/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/130822.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, August 22, 2013, Vol. 17, No. 232 Headlines 2408 W KENNEDY: Case Summary & 20 Largest Unsecured Creditors 3PEA INTERNATIONAL: Posts $79,800 Net Income in Second Quarter ACCO BRANDS: Debt Cuts Prompt Moody's to Change Outlook to Stable ABERDEEN LAND: Wins Final Approval to Hire Advisors AGFEED INDUSTRIES: Enters into Consulting Agreement with G. Leeper AGFEED INDUSTRIES: Taps Keith Maib as Restructuring Officer AGFEED INDUSTRIES: Employs BDA as Investment Banker AGFEED INDUSTRIES: Hires BMC Group as Administrative Advisor ALLY FINANCIAL: To Buy Back Preferred Stock from U.S. AMERICAN AIRLINES: No Breakup Fee Coming If DOJ Blocks $11B Merger AMERICAN POWER: Had $384,000 Net Loss in June 30 Quarter AMTROL HOLDINGS: 3rd Cir. Defers on State Hazmat Suit Preemption APPLIED DNA: Incurs $2.1 Million Net Loss in June 30 Quarter ARI-RC 3: Cash Collateral Hearing Continued to Sept. 11 ARI-RC 3: U.S. Bank Wants Relief of Stay in Thousand Oaks Property ASHTON GROVE: Seeks to Employ Streusand Landon as Counsel ASHTON GROVE: Section 341(a) Meeting Set on September 10 ATLANTIC POWER: DBRS Lowers Issuer Rating to 'B(high)' ATP OIL: Files Schedules of Assets and Liabilities AVIS BUDGET: Supplemental Indenture No Impact on Moody's Ratings AXESSTEL INC: Incurs $2.5 Million Net Loss in Second Quarter BANKERS 4 REAL: Case Summary & 5 Unsecured Creditors BEAR STEARNS: U.S. Steps Up JPMorgan Probe Over Mortgage Bonds BELLE FOODS: Committee Retains CohnReznick as Financial Advisors BELLE FOODS: Committee Retains Haskell Slaughter as Co-Counsel BELLE FOODS: Creditors Committee Retains OSHR as Co-Counsel BIOFUEL ENERGY: Incurs $4.7 Million Net Loss in Second Quarter BIOANALYTICAL SYSTEMS: Gets Nasdaq Listing Non-Compliance Notice BIRDSALL SERVICES: Trustee Says Execs Must Pay for Firm's Damages BMB MUNAI: Incurs $543,000 Net Loss in June 30 Quarter BROADWAY FINANCIAL: Reports $228,000 Net Loss in 2nd Quarter BROWNIE'S MARINE: Had $425,700 Net Income in Second Quarter CANCER GENETICS: Incurs $9.1-Mil. Net Loss in Second Quarter CASA CASUARINA: Staff Says Rothstein Claim Is Improper CDW CORP: Moody's Raises CFR to B1 After Completion of June IPO CENTAUR LLC: Clawback Suit v. Sweeneys Survives Dismissal Bid CHICAGO TRADING: CFTC Revokes Registration CIRCLE STAR: Incurs $10.8 Million Net Loss in Fiscal 2013 CODA HOLDINGS: Plan Outline Hearing Set for Sept. 9 COMMUNITY SHORES: Posts $75,000 Net Income in Second Quarter COMPETITIVE TECHNOLOGIES: Reports $677,000 Net Loss in 2nd Qtr. CONSTRUCTORA DE HATO: Court Amends Order on Public Sale of Assets CONSTRUCTORA DE HATO: Granted Until Nov. 5 to File Plan COUDERT BROTHERS: Judge Drain Won't Reinstate Statek Claim CROC LLC: Case Summary & 4 Unsecured Creditors CITY OF SAN BRUNO: Disputes PG&E Statement on Potential Bankruptcy D & L ENERGY: Wants Until Nov. 12 to File Chapter 11 Plan DAIS ANALYTIC: Incurs $1.1 Million Net Loss in Second Quarter DEE ALLEN: Union Central Opposes Approval of Trustee Disclosures DESIGNLINE CORP: Meeting to Form Creditors' Panel on Aug. 27 DETROIT, MI: Can Appoint Committee of Retired Employees DETROIT, MI: Mich. School Districts to Test Municipal Bond Market DETROIT, MI: Area Tries to Protect World-Class Art From Bankruptcy DETROIT, MI: Bond Creditors Skip Initial Bankruptcy Fight DIAGNOSTIC VENTURES: Former Exec Ducks Fraud Claims DR TATTOFF: Incurs $1 Million Net Loss in Second Quarter DTS8 COFFEE: Incurs $1.1 Million Net Loss in Fiscal 2013 EARL GAUDIO: Files Amended List of 20 Largest Unsecured Creditors EARL GAUDIO: Files Schedules of Assets and Liabilities EASTMAN KODAK: Signs Deal Rejecting Century Insurance Policies EASTMAN KODAK: Wins Approval to Reject Contracts With Acro, et al. EASTMAN KODAK: Seeks Court Approval to Assume 174 Contracts EASTMAN KODAK: Seeks Extension to Object to Sec. 503(b)(9) Claims EAT AT JOE'S: Posts $3.3 Million Net Income in Second Quarter EAU TECHNOLOGIES: Incurs $765,000 Net Loss in Second Quarter ECOTALITY INC: Pomerantz Law Firm Files Class Action Suit EL FARMER: Can Access PR Asset Cash Collateral Until Aug. 30 EL FARMER: To Seek Approval of Plan Disclosures on Aug. 30 EMPIRE RESORTS: Incurs $1.1 Million Net Loss in Second Quarter EMPIRE TODAY: Moody's Reviews 'Caa1' CFR After Filing Delay ENDICOTT INTERCONNECT: Bankruptcy Hearing Opens to All Bidders ENERGY SERVICES: Posts $2.9 Million Net income in June 30 Qtr. FINJAN HOLDINGS: Plans to Present at 16th Oppenheimer Conference FIRST NATIONAL: Reports $720,000 Net Income in Second Quarter FLORIDA GAMING: Wins Authority to Use Cash FOREVERGREEN WORLDWIDE: Incurs $5,000 Net Loss in Second Quarter FREESEAS INC: Issues Additional 1 Million Shares to Hanover G&S METAL: Wants $33MM for Insurance Payout Delays GENE CHARLES: Court Confirms Modified Second Chapter 11 Plan GLOBAL CLEAN: Incurs $1.1-Mil. Net Loss in Second Quarter GLOBALSTAR INC: Incurs $126.3 Million Net Loss in Second Quarter GRAND CENTREVILLE: Wants to Use Cash Collateral GRAND CENTREVILLE: Wants to Employ Tavenner & Beran as Counsel GUITAR CENTER: Incurs $30.9 Million Net Loss in 2nd Quarter HIGHWAY TECHNOLOGIES: Sept. 27 Set as General Claims Bar Date HOLT DEVELOPMENT: Wants Until Aug. 29 to Use Cash Collateral HOLT DEVELOPMENT: Files Schedules of Assets and Liabilities IES GLOBAL: S&P Corrects Ratings Release IGPS COMPANY: Wants Case Caption Amended to Reflect Name Change IGPS COMPANY: Committee Can Retain Emerald as Financial Advisors INFUSYSTEM HOLDINGS: Posts $105,000 Net Income in Q2 INTERLEUKIN GENETICS: Stockholders Elect Two Directors INTERNATIONAL COMMERCIAL: Posts $648,900 Net Income in Q2 INVERSIONES ALSACIA: Commences Consent Solicitation, Seeks Waiver IOWORLDMEDIA INC: Incurs $305,000 Net Loss in Second Quarter IPC INTERNATIONAL: Section 341(a) Meeting Scheduled for Sept. 11 IPC INTERNATIONAL: Gets Interim OK for $12MM DIP Loan IRONSTONE GROUP: Incurs $52,000 Net Loss in Second Quarter ISC8 INC: Obtains $3.4 Million Notes Subscription Commitments J.C. PENNEY: Ackman Quits Board Over CEO Search Controversy J.C. PENNEY: Moody's Keeps Ratings over Poor 2nd Qtr. Performance JACKSON HEWITT: Franchisee Stiffed Workers on OT, Suit Says JACKSON HEWITT: Says Bankruptcy Precludes $7MM Suit JAMES RIVER: Commences Exchange Offer for Conv. Senior Notes JEFFERSON COUNTY, AL: Sees Higher Yields, Size on Ch. 9 Exit Bond K-V PHARMACEUTICAL: Key Hearing in Bankruptcy Set KEYUANA LLC: Voluntary Chapter 11 Case Summary KINBASHA GAMING: Posts $779,000 Net Income in June 30 Quarter KINGSBURY CORP: Sept. 25 Hearing on US Trustee's Dismissal Motion KSTW ACQUISITION: Moody's Withdraws Ratings over Kohlberg Pullout LA CUADRA: Case Summary & 8 Unsecured Creditors LANDAUER HEALTHCARE: Can Use Cash On Hand to Fund Ch. 11 Sale LANDAUER HEALTHCARE: Meeting to Form Creditors' Panel on Aug. 26 LEHMAN BROTHERS: UBS Agrees to Pay $120 Million to Settle Claims LIFE CARE: To Hire Continuum Development as Review Consultant LIFE CARE: Creditors Committee Gets OK to Tap Akerman as Counsel LIFE CARE: Files Schedules of Assets and Liabilities LIFE CARE: Amends List of Top Unsecured Creditors LIME ENERGY: Incurs $6.7-Mil. Net Loss in First Quarter MARIA SEEDORFF: Obtains Student Loan Bankruptcy Discharge METROPLAZA HOTEL: Hearing to Approve Plan Outline on Sept. 3 MILAGRO OIL: Incurs $9.3 Million Net Loss in Second Quarter MOSS FAMILY: Can Use Fifth Third's Cash Collateral Thru Oct. 31 MOXIE LIBERTY: S&P Raises Prelim. Rating on $435MM Loan to 'B+' MOUNTAIN PROVINCE: Incurs C$6.3 Million Net Loss in 2nd Quarter NATIONAL ENVELOPE: To Sell Operating Assets to Cenveo for $25MM NATIONAL ENVELOPE: Cenveo Enters Into Agreement to Acquire Assets NEPHROS INC: Reports $671,000 Net Loss in Second Quarter NEW YORK SKYLINE: Breached Part of Empire State Building Lease NYTEX ENERGY: Incurs $576,700 Net Loss in Second Quarter ONCURE HOLDINGS: Chapter 11 Plan of Reorganization Filed ORCHARD SUPPLY: Unit Files Schedules of Assets and Liabilities ORCHARD SUPPLY: Allowed to Implement Incentive Plans ORCHARD SUPPLY: Committee Can Retain Pachulski as Counsel ORCHARD SUPPLY: Committee Can Tap Alvarez as Financial Advisors ORECK CORP: Wants to Employ AAC Consulting to Provide Tax Services ORECK CORP: Can Employ Deloitte Tax as Tax Advisory Consultant OVERSEAS SHIPHOLDING: US Bank Balks at Exclusivity Extension Bid PACIFIC GOLD: Incurs $515,000 Net Loss in Second Quarter PACIFIC THOMAS: Plan Outline Hearing Moved to Sept. 19 PACIFIC THOMAS: Bank of The West Opposes Plan Outline Approval PATRIOT COAL: Bankruptcy Judge Approves Deal with Miners' Union PATRIOT COAL: Welcomes Bankruptcy Appellate Panel Ruling PATRIOT COAL: Peabody Praises Bankruptcy Appellate Panel Ruling PENINSULA HOSPITAL: Trustee Can Use Cash Collateral Until Sept. 30 PENINSULA HOSPITAL: Trustee Can Employ G. Messer as Plan Fiduciary PENINSULA HOSPITAL: SAM Employment to Include Insurance Issues PENINSULA HOSPITAL: Court Denies Motion for Judgment Vs. Trustee PG&E CORP: Says Gas Penalty Would Push Co. to Brink of Bankruptcy POINT CENTER: H. Grobstein Succeeds T. Seaman as Ch. 11 Trustee POLYMER GROUP: Moody's Retains B1 Rating over FiberWeb Deal PREMIER PAVING: Can Continue Using Cash Collateral Until Sept. 1 PURADYN FILTER: Had $474,000 Net Loss in Second Quarter PWK TIMBERLAND: Hearing on Exclusivity Extension Resumes Today QBEX ELECTRONICS: Has Until Aug. 28 to File Chapter 11 Plan QUALITY DISTRIBUTION: Apollo Had 17.4% Equity Stake at March 13 R&K FABRICATING: Trustee May Amend Suit v. Tokio Marine et al RAI STIFF: Case Summary & 2 Unsecured Creditors RAINBOW LAND: Case Now Assigned to Judge Laurel Davis RESIDENTIAL CAPITAL: FHFA Can Sue Ally Despite ResCap Bankruptcy RESPONSE BIOMEDICAL: Posts C$3.3 Million Net Income in 2nd Qtr. REVOLUTION DAIRY: Has Interim OK to Use Cash Collateral to Aug. 22 ROCKWELL MEDICAL: D. Hagelstein Had 4.9% Equity Stake at July 31 SAEXPLORATION HOLDINGS: To Restate Q1 2013 Financial Statements SAND SPRING CAPITAL III: Plan Confirmation Hearing on September 18 SAVE MOST: Wants to Use Cash Collateral Until Sept. 30 SB PARTNERS: Delays Q2 Form 10-Q to Complete Audit SCIENTIFIC LEARNING: Incurs $54,000 Net Loss in Second Quarter SCOOTER STORE: Texas Counties Assert $35,000 in Unpaid Tax Liens SEANERGY MARITIME: Has Until Oct. 28 to Regain NASDAQ Compliance SEVEN COUNTIES: Has Authority to Employ CCRE as Realtor SEVEN COUNTIES: Seeks to Employ Deming Malone as Auditor SHILO INN: Aug. 27 Hearing on Extension of Lease Decision Period SHOTWELL LANDFILL: Ragsdale Liggett to Handle Wake County Matters SHOTWELL LANDFILL: Files Amended Schedules of Assets & Liabilities SHOTWELL LANDFILL: Offers to Fully Pay Creditors in Installments SIERRA NEGRA: Global Water Objects to Approval of 3rd Amended DS SILVERSUN TECHNOLOGIES: Posts $62,000 Net Income in 2nd Quarter SL GREEN: Moody's Affirms 'Ba1' Sr. Debt Rating; Outlook Stable SOUND SHORE: Patient Care Ombudsman Can Hire Neubert as Counsel SPECIALTY PRODUCTS: Loses Bid to Stay $1.1-Bil. Asbestos Ruling SPEEDEMISSIONS INC: Had $111,400 Net Loss in Second Quarter SPIRE CORP: Incurs $1.7 Million Net Loss in Second Quarter STELERA WIRELESS: Wants MOHL as Additional Bankruptcy Counsel STELERA WIRELESS: Wants to Hire CLG as Primary Bankruptcy Counsel STELERA WIRELESS: Files Schedules of Assets and Liabilities STEVE & BARRY'S: Paul Hastings Freed From $50MM Malpractice Case STONE ROSE: Files Disclosure Statement; Metcalf Bank Paid in Full STRATUM HOLDINGS: Incurs $247K Net Loss in Second Quarter SYNAGRO TECHNOLOGIES: Ch 11. Plan, $480MM Buyout Gets Judge's Nod T SORRENTO: Court Confirms Fourth Amended Chapter 11 Plan TEE INVESTMENT: Sept. 24 Hearing on Motion to Convert Case TM REAL: TD Bank Wants to Continue Collecting Payment of Rents TOUSA INC: Court Okays Disputed Claims Reserve TRINITY COAL: Files Essar-Sponsored Reorganization Plan TRINITY COAL: Committee Files Protective Objection to Any Sale TRINITY COAL: Can Borrow Additional $7MM in Revolving Loans TRINSEO SA: Moody's Lowers Corp. Family Rating to 'B2' TRITON AVIATION: S&P Puts 'B-' Rating on CreditWatch Negative TRIUS THERAPEUTICS: Cubist to Buy Trius at $13.50 Apiece VAIL LAKE: Sec. 341 Creditors' Meeting Set for Aug. 27 VELATEL GLOBAL: Delays Form 10-Q for Second Quarter VERSO PAPER: Addresses Additional NYSE Continued Listing Standard VIDEOTRON LTEE: DBRS Confirms 'BB(high)' Issuer Rating VIRTUALSCOPICS INC: Expects to Receive NASDAQ Delisting Notice WOUND MANAGEMENT: Amends Second Quarter Form 10-Q * Keehn Attys Must Face Malpractice Suit, Calif. Court Says * McBride & Collier Ducks Class Cert. Over Fees in Ch. 7 * Morgan Drexen Responds to CFPB Lawsuit Over Data Mining * New York Attorney General Files Lawsuit Against Payday Lenders * Regulator Subpoenas Banks Over Long Warehouse Queues * SAC Allowed by Federal Judge to Keep Operating * U.S. Agrees Not to Prosecute "London Whale" * U.S. Arrests Seven in $140 Million Penny Stock Fraud Case * SEC Charges Former Oppenheimer Manager with Misleading Investors * Accounting Regulator Proposes In-Depth Reports From Auditors * Moody's to Revise US State Outlook to Stable on Better Economy * Moody's Notes Slight Rise in Liquidity-Stress Index as of July * Rise in U.S. Retail Sales Points to Pickup in Spending * National Credit Default Rates Marginally Increased in July * U.S. Mortgage Group Forced to Correct Initiative Stats * U.S. Said to Plan Charges Against Ex-JPMorgan Employees * Bankruptcy Watchdogs Seek Greater Scrutiny of Legal Fees * John Samberg Joins Wolf Rifkin as Partner in Reno Office * McGlinchey's Bankruptcy Lawyers Included in Best Lawyers List * Waller's Bankruptcy Attorneys Included in Best Lawyers List * Recent Small-Dollar & Individual Chapter 11 Filings ********* 2408 W KENNEDY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: 2408 W Kennedy LLC dba The Kennedy 303 S. Melville Avenue Tampa, FL 33606 Bankruptcy Case No.: 13-10798 Chapter 11 Petition Date: August 15, 2013 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Alberto F Gomez, Jr., Esq. MORSE & GOMEZ, PA 119 S. Dakota Avenue Tampa, FL 33606 Tel: (813) 301-1000 E-mail: algomez@morsegomez.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/flmb13-10798.pdf The petition was signed by Christopher B. Scott, managing member. 3PEA INTERNATIONAL: Posts $79,800 Net Income in Second Quarter -------------------------------------------------------------- 3Pea International, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to the Company of $79,839 on $1.20 million of revenues for the three months ended June 30, 2013, as compared with net income attributable to the Company of $1.48 million on $2.54 million of revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company reported net income attributable to the Company of $306,243 on $3.31 million of revenues, as compared with net income attributable to the Company of $1.55 million on $4.03 million of revenues for the same period last year. As of June 30, 2013, the Company had $6.60 million in total assets, $6.80 million in total liabilities and a $197,629 total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/fYLBmq About 3Pea International Henderson, Nev.-based 3Pea International, Inc., is a transaction- based solutions provider. 3PEA through its wholly owned subsidiary 3PEA Technologies, Inc., focuses on delivering reliable and secure payment solutions to help healthcare companies, pharmaceutical companies and payers businesses succeed in an increasingly complex marketplace. After auditing the financial statements for year ended Dec. 31, 2011, Sarna & Company, in Thousand Oaks, California, noted that the Company has suffered recurring losses from operations, which raise substantial doubt about its ability to continue as a going concern. 3Pea International reported net income attributable to the Company of $1.81 million on $6.70 million of revenue for the year ended Dec. 31, 2012, as compared with net income attributable to the Company of $215,291 on $3.30 million of revenue for the year ended Dec. 31, 2011. ACCO BRANDS: Debt Cuts Prompt Moody's to Change Outlook to Stable ----------------------------------------------------------------- Moody's Investors Service changes ACCO Brands Corporation's rating outlook to stable from negative because of the expectation of continued debt reduction, despite ACCO's modest operating performance. All ratings were affirmed, including the Ba3 Corporate Family Rating. "The concerns we expressed last year about ACCO's operating performance weakness have continued, although the pace of contraction is moderating," said Kevin Cassidy, Senior Credit Officer at Moody's Investors Service. "We are stabilizing the outlook despite the risk of further softness in the near term because the company is still generating enough free cash flow to aggressively pay down debt and reduce leverage, measured as debt/EBITDA, to around 4 times by the end of 2013," he said. Ratings affirmed: Corporate Family Rating at Ba3; Probability of Default Rating at Ba3-PD; $500 million Senior Unsecured Notes at B1 (LGD 5, 77% from 80%); Speculative grade liquidity rating at SGL-2 Rating Rationale: ACCO's Ba3 Corporate Family Rating reflects the likeliness of continued debt reduction, good size at around $2 billion, product diversification within office products and solid geographic diversification. The rating also incorporates Moody's expectation of longer term improvements in operating performance, despite weakness in both the Australia/Asia-Pacific region and in the United States as well as in Europe until recently. The rating incorporates the cyclicality and the mature nature of the office and school supplies industry. ACCO serves a consumable segment, about 60% of which is tied to discretionary consumer spending and a durable exposure, which is driven more by business spending but is more vulnerable to cyclicality. Mitigating these factors is ACCO's solid market position within the office supply product categories, double digit operating margins, solid free cash flow generation and good liquidity profile. Moody's also considers the relevance of ACCO to its largest customers as one of only a few global suppliers of office products. The stable outlook reflects Moody's expectation of modest operating performance improvements in the near to mid-term and a continued commitment by the company to pay down debt with free cash flow. The rating could be downgraded if revenue, earnings and cash flow don't stabilize as expected or if the company changes its policy of using its free cash flow to reduce debt. Key credit metrics driving a potential downgrade would be if EBITA margins fell to the high single digits for a prolonged period (presently at 12.7%) or if Debt/EBITDA is sustained above 5 times (currently at 4.6 times, but expected to fall to around 4 times by the end of 2013). The rating is unlikely to be upgraded in the near term given ACCO's modest operating performance trends. Over the longer term, the rating could be upgraded if the company improves its operating performance and continues to reduce debt. Key credit metrics driving a potential upgrade are EBITA margins maintained above 15% and Debt/EBITDA sustained below 3 times. The principal methodology used in rating ACCO was Moody's Global Consumer Durables 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. ACCO Brands Corporation is a leading supplier of branded office products, which are marketed in over 100 countries to retailers, wholesalers, and commercial end-users. The office, school and calendar product lines use name brands such as: AT-A-GLANCE, Day- Timer, Five Star, GBC, Hilroy, Marbig Mead, NOBO, Quartet, Rexel, Swingline, Tilibra and Wilson Jones. The Computer Products Group sells mostly under the Kensington, Microsaver and ClickSafe brand names. Revenue approximated $1.9 billion for the twelve months ending June 30, 2013. ABERDEEN LAND: Wins Final Approval to Hire Advisors --------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida authorized, on a final basis, Aberdeen Land II, LLC, to employ (i) Henry H. Fiskind, Ph.D. and Fishkind & Associates as the Debtor's expert consultants, nunc pro tunc to the Petition Date. (ii) Paul J. Battista, Esq., and the law firm of Genovese Joblove & Battista, P.A., as its general bankruptcy counsel, nunc pro tunc to the Petition Date. (iii) Kapila & Company as the Debtor's financial consultants and accountants, nunc pro tunc to the Petition Date. (iv) Leigh Kellett Fletcher, Esq., and the law firm of Kellerhals Ferguson Fletcher Kroblin, PLLC, as the Debtor's special counsel, nunc pro tunc to the Petition Date. About Aberdeen Land II Aberdeen Land II, LLC, doing business as Aberdeen, owns a 1,316-acre master- planned community near Jacksonville, Florida. The project is designed for 1,623 single-family homes and 395 multi-family units. More than 1,000 units have been sold, leaving Aberdeen with 856 undeveloped lots and 28.1 acres zoned for commercial or residential use. Aberdeen filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 13-04103) on July 1, 2013, in Jacksonville, Florida. The Debtor has tapped Genovese Joblove & Battista, P.A., as counsel, Kapila & Company as accountant, Kellerhals Ferguson Fletcher Kroblin, PLLC, as special counsel, and Fishkind & Associates as expert consultants. The Debtor disclosed $41,165,861 in assets and $30,605,713 in liabilities in its schedules. Aberdeen owes $24 million in bonds that financed the project and more than $20 million to secured lenders with mortgages on the property. AGFEED INDUSTRIES: Enters into Consulting Agreement with G. Leeper ------------------------------------------------------------------ AgFeed USA, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to enter into a consulting agreement with Gerald Leeper, dated July 15, 2013. Under the consulting agreement, Mr. Leeper will provide the Debtors with the following services: (a) review documents and consult with the bankruptcy counsel and other professionals concerning the marketing and sale of the Debtors' assets; (b) coordinate with the professionals the development of due diligence materials for the assets; (c) identify and contact potential purchasers of the assets; (d) maintain records of any communications and provide these records to the Debtors; (e) work with the professionals in reviewing and negotiating the terms of any sale of the assets; and (f) provide assistance in seeking Court approval of any sale of the assets. Upon the closing of a sale of the Debtors' assets, Mr. Leeper will be paid a fee of one-tenth of one percent of the gross selling price of the particular asset sold and any pre-approved out-of- pocket expenses. Although the Debtors propose to employ Mr. Leeper pursuant to Section 363(b) of the Bankruptcy Code, Mr. Leeper nonetheless assures the Court that he neither holds nor represents an interest adverse to the Debtors' estates and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. 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: Taps Keith Maib as Restructuring Officer ----------------------------------------------------------- AgFeed USA, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Mackinac Partners, LLC, as their restructuring advisor, and designate Keith A. Maib as their chief restructuring officer. The hourly billing rates for professionals assigned to the engagement by Mackinac are as follows: James A. Weissenborn, Partner $575 Keith A. Maib, Senior Managing Director $575 Dennis M. Alt, Managing Director $550 Matthew A. Beresh, Managing Director $425 Josh Holley, Director $305 Robert Relief, Analyst $195 In addition, the firm will be reimbursed for any necessary out-of- pocket expenses. Mr. Maib 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. As of July 31, 2013, AgFeed USA has paid Mackinac a $350,000 cash retainer, as well as fees in the aggregate amount of $1,043,286, and expenses in the aggregate amount of $72,734. 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: Employs BDA as Investment Banker --------------------------------------------------- AgFeed USA, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ BDA Advisors, Inc., and its parent company Business Development Asia (HK) Ltd., as investment banker. AgFeed USA retained BDA Advisors to act as the exclusive lead investment banker and financial advisor in connection with a divestiture of AgFeed USA of a large proportion of its assets or a joint venture or other strategic partnership between AgFeed USA and a third party. Under its engagement agreement with AgFeed USA, BDA will be paid $50,000 per month for the first six months of the engagement. BDA will also charge a success fee equivalent to 2.0% of the transaction value, with a minimum success fee of $600,000 per transaction. The firm will also be reimbursed for any reasonable out-of-pocket expenses. AgFeed USA's parent company, AgFeed Industries, previously retained and continues to retain the parent of BDA Advisors, BDA Ltd. to act as its exclusive lead investment banker and financial advisor in connection with the strategic review of the businesses and assets of AgFeed Industries, the possible divestiture, joint venture, or other strategic partnership with a third party, and the refinancing of certain debt facilities. Under the engagement agreement with AgFeed Industries, BDA will be paid a retainer of $20,000 per month for 12 months. A threshold payment of $100,000 was payable in two installments on February and April 2012. AgFeed Industies also issued BDA 200,000 non- cancellable common stock warrants of AgFeed Industries with an exercise price equal to the closing price on the date of grant. Euan Rellie, president of BDA Advisors, Inc., and a senior managing director of Business Development Asia (HK) Ltd., 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. 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: Hires BMC Group as Administrative Advisor ------------------------------------------------------------ AgFeed USA, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ BMC Group, Inc., as administrative advisor. Tinamarie Feil, president of client services for BMC Group, Inc., assures the Court that her firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors. 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. ALLY FINANCIAL: To Buy Back Preferred Stock from U.S. ----------------------------------------------------- Andrew R. Johnson, writing for The Wall Street Journal, reported that Ally Financial Inc. is taking new steps to repay the U.S. government for its financial crisis-era bailout and free itself from federal control. According to the report, the Detroit-based auto-loan maker said it has reached agreements to sell about $1 billion of common stock to investors. The sales would boost Ally's capital levels enough to allow it to buy back $5.9 billion in preferred shares owned by the U.S. Treasury, if regulators approve the transaction. All told, the U.S. government pumped $17.2 billion into Ally during the financial crisis through the Troubled Asset Relief Program, the report related. To date, Ally has repaid about $6.2 billion. "These transactions are key steps in Ally's journey toward repaying the remaining investment by the U.S. taxpayer," Chief Executive Michael Carpenter said in a statement, the report further related. Ally, which began as General Motors Co.'s financing arm, will remain under federal control even after the sales. Assuming the transactions go according to plan, the government's stake in Ally would be reduced to about 65% from 74%, according to the company. About Ally Financial Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/-- is one of the world's largest automotive financial services companies. The Company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3 percent stake. Private equity firm Cerberus Capital Management LP keeps 14.9 percent, while General Motors Co. owns 6.7 percent. Ally Financial Inc. reported net income of $1.19 billion for the year ended Dec. 31, 2012, as compared with a net loss of $157 million during the prior year. AMERICAN AIRLINES: No Breakup Fee Coming If DOJ Blocks $11B Merger ------------------------------------------------------------------ Law360 reported that if American Airlines Inc. and US Airways Group Inc.'s $11 billion merger falls apart on antitrust grounds, don't look for a billion-dollar breakup fee. There isn't one. According to the report, the merger, which was challenged last week by federal and state regulators, though includes termination fees for all the other standard scenarios -- what happens if one airline gets a better offer, if creditors in American's bankruptcy change their mind, if either party breaks its promises under the agreement. The antitrust suit is UNITED STATES OF AMERICA et al v. COMMONWEALTH OF VIRGINIA et al., Case No. 1:13-cv-01236 (D.D.C.). 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 POWER: Had $384,000 Net Loss in June 30 Quarter -------------------------------------------------------- American Power Group Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common shareholders of $384,197 on $2.15 million of net sales for the three months ended June 30, 2013, as compared with a net loss available to common shareholders of $11.69 million on $889,577 of net sales for the same period last year. For the nine months ended June 30, 2013, the Company reported a net loss available to common shareholders of $2.03 million on $4.87 million of net sales, as compared with a net loss available to common shareholders of $13.94 million on $1.85 million of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $10.50 million in total assets, $4.01 million in total liabilities and $6.49 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/HfaoEm About American Power Group American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural GasTM conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 80% of the normal diesel fuel consumption with the average displacement ranging from 40% to 65%. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See additional information at: www.americanpowergroupinc.com. American Power incurred a net loss available to common shareholders of $14.66 million for the year ended Sept. 30, 2012, compared with a net loss available to common shareholders of $6.81 million during the prior year. AMTROL HOLDINGS: 3rd Cir. Defers on State Hazmat Suit Preemption ---------------------------------------------------------------- Law360 reported that the Third Circuit deferred to the U.S. Department of Transportation's finding that federal law preempts private lawsuits that seek to establish state common law requirements for hazardous material packaging, dealing a blow to a wrongful death action brought against Amtrol Holdings Inc. in Delaware bankruptcy court. According to the report, a three-judge panel for the appeals court found that the DOT's finding is entitled to deference under the U.S. Supreme Court's guidance on when to accede to an agency's interpretation of a statute that it administers. About Amtrol Inc. Based in West Warwick, Rhode Island, Amtrol Inc. -- http://www.amtrol.com/-- manufactures and markets water storage and pressure control products, water heaters and cylinders. The company's major products include pressure tanks used in well water, hydronic heating and potable hot water applications, indirect-fired water heaters, and both LPG and disposable refrigerant gas cylinders. The company and three of its affiliates filed for chapter 11 protection on Dec. 18, 2006 (Bankr. D. Del. Lead Case No. 06-11446). The Court confirmed the Debtors' First Amended Joint Plan of Reorganization on May 24, 2007. APPLIED DNA: Incurs $2.1 Million Net Loss in June 30 Quarter ------------------------------------------------------------ Applied DNA Sciences, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.13 million on $644,842 of revenues for the three months ended June 30, 2013, as compared with a net loss of $1.42 million on $528,574 of revenues for the same period last year. For the nine months ended June 30, 2013, the Company reported a net loss of $13.96 million on $1.30 million of revenues, as compared with a net loss of $5.38 million on $1.56 million of revenues for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $3.84 million in total assets, $1.53 million in total liabilities and $2.30 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/qnrmaV About Applied DNA Stony Brook, N.Y.-based Applied DNA Sciences, Inc., is principally devoted to developing DNA embedded biotechnology security solutions in the United States. The Company's shares of common stock are quoted on the OTC Bulletin Board under the symbol "APDN." Applied DNA incurred a net loss of $7.15 million for the year ended Sept. 30, 2012, compared with a net loss of $10.51 million for the year ended Sept. 30, 2011. ARI-RC 3: Cash Collateral Hearing Continued to Sept. 11 ------------------------------------------------------- ARI-RC 3, LLC, et al., entered into a stipulation continuing the hearing dates and briefing deadline on the Debtors' (i) emergency motion authorizing use of cash collateral; and (ii) emergency motion to implement and maintain the proposed cash management system. The stipulation, entered among the Debtors, U.S. Bank, National Association, as lender, and the Office of the U.S. Trustee, provides that, among other things, the final hearing will be continued from Sept. 5, 2013, to Sept. 11, at 10 a.m. or such further date and later date as is convenient with the Court's schedule. The Court will consider approval of the stipulation at a hearing on Sept. 5. On Aug. 7, the Court entered an interim order authorizing the Debtors' interim use of cash collateral to pay all of the operational expenses and set a Sept. 5 final hearing. The Debtors are authorized to deviate from the line items contained in the budget by not more than 10%, on both a line-item and aggregate basis, unless the Lender consents otherwise. As adequate protection from any diminution in value of the lender's collateral, the Debtors will grant the lender replacement liens on the postpetition rents, revenues, issues and profits of each of the Debtors, with such replacement liens to have the same extent, validity, scope, and priority as its prepetition liens. About ARI-RC 3, LLC Steamboat Springs, Colorado-based ARI-RC 3, LLC, et al., filed for Chapter 11 protection on Aug. 1, 2013, (Bankr. C. D. Calif. Lead Case No. 13-15108). John-Patrick M. Fritz, Esq., at Levene Neale Bender Rankin et al., represents the Debtor in its restructuring effort. The Debtors estimated assets at $10 million to $50 million as of the Chapter 11 filing. The petitions were signed by R. Frederick Hodder, Jr. and Monroe Sawhill Hodder, trustees. Some of their affiliates sought Chapter 11 protection on Aug. 2, 2013, while other sought Chapter 11 protection on July 15, 2013. ARI-RC 3: U.S. Bank Wants Relief of Stay in Thousand Oaks Property ------------------------------------------------------------------ U.S. Bank National Association asks the U.S. Bankruptcy Court for the Central District of California for relief from the automatic stay to exercise its rights with respect to ARI-RC 3, LLC, et al.'s property located at 1525 and 1535 Rancho Conejo Boulevard, Thousand Oaks, California. U.S. Bank explains that the Debtor has no equity in the property and is not necessary to an effective reorganization. U.S. Bank, as Trustee for the Registered Holders of ML-CFC Commercial Mortgage Trust 2007-5, Commercial Mortgage Pass-Through Certificates, Series 2007-5, by and through CWCapital Asset Management LLC, solely in its capacity as Special Servicer, is the only creditor in the Debtors' cases. Keith C. Owens, Esq. -- kowens@venable.com -- at Venable LLP represents U.S. Bank. The Court will consider the motion at a Sept. 25, 2013, hearing at 10 a.m. About ARI-RC 3, LLC Steamboat Springs, Colorado-based ARI-RC 3, LLC, et al., filed for Chapter 11 protection on Aug. 1, 2013, (Bankr. C. D. Calif. Lead Case No. 13-15108). John-Patrick M. Fritz, Esq., at Levene Neale Bender Rankin et al., represents the Debtor in its restructuring effort. The Debtors estimated assets at $10 million to $50 million as of the Chapter 11 filing. The petitions were signed by R. Frederick Hodder, Jr. and Monroe Sawhill Hodder, trustees. Some of their affiliates sought Chapter 11 protection on Aug. 2, 2013, while other sought Chapter 11 protection on July 15, 2013. ASHTON GROVE: Seeks to Employ Streusand Landon as Counsel --------------------------------------------------------- Ashton Grove, L.C., seeks authority from the U.S. Bankruptcy Court for the Western District of Texas, Midland Division, to employ Streusand, Landon & Ozburn, LLP, as primary bankruptcy counsel. Sabrina L. Streusand, Esq., partner at SLO, will act as lead attorney for the Debtor in the Chapter 11 case. SLO received a total retainer of $20,000 from the Debtor prior to the Petition Date. Of that retainer, $10,000 was used to pay fees and expenses incurred prepetition. As of the Petition Date, the firm has a remaining credit balance held in its trust account in favor of the Debtor for future professional services to be performed, and expenses incurred, in the approximate amount of $10,000. Each month following the Petition Date, on behalf of the Debtor, W. Dow Hamm, Jr., the Debtor's founder, will transfer an additional $10,000 to SLO for deposit in the firm's client trust account to augment the initial retainer. WDH Jr. will continue to makes these monthly deposits as long as the Chapter 11 case is pending. The primary attorneys and parelegals who will represent the Debtor and their current standard hourly rates are the following: Sabrina L. Streusand, Esq. $400 G. James Landon, Esq. -- landon@slollp.com $390 Seth E. Meisel, Esq. -- meisel@streusandlandon.com $325 Richard D. Villa, Esq. -- villa@slollp.com $325 Arlana L. Prentice, Paralegal $175 The firm will also be reimbursed for any necessary out-of-pocket expenses. Ms. Streusand assures the Court that her 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 Debtor and its estate. Midland, Texas-based Ashton Grove, L.C., sought protection under Chapter 11 of the Bankruptcy Code on Aug. 12, 2013 (Bankruptcy Case No.: 13-70104, Bankr. W.D. Tex.). Judge Ronald B. King oversees the case. ASHTON GROVE: Section 341(a) Meeting Set on September 10 -------------------------------------------------------- A meeting of creditors in the bankruptcy case of Ashton Grove, L.C., will be held on Sept. 10, 2013, at 11:00 a.m. at Midland Room 124. Creditors have until Dec. 9, 2013, to submit their proofs of claim. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Ashton Grove, L.C., filed a bare-bones Chapter 11 petition (Bankr. W.D. Tex. Case No. 13-70104) in Midland, Texas, on Aug. 12. Sabrina L. Streusand, Esq., at Streusand Landon & Ozburn, LLP, in Austin, serves as counsel. The Debtor estimated at least $10 million in assets and less than $10 million in liabilities. Judge Ronald B. King presides over the case. The petition was signed by William Dow Hamm, III, board chairman/president of W. Dow Hamm III Corp. ATLANTIC POWER: DBRS Lowers Issuer Rating to 'B(high)' ------------------------------------------------------ DBRS has downgraded the Issuer Rating and the Senior Unsecured Debt & Medium-Term Notes of Atlantic Power Limited Partnership (APLP) to B (high) from BB, and the rating of Atlantic Power Preferred Equity Ltd.'s Cumulative Preferred Shares to Pfd-5 (high) from Pfd-4. The trends on all ratings are now Negative. The ratings of APLP are based on the credit quality of Atlantic Power Corporation (ATP or the Company; not rated by DBRS) given that APLP guarantees the majority of ATP's debt at the holding company level (22% of consolidated debt as at June 30, 2013). On May 28, 2013, DBRS placed the ratings Under Review with Negative Implications. The rating action reflected DBRS's concerns about (1) the continued challenging market environment and its impact on ATP's credit risk profile and (2) weaker liquidity as the Company faces difficulty accessing the equity market. The Company recently released its Q2 2013 financial results, which were relatively weak due to the ongoing weak electricity pricing fundamentals, negatively affecting the profitability of ATP's merchant portfolio and its ability to renew power contracts when they are due in certain markets. As a result, the Company's credit metrics have weakened and are no longer consistent with the "BB" range rating. The Negative trend reflects DBRS's view that the Company's key ratios could weaken further as a meaningful recovery of the wholesale power market will be challenging. The wholesale electricity market outlook remains weak and creates uncertainties associated with the renewal of certain long-term contracts, such as Selkirk (expires in August 2014), Tunis (December 2014) and Greeley (August 2013). In the absence of business environment improvement, ATP will likely have to execute a combination of the following to improve its financial profile: (1) capital and operating expense spending curtailment, (2) dividend reduction and (3) further asset sales. If ATP is successful in implementing a sustainable recovery, which would be largely influenced by the timing of the electricity price recovery, DBRS could consider changing the trend to Stable. However, should ongoing weak business fundamentals remain and key financial metrics deteriorate further, DBRS will likely take a further negative rating action. DBRS acknowledges that ATP successfully executed an amendment to its senior credit facility on August 2, 2013. However, liquidity decreased significantly. Under the amended credit facility, the borrowing capacity was reduced to $150 million from $300 million and ATP is required to maintain at all times unrestricted cash and cash equivalents of at least $75 million as security for the credit facility. Furthermore, the Company anticipates that it may not meet the provision under its 9% senior unsecured notes requiring its fixed-charge coverage ratio to be no less than 1.75x to 1.00x during the third quarter of 2014. ATP is currently considering various initiatives to maintain compliance with this covenant, including debt reduction, expense reduction and asset optimization. The rating benefits from long-term power contracts (over 90% of ATP's generation assets), providing cash flow stability. In addition, during 2013, ATP completed the sale of certain projects (see the rating report dated May 31, 2013, for more detail). DBRS views the divestitures as a moderately positive factor as the majority of the projects sold had power purchase agreements expiring in 2013 and a portion of the proceeds were used to repay the outstanding borrowings under the senior credit facility. ATP OIL: Files Schedules of Assets and Liabilities -------------------------------------------------- ATP Oil & Gas Corporation delivered to the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, its schedules of assets and liabilities disclosing: A. Real Property N/A B. Personal Property B.1 Cash on hand $200 B.2 Bank Accounts 9,189,575 B.3 Security Deposits with public utilities 9,235,273 B.9 Interests in insurance policies 5,450,000 B.13 Stock and interests 892,154,554 B.16 Accounts receivable 757,253,246 B.28 Office equipment, furnishings, and supplies 268,513 B.29 Machinery, fixtures, equipment & supplies 1,291,424,568 TOTAL SCHEDULED ASSETS $2,964,975,931 =========================================================== C. Property Claimed as Exempt D. Creditors Holding Secured Claims $2,032,708,051 E. Creditors Holding Unsecured Priority Claims 9,921 F. Creditors Holding Unsecured Nonpriority Claims 754,946,327 TOTAL SCHEDULED LIABILITIES $2,787,664,299 =========================================================== Full-text copies of the Schedules are available for free at: http://bankrupt.com/misc/ATPOILsal0801.pdf About ATP Oil Houston, Tex.-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-36187) on Aug. 17, 2012. Attorneys at Mayer Brown LLP, serve as bankruptcy counsel. Munsch Hardt Kopf & Harr, P.C., is the conflicts counsel. Motley Rice LLC and Fayard & Honeycutt, APC serve as special counsel. Opportune LLP is the financial advisor and Jefferies & Company is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. ATP disclosed assets of $3.6 billion and $3.5 billion of liabilities as of March 31, 2012. Debt includes $365 million on a first-lien loan where Credit Suisse AG serves as agent. There is $1.5 billion on second-lien notes with Bank of New York Mellon Trust Co. as agent. ATP's other debt includes $35 million on convertible notes and $23.4 million owing to third parties for their shares of production revenue. Trade suppliers have claims for $147 million, ATP said in a court filing. An official committee of unsecured creditors has been appointed in the case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley & McCloy, in New York, represents the Creditors Committee as counsel. A 7-member panel of equity security holders has also been appointed in the case. Kyung S. Lee, Esq., and Charles M. Rubio, Esq. of Diamond McCarthy LLP, in Houston, Texas, serve as counsel to the Equity Committee. ATP is seeking court approval to sell substantially all of its Deepwater Assets and Shelf Property Assets. AVIS BUDGET: Supplemental Indenture No Impact on Moody's Ratings ---------------------------------------------------------------- Moody's Investors Service reports that the execution of the Supplemental Indenture No. 3 to the Second Amended and Restated Base Indenture, the Fourth Amendment to the Amended and Restated Master Motor Vehicle Finance Lease Agreement, the Third Amendment to the Amended and Restated Loan Agreement, the Fourth Amendment to the Second Amended and Restated Master Motor Vehicle Operating Lease Agreement, the Third Amendment to the Second Amended and Restated Loan Agreement, and the First Amendment to the Second Amended and Restated Administration Agreement (together, the Amendments), each dated as of 16 August, 2013, in and of themselves and at this time, will not result in a reduction, withdrawal, or placement under review for possible downgrade of any of the ratings currently assigned to the outstanding series of notes (the Outstanding Notes) issued by Avis Budget Rental Car Funding (AESOP) LLC, an affiliate of Avis Budget Car Rental, LLC (B2) (Avis). Rationale: Among other changes, the Amendments permit AESOP to acquire previously used cars and lease such cars to Avis. The maximum amount of used cars permitted to be leased is currently limited to 5% of the net book value of the vehicles. In addition, the Amendments modify the depreciation rate for non-program vehicles from a fixed rate of 1.67% to a rate of at least 1.67%, which reflects the current operating process. Used vehicles will be depreciated at higher rates than comparable vehicles acquired new directly from their manufacturers. A higher depreciation rate lowers the net book value of the fleet's vehicles, thereby effectively increasing credit enhancement available to investors. These changes modify the rental program in a manner consistent with Avis' Canadian rental car program, WTH Car Rental ULC. As a result, Moody's believed that the execution of the Amendments did not have an adverse effect on the credit quality of the Outstanding Notes such that their Moody's ratings were impacted. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have significant effect on yield and/or other payments to investors. This press release should not be taken to imply that there will be no adverse consequence for investors since in some cases such consequences will not impact the rating. The principal methodology used in this rating was "Moody's Global Approach to Rating Rental Car ABS and Rental Truck ABS," published in July 2011. AXESSTEL INC: Incurs $2.5 Million Net Loss in Second Quarter ------------------------------------------------------------ Axesstel, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.52 million on $1.21 million of revenues for the three months ended June 30, 2013, as compared with net income of $895,511 on $15.53 million of revenues for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $2.44 million on $11.34 million of revenues, as compared with net income of $1.36 million on $27.56 million of revenues for the same period during the prior year. Axesstel disclosed net income of $4.31 million for the year ended Dec. 31, 2012, as compared with net income of $1.09 million during the prior year. As of June 30, 2013, the Company had $16.36 million in total assets, $25.39 million in total liabilities and a $9.02 million total stockholders' deficit. Clark Hickock, CEO of Axesstel, stated, "The second quarter of 2013 was a 'perfect storm' for Axesstel, with several issues hitting us all at the same time. We experienced a drop in sales of our traditional products, a delay in the launch of our new product lines, and slow collection of receivables that impacted our cash and working capital position. While we did not anticipate the timing or concurrence of these events, they are each known risks inherent to our business, and we are aggressively managing our way through them. At the same time, and despite the launch delays, our new Home Alert products have generated opportunities that will be very significant if we can convert them to firm orders." "If we are unable generate sufficient revenues to pay our expenses and our other existing sources of cash are insufficient to fund our activities, we will need to raise additional funds to continue our operations. We do not currently have any arrangements in place to provide additional funds. If needed, those funds may not be available on favorable terms, or at all. Furthermore, if we issue equity or debt securities to raise additional funds, our existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences and privileges senior to those of our existing stockholders. If we are unsuccessful in achieving and sustaining profitability, and cannot obtain additional funds on commercially reasonable terms or at all, we may be required to curtail significantly or cease our operations. These factors raise substantial doubt about our ability to continue as a going concern," the Company said in the quarterly report. A copy of the Form 10-Q is available for free at: http://is.gd/WiPMZN About Axesstel Axesstel Inc., based in San Diego, Calif., develops fixed wireless voice and broadband access solutions for the worldwide telecommunications market. The Company's product portfolio includes fixed wireless phones, wire-line replacement terminals, and 3G and 4G broadband gateway devices used to access voice calling and high-speed data services. BANKERS 4 REAL: Case Summary & 5 Unsecured Creditors ---------------------------------------------------- Debtor: Bankers 4 Real Estate, LLC aka Bankers For Real Estate, LLC c/o Nyberg Financial 2163 Newcastle Ave., Ste. 150 Cardiff, CA 92007 Bankruptcy Case No.: 13-08193 Chapter 11 Petition Date: August 15, 2013 Court: United States Bankruptcy Court Southern District of California (San Diego) Judge: Margaret M. Mann Debtor's Counsel: Theron S. Covey, III, Esq. COVEY LAW, PC 3667 Voltaire Street San Diego, CA 92106 Tel: (619) 241-2860 Fax: (619) 222-3667 E-mail: tcovey@coveylawpc.com Scheduled Assets: $7,812,511 Scheduled Liabilities: $6,178,509 A copy of the Company's list of its largest unsecured creditors, filed together with the petition, is available for free at http://bankrupt.com/misc/casb13-8193.pdf The petition was signed by Tamer Salameh, managing member. BEAR STEARNS: U.S. Steps Up JPMorgan Probe Over Mortgage Bonds -------------------------------------------------------------- Emily Flitter, Karen Freifeld and David Henry, writing for Reuters, reported that the U.S. Department of Justice has stepped up a probe in recent weeks into Bear Stearns mortgage dealings in the run-up to the financial crisis, adding to JPMorgan Chase & Co's legal problems, according to three sources familiar with the situation. JPMorgan bought failing Bear Stearns with government encouragement during the financial crisis in 2008, but then became embroiled in private lawsuits by mortgage bond insurers alleging that home loans underlying securities were rotten from the start. According to the report, the probe, news of which was first reported by Reuters in February, has picked up steam in recent weeks, the report related. Justice Department officials have taken sworn testimony from at least three people, including former Bear Stearns employees, about mortgage-backed securities, according to one of the sources. A spokeswoman for the Justice Department declined to comment and a JPMorgan spokesman declined to comment, the report said. The developments follow new mortgage-related investigations by the Eastern District of California, the report further related. All are fresh obstacles for CEO Jamie Dimon who is striving to restore the bank's reputation for controlling risks after losing more than $6.2 billion in 2012 on its so-called "London Whale" derivatives trades. About Bear Stearns New York City-based The Bear Stearns Companies Inc. (NYSE: BSC) -- http://www.bearstearns.com/-- was a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The investment bank collapsed in 2008 and was sold in a distressed sale to JPMorgan Chase in a transaction backed by the U.S. government. Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. were open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On August 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. BELLE FOODS: Committee Retains CohnReznick as Financial Advisors ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Alabama authorized the Official Committee of Unsecured Creditors of Belle Foods, LLC, to retain CohnReznick LLP as financial advisors to the Committee, nunc pro tunc to July 23, 2013. The Committee believes that CohnReznick is a "disinterested person" as that term is defined in Sec. 101(14) of the Bankruptcy Code. CohnReznick will provide accounting and financial advisory services to the Committee including reviewing and understanding the Debtor's prepetition financing structure, the Debtor's corporate structure, the Debtor's corporate structure and the acquisition of substantially all of its assets from Southern Family Markets, monitor the Debtor's postpetition operations, and understand the Debtor's accounting and cash management system. CohnReznick's current standard hourly rates are: Partner/Senior Partner $585 - $800 Manager/Senior Manager/Director $435 - $620 Other Professional Staff $275 - $410 Paraprofessional $185 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. Attorneys at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama, and Otterbourg Steindler Houston & Rosen, P.C., in New York, serve as co-counsel to the Official Committee of Unsecured Creditors. BELLE FOODS: Committee Retains Haskell Slaughter as Co-Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Alabama authorized the Official Committee of Unsecured Creditors of Belle Foods, LLC, to retain R. Scott Williams, Esq., and Jennifer B. Kimble, Esq., and the law firm of Haskell Slaughter Young & Rediker, LLC, as co-counsel to the Committee, nunc pro tunc to July 23, 2013. HSYR will represent the Committee in all respects in this bankruptcy case and to undertake all actions as the Committee may direct as it relates to the investigation of the Debtor's affairs, acquisition of assets, financing and proposed sales as well as in any pending federal and state court actions or potential claims against the estate, and to bring actions and asset such claims as the Committee deems appropriate in order to properly protect the interests of creditors. HSYR will share the engagement of the Committee with Otterbourg, Steindler, Houston & Rosen, P.C. Hourly rates for HSYR's professional expected to perform work in this engagement are: R. Scott Williams, Esq. $375 Jennifer B. Kimble, Esq. $250 Associates $150 - $225 Paralegal Services $95 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. Attorneys at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama, and Otterbourg Steindler Houston & Rosen, P.C., in New York, serve as co-counsel to the Official Committee of Unsecured Creditors. BELLE FOODS: Creditors Committee Retains OSHR as Co-Counsel ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Alabama authorized the Official Committee of Unsecured Creditors of Belle Foods, LLC, to retain Otterbourg, Steindler, Houston & Rosen, P.C., as co-counsel to the Committee, nunc pro tunc to July 23, 2013. OSH&R will provide, among others, these professional services: -- to assist and advise the Committee in its consultation with the Debtor relative to the administration of these cases; -- to attend meetings and negotiate with the representatives of the Debtor and other parties in interest; -- to assist and advise the Committee in its examination and analysis of the conduct of the Debtor's affairs; -- to assist the Committee in the review, analysis and negotiation of any plan of reorganization, asset disposition proposals that have been and may be filed; and -- to assist eh Committee in the review, analysis; and negotiation of any disclosure statement accompanying any plan of reorganization. OHS&R will share the engagement of the Committee with Haskell Slaughter Young & Rediker, LLC. The Committee believes that OHS&R are "disinterested persons" as that term is defined in Sec. 101(14) of the Bankruptcy Code. Hourly rates for OHS&R professionals expected to perform work under this engagement are: Scott L. Hazan, Esq. $940 David M. Posner, Esq. $795 Gianfranco Finizio, Esq. $375 Partners/Counsel $550 - $940 Associates $265 - $645 Paraprofessional Services $235 - $250 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. Attorneys at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama, and Otterbourg Steindler Houston & Rosen, P.C., in New York, serve as co-counsel to the Official Committee of Unsecured Creditors. BIOFUEL ENERGY: Incurs $4.7 Million Net Loss in Second Quarter -------------------------------------------------------------- BioFuel Energy Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $4.73 million on $91.03 million of net sales for the three months ended June 30, 2013, as compared with a net loss of $12.41 million on $122.82 million of net sales for the same period last year. For the six months ended June 30, 2013, the Company incurred a net loss of $10.06 million on $180.07 million of net sales, as compared with a net loss of $23.50 million on $262.23 million of net sales for the same period a year ago. Biofuel Energy disclosed a net loss of $46.32 million on $463.28 million of net sales for the year ended Dec. 31, 2012, as compared with a net loss of $10.36 million on $653.07 million of net sales during the prior year. As of June 30, 2013, the Company had $239.65 million in total assets, $194.20 million in total liabilities and $45.44 million in total equity. A copy of the Form 10-Q is available for free at: http://is.gd/2BwSZZ About Biofuel Energy Denver, Colo.-based BioFuel Energy Corp. (Nasdaq: BIOF) -- http://www.bfenergy.com/-- aims to become a leading ethanol producer in the United States by acquiring, developing, owning and operating ethanol production facilities. It currently has two 115 million gallons per year ethanol plants in the Midwestern corn belt. Grant Thornton LLP, in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company incurred a net loss of $46.3 million during the year ended Dec. 31, 2012, is in default under the terms of the Senior Debt Facility, and has ceased operations at its Fairmont ethanol facility. These conditions, among other matters, raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "Although the Company intends to diligently explore and pursue any number of strategic alternatives, we cannot assure you that it will be able to do so on terms acceptable to the Company or to the lenders under the Senior Debt Facility, if at all. In addition, in either the case of a transfer of the assets of the Operating Subsidiaries to the lenders under the Senior Debt Facility or a sale of one or both of our plants ... we cannot assure you as to what value, if any, may be derived for shareholders of the Company from such transfer or sale. The lenders under the Senior Debt Facility could also elect to exercise their remedies under the Senior Debt Facility and take possession of their collateral, which could require us to seek relief through a filing under the U.S. Bankruptcy Code," according to the Company's annual report for the year ended Dec. 31, 2012. BIOANALYTICAL SYSTEMS: Gets Nasdaq Listing Non-Compliance Notice ---------------------------------------------------------------- Bioanalytical Systems, Inc. on Aug. 21 disclosed that on August 15, 2013, the Company received a letter from the Nasdaq Listing Qualifications Department stating that the Company no longer complies with the Listing Rules for continued listing of the Company's common shares on the Nasdaq Capital Market since the Company has not yet filed its Form 10-Q for the period ended June 30, 2013 with the Securities and Exchange Commission. The Letter further stated that, under the listing rules, the Company has until October 14, 2013 to submit a plan to regain compliance. If the Company's plan is accepted, the Company may be granted an exception of up to 180 calendar days from the initial filing's due date, or until February 10, 2014, to regain compliance. The Company intends to comply with the dates given above in order to regain compliance with the listing rules. On August 14, 2013, the Company filed a 12b-25 indicating that the Company could not, without unreasonable effort or expense, file its Form 10-Q for the three and nine months ended June 30, 2013 by the original due date of August 14, 2013 until management could resolve a complex accounting issue related to the accounting treatment for the outstanding warrants. Non-Reliance on Previously Issued Financial Statements On August 19, 2013, the Audit Committee of Bioanalytical Systems, in consultation with management, concluded that, because of an error identified in the Company's previously issued financial statements for the fiscal years ended September 30, 2011, September 30, 2012 and the first two fiscal quarters of 2013, the Company should restate its previously issued financial statements for the relevant periods. Accordingly, investors should no longer rely upon the Company's previously released financial statements and related auditors' reports for these periods or any earnings releases or other communications relating to these periods. The error, identified by management, is related to the accounting for the Class A and B Warrants as part of the May 2011 public offering. At the time of the transaction, the Company incorrectly recorded the fair value of the warrants as equity. The proper treatment under ASC 815-40 would have been to record the fair value of the warrants as a liability due to the provision in Section 3e of the Common Stock Purchase Warrant that could require net cash settlement of the warrants. The Audit Committee and management have discussed the matters reported herein with the Company's prior and current independent registered accounting firms, as applicable. The Audit Committee, with the assistance of independent counsel, is conducting an investigation into the circumstances surrounding the error. The Company is evaluating the debt covenants at each reporting period and expects to be in breach of the tangible net worth ratios in fiscal 2013. The Company is communicating with its lenders to obtain waivers for the applicable periods, if necessary. The Company expects all amendments and restatements to the financial statements affected to be non-cash in nature. The Company has determined that the restatements of its financial statements resulted from a material weakness in its internal control over financial reporting, specifically related to its process and procedures related to the accounting for stock purchase warrants. The Company has been actively engaged in developing a remediation plan to address the material weakness. Implementation of the remediation plan is in process and consists of, among other things, redesigning the procedures to enhance its identification, capture, review, approval and recording of contractual terms included in equity arrangements. The Company also intends to seek the counsel of other experts in accounting before discussions with its auditors on future unusual and non- recurring transactions. Until the Company has restated and reissued its results for the applicable periods, investors and other users of the Company's SEC filings are cautioned not to rely on the Company's financial statements for (i) the quarterly periods ended June 30, and September 30, 2011, (ii) the annual period ended September 30, 2012, and (iii) the quarterly periods ended December 31, 2012 and March 31, 2013. A copy of the detailed restatements of its financial statements is available for free at http://is.gd/LWYuvN About Bioanalytical Systems, Inc. BASi -- http://www.BASinc.com-- is a pharmaceutical development company providing contract research services and monitoring instruments to the world's leading drug development companies and medical research organizations. The company focuses on developing innovative services and products that increase efficiency and reduce the cost of taking a new drug to market. BIRDSALL SERVICES: Trustee Says Execs Must Pay for Firm's Damages ----------------------------------------------------------------- Law360 reported that Birdsall Services Group Inc.'s bankruptcy trustee wants the company's former executives to pay for "substantial damage" the firm incurred after sliding into bankruptcy thanks to a pay-to-play scheme, telling a New Jersey court that top brass purposefully ignored the illegal activity. According to the report, Trustee Erwin H. Stier slammed the former executives in an adversary complaint, saying they neglectfully lacked a compliance program to ensure they complied with New Jersey's pay-to-play law. About Birdsall Services Birdsall Services Group Inc., an engineering firm from Eatontown, New Jersey, filed for Chapter 11 protection (Bankr. D.N.J. Case No. 13-16743) on March 29, 2013, when the state attorney general indicted the business and obtained a court order seizing the assets. Birdsall was accused by the state of violating laws prohibiting so-called pay-to-play, where businesses make political contributions in return for government contracts. The state charged that the company arranged for individuals to make contributions and then reimbursed the employees. A company officer pleaded guilty last year to making political contributions disguised to appear as though made by individuals. The Chapter 11 petition filed in Trenton, New Jersey, disclosed assets of $41.6 million and liabilities totaling $27 million. Debt includes $3.6 million owing to a bank on a secured claim and $2.4 million in payables to trade suppliers. In April 2013, Birdsall reached a $3.6 million settlement that ended New Jersey's opposition to the company's bankruptcy and resolves the state's lawsuit aiming to seize Birdsall's assets. As part of the settlement, Edwin Stier, a member of Stier Anderson, was appointed as Chapter 11 trustee for Birdsall. BMB MUNAI: Incurs $543,000 Net Loss in June 30 Quarter ------------------------------------------------------ BMB Munai, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $543,337 on $0 of revenues for the three months ended June 30, 2013, as compared with a net loss of $750,314 on $0 of revenues for the same period last year. BMB Munai incurred a net loss of $3.08 million for the year ended March 31, 2013, as compared with a net loss of $139.21 million for the year ended March 31, 2012. The Company's balance sheet at June 30, 2013, showed $10.08 million in total assets, $9.08 million in total liabilities, all current, and $1 million in total shareholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/KkQuew About BMB Munai Based in Almaty, Kazakhstan, BMB Munai, Inc., is a Nevada corporation that originally incorporated in the State of Utah in 1981. Since 2003, its business activities have focused on oil and natural gas exploration and production in the Republic of Kazakhstan through its wholly-owned operating subsidiary Emir Oil LLP. Emir Oil holds an exploration contract that allows the Company to conduct exploration drilling and oil production in the Mangistau Province in the southwestern region of Kazakhstan until January 2013. The exploration territory of its contract area is approximately 850 square kilometers and is comprised of three areas, referred to herein as the ADE Block, the Southeast Block and the Northwest Block. Hansen, Barnett & MAaxwell, P.C., in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2013. The independent auditors noted that BMB Munai has no continuing operations that result in positive cash flow. This situation raises substantial doubt about its ability to continue as a going concern. BROADWAY FINANCIAL: Reports $228,000 Net Loss in 2nd Quarter ------------------------------------------------------------ Broadway Financial Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $228,000 on $4.06 million of total interest income for the three months ended June 30, 2013, as compared with net income of $1.69 million on $5.18 million of total interest income for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $844,000 on $8.08 million of total interest income, as compared with net income of $1.85 million on $10.67 million of total interest income for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $345.19 million in total assets, $328.61 million in total liabilities and a $16.58 million in total shareholders' equity. Chief Executive Officer, Wayne Bradshaw stated, "During the first half of 2013, we continued to make significant improvements in our asset quality that are allowing us to begin refocusing on rebuilding our loan portfolio, as our capital permits, and generating growth in net interest income. These latest improvements reflected three bulk loan sales that we completed in the first six months of 2013: two of which closed during the first quarter, and the third closed early in the second quarter. In addition, we completed other sales of problem loans and REO during the second quarter to further reduce problem assets and position the Bank for growth." A copy of the Form 10-Q is available for free at: http://is.gd/izRGJk About Broadway Financial Los Angeles, Calif.