of BNY Mellon Claims ------------------------------------------------------------- U.S. Bankruptcy Judge Allan Gropper issued an order temporarily allowing each of the pre-bankruptcy claims of the Bank of New York Mellon in the amount of $2,000 for purposes of voting on Eastman Kodak Co.'s Chapter 11 reorganization plan. The bank oversees the trusts, which were formed to hold the assets of the Kodak employees' investment plan and retirement plan sponsored by the company, and another pension plan sponsored by its subsidiary, Qualex Inc. BNY Mellon's claims stemmed from a trust agreement it entered into with Qualex, and two separate trust agreements with Kodak. The claims were filed against the companies as "unliquidated and contingent." About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. At the end of April 2013, Kodak filed a proposed reorganization plan offering 85 percent of the stock to holders of the remaining $375 million in second-lien notes. The other 15 percent is for unsecured creditors with $2.7 billion in claims and retirees who have a $635 million claim from the loss of retirement benefits. EASTMAN KODAK: Bayer Unit Challenges Ch. 11 Plan Over $250MM Claim ------------------------------------------------------------------ Law360 reported that a Bayer AG subsidiary objected to a plan aimed at taking Rochester, N.Y.-based Eastman Kodak Co. out of Chapter 11 protection, arguing that the company's reorganization plan threatened its $250 million claim covering environmental liabilities. STWB Inc. lobbed an objection to Kodak's reorganization plan, which was originally filed in May and subsequently tweaked, saying that the plan left the fate of its claims unclear, according to the objection filed in New York bankruptcy court, the report related. Its claims stem from Kodak's obligation to cover damages, among others, the report added. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. At the end of April 2013, Kodak filed a proposed reorganization plan offering 85 percent of the stock to holders of the remaining $375 million in second-lien notes. The other 15 percent is for unsecured creditors with $2.7 billion in claims and retirees who have a $635 million claim from the loss of retirement benefits. EASTMAN KODAK: Obtains Court Approval to Assume IP Contracts ------------------------------------------------------------ Eastman Kodak Co. obtained court approval of its agreements with tech firms to take over their intellectual property contracts as part of its proposed plan to get out of bankruptcy protection. The firms are Dai Nippon Printing Co. Ltd., Moxtek Inc., Nikon Corp., Technicolor Inc., Oracle Corp. and Ricoh Company Ltd. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. At the end of April 2013, Kodak filed a proposed reorganization plan offering 85 percent of the stock to holders of the remaining $375 million in second-lien notes. The other 15 percent is for unsecured creditors with $2.7 billion in claims and retirees who have a $635 million claim from the loss of retirement benefits. EASTMAN KODAK: Says Plan Satisfies Confirmation Requirements ------------------------------------------------------------ Eastman Kodak Co. is asking U.S. Bankruptcy Judge Allan Gropper to confirm its proposed plan to get out of Chapter 11 protection, saying it satisfies the requirements for confirmation under U.S. bankruptcy law. In a court filing, Kodak said its reorganization plan satisfies one important provision of Section 1129 of the Bankruptcy Code, which requires that a plan be feasible to avoid another bankruptcy filing. The company said it is confident that after it officially exits bankruptcy, the reorganized Kodak will be able to manage its debt since the plan proposes a "sound and adequate post-emergence capital structure." Kodak pointed out that the reorganized company under the plan will have approximately $695 million of funded debt and an asset-based revolving credit facility with commitments of $200 million. "The emergence credit facilities and global cash on hand will provide sufficient liquidity and available working capital for the reorganized debtors to operate their businesses," the company said. Kodak also noted that the agreement it entered into with its U.K. pension fund to settle $2.8 billion of claims resolves a "significant proportion" of its post-employment benefits obligations. The proposed plan also satisfies other provisions of Section 1129 including those governing the classification of claims, disclosure of identity of the new management, and payment of fees and retiree benefits, the company further said. Separately, Ahsan Zia of Tinton Falls, N.J., dropped his objection to the plan filed on August 16. In his objection, the Kodak shareholder accused George Karfunkel, one of the proposed appointees to the Board of Directors of the reorganized company, of breach of duties, and alleged that the plan was developed in bad faith. Judge Gropper is slated to hold a hearing on Aug. 20, at 11:00 a.m. (ET), to consider approval of the restructuring plan. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. At the end of April 2013, Kodak filed a proposed reorganization plan offering 85 percent of the stock to holders of the remaining $375 million in second-lien notes. The other 15 percent is for unsecured creditors with $2.7 billion in claims and retirees who have a $635 million claim from the loss of retirement benefits. EASTMAN KODAK: Creditors Support Plan of Reorganization ------------------------------------------------------- Kodak's creditors have voted in favor of its Plan of Reorganization, and with this positive outcome, the company is well positioned to seek confirmation of its Plan of Reorganization at the confirmation hearing scheduled for August 20 before the U.S. Bankruptcy Court for the Southern District of New York. In its filings with the Bankruptcy Court, Kodak reported that all classes of the company's eligible creditors voted strongly in favor of the company's Plan. "Our creditors have clearly told us we have the right strategy for the future of Kodak. This significant endorsement of our Plan enables Kodak to move toward emergence with the support of our creditors," said Antonio M. Perez, Chairman and Chief Executive Officer. "We are on task and on schedule. We look forward to our confirmation hearing next week and then to emerging from Chapter 11 as a technology company focused on imaging for business." The confirmation hearing on Kodak's Plan of Reorganization is currently scheduled for 11:00 a.m. ET on August 20, 2013. Hurdle Cleared Jacqueline Palank, writing for Daily Bankruptcy Review, reported that Eastman Kodak said most of its creditors have voted in favor of the company's restructuring plan, clearing a hurdle on the path out of bankruptcy. Law360 reported that Eastman Kodak Co. said that its "consensus" Chapter 11 reorganization plan should be confirmed, on the heels of creditors voting "strongly in favor" of the plan and a New York bankruptcy judge again denying a shareholder bid for an equity committee. Rochester, N.Y.-based Kodak plans to focus on commercial printing services when it emerges from bankruptcy by shedding legacy costs and bolstering its liquidity with, among other measures, a $650 million spinoff of its document imaging business to its British retirees. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. At the end of April 2013, Kodak filed a proposed reorganization plan offering 85 percent of the stock to holders of the remaining $375 million in second-lien notes. The other 15 percent is for unsecured creditors with $2.7 billion in claims and retirees who have a $635 million claim from the loss of retirement benefits. EASTMAN KODAK: Names Nine People for Its Post-Bankruptcy Board -------------------------------------------------------------- Ben Fox Rubin, writing for The Wall Street Journal, reported that Eastman Kodak Co. selected nine people to serve on its new board after it emerges from bankruptcy, including six new members. The report related that Kodak, of Rochester, N.Y., sought Chapter 11 protection in January 2012. Since then, it has been working to sell assets and shed unprofitable business lines to reorganize around its commercial-imaging business, which includes digital printers and motion-picture film. The new board members will be Mark S. Burgess, chairman of packaging-products manufacturer Clondalkin Group; Matt Doheny, president of investment firm North Country Capital LLC; John Janitz, chairman of investment firm Evergreen Capital Partners LLC; George Karfunkel, chairman of consultancy Sabr Group; Jason New, senior managing director of private-equity firm Blackstone Group L.P. (BX) and Derek Smith, managing principal of investment firm BlueMountain Capital Management, the report related. Chief Executive Antonio M. Perez, a director since October 2004, and directors James V. Continenza and William G. Parrett will remain on the board, the report said. The term of the new board members will start once Kodak's emerges from bankruptcy protection, and is subject to the confirmation of the company's reorganization plan by a bankruptcy court. The current board will remain in place until the new board takes over. The new board members would serve until the company's next annual meeting. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. At the end of April 2013, Kodak filed a proposed reorganization plan offering 85 percent of the stock to holders of the remaining $375 million in second-lien notes. The other 15 percent is for unsecured creditors with $2.7 billion in claims and retirees who have a $635 million claim from the loss of retirement benefits. ECOTALITY INC: Robbins Geller Files Securities Class Action ----------------------------------------------------------- Robbins Geller Rudman & Dowd LLP on Aug. 15 disclosed that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of ECOtality, Inc. common stock during the period between April 16, 2013 and August 9, 2013. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from August 15, 2013. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/ecotality/ Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges ECOtality and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ECOtality is an electric transportation and storage technologies company that sells electric vehicle ("EV") supply equipment (or "EVSE") through its customer-facing brand of smart EV chargers, Blink. The complaint alleges that during the Class Period, defendants issued false and misleading statements regarding the Company's business and future prospects. Specifically, the complaint alleges that defendants concealed the following material adverse facts from the investing public during the Class Period: (a) due to design and manufacturing defects, some of ECOtality's charging systems had been causing overheating and even the melting of connector plugs when charging vehicles; (b) despite efforts undertaken to transition the Company's business model from subsidizing installations of EVSEs under the Department of Energy's ("DOE") EV Project to regular commercial sales and installations, ECOtality was not achieving enough commercial sales and installations to sustain operations in the second half of 2013; (c) due to "unacceptable performance shortfalls during prototype verification testing," ECOtality was not on track to meet the scheduled release of a new Minit Charger product for industrial customers in the second half of 2013; (d) due to would- be potential investors' unwillingness to provide additionally needed financing, ECOtality was unable to obtain the requisite financing to meet its short-term and long-term capital needs and would be unable to meet its obligations to the DOE's EV Project and the DOE would suspend all payments to the Company; and (e) due to non-compliance with the nation's labor laws, the Company was liable to the U.S. Department of Labor for $855,000 for the payment of back wages and damages. On August 12, 2013, before the opening of trading, ECOtality announced that the Company had hired a "restructuring" adviser to evaluate options, including new financing, a possible sale of the Company or bankruptcy filing. The Company's Current Report filed with the SEC on Form 8-K that day emphasized, in pertinent part, that a bankruptcy filing could be made "in the very near future" following, among other things, disappointing sales and suspension of payments from the federal government. On this news, the price of ECOtality common stock, which had traded as high as $2.40 per share in intraday trading during the Class Period, plummeted more than 87% from that level to close at $0.30 per share when trading resumed on August 12, 2013. Plaintiff seeks to recover damages on behalf of all purchasers of ECOtality common stock during the Class Period. The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Robbins Geller -- http://www.rgrdlaw.com-- represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi- employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. ELEPHANT TALK: Files Copy of Investor Presentation with SEC ----------------------------------------------------------- Elephant Talk Communications Corp. will hold presentations to investors relating to the Company and its recent developments. The form of slide show presentation that will be used by management of the Company to describe the business is available for free at http://is.gd/4sKd0W About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk disclosed a net loss attributable to the Company of $23.13 million in 2012, a net loss attributable to the Company of $25.31 million in 2011 and a net loss attributable to the Company of $92.48 million in 2010. The Company's balance sheet at March 31, 2013, showed $34.47 million in total assets, $18.29 million in total liabilities, and $16.18 million in total stockholders' equity. BDO USA, LLP, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has suffered recurring losses from operations has an accumulated deficit of $203.3 million and continues to generate negative cash flows that raise substantial doubt about its ability to continue as a going concern. ENDICOTT INTERCONNECT: Creditors Seek to Probe 'Insider' Dealings ----------------------------------------------------------------- Marie Beaudette, writing for DBR Small Cap, reported that creditors of microelectronics company Endicott Interconnect Technologies Inc. are seeking to probe the company's dealings with minority shareholder James T. Matthews, whose Integrian Holdings LLC has offered to kick off bidding for the company's assets at an auction next month. About Endicott Interconnect Endicott Interconnect Technologies Inc., filed a Chapter 11 petition (Bankr. N.D.N.Y. Case No. 13-bk-61156) in Utica, New York, on July 10, 2013, to sell the business before cash runs out by the end of September. Based in Endicott, New York, and formed in 2002, EIT is the successor to the microelectronics division of IBM Corp. The products are used in aerospace, defense and medication applications, among others. The company sought Chapter 11 bankruptcy protection after suffering $100 million in operating losses in the last four years. In addition to $16 million in secured claims, trade suppliers are owed $34 million. There is another $32 million owing for loans made by shareholders. The company said the book value of property is $36 million. ENDICOTT INTERCONNECT: Creditors Seek Ability to Bid $5-Mil. Debt ----------------------------------------------------------------- Marie Beaudette, writing for DBR Small Cap, reported that David and William Maines want to be able to credit bid the $5 million they say microelectronics company Endicott Interconnect Technologies Inc. owes them at an auction for its assets. About Endicott Interconnect Endicott Interconnect Technologies Inc., filed a Chapter 11 petition (Bankr. N.D.N.Y. Case No. 13-bk-61156) in Utica, New York, on July 10, 2013, to sell the business before cash runs out by the end of September. Based in Endicott, New York, and formed in 2002, EIT is the successor to the microelectronics division of IBM Corp. The products are used in aerospace, defense and medication applications, among others. The company sought Chapter 11 bankruptcy protection after suffering $100 million in operating losses in the last four years. In addition to $16 million in secured claims, trade suppliers are owed $34 million. There is another $32 million owing for loans made by shareholders. The company said the book value of property is $36 million. ENDICOTT INTERCONNECT: Hearing Today on Cash, Sale -------------------------------------------------- The Hon. Diane Davis of the U.S. Bankruptcy Court for the Northern District of New York, according to Endicott Interconnect Technologies, Inc., et al.'s case docket, adjourned to Aug. 20, 2013, the hearing to consider the Debtors' request for continued access to cash collateral in which secured creditors assert an interest. The hearing was previously set for Aug. 13. As of the Petition Date, EIT is indebted to secured creditors Integrian Holdings, LLC, M&T Bank and William and David Maines. The Court has authorized, on an interim basis, the Debtors' use of cash collateral until Aug. 23, 2013, or on the occurrence of a termination date. The Debtors will not, without the prior written consent of the secured creditors, use cash collateral in an amount that exceeds any particular authorized line item on the budget by more than 10%. As adequate protection from any diminution in the value of the lenders' collateral, the Debtor will grant the secured creditors adequate protection liens on all postpetition collateral. Sale of All Assets The Bankruptcy Court, according to Endicott's case docket, adjourned to Aug. 20, 2013, at 1 p.m., the hearing to consider the Debtors' motion for authorization to sell substantially all assets. On Aug. 6, Tracy Hope Davis, U.S. Trustee for Region 2, requested that the Court deny approval of the Debtors' sale motion, stating that: 1. the motion does not adequately meet the standard of fairness applied to an insider transaction; 2. the motion lacks sufficient disclosure of the terms of the proposed insider stalking horse; 3. the motion fails to show a clear benefit to the estate; and 4. the sale does now allow an exclusion from the sale for Chapter 5 causes of action or Debtor's cash on hand. As reported in the Troubled Company Reporter on July 18, 2013, the Debtors submitted papers July 15 setting up an auction where the business will be sold for $250,000 cash absent a better offer. According to a report by Bill Rochelle, the bankruptcy columnist for Bloomberg News, the purchase offer comes from a company owned by minority shareholder James T. Matthews. In addition to the cash, he will assume a $6.1 million secured term loan of which he is already the owner. There is about $10 million owing on two other secured loans. A hearing was initially scheduled for July 25 in U.S. Bankruptcy Court in Utica, New York, for approval of sale procedures. The company wanted competing bids by Aug. 15, followed by an Aug. 19 auction and a hearing on Aug. 20 for approval of sale. Endicott Interconnect Technologies Inc., filed a Chapter 11 petition (Bankr. N.D.N.Y. Case No. 13-61156) in Utica, New York, on July 10, 2013, to sell the business before cash runs out by the end of September. Based in Endicott, New York, and formed in 2002, EIT is the successor to the microelectronics division of IBM Corp. The products are used in aerospace, defense and medication applications, among others. The company sought Chapter 11 bankruptcy protection after suffering $100 million in operating losses in the last four years. In addition to $16 million in secured claims, trade suppliers are owed $34 million. There is another $32 million owing for loans made by shareholders. The company said the book value of property is $36 million. Judge Diane Davis oversees the case. Stephen A. Donato, Esq., at Bond, Schoeneck & King, PLLC, serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by David W. Van Rossum, chief restructuring officer. The Official Committee of Unsecured Creditors is represented by Robert M. Hirsh, Esq., at Arent Fox LLP as counsel. ENDICOTT INTERCONNECT: Panel Taps Arent Fox as Bankruptcy Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Endicott Interconnect Technologies, Inc., et al., asks the Bankruptcy Court for permission to employ Arent Fox LLP as its attorneys. Robert M. Hirsh, Esq., will be primarily responsible for Arent Fox's representation of the Committee. The hourly rates of Arent Fox's personnel are: Partners $495 - $800 Of Counsel $485 - $765 Associates $275 - $525 Paraprofessionals $150 - $270 To the best of the Committee's knowledge, Arent Fox is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Tracy Hope Davis, U.S. Trustee for Region 2, appointed seven creditors to serve in the Official Committee of Unsecured Creditors: 1. Avnet Electronics Marketing Attn: Dennis E. Losik 5400 Prairie stone Parkway Hoffman Estates, IL 60192 Tel: (847)-396-7401 2. Arrow Electronics, Inc. Attn: Mike Fassula, credit manager 7459 South Lima Street Englewood, Co 80112-3879 Tel: (303) 566-7042 3. Acbel Polytech, Inc. Attn: Victor I. Chang and Mark Harty c/o LCS & Partners 5Fl. No. 8 Sinyi Road Section 5, Taipei Taiwan Tel: +8862-2729-8000 4. Cadence Design Systems, Inc. Attn: Lee E. Woodard, Esq. c/o Harris Beach, PLLC 333 West Washington Street - Suite 200 Syracuse, NY 13202 Tel: (315) 423-7100 5. Orbotech, Inc. Attn: Michael M. Zizza, Esq., general counsel 44 Manning Road Billerica, MA 01821 Tel: (978) 764-3577 6. Tyco Electronics Attn: MaryAnn Brereton, Esq., general counsel 250 Industrial Way West Eatontown, NJ 07724 Tel: (732) 578-7365 7. High Performance Copper Foil, Inc. Attn: John Callahan, president 2555 W. Fairview Street, Suite 103 Chandler, AZ 85224 Tel: (480) 223-0871 About Endicott Interconnect Endicott Interconnect Technologies Inc., filed a Chapter 11 petition (Bankr. N.D.N.Y. Case No. 13-61156) in Utica, New York, on July 10, 2013, to sell the business before cash runs out by the end of September. Based in Endicott, New York, and formed in 2002, EIT is the successor to the microelectronics division of IBM Corp. The products are used in aerospace, defense and medication applications, among others. The company sought Chapter 11 bankruptcy protection after suffering $100 million in operating losses in the last four years. In addition to $16 million in secured claims, trade suppliers are owed $34 million. There is another $32 million owing for loans made by shareholders. The company said the book value of property is $36 million. Judge Diane Davis oversees the case. Stephen A. Donato, Esq., at Bond, Schoeneck & King, PLLC, serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by David W. Van Rossum, chief restructuring officer. The Official Committee of Unsecured Creditors is represented by Robert M. Hirsh, Esq., at Arent Fox LLP as counsel. ENDICOTT INTERCONNECT: Taps Feather Lane Financial Advisor ---------------------------------------------------------- Endicott Interconnect Technologies, Inc., et al., ask the U.S. Bankruptcy for the Northern District of New York for permission to employ Feather Lane Advisors LLC as financial advisors. Feather Lane will, among other things: -- review the Debtors' financial plan, strategic plans and business alternatives; -- review and assess previous activities undertaken to identify strategic and financial partners; and -- identify potential additional strategic and financial partners. Stephan A. Leccese, founder and chief executive officer of Feather Lane, tells the Court that Feather Lane has agreed to provide its services for a flat fee structure of $20,000 per month, plus reimbursement of expenses. Mr. Leccese will be the primary person responsible for providing services at $250 to $500 per hour or $2,000 to $3,000 per day, depending upon the nature of the engagement and the services required. Mr. Leccese adds that Feather Lane has not received any retainer or advance fee payment with respect to the engagement. Prior to the Petition Date, Feather Lane received approximately $125,540 from the Debtors for services rendered and expenses incurred prepetition. Feather Lane has agreed to waive approximately $15,000 in fees and $9,459 in expenses which were incurred prepetition. Mr. Leccese assures the Court that Feather Lane is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. He may be reached at: Stephan Leccese FEATHER LANE GROUP, LLC 388 Feather Lane East Williston, NY 11596 Tel: (516) 418-2215 E-mail: leccese@featherlanegroup.com About Endicott Interconnect Endicott Interconnect Technologies Inc., filed a Chapter 11 petition (Bankr. N.D.N.Y. Case No. 13-61156) in Utica, New York, on July 10, 2013, to sell the business before cash runs out by the end of September. Based in Endicott, New York, and formed in 2002, EIT is the successor to the microelectronics division of IBM Corp. The products are used in aerospace, defense and medication applications, among others. The company sought Chapter 11 bankruptcy protection after suffering $100 million in operating losses in the last four years. In addition to $16 million in secured claims, trade suppliers are owed $34 million. There is another $32 million owing for loans made by shareholders. The company said the book value of property is $36 million. Judge Diane Davis oversees the case. Stephen A. Donato, Esq., at Bond, Schoeneck & King, PLLC, serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by David W. Van Rossum, chief restructuring officer. The Official Committee of Unsecured Creditors is represented by Robert M. Hirsh, Esq., at Arent Fox LLP as counsel. ENERSYS: Moody's Raises Corp. Family Rating to Ba1; Outlook Stable ------------------------------------------------------------------ Moody's Investors Service upgraded EnerSys' Corporate Family Rating to Ba1 from Ba2 and Probability of Default Ratings to Ba1- PD from Ba2-PD. The company's Senior Secured Bank Credit Facility was upgraded to Baa2 from Baa3 while the company's $172.5 million 3.375% Convertible Notes due 2038 (currently $157 million) were upgraded to Ba2 from B1. The company's Speculative Grade Liquidity rating was affirmed at SGL-1. The rating outlook is stable. Upgrades: Issuer: EnerSys Corporate Family Rating, Upgraded to Ba1 from Ba2 Probability of Default Rating, Upgraded to Ba1-PD from Ba2-PD Senior Unsecured Conv./Exch. Bond/Debenture June 1, 2038, Upgraded to Ba2 (LGD5, 89%) from B1 (LGD5, 88% ) Senior Secured Bank Credit Facility, Upgraded to Baa2 (LGD2, 16%) from Baa3 (LGD2, 15%) Affirmations: Issuer: EnerSys Speculative Grade Liquidity Rating, Affirmed SGL-1 Outlook Actions: Issuer: EnerSys Outlook, Changed To Stable From Positive Ratings Rationale: The ratings upgrade reflects the company's strong credit metrics and the expectation that management's philosophy will continue to result in a conservative balance sheet with Debt to EBITDA under 2x and share repurchases remaining being funded primarily from operations. Moreover, good liquidity, positive free cash flow generation, and extensive customer diversity also help balance against its high product concentration, technological obsolescence risk, and uncertainty surrounding demand for its significant European operations. Although Enersys is anticipated to supplement its organic growth rate with acquisitions, the rating reflects the expectation that the size and pace of the acquisitions will allow the company to maintain a strong balance sheet even after incorporating acquisitions. The rating also considers Enersys' product concentration as a manufacturer of lead batteries and anticipates only slow erosion to new battery technologies. EnerSys' Speculative Grade Liquidity rating of SGL-1 reflects Moody's assessment that the company will maintain a very good liquidity position over the next 12-18 months. The company reported a sizeable cash balance of approximately $240 million as of June 30, 2013. Moreover, Moody's expects that the company will generate operating cash flow well in excess of its capital spending and enjoy further free cash flow generation before acquisitions. Its $350 million revolving credit facility, due September 2018, provides sufficient back-up liquidity for a company its size in Moody's view. The company had $350 million of undrawn committed credit lines at the end of June. The company also has ample cushion under its financial covenants as prescribed under its revolving credit facility. The ratings are unlikely to be upgraded over the intermediate term given the company's product concentration and the expectation for increasing leverage due to its strategy to enhance growth with acquisitions. As a result, a change in the rating outlook to positive is unlikely over the short term. Downward rating pressure including a change in outlook to negative could occur if its European operations weaken meaningfully or if the company makes large debt financed acquisitions particularly if these result in Debt to EBITDA increasing to over 2x for longer than just a short period of time. Aggressive acquisitions where the company pays large purchase multiples can also provide ratings pressure. Moreover, although Moody's does not anticipate a large acquisition, it notes that large acquisitions include a level of integration and execution risks even if funded with some equity. An inability to manage through the volatility of lead prices or an adverse change in the competitive climate due to a technological breakthrough in battery technology by its competitors could also adversely affect the ratings. The principal methodology used in this rating was the Global Manufacturing Industry Methodology published in December 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. EnerSys, headquartered in Reading, Pennsylvania, is the world's largest manufacturer, marketer and distributor of industrial batteries. The company also manufactures related products such as chargers, power equipment and battery accessories and provides aftermarket and customer-support services for industrial batteries. Revenues for the LTM period through June 30, 2013 totaled almost $2.3 billion. EXCEL MARITIME: Employs Donlin Recano as Solicitation Agent ----------------------------------------------------------- Excel Maritime Carriers LTD., et al., sought and obtained authority to employ Donlin, Recano & Company, Inc., as solicitation agent, to be paid the following hourly rates: senior bankruptcy consultant at $175, consultant at 155 to 175, case manager at 115 to 150, programming consultant at 95 to 120, analyst at 70 to 110 and clerical at 25 to 40. About Excel Maritime Based in Athens, Greece, Excel Maritime Carriers Ltd. -- http://www.excelmaritime.com/-- is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax vessels) with a total carrying capacity of approximately 3.9 million DWT. Excel Class A common shares have been listed since Sept. 15, 2005, on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. The company blamed financial problems on low charter rates. The balance sheet for December 2011 had assets of $2.72 billion and liabilities totaling $1.16 billion. Excel owes $771 million to secured lenders with liens on almost all assets. There is $150 million owing on 1.875 percent unsecured convertible notes. Excel Maritime, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 13-bk- 23060) on July 1, 2013, in New York after signing an agreement where secured lenders owed $771 million support a reorganization plan filed alongside the petition. Excel, which sought bankruptcy with a number of affiliates, has tapped Skadden, Arps, Slate, Meagher & Flom LLP, as counsel; Miller Buckfire & Co. LLC, as investment banker; and Global Maritime Partners Inc., as financial advisor. A five-member official committee of unsecured creditors was appointed by the U.S. Trustee. EXCEL MARITIME: Hires Global Maritime as Financial Advisor ---------------------------------------------------------- Excel Maritime Carriers LTD., et al., sought and obtained authority to employ Global Maritime Partners, Inc., as financial advisor to be paid an $80,000 monthly and $1.15 million success fee. About Excel Maritime Based in Athens, Greece, Excel Maritime Carriers Ltd. -- http://www.excelmaritime.com/-- is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax vessels) with a total carrying capacity of approximately 3.9 million DWT. Excel Class A common shares have been listed since Sept. 15, 2005, on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. The company blamed financial problems on low charter rates. The balance sheet for December 2011 had assets of $2.72 billion and liabilities totaling $1.16 billion. Excel owes $771 million to secured lenders with liens on almost all assets. There is $150 million owing on 1.875 percent unsecured convertible notes. Excel Maritime, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 13-bk- 23060) on July 1, 2013, in New York after signing an agreement where secured lenders owed $771 million support a reorganization plan filed alongside the petition. Excel, which sought bankruptcy with a number of affiliates, has tapped Skadden, Arps, Slate, Meagher & Flom LLP, as counsel; Miller Buckfire & Co. LLC, as investment banker; and Global Maritime Partners Inc., as financial advisor. A five-member official committee of unsecured creditors was appointed by the U.S. Trustee. EXCEL MARITIME: Taps Miller Buckfire as Financial Advisor --------------------------------------------------------- Excel Maritime Carriers LTD., et al., sought and obtained authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Miller Buckfire & Co., LLC, as financial advisor and investment banker, to be paid a monthly financial advisory fee of $125,000. About Excel Maritime Based in Athens, Greece, Excel Maritime Carriers Ltd. -- http://www.excelmaritime.com/-- is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax vessels) with a total carrying capacity of approximately 3.9 million DWT. Excel Class A common shares have been listed since Sept. 15, 2005, on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. The company blamed financial problems on low charter rates. The balance sheet for December 2011 had assets of $2.72 billion and liabilities totaling $1.16 billion. Excel owes $771 million to secured lenders with liens on almost all assets. There is $150 million owing on 1.875 percent unsecured convertible notes. Excel Maritime, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 13-bk- 23060) on July 1, 2013, in New York after signing an agreement where secured lenders owed $771 million support a reorganization plan filed alongside the petition. Excel, which sought bankruptcy with a number of affiliates, has tapped Skadden, Arps, Slate, Meagher & Flom LLP, as counsel; Miller Buckfire & Co. LLC, as investment banker; and Global Maritime Partners Inc., as financial advisor. A five-member official committee of unsecured creditors was appointed by the U.S. Trustee. EXCEL MARITIME: Files Schedules of Assets & Liabilities ------------------------------------------------------- Excel Maritime Carriers Ltd. delivered to the U.S. Bankruptcy Court for the Southern District of New York their schedules of assets and liabilities disclosing the following: Assets Liabilities ----------- -------------- A. Real Property $0 B. Personal Property $35,642,525 C. Property Claimed as Exempt - D. Creditors Holding Secured Claims $800,549,332 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Nonpriority Claims $233,765,187 ----------- -------------- Total $35,642,525 $1,034,314,519 Full-text copies of EMC Ltd.'s Schedules are available at http://bankrupt.com/misc/EXCELleadsal0815.pdf Excel Maritime Carries LLC also delivered with the U.S. Bankruptcy Court for the Southern District of New York their schedules of assets and liabilities disclosing zero assets and liabilities. About Excel Maritime Based in Athens, Greece, Excel Maritime Carriers Ltd. -- http://www.excelmaritime.com/-- is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax vessels) with a total carrying capacity of approximately 3.9 million DWT. Excel Class A common shares have been listed since Sept. 15, 2005, on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. The company blamed financial problems on low charter rates. The balance sheet for December 2011 had assets of $2.72 billion and liabilities totaling $1.16 billion. Excel owes $771 million to secured lenders with liens on almost all assets. There is $150 million owing on 1.875 percent unsecured convertible notes. Excel Maritime, filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 13-bk- 23060) on July 1, 2013, in New York after signing an agreement where secured lenders owed $771 million support a reorganization plan filed alongside the petition. Excel, which sought bankruptcy with a number of affiliates, has tapped Skadden, Arps, Slate, Meagher & Flom LLP, as counsel; Miller Buckfire & Co. LLC, as investment banker; and Global Maritime Partners Inc., as financial advisor. A five-member official committee of unsecured creditors was appointed by the U.S. Trustee. EXIDE TECHNOLOGIES: Incentive Plan Approved ------------------------------------------- BankruptcyData reported that the U.S. Bankruptcy Court approved Exide Technologies' motion for entry of an order (I) confirming its authority to implement an ordinary course annual incentive plan, (II) approving implementation of its key employee incentive plan, (III) approving implementation of its non-insider key employee retention plan and (IV) approving continuation of its pre-petition income protection plan. As previously reported, "At this incipient stage of the restructuring process, it is critical to ensure that those employees who drive the economic success of the Debtor's enterprise are appropriately compensated and incentivized to deliver superlative results. In this regard, after substantial deliberation and consultation with compensation experts from Mercer (US), Inc. ('Mercer'), the Organization and Compensation Committee (the 'Compensation Committee') of the Debtor's board of directors (the 'Board') recommended, and the full Board approved, the three employee compensation plans (collectively, the 'Employee Compensation Plans') that are the subject of this Motion: the 2014 Annual Incentive Plan (the 'AIP'); the Key Employee Incentive Plan (the 'KEIP'); and the Non-Insider Key Employee Retention Plan (the 'KERP'). Additionally, the Motion seeks authority for the Debtor to continue its pre-petition income protection plan (the 'Income Protection Plan') - a severance plan for salaried employees - as it applies to non-insiders." About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. Exide first sought Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002 and exited bankruptcy two years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-11482) on June 10, 2013. For the new case, Exide has tapped Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial advisor; Sitrick And Company Inc. as public relations consultant and GCG as claims agent. The Debtor disclosed $1.89 billion in assets and $1.14 billion in liabilities as of March 31, 2013. Exide's international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as co counsel. Zolfo Cooper, LLC serves as its bankruptcy consultants and financial advisors. EXIDE TECHNOLOGIES: Settles Differences w/ EPA Over Planned Sales ----------------------------------------------------------------- Law360 reported that bankrupt Exide Technologies got the green light to sell less-valuable assets without court approval after resolving objections of environmental regulators concerned that the process could let the battery maker unload contaminated properties without proper oversight. According to the report, the federal government challenged Exide's request earlier this week on behalf of the Environmental Protection Agency, saying that while the proposed sales process might be fine in most bankruptcies, it was troubling in a case in which the debtor owned upward of 60 potential contaminated properties. About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. Exide first sought Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002 and exited bankruptcy two years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-11482) on June 10, 2013. For the new case, Exide has tapped Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial advisor; Sitrick And Company Inc. as public relations consultant and GCG as claims agent. The Debtor disclosed $1.89 billion in assets and $1.14 billion in liabilities as of March 31, 2013. Exide's international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as co counsel. Zolfo Cooper, LLC serves as its bankruptcy consultants and financial advisors. EXPLO SYSTEMS: La. Explosives Deactivator Files for Bankruptcy -------------------------------------------------------------- Katy Stech, writing for The Wall Street Journal, reported that after an explosion, an evacuation of a small Louisiana town and a threatened eviction, military explosives-disassembler Explo Systems Inc. has filed for bankruptcy protection. According to the report, company officials who put the small business into Chapter 11 said in court papers that it has 15 million pounds of "energetic materials" -- largely M6 propellant - - at its location on the Louisiana National Guard's Camp Minden. That location was the site of an Oct. 15, 2012, explosion, "felt as far away as Arkansas," according to local news reports, that scorched trees, damaged rail cars and shattered windows of nearby homes, the report related. Operating under a military contract, Explo Systems workers had been dismantling unneeded explosives, according to media reports and federal court papers, the report said. The company resold explosive material "for reuse in commercial blasting operations" and the remaining scrap metal to recyclers, according to details in a federal lawsuit filed by its insurance company. Authorities who later investigated the blast weren't pleased with how Explo Systems officials were handling the explosive materials, the report added. FIBERTOWER CORP: Directors Could Face Suit Over FCC License Loss ---------------------------------------------------------------- Katy Stech writing for Dow Jones' DBR Small Cap reports creditors of former telecom company FiberTower Corp. are preparing a lawsuit against its former executives, saying that their decision to underspend on communications projects caused FiberTower to lose a Federal Communications Commission license for the wireless channel spectrum in major U.S. cities. About FiberTower Corp. FiberTower Corporation, FiberTower Network Services Corp., FiberTower Licensing Corp., and FiberTower Spectrum Holdings LLC filed for Chapter 11 protection (Bankr. N.D. Tex. Case Nos. 12-44027 to 12-44031) on July 17, 2012, together with a plan support agreement struck with prepetition secured noteholders. FiberTower is an alternative provider of facilities-based backhaul services, principally to wireless carriers, and a national provider of millimeter-band spectrum services. Backhaul is the transport of voice, video and data traffic from a wireless carrier's mobile base station, or cell site, to its mobile switching center or other exchange point. FiberTower provides spectrum leasing services directly to other carriers and enterprise clients, and also offer their spectrum services through spectrum brokerage arrangements and through fixed wireless equipment partners. FiberTower's significant asset is the ownership of a national spectrum portfolio of 24 GHz and 39 GHz wide-area spectrum licenses, including over 740 MHz in the top 20 U.S. metropolitan areas and, in the aggregate, roughly 1.72 billion channel pops (calculated as the number of channels in a given area multiplied by the population, as measured in the 2010 census, covered by these channels). FiberTower believes the Spectrum Portfolio represents one of the largest and most comprehensive collections of millimeter wave spectrum in the U.S., covering areas with a total population of over 300 million. As of the Petition Date, FiberTower provides service to roughly 5,390 customer locations at 3,188 deployed sites in 13 markets throughout the U.S. The fixed wireless portion of these hybrid services is predominantly through common carrier spectrum in the 11, 18 and 23 GHz bands. FiberTower's biggest service markets are Dallas/Fort Worth and Washington, D.C./Baltimore, with additional markets in Atlanta, Boston, Chicago, Cleveland, Denver, Detroit, Houston, New York/New Jersey, Pittsburgh, San Antonio/Austin/Waco and Tampa. As of June 30, 2012, FiberTower's books and records reflected total combined assets, at book value, of roughly $188 million and total combined liabilities of roughly $211 million. As of the Petition Date, FiberTower had unrestricted cash of roughly $23 million. For the six months ending June 30, 2012, FiberTower had total revenue of roughly $33 million. With the help of FTI Consulting Inc., FiberTower's preliminary valuation work shows that the Company's enterprise value is materially less than $132 million -- i.e., the approximate principal amount of the 9.00% Senior Secured Notes due 2016 outstanding as of the Petition Date. The preliminary valuation work is based upon the assumption that FiberTower's spectrum licenses will not be terminated. Fibertower Spectrum disclosed $106,630,000 in assets and $175,501,975 in liabilities as of the Chapter 11 filing. Judge D. Michael Lynn oversees the Chapter 11 case. Lawyers at Andrews Kurth LLP serve as the Debtors' lead counsel. Lawyers at Hogan Lovells and Willkie Farr and Gallagher LLP serve as special FCC counsel. FTI Consulting serve as financial advisor. BMC Group Inc. serve as claims and noticing agent. The petitions were signed by Kurt J. Van Wagenen, president. Wells Fargo Bank, National Association -- as indenture trustee and collateral agent to the holders of 9.00% Senior Secured Notes due 2016 owed roughly $132 million as of the Petition Date -- is represented by Eric A. Schaffer, Esq., at Reed Smith LLP. An Ad Hoc Committee of Holders of the 9% Secured Notes Due 2016 is represented by Kris M. Hansen, Esq., and Sayan Bhattacharyya, Esq., at Stroock & Stroock & Lavan LLP. Wells Fargo and the Ad Hoc Committee also have hired Stephen M. Pezanosky, Esq., and Mark Elmore, Esq., at Haynes and Boone, LLP, as local counsel. U.S. Bank, National Association -- in its capacity as successor indenture trustee and collateral agent to holders of the 9.00% Convertible Senior Secured Notes due 2012, owed $37 million as of the Petition Date -- is represented by Michael B. Fisco, Esq., at Faegre Baker Daniels LLP, as counsel and J. Mark Chevallier, Esq., at McGuire Craddock & Strother PC as local counsel. William T. Neary, the U.S. Trustee for Region 6 appointed five members to the Official Committee of Unsecured Creditors in the Debtors' cases. The Committee is represented by Otterbourg, Steindler, Houston & Rosen, P.C., and Cole, Schotz, Meisel, Forman & Leonard, P.A. Goldin Associates, LLC serves as its financial advisors. In May 2013, FiberTower sought and obtained Court authority to sell their telecommunications equipment and employ American Communications, LLC, as telecommunications equipment reseller. According to the Debtors, the telecommunications equipment, which was a part of their backhaul business, is no longer necessary in the conduct of their business. They, however, believe that the equipment may have resale value that would benefit their estates. In February 2013, FiberTower filed with the Court a motion to sell assets that are primarily utilized by the Debtors to provide wireless backhaul services in the State of Ohio to Cellco Partnership (dba Verizon Wireless) free and clear for $1.5 million. Verizon Wireless will also pay the pre-closing, monthly operating costs incurred by the Debtors in connection with operating the business in an amount not to exceed $258,000 per month and a monthly fee of $20,000 for certain transition services relating to the assets following the closing. FLAMINGO PRODUCTS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Flamingo Products Of South Florida, Inc. 3095 E. 11th Avenue Hialeah, FL 33013 Bankruptcy Case No.: 13-29272 Chapter 11 Petition Date: August 14, 2013 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: A. Jay Cristol Debtor's Counsel: Diego Mendez, Esq. MENDEZ LAW OFFICES, PLLC P.O. Box 228630 Miami, FL 33172 Tel: (305) 264-9090 Fax: (305) 264-9080 E-mail: info@mendezlawoffices.com Scheduled Assets: $1,129,294 Scheduled Liabilities: $7,859,636 Affiliate that simultaneously filed for Chapter 11: Debtor Case No. ------ -------- Flamingo Realty Holdings, LLC 13-29299 Assets: $1,720,000 Debts: $648,532 The petitions were signed by Tony Arias, president. A. Flamingo Products of South Florida, Inc.'s list of its 20 largest unsecured creditors filed with the petition is available for free at http://bankrupt.com/misc/flsb13-29272.pdf B. Flamingo Realty Holdings, LLC's list of its largest unsecured creditors filed with the petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ US Small Business Administration -- $42,163 Disaster Assisrance 14925 Kingsport Road Fort Worth, TX 76155 FULLCIRCLE REGISTRY: Incurs $179,000 Net Loss in Second Quarter --------------------------------------------------------------- FullCircle Registry, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $179,000 on $477,043 of revenues for the three months ended June 30, 2013, as compared with a net loss of $91,962 on $468,996 of revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $206,984 on $931,344 of revenues, as compared with a net loss of $160,204 on $913,639 of revenues for the same period a year ago. The Company reported a net loss of $369,784 on $1.9 million of revenues in 2012, compared with a net loss of $570,302 on $1.3 million of revenues in 2011. As of June 30, 2013, the Company had $5.97 million in total assets, $6.04 million in total liabilities and a $69,738 total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/H2YPXd About FullCircle Registry Shelbyville, Kentucky-based FullCircle Registry, Inc., targets the acquisition of small profitable businesses. FullCircle Registry, Inc., has become a holding company with three subsidiaries. They are FullCircle Entertainment, Inc., FullCircle Insurance Agency, Inc. and FullCircle Prescription Services, Inc. Target companies for future acquisition are those in search of exit plans for the owners and are intended to continue autonomous operations as current ownership is phased out over a period of 3-5 years. In its report on the consolidated financial statements for the year ended Dec. 31, 2012, Rodefer Moss & Co., PLLC, in New Albany, Indiana, expressed substantial doubt about FullCircle Registry's ability to continue as a going concern, citing the Company's recurring losses from operations and net working capital deficiency. FURNITURE BRANDS: Paul Hastings, Miller Buckfire on Board --------------------------------------------------------- The Wall Street Journal's Emily Glazer and Patrick Fitzgerald report that people familiar with the matter said St. Louis-based Furniture Brands International Inc., one of the nation's largest home furniture makers, has tapped restructuring lawyers and advisers to deal with its debt load. The report says Furniture Brands is working with law firm Paul, Hastings, Janofsky and Walker LLP, investment bank Miller Buckfire & Co. and turnaround firm Alvarez & Marsal to address its debts and low cash flow amid a struggling U.S. furniture market. The sources said the advisers are examining several alternatives, one of which could be a Chapter 11 bankruptcy restructuring, though the situation is still fluid. According to WSJ, some of the sources said some creditors are being advised by law firm Kirkland & Ellis LLP and restructuring advisers FTI Consulting Inc. WSJ says representatives for Furniture Brands, which sells under the Broyhill, Lane, Drexel Heritage and Thomasville names, didn't respond to requests for comment. In a regulatory filing earlier in August, Furniture Brands said it is pursuing a number of cost-cutting strategies, including "facility consolidation, reductions in force and reductions in controllable costs." The company also said in the filing it's "exploring options with our lenders to modify our credit facilities to improve our liquidity," which now stands at about $45 million. According to the report, one of these people said Furniture Brands' debt includes a $50 million term loan from Pathlight Capital, an affiliate of private-equity firm Sycamore Partners. Pathlight assigned the loan to investment firm Oaktree Capital Management earlier this year. Wells Fargo & Co., Bank of America Corp. and General Electric Co. unit GE Capital agreed to provide Furniture Brands with up to $200 million in financing under an asset-based revolving loan several months ago. GATEHOUSE MEDIA: Looming Default Cues Moody's to Cut PDR to Ca-PD ----------------------------------------------------------------- Moody's Investors Service downgraded GateHouse Media Operating, Inc.'s Probability of Default Rating to Ca-PD from Caa3-PD. The Corporate Family Rating and facility rate were affirmed at Ca. The rating action reflects the potential for a default if the company is successful in its attempt to proactively restructure its balance sheet or at the maturity of its term loans in August 2014. The company could also default if it receives a going concern opinion from its auditors when GateHouse files their 2013 audited financial statements if the default is not waived by its lenders. The rating outlook was changed to negative from stable. Details of the rating action are as follows: Issuer: GateHouse Media Operating, Inc. Probability of Default Rating, Downgraded to Ca-PD from Caa3-PD Corporate Family Rating affirmed at Ca Senior secured term loan B -- affirmed at Ca, LGD4, 64% (point estimated adjusted down from 65%) Senior secured term loan C -- affirmed at Ca, LGD4, 64% (point estimate adjusted down from 65%) Senior secured delayed draw term loan -- affirmed at Ca, LGD4, 64% (point estimate adjusted down from 65%) Outlook, changed to negative from stable Ratings Rationale: GateHouse's Ca CFR reflects the extremely leverage capital structure of 15.2x (as of Q2 2013 including Moody's standard adjustments) which Moody's anticipates will lead to poor recovery prospects for debt holders given current valuation multiples. Operating performance is expected to continue to be challenged by negative secular trends in the newspaper industry which will pressure revenue and cash flows. The company has reduced costs and consolidated operations, but ongoing declines, particularly in its Advertising segment which accounts for almost 70% of 2012 FY revenue continue to drive EBITDA lower due to both reduced advertising and classified revenues. Management has invested in new digital and marketing initiatives to offset declines in print and diversify operations, but the additional expenses of these initiatives also weigh on EBITDA in the near term. Subscription revenue has been relatively flat due to the bundling of print and digital offerings, in addition to rising prices that has largely offsets modest subscriber declines. However, given that subscriptions generate only 27% of total revenue (as of FY 2012), it will not be enough to avoid a default of its existing capital structure. GateHouse's sources of liquidity consist of cash on hand ($25.5 million at the end of Q2 2013) plus cash generated from operations. Given that a revolver draw requires pro forma compliance with a 6.5x total leverage ratio test (as defined), the company is not able to draw under its $20 million revolving credit facility. Therefore, the company relies on balance sheet cash and internally generated cash flow to meet near-term funding needs. There is no scheduled amortization under the term loans, however, the company is subject to a 50% excess cash flow recapture provision and paid $6.6 million in March 2013 based on excess cash flow for FY2012. Gatehouse generated free cash flow of approximately $10 million over the last twelve months ending Q2 2013. The negative rating outlook reflects Moody's view that the probability of a near-term default is high due to the unsustainable capital structure and negative secular trends in the newspaper industry. Moody's does not believe an upgrade to the ratings based on the existing capital structure is likely. The PDR will be downgraded to D-PD from Ca-PD upon an agreement with lenders for a restructuring of its capital structure, the receipt of a going concern opinion when it files its 2013 audited statements that is not waived by lenders, or a payment default at maturity. The principal methodology used in this rating was Global Publishing Industry published in December 2011. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. With its headquarters in Fairport, New York, GateHouse Media Operating, Inc. is one of the largest publishers of locally based print and online media (newspaper and related publications) as measured by the number of daily publications. Fortress Investment Group LLC and its affiliates beneficially own approximately 39.6% of outstanding common stock and 54.8% of the outstanding credit facility. The company recorded sales of approximately $478 million for the twelve month period ended June 30, 2013. GateHouse publishes 77 daily newspapers, 235 weekly newspapers, 91 shoppers, and six yellow page directories in addition to operating over 343 locally focused websites. GROWTHWORKS CANADIAN: Roseway Waives Security Agreement Default --------------------------------------------------------------- GrowthWorks Canadian Fund Ltd. on Aug. 16 disclosed that it has entered into a fifth amendment to the Participation Agreement dated May 28, 2010 with Roseway Capital S.a.r.l. whereby a payment of $20 million that was payable to Roseway on August 16, 2013 will now become payable on September 3, 2013 and a further $5.7 million will become payable to Roseway by Sept. 10, 2013. Those amounts will bear interest at the rate of 18% per annum from the date on which they were originally payable by Canadian Fund. Canadian Fund continues to be engaged in active discussions with Roseway regarding a possible further, longer-term extension of those payment obligations, as well as amendments to certain other terms of the Participation Agreement and the security agreement in favor of Roseway which grants a charge over certain portfolio and other assets of the Fund. In connection with this amendment, Roseway has also waived until September 4, 2013 a default under the Security Agreement tied to the Fund maintaining a minimum net asset value. Canadian Fund cannot assure investors that these discussions will result in any further extension of the dates by which Canadian Fund must make those payments or that Canadian Fund will have sufficient funds to pay those amounts when due. If Canadian Fund were to default on its obligations under the Participation Agreement or an event of default were to occur under the Security Agreement, the security held by Roseway over Canadian Fund's assets may be enforced by Roseway, which could result in forced divestments of some or all of those assets at values well below carrying values and a significant decline in the values of Class A shares of the Fund. The Board of Directors of Canadian Fund continues to review, with the assistance of its independent financial and legal advisors, the strategic alternatives available to Canadian Fund. Canadian Fund also announced that it has repaid in full its loan obligations to Matrix Asset Management Inc. of $4 million plus accrued and unpaid interest. GrowthWorks Canadian Fund Ltd., L.P. specializes in early-stage and growth capital. It also supports companies through to maturity. The fund seeks to invest in small to medium sized companies. It seeks to invest in information technology; life sciences; advanced manufacturing; clean technology; communications; media; transportation; medical products and health services; specialty merchandising; computer systems and software; lodging; financial, professional, and personal services; and training and education sectors. The fund prefers to invest in private companies based in Canada with a focus on Ontario, Saskatchewan, and Manitoba. HAYDEL PROPERTIES: Parties Want Plan Confirmation Denied -------------------------------------------------------- Parties-in-interest have objected to the confirmation of Haydel Properties, LP's Amended Plan of Reorganization. Hancock Bank, through its counsel William P. Wessler, Esq., stated that, among other things: -- the property securing the loan cannot not be sold for an amount less than the total amount of the debt, which is presently $119,997, not including attorneys fees and costs; -- the property is a vacant tract of land which produces no income; -- the language concerning a possible surrender of the property to the Bank at the end of the year, if not sold by then, is vague and ambiguous and needs to be clarified; and -- the proposed modification of the interest rate on the claim is objectionable. The Peoples Bank in Biloxi, Mississippi, asserted that, among other things: -- the Plan does not treat the Bank fairly and equitably; -- the Debtors have failed to provide supplemental information as mandated by the Court; -- the Plan is incapable of being confirmed due to the Debtor's default as it is too vague and speculative; and -- the Plan imposes undue burdens upon the Bank in the event of default. Les W. Smith, Esq. -- Les.Smith@pmp.org -- at Page, Mannino, Peresich, & McDermott, P.L.L.C., represents The Peoples Bank. BancorpSouth Mortgage Center, through its counsel Laura Henderson- Courtney, Esq. -- lhc@underwoodlawfirm.com -- said the Debtor proposes to re-amortize the three loans of BancorpSouth Mortgage over a period of 25 years. The proposal is neither fair nor equitable. BancorpSouth added that the Plan is vague and speculative in that it does not provide any specific provisions as to default, or BancorpSouth Mortgage's remedies in the event of default. BancorpSouth Bank, through Les W. Smith, Esq., at Page, Mannino, Peresich, & McDermott, P.L.L.C., also object to the confirmation of the Debtor's Amended Plan stating that the Debtors had failed to provide supplemental information as mandated by the Court in its order approving Disclosure Statement entered June 7, 2013. The Plan As reported in the Troubled Company Reporter on July 3, 2013, the Court has approved the First Amended Disclosure Statement dated Feb. 21, 2013, explaining the Debtor's Plan. The Court also approved the changes by agreement with the objecting parties, People's Bank and BancorpSouth Bank. A copy of the changes is available for free at http://bankrupt.com/misc/HAYDELPROPERTIES-ds-order.pdf As reported by the TCR on April 24, 2013, BancorpSouth Bank and The Peoples Bank, in Biloxi, Mississippi, objected to the approval of the first amended disclosure statement for Haydel's proposed Chapter 11 Plan. As reported by the TCR on April 4, 2013, according to the first amended disclosure statement, the Plan was conceived by management as an alternative to the more drastic measures available for restructuring the Company's debt, such as total liquidation of equipment and properties. The Debtor will continue to operate the rental business and market numerous parcels of real property. A part of the Debtor's plan is the intent to sell a number of parcels of real property owned by the Debtor. The Debtor has entered into a listing agreement with Jonathan Bell of Cameron Bell Properties and Coldwell Banker Aphonso Realty to lease or sell multiple parcels of real property. The Debtor has said there are sufficient funds to make the repairs on the downtown Gulfport building and repairs to a parcel on Eisenhower Drive. The Debtor believes that the Plan is feasible. If there be unexpected expenses and there be a shortfall in income, the equity security holders will make capital contributions to cover any shortfall. A copy of the Amended Disclosure Statement is available for free at http://bankrupt.com/misc/HAYDEL_PROPERTIES_ds_1amended.pdf About Haydel Properties LP Haydel Properties LP, based in Biloxi, Mississippi, filed for Chapter 11 bankruptcy (Bankr. S.D. Miss. Case No. 12-50048) on Jan. 11, 2012. Judge Katharine M. Samson presides over the case. Christy Pickering serves as accountant. The Debtor disclosed $11.7 million in assets and $6.8 million in liabilities as of the Chapter 11 filing. Patrick A. Sheehan, Esq.; and Robert Gambrell, Esq., at Gambrell & Associates, PLLC represent the Debtor in its restructuring effort. HERON LAKE: Project Viking Held 63.3% of A & B Units at July 31 --------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Granite Falls Energy, LLC, and Project Viking, L.L.C., disclosed that as of July 31, 2013, they beneficially owned 39,080,949 shares of Class A and Class B units of Heron Lak Bioenergy, LLC, representing 63.3 percent of the shares outstanding. On July 31, 2013, the Company issued 15,000,000 Class B Units and 8,075,000 Class A Units to Project Viking, at a price of $0.30 per Unit, or $6,922,500 in the aggregate, pursuant to that certain Subscription Agreement Including Investment Representations dated July 31, 2013, between the Company and Project Viking. A copy of the regulatory filing is available for free at: http://is.gd/7UC1RO About Heron Lake Heron Lake BioEnergy, LLC, operated a dry mill, coal fired ethanol plant in Heron Lake, Minnesota. After completing a conversion in November 2011, the Company is now a natural gas fired ethanol plant. Its subsidiary, HLBE Pipeline Company, LLC, owns 73 percent of Agrinatural Gas, LLC, the pipeline company formed to construct, own, and operate a natural gas pipeline that provides natural gas to the Company's ethanol production facility through a connection with the natural gas pipeline facilities of Northern Border Pipeline Company in Cottonwood County, Minnesota. Its subsidiary, Lakefield Farmers Elevator, LLC, has grain facilities at Lakefield and Wilder, Minnesota. At nameplate, the Company's ethanol plant has the capacity to process approximately 18.0 million bushels of corn each year, producing approximately 50 million gallons per year of fuel-grade ethanol and approximately 160,000 tons of distillers' grains with soluble. In its report on the Company's financial statements for the fiscal year ended Oct. 31, 2012, Boulay, Heutmaker, Zibell & Co. P.L.L.P., in Minneapolis, Minnesota, expressed substantial doubt about Heron Lake BioEnergy's ability to continue as a going concern. The independent auditors noted that the Company has incurred losses due to difficult market conditions and the impairment of long-lived assets. "The Company is out of compliance with its master loan agreement and is operating under a forbearance agreement whereby the Company agreed to sell substantially all of its assets." The Company reported a net loss of $32.35 million for the year ended Oct. 31, 2012, as compared with net income of $543,017 for the year ended Oct. 31, 2011. As of April 30, 2013, the Company had $59.78 million in total assets, $44.05 million in total liabilities and $15.72 million in total members' equity. Bankruptcy Warning At Jan. 31, 2013, the Company's total indebtedness to AgStar was approximately $41.1 million. All of the Company's assets and real property are subject to security interests and mortgages in favor of AgStar as security for the obligations of the master loan agreement. The Company's failure to pay any required installment of principal or interest or any other amounts payable under the Company's Term Loan or Term Revolving Loan or the Company's failure to perform or observe any covenant under the Sixth Amended and Restated Master Loan Agreement would result in an event of default, entitling AgStar to accelerate and declare due all amounts outstanding under the Company's Term Loan and its Term Revolving Loan. "Upon the occurrence of any one or more Events of Default, as defined under the Sixth Amended and Restated Forbearance Agreement, including failure to observe any of the financial or affirmative covenants...AgStar may accelerate all of our indebtedness and may seize the assets that secure our indebtedness, causing us to lose control of our business. We may also be forced to sell our assets, restructure our indebtedness, submit to foreclosure proceedings, cease operations or seek bankruptcy or reorganization protection," according to the Company's quarterly report for the three months ended Jan. 31, 2013. HIGHWAY TECHNOLOGIES: Gets Nod on Settlement, $3MM DIP Loans ------------------------------------------------------------ Law360 reported that a Delaware bankruptcy judge gave the final OK to Highway Technologies Inc.'s $3 million post-petition loan, and a global settlement among creditors over the objections to the agreement from the U.S. Trustee's Office, which argued the terms turned the Bankruptcy Code "on its head." According to the report, U.S. Bankruptcy Judge Kevin J. Carey said he labored over his decision, weighing two scenarios: one where he approves a settlement that would allow unsecured creditors to see at least some money, and another where he rejects it. About Highway Technologies Highway Technologies Inc. and affiliate HTS Acquisition Inc. sought Chapter 11 protection (Bankr. D. Del. Case No. 13-11325 to 13-11326) on May 22, 2013, to conduct an orderly liquidation. Richard M. Pachuiski, Esq., at Pachulski Stang Ziehl & Jones LLP, serves as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. The prepetition lenders are represented by David M. Hilllman, Esq., at Schulte Roth & Zabel, in New York. The company's balance sheet as of March 31, 2013, showed $55 million in total assets and $102 million in liabilities. Richards, Layton & Finger, P.A. represents the Official Unsecured Creditors' Committee as counsel. Gavin/Solmonese LLC serves as its financial advisor. HOWREY LLP: Strikes $41MM Deal with BakerHostetler -------------------------------------------------- Law360 reported that the Chapter 11 trustee for Howrey LLP asked a California federal judge to approve a settlement with BakerHostetler, as well as former Howrey partners Baker hired, that will immediately provide $41 million to pay off the Howrey bankruptcy estate's debt. According to the report, the money will come from about $100 million in attorneys' fees that were awarded in three antitrust class actions filed by dairy farmers against Dean Foods, dairy industry groups and others. The cases were originated at Howrey by attorneys who later joined Baker, the report related. About Howrey LLP Three creditors filed an involuntary Chapter 7 petition (Bankr. N.D. Cal. Case No. 11-31376) on April 11, 2011, against the remnants of the Washington-based law firm Howrey LLP. The filing was in San Francisco, where the firm had an office. The firm previously was known as Howrey & Simon and Howrey Simon Arnold & White LLP. The firm at one time had more than 700 lawyers in 17 offices. The partners voted to dissolve in March 2011. The firm specialized in antitrust and intellectual-property matters. The three creditors filing the involuntary petition together have $36,600 in claims, according to their petition. The involuntary chapter 7 petition was converted to a chapter 11 case in June 2011 at the request of the firm. In its schedules filed in July, the Debtor disclosed assets of $138.7 million and liabilities of $107.0 million. Representing Citibank, the firm's largest creditor, is Kelley Cornish, Esq., a partner at Paul, Weiss, Rifkind, Wharton & Garrison. Representing Howrey is H. Jason Gold, Esq., a partner at Wiley Rein. The Official Committee of Unsecured Creditors is represented in the case by Bradford F. Englander, Esq., at Whiteford, Taylor And Preston LLP. In September 2011, Citibank sought conversion of the Debtor's case to Chapter 7 or, in the alternative, appointment of a Chapter 11 Trustee. The Court entered an order appointing a Chapter 11 Trustee. In October 2011, Allan B. Diamond was named as Trustee. HULDRA SILVER: Obtains First Tranche of DIP Financing Loan ---------------------------------------------------------- Garth Braun, CFO & Director of Huldra Silver Inc., on behalf of the Board of Directors, on Aug. 16 disclosed that it has obtained a secured debtor-in-possession loan from Waterton Global Value, L.P., the primary secured creditor of the Company, pursuant to a credit agreement dated August 15, 2013. The DIP Loan was authorized by an initial order of the Supreme Court of British Columbia pursuant to the proceedings under the Companies' Creditors Arrangement Act (Canada) ("CCAA") previously announced in the Company's news release dated July 26, 2013. Garth Braun, Chief Financial Officer and Director, stated: "The Company's strong relationship with Waterton has resulted in the parties working collaboratively during the CCAA process and in achieving the DIP Loan. The Company will have to work collaboratively with all other stakeholders during the CCAA process in order to maximize value for all stakeholders." Credit Agreement Under the terms of the Credit Agreement, the DIP Loan will be advanced by Waterton by way of a first advance, which will be advanced in several tranches, of up to $2,300,000 in aggregate and a second advance (at Waterton's sole absolute discretion) of up to $2,500,000 in aggregate upon receipt by Waterton of a comprehensive plan of operations from the Company for the Treasure Mountain Property that is satisfactory to Waterton and its advisors, all on the terms and conditions set out in the Credit Agreement. The Company has agreed to repay the DIP Loan in full as follows: if the First Advance (but not the Second Advance) is advanced, then on the date which is four months after the date the First Advance is advanced by Waterton to the Company under the Credit Agreement; and if both Advances are advanced, then in accordance with an amortized repayment schedule to be determined by Waterton which reasonably corresponds to the Plan. Each tranche of each Advance is subject to a number of conditions as set out in the Credit Agreement. Under the first tranche of the First Advance, the Company drew down $1,189,024, of which $502,671 was used to re-pay the principal and interest owed to Waterton pursuant to a $500,000 promissory note dated July 8, 2013, $115,000 of which was used to pay the costs and expenses of Waterton pursuant to the Credit Agreement, and the balance of $571,353 was advanced to the Company. The proceeds of the first tranche will allow the Company to continue its care and maintenance program at its mine and mill while attempting to restructure its financial affairs. Under the terms of the Credit Agreement, the obligations of the Company in connection with the DIP Loan have been secured by a super-priority court-ordered charge over all present and after- acquired property, assets and undertakings of the Company, and by guarantees of each of the Company's subsidiaries in favor of Waterton. The Charge shall rank in priority to all other creditors, interest holders, lien holders and claimants of any kind whatsoever, subject only to an administrative charge in favor of the Monitor and its counsel in an amount up to $300,000, and a lien with respect to certain of the Company's leased premises in an amount up to $25,000. The Company and its subsidiaries have entered into certain ancillary agreements to secure the obligations of the Company under the DIP Loan, including general security agreements, share pledge agreements with respect to the shares of the subsidiaries, and debentures with respect to the properties and mineral interests owned by Company and its subsidiaries. The Company also agreed to certain covenants and negative covenants as set out in the Credit Agreement. The Credit Agreement contains a number of events of default, including without limitation, the failure to make any payment to Waterton when due, the breach of, or failure to perform or observe any covenant, the failure to pay any other debt exceeding $50,000 when due, the failure to perform any material agreement, any judgment or order for the payment of money in excess of $50,000.00 being rendered against the Company, certain events happening in the CCAA proceeding and a number of other enumerated events. Any advances under the DIP Loan are repayable in an amount in cash equal to the aggregate of the following payments: (a) the amount arrived at when (i) dividing the amount being repaid by 76.5% of the spot price of silver on the business day immediately preceding such repayment date and (ii) multiplying the result thereof by such spot price; and (b) the Profit Participation Amount (as calculated pursuant to the Credit Agreement) relating to such repayment date. The DIP Loan has received conditional approval of the TSX Venture Exchange and remains subject to final TSXV approval. Royalty Agreement In connection with and as partial consideration for the DIP Loan, the Company also entered into a Royalty Agreement with Waterton, whereby the Company granted to Waterton a 2% net smelter return royalty on the production of all minerals from the Treasure Mountain Property. The Royalty will be terminated if: no amounts are drawn by the Company under the DIP Loan on or before August 22, 2013; and the Company repays Waterton in full all amounts owing under the original credit agreement dated June 16, 2011 between the Company and Waterton, the term sheet dated July 23, 2013 between the Company and Waterton and the Credit Agreement on or before August 22, 2013. CCAA Proceeding CCAA protection stays creditors and others from enforcing rights against Huldra and affords Huldra the opportunity to continue attempting to restructure its financial affairs. The Court has granted CCAA protection for an initial period of 30 days, expiring August 26, 2013, to be extended thereafter as the Court deems appropriate. While under CCAA protection, Huldra will continue attempting to restructure its financial affairs and recommence operations at its mine and mill under the supervision of the Monitor. The Monitor will also be responsible for reviewing Huldra's ongoing operations, liaising with creditors and other stakeholders and reporting to the Court. The Monitor will continue to work with the Company to develop a plan of compromise or arrangement with one or more of the Company's classes of creditors pursuant to the CCAA and the Business Corporations Act (British Columbia). Strategic Advisory Agreement The Company also disclosed that it intends to enter into an agreement with Haywood Securities Inc. whereby Haywood would provide strategic advisory services to the Company, including the identification of alternatives to resolve the Company's current debt obligations and to unlock value from the Company's assets. The Company intends to pay Haywood a work fee and success fee depending on the outcome of the services provided. The terms of the agreement with Haywood are still being negotiated and may change. The final agreement is subject to the TSXV Approval. About Huldra Headquartered in Vancouver, Canada, Huldra Silver Inc. -- http://www.huldrasilver.com/-- is a junior exploration company engaged in the business of acquiring, exploring and developing mineral and natural resource properties. IDERA PHARMACEUTICALS: Regains Compliance with $1 Bid Price Rule ---------------------------------------------------------------- Idera Pharmaceuticals, Inc., has received formal notice from the Listing Qualifications Staff of the Nasdaq Stock Market that the Company has regained compliance with the $1.00 minimum bid price requirement, as set forth in Nasdaq Listing Rule 5550(a)(2). On May 29, 2013, the Staff had notified the Company that its common stock had failed to maintain the minimum bid price of $1.00 as required by Nasdaq Listing Rule 5550(a)(2). The Staff notice confirmed that the matter has been closed. With the closing of this matter, the Company is now in compliance with all requirements for continued listing on the Nasdaq Capital Market. About Idera Pharmaceuticals Cambridge, Massachusetts-based Idera Pharmaceuticals, Inc., is a clinical stage biotechnology company engaged in the discovery and development of novel synthetic DNA- and RNA-based drug candidates that are designed to modulate immune responses mediated through Toll-like Receptors, or TLRs. The Company has two drug candidates, IMO-3100, a TLR7 and TLR9 antagonist, and IMO-8400, a TLR7, TLR8, and TLR9 antagonist, in clinical development for the treatment of autoimmune and inflammatory diseases. In the auditors' report on the consolidated financial statements for the year ended Dec. 31, 2012, Ernst & Young LLP, in Boston, Mass., expressed substantial doubt about Idera's ability to continue as a going concern, citing recurring losses and negative cash flows from operations and the necessity to raise additional capital or alternative means of financial support, or both, prior to Dec. 31, 2013, in order to continue to fund its operations. The Company reported a net loss of $19.2 million on $51,000 of revenue in 2012, compared with a net loss of $23.8 million on $53,000 of revenue in 2011. Revenue in 2012 and 2011 consisted of reimbursement by licensees of costs associated with patent maintenance. The Company's balance sheet at March 31, 2013, showed $6.81 million in total assets, $4.10 million in total liabilities, $5.92 million in series D redeemable convertible preferred stock, and a $3.21 million total stockholders' deficit. INDYMAC BANCORP: FDIC Asks 9th Circ. to Open Up $80MM D&O Policies ------------------------------------------------------------------ Law360 reported that IndyMac Bancorp Inc.'s bankruptcy trustee, the Federal Deposit Insurance Corp. and former IndyMac executives pressed the Ninth Circuit to open the door to $80 million in directors and officers coverage, arguing that insurers could not show an exclusion for interrelated acts applied. According to the report, in three separate briefs, they made another plea to the Ninth Circuit in a case challenging a California federal judge's decision to nix coverage for securities and other suits against failed mortgage lender IndyMac and its subsidiary IndyMac Bank FSP. About Indymac Bancorp Based in Pasadena, California, IndyMac Bancorp Inc. (NYSE:IMB) -- http://www.indymacbank.com/-- is the holding company for IndyMac Bank FSB, a hybrid thrift/mortgage bank that originated mortgages in all 50 states of the United States. Through its hybrid thrift- mortgage bank business model, IndyMac designed, manufactured, and distributing cost-efficient financing for the acquisition, development, and improvement of single-family homes. IndyMac also provided financing secured by single-family homes to facilitate consumers' personal financial goals and strategically invests in single-family mortgage-related assets. On July 11, 2008, the Office of Thrift Supervision closed IndyMac Bank and appointed FDIC as the bank's receiver. Thacher Proffitt & Wood LLP was engaged as counsel to the FDIC. Indymac Bancorp filed for Chapter 7 bankruptcy protection (Bankr. C.D. Calif., Case No. 08-21752) on July 31, 2008. Representing the Debtor are Dean G. Rallis, Jr., Esq., and John C. Weitnauer, Esq. Bloomberg noted that Indymac had about $32.01 billion in assets as of July 11, 2008. In court documents, IndyMac disclosed estimated assets of $50 million to $100 million and estimated debts of $100 million to $500 million. INTELLICELL BIOSCIENCES: Obtains TRO on Assets Sale --------------------------------------------------- Justice Sherwood, Justice of the Supreme Court, New York County, has granted Intellicell Biosciences, Inc.'s motion for temporary restraining order thereby restraining any sale of the Company's assets. An oral argument on the matter was held Aug. 9, 2013. A Summons and Complaint was filed along with a Motion for a Temporary Restraining Order before the Supreme Court on Aug. 8, 2013, under the caption Intellicell Biosciences, Inc. v Ironridge Global IV, LTD., and TCA Global Credit Master Fund, LP, Index No. 652800/13. The Motion sought to restrain the sale of the Company's assets. As previously reported, on July 15, 2013, while the Company was finalizing an amendment and waiver to the Convertible Promissory Note issued by the Company in favor of TCA Global Credit Master Fund, LP, on June 7, 2012, in the principal amount of $500,000, the Company was advised that Ironridge Global IV, LTD, led by Mr. John C. Kirkland, Esq., purportedly purchased the Note from TCA. On July 29, 2013, the Company received from Ironridge, a Notice of Default and a Notice of Foreclosure and Sale. On July 31, 2013, the Company received from TCA the same Notice of Foreclosure and Sale that it had previously received from Ironridge. The Complaint and Motion alleged that Irondridge and TCA served the Notices of Foreclosure and Sale, both claiming to be the "Secured Party" of the same assets. The Complaint seeks a judicial determination as to: (i) which of the Defendants is the actual Secured Party (and Note holder) and (ii) the actual amount of the debt outstanding pursuant to the Note. Additionally, once the Court determines which party is the true Note holder and Secured Party, and a true calculation of the outstanding debt is made, the Company, which is currently holding funds in escrow, is requesting that the Court order that Defendant to accept payment of said outstanding debt in full satisfaction on the Note. Given that the Defendants asserted that they would sell the secured assets of the Company at auction on Aug. 12, 2013, the Motion sought to temporarily restrain both parties from so doing. The Court further ruled that the Temporary Restraining Order will remain in effect until Aug. 26, 2013, at which time a subsequent hearing on the Motion will be heard. About Intellicell Biosciences Intellicell BioSciences, Inc., headquartered in New York, N.Y., was formed on Aug. 13, 2010, under the name "Regen Biosciences, Inc." as a pioneering regenerative medicine company to develop and commercialize regenerative medical technologies in large markets with unmet clinical needs. On Feb. 17, 2011, the company changed its name from "Regen Biosciences, Inc." to "IntelliCell BioSciences Inc". To date, IntelliCell has developed proprietary technologies that allow for the efficient and reproducible separation of stromal vascular fraction (branded "IntelliCell(TM)") containing adipose stem cells that can be performed in tissue processing centers and in doctors' offices. The Company has incurred losses since inception resulting in an accumulated deficit of $43,079,590 and a working capital deficit of $3,811,024 as of March 31, 2012, respectively. However, if the non-cash expense related to the Company's change in fair value of derivative liability and stock based compensation is excluded then the accumulated deficit amounted to $4,121,538. Further losses are anticipated in the continued development of its business, raising substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at Sept. 30, 2012, showed $4.15 million in total assets, $7.31 million in total liabilities and a $3.16 million total stockholders' deficit. INTERNATIONAL WIRE: Moody's Keeps Ratings on Cooper Price Hike -------------------------------------------------------------- Moody's Investors Service said International Wire Group, Inc.'s ratings and stable outlook are not affected by the recent rally in copper prices. While rising copper prices could be credit negative as copper is a key raw material for the company's products, the impact on profitability and liquidity is limited by the company's ability to adjust its revenue model to keep up with higher costs and by the liquidity and flexibility afforded by its asset-based revolving credit facility. On September 24, 2012, Moody's affirmed International Wire's B2 corporate family rating and B2 probability of default rating. International Wire Group Holdings, Inc. is the parent of International Wire Group, Inc. Moody's also assigned a B3 rating to International Wire Group, Inc.'s proposed $250 million senior secured notes due 2017. The ratings outlook remains stable. J REALTY: Case Summary & 8 Unsecured Creditors ---------------------------------------------- Debtor: J Realty F Rockaway, Ltd. 101-19 Rockaway Beach Boulevard Rockaway Beach, NY 11694 Bankruptcy Case No.: 13-44995 Chapter 11 Petition Date: August 14, 2013 Court: U.S. Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Elizabeth S. Stong Debtors' Counsel: Arnold Mitchell Greene, Esq. ROBINSON BROG LEINWAND GREENE ET AL 875 Third Avenue, 9th Floor New York, NY 10022 Tel: (212) 603-6399 Fax: (212) 956-2164 E-mail: amg@robinsonbrog.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 Affiliates that simultaneously filed for Chapter 11: Debtor Case No. ------ -------- J&F Rockaway Tavern Ltd. 13-44996 Assets: $100,001 to $500,000 Debts: $1,000,001 to $10,000,000 J&T Rockaway Tavern Corp. 13-44997 Assets: $500,001 to $1,000,000 Debts: $1,000,001 to $10,000,000 The petitions were signed by Gerald Perich, president. A. J Realty F Rockaway, Ltd.'s list of its eight unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nyeb13-44995.pdf B. J & F Rockaway Tavern Ltd.'s list of its 18 unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nyeb13-44996.pdf C. J&T Rockaway Tavern Corp.'s list of its 12 unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nyeb13-44997.pdf JEFFERSON COUNTY, AL: Bond Rating Agency Cites Risks in Exit Plan ----------------------------------------------------------------- Barnett Wright, writing for The Birmingham News, reported that a national bond rating agency has affirmed its low rating and negative outlook for Jefferson County's sewer revenue warrants, saying the county may face challenges in executing its bankruptcy exit plan "given the rising interest rate environment." The report pointed out that Moody's Investors Service affirmed the county's Ca rating which is deep in junk territory and affects $3.1 billion of outstanding sewer debt. Moody's wrote in a news release that risks could affect the county's debt refinancing including "rising interest rates, insufficient investor demand for bonds at the projected credit spreads, and a higher percentage of warrant holders who choose to waive their claims against the bond insurers in exchange for a higher recovery rate," the report related. The county, according to the report, plans to issue approximately $1.9 billion in refinanced sewer warrants as part of a plan to exit bankruptcy by the end of the year. County officials have already said the plan will not work if warrants were issued today because of higher than expected interest rates. Moody's said its rating reflected an expectation that holders of the county's defaulted sewer debt would recover between 35 percent and 65 percent of the bond's value but there is a possibility that "the ultimate recovery rate could fall below 35 percent if the proposed restructuring fails to materialize as currently envisioned," the report further related. About Jefferson County Jefferson County has its seat in Birmingham, Alabama. It has a population of 660,000. Jefferson County filed a bankruptcy petition under Chapter 9 (Bankr. N.D. Ala. Case No. 11-05736) on Nov. 9, 2011, after an agreement among elected officials and investors to refinance $3.1 billion in sewer bonds fell apart. John S. Young Jr. LLC was appointed as receiver by Alabama Circuit Court Judge Albert Johnson in September 2010. Jefferson County's bankruptcy represents the largest municipal debt adjustment of all time. The county said that long-term debt is $4.23 billion, including about $3.1 billion in defaulted sewer bonds where the debt holders can look only to the sewer system for payment. The county said it would use the bankruptcy court to put a value on the sewer system, in the process fixing the amount bondholders should be paid through Chapter 9. Judge Thomas B. Bennett presides over the Chapter 9 case. Lawyers at Bradley ArantBoult Cummings LLP and Klee, Tuchin, Bogdanoff& Stern LLP, led by Kenneth Klee, represent the Debtor as counsel. Kurtzman Carson Consultants LLC serves as claims and noticing agent. Jefferson estimated more than $1 billion in assets. The petition was signed by David Carrington, president. The bankruptcy judge in January 2012 ruled that the state court- appointed receiver for the sewer system largely lost control as a result of the bankruptcy. Before deciding whether Jefferson County is eligible for Chapter 9, the bankruptcy judge will allow the Alabama Supreme Court to decide whether sewer warrants are the equivalent of "funding or refunding bonds" required under state law before a municipality can be in bankruptcy. U.S. District Judge Thomas B. Bennett ruled in March 2012 that Jefferson County is eligible under state law to pursue a debt restructuring under Chapter 9. Holders of more than $3 billion in defaulted sewer debt had challenged the county's right to be in Chapter 9. In June 2013, the county reached settlement with holders of 78 percent of the $3.1 billion in sewer debt at the core of the county's financial problems. The bondholders will be paid $1.84 billion through a refinancing, according to a term sheet. The settlement calls for JPMorgan Chase & Co., the owner of $1.22 billion in bonds, to make the largest concessions so other bondholder will recover more. On June 30, 2013, Jefferson County filed a Chapter 9 plan of debt adjustment. Pursuant to the Plan, sewer bondholders will receive 65 percent in cash. If they elect to waive claims against JPMorgan and bond insurers, they receive 80 percent in cash. Bondholders supporting the plan already agreed to waive claims and receive the larger recovery. Existing sewer bonds will be canceled in exchange for payments under the plan. The county will fund plan distributions by selling new sewer bonds calculated to generate $1.96 billion to cover the $1.84 billion earmarked for existing sewer bondholders. JPMorgan has agreed to waive $842 million of the sewer debt and a $657 million swap debt, resulting in an 88 percent overall write off by JPMorgan. To finance the new sewer bonds, there will be 7.4 percent in rate increases for sewer customers in each of the first four years. In later years, rate increases will be 3.5 percent. JERRY'S NUGGET: Plan Exclusivity Extended Through Sept. 30 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada approved a stipulation relating to confirmation of Jerry's Nugget, Inc., et al.'s Chapter 11 Plan. The stipulation dated July 16, 2013, entered among the Debtors, US Bank, National Association, 2010-1 CRE-Venture, LLC, and The George Stamis Family Trust, George Stamis and Effie Stamis, provides that, among other things: 1. confirmation hearings will be held on Aug. 26, at 9:30 a.m.; Aug. 27, at 1:30 p.m.; Aug. 29, at 1:30 p.m., and Sept. 3, at 9:30 a.m.; and 2. the exclusivity deadline will be extended to Sept. 3, to comply with the spirit of the exclusivity order and to allow the completion of the confirmation hearing. On June 28, 2013, the Court entered its order on U.S. Bank's motion to terminate the Debtors' exclusive period for filing and confirming a Plan of Reorganization, indicating if the Plan is not confirmed by Aug. 30 exclusivity will be terminated. About Jerry's Nugget and Spartan Gaming Jerry's Nugget Inc., operates Jerry's Nugget, a casino consisting of approximately 87,187 square feet of building area and 24,511 square fee of casino floor space with approximately 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. 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. Jerry's Nugget, owned by the Stamis family, 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. Gerald M. Gordon, Esq., at Gordon Silver represent the Debtors. 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, Jerry's Nugget disclosed $12,378,944 in assets and $10,771,442 in liabilities as of the Petition Date. The Debtors' Plan generally provides for the repayment of claims against the Debtors as: (i) Allowed Secured Claims will be paid in full with interest; (ii) Allowed Priority Claims will be paid in full with interests; (iii) Allowed Administrative Convenience Claims will be paid in full; and (iv) Allowed General Unsecured Claims will be paid their pro rata portion of $2,500,000, which will be funded by Debtors' ongoing operations and the $400,000 or greater contribution from the Stamis Trusts. Existing Equity Securities in JNI and Spartan Gaming will be canceled and 100 percent of the Reorganized Debtors' stock and membership issued to the Stamis Trusts. The Bankruptcy Court approved on June 28, 2013, the amended disclosure statement describing the Debtors' Joint Plan. The hearing to confirm the Plan is scheduled for Aug. 26, 2013, at 9:30 a.m. The law firm of Dorsey & Whitney represents US Bank; Morris Law Group and H3 Law represent CRE; The Schwartz Law Firm represent The George Stamis Family Trust, George Stamis and Effie Stamis. JVMW PROPERTIES: BPPR to Exercise Foreclosure on Assets ------------------------------------------------------- Secured creditor Banco Popular de Puerto has notified the U.S. Bankruptcy Court for the District of Puerto Rico that JVMW Properties Management Corp. was in default under the terms of the parties' stipulation, permitting BRPR to exercise any and all rights and remedies to seek the immediate and irrevocable relief from the automatic stay. Specifically, BPPR relates that the Debtor has not paid the $20,000 adequate protection payment due July 15. On May 3, 2013, BPPR filed a motion for relief from the automatic stay and for entry of order prohibiting the use of BPPR's cash collateral. At the hearing held on June 19, the Debtor and BPPR reached certain agreements for the resolution of the motions. According to the stipulation, the Debtor agreed to (among other things) pay to BPPR as additional adequate protection the amount of $20,000 per month, which first payment was due on July 15. The Debtor further agreed that, upon any default by the Debtor on any of the terms of the stipulation, then the automatic stay will be lifted, without any further notice or hearing, upon notification to the Court by BPPR of the default, in favor of BPPR; and that BPPR will be allowed to continue and complete any and all foreclosure and collection proceedings against the Debtor and its collateral. About JVMW Properties JVMW Properties Management Corp filed a Chapter 11 petition (Bankr. D.P.R. Case No. 13-02532) on April 1, 2013. The petition was signed by Julio Blanco D'Arcy, as president. The Debtor scheduled assets of $15,694,947 and liabilities of $25,782,161. Wigberto Lugo Mender, Esq., at Lugo Mender Group, LLC represents the Debtor in its restructuring effort. K-V PHARMACEUTICAL: Exclusive Periods Extension Sought ------------------------------------------------------ BankruptcyData reported that K-V Pharmaceutical filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan of reorganization and solicit acceptances thereof through and including October 16, 2013 and December 16, 2013, respectively. The motion explains, "Termination of the Debtors' Exclusive Periods could adversely impact the Debtors' business operations and the progress of these cases. The Debtors are in the process of soliciting acceptances of the Plan. The Confirmation Hearing is currently scheduled for August 28, 2013. If the Debtors are not granted an extension of the Exclusive Periods and the Confirmation Hearing or consummation of the Plan is delayed, the Debtors could lose the protections of section 1121 of the Bankruptcy Code before the Debtors have a meaningful opportunity to resolve any issues underlying such delay. Neither the Debtors nor their creditors can afford to enter into the litigious environment that is attendant to the proposal of competing plans of reorganization. Such an environment would not only be counterproductive, but would also significantly delay these cases to the detriment of the Debtors' estates, creditors and other parties in interest, and would undermine the Debtors' substantial (and successful) efforts to formulate a consensual chapter 11 plan. Conversely, an extension of the Exclusive Periods now, while the Debtors continue to progress towards confirmation, will enable the Debtors to continue with their reorganization efforts, and achieve confirmation and consummation of the Plan without further delay or expense." About K-V Pharmaceutical K-V Pharmaceutical Company (NYSE: KVa/KVb) -- http://www.kvpharmaceutical.com/-- is a fully integrated specialty pharmaceutical company that develops, manufactures, markets, and acquires technology-distinguished branded and generic/non-branded prescription pharmaceutical products. The Company markets its technology distinguished products through ETHEX Corporation, a subsidiary that competes with branded products, and Ther-Rx Corporation, the company's branded drug subsidiary. K-V Pharmaceutical Company and certain domestic subsidiaries on Aug. 4, 2012, filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-13346, under K-V Discovery Solutions Inc.) to restructure their financial obligations. K-V employed Willkie Farr & Gallagher LLP as bankruptcy counsel, Williams & Connolly LLP as special litigation counsel, and SNR Denton as special litigation counsel. In addition, K-V tapped Jefferies & Co., Inc., as financial advisor and investment banker. Epiq Bankruptcy Solutions LLC is the claims and notice agent. The U.S. Trustee appointed five members to serve in the Official Committee of Unsecured Creditors. Kristopher M. Hansen, Esq., Erez E. Gilad, Esq., and Matthew G. Garofalo, Esq., at Stroock & Stroock & Lavan LLP, represent the Creditors Committee. Weil, Gotshal & Manges LLP's Robert J. Lemons, Esq., and Lori R. Fife, Esq., represent an Ad Hoc Senior Noteholders Group. LEHMAN BROTHERS: JPMorgan in $23 Million Settlement with Clients ---------------------------------------------------------------- Jonathan Stempel, writing for Reuters, reported that JPMorgan Chase & Co agreed to pay $23 million to settle a lawsuit accusing it of mishandling money of pension funds and other clients by investing it in notes from Lehman Brothers Holdings Inc, which later went bankrupt. According to the report, the largest U.S. bank denied wrongdoing in agreeing to settle, and entered the settlement solely to eliminate the burden and cost of litigation, according to papers filed with the U.S. District Court in Manhattan. Lawyers for the plaintiffs called the settlement terms fair, reasonable and adequate, according to the filing, the report related. The settlement requires approval by U.S. District Judge Katherine Forrest in Manhattan. The case over the Lehman notes had been bought on behalf of participants in JPMorgan's securities lending program, led by the Operating Engineers Pension Trust of Pasadena, California, and had sought class action status, the report further related. Paul Geller, a partner at Robbins Geller Rudman & Dowd representing the plaintiffs, did not immediately respond to a request for comment, the report said. JPMorgan spokesman Brian Marchiony did not immediately respond to a similar request. The case is Board of Trustees of the Operating Engineers Pension Trust v. JPMorgan Chase Bank NA, U.S. District Court, Southern District of New York, No. 09-09333. 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 (Bankr. S.D.N.Y. Case No. 08-13555) on Sept. 15, 2008. 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, a second payment of $10.2 billion on Oct. 1, 2012, and a third distribution of $14.2 billion on April 4, 2013. The brokerage is yet to make a first distribution to non-customers, although customers are being paid in full. 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. LEHMAN BROTHERS: Moves to End Bankruptcy Fight with Citigroup ------------------------------------------------------------- Patrick Fitzgerald, writing for The Wall Street Journal, reported that the remains of Lehman Brothers Holdings Inc. want a bankruptcy judge to end Citigroup Inc.'s "interest rate arbitrage" with respect to their rival claims on $2 billion in cash Lehman deposited at Citigroup about three months before it collapsed. According to the report, in a court filing, lawyers for Lehman asked U.S. Bankruptcy Judge James Peck to step in and "provisionally allow" Lehman to use the $2 billion in cash in the account to satisfy Citigroup's claims against the failed investment bank. Lehman says that allowing it to apply the cash in the account--for the time being -- to Citi's claims will stop the accrual of interest on more than $3 billion in claims against Lehman, the report related. The problem, as Lehman sees it, is that Citi is only paying .02% interest on the disputed $2 billion in Lehman's account while the bank is demanding a much higher rate on its claims against Lehman, the report related. The interest-rate spread, Lehman says, gives Citigroup's bank unit an unfair leverage in their dispute. "If Citibank's legal position is correct, Citibank's interest-rate arbitrage during the pendency of this litigation threatens to dissipate whatever equity [Lehman] has in the $2 billion deposit," Lehman's lawyers said in a filing in U.S. Bankruptcy Court in New York. 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 (Bankr. S.D.N.Y. Case No. 08-13555) on Sept. 15, 2008. 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, a second payment of $10.2 billion on Oct. 1, 2012, and a third distribution of $14.2 billion on April 4, 2013. The brokerage is yet to make a first distribution to non-customers, although customers are being paid in full. 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 215/945-7000). LIBBEY INC: S&P Raises Rating on Sr. Sec. Notes Due 2020 to 'BB-' ----------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'B+' corporate credit rating on Libbey Inc. and revised the outlook to positive. At the same time, S&P raised its issue-level rating on Libbey's senior secured notes due 2020 to 'BB-' from 'B+' and revised the recovery rating to '2' from '3'. The '2' recovery rating indicates S&P's expectation for substantial (70% to 90%) recovery for lenders in the event of a payment default. "The revision of the outlook to positive reflects our belief that Libbey will continue to improve its credit metrics over the near term while maintaining adequate liquidity under our criteria," said Standard & Poor's credit analyst Stephanie Harter. S&P expects the company to improve its credit metrics through a combination of additional debt reductions and sustained higher EBITDA margin over the next 12 months. The ratings reflects S&P's view of the company's business risk profile as "weak" and financial risk profile as "significant". Key credit factors considered in S&P's "weak" business risk assessment include Libbey's narrow business focus, capital- intensive operations, and exposure to volatile input costs, yet significant presence in the U.S. food service glassware sector. Libbey primarily manufactures glass tableware products. Although the company also distributes and sources ceramic dinnerware and metalware, it is S&P's opinion that Libbey is narrowly focused, as it estimates about 90% of the company's sales are from glassware products. It is S&P's opinion that the glassware industry is highly fragmented and competitive, capital-intensive, and vulnerable to economic cycles and volatility in the price of natural gas, which is a major input in the manufacturing process. Despite declines in demand during the recent recession in the U.S., S&P believes long-term growth prospects remain favorable for the U.S. food service industry. Libbey maintains the lead position in glassware sales within the U.S. food service sector, and the company's significant installed base is a competitive advantage. S&P estimates, historically, close to half of the company's sales and EBITDA are from the U.S. food service channel. We believe this provides some protection against the threat of imports and some stability to Libbey's sales and cash flow because replacement purchases drive a significant portion of glassware sales to the food service channel, and S&P believes switching costs are high. The positive outlook reflects S&P's expectation that the company will maintain adequate liquidity and credit metrics will continue to strengthen over the next 12 months. S&P could consider an upgrade if Libbey sustains its operating performance and applies free operating cash flow toward debt reduction, resulting in the ratio of FFO to total debt of more than 20% while leverage remains below 4x. S&P estimates Libbey could achieve these metrics in a scenario of low-single-digit revenue growth and adjusted EBITDA margin slightly greater than current levels. S&P could consider revising the outlook to stable if the company's operating performance deteriorates significantly, or its financial policies become more aggressive such that debt were to increase to well over 5x. S&P estimates this could occur if EBITDA were to decline by more than 30%, assuming constant debt levels. LIGHTSQUARED INC: Lawyers for Falcone, Ergen Spar Over Suit ----------------------------------------------------------- Joseph Checkler writing for Daily Bankruptcy Review reports that lawyers for Dish Network Corp. Chairman Charlie Ergen and Phil Falcone squared off in front of LightSquared's bankruptcy judge, for the first time since Mr. Falcone sued Mr. Ergen over allegedly improper purchases of LightSquared's debt. About LightSquared Inc. LightSquared Inc. and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on May 14, 2012, to resolve regulatory issues that have prevented it from building its coast-to-coast integrated satellite 4G wireless network. LightSquared had invested more than $4 billion to deploy an integrated satellite-terrestrial network. In February 2012, however, the U.S. Federal Communications Commission told LightSquared the agency would revoke a license to build out the network as it would interfere with global positioning systems used by the military and various industries. In March 2012, the Company's partner, Sprint, canceled a master services agreement. LightSquared's lenders deemed the termination of the Sprint agreement would trigger cross-defaults under LightSquared's prepetition credit agreements. LightSquared and its prepetition lenders attempted to negotiate a global restructuring that would provide LightSquared with liquidity and runway necessary to resolve its issues with the FCC. Despite working diligently and in good faith, however, LightSquared and the lenders were not able to consummate a global restructuring on terms acceptable to all interested parties. Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to the Debtors. Alvarez & Marsal North America, LLC, is the financial advisor. Kurtzman Carson Consultants LLC serves as claims and notice agent. LONE PINE: LPR Canada Fails to Pay Senior Notes Interest -------------------------------------------------------- Lone Pine Resources Inc. on Aug. 15 disclosed that Lone Pine Resources Canada Ltd. elected not to make the US$10,115,625 semi- annual interest payment due on August 15, 2013 in respect of its outstanding 10.375% senior notes due 2017. The indenture, dated February 14, 2012, among LPR Canada, the Company and certain other guarantors and U.S. Bank National Association, as trustee, governing the Senior Notes provides that the failure to make such interest payment, if not cured within 30 days, will result in an event of default under the Indenture, and thereafter the Trustee or the holders of at least 25% in aggregate principal amount of the Senior Notes will have the right to declare the Senior Notes immediately due and payable at their principal amount together with accrued interest; however, holders of a majority in principal amount of the outstanding Senior Notes may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. Accordingly, if LPR Canada has not made the interest payment by September 16, 2013, an event of default under the Indenture will occur. As of August 15, 2013, there was US$195 million aggregate principal amount of Senior Notes outstanding. LPR Canada's failure to make an interest payment on the Senior Notes could also lead to a cross default under the credit agreement dated as of March 18, 2011, by and among Lone Pine, LPR Canada, JPMorgan Chase Bank, N.A., Toronto Branch as Administrative Agent and the other agents and Lenders (as defined in the Credit Agreement) party thereto (as amended, the "Credit Agreement"), which cross default could entitle the Lenders, in the absence of a waiver or forbearance agreement, to accelerate the Credit Agreement indebtedness. As of August 15, 2013, Lone Pine had approximately Cdn$178 million outstanding under the Credit Agreement. As previously disclosed, Lone Pine is focused on addressing its liquidity and leverage issues, and during the past several weeks Lone Pine has been engaged in discussions with the holders of a majority of the aggregate principal amount of the Senior Notes regarding a possible restructuring or refinancing of the Senior Notes and the indebtedness outstanding under the Credit Agreement. Those discussions with the holders are continuing, however, there is no assurance that such discussions will be successful or that an agreement on the terms of a restructuring or refinancing will be obtained before the end of the 30-day Indenture cure period. Lone Pine also remains in active dialogue with its syndicate of Lenders regarding its restructuring and refinancing efforts. If Lone Pine fails to restructure or refinance its current outstanding indebtedness within the time parameters available to it under the Credit Agreement and the Indenture or otherwise, or if any of its indebtedness is accelerated, Lone Pine will likely not have adequate liquidity to fund its operations, meet its obligations (including its debt payment obligations) and continue as a going concern, and will likely be forced to seek relief under the Canadian Companies' Creditors Arrangement Act ("CCAA") and Chapter 11 or 15 of the U.S. Bankruptcy Code (or an involuntary petition for bankruptcy relief or similar creditor action may be filed against it). Lone Pine's common stock is currently listed on the New York Stock Exchange and the Toronto Stock Exchange. If Lone Pine files or announces an intent to file for relief under the CCAA and Chapter 11 or 15 of the U.S. Bankruptcy Code and because Lone Pine is currently below a continued listing standard enumerated in section 802.01B of the NYSE Listed Company Manual, Lone Pine will be subject to immediate suspension and delisting from the NYSE. In addition, if Lone Pine's average global market capitalization is less than US$15 million over a consecutive 30 trading-day period, then, pursuant to section 802.01B of the NYSE Listed Company Manual, the NYSE will promptly initiate suspension and delisting procedures against Lone Pine, and Lone Pine will not be eligible to use sections 802.02 and 802.03 of the NYSE Listed Company Manual to appeal such suspension and delisting procedures. Continued listing of Lone Pine's common stock on the TSX is subject to compliance with the applicable requirements of the TSX Company Manual. Under section 708 of the TSX Company Manual, if Lone Pine files for relief under the CCAA and Chapter 11 or 15 of the U.S. Bankruptcy Code or any other creditor arrangement, bankruptcy or similar proceedings are instituted, the TSX may in its discretion immediately halt trading on the TSX of, and thereafter delist, Lone Pine's common stock. In addition and in accordance with section 710 of the TSX Company Manual, the TSX may delist Lone Pine's common stock if, in the opinion of the TSX, Lone Pine's financial condition is such that its ability to continue as a going concern is questionable. The TSX retains broad discretion to halt trading in and delist Lone Pine's common stock in these and other circumstances. Headquartered in Calgary, Alberta, Canada, Lone Pine Resources Inc. (NYSE, TSX: LPR) is engaged in the exploration and development of natural gas and light oil in Canada. Lone Pine's principal reserves, producing properties and exploration prospects are located in Canada in the provinces of Alberta, British Columbia and Quebec and the Northwest Territories. * * * As reported by the Troubled Company Reporter on May 30, 2013, Moody's Investors Service downgraded Lone Pine Resources Inc.'s Corporate Family Rating and Probability of Default Rating to Caa3/Caa3-PD from Caa1/Caa1-PD. The $200 million senior unsecured notes rating was downgraded to Ca from Caa1. The Speculative Grade Liquidity of SGL-4 was affirmed. Moody's said the rating outlook remains negative. LONE PINE: S&P Lowers CCR to 'D' After Missed Interest Payment -------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its long-term corporate credit rating on Calgary, Alta.-based independent exploration and production company Lone Pine Resources Canada Ltd. to 'D' from 'CCC-' after the company announced its intent not to pay its US$10 million semiannual interest payment due Aug. 15, 2013, on its 10.375% senior unsecured notes due 2017. At the same time, Standard & Poor's also lowered its issue-level ratings on the company's 10.375% senior unsecured notes to 'D' from 'C'. The '6' recovery rating on the notes is unchanged. S&P removed the ratings from CreditWatch with negative implications, where they were placed July 12. "Although the notes allow for a 30-day grace period following the interest payment date, we believe that Lone Pine will be unable to make any interest payments during the grace period," said Standard & Poor's credit analyst Aniki Saha-Yannopoulos. "This constitutes an event of default as per our criteria," Ms. Saha-Yannopoulos added. During the 30-day grace period, which began Aug. 15, Lone Pine will be in discussions with the holders of the aggregate principal amount of the notes regarding a possible restructuring or refinancing of the notes and indebtedness under the revolving facility. S&P acknowledges that there might be some possibility that the company will be able to honor its obligations of principal and interest payments at some point beyond the grace period or after the refinancing or restructuring effort is completed. However, if Lone Pine fails to restructure or refinance its debt or its debt is accelerated, it will likely file under the Canadian Companies' Creditors Arrangement Act and Chapter 11 or 15 of the U.S. Bankruptcy Code. MARTIN MIDSTREAM: Moody's Says Alinda Purchase is Credit Positive ----------------------------------------------------------------- Moody's Investors Service said that Martin Midstream LP's proposed indirect partial ownership by Alinda Capital Partners, an infrastructure investment firm, is a credit positive development for MMLP as it provides an additional source of growth through future drop-downs and improves the consolidated family leverage due to potential reduction in debt at Martin Resource Management Corporation, owner of the general partner of MMLP. Martin Midstream Partners L.P. is a public, midstream Master Limited Partnership headquartered in Kilgore, Texas. On February 5, 2013, Moody's assigned a B3 rating to Martin Midstream's proposed issuance of $250 million senior unsecured notes due 2021. Moody's also affirmed the company's B1 Corporate Family Rating, B1-PD Probability of Default Rating and the B3 rating on its outstanding $175 million senior unsecured notes due 2018. The SGL-3 Speculative Grade Liquidity (SGL) rating was unchanged. The outlook was stable. MARK DAHRLING: Couple Seeks to Dodge Ponzi Clawback Suit -------------------------------------------------------- Richard Metcalf, writing for The Albuquerque Journal, reported that an Albuquerque couple has filed for bankruptcy court protection in an effort to dodge a clawback lawsuit stemming from their lost investment with convicted Ponzi schemer Doug Vaughan. Real-estate veterans Mark and Maura Dahrling, who already face a $338,056 court-awarded judgment from a clawback against their now- closed custom homebuilding business, filed a petition for a Chapter 7 liquidation in July, according to court records. Their bankruptcy petition lists their only substantial debt as $1 million from a "clawback suit," the report related. A Chapter 7 bankruptcy is a recognized way to get rid of a civil judgment under many circumstances. "Doug Vaughan took everything from us and now (court-appointed trustee) Judith Wagner is trying to take even more," Mark Dahrling said in a statement emailed to the Journal. "We are good people and have done nothing wrong," he said, the report further cited. "We have been forced into bankruptcy in order to stop this sinister clawback litigation against us and hopefully put an end to this unbelievable nightmare." MAXCOM TELECOMUNICACIONES: Confirmation Hearing Set for Sept. 10 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Maxcom Telecomunicaciones, S.A.B. de C.V. to perform all obligations under the recapitalization agreement, by and among the Company, private equity firm Ventura Capital Privado, S.A., de C.V., and certain related parties. This approval allows the Company to continue to implement its expedited restructuring strategy and seek Court approval of its prepackaged plan of reorganization at a confirmation hearing currently scheduled for Sept. 10, 2013. The Company anticipates emerging from Chapter 11 by early fall 2013. About Maxcom Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico City, Mexico, is a facilities-based telecommunications provider using a "smart-build" approach to deliver last-mile connectivity to micro, small and medium-sized businesses and residential customers in the Mexican territory. Maxcom launched commercial operations in May 1999 and is currently offering local, long distance, data, value-added, paid TV and IP-based services on a full basis in greater metropolitan Mexico City, Puebla, Tehuacan, San Luis, and Queretaro, and on a selected basis in several cities in Mexico. In June 2013, Maxcom didn't make an $11 million interest payment on the notes. Maxcom sought bankruptcy protection (Bankr. D. Del. Case No. 13-11839) in Wilmington, Delaware, on July 23, 2013. Maxcom listed $11.1 billion in assets and $402.3 million in debt. The company had assets valued at 4.98 billion pesos ($394 million) in the quarter ended March 31, according to an April 26 regulatory filing. The company reached a restructuring agreement with Ventura Capital, a group holding about $86 million, or 48.7 percent, of the senior notes and about 44 percent of its equity holders, court papers show. The Company has engaged Lazard Freres & Co. LLC and its alliance partner Alfaro, Davila y Rios, S.C., as its financial advisor and Kirkland & Ellis LLP and Santamarina y Steta, S.C. as its U.S. and Mexican legal advisors in connection with its restructuring proceedings and potential Chapter 11 case. The Ad Hoc Group has retained Cleary Gottlieb Steen & Hamilton LLP and Cervantes Sainz, S.C., as its U.S. and Mexican legal advisors. Ventura has retained VACE Partners as its financial advisor, and Paul Hastings LLP and Jones Day as its U.S. and Mexican legal advisors, respectively. MERGE HEALTHCARE: S&P Revises Outlook to Neg. & Affirms 'B' CCR --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Chicago- based Merge Healthcare Inc. to negative from stable. In addition, S&P affirmed its 'B' corporate credit rating on the company. "The outlook revision reflects our view that the company will be challenged to restore revenue and margin growth in the near term given currently weak end-market demand, as well as by heightened near-term operational uncertainty due to the management turnover," said Standard & Poor's credit analyst Andrew Chang. "The rating on Merge reflects Standard & Poor's expectation that the company will maintain a 'weak' business risk profile that incorporates weaker-than-expected operating performance, a slowdown in end-market demand, and management turnover. We expect revenues will decline by 3% to 4% in the near term, adjusted EBITDA margins will be about 18%, and adjusted leverage will rise to about 6x by fiscal year-end 2013. However, we continue to expect modestly positive free operating cash flow in fiscal 2013 due mostly to interest savings from the refinancing completed earlier this year," added Mr. Chang. S&P considers Merge's financial risk profile "highly leveraged," and S&P revised its assessment of Merge's liquidity to "less than adequate" from "adequate," reflecting S&P's expectation of constrained covenant headroom. Merge is a health care information technology imaging solutions provider that develops software solutions to automate health care data and diagnostic workflow. Its key products include radiology- and cardiology-related imaging solutions, computer-aided detection for original equipment manufacturers, as well as solutions to create interoperability between images and electronic health care records. METRO-GOLDWYN-MAYER: S&P Raises CCR to 'B+'; Outlook Stable ----------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Beverly Hills, Calif.-based Metro-Goldwyn-Mayer Inc., including the corporate credit rating to 'B+' from 'B'. The outlook is stable. The upgrade reflects the significant improvement in Metro-Goldwyn- Mayer's credit metrics since emergence from bankruptcy in 2010. In addition, discretionary cash flow to debt has increased to about 300% from just 6% during the same period last year, which underscores the volatility in the film industry. MGM's recent discretionary cash flow generation and EBITDA growth exceeded S&P's expectations as a result of the success of "Skyfall" and "The Hobbit" in the fourth quarter of 2012. Over the next 12 months, S&P also expects the company will maintain a ratio of discretionary cash flow to debt of at least 20%. Over the intermediate term, S&P sees the potential that revolving credit facility usage could increase from current levels due to uncertainty around financial policy.. S&P regards MGM's business risk profile as "weak" because it sees a risk associated with new films other than "James Bond" and "The Hobbit" franchises, which along with the library currently account for the bulk of MGM's revenue and EBITDA. MGM faces the risk of losses and write-downs on new releases in 2013 and beyond as it pursues a steady state of production and cash flow. S&P regards the company's financial risk profile as "significant" because of its historically heavy debt burden, despite the steep debt reduction after its emergence from bankruptcy in late 2010. S&P regards current leverage as modest for a pure-play film studio, but because of a lack of clarity regarding MGM'S long-term financial policy, S&P sees a risk that leverage could increase from current levels. S&P assess MGM's management and governance as "fair" under its criteria. MGM is a pure-play filmed entertainment company. The company has an extensive film and TV library, with franchises that include the "James Bond" film series, "Rocky" films, and the "Stargate" TV series. The company also has a 50% interest in the two upcoming "Hobbit" movies. MGM's library and its "James Bond" and "Hobbit" films represent its most stable source of cash flow. The company has licensed its titles extensively to domestic and international TV channels and to digital video service providers. The company will need to develop new titles given unpredictability of success in the industry and MGM's dependence on "James Bond" films as the principal, highly profitable titles. Management has started producing a regular slate of four to six films a year, expansion of which S&P expects will be a use of future cash. S&P views the "James Bond" and "Hobbit" films as promising for MGM's future box- office performance (according to boxofficemojo, in 2012 the films were ranked 4th and 5th, respectively, for total gross domestic box office), but the company will need to develop new franchises by the end of the "Hobbit" series in 2014. METROLINA STEEL: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Metrolina Steel, Inc. 2601 Westinghouse Boulevard Charlotte, NC 28273 Bankruptcy Case No.: 13-31771 Chapter 11 Petition Date: August 14, 2013 Court: U.S. Bankruptcy Court Western District of North Carolina (Charlotte) Judge: Laura T. Beyer Debtor's Counsel: Richard S. Wright, Esq. MOON WRIGHT & HOUSTON, PLLC 227 W. Trade Street, Suite 1800 Charlotte, NC 28202 Tel: (704) 944-6564 Fax: (704) 944-0380 E-mail: rwright@mwhattorneys.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/ncwb13-31771.pdf The petition was signed by John T. Hurt, treasurer. MFM DELAWARE: Has Interim Authority to Obtain Loans from T. Kraatz ------------------------------------------------------------------ MFM Delaware, Inc., and MFM Industries, Inc., sought and obtained interim authority from the U.S. Bankruptcy Court for the District of Delaware to incur postpetition secured indebtedness and enter into a credit agreement with Thomas Kraatz. All of the Debtors' obligations under the Kraatz credit agreement, subject to a carve-out, will be entitled to super-priority claim status and be secured by perfected liens on substantially all of Industries' assets; provided, however, that Mr. Kraatz will not have any liens in accounts generated by the Debtors until Bibby Financial Services (Midwest), Inc., is indefeasibly paid in full after BFS announces its intent not to purchase additional accounts. The Kraatz DIP Liens will prime and be superior to any liens on the Cash Collateral held by Palmer Resources LLC. A hearing to consider final approval of the request is scheduled for Sept. 10, 2013, at 11:00 a.m. Objections are due Sept. 5. About MFM Industries Cat litter maker MFM Delaware, Inc., and affiliate MFM Industries, Inc., sought Chapter 11 protection (Bankr. D. Del. Case No. 13-11359 and 13-11360) on May 28, 2013. Founded in 1964 as a clay-based absorbents supplier, MFM is supplier of cat litter in the U.S. The Company produces 100,000 tons of cat litter a year, representing 1 percent of the total market. Its private label market share is 20 percent. The company's cat litter products are comprised of a blend of fuller's earth clay, sodium bentonite and scenting properties. Clay is supplied from a leased clay mine in Ocala, Florida, and is transported five miles away to the company's manufacturing plant in Reddick, Florida. Direct Capital Partners, LLC, acquired a majority stake in the Company in 1997. Frederick B. Rosner, Esq. at Rossner Law Group LLC serves as the Debtors' bankruptcy counsel, and Pharus Securities, LLC, serves as investment banker. The Official Committee of Unsecured Creditors is represented by Michael J. Barrie, Esq. at Benesch, Friedlander, Coiplan & Aronoff LLP as its counsel; and Gavin/Solmonese LLC as its financial advisor. MINT LEASING: Delays Second Quarter Form 10-Q for Review -------------------------------------------------------- The Mint Leasing, Inc., notified the U.S. Securities and Exchange COmmission that it will not be able to timely file its quarterly report on Form 10-Q for the period ended June 30, 2013. The Company said it has experienced delays in completing its financial statements for the quarter ended June 30, 2013, as its auditor has not had sufficient time to review the financial statements for the quarter ended June 30, 2013. About Mint Leasing Houston, Texas-based The Mint Leasing, Inc., is in the business of leasing automobiles and fleet vehicles throughout the United States. In its report on the consolidated financial statements for the year ended Dec. 31, 2012, M&K CPAS, PLLC, in Houston, Texas, expressed substantial doubt about Mint Leasing's ability to continue as a going concern. The independent auditors noted that Mint Leasing has a significant amount of debt due within the next 12 months, and may not be successful in obtaining renewals or renegotiating its loans. The Company reported a net loss of $238,969 on $10.0 million of revenues in 2012, compared with a net loss of $1.6 million on $10.8 million of revenues in 2011. The Company's balance sheet at March 31, 2013, showed $23.52 million in total assets, $23.30 million in total liabilities and $221,300 in total stockholders' equity. Bankruptcy Warning "Over the past approximately one-hundred and twenty days, we have been in discussions with various parties and have entered into various term sheets regarding potential funding transactions in order to enable us to raise funds sufficient to pay the discounted Settlement Amount that Comerica has previously agreed to accept in satisfaction of the Renewal. To date, we have not entered into any definitive agreements associated with such potential funding transactions and do not have sufficient funding to pay the Settlement Amount or to satisfy our other obligations under the Renewal. In the event that we are unable to pay the Settlement Amount (or the full amount of the Renewal, if required by Comerica) or are unable to come to terms on a further forbearance or extension of the Renewal, Comerica could take further actions against us to enforce its security interest over our assets, seek immediate repayment of the full amount due under the facility, seek an immediate foreclosure of such assets and/or may take other actions which have a material adverse effect on our operations, assets and financial condition or force us to seek bankruptcy protection," according to the Company's quarterly report for the period ended March 31, 2013. MONTREAL MAINE: Canada Suspends Operating License ------------------------------------------------- Paul Vieira, writing for Daily Bankruptcy Review, reported that Canada's transport regulator suspended the operating license of the railway involved in a derailment in a small town in Quebec that killed 47 people. According to the report, the Canadian Transportation Agency said it revoked the license belonging to Montreal, Maine & Atlantic Railway Ltd. because of concerns over the company's insurance coverage. The suspension takes effect on Aug. 20. MM&A filed last week for bankruptcy protection in both the U.S. and Canada, a month after a company train carrying crude oil derailed in Lac Megantic, Quebec, sparking massive explosions and wiping out sections of the town, the report related. The company in court filings said that its obligations had exceeded the value of its assets, and that the company had lost much of its freight business since the derailment, the report said. The agency said it reviewed MM&A's insurance coverage and was "not satisfied" the company had adequately restored coverage to the same level prior to the Lac Megantic derailment on July 6, the report further related. About Montreal, Maine & Atlantic Railway Montreal, Maine & Atlantic Railway Ltd., the railway company that operated the train that derailed and exploded in July 2013, killing 47 people and destroying part of Lac-Megantic, Quebec, sought bankruptcy protection in U.S. Bankruptcy Court in Bangor, Maine (Case No. 13-10670) on Aug. 7, 2013, with the aim of selling its business. Its Canadian counterpart, Montreal, Maine & Atlantic Canada Co., meanwhile, filed for protection from creditors in Superior Court of Quebec in Montreal. U.S. Bankruptcy Judge Louis H. Kornreich has been assigned to the U.S. case. The Maine law firm of Verrill Dana serves as counsel to MM&A. Justice Martin Castonguay oversees the case in Canada. MPG OFFICE: Reclassifies Results of Bank Tower & Westlawn Garage ---------------------------------------------------------------- MPG Office Trust, Inc., has restated its consolidated financial statements and related notes as of and for the three-year period ended Dec. 31, 2012, as reported in Part II, Item 8 of its annual report on Form 10-K filed with the U.S. Securities and Exchange Commission on March 18, 2013, to reflect the reclassification of the results of operations of US Bank Tower and the Westlawn off- site parking garage to discontinued operations. The reclassification of the results of operations of US Bank Tower, the Westlawn off-site parking garage and Plaza Las Fuentes had no effect on MPG Office Trust's historical reported consolidated balance sheets, net income (loss), earnings (loss) per share, or statements of comprehensive income/(loss), deficit and cash flows as of and for the three-year period ended Dec. 31, 2012. The restated consolidated financial statements and related notes are available for free at http://is.gd/WDSq6M The Company also filed a current report on Form 8-K to restate the selected financial data reported in Part II, Item 6 and the management's discussion and analysis of financial condition and results of operations reported in Part II, Item 7 of the 2012 Form 10-K to reflect the reclassification of the results of operations of US Bank Tower and the Westlawn off-site parking garage in the Q1 2013 Form 10-Q and Plaza Las Fuentes in the Q2 2013 Form 10-Q to discontinued operations. The restated selected financial data and MD&A are available for free at http://is.gd/gOwRYQ As reported in the TCR on June 21, 2013, MPG Office Trust completed the sale of US Bank Tower and the Westlawn Garage, each located in Downtown Los Angeles, CA, to Beringia Central LLC, an indirect wholly owned subsidiary of Overseas Union Enterprise Limited for $367.5 million. About MPG Office Trust MPG Office Trust, Inc., fka Maguire Properties Inc. -- http://www.mpgoffice.com/-- owns and operates Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. MPG Office Trust is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. For the year ended Dec. 31, 2012, the Company reported net income of $396.11 million, as compared with net income of $98.22 million on $234.96 million of total revenue during the prior year. The Company's balance sheet at March 31, 2013, showed $1.45 billion in total assets, $1.98 billion in total liabilities, and a $530.56 million total deficit. In its Form 10-K filing with the Securities and Exchange Commission for the fiscal year ended Dec. 31, 2012, the Company said it is working to address challenges to its liquidity position, particularly debt maturities, leasing costs and capital expenditures. The Company said, "We do not currently have committed sources of cash adequate to fund all of our potential needs, including our 2013 debt maturities. If we are unable to raise additional capital or sell assets, we may face challenges in repaying, extending or refinancing our existing debt on favorable terms or at all, and we may be forced to give back assets to the relevant mortgage lenders. While we believe that access to future sources of significant cash will be challenging, we believe that we will have access to some of the liquidity sources identified above and that those sources will be sufficient to meet our near- term liquidity needs." On March 11, 2013, the Company entered into an agreement to sell US Bank Tower and the Westlawn off-site parking garage. The transaction was to close June 28, 2013, subject to customary closing conditions. The net proceeds from the transaction are expected to be roughly $103 million, a portion of which may potentially be used to make loan re-balancing payments on the Company's upcoming 2013 debt maturities at KPMG Tower and 777 Tower. Roughly $898 million of the company's debt matures in 2013. "Our ability to access the capital markets to raise capital is highly uncertain. Our substantial indebtedness may prevent us from being able to raise debt financing on acceptable terms or at all. We believe we are unlikely to be able to raise equity capital in the capital markets," the Company said in a regulatory filing. "Future sources of significant cash are essential to our liquidity and financial position, and if we are unable to generate adequate cash from these sources we will have liquidity-related problems and will be exposed to material risks. In addition, our inability to secure adequate sources of liquidity could lead to our eventual insolvency." MUNICIPAL MORTGAGE: Incurs $5.5-Mil. Net Loss in Second Quarter --------------------------------------------------------------- Municipal Mortgage & Equity, LLC, filed its quarterly report on Form 10-Q for the quarter ended June 30, 2013, disclosing a net loss of $5.55 million on $14.85 million of total interest income, as compared with a net loss of $1.41 million on $16.87 million of total interest income for the same period last year. For the six months ended June 30, 2013, the Company reported net income of $35.95 million on $30.79 million of total interest income as compared with a net loss of $10.29 million on $33.96 million of total interest income for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $1.74 billion in total assets, $1.06 billion in total liabilities and $679.70 million in total equity. A copy of the Form 10-Q is available for free at: http://is.gd/mFOHze New Share Buyback Plan On Aug. 8, 2013, the Company's Board of Directors authorized the management to enter into an amended and restated stock repurchase program effective subsequent to the Company's filing of the quarterly report on Form 10-Q, and in any event not earlier than Aug. 15, 2013. The authorization permits the plan to be amended and restated to provide for the Company to purchase up to four million shares total, and up to 800,000 shares in any one calendar month at a price up to 100 percent of its common shareholders' equity per share as shown on its most recently filed periodic report. The Company's maximum price on the effective date of the amended and restated plan will be $1.53 based on the common shareholders' equity as reported in this quarterly report for the period ended June 30, 2013. No shares will be purchased pursuant to the amended and restated plan before Aug. 26, 2013. Conference Call Information The Company plans to host a conference call on Wednesday, Aug. 21, 2013, at 4:30 p.m. ET to provide a business update and review financial results for the quarter. The conference call will be webcast. All interested parties are welcome to join the live webcast, which can be accessed through the Company's web site at www.munimae.com, under Investor Relations. Participants may also join the conference call by dialing toll free 1-800-860-2442 or 1- 412-858-4600 for international participants and 1-866-605-3852 for Canadian participants. An archived replay of the event will be available one hour after the event through 9:00 a.m. on August 29, 2013, toll free at 1- 877-344-7529, or 1-412-317-0088 for international participants (Passcode: 10032898). About Municipal Mortgage Baltimore, Md.-based Municipal Mortgage & Equity, LLC (Pink Sheets: MMAB) -- http://www.munimae.com/-- was organized in 1996 as a Delaware limited liability company and is classified as a partnership for federal income tax purposes. When the Company became a publicly traded company in 1996, it was primarily engaged in originating, investing in and servicing tax- exempt mortgage revenue bonds issued by state and local government authorities to finance affordable multifamily housing developments. Since then, the Company made several acquisitions that significantly expanded its business. However, in 2008, due to the financial crisis, the Company began contracting its business. The Company has sold, liquidated or closed down all of its different businesses except for its bond investing activities and certain assets and residual interests related to the businesses and assets that the Company sold due to its liquidity issues. The Company has a majority position in International Housing Solutions S.a.r.l., a partnership that was formed to promote and invest in affordable housing in overseas markets. In addition, at Dec. 31, 2010, the Company has an unfunded equity commitment of $5.1 million, or 2.67% of total committed capital with respect to its role as the general partner to the South Africa Workforce Housing Fund SA I ("SA Fund"). The SA Fund was formed to invest directly or indirectly in housing development projects and housing sector companies in South Africa. A portion of the funding of SA Fund is participating debt provided by the United States Overseas Private Investment Corporation, a federal government entity, and the remainder is equity primarily invested by institutional and large private investors. The Company expects to continue this business. In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2011, KPMG LLP, in Baltimore, Maryland, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has been negatively impacted by the deterioration of the capital markets and has liquidity issues which have resulted in the Company having to sell assets and work with its creditors to restructure or extend its debt arrangements. NATURAL PORK: Sept. 20 Hearing on Sale of Brayton Residence ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Iowa will convene a hearing on Sept. 20, 2013, at 9 a.m., to consider Natural Pork Production II LLP's motion to sell the Brayton facility to Newell Pig II LLP for $5,170,000, pursuant to a Lease, Notice of Exercise of Option and asset purchase agreement. NPPII holds title to a single family residence on approximately 1.6 acres in Audubon County, Iowa, and commonly referred to as 3257 Goldfinch Place (Brayton Residence). NPPII is the successor in interest to Natural Pork Production II L.C. and is the parent, predecessor in interest, sole member and sole equity interest holder of that certain wholly-owed subsidiary, Brayton, LLC, which is a debtor in an affiliated case now pending before the Court. In connection with Brayton LLC's proposed sale of the Brayton Facility to Newell, Newell wishes to purchase the Brayton Residence from NPPII for $30,000. About Natural Pork Hog raiser Natural Pork Production II, LLP, filed for Chapter 11 bankruptcy (Bankr. S.D. Iowa Case No. 12-02872) on Sept. 11, 2012, in Des Moines. The Company formerly did business as Natural Pork Production, LLC. It does business as Crawfordsville, LLC, Brayton, LLC, South Harlan, LLC, and North Harlan, LLC. The Debtor disclosed $31.9 million in asset and $27.9 million in liabilities, including $7.49 million of secured debt in its schedules. Bankruptcy Judge Anita L. Shodeen oversees the case. Donald F. Neiman, Esq., and Jeffrey D. Goetz, Esq., at Bradshaw, Fowler, Proctor & Fairgrave, P.C., in Des Moines, Iowa, represent the Debtor as general reorganization counsel. John C. Pietila, Esq., at Davis, Brown, Koehn, Shors & Roberts, P.C., in West Des Moines, Iowa, represents the Debtor as special corporate counsel, effective as of the Petition Date. Aaron L. Hammer, Esq., Mark S. Melickian, Esq., and Michael A. Brandess, Esq., at Sugar, Felsenthal Grais & Hammer LLP, in Chicago, represent the Official Committee of Unsecured Creditors. Conway MacKenzie, Inc., serves as its financial advisor. Gary W. Koch, Esq., and Michael S. Dove, Esq., represent AgStar Financial Services, ACA, and AgStar Financial Services, FLCA, as counsel. Michael P. Mallaney, Esq., at Hudson Mallaney Schindler & Anderson, in West Des Moines, Iowa, represents the IC Committee as counsel. OGX PETROLEO: Shareholders Plan Legal Action Against Eike Batista ----------------------------------------------------------------- Luciana Magalhaes, writing for Daily Bankruptcy Review, reported that a group of shareholders of oil company OGX Petroleo e Gas Participacoes plans to soon start legal action against the company and its main shareholder, Brazilian entrepreneur Eike Batista, according to lawyer Marcio Lobo, who has been hired to represent them. The group, according to Samantha Pearson, writing for The Financial Times, is also preparing cases against OGX's former independent directors, including Brazil's former finance minister. The group has grown to about 60 minority investors, who say they have collectively lost R$70m ($31m) in the company so far, the FT report said. It accuses Eike Batista of insider trading for selling 56m of his OGX shares for R$75.4m between June 7 and June 13, the FT report added. According to CVM, Brazil's securities and exchange commission, the sale was made a fortnight before OGX announced it was suspending development of its only three producing oil wells. The announcement helped drive shares down 35 per cent. ?It was clearly an act done in bad faith,? said Aurelio Valporto, one investor from the group, which has grown from 20 to 60 members in the past two weeks with the help of investor chat rooms and social media. Based in Rio de Janeiro, Brazil, OGX is an independent exploration and production company with operations in Latin America. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2 and OGX Austria GmbH's senior unsecured notes ratings to Ca from Caa2. The rating outlook remains negative. OMNICOMM SYSTEMS: Incurs $1.6 Million Net Loss in Second Quarter ---------------------------------------------------------------- OmniComm Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.65 million on $3.72 million of total revenues for the three months ended June 30, 2013, as compared with net income of $1.55 million on $4.06 million of total revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company incurred a net loss of $6.19 million on $7.47 million of total revenues, as compared with a net loss of $1.82 million on $7.83 million of total revenues for the same period a year ago. OmniComm Systems disclosed a net loss of $7.83 million in 2012, as compared with a net loss of $3.52 million in 2011. As of June 30, 2013, the Company had $3.16 million in total assets, $38.10 million in total liabilities and a $34.93 million total shareholders' deficit. "The ability of the Company to continue in existence is dependent on its having sufficient financial resources to bring products and services to market for marketplace acceptance. As a result of our historical operating losses, negative cash flows and accumulated deficits for the period ending June 30, 2013 there is substantial doubt about the Company's ability to continue as a going concern," the Company said in the report. Liggett, Vogt & Webb, P.A., in Boynton Beach, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has a net loss attributable to common shareholders of $8,062,487, a negative cash flow from operations of $173,912, a working capital deficiency of $13,382,871 and a stockholders' deficit of $28,973,300. These factors raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available for free at: http://is.gd/sB8BLO About OmniComm Systems Ft. Lauderdale, Fla.-based OmniComm Systems, Inc., is a healthcare technology company that provides Web-based electronic data capture ("EDC") solutions and related value-added services to pharmaceutical and biotech companies, clinical research organizations, and other clinical trial sponsors principally located in the United States and Europe. ONCURE HOLDINGS: Files Schedules of Assets and Liabilities ---------------------------------------------------------- OnCure Holdings, Inc., delivered with the U.S. Bankruptcy Court for the District of Delaware Assets Liabilities ----------- ------------- A. Real Property $0 B. Personal Property $52,435,685 C. Property Claimed as Exempt - D. Creditors Holding Secured Claims $225,000,000 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Nonpriority Claims $0 ----------- ------------- Total $52,435,685 $225,000,000 Full-text copies of the Schedules are available for free at: http://bankrupt.com/misc/ONCUREsal0802.pdf About OnCure Holdings Headquartered in Englewood, Colorado, OnCure Holdings, Inc. -- http://www.oncure.com/-- provides management services and facilities to oncology physician groups throughout the country. OnCure Holdings and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del. Case Nos. 13-11540 to 13-11562) in Wilmington on June 14, 2013. Bradford C. Burkett signed the petition as CEO. On the Petition Date, the Debtors disclosed total assets of $179,327,000 and total debts of $250,379,000. There's at least $15 million owing on a first-lien term loan facility, as well as $210 million on prepetition secured notes. Paul E. Harner, Esq., and Keith A. Simon, Esq., at Latham & Watkins LLP, in New York, serve as the Debtors' lead bankruptcy counsel. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger P.A., in Wilmington, Delaware, serves as the Debtors' local Delaware counsel. Kurtzman Carson Consultants is the claims and notice agent. Match Point Partners LLC provides management services to OnCure. The Debtors have signed a deal to sell the business to Radiation Therapy Services Holdings Inc. for $125 million, absent higher and better offers. RTS's offer comprises $42.5 million in cash (plus covering certain expenses and subject to certain working capital adjustments) and up to $82.5 million in assumed debt. Secured noteholders are supporting the RTS deal. Millstein & Co., Kirkland & Ellis LLP, Alvarez & Marsal and Deloitte advise Radiation Therapy in connection with the transaction. Promptly before the bankruptcy filing, the Debtors entered into a restructuring support agreement with the members of an ad hoc committee of its secured notes, constituting 100% of the lenders under the first lien term loan credit agreement and approximately 73% of the secured notes, pursuant to which they have agreed to support a stand-alone restructuring of the Debtors, subject to an auction process for a sale of substantially all of the Debtors' assets or the equity of the reorganized Debtors pursuant to a chapter 11 plan. Roberta A. DeAngelis, U.S. Trustee for Region 3 notified the Court that she was unable to appoint an official committee of unsecured creditors due to insufficient response from creditors. ORAGENICS INC: Incurs $2.1 Million Net Loss in Second Quarter ------------------------------------------------------------- Oragenics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.07 million on $167,668 of net revenue for the three months ended June 30, 2013, as compared with a net loss of $6.92 million on $256,407 of net revenue for the same period during the prior year. For the six months ended June 30, 2013, the Company incurred a net loss of $3.66 million on $344,075 of net revenue, as compared with a net loss of $8.54 million on $636,934 of net revenue for the same period a year ago. Oragenics incurred a net loss of $13.09 million in 2012, as compared with a net loss of $7.67 million in 2011. As of June 30, 2013, the Company had $7.07 million in total assets, $1.38 million in total liabilities, all current, and $5.68 million in total shareholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/pbi4uM About Oragenics Inc. Tampa, Fla.