-based Broadway Financial Corporation was incorporated under Delaware law in 1995 for the purpose of acquiring and holding all of the outstanding capital stock of Broadway Federal Savings and Loan Association as part of the Bank's conversion from a federally chartered mutual savings association to a federally chartered stock savings bank. In connection with the conversion, the Bank's name was changed to Broadway Federal Bank, f.s.b. The conversion was completed, and the Bank became a wholly owned subsidiary of the Company, in January 1996. The Company is currently regulated by the Board of Governors of the Federal Reserve System. The Bank is currently regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. Broadway Financial disclosed net income of $588,000 on $19.89 million of total interest income for the year ended Dec. 31, 2012, as compared with a net loss of $14.25 million on $25.11 million of total interest income during the prior year. Crowe Horwath LLP, in Sacramento, California, 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 tax sharing liability to its consolidated subsidiary that exceeds its available cash, the Company is in default under the terms of a $5 million line of credit with another financial institution lender in which the stock of its subsidiary bank, Broadway Federal Bank is held as collateral for the line of credit and the Company and the Bank are both under formal regulatory agreements. Furthermore, the Company and the Bank are not in compliance with these agreements and the Company's and the Bank's capital plan that was submitted under the agreements has been preliminarily approved subject to completion of its recapitalization. Failure to comply with these agreements exposes the Company and the Bank to further regulatory sanctions that may include placing the Bank into receivership. These matters raise substantial doubt about the ability of Broadway Financial Corporation to continue as a going concern. BROWNIE'S MARINE: Had $425,700 Net Income in Second Quarter ----------------------------------------------------------- Brownie's Marine Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $425,783 on $592,635 of total net revenues for the three months ended June 30, 2013, as compared with a net loss of $301,277 on $750,489 of total net revenues for the same period last year. For the six months ended June 30, 2013, the Company incurred a net loss of $766,123 on $1.18 million of total net revenues, as compared with a net loss of $742,478 on $1.35 million of total net revenues for the same period a year ago. As of June 30, 2013, the Company had $1.15 million in total assets, $1.84 million in total liabilities and a $692,402 total stockholders' deficit. Going Concern/Bankruptcy Warning During the fourth quarter of 2011, the Company formed a joint venture with one dive entity, and in the first quarter of 2012, purchased the assets of another, with assumption of their retail location lease. The Company accomplished both transactions predominantly through issuance of restricted common stock in BWMG. The Company believed these transactions would help generate sufficient working capital in the future. However, to-date neither generated profit or cash-flow. Effective May 31, 2013, the Company closed and ceased operations at its retail facility. The Company is still involved in the joint venture. As a result, the Company does not expect that existing cash flow will be sufficient to fund presently anticipated operations beyond the third quarter of 2013. This raises substantial doubt about BWMG's ability to continue as a going concern. The Company will need to raise additional funds and is currently exploring alternative sources of financing. "We have issued a number of convertible debentures as an interim measure to finance our working capital needs... and may continue to raise additional capital through sale of restricted common stock or other securities," the Company said in the quarterly report. "We are paying for many legal and consulting services with restricted stock to maximize working capital, and intend to continue this practice. We have implemented some cost saving measures and will continue to explore more to reduce operating expenses." "If we fail to raise additional funds when needed, or do not have sufficient cash flows from sales, we may be required to scale back or cease operations, liquidate our assets and possibly seek bankruptcy protection," the Company added. As reported in the TCR on April 2, 2012, L.L. Bradford & Company, LLC, in Las Vegas, Nevada, expressed substantial doubt about Brownie's Marine Group's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has a working capital deficiency and recurring losses and will need to secure new financing or additional capital in order to pay its obligations. A copy of the Form 10-Q is available for free at: http://is.gd/pvEA0e About Brownie's Marine Brownie's Marine Group, Inc., does business through its wholly owned subsidiary, Trebor Industries, Inc., d/b/a Brownie's Third Lung, a Florida corporation. The Company designs, tests, manufactures and distributes recreational hookah diving, yacht based scuba air compressor and nitrox generation systems, and scuba and water safety products. BWMG sells its products both on a wholesale and retail basis, and does so from its headquarters and manufacturing facility in Fort Lauderdale, Florida. The Company's common stock is quoted on the OTC BB under the symbol "BWMG". The Company's Web site is http://www.browniesmarinegroup.com/ CANCER GENETICS: Incurs $9.1-Mil. Net Loss in Second Quarter ------------------------------------------------------------ Cancer Genetics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $9.1 million on $1.8 million of revenue for the three months ended June 30, 2013, compared a net loss of $1.9 million on $1.1 million of revenue for the same period last year. Revenue increased 60%, or $684,000, to $1.8 million for the three months ended June 30, 2013, from $1.1 million for the three months ended June 30, 2012, primarily due to an increase in test volume. On April 10, 2013, the Company completed its IPO. In connection with the IPO, $9.6 million of debt was converted into common stock at the IPO price of $10.00 per share. In connection with the conversion of debt into common stock, the Company expensed the applicable remaining debt discounts of $3.5 million, financing fees of $419,000 and a contingently recognizable beneficial conversion feature in the converted debt of $3.0 million, the total of which resulted in a $6.9 million write-off. The change in the fair value of the Company's warrant liability resulted in $170,000 in non-cash expense for the three months ended June 30, 2013, as compared to non-cash income of $1.5 million for the three months ended June 30, 2012. The Company reported a net loss of $6.8 million on $3.1 million of revenue for the six months ended June 30, 2013, compared with a net loss of $2.9 million on $2.0 million of revenue for the corresponding period of 2012. The Company's balance sheet at June 30, 2013, showed $6.4 million in total assets, $13.3 million in total liabilities, and a stockholders' deficit of $6.9 million. According to the regulatory filing, the Company has suffered recurring losses from operations, has negative working capital and a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. A copy of the Form 10-Q is available at http://is.gd/21P9M3 Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve and personalize the diagnosis, prognosis and response to treatment (theranosis) of cancer. CASA CASUARINA: Staff Says Rothstein Claim Is Improper ------------------------------------------------------ Law360 reported that former employees of the opulent Miami Beach mansion where fashion designer Gianni Versace was murdered in 1997 pushed back against a bid by the bankruptcy trustee of Ponzi schemer Scott Rothstein's law firm to subordinate their claims to his, arguing the trustee's claim doesn't assert a proper equitable lien. According to the report, the trustee for Rothstein Rosenfeldt Adler PA is alleging a $4.92 million secured claim based on the existence of an equitable lien on the property as Rothstein bought an interest in the mansion. About Casa Casuarina Casa Casuarina, LLC, filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 13-25645) in Miami on July 1, 2013. Peter Loftin signed the petition as manager. Judge Laurel M. Isicoff presides over the case. The Debtor estimated assets of at least $50 million and debts of at lease $10 million. Joe M. Grant, Esq., at Marshall Socarras Grant, P.L., serves as the Debtor's counsel. CDW CORP: Moody's Raises CFR to B1 After Completion of June IPO --------------------------------------------------------------- Moody's Investors Service upgraded CDW Corporation's corporate family rating to B1 from B2 and its probability of default rating to B1-PD from B2-PD. The rating action concludes the review for upgrade commenced on June 17, 2013 following the company's announcement that it launched an initial public offering of its stock. As part of the rating action, Moody's upgraded the ratings on the senior subordinated notes issued at CDW's wholly owned subsidiary CDW LLC to B3 from Caa1, and confirmed the B3 ratings on CDW LLC's senior unsecured notes and the Ba3 ratings on CDW LLC's senior secured debt. The outlook is stable. Ratings Rationale: The CFR upgrade reflects the successful completion of the primary IPO with net proceeds of about $400 million and the resulting reduction of the company's debt, in addition to further expected debt pay-downs and ongoing interest expense savings in helping the company grow its free cash flow. CDW has deleveraged steadily since its 2007 leveraged buyout, and Moody's expects the company's adjusted debt to EBITDA to be in the 4.0x to 4.5 x range over the next year. Nonetheless, private equity owners (Madison Dearborn and Providence Equity) still hold around 73% of the company shares post-IPO, and Moody's believes that CDW may provide some support to aid the equity return to these holders, which could postpone CDW reaching its stated target debt to EBITDA level of around 3x. CDW's credit profile is supported by relative earnings stability and healthy free cash flow generation because of CDW's prominent position as a value added reseller of technology products and solutions with a focus on the small and medium sized business (SMB) segment. CDW has reduced its working capital utilization and Moody's anticipates the company's cash conversion cycle will remain at 20 to 25 days, limiting the use of cash. Moody's also believes CDW has favorable prospects for continued market share gains due to its scale, extensive product offering and broad market access relative to peers with less scale and market coverage. Moody's maintained the company's SGL-2 rating indicating good liquidity, supported by availability under its secured revolving credit facility, lack of near-term debt maturities, expectation of about $350 million of free cash flow generation and ample room under its financial covenants over the next 12 months. The ratings for the debt instruments reflect both the overall probability of default rating (PDR) of CDW at B1-PD, and the loss given default assessments of the individual debt instruments. The ratings on the subordinated debt were upgraded one notch in line with the CFR upgrade. The ratings on the senior unsecured and senior secured debt were not upgraded due to the ongoing pay-downs of subordinated debt with proceeds from senior secured borrowings, which removes the loss absorption that the subordinated debt provided in the capital structure. The following summarizes CDW's ratings and these rating actions: Issuer: CDW Corporation Corporate Family Rating Upgraded to B1 Probability of Default Rating Upgraded to B1-PD Issuer: CDW LLC Senior Subordinated Regular Bond/Debenture Oct 12, 2017, Upgraded to B3 (LGD6, 95 %) Senior Secured Regular Bond/Debenture Dec 15, 2018, Confirmed at Ba3 (LGD3, 34 %) from Rating on Review Senior Unsecured Regular Bond/Debenture Apr 1, 2019, Confirmed at B3 (LGD5, 78%) from Rating on Review Senior Secured Bank Credit Facility Apr 29, 2020, Confirmed at Ba3 (LGD3, 34 %) from Rating on Review Outlook Actions: Outlook, Stable Rating Outlook The stable rating outlook reflects CDW's relatively consistent revenue stream from the public sector, which counteracts greater fluctuations in corporate sector revenue, as well as Moody's expectation for continued execution of its business strategy, stable vendor/customer relationships and market share gains. What Could Change the Rating - Up? Ratings could be upgraded if CDW's revenue and operating margins improve to a higher sustainable range (operating margins in upper single digits), through gains in market share, higher profit product and services mix and/or a lower cost structure. Further steady debt reduction, such that total adjusted debt to EBITDA leverage is expected to be sustained below 3.5x, would be an important additional consideration for any rating upgrade. What Could Change the Rating - Down? Ratings could be downgraded if CDW experienced loss of customers/market share or pricing pressures due to increasing competition or a weak economic environment led to margin erosion and impaired interest coverage, reduced free cash flow generation and financial leverage sustained above 4.5x total adjusted debt to EBITDA. A sustained rise in working capital could also pressure the ratings down. The principal methodology used in this rating was the Global Distribution & Supply Chain Services Industry Methodology published in November 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. CENTAUR LLC: Clawback Suit v. Sweeneys Survives Dismissal Bid ------------------------------------------------------------- Bankruptcy Judge Kevin J. Carey denied the request of Joseph Sweeney and Linda Porr Sweeney to dismiss the Centaur LLC Litigation Trust's lawsuit to avoid alleged constructively fraudulent transfers made by Valley View Downs, LP, to the Defendants. The Complaint alleges four counts of constructive fraud under the Bankruptcy Code and the Pennsylvania Uniform Fraudulent Transfer Act. Counts 1 and 2 seek to avoid a 2007 cash transfer of $8,532,333.00 from VVD to the Defendants in partial payment for their minority rights and interests in VVD pursuant to Bankruptcy Code Sec. 548(a)(1)(B), and Bankruptcy Code Sec. 544(b) and the Pennsylvania Uniform Fraudulent Transfer Act Sec. 5105, respectively. Counts 3 and 4 of the Complaint seek to avoid a note and a 2008 transfer of $2,769,397.62 from VVD to the Defendants pursuant to Bankruptcy Code Sec. 548(a)(1)(B), and Bankruptcy Code Sec. 544(b) and PUFTA Sec. 5105, respectively. The Defendants argue that the Litigation Trust has not met the pleading requirements to state claims for fraudulent transfers and, in the alternative, that the transfers cannot be avoided because they fall within the safe harbor of Bankruptcy Code Sec. 546(e) because they are settlement payments made to complete a securities transaction. The case is, FTI CONSULTING, INC., as Trustee to the Centaur, LLC Litigation Trust, Plaintiff, v. JOSEPH SWEENEY and LINDA PORR SWEENEY, Defendants, Adv. Proc. No. 12-50423 (Bankr. D. Del). A copy of the Court's Aug. 19, 2013 Memorandum and Order is available at http://is.gd/xnAVWOfrom Leagle.com. About Centaur LLC Indianapolis, Indiana-based, Centaur, LLC, aka Centaur Indiana, LLC -- http://www.centaurgaming.net/-- was involved in the development and operation of entertainment venues focused on horse racing and gaming. The Company and its affiliates filed for Chapter 11 bankruptcy protection on March 6, 2010 (Bankr. D. Del. Case No. 10-10799). Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, assists the Company in its restructuring effort. The Company disclosed assets of $584 million and debt of $681 million as of the Petition Date. Affiliates Centaur PA Land LP and Valley View Downs LP filed for bankruptcy reorganization in October 2009 to keep alive a project to develop a racetrack in Pennsylvania. The filings were made following the failure to make payments due in October on a $382.5 million first-lien debt and a $192 million second-lien credit. All the companies are subsidiaries of closely held Centaur Inc., which isn't in bankruptcy. Centaur LLC was authorized in August 2010 to sell the Fortune Valley Hotel & Casino 40 miles west of Denver to Luna Gaming Central City LLC for $7.5 million cash, plus a $2.5 million note. The Debtor obtained approval of its reorganization plan at a Feb. 18, 2011 confirmation hearing. The Plan would slash the casino operator's debt by two-thirds to $260 million. The Plan, as revised, is based on a settlement reached by the Debtors with the Official Committee of Unsecured Creditors, the settlement was entered among the Debtors, the Official Committee of Unsecured Creditors, and Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent for lenders that provided first lien revolving credit and term loans prepetition. Under the Plan, second-lien lenders are to split $3.4 million in notes that pay in kind. Unsecured creditors of Valley View Downs now will receive the lesser of 50% paid in cash or a share of $1.5 million cash. Other general unsecured creditors also will have the lesser of half payment or sharing $650,000 in cash. FTI Consulting, Inc., serves as Trustee to the Centaur LLC Litigation Trust. CHICAGO TRADING: CFTC Revokes Registration ------------------------------------------ U.S. Commodity Futures Trading Commission (CFTC) on Wednesday filed a Notice of Intent (Notice) to revoke the registration of Chicago Trading Managers LLC (CT Managers). CT Managers is currently registered with the CFTC as a Commodity Pool Operator and Commodity Trading Advisor. The Notice alleges that CT Managers is subject to statutory disqualification from CFTC registration based on a default judgment and permanent injunction Order entered by the U.S. District Court for the Southern District of New York on May 15, 2013. That injunction prohibits CT Managers from committing further fraud. Additionally, the default judgment includes findings that CT Managers defrauded pool participants who had invested more than $9 million by knowingly issuing or causing to be issued false account statements for the commodity pools. In the default judgment Order, CT Managers was held liable for fraud and ordered to pay a civil monetary penalty of $1.4 million, jointly and severally with another defendant. CFTC staff members responsible for this case are Laura Martin, Manal Sultan, Stephen Obie, and Vincent McGonagle. CIRCLE STAR: Incurs $10.8 Million Net Loss in Fiscal 2013 --------------------------------------------------------- Circle Star Energy Corp. filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $10.81 million on $812,762 of total revenues for the year ended April 30, 2013, as compared with a net loss of $11.07 million on $942,150 of total revenues during the prior year. The Company's balance sheet at April 30, 2013, showed $3.47 million in total assets, $5.79 million in total liabilities and a $2.31 million total stockholders' deficit. D'Arelli Pruzansky, P.A, in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended April 30, 2013. The independent auditors noted that the Company has incurred net losses and used cash in operating activities of $10,812,694 and $1,359,795, respectively, for the year ended April 30, 2013, and the Company had an accumulated deficit and stockholders' deficit of $22,061,177 and $2,317,347, respectively, and a working capital deficit of $4,167,097 at April 30, 2013. These conditions raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-K is available for free at: http://is.gd/7idEQT About Circle Star Fort Worth, Tex.-based Circle Star Energy Corp. (OTC BB: CRCL) owns royalty, leasehold, operating, net revenue, net profit, reversionary and other mineral rights and interests in certain oil and gas properties in Texas. The Company's properties are in Crane, Scurry, Victoria, Dimmit, Zavala, Grimes, Madison, Robertson, Fayette, and Lee Counties. CODA HOLDINGS: Plan Outline Hearing Set for Sept. 9 --------------------------------------------------- Adoc Holdings, Inc., et al., fka Coda Holdings, Inc., filed a Plan of Liquidation and Disclosure Statement, which contemplate the establishment of a liquidation trust to liquidate the Debtors' assets, including certain Causes of Action. It also provides for the treatment of claims against and equity interests in the Debtors. Counsel to the Debtors, Jeffrey M. Schlerf, Esq., of Fox Rothshild, LLP, reveals that the Plan is the product of negotiations between the Debtors, the Official Committee of Unsecured Creditors and secured parties to maximize recoveries to the Debtors' creditors and provide for a fair allocation of the Debtors' remaining Assets as a consequence of the asset sale transaction with the DIP Lenders, as stalking horse bidder. A Plan Settlement provides that the Stalking Horse Bidder acquired certain of the Debtors' assets for $25 million, $1.7 million of which was paid in cash with the remainder received in the form of a credit bid of the entire DIP Facility and a portion of the Priority Enhanced Notes. In addition, the full $5 million of availability under the DIP Facility was made available to fund the administrative expenses of the Estates as the Debtors pursued confirmation of a liquidation plan that conformed to the terms of the Plan Settlement. Under the Plan, Class 1 Priority Claims and Class 2 Other Secured Claims will be paid in full. Class 3 Deficiency Claims will receive their pro rata share of the Lender Beneficial Interests and will receive Liquidating Trust distributions. Class 4 General Unsecured Claims will also receive their pro rata share of the GUC Beneficial Interests. Class 5 Electing WARN Claims, to the extent not yet satisfied, will receive an appropriate distribution. Class 6 Equity Interests will be cancelled on the Effective Date. Class 7 Subordinated Claims will not receive any Liquidating Trust distribution. A hearing will be held on Sept. 9 at 2:00 p.m. Eastern Time before Judge Christopher Sontchi to consider the adequacy of the Disclosure Statement. Full-text copies of the Plan and Disclosure Statement dated Aug. 2, 2013 are available for free at: http://bankrupt.com/misc/CODAHOLDINGS_PlanDSAug2.pdf Co-counsel for the Creditors' Committee are Brown Rudnick LLP, Seven Times Square, New Yok, New York 10036, Attn: William R. Baldiga, Esq.; and Morris Nichols Arhst & Tunnell, LLP, 1201 North Market Street, Suite 1600, P.O. Box 1347, Wilmington, Delaware 19899, Attn: Gregory W. Werkheiser, Esq. Counsel to certain lenders are Sidley Austin LLP, 555 West 5th Street, Suite 4000, Los Angeles, California 90013, Attn: Jeremy E. Rosenthal, Esq.; and DLA Piper LLP (US), 2000 University Boulevard, East Palo Alto, California 94303, Attn: Bradley J. Gersich. Counsel to the Office of the U.S. Trustee, District of Delaware, J. Caleb Boggs Federal Building, 844 King Street, Suite 2207, Wilmington, Delaware 19801, Attn: David Buchbinder, Esq. About CODA Holdings Los Angeles, California-based CODA Energy -- http://www.codaenergy.com-- made an electric auto that was a commercial failure. The company marketed the Coda Sedan, which sold only 100 copies. It was an electrically powered version of the Hafei Saibao, made in China. After bankruptcy, Los Angeles- based Coda intends to concentrate on making stationery electric- storage systems. CODA Holdings, Inc., Coda Energy LLC and three other affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-11153) on May 1, 2013, to enable the Company to complete a sale, confirm a plan, and emerge from bankruptcy in a stronger position to execute its new business plan. The Company expects the sale process to take 45 days to complete. FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group, is leading a consortium of lenders intending to provide DIP financing to enable the Company's energy storage business to remain fully operational during the restructuring process. The consortium, or its designee, will also as stalking horse bidder to acquire the Company post-bankruptcy. In addition, the Company will seek to monetize value of its existing automotive business assets. CODA disclosed assets of $10 million to $50 million and liabilities of less than $100 million. Coda Automotive Inc., disclosed $24,950,641 in assets and $95,859,413 in liabilities as of the Chapter 11 filing. The Debtors have incurred prepetition a significant amount of secured indebtedness: secured notes of with principal in the amount of $59.1 million; term loans in the principal amount of $12.6 million; and a bridge loan with $665,000 outstanding. FCO and other bridge loan lenders have "enhanced priority" over other secured noteholders that did not participate in the bridge loans, pursuant to the intercreditor agreement. Jeffrey M. Schlerf, Esq., John H. Strock, Esq., and L. John Bird, Esq., at Fox Rothschild LLP are the proposed counsel for the Debtors. CODA's legal advisor in connection with the restructuring is White & Case LLP. Emerald Capital Advisors serves as its chief restructuring officer and restructuring advisor, and Houlihan Lokey serves as its investment banker for the restructuring. Sidley Austin LLP is serving as FCO MA CODA Holdings LLC's legal advisor. Brent T. Robinson, Esq., at Robinson, Anthon & Tribe represents the Debtors in their restructuring efforts. The Committee tapped Brown Rudnick as its counsel and Deloitte Financial Advisory Services LLP as its financial advisor. COMMUNITY SHORES: Posts $75,000 Net Income in Second Quarter ------------------------------------------------------------ Community Shores Bank Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $75,265 on $1.86 million of total interest income for the three months ended June 30, 2013, as compared with net income of $321,636 on $2.28 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 $5.37 million on $3.90 million of total interest income, as compared with net income of $257,535 on $4.62 million of total interest income for the same period during the prior year. As of June 30, 2013, the Company had $189.64 million in total assets, $186.04 million in total liabilities and $3.59 million in total shareholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/SATjui About Community Shores Muskegon, Mich.-based Community Shores Bank Corporation, organized in 1998, is a Michigan corporation and a bank holding company. The Company owns all of the common stock of Community Shores Bank. The Bank was organized and commenced operations in January 1999 as a Michigan chartered bank with depository accounts insured by the FDIC to the extent permitted by law. The Bank provides a full range of commercial and consumer banking services primarily in the communities of Muskegon County and Northern Ottawa County. The Company reported a net loss of $2.46 million in 2011, compared with a net loss of $8.88 million in 2010. After auditing the 2011 results, Crowe Horwath LLP, in Grand Rapids, Michigan, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring operating losses, is in default of its notes payable collateralized by the stock of its wholly-owned bank subsidiary, and the subsidiary bank is undercapitalized and is not in compliance with revised minimum regulatory capital requirements under a formal regulatory agreement which has imposed limitations on certain operations. COMPETITIVE TECHNOLOGIES: Reports $677,000 Net Loss in 2nd Qtr. --------------------------------------------------------------- Competitive Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $677,035 on $136,100 of product sales for the three months ended June 30, 2013, as compared with a net loss of $941,871 on $62,500 of product sales for the same period last year. For the six months ended June 30, 2013, the Company incurred a net loss of $1.45 million on $136,100 of product sales, as compared with a net loss of $1.73 million on $392,246 of product sales for the same period a year ago. 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 June 30, 2013, the Company had $4.47 million in total assets, $9.78 million in total liabilities and a $5.31 million total shareholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/zARFOa 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. 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. CONSTRUCTORA DE HATO: Court Amends Order on Public Sale of Assets ----------------------------------------------------------------- On August 13, the U.S. Bankruptcy Court for the District of Puerto Rico entered an amended order approving the urgent motion of Constructora De Hato Rey Incorporada requesting leave to conduct public sale and for the appointment of Caribbean Asset Recovery, Inc., to conduct the sale. In the amended order, the Court directed the Debtor to consign with the Clerk, U.S. Bankruptcy Court, the proceeds from the sale, after the payment to Caribbean Asset Recovery, Inc.'s for fees and other related costs. About Constructora De Hato San Juan, Puerto Rico-based Constructora De Hato owns parcels of land in Puerto Rico with an aggregate value of $1.82 million. It filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-02876-11) in Old San Juan, Puerto Rico, on April 13, 2012. The petition was signed by Waldemar Carmona Gonzalez, president. The Debtor is represented by Charles Alfred Cuprill, Esq., at Charles A. Curpill, PSC Law Office, in San Juan. Luis R. Carrasquillo & Co., PSC, serves as financial consultant. In its schedules, as amended, the Debtor disclosed $10,701,724 in assets and $6,847,693 in liabilities. CONSTRUCTORA DE HATO: Granted Until Nov. 5 to File Plan ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico granted Constructora De Hato Rey Incorporada until Nov. 5, 2013, to file its disclosure statement and plan of reorganization. As stated in the motion requesting for a further extension to file the Plan and Disclosure Statement, it was the Debtor's intent to conduct the sale of some of the Debtor's construction equipment, but in order to collect all of the information needed for the auction of the Equipment and some of the Debtor's realty, to maximize the amount of funds to be collected from the same and considering that the Debtor's Iseki Tunnel System needs to be sold outside of the local market, Caribbean Asset Recovery, Inc., who will conduct the sale, had to reschedule the auctions. About Constructora De Hato San Juan, Puerto Rico-based Constructora De Hato owns parcels of land in Puerto Rico with an aggregate value of $1.82 million. It filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-02876-11) in Old San Juan, Puerto Rico, on April 13, 2012. The petition was signed by Waldemar Carmona Gonzalez, president. The Debtor is represented by Charles Alfred Cuprill, Esq., at Charles A. Curpill, PSC Law Office, in San Juan. Luis R. Carrasquillo & Co., PSC, serves as financial consultant. In its schedules, as amended, the Debtor disclosed $10,701,724 in assets and $6,847,693 in liabilities. COUDERT BROTHERS: Judge Drain Won't Reinstate Statek Claim ---------------------------------------------------------- Bankruptcy Judge Robert D. Drain denied Statek Corporation's motion for reconsideration, on remand, of a prior order disallowing Statek's $85,000,000 claim for breach of professional and fiduciary duties. A copy of Judge Drain's August 19, 2013 Memorandum of Decision is available at http://is.gd/D8PHmrfrom Leagle.com. Stern Tannenbaum & Bell LLP's David S. Tannenbaum, Esq., and Karen S. Frieman, Esq. -- dtannenbaum@sterntannenbaum.com and kfrieman@sterntannenbaum.com -- represent Development Specialists, Inc. Hughes Hubbard & Reed LLP's Edward J.M. Little, Esq., and Lisa A. Cahill, Esq. -- little@hugheshubbard.com and cahill@hugheshubbard.com -- argue for Statek Corporation. About Coudert Brothers Coudert Brothers LLP was an international law firm specializing in complex cross-border transactions and dispute resolution. The firm had operations in Australia and China. Coudert filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 06-12226) on Sept. 22, 2006. John E. Jureller, Jr., Esq., and Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represented the Debtor in its restructuring efforts. Brian F. Moore, Esq., and David J. Adler, Esq., at McCarter & English, LLP, represented the Official Committee of Unsecured Creditors. Coudert scheduled total assets of $30.0 million and total debts of $18.3 million as of the Petition Date. The Bankruptcy Court in August 2008 signed an order confirming Coudert's chapter 11 plan. The Plan contemplated on paying 39% to unsecured creditors with $26 million in claims. Coudert has been succeeded by Development Specialists, Inc. in its capacity as Plan Administrator under the confirmed chapter 11 plan. CROC LLC: Case Summary & 4 Unsecured Creditors ---------------------------------------------- Debtor: CROC, LLC P.O. Box 331 Nags Head, NC 27959 Bankruptcy Case No.: 13-05146 Chapter 11 Petition Date: August 15, 2013 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: Trawick H Stubbs, Jr., Esq. STUBBS & PERDUE, P.A. P.O. Drawer 1654 New Bern, NC 28563 Tel: (252) 633-2700 Fax: (252) 633-9600 E-mail: efile@stubbsperdue.com Scheduled Assets: $2,253,011 Scheduled Liabilities: $2,226,930 A copy of the Company's list of its largest unsecured creditors, filed together with the petition, is available for free at http://bankrupt.com/misc/nceb13-5146.pdf The petition was signed by Glenn E. Magill, Jr., member-manager. CITY OF SAN BRUNO: Disputes PG&E Statement on Potential Bankruptcy ------------------------------------------------------------------ The City of San Bruno on Aug. 21 criticized statements by the top executive of Pacific Gas & Electric Company who told Bloomberg News on Tuesday that a proposed penalty and fine by the California Public Utility Commission (CPUC) for the deadly 2010 PG&E gas pipeline explosion in San Bruno could force the utility into bankruptcy -- statements that contradict the sworn legal testimony of PG&E's own finance expert. PG&E Chairman and Chief Executive Officer Tony Earley told Bloomberg in a news interview the proposed $2.25 billion penalty and fine for the Sept. 9, 2010 explosion in San Bruno that killed eight, destroyed 38 homes and damaged the community could not be funded with equity alone. He told the news service the penalty would require PG&E shareholders to sell billions in additional stock and, if shares failed to sell, could land PG&E in bankruptcy. San Bruno city officials said these comments contradict the findings of multiple experts, including PG&E's own paid finance consultant. "Mr. Earley's comments are inconsistent with the company's own sworn testimony made before the CPUC on March 5 this year," said San Bruno Mayor Jim Ruane. "PG&E's own expert said the company has the financial capability to withstand a penalty of this magnitude. We are deeply concerned that these comments could mislead the market, shareholders, and the public, and we hope these were not made in a deliberate attempt to influence the outcome of the ongoing penalty process." Earlier this year, PG&E's paid expert, Eric O. Fornell of Wells Fargo Securities, said during a penalty proceeding under oath that it was "doable" for PG&E to issue equity or raise enough capital to cover a $2 billion penalty. His statements followed a separate, impartial report by Overland Consulting, independently commissioned by the CPUC in 2012, which similarly found that PG&E would be able to afford a $2.25 billion penalty without hurting its creditworthiness. Meanwhile, PG&E stock prices remain strong. PG&E Corp.'s second- quarter earnings rose 39 percent as the utility reported stronger revenue and lower charges related to its natural-gas pipeline efforts, among other items. The company's solid financial footing and multiple expert findings are partly what guided the $2.25 billion recommendation of the CPUC's safety division, which issued its revised penalty proposal in July. The proposed $2.25 billion penalty would fund ongoing safety improvements and include a $300 million fine to PG&E shareholders, which is not tax deductible and would be paid directly to the State of California's general fund. In addition, the proposal also curtails PG&E's ability to deduct "credits" for safety repairs made since the 2010 explosion and fire -- a provision San Bruno has advocated strongly for. San Bruno officials said they support elements of the CPUC's proposed penalty, but given the scope and magnitude of PG&E's misconduct, they are pushing for a penalty of $3.8 billion, which would amount to $2.45 billion in after-tax dollars. This penalty would also fund ongoing safety improvements and give no credits for past expenses. San Bruno based its recommendation on the Overland report, which determined that PG&E could bear a maximum financial consequence of $2.45 billion and remain solvent. San Bruno said it will also continue pushing the CPUC to direct PG&E to adopt and fund a series of remedial measures that will ensure systemic regulatory change in the future. These include $5 million per year for a "California Pipeline Safety Trust," an Independent Monitor to make sure PG&E follows its own safety plan in the face of possible lax enforcement and the installation of lifesaving Automated Shutoff Valves. The CPUC's five-member commission is expected to issue its final recommendation in coming months. "As we approach the three-year anniversary of this devastating tragedy, we remain firm in our belief that the only way to prevent future accidents is by penalizing PG&E to the maximum," Mayor Ruane said. "The independent experts -- even PG&E's -- have agreed that PG&E is financially able to weather a penalty of this magnitude--and then some. We are now looking to the CPUC to do the right thing and penalize PG&E in order to send a strong message that public safety cannot be compromised by the bottom line." D & L ENERGY: Wants Until Nov. 12 to File Chapter 11 Plan --------------------------------------------------------- D & L Energy, Inc., et al., ask the U.S. Bankruptcy Court for the Northern District of Ohio to extend the exclusive periods to file a Chapter 11 Plan until Nov. 12, 2013, and solicit acceptances for that Plan until Jan. 11, 2014. This is the Debtors' first request to extend the exclusive period. The Debtors explain that it needed additional time to resolve various contingencies before it can finalize any viable plan. In order to propose a feasible plan, the Debtor believes it must evaluate the proofs of claim that have been timely filed. About D & L Energy D & L Energy, based in Youngstown, Ohio, and affiliate Petroflow, Inc., filed for Chapter 11 bankruptcy (Bankr. N.D. Ohio Lead Case No. 13-40813) on April 16, 2013. Judge Kay Woods oversees the case. Brian T. Angeloni, Esq., Kathryn A. Belfance, Esq., Steven Heimberger, Esq., and Todd A. Mazzola, Esq., at Roderick Linton Belfance, LLP, serve as the Debtors' counsel, and Walter Haverfield, LLP, is the environmental counsel. SS&G Parkland Consulting, LLC, serves as financial advisor and investment banker. The Debtor disclosed $41,015,677 in assets and $6,185,158 in liabilities as of the Chapter 11 filing. Daniel M. McDermott, U.S. Trustee for Region 9, appointed seven creditors to serve in the Official Committee of Unsecured Creditors. Sherri Lynn Dahl, Esq., and Peter R. Morrison, Esq., at Squire Sanders (US) LLP, represent the Creditors Committee as counsel. BBP Partners LLC serves as its financial advisors. DAIS ANALYTIC: Incurs $1.1 Million Net Loss in Second Quarter ------------------------------------------------------------- Dais Analytic Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.08 million on $528,369 of revenue for the three months ended June 30, 2013, as compared with net income of $299,497 on $649,015 of revenue for the same period last year. For the six months ended June 30, 2013, the Company incurred a net loss of $1.38 million on $1.14 million of revenue, as compared with net income of $281,114 on $1.68 million of revenue for the same period a year ago. As of June 30, 2013, the Company had $854,111 in total assets, $4.24 million in total liabilities and a $3.38 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/KY6BFU About Dais Analytic Odessa, Fla.-based Dais Analytic Corporation has developed and patented a nano-structure polymer technology, which is being commercialized in products based on the functionality of these materials. The initial product focus of the Company is ConsERV, an energy recovery ventilator. The Company also has new product applications in various developmental stages. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, Cross, Fernandez & Riley LLP, in Orlando, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses since inception and has a working capital deficit and stockholders' deficit of $3.22 million and $4.90 million at Dec. 31, 2011. The Company reported a net loss of $2.33 million in 2011, compared with a net loss of $1.43 million in 2010. DEE ALLEN: Union Central Opposes Approval of Trustee Disclosures ---------------------------------------------------------------- Union Central Life Insurance Company objects to the approval of the Disclosure Statement for the Chapter 11 trustee's Liquidating Plan for Dee Allen Randall, et al. Union Central cited that the Trustee's Disclosure Statement does not contain adequate information that would enable Victims to make informed judgments about whether to vote for the Plan and assign to the Personal Actions Trust their claims against Facilitators of the Randall Enterprise Ponzi Scheme. Union Central said: "Specifically, it does not disclose that the Estate has no claims of its own against Facilitators, nor does it disclose that the Estate's Trustee and lawyers will be unable to prosecute any such claims that Victims may have. Furthermore, it does not explain anything about these alleged claims, nor does it disclose that participation in the Trust will greatly reduce the recoveries of Victims who assign relatively good claims to the Trust, if such claims exist. Finally, although the Victims do need more information, the Estate's professionals may not be the proper source for that information because they now have potential employment interests, and thus a financial stake, in the outcome." A copy of the Objection is available at: http://bankrupt.com/misc/deeallen.doc1247.pdf According to the Disclosure Statement, along with his real estate investments that he controlled and operated, Dee Allen Randall was also a life insurance agent. According to the Chapter 11 Trustee, Randall and his subagents convinced his Victims that if they would invest in his real estate projects, the high returns from these real estate investments would be sufficient to pay the large life insurance premiums of the Union Central life insurance products he sold to his Victims. Union Central is identified in the Disclosure Statement as one of the Facilitators of the Randall Enterprise Ponzi Scheme. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/deeallen.doc1174.pdf As reported in the TCR on May 1, 2013, Gil A. Miller, the duly- appointed Chapter 11 Trustee for the Debtors filed with the U.S. Bankruptcy Court for the District of Utah a proposed Chapter 11 Trustee's Liquidating Plan of Reorganization under Section 1121 of the Bankruptcy Code. Pursuant to the proposed Trustee Plan, all holders of Allowed Claims are to be paid from the assets of the Consolidated Estate as provided for in the Plan. A copy of the proposed Chapter 11 Trustee Liquidating Plan is available at http://bankrupt.com/misc/deeallen.doc1070.pdf About Dee Allen Randall Dee Allen Randall in Kaysville, Utah, filed for Chapter 11 bankruptcy (Bankr. D. Utah Case No. 10-37546) on Dec. 20, 2010, to forestall creditors while he reorganized his finances. His companies include Horizon Mortgage & Investment, Horizon Financial & Insurance Group and Horizon Auto Funding. Judge Joel T. Marker presides over the bankruptcy case. In his petition, Mr. Randall estimated $10 million to $50 million in assets and $1 million to $10 million in debts. Mr. Randall claims he was conducting a "legal Ponzi scheme," but authorities are investigating him for possible violations of the law in an operation that took in $65 million from 700 or so investors. Gil A. Miller was appointed as Chapter 11 trustee for Mr. Randall's bankruptcy estate. On Oct. 12, 2011, Mr. Miller placed Mr. Randall's corporate entities -- Horizon Auto Funding, LLC, Independent Commercial Lending LLC, Horizon Financial Center I LLC, Horizon Mortgage and Investment Inc. and Horizon Financial & Insurance Group Inc. -- in bankruptcy by filing separate Chapter 11 petitions (Bankr. D. Utah Case Nos. 11-34826, 11-34830, 11-34831, 11-34833 and 11-34834). Judge Joel T. Marker presides over the 2010 and 2011 cases. Michael R. Johnson, Esq., Brent D. Wride, Esq., and David H. Leigh, Esq., at Ray Quinney & Nebeker P.C., serve as counsel to the Chapter 11 Trustee. The cases are substantively consolidated under Case No. 10-37546. Reid Collins & Tsai LLP represents the Chapter 11 Trustee as special litigation counsel. Fabian & Clendenin represents the Chapter 11 Trustee as special counsel. DESIGNLINE CORP: Meeting to Form Creditors' Panel on Aug. 27 ------------------------------------------------------------ Roberta A. DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on August 27, 2013 at 10:00 a.m. in the bankruptcy case of DesignLine Corporation, et al. The meeting will be held at: J. Caleb Boggs Federal Building 844 King St., Room 5209 Wilmington, DE 19801 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. DETROIT, MI: Can Appoint Committee of Retired Employees ------------------------------------------------------- The city of Detroit, Michigan, sought and obtained approval from the U.S. Bankruptcy Court to appoint a committee to represent the retired employees of the City of Detroit. The Retiree Committee shall have the powers and duties prescribed in section 1103 of the Bankruptcy Code, except the power prescribed in section 1103(c)(4) of the Bankruptcy Code, in all cases subject to the limitations applicable in chapter 9 cases. Nothing contained in the Motion or the Court's Order will be deemed an admission or a finding that the City has any obligation to provide any Retirement Benefits to any Retiree or other party. 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: Mich. School Districts to Test Municipal Bond Market ----------------------------------------------------------------- Reuters reported that after three municipal bond sales in Michigan were postponed in the wake of Detroit's bankruptcy filing, three of the state's school districts are testing the market with sales expected in the next two weeks. According to the report, the Michigan Finance Authority is planning to sell $92 million of state aid revenue notes for the Detroit School District during the week of Aug. 19, a market source familiar with the deal said. The authority is also issuing $18 million of revenue bonds for Ypsilanti Community Schools in Washtenaw County, another market source familiar with that deal said. The sources were not authorized to speak publicly for the districts, the report said. The Ypsilanti district did not immediately respond to requests for comment. J.P. Morgan Securities is the lead manager for both debt sales, according to the report. The school district in Sandusky, Michigan, a town about 90 miles north of Detroit in Michigan's "thumb," is also planning to refinance about $4.9 million of unlimited tax general obligation bonds in a competitive sale on Aug. 21, according to Stauder, Barch & Associates, the district's financial adviser, the report further related. 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: Area Tries to Protect World-Class Art From Bankruptcy ------------------------------------------------------------------ Joseph Lichterman, writing for Reuters, reported that a Detroit metropolitan county is threatening to cut funding to the city's art museum if Detroit's bankruptcy filing leads to the sale of any of its collection which includes works by Vincent van Gogh, Rembrandt and Diego Rivera. According to the report, the Oakland County Art Institute Authority will vote on whether to stop distributing property tax revenue to the Detroit Institute of Art if Detroit's emergency manager decides to sell any of its artwork or divert funds from the museum to pay the city's creditors. Last year, voters in suburban Oakland, Wayne and Macomb counties approved a property tax levy to provide the DIA up to $23 million annually for its operations, the report related. Oakland County taxpayers were expected to provide $9.8 million of the total. The authority is taking the vote to put the city "on notice," said chairman Thomas Guastello, the report further related. He said Detroit would be violating the counties' agreement with the DIA if it moved to monetize any DIA assets to pay the city's debt after it filed for the largest ever municipal bankruptcy in U.S. history. "This violates the core of the issue that was brought to the voters," he said, the report cited. 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 Creditors Skip Initial Bankruptcy Fight --------------------------------------------------------- Reuters reported that Detroit's municipal bond creditors did not object to the city's historic bankruptcy petition by the Aug. 19 deadline but may be gearing up for a bigger battle down the road that could pit payments on city bonds against pension payments. According to the report, public labor unions, the city's two pension funds, retirees, vendors, and individuals filed a slew of objections with the U.S. Bankruptcy Court in Detroit. Bondholders, including mutual funds, as well as bond insurers, which guarantee payments on much of the city's debt, were absent from the list. "I'm speechless," said Dick Larkin, director of credit analysis at HJ Sims, the report related. In typical Chapter 9 municipal bankruptcies, bond creditors are on the front battle lines, he noted. The no-show by bond holders means only two of Detroit's 20 largest unsecured creditors, the city's two pension funds, disputed the city's right to proceed in bankruptcy court. Patrick Darby, a bankruptcy attorney at Bradley Arant Boult Cummings LLP, said that bond creditors may have concluded there are no other alternatives for Detroit but bankruptcy, the report added. As the bankruptcy proceeds, bondholders will vie against pension funds and other creditors for payment from the city. "Maybe they have taken a realistic view and concluded that Detroit is in fact insolvent and needs the protection of chapter 9," he said, the report further related. 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. DIAGNOSTIC VENTURES: Former Exec Ducks Fraud Claims --------------------------------------------------- Law360 reported that a Pennsylvania federal judge cleared a former director at bankrupt medical-property developer Diagnostic Ventures Inc. of fraud claims, freeing him from a lawsuit filed by six institutional investors against the former firm's executives. According to the report, the summary judgment is the latest in a series of exonerations of DVI execs of responsibility for the fraud. Judge Legrome D. Davis said there is no evidence that Gerald L. Cohn, a former director on DVI's credit committee, had anything to do with misleading investors leading up to the 2003 bankruptcy, the report related. The case is WM HIGH YIELD FUND et al v. O'HANLON et al, Case No. 2:04-cv-03423 (E.D. Pa.) before Judge Legrome D. Davis. About Diagnostic Ventures Diagnostic Ventures, Inc., was a healthcare finance company that extended loans to medical providers to facilitate the purchase of diagnostic medical equipment and leasehold improvements, and offered lines of credit for working capital secured by healthcare receivables. Founded in 1986, DVI was a publicly traded company with reported assets of $1.7 billion in 2003. Its common stock began trading on the New York Stock Exchange in 1992. It issued two tranches of 9 7/8% senior notes: the first, issued in 1997, totaled $100 million; the second, issued in 1998, totaled $55 million. On August 13, 2003, DVI disclosed its intention to file for bankruptcy protection. On August 25, 2003, DVI and affiliates DVI Business Credit, Inc., and DVI Financial Services, Inc., filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the District of Delaware and began liquidating assets. R. Todd Neilson, CPA was appointed by the Bankruptcy Court to investigate the Debtor DVI's financial transactions, accounting practices, and alleged wrongdoing. DR TATTOFF: Incurs $1 Million Net Loss in Second Quarter -------------------------------------------------------- Dr. Tattoff, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.02 million on $1.06 million of revenues for the three months ended June 30, 2013, as compared with a net loss of $522,959 on $790,075 of revenues for the same period last year. For the six months ended June 30, 2013, the Company incurred a net loss of $2.27 million on $1.97 million of revenues, as compared with a net loss of $1.14 million on $1.55 million of revenues for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $2.52 million in total assets, $4.92 million in total liabilities and $2.40 million total shareholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/w2BIne About Dr. Tattoff Beverly Hills, Calif.-based Dr. Tattoff, Inc., currently operates or provides management services to five laser tattoo and hair removal clinics located in Texas and California, all of which operate under the Company's registered trademark "Dr. Tattoff." Dr. Tattoff disclosed a net loss of $2.83 million on $3.20 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $2.47 million on $2.66 million of revenue during the prior year. SingerLewak LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company's current liabilities exceeded its current assets by approximately $1,547,000, has shareholders' deficit of approximately $806,000, has suffered recurring losses and negative cash flows from operations, and has an accumulated deficit of approximately $7,407,000 at Dec. 31, 2012, which conditions raise substantial doubt about the Company's ability to continue as a going concern. DTS8 COFFEE: Incurs $1.1 Million Net Loss in Fiscal 2013 -------------------------------------------------------- DTS8 Coffee Company, Ltd., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.11 million on $42,333 of revenue for the year ended April 30, 2013, as compared with a net loss of $45,730 on $58,044 of revenue a year ago. As of April 30, 2013, the Company had $4.60 million in total assets, $755,882 in total liabilities and $3.84 million in total shareholders' equity. Malone & Bailey, PC, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended April 30, 2013. The independent auditors noted that the Company has suffered recurring losses from operations, which raises substantial doubt about its ability to continue as a going concern. A copy of the Form 10-K is available for free at: http://is.gd/x4zGut About DTS8 Coffee DTS8 Coffee Company, Ltd. (previously Berkeley Coffee & Tea, Inc.) was incorporated in the State of Nevada on March 27, 2009. Effective Jan. 22, 2013, the Company changed its name from Berkeley Coffee & Tea, Inc., to DTS8 Coffee Company, Ltd. On April 30, 2012, the Company acquired 100 percent of the issued and outstanding capital stock of DTS8 Holdings Co., Ltd., a corporation organized and existing since June 2008 under the laws of Hong Kong and which owns DTS8 Coffee (Shanghai) Co., Ltd. DTS8 Holdings, through its subsidiary DTS8 Coffee, is a gourmet coffee roasting company established in June 2008. DTS8 Coffee's office and roasting factory is located in Shanghai, China. DTS8 Coffee is in the business of roasting, marketing and selling gourmet roasted coffee to its customers in Shanghai, and other parts of China. It sells gourmet roasted coffee under the "DTS8 Coffee" label through distribution channels that reach consumers at restaurants, multi-location coffee shops, and offices. EARL GAUDIO: Files Amended List of 20 Largest Unsecured Creditors ----------------------------------------------------------------- Earl Gaudio & Son Inc. submitted to the Bankruptcy Court a list that identifies its top 20 unsecured creditors. Creditors with the three largest claims are: Entity Nature of Claim Claim Amount ------ --------------- ------------ Regions Commercial Pam $5,025,075 PO Box 11407 (3,000,000 Birmingham, AL, 35246 secured) Illinois Department of Revenue $521,884 100 West Randolph St. Chicago, IL 60601 World Business Lenders, LLC $335,768 120W, 45th St. (3,000,000 29th Floor secured) New York, NY 10036 (5,075,000 Senior lien) A copy of the creditors' list is available for free at: http://bankrupt.com/misc/EARLGAUDIO_creditorslist_amended.pdf Earl Gaudio & Son Inc. filed a Chapter 11 petition (Bankr. C.D. Ill. Case No. 13-90942) on July 19, 2013. The petition was signed by Angela E. Major Hart, as authorized signer of First Midwest Bank, custodian. Judge Gerald D. Fines presides over the case. The Debtor estimated assets of at least $10 million and debts of at least $1 million. John David Burke, Esq., at Ice Miller, LLP, serves as the Debtor's counsel. EARL GAUDIO: Files Schedules of Assets and Liabilities ------------------------------------------------------ Earl Gaudio & Son Inc. filed with the Bankruptcy Court for the Central District of Illinois its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $3,000,000 B. Personal Property $8,849,000 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $6,459,078 E. Creditors Holding Unsecured Priority Claims $705,718 F. Creditors Holding Unsecured Non-priority Claims $1,324,493 ----------- ----------- TOTAL $11,849,187 $8,489,291 Earl Gaudio & Son Inc. filed a Chapter 11 petition (Bankr. C.D. ILL. Case No. 13-90942) on July 19, 2013. The petition was signed by Angela E. Major Hart, as authorized signer of First Midwest Bank, custodian. Judge Gerald D. Fines presides over the case. The Debtor estimated assets of at least $10 million and debts of at least $1 million. John David Burke, Esq., at Ice Miller, LLP, serves as the Debtor's counsel. EASTMAN KODAK: Signs Deal Rejecting Century Insurance Policies -------------------------------------------------------------- Eastman Kodak Co. and a group of insurance firms represented by New York-based O'Melveny & Myers LLP signed a deal under which the company agreed not to assume any general or excess liability insurance policies issued by the firms. The insurance policies will be rejected and the insurance firms, which include Century Indemnity Co. and INA, will have no further obligations under those policies as of the effective date of Kodak's Chapter 11 reorganization plan. The agreement can be accessed for free at http://is.gd/08p2xm O'Melveny & Myers LLP can be reached at: Tancred Schiavoni, Esq. 7 Times Square New York, NY 10036 Tel: (212) 326-2000 Fax: (212) 326-2061 Email: tschiavoni@omm.com 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: Wins Approval to Reject Contracts With Acro, et al. ------------------------------------------------------------------ Eastman Kodak Co. received the green light from U.S. Bankruptcy Judge Allan Gropper to reject its contracts with Acro Industries Inc., The University of Mississippi Medical Center and Winfield Industries. A list of the contracts is available for free at http://is.gd/R11iO8 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: Seeks Court Approval to Assume 174 Contracts ----------------------------------------------------------- Eastman Kodak Co. seeks approval from U.S. Bankruptcy Judge Allan Gropper to assume 174 contracts. "The debtors derive ongoing benefits from the assumed contracts, which will continue to be beneficial to the reorganized debtors after emergence from bankruptcy," said Kodak lawyer, Sean Greecher, Esq., at Young Conaway Stargatt & Taylor LLP, in New York. As part of the assumption of the contracts, Kodak proposed to pay $95,637 to cure any default under the contracts. A list of the contracts is available without charge at http://is.gd/FQJXib A court hearing is scheduled for September 16. Objections are due by September 9. 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: Seeks Extension to Object to Sec. 503(b)(9) Claims ----------------------------------------------------------------- Eastman Kodak Co. filed a motion seeking additional time to file objections to claims asserted against the company pursuant to Section 503(b)(9) of the Bankruptcy Code. Kodak proposed to extend the deadline through and including the 90th day after the effective date of its Chapter 11 reorganization plan. The current deadline is September 11. The company has received approximately 500 claims that they must evaluate to determine whether they are valid or not. U.S. Bankruptcy Judge Allan Gropper will hold a hearing on August 29 to consider approval of the motion. Objections are due by August 27. 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. EAT AT JOE'S: Posts $3.3 Million Net Income in Second Quarter ------------------------------------------------------------- Eat at Joe's Ltd. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $3.27 million on $326,740 of revenues for the three months ended June 30, 2013, as compared with a net loss of $44,143 on $289,503 of revenues for the same period last year. For the six months ended June 30, 2013, the Company posted net income of $3.62 million on $604,068 of revenues, as compared with a net loss of $21,782 on $602,472 of revenues for the same period during the prior year. As of June 30, 2013, the Company had $4.78 million in total assets, $2.49 million in total liabilities and $2.28 million in total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/6lvDRs About Eat at Joe's Scarsdale, N.Y.-based Eat at Joe's, Ltd., presently owns and operates one theme restaurant located in Philadelphia, Pennsylvania. Eat at Joe's disclosed net income of $1.92 million on $1.12 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $152,909 on $1.07 million of revenue during the preceding year. Robison, Hill & Co., 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 suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. EAU TECHNOLOGIES: Incurs $765,000 Net Loss in Second Quarter ------------------------------------------------------------ EAU Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $765,435 on $714,787 of total revenues for the three months ended June 30, 2013, as compared with a net loss of $563,248 on $119,237 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 $1.04 million on $1.34 million of total revenues, as compared with a net loss of $1.12 million on $194,931 of total revenues for the same period last year. The Company's balance sheet at June 30, 2013, showed $1.55 million in total assets, $8.51 million in total liabilities and a $6.95 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/72CIlF About EAU Technologies Kennesaw, Ga.-base EAU Technologies, Inc., is in the business of developing, manufacturing and marketing equipment that uses water electrolysis to create non-toxic cleaning and disinfecting fluids for food safety applications as well as dairy drinking water. EAU Technologies disclosed a net loss of $2.03 million on $471,209 of total revenues for the year ended Dec. 31, 2012, as compared with a net loss of $3.04 million on $1.90 million of total revenues during the prior year. HJ & Associates, LLC, 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 Company has a working capital deficit, a deficit in stockholders' equity and has sustained recurring losses from operations which raise substantial doubt about the Company's ability to continue as a going concern. ECOTALITY INC: Pomerantz Law Firm Files Class Action Suit --------------------------------------------------------- Pomerantz Grossman Hufford Dahlstrom & Gross LLP on Aug. 20 disclosed that it has filed a class action lawsuit against Ecotality, Inc. and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 13-cv-03840, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Ecotality between April 16, 2012 and August 9, 2013 both dates inclusive. This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. If you are a shareholder who purchased Ecotality securities during the Class Period, you have until October 14, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at http://www.pomerantzlaw.com To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased. Ecotality, engages in designing, manufacturing, testing, and commercializing electric vehicle (EV) charging and energy storage systems in the United States and internationally. It primary products include the Blink line of charging stations for passenger vehicle applications, such as Blink Level 2 residential and commercial chargers, and the Blink DC Fast Chargers, as well as a turnkey network operating system for EV drivers, commercial businesses, and utilities; and the Minit-Charger line of fast- charge systems for off-road industrial applications, including material handling operations and airport ground service equipment. The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was facing an impeding shutdown of funds from the United States Department of Energy ("DOE"); (2) the Company was inappropriately recognizing revenue and drawing down expenses on its contract with DOE; (3) the Company's products contained significant design and manufacturing defects; (4) the Company lacked adequate internal controls over financial reporting; and, (5) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times. On August 12, 2013, the Company disclosed that the DOE had suspended all payments to the Company, had ordered the Company to cease incurring new costs under its prior arrangement with DOE, and had ordered it to notify all of Ecotality's vendors of the DOE's action. The Company also disclosed that it was unable to correct design and manufacturing defects in its charging systems, likely requiring a recall of all connector plugs on the 12,000 charging stations it had installed to date; and that as a result, it had hired a restructuring adviser to evaluate options including filing a bankruptcy "in the very near future." On this news, Ecotality securities declined $1.16 per share or over 79%, to close at $0.35 per share on August 12, 2013. The Pomerantz Firm -- http://www.pomerantzlaw.com-- concentrates its practice in the areas of corporate, securities, and antitrust class litigation. The firm has offices in New York, Chicago, Florida, and San Diego. EL FARMER: Can Access PR Asset Cash Collateral Until Aug. 30 ------------------------------------------------------------ As stated in open court, El Farmer, Inc.'s motion for authority to use cash collateral of PR Asset Portfolio 2013-1 International, LLC., from the funds currently in Suiza Dairy, Inc.'s possession and those that become in its possession thereafter, filed on June 28, 2013, is granted nunc pro tunc to July 1, 2013, and the use of cash collateral is extended until Aug. 30, 2013. The Debtor is to provide more detailed information related to payroll expenses and as to the president's salary. Also, the Debtor must file the weekly and monthly reports in a timely manner. El Farmer, Inc., filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-09687) in Old San Juan, Puerto Rico on Dec. 7, 2012. The Debtor scheduled $18.3 million in assets and $12.0 million in liabilities, including $11.0 million owed to secured creditor Banco Popular De Puerto Rico. The Debtor owns farm lands in Isabela, Puerto Rico. Modesto Bigas Mendez, Esq., at Bigas & Bigas represents the Debtor as counsel. EL FARMER: To Seek Approval of Plan Disclosures on Aug. 30 ---------------------------------------------------------- El Farmer, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Proposed Plan of Reorganization and explanatory Disclosure Statement on July 29, 2013. Pursuant to the Plan, general unsecured creditors will receive a distribution of 5% of their allowed claims to be distributed at $4,396 per month for 96 months. General unsecured claims filed in the case total $54,926.79. BPPR's unsecured portion is $6,592,679. With respect to BPPR's Secured Claim of $11,641,429, the Debtor will pay the value of collateral determined as $5,048,750 at the rate of $36,092 in 180 equal monthly installments. The balance will be treated as a general unsecured claim. Payments and distributions under the Plan will be funded from the Debtor's postpetition income from the operation of the business. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/elfarmer.doc120.pdf The hearing on Disclosure Statement is scheduled for Aug. 30, 2013, at 9:00 a.m. Objections to the disclosure statement are due no later than fourteen (14) days prior to the hearing. About El Farmer El Farmer, Inc., filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-09687) in Old San Juan, Puerto Rico on Dec. 7, 2012. The Debtor scheduled $18.3 million in assets and $12.0 million in liabilities, including $11.0 million owed to secured creditor Banco Popular De Puerto Rico. The Debtor owns farm lands in Isabela, Puerto Rico. Modesto Bigas Mendez, Esq., at Bigas & Bigas represents the Debtor as counsel. EMPIRE RESORTS: Incurs $1.1 Million Net Loss in Second Quarter -------------------------------------------------------------- Empire Resorts, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.09 million on $18.92 million of net revenues for the three months ended June 30, 2013, as compared with net income of $240,000 on $18.85 million of net revenues for the same period last year. For the six months ended June 30, 2013, the Company incurred a net loss of $1.55 million on $35.75 million of net revenues, as compared with net income of $510,000 on $36.14 million of net revenues for the same period a year ago. Empire Resorts reported a net loss applicable to common shares of $2.26 million in 2012, as compared with a net loss applicable to common shares of $1.57 million in 2011. As of June 30, 2013, the Company had $60.48 million in total assets, $51.51 million in total liabilities and $8.96 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/frHkbn About Empire Resorts Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY) -- http://www.empireresorts.com/-- owns and operates Monticello Casino & Raceway, a video gaming machine and harness racing track and casino located in Monticello, New York, 90 miles northwest of New York City. EMPIRE TODAY: Moody's Reviews 'Caa1' CFR After Filing Delay ----------------------------------------------------------- Moody's Investors Service placed Empire Today LLC's Caa1 corporate family rating, its Caa1-PD probability of default rating and the Caa1 rating of its senior secured notes on review for downgrade due the delay in the issuance of the company's financial statements for the three months and six months ended June 30, 2013. The delay was prompted by a lawsuit filed against Empire, two of its third party installers and a business entity beneficially owned by Empire's CEO and former CFO or their entities or trusts. Empire is reviewing the circumstances surrounding the lawsuit, the role of the current CEO and former CFO in the transaction cited in the lawsuit, as well as some of its internal processes and expects to issue the second quarter financial statements within 30 days. Ratings Rationale: "Moody's review will focus on the company's second quarter financial results and operating performance, the impact of the lawsuit, governance issues and the company's internal review of its processes and any impact this might have on the company's financial profile", Moody's Senior Analyst Mickey Chadha stated. Empire's Caa1 corporate family rating continues to reflect its very small scale, and weak credit metrics. It also reflects the discretionary nature of the company's products, as well as its very high susceptibility to consumer confidence and macroeconomic factors. Ratings also reflect risks related to the very high turnover rate of Empire's independent sales force and its liquidity profile which does not leave much leeway for any operational missteps. Ratings are supported by the good position Empire has established in the highly-fragmented floor covering market, and in the shop-at-home segment of that market, in particular. The following ratings were put on review for downgrade and LGD point estimates updated: - Corporate Family Rating of Caa1 - Probability of Default Rating of Caa1-PD - $150 million senior secured notes rating of Caa1 (LGD4, 52%) from (LGD4, 51%) 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. Empire Today, LLC, headquartered in Northlake, IL, is a specialty retailer of carpet, hard floor, and window treatments. The company offers shop-at-home sales in 73 metropolitan markets including over 40 of the largest metropolitan markets in the U.S. Revenues were about $646 million for the last twelve months ending March 31, 2013. Mercury Capital, L.P owns 95% of the company with the rest owned by management. ENDICOTT INTERCONNECT: Bankruptcy Hearing Opens to All Bidders -------------------------------------------------------------- WBNG Binghamton reported that the bankruptcy sale of Endicott Interconnect will now be an open bidding process after the company that submitted the initial offer bowed out of sole contention to make one of Broome County's largest employers solvent. According to the report, attorneys for Integrian Holdings -- which is owned by James T. Matthews, who is a minority shareholder of EIT, according to court records -- told a federal judge it will withdraw its position as a "stalking horse bidder." That position entitled Integrian the lead in the bankruptcy sale and an advantage over outside bidders. Attorneys said Integrian generated a lot of "heat" for those actions, although they did not explain further, the report related. They also told the court there are now many other interested buyers. As a result, the bidding process will now reopen, and a final decision could be handed down by the end of September, the report said. The struggling company filed for bankruptcy protection in the middle of last month. At that time, Integrian set itself up as a prime bidder. They entered a purchase agreement with EI for $250,000. 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. ENERGY SERVICES: Posts $2.9 Million Net income in June 30 Qtr. -------------------------------------------------------------- Energy Services of America Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $2.93 million on $26.55 million of revenue for the three months ended June 30, 2013, as compared with a net loss of $2 million on $30.49 million of revenue for the same period last year. For the nine months ended June 30, 2013, the Company reported net income of $972,848 on $78.42 million of revenue, as compared with a net loss of $4.78 million on $82.22 million of revenue for the same period during the prior year. The Company reported a net loss of $48.5 million on $157.7 million of revenue in fiscal 2012, compared with a net loss of $5.3 million on $143.4 million of revenue in fiscal 2011. The Company's balance sheet at June 30, 2013, the Company had $44.10 million in total assets, $36.66 million in total liabilities and $7.44 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/yyvggH About Energy Services Huntington, West Virginia-based Energy Services of America Corporation provides contracting services to America's energy providers, primarily the gas and electricity providers. Arnett Foster Toothman PLLC, in Charleston, West Virginia, expressed substantial doubt about Energy Services' ability to continue as a going concern following the annual report for the year ended Sept. 30 ,2012. The independent auditors noted that the Company has suffered recurring losses from operations and has entered into a forbearance arrangement with its lenders as a result of continued noncompliance with certain debt covenants. FINJAN HOLDINGS: Plans to Present at 16th Oppenheimer Conference ---------------------------------------------------------------- Finjan Holdings, Inc., intends to hold a presentation for certain stockholders, potential investors and their representatives regarding the business and historical and projected performance of the Company at the Oppenheimer & Co. 16th Annual Technology, Internet & Communications Conference. A copy of the presentation is available for free at http://is.gd/d4VI9j About Finjan Finjan is a leading online security and technology company which owns a portfolio of patents, related to software that proactively detects malicious code and thereby protects end-users from identity and data theft, spyware, malware, phishing, trojans and other online threats. Founded in 1997, Finjan is one of the first companies to develop and patent technology and software that is capable of detecting previously unknown and emerging threats on a real-time, behavior-based basis, in contrast to signature-based methods of intercepting only known threats to computers, which were previously standard in the online security industry. Converted Organics disclosed a net loss of $8.42 million in 2012, as compared with a net loss of $17.98 million in 2011. The Company's balance sheet at March 31, 2013, showed $2.66 million in total assets, $5.19 million in total liabilities, and a $2.53 million total stockholders' deficit. Moody, Famiglietti & Andronico, LLP, in Tewksbury, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012, citing recurring losses and negative cash flows from operations and an accumulated deficit that raises substantial doubt about the Company's ability to continue as a going concern. FIRST NATIONAL: Reports $720,000 Net Income in Second Quarter ------------------------------------------------------------- First National Community Bancorp, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $720,000 on $8.16 million of total interest income for the three months ended June 30, 2013, as compared with a net loss of $967,000 on $9.42 million of total interest income for the same period during the prior year. For the six months ended June 30, 2013, the Company reported net income of $2.45 million on $16.37 million of total interest income, as compared with a net loss of $2.13 million on $19.16 million of total interest income for the same period last year. The Company's balance sheet at June 30, 2013, showed $938.25 million in total assets, $906.71 million in total liabilities and $31.53 million in total shareholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/K6muO9 About First National Headquartered in Dunmore, Pa., First National Community Bancorp, Inc., is a Pennsylvania corporation, incorporated in 1997 and is registered as a bank holding company under the Bank Holding Company Act ("BHCA") of 1956, as amended. The Company became an active bank holding company on July 1, 1998, when it acquired ownership of First National Community Bank (the "Bank"). The Bank is a wholly-owned subsidiary of the Company. The Company's primary activity consists of owning and operating the Bank, which provides customary retail and commercial banking services to individuals and businesses. The Bank provides practically all of the Company's earnings as a result of its banking services. First National disclosed a net loss of $13.71 million on $37.02 million of total interest income for the year ended Dec. 31, 2012, as compared with a net loss of $335,000 on $42.93 million of total interest income in 2011. Regulatory Matters The Bank is under a Consent Order from the Office of the Comptroller of the Currency dated Sept. 1, 2010. The Company is also subject to a Written Agreement with the Federal Reserve Bank of Philadelphia dated Nov. 24, 2010. The Bank, pursuant to a Stipulation and Consent to the Issuance of a Consent Order dated Sept. 1, 2010, without admitting or denying any wrongdoing, consented and agreed to the issuance of the Order by the OCC, the Bank's primary regulator. The Order requires the Bank to undertake certain actions within designated timeframes, and to operate in compliance with the provisions thereof during its term. The Order is based on the results of an examination of the Bank as of March 31, 2009. Since the examination, management has engaged in discussions with the OCC and has taken steps to improve the condition, policies and procedures of the Bank. Compliance with the Order is monitored by a committee of at least three directors, none of whom is an employee or controlling shareholder of the Bank or its affiliates or a family member of any such person. The Committee is required to submit written progress reports on a monthly basis to the OCC and the Agreement requires the Bank to make periodic reports and filings with the Federal Reserve Bank. The members of the Committee are John P. Moses, Joseph Coccia, Joseph J. Gentile and Thomas J. Melone. Banking