-based Oragenics, Inc. -- http://www.oragenics.com/-- is a biopharmaceutical company focused primarily on oral health products and novel antibiotics. Within oral health, Oragenics is developing its pharmaceutical product candidate, SMaRT Replacement Therapy, and also commercializing its oral probiotic product, ProBiora3. Within antibiotics, Oragenics is developing a pharmaceutical candidate, MU1140-S and intends to use its patented, novel organic chemistry platform to create additional antibiotics for therapeutic use. ORCKIT COMMUNICATIONS: Networks Terminates SIA ---------------------------------------------- Networks Inc. has delivered notice to Orckit terminating the March 12, 2013, Strategic Investment Agreement on the grounds that one of the conditions precedent for closing the transactions contemplated by the SIA has not been satisfied. This condition precedent requires that the Israeli Office of the Chief Scientist issue an approval of the transfer of intellectual property from Orckit to Networks in a form satisfactory to Networks. On Aug. 8, 2013, a meeting was held among representatives of Orckit and Networks and the Deputy Chief Scientist in which the concerns of Networks were discussed. Following that meeting, the OCS issued a revised draft approval that, in the view of Orckit, satisfactorily addresses the concerns raised by Networks. Orckit is examining its next steps, including the initiation of legal action to enforce its rights under the SIA. About Orckit Tel-Aviv, Israel-based Orckit Communications Ltd. (TASE: ORCT) engages in the design, development, manufacture and marketing of advanced telecom equipment to telecommunication service providers in metropolitan areas. The Company's products are transport telecommunication equipment targeting high capacity packetized metropolitan networks. ORCKIT Communications disclosed a net loss of $6.46 million on $11.19 million of revenues for the year ended Dec. 31, 2012, as compared with a net loss of $17.38 million on $15.58 million of revenues for the year ended Dec. 31, 2011. The Company's balance sheet at March 31, 2013, showed US$14.93 million in total assets, US$25.28 million in total liabilities and a US$10.35 million total capital deficiency. Kesselman & Kesselman, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has a capital deficiency, recurring losses, negative cash flows from operating activities and has significant future commitments to repay its convertible subordinated notes. These facts raise substantial doubt as to the Company's ability to continue as a going concern. ORMET CORP: Facing Liquidity Crisis, Seeks $10MM in Add'l Loans --------------------------------------------------------------- Michael Tanchuk, president and CEO of Ormet Corporation, said in court papers that the Hannibal, Ohio-based aluminum producer does "not currently have a sufficient source of revenue with which to make payment of their chapter 11 expenses and operating expenses, both of which are critical to avoid a shut-down of the Debtors' businesses, the attendant loss of jobs and the devastating impact on the local economy," absent an amendment to the Debtors' postpetition financing agreement. Ormet is asking the Bankruptcy Court to enter interim and final orders authorizing the Debtors to enter into an amendment to the Term Loan DIP Credit Agreement. The DIP Amendment would provide up to $10 million in funding under the Term Loan DIP Credit Agreement, subject to certain closing conditions. Specifically, the DIP Amendment provides for: -- The amendment of Schedule 2.1(b) to the Term Loan DIP Credit Agreement to provide for up to a total delayed draw term loan of $25,000,000, of which $10,000,000 constitutes the Supplemental DIP Financing. -- In consideration of the Supplemental DIP Financing and entering into the DIP Amendment, the release of the DIP Term Loan Agent, the DIP Term Loan Secured Parties and certain parties related to each of the foregoing by each Borrower and each Obligor. -- As conditions precedent to the effectiveness of the DIP Amendment: (i) that there shall have been entered into an amendment to (a) the Revolving Loan DIP Credit Agreement and (b) the Intercreditor Agreement, each in form and substance satisfactory to the DIP Term Loan Secured Parties, permitting the incurrence of the Supplemental DIP Financing under the Term Loan DIP Credit Agreement, and (ii) an agreement by the Revolving Loan Secured Parties to make available not less than $4 million of additional liquidity under the Revolving Loan DIP Credit Agreement by removing or modifying certain blocks and/or reserves thereunder. The total amount of funding under the DIP Term Loan Agreement will increase to $40,000,000, of which $15,000,000 was initially drawn pursuant to the Initial Term Loan and $15,000,000 was drawn as delayed draws under the Term Loan DIP Credit Agreement. On the Petition Date, the Debtors filed an Emergency Motion for Interim and Final Orders (A) Authorizing Debtors to Obtain Post- Petition Financing and Grant Security Interests and Super-Priority Administrative Expense Status Pursuant to 11 U.S.C. Sections 105 and 364(a); (B) Modifying the Automatic Stay Pursuant to 11 U.S.C. Sec. 362; (C) Authorizing Debtors to Enter Into Agreements With Wells Fargo Capital Finance, LLC; (D) Authorizing Debtors to Enter Into Agreements With Wayzata Investment Partners, LLC; and (E) Scheduling a Final Hearing Pursuant to Bankruptcy Rule 4001. On Feb. 27, 2013, the Court approved the DIP Motion, including entry into the DIP Loan Documents, on an interim basis. On March 22, 2013, the Court entered an order approving the DIP Motion on a final basis. Pursuant to the DIP Order, the Debtors were authorized to borrow (a) up to $60,000,000 under the Revolving Loan DIP Credit Agreement and the Revolving DIP Loan Documents and (b) $30,000,000 under the Term Loan DIP Credit Agreement and the Term DIP Loan Documents. Ormet Seeks to Delay Payment to AEP On June 6, 2013, the Court authorized the Debtors to sell substantially all of their assets to Smelter Acquisition LLC. As a condition to closing of the Sale, the Debtors are required to obtain an order from the Public Utilities Commission of Ohio providing for certain modifications to their existing "Unique Arrangement," the arrangement by which the Debtors purchase their electricity requirements from Ohio Power Company d/b/a AEP Ohio. The modifications would provide certainty as to the cost at which the Buyer would be able to purchase electricity upon closing. To date, the Debtors have not obtained the PUCO Order and, accordingly, have been unable to close the Sale. On June 14, 2013, the Debtors filed their Motion to Amend the 2009 Unique Arrangement Between Ohio Power Company and Ormet Primary Aluminum Corporation and Request for Emergency Relief. The PUCO scheduled an evidentiary hearing on the Motion to Modify for Aug. 27. Based on past experience, the Debtors believe that a decision on the merits of the Motion to Modify from the PUCO may take an additional 60 days from the date of the hearing, in late October. Accordingly, and given the current liquidity needed to continue operations until the hearing can occur and a decision on the merits be reached by the PUCO, on July 31, the Debtors filed a Motion for Expedited Approval of Payment Deferral and Memorandum in Support of Ormet Primary Aluminum Corporation before the PUCO, in which they request the right to defer payment of the July and August AEP invoices. The PUCO has not yet ruled on the Deferral Motion and AEP is opposing the relief requested. In light of the pending proceedings before the PUCO and the delayed closing of the Sale, the Debtors are facing a severe liquidity crisis, Mr. Tanchuk said. The Debtors' court papers said even if the deferrals requested in the Deferral Motion are received, they will not, by themselves, provide the Debtors sufficient liquidity to await a final decision by the PUCO on the merits of the Motion to Modify. Accordingly, the Debtors have requested additional funding from the DIP Term Loan Secured Parties, as well as the Revolving Loan Secured Parties. The DIP Secured Parties and the Debtors have worked diligently on the terms of such additional funding. The Debtors initially anticipated filing an alternative version of the Motion to Modify during the initial weeks of these bankruptcy proceedings; however, as a result of an increase in the fuel adjustment charge, as filed by AEP on March 1, 2013, four days after the Petition Date, the Debtors were forced to reassess the request for modifications. The Debtors expect this additional funding will allow for continued operations through mid-September, and together with the request to defer payments to AEP Ohio, would allow for continued operations through the end of October 2013, by which time the Debtors expect to receive a ruling from the PUCO on the Motion to Modify. The Debtors noted that the Revolving Loan Secured Parties have not agreed, and may not agree, to the requested accommodation of providing for no less than $4 million of additional liquidity to the Debtors under the Revolving Loan DIP Credit Agreement and making the corresponding amendments to the Revolving Loan DIP Credit Agreement in respect of the proposed amendments to the Term Loan DIP Credit Agreement in connection with the Supplemental DIP Financing. About Ormet Corp. Aluminum producer Ormet Corporation, along with affiliates, filed for Chapter 11 protection (Bankr. D. Del. Case No. 13-10334) on Feb. 25, 2013, with a deal to sell the business to a portfolio company owned by private investment funds managed by Wayzata Investment Partners LLC. Headquartered in Wheeling, West Virginia, Ormet -- http://www.ormet.com/-- is a fully integrated aluminum manufacturer, providing primary metal, extrusion and thixotropic billet, foil and flat rolled sheet and other products. Ormet disclosed assets of $406.8 million and liabilities totaling $416 million. Secured debt of about $180 million includes $139.5 million on a secured term loan and $39.3 million on a revolving credit. Affiliates that separately filed Chapter 11 petitions are Ormet Primary Aluminum Corporation; Ormet Aluminum Mill Products Corporation; Specialty Blanks Holding Corporation; and Ormet Railroad Corporation. Ormet is represented in the case by Morris, Nichols, Arsht & Tunnell LLP's Erin R. Fay, Esq., Robert J. Dehney, Esq., Daniel B. Butz, Esq.; and Dinsmore & Shohl LLP's Kim Martin Lewis, Esq., Patrick D. Burns, Esq. Kurtzman Carson Consultants is the claims and notice agent. Evercore's Lloyd Sprung and Paul Billyard serve as investment bankers to the Debtor. An official committee of unsecured creditors was appointed in the case in March 2013. The Committee is represented by: Rafael X. Zahralddin, Esq. Shelley A. Kinsella, Esq. Jonathan M. Stemerman, Esq. ELLIOTT GREENLEAF 1105 North Market Street, Suite 1700 Wilmington, DE 19801 Telephone: 302-384-9400 Facsimile: 302-384-9399 E-mail: rxza@elliottgreenleaf.com sak@elliottgreenleaf.com jms@elliottgreenleaf.com - and - Sharon Levine, Esq. S. Jason Teele, Esq. Cassandra M. Porter, Esq. LOWENSTEIN SANDLER LLP 65 Livingston Avenue Roseland, NJ 07068 Telephone: 973-597-2500 Facsimile: 973-597-2400 E-mail: steele@lowenstein.com cporter@lowenstein.com In June 2013, the Bankruptcy Court approved the sale of substantially all of the assets of Ormet to Smelter Acquisition, LLC, a portfolio company owned by private investment funds managed by Wayzata Investment Partners LLC. With no competing bids, Wayzata acquired the business in exchange for $130 million in secured debt plus the loan financing bankruptcy. In connection with its restructuring, Ormet received aggregate commitments of $90 million of DIP Financing, consisting of $30 million in Term DIP financing from Wayzata and a $60 million DIP facility from Wells Fargo, which replaced its $60 million pre-petition revolver with Ormet. ORMET CORP: Seeks Emergency Approval for Extra $10-Mil. Loan ------------------------------------------------------------ Law360 reported that troubled aluminum smelter Ormet Corp. launched an emergency motion asking a Delaware bankruptcy judge to bless a $10 million expansion of its debtor-in-possession loan, saying the extra funds are crucial as it fights to stay afloat until its court-approved sale to a private equity firm can close. According to the report, designed to close by the end of July, its $130 million sale to firm Wayzata Investment Partners LLC has been pending while Ormet awaits a key ruling from Ohio utility regulators as a condition of the deal. About Ormet Corp. Aluminum producer Ormet Corporation, along with affiliates, filed for Chapter 11 protection (Bankr. D. Del. Case No. 13-10334) on Feb. 25, 2013, with a deal to sell the business to a portfolio company owned by private investment funds managed by Wayzata Investment Partners LLC. Headquartered in Wheeling, West Virginia, Ormet -- http://www.ormet.com/-- is a fully integrated aluminum manufacturer, providing primary metal, extrusion and thixotropic billet, foil and flat rolled sheet and other products. Ormet disclosed assets of $406.8 million and liabilities totaling $416 million. Secured debt of about $180 million includes $139.5 million on a secured term loan and $39.3 million on a revolving credit. Attorneys at Dinsmore & Shohl LLP and Morris, Nichols, Arsht & Tunnell LLP serve as counsel to the Debtors. Kurtzman Carson Consultants is the claims and notice agent. Evercore's Lloyd Sprung and Paul Billyard serve as investment bankers to the Debtor. PATIENT SAFETY: Incurs $568,600 Net Loss in Second Quarter ---------------------------------------------------------- Patient Safety Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss applicable to common shareholders of $568,615 on $4.95 million of revenues for the three months ended June 30, 2013, as compared with a net loss applicable to common shareholders of $656,992 on $4.40 million of revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company incurred a net loss applicable to common shareholders of $1.39 million on $9.71 million of revenues, as compared with a net loss applicable to common shareholders of $2.08 million on $7.50 million of revenues for the same period a year ago. Patient Safety reported a net loss of $1.89 million in 2011, compared with net income of $2 million during the prior year. As of June 30, 2013, the Company had $17.97 million in total assets, $6.08 million in total liabilities and $11.89 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/f3Izsc About Patient Safety Technologies Patient Safety Technologies, Inc. (OTC: PSTX) -- http://www.surgicountmedical.com/-- through its wholly owned operating subsidiary SurgiCount Medical, Inc., provides the Safety-Sponge(TM) System, a system designed to improve the standard of patient care and reduce health care costs by preventing the occurrence of surgical sponges and other retained foreign objects from being left inside patients after surgery. RFOs are among one of the most common surgical errors. PATRIOT COAL: Statements on New CBA Agreements Filed ---------------------------------------------------- BankruptcyData reported that U.S. Bank National Association, as indenture trustee, filed with the U.S. Bankruptcy Court a statement with respect to Patriot Coal's motion for entry of an order to (i) enter into new collective bargaining agreements with the United Mine Workers of America (UMWA), (ii) enter into a memorandum of understanding with the UMWA and (iii) take such actions as may be necessary or desirable in connection with or in furtherance of the 1113 settlement and the 1114 settlement. U.S. Bank states, "The Trustee supports a consensual resolution of the 1113/1114 Motion as an effort that presumably will move these bankruptcy cases forward. However, the Trustee takes no position on the substance of the 1113/1114 Settlement Motion and the issues raised therein. The Trustee files this response to renew its consistent position that to the extent that any order on the relief requested in the 1113/1114 Settlement Motion should avoid directly or indirectly any ruling on the substantive consolidation or non-consolidation of the Debtors' estates or the allowance or disallowance of intercompany claims. Any such determinations should be made by this Court only after appropriate disclosure to and an opportunity to be heard from all creditors of these estates, including the holders of the Notes, under the safeguards of a confirmation process pursuant to sections 1125, 1126, 1129 and other applicable provisions of the Bankruptcy Code. Therefore, the Trustee respectfully requests that the Court refrain from entering any order on the 1113/1114 Settlement Motion that has a preclusive effect on the substantive consolidation or non- consolidation of the Debtors estates, the allowance or disallowance of intercompany claims, or other plan of reorganization issues. With respect to all other issues raised in the 1113/1114 Settlement Motion, the Trustee takes no position." The official committee of unsecured creditors also filed a separate statement in support of the Debtor's motion, the report related. About Patriot Coal St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer and marketer of coal in the eastern United States, with 13 active mining complexes in Appalachia and the Illinois Basin. The Company ships to domestic and international electricity generators, industrial users and metallurgical coal customers, and controls roughly 1.9 billion tons of proven and probable coal reserves. Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11 petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y. Lead Case No. 12-12900) on July 9, 2012. Patriot said it had $3.57 billion of assets and $3.07 billion of debts, and has arranged $802 million of financing to continue operations during the reorganization. Davis Polk & Wardwell LLP serves as lead restructuring counsel. Bryan Cave LLP serves as local counsel to the Debtors. Blackstone Advisory Partners LP is serving as financial advisor, and AP Services, LLC is providing interim management services to Patriot in connection with the reorganization. Ted Stenger, a Managing Director at AlixPartners LLP, the parent company of AP Services, has been named Chief Restructuring Officer of Patriot, reporting to the Chairman and CEO. GCG, Inc. serves as claims and noticing agent. The U.S. Trustee appointed a seven-member creditors committee. Kramer Levin Naftalis & Frankel LLP serves as its counsel. HoulihanLokey Capital, Inc., serves as its financial advisor and investment banker. Epiq Bankruptcy Solutions, LLC, serves as its information agent. On Nov. 27, 2012, the New York bankruptcy judge moved Patriot's bankruptcy case to St. Louis. The order formally sending the reorganization to Missouri was signed December 19 by the bankruptcy judge. The New York Judge in a Jan. 23, 2013 order denied motions to transfer the venue to the U.S. Bankruptcy Court for the Southern District of West Virginia. PATRIOT COAL: UMWA Members Ratify Settlement -------------------------------------------- Members of the United Mine Workers of America (UMWA) who work at Patriot Coal operations in West Virginia and Kentucky on Aug. 16 ratified a settlement the union reached with the company late last week that makes significant improvements in terms and conditions of employment over a federal Bankruptcy Judge's order from last May. The final tally was 85% in favor to 15% opposed. Members from 13 local unions participated in the vote, which was overseen by UMWA local union tellers and conducted at worksites. The UMWA International Auditor/Tellers have certified the vote. "The membership has made it clear that they are willing to do their part to keep Patriot operating, keep their jobs and ensure that thousands of retirees continue getting the health care they depend on and deserve," UMWA International President Cecil E. Roberts said. "This has been a difficult and uncertain year for our members. But I believe that in the end, they understood that we had done a lot to improve what the judge had ordered. They also understood all that was at stake and resolved to move forward in a positive way. "But as we work to keep Patriot a viable company into the future, we have not forgotten how we got here and who is responsible," Ms. Roberts said. "With this agreement, we have foiled the schemes of Peabody Energy and Arch Coal by continuing to both provide health care for retirees and maintain union jobs at these mines." Ms. Roberts noted that the settlement with Patriot does not provide enough resources to fulfill the promise of lifetime health care benefits that Peabody and Arch agreed to provide to thousands of retirees from those companies. "We are now able to turn our full attention to securing the lifetime health care benefits Peabody and Arch promised these retirees," Ms. Roberts said. "If those companies thought our public effort to highlight their poor corporate citizenship was over, they will quickly find out otherwise. We're moving into a new phase of that effort, and soon. We fully intend to hold Peabody and Arch accountable. "It is also more critical than ever that the bipartisan legislative efforts in Congress to provide help to these retirees move forward," Ms. Roberts said. "This settlement has not solved that problem, it has only bought us time to seek a more permanent solution. "The clock is now ticking towards a day when the funding we have been able to secure for retiree health care benefits will run out," Ms. Roberts said. "It would be unconscionable to leave these senior citizens hanging, wondering if they will be again thrust into the uncertainty they have endured the last 13 months. I urge our friends in Congress on both sides of the aisle to move as fast as they can to renew the government's promise to these retirees, their dependents and widows." About Patriot Coal St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer and marketer of coal in the eastern United States, with 13 active mining complexes in Appalachia and the Illinois Basin. The Company ships to domestic and international electricity generators, industrial users and metallurgical coal customers, and controls roughly 1.9 billion tons of proven and probable coal reserves. Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11 petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y. Lead Case No. 12-12900) on July 9, 2012. Patriot said it had $3.57 billion of assets and $3.07 billion of debts, and has arranged $802 million of financing to continue operations during the reorganization. Davis Polk & Wardwell LLP serves as lead restructuring counsel. Bryan Cave LLP serves as local counsel to the Debtors. Blackstone Advisory Partners LP is serving as financial advisor, and AP Services, LLC is providing interim management services to Patriot in connection with the reorganization. Ted Stenger, a Managing Director at AlixPartners LLP, the parent company of AP Services, has been named Chief Restructuring Officer of Patriot, reporting to the Chairman and CEO. GCG, Inc. serves as claims and noticing agent. The U.S. Trustee appointed a seven-member creditors committee. Kramer Levin Naftalis & Frankel LLP serves as its counsel. HoulihanLokey Capital, Inc., serves as its financial advisor and investment banker. Epiq Bankruptcy Solutions, LLC, serves as its information agent. On Nov. 27, 2012, the New York bankruptcy judge moved Patriot's bankruptcy case to St. Louis. The order formally sending the reorganization to Missouri was signed December 19 by the bankruptcy judge. The New York Judge in a Jan. 23, 2013 order denied motions to transfer the venue to the U.S. Bankruptcy Court for the Southern District of West Virginia. PENN CENTRAL: 3rd Circ. Backs $14.7MM Award to Former Employees --------------------------------------------------------------- Law360 reported that the Third Circuit upheld a nearly $15 million arbitration award for former Penn Central Transportation Co. employees and their estates against successor company American Premier Underwriters Inc., ruling in the 44-year-old dispute that PCTC's reorganization didn't modify wage and benefit obligations to the workers. Despite that vintage, it was only in 2009 that an arbitration panel awarded 32 claimants $564,820 in benefits based on a 1964 merger protection agreement, along with more than $13.4 million in prejudgment interest, according to the opinion, the report related. The case is In The Matter of Penn Central Transportation Co., No. 70-347 (E.D. Pa.). PENSON WORLDWIDE: 5th Amended Liquidation Plan Effective -------------------------------------------------------- BankruptcyData reported that Penson Worldwide's Fifth Amended Joint Liquidation Plan became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on July 31, 2013. According to documents filed with the Court, "The Plan provides for the Debtors' property to be liquidated, and for the proceeds of the liquidation, including any recoveries obtained from litigation against third parties, to be distributed to holders of Allowed Claims and Equity Interests in accordance with the terms of the Plan and the priority of claims provisions of the Bankruptcy Code. The Plan further provides that on or before the Effective Date, Penson Technologies LLC ('PTL') will be formed as a Delaware limited liability company and all assets of the Debtors will be conveyed and transferred to PTL for the liquidation, administration, and distribution of the Debtors' property by PTL....Pursuant to the PTL LLC Agreement, PTL will be managed by the Board of Managers will consists of two members appointed by the Second Lien Noteholders Committee, one member appointed by the Convertible Noteholders Committee and one member appointed by the Committee." About Penson Worldwide Plano, Texas-based Penson Worldwide Inc. and its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-10061) on Jan. 11, 2013. Founded in 1995, Penson Worldwide is provider of a range of critical securities and futures processing infrastructure products and services to the global financial services industry. The company's products and services include securities and futures clearing and execution, financing and cash management technology and other related offerings, and it provides tools and services to support trading in multiple markets, asset classes and currencies. Penson was one of the top two clearing brokers overall in the United States. Its foreign-based subsidiaries were some of the largest independent clearing brokers in Canada and Australia and the second largest independent clearing broker in the United Kingdom as of Dec. 31, 2010. In 2012, the company sold its futures division to Knight Capital Group Inc. and its broker-deal subsidiary to Apex Clearing Corp. But the company was unable to successfully streamline is business after the asset sales. Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. The U.S. Trustee for Region 3 appointed three members to the Official Committee of Unsecured Creditors: (i) Schonfeld Group Holdings LLC; (ii) SunGard Financial Systems LLC; and (iii) Wells Fargo Bank, N.A., as Indenture Trustee. The Committee selected Hahn & Hessen LLP and Cousins Chipman & Brown, LLP to serve as its co-counsel, and Capstone Advisory Group, LLC, as its financial advisor. Kurtzman Carson Consultants LLC serves as its information agent. The company estimated $100 million to $500 million in assets and liabilities in its Chapter 11 petition. The last publicly filed financial statements as of June 30 showed assets of $1.17 billion and liabilities totaling $1.227 billion. PEREGRINE FINANCIAL: US Bank Is Complicit in Fraud, CFTC Says ------------------------------------------------------------- Law360 reported that the U.S. Commodity Futures Trading Commission bucked U.S. Bank NA's bid to toss a suit accusing it of helping bankrupt Peregrine Financial Group Inc.'s former CEO misappropriate $215 million in customer funds, arguing the bank is directly liable for violating the Commodity Exchange Act. According to the report, the regulator told an Iowa federal court that its complaint contains detailed factual allegations describing U.S. Bank's knowledge that it was holding Peregrine customer funds regulated by the CEA, its illegal use of those funds and its subsequent gains from those funds. The case is US Commodity Futures Trading Commission v. US Bank, NA, Case No. 6:13-cv-02041 (N.D. Iowa), before Judge Linda R. Reade. 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. PHILADELPHIA, PA: Borrows So Its Schools Open on Time ----------------------------------------------------- Rick Lyman and Mary Williams Walsh, writing for The New York Times, reported that just a month after Detroit became the largest American city to file for bankruptcy, and with major cities like Chicago and Los Angeles struggling, Philadelphia, a former manufacturing behemoth, is also edging toward a financial precipice. But here the troubles are centered on the cash-starved public schools system. The situation is not as dire yet as Detroit's, WSJ said. There is no talk of resorting to bankruptcy. But the problem is so severe that the city agreed at the last minute to borrow $50 million just to be able to open schools on time. Even with that money, schools will open Sept. 9 with a minimum of staffing and sharply curtailed extracurricular activities and other programs. "The concept is just jaw-dropping," said Helen Gym, who has three children in the city's public schools, the report cited. "Nobody is talking about what it takes to get a child educated. It's just about what the lowest number is needed to get the bare minimum. That's what we're talking about here: the deliberate starvation of one of the nation's biggest school districts." Superintendent William R. Hite Jr. had been threatening to delay opening schools if the city did not come through with the $50 million, which he said was necessary to provide the minimum staffing needed for the basic safety of the district's 136,000 students, the report related. In June, the district closed 24 schools and laid off 3,783 employees, including 127 assistant principals, 646 teachers and more than 1,200 aides, leaving no one even to answer phones. For a number of years, Mayor Michael A. Nutter and the City Council have been working, with some success and a fair amount of taxpayer pain, to shore up the city's finances, which have been troubled by mounting debt, a shrinking tax base and unfunded pension and health care obligations to retirees, the report related. But the school district, supported by the same weary municipal taxpayers, though under the control of a state reform commission for more than a decade, had been largely ignored. PHYSICAL PROPERTY: Incurs HK$43,000 Net Loss in Second Quarter -------------------------------------------------------------- Physical Property Holdings Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss and total comprehensive loss of HK$43,000 on HK$275,000 of total operating revenues for the three months ended June 30, 2013, as compared with a net loss and total comprehensive loss of HK$175,000 on HK$145,000 of total operating revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company incurred a net loss and total comprehensive loss of HK$180,000 on HK$503,000 of total operating revenues, as compared with a net loss and total comprehensive loss of HK$272,000 on HK$376,000 of total operating revenues for the same period a year ago. Physical Property disclosed a net loss and comprehensive loss of HK$514,000 on HK$841,000 in 2012, as compared with a net loss and comprehensive loss of HK$524,000 in 2011. The Company's balance sheet at June 30, 2013, showed HK$9.81 million in total assets, HK$11.52 million in total liabilities, all current, and a HK$1.71 million total stockholders' deficit. "The Company had negative working capital of HK$11,482,000 as of June 30, 2013 and incurred losses of HK$180,000 and HK$272,000 for the six months ended June 30, 2013 and 2012 respectively. These conditions raised substantial doubt about the Company's ability to continue as a going concern," the Company said in the Report. Mazars CPA Limited, in Hong Kong, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012, citing negative working capital as of Dec. 31, 2012, and loss for the year then ended, which raised substantial doubt about its ability to continue as a going concern. A copy of the Form 10-Q is available for free at: http://is.gd/FN5U1O About Physical Property Located in Hong Kong, Physical Property Holdings Inc., through its wholly-owned subsidiary, Good Partner Limited, owns five residential apartments located in Hong Kong. The Company was incorporated in the State of Delaware. PICCADILLY RESTAURANT: Hearing Today on Exclusivity Extension Bid ----------------------------------------------------------------- The Bankruptcy Court will convene a hearing on Aug. 20, 2013, at 10 a.m., to consider Piccadilly Restaurants, LLC's third request for exclusivity extension. At the hearing, the Court will also consider objections to the Debtors' motion. The Official Committee of Unsecured Creditors, in its objection, requests that the Court deny an extension and immediately terminate exclusivity. The Committee said that to grant the Debtors' request would only delay the plan process and muster the estates with additional costs without any prospective corresponding benefit. Atalaya Administrative LLC, in its capacity as administrative agent for the prepetition and postpetition lenders to the Debtors, in its objection, stated that despite multiple overtures from Atalaya to discuss a plan, and indications that it would be reasonable in restructuring the Debtors' balance sheet, the Debtors steadfastly refused to talk. Atalaya stated that exclusivity must not be used to hold creditors hostage. The Debtors requested that the Court extend their exclusive periods to solicit acceptance for the Plan until Nov. 12, 2013. The Debtors relate that they need more time to continue negotiations with creditors. As reported in the Troubled Company Reporter on July 22, 2013, the Debtors' Joint Chapter 11 Plan of Reorganization proposed with Yucaipa Corporate Initiatives Fund I, L.P., contemplates that Yucaipa will advance cash to the Debtors, which will be available to the Reorganized Debtors for the purpose of effectuating the Joint Plan. The Yucaipa Advance will accrue interest at a fixed rate of 9% per annum, with the Debtors' obligation to pay the Advance be secured with a first priority lien. Payment of the Yucaipa Advance will be subordinated to the General Unsecured Claim Note in right of payment -- but not in lien priority -- until the General Unsecured Claim Note is paid in full. About Piccadilly Restaurants Piccadilly Restaurants, LLC, and two affiliated entities sought Chapter 11 bankruptcy protection (Bankr. W.D. La. Case Nos. 12-51127 to 12-51129) on Sept. 11, 2012. The affiliates are Piccadilly Food Service, LLC, and Piccadilly Investments LLC. Piccadilly Restaurants, LLC, headquartered in Baton Rouge, Louisiana, is the largest cafeteria-style restaurant in the United States, with operations in 10 states in the Southeast and Mid- Atlantic regions. It is wholly owned by Piccadilly Investments, LLC. Piccadilly operates an institutional foodservice division through a wholly owned subsidiary, Piccadilly Food Service, LLC, servicing schools and other organizations. With a history dating back to 1944, the Company operates 81 restaurants at three owned and 78 leased locations. Then known as Piccadilly Cafeterias, Inc., the Company filed for Chapter 11 relief (Bankr. S.D. Fla. Case No. 03-27976) on Oct. 29, 2003. Paul Steven Singerman, Esq., and Jordi Guso, Esq., at Berger Singerman, P.A. represented the Debtor in the case. After Piccadilly declared bankruptcy under Chapter 11, but before its plan was submitted to the Bankruptcy Court for the Southern District of Florida, the Bankruptcy Court authorized Piccadilly to sell its assets to Yucaipa Cos., for about $80 million. In October 2004, the Bankruptcy Court confirmed the plan. Judge Robert Summerhays oversees the 2012 cases. Mark A. Mintz, Esq. at Jones Walker LLP represents the Debtors in their restructuring efforts. BMC Group, Inc., serves as claims agent, noticing agent and balloting agent. In its schedules, the Debtor disclosed $34,952,780 in assets and $32,000,929 in liabilities. New York-based vulture fund Atalaya Administrative LLC, in its capacity as administrative agent for Atalaya Funding II, LP, Atalaya Special Opportunities Fund IV LP (Tranche B), and Atalaya Special Opportunities Fund (Cayman) IV LP (Tranche B), the Debtors' prepetition secured lender, is represented in the case by lawyers at Carver, Darden, Koretzky, Tessier, Finn, Blossman & Areaux, L.L.C.; and Patton Boggs, LLP. Henry G. Hobbs, Jr., Acting United States Trustee for Region 5, has appointed seven members to the official committee of unsecured creditors in the Debtors' Chapter 11 cases. In October, the Committee sought and obtained Court approval to employ Frederick L. Bunol, Albert J. Derbes, IV, of The Derbes Law Firm, L.L.C. as attorneys. PICCADILLY RESTAURANTS: Sept. 17 Hearing to Approve Plan Outline ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Louisiana continued until Sept. 17, 2013, at 1:30 p.m., the hearing to consider the adequacy of information in the Disclosure Statement explaining Piccadilly Restaurants, LLC, et al.'s Joint Reorganization Plan. As reported in the Troubled Company Reporter on July 22, 2013, the Debtors together with Yucaipa Corporate Initiatives Fund I, L.P., filed a Joint Plan which contemplates that Yucaipa will advance cash to the Debtors, which will be available to the Reorganized Debtors for the purpose of effectuating the Joint Plan. The Yucaipa Advance will accrue interest at a fixed rate of 9% per annum, with the Debtors' obligation to pay the Advance be secured with a first priority lien. Payment of the Yucaipa Advance will be subordinated to the General Unsecured Claim Note in right of payment -- but not in lien priority -- until the General Unsecured Claim Note is paid in full. On the Plan Effective Date, Piccadilly Investments will form a direct subsidiary, Intermediate Holdco, to which it will transfer its Interests in Piccadilly Restaurants. An administrator will be appointed under the Plan, who will be responsible for collecting and disbursing Cash from the General Unsecured Distribution Account, among other things. The administrator will be selected by Yucaipa. The Plan also provides for the classification and treatment of claims against, and interests in, the Debtors -- 5 claim classes against each of Piccadilly Food Service LLC and Piccadilly Investments LLC and 7 claim classes against Piccadilly Restaurants LLC. Claim classes common to all three Debtors are Other Priority Claims; Atalaya Secured Claim; Other Secured Claims; General Unsecured Claims and Interests -- with Piccadilly Restaurants having two more claim classes, Convenience Claims and Litigation Claims. For the Atalaya Secured Claim, a New Atalaya Secured Note will be executed and delivered to Atalaya on the Effective Date. The New Note will provide for interest at a rate of 4.75% per annum, payable quarterly in Cash. Convenience Claims will receive 100% of the Allowed Amount, provided that the aggregate amount of Convenience Claims will not exceed $500,000. For the General Unsecured Claims, the Reorganized Debtors will deposit $700,000 into a General Unsecured Distribution Account. On the Effective Date, the Reorganized Debtors will execute the General Unsecured Claim Note in an amount equal to 100% of the face amount of the Allowed General Unsecured Claims. The Note will bear interest at a fixed per annum rate of 9% until paid in full, and will mature and become payable in 24 months after the Effective Date. The Plan is signed by Thomas J. Sandeman, Chief Executive Officer of Piccadilly Restaurants, LLC and Robert P. Bermingham, Vice- President of Yucaipa Corporate Initiatives Fund I, LLC. Full-text copies of the Joint Chapter 11 Plan and Disclosure Statement dated July 8, 2013, are available for free at: http://bankrupt.com/misc/PICCADILLYREST_PlanDSJul8.pdf Counsel to Debtors Piccadilly Restaurants, LLC; Piccadilly Food Service, LLC; and Piccadilly Investments, LLC is Elizabeth J. Futrell, Esq., at Jones Walker LLP. Counsel for Yucaipa Corporate Initiatives Fund I, L.P., are Robert Klyman, Esq., at Latham & Watkins, LLP, and William H. Patrick, III, Esq., at Heller, Draper, Patrick & Horn. About Piccadilly Restaurants Piccadilly Restaurants, LLC, and two affiliated entities sought Chapter 11 bankruptcy protection (Bankr. W.D. La. Case Nos. 12-51127 to 12-51129) on Sept. 11, 2012. The affiliates are Piccadilly Food Service, LLC, and Piccadilly Investments LLC. Piccadilly Restaurants, LLC, headquartered in Baton Rouge, Louisiana, is the largest cafeteria-style restaurant in the United States, with operations in 10 states in the Southeast and Mid- Atlantic regions. It is wholly owned by Piccadilly Investments, LLC. Piccadilly operates an institutional foodservice division through a wholly owned subsidiary, Piccadilly Food Service, LLC, servicing schools and other organizations. With a history dating back to 1944, the Company operates 81 restaurants at three owned and 78 leased locations. Then known as Piccadilly Cafeterias, Inc., the Company filed for Chapter 11 relief (Bankr. S.D. Fl. Case No. 03-27976) on Oct. 29, 2003. Paul Steven Singerman, Esq., and Jordi Guso, Esq., at Berger Singerman, P.A. represented the Debtor in the case. After Piccadilly declared bankruptcy under Chapter 11, but before its plan was submitted to the Bankruptcy Court for the Southern District of Florida, the Bankruptcy Court authorized Piccadilly to sell its assets to Yucaipa Cos., for about $80 million. In October 2004, the Bankruptcy Court confirmed the plan. Judge Robert Summerhays oversees the 2012 cases. Lawyers at Jones, Walker, Waechter, Poitevent, Carrere & Denegre, LLP, in New Orleans, serve as the 2012 Debtors' counsel. BMC Group, Inc., serves as claims agent, noticing agent and balloting agent. In its schedules, the Debtor disclosed $34,952,780 in assets and $32,000,929 in liabilities. New York-based vulture fund Atalaya Administrative LLC, in its capacity as administrative agent for Atalaya Funding II, LP, Atalaya Special Opportunities Fund IV LP (Tranche B), and Atalaya Special Opportunities Fund (Cayman) IV LP (Tranche B), the Debtors' prepetition secured lender, is represented in the case by lawyers at Carver, Darden, Koretzky, Tessier, Finn, Blossman & Areaux, L.L.C.; and Patton Boggs, LLP. Henry G. Hobbs, Jr., Acting United States Trustee for Region 5, has appointed seven members to the official committee of unsecured creditors in the Debtors' Chapter 11 cases. In October, the Committee sought and obtained Court approval to employ Frederick L. Bunol, Albert J. Derbes, IV, of The Derbes Law Firm, L.L.C. as attorneys. PICADILLY RESTAURANT: Hearing on Protiviti Hiring Continued Today ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Louisiana continued until Aug. 20, 2013, at 10 a.m., the hearing to consider a request from the Official Committee of Unsecured Creditors in the Chapter 11 case of Piccadilly Restaurants, LLC to amend the engagement of Protiviti, Inc. The Committee asked that the Court: (a) grant Protiviti $50,000 to compensate it for a portion of its $142,634 overage; and (b) revise Protiviti's fixed monthly fee to $75,000 per month, nunc pro tunc to July 1, 2013, for the increased workload now required of Protiviti to engage in an adversarial and protracted plan confirmation procedure with the Debtors, their prepetition equity and secured lenders. According to the Committee, since its engagement, Protiviti has incurred some fee overage each month. However, its work was generally within the range of compensation initially contemplated by the parties, so Protiviti has not until now sought additional compensation. About Piccadilly Restaurants Piccadilly Restaurants, LLC, and two affiliated entities sought Chapter 11 bankruptcy protection (Bankr. W.D. La. Case Nos. 12-51127 to 12-51129) on Sept. 11, 2012. The affiliates are Piccadilly Food Service, LLC, and Piccadilly Investments LLC. Piccadilly Restaurants, LLC, headquartered in Baton Rouge, Louisiana, is the largest cafeteria-style restaurant in the United States, with operations in 10 states in the Southeast and Mid- Atlantic regions. It is wholly owned by Piccadilly Investments, LLC. Piccadilly operates an institutional foodservice division through a wholly owned subsidiary, Piccadilly Food Service, LLC, servicing schools and other organizations. With a history dating back to 1944, the Company operates 81 restaurants at three owned and 78 leased locations. Then known as Piccadilly Cafeterias, Inc., the Company filed for Chapter 11 relief (Bankr. S.D. Fla. Case No. 03-27976) on Oct. 29, 2003. Paul Steven Singerman, Esq., and Jordi Guso, Esq., at Berger Singerman, P.A. represented the Debtors in the case. After Piccadilly declared bankruptcy under Chapter 11, but before its plan was submitted to the Bankruptcy Court for the Southern District of Florida, the Bankruptcy Court authorized Piccadilly to sell its assets to Yucaipa Cos., for about $80 million. In October 2004, the Bankruptcy Court confirmed the plan. Judge Robert Summerhays oversees the 2012 cases. Lawyers at Jones, Walker, Waechter, Poitevent, Carrere & Denegre, LLP, in New Orleans, serve as the 2012 Debtors' counsel. BMC Group, Inc., serves as claims agent, noticing agent and balloting agent. In its schedules, the Debtor disclosed $34,952,780 in assets and $32,000,929 in liabilities. New York-based vulture fund Atalaya Administrative LLC, in its capacity as administrative agent for Atalaya Funding II, LP, Atalaya Special Opportunities Fund IV LP (Tranche B), and Atalaya Special Opportunities Fund (Cayman) IV LP (Tranche B), the Debtors' prepetition secured lender, is represented in the case by lawyers at Carver, Darden, Koretzky, Tessier, Finn, Blossman & Areaux, L.L.C.; and Patton Boggs, LLP. Henry G. Hobbs, Jr., Acting United States Trustee for Region 5, has appointed seven members to the official committee of unsecured creditors in the Debtors' Chapter 11 cases. In October, the Committee sought and obtained Court approval to employ Frederick L. Bunol, Albert J. Derbes, IV, of The Derbes Law Firm, L.L.C. as attorneys. PJ HANLEY'S: Bankruptcy Baron to "Finally Pay the Piper" -------------------------------------------------------- Adrianne Pasquarelli, writing for Crain's New York Business, reported that James McGown, the bar owner, restaurateur and real estate developer who has left a trail of bankruptcy petitions across the city in recent years, has taken a legal hit. A judge on Aug. 15 denied Mr. McGown's request for an injunction that would have stopped his landlord from terminating his lease and evicting him from Brooklyn's oldest bar, a Carroll Gardens establishment formerly known as PJ Hanley's. Earlier this year, Mr. McGown filed for Chapter 11 bankruptcy protection for P.J. Hanley's at 449-451 Court St., the report related. He initially said that he would be auctioning off the business, but eventually rebranded the bar as Goldenrod, which opened just days ago, in early August. As part of the rebranding, he reportedly extensively renovated the space into an 1890s revival alehouse, complete with a tin ceiling and new floor. However, according to legal documents filed by the landlord for the space, the Hanley family's Kiwi Pub Corp., Mr. McGown did not have permission to make changes or modifications to the building, nor did he obtain the correct permits for such construction. In late June, the Hanley family filed a notice in New York Supreme Court, giving Mr. McGown until early July to file the appropriate permits and remove the unapproved construction. Mr. McGown refuted the charges, and requested the injunction, the report said. Judge Manuel Mendez of the Supreme Court of the state of New York ruled against his request, the report further related. Mr. McGown had "essentially gutted the building, obstructed doorways throughout the premises and exceeded the amount of legally permissible bars," read the ruling. "No proof was provided of the efforts being made to address or cure any alleged structural defects." QBEX ELECTRONICS: Creditors Panel Balks at Exclusivity Extension ---------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of QBEX Electronics Corporation, Inc., et al., asks the Bankruptcy Court to deny approval of the Debtors' third motion to extend exclusivity. The Committee relates that to date, the Debtors have not fully complied with the agreed order extending exclusivity. Pursuant to the agreed order extending exclusivity, the Debtors were required to do these: -- provide the Committee with a plan for the liquidation of the Debtors' noncore assets, which plan will be implemented forthwith upon approval of the Committee; -- respond to the Committee's Rule 2004 request for production of documents by June 30, 2013. -- list for sale all of its non-essential real estate in Columbia, including the country house, apartments and the two parcels in the residential planned community, and will file a motion to approve such listing agreements. As reported in the Troubled Company Reporter on Aug. 9, 2013, the Debtors filed a third motion seeking extension of exclusive plan filing deadline through Sept. 27, and exclusive plan solicitation deadline through Nov. 11. The Debtors' current plan filing deadline is Aug. 30, 2013. The Debtors informed the Court that since the entry of the Second Exclusivity Order, they -- with the assistance of financial advisors CBIZ MHM, LLC -- have worked diligently to liquidate their non-core assets; identify and negotiate an exit financing facility; develop financial projections and an associated business plan for the Debtors; and formulate a consensual Chapter 11 plan of reorganization. However, as significant progress has been made, a fair amount of work remains to be completed, the Debtors aver. About QBEX Electronics QBEX Electronics Corporation, Inc., based in Miami, Florida, and its affiliates, Qbex Colombia, S.A., and Comercializadora De Productos Tecnologicos CPT Colombia SAS, are manufacturers, assemblers and distributors of personal computers, notebooks, tablets and compatible accessories, marketed throughout Latin America under the QBEX brand. QBEX Electronics filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 12-37551) on Nov. 15, 2012. Judge Robert A. Mark oversees the case. Robert D. Peters, Esq., Robert A. Schatzman, Esq., and Steven J. Solomon, Esq., at GrayRobinson, P.A., serve as the Debtor's counsel. QBEX scheduled assets of $11,027,058 and liabilities of $8,246,385. The petitions were signed by Jorge E. Alfonso, president. Qbex Colombia, S.A., also sought Chapter 11 protection (Bankr. S.D. Fla. Case No. 12-37558) on Nov. 15, listing $433,627 in assets and $5,792,217 in liabilities. Glenn D. Moses, Esq., and Michael L. Schuster, Esq., at Genovese Joblove & Battista, P.A., represent the Official Committee of Unsecured Creditors. The Committee tapped Marcum, LLP, as its financial advisors. RESIDENTIAL CAPITAL: Freddie Mac Challenges $600MM FGIC Settlement ------------------------------------------------------------------ Law360 reported that Freddie Mac asked a New York bankruptcy judge to reject a settlement between Residential Capital LLC and Financial Guaranty Insurance Co. that would slash the bond insurer's claim from $5 billion to $596.5 million. According to the report, the mortgage giant said the settlement would terminate insurance policies guaranteeing the payment of principal and interest on mortgage-backed securities it holds that were issued or serviced by ResCap. Freddie Mac has also rebutted the settlement's finding that FGIC trustees discharged their fiduciary duties to FGIC beneficiaries, the report said. About Residential Capital Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities at March 31, 2012. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. ResCap sold most of the businesses for a combined $4.5 billion. The Bankruptcy Court in November 2012 approved ResCap's sale of its mortgage servicing and origination platform assets to Ocwen Loan Servicing, LLC and Walter Investment Management Corporation for $3 billion; and its portfolio of roughly 50,000 whole loans to Berkshire Hathaway for $1.5 billion. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RESIDENTIAL CAPITAL: PNC Challenges $300MM Mortgage Settlement -------------------------------------------------------------- Law360 reported that PNC Bank NA challenged a Residential Capital LLC unit's bid for approval of a $300 million settlement that would end a putative class action brought by mortgage loan borrowers, arguing that the deal would unjustly harm the bank. According to the report, the bank submitted a limited objection to a New York bankruptcy court, arguing that Residential Funding Co. LLC's proposed settlement included an unfair bar order that would enjoin PNC's right to contribution and indemnity without the bank's consent, a judgment reduction or other protections. About Residential Capital Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities at March 31, 2012. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. ResCap sold most of the businesses for a combined $4.5 billion. The Bankruptcy Court in November 2012 approved ResCap's sale of its mortgage servicing and origination platform assets to Ocwen Loan Servicing, LLC and Walter Investment Management Corporation for $3 billion; and its portfolio of roughly 50,000 whole loans to Berkshire Hathaway for $1.5 billion. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). REVLON CONSUMER: Moody's Confirms Ba3 CFR and Negative Outlook -------------------------------------------------------------- Moody's Investors Service confirmed Revlon Consumer Products Corporation's (Revlon) Ba3 Corporate Family Rating and Ba2 senior secured term loan rating, concluding the review for downgrade initiated on August 5, 2013 following the company's announced $660 million debt-funded acquisition of The Colomer Group. Moody's also assigned a Ba2 rating to Revlon's proposed $700 million add-on senior secured term loan and downgraded the company's senior unsecured notes due 2021 to B2 from B1. Moody's confirmed Revlon's ratings based on an expectation that the TCG acquisition will help the company maintain the improved operating stability achieved over the last few years, and that Revlon will continue to generate meaningful free cash flow. The confirmation also reflects Moody's view that Revlon is committed to reducing leverage meaningfully following the debt-funded TCG acquisition such that debt-to-EBITDA leverage declines and is sustained below 5.0x. Moody's also affirmed Revlon's SGL-1 speculative-grade liquidity rating. The rating outlook is negative based on the challenges that operational shortfalls, additional acquisitions or Revlon's utilization of cash could present to de-leveraging. Moody's updated the loss given default assessments based on the updated debt mix. Confirmations: Issuer: Revlon Consumer Products Corporation Corporate Family Rating, Ba3 Probability of Default Rating, Ba3-PD Senior Secured Bank Credit Facility Nov 19, 2017, Confirmed at Ba2 (changed to LGD3 - 32% from LGD2 - 27%) Assignments: Issuer: Revlon Consumer Products Corporation Senior Secured Bank Credit Facility due 2019 ($700 million add- on), Assigned Ba2, LGD3 - 32% Downgrades: Issuer: Revlon Consumer Products Corporation Senior Unsecured Regular Bond/Debenture due Feb 15, 2021, Downgraded to B2, LGD5 - 85% from B1, LGD5 - 76% Affirmations: Issuer: Revlon Consumer Products Corporation Speculative Grade Liquidity Rating, Affirmed SGL-1 Outlook Actions: Issuer: Revlon Consumer Products Corporation Outlook, Changed To Negative From Rating Under Review Ratings Rationale: Revlon's Ba3 CFR reflects the company's strong global cosmetic brand franchises, good geographic and product diversification for a number of well-known beauty brands, modest scale relative to primary competitors, high leverage and event risks related to ownership by M&F Worldwide. Operational improvements over the last five years driven by better portfolio planning and cost efficiencies are leading to positive and consistent cash flow generation after years of weak performance. This is providing the company more flexibility to re-invest through product development, required display spending, increased product promotional support and through acquisitions. Revlon's high leverage and smaller scale relative to more diversified and highly competitive global cosmetic suppliers create vulnerability to changes in the economic environment, shifts in consumer demand and the product, pricing and promotional activities of competitors. Despite challenges related to sluggish growth in the US and Europe (roughly 65%-70% of pro forma revenue), Moody's anticipates Revlon's product development, promotional actions and exposure to developing markets will contribute to modest revenue and EBITDA growth. Continued weakness of its Almay color cosmetics line will likely require additional investment in brand development and promotion. Acquiring TCG will meaningfully increase debt-to-EBITDA leverage (estimated 6.3x LTM 6/30/13 incorporating Moody's standard adjustments and pro forma for the transaction, prior to synergies) but provide operating benefits including an increase in cash flow, improved channel diversification through the addition of professional salon clients, slightly better geographic diversity, and cost synergies. Moody's expects Revlon will utilize cash and free cash flow for debt reduction and EBITDA-accretive acquisitions such that debt-to-EBITDA is reduced to a level below 5x within 12-24 months of the closing, which Revlon expects to occur by the end of 2013. Revlon's proposed $700 million incremental term loans will be pari-passu with its existing $675 million senior secured term loan. The downgrade of the senior unsecured notes to B2 from B1 reflects the incremental secured debt that has effective priority relative to the unsecured notes. Revlon's SGL-1 speculative-grade liquidity rating continues to reflect its very good liquidity position prior to the acquisition. Liquidity is supported by existing cash ($141 million as of 6/30/13), free cash flow that Moody's projects will exceed $100 million over the next 12 months, and an undrawn $140 million asset based revolver expiring in June 2016. These cash sources provide ample capacity to fund the 1% required annual term loan amortization and $48.6 million October 2013 subordinated term loan maturity. Moody's also expects Revlon to maintain an EBITDA cushion exceeding 40% within the term loan's 4.0x maximum first lien secured debt covenant prior to the TCG acquisition. The liquidity rating could be lowered to SGL-2 upon completion of the TCG acquisition and financing. Revlon is proposing to increase the term loan leverage covenant to 4.25x but the incremental first lien secured debt would nevertheless likely reduce the EBITDA cushion within the covenant and modestly weaken the company's liquidity position. The negative rating outlook reflects the risk that operational shortfalls, additional acquisitions or Revlon's utilization of cash will not be sufficient to reduce and sustain debt-to-EBITDA leverage below 5.0x. Moody's anticipates in the outlook continued modest global economic growth and that Revlon will maintain its market share, generate low single digit organic revenue and earnings growth, and in excess of $100 million of free cash flow in 2014. Moody's also expects Revlon will maintain a good liquidity position with sufficient flexibility to reinvest in product development and marketing support. Revlon's ratings could be downgraded if the company's operating performance deteriorates such that EBIT margins drop below 12%, debt-to-EBITDA is sustained above 5.0x or EBIT-to-interest expense drops below 2.0x. Any shift in the financial policy of Revlon or of its majority-owner, M&F, towards debt-financed acquisitions and share repurchases, could also result in a downgrade. An upgrade is unlikely over the next 12-18 months given the negative rating outlook and elevated leverage. Moody's could change Revlon's rating outlook to stable if the company reduces and maintains debt-to-EBITDA leverage below 5.0x, and sustains its EBIT margin above 12% and EBIT-to-interest expense above 2.0x. Revlon would also need to maintain a good liquidity position. An upgrade could be considered if Revlon is able to maintain an above average organic growth rate, improved market share for its core Revlon and Almay brands, and generate meaningful free cash flow. Revlon would need to sustain debt-to-EBITDA well below 4.0x and EBIT-to-interest expense of at least 3.0x. The principal methodology used in this rating was the Global Packaged Goods published in June 2013. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Revlon, headquartered in New York, NY, is a worldwide cosmetics, skin care, fragrance, and personal care products company. The company is a wholly-owned subsidiary of publicly-traded Revlon, Inc., which is majority-owned by MacAndrews & Forbes (M&F). M&F is wholly-owned by Ronald O. Perelman. Revlon's principal brands include Revlon, Almay, Sinful Colors, Pure Ice, Charlie, Jean Nate, Mitchum, Gatineau, and Ultima II. Revlon's net sales for the 12 months ended June 2013 were approximately $1.4 billion. REVLON CONSUMER: S&P Affirms 'B+' Corp. Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'B+' corporate credit rating on Revlon Consumer Products Corp. The outlook is stable. At the same time, S&P lowered its issue-level rating on the company's senior secured bank facility due 2017 to 'B+' from 'BB-' and revised the recovery rating to '3' from '2'. The '3' recovery rating indicates S&P's expectation of meaningful (50% to 70%) recovery in the event of a payment default. It also reflects the $700 million additional term debt on the company's existing bank term loan facility, which decreases the recovery prospects for the senior secured bank lenders given the higher debt balance. S&P assigned a 'B+' rating to the $700 million incremental term debt, with a '3' recovery rating, indicating its expectation of meaningful (50% to 70%) recovery in the event of a payment default. Additionally, S&P affirmed its 'B' issue-level rating on the company's senior unsecured debt due 2021. The recovery rating is '5', indicating S&P's expectation for modest (10% to 30%) recovery in the event of a payment default. The ratings are subject to change and assume the transaction closes on substantially the same terms presented to S&P. Total debt outstanding pro forma for the proposed transaction is about $1.9 billion. "The ratings on Revlon reflect our view that the company's financial risk profile remains aggressive," said Standard & Poor's credit analyst Jacqueline Hui. "Though the debt-financed transaction weakens Revlon's credit measures on a pro forma basis, S&P believes the company will deleverage to below 5x over the next 12 to 18 months," she added. S&P also continues to assess the company's business risk profile as "weak", given its participation in the highly competitive global cosmetics industry and concentration in the mass channel. The outlook is stable, reflecting S&P's expectation of steady operating performance, a smooth integration of TCG, and debt reduction, such that adjusted leverage decreases to below 5x over the next 12 to 18 months. S&P could consider a lower rating if adjusted leverage remains elevated and approaches 6x, perhaps if the company's operating performance deteriorates from weakening macroeconomic conditions and heightened competition, or if the company has difficulties integrating the TCG acquisition, and is unable to reduce debt as planned. S&P estimates pro forma EBITDA would have to decrease by about 5% for leverage to approach 6x, assuming pro forma debt stays constant at current levels. Although unlikely, S&P could consider raising the ratings if the company's financial policy becomes more conservative, if TCG is integrated without unexpected setbacks, and if operating performance remains near current levels, leading to credit metrics improving, such that leverage is sustained below 4x and covenant cushion remains at or above 15%. Pro forma debt would have to decrease about 30% to about $1.6 billion for leverage to reach below 4x, assuming no change from current EBITDA levels. S&P also considers the presence of a majority shareholder with controlling interest as a constraining factor to the rating. REVOLUTION DAIRY: Aug. 22 Hearing on Adequacy of Plan Outline ------------------------------------------------------------- The Bankruptcy Court will convene a hearing on Aug. 22, 2013, at 10 a.m. to consider the adequacy of information in the Disclosure Statement explaining Revolution Dairy LLC, et al.'s Amended Joint Chapter 11 Plan dated July 2, 2013. According to the Disclosure Statement, the Plan proposes that each of the Debtors transfer their dairy-and-farming-related assets to Bliss LLC (a new limited liability company) which will, in turn, assume the Debtors' secured and unsecured liabilities under the Plan. For Revolution and Highline (which only have dairy-and- farming-related assets and debts), the transfer of assets and assumption of liabilities is all-encompassing. Concerning Bliss, all assets will be transferred to Bliss LLC save the Bliss Personal Assets (identified in Schedule 9 of the Plan). Bliss LLC will, in turn, assume all Bliss Dairy Debts (i.e., all of Bliss' obligations save the Bliss Residence Mortgage). Bliss will additionally contribute over $22,000 in non-exempt cash on the Effective Date to Bliss LLC and will pay Bliss LLC $50,000 (under a note) representing the liquidation value of the Bliss Personal Assets that Bliss will retain. Bliss LLC will continue the dairy operations of the Debtors and will maintain three milk production units that correspond with the pre-confirmation dairy operations of the Debtors (i.e., the Revolution Unit, the Highline Unit, and the Bliss Unit). Bliss LLC will also continue Highline's farming operations which include leasing farmland and entering into annual harvesting and purchasing agreements with local forage producers. Except for obligation owed under the Bliss Residence Mortgage, all payments to holders of Allowed Claims (Secured and Unsecured) will be paid by Bliss LLC. The Bliss Residence Mortgage will be paid by Bliss from post-Confirmation income. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/REVOLUTION_DAIRY_amendedds.pdf About Revolution Dairy Revolution Dairy LLC is one of the largest dairy farms in Utah. Revolution Dairy and affiliate Highline Dairy, LLC, filed bare- bones Chapter 11 petitions (Bankr. D. Utah Case Nos. 13-20770 and 13-20771) in Salt Lake City on Jan. 27, 2013. Each of the Debtors estimated $10 million to $50 million in assets and liabilities. Managers of Revolution and Highline -- Robert and Judith Bliss -- also sought Chapter 11 protection (Case No. 13-20772). Revolution Dairy, LLC, is represented by Michael N. Zundel, Esq., at Prince, Yeates & Geldzahler. Highline Dairy is represented by George B. Hoffmann, Esq., at Parsons Kinghorn Harris. Robert and Judith Bliss are represented by Berry & Tripp. The U.S. Trustee appointed five members to the official committee of unsecured creditors. The Committee tapped David E. Leta, Esq., at Snell and Wilmer L.L.P. as its counsel and Berkeley Research Group, LLC as its financial advisor. REVOLUTION DAIRY: Berkeley Research Okayed as Panel Fin'l Advisor ----------------------------------------------------------------- The U.S. Bankruptcy Court authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Revolution Dairy LLC, et al., to retain Berkeley Research Group LLC as its financial advisor. As reported in the Troubled Company Reporter on June 3, 2013, the firm will, among other things, provide these services: a. performing an analysis and evaluation of any disclosure statement and plan proposed Cases; b. reviewing and analyzing monthly operating reports prepared by the Debtors; and c. performing an independent analysis of the financial situation of the Debtors. Marvin A. Tenenbaum -- mtenenbaum@brg-expert.com -- attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Revolution Dairy Revolution Dairy LLC is one of the largest dairy farms in Utah. Revolution Dairy and affiliate Highline Dairy, LLC, filed bare- bones Chapter 11 petitions (Bankr. D. Utah Case Nos. 13-20770 and 13-20771) in Salt Lake City on Jan. 27, 2013. Each of the Debtors estimated $10 million to $50 million in assets and liabilities. Managers of Revolution and Highline -- Robert and Judith Bliss -- also sought Chapter 11 protection (Case No. 13-20772). Revolution Dairy, LLC, is represented by Michael N. Zundel, Esq., at Prince, Yeates & Geldzahler. Highline Dairy is represented by George B. Hoffmann, Esq., at Parsons Kinghorn Harris. Robert and Judith Bliss are represented by Berry & Tripp. The U.S. Trustee appointed five members to the official committee of unsecured creditors. The Committee tapped to retain David E. Leta, Esq., at Snell and Wilmer L.L.P. as its counsel and Berkeley Research Group, LLC as its financial advisor. REVOLUTION DAIRY: Court OKs Modification to TCF Lease Agreement --------------------------------------------------------------- The Hon. R. Kimball Mosier of the U.S. Bankruptcy Court for the District of Utah approved the modification and assumption of lease and loan agreements between Debtor Highline Dairy, LLC, and TCF Equipment Finance, Inc. The Debtor and TCF, in a stipulated motion, sought approval of certain modifications to various prepetition lease and loan agreements through which Highline financed certain equipment used by Highline in its business operations. Highline also sought assumption of the agreements, as modified. The Court, in its order, said that the monthly payments from Highline to TCF provided for in the stipulated motion are deemed to be adequate protection of TCF's interest in the equipment and are deemed to satisfy Highline's postpetition payment obligations. In the event Highline fails to make timely monthly payments to TCF, TCF will give Highline's attorney of record written notice of the default and if Highline fails to cure the default within 10 days after the date of receipt of the notice, TCF may file an affidavit of default and the automatic stay will thereupon be deemed lifted without further notice or other order of the Court. In a separate order, the Court authorized the modification and assumption of the agreement between Debtors Highline and Robert & Judith Bliss, dba Bliss Dairy and Summit Leasing, Inc. The parties sought approval of certain modifications to the prepetition lease agreement through which the Debtors financed certain equipment used by the Debtors in their business operations. The monthly payments from the Debtors to Summit are deemed to be adequate protection of Summit's interest in the equipment and are deemed to satisfy the Debtors' postpetition payment obligations. About Revolution Dairy Revolution Dairy LLC is one of the largest dairy farms in Utah. Revolution Dairy and affiliate Highline Dairy, LLC, filed bare- bones Chapter 11 petitions (Bankr. D. Utah Case Nos. 13-20770 and 13-20771) in Salt Lake City on Jan. 27, 2013. Each of the Debtors estimated $10 million to $50 million in assets and liabilities. Managers of Revolution and Highline -- Robert and Judith Bliss -- also sought Chapter 11 protection (Case No. 13-20772). Revolution Dairy, LLC, is represented by Michael N. Zundel, Esq., at Prince, Yeates & Geldzahler. Highline Dairy is represented by George B. Hoffmann, Esq., at Parsons Kinghorn Harris. Robert and Judith Bliss are represented by Berry & Tripp. The U.S. Trustee appointed five members to the official committee of unsecured creditors. The Committee tapped to retain David E. Leta, Esq., at Snell and Wilmer L.L.P. as its counsel and Berkeley Research Group, LLC as its financial advisor. REVOLUTION DAIRY: Dr. Corbett Okayed as Management Advisor ---------------------------------------------------------- The Hon. R. Kimball Mosier of the U.S. Bankruptcy Court for the District of Utah authorized Revolution Dairy, LLC et al., to employ Dr. Robert Corbett as management advisor/veterinary science. The Debtors required Dr. Corbett's expertise to assist in a holistic review of the dairies' operations and nutrition program, including advising on cow care, reproduction management, heifer transition management, production peaks, and feeding and nutrition acclimation, among other things. Dr. Corbett has provided similar services to at least four other substantial dairy operations in Utah, and regularly advises dairies both nationally and internationally, including evaluating the viability of dairies in financial distress. The Debtors agreed to compensate Dr. Corbett for his work on behalf of the Debtors. DR. Corbett's customary rates are $1500/day, or $200/hour for periods less than a full day, with mileage at the rate of $.75/mile, which will be paid proportionately by the Debtors on a per-cow basis. To the best of the Debtors' knowledge, Dr. Corbett does not represent or hold any interest adverse to the Debtor or the estate. About Revolution Dairy Revolution Dairy LLC is one of the largest dairy farms in Utah. Revolution Dairy and affiliate Highline Dairy, LLC, filed bare- bones Chapter 11 petitions (Bankr. D. Utah Case Nos. 13-20770 and 13-20771) in Salt Lake City on Jan. 27, 2013. Each of the Debtors estimated $10 million to $50 million in assets and liabilities. Managers of Revolution and Highline -- Robert and Judith Bliss -- also sought Chapter 11 protection (Case No. 13-20772). Revolution Dairy, LLC, is represented by Michael N. Zundel, Esq., at Prince, Yeates & Geldzahler. Highline Dairy is represented by George B. Hoffmann, Esq., at Parsons Kinghorn Harris. Robert and Judith Bliss are represented by Berry & Tripp. The U.S. Trustee appointed five members to the official committee of unsecured creditors. The Committee tapped to retain David E. Leta, Esq., at Snell and Wilmer L.L.P. as its counsel and Berkeley Research Group, LLC as its financial advisor. REVOLUTION DAIRY: Farm Credit's Stay Relief Bid Settled ------------------------------------------------------- The U.S. Bankruptcy Court approved a stipulation resolving Farm Credit Leasing's motion for relief from stay and for an order approving modification and assumption of its lease agreements in the Chapter 11 case of Debtor Highline Dairy, LLC. The stipulation provides for, among other things: 1. in the event of any conflict between the stipulated motion and any provisions of a confirmed plan of reorganization in the case regarding the treatment of FCL and its claims, the terms and conditions of the stipulated motion will prevail; 2. the monthly payments from Highline to FCL are deemed to be adequate protection of FCL's interest in the equipment and are deemed to satisfy Highline's postpetition payment obligations; and 3. in the event Highline fails to make timely monthly payments to FCL, FCL will give Highline's attorney written notice of the default. If Highline fails to cure the default within 10 days of the date of such notice, FCL may file an affidavit of default and the automatic stay will thereupon be deemed lifted without further notice or other order of the Court. About Revolution Dairy Revolution Dairy LLC is one of the largest dairy farms in Utah. Revolution Dairy and affiliate Highline Dairy, LLC, filed bare- bones Chapter 11 petitions (Bankr. D. Utah Case Nos. 13-20770 and 13-20771) in Salt Lake City on Jan. 27, 2013. Each of the Debtors estimated $10 million to $50 million in assets and liabilities. Managers of Revolution and Highline -- Robert and Judith Bliss -- also sought Chapter 11 protection (Case No. 13-20772). Revolution Dairy, LLC, is represented by Michael N. Zundel, Esq., at Prince, Yeates & Geldzahler. Highline Dairy is represented by George B. Hoffmann, Esq., at Parsons Kinghorn Harris. Robert and Judith Bliss are represented by Berry & Tripp. The U.S. Trustee appointed five members to the official committee of unsecured creditors. The Committee tapped to retain David E. Leta, Esq., at Snell and Wilmer L.L.P. as its counsel and Berkeley Research Group, LLC as its financial advisor. RIO VISTA: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: Rio Vista Properties 690 LLC 690 Kinderkamack Road Oradell, NJ 07649 Bankruptcy Case No.: 13-27809 Chapter 11 Petition Date: August 14, 2013 Court: U.S. Bankruptcy Court District of New Jersey (Newark) Judge: Morris Stern Debtor's Counsel: Philip Guarino, Esq. MAVROUDIS RIZZO & GUARINO, LLC 690 Kinderkamack Road, Suite 300 Oradell, NJ 07649 Tel: (201) 262 3001 E-mail: guarinolaw@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by John M. Mavroudis, managing member. ROTECH HEALTHCARE: Baker & McKenzie, Bifferato Released From Ch.11 ------------------------------------------------------------------ Law360 reported that a Delaware bankruptcy judge allowed Baker & McKenzie LLP and Bifferato LLC to withdraw as counsel for the equity committee in the Rotech Healthcare Inc. bankruptcy case over the "strong" objections of committee members who want to push forward and challenge confirmation of the Chapter 11 plan. According to the report, John Mitchell of Baker & McKenzie argued during a hearing in Wilmington that good cause exists to allow both firms to stop representing the committee, which has been trying to prove that Rotech is solvent enough for equity security holders. About Rotech Healthcare Based in Orlando, Florida, Rotech Healthcare Inc. (NASDAQ: ROHI) -- http://www.rotech.com/-- provides home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. The company provides equipment and services in 48 states through approximately 500 operating centers located primarily in non-urban markets. The Company reported a net loss of $14.76 million in 2011, a net loss of $4.20 million in 2010, and a net loss of $21.08 million in 2009. The Company's balance sheet at Sept. 30, 2012, showed $255.76 million in total assets, $601.98 million in total liabilities, and a $346.22 million total stockholders' deficiency. On April 8, 2013, Rotech Healthcare and 114 subsidiary companies filed petitions seeking relief under chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-10741) to implement a pre- arranged plan negotiated with secured lenders. Attorneys at Proskauer Rose LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors; Foley & Lardner LLP is the healthcare regulatory counsel; Akin Gump Strauss Hauer & Feld LLP is the special healthcare regulatory counsel; Barclays Capital Inc. is the financial advisor; Alix Partners, LLP is the restructuring advisor; and Epiq Bankruptcy Solutions LLC is the claims agent. Prepetition term loan lender and DIP lender Silver Point Capital and other consenting noteholders are represented by Wachtell, Lipton, Rosen & Katz, and Richards Layton & Finger PA. The U.S. Trustee at the end of April appointed an official committee of equity holders. Members include Alden Global Recovery Master Fund LP, Varana Capital Master LP, Wynnefield Partners Small Cap Value LP I, Bastogne Capital Partners, LP, and Kenneth S. Grossman P.C. Pension Plan. The plan is supported by holders of a majority of the first- and second-lien secured notes. The $290 million in 10.5 percent second-lien notes are to be exchanged for the new equity. Trade suppliers are to be paid in full, if they agree to continue providing credit. The existing $23.5 million term loan would be paid in full, and the $230 million in 10.75 percent first-lien notes will be amended. The Official Committee of Unsecured Creditors tapped Otterbourg, Steindler, Houston & Rosen, P.C., as counsel; Buchanan Ingersoll & Rooney PC as Delaware counsel; and Grant Thornton LLP as financial advisor. ROTECH HEALTHCARE: Taps Cole Schotz as Counsel for BOD Committee ---------------------------------------------------------------- Rotech Healthcare Inc., et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Cole, Schotz, Meisel, Forman & Leonard, P.A., as special co-counsel to the Special Committee of the Board of Directors. The Debtors are currently pursuing a Chapter 11 plan that contemplates a debt for equity swap. A number of the Debtors' directors, however, are holders of both the Debtors' debt and equity. As a result, the Special Committee of independent directors who hold neither Rotech debt nor equity was formed to analyze and negotiate the potential transaction. The Special Committee seeks to utilize the services of Cole Schotz to enable the Special Committee to faithfully execute its duties to the Company and its stakeholders. Cole Schotz will be employed to render legal services as may be requested by the Special Committee and able to be performed by Cole Schotz. The principal focus of the proposed engagement is on the duties of the Special Committee in connection with the restructuring of the Debtors, and does not include advice with respect to tax, labor or regulatory matters. The current hourly rates of Cole Schotz members, associates and paralegals are as follows: Members and Special Counsel $350 to $785 Associates $210 to $400 Paralegals $165 to $245 The firm will also be reimbursed for any necessary out-of-pocket expenses. Norman L. Pernick, Esq. -- npernick@coleschotz.com -- a member in the law firm of Cole, Schotz, Meisel, Forman & Leonard, P.A., in Wilmington, Delaware, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. A hearing to consider approval of the employment application will be held on Sept. 19, 2013 at 11:00 a.m. (ET). Objections are due Aug. 23. About Rotech Healthcare Based in Orlando, Florida, Rotech Healthcare Inc. (NASDAQ: ROHI) -- http://www.rotech.com/-- provides home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. The company provides equipment and services in 48 states through approximately 500 operating centers located primarily in non-urban markets. The Company reported a net loss of $14.76 million in 2011, a net loss of $4.20 million in 2010, and a net loss of $21.08 million in 2009. The Company's balance sheet at Sept. 30, 2012, showed $255.76 million in total assets, $601.98 million in total liabilities, and a $346.22 million total stockholders' deficiency. On April 8, 2013, Rotech Healthcare and 114 subsidiary companies filed petitions seeking relief under chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-10741) to implement a pre- arranged plan negotiated with secured lenders. Attorneys at Proskauer Rose LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors; Foley & Lardner LLP is the healthcare regulatory counsel; Akin Gump Strauss Hauer & Feld LLP is the special healthcare regulatory counsel; Barclays Capital Inc. is the financial advisor; Alix Partners, LLP is the restructuring advisor; and Epiq Bankruptcy Solutions LLC is the claims agent. Prepetition term loan lender and DIP lender Silver Point Capital and other consenting noteholders are represented by Wachtell, Lipton, Rosen & Katz, and Richards Layton & Finger PA. The U.S. Trustee at the end of April appointed an official committee of equity holders. Members include Alden Global Recovery Master Fund LP, Varana Capital Master LP, Wynnefield Partners Small Cap Value LP I, Bastogne Capital Partners, LP, and Kenneth S. Grossman P.C. Pension Plan. The plan is supported by holders of a majority of the first- and second-lien secured notes. The $290 million in 10.5 percent second-lien notes are to be exchanged for the new equity. Trade suppliers are to be paid in full, if they agree to continue providing credit. The existing $23.5 million term loan would be paid in full, and the $230 million in 10.75 percent first-lien notes will be amended. The Official Committee of Unsecured Creditors tapped Otterbourg, Steindler, Houston & Rosen, P.C., as counsel; Buchanan Ingersoll & Rooney PC as Delaware counsel; and Grant Thornton LLP as financial advisor. ROTECH HEALTHCARE: 2 Firms Seek to Withdraw as Equity Panel Atty. ----------------------------------------------------------------- Baker & McKenzie, LLP, and Bifferato LLC, filed a motion seeking permission from the U.S. Bankruptcy Court for the District of Delaware to withdraw as counsel of the Official Committee of Equity Security Holders appointed in the Chapter 11 cases of Rotech Healthcare, Inc., and its debtor affiliates. The firms cite Rules 1.16(b)(4) and (7) of the Delaware Lawyers' Rules of Professional Conduct as grounds for their withdrawal as counsel of the Equity Committee. The Baker attorneys are Carmen H. Lonstein, Esq. -- carmen.lonstein@bakermckenzie.com -- at Baker & McKenzie LLP, in Chicago, Illinois, and John E. Mitchell, Esq. -- john.mitchell@bakermckenzie.com -- at Baker & McKenzie LLP, in Dallas, Texas. The Bifferato attorneys are Ian Connor Bifferato, Esq., and Thomas F. Driscoll III, Esq., at Bifferato LLC, in Wilmington, Delaware. About Rotech Healthcare Based in Orlando, Florida, Rotech Healthcare Inc. (NASDAQ: ROHI) -- http://www.rotech.com/-- provides home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. The company provides equipment and services in 48 states through approximately 500 operating centers located primarily in non-urban markets. The Company reported a net loss of $14.76 million in 2011, a net loss of $4.20 million in 2010, and a net loss of $21.08 million in 2009. The Company's balance sheet at Sept. 30, 2012, showed $255.76 million in total assets, $601.98 million in total liabilities, and a $346.22 million total stockholders' deficiency. On April 8, 2013, Rotech Healthcare and 114 subsidiary companies filed petitions seeking relief under chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-10741) to implement a pre- arranged plan negotiated with secured lenders. Attorneys at Proskauer Rose LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors; Foley & Lardner LLP is the healthcare regulatory counsel; Akin Gump Strauss Hauer & Feld LLP is the special healthcare regulatory counsel; Barclays Capital Inc. is the financial advisor; Alix Partners, LLP is the restructuring advisor; and Epiq Bankruptcy Solutions LLC is the claims agent. Prepetition term loan lender and DIP lender Silver Point Capital and other consenting noteholders are represented by Wachtell, Lipton, Rosen & Katz, and Richards Layton & Finger PA. The U.S. Trustee at the end of April appointed an official committee of equity holders. Members include Alden Global Recovery Master Fund LP, Varana Capital Master LP, Wynnefield Partners Small Cap Value LP I, Bastogne Capital Partners, LP, and Kenneth S. Grossman P.C. Pension Plan. The plan is supported by holders of a majority of the first- and second-lien secured notes. The $290 million in 10.5 percent second-lien notes are to be exchanged for the new equity. Trade suppliers are to be paid in full, if they agree to continue providing credit. The existing $23.5 million term loan would be paid in full, and the $230 million in 10.75 percent first-lien notes will be amended. The Official Committee of Unsecured Creditors tapped Otterbourg, Steindler, Houston & Rosen, P.C., as counsel; Buchanan Ingersoll & Rooney PC as Delaware counsel; and Grant Thornton LLP as financial advisor. ROTECH HEALTHCARE: Seeks Pretrial Decision to Thwart Shareholders ----------------------------------------------------------------- Peg Brickley, writing for DBR Small Cap, reported that Rotech Healthcare Inc. says evidence stacking up for a fight over what the company is worth prove it is insolvent, so the court contest on the question should be over before it starts. Law360 reported that Rotech asked for a summary judgment that the case's equity committee be dissolved, arguing that the committee's recent valuation report on the company's solvency make it a "legal impossibility" for the court to find it solvent. The results of the report ordered by the equity committee, and performed by Berenson & Co. LLC, indicate that Rotech's value is somewhere between $509 million and $801 million against $647.5 million in liabilities, according to Rotech's filing in the U.S. Bankruptcy Court, the report related. About Rotech Healthcare Based in Orlando, Florida, Rotech Healthcare Inc. (NASDAQ: ROHI) -- http://www.rotech.com/-- provides home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. The company provides equipment and services in 48 states through approximately 500 operating centers located primarily in non-urban markets. The Company reported a net loss of $14.76 million in 2011, a net loss of $4.20 million in 2010, and a net loss of $21.08 million in 2009. The Company's balance sheet at Sept. 30, 2012, showed $255.76 million in total assets, $601.98 million in total liabilities, and a $346.22 million total stockholders' deficiency. On April 8, 2013, Rotech Healthcare and 114 subsidiary companies filed petitions seeking relief under chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-10741) to implement a pre- arranged plan negotiated with secured lenders. Attorneys at Proskauer Rose LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors; Foley & Lardner LLP is the healthcare regulatory counsel; Akin Gump Strauss Hauer & Feld LLP is the special healthcare regulatory counsel; Barclays Capital Inc. is the financial advisor; Alix Partners, LLP is the restructuring advisor; and Epiq Bankruptcy Solutions LLC is the claims agent. Prepetition term loan lender and DIP lender Silver Point Capital and other consenting noteholders are represented by Wachtell, Lipton, Rosen & Katz, and Richards Layton & Finger PA. The U.S. Trustee at the end of April appointed an official committee of equity holders. Members include Alden Global Recovery Master Fund LP, Varana Capital Master LP, Wynnefield Partners Small Cap Value LP I, Bastogne Capital Partners, LP, and Kenneth S. Grossman P.C. Pension Plan. The plan is supported by holders of a majority of the first- and second-lien secured notes. The $290 million in 10.5 percent second-lien notes are to be exchanged for the new equity. Trade suppliers are to be paid in full, if they agree to continue providing credit. The existing $23.5 million term loan would be paid in full, and the $230 million in 10.75 percent first-lien notes will be amended. The Official Committee of Unsecured Creditors tapped Otterbourg, Steindler, Houston & Rosen, P.C., as counsel; Buchanan Ingersoll & Rooney PC as Delaware counsel; and Grant Thornton LLP as financial advisor. RURAL/METRO CORP: DRC Retained as Noticing Agent in Ch. 11 Cases ---------------------------------------------------------------- Donlin, Recano & Company, Inc. on Aug. 15 disclosed that it has been retained to provide claims and noticing agent services in the Rural/Metro Corporation Chapter 11 cases. Rural/Metro Corporation, based in Scottsdale, Arizona and owned by Warburg Pincus, filed Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware on August 4, 2013. The nationwide ambulance and emergency services company listed assets from $500 million to $1 billion making it one of the largest Chapter 11 cases of 2013. Willkie Farr & Gallagher LLP is counsel for the debtor and Young Conaway Stargatt & Taylor, LLP is local counsel in Wilmington, Delaware. The company's financial advisor is Alvarez & Marsal Healthcare Industry Group, LLC. About Donlin Recano Donlin Recano -- http://www.donlinrecano.com-- is a division of DF King Worldwide -- http://www.king-worldwide.com-- and a provider of claims, noticing, balloting and technology solutions, also provides bondholder identification services, pre-pack bankruptcy solicitation and balloting, crisis communications, financial printing services and call center services through one of the largest and most technologically advanced call centers in the country. King Worldwide is a financial communications, proxy solicitation and stakeholder management company, serving over 1,000 public company, mutual fund family and private equity firm clients domiciled in North America, Europe and Asia. About Rural/Metro Corporation Headquartered in Scottsdale, Arizona, Rural/Metro Corporation -- http://www.ruralmetro.com-- is a national provider of 911- emergency and non-emergency interfacility ambulance services and private fire protection services, operating in 21 states and nearly 700 communities. Rural/Metro Corp. and 59 affiliates sought Chapter 11 protection on Aug. 4, 2013, before the U.S. Bankruptcy Court for the District of Delaware. The Debtors' lead bankruptcy counsel are Matthew A. Feldman, Esq., Rachel C. Strickland, Esq., and Daniel Forman, Esq., at Willkie Farr & Gallagher LLP, in New York. Maris J. Kandestin, Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in Wilmington, Delaware, serve as the Debtors' local Delaware counsel. Alvarez & Marsal Healthcare Industry Group, LLC, and FTI Consulting, Inc., are the Debtors' financial advisors, while Lazard Freres & Co. L.L.C. is their investment banker. Donlin, Recano & Company, Inc., is the Debtors' claims and noticing agent. SCIENTIFIC LEARNING: Incurs $54,000 Net Loss in 2nd Quarter ----------------------------------------------------------- Scientific Learning Corporation reported a net loss of $54,000 on $5.33 million of total revenues for the three months ended June 30, 2013, as compared with a net loss of $3.14 million on $7.14 million of total revenues for the same period a year ago. For the six months ended June 30, 2013, the Company reported a net loss of $1.05 million on $10.80 million of total revenues, as compared with a net loss of $8.17 million on $14.23 million of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $11.90 million in total assets, $17.74 million in total liabilities and a $5.83 million in net capital deficiency. "While we are not pleased with the second quarter results which were significantly impacted by sequestration, we are encouraged by the strong start to the third quarter with July being our best month and our first year over year increase in booked sales this year," stated Robert Bowen, CEO. "With sales starting to move in the right direction, margins improving, and costs at a desired level, we are well poised to leverage upside." A copy of the press release is available for free at: http://is.gd/lpeupH About Scientific Learning Corp Scientific Learning is an education company. The Company accelerates learning by applying proven research on how the brain learns in online and on-premise software solutions. The Company provides its learning solutions primarily to United States K-12 schools in traditional brick-and-mortar, virtual or blended learning settings and also to parents and learning centers, in more than 40 countries around the world. The Company's sales are concentrated in K-12 schools in the U.S., which in during the year ended December 31, 2011 were estimated to total over 116,000 schools serving approximately 55 million students in almost 14,000 school districts. During the year ended Dec. 31, 2011, the K-12 sector accounted for 87 percent of the sales of the Company. The Company reported a net loss of $9.65 million in 2012, as compared with a net loss of $6.47 million in 2011. In its report on the Company's consolidated financial statements for the year ended Dec. 31, 2012, Ernst & Young, LLP, in San Jose, Cal., expressed substantial doubt Scienfic Learning's ability to continue as a going concern, citing the Company's recurring losses from operations, deficiency in working capital and its need to raise additional capital. SCOOTER STORE: Seeking Continued Use of Cash Collateral ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware was slated to convene a hearing Monday, Aug. 19, 2013, at 1:30 p.m., to consider The Scooter Store Holdings, Inc., et al.'s request for continued use of cash collateral. The Debtors relate that on July 29, the Court approved a stipulation among the Debtors, Crystal Financial, LLC, as DIP Agent and the DIP lenders, terminating the DIP credit agreement and authorizing the use of cash collateral. On July 31, the Court granted interim authorization to use the cash collateral. As adequate protection from any diminution in value of the lenders' collateral, the Debtors will grant respective interest in the prepetition collateral of he prepetition second lien secured parties and prepetition third lien secured parties, superpriority administrative expense claim status, subject to carve out on certain expenses. Additionally, the Debtors will grant adequate protection payments not to exceed $25,000 before entry of the final order. The Debtors also will grant the lenders the right to credit bid their claims. About The Scooter Store The Scooter Store is a supplier of power mobility solutions, including power wheelchairs, scooters, lifts, ramps, and accessories. The Scooter Store's products and services provide today's seniors and disabled persons potential alternatives to living in nursing homes or other care facilities. Headquartered in New Braunfels, Texas, the Scooter Store has a nationwide network of distribution centers that service products owned or leased by the Company's customers. It has 57 distribution centers in 41 states. Scooter Store Holdings Inc., and 71 affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-10904) in Wilmington. Andrew L. Magaziner, Esq., at Young Conaway Stargatt & Taylor, LLP and Neil E. Herman, Esq. at Morgan Lewis & Bockius LLP represent the Debtors in their restructuring efforts. The closely held company listed assets of less than $10 million and debt of more than $50 million. The Scooter Store - St. Louis, L.L.C., disclosed $13,353,846 in assets and $83,957,99 in liabilities as of the Chapter 11 filing. Affiliates of private equity firm Sun Capital Partners, based in Boca Raton, Florida, purchased a majority voting interest in the debtors in 2011. Scooter Store is 66.8 percent owned by Sun Capital Partners Inc., owed $40 million on a third lien. In addition to Sun's debt and $25 million on a second lien owing to Crystal Financial LLC, there is a $25 million first-lien revolving credit owing to CIT Healthcare LLC as agent. Crystal is providing $10 million in financing for bankruptcy. The Official Committee of Unsecured Creditors is represented by Cooley LLP as lead counsel, and Cousins Chipman & Brown, LLP as Delaware counsel. CBIZ Acounting, Tax and Advisory of New York, LLC, CBIZ Valuation Group, LLC and CBIZ Mergers & Acquisition Group Inc. serve as financial advisors. SEMGROUP LP: Former Investors Fight Ex-CEO's Fast-Track Appeal -------------------------------------------------------------- Law360 reported that former limited partners of SemGroup LP blasted ex-CEO Thomas L. Kivisto's bid to appeal a Delaware bankruptcy judge's order straight to the Third Circuit, calling it an attempt to sidestep a previous ruling by the district court. According to the report, the order, signed last month by U.S. Bankruptcy Judge Brendan L. Shannon, lets the limited partners proceed in part with an Oklahoma suit against Kivisto, allowing fraud and negligent misrepresentation claims to go forward but barring a claim for breach of fiduciary duty. About SemGroup, L.P. SemGroup, L.P. -- http://www.semgrouplp.com/-- is a midstream service company that provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids and refined products. Services include purchasing, selling, processing, transporting, terminalling and storing energy. SemGroup serves customers in the United States, Canada, Mexico and Wales. SemGroup L.P. and its debtor-affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 08-11525) on July 22, 2008. John H. Knight, Esq., L. Katherine Good, Esq. and Mark D. Collins, Esq., at Richards Layton & Finger; Harvey R. Miller, Esq., Michael P. Kessler, Esq., and Sherri L. Toub, Esq., at Weil, Gotshal & Manges LLP; and Martin A. Sosland, Esq., and Sylvia A. Mayer, Esq., at Weil Gotshal & Manges LLP, represented the Debtors in their restructuring efforts. Kurtzman Carson Consultants L.L.C. served as the Debtors' claims agent. The Blackstone Group L.P. and A.P. Services LLC acted as the Debtors' financial advisors. Margot B. Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber Silverstein, Esq., at Potter Anderson & Corroon LLP, represented the Debtors' prepetition lenders. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc., is the appointed monitor of SemCanada Crude Company and its affiliates' reorganization proceedings before the Canadian Companies' Creditors Arrangement Act. SemGroup LP won confirmation from the Bankruptcy Court of its Fourth Amended Plan of Reorganization on Oct. 28, 2008. The Plan, which distributed more than $2.5 billion in value to stakeholders, was declared effective on Nov. 30, 2008. As part of the Plan, the Reorganized Debtors entered into two new credit facilities aggregating $625 million in financing; entered into a $300 million Second Lien Term Facility; created a new corporate structure, including issuing shares of common stock and warrants; and distributed approximately $500 million of cash and approximately $1 billion in value of new common stock and warrants to thousands of creditors in accordance with the Plan. SOLIMAR ENERGY: Debenture Holders Agree to Waive Event of Default ----------------------------------------------------------------- Solimar Energy Limited on Aug. 16 disclosed that it has reached an agreement with holders of debentures issued pursuant to the debenture indenture dated June 26, 2012. The principal outstanding under the Debentures is C$4.0 million. After nearly one month of negotiations and further to the Company's press releases dated July 22 and August 2, 2013, the holders of Debentures have agreed to waive the event of default under the Debenture Indenture and direct the trustee under the Debenture Indenture to cancel the declaration that the outstanding principal and interest owing thereunder is immediately payable on the condition that the Debenture Indenture be amended and restated to provide, among other things, as follows: -- the interest payable on the Debentures increases to 20% per annum effective July 1, 2013 with 16% being payable on each interest payment date and the additional 4% being accrued and payable upon maturity; -- the maturity date of the Debentures is brought forward to January 31, 2014. However, at the Company's option and upon the Company and its subsidiaries providing the holders of Debentures first priority security on all of the Company's and its subsidiaries' assets and payment of a C$250,000 extension fee, payable proportionately to the holders of the Debentures at the time of the extension, the maturity date may be extended to July 31, 2014; -- the Company pays a loan modification fee of C$500,000, payable proportionately to the holders of the Debentures upon maturity; -- the Company covenants to use all reasonable commercial efforts to pay, via the issuance of shares, any principal and interest owing pursuant to the debenture indenture dated February 10, 2012, as amended July 27, 2012; and -- the Company and its subsidiaries covenant not to incur or become responsible for, directly or indirectly, any additional indebtedness that ranks in priority to the Debentures. The Debenture Indenture was amended and restated as of August 14, 2013 to reflect the foregoing conditions. Headquartered in Melbourne, Australia, Solimar Energy Limited -- http://www.solimarenergy.com.au/-- is engaged in the evaluation, development of onshore oil and gas prospects and production of oil and gas in California. SPORTSMAN'S WAREHOUSE: S&P Affirms 'B' CCR; Outlook Stable ---------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'B' corporate credit rating on Midvale, Utah-based Sportsman's Warehouse Inc. and on its holding company, Sportsman's Warehouse Holdings Inc. The outlook is stable. Concurrently, S&P affirmed its 'B' issue-level rating, with a '3' recovery rating, on the company's existing term loan, which is now an amended and extended facility consisting of a $185 million first-out tranche term loan due in 2019. The '3' recovery rating indicates S&P's expectation of meaningful (50% to 70%) recovery if a payment default occurs. S&P also assigned a 'CCC+' issue-level rating, with a '6' recovery rating, to the company's $50 million last-out tranche term loan also due in 2019; this is also part of the amended and extended facility. The '6' recovery rating indicates S&P's expectation of negligible (0% to 10%) recovery of principal in the event of default. According to the company, it will use the proceeds from the transaction to mainly to refinance all amounts outstanding under its existing credit agreement and pay a $101 million dividend to majority equity holder, Seidler Equity Partners, management and key employees. "The ratings on outdoor sporting goods retailer Sportsman's Warehouse reflect Standard & Poor's view that the company has a "weak" business risk profile and "highly leveraged" financial risk profile," said credit analyst Kristina Koltunicki. "Our assessment of the company's weak business risk profile incorporates its relatively small position in the highly competitive and fragmented sporting goods and outdoor recreation industry." The stable outlook on Sportsman's Warehouse reflects S&P's expectation that operating results will improve over the next year due to continued positive sales trends but that the company's very aggressive financial policies will mitigate any sustainable improvements in credit protection measures. S&P expects the company's credit protection measures will remain indicative of a highly leveraged financial risk profile. S&P also anticipates the company will continue to grow its store base at a mid-double-digit percentage rate over the next 12 months, which should benefit performance if the company can manage it well. S&P would likely lower the rating if weaker-than-expected operating results due to competitive pressures or a poor execution of the company's growth strategy leads to lower operating margins, causing debt to EBITDA to increase to the low 6.0x-area rather than declining. This scenario could occur if same store sales are flat and gross margin contracts by about 50 basis points (bps) over S&P's projections in 2013 through 2014. S&P could also consider a lower rating if liquidity becomes constrained, demonstrated by covenant cushion headroom declining below 15%. Alternatively, S&P could consider an upgrade if operating performance progresses at a faster rate than it expects and its view of the financial sponsors' appetite for future dividend payments allows the company to maintain an "aggressive" financial risk profile. This would result in sustained debt leverage at about 4x, which would merit a change in how S&P currently assess the company's financial risk profile. For this to occur, debt would need to decline by approximately $120 million given S&P's EBITDA forecast for 2013 and also be sustained at that level into 2014. SPORTSMAN'S WAREHOUSE: Moody's Assigns B2 Rating to New Term Loan ----------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to the first-out tranche of Sportsman's Warehouse, Inc.'s proposed senior secured term loan, a Caa1 to the last-out tranche, and affirmed the company's B2 Corporate Family Rating. The ratings outlook remains stable. Sportsman's intends to use proceeds from the proposed term loan to refinance its existing $125 million term loan due 2018 and fund an approximately $102 million dividend to its shareholders. The assigned ratings are based on terms and conditions of the financing provided to Moody's, and are subject to review of final documentation. The proposed transaction follows an earlier debt financed special dividend that the company completed in November 2012, and is expected to yield pro forma leverage of approximately 5.1x, compared to 4.1x as of the latest twelve month period ended May 4, 2013 (as calculated using Moody's standard analytic adjustments including capitalizing rent at eight times). Sportsman's Warehouse has seen operating profits double over the last 18 months as a result of continued growth in the outdoor sporting goods market augmented by a spike in demand for firearms and ammunition, as well as continued profitable organic store unit growth and the acquisition of ten previously-owned stores in March 2013. A portion of this growth in earnings has been event driven due to the spike in firearm sales, which will likely taper off in the back half of the year due to the difficult comparisons with last year. Though financial leverage materially increases pro forma for the dividend, the affirmation of the B2 CFR reflects the company's materially increased scale (46 stores currently versus 33 at February 2, 2013) and strong financial performance over the last three years. Ratings Assigned: - $185 million senior secured term loan (first-out tranche) due 2019 at B2 (LGD4, 51%) - $50 million senior secured term loan (last-out tranche) due 2019 at Caa1 (LGD5,86%) Ratings Affirmed: - Corporate Family Rating at B2 - Probability of Default Rating at B2-PD Rating Affirmed and to be withdrawn upon closing of the refinancing: - $125 million senior secured term loan due 2018 at B3 (LGD 4, 58%) Ratings Rationale: Sportsman's B2 CFR reflects its modest scale, narrow product focus and geographic concentration. The company currently operates 46 stores in 17 states, predominantly in the Western United States with a narrow focus on sporting goods for the outdoor enthusiast. The rating also reflects Sportsman's high financial leverage and fairly aggressive nature of debt funded distributions to shareholders, which pro forma for the proposed transaction includes returning over $220 million (or nearly 3 times LTM EBITDA) to shareholders since November 2012. Supporting the rating are Sportsman's credible market position in the regions where it operates, and its established track record of strong organic growth over the past three years, led by strong positive same-store sales and new store openings. The rating is also supported by solid fundamentals in the outdoor sporting goods market, which is considered a relatively stable segment of the specialty retail industry due to the increased participation rates and recurring nature of many products. Liquidity is adequate, supported by the expectation that cash flow and excess revolver availability will be more than sufficient to fund seasonal working capital and capital spending over the next 12-18 months, with any excess used for debt reduction. The stable outlook reflects Moody's expectation that Sportsman's will achieve moderate revenue and earnings growth while utilizing free cash flow to fund growth and to reduce leverage. The B2 rating assigned to the proposed first-out term loan reflects its junior claim position relative to the $75 million ABL revolver (unrated) with respect to inventory and credit card receivables as well as its priority position to the proposed $50 million last-out tranche in a default scenario. The Caa1 assigned to the last-out tranche reflects its junior claim position relative to both the $75 million ABL revolver (unrated) and the first-out tranche