regulations also limit the amount of dividends that may be paid without prior approval of the Bank's regulatory agency. At Dec. 31, 2012, the Company and the Bank are restricted from paying any dividends, without regulatory approval. FLORIDA GAMING: Wins Authority to Use Cash ------------------------------------------ Douglas Hanks, writing for the Miami Herald, reports that Judge Robert A. Mark at an afternoon hearing on Aug. 21 allowed Florida Gaming to continue spending its cash on operations while owners, bankers and a potential buyer of the business fight it out in bankruptcy court. Florida Gaming Centers Inc. filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 13-29597) in Miami on Aug. 19, 2013. Florida Gaming Centers operates a casino and jai-alai frontons in Miami. The Company listed debt of $138.3 million and assets of $180 million in its petition. Its parent, Florida Gaming Corp. (FGMG:US), and two other affiliates also sought court protection. Florida Gaming previously negotiated a sale of virtually all its assets to casino operator Silvermark LLC for $115 million in cash and $14 million in assumed liabilities. A provision in the financing agreement required Florida Gaming to make an additional payment to the lender -- ABC Funding -- if the assets are sold to third party. Jefferies LLC was hired to determine that amount, about $26.8 million, and valued the company at more than $180 million. Luis Salazar, Esq., Esq., at Salazar Jackson in Miami, represents Florida Gaming. According to Miami Herald, ABC Funding accused the company of trying to use the Chapter 11 filing as a way to undo the $130 million deal. According to the report, Mr. Salazar told Judge Mark that the June $180 million valuation of the parent company, Florida Gaming Corp., came as a surprise after owners and a New York-based investment fund, Silver Entertainment, agreed in late 2012 to a $130 million sales price, which included $15 million in obligations. Florida Gaming, which earns most of its revenue from the Miami facility, was fending off a foreclosure fight by ABC Funding, the lender of the original $87 million needed to add the casino. Florida Gaming accused ABC of trying to use technical defaults to seize the profitable business. The Herald notes the valuation brought new problems for Florida Gaming because ABC had a right to an additional $27 million bonus based on the company's appraised value. The bonus and penalties tied to the ABC loan meant Florida Gaming owners and stock holders would receive nothing after selling the company, which ABC claims is the real motivation behind the trip to bankruptcy court. According to the Herald, Drew Dillworth, Esq. -- ddillworth@stearnsweaver.com -- a Stearns Weaver lawyer representing ABC, said the owners "didn't like the deal they cut 10 months ago. He said, "They're using the lender as a cover" to stop the sale. Acording to the report, Florida Gaming claims ABC acted to prevent the sale, which helped prompt the bankruptcy filing. Dillworth said ABC had expected the sale to close this week, and was stunned when Florida Gaming instead filed for Chapter 11 protection. The Herald also reports Judge Mark approved a motion not to treat as creditors any holders of outstanding poker chips (estimated value: $10,000), and allow the casino to honor the chits without court permission. He also agreed not to segregate from a trustee's portfolio the rolling jackpot account the casino maintains. FOREVERGREEN WORLDWIDE: Incurs $5,000 Net Loss in Second Quarter ---------------------------------------------------------------- Forevergreen Worldwide Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $5,383 on $4 million of net revenues for the three months ended June 30, 2013, as compared with a net loss of $38,772 on $3.12 million of net revenues for the same period a year ago. For the six months ended June 30, 2013, the Company incurred a net loss of $216,839 on $6.70 million of net revenues, as compared with a net loss of $165,663 on $6.72 million of net revenues for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $1.47 million in total assets, $6.11 million in total liabilities and a $4.64 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/C8wsSK About ForeverGreen Worldwide Orem, Utah-based ForeverGreen Worldwide Corporation is a holding company that operates through its wholly owned subsidiary, ForeverGreen International, LLC. The Company's product philosophy is to develop, manufacture and market the best of science and nature through innovative formulations as it produces and manufactures a wide array of whole foods, nutritional supplements, personal care products and essential oils. Sadler, Gibb & Associates, LLC, in Salt Lake City, UT, 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 accumulated net losses of $35,458,353 and has had negative cash flows from operating activities during the year ended Dec. 31, 2012, of $8,860. These matters raise substantial doubt about the Company's ability to continue as a going concern. FREESEAS INC: Issues Additional 1 Million Shares to Hanover ----------------------------------------------------------- FreeSeas Inc. issued and delivered to Hanover 1,000,000 additional settlement Shares pursuant to the terms of the Settlement Agreement approved by the Supreme Court of the State of New York, County of New York, on June 25, 2013. The Order approved, among other things, the settlement between FreeSeas Inc., and Hanover Holdings I, LLC, in the matter entitled Hanover Holdings I, LLC v. FreeSeas Inc., Case No. 651950/2013. Hanover commenced the Action against the Company on May 31, 2013, to recover an aggregate of $5,331,011 of past-due accounts payable of the Company, plus fees and costs. The Order provides for the full and final settlement of the Claim and the Action. Pursuant to the terms of the Settlement Agreement approved by the Order, on June 26, 2013, the Company issued and delivered to Hanover 890,000 shares of the Company's common stock, $0.001 par value, and between July 2, 2013, and Aug. 8, 2013, the Company issued and delivered to Hanover an aggregate of 11,333,000 Additional Settlement Shares. A copy of the Form 6-K is available for free at: http://is.gd/PfPjPS About FreeSeas Inc. Headquartered in Athens, Greece, FreeSeas Inc., formerly known as Adventure Holdings S.A., was incorporated in the Marshall Islands on April 23, 2004, for the purpose of being the ultimate holding company of ship-owning companies. The management of FreeSeas' vessels is performed by Free Bulkers S.A., a Marshall Islands company that is controlled by Ion G. Varouxakis, the Company's Chairman, President and CEO, and one of the Company's principal shareholders. The Company's fleet consists of six Handysize vessels and one Handymax vessel that carry a variety of drybulk commodities, including iron ore, grain and coal, which are referred to as "major bulks," as well as bauxite, phosphate, fertilizers, steel products, cement, sugar and rice, or "minor bulks." As of Oct. 12, 2012, the aggregate dwt of the Company's operational fleet is approximately 197,200 dwt and the average age of its fleet is 15 years. Freeseas disclosed a net loss of US$30.88 million in 2012, a net loss of US$88.19 million in 2011, and a net loss of US$21.82 million in 2010. The Company's balance sheet at Dec. 31, 2012, showed US$114.35 million in total assets, $106.55 million in total liabilities and US$7.80 million in total shareholders' equity. RBSM LLP, 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 the Company has incurred recurring operating losses and has a working capital deficiency. In addition, the Company has failed to meet scheduled payment obligations under its loan facilities and has not complied with certain covenants included in its loan agreements. It has also failed to make required payments to Deutsche Bank Nederland as agreed to in its Sept. 7, 2012, amended and restated facility agreement and received notices of default from First Business Bank. Furthermore, the vast majority of the Company's assets are considered to be highly illiquid and if the Company were forced to liquidate, the amount realized by the Company could be substantially lower that the carrying value of these assets. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. G&S METAL: Wants $33MM for Insurance Payout Delays -------------------------------------------------- Law360 reported that G&S Metal Consultants Inc. demanded that Continental Casualty Co. fork over more than $33 million in Indiana federal court, claiming the insurer's foot-dragging in paying out a business interruption policy following a plant explosion led to the company's 2009 bankruptcy. According to the report, G&S is seeking summary judgment for $33 million in consequential damages, a figure it says is consistent with the company's valuation prior to its collapse. The company fell apart following a November 2007 plant explosion that left one employee dead, the report related. GENE CHARLES: Court Confirms Modified Second Chapter 11 Plan ------------------------------------------------------------ Early this month the U.S. Bankruptcy Court for the Northern District of West Virginia confirmed Gene Charles Valentine Trust's Modified Second Chapter 11 Plan dated Aug. 2, 2013. Pursuant to the Debtor's Modified Second Chapter 11 Plan, the Allowed Class 1 Claims of Gulf Coast Bank and Trust Company and the United States Department of Agriculture (USDA) arising from the Gulf Coast Loans will be paid by (i) the payment of the $5.1 million balance in the Court Registry from the Auction Proceeds to Gulf Coast for itself and as servicer for the USDA within 10 days of the Effective Date of the Plan, and (ii) Loan 807/803 and 860 will be modified to show an aggregate balance due of $1,200,000 bearing no interest until Aug. 1, 2013, and payable in the amount of $10,000 per month commencing on Sept. 1, 2013, and the entire balance, principal and interest, payable on Aug. 1, 2015. Class 4 U.S. Bank, National Association, successor in interest to Bank of America, National Association, for the purposes of the Plan, is deemed to hold an Allowed Secured Claim of $1,811,383.14. The Debtor will pay the U.S. Bank Allowed Secured Claim in the ordinary course according to the terms of the Westlake Loan Documents. In addition, the Debtor will pay post-petition additions to the Allowed Secured Claim in the amount of $135,000 to be paid from the Westlake Loan Impound Accounts (maintained by the Debtor for the purposes of paying property tax, property insurance, and repair expenses on the Westlake Office Building) promptly following the Effective Date. Class 15 Interest Holders of the Debtor will retain their interest in the Debtor. A copy of the Modified Second Chapter 11 Plan dated Aug. 2, 2013, is available at: http://bankrupt.com/misc/genecharles.doc768.pdf Objections U.S. Bank filed on July 17 a limited objection to the Debtor's Modified Second Chapter 11 Plan dated June 5, 2013, citing that the Plan does not provide that the loan Documents will be reaffirmed and for the Trust to retain its liens. The United States Trustee, Judy A. Robbins, objected to the Second Plan of Reorganization dated May 21, 2013, citing that the Plan provides that: 12.6. Quarterly Fees. The Reorganized Debtor shall pay Quarterly Fees, based upon all post-confirmation disbursements made pursuant to the Plan for post-Confirmation periods within the time periods set forth in 28 U.S.C. Section 1930(a)(6). The UST said that she is concerned that this provision "disbursements made pursuant to the Plan" may be interpreted as limiting the application of quarterly fees to plan payments, instead of all post-petition disbursements by the Debtor, which would be contrary to the statute and the definition of post- petition disbursements established by the courts. Gulf Coast objected to the Debtor's Second Chapter 11 Plan dated June 19, 2013, citing that the Debtor's Second Plan cannot be confirmed because: (i) it violates Bankruptcy Code Section 1129(a)(3) because it was not filed in good faith; (ii) it violates Bankruptcy Code Section 1129(a)(5)(B) because it does not disclose the nature of the compensation of insiders retained by the reorganized Debtor; (iii) it violates Bankruptcy Code Section 1I29(a)(7) because Gulf Coast will receive under the Debtor's Second Plan less than it would receive if the Debtor were liquidated under Chapter 7; (iv) it violates Bankruptcy Code Section 1129(a)(ll) because it is not feasible and will likely be followed by further reorganization or liquidation; (v) it violates Bankruptcy Code Section 1129(b)(1) because it discriminates unfairly against the claims of Gulf Coast; and (vi) the Debtor's Second Plan violates Bankruptcy Code Section 1129(b)(1) and Section 1129(b)(2) because it is not fair and equitable to Gulf Coast. About Gene Charles Valentine A business trust created by investment advisor and broker-dealer agent Gene Charles Valentine sought Chapter 11 bankruptcy protection (Bankr. N.D. W.Va. Case No. 12-01078) in Wheeling, West Virginia on Aug. 9, 2012. The Gene Charles Valentine Trust owns commercial and real estate properties in West Virginia, the Financial West Group, the Peace Point Equestrian Center and the Aspen Manor. The Debtor disclosed in its schedules $34,101,393 in total assets and $22,623,554 in total liabilities. Financial West Investment Group, Inc., doing business as Financial West Group -- http://www.fwg.com/-- is a firm with more than 340 registered representatives supervised by 44 Offices of Supervisory Jurisdiction throughout the United States. Financial West Group is a FINRA, and SIPC member and SEC Registered Investment Advisor (over $1 billion under control) that offers a full range of financial products and services. Its corporate office 32 member staff is dedicated to providing registered representatives quality service and technology to allow them to focus on best servicing their investors needs. Aspen Manor -- http://www.aspenmanorresort-- is a resort that claims to be the "The Jewel of the Ohio Valley." Along with its architectural artistry, including hand-carved ceilings, the Manor is filled will original art, statues, historic furniture and artifacts. Bankruptcy Judge Patrick M. Flatley oversees the case. The Trust hired Mazur Kraemer Law Inc., in Weirton, W.V., as lead and local bankruptcy counsel. Weir & Parners LLP, in Philadelphia, serves as co-counsel. The U.S. Trustee said that an official committee has not been appointed in the bankruptcy case of Gene Charles Valentine Trust. GLOBAL CLEAN: Incurs $1.1-Mil. Net Loss in Second Quarter --------------------------------------------------------- Global Clean Energy Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.1 million on $48,828 of revenue for the three months ended June 30, 2013, compared with a net loss of $983,852 on $55,501 of revenue for the same period last year. The Company reported a net loss of $2.3 million on $154,455 of revenue for the six months ended June 30, 2013, compared with a net loss of $824,938 on $675,022 of revenue for the corresponding period of 2012. The Company's balance sheet at June 30, 2013, showed $24.0 million in total assets, $20.6 million in total liabilities, and stockholders' equity of $3.4 million. The Company incurred losses from continuing operations applicable to its common shareholders of $2,341,305 and $823,240 for the six- months ended June 30, 2013, and June 30, 2012, respectively, has an accumulated deficit applicable to its common shareholders of $27,574,888 at June 30, 2013. The Company also used cash in operating activities of $1,080,639 and $1,860,384 during the six- month period ended June 30, 2013, and June 30, 2012, respectively. At June 30, 2013, the Company has negative working capital of $4,094,539 and a stockholders' deficit attributable to its stockholders of $1,703,375. "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 at http://is.gd/Bfzlqg Long Beach, Calif.-based Global Clean Energy Holdings, Inc., is a multi-national, energy agri-business focused on the development of non-food based bio-feedstocks. GLOBALSTAR INC: Incurs $126.3 Million Net Loss in Second Quarter ---------------------------------------------------------------- Globalstar, Inc., reported a net loss of $126.27 million on $19.83 million of total revenue for the three months ended June 30, 2013, as compared with a net loss of $27.53 million on $19.98 million of total revenue for the same period last year. The increased net loss was also due to the impact of non-cash derivative gains and losses in the respective quarters, higher interest expense as the amount of interest being capitalized decreases and higher depreciation expense as the Company placed additional satellites into service. Mr. Monroe concluded, "In just two weeks, the final satellite of our second-generation constellation is scheduled to be placed into service, fully restoring the service capability of our Duplex growth engine. To support the return of our Duplex service and our slate of new products, we are putting more muscle behind our marketing efforts, balancing these investments with continued stringent operational discipline to maximize our revenue and EBITDA generation for the remainder of the year while building momentum heading into 2014. With superior service quality, feature-rich products and pricing that provides significant cost savings over our competitors' offerings, Globalstar is tapping a broader addressable market and offering a compelling value proposition to our customers. In addition, we believe we have made substantial progress at the FCC with our petition to obtain terrestrial authority to utilize our spectrum for terrestrial mobile broadband services and expect the FCC to release our requested notice of proposed rulemaking in the near future. Globalstar's Terrestrial Low Power Service is the only near-term solution to the increasing congestion being experienced in the public Wi-Fi bands and we are hopeful for a decision from the FCC before the end of the year." A copy of the press release is available for free at: http://is.gd/nonOYj About Globalstar Covington, Louisiana-based Globalstar Inc. provides mobile satellite voice and data services. Globalstar offers these services to commercial and recreational users in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Globalstar reported a net loss of $25.1 million on $19.3 million of revenue for the three months ended March 31, 2013, compared with a net loss of $24.5 million on $16.7 million of revenue for the same period last year. The Company's balance sheet at March 31, 2013, showed $1.391 billion in total assets, $921 million in total liabilities, and stockholders' equity of $469.6 million. The Company said in its Form 10-Q for the quarter ended March 31, 2013, "We currently lack sufficient resources to meet our existing contractual obligations over the next 12 months. As a result, there is substantial doubt that we can continue as a going concern. In order to continue as a going concern, we must obtain additional external financing; amend the Facility Agreement and certain other contractual obligations; and restructure the 5.75% Notes. GRAND CENTREVILLE: Wants to Use Cash Collateral ----------------------------------------------- Grand Centreville, LLC, seeks an interim court order for access to cash collateral to fund the continuous operation of its shopping center business and effectively administer its Chapter 11 estate. The Debtor specifically needs cash to pay vendors, pay its lender, meet ongoing operational expenses, satisfy current payment obligations to lessors and utilities, maintain current insurance policies, and preserve and protect its assets. The Debtor is the recipient of a $27 million prepetition note loan, now held by Wells Fargo Bank, N.A., as trustee for the registered holders of J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2005-CIBC13. To adequately protect the interests of Lender in the Cash Collateral, the Debtor proposes to grant to the Lender, to the extent of the use of the Cash Collateral, a postpetition replacement lien, which replacement lien will be of the same validity, priority and enforceability as the prepetition lien of Lender in those type of assets. To the extent Lender has a valid prepetition lien on any type of asset and the Debtor uses such collateral postpetition, the Lender will also secure a replacement lien in said type of postpetition asset. About Grand Centreville Grand Centreville, LLC, filed a Chapter 11 petition (Bankr. E.D. Va. Case No. 13-13590) on Aug. 2, 2013. The petition was signed by Michael L. Schuett, principal of Black Creek Consulting Ltd., the receiver. Judge Robert G. Mayer presides over the case. The Debtor estimated assets and debts of at least $10 million. GRAND CENTREVILLE: Wants to Employ Tavenner & Beran as Counsel -------------------------------------------------------------- Grand Centreville, LLC seeks court authority to hire Tavenner & Beran, PLC, as counsel for representation in all aspects of its Chapter 11 case. As counsel, Tavern & Beran is anticipated to render these legal services: -- advise the Debtor of its rights, power and duties as debtor- in-possession continuing to operate under Chapter 11; -- prepare on behalf of the Debtor all necessary applications, motions and other documents, and review all financial and other reports to be filed in the Chapter 11 case; -- advise the Debtor with respect to financing agreements, debt and cash collateral orders and related transactions; -- advise the Debtor on its ability to initiate actions to collect and recover property for the benefit of its estate; -- counsel the Debtor in connection with the formulation and negotiation of a plan of reorganization and related documents; -- assist in reviewing and resolving claims asserted against the Debtor's estate; and -- provide general corporate, litigation and other non- bankruptcy services for the Debtor. Tavenner & Beran professionals expected to provide services to the Debtor are: Lynn L. Tavenner, partner $385/hour Paula S. Beran, partner $375/hour David L. Leadbeater, paralegal $105/hour The Debtor believes Tavenner & Beran is a "disinterested person," as defined under Section 101(14) of the Bankruptcy Code. About Grand Centreville Grand Centreville, LLC, filed a Chapter 11 petition (Bankr. E.D. Va. Case No. 13-13590) on Aug. 2, 2013. The petition was signed by Michael L. Schuett, principal of Black Creek Consulting Ltd., the receiver. Judge Robert G. Mayer presides over the case. The Debtor estimated assets and debts of at least $10 million. GUITAR CENTER: Incurs $30.9 Million Net Loss in 2nd Quarter ----------------------------------------------------------- Guitar Center Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $30.97 million on $504.83 million of net sales for the three months ended June 30, 2013, as compared with a net loss of $28.76 million on $486.59 million of net sales for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $54.36 million on $1.03 billion of net sales, as compared with a net loss of $44.97 million on $1.01 billion of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $1.77 billion in total assets, $1.97 billion in total liabilities and a $202.90 million in total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/g5xoc2 About Guitar Center Guitar Center, Inc., headquartered in Westlake Village, Cal., is the largest musical instrument retailer with 312 stores and a direct response segment, which operates its Web sites. It operates three distinct musical retail business - Guitar Center (about 70% of revenue), Music & Arts (about 7% of revenue), and Musician's Friend (its direct response subsidiary with 24% of revenue). Total revenue is about $2 billion. Guitar Center disclosed a net loss of $72.16 million in 2012, a net loss of $236.93 million in 2011 and a $56.37 million net loss in 2010. Bankruptcy Warning "If our cash flows and capital resources are insufficient to fund our and Holdings' debt service obligations, we may be forced to reduce or delay capital expenditures, sell assets or operations, seek additional capital or restructure or refinance our and Holdings' indebtedness. We cannot provide any assurance that we would be able to take any of these actions, that these actions would be successful and permit us to meet our and Holdings' scheduled debt service obligations or that these actions would be permitted under the terms of our and Holdings' existing or future debt agreements. In the absence of such operating results and resources, we could face substantial liquidity problems and might be required to dispose of material assets or operations to meet our and Holdings' debt service and other obligations. Our senior secured credit facilities and the indentures that govern the notes will restrict our ability to dispose of assets and use the proceeds from the disposition. We may not be able to consummate those dispositions or to obtain the proceeds which we could realize from them and these proceeds may not be adequate to meet any debt service obligations then due. If we cannot make scheduled payments on our and Holdings' debt, we will be in default and, as a result: * our and Holdings' debt holders could declare all outstanding principal and interest to be due and payable; * the lenders under our senior secured credit facilities could terminate their commitments to lend us money and foreclose against the assets securing their borrowings; and * we could be forced into bankruptcy or liquidation," according to the Company's annual report for the period ended Dec. 31, 2012. * * * As reported in the Troubled Company Reporter on Feb. 28, 2011, Moody's Investors Service affirmed Guitar Center, Inc.'s Caa2 Corporate Family Rating and the $622 million existing term loan rating of Caa1 due October 2014. The Probability of Default Rating was revised to Caa2/LD from Caa2 while the Speculative Grade Liquidity assessment was changed to SGL-2 from SGL-3. The rating outlook remains stable. The Caa2/LD Probability of Default rating reflects Moody's view that the extended deferral of interest on the Holdco notes constitutes a distressed exchange under Moody's definition and also anticipates that additional exchanges of this nature are possible over the near term. The Limited Default designation was prompted by the company's executed amendment of the HoldCo notes, which allows for a deferral of 50% of the interest payments for 18 months. Moody's views this as a distressed exchange that provides default avoidance. This LD designation applies to the proposed follow-on amendment to defer the HoldCo note interest payments by another six months. Subsequent to the actions, Moody's will remove the LD designation and the PDR will be Caa2 going forward. As reported by the TCR on May 30, 2013, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Westlake Village, Calif.-based Guitar Center Holdings Inc. to 'CCC+' from 'B-'. "Our rating action reflects our view that the company's financial commitments are not sustainable in the long term given weaker than expected performance over the past two quarters," said credit analyst Mariola Borysiak. HIGHWAY TECHNOLOGIES: Sept. 27 Set as General Claims Bar Date ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware established Sept. 27, 2013, at 7 p.m., as the deadline for any individual or entity to file proofs of claim against Highway Technologies, Inc., et al. The Court set Nov. 18, at 7 p.m. as the governmental claims bar date. Proofs of claim must be submitted to the Debtors' claims agent Kurtzman Carson Consultants LLC, or with the: Clerk of the Bankruptcy Court District of Delaware 824 Market street, 3rd Floor Wilmington, DE 19801 About Highway Technologies Highway Technologies Inc. and affiliate HTS Acquisition Inc. sought Chapter 11 protection (Bankr. D. Del. Case Nos. 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. HOLT DEVELOPMENT: Wants Until Aug. 29 to Use Cash Collateral ------------------------------------------------------------ Holt Development Co., LLC, and Secured Creditor Heritage Bank ask the U.S. Bankruptcy Court for the Middle District of Tennessee to enter an Agreed Interim Order authorizing the Debtor to use cash collateral of Heritage Bank through Sept. 17, 2013, the date on which a final hearing on the use of cash collateral may be conducted by the Court. According to papers filed with the Court August 18, the Debtor and Heritage hope to have a more permanent agreement in place by the time of the final hearing. As of the Petition Date, Heritage asserts a valid and allowable claim against the Debtor in the principal amount of not less than $8,723,286.25, plus continuing and accruing interest, fees and expenses, arising from loans made by Heritage to the Debtor. The deadline for filing a timely response in Aug. 29, 2013. Any response must be filed electronically. If a response is timely filed, the hearing will be 9:00 a.m. on Sept. 17, 2013. Holt Development Co., LLC, filed a Chapter 11 petition (Bankr. M.D. Tenn. Case No. 13-06154) on July 16, 2013. The petition was signed by Dannie R. Holt as chief manager. Judge Randal S. Mashburn presides over the case. Gullett, Sanford, Robinson & Martin, PLLC, serves as the Debtor's counsel. The Debtor estimated assets of at least $10 million and debts of at least $1 million. The Debtor is in the business of developing improved and unimproved properties in Pleasant View, Cheatham County, Tennessee. HOLT DEVELOPMENT: Files Schedules of Assets and Liabilities ----------------------------------------------------------- Holt Development submitted to the U.S. Bankruptcy Court for the Middle District of Tennessee its schedules of assets and liabilities, disclosing: Assets Liabilities ----------- ----------- A. Real Property $12,499,000 B. Personal Property $78,049 C. Property Claimed as Exempt - D. Creditors Holding Secured Claims $9,445,425 E. Creditors Holding Unsecured Priority Claims $106,819 F. Creditors Holding Unsecured Nonpriority Claims $790,689 ----------- ----------- Total $12,577,049 $10,342,933 A copy of the Schedules is available at: http://bankrupt.com/misc/holtdevelopment.doc32.pdf Holt Development Co., LLC, filed a Chapter 11 petition (Bankr. M.D. Tenn. Case No. 13-06154) on July 16, 2013. The petition was signed by Dannie R. Holt as chief manager. Judge Randal S. Mashburn presides over the case. Gullett, Sanford, Robinson & Martin, PLLC, serves as the Debtor's counsel. The Debtor estimated assets of at least $10 million and debts of at least $1 million. The Debtor is in the business of developing improved and unimproved properties in Pleasant View, Cheatham County, Tennessee. IES GLOBAL: S&P Corrects Ratings Release ---------------------------------------- In an article published earlier on Aug. 20, 2013, Standard & Poor's Ratings Services said in error that it is revising IES Global B.V.'s recovery rating. The recovery rating is on three subsidiaries' debt. A corrected version follows. Standard & Poor's Ratings Services revised its recovery rating on Oak Brook, Ill.-based IES Global B.V.'s (doing business as International Equipment Solutions LLC [IES]) subsidiaries' senior secured first-lien term loan to '3' from '4'. The 'B+' issue- level rating on the term loan remains unchanged. The '3' recovery rating indicates expectations of meaningful (50%-70%) recovery in the event of a payment default. The revised recovery rating reflects S&P's assessment that there would be less first-lien debt outstanding at the time of its simulated bankruptcy due to the company's revision of the amortization schedule to 5% from 1% annually. Paladin Brands Holding Inc., Crenlo Cab Products Inc., and Emcor Enclosures Inc. are the borrowers under the first-lien term loan. IES' capital structure also includes an unrated $85 million asset- backed revolving credit facility and $69 million of unrated second-lien notes. S&P's 'B+' corporate credit rating and stable outlook on IES remain unchanged. RATINGS LIST Recovery Rating Revised IES Global B.V. Corporate Credit Rating B+/Stable/-- Crenlo Cab Products Inc. Emcor Enclosures Inc. Paladin Brands Holding Inc. Senior Secured To From US$270 mil term bank loan due 2019 B+ B+ Recovery Rating 3 4 IGPS COMPANY: Wants Case Caption Amended to Reflect Name Change --------------------------------------------------------------- iGPS Company LLC asks the U.S. Bankruptcy Court for the District of Delaware to enter an order amending the case caption used in its Chapter 11 case to change its name to "Pallet Company LLC." According to the Debtor's counsel, Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, in Wilmington, Delaware, the Court entered an order approving the Debtor's sale of substantially all of its assets to iGPS Logistics LLC pursuant to an amended asset purchase agreement, dated July 29, 2013, by and between the Purchaser and the Debtor. On Aug. 1, 2013, the Debtor and the Purchaser closed the sale. Mr. Schlerf states that pursuant to the APA, the Seller must take all steps necessary to formally change its name to a name that does not include "iGPS" or any similar word, acronym or terminology and will cease any further use thereof. A hearing on the Debtor's request will be held on Sept. 19, 2013, at 2:00 p.m. (ET). Objections are due Sept. 6. John H. Strock, Esq., and L. John Bird, Esq., at Fox Rothschild LLP, in Wilmington, Delaware; and John K. Cunningham, Esq., Richard S. Kebrdle, Esq., Kevin M. McGill, Esq., Fan B. He, Esq., at White & Case LLP, in Miami, Florida, also represent the Debtor. About iGPS Co. iGPS Company LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 13-11459) on June 4, 2013, to sell its assets to a group led by Balmoral Funds LLC, absent higher and better offers. iGPS Company -- http://www.igps.net-- is the first and only plastic pallet pooling rental and leasing company in the U.S. It offers plastic pallets with embedded radio frequency identification (RFID) tags. Founded in 2006, the company is headquartered in Orlando, Florida, and has a sales and innovation center in Bentonville, Arkansas. The Debtor estimated $100 million to $500 million in assets and liabilities in its Chapter 11 petition. According to the board resolution authorizing the bankruptcy, Pegasus IGPS LLC owns 12.55% of the company; iGPS Co-Investment LLC owns 18.75%; Kia VIII (iGPS Sub), LLC owns 30.74%; and KIA VIII iGPS Blocker, LLC, owns 12.27%. IGPS COMPANY: Committee Can Retain Emerald as Financial Advisors ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors appointed in the Chapter 11 case of iGPS Company LLC to retain Emerald Capital Advisors as financial advisors, nunc pro tunc to June 14, 2013. The firm's hourly rates are: Professional Rates ------------ ----- John P. Madden $600 Joseph Scopo $400 ECA Associates $300 ECA Analysts $200 About iGPS Co. iGPS Company LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 13-11459) on June 4, 2013, to sell its assets to a group led by Balmoral Funds LLC, absent higher and better offers. iGPS Company -- http://www.igps.net-- is the first and only plastic pallet pooling rental and leasing company in the U.S. It offers plastic pallets with embedded radio frequency identification (RFID) tags. Founded in 2006, the company is headquartered in Orlando, Florida, and has a sales and innovation center in Bentonville, Arkansas. The Debtor estimated $100 million to $500 million in assets and liabilities in its Chapter 11 petition. According to the board resolution authorizing the bankruptcy, Pegasus IGPS LLC owns 12.55% of the company; iGPS Co-Investment LLC owns 18.75%; Kia VIII (iGPS Sub), LLC owns 30.74%; and KIA VIII iGPS Blocker, LLC, owns 12.27%. INFUSYSTEM HOLDINGS: Posts $105,000 Net Income in Q2 ---------------------------------------------------- Infusystem Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $105,000 on $14.66 million of net revenues for the three months ended June 30, 2013, as compared with a net loss of $828,000 on $14.07 million of net revenues for the same period last year. For the six months ended June 30, 2013, the Company posted net income of $156,000 on $29.36 million of net revenues, as compared with a net loss of $1.74 million on $28.42 million of net revenues for the same period a year ago. Infusystem Holdings disclosed a net loss of $1.48 million in 2012, as compared with a net loss of $45.44 million in 2011. As of June 30, 2013, the Company had $75.75 million in total assets, $34.94 million in total liabilities and $40.80 million in total stockholders' equity. Jonathan P. Foster, chief financial officer, noted, "The combination of effective, on-going cost management practices, meaningful debt reduction of more than $2.5 million since December 31, 2012, and increasing free cash flow allows us to actively take advantage of growth opportunities. In particular, the increase of $1.3 million from medical equipment in rental service since year-end builds a strong base from which to generate even further rental revenue growth." A copy of the Form 10-Q is available for free at: http://is.gd/y1ufyy About InfuSystem Holdings InfuSystem Holdings, Inc., operates through operating subsidiaries, including InfuSystem, Inc., and First Biomedical, Inc. InfuSystem provides infusion pumps and related services. InfuSystem provides services to hospitals, oncology practices and facilities and other alternate site healthcare providers. Headquartered in Madison Heights, Michigan, InfuSystem delivers local, field-based customer support, and also operates pump service and repair Centers of Excellence in Michigan, Kansas, California, and Ontario, Canada. INTERLEUKIN GENETICS: Stockholders Elect Two Directors ------------------------------------------------------ At the 2013 annual meeting of stockholders of Interleukin Genetics, Inc., the shareholders: (1) elected William C. Mills III and James M. Weaver as Class I directors to each serve for a three-year term expiring at the Company's 2016 annual meeting of stockholders; (2) approved an amendment to the Company's Certificate of Incorporation, as amended, to increase the number of authorized shares of the Company's common stock from 150,000,000 to 300,000,000; (3) approved an amendment to the Company's Certificate of Incorporation, as amended, to effect a reverse stock split by combining outstanding shares of the Company's common stock into a lesser number of outstanding shares by a ratio of not less than 1-for-5 and not more than 1-for-20 at any time prior to the earlier of (i) Aug. 1, 2014, and (ii) the 2014 annual meeting of stockholders, with the exact ratio to be set within this range by the Company's board of directors in its sole discretion; (4) approved the 2013 Employee, Director and Consultant Equity Incentive Plan; (5) ratified the appointment of Grant Thornton LLP as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2013; (6) approved, on an advisory basis, the compensation of the Company's named executive officers; and (7) approved, on an advisory basis, the yearly frequency of advisory vote on the compensation of the Company's named executive officers every year. About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. Interleukin Genetics disclosed a net loss of $5.12 million in 2012, as compared with a net loss of $5.02 million in 2011. The Company's balance sheet at March 31, 2013, showed $2.17 million in total assets, $16.95 million in total liabilities and a $14.78 million total stockholders' deficit. Grant Thornton LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company incurred a net loss of $5,120,084 during the year ended December 31, 2012, and as of that date, the Company's total liabilities exceeded its total assets by $13,623,800. These conditions, among other factors, raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "We have retained a financial advisor and are actively seeking additional funding, however, based on current economic conditions, additional financing may not be available, or, if available, it may not be available on favorable terms. In addition, the terms of any financing may adversely affect the holdings or the rights of our existing shareholders. For example, if we raise additional funds by issuing equity securities, further dilution to our then- existing shareholders will result. Debt financing, if available, may involve restrictive covenants that could limit our flexibility in conducting future business activities. We also could be required to seek funds through arrangements with collaborators or others that may require us to relinquish rights to some of our technologies, tests or products in development. Our common stock was delisted from the NYSE Amex in 2010 and is currently trading on the OTCQBTM. As a result, our access to capital through the public markets may be more limited. If we cannot obtain additional funding on acceptable terms, we may have to discontinue operations and seek protection under U.S. bankruptcy laws." INTERNATIONAL COMMERCIAL: Posts $648,900 Net Income in Q2 --------------------------------------------------------- International Commercial Television Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $648,909 on $10.45 million of net sales for the three months ended June 30, 2013, as compared with net income of $112,474 on $3.83 million of net sales for the same period last year. For the six months ended June 30, 2013, the Company reported net income of $1.81 million on $22.85 million of net sales, as compared with net income of $90,866 on $6.49 million of net sales for the same period a year ago. International Commercial disclosed a net loss of $550,448 on $22.92 million of net sales for the year ended Dec. 31, 2012, as compared with a net loss of $485,892 on $3.10 million of net sales in 2011. The Company's balance sheet at June 30, 2013, showed $5.23 million in total assets, $3.43 million in total liabilities and $1.80 million in total shareholders' equity. Bankruptcy Warning "There is no guarantee that the Company will be successful in bringing our products into the traditional retail environment. If the Company is unsuccessful in achieving this goal, the Company will be required to raise additional capital to meet its working capital needs. If the Company is unsuccessful in completing additional financings, it will not be able to meet its working capital needs or execute its business plan. In such case the Company will assess all available alternatives including a sale of its assets or merger, the suspension of operations and possibly liquidation, auction, bankruptcy, or other measures. These conditions raise substantial doubt about the Company's ability to continue as a going concern," the Company said in the quarterly report. EisnerAmper, LLP, in Edison, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company's recurring losses from operations raise 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/9dghOJ About International Commercial Wayne, Pa.-based International Commercial Television Inc. sells various consumer products. The products are primarily marketed and sold throughout the United States and internationally via infomercials. INVERSIONES ALSACIA: Commences Consent Solicitation, Seeks Waiver ----------------------------------------------------------------- Inversiones Alsacia S.A. on Aug. 20 disclosed that it is soliciting consents from the holders of its 8.00% Senior Secured Notes due 2018 as well as its counterparties to two foreign currency hedge agreements relating to such Notes. Alsacia is requesting a waiver of any default, event of default, early amortization event, and certain covenants relating to the failure to maintain a Debt Service Coverage Ratio of 1.10:1.00 and the failure to fund the O&M Account in the amounts required under the Indenture dated as of February 18, 2011, as supplemented. The Holders and Notes Hedge Counterparties should refer to Alsacia's Consent Solicitation Statement dated August 19, 2013 and the related consent form for the detailed terms and conditions of the consent solicitation. Alsacia is offering a consent payment of US$2.50 for each US$1,000 in principal amount of Notes or in the value of the Notes Hedge Agreements for which a valid unrevoked consent is delivered, subject to the conditions set forth in the Consent Solicitation Statement. The record date for determining the Holders and Notes Hedge Counterparties who are entitled to consent is 5:00 p.m., New York City time on August 19, 2013. Approval of the proposed waivers requires the unrevoked consent of Holders and Notes Hedge Counterparties that, in the aggregate, hold more than 50% of the outstanding Notes principal and Notes Hedge Agreement value. In addition, the effectiveness of the proposed waiver is conditioned on (i) the absence of any law, regulation, injunction, action or other proceeding that would make unlawful or invalid or enjoin the implementation of the proposed waiver or the payment of the consent payment and (ii) other terms and conditions contained in the Consent Solicitation Statement. The consent solicitation will expire at 5:00 p.m., New York City time, on Tuesday, September 3, 2013, unless extended. Holders and Notes Hedge Counterparties may tender their consents to the Tabulation Agent as described below at any time before the expiration date. Consents received after the expiration time will not be eligible to receive the consent payment. Alsacia has retained BofA Merrill Lynch to serve as its Solicitation Agent and Global Bondholder Services Corporation to serve as the Information and Tabulation Agent for the consent solicitation. Questions concerning the terms of the consent solicitation and requests for documents should be directed to Global Bondholder Services Corporation, 65 Broadway - Suite 404, New York, New York 10006, Attention: Corporate Actions, at (212) 430-3774 or (866)-470-4300 (toll free). This announcement is not an offer to purchase or sell, a solicitation of an offer to purchase or sell, or a solicitation of consents with respect to, any securities. The solicitation is being made solely pursuant to Alsacia's Consent Solicitation Statement dated August 19, 2013. Notwithstanding Alsacia's intention to seek waivers, no assurance can be given that an early amortization event, default or event of default under the Indenture will not occur or continue in the future. About Alsacia Alsacia, together with its affiliate, Express de Santiago Uno S.A., are collectively the largest operator in the Transantiago Transportation System, transporting approximately 1.2 million passengers every day, throughout 35 communities in Santiago, which accounts for more than 30% of the passengers in Transantiago. Alsacia and Express belong to an international holding company with interests in public passenger transportation, environmental solutions, outsourcing services and real estate development in Chile, Colombia, Panama, Peru and the United States. IOWORLDMEDIA INC: Incurs $305,000 Net Loss in Second Quarter ------------------------------------------------------------ ioWorldMedia, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $305,285 on $380,195 of sales for the three months ended June 30, 2013, as compared with a net loss of $143,463 on $403,492 of sales for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $537,439 on $769,521 of sales, as compared with a net loss of $335,691 on $805,272 of sales for the same period during the prior year. ioWorldMedia disclosed a net loss of $746,619 in 2012, as compared with a net loss of $954,652 in 2011. The Company's balance sheet at June 30, 2013, showed $1.73 million in total assets, $1.88 million in total liabilities, $5.77 million in preferred stock, and a $5.92 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/7OlF7Z About ioWorldMedia Tampa, Fla.-based ioWorldMedia, Incorporated, operates three primary internet media subsidiaries: Radioio, ioBusinessMusic, and RadioioLive. Patrick Rodgers, CPA, PA, in Altamonte Springs, FL, 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 minimum cash balance available for payment of ongoing expenses, a negative working capital balance, has incurred losses and negative cash flow from operations for the past two years, and it does not have a source of revenue sufficient to cover its operating costs. These factors raise substantial doubt about the Company's ability to continue as a going concern. IPC INTERNATIONAL: Section 341(a) Meeting Scheduled for Sept. 11 ---------------------------------------------------------------- A meeting of creditors in the bankruptcy case of IPC International Corporation will be held on Sept. 11, 2013, at 1:00 p.m. in Room 2112 of the J. Caleb Boggs Federal Building, 844 King Street, Wilmington, DE. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About IPC International IPC International Corp., a provider of security services for 350 shopping malls, filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 13-bk-12050) on Aug. 9 in Delaware after signing a contract for Universal Protection Services LLC to buy the business for $21.3 million plus assumption of specified liabilities. Scott M. Strong signed the petition as chief financial officer. The Debtor estimated assets and debts of at least $10 million. Jeremy William Ryan, Esq., and Etta Ren Wolfe, Esq., at POTTER ANDERSON & CORROON, LLP, serves as the Debtor's counsel. Proskauer Rose, LLP, serves as the Debtor's general bankruptcy counsel. Silverman Consulting, LLC, acts as the Debtor's financial advisor and Livingstone Partners, LLP, serves as the Debtor's investment banker. KCC is the Debtor's noticing, claims and balloting agent. Judge Mary F. Walrath presides over the case. IPC INTERNATIONAL: Gets Interim OK for $12MM DIP Loan ----------------------------------------------------- Law360 reported that bankrupt shopping mall security firm IPC International Corp. won interim approval of a $12 million post- petition revolving credit facility the company says will help fund its case while it zeroes in on a $21 million stalking horse sale to rival Universal Protection Service LLC. According to the report, U.S. Bankruptcy Judge Mary F. Walrath agreed to give the green light to debtor-in-possession financing from prepetition lender the PrivateBank and Trust Co., giving IPC interim access to up to $8 million in revolving credit. IPC International Corp., a provider of security services for 350 shopping malls, filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 13-bk-12050) on Aug. 9 in Delaware after signing a contract for Universal Protection Services LLC to buy the business for $21.3 million plus assumption of specified liabilities. IPC, based in Bannockburn, Illinois, is asking the bankruptcy judge to approve auction procedures under which competing bids would be due on Sept. 16, followed by an auction on Sept. 18 and a hearing on Sept. 25 to approve sale. Even without a higher bid at auction, the price will be sufficient to pay secured creditors in full along with expenses of the bankruptcy. Unsecured creditors should receive some recovery from the sale. The petition shows assets and liabilities both exceeding $10 million. Liabilities include $6.9 million on a revolving credit and $10.4 million on term loans owing to PrivateBank & Trust Co., as agent. Bankruptcy was the result of losses on a U.K. affiliate that was sold, as well as competition and the cost of liability insurance. IRONSTONE GROUP: Incurs $52,000 Net Loss in Second Quarter ---------------------------------------------------------- Ironstone Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $52,385 for the three months ended June 30, 2013, as compared with a net loss of $42,108 for the same period last year. For the six months ended June 30, 2013, the Company incurred a net loss of $93,040 as compared with a net loss of $55,863 for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $1.10 million in total assets, $1.54 million in total liabilities and a $442,802 total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/0WfeCV About Ironstone Group San Francisco, Calif.-based Ironstone Group, Inc., and subsidiaries have no operations but are seeking appropriate business combination opportunities. Madsen & Associates CPA's, Inc., in Murray, 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 does not have the necessary working capital for its planned activity, which raises substantial doubt about its ability to continue as a going concern. ISC8 INC: Obtains $3.4 Million Notes Subscription Commitments ------------------------------------------------------------- ISC8, Inc., on Aug. 8, 2013, received subscription agreements from certain accredited investors to purchase senior subordinated secured convertible promissory notes in the aggregate principal amount of $3.4 million, which amount includes an original issue discount of 7.7 percent, whereby the Notes contain an additional 7.7 percent of principal, such that the total principal amount represented by the Notes is $3.2 million. The Notes are a part of the senior subordinated secured promissory notes authorized for issuance by the Company's Board of Directors in the aggregate principal amount of up to $20 million on March 7, 2013. The Notes accrue simple interest at a rate of 12 percent per annum and are due and payable on Jan. 31, 2014. The Notes are secured under the terms of the Security Agreement, and are subordinate to the Existing Secured Debt of the Company. The Company and Costa Brava Partnership III L.P. entered into the Seventh Omnibus Amendment, which amends and modifies the terms of certain promissory notes of the Company and the Security Agreement, dated March 16, 2011, as amended, between the Company and Costa Brava, to permit the issuance of the Notes. Costa Brava is the Company's largest stockholder and one of its largest creditors. A copy of the Seventh Omnibus Amendment is available for free at http://is.gd/CcGcSH About ISC8 Inc. Costa Mesa, California-based ISC8 Inc. is engaged in the design, development, manufacture and sale of a family of security products, consisting of cyber security solutions for commercial and U.S. government applications, secure memory products, some of which utilize technologies that the Company has pioneered for three-dimensional ("3-D") stacking of semiconductors, systems in a package ("Systems in a Package" or "SIP"), and anti-tamper systems. Squar, Milner, Peterson, Miranda & Williamson, LLP, in Newport Beach, California, expressed substantial doubt about ISC8 Inc.'s ability to continue as a going concern. The independent auditors noted that as of Sept. 30, 2012. the Company has negative working capital of $10.1 million and a stockholders? deficit of $35.4 million. The Company reported a net loss of $19.7 million on $4.2 million of revenues in fiscal 2012, compared with a net loss of $15.8 million on $5.2 million of revenues in fiscal 2011. The Company's balance sheet at March 31, 2013, showed $4.71 million in total assets, $47.74 million in total liabilities and a $43.02 million total stockholders' deficit. J.C. PENNEY: Ackman Quits Board Over CEO Search Controversy ----------------------------------------------------------- William A. Ackman has resigned from the Board of Directors of J. C. Penney Company, Inc., effective Aug. 12, 2013. Mr. Ackman was the Chair of the Finance and Planning Committee and a member of the Human Resources and Compensation Committee and the Committee of the Whole. Mr. Ackman's resignation was the result of a disagreement with decisions made by the Board of Directors related to the timing and process surrounding the CEO search. Effective August 12, the Board of Directors elected Ronald W. Tysoe, a highly respected retail industry executive who spent 16 years as Vice Chairman at Federated Department Stores Inc. (now Macy's, Inc.), as member of the Board. The Board said it intends to name another highly qualified new director in the near future. In connection with his election to the Board, and pursuant to the terms of the Company's 2012 Long-Term Incentive Plan, Mr. Tysoe will be granted an award of restricted stock units having a market value of $120,405 on Aug. 15, 2013. This award represents a pro- rata amount of the current annual equity award to non-associate directors based on the effective date of Mr. Tysoe's election. Thomas Engibous, Chairman of the Board of Directors, said, "The Company is extremely fortunate to have the benefit of Ron Tysoe's judgment and experience at this important time. His deep knowledge of the retail industry and his financial expertise will be invaluable to us as we continue the work underway to return J. C. Penney to profitability and growth. I would like to thank Bill Ackman for his service on the Board over the past two years." Mr. Ackman said, "During my time on the J. C. Penney Board of Directors, I have always advocated for what I believe to be in the best interests of the Company -- its stockholders, employees and others. At this time, I believe that the addition of two new directors and my stepping down from the Board is the most constructive way forward for J. C. Penney and all other parties involved." Mr. Tysoe said, "J. C. Penney is one of America's great companies, and I am very happy to be joining the Board of Directors. I look forward to working collaboratively with the rest of the Board and management to advance the turnaround currently underway." The Board also reaffirmed its overwhelming support for Chief Executive Officer Myron E. (Mike) Ullman, III, and for Chairman Thomas Engibous, both of whom have been working tirelessly to position the Company for future success. This important work has included stabilizing the Company's operations and financial position, restoring confidence among vendors, and taking steps to get customers back into stores. The Board expresses its deep appreciation for the efforts of the Company's 116,000 associates, who continue to provide outstanding service to J. C. Penney's customers during the back-to-school season. It is also grateful to the many vendors and other business partners, as well as stockholders, who have taken the opportunity during the past week to express their confidence in the Company's leadership and its current path. Ronald W. Tysoe has over 20 years of retail, finance and real estate investment industry experience. He served as a member of the Board of Directors of Federated Department Stores Inc. from 1988 to 2005, as Vice Chairman for Finance and Real Estate from 1990 to 2006, and as Chief Financial Officer from 1990 to 1997. Mr. Tysoe currently serves on the boards of the Canadian Imperial Bank of Commerce (NYSE: CM), Scripps Networks Interactive (NYSE: SNI), Cintas Corporation (NASDAQ: CTAS), and Taubman Centers, Inc. (NYSE: TCO). He received his Bachelor of Commerce and Bachelor of Law degrees from the University of British Columbia. About J.C. Penney Plano, Texas-based J.C. Penney Company, Inc. is one of the U.S.'s largest department store operators with about 1,100 locations in the United States and Puerto Rico. J.C. Penney disclosed a net loss of $985 million in 2012, as compared with a net loss of $152 million in 2011. As of May 4, 2013, the Company had $10.37 billion in total assets, $7.50 billion in total liabilities and $2.86 billion in total stockholders' equity. * * * The Company carries Moody's Investors Service's B3 Corporate Family Rating with negative outlook. Early in March 2013, Standard & Poor's Ratings Services lowered its corporate credit rating on Penney to 'CCC+' from 'B-'. The outlook is negative. At the same time, S&P lowered the issue- level rating on the company's unsecured debt to 'CCC+' from 'B-' and maintained its '3' recovery rating on this debt, indicating S&P's expectation of meaningful (50% to 70%) recovery for debtholders in the event of a payment default. "The downgrade reflects the performance erosion that has accelerated throughout the previous year and seems likely to persist over the next 12 months," explained Standard & Poor's credit analyst David Kuntz. At the same time, Fitch Ratings downgraded the Company's Issuer Default Ratings to 'B-' from 'B'. The Rating Outlook is Negative. The rating downgrades reflect Fitch's concerns that there is a lack of visibility in terms of the Company's ability to stabilize its business in 2013 and beyond after a precipitous decline in revenues leading to negative EBITDA of $270 million in 2012. Penney, Fitch said, will need to tap into additional funding to cover a projected FCF shortfall of $1.3 billion to $1.5 billion in 2013, which could begin to strain its existing sources of liquidity. In February 2013, Penney received a notice of default from a law firm representing more than 50% of its 7.4% Debentures due 2037. The Company has filed a lawsuit in Delaware Chancery Court seeking to block efforts by the bondholder group to declare a default on the 2037 bonds. Penney also asked lawyers at Brown Rudnick LLP to identify the investors they represent. In March 2013, Penney received a letter from bondholders withdrawing and rescinding the Notice of Default. On April 12, 2013, Penney borrowed $850 million out of its $1.85 billion committed revolving credit facility with JPMorgan Chase Bank, N.A., as Administrative Agent, and Wells Fargo Bank, National Association, as LC Agent. Penney said the move was to enhance the Company's financial flexibility and position. J.C. PENNEY: Moody's Keeps Ratings over Poor 2nd Qtr. Performance ----------------------------------------------------------------- Moody's Investors Service stated that J.C. Penney Company, Inc.'s Caa1 Corporate Family Rating, SGL-3 Speculative Grade Liquidity Rating and negative outlook are not currently impacted by JCP's disappointing second quarter results. 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. J.C. Penney Company, Inc. is one of the U.S.'s largest department store operators with about 1,100 locations in the United States and Puerto Rico. It also operates a website, www.jcp.com. Revenues are over $12 billion. JACKSON HEWITT: Franchisee Stiffed Workers on OT, Suit Says ----------------------------------------------------------- Law360 reported that a Florida franchisee of bankrupt Jackson Hewitt Inc. was hit with a proposed class action alleging it failed to pay certain employees for overtime and required extra, uncompensated work by tacking "manager" to employees' titles. TaxPrep1 Inc. forced so-called office managers to work more than 40 hours a week without paying overtime, in violation of the Fair Labors Standards Act, according to the complaint filed in Florida federal court, the report related. The Jackson Hewitt franchisee instead "lumped" the work into a fixed weekly salary, the report said. The case is Kelley et al v. Taxprep1, Inc., Case No. 6:13-cv-01265 (M.D.Fla.) before Senior Judge G. Kendall Sharp. About Jackson Hewitt Parsippany, New York-based Jackson Hewitt Tax Service Inc., aka JHTS Inc., provides computerized preparation services for federal, state and local individual income tax returns in the United States through a nationwide network of franchised and company-owned offices operating under the brand name Jackson Hewitt Tax Service. The Company has 700 franchisees that collectively operated a total of 4,846 offices. The Company also operates 1,110 company-owned offices. Jackson Hewitt and its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11587) on May 24, 2011. Judge Mary F. Walrath presided over the bankruptcy case. Skadden, Arps, Slate, Meagher & Flom LLP, served as the Debtors' bankruptcy counsel. Alvarez & Marsal North America, LLC, served as their financial advisor. Moelis & Company LLC acted as investment banker. The Garden City Group, Inc., served as the Debtors' Claims and Noticing Agent. The Debtors also tapped Deloitte & Touche to serve as tax advisors and Kekst & Company to serve as communications advisors. BDO Financial served as financial advisors to the Official Committee of Unsecured Creditors. As of June 30, 2011, Jackson Hewitt's balance sheet showed $390.3 million in total assets, $432.9 million in total liabilities, and a stockholders' deficit of $42.6 million. Jackson Hewitt on Aug. 8, 2011, received confirmation of its "pre-packaged" Plan of Reorganization. Under the Plan, Jackson Hewitt emerged as a private company with Bayside Capital becoming the majority owner. Bayside is an affiliate of Miami, Florida- based H.I.G. Capital, and the largest holder of Jackson Hewitt's secured debt prior to its restructuring. JACKSON HEWITT: Says Bankruptcy Precludes $7MM Suit --------------------------------------------------- Law360 reported that Jackson Hewitt Inc. asked a New Jersey federal judge to dismiss a $7 million suit filed by an Oregon franchisee alleging tortious interference, saying the franchisee's claims were discharged when it signed a release as part of Jackson Hewitt's Chapter 11 restructuring. According to the report, Jackson Hewitt argued in its motion to dismiss that its franchisee, Boise, Idaho-based FasTax Inc., had no standing to bring claims against it because eight of FasTax's nine claims were discharged as part of the tax preparation company's bankruptcy proceedings. The case is FASTAX, INC. v. JACKSON HEWITT, INC. et al., Case No. 2:13-cv-03078 (D.N.J.) before Judge William J. Martini. About Jackson Hewitt Parsippany, New York-based Jackson Hewitt Tax Service Inc., aka JHTS Inc., provides computerized preparation services for federal, state and local individual income tax returns in the United States through a nationwide network of franchised and company-owned offices operating under the brand name Jackson Hewitt Tax Service. The Company has 700 franchisees that collectively operated a total of 4,846 offices. The Company also operates 1,110 company-owned offices. Jackson Hewitt and its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11587) on May 24, 2011. Judge Mary F. Walrath presided over the bankruptcy case. Skadden, Arps, Slate, Meagher & Flom LLP, served as the Debtors' bankruptcy counsel. Alvarez & Marsal North America, LLC, served as their financial advisor. Moelis & Company LLC acted as investment banker. The Garden City Group, Inc., served as the Debtors' Claims and Noticing Agent. The Debtors also tapped Deloitte & Touche to serve as tax advisors and Kekst & Company to serve as communications advisors. BDO Financial served as financial advisors to the Official Committee of Unsecured Creditors. As of June 30, 2011, Jackson Hewitt's balance sheet showed $390.3 million in total assets, $432.9 million in total liabilities, and a stockholders' deficit of $42.6 million. Jackson Hewitt on Aug. 8, 2011, received confirmation of its "pre-packaged" Plan of Reorganization. Under the Plan, Jackson Hewitt emerged as a private company with Bayside Capital becoming the majority owner. Bayside is an affiliate of Miami, Florida- based H.I.G. Capital, and the largest holder of Jackson Hewitt's secured debt prior to its restructuring. JAMES RIVER: Commences Exchange Offer for Conv. Senior Notes ------------------------------------------------------------ James River Coal Company has commenced exchange offers for its outstanding 4.50 percent and 3.125 percent convertible senior notes. The Company is offering to exchange (i) up to $31.739 million aggregate principal amount of its 10.00 percent Convertible Senior Notes due 2018 for any and all of its outstanding 4.50 percent Convertible Senior Notes due 2015 and (ii) up to $22.705 million aggregate principal amount of its New Notes for any and all of its outstanding 3.125 percent Convertible Senior Notes due 2018. Holders may tender all, some or none of their Existing 2015 Notes or Existing 2018 Notes. In exchange for each $1,000 principal amount of Existing 2015 Notes that is validly tendered and accepted, holders of those tendered notes will receive $620.00 principal amount of the Company's New Notes. In exchange for each $1,000 principal amount of Existing 2018 Notes that is validly tendered and accepted, holders of those tendered notes will receive $440.00 principal amount of the Company's New Notes. The Company will also pay in cash accrued and unpaid interest on Existing 2015 Notes and Existing 2018 Notes accepted for exchange from the last applicable interest payment date to but excluding the settlement date. The exchange offers will expire at 11:59 p.m., New York City time, on Sept. 11, 2013. The Company may extend the expiration date and time of either or both the exchange offers, and such applicable date and time will be referred to as the "Expiration Date". Holders may withdraw existing notes tendered in the applicable exchange offer at any time prior to the Expiration Date. Any notes withdrawn pursuant to the terms of these exchange offers will not thereafter be considered tendered for any purpose unless and until that note is again tendered pursuant to the exchange offers. Existing notes not exchanged in the exchange offers will be returned to the tendering holder at the Company's expense promptly after the expiration or termination of the exchange offers. The New Notes will comprise part of the same series as the $123,261,000 aggregate principal amount of notes issued by the Company on May 22, 2013, in separate, privately negotiated exchange transactions completed in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended and Regulation D promulgated under the Securities Act. Payments of principal, premium, if any and interest on the New Notes will be guaranteed by the Company and all of the Company's current subsidiaries. U.S. Bank National Association will serve as exchange agent and information agent for the exchange of New Notes for the Existing 2015 Notes and Existing 2018 Notes. Lazard Freres & Co. LLC is acting as financial advisor to the Company in connection with structuring the terms and conditions of the exchange offers. A registration statement on Form S-4 relating to the New Notes has been filed with and declared effective by the Securities and Exchange Commission. The Company also filed with the SEC a Schedule TO in connection with the transaction, a copy of which is available for free at: http://is.gd/CJ3VeF About James River Headquartered in Richmond, Virginia, James River Coal Company (NasdaqGM: JRCC) -- http://www.jamesrivercoal.com/-- mines, processes and sells bituminous steam and industrial-grade coal primarily to electric utility companies and industrial customers. The company's mining operations are managed through six operating subsidiaries located throughout eastern Kentucky and in southern Indiana. James River reported a net loss of $138.90 million in 2012, as compared with a net loss of $39.08 million in 2011. The Company's balance sheet at March 31, 2013, showed $1.16 billion in total assets, $944.75 million in total liabilities and $215.26 million in total shareholders' equity. * * * In the May 24, 2013, edition of the TCR, Moody's Investors Service downgraded James River Coal Company's Corporate Family Rating to Caa2 from Caa1. "While the company continues to take actions to reposition operations and shore up its balance sheet, we expect external factors will preclude James River from maintaining credit measures and liquidity consistent with the Caa1 rating level," said Ben Nelson, Moody's lead analyst for James River Coal Company. As reported by the TCR on Nov. 19, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Richmond, Va.-based James River Coal Co. to 'CCC' from 'SD' (selective default). "We raised our rating on James River Coal because we understand that the company has stopped repurchasing its debt at deep discounts, for the time being," said credit analyst Megan Johnston. JEFFERSON COUNTY, AL: Sees Higher Yields, Size on Ch. 9 Exit Bond ----------------------------------------------------------------- Michael Connor, writing for Reuters, reported that Alabama's Jefferson County has hiked forecasts for yields it expects to pay and increased the planned size of a bond sale vital to its reorganization plan to pay off Wall Street creditors and exit America's second-largest municipal bankruptcy. According to documents revised after recent sharp increases in U.S. interest rates, which Jefferson County officials say could threaten their $4.2 billion negotiated plan of adjustment, the county now forecasts tax-free yields ranging from 4.5 percent to 7 percent on $1.98 billion of new debt, the report related. The county, whose finances were crippled by soured sewer system debt, corruption and a fall-off in revenue, had forecast in June that the late 2013 bond deals would total $1.89 billion and, depending on maturities as long as 40 years and type, yield between 3.5 percent and 6.75 percent, the report related. The bond monies would pay off sewer-system creditors owed $3.1 billion at about a 40 percent discount and fund capital spending on the county's sewer system, the report further related. Another $1 billion of school and other county debt is also covered in the plan of adjustment. Contained in a disclosure document for creditors approved last week by a U.S. bankruptcy judge, the revisions also included a big increase, to $458.4 million from $174.5 million, in the amount of convertible capital appreciation bonds Jefferson County hopes to sell, the report said. 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. K-V PHARMACEUTICAL: Key Hearing in Bankruptcy Set ------------------------------------------------- Bloomberg News reported that creditors of St. Louis-based K-V Pharmaceutical Co. have a pivotal hearing on Thursday when a bankruptcy judge in New York is expected to decide whether senior noteholders are entitled to recover $32.8 million in post- bankruptcy interest before holders of convertible notes begin recovering on their subordinated claims. The decision precedes a confirmation hearing, set for Aug. 28, on K-V's reorganization plan, the report said. That plan is based on a compromise in which holders of $200 million in convertible notes can buy the lion's share of the reorganized business, the report related. If they win the interest rate dispute on Thursday, the company they own will be more valuable. In exchange for the $200 million in convertible debt, holders will receive 7 percent of the reorganized company's stock, for a predicted recovery of 10.9 percent, according to the revised disclosure statement, the report said. 