of the term loan. All guarantor, collateral, and covenant provisions are expected to remain the same as the existing credit agreement. Given Sportsman's small scale and history of debt financed dividends to owners, ratings upside is unlikely in the near term. However, the ratings could be upgraded if the company demonstrates sustained organic revenue and earnings growth, while sustaining debt/EBITDA below 4.5 times and EBITA/interest over 2.5 times. The ratings could be downgraded if performance deteriorates such that debt/EBITDA increases above 6.0 times or if EBITA/interest expenses approaches 1.5 times. Erosion in the company's liquidity (such as reduced cushion under financial covenants or weaker-than- expected cash flow) or more aggressive financial policies (such as further debt-financed acquisitions or dividends) could also pressure the ratings. Headquartered in Midvale, UT, Sportsman's Warehouse, Inc. is a retailer of outdoor sporting goods mainly located in the Western United States. Revenue approached $570 million for the twelve months ended May 4, 2013. The company is majority owned by Seidler Equity Partners. The principal methodology used in this rating 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. SPROUTS FARMERS: Debt Reduction Spurs Moody's to Lift CFR to B1 --------------------------------------------------------------- Moody's Investors Service upgraded Sprouts Farmers Market Holdings, LLC's Corporate Family Rating and Probability of Default Rating to B1 and B1-PD from B2 and B2-PD respectively. Moody's also upgraded the rating of the company's $360 million senior secured term loan and $60 million senior secured revolving credit facility to B1 from B2. Additionally, Moody's assigned Sprouts a speculative grade liquidity rating of SGL-2. The rating outlook is stable. "The significant reduction in Sprouts' total debt through proceeds from its IPO will result in substantial improvement in credit metrics", said Mickey Chadha, Senior Analyst at Moody's. "In addition we expect Sprouts' good operating performance to continue and further improve profitability and credit metrics in the next 12 to18 months", Chadha further stated. The following ratings are upgraded: Corporate Family Rating at B1 from B2 Probability of Default Rating at B1-PD from B2-PD $360 million Senior Secured Term Loan maturing 2020 at B1 (LGD3, 49%) from B2 (LGD3, 49%) $60 million Senior Secured Revolving Credit Facility maturing 2018 at B1 (LGD3, 49%) from B2 (LGD3, 49%) The following ratings are assigned: Speculative Grade Liquidity Rating at SGL-2 Ratings Rationale: Sprouts' B1 Corporate Family Rating reflects its relatively small scale, aggressive growth strategy, and financial policy risks. Although Sprouts' estimated debt to EBITDA for fiscal 2013 is expected to improve to approximately 4.5 times from Moody's previous estimate of about 6.0 times (including Moody's standard adjustments) primarily as a result of the repayment of $340 million of its senior secured term loan through the proceeds of its recent IPO, its capital structure remains highly leveraged. The ratings also reflect the company's attractive market niche, good operating performance in a challenging economic and competitive environment, and good liquidity. The stable rating outlook incorporates Moody's expectation that Sprouts' same store sales growth will remain positive, liquidity will remain good and there will be no material change in industry conditions. Moody's anticipates a modest improvement in credit metrics over the next year. The outlook also reflects Moody's expectation of no further material debt financed shareholder distributions or acquisitions in the next 12-18 months. Ratings could be upgraded should the company demonstrate continued solid growth in revenues and profitability accompanied by a sustained improvement in credit metrics. Quantitatively, an upgrade could be achieved if debt to EBITDA is sustained below 4.0 times and EBITA to interest is maintained in excess of 2.75 times. Ratings could be downgraded if debt to EBITDA is sustained above 5.0 times, or if EBITA to interest is sustained below 2.0 times. Ratings could also be downgraded if the company's same store sales growth or cash flow deteriorates or if operating performance indicates loss of customer traffic or if there is a shift towards a more aggressive financial policy. Sprouts Farmers Market, LLC is a publicly traded specialty food retailer headquartered in Phoenix, Arizona. The company operates 163 stores in 8 states including Arizona, California, Texas, Colorado, New Mexico, Nevada, Oklahoma and Utah. An affiliate of Apollo Management owns about 45% of Sprouts. The principal methodology used in this rating 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. STACY'S INC: Accuses Lender of Trying to Derail Sale ---------------------------------------------------- Katy Stech, writing for DBR Small Cap, reported that struggling nursery operator Stacy's Greenhouses Inc. has accused its biggest lender of trying to derail a bankruptcy auction for its 260-acre operations located south of Charlotte, N.C., with the motive of forcing the company into state receivership instead. About Stacy's Inc. Stacy's Inc., a commercial greenhouse in York, South Carolina, filed a Chapter 11 petition on June 21 (Bankr. D. S.C. Case No. 13-03600) in Spartanburg, South Carolina, with a deal to sell the business for $17 million to Metrolina Greenhouses, absent higher and better offers. Stacy's -- http://www.stacysgreenhouses.com/-- has 16 acres of greenhouses on three farms aggregating 260 acres in York, South Carolina. The business employs 1,000 people during its peak season. The biggest customers include Home Depot, Lowe's, Wal- Mart, Tractor Supply Company, Costco, and Harris Teeter. The secured lender is Bank of the West, owed $22.1 million secured by liens on the assets. The Debtor disclosed $26.4 million in total assets and $31.4 million in liabilities in its schedules. The secured lender is Bank of the West, owed $22.1 million secured by liens on the assets. The Debtor has tapped Barton Law Firm, P.A, as bankruptcy counsel; Ouzts, Ouzts & Varn, P.A. as its financial advisor; SSG Advisors, LLC, as its investment banker; and Faulkner and Thompson, P.A., to provide limited accounting services. SYNAGRO TECHNOLOGIES: Lowballed $4MM Claim, Conn. City Says ----------------------------------------------------------- Law360 reported that the city of Waterbury, Conn., urged the Delaware bankruptcy court to reject Synagro Technologies Inc.'s Chapter 11 plan, saying the biosolids recycling company largely undervalued the $4 million it owes to the city, making the plan unworkable. Synagro makes provisions to pay the city only $623,000, but the municipality says it is actually owed $4.3 million connected to a sludge disposal agreement the company had with Waterbury, according to the motion filed in the U.S. Bankruptcy Court for the District of Delaware, the report related. About Synagro Synagro Technologies, Inc., based in Houston, Texas, is the recycler of bio-solids and other organic residuals in the U.S. and is one of the largest national companies focused exclusivity on biosolids recycling, which has a market size of $2 billion. The Company was formed in 1986, under the name RPM Marketing, Inc. Synagro's corporate headquarters is currently located in Houston, Texas but is in the process of being transferred to White Marsh, Maryland. The Company also has offices in Lansdale, Pennsylvania, Rayne, Louisiana, and Watertown, Connecticut. Synagro Technologies and 29 affiliates sought Chapter 11 protection (Bankr. D. Del. Case no. 13-11041) on April 24, 2013. The lead debtor estimated assets and debts at $10 million to $50 million. Synagro Technologies disclosed $8,714,426 in assets and $430,489,161 in liabilities. Synagro was owned by The Carlyle Group at the time of the bankruptcy filing. It was acquired in April 2007 by Carlyle in a $741 million transaction. Synagro is being advised by Mark S. Chehi, Esq., at the law firm of Skadden Arps Slate Meagher & Flom, along with financial adviser AlixPartners and investment bankers Evercore Partners. Kurtzman Carson & Consultants serves as notice and claims agent. No creditors' committee has been appointed in the cases by the United States Trustee. T-L BRYWOOD: RCG-KC Brywood Balks at Plan Outline Approval ---------------------------------------------------------- RCG-KC Brywood, LLC, successor by assignment to The PrivateBank & Trust Company, filed a limited objection asking the Bankruptcy Court to deny approval of the Joint Disclosure Statement explaining T-L Brywood LLC's Chapter 11 Plan. As reported in the Troubled Company Reporter on June 26, 2013, the Debtor submitted a Joint Disclosure Statement explaining their proposed Plan of Reorganization. According to the Disclosure Statement, the Plan provides for full payment of Class 1 Claim of RCG-KC Brywood, LLC, Class 2 Claim of CT Bank, Class 6 Claim of JC Collector, and Class 7 Claim of The Conyers Tax Collectors. Classes 3 to 5 Claim of CT Bank will receive monthly interest payments until the claim is paid in full. Class 8 Claim of the Smyrna Tax Collectors will be paid in full in cash on the Effective Date or soon as practicable thereafter. The Plan is premised upon the deemed substantive consolidation of the Debtors solely for purposes of implementing the Plan, including for purposes of voting, confirmation, distributions to creditors and administration. On the Effective Date, and for Plan Implementation purposes only: 1. the assets and liabilities of each of the Debtors will be treated as though such assets and liabilities were assets and liabilities of a single entity; 2. the collective cash flow of all of the Debtors maybe utilized to pay for the operating expenses and the payments required under the plan for all Debtors; and 3. inter-Debtor claims as of the filing of the Chapter 11 cases, if any, are extinguished. A copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/T-L_BRYWOOD_ds.pdf About T-L Brywood T-L Brywood LLC filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No.12-09582) on March 12, 2012. T-L Brywood owns and operates a commercial shopping center known as the "Brywood Centre" -- http://www.brywoodcentre.com/-- in Kansas City, Missouri. The Property encompasses roughly 25.6 acres and comprises 183,159 square feet of retail space that is occupied by 12 operating tenants. The occupancy rate for the Property is approximately 80%. The Debtor and lender The PrivateBank and Trust Company reached an impasse over the terms and conditions of another extension of a mortgage loan on the Property. As a result, the Debtor filed the Chapter 11 case to protect the Property from foreclosure while the Debtor formulates an exit strategy from the reorganization case. As of the Petition Date, no foreclosure relating to the Property had been filed by the Lender. Judge Donald R. Cassling oversees the case. The Debtor is represented by David K. Welch, Esq., Arthur G. Simon, Esq., and Jeffrey C. Dan. Esq., at Crane, Heyman, Simon, Welch & Clar, in Chicago. The Debtor disclosed total assets of $16,666,257 and total liabilities of $13,970,622 in its schedules. The petition was signed by Richard Dube, president of Tri-Land Properties, Inc., manager. The Plan filed in the Debtors' cases is premised upon the deemed substantive consolidation of the Debtors solely for purposes of implementing the Plan, including for purposes of voting, confirmation, distributions to creditors and administration. PrivateBank is represented by William J. Connelly, Esq., at Hinshaw & Culbertson LLP. No committee of creditors was appointed by the U.S. Trustee. TALON INTERNATIONAL: Posts $1.3 Million Net Income in Q2 -------------------------------------------------------- Talon International, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $1.26 million on $16.64 million of net sales for the three months ended June 30, 2013, as compared with net income of $671,134 on $13.17 million of net sales for the same period a year ago. For the six months ended June 30, 2013, the Company reported net income of $1.54 million on $26.78 million of net sales, as compared with net income of $465,504 on $21.92 million of net sales for the same period during the prior year. Talon International disclosed net income of $679,347 for the year ended Dec. 31, 2012, as compared with net income of $729,133 during the prior year. As of June 30, 2013, the Company had $22.99 million in total assets, $13.22 million in total liabilities, $25.77 million in series B convertible preferred stock, and a $16 million total stockholders' deficit. "We are pleased with our second quarter results, and our ability to deliver our fourth consecutive double-digit, quarterly increase in revenues over the prior-year results," noted Lonnie Schnell, Talon's CEO. "This year we have continued to execute on our vision for Talon's future by expanding our global sales teams and opening new sales offices in Europe and Asia. We are capitalizing on the opportunities we see to expand our reach and enter into new and promising geographies. Importantly, now that we have successfully eliminated the preferred stock liabilities, we are better capitalized, and even better positioned, to compete and grow significantly." A copy of the Form 10-Q is available for free at: http://is.gd/yqa0vX About Talon International Woodland Hills, Cal.-based Talon International, Inc. (OTC BB: TALN) -- http://www.talonzippers.com/-- is a global supplier of apparel fasteners, trim and interlining products to manufacturers of fashion apparel, specialty retailers, mass merchandisers, brand licensees and major retailers. Talon manufactures and distributes zippers and other fasteners under its Talon(R) brand, known as the original American zipper invented in 1893. Talon also designs, manufactures, engineers, and distributes apparel trim products and specialty waistbands under its trademark names, Talon, Tag-It and TekFit, to more than 60 apparel brands and manufacturers including Wal-Mart, Kohl's, J.C. Penney, Victoria's Secret, Tom Tailor, Abercrombie and Fitch, Polo Ralph Lauren, Phillips-Van Heusen, Reebok and Juicy Couture. Talon has offices and facilities in the United States, United Kingdom, Hong Kong, China, and Bangladesh. TERESA GIUDICE: 'Real Housewives Of NJ' Stars Plead Not Guilty -------------------------------------------------------------- Law360 reported that two stars of the Bravo reality show "The Real Housewives of New Jersey" pled not guilty to 39 charges, including bankruptcy fraud and bank fraud, in New Jersey federal court. According to the report, Teresa Giudice, the self-proclaimed "Jersey Girl" turned author of "skinny" Italian recipes, is known for her role on Bravo's "The Real Housewives of New Jersey" franchise, which chronicles the lives of five women living in northern New Jersey. As previously reported by The Troubled Company Reporter, the two stars of the reality show have been accused of lying on loan applications, committing bankruptcy fraud and failing to file tax returns, according to an indictment by a New Jersey grand jury. The 39-count indictment charges Ms. Giudice and her husband, Giuseppe "Joe" Giudice, both of Towaco, N.J., with conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications, bankruptcy fraud and failure to file tax returns. The two stars were released on bonds of $500,000 each following their initial court appearance. About the Giudices In June 2010, Teresa Giudice, who portrays a role in Real Housewives of New Jersey, and her husband, Joe, filed for bankruptcy under Chapter 11 in the U.S. Bankruptcy Court in New Jersey. The Giudices owe creditors $10.85 million. Chapter 7 trustee John Sywilok sued the Giudices. The suit claimed that the Debtors concealed key documents about their finances and business transactions. Mr. Sywilok also accused the couple of making false statements under oath about their assets, income and expenses. TIMIOS NATIONAL: Posts $329,000 Net Income in Second Quarter ------------------------------------------------------------ Timios National Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to common stockholders of $329,200 on $8.51 million of net revenue for the three months ended June 30, 2013, as compared with a net loss of $427,552 on $4.57 million of net revenue for the same period a year ago. For the six months ended June 30, 2013, the Company posted net income attributable to common stockholders of $395,024 on $15.87 million of net revenue, as compared with a net loss attributable to common stockholders of $546,410 on $9.46 million of net revenue for the same period during the prior year. Timios National disclosed a net loss of $2.76 million for the year ended Dec. 31, 2012, as compared with a net loss of $3.98 million for the year ended June 30, 2011. The Company's balance sheet at June 30, 2013, showed $4.87 million in total assets, $2.44 million in total liabilities and $2.42 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/3ayWwZ About Timios National Timios National Corporation (formerly known as Homeland Security Capital Corporation) was incorporated in Delaware on Aug. 12, 1997, under the name "Celerity Systems, Inc." In August 2005, the Company changed its name to "Homeland Security Capital Corporation" and changed its business plan to seek acquisitions of and joint ventures with companies operating in the homeland security business sector and, until July 2011, operated soley as a provider of specialized, technology-based, radiological, nuclear, environmental, disaster relief and electronic security solutions to government and commercial customers. The Company's corporate headquarters is located in Arlington, Virginia. TNP STRATEGIC: Proposal Would Have Avoided Defaults, Thompson Says ------------------------------------------------------------------ Thompson National Properties, LLC on Aug. 16 disclosed that it believes the Special Committee of the Board of Directors of TNP Strategic Retail Trust, Inc. ("SRT") comprised of Phillip Levin, John Maier and Jeffrey Rogers has facilitated the takeover of the company by Glenborough LLC without shareholder approval or payment of a control premium. TNP believes that SRT's August 12th press release is an attempt to disguise Glenborough's acquisition of control of SRT by continuing to deflect blame for the Special Committee's poor decisions. TNP said "Based on the past actions of Levin, Rogers and Maier on the Special Committee, we believe the company will continue to perform poorly if it is managed by Levin, Rogers and Maier. TNP understands that the most important issue to the SRT shareholders is the return of their capital and making a profit." The Special Committee Has Engineered the Takeover of SRT by Glenborough TNP said "We believe the most recent actions of Levin, Rogers and Maier as Special Committee members to purportedly terminate its relationship with TNP and to appoint a Glenborough representative to the Board of Directors are part of a scheme to facilitate Glenborough's takeover of SRT." "Glenborough has steadily sought control over SRT without shareholder approval or any payment of control premium. In fact, far from paying any premium, we believe Glenborough has acquired its interest in SRT at a significant detriment and cost to the shareholders. Below are a few examples of the facilitation of Glenborough's creeping control by directors Levin, Rogers and Maier, none of which were approved by the shareholders: -- The Special Committee hired Glenborough as a consultant in December 2012 and initially was paid $75,000 a month, which was subsequently raised to $90,000 a month, to do the same work that TNP was performing. In connection with hiring Glenborough, the Special Committee stripped TNP of effectively all of its authority to advise and manage SRT. -- The Special Committee sold Glenborough a 12% interest in SRT Holdings (an SRT subsidiary that holds five properties) in a sweetheart deal. The transaction resulted in an immediate transfer of more than $468,000 of value from the SRT shareholders to Glenborough's pockets because the purchase price was based on the net acquisition cost, and not the higher current market value, of those five properties. Adding insult to injury, SRT paid for all of Glenborough's legal fees in connection with the transaction. In total, SRT paid almost six figures for its and Glenborough's legal fees and other transaction expenses. In addition, under the terms of the transaction, Glenborough cannot be removed from managing those properties unless it is bought out. Because the buyout price is based on the then current market value of the properties plus a preferred return of 7%, this is a poison pill that makes Glenborough's termination inappropriately costly. We understand that the Special Committee did not even solicit third parties to obtain better investment terms than those offered by Glenborough or obtain an independent fairness opinion. TNP would have matched or exceeded these terms, but it was not given the opportunity. -- The Special Committee has terminated TNP as the advisor and is attempting to terminate TNP Property Manager, LLC ("TNP Manager") as property manager. TNP Manager has managed SRT's properties under difficult circumstances. Now as the properties begin to stabilize and the economy improves, the Special Committee has handed over the keys to Glenborough without getting any value for shareholders that we can discern. The Special Committee has now appointed Glenborough as a property manager, which we believe is a violation of TNP Manager's property management agreements and may potentially breach various loan agreements. In our view, these violations will result in SRT incurring additional legal fees, just like the large legal fees incurred with respect to the Key Bank and Torchlight loans." SRT Shareholders Have Been Disenfranchised TNP said "The Special Committee claims they have taken these actions in the best interests of the shareholders, but it has not bothered to solicit the input of the shareholders through a vote. Moreover, SRT has not held an annual meeting in almost 13 months, which has further disenfranchised the SRT shareholders from expressing their views about the direction of the company." "The shareholders invested in SRT based on the vision and leadership of TNP. We believe Glenborough is the wrong advisor to manage SRT. SRT focuses on grocery anchored, multi-tenant retail centers. Glenborough has virtually no retail experience. In fact, Glenborough's own public disclosures show that its managed portfolio is comprised of nearly all office properties. We do not think the SRT shareholders should pay Glenborough to learn on the job. Moreover, TNP is committed to promptly achieving a liquidity event for SRT shareholders. Glenborough's track record suggests its investment philosophy is to purchase and hold distressed properties and that Glenborough does not focus on achieving a liquidity event for investors in the near term. Glenborough took over investment programs by Rancon and August, among others, in the 1990s, and today Glenborough is still holding some of those properties under its fee-oriented management system. "In contrast, TNP and its affiliates have 20 years of retail experience and TNP Manager maintains the same property management staff today that has managed and leased the SRT properties for the last three years. TNP Manager's operating results to date demonstrate its successful performance as a property manager for SRT. For example, TNP Manager sold eight parcels, generating a 26.6% increase in value compared to the implied value basis of the parcels. The acquisition and sale of the Waianae Mall provides another example of TNP's generation of value for shareholders. Waianae was sourced by TNP in 2010 and sold less than three years later. The sale generated a 47% internal rate of return and over $8.7 million in cash. "The shareholders should have been provided the opportunity to vote on such a fundamental change to the management and direction of the company. Special Committee Continues to Deflect Blame for its Bad Decisions TNP said "SRT's August 12th press release is rife with misstatements and inaccuracies and is just the most recent example of the attempt by Special Committee members Levin, Rogers and Maier to deflect blame for their bad decisions. For example: -- The Special Committee's and Glenborough's offer to waive or return some fees and the unsupported cost savings number are a weak attempt to mask the excessive expenses that the Special Committee has burdened the shareholders with. SRT fails to mention that it has incurred at least $5 million of unnecessary costs or losses because of the Special Committee's actions, which includes: (1) the $468,000 effective loss to shareholders because of Glenborough's sweetheart investment in SRT Holdings, (2) the $1 million in fees paid to Levin, Rogers and Maier and attorneys for the Special Committee, (3) $1 million of fees paid to a prior auditor that could have been avoided if the Special Committee terminated them when TNP recommended instead of waiting an additional six months to terminate the auditor, (4) $100,000's in fees for employee terminations, (5) $750,000 in additional annual interest costs and attorney fees because of the forbearance with Key Bank and defaults with Torchlight, which we believe could have been avoided if the Special Committee implemented our alternative proposal, (6) the Lahaina Gateway Center loss because of the deed in lieu of foreclosure decision by the Special Committee and (7) excessive travel, lodging, meals and alcohol expenses, including private air charter and first class hotels for Special Committee members and Glenborough executives. -- Levin, Rogers and Maier as members of the Special Committee fail to acknowledge that they voted to stop paying dividends to the shareholders even though they have paid themselves, Glenborough and their respective attorneys almost $2 million. We think it is unfair that during this same period the shareholders have received only $661,633 in dividends. -- Glenborough's asset management fees are likely to be higher than TNP's asset management fees. Glenborough has a fixed fee structure. Contrast that to TNP's performance based fees where TNP would not be paid asset management fees until funds from operations of the company exceed certain thresholds. Moreover, Glenborough is guaranteed at least $250,000 of asset management fees per year. -- Levin, Rogers and Maier were fully informed of and approved the terms of the loan for the Lahaina Gateway Center that they now claim were onerous. They understood that the ability to acquire the Lahaina Gateway Center at almost $5 million below appraisal value presented a unique opportunity, but as a trade-off would result in negative cash flow in the near term as the property was stabilized. As described below, TNP presented solutions that would have addressed these cash flow issues, which the Special Committee declined. Accordingly, the Special Committee should shoulder the blame for the loss incurred by prematurely handing the property back to the lender just nine months after the Special Committee voted to use the full appraised value of Lahaina to calculate SRT's NAV in November 2012. Glenborough and its CEO Andrew Batinovich also recommended the surrender of the Lahaina property back to the lender. Director Tony Thompson was the only director that voted against this damaging decision. -- The Special Committee rejected our proposal that we believe would have avoided defaults under the Key Bank loan. As previously described in our July 23, 2013 letter, TNP had presented for the Special Committee's approval a $2.75M unsecured line of credit as well as financing options to refinance up to three properties secured by the Key Bank line of credit, which also would have addressed the cash flow of the Lahaina property. In our view, the new line of credit and the proceeds from the refinancing would have paid down a significant portion of Key Bank line of credit and avoided the defaults with Key Bank and Torchlight and decreased the company's annual interest expense. -- We believe the Special Committee's attempt to terminate the property asset management agreements is a clear violation of the terms of those agreements. This improvident action will result in further fees and costs to SRT shareholders as we vindicate our rights. Furthermore, for the members of the Special Committee to assert that they did not agree to the property management agreements smacks of disingenuousness. These agreements have been in place as early as 2009, and were publicly filed in the company's SEC filings. -- Contrary to the Special Committee's statements, FINRA has not accused TNP of securities violations and does not have any jurisdiction over TNP. -- TNP Manager has been operating profitably since inception and is adequately capitalized. TNP Manager has ample resources to meet all of its financial and service obligations. The Special Committee continues to throw out the equity value of TNP but it has no bearing on the financial strength of TNP Property Manager, who again has operated profitably since inception. -- TNP has not refused to turn over the shareholder records. TNP is ready and able to cooperate subject to the payment of costs that it incurs to transfer the data. TNP said "We believe TNP has been scapegoated for the failures resulting from the Special Committee's unilateral and ill- considered decision to take control of the management of the company. We could go on to try to correct all of the inaccuracies and misstatements, but we think this would be better addressed by allowing the shareholders to voice their opinions at a shareholder meeting. So far, Levin, Rogers and Maier as Special Committee members have refused to call an annual meeting for this year. We urge Levin, Rogers and Maier to act in the best interests of the shareholders and to fulfill their fiduciary duties by giving shareholders a say in the direction of SRT." About TNP TNP -- http://www.tnpre.com-- is a real estate advisory company, specializing in acquisitions for high net worth investors and their joint venture partners, along with 3rd party property management, asset management and receivership advisory services. Headquartered in Costa Mesa, California, TNP was founded in April 2008 and has three regional offices. As of August 16, 2013, TNP manages a portfolio of 106 commercial properties, in 24 states, totaling approximately 11.02 million square feet, on behalf of over 6,000 investor/owners/lenders with an overall purchase value of $1.2 billion. About TNP Strategic TNP Strategic Retail Trust, Inc., was formed on Sept. 18, 2008, as a Maryland corporation. The Company believes it qualifies as a real estate investment trust under the Internal Revenue Code of 1986, as amended, and has elected REIT status beginning with the taxable year ended Dec. 31, 2009, the year in which the Company began material operations. The Company was initially capitalized by the sale of 22,222 shares of common stock for $200,000 to Thompson National Properties, LLC, on Oct. 16, 2008. TNP Strategic's balance sheet at Sept. 30, 2012, showed $272.33 million in total assets, $197.98 million in total liabilities and $74.34 million in total equity. The Company reported a net loss of $11.63 million for the nine months ended Sept. 30, 2012, compared with a net loss of $4.39 million for the same period a year ago. TRINITY COAL: Files Bankruptcy-Exit Plan Backed by Essar -------------------------------------------------------- Marie Beaudette, writing for DBR Small Cap, reported that Trinity Coal Corp. has filed a plan to exit Chapter 11 protection under the control of its current owner, India's Essar Global. About Trinity Coal Trinity Coal Corp. is a coal mining company that owns coal deposits located in the Appalachian region of the eastern United States, specifically, in Breathitt, Floyd, Knott Magoffin, and Perry Counties in eastern Kentucky and in Boone, Fayette, Mingo, McDowell and Wyoming Counties in West Virginia. Trinity's coal mining operations are organized into six distinct coal mining complexes. Three complexes are located in Kentucky and are referred to as Prater Branch Resources, Little Elk Mining and Levisa Fork. The Kentucky Operations produced compliance and low sulfur steam coal. Three complexes are located in West Virginia and are referred to as Deep Water Resources, North Springs Resources and Falcon Resources. Trinity is a wholly owned subsidiary of privately held multinational conglomerate Essar Global Limited. Credit Agricole Corporate & Investment Bank, ING Capital LLC and Natixis, New York Branch filed an involuntary petition for relief under Chapter 11 against Trinity Coal Corporation and 15 affiliates (Bankr. E.D. Ky. Lead Case No. 13-50364). The three entities say they are owed a total of $104 million on account loans provided to Trinity. On Feb. 14, 2013, Austin Powder Company, Whayne Supply Company and Cecil I. Walker Machinery Co. filed an involuntary petition for relief under Chapter 11 (Bankr. E.D. Ky. Case No. 13-50335) against Frasure Creek Mining, LLC. On Feb. 19, 2013, Credit Agricole, ING Capital and Natixis joined as petitioning creditors. On March 4, 2013, the Debtors filed their consolidated answer to involuntary petitions and consent to an order for relief and reservation of rights, thereby consenting to the entry of an order for relief in each of their respective Chapter 11 cases. An order for relief in each of the Debtors was entered by the Court on March 4, 2013, which converted the involuntary cases to voluntary Chapter 11 cases. Sturgill, Turner, Barker & Moloney, PLLC serves as local counsel to the Official Committee of Unsecured Creditors. UNIFIED 2020: Can Employ Southland as Property Tax Consultant ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas authorized Unified 2020 Realty Partners, LP, to employ Michael Flynn of Southland Property Tax Consultants, Inc., as Property Tax Consultant for the Debtor. As reported in the TCR on June 28, 2013, Southland Property will negotiate the ad valorem tax appraised value of the Debtor's property. Southland has agreed to represent the Debtor on a contingency basis. The fee to be paid to Southland is 25 percent of any ad valorem tax savings realized for the Debtor. About Unified 2020 Realty Unified 2020 Realty Partners, LP, filed a bare-bones petition under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 13-32425) in its home-town in Dallas on May 6, 2013. The petition was signed by Edward Roush as president of general partner. The Debtor disclosed $44.7 million in total assets and $31.6 million in liabilities as of the Chapter 11 filing. The Debtor says it owns and leases infrastructure critical to telecommunications companies and data center facilities. Judge Stacey G. Jernigan presides over the Chapter 11 case. Arthur I. Ungerman, Esq., and Kerry S. Alleyne-Simmons, Esq., at the Law Office of Arthur Ungerman, in Dallas, Texas, represent the Debtor. Peter C. Lewis, Esq., and Jacob W. Sparks, Esq., at Scheef & Stone, LLP, in Dallas, Texas, represent United Central Bank. In its schedules, the Debtor disclosed $280,178,409 in assets and $46,378,972 in liabilities. UNIFIED 2020: Taps J. Slim for Litigation Matters Pending in Court ------------------------------------------------------------------ Unified 2020 Realty Partners, LP, asks the U.S. Bankruptcy Court for the Northern District of Texas for authorization to employ Jules Slim, Esq., as the Debtor's co-counsel. According to papers filed with the Court on August 4, Mr. Slim will represent the Debtor for litigation matters now pending before the Court such as 1) Debtor's Objection to Motion to Appoint Trustee of Orange Business Services U.S., Inc., 2) Debtor's Objection to Emergency Motion to Remove Edward J. Roush, Jr., as Acting on Behalf of Debtor in Possession Pursuant to 11 U.S.C. 1104; and any future Litigation that may arise in its Bankruptcy Proceeding. Mr. Slim''s hourly rate will be $275 per hour. About Unified 2020 Realty Unified 2020 Realty Partners, LP, filed a bare-bones petition under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 13-32425) in its home-town in Dallas on May 6, 2013. The petition was signed by Edward Roush as president of general partner. The Debtor disclosed $44.7 million in total assets and $31.6 million in liabilities as of the Chapter 11 filing. The Debtor says it owns and leases infrastructure critical to telecommunications companies and data center facilities. Judge Stacey G. Jernigan presides over the Chapter 11 case. Arthur I. Ungerman, Esq., and Kerry S. Alleyne-Simmons, Esq., at the Law Office of Arthur Ungerman, in Dallas, Texas, represent the Debtor. Peter C. Lewis, Esq., and Jacob W. Sparks, Esq., at Scheef & Stone, LLP, in Dallas, Texas, represent United Central Bank. In its schedules, the Debtor disclosed $280,178,409 in assets and $46,378,972 in liabilities. UNIFIED 2020: Schiller Exline Asks Court to Remove Edward Roush --------------------------------------------------------------- Schiller Exline, PLLC, a law firm that previously represented Debtor United 2020 Realty Partners, LLP, asks the U.S. Bankruptcy Court for the Northern District of Texas to remove Edward W. Roush, Jr. as acting on behalf of the Debtor-in-Possession, pursuant to 11 U.S.C. 1104. According to papers filed with the Court July 9, all filings with the Court have been made by and through Edward W. Roush, Jr., the alleged President of the General Partner of the Debtor and Sole Manager of BVL Partners, LLC (the sole manager of the General Partner). According to the Movant, cause exists to remove Edward W. Roush, Jr., for the following reasons: 1. Edward W. Roush, Jr., has hidden Debtor's real property assets that were given away on April 15, 2013, to another entity that he controls, Rainmaker Advisors, LLC; 2. Edward W. Roush, Jr., has filed falsified Statements of Financial Affairs to hide the Real Estate transferred on April 15, 2013, to another entity that he controls and then gifted to a charitable organization; 3. Edward W. Roush, Jr., resigned "as an officer in all capacities of Unified 2020 Realty Partners GP, LLC" effective June 25, 2013, at 12 noon; 4. BVL Partners, LLC, by and through Edward W. Roush, Jr., its sole manager, resigned and withdrew as Sole Manager of Unified 2020 Realty Partners GP, LLC, on June 25, 2013, effective 12 noon; 5. Edward W. Roush, Jr., "resigned as an officer in all capacities of Unified Live Oak Equity Partners GP, LLC" on June 25, 2013, effective 12 noon; and 6. BVL Partners, LLC, by and through its sole manager Edward W. Roush, Jr., resigned and withdrew as the Sole Manager of Unified Live Oak Equity Partners GP, LLC, on June 25, 2013, effective 12 noon. About Unified 2020 Realty Unified 2020 Realty Partners, LP, filed a bare-bones petition under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 13-32425) in its home-town in Dallas on May 6, 2013. The petition was signed by Edward Roush as president of general partner. The Debtor disclosed $44.7 million in total assets and $31.6 million in liabilities as of the Chapter 11 filing. The Debtor says it owns and leases infrastructure critical to telecommunications companies and data center facilities. Judge Stacey G. Jernigan presides over the Chapter 11 case. Arthur I. Ungerman, Esq., and Kerry S. Alleyne-Simmons, Esq., at the Law Office of Arthur Ungerman, in Dallas, Texas, represent the Debtor. Peter C. Lewis, Esq., and Jacob W. Sparks, Esq., at Scheef & Stone, LLP, in Dallas, Texas, represent United Central Bank. In its schedules, the Debtor disclosed $280,178,409 in assets and $46,378,972 in liabilities. UNIFIED 2020: OBS Asks Court to Appoint Chapter 11 Trustee ---------------------------------------------------------- Orange Business Services U.S., Inc., a party-in-interest in the Chapter 11 case of United 2020 Realty Partners, LP, asks the U.S. Bankruptcy Court for the Northern District of Texas to appoint a Chapter 11 trustee in the Debtor's case. According to papers filed with the Court on July 23, OBS was tenant in the Building located at 2020 Live Oak Street in Dallas which the Debtor purchased in 2008. According to OBS, after acquiring the Building, the Debtor initiated a series of adversarial steps against OBS in an effort to extract higher rents and cash payments. The Debtor's efforts culminated in an April 2011 lawsuit against OBS in the District Court for the 44th Judicial District of Dallas County, Texas (No. 11-01940-B). OBS relates that in the lawsuit, the Debtor sought more than $100 million in damages under the Lease dating back to 2000. OBS then filed a counterclaim against the Debtor in May 2012 for: (i) the Debtor's breach of the Lease and related agreements; and (ii) the Debtor's conversion of millions of dollars worth of property; and (iii) declaratory relief. On April 22, 2013, the State Court rendered summary judgment in favor of OBS on the Counterclaim, and awarded OBS damages against the Debtor in the approximate amount of $14,223,229. The State Court also awarded punitive damages. OBS presented these arguments: A. The Court should appoint a Chapter 11 trustee to manage the Debtor's affairs. B. Cause exists to appoint a trustee under Section 1104(a)(1), citing: * the removal action filed by Schiller Exline, PLLC, against Edward W. Roush, Jr., presents evidence of fraud and dishonesty. * Edward W. Roush, Jr.., has a problematic history of corporate dealings. About Unified 2020 Realty Unified 2020 Realty Partners, LP, filed a bare-bones petition under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 13-32425) in its home-town in Dallas on May 6, 2013. The petition was signed by Edward Roush as president of general partner. The Debtor disclosed $44.7 million in total assets and $31.6 million in liabilities as of the Chapter 11 filing. The Debtor says it owns and leases infrastructure critical to telecommunications companies and data center facilities. Judge Stacey G. Jernigan presides over the Chapter 11 case. Arthur I. Ungerman, Esq., and Kerry S. Alleyne-Simmons, Esq., at the Law Office of Arthur Ungerman, in Dallas, Texas, represent the Debtor. Peter C. Lewis, Esq., and Jacob W. Sparks, Esq., at Scheef & Stone, LLP, in Dallas, Texas, represent United Central Bank. In its schedules, the Debtor disclosed $280,178,409 in assets and $46,378,972 in liabilities. UNITEK GLOBAL: Incurs $77.7 Million Net Loss in 2012 ---------------------------------------------------- Unitek Global Services, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $77.73 million on $437.59 million of revenues for the year ended Dec. 31, 2012, as compared with a net loss of $9.13 million on $351.45 million of revenues for the year ended Dec. 31, 2011. The Company reported $30.58 million net loss in 2011. As of Dec. 31, 2012, the Company had $326.40 million in total assets, $278.10 million in total liabilities and $48.30 million in total stockholders' equity. Bankruptcy Warning As of Dec. 31, 2012, the Company's total indebtedness, including capital lease obligations, was approximately $170 million. This amount has increased to approximately $210 million as of Aug. 9, 2013, including amounts borrowed to cash collateralize letters of credit. The Company's current debt also bears interest at rates significantly higher than historical periods. The Company said its substantial indebtedness could have important consequences to its stockholders. It will require the Company to dedicate a substantial portion of its cash flow from operations to payments on its indebtedness, thereby reducing the availability of the Company's cash flow to fund acquisitions, working capital, capital expenditures and other general corporate purposes. "An event of default under either of our credit facilities could result in, among other things, the acceleration and demand for payment of all the principal and interest due and the foreclosure on the collateral. As a result of such a default or action against collateral, we could be forced to enter into bankruptcy proceedings, which may result in a partial or complete loss of your investment," the Company said in the filing. A copy of the Form 10-K is available for free at: http://is.gd/TuiWMb About UniTek Global Services UniTek Global Services, Inc., based in Blue Bell, Pennsylvania, provides fulfillment and infrastructure services to media and telecommunication companies in the United States and Canada. * * * As reported by the TCR on June 11, 2013, Standard & Poor's Ratings Services lowered its corporate credit rating on Blue Bell, Pa.- based UniTek Global Services Inc. to 'D' from 'CCC'. "The downgrade follows UniTek's announcement that it did not make a scheduled interest payment on May 29, 2013, on its senior secured term loan due 2018, which we consider to be a default under our timeliness of payments criteria," said Standard & Poor's credit analyst Michael Weinstein. In the June 11, 2013, edition of the TCR, Moody's Investors Service lowered UniTek Global Services, Inc.'s probability of default and corporate family ratings to Ca-PD/LD and Ca, respectively. The Ca corporate family rating reflects UniTek's missed interest payment on the term loan which is considered a default under Moody's definition, the heightened possibility of another default event, continued delays in the filing of restated financials including the last two audits, management turnover, the potential loss of the company's largest customer and other business and legal risks stemming from issues at the company's Pinnacle subsidiary. VALLEYCREST COS: S&P Raises Corp. Credit Rating to 'B' ------------------------------------------------------ Standard & Poor's Ratings Services said it raised its corporate credit rating on Calabasas, Calif.-based ValleyCrest Cos. LLC to 'B' from 'B-'. The outlook is stable. S&P also raised its issue level secured debt rating to 'B' from 'B-' (same as the corporate credit rating). The recovery rating is '4', indicating S&P's expectation for average (30% to 50%) recovery in the event of a payment default. "The one-notch ratings upgrade reflects our view that ValleyCrest's credit metrics have improved, as a result of EBITDA growth attributed to higher sales in the company's key operating segments, favorable mix shift from a rebound in its snow removal business, and moderating fuel costs," said Standard & Poor's credit analyst Linda Phelps. "We believe credit metrics are sustainable at currently lower levels and could continue to improve modestly with debt reduction and lower borrowing costs following the refinancing transaction completed in June 2013," she added. However, S&P believes the company's financial risk profile continues to be "highly leveraged," based on S&P's expectation that leverage will continue to exceed 5x over the next year; S&P also assess the company's financial policy to be "aggressive." S&P views ValleyCrest's business risk profile to be "weak," reflecting the company's narrow business focus, susceptibility to external factors such as weather and rising fuel costs, and its participation in the highly fragmented landscaping market, which has low barriers to entry. (Note: ValleyCrest is a private company, and does not publicly disclose financial data.) The outlook is stable, reflecting S&P's expectation that operating performance will continue to be sound and credit metrics could improve modestly with debt reduction and lower borrowing costs following the recent refinancing transaction. The stable outlook incorporates S&P's expectation that the company will maintain leverage in the high-4x to the mid-5x area. S&P would consider raising the rating one notch if it believes the company can strengthen profitability and sustain leverage in the mid 4x area, possibly through a combination of sales growth and debt reduction. At current debt levels, S&P estimates fiscal 2013 EBITDA would need to increase by about 20% for this to occur. Alternatively, S&P could lower its rating if ValleyCrest experiences weaker operating performance than it expects, related to weak economic growth, unfavorable weather conditions or rising fuel costs, resulting in leverage of over 6x. At current debt levels, S&P estimates that fiscal 2013 EBITDA would need to decline by over 10% for this to occur. VILLAGE AT NIPOMO: Proposed Final Cash Collateral Order Opposed --------------------------------------------------------------- Coastline Re Holdings Corp., a creditor of The Village at Nipomo, LLC, objects to the proposed final order authorizing the Debtor to use cash collateral because the proposed order contains errors and terms not approved by the U.S. Bankruptcy Court for the Central District of California, San Fernando Valley Division, and fails to include the specificity necessary and appropriate with respect to certain terms of cash collateral use. Coastline is the current holder of a loan the Debtor obtained from Pacific Western Bank, which loan is secured by the Debtor's single real property asset. Coastline is represented by A. Kenneth Hennesay, Jr., Esq. -- khennesay@allenmatkins.com -- at Allen Matkin Leck Gamble Mallory & Natsis LLP, in Irvine, California. About Village at Nipomo The Village at Nipomo, LLC, operator of a shopping center in Tefft and Mary Streets, in Nipomo, California, sought Chapter 11 protection (Bankr. C.D. Cal. Case No. 13-13593) on May 28, 2013. The company sought bankruptcy protection following efforts by Pacific Western Bank to appoint a receiver for the Debtor's commercial shopping center known as "The Village at Nipomo". VAN LLC was formed by Edwin F. Moore, who is currently a member of the Debtor, holding a 25 percent interest in the company. Edwin Moore and Carolyn W. Moore earlier filed a separate Chapter 11 petition (Case No. 12-15817). The Debtor disclosed $11,802,970 in assets and $9,645,558 in liabilities as of the Chapter 11 filing. The Debtor is represented by Illyssa I. Fogel, Esq., at Illyssa I. Fogel & Associates. WATERSTONE AT PANAMA: Seeks Extension to File Plan Until Dec. 5 --------------------------------------------------------------- Waterstone at Panama City Apartments, LLC, asks the Bankruptcy Court to extend the deadline within which it can exclusively file a plan of reorganization and disclosure statement until Dec. 5, 2013. The initial deadline for filing a plan and disclosure statement expired on August 7. The Debtor faced a motion to dismiss filed shortly after the Petition Date. The principals of the Debtor have met with examinations pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure and all of the directors of the Debtor have been deposed. "The ongoing discovery, the depositions and the 2004 exams, all of which have been scheduled over the past sixty days, have taken the Debtor's focus away from the preparation of a disclosure statement and preparation of a plan of reorganization, although preliminary work has been done," William L. Biggs, Esq., at Gross & Welch, P.C., LLO, in Omaha, Nebraska, counsel for the Debtor, tells the Court. Mr. Biggs adds that the Debtor had difficulty obtaining a bankruptcy court order authorizing the use of cash collateral because it met resistance at every step in the process from Lenox Mortgage XVII, LLC, the Debtor's lender. The Debtor and Lenox are now in the process of scheduling a meeting to consider settlement. Omaha, Nebraska-based Waterstone at Panama City Apartments, LLC filed for Chapter 11 protection (Bankr. D. Neb. Case No. 13-80751) on April 9, 2013. Bankruptcy Judge Timothy J. Mahoney presides over the case. William L. Biggs, Jr., Esq., at Gross & Welch, P.C., L.L.O., represents the Debtor in its restructuring efforts. The Debtor disclosed $26,159,064 in assets and $26,120,989 in liabilities as of the Chapter 11 filing. The petition was signed by Edward E. Wilczewski, manager. WEB.COM GROUP: S&P Revises Outlook to Pos. & Affirms 'B' CCR ------------------------------------------------------------ Standard & Poor's Ratings Services revised its rating outlook on Jacksonville, Fla.-based Web.com Group Inc. to positive from stable. S&P affirmed its 'B' corporate credit rating on the company. In addition, S&P raised the issue-level rating on the company's $419 million first-lien term loan and $70 million revolving credit facility to 'B+' (one notch above the 'B' corporate credit rating). S&P revised the recovery rating on this debt to '2' from '3', indicating its expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default. "The outlook revision reflects the potential for an upgrade over the coming 12 months if the company's organic revenue and subscriber base continue to grow, its operating performance remains strong, and its credit measures continue to improve," said Standard & Poor's credit analyst Elton Cerda. Standard & Poor's Ratings Services' corporate credit rating reflect S&P's expectation that Jacksonville, Fla.-based Web.com Group Inc. will generate positive discretionary cash flow and steadily reduce debt, absent a releveraging transaction. S&P expects debt leverage to decline, consistent with its expectation of EBITDA growth, and that Web.com will use positive discretionary cash flow in part to repay debt. S&P assess Web.com's business risk profile as "weak," because of tough competition among Web services providers for small and midsize business marketing spending. S&P views the financial risk profile as "highly leveraged" based on Web.com's high lease-adjusted debt to EBITDA in the mid-7x area on a GAAP basis, consistent with the indicative ratio of 5x or greater that S&P associates with a highly leveraged financial risk profile, based on its criteria. In S&P's assessment, the management and governance score for the company is "fair". "Our positive rating outlook reflects our view that Web.com Group Inc. should generate positive discretionary cash flow and gradually reduce its GAAP leverage to the mid-6x or lower area in 2014, without a releveraging transaction. Any upgrade would likely entail an improvement in the EBITDA margin as a result of market share gains in businesses other than domain name registration, and further upselling and cross-selling activity while maintaining consistent positive discretionary cash flow. Additional elements of an upgrade scenario likely would be the ratio of discretionary cash flow to debt approaching the midteens area on a sustained basis. We could revise our outlook to stable if Web.com encounters tougher price competition or if market share losses begin, possibly as a result of increased competition, causing discretionary cash flow to go below $50 million and leverage to trend higher," S&P noted. WEST AIRPORT: Gets Final OK to Hire James Schwitalla as Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida approved, on a final basis, James Schwitalla, Esq., at Law Offices of James Schwitalia, as the Debtor's general counsel. Headquartered in Miami, Florida, West Airport Palms Business Park, LLC, filed for Chapter 11 (Bankr. S.D. Fla. Case No. 13-25728) on July 2, 2013. Judge Robert A. Mark presides over the case. James Schwitalla, Esq., represents the Debtor as counsel. In its petition, the Debtor scheduled assets of $14,440,419 and liabilities of $9,284,422. The petition was signed by Alexander Montero, managing member. WEST AIRPORT: Obtains Final OK for Luis Perez as Accountant ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida approved, on a final basis, the employment of Luis Perez and BPA Accounting Services, Inc., as its accountant, nunc pro tunc to the Petition Date. Headquartered in Miami, Florida, West Airport Palms Business Park, LLC, filed for Chapter 11 (Bankr. S.D. Fla. Case No. 13-25728) on July 2, 2013. Judge Robert A. Mark presides over the case. James Schwitalla, Esq., represents the Debtor as counsel. In its petition, the Debtor scheduled assets of $14,440,419 and liabilities of $9,284,422. The petition was signed by Alexander Montero, managing member. WESTERN CAPITAL: Seeks Extension of Plan Filing Until Dec. 6 ------------------------------------------------------------ Western Capital Partners LLC asks the Bankruptcy Court to extend its deadline to exclusively file a plan of reorganization through Dec. 6, 2013. The Debtor also requests that the Court extend the period within which to solicit acceptances of that Plan for an additional 120 days. The Debtor alleges that an extension of 120 days of the exclusive period will not unduly delay the administration of its Chapter 11 bankruptcy proceeding. Indeed, the Debtor maintains, the extension will assist it in its efforts to reorganize under Chapter 11 of the Bankruptcy Code and with respect to its ongoing business operations. Prior to the Petition Date, the Debtor pursued recovery of guarantees made by Edra Blixseth in connection with one of its largest loans. This process ultimately entangled the Debtor in currently ongoing bankrutpcy proceedings in Montana related to a large project commonly known as the Yellowstone Club. In addition, the Debtor is involved in a litigation in Chicago involving a foreclosure proceeding as well as an appeal before the 7th Circuit Court of Appeals. The Debtor asserts the requested extension is necessary in order to allow it to continue to pursue its litigation matters and to assess the impact of that litigation on its proposed Plan. Since the Petition Date, the Debtor has likewise been involved in numerous employee issues which has subsumed a great deal of time and effort on the Debtor's part. Western Capital Partners LLC filed a bare-bones Chapter 11 petition (Bankr. D. Col. Case No. 13-15760) in Denver on April 10, 2013. The Englewood-based company estimated assets and debt of $10 million to $50 million. Judge Michael E. Romero presides over the case. The Debtor is represented by Jeffrey A. Weinman, Esq., at Weinman & Associates, P.C. WESTERN CAPITAL: Limits Hatch Ray's Services to Three Matters ------------------------------------------------------------- Western Capital Partners LLC sought and obtained approval from the Bankruptcy Court of an amended application to employ Hatch Ray Olsen Sandberg LLC as its special counsel. Hatch Ray's representation is limited in three matters on which it has long represented the Debtor, to wit: the Sandoval Matter; (b) the Samson Appeal and any remand proceedings; and (c) the CTI Appeal and any remand proceedings. The Sandoval Matter Through one of the foreclosures, the Debtor obtained Edra D. Blixseth's interest in a contract made in favor of Blixseth by an individual named Michael Sandoval and his related entities. As Blixseth's successor-in-interest, the Debtor sought enforcement of the contract and anticipated receiving a judgement against Sandoval in excess of $10 million. Hatch Ray continues to be counsel of record in that Adversary Proceeding in the Montana Court (Adv. No.09-105). The Samson Appeal and Any Remand Proceedings After his challenge to the Debtor's foreclosures was rejected due to his failure to comply with Section 362(h), disputed creditor Richard J. Samson, trustee for the Estate of Edra D. Blixseth, initiated an adversary proceeding in the Montana Court claiming that Blixseth's guaranty of the Story Mill Loan constituted fraudulent transfer. On March 18, 2013, the Montana Court entered judgment in favor of Mr. Samson and against the Debtor. Hatch Ray has already filed a notice of appeal on behalf of the Debtor. The CTI Appeal Hatch Ray's representation of the Debtor in connection with collection efforts and loan workouts has included a matter involving borrowers in Chicago, Illinois, area. The loan was made in 2005 and has been in default since 2007. As part of its collection efforts, the Debtor has retained Schiff Hardin LLP to foreclose a mortgage and defend claims asserted by the so-called Ridgeland Parties, who dispute the enforceability of the mortgage and claim equity interest in the subject real estate. In connection with the Foreclosure Action, the Debtor submitted a claim to its title insurer, Chicago Title Insurance Company. CTI initially refused to defend the Debtor in full, prompting coverage dispute litigation in the United States District Court for the Northern District of Illinois. On June 10, 2012, Hatch Ray obtained a favorable ruling on summary judgment in that case. The ruling subsequently formed the basis for a judgment in the Debtor's favor in approximate amount of $706,000. CTI has appealed to the United State Court of Appeals, Seventh Circuit. About Western Capital Western Capital Partners LLC filed a bare-bones Chapter 11 petition (Bankr. D. Col. Case No. 13-15760) in Denver on April 10, 2013. The Englewood-based company estimated assets and debt of $10 million to $50 million. Judge Michael E. Romero presides over the case. The Debtor is represented by Jeffrey A. Weinman, Esq., at Weinman & Associates, P.C. WESTERN CAPITAL: Court OKs K. Madden as "JRG Dakota" Case Counsel ----------------------------------------------------------------- Western Capital Partners LLC sought and obtained the Bankruptcy Court's permission to employ Kevin Madden and the Law offices of Kevin Michael Madden, PLLC, as its special counsel. Mr. Madden will represent the Debtor in connection with pending litigation in 26th Judicial District Court of Williamson County, Texas, Case No. 10-088-C26, styled as Western Capital Partners LLC v. JRG Dakota LLC, Jetco Retail Group, L.P., Jetco Development Group and Joseph E. Thompson. Mr. Madden's standard and customary hourly billing rate is $250 per hour. Other attorneys of the firm that may be working on this matter have a billing rate of $200 per hour. The paralegal rate is $150 per hour. Western Capital Partners LLC filed a bare-bones Chapter 11 petition (Bankr. D. Col. Case No. 13-15760) in Denver on April 10, 2013. The Englewood-based company estimated assets and debt of $10 million to $50 million. Judge Michael E. Romero presides over the case. The Debtor is represented by Jeffrey A. Weinman, Esq., at Weinman & Associates, P.C. WESTERN CAPITAL: Taps K. Strauss as Counsel in Foreclosure Case --------------------------------------------------------------- Western Capital Partners LLC seeks the Bankruptcy Court's permission to employ Strauss & Malk LLP, 135 Revere Drive, Northbrook, IL, as its special counsel. Strauss & Malk will represent the Debtor in litigation including, but not limited to, currently pending foreclosure case in the Circuit Court of Cook County, Illinois. The firm had a pre-petition claim for $1,500, which it has agreed to waive. Western Capital Partners LLC filed a bare-bones Chapter 11 petition (Bankr. D. Col. Case No. 13-15760) in Denver on April 10, 2013. The Englewood-based company estimated assets and debt of $10 million to $50 million. Judge Michael E. Romero presides over the case. The Debtor is represented by Jeffrey A. Weinman, Esq., at Weinman & Associates, P.C. WOUND MANAGEMENT: Incurs $32,000 Net Loss in Second Quarter ----------------------------------------------------------- Wound Management Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $32,336 on $415,693 of revenues for the three months ended June 30, 2013, as compared with a net loss of $29,650 on $269,813 of revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company incurred a net loss of $974,601 on $790,417 of revenues, as compared with net income of $257,855 on $373,946 of revenues for the same period a year ago. Wound Management disclosed a net loss of $1.84 million on $1.17 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $12.74 million on $2.21 million of revenue during the prior year. The Company's balance sheet at June 30, 2013, showed $1.37 million in total assets, $5.45 million in total liabilities and a $4.07 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/xqrx2I About Wound Management Fort Worth, Texas-based Wound Management Technologies, Inc., markets and sells the patented CellerateRX(R) product in the expanding advanced wound care market; particularly with respect to diabetic wound applications. Pritchett, Siler & Hardy, P.C., in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred substantial losses and has a working capital deficit which factors raise substantial doubt about the ability of the Company to continue as a going concern. * 6th Circ. Says Rejection of Ch. 11 Plan Isn't Final Order ----------------------------------------------------------- Law360 reported that in a growing circuit split, the Sixth Circuit ruled that circuit courts do not have jurisdiction to review a district court's rejection of a reorganization plan because it is not a final judgment. According to the report, the precedent-setting opinion sides with four circuits but opposes three others in its interpretation of "final judgments, orders and decrees," the language Congress used to define the types of lower court actions that are reviewable. The three-judge panel ruled that a district court's rejection of a plan lacks finality, the report related. * Fed Given Week by Judge to Respond on New Swipe-Fee Rules ----------------------------------------------------------- Tom Schoenberg, writing for Bloomberg News, reported that the U.S. Federal Reserve was given a week to tell a federal judge its position on immediately rewriting regulations setting debit card swipe fees in the wake of a court found the current rule unlawful. According to the report, U.S. District Judge Richard Leon in Washington on Aug. 15 ordered Fed General Counsel Scott Alvarez to appear in his courtroom on Aug. 21 after a lawyer for the Fed said it hadn't made any decisions on how to replace the current rule, or whether to appeal the judge's ruling. "They've had their briefings," Leon said. "They know what the state of play is. It's time to make decisions." Earlier in the hearing, Leon laid out a timeline that would put a final interim rule in place by the end of the month. An interim final rule takes effect immediately before any public comments are accepted. The hearing comes two weeks after retailers battling banks over debit-card transaction costs were handed a victory by Leon in Washington, who said merchants were overcharged billions of dollars under an unlawful swipe fee set by the Fed. * U.S. Judges Urge Congress to Give Courts More Money ----------------------------------------------------- Mark Sherman, writing for the Associated Press, reported that top federal judges in 49 states are urging lawmakers to avoid another round of automatic spending cuts that would have a "devastating and long-lasting impact" on the federal courts. According to the report, it's an unusual letter from the chief judges of trial courts in every state but Nevada. It says that the $350 million reduction in the judiciary's budget for the current year has dramatically slowed court proceedings and put public safety at risk. The judges say there are fewer probation and other law enforcement officers to deal with record numbers of convicts who have been released from prison or given alternative sentences. The letter was sent last week to congressional leaders in both parties in the House and Senate, the report related. Congress is not in session in August. "We had to let people know that we've cut so far past the fat and so far past the muscle that we're into the bone," Chief Judge Loretta Preska of the U.S. District Court in Manhattan said in an interview with AP. Preska, an appointee of President George H.W. Bush, helped organize support for the letter. A second year under the automatic spending cuts known as sequestration "will have a devastating and long-lasting impact on the administration of justice in this country," the judges said, the report further related. * NYC Gets Nod From State to Address Hospital Crisis ---------------------------------------------------- Law360 reported that as New York City faces high-profile hospital closures and bankruptcies, the City Council said that state officials have joined an effort to address the "loss of critical hospital services" even as top officials press for an infusion of up to $10 billion from Medicaid. According to the report, City Council Speaker Christine C. Quinn said she had secured agreement from New York State Health Commissioner Dr. Nirav R. Shah to have the New York State Department of Health participate in the effort. * Hill Wallack Accused of Forcing Client Into Bad Settlement ------------------------------------------------------------ Law360 reported that New Jersey law firm Hill Wallack LLP has been hit with a legal malpractice suit brought by a former client who says he was forced to accept a low-ball settlement from an ex- business partner, then couldn't collect it after the defendant filed for bankruptcy. According to the report, William Torre of Princeton, N.J., sued Hill Wallack and two of its attorneys, Eric Abraham and Todd Greene, on Aug. 7. Abraham and Greene represented Torre in a civil suit against Torre's onetime business partner Douglas Huhn, the report related. * Ex-Taylor English Atty Admits to Ripping Off Clients ------------------------------------------------------ Law360 reported that a former Taylor English Duma LLP attorney pled guilty in Georgia federal court to charges of defrauding his one-time employer and a group of real estate clients in a bankruptcy suit of $300,000. According to the report, Thomas W. Dickson admitted to scheming to wire the funds, which had been held in trust by the firm for a group of tenancy-in-common investors that he was representing, to a personal bank checking account held by Dickson and his wife. He faces a criminal charge of wire fraud, the report said. * JPMorgan Said to Expect Multiple Fines for Whale Loss ------------------------------------------------------- Dawn Kopecki, Dave Michaels & Keri Geiger, writing for Bloomberg News, reported that JPMorgan Chase & Co. expects to be fined by authorities in the U.S. and U.K. over last year's $6.2 billion trading loss, which led to criminal charges against two former employees, said a person familiar with the matter. According to the report, the Securities and Exchange Commission signaled in a complaint filed on Aug. 14 against Javier Martin- Artajo, 49, and Julien Grout, 35, that the New York-based bank will be held accountable for providing inaccurate information to investors after the two men "fraudulently" mismarked their trades to conceal losses. "JPMorgan failed to furnish to the commission, in accordance with the rules and regulations prescribed by the commission, such financial reports as the commission has prescribed," the SEC wrote in its complaint, the report related. SEC spokesman John Nester didn't return a call seeking comment. The bank also expects to be fined by the Department of Justice, the Commodity Futures Trading Commission and the U.K.'s Financial Conduct Authority, said the person, who asked not to be named because the discussions are private, the report further related. JPMorgan Chief Executive Officer Jamie Dimon, 57, said in his April letter to shareholders that the bank was facing more sanctions related to the losses, the report added. Bruno Iksil, the Frenchman dubbed the "London Whale" because his trading portfolio grew so large, is cooperating with the U.S. government. * Obama to Meet with Regulators over Wall Street Reforms -------------------------------------------------------- Sarah N. Lynch, writing for Reuters, reported that President Barack Obama will sit down on Monday with the leading U.S. financial market regulators to discuss their progress in implementing the 2010 Wall Street reform law, the White House said. According to the report, The Dodd-Frank law was passed by the then-Democratic-controlled Congress with Obama's support as a response to the 2007-2009 financial crisis. It aims to prevent large, complex financial firms from imperiling markets should they collapse. It imposed new rules for over-the-counter derivatives, required banks to hold more capital, established a new federal agency charged with protecting consumers from predatory lending and laid out a series of reforms targeting numerous other financial firms, such as hedge funds and private equity funds, the report related. The White House said it expects the heads of the Securities and Exchange Commission, Commodity Futures Trading Commission, Consumer Financial Protection Bureau, U.S. Federal Reserve, Office of the Comptroller of the Currency, Federal Deposit Insurance Corp, Federal Housing Finance Agency and the National Credit Union Administration to attend the meeting, the report related. Treasury Secretary Jack Lew will also participate, the Treasury Department said, the report added. * SEC Approves $8-Billion Sale of NYSE Parent to ICE ---------------------------------------------------- Marcy Gordon, writing for the Associated Press, reported that U.S. regulators have approved the proposed $8 billion sale of the venerable New York Stock Exchange to a much younger futures exchange. The deal is a symbol of how financial markets are being increasingly reshaped by high technology. According to the report, the Securities and Exchange Commission disclosed that it authorized the takeover of the two-centuries-old NYSE's parent by Atlanta-based IntercontinentalExchange, or ICE. The rival acquiring company, founded in 2000, has expanded rapidly through acquisitions over the past decade. The SEC said in a filing that it determined that the merger of the exchanges would comply with securities laws and regulations, the report related. The merger also must be approved by regulators in Europe, the report said. The NYSE's parent is NYSE Euronext, which includes stock exchanges in Europe. The European Commission, the executive body of the 28-nation European Union, gave its approval in June. The deal is expected to close in the fall, the report further related. * Falcone and Harbinger Agree to Settlement With SEC ---------------------------------------------------- The Securities and Exchange Commission said New York-based hedge fund adviser Philip A. Falcone and his advisory firm Harbinger Capital Partners have agreed to a settlement in which they must pay more than $18 million and admit wrongdoing. Falcone also agreed to be barred from the securities industry for at least five years. The SEC filed enforcement actions in June 2012 alleging that Falcone improperly used $113 million in fund assets to pay his personal taxes, secretly favored certain customer redemption requests at the expense of other investors, and conducted an improper "short squeeze" in bonds issued by a Canadian manufacturing company. In the settlement papers filed in court today, Falcone and Harbinger admit to multiple acts of misconduct that harmed investors and interfered with the normal functioning of the securities markets. "Falcone and Harbinger engaged in serious misconduct that harmed investors, and their admissions leave no doubt that they violated the federal securities laws," said Andrew Ceresney, Co-Director of the SEC's Division of Enforcement. "Falcone must now pay a heavy price for his misconduct by surrendering millions of dollars and being barred from the hedge fund industry." The settlement, which must be approved by the U.S. District Court for the Southern District of New York, requires Falcone to pay $6,507,574 in disgorgement, $1,013,140 in prejudgment interest, and a $4 million penalty. The Harbinger entities are required to pay a $6.5 million penalty. Falcone has consented to the entry of a judgment barring him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization with a right to reapply after five years. The bar will allow him to assist with the liquidation of his hedge funds under the supervision of an independent monitor. Among the set of facts that Falcone and Harbinger admitted to in settlement papers filed with the court: Falcone improperly borrowed $113.2 million from the Harbinger Capital Partners Special Situations Fund (SSF) at an interest rate less than SSF was paying to borrow money, to pay his personal tax obligation, at a time when Falcone had barred other SSF investors from making redemptions, and did not disclose the loan to investors for approximately five months. Falcone and Harbinger granted favorable redemption and liquidity terms to certain large investors in HCP Fund I, and did not disclose certain of these arrangements to the fund's board of directors and the other fund investors. During the summer of 2006, Falcone heard rumors that a Financial Services Firm was shorting the bonds of the Canadian manufacturer, and encouraging its customers to do the same. In September and October 2006, Falcone retaliated against the Financial Services Firm for shorting the bonds by causing the Harbinger funds to purchase all of the remaining outstanding bonds in the open market. Falcone and the other Defendants then demanded that the Financial Services Firm settle its outstanding transactions in the bonds and deliver the bonds that it owed. Defendants did not disclose at the time that it would be virtually impossible for the Financial Services Firm to acquire any bonds to deliver, as nearly the entire supply was locked up in the Harbinger funds' custodial account and the Harbinger funds were not offering them for sale. Due to Falcone's and the other Defendants' improper interference with the normal interplay of supply and demand in the bonds, the bonds more than doubled in price during this period. The SEC's investigation was conducted by Conway T. Dodge, Jr., Robert C. Besse, Ken C. Joseph, Mark Salzberg, Brian Fitzpatrick, and David Stoelting. The SEC's litigation was handled by Mr. Stoelting, Mr. Besse, Mr. Salzberg, Kevin McGrath, David J. Gottesman, and Bridget Fitzpatrick. * Justice Dept. Wants Ruling Ordering Bernanke to Testify Tossed ---------------------------------------------------------------- Victoria McGrane and Leslie Scism, writing for The Wall Street Journal, reported that the Justice Department asked a federal appeals court to throw out a ruling directing Federal Reserve Chairman Ben Bernanke to testify under oath about the government's 2008 decision to bail out American International Group Inc. According to the report, the government asked the U.S. Court of Appeals for the Federal Circuit to overturn a July decision by U.S. Court of Federal Claims Judge Thomas C. Wheeler that Mr. Bernanke submit to a deposition in the case, which is being brought by Starr International Co., run by former AIG Chief Executive Maurice "Hank" Greenberg. Judge Wheeler ruled that Mr. Bernanke's close involvement in the decision to bail out AIG at the height of the financial crisis warranted his testimony and made it unlikely other officials could provide the same information, the report said. The department challenged that finding in its appeal, arguing that neither Judge Wheeler nor Starr have shown that other sources would not suffice. "The trial court identified no extraordinary circumstances that would justify requiring Chairman Bernanke to set aside his public responsibilities and appear for a deposition in this litigation," Justice said, the report related. Lawyers for Starr failed to prove "why any conceivably relevant information could not be obtained from other sources," the Justice Department argued, the report further related. The plaintiff has already obtained testimony from other Fed witnesses, including Fed general counsel Scott Alvarez, as well as U.S. Treasury and New York Fed officials, Justice said. The plaintiff's lawyers are also scheduled to depose former Fed Vice Chairman Donald Kohn, "who, like Chairman Bernanke, participated in the Board vote to approve the AIG rescue loan," Justice said. * Fed Says It Will Collect $440 Million in Fees from Banks ---------------------------------------------------------- The Associated Press reported that the Federal Reserve says it expects to collect $440 million in fees from 70 big banks and other financial firms to help cover its costs of supervising them. According to the report, the Fed provided the estimate in announcing it had completed a rule providing for the annual fees. The fees are intended to help defray the costs of expanded regulation, which the Fed gained under the 2010 financial overhaul law. The payments for 2012 are due by Dec. 15, the Fed says, the report related. They apply to the largest banks with operations in the United States and nonbank financial firms that have been deemed as potentially threatening the stability of the financial system. Regulators last month classified the American International Group and GE Capital as falling into that category. * Reno-Sparks Metro Foreclosure Activity Plunges 33% in July 2013 ----------------------------------------------------------------- RealtyTrac(R) on Aug. 16 released a July 2013 Foreclosure Market Report(TM) for the Reno-Sparks metropolitan statistical area, which shows foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 110 properties in July in the metro area, a decrease of 33 percent from June 2013 and down 69 percent from July 2012. The decrease in Reno-Sparks overall foreclosure activity was driven by a sharp drop in Notices of Default (NOD) and scheduled foreclosure auctions (NTS). Notices of Default dropped 46 percent from June to July, with only 13 NODs in the metro area during the month -- down 93 percent from July 2012. July was the second straight month where NODs decreased annually following six straight months where NODs were rebounding annually. "New state legislation has slowed down the foreclosure process in Nevada once again," said Craig King, chief operating officer of Reno-based real estate brokerage Chase International. "Attorneys, Realtors, buyers, lenders, title companies and others are sorting through the new laws, which could take some time to decipher. "We're well past the worst of the foreclosure crisis in Reno, but the rapidly changing laws are making it more difficult to clear out the distressed properties that are still hanging around," Mr. King continued. "The irony is that now would be a great time to sell those distressed properties given the low inventory of homes for sale now available." Mr. King said the decrease in July foreclosure activity was largely due to the changes made to the foreclosure process by two conflicting pieces of legislation recently passed by the state legislature and signed into law by the governor. One piece of legislation, Assembly Bill 300, was written to ease up some of the requirements put on foreclosing lenders by another state law passed back in October 2011, AB 284. AB 300 modified the strict documentation standards of AB 284 by clarifying the language and changing documentation requirements. The other piece of legislation SB 321 -- known as the "Homeowner Bill of Rights -- makes it more difficult for banks to foreclose in Nevada and will go into effect Oct. 1. This legislation outlaws the practice of dual-tracking -- where a lender simultaneously pursues foreclosure and a foreclosure alternative such as loan modification -- and requires lenders to provide homeowners facing foreclosure with a single point of contact. In addition, SB 321 requires lenders to send homeowners facing foreclosure a notice with information about foreclosure alternatives at least 30 days before filing a Notice of Default. He added that the market still has several years to clear out the huge number of Nevada mortgages that are underwater, where borrowers owe more on the mortgage than the property is worth. He said strong demand and a decline in inventory combined to create double-digit price appreciation in the Northern Nevada. "Clearly, the Reno-Sparks housing market is improving," added Mr. King. "Sales prices are up, land values are rising and new home construction is growing. I'm very optimistic about the local residential real estate market." Falling foreclosure activity in July pushed the foreclosure rate in the Reno-Sparks metro area below the national average and to the 141st ranking out of the 209 metro areas with a population of 200,000 or more. One in every 1,686 Reno-Sparks housing units had a foreclosure filing in July, compared to the national average of one in 1,001 housing units. Nevada's housing market is on a rebound, said Mr. King. Statewide foreclosure activity declined 44 percent year-over-year in July, with one in every 731 housing units receiving a foreclosure notice. The state ranked seventh highest nationwide in foreclosure rate. Report methodology The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month -- broken out by type of filing. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac's report incorporates documents filed in all three phases of foreclosure: Default - Notice of Default (NOD) and Lis Pendens (LIS); Auction - Notice of Trustee's Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). The report does not count a property again if it receives the same type of foreclosure filing multiple times within the estimated foreclosure timeframe for the state where the property is located. About RealtyTrac Inc. RealtyTrac -- http://www.realtytrac.com-- is a supplier of U.S. real estate data, with more than 1.5 million active default, foreclosure auction and bank-owned properties, and more than 1 million active for-sale listings on its website, which also provides essential housing information for more than 100 million homes nationwide. This information includes property characteristics, tax assessor records, bankruptcy status and sales history, along with 20 categories of key housing-related facts provided by RealtyTrac's wholly-owned subsidiary, Homefacts(R). RealtyTrac's foreclosure reports and other housing data are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate. * Roetzel's Bruce Schrader Named Bankruptcy Lawyer of the Year -------------------------------------------------------------- Roetzel Roetzel on Aug. 15 disclosed that five of its Ohio attorneys, Susan S. Box, Steven Cox, Edward C. Hertenstein, Brian J. Moore and Bruce R. Schrader II, have been named a Best Lawyers(R) 2014 "Lawyer of the Year." Only one lawyer in each practice area from each of the major metropolitan areas in Ohio is honored as "Lawyer of the Year." Best Lawyers compiles its lists of outstanding attorneys by conducting thousands of confidential peer-review surveys. Lawyers honored as "Lawyers of the Year" have received particularly high ratings by earning a high level of respect among their peers for their abilities, professionalism and integrity. Ms. Box, named the Best Lawyers 2014 Akron Product Liability Litigation - Defendants "Lawyer of the Year," is a Partner in Roetzel's Products & Toxic Tort Practice Group. She focuses her practice on product liability defense and regularly represents local, regional and national clients on matters involving asbestos litigation, toxic tort litigation and other general product liability matters. Ms. Box has a long list of accomplishments in addition to being named "Lawyer of the Year." She is rated an AV(R) Preeminent(TM) lawyer by Martindale-Hubbell Law Directory, is named to The Best Lawyers in America(C) for Mass Tort Litigation/Class Actions - Defendants and Product Liability Litigation - Defendants (2009-2014) and has been selected as an "Ohio Super Lawyer" by Ohio Super Lawyers magazine (2010-2013). In addition, she is noted as both one of the "Top 50 Female Lawyers in Ohio" and as one of the "Top 25 Female Lawyers in Cleveland" by Ohio Super Lawyers magazine (2013). Mr. Cox, a Partner in the firm's Akron office, has been named the 2014 Akron "Lawyer of the Year" for Litigation - Trusts & Estates. He focuses his practice on estate planning, probate matters, estate and trust administration, family business succession planning, business and tax matters, and charitable planning/nonprofit organizations. Mr. Cox represents individual clients, including business owners and executives, and business entities in a wide range of estate, tax, and succession planning matters. He has been named a Best Lawyer for Trusts & Estates work every year since 2007 and for Litigation - Trusts & Estates since 2012. Mr. Hertenstein is a Partner in the firm's Columbus office and has been named the 2014 Columbus "Lawyer of the Year" for Tax Law. His practice focuses on a variety of business and taxation issues, including succession planning, trust, LLC and partnership strategies, value-based planning, leveraged wealth transfer planning, and charitable planning. His clients include executives of public companies, closely held and emerging businesses, individuals and family councils, and charitable entities. Mr. Hertenstein is certified as a Specialist in Federal Taxation by the Ohio State Bar Association. In addition to his selection as a Best Lawyers 2014 "Lawyer of the Year for Tax Law," Mr. Hertenstein was chosen as Best Lawyers 2011 "Lawyer of the Year for Trusts and Estates," has been chosen as an "Ohio Super Lawyer" by Ohio Super Lawyers magazine (2004-2013), and has been named to The Best Lawyers in America(C) for Tax Law, and Trusts and Estates (1995-2014). Further, he holds an AV(R) Preeminent(TM) rating from the Martindale-Hubbell Law Directory. Mr. Moore is a Partner and Practice Group Manager for Real Estate, Banking & Finance. He is named as the Akron Real Estate Law "Lawyer of the Year" for 2014. Mr. Moore was previously named as the Akron "Lawyer of the Year" for Real Estate Law in 2009 and in Banking and Finance Law in 2012. Mr. Moore focuses his practice on real estate, land use, construction law and financial services, including conveyancing, development, land use, zoning, eminent domain, construction documents, leasing, finance and loan documentation. He has represented various key parties in a number of high profile real estate transactions. In addition to his real estate skills, Mr. Moore has extensive experience in drafting and negotiating loan documentation as counsel to lenders and borrowers. In addition to being named "Lawyer of the Year," Mr. Moore has been selected as an "Ohio Super Lawyer" by Ohio Super Lawyers magazine (2004-2013) and carries an AV(R) Preeminent(TM) rating from Martindale-Hubbell Law Directory. Mr. Schrader is a partner in the firm's Akron office and has been named the Best Lawyers 2014 Akron Litigation - Bankruptcy "Lawyer of the Year." He focuses his practice in the areas of banking, financial services, commercial litigation and bankruptcy matters. Mr. Schrader has extensive experience in bankruptcy and reorganization proceedings. His clients include financial institutions, creditors, receivers and trustees. Mr. Schrader has been selected as an "Ohio Super Lawyer" by Ohio Super Lawyers magazine (2012 & 2013) and has been included as one of The Best Lawyers in America(C) for Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law (2010-2014) and Litigation - Bankruptcy (2014). He holds an AV(R) Preeminent(TM) rating from Martindale-Hubbell Law Directory. About Best Lawyers Since it was first published in 1983, Best Lawyers(R) has become universally regarded as the definitive guide to legal excellence. Because Best Lawyers is based on an exhaustive peer-review survey in which almost 50,000 leading attorneys cast nearly five million votes on the legal abilities of other lawyers in their practice areas, and because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers is considered a singular honor. (The Best Lawyers in America(C) 2014. Copyright 2013 by Woodward/White, Inc., of Aiken, SC). For more information, visit bestlawyers.com. About Roetzel Roetzel Roetzel Roetzel -- http://ralaw.com-- is a full-service law firm that provides comprehensive, integrated legal counsel to national and international clients. * U.S. Foreclosure Activity Up 2% in July, RealtyTrac Data Show --------------------------------------------------------------- RealtyTrac(R), a source for comprehensive housing data, on Aug. 15 released its U.S. Foreclosure Market Report(TM) for July 2013, which shows foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 130,888 U.S. properties in July, an increase of 2 percent from the 78-month low in June but still down 32 percent from July 2012. The report also shows one in every 1,001 U.S. housing units with a foreclosure filing during the month. High-level findings from the report: -- The monthly increase in U.S. foreclosure activity was driven by a 6 percent monthly increase in foreclosure starts and a 4 percent monthly increase in bank repossessions (REO), although both metrics decreased from a year ago. -- Foreclosure starts increased from the previous month in 26 states and were up from a year ago in 15 states, including Maryland (up 275 percent), Oregon (up 137 percent), New Jersey (up 89 percent), Connecticut (up 37 percent), and New York (up 27 percent). -- Bank repossessions increased from the previous month in 29 states and were up from a year ago in 18 states, including Arkansas (up 266 percent), Oklahoma (up 126 percent), Maryland (up 101 percent), New York (up 100 percent), Connecticut (up 67 percent), New Jersey (up 40 percent), and Ohio (up 20 percent). -- The top six state foreclosure rates in July were in states with a judicial foreclosure process, although two of those top six states posted decreasing foreclosure activity from a year ago: Ohio (down 18 percent) and Illinois (down 44 percent). -- Arizona's foreclosure rate dropped out of the top 10 highest for the first time since February 2007, joining California's foreclosure rate, which was out of the top 10 for the sixth consecutive month in July, and Michigan's foreclosure rate, which was out of the top 10 for the fifth consecutive month in July. -- Nine of the nation's 10 highest metro foreclosure rates in July were in Florida cities, and five of those nine Florida cities posted increasing foreclosure activity from a year ago. -- Among the nation's 20 largest metropolitan statistical areas, 10 posted increasing foreclosure activity from the previous month and five posted increasing foreclosure activity from a year ago: Baltimore (up 182 percent), Miami (up 58 percent), New York (up 42 percent), Philadelphia (up 11 percent), and Washington, D.C. (up 5 percent). "While foreclosures are continuing to boil over in a select group of markets where state legislation and court rulings kept a lid on foreclosure activity during the worst of the housing crisis, the foreclosure boil-over markets are becoming fewer and farther between as lenders have caught up with the backlog of delayed foreclosures in some of the states with the more lengthy judicial foreclosure process," said Daren Blomquist, vice president of RealtyTrac. "For example, Illinois foreclosure activity has now decreased on a year-over-year basis for eight consecutive months following 11 straight months of annual increases, and Ohio has seen three consecutive months with annual decreases following eight straight months with annual increases. "U.S. foreclosure activity in July is 64 percent below the peak of more than 367,000 properties with foreclosure filings in March 2010, but is still 54 percent above the historical average of 85,000 properties with foreclosure filings per month before the housing bubble burst in late 2006," Blomquist continued. "There are a dozen states, however, where foreclosure activity levels in July were at or below average monthly levels prior to the bubble bursting. Those states include Texas, Colorado, Oklahoma, Indiana and Michigan, and we expect the number of states in this category to increase in the coming months." Local broker quotes from the RealtyTrac Network -- "We continue to see positive signs of growth in the Oklahoma housing market. There are more investors looking to buy REOs in the Oklahoma City and Tulsa markets than we've ever seen," said Sheldon Detrick, CEO of Prudential Detrick Realty/Prudential Alliance Realty in Tulsa and Oklahoma City, Okla. "The supply of available REO properties is nowhere near the level of demand, so it's becoming common place to receive multiple offers and to sell REOs over the listing price." -- "More and more homes are now coming on the market from non-distressed homeowners thanks to the snap back in pricing that homeowners have experienced over the past 12 months or so," said Rich Cosner, CEO of Prudential California Realty, covering Orange, Riverside and San Bernardino counties in Southern California. "Because these prices moved up in favor of the homeowners, more and more people are now putting their home on the market and over time this will relieve the dire inventory shortage." Florida, Maryland, Ohio post top state foreclosure rates Florida posted the nation's highest state foreclosure rate for the third consecutive month in July: one in every 328 housing units with a foreclosure filing during the month -- more than three times the national average. Florida foreclosure activity increased 8 percent from the previous month and was up 7 percent from a year ago. Florida foreclosure activity has increased on an annual basis in 16 of the last 19 months. Florida foreclosure starts decreased 28 percent from a year ago -- the fifth consecutive month with an annual decrease in foreclosure starts -- but scheduled foreclosure auctions increased 74 percent from a year ago and bank repossessions increased 13 percent from a year ago. Maryland documented the nation's second highest state foreclosure rate in July -- the highest foreclosure rate ranking for the state since RealtyTrac began issuing its report in January 2005. A total of 3,962 Maryland properties had foreclosure filings during the month, an increase of 148 percent from a year ago and one in every 598 housing units. Maryland foreclosure starts increased 275 percent annually while scheduled auctions were up 96 percent and bank repossessions were up 101 percent during the same time period. Including July, overall foreclosure activity in Maryland has increased annually for 13 consecutive months. Despite an 18 percent year-over-year decrease in foreclosure activity in July, Ohio posted the nation's third highest state foreclosure rate for the month: one in every 639 housing units with a foreclosure filing. Including July, Ohio foreclosure activity has decreased annually for three consecutive months after hitting a 33-month high in April. A 33 percent monthly increase in foreclosure activity in July helped boost Connecticut's foreclosure rate to fourth highest nationwide -- the highest ranking for the state since it was at No. 2 in April 2007. A total of 2,247 Connecticut properties had a foreclosure filing during the month, one in every 660 housing units and a 46 percent increase from July 2012 -- the sixth consecutive month with an annual increase in foreclosure activity. Other states with foreclosure rates ranking among the 10 highest nationwide were New Mexico (one in every 678 housing units with a foreclosure filing), Illinois (one in every 682 housing units), Nevada (one in every 731 housing units), Georgia (one in every 742 housing units), South Carolina (one in every 785 housing units), and Utah (one in every 824 housing units). Top metro foreclosure rates dominated by Florida cities With one in every 230 housing units with a foreclosure filing in July, Jacksonville, Fla., posted the nation's highest foreclosure rate among metropolitan statistical areas with a population of 200,000 or more. Foreclosure activity in the Jacksonville metro area increased 19 percent from the previous month and was up 24 percent from a year ago -- the ninth consecutive month where the metro has reported an annual increase in foreclosure activity. Eight other Florida cities posted foreclosure rates among the top 10 highest nationwide: Miami-Fort Lauderdale-Pompano Beach at No. 2 (one in every 250 housing units with a foreclosure filing); Port St. Lucie at No. 3 (one in 256 housing units); Ocala at No. 4 (one in every 294 housing units); Palm Bay-Melbourne-Titusville at No. 5 (one in every 296 housing units); Tampa-St. Petersburg- Clearwater at No. 7 (one in 334 housing units); Orlando-Kissimmee at No. 8 (one in 344 housing units); Pensacola-Ferry Pass-Brent at No. 9 (one in every 345 housing units); and Sarasota-Bradenton- Venice at No. 10 (one in 394 housing units). The only metro outside of Florida with a top 10 foreclosure rate was Albuquerque, N.M., at No. 6 with one in every 331 housing units with a foreclosure filing in July. 20 major metro foreclosure trends With one in every 250 housing units with a foreclosure filing, Miami posted the highest foreclosure rate among the nation's 20 largest metropolitan statistical areas by population. Miami was one of 10 markets among the 20 largest to post a month-over-month increase in foreclosure activity and one of five to post a year-over-year increase in foreclosure activity. Report methodology The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month -- broken out by type of filing. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac's report incorporates documents filed in all three phases of foreclosure: Default -- Notice of Default (NOD) and Lis Pendens (LIS); Auction -- Notice of Trustee's Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). The report does not count a property again if it receives the same type of foreclosure filing multiple times within the estimated foreclosure timeframe for the state where the property is located. About RealtyTrac Inc. RealtyTrac -- http://www.realtytrac.com-- is a source of comprehensive housing data, with more than 1.5 million active default, foreclosure auction and bank-owned properties, and more than 1 million active for-sale listings on its website, which also provides essential housing information for more than 100 million homes nationwide. This information includes property characteristics, tax assessor records, bankruptcy status and sales history, along with 20 categories of key housing-related facts provided by RealtyTrac's wholly-owned subsidiary, Homefacts(R). RealtyTrac's foreclosure reports and other housing data are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate. * Manatt Bankruptcy Lawyer Ivan Kallick in 2014 Best Lawyers List ----------------------------------------------------------------- Best Lawyers named 62 Manatt, Phelps & Phillips, LLP, attorneys to its 2014 Best Lawyers in America list. The annual list of leading attorneys is based on a rigorous national peer-review survey involving more than 4 million evaluations. Representing a broad spectrum of 31 practice areas and expertise from six of the firm's offices, Manatt's lawyers on the prestigious list for 2014 include: AlbanyJames W. Lytle Healthcare Law Los Angeles Keith A. Allen-Niesen Real Estate Law Gordon M. Bava Banking and Finance Law Corporate Law Financial Services Regulation Law Michael M. Berger Appellate Practice Eminent Domain and Condemnation Law Charles J. Biederman Entertainment Law - Motion Pictures and Television Entertainment Law - Music T. Hale Boggs III Banking and Finance Law Private Funds / Hedge Funds Law Alan M. Brunswick Employment Law - Management Entertainment Law - Motion Pictures and Television Labor Law - Management Litigation - Labor and Employment Edward G. Burg Eminent Domain and Condemnation Law Craig J. de Recat Commercial Litigation Litigation - Environmental Blase P. Dillingham Corporate Law Peter DuchesneauLitigation - Environmental Gene R. Elerding Banking and Finance Law Financial Services Regulation Law Robert M. Eller Real Estate Law Mick Grasmick Financial Services Regulation Law Timi Anyon Hallem Real Estate Law Chad S. Hummel Commercial Litigation Ivan L. Kallick Litigation - Bankruptcy Barry S. Landsberg Healthcare Law Margaret Levy Insurance Law John F. Libby Criminal Defense: White-Collar Donald W. Meaders Employee Benefits (ERISA) Law Craig A. MoyerEnergy Law Environmental Law L. Lee Phillips Entertainment Law - Music Gregory N. Pimstone Healthcare Law Adam Pines Commercial Litigation William T. Quicksilver Banking and Finance Law Financial Services Regulation Law Harold P. Reichwald Banking and Finance Law Financial Services Regulation Law James R. Schwartz Healthcare Law Non-Profit / Charities Law Benjamin G. Shatz Appellate Practice George M. Soneff Eminent Domain and Condemnation Law Lisa Specht Corporate Law Charles E. Washburn, Jr. Banking and Finance Law Financial Services Regulation Law New York Marcia D. Alazraki Insurance Law Robert D. Belfort Healthcare Law William S. Bernstein Healthcare Law Aydin S. Caginalp Entertainment Law - Music Entertainment Law - Motion Pictures and Television Melinda J. Dutton Healthcare Law Jeffrey S. Edelstein Advertising Law Linda A. Goldstein Advertising Law Commercial Litigation Thomas C. Morrison Advertising Law Peter F. Olberg Corporate Law L. Peter Parcher Entertainment Law - Motion Pictures and Television Entertainment Law - Music Orange CountySteve Edwards Real Estate Law Susan K. Hori Land Use and Zoning Law Real Estate Law Ellen R. Marshall Banking and Finance Law Thomas D. Phelps Banking and Finance Law Financial Services Regulation Law Martin J. Thompson Antitrust Law Healthcare Law San FranciscoJill S. DoddLitigation - Trusts and Estates Non-Profit / Charities Law Tax Law Trusts and Estates Daniel B. Higgins Healthcare Law David L. Huard Energy Law Barry W. Lee Commercial Litigation Alvin T. Levitt Tax Law Jeff C. NguyenNon-Profit / Charities Law Marv Pearlstein Real Estate Law Jordan P. Rose Tax Law Washington, D.C. Kerrie L. Campbell Litigation - First Amendment N. Richard Janis Commercial Litigation Criminal Defense: White- Collar James R. Jones International Trade and Finance Law Kenneth M. Kaufman Copyright Law Entertainment Law - Motion Pictures and Television Entertainment Law - Music Litigation - Intellectual Property John L. Ray Corporate Law Robert H. Shulman Insurance Law Ivan J. Wasserman Advertising Law About Manatt, Phelps & Phillips, LLP Manatt, Phelps & Phillips, LLP -- http://www.manatt.com-- is one of the nation's leading law firms, with offices strategically located in California (Los Angeles, Orange County, Palo Alto, San Francisco and Sacramento), New York (New York City and Albany) and Washington, D.C. The firm represents a sophisticated client base -- including Fortune 500, middle-market and emerging companies -- across a range of practice areas and industry sectors. * Cohen & Grigsby Bankruptcy Lawyers Named to Best Lawyers List --------------------------------------------------------------- Cohen & Grigsby, a business law firm with headquarters in Pittsburgh, PA and an office in Naples, FL, is pleased to announce that 32 of the firm's Pittsburgh-based attorneys have been selected by their peers for inclusion in The Best Lawyers in America? 