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. KEYUANA LLC: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Keyuana, LLC 670 W 20th St. Hialeah, FL 33010 Bankruptcy Case No.: 13-29398 Chapter 11 Petition Date: August 15, 2013 Court: United States Bankruptcy Court Southern District of Florida (Miami) Judge: Laurel M. Isicoff Debtor's Counsel: Giovanni Nicosia, Esq. 4175 Davie Rd # 110 Davie, FL 33314 Tel: (954) 726-5580 E-mail: nicosialaw@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Mehrdad Fahimipour, manager/member. KINBASHA GAMING: Posts $779,000 Net Income in June 30 Quarter ------------------------------------------------------------- Kinbasha Gaming International, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $779,000 on $18.74 million of net revenues for the three months ended June 30, 2013, as compared with a net loss of $1.90 million on $23.93 million of net revenues for the same period last year. As of June 30, 2013, the Company had $117.05 million in total assets, $145.13 million in total liabilities and a $28.08 million total shareholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/RjhfOu About Kinbasha Gaming Westlake Village, California-based Kinbasha Gaming International, Inc., owns and operates retail gaming centers, commonly called "pachinko parlors," in Japan. These parlors, which resemble Western style casinos, offer customers the opportunity to play the games of chance known as pachinko and pachislo. Pachinko gaming is one of the largest entertainment business segments in Japan. These operations are conducted predominately through Kinbasha's 98 percent owned Japanese subsidiary, Kinbasha Co. Ltd. ("Kinbasha Japan"). Kinbasha Japan has been in this business since 1954. As of September 30, 2012, the Company operated 21 pachinko parlors, of which 18 were in the Japanese prefecture of Ibaraki, two were in the Tokyo metropolis, and one was in the Chiba prefecture. Marcum, LLP, in Los Angeles, CA, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2013. The independent auditors noted that the Company has incurred substantial losses, its current liabilities exceeds its current assets and the Company is delinquent on the repayment of its capital lease obligations and notes payable that raise substantial doubt about its ability to continue as a going concern. Unit's Bankruptcy Warning "Our operations are conducted through a 98% owned Japanese subsidiary, Kinbasha Co. Ltd. This subsidiary has been in this business since 1954. As of May 31, 2013, we had 21 pachinko parlors with 7,463 pachinko machines. Eighteen of our parlors are in the Japanese prefecture of Ibaraki, two are in the Tokyo metropolis, and one is in the prefecture of Chiba. "We had net revenues of $91.2 million and $93.9 million in our fiscal years ended March 31, 2012 and 2013, respectively, and net loss of $6.0 million in fiscal year 2012 and net income of $11.6 million in fiscal year 2013. As of March 31, 2013, we had total debt of $132.3 million, of which $97.1 million of debt was in default ($77.6 million of principal and $19.5 million of interest and penalty interest). Because we do not have the financial resources to pay our defaulted debt, our creditors could force Kinbasha Japan into a liquidation bankruptcy, in which event we would lose our pachinko licenses and Kinbasha Japan would cease operations. However, most of this debt has been in default for up to seven years and to date no creditor has attempted to force us into a liquidation bankruptcy," the Company said in its annual report for the year ended March 31, 2013. KINGSBURY CORP: Sept. 25 Hearing on US Trustee's Dismissal Motion ----------------------------------------------------------------- The hearing to consider the motion of the United States Trustee to dismiss or convert each of Kingsbury Corporation, Donson Group, Ltd., and Ventura Industries, LLC's bankruptcy cases is scheduled for Sept. 25, 2013, at 9:00 a.m. According to papers filed with the Court on Aug. 2, 2013, U.S. Trustee for Region 1 William K. Harrington's motion is based on the inability of the Debtors to propose a confirmable plan of reorganization. The U.S. Trustee said: "Kingsbury has ceased operations. Substantially all of Kingsbury's tangible personal property has been sold, and its real property has been foreclosed upon. Upon information and belief, Kingsbury's primary remaining assets consist of its post-petition causes of action arising from alleged collusive activity in connection with the sale of Kingsbury's machinery, equipment and personal property. "The Debtors do not have sufficient cash on hand to pay administrative, priority and tax claims in full. Instead, the Debtors have filed a plan which depends on the successful prosecution of Kingsbury's post-petition claims for its funding. Because a plan based on the outcome of litigation is by its very nature speculative, and because the Debtors have no other source of income with which to satisfy the confirmation requirements of 11 U.S.C. Sec. 1129(a)(9)(A),(B) and (C), the Debtors cannot demonstrate the ability to propose a feasible Chapter 11 plan within a reasonable period of time." About Kingsbury Corp. Kingsbury Corp. -- http://www.kingsburycorp.com/-- makes and assembles machine systems. Kingsbury and affiliate Ventura Industries, LLC, filed Chapter 11 petition (Bankr. D. N.H. Case Nos. 11-13671 and 11-13687) on Sept. 30, 2011. Maire B. Corcoran, Esq., Robert J. Keach, Esq., Jessica A. Lewis, Esq., and Jennifer Rood, Esq., at Berstein, Shur, Sawyer & Nelson, serve as counsel to the Debtors. Donnelly Penman & Partners serves as its investment banker. In its schedules, the Debtor disclosed $10,134,679 in assets, and $24,534,973 in liabilities as of the petition date. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to serve on the Official Committee of Unsecured Creditors. Steven C. Reingold, Esq., and Bruce F. Smith, Esq., at Jager Smith P.C., represent the Official Committee of Unsecured Creditors as counsel. KSTW ACQUISITION: Moody's Withdraws Ratings over Kohlberg Pullout ----------------------------------------------------------------- Moody's Investors Service withdrew all of KSTW Acquisition, Inc.'s ratings in response to Kohlberg & Co.'s August 13 announcement that it has withdrawn its $438 million offer to buy Steinway Musical Instruments. KSTW is an affiliate of Kohlberg, a private equity firm, and was the acquisition vehicle to be used by Kohlberg to facilitate its purchase of Steinway. Ratings withdrawn: Corporate Family Rating, at B2; Probability of Default Rating, at B2-PD; First lien senior secured term loan due 2019, at B1 (LGD 3, 42%); Second lien secured term loan due 2020, at Caa1 (LGD 5, 80%) In a separate announcement made on August 14, Steinway said that it had entered into a definitive merger agreement with Paulson & Co. valuing Steinway at about $512 million, approximately $75 million more than Kohlberg's bid. The agreement with Paulson does not provide for a "go-shop" period, but Steinway is permitted to respond to unsolicited offers in certain circumstances, and ultimately, to accept a superior proposal until the closing of the tender offer. Paulson is required to commence a tender offer to acquire all outstanding shares of Steinway's common stock for $40 per share in cash. The offer is not subject to financing conditions. Closing of the tender offer is subject to regulatory approvals. The proposed transaction is expected to close in late September. Upon completion of the proposed transaction, Steinway will become a privately held company. Steinway Musical Instruments, Inc., headquartered in Waltham, Massachusetts, manufacturers of variety of musical instruments. The company's products include Steinway & Sons, Boston and Essex pianos, Selmer Paris saxophones, Bach Stradivarius trumpets, C.G. Conn French horns, King trombones, and Ludwig snare drums. Revenues for the twelve month period ended June 30, 2013 were approximately $360 million. LA CUADRA: Case Summary & 8 Unsecured Creditors ----------------------------------------------- Debtor: La Cuadra Company, LLC 11621 Drexel Street Omaha, NE 68137 Bankruptcy Case No.: 13-81746 Chapter 11 Petition Date: August 15, 2013 Court: United States Bankruptcy Court District of Nebraska (Omaha Office) Judge: Thomas L. Saladino Debtor's Counsel: Kathryn J. Derr, Esq. KATHRYN J. DERR, PC, LLO 1301 South 75th Street, Suite 100 Omaha, NE 68124 Tel: (402) 827-7000 Fax: (402) 827-7001 E-mail: kderr@berkshire-law.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the list of eight largest unsecured creditors is available for free at http://bankrupt.com/misc/neb13-81746.pdf The petition was signed by Claudia Josefina Newton Frausto. LANDAUER HEALTHCARE: Can Use Cash On Hand to Fund Ch. 11 Sale ------------------------------------------------------------- Law360 reported that a Delaware bankruptcy judge gave Landauer- Metropolitan Inc. the green light to tap cash collateral, allowing the medical equipment supplier to fund an anticipated short stay in Chapter 11 on its way to a $22 million going-concern sale. According to the report, at a hearing in Wilmington, U.S. Bankruptcy Judge Christopher S. Sontchi signed off on the cash collateral motion and slate of other first-day pleadings designed to keep Landauer Metro operational as it pursues a Section 363 sale to $22 million stalking horse Quadrant Management Inc. About Landauer Healthcare Holdings Home medical equipment provider Landauer Healthcare Holdings, Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12098) on Aug. 16, 2013, with a deal to sell all assets to Quadrant Management Inc. for $22 million, absent higher and better offers. The Company has 32 operating locations, with 50% of inventory concentrated in Mount Vernon, New York; Great Neck, New York; Warwick, Rhode Island; and Philadelphia, Pennsylvania. Landauer, which derives revenues by reimbursement from insurers, Medicare and Medicaid, reported net revenues of $128.5 million in fiscal year ended March 31, 2013. Landauer estimated assets and debt of at least $50 million. The Debtors have tapped K&L Gates LLP as bankruptcy counsel, Young Conaway Stargatt & Taylor LLP as Delaware counsel, Carl Marks Advisory Group as financial advisors, and Epiq Systems as claims and notice agent. LANDAUER HEALTHCARE: Meeting to Form Creditors' Panel on Aug. 26 ---------------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on August 26, 2013 at 1:00 p.m. in the bankruptcy case of Landauer Healthcare Holdings, Inc., et al. The meeting will be held at: J. Caleb Boggs Federal Building 844 King St., Room 5209 Wilmington, DE 19801 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. LEHMAN BROTHERS: UBS Agrees to Pay $120 Million to Settle Claims ---------------------------------------------------------------- David McLaughlin, writing for Bloomberg News, reported that UBS AG, Switzerland's largest bank, agreed to pay $120 million to settle claims by investors in Lehman Brothers Holdings Inc. securities in a lawsuit tied to the investment bank's 2008 collapse. According to the report, UBS was accused of violating federal securities laws in underwriting and selling the securities to investors, who claimed that offering materials contained misleading information about Lehman Brothers' financial condition. "UBS is pleased to have resolved this legacy litigation matter arising out of the 2008 financial crisis," the Zurich-based lender said in a statement. "UBS agreed to the settlement to avoid the cost and uncertainty of continued litigation." The settlement, disclosed on Aug. 9 in a filing in federal court in New York, compares "favorably" with other recoveries stemming from the credit crisis, the plaintiffs said. Lehman Brothers filed for bankruptcy in September 2008. The settlement, which requires court approval, represents a recovery of 13.4 percent of the total face value of securities at issue, or about $896 million, without taking into account UBS's defenses and rights of offset, according to the court filing. The case is In re Lehman Brothers Securities and Erisa Litigation, 09-md-02017, U.S. District Court, Southern District of New York (Manhattan). 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. LIFE CARE: To Hire Continuum Development as Review Consultant ------------------------------------------------------------- Life Care St. Johns, Inc., doing business as Glenmoor, seeks authority from the U.S. Bankruptcy Court for the Middle District of Florida to employ Continuum Development Services as its operational review consultant. Continuum will provide an independent assessment of Glenmoor's operations and make recommendations for improving revenues based on its findings. Continuum will also prepare a report of its findings, recommendation and conclusions within 45 days of its engagement. Continuum's consulting fees for the review of Glenmoor during the Assessment Phase will be $60,000. Actual out-of-pocket expenses are not expected to exceed 15% of project costs. Continuum requires a retainer equal to 50% of project costs prior to the site visit. A second payment equal to 35% of project costs will be due after the site visit is completed. The final billing for remaining project costs will occur upon submission of the written draft report. Daniel H. Gray -- Dan.gray@consulting-cds.com -- president of Continuum, assures the Court that Continuum is a "disinterested person" within the meaning of Sections 101(14) and 327(a) of the Bankruptcy Code, and does not hold or represent any interest adverse to the Debtor or its Chapter 11 estate, creditors, or any other party with an actual or potential conflict in the Chapter 11 case. The Court will convene a preliminary hearing on August 22, 2013, at 1:30 p.m., to consider the Debtor's request. The Debtor is represented by Richard R. Thames -- rrt@stmlaw.net -- and Eric N. McKay -- enm@stmlaw.com -- at Stutsman Thames & Markey, P.A. Life Care St. Johns, Inc., filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 13-04158) on July 3, 2013. The Debtor is the owner and operator of a continuing care retirement community known as Glenmoor consisting of 144 independent living units located on a 40-acre site in St. Johns County, Florida. Bruce Jones signed the petition as CEO. Judge Jerry A. Funk presides over the case. The Debtor estimated assets of at least $10 million and debts of at least $50 million. Stutsman Thames & Markey, P.A., serves as the Debtor's counsel. Navigant Capital Advisors, LLC, acts as the Debtor's financial advisor. American Legal Claim Services, LLC, serves as claims and noticing agent. LIFE CARE: Creditors Committee Gets OK to Tap Akerman as Counsel ---------------------------------------------------------------- The Official Committee of Creditors Holding Unsecured Claims of Life Care St. Johns, Inc., sought and obtained permission from the U.S. Bankruptcy Court for the Middle District of Florida to retain Akerman Senterfitt as its counsel, effective as of August 7, 2013. Judge Jerry A. Funk held that compensation for professional services rendered and reimbursement of costs advanced will be fixed by the Court upon application and notice as may be directed by the Court in accordance with the order approving interim compensation procedures for professionals. The Committee had previously sought the Court's approval to pay Akerman based on its standard hourly rates, which range from $440 to $470 for shareholders, $230 to $285 for associates and of-counsel, and $185 to $190 for paralegals. David E. Otero -- david.otero@akerman.com -- a partner in Akerman's Bankruptcy and Reorganization Group had assured the Court that his firm does not represent any other entity having an adverse interest to the Committee or to the Debtor's estate in connection with its Chapter 11 case. Counsel for the Committee includes John B. Macdonald -- john.macdonald@akerman.com -- and Christian P. George -- christian.george@akerman.com Life Care St. Johns, Inc., filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 13-04158) on July 3, 2013. The Debtor is the owner and operator of a continuing care retirement community known as Glenmoor consisting of 144 independent living units located on a 40-acre site in St. Johns County, Florida. Bruce Jones signed the petition as CEO. Judge Jerry A. Funk presides over the case. The Debtor estimated assets of at least $10 million and debts of at least $50 million. Stutsman Thames & Markey, P.A., serves as the Debtor's counsel. Navigant Capital Advisors, LLC, acts as the Debtor's financial advisor. American Legal Claim Services, LLC, serves as claims and noticing agent. LIFE CARE: Files Schedules of Assets and Liabilities ---------------------------------------------------- Life Care St. Johns, Inc., filed with the U.S. Bankruptcy Court for the Middle District of Florida its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $20,005,229.00 B. Personal Property $16,303,177.59 C. Property Claimed as Exempt D. Creditors Holding Secured Claims 57,145,893.75 E. Creditors Holding Unsecured Priority Claims 332,176.68 F. Creditors Holding Unsecured Non-priority Claims 59,827,554.75 -------------- -------------- TOTAL $36,308,406.59 $117,305,625.18 Life Care St. Johns, Inc., filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 13-04158) on July 3, 2013. The Debtor is the owner and operator of a continuing care retirement community known as Glenmoor consisting of 144 independent living units located on a 40-acre site in St. Johns County, Florida. Bruce Jones signed the petition as CEO. Judge Jerry A. Funk presides over the case. The Debtor estimated assets of at least $10 million and debts of at least $50 million. Stutsman Thames & Markey, P.A., serves as the Debtor's counsel. Navigant Capital Advisors, LLC, acts as the Debtor's financial advisor. American Legal Claim Services, LLC, serves as claims and noticing agent. LIFE CARE: Amends List of Top Unsecured Creditors ------------------------------------------------- Life Care St. Johns, Inc. submitted an amended list of its top largest unsecured creditors. The list of the Debtor's 20 largest unsecured creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Series 2006(a) Bondholders, as Blanket Lien on $57,145,893 Described on the attached listing Company Assets Refund Queue Holder 75% Refund $423,900 Contract No. 1019 Refund Queue Holder 90% Refund $415,143 Contract No. 1023 Refund Queue Holder 90% Refund $364,725 Contract No. 1008 Refund Queue Holder 75% Refund $364,125 Contract No. 1011 Refund Queue Holder 90% Refund $359,910 Contract No. 1003 Refund Queue Holder 75% Refund $357,825 Contract No. 1010 Refund Queue Holder 90% Refund $341,910 Contract No. 1002 Refund Queue Holder 75% Refund $313,650 Contract No. 1027 Refund Queue Holder 90% Refund $311,940 Contract No. 1015 Refund Queue Holder 75% Refund $296,250 Contract No. 1029 Refund Queue Holder 75% Refund $296,250 Contract No. 1009 Refund Queue Holder 90% Refund $292,590 Contract No. 1022 Refund Queue Holder 90% Refund $283,720 Contract No. 1020 Refund Queue Holder 90% Refund $274,016 Contract No. 1017 Refund Queue Holder 90% Refund $265,500 Contract No. 1001 Refund Queue Holder 90% Refund $260,910 Contract No. 1012 Refund Queue Holder 90% Refund $260,261 Contract No. 1024 Refund Queue Holder 90% Refund $256,163 Contract No. 1005 Refund Queue Holder 90% Refund $233,010 Contract No. 1004 Life Care St. Johns, Inc., filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 13-04158) on July 3, 2013. The Debtor is the owner and operator of a continuing care retirement community known as Glenmoor consisting of 144 independent living units located on a 40-acre site in St. Johns County, Florida. Bruce Jones signed the petition as CEO. Judge Jerry A. Funk presides over the case. The Debtor estimated assets of at least $10 million and debts of at least $50 million. Stutsman Thames & Markey, P.A., serves as the Debtor's counsel. Navigant Capital Advisors, LLC, acts as the Debtor's financial advisor. American Legal Claim Services, LLC, serves as claims and noticing agent. LIME ENERGY: Incurs $6.7-Mil. Net Loss in First Quarter ------------------------------------------------------- Lime Energy Co. filed with the U.S. Securities and Exchange Commission on Aug. 9, 2013, its quarterly report on Form 10-Q, reporting a net loss of $6.7 million on $12.0 million of revenue for the three months ended March 31, 2013, compared with a net loss of $4.2 million on $11.5 million of revenue for the same period last year. The Company's balance sheet at March 31, 2013, showed $32.4 million in total assets, $29.6 million in total liabilities, and stockholders' equity of $2.8 million. BDO USA, LLP, in Chicago, in their audit report on Lime Energy's financial statements for the year ended Dec. 31, 2012, said that the Company's recurring losses and negative cash flow from operations raise substantial doubt about its ability to continue as a going concern. A copy of the Form 10-Q is available at http://is.gd/gKAawZ Explanatory Note Lime Energy Co. previously disclosed by means of Current Reports on Form 8-K filed on July 17, 2012, and Dec. 28, 2012, that its consolidated financial statements for the years ended Dec. 31, 2008, 2009, 2010, and 2011, as well as its quarterly financial statement for the three-month period ended March 31, 2012, could no longer be relied on due to errors in recognition of revenue. Background of the Restatement Following a partial internal review of certain accounting records, on Friday, July 13, 2012, Jeffrey Mistarz, the Company's Chief Financial concluded that that there was preliminary evidence suggesting that there had been misreporting of revenue from the Company's utilities division. At the request of Mr. Mistarz and John O'Rourke, the Company's Chief Executive Officer, the Company's regular outside corporate counsel immediately began a preliminary investigation of the facts and circumstances related to the misreporting of revenue. On Saturday, July 14, 2012, the directors of the Company were informed of the reasons for the internal investigation. A meeting of the Audit Committee was held on Sunday, July 15, 2012. At that meeting, the Audit Committee determined that the Company's consolidated financial statements on Form 10-K for the periods ended Dec. 31, 2010, and Dec. 31, 2011, and quarterly report on Form 10-Q for the period ended March 31, 2012 could no longer be relied upon. On July 22, 2012, the Audit Committee met and established a subcommittee to conduct an independent investigation of the misreporting of revenue. The subcommittee retained its own independent counsel and forensic accountants. As part of the independent investigation, limited reviews were made of selected projects from the Company's divisions other than the utilities division. That review led to the discovery of misreporting of revenues from the public sector division, and the Company discovered evidence suggesting that there had been misreporting of revenues in the years ended Dec. 31, 2008, and 2009. On Dec. 21, 2012, the Audit Committee determined that the Company's financial statements for those years could no longer be relied on. The independent investigation determined that the utilities and public sector divisions did misreport revenue. The misreporting of revenue comprised the recognition of approximately $17.4 million of cumulative revenue through the first quarter of 2012 in periods earlier than the period in which such revenue should have been recognized and the recognition of approximately $14.2 million of revenue for which there was no underlying contract or for which the revenue recognized exceeded the amount of the contract. The increase in the cumulative retained deficit through Dec. 31, 2010, resulting from these overstatements was $2.6 million. The requirements for recognizing all but $500 thousand of the revenue recognized earlier than appropriate was met as of the end of 2012. As a result of that determination, the Company has restated its financial statements for each of the years 2008 through 2011 and for the first quarter of 2012. As a result of the independent investigation, the Company has discharged seven employees identified as having been involved in the misreporting of revenue. Annual Report on Form 10-K for 2012 On July 31, 2013, Lime Energy Co. filed its annual report on Form 10-K for the year ended Dec. 31, 2012, which includes the Company's restated financial statements for the years ended Dec. 31, 2011. For the year ended Dec. 31, 2012, the Company reported a net loss of $31.8 million on $43.4 million of revenue, compared with a net loss (As Restated) of $18.9 million on $41.9 million of revenue for the year ended Dec. 31, 2011. The Company's balance sheet at Dec. 31, 2012, showed $45.1 million in total assets, $35.8 million in total liabilities, and stockholders' equity of $9.3 million. A copy of the Form 10-K is available at http://is.gd/sLj4En Restated Quarterly Report for Quarter Ended March 31, 2012 On July 31, 2013, the Company filed its quarterly report on Form 10-Q that contained the restated, unaudited financial statements for the quarter ended March 31, 2012, along with the unaudited financial statements for the three-month and six-month period ended June 30, 2012, and the three month and nine month period ended Sept. 30, 2012. For the three month period ended March 31, 2012, the Company reported a net loss (As Restated) of $4.2 million on $25.9 million of revenue, compared with a net loss (As Restated) of $2.6 million on $24.8 million of revenue of the three months ended March 31, 2011. For the three months ended June 30, 2012, the Company reported a net loss of $4.7 million on $21.6 million of revenue, compared with a net loss (As Restated) of $5.0 million on $22.1 million of revenue for the three months ended June 30, 2011. For the three months ended Sept. 30, 2012, the Company reported a net loss of $6.6 million on $18.2 million of revenue, compared with a net loss (As Restated) of $1.8 million on $26.1 million of revenue for the three months ended Sept. 30, 2011. The Company's balance sheet at Sept. 30, 2012, showed $52.0 million in total assets, $27.9 million in total liabilities, and stockholders' equity of $24.1 million. A copy of the Form 10-Q for the three months ended Sept. 30, 2012, is available at http://is.gd/NyfQIV About Lime Energy Huntersville, N.C.-based Lime Energy Co. designing and implementing energy efficiency programs that enable our utility clients to reach their underserved markets and achieve their energy reduction goals. MARIA SEEDORFF: Obtains Student Loan Bankruptcy Discharge --------------------------------------------------------- The United States Bankruptcy Court for the Western District of Missouri entered an Order on May 29, 2013 approving a settlement for a Missouri woman owing more than $400,000 in student loans. Per the settlement the woman, Maria Seedorff, is entitled to receive a bankruptcy discharge of up to $325,000 of student loans. The holders of the student loan debt were Suntrust Bank and Educational Management Corp. Ms. Seedorff agreed to a repayment schedule of approximately 25% of the balance over a ten (10) year period of time. Upon successful completion of the partial repayment, the entire balance will be discharged. Neil Sader and Megan Dennis of The Sader Law Firm represented Ms. Seedorff. Mr. Sader stated "while student loans generally are not dischargeable in bankruptcy, there is a hardship provision which can be used in certain deserving circumstances." The client in this case was 50 years old and incurred the majority of the debt while she obtained her chiropractic degree in the1990s. She later incurred additional debt by trying to help her children with their school expenses. The pleadings also stated that she continued with her schooling, thereby incurring more debt, in order to increase her earnings so she could repay her loans. Megan Dennis stated "what set this case apart were two factors: Ms. Seedorff could not even pay the increasing monthly interest on the balance due and she had some physical limitations that imperiled her future earning ability." Ms. Seedorff was employed in a professional capacity at the time of the filing. Mr. Sader, who is certified as a Consumer Bankruptcy Law specialist by the American Board of Certification, commented "this was one of the largest student loan discharge cases I have seen, and even heard of, in my career of almost 30 years. It is vital to let those suffering from student loan problems, and those that care about them, know that bankruptcy discharges are possible in the right circumstance." The Sader Law Firm is located in Kansas City, Missouri and practices consumer and business bankruptcy law throughout the states of Missouri and Kansas. The Firm and its members are available to answer questions about this case and other potential cases where bankruptcy might be an answer for a student loan problem. METROPLAZA HOTEL: Hearing to Approve Plan Outline on Sept. 3 ------------------------------------------------------------ The hearing to approve the adequacy of the Disclosure Statement for Metroplaza Hotel, Inc., and Inn at Woodbridge, LLC's Joint Plan of Reorganization will be held on Sept. 3, 2013, at 2:00 p.m. Written objections to the adequacy of the Disclosure Statement will be filed no later than 14 days prior to the hearing before the U.S. Bankruptcy Court for the District of New Jersey, unless otherwise directed by the Court. The Debtors' Plan is a liquidating plan. WBCMT 2006-C24 Wood Avenue, LLC, the secured creditor holding the mortgaged encumbering the Property owned by Metroplaza, will be permitted to credit bid up to the full amount of its secured claim; or it may set a reserve price beyond which it will not bid. Following the Sale and receipt of the funds the Debtors will distribute the funds as are available to the holders of all allowed administrative claims, priority claims and to the Township of Woodbridge on account of its secured sewer rent lien and then turn over to the Creditor Trustee all remaining cash, accounts receivable, and Causes of Action. The Creditor Trustee will liquidate the Trust Assets and distribute them under the Plan to holders of allowed claims. WBCMT assets a secured claim in the Metroplaza case in the amount of $54,562,726 and an unsecured claim in the Inn case of $54,546,726. The Inn disputes that WBCMT has a claim in the Inn case and filed a motion to expunge the WBCMT claim. Woodbridge Township has asserted a secured claim for sewer rents in the approximate amount of $161,979 in the Metroplaza case. Total scheduled or filed unsecured claims in the Metroplaza case aggregate $400,000 inclusive of the security deposit claims. Excluding the $54,000,000 claim asserted by WBCMT, total scheduled or filed unsecured claims in the Inn case aggregate approximately $470,000. There are no secured claims against the Inn. Below is the estimated percentage recovery of Allowed Claims and Equity Interests under each of the Plans: Class Classification Recovery ----- -------------- -------- 1 Allowed Secured Claim of WBCMT in Metroplaza 100% 2 Allowed Unsec. Claims in the Inn and Metroplaza 50% 3 Secured Claim of the Township of Woodbridge 100% 4 Deficiency Claim of WBMCT in Metroplaza 0% 5 Disputed Claim of WBCMT in the Inn 0% 6 Debtors' Equity Holder Claims 0% The allowed secured claim of WBCMT is to be allowed in an agreed upon amount. The Debtors have proposed $40 million and are awaiting a response from WBCMT. If WBCMT exercises it right to credit bid and is the successful bidder at the sale, it will upon the closing date transfer to the Debtors by wire transfer an agreed upon sum representing the WBCMT Carve Out (for claimants other than WBCMT). The parties are discussing between $750,000 and $1,000,000. Should WBCMT elect to accept in lieu of the property, the purchase price as tendered by a successful bidder, less the Estate Carve Out, it will accept such cash payment in full satisfaction of its secured claim. WBCMT will not receive a distribution on account of its Deficiency Claim in the Metroplaza case. The equity holder will receive no distribution or thing of value under the Plan if the successful bidder at the sale is WBCMT. In the event the successful bidder is other than WBCMT, the Debtors will each receive a 2.5% interest in the Purchaser which interest will be subordinate to all capital invested and loans obtained by the Purchaser with no managerial or voting rights in the Purchaser. Neither of the Debtors will retain any interest in the Excluded Assets. About Metroplaza Hotel Inn at Woodbridge, Inc., and Metroplaza Hotel, LLC, sought Chapter 11 protection (Bankr. D.N.J. Case Nos. 12-38603 and 12-38611) in Trenton on Dec. 6, 2012. Metroplaza Hotel disclosed assets of $36.2 million and liabilities of $42.2 million, including $41.9 million owed to secured creditor WBCMT 2006-C24 Wood Avenue, LLC. Metroplaza owns an 11-story hotel and office building on a 9.95-acre site in Iselin, New Jersey, which is valued at $35.5 million. The property serves as collateral to the WBCMT debt. David L. Bruck, Esq., at Greenbaum, Rowe, Smith & Davis LLP, represents Inn at Woodbridge, Inc., as Chapter 11 counsel. Joseph DiPasquale, Esq., at Trenk, DiPasquale, Della Fera & Sodono, P.C., represents Metroplaza Hotel, LLC, as Chapter 11 counsel. MILAGRO OIL: Incurs $9.3 Million Net Loss in Second Quarter ----------------------------------------------------------- Milagro Oil & Gas, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common shareholders of $9.27 million on $39.07 million of total revenues for the three months ended June 30, 2013, as compared with net income available to common shareholders of $1.01 million on $47.22 million of total revenues for the same period last year. For the six months ended June 30, 2013, the Company incurred a net loss available to common shareholders of $25.94 million on $67.34 million of total revenues, as compared with a net loss available to common shareholders of $22.21 million on $81.15 million of total revenues for the same period a year ago. Milagro Oil disclosed a net loss of $33.39 million in 2012, a net loss of $23.57 million in 2011 and a net loss of $70.58 million in 2010. As of June 30, 2013, the Company had $483.83 million in total assets, $449.08 million in total liabilities, $236.26 million in redeemable series A preferred stock, and a $201.51 million total stockholders' deficit. Bankruptcy Warning "The Company is currently exploring a range of alternatives to reduce indebtedness to the extent necessary to be in compliance with the leverage ratio and interest coverage ratio. Alternatives that were considered include using cash flow from operations or issuances of equity and debt securities, reimbursements of prior leasing and seismic costs by third parties who participate in our projects, and the sale of interests in projects and properties. As another alternative, the Company has launched a private exchange offering to exchange a portion of the Notes for equity, cash and new notes. If a minimum principal amount of at least $237.5 million of the outstanding principal amount of the Notes are not tendered (excluding any such Notes validly withdrawn) in the Exchange Offer, the conditions to the Exchange Offer will not have been achieved and the Company will be unable to consummate the restructuring. As a result, the lenders under the 2011 Credit Facility may accelerate their debt, which would also cause a default and acceleration of the debt under the Notes, all of which will have a material adverse effect on our liquidity, business and financial condition and may result in the Company's bankruptcy or the bankruptcy of its subsidiaries," the Company said in the Report. A copy of the Form 10-Q is available for free at: http://is.gd/PYAsiy About Milagro Oil Milagro Oil & Gas, Inc., is an independent energy company based in Houston, Texas that is engaged in the acquisition, development, exploitation, and production of oil and natural gas. The Company's historic geographic focus has been along the onshore Gulf Coast area, primarily in Texas, Louisiana, and Mississippi. The Company operates a significant portfolio of oil and natural gas producing properties and mineral interests in this region and has expanded its footprint through the acquisition and development of additional producing or prospective properties in North Texas and Western Oklahoma. Deloitte & Touche LLP, 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 is not in compliance with certain covenants of its 2011 Credit Facility, and all of the Company's debt is classified within current liabilities as of Dec. 31, 2012. The Company's violation of its debt covenants, combined with its financing needs and negative working capital position, raise substantial doubt about its ability to continue as a going concern. Bankruptcy Warning "The Company is currently exploring a range of alternatives to reduce indebtedness to the extent necessary to be in compliance with the maximum leverage ratio. Alternatives that were considered include using cash flow from operations or issuances of equity and debt securities, reimbursements of prior leasing and seismic costs by third parties who participate in our projects, and the sale of interests in projects and properties. As another alternative, the Company has recently launched a private exchange offering to exchange a portion of the Notes for equity, cash and new notes. If the conditions to the Exchange Offer are not achieved, the Company will be unable to consummate the restructuring. As a result, the lenders under the 2011 Credit Facility may accelerate their debt, which would also cause a default and acceleration of the debt under the Notes, all of which will have a material adverse effect on our liquidity, business and financial condition and may result in the Company's bankruptcy or the bankruptcy of its subsidiaries." * * * As reported by the TCR on May 24, 2013, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Houston- based Milagro Oil & Gas Inc. to 'CC' from 'CCC-'. "We lowered the corporate credit and senior unsecured ratings to 'CC' to reflect the potential for a selective default on Milagro's $250 million 10.5% senior secured notes due 2016, due to certain aspects of the company's exchange offer that would constitute a distressed exchange under our criteria," said Standard & Poor's credit analyst Christine Besset. MOSS FAMILY: Can Use Fifth Third's Cash Collateral Thru Oct. 31 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Indiana signed on an agreed order extending Moss Family Limited Partnership's use of Fifth Third Bank's cash collateral through Oct. 31, 2013. The Court entered the interim order with the understanding that the Lender has not yet approved the proposed 2013 budget presented by the Debtor, but has allowed the Debtors to operate under the 2013 Budget while the parties discuss their issues. A further hearing on the cash collateral use will be held on Oct. 22, 2013, at 9:30 a.m. Sheila A. Ramacci, Esq., of Freeland $ Associates, P.C., represent the Debtors. She can be reached at 9105 Indianapolis Blvd., Highland, Indiana 43622 with phone no. (219) 922-0800 and fax no. (219) 922-1261. Mark Adey, Esq. -- mark.adey@btlaw.com -- of Barnes & Thornburg LLP, represents Fifth Third Bank. He can be reached at 11 South Merifian Street, Indianapolis, Indiana 46204-3535 with phone no. (317) 236-1313 and fax no. (317) 231-7433. About Moss Family Moss Family Limited Partnership and Beachwalk, L.P., filed