2014 (Copyright 2013 by Woodward/White, Inc., of Aiken, SC). Attorneys in the following practice areas have been recognized as Best Lawyers: -- Administrative/Regulatory Law: Anthony Cillo -- Banking & Finance Law: James D. Chiafullo -- Bankruptcy & Creditor Debtor Rights/Insolvency & Reorganization Law: William E. Kelleher, Jr. -- Commercial Litigation: Larry K. Elliott, Robert M. Linn, Richard R. Nelson II, Jeffrey P. Ward -- Corporate Law: Christopher B. Carson, James D. Chiafullo, Charles C. Cohen, Jack W. Elliott, David J. Kalson -- Employment Law - Management: Ronald J. Andrykovitch, Robert B. Cottington, Valerie S. Faeth, James R. Haggerty, Robert F. Prorok -- Immigration Law: John S. Brendel, Lawrence M. Lebowitz, Matthew T. Phillips -- International Trade & Finance Law: V. Susanne Cook -- Labor Law - Management: Ronald J. Andrykovitch, Robert B. Cottington, James R. Haggerty, Robert F. Prorok -- Litigation - Bankruptcy: William E. Kelleher, Jr. -- Litigation - Intellectual Property: Robert M. Linn -- Litigation - Labor & Employment: Robert B. Cottington, James R. Haggerty, Robert M. Linn -- Litigation - Land Use & Zoning: Clifford B. Levine -- Litigation - Securities: Richard R. Nelson II -- Litigation - Trusts & Estates: R. Michael Daniel, Christopher F. Farrell, Jeffrey P. Ward -- Mediation: James B. Brown -- Mergers & Acquisitions Law: Jack W. Elliott -- Non-Profit/Charities Law: Christopher F. Farrell -- Public Finance Law: Charles R. Brodbeck -- Real Estate Law: Charles R. Brodbeck, James D. Chiafullo, Blaine Lamperski, Michael H. Syme, William R. Taxay -- Tax Law: Christopher F. Farrell, David J. Kalson -- Technology Law: David J. Kalson -- Trusts & Estates: R. Michael Daniel; Christopher F. Farrell; Samuel J. Goncz; C. Eric Pfeil; Mario Santilli, Jr.; Jonathan M. Schmerling -- Venture Capital Law: David J. Kalson Additionally, several Cohen & Grigsby attorneys have been designated Best Lawyers(R) 2014 "Lawyers of the Year" (Copyright 2013 by Woodward/White, Inc., of Aiken, SC): -- Charles C. Cohen has been named the Best Lawyers' 2014 Pittsburgh Corporate Law "Lawyer of the Year." -- V. Susanne Cook has been named the Best Lawyers' 2014 Pittsburgh International Trade & Finance Law "Lawyer of the Year." -- R. Michael Daniel has been named the Best Lawyers' 2014 Pittsburgh Litigation - Trusts & Estates "Lawyer of the Year." -- Christopher F. Farrell has been named the Best Lawyers' 2014 Pittsburgh Non-Profit/Charities Law "Lawyer of the Year." Since it was first published in 1983, Best Lawyers(R) has become universally regarded as the definitive guide to legal excellence. Because Best Lawyers is based on an exhaustive peer-review survey in which almost 50,000 leading attorneys cast nearly five million votes on the legal abilities of other lawyers in their practice areas, and because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers is considered a singular honor. Corporate Counsel magazine has called Best Lawyers "the most respected referral list of attorneys in practice." About Cohen & Grigsby Since 1981, Cohen & Grigsby, P.C. -- http://www.cohenlaw.com-- and its attorneys have provided sound legal advice and solutions to clients that seek to maximize their potential in a constantly changing global marketplace. Comprised of more than 130 lawyers, Cohen & Grigsby maintains offices in Pittsburgh, PA and Naples, FL. The firm's practice areas include Business Services, Labor & Employment, Immigration/International Business, Real Estate & Public Finance, Litigation, Employee Benefits and ERISA, Estates & Trusts, Bankruptcy & Creditors Rights, and Public Affairs. Cohen & Grigsby represents private and publicly held businesses, nonprofits, multinational corporations, individuals and emerging businesses across a full spectrum of industries. * Dorsey & Whitney Bankruptcy Lawyers Named to Best Lawyers List ---------------------------------------------------------------- International law firm Dorsey & Whitney LLP on Aug. 15 disclosed that 105 lawyers in 12 of the Firm's offices were recently selected by their peers for inclusion in The Best Lawyers in America(R) 2014. In addition, eight lawyers from the Firm's Anchorage, Fargo, Minneapolis and Salt Lake City offices have been named Best Lawyers' 2014 Lawyers of the Year. "This is a much deserved recognition of the excellence of Dorsey's lawyers across our many practice areas and our geographic platform," noted Dorsey Managing Partner Ken Cutler. "That excellence translates into superb service to our clients every day." First published in 1983, Best Lawyers is based on an exhaustive annual peer-review survey. More than 50,000 attorneys cast more than five million votes on the legal abilities of other lawyers in the same and related specialties. Because of the rigorous and transparent methodology used by Best Lawyers, and because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers is considered a singular honor. The lawyers listed in Best Lawyers do not decide in which legal specialties they are listed. They are included in specialties as a result of the votes they receive from their peers. The specialties listed are based on information from a variety of sources. Listed below are the Dorsey lawyers named as Best Lawyers, the specialty in which they are named, the first year they were listed and their office location. Best Lawyers' 2014 Lawyers of the Year: -- Robert C. Bundy Anchorage Bet-the-Company Litigation -- Richard M. Rosston Anchorage Real Estate Law -- Sarah Andrews Herman Fargo Employment Law - Management -- Jerome P. Gilligan Minneapolis Public Finance Law -- Michael A. Lindsay Minneapolis Litigation - Antitrust -- Robert A. Rosenbaum Minneapolis Corporate Law -- Gary L. Tygesson Minneapolis Corporate Governance Law -- Milo Steven Marsden Salt Lake City Litigation - Securities The Best Lawyers in America 2014: ANCHORAGE, AK -- Robert C. Bundy (2005) Bet-the-Company Litigation Commercial Litigation Criminal Defense: Non-White-Collar Criminal Defense: White-Collar Litigation - Antitrust Litigation - Environmental -- Jahna Lindemuth (2013) Medical Malpractice Law - Defendants -- Michael R. Mills (2003) Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law -- Richard M. Rosston (2006) Corporate Law Mergers & Acquisitions Law Real Estate Law -- Spencer C. Sneed (1995) Litigation - Bankruptcy COSTA MESA, CA -- Juan C. Basombrio (2007) Litigation - Antitrust -- Gabrielle M. Wirth (2007) Employment Law - Management Labor Law - Management -- Dennis Wong (2011) Banking and Finance Law DENVER, CO -- Whitney A. Holmes (2006) Corporate Law -- Lee F. Johnston (2012) Litigation - Intellectual Property Litigation - Patent -- Steven J. Merker (*) Labor Law - Management -- Lee R. Osman (2007) Litigation - Intellectual Property Litigation - Patent Technology Law -- Kenneth G. Sam (2013) Securities / Capital Markets Law -- Paul G. Thompson (*) Corporate Law -- Tucker K. Trautman (1989) Bet-the-Company Litigation Commercial Litigation Litigation - Antitrust Litigation - Intellectual Property Litigation - Patent Litigation - Securities DES MOINES, IA -- David L. Claypool (2003) Public Finance Law -- David D. Grossklaus (2005) Public Finance Law -- Robert E. Josten (2003) Public Finance Law -- Cristina Kuhn (2013) Public Finance Law -- Edwin N. McIntosh (2007) Health Care Law -- David A. Tank (2007) Commercial Litigation FARGO, ND -- Sarah Andrews Herman (1995) Employment Law - Management Labor Law - Management Litigation - Labor & Employment MINNEAPOLIS, MN -- Jonathan B. Abram (2007) Securities / Capital Markets Law -- Michael J. Ahern (2010) Administrative / Regulatory Law Government Relations Practice -- James D. Alt (2013) Mutual Funds Law -- Timothy B. Arends (2013) Employee Benefits (ERISA) Law -- William J. Berens (1993) Litigation - Trusts & Estates Trusts and Estates -- B. Andrew Brown (2007) Litigation - Environmental -- Elizabeth C. Buckingham (2010) Copyright Law Trademark Law -- Peter W. Carter (2009) Bet-the-Company Litigation Litigation - Antitrust Litigation - Securities -- Robert E. Cattanach (2008) Litigation - Environmental -- Steven K. Champlin (2007) Eminent Domain and Condemnation Law -- Douglas R. Christensen (2010) Employment Law - Management Labor Law - Management Litigation - Labor & Employment -- Ken Cutler (2006) Corporate Law Mergers & Acquisitions Law -- Skip Durocher (2013) Commercial Litigation Native American Law -- George G. Eck (2011) Commercial Litigation Litigation - Environmental -- Verlane L. Endorf (2011) Public Finance Law -- L. Joseph Genereux (2007) Banking and Finance Law -- Jerome P. Gilligan (2008) Public Finance Law -- Mark E. Hamel (1995) Real Estate Law -- Timothy S. Hearn (2009) Corporate Compliance Law Corporate Governance Law Securities / Capital Markets Law -- Nathan E. Honson (2013) Tax Law -- Gary M. Johnson (1995) Trusts and Estates -- Mark R. Kaster (2010) Administrative / Regulatory Law -- Bridget A. Logstrom Koci (2008) Litigation - Trusts & Estates Trusts and Estates -- Peter M. Lancaster (2011) Litigation - Intellectual Property Litigation - Patent -- Thaddeus R. Lightfoot (2007) Environmental Law Litigation - Environmental -- Jay R. Lindgren (2006) Land Use & Zoning Law Public Finance Law -- Michael A. Lindsay (2008) Litigation - Antitrust -- Stephen P. Lucke (2010) Commercial Litigation Litigation - ERISA -- Edward B. Magarian (2011) Litigation - Antitrust -- Roger J. Magnuson (2006) Bet-the-Company Litigation Commercial Litigation Litigation - Antitrust Litigation - Regulatory Enforcement (SEC, Telecom, Energy) Litigation - Securities -- Phillip H. Martin (1989) Litigation & Controversy - Tax Tax Law -- Saiko Y. McIvor (2010) Immigration Law -- Steven C. Nelson (2013) Mergers & Acquisitions Law -- Robert J. Olson (2013) Construction Law -- Michael J. Radmer (2007) Mutual Funds Law Securities Regulation -- Melissa Raphan (2009) Employment Law - Management Litigation - Labor & Employment -- Julia L. Rau (2012) Tax Law Trusts and Estates -- Stanley M. Rein (1995) Trusts and Estates -- Robert A. Rosenbaum (2006) Corporate Compliance Law Corporate Governance Law Corporate Law Mergers & Acquisitions Law -- Mary J. Streitz (2012) Native American Law Tax Law -- Jay L. Swanson (2007) Corporate Compliance Law Corporate Governance Law Corporate Law Mergers & Acquisitions Law -- Thomas W. Tinkham (1989) Bet-the-Company Litigation Commercial Litigation -- Gary L. Tygesson (2007) Corporate Governance Law -- Bryn R. Vaaler (2013) Corporate Law -- Thomas D. Vander Molen (2008) Non-Profit / Charities Law Public Finance Law -- J. Thomas Vitt (2013) Litigation - Intellectual Property -- Michael J. Wahoske (2007) Appellate Practice -- Steven J. Wells (2012) Commercial Litigation Franchise Law -- Perry M. Wilson III (2012) Litigation - Trusts & Estates -- John W. Windhorst Jr. (1983) Litigation & Controversy - Tax MISSOULA, MT -- Jack Manning (1999) Corporate Law Securities / Capital Markets Law NEW YORK, NY -- Zachary W. Carter (2012) Litigation - Securities -- Mario Diaz-Cruz III (2013) Banking and Finance Law -- Sandra Edelman (2007) Litigation - Intellectual Property Litigation - Patent -- Bruce R. Ewing (2005) Litigation - Intellectual Property Trademark Law -- Jonathan M. Herman (2012) Litigation - Trusts & Estates -- Susan Progoff (2011) Litigation - Intellectual Property -- Richard H. Silberberg (2007) Arbitration Mediation -- David C. Singer (2010) Employment Law - Individuals Employment Law - Management PALO ALTO, CA -- John Walshe Murray (1995) Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law Litigation - Bankruptcy SALT LAKE CITY, UT -- Alan W. Bell (2010) Corporate Law Mergers & Acquisitions Law -- Bryon J. Benevento (2006) Personal Injury Litigation - Defendants Product Liability Litigation - Defendants -- Samuel P. Gardiner (2010) Corporate Law Securities / Capital Markets Law -- Peggy Hunt (2008) Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law -- Annette W. Jarvis (2005) Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law Litigation - Bankruptcy -- Milo Steven Marsden (2010) Commercial Litigation Litigation - Securities -- David Marx (*) Corporate Law -- William B. Prince (2006) Natural Resources Law Oil & Gas Law -- Nolan S. Taylor (2006) Corporate Law Mergers & Acquisitions Law Venture Capital Law -- Michael F. Thomson (2011) Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law Litigation - Bankruptcy -- Steven T. Waterman (2006) Litigation - Bankruptcy SEATTLE, WA -- Christopher J. Barry (2009) Corporate Law Mergers & Acquisitions Law Securities / Capital Markets Law -- Terrence I. Danysh (2011) Land Use & Zoning Law -- Michael W. Droke (2007) Employment Law - Management Labor Law - Management -- Gary R. Duvall (1995) Franchise Law -- Peter S. Ehrlichman (2007) Commercial Litigation Litigation - Intellectual Property Litigation - Labor & Employment Litigation - Real Estate Litigation - Securities -- Kimton N. Eng (2011) Patent Law -- Joseph M. Gaffney (1995) Trusts and Estates -- John D. Hollinrake Jr. (2012) Tax Law -- Lisa M. Marchese (2013) Commercial Litigation -- Traeger Machetanz (2006) Construction Law -- Marianne O'Bara (2007) Employee Benefits (ERISA) Law WASHINGTON, DC -- Thomas O. Gorman (2010) Litigation - Securities About Dorsey & Whitney LLP With locations across the United States and in Canada, Europe and the Asia-Pacific region, Dorsey & Whitney LLP provides an integrated, proactive approach to its clients' legal and business needs. Dorsey represents a number of the world's most successful companies from a wide range of industries, including leaders in the financial services, life sciences, technology, agribusiness and energy sectors, as well as major non-profit and government entities. * Mintz, Levin's Jeffry Davis Named Bankruptcy Lawyer of the Year ----------------------------------------------------------------- Jeffry A. Davis, a Member of the Bankruptcy, Restructuring & Commercial Law Section of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., has been named the Best Lawyers' 2014 San Diego Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law "Lawyer of the Year." Best Lawyers, which compiles annual listings of outstanding lawyers through a rigorous peer-review process, selects a single lawyer in each specialty in each community to honor as the "Lawyer of the Year." These lawyers have received particularly high ratings by earning a high level of respect among their peers for their abilities, professionalism, and integrity. Mr. Davis has practiced in the area of bankruptcy, commercial law, and debtor/creditor law for over 30 years, and is a frequent lecturer on bankruptcy and commercial law subjects before professional and trade organizations. His practice is focused on all aspects of bankruptcy (including debtors, creditors, and committees), out-of-court workouts, insolvency, receiverships, and debtor/creditor rights. In addition, he is a commercial law litigator in areas such as contract and business disputes. Industries in which he has recently represented clients include real estate, health care, automotive, software, waste management, and food services. Most recently, he has been involved in the Chapter 9 case filed by the City of Stockton, California and related proceedings enforcing defaults under municipal bonds. Mr. Davis has been selected by his peers to appear in Best Lawyers in America each year since 1996. * Greenberg Traurig Bankruptcy Lawyers Named to Best Lawyers List ----------------------------------------------------------------- The 2014 edition of Best Lawyers in America includes 131 attorneys from across the seven Florida offices of international law firm Greenberg Traurig, LLP. The firm is top-listed across 18 practice areas in the region. For a seventh consecutive year, Greenberg Traurig -- with 348 attorneys listed from across its U.S. offices -- is ranked No. 1 by Best Lawyers in America for having the highest number of attorneys listed in the 2014 edition of its publication. Inclusion in Best Lawyers in America is based entirely on peer- review, according to the website. The methodology is designed to capture, as accurately as possible, the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area. Six Florida lawyers received special recognition as "Lawyer of the Year." Only one lawyer in each practice area and designated metropolitan area is given this title. The Florida Greenberg Traurig attorneys recognized as Lawyers of the Year, with their respective location and practice area are: -- Carl A. Fornaris, Securities Regulation, Miami -- Bruce H. Giles-Klein, Public Finance Law, Miami -- Fred F. Harris, Corporate Law, Tallahassee -- Gregory W. Herbert, Intellectual Property, Orlando -- Richard C. McCrea, Jr., Labor Law - Management and Litigation - Labor & Employment, Tampa -- Robert A. Soriano, Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, Tampa The Greenberg Traurig Florida attorneys recognized by Best Lawyers in America cover more than 50 different practice areas. Four attorneys are honored for the first time. The attorneys are listed with their corresponding category/practice area(s) and the year they were first recognized: BOCA RATON -- Dennis W. Hillier (2007) - Real Estate Law -- Jeffrey S. Kahn (2010) - Tax Law -- Marvin A. Kirsner (2008) - Tax Law -- Marcia H. Langley (2010) - Real Estate Law -- Craig T. McClung (2012) - Tax Law -- Stephen A. Mendelsohn (2013) - Litigation - Banking & Finance -- Robert J. Robes (2013)- Trust and Estates FORT LAUDERDALE -- David O. Batista (2013) - Commercial Litigation -- Donn A. Beloff (2006) - Corporate Law, Leveraged Buyouts and Private Equity Law, Securities/Capital Markets Law -- Francis B. Brogan, Jr. (2005) - Trusts and Estates -- Jerold I. Budney (2010) - Appellate Practice, Commercial Litigation -- William R. Clayton (2010) - Commercial Litigation, Litigation - Construction Litigation - Real Estate -- Jonathan S. Gelman (2009) - Real Estate Law -- Jeffrey Gilbert (2013) - Commercial Litigation, Litigation - Bankruptcy, Litigation - Real Estate -- Glenn E. Goldstein (2010) - Commercial Litigation, Litigation - Banking & Finance, Litigation - Real Estate -- Scott M. Grossman (2011) - Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law, Litigation - Bankruptcy -- Barbara A. Hall (2007) - Environmental Law, Government Relations Practice -- Jeffrey Allan Hirsch (2010) - Commercial Litigation -- Kenneth A. Horky (2013) - Commercial Litigation -- Stanley G. Jacobs, Jr. (2013) - Corporate Law, Securities/Capital Markets Law -- Stephen F. Katz (2005) - Real Estate Law -- Kara L. MacCullough (2012) - Corporate Compliance Law, Corporate Law -- Bruce I. March (2011) - Mergers & Acquisitions Law -- Daniel D. McCawley (2010) - Real Estate Law -- Paul B. McCawley (2009) - Tax Law, Trusts and Estates -- John L. McManus (2013) - Commercial Litigation -- Matthew W. Miller (2011) - Corporate Law, Securities/Capital Markets Law, Securities Regulation -- Debbie M. Orshefsky (2006) - Environmental Law, Land Use & Zoning Law, Real Estate Law -- David C. Peck (2006) - Corporate Law, Health Care Law -- Brian J. Sherr (2007) - Real Estate Law -- Michele Stocker (2013) - Commercial Litigation MIAMI -- Cesar L. Alvarez (1993) (20 years) - Corporate Law, International Trade and Finance Law -- David A. Barkus (2011) - Corporate Law -- Kerri L. Barsh (2007) - Environmental Law, Land Use & Zoning Law, Litigation - Environmental, Litigation - Land Use & Zoning, Natural Resources Law -- Hilarie Bass (2007) - Commercial Litigation, Litigation - Banking & Finance, Litigation - Mergers & Acquisitions, Litigation - Real Estate, Litigation - Securities -- Jacqueline Becerra (2010) - Commercial Litigation, Litigation - Intellectual Property, Litigation - Securities -- Ralph B. Bekkevold (2008) - Litigation - Real Estate, Real Estate Law -- Norman J. Benford (1983) (25 years) - Trusts and Estates -- Richard N. Bernstein (2005) - Corporate Law -- Mark D. Bloom (1993) (20 years) - Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law, Litigation - Bankruptcy -- Burt Bruton (2005) - Litigation - Real Estate, Real Estate Law -- Juan Pablo Cappello (2007) - Corporate Law, Derivatives and Futures Law, Securitization and Structured Finance Law -- David A. Coulson (2010) - Commercial Litigation -- Albert A. del Castillo (2006) - Public Finance Law -- Alan T. Dimond (2007) - Commercial Litigation, Litigation - Construction, Litigation - Municipal, Litigation - Real Estate -- Lucia A. Dougherty (2006) - Administrative / Regulatory Law, Environmental Law, Land Use & Zoning Law, Real Estate Law -- Seth J. Entin (2007) - Tax Law -- Gary M. Epstein (1995) (10 years) - Corporate Law, Securities/Capital Markets Law, Securities Regulation -- Robert S. Fine (2012) - Government Relations Practice, Litigation - Land Use & Zoning -- Joseph Z. Fleming (1983) (25 years) - Employment Law - Management, Entertainment Law - Motion Pictures & Television, Environmental Law, Labor Law - Management, Land Use & Zoning Law, Litigation - Environmental, Litigation - Labor & Employment, Litigation - Land Use & Zoning, Sports Law, Water Law -- Carl A. Fornaris (2008) - Banking and Finance Law, Corporate Law, Financial Services Regulation Law, Securities / Capital Markets Law, Securities Regulation -- Ricardo L. Fraga (2010) - Real Estate Law -- Robert C. Gang (2006) - Public Finance Law -- Laura R. Gangemi Vignola (2008) - Real Estate Law -- Bruce H. Giles-Klein (2006) - Public Finance Law -- Richard J. Giusto (2007) - Real Estate Law -- Steven E. Goldman (2007) - Real Estate Law -- Matthew B. Gorson (1987) (25 years) - Real Estate Law -- Larry J. Hoffman (1989) (25 years) - Corporate Law -- Kenneth C. Hoffman (2011) - Corporate Law, Securities / Capital Markets Law -- John B. Hutton III (2009) - Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, Commercial Litigation, Litigation - Bankruptcy -- Steven A. Landy (First year 2014) - Real Estate Law -- Steven B. Lapidus (1995) (10 years) - Employee Benefits (ERISA) Law -- Nancy B. Lash (2008) - Real Estate Law -- Juan P. Loumiet (2008) - Litigation - Real Estate, Real Estate Law -- Patricia Menendez-Cambo (2006) - Corporate Law, International Trade and Finance Law -- Adrienne L. Pardo (2011) - Government Relations Practice -- Eliot Pedrosa (2013) - Commercial Litigation -- Albert D. Quentel (1987) (25 years) - Real Estate Law -- Julissa Rodriguez (2013) - Appellate Practice -- Ronald M. Rosengarten (2006) - Employment Law - Management, Labor Law - Management -- Ira N. Rosner (2007) - Corporate Law, Energy Law, Securities/Capital Markets Law -- David L. Ross (1989) (25 years) - Bet-the-Company Litigation, Commercial Litigation, Litigation - Antitrust -- Mark A. Salky (2013) - Commercial Litigation, Litigation - Real Estate -- Gary Saul (2006) - Real Estate Law -- Elliot H. Scherker (2001) (10 years) - Appellate Practice, Criminal Defense: White-Collar, Personal Injury Litigation - Defendants -- Ozzie A. Schindler (2006) - Tax Law -- Mark P. Schnapp (2006) - Criminal Defense: White-Collar -- Marlene K. Silverman (2007) - Commercial Litigation, Litigation - Intellectual Property -- Charles E. Stiver, Jr. (1999) (10 years) - Tax Law -- Susan J. Tarbe (2007) - Commercial Litigation, Criminal Defense: White-Collar -- Manuel R. Valcarcel IV (2007) - Communications Law, Technology Law -- David E. Wells (2008) - Mergers & Acquisitions Law, Securities/Capital Markets Law -- Diana S.C. Zeydel (2008) - Litigation - Trusts & Estates, Tax Law, Trusts and Estates ORLANDO -- Warren S. Bloom (2007) - Public Finance Law -- Orlando L. Evora (2007) - Real Estate Law -- Peter J. Fides II (2008) - Real Estate Law -- Gregory W. Herbert (2010) - Litigation - Intellectual Property, Litigation - Patent -- Russell P. Hintze (2008) - Mergers & Acquisitions Law, Tax Law -- Michael Hornreich (2003) (10 years) - Construction Law, Litigation - Construction, Litigation - Municipal, Litigation - Real Estate -- Joseph J. JeBailey (2013) - Real Estate Law -- Julie P. Kendig-Schrader (2008) - Environmental Law, Litigation - Land Use & Zoning, Real Estate Law -- Adam B. Landa (2013) - Copyright Law, Litigation - Intellectual Property, Litigation - Patent -- Joel D. Maser (2005) - Tax Law -- Jonathan M. Perry (First year 2014) - Real Estate Law -- Ronald M. Schirtzer (2013) - Commercial Litigation -- Alan C. Sheppard, Jr. (2013) - Real Estate Law -- I. William Spivey II (2009) - Commercial Litigation, Litigation - Banking & Finance, Litigation - Real Estate -- Michael J. Sullivan (2005) - Real Estate Law -- Jean E. Wilson (2007) - Public Finance Law TALLAHASSEE -- David C. Ashburn (2008) - Government Relations Practice, Health Care Law -- Fred W. Baggett (2007) - Government Relations Practice -- Lorence Jon Bielby (2008) Bet-the-Company Litigation, Commercial Litigation, Litigation - Labor & Employment, Technology Law -- Reggie L. Bouthillier (2006) - Environmental Law, Litigation - Environmental -- Glenn T. Burhans, Jr. (2010) - Appellate Practice, Bet-the- Company Litigation, Commercial Litigation -- Michael J. Cherniga (2006) - Government Relations Practice, Health Care Law -- Fred F. Harris (2010) - Corporate Law, Securities/Capital Markets Law, Tax Law -- M. Hope Keating (2010) - Appellate Practice, Health Care Law -- Robert R. McDonald (2009) - Real Estate Law -- Maribel N. Nicholson-Choice (2010) - Environmental Law -- Barry Richard (2006) - Appellate Practice, Bet-the-Company Litigation, Commercial Litigation, Ethics and Professional Responsibility Law, Litigation - Regulatory Enforcement (SEC, Telecom, Energy) TAMPA -- Gregory W. Kehoe (2009) - Commercial Litigation, Criminal Defense: White-Collar -- Vincent A. Marchetti (2013) - Litigation - Land Use & Zoning -- Cynthia L. May (2012) - Employment Law - Management, Labor Law - Management -- Richard C. McCrea, Jr. (1995) (10 years) - Employment Law - Management, Labor Law - Management, Litigation - Labor & Employment -- Kimberly Mello (2013) - Appellate Practice -- Robert A. Soriano (1993) (20 years) - Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law, Litigation - Bankruptcy -- David B. Weinstein (2005) - Commercial Litigation, Litigation - Environmental -- Peter Wolfson Zinober (1989) (25 years) - Employment Law - Management, Labor Law - Management, Litigation - Labor & Employment WEST PALM BEACH -- Bridget A. Berry (2012) - Commercial Litigation, Litigation - Construction, Litigation - Labor & Employment, Litigation - Real Estate -- Mark F. Bideau (2009) - Bet-the-Company Litigation, Commercial Litigation, Construction Law, Employment Law - Management, Labor Law - Management, Litigation - Construction, Litigation - First Amendment, Litigation - Labor & Employment, Litigation - Land Use & Zoning, Litigation - Real Estate, Litigation - Securities, Mass Tort Litigation/Class Actions - Defendants -- Howard Bregman (2008) - Real Estate Law -- Joseph C. Coates III (2011) - Commercial Litigation, Litigation - Regulatory Enforcement (SEC, Telecom, Energy), Litigation - Securities -- Gary M. Dunkel (2010) - Commercial Litigation, Litigation - Real Estate -- Tracy L. Gerber (First year 2014) - Litigation - Securities -- Laurie L. Gildan (2009) - Litigation - Real Estate, Real Estate Law -- Bradford D. Kaufman (2008) - Commercial Litigation, Litigation - Regulatory Enforcement (SEC, Telecom, Energy), Litigation - Securities, Securities / Capital Markets Law, Securities Regulation -- David M. Layman (2010) - Real Estate Law -- Patricia A. Leonard (First year 2014) - Commercial Litigation -- Robert Sanders (2010) - Land Use & Zoning Law -- Stephen D. Sanford (2010) Public Finance Law About Greenberg Traurig, LLP Greenberg Traurig, LLP -- http://www.gtlaw.com-- is an international, full-service law firm with approximately 1750 attorneys serving clients from 36 offices in the United States, Latin America, Europe, the Middle East and Asia. In the U.S., the firm has more offices than any other among the Top 10 on The National Law Journal's 2012 NLJ 250. * Brickler & Eckler Bankruptcy Lawyers Named to Best Lawyers List ----------------------------------------------------------------- The Best Lawyers in America(R) 2014 (copyright 2013 by Woodward/White, Inc., of Aiken, SC) recently named nine Bricker & Eckler attorneys as "Lawyer of the Year" in Columbus and Cincinnati. Additionally, fifty-five Bricker lawyers, representing nearly 38 percent of the firm's attorneys, were selected by their peers for inclusion in this year's edition. Best Lawyers names only a single lawyer in each specialty as the "Lawyer of the Year" in each market. Best Lawyers compiles its lists of outstanding attorneys by conducting exhaustive peer- review surveys in which thousands of leading lawyers confidentially evaluate their professional peers. The current edition is based on detailed evaluations of nearly four million lawyers nationwide. Attorneys honored as "Lawyers of the Year" have received particularly high ratings in surveys for their abilities, professionalism and integrity. The 2014 Lawyers of the Year from Bricker & Eckler are: Columbus - Jerry O. Allen: Litigation & Controversy Tax "Lawyer of the Year" John P. Beavers: Corporate Compliance Law "Lawyer of the Year" Drew H. Campbell: Litigation-Banking & Finance "Lawyer of the Year" Frank L. Merrill: Litigation-Environmental "Lawyer of the Year" Karen M. Moore: Trusts & Estates "Lawyer of the Year" Rebecca C. Princehorn: Education Law "Lawyer of the Year" Anne Marie Sferra: Appellate Practice "Lawyer of the Year" Cincinnati - Andrew M. Shott: Litigation-Real Estate "Lawyer of the Year" Claire Turcotte: Health Care Law "Lawyer of the Year" Attorneys are named to the Best Lawyers list following a peer- review survey of more than 36,000 leading attorneys across the nation who cast almost 4.4 million votes on the legal abilities of other lawyers in their practice areas. Lawyers listed in Best Lawyers have no say in selecting the practice areas in which they are listed and are voted into the named practice area as a result of the votes received from peers. Bricker is proud to congratulate these honored attorneys, listed by location and practice area: Cleveland - Glenn S. Krassen (Energy Law, Natural Resources Law, Oil & Gas Law)Thomas J. Onusko (Health Care Law) Columbus -Jerry O. Allen (Litigation & Controversy - Tax, Tax Law) Laura G. Anthony (Education Law)David G. Baker (Real Estate Law)Catherine M. Ballard (Health Care Law)John P. Beavers (Corporate Compliance Law, Corporate Governance Law, Corporate Law, Mergers & Acquisitions Law, Securities / Capital Markets Law)John F. Birath, Jr. (Commercial Litigation, Medical Malpractice Law - Defendants, Personal Injury Litigation - Defendants)Sally W. Bloomfield (Water Law, Energy Law) Drew H. Campbell (Commercial Litigation, Litigation - Banking & Finance)Kimball H. Carey (Education Law)William T. Conard II (Public Finance Law)David K. Conrad (Real Estate Law)Scott W. Davis (Construction Law)Jennifer A. Flint (Education Law)James F. Flynn (Health Care Law)John F. Furniss III (Trusts and Estates)Dane A. Gaschen (Education Law)Michael K. Gire (Health Care Law)Craig A. Haddox (Real Estate Law)James J. Hughes (Environmental Law, Litigation - Environmental)Stephen Intihar (Real Estate Law)Kenneth C. Johnson (Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, Litigation - Bankruptcy)Gordon W. Johnston (Banking and Finance Law, Equipment Finance Law) Richard F. Kane (Public Finance Law)Donald R. Keller (Employment Law - Management, Labor Law - Management, Litigation - Labor & Employment)Allen R. Killworth (Health Care Law)Stephan R. Kleinman (Health Care Law)Gordon F. Litt (Tax Law, Trusts and Estates)Richard S. Lovering (Personal Injury Litigation - Defendants) Edward A. Matto (Antitrust Law, Litigation - Antitrust)Charles H. McCreary (Real Estate Law)Frank L. Merrill (Litigation - Environmental)Karen M. Moore (Litigation - Trusts & Estates, Trusts & Estates) Thomas J. O'Brien (Communications Law, Energy Law, Water Law)James G. Petrie (Employment Law - Individuals, Employment Law - Management, Labor Law - Management, Litigation - Labor & Employment) Rebecca C. Princehorn (Education Law, Public Finance Law) Robert C. Rafferty (Trusts and Estates)Jack Rosati, Jr. (Construction Law, Litigation - Construction)James A. Rutledge (Corporate Law)Anne Marie Sferra (Appellate Practice, Commercial Litigation)Douglas Shevelow (Construction Law)Diane M. Signoracci (Health Care Law)Karen D. Smith (Health Care Law)David C. Spialter (Health Care Law)Elisabeth A. Squeglia (Health Care Law)Christopher N. Swank (Real Estate Law)Betsy A. Swift (Employment Law - Management, Labor Law - Management) Kurtis A. Tunnell (Government Relations Practice)David M. Whittaker (Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, Litigation - Bankruptcy)Faith M. Williams (Administrative / Regulatory Law, Insurance Law) Cincinnati-Dayton (West Chester) -Mark A. Engel (Tax Law)Jeffrey P. McSherry (Commercial Litigation)Andrew M. Shott (Commercial Litigation, Litigation - Real Estate, Real Estate Law)Claire Turcotte (Health Care Law) About Bricker & Eckler Bricker & Eckler -- http://www.bricker.com-- is one of Ohio's leading law firms. Located in Columbus, Cleveland, Cincinnati- Dayton, and a newly opened Marietta office, the firm represents a wide variety of clients, including businesses and corporations, nonprofit organizations, governmental agencies, health care entities, school districts, municipalities, banks and insurers. * Mintz Levin Bankruptcy Lawyers Named to Best Lawyers List ----------------------------------------------------------- Sixty-three attorneys from Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. were recently selected by their peers for inclusion in the 2014 edition of The Best Lawyers in America(R). Since it was first published in 1983, Best Lawyers has become universally regarded as the definitive guide to legal excellence. Best Lawyers is based on an exhaustive peer-review survey in which almost 50,000 leading attorneys cast nearly five million votes on the legal abilities of other lawyers in their practice areas. Corporate Counsel magazine has called Best Lawyers "the most respected referral list of attorneys in practice." The following Mintz Levin attorneys were selected in their respective practice areas for 2014: Boston Peter A. Biagetti - Commercial Litigation Alden J. Bianchi - Employee Benefits (ERISA) Law Daniel S. Bleck - Bankruptcy and Creditor-Debtor Rights/Insolvency and Reorganization Law Joseph Blute - Product Liability Litigation - Defendants Meghan B. Burke - Public Finance Law Elizabeth B. Burnett - Commercial Litigation Ralph A. Child - Environmental Law; Litigation - Environmental William L. Coffman - Immigration Law Susan J. Cohen - Immigration Law Thomas S. Crane - Health Care Law Deborah A. Daccord - Health Care Law Michael L. Fantozzi - Securities/Capital Markets Law Susan M. Finegan - Commercial Litigation Robert M. Gault - Employment Law - Individuals Thomas M. Greene - Employee Benefits (ERISA) Law H. Joseph Hameline - Litigation - Intellectual Property Douglas Hauer - Immigration Law William M. Hill - Construction Law; Litigation - Construction Anthony E. Hubbard - Non-Profit/Charities Law Ellen L. Janos - Health Care Law William W. Kannel - Bankruptcy and Creditor-Debtor Rights/Insolvency and Reorganization Law; Litigation - Bankruptcy Jonathan L. Kravetz - Biotechnology Law; Securities/Capital Markets Law; Securities Regulation; Technology Law Kim V. Marrkand - Insurance Law Richard E. Mikels - Bankruptcy and Creditor-Debtor Rights/Insolvency and Reorganization Law; Litigation - Bankruptcy Peter M. Miller - Trusts and Estates Tracy A. Miner - Criminal Defense: White-Collar A. Jason Mirabito - Patent Law Marilyn Newman - Environmental Law M. Daria Niewenhous - Health Care Law Susan P. Phillips - Environmental Law Frederick J. Pittaro - Real Estate Law John R. Pomerance - Corporate Law R. Robert Popeo - Bet-the-Company Litigation; Commercial Litigation; Corporate Governance Law; Criminal Defense: White- Collar; Litigation - Regulatory Enforcement (SEC, Telecom, Energy) Jeffrey R. Porter - Environmental Law; Litigation - Environmental Paul J. Ricotta - Bankruptcy and Creditor-Debtor Rights/Insolvency and Reorganization Law; Litigation - Bankruptcy Gregory A. Sandomirsky - Public Finance Law Maxwell D. Solet - Litigation & Controversy - Tax; Public Finance Law, Tax Law Samuel M. Starr - Construction Law; Litigation - Construction Kevin J. Walsh - Bankruptcy and Creditor-Debtor Rights/Insolvency and Reorganization Law Stephen M. Weiner - Health Care Law William T. Whelan - Biotechnology Law Jeffrey M. Wiesen - Biotechnology Law; Corporate Law; Mergers & Acquisitions Law New York Richard H. Block - Litigation - Labor & Employment Robert I. Bodian - Commercial Litigation; Litigation - Banking & Finance; Litigation - Bankruptcy; Litigation - Labor & Employment; Litigation - Securities Peter A. Chavkin - Criminal Defense: White-Collar David R. Lagasse - Employment Law - Management; Litigation - Labor & Employment Jeffrey A. Moerdler - Real Estate Law Joel I. Papernik - Corporate Law Bridget M. Rohde - Criminal Defense: White-Collar Andrew B. Roth - Health Care Law Jeremy A. Spector - Public Finance Law San Diego Scott Biel - Real Estate Law Jeffry A. Davis - Bankruptcy and Creditor-Debtor Rights/Insolvency and Reorganization Law; Litigation - Bankruptcy John Giust - Litigation - Patent Jeremy D. Glaser - Venture Capital Law Bridget A. Moorhead - Insurance Law San Francisco Paul Churchill - Real Estate Law Daniel J. Herling - Product Liability Litigation - Defendants Washington, D.C. Raymond D. Cotton - Education Law Charles D. Ferris - Communications Law Hope S. Foster - Health Care Law Bruce D. Sokler - Antitrust Law Howard J. Symons - Communications Law * Two Federal Bankruptcy Judges Appointed for N.C. District ----------------------------------------------------------- John Hinton, writing for Winston-Salem Journal, reported that the Fourth Circuit U.S. Court of Appeals has appointed Benjamin A. Kahn and Lena M. James as federal bankruptcy judges for the Middle District of North Carolina. Judge William Osteen of the U.S. District Court in Greensboro announced the appointments Wednesday. According to the report, James will succeed former Judge Thomas Waldrep and will be stationed in Winston-Salem, a federal court official said in a statement. Kahn will succeed Judge William L. Stocks and will be stationed in Greensboro. James and Kahn will be sworn in after completing a background-check investigation, the federal official said. James serves as the chief deputy for the U.S. Bankruptcy Court, the report related. She had worked as a law clerk to Chief Bankruptcy Judge Catharine R. Aron and as an attorney at the law firm of Womble, Carlyle, Sandridge and Rice. James graduated from Swarthmore College in 1992 with a bachelor's degree in English literature. She received a law degree from the UNC Chapel Hill School of Law in 1998. Kahn is a member of the law firm of Nexsen Pruet PLLC in Greensboro, and served as law clerk to Judge Jerry G. Tart, the report also related. Kahn is a conferee of the National Bankruptcy Conference, a nonprofit organization comprised of bankruptcy judges, practitioners, and law professors who assist Congress with bankruptcy legislation. In 1990, Kahn graduated from UNC Chapel Hill with a bachelor's degree in political science and history. He received a law degree from the UNC Chapel Hill School of Law in 1993. * Fitch: US Airways-AMR Merger Block May Be Positive for Airports ----------------------------------------------------------------- The move to block the proposed merger between US Airways and American Airlines (AMR) could have a marginally positive impact on U.S airports, Fitch Ratings says. If this move signals the end of the consolidation trend in the airline business, airports will generally benefit as more carriers (and competition) increase the routes and require more services. The U.S. Department of Justice (DOJ) and six state attorneys general blocked the proposed merger last week. Smaller regional airports may fare the best if the trend toward consolidation is at an end. They are more vulnerable to airline service cutbacks after a merger of large carriers. However, such airports with a significant exposure to AMR, such as Northwest Arkansas Regional Airport (42% in 2012), will remain susceptible to reductions in AMR's route network if it embarks on a strategy to emerge from bankruptcy through a down-scaling of its operations. Larger international gateway airports may also benefit. If US Airways and AMR remain separate carriers, both may separately need to enhance international services to contend with United and Delta. AMR is better placed to pursue this course given its larger presence at more favorable international gateway airports such as JFK, San Francisco and Los Angeles. DOJ's complaint focuses on Reagan National Airport, claiming that US Airways' increase in the proportion of required takeoff and landing slots from the 55% it currently holds to 69% post-merger would seriously undermine airline competition at the airport. "We estimate that US Airways underuses slots at the airport compared with other carriers in terms of enplanements per slot, with the airline accounting for 42% of the airport's 2012 emplaned passengers with its 55% holding of slots," Fitch says. "We believe Reagan's increased counterparty exposure to US Airways (in a merger scenario) is a minor concern, as demand for slots at the airport from other airlines, when they become available, is likely to remain high for the foreseeable future given its geographic, public transport and pricing strengths. Should the DOJ eventually agree to the merger, US Airways may be required to divest slots at Reagan, leading to slightly better outcomes for the airport as the enplanements per slot may rise," Fitch says. "However, the overall impact on Reagan's financial position would be marginal. The residual use and lease agreement means all airport costs are passed through to airlines regardless of enplanements. And airport financing is handled by Metropolitan Washington Airports Authority, which also owns, operates and finances Dulles International Airport. Changes in carrier concentration mix at Reagan are small when considered as part of the whole two-airport system. "In our view, the airlines are likely to appeal the decision. A final ruling is expected to take time. We will continue to monitor the developments." * Fitch Says Audit Report Proposal Likely Helpful for Investors --------------------------------------------------------------- Efforts to improve transparency around audit reports would be helpful for investors and likely help highlight major financial reporting issues, according to Fitch Ratings. The Public Company Accounting Oversight Board (PCAOB) presented on August 13 a proposal that would require auditors to compile more detailed and descriptive reports in an effort to better inform investors. Current requirements call for a three-paragraph largely boilerplate audit opinion that accompanies annual reports and, rather than describing key accounting issues, simply states whether companies adhered to generally accepted accounting principles (GAAP). Fitch has previously highlighted the importance of disclosures that are informative and robust. Yet, the current standard three- paragraph audit opinion could very well be considered boilerplate and of little incremental informational value. Nevertheless, some elements of the PCAOB's proposal (i.e. the explicit statement that "the auditor is independent of the entity and has fulfilled the auditor's other relevant ethical responsibilities, with disclosure of the source[s] of those requirements") might also be met with a similar boilerplate response to today's audit report. Where auditors have identified weaknesses in the internal control environment, this might constrain ratings. "As a result, we believe the proposal to enhance the value of the audit report by including disclosure of "key audit matters" would likely be helpful, as it could provide additional information about these factors. If this new section is successful in disclosing what is "on the auditor's mind" then that may help assess factors relevant to our ratings," Fitch says. * Moody's Affirms B1 Rating on Oakdale's Sewer Revenue Bonds ------------------------------------------------------------ Moody's Investors Service has affirmed the B1 rating on the City of Oakdale's (CA) 2002A Sewer Enterprise Revenue bonds and removed the negative outlook. The bonds are secured by the installment payments made by the City pursuant to the Installment Sale Agreement between the Oakdale Public Financing Authority and the City of Oakdale, California. The net revenues of the City's sewer system are pledged to the payment of the installment payments. Moody's ratings represent expected loss, encompassing both default probability and bondholders' likely post-default recovery. When a security is in or approaching default, then placement of the rating will largely depend on the expected recovery to bondholders. Ratings of defaulted bonds with expected recoveries of 65-95% will typically be in the Caa range, 35-65% at Ca, and under 35% at the lowest rating of C. In the rare case when expected recoveries exceed 95%, such ratings will be in the single B range. Rating Rationale: The B1 rating reflects the system's historically poor financial performance and economically challenged service area, as well as managerial missteps that led to the earlier default. The rating also takes into account the projected low maximum annual debt service coverage, which highlights the degree of financial improvement that will be necessary to service the increasing debt service burden. The removal of the negative rating outlook reflects the restructuring of the State Revolving Fund (SRF) debt which results in more affordable debt service payments over the next few years, the adoption of multi-year rate increases, the commencement of funding of a debt service reserve fund, new management and the stabilization of the system's finances. In August 2012, due to the system's weak financial and debt management practices, the city (or system) defaulted on the principal portion of the first debt service payment on a $13.2 million unrated state revolving fund (SRF) loan from the California State Water Resources Control Board (SWRCB). The SRF loan is secured on a parity basis with the Installment Sale Agreement payments which are pledged to pay the Moody's rated Oakdale Public Financing Authority's 2002A Revenue Bonds. Strengths: - Restructuring of the SRF loan - Adoption of multi-year rate increases - Low customer concentration Challenges: - Low maximum annual debt service (MADs) coverage - Customers' slightly below average socioeconomic profile and high unemployment rate in service area - Weak but improving reserves and system liquidity What could make the rating go up: - Significantly bolstered reserve position - Significant rebound in usage and revenues What Could Make The Rating Go Down: - Erosion of liquidity and reserves - Weakening of financial position Rating Methodology: The principal methodology used in this rating was Analytical Framework For Water And Sewer System Ratings published in August 1999. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 120.5 (14.1) (11.1) ACASTI PHARMA IN APO CN 3.3 (1.8) 2.3 ADVANCED EMISSIO ADES US 87.0 (42.3) (18.0) ADVENT SOFTWARE ADVS US 824.6 (114.8) (202.7) AK STEEL HLDG AKS US 3,772.7 (181.0) 473.3 ALLIANCE HEALTHC AIQ US 528.2 (131.1) 64.8 AMC NETWORKS-A AMCX US 2,460.3 (680.1) 735.0 AMER AXLE & MFG AXL US 3,008.7 (101.6) 345.2 AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 ANGIE'S LIST INC ANGI US 111.8 (11.9) (9.4) ARRAY BIOPHARMA ARRY US 136.0 (21.9) 70.7 AUTOZONE INC AZO US 6,783.0 (1,532.3) (657.7) BERRY PLASTICS G BERY US 5,045.0 (251.0) 550.0 BIOCRYST PHARM BCRX US 39.9 (9.0) 21.6 BOSTON PIZZA R-U BPF-U CN 156.7 (108.0) (4.2) BRP INC/CA-SUB V DOO CN 1,768.0 (496.6) (21.8) BUILDERS FIRSTSO BLDR US 505.5 (8.5) 188.3 CABLEVISION SY-A CVC US 7,588.1 (5,565.5) (14.0) CAESARS ENTERTAI CZR US 26,844.8 (738.1) 833.8 CALLIDUS SOFTWAR CALD US 123.1 (2.2) 2.8 CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CC MEDIA-A CCMO US 15,296.5 (8,289.2) 1,259.4 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CHIMERIX INC CMRX US 26.3 (2.1) 15.9 CHOICE HOTELS CHH US 562.7 (520.0) 75.1 CIENA CORP CIEN US 1,693.3 (97.9) 744.0 CINCINNATI BELL CBB US 2,145.4 (719.7) (43.2) DELTA AIR LI DAL US 45,772.0 (1,184.0) (5,880.0) DENDREON CORP DNDN US 576.9 (100.5) 246.8 DEX MEDIA INC DXM US 2,658.8 (17.7) (13.5) DIAMOND RESORTS DRII US 1,053.8 (99.1) 674.4 DIRECTV DTV US 20,921.0 (5,688.0) 622.0 DOMINO'S PIZZA DPZ US 468.8 (1,328.8) 73.7 DUN & BRADSTREET DNB US 1,902.0 (1,097.0) (194.9) DYAX CORP DYAX US 70.7 (37.0) 43.0 EVERYWARE GLOBAL EVRY US 340.7 (53.6) 134.8 FAIRPOINT COMMUN FRP US 1,606.4 (400.5) 19.6 FAIRWAY GROUP HO FWM US 338.5 (1.2) 5.8 FERRELLGAS-LP FGP US 1,440.6 (29.0) 9.9 FIFTH & PACIFIC FNP US 846.2 (213.7) (64.6) FOREST OIL CORP FST US 1,913.7 (67.4) (129.4) FREESCALE SEMICO FSL US 3,129.0 (4,583.0) 1,235.0 GENCORP INC GY US 1,411.1 (366.9) 27.9 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GLOBAL BRASS & C BRSS US 576.5 (37.0) 286.9 GOLD RESERVE INC GDRZF US 78.3 (25.8) 56.9 GOLD RESERVE INC GRZ CN 78.3 (25.8) 56.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 HALOGEN SOFTWARE HGN CN 22.8 (46.2) (9.4) HCA HOLDINGS INC HCA US 27,934.0 (7,485.0) 1,771.0 HD SUPPLY HOLDIN HDS US 6,459.0 (1,720.0) 1,199.0 HOVNANIAN ENT-A HOV US 1,618.9 (478.5) 929.3 HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) HUGHES TELEMATIC HUTC US 110.2 (101.6) (113.8) INCYTE CORP INCY US 334.2 (27.8) 210.4 INFOR US INC LWSN US 6,202.6 (476.4) (417.5) INSYS THERAPEUTI INSY US 22.2 (63.5) (70.0) INVIVO THERAPEUT NVIV US 13.8 (14.3) (15.3) IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU JE CN 1,505.7 (215.4) (97.4) JUST ENERGY GROU JE US 1,505.7 (215.4) (97.4) L BRANDS INC LTD US 5,776.0 (994.0) 634.0 LIN MEDIA LLC LIN US 1,221.8 (63.5) (97.2) LIPOCINE INC MBARD US 0.0 (0.0) (0.0) LORILLARD INC LO US 3,335.0 (1,855.0) 1,587.0 MANNKIND CORP MNKD US 212.4 (152.4) (234.6) MARRIOTT INTL-A MAR US 6,377.0 (1,493.0) (1,063.0) MARRONE BIO INNO MBII US 17.8 (45.1) (21.6) MDC PARTNERS-A MDZ/A CN 1,389.4 (16.6) (204.5) MDC PARTNERS-A MDCA US 1,389.4 (16.6) (204.5) MEDIA GENERAL-A MEG US 739.6 (206.4) 30.6 MERITOR INC MTOR US 2,477.0 (1,059.0) 278.0 MERRIMACK PHARMA MACK US 107.3 (58.3) 28.2 MONEYGRAM INTERN MGI US 5,075.8 (148.2) 30.1 MORGANS HOTEL GR MHGC US 580.7 (163.7) 9.9 MPG OFFICE TRUST MPG US 1,280.0 (437.3) - NATIONAL CINEMED NCMI US 831.0 (308.8) 122.2 NAVISTAR INTL NAV US 8,723.0 (3,638.0) 1,562.0 NEKTAR THERAPEUT NKTR US 412.8 (40.5) 144.1 NYMOX PHARMACEUT NYMX US 1.8 (7.4) (1.9) ODYSSEY MARINE OMEX US 28.0 (7.1) (15.5) OMEROS CORP OMER US 23.1 (12.3) 10.4 OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) ORGANOVO HOLDING ONVO US 16.7 (5.3) (6.2) PALM INC PALM US 1,007.2 (6.2) 141.7 PDL BIOPHARMA IN PDLI US 401.4 (1.3) 46.7 PHILIP MORRIS IN PM US 37,140.0 (3,929.0) 2,049.0 PHILIP MRS-BDR PHMO11B BZ 37,140.0 (3,929.0) 2,049.0 PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLY GEM HOLDINGS PGEM US 1,102.0 (70.2) 194.4 PROTECTION ONE PONE US 562.9 (61.8) (7.6) QUALITY DISTRIBU QLTY US 474.4 (42.0) 99.0 QUINTILES TRANSN Q US 2,426.7 (1,322.3) 217.5 REGAL ENTERTAI-A RGC US 2,451.8 (706.2) 117.1 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTPATH INC PRM US 208.0 (91.7) 3.6 REVLON INC-A REV US 1,269.7 (632.4) 180.6 RITE AID CORP RAD US 6,945.4 (2,357.5) 1,822.5 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SALLY BEAUTY HOL SBH US 1,892.1 (280.5) 523.4 SILVER SPRING NE SSNI US 506.9 (86.7) 69.5 SUNESIS PHARMAC SNSS US 50.6 (5.8) 15.3 SUNGAME CORP SGMZ US 0.1 (1.3) (1.4) SUPERVALU INC SVU US 4,691.0 (1,084.0) 2.0 TAUBMAN CENTERS TCO US 3,369.8 (191.4) - THRESHOLD PHARMA THLD US 104.5 (25.2) 80.0 TOWN SPORTS INTE CLUB US 414.5 (43.7) (14.3) TROVAGENE INC TROV US 9.6 (2.5) 7.1 TROVAGENE INC-U TROVU US 9.6 (2.5) 7.1 ULTRA PETROLEUM UPL US 2,062.9 (441.1) (266.6) UNISYS CORP UIS US 2,275.8 (1,536.0) 412.2 VECTOR GROUP LTD VGR US 1,069.5 (129.5) 384.8 VENOCO INC VQ US 695.2 (258.7) (39.2) VERISIGN INC VRSN US 2,524.8 (273.9) 312.7 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) VISKASE COS I VKSC US 334.7 (3.4) 113.5 WEIGHT WATCHERS WTW US 1,310.8 (1,561.1) (84.7) WEST CORP WSTC US 3,462.1 (819.5) 338.0 WESTMORELAND COA WLB US 933.6 (281.6) (11.1) XERIUM TECHNOLOG XRM US 600.8 (35.1) 123.8 XOMA CORP XOMA US 76.9 (16.9) 46.5 YRC WORLDWIDE IN YRCW US 2,172.5 (641.5) 105.5 ********* 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., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, 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 2013. 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 $975 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 Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. *** End of Transmission ***