Chapter 11 petitions (Bankr. N.D. Ind. Case Nos. 12-32540 and 12-32541) on July 17, 2012. Judge Harry C. Dees, Jr., presides over the case. Daniel Freeland, Esq., at Daniel L. Freeland & Associates, P.C., represents the Debtors. Moss Family disclosed $6,609,576 in assets and $6,299,851 in liabilities as of the Chapter 11 filing. MOXIE LIBERTY: S&P Raises Prelim. Rating on $435MM Loan to 'B+' --------------------------------------------------------------- Standard & Poor's Ratings Services said it raised its preliminary ratings on Moxie Liberty LLC's $435 million secured term loan B-1, $150 mil term loan B-2, and $42 million LOC facility to 'B+' from 'B'. S&P also affirmed its preliminary '1' ratings on the debt. The outlook is stable. The term loan B will consist of a first-draw $435 million loan (upsized from $358 million) and a $150 million delayed-draw loan. The 12-month delayed-draw loan will be priced now but will carry a 2% commitment fee. Almost $363 million in equity is cash-funded at close. The '1' recovery rating on the bonds indicates very high (90% to 100%) recovery under a default scenario. A $119 million mezzanine debt at intermediate holding company Panda Liberty Intermediate Holdings II LLC (Panda II) is no longer contemplated, and it is instead replacing it with equity and incremental proceeds from the term loan. S&P's preliminary ratings upgrade reflects this elimination as previously it had analyzed the credit ratios after consolidating the debt because it believed Panda II's debt could weigh on refinancing considerations. "Ratings are, however, constrained in the 'B' rating category because of construction-related risks," said Standard & Poor's credit analyst Aneesh Prabhu. The project will sell capacity, energy, and ancillary services into the PJM market. The project cleared the 2016/2017 PJM auction at the clearing price for the Mid-Atlantic Area Council capacity market. The outlook is stable and will likely remain at the current level as the project proceeds through the construction phase. Near-term downside risks can emerge if the project has construction delays that extend beyond six months. Given S&P's current expectations of project economics, it expects that ratings will likely improve as the project goes into commercial operations. S&P's base-case estimates that trend an average of about 2.5x and minimum levels of about 1.75x suggest that ratings can improve up to 'BB-' (in stages) during the operations phase. However, expected high volatility in future cash flows and the project's single-asset nature will likely preclude ratings higher than 'BB-'. MOUNTAIN PROVINCE: Incurs C$6.3 Million Net Loss in 2nd Quarter --------------------------------------------------------------- Mountain Province Diamonds Inc. filed with the U.S. Securities and Exchange Commission its financial report for the second quarter disclosing a net loss of C$6.32 million for the three months ended June 30, 2013, as compared with a net loss of C$4.04 million for the same period last year. For the six months ended June 30, 2013, the Company incurred a net loss of C$11.16 million as compared with a net loss of C$8.44 million for the same period a year ago. Mountain Province disclosed a net loss of C$3.33 million for the year ended Dec. 31, 2012, a net loss of C$11.53 million in 2011, and a net loss of C$14.53 million in 2010. The Company's balance sheet at June 30, 2013, showed C$86.19 million in total assets, C$9.77 million in total liabilities and C$76.41 million in total shareholders' equity. "The Company's primary mineral asset is in the exploration and evaluation stage and, as a result, the Company has no source of revenues. In the six months ended June 30, 2013 and year ended December 31, 2012, the Company incurred losses, and had negative cash flows from operating activities, and will be required to obtain additional sources of financing to complete its business plans going into the future. Although the Company had working capital of $31,373,911 at June 30, 2013, including $33,845,412 cash and cash equivalents and short-term investments, the Company has insufficient capital to finance its operations and the Company's costs of the Gahcho Ku� Project (Note 7) over the next 12 months. The Company is currently investigating various sources of additional funding to increase the cash balances required for ongoing operations over the foreseeable future. These additional sources include, but are not limited to, share offerings, private placements, credit and debt facilities, as well as the exercise of outstanding options. However, there is no certainty that the Company will be able to obtain financing from any of those sources. These conditions indicate the existence of a material uncertainty that results in substantial doubt as to the Company's ability to continue as a going concern," the Company said in the Report. A copy of the Report is available for free at: http://is.gd/aCChTJ About Mountain Province Headquartered in Toronto, Canada, Mountain Province Diamonds Inc. (TSX: MPV, NYSE AMEX: MDM) -- http://www.mountainprovince.com/-- is a Canadian resource company in the process of permitting and developing a diamond deposit known as the "Gahcho Kue Project" located in the Northwest Territories of Canada. The Company's primary asset is its 49 percent interest in the Gahcho Kue Project. NATIONAL ENVELOPE: To Sell Operating Assets to Cenveo for $25MM --------------------------------------------------------------- John D. Oravecz, writing for Trib Total Media, reports that National Envelope agreed on Wednesday to sell its operating assets, including a plant in Fayette County, to competitor Cenveo Inc., the world's largest envelope maker, for $25 million. Both companies have been affected by the rise of email and online bill paying, reducing demand for paper envelopes. According to the report, National Envelope said it reached a definitive agreement with Stamford, Conn.-based Cenveo to sell most of National's assets for $20 million in cash and $5 million in stock. A closing is subject to bankruptcy court approval, closing conditions and is expected to occur by the end of September. About National Envelope National Envelope is the largest privately-held manufacturer of envelopes in North America. Headquartered in Frisco, Texas, National Envelope has eight plants and 15 percent of the envelope market. Revenue of $427 million in 2012 resulted in a $60.1 million net loss, continuing an unbroken string of losses since 2007. NE OPCO, Inc., doing business as National Envelope, along with affiliate NEV Credit Holdings, Inc., filed petitions seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-11483) on June 10, 2013. The company disclosed liabilities including $148.4 million in secured debt, with $37.5 million owing on a revolving credit and $15.6 million on a secured term loan. There is a $55.7 million second-lien debt 82 percent held by a Gores Group LLC affiliate. National Envelope, then known as NEC Holdings Corp., first sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 10-11890) on June 10, 2010. The business was bought by Gores Group LLC for $208 million in a bankruptcy sale. National Envelope, through NE OPCO, has returned to bankruptcy to pursue a plan of reorganization or sell the assets as a going concern via 11 U.S.C. Sec. 363. The Debtor plans to facilitate a sale of the business with publicly traded competitor Cenveo Inc. In the new Chapter 11 case, the company has tapped the law firm Richards, Layton & Finger as counsel, PricewaterhouseCoopers LLP as financial adviser, and Epiq Bankruptcy Solutions as claims and notice agent. The Gores Group is represented by Weil, Gotshal and Manges LLP and Lowenstein Landler LLP. Salus Capital Partners, the DIP agent, is represented by Choate, Hall & Stewart LLP and Morris Nichols Arsht & Tunnell LLP. Wells Fargo Capital Finance, LLC, the prepetition senior agent, is represented by Goldberg Kohn Ltd and DLA Piper. The Official Committee of Unsecured Creditors is represented by Pachulski Stang Ziehl & Jones LLP's Laura Davis Jones, Esq., Bradford J. Sandier, Esq., Robert J. Feinstein, Esq., and Peter J. Keane, Esq. Guggenheim Securities, LLC, serves as its investment banker and financial advisor. NATIONAL ENVELOPE: Cenveo Enters Into Agreement to Acquire Assets ----------------------------------------------------------------- Cenveo, Inc. on Aug. 21 disclosed that it has entered into a definitive agreement to acquire substantially all of the operating assets of National Envelope. In conjunction with Cenveo's agreement, Hilco Receivables has agreed to acquire substantially all the accounts receivable and Southern Paper has agreed to purchase the inventory of the Company. Cenveo's purchase price is expected to consist of approximately $20 million of cash and $5 million of Cenveo common stock. The closing is subject to Bankruptcy Court approval and customary closing conditions. Cenveo expects that the acquisition of National will deliver approximately $300 million in incremental annual sales and $30 million of incremental EBITDA when the integration of the two companies is complete. Cenveo expects the acquisition will better position it for continued revenue growth through an enhanced portfolio of products and services, increased geographic presence, and improved financial stability. Cenveo also expects to benefit from overhead cost actions and facility consolidations, as well as implementing and investing in manufacturing efficiencies and best practices. The transaction is expected to enhance Cenveo's credit profile and be accretive to earnings and cash flow per share. "This transaction allows us to achieve our dual objectives of expanding our leading position in the envelope market and continuing to position us for continued growth," said Robert G. Burton, Sr., Chairman and CEO of Cenveo. "This transaction is expected to benefit customers by providing a broad range of products and services that are unparalleled in the market. We believe the combination is also in the mutual best interests of both Cenveo and National, as it creates a financially stronger company. We look forward to a seamless integration of the businesses and to continuing to provide the highest level of service to customers." National Envelope filed Chapter 11 on June 10, 2013 in order to facilitate a sale. Pursuant to the definitive agreements with Cenveo and its partners, the Company will request the US Bankruptcy Court for the District of Delaware to authorize the Company to proceed with the sale on September 13, 2013. Macquarie Capital acted as Cenveo's exclusive financial advisor in connection with the transaction. Hughes Hubbard & Reed LLP acted as Cenveo's legal advisor on the transaction. National and Cenveo assure its customers that a smooth integration is expected and that orders will continue to be produced and shipped in the normal course of business. About Cenveo Headquartered in Stamford, Connecticut, Cenveo -- http://www.cenveo.com-- is a global provider of print and related resources, offering world-class solutions in the areas of custom labels, specialty packaging, envelopes, commercial print, content management and publisher solutions. The company provides a one- stop offering through services ranging from design and content management to fulfillment and distribution. About National Envelope National Envelope -- http://www.nationalenvelope.com-- is the largest privately-help manufacturer of envelopes in North America. Headquartered in Frisco, Texas, National Envelope has eight plants and 15 percent of the envelope market. Revenue of $427 million in 2012 resulted in a $60.1 million net loss, continuing an unbroken string of losses since 2007. NE OPCO, Inc., doing business as National Envelope, along with affiliate NEV Credit Holdings, Inc., filed petitions seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-11483) on June 10, 2013. The company disclosed liabilities including $148.4 million in secured debt, with $37.5 million owing on a revolving credit and $15.6 million on a secured term loan. There is a $55.7 million second-lien debt 82 percent held by a Gores Group LLC affiliate. National Envelope, then known as NEC Holdings Corp., first sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 10-11890) on June 10, 2010. The business was bought by Gores Group LLC for $208 million in a bankruptcy sale. National Envelope, through NE OPCO, has returned to bankruptcy to pursue a plan of reorganization or sell the assets as a going concern via 11 U.S.C. Sec. 363. The Debtor plans to facilitate a sale of the business with publicly traded competitor Cenveo Inc. In the new Chapter 11 case, the company has tapped the law firm Richards, Layton & Finger as counsel, PricewaterhouseCoopers LLP as financial adviser, and Epiq Bankruptcy Solutions as claims and notice agent. The Gores Group is represented by Weil, Gotshal and Manges LLP and Lowenstein Landler LLP. Salus Capital Partners, the DIP agent, is represented by Choate, Hall & Stewart LLP and Morris Nichols Arsht & Tunnell LLP. Wells Fargo Capital Finance, LLC, the prepetition senior agent, is represented by Goldberg Kohn Ltd and DLA Piper. NEPHROS INC: Reports $671,000 Net Loss in Second Quarter -------------------------------------------------------- Nephros, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $671,000 on $575,000 of total net revenues for the three months ended June 30, 2013, as compared with a net loss of $754,000 on $302,000 of total net revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company incurred a net loss of $1.91 million on $1.09 million of total net revenues, as compared with a net loss of $1.31 million on $835,000 of total net revenues for the same period a year ago. As of June 30, 2013, the Company had $2.88 million in total assets, $2.04 million in total liabilities and $841,000 in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/L8DQDe About Nephros River Edge, N.J.-based Nephros, Inc., is a commercial stage medical device company that develops and sells high performance liquid purification filters. Its filters, which it calls ultrafilters, are primarily used in dialysis centers and healthcare facilities for the production of ultrapure water and bicarbonate. Rothstein Kass, in Roseland, New Jersey, expressed substantial doubt about Nephros, Inc.'s ability to continue as a going concern, following its audit of the Company's financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred negative cash flow from operations and net losses since inception. NEW YORK SKYLINE: Breached Part of Empire State Building Lease -------------------------------------------------------------- Bankruptcy Judge Stuart M. Bernstein ruled Tuesday that: -- Empire State Building Company L.L.C., and Empire State Realty Observatory TRS, LLC, did not breach agreements with debtor New York Skyline, Inc., relating to the installation of television monitors and signage; -- Skyline breached the lease by (a) paying independent contractors on a commission basis to sell tickets to Skyline's attraction "of or near the Building" and (b) selling souvenirs that were not "readily identifiable with the Attraction," but did not breach the provision of the lease that prohibits Skyline from paying a "commission or other sales incentive" to its salaried employees. This long-running dispute has already involved a separate trial on one issue and generated three reported decisions, and went to trial a second time on all but one of the unresolved issues. The remaining, discrete contract claims -- the subject of Judge Bernstein's Aug. 20 ruling -- were tried over a two-day period and concerned the rights of the Debtor to install television monitors and signage and run a gift shop in the Empire State Building and solicit business at or near the Building using salespeople who were paid commissions or other sales incentives. A copy of the Court's August 20, 2013 Post-Trial Findings Of Fact And Conclusions Of Law is available at http://is.gd/nZ4wGYfrom Leagle.com. The case is NEW YORK SKYLINE, INC., Plaintiff, v. EMPIRE STATE BUILDING COMPANY L.L.C., EMPIRE STATE BUILDING, INC. and EMPIRE STATE BUILDING ASSOCIATES L.L.C. Defendants; EMPIRE STATE BUILDING COMPANY L.L.C., and EMPIRE STATE BUILDING, INC., Plaintiffs, v. NEW YORK SKYLINE, INC., Defendant, Adv. Proc. No. 09-01145 (SMB)., 09-01107 (SMB)(Bankr. S.D.N.Y.). Charles A. Stewart, III, Esq., and Elin M. Frey, Esq., at Stewart Occhipinti, LLP, in New York, represent New York Skyline, Inc. Francine Nisim, Esq., Karen S. Frieman, Esq., and David S. Tannenbaum, Esq., at Stern Tannenbaum & Bell LLP, in New York, argue for Empire State Building Company L.L.C., Empire State Realty Observatory TRS, LLC, and Empire State Building, Inc. Manhattan-based New York Skyline, Inc. -- http://www.skyride.com/ -- operates the NYSKYRIDE attraction at the Empire State building. The Company sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 09-10181) on Jan. 12, 2009. Mark A. Frankel, Esq., at Backenroth Frankel & Krinsky, LLP, assists the company in its restructuring efforts. The Company estimated its assets and debts between $10 million and $50 million at the time of the filing. NYTEX ENERGY: Incurs $576,700 Net Loss in Second Quarter -------------------------------------------------------- NYTEX Energy Holdings Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $576,795 on $171,279 of total revenues for the three months ended June 30, 2013, as compared with net income of $274,697 on $1.21 million of total revenues for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $1.24 million on $620,852 of total revenues, as compared with a net loss of $6.29 million on $2.17 million of total revenues for the same period during the prior year. NYTEX Energy disclosed a net loss of $5.15 million in 31, 2012, as compared with net income of $16.75 million in 2011. As of June 30, 2013, the Company had $8.17 million in total assets, $2.42 million in total liabilities, $4.76 million in mezzanine equity, and $988,479 in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/njyZUt About NYTEX Energy Located in Dallas, Texas, Nytex Energy Holdings, Inc., is an energy holding company with operations centralized in two subsidiaries, Francis Drilling Fluids, Ltd. ("FDF") and NYTEX Petroleum, Inc. ("NYTEX Petroleum"). FDF is a 35 year old full- service provider of drilling, completion and specialized fluids and specialty additives; technical and environmental support services; industrial cleaning services; equipment rentals; and transportation, handling and storage of fluids and dry products for the oil and gas industry. NYTEX Petroleum, Inc., is an exploration and production company focusing on early stage development of minor oil and gas resource plays within the United States. ONCURE HOLDINGS: Chapter 11 Plan of Reorganization Filed -------------------------------------------------------- BankruptcyData reported that OnCure Holdings filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, "The Plan contemplates certain transactions, including, without limitation, the following transactions: pursuant to an investment agreement dated June 22, 2013 (the 'Investment Agreement'), Radiation Therapy Services, Inc. ("RTS") agreed to (1) buy 100% of the shares of Reorganized HoldCo upon the Effective Date of the Plan and (2) pay $42,500,000 in cash, subject to certain adjustments, and to guarantee $82,500,000 of the Amended Secured Notes. As of August 19, 2013, the Investment Agreement remains subject to the approval of the Bankruptcy Court. As of August 19, 2013, the Investment Agreement remains subject to the approval of the Bankruptcy Court. The Debtors are party to the Prepetition Term Loan Credit Agreement, under which the Debtors borrowed $15,000,000 in principal amount from the Prepetition Term Loan Lenders. The obligations arising under the Prepetition Term Loan Credit Agreement were secured by senior, first priority security interests in, and liens upon, substantially all of the Debtors' assets. On June 19, 2013, the Debtors and the DIP Facility Lenders entered into the DIP Facility Credit Agreement and the Prepetition Term Loan Claims were satisfied in full. HoldCo issued the Prepetition Secured Notes in an aggregate principal amount of $210,000,000 pursuant to the Prepetition Secured Notes Indenture. All other Debtors are guarantors of the Prepetition Secured Notes, which are secured by second priority security interests in, and liens upon, substantially all of the Debtors' assets. None of the non-Debtor Affiliates of HoldCo are obligors or guarantors under the Prepetition Term Loan Credit Agreement or the Prepetition Secured Notes Indenture." The Court scheduled an October 3, 2013 hearing to consider the Plan, and interested parties must file ballots by September 23, 2013. 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. ORCHARD SUPPLY: Unit Files Schedules of Assets and Liabilities -------------------------------------------------------------- OSH Properties LLC, a debtor affiliate of Orchard Supply Hardware Stores Corporation, filed with the U.S. Bankruptcy Court for the District of Delaware its schedules of assets and liabilities disclosing the following: Assets Liabilities ----------- ----------- A. Real Property $16,183,620 B. Personal Property 0 C. Property Claimed as Exempt N/A D. Creditors Holding Secured Claims N/A E. Creditors Holding Unsecured N/A Priority Claims F. Creditors Holding Unsecured N/A Non-priority Claims ----------- ----------- TOTAL $16,183,620 $0 Full-text copies of the Schedules are available for free at: http://bankrupt.com/misc/ORCHARDSUPPLYsal0806.pdf About Orchard Supply San Jose, Cal.-based Orchard Supply Hardware Stores Corporation operates neighborhood hardware and garden stores focused on paint, repair and the backyard. It was spun off from Sears Holdings Corp. in 2012. Orchard Supply and two affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-11565) on June 16 to facilitate a restructuring of the company's balance sheet and a sale of its assets for $205 million in cash to Lowe's Companies, Inc., absent higher and better offers. In addition to the $205 million cash, Lowe's has agreed to assume payables owed to nearly all of Orchard's supplier partners. Bankruptcy Judge Christopher S. Sontchi oversees the case. Michael W. Fox signed the petitions as senior vice president and general counsel. The Debtors disclosed total assets of $441,028,000 and total debts of $480,144,000. Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware; and Richard A. Chesley, Esq., Chun I. Jang, Esq., and Daniel M. Simon, Esq., at DLA Piper LLP (US), in Chicago, Illinois, are the Debtors' counsel. Moelis & Company LLC serves as the Debtors' investment banker. FTI Consulting, Inc., serves as the Debtors' financial advisors. A&G Realty Partners, LLC, serves as the Debtors' real estate advisors. BMC Group Inc. is the Debtors' claims and noticing agent. ORCHARD SUPPLY: Allowed to Implement Incentive Plans ---------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Orchard Supply Hardware Stores Corporation, et al., to implement executive key employee incentive plan and their non-executive key employee incentive plan. The aggregate amount of payments due under the executive incentive plan is $3.1 million. All payments under the KEIPs will be deemed administrative expense of the Debtors' estates under Section 503(b) of the Bankruptcy Code. About Orchard Supply San Jose, Cal.-based Orchard Supply Hardware Stores Corporation operates neighborhood hardware and garden stores focused on paint, repair and the backyard. It was spun off from Sears Holdings Corp. in 2012. Orchard Supply and two affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-11565) on June 16 to facilitate a restructuring of the company's balance sheet and a sale of its assets for $205 million in cash to Lowe's Companies, Inc., absent higher and better offers. In addition to the $205 million cash, Lowe's has agreed to assume payables owed to nearly all of Orchard's supplier partners. Bankruptcy Judge Christopher S. Sontchi oversees the case. Michael W. Fox signed the petitions as senior vice president and general counsel. The Debtors disclosed total assets of $441,028,000 and total debts of $480,144,000. Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware; and Richard A. Chesley, Esq., Chun I. Jang, Esq., and Daniel M. Simon, Esq., at DLA Piper LLP (US), in Chicago, Illinois, are the Debtors' counsel. Moelis & Company LLC serves as the Debtors' investment banker. FTI Consulting, Inc., serves as the Debtors' financial advisors. A&G Realty Partners, LLC, serves as the Debtors' real estate advisors. BMC Group Inc. is the Debtors' claims and noticing agent. ORCHARD SUPPLY: Committee Can Retain Pachulski as Counsel --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors appointed in the Chapter 11 cases of Orchard Supply Hardware Stores Corporation, et al., to retain Pachulski Stang Ziehl & Jones LLP as counsel, nunc pro tunc to June 26, 2013. The professionals and paralegals presently designate to represent the Committee and their current standard hourly rates are: Bradford J. Sandler, Esq. $750 John Fiero, Esq. $745 James E. O'Neill, Esq. $695 Karina Yee $295 About Orchard Supply San Jose, Cal.-based Orchard Supply Hardware Stores Corporation operates neighborhood hardware and garden stores focused on paint, repair and the backyard. It was spun off from Sears Holdings Corp. in 2012. Orchard Supply and two affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-11565) on June 16 to facilitate a restructuring of the company's balance sheet and a sale of its assets for $205 million in cash to Lowe's Companies, Inc., absent higher and better offers. In addition to the $205 million cash, Lowe's has agreed to assume payables owed to nearly all of Orchard's supplier partners. Bankruptcy Judge Christopher S. Sontchi oversees the case. Michael W. Fox signed the petitions as senior vice president and general counsel. The Debtors disclosed total assets of $441,028,000 and total debts of $480,144,000. Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware; and Richard A. Chesley, Esq., Chun I. Jang, Esq., and Daniel M. Simon, Esq., at DLA Piper LLP (US), in Chicago, Illinois, are the Debtors' counsel. Moelis & Company LLC serves as the Debtors' investment banker. FTI Consulting, Inc., serves as the Debtors' financial advisors. A&G Realty Partners, LLC, serves as the Debtors' real estate advisors. BMC Group Inc. is the Debtors' claims and noticing agent. ORCHARD SUPPLY: Committee Can Tap Alvarez as Financial Advisors --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors appointed in the Chapter 11 cases of Orchard Supply Hardware Stores Corporation, et al., to retain Alvarez & Marsal as financial advisors, to be paid the following hourly rates: Managing Directors $625-$850 Directors $475-$625 Associates $350-$475 Analysts $225-$350 The firm will also be reimbursed for any necessary out-of-pocket expenses. About Orchard Supply San Jose, Cal.-based Orchard Supply Hardware Stores Corporation operates neighborhood hardware and garden stores focused on paint, repair and the backyard. It was spun off from Sears Holdings Corp. in 2012. Orchard Supply and two affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-11565) on June 16 to facilitate a restructuring of the company's balance sheet and a sale of its assets for $205 million in cash to Lowe's Companies, Inc., absent higher and better offers. In addition to the $205 million cash, Lowe's has agreed to assume payables owed to nearly all of Orchard's supplier partners. Bankruptcy Judge Christopher S. Sontchi oversees the case. Michael W. Fox signed the petitions as senior vice president and general counsel. The Debtors disclosed total assets of $441,028,000 and total debts of $480,144,000. Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware; and Richard A. Chesley, Esq., Chun I. Jang, Esq., and Daniel M. Simon, Esq., at DLA Piper LLP (US), in Chicago, Illinois, are the Debtors' counsel. Moelis & Company LLC serves as the Debtors' investment banker. FTI Consulting, Inc., serves as the Debtors' financial advisors. A&G Realty Partners, LLC, serves as the Debtors' real estate advisors. BMC Group Inc. is the Debtors' claims and noticing agent. ORECK CORP: Wants to Employ AAC Consulting to Provide Tax Services ------------------------------------------------------------------ Oreck Corporation, et al., ask the U.S. Bankruptcy Court for the Middle District of Tennessee for authority to employ AAC Consulting, LLC, to provide tax services, including compilation and filing of federal and state tax returns, for the Debtors. The hearing on the Motion is scheduled for Sept. 17, 2013, at 9:00 a.m. To the best of the Debtors' knowledge, AAC and Allison Civello, the sole member of AAC, are both "disinterested" persons under the Bankruptcy Code. The Debtors propose to compensate AAC $60,000 for each filing period ($120,000 total), 50% to be paid in advance, 25% to be paid at the completion of the fiscal 2013 tax returns, and 25% to be paid at the completion of the fiscal 2014 tax returns. The objection deadline is Sept. 3, 2013. About Oreck Corp. Oreck Corporation and eight affiliates sought Chapter 11 protection (Bankr. M.D. Tenn. Lead Case No. 13-04006) in Nashville, Tennessee, on May 6, 2013, with plans to sell the business as a going concern. Oreck has been in the business of manufacturing, marketing and selling vacuum cleaners and related products since the late 1960s. The corporate offices are located in Nashville, and the manufacturing and call center is located in Cookeville, Tennessee. Oreck has 70 employees in Nashville, 250 employees at its plant in Cookeville and 325 employees operating 96 company-owned and managed retail stores. The Debtor disclosed $18,013,249 in assets and $14,932,841 plus an unknown amount in liabilities as of the Chapter 11 filing. William L. Norton III, Esq., and Alexandra E. Dugan, Esq., at Bradley Arant Boult Cummings LLP, serve as counsel to the Debtor. BMC Group Inc. is the claims and notice agent. Sawaya Segalas & Co., LLC serves as financial advisor. The U.S. Trustee appointed six creditors to the Official Committee of Unsecured Creditors. Daniel H. Puryear, Esq., at Puryear Law Group, and Sharon L. Levine, Esq., and Kenneth A. Rosen, Esq., at Lowenstein Sandler LLP represent the Committee. The Committee tapped to retain Gavin/Solmonese LLC as its financial advisor. In July 2013, Royal Appliance Mfg. Co. (RAM), a subsidiary of the TTI Group, finalized the purchase of Oreck Corp.'s assets. The Bankruptcy Court approved the sale on July 16, 2013. Royal, the maker of Dirt Devil floor-care products, won the auction for Oreck Corp. The second-place bidder was the Oreck family, which sold the business in a $272 million transaction in 2003. The Oreck family made the first bid at auction at $21.9 million, including $14.5 million cash. The terms of Royal's winning bid weren't disclosed publicly, according to a Bloomberg News report. Royal was acquired in 2003 by Hong Kong-based Techtronic Industries Co., the maker of Hoover vacuum cleaners. ORECK CORP: Can Employ Deloitte Tax as Tax Advisory Consultant -------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Tennessee authorized Oreck Corporation, et al., to employ Deloitte Tax LLP as the Debtors' tax advisory consultant, effective as of the filing of the bankruptcy petition. As reported in the TCR on July 11, the current rate for the services of Stephen C. Harrison, the Deloitte partner that will be the Debtors' main contact, is $635 per hour. The rate for other members in the firm who may work on these matters ranges from $280 to $565 depending on the services required and the persons necessary to perform them. About Oreck Corp. Oreck Corporation and eight affiliates sought Chapter 11 protection (Bankr. M.D. Tenn. Lead Case No. 13-04006) in Nashville, Tennessee, on May 6, 2013, with plans to sell the business as a going concern. Oreck has been in the business of manufacturing, marketing and selling vacuum cleaners and related products since the late 1960s. The corporate offices are located in Nashville, and the manufacturing and call center is located in Cookeville, Tennessee. Oreck has 70 employees in Nashville, 250 employees at its plant in Cookeville and 325 employees operating 96 company-owned and managed retail stores. The Debtor disclosed $18,013,249 in assets and $14,932,841 plus an unknown amount in liabilities as of the Chapter 11 filing. William L. Norton III, Esq., and Alexandra E. Dugan, Esq., at Bradley Arant Boult Cummings LLP, serve as counsel to the Debtor. BMC Group Inc. is the claims and notice agent. Sawaya Segalas & Co., LLC serves as financial advisor. The U.S. Trustee appointed six creditors to the Official Committee of Unsecured Creditors. Daniel H. Puryear, Esq., at Puryear Law Group, and Sharon L. Levine, Esq., and Kenneth A. Rosen, Esq., at Lowenstein Sandler LLP represent the Committee. The Committee tapped to retain Gavin/Solmonese LLC as its financial advisor. In July 2013, Royal Appliance Mfg. Co. (RAM), a subsidiary of the TTI Group, finalized the purchase of Oreck Corp.'s assets. The Bankruptcy Court approved the sale on July 16, 2013. Royal, the maker of Dirt Devil floor-care products, won the auction for Oreck Corp. The second-place bidder was the Oreck family, which sold the business in a $272 million transaction in 2003. The Oreck family made the first bid at auction at $21.9 million, including $14.5 million cash. The terms of Royal's winning bid weren't disclosed publicly, according to a Bloomberg News report. Royal was acquired in 2003 by Hong Kong-based Techtronic Industries Co., the maker of Hoover vacuum cleaners. OVERSEAS SHIPHOLDING: US Bank Balks at Exclusivity Extension Bid ---------------------------------------------------------------- Law360 reported that the leader of a group that is the largest creditor in the Overseas Shipholding Group Inc. bankruptcy case took issue with the company's request to extend the time it can exclusively file a Chapter 11 plan, arguing a four-month delay will only heap on more costs. According to the report, U.S. Bank NA, which leads a lending group owed $1.5 billion, contends that all of the major roadblocks for the New York-based oil tanker giant to negotiate with its creditors have been removed since filing for bankruptcy protection. As previously reported by The Troubled Company Reporter, Overseas Shipholding seeks a four-month extension until Nov. 30 of its exclusive right to file a reorganization plan. There will be a hearing on Aug. 26 for the bankruptcy judge in Delaware to consider the motion. OSG is working on pro-forma financial statements that could be a precursor to splitting off its U.S.-only fleet into a separate company in connection with a Chapter 11 reorganization begun in November. About Overseas Shipholding Overseas Shipholding Group, Inc., headquartered in New York, is one of the largest publicly traded tanker companies in the world, engaged primarily in the ocean transportation of crude oil and petroleum products. OSG owns or operates 111 vessels that transport oil and petroleum products throughout the world. Overseas Shipholding Group and 180 affiliates filed voluntary Chapter 11 petitions (Bankr. D. Del. Lead Case No. 12-20000) on Nov. 14, 2012, disclosing $4.15 billion in assets and $2.67 billion in liabilities. Greylock Partners LLC Chief Executive John Ray serves as chief reorganization officer. James L. Bromley, Esq., and Luke A. Barefoot, Esq., at Cleary Gottlieb Steen & Hamilton LLP serve as OSG's Chapter 11 counsel. Derek C. Abbott, Esq., Daniel B. Butz, Esq., and William M. Alleman, Jr., at Morris, Nichols, Arsht & Tunnell LLP, serve as local counsel. Chilmark Partners LLC serves as financial adviser. Kurtzman Carson Consultants LLC is the claims and notice agent. The Export-Import Bank of China, owed $312 million used for the construction of five tankers, is represented by Louis R. Strubeck, Jr., Esq., and Kristian W. Gluck, Esq., at Fulbright & Jaworski LLP in Dallas; David L. Barrack, Esq., and Beret Flom, Esq., at Fulbright & Jaworski in New York; and John Knight, Esq., and Christopher Samis, Esq., at Richards Layton & Finger PA. Chilmark Partners, LLC serves as financial and restructuring advisor. Akin Gump Strauss Hauer & Feld LLP, and Pepper Hamilton LLP, serve as co-counsel to the official committee of unsecured creditors. FTI Consulting, Inc., is the financial advisor and Houlihan Lokey Capital, Inc., is the investment banker. PACIFIC GOLD: Incurs $515,000 Net Loss in Second Quarter -------------------------------------------------------- Pacific Gold Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $515,379 on $0 of total revenue for the three months ended June 30, 2013, as compared with a net loss of $1.76 million on $31,375 of total revenue for the same period during the prior year. For the six months ended June 30, 2013, the Company incurred a net loss of $736,264 on $0 of total revenue, as compared with a net loss of $3.14 million on $78,658 of total revenue for the same period a year ago. As of June 30, 2013, the Company had $1.39 million in total assets, $4.30 million in total liabilities and a $2.91 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/5oPakM About Pacific Gold Las Vegas, Nev.-based Pacific Gold Corp. is engaged in the identification, acquisition, and development of prospects believed to have gold mineralization. Pacific Gold through its subsidiaries currently owns claims, property and leases in Nevada and Colorado. Pacific Gold diclosed a net loss of $16.62 million in 2012, as compared with a net loss of $1.38 million in 2011. Silberstein Ungar, PLLC, in Bingham Farms, Michigan, 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 losses from operations, has negative working capital and is in need of additional capital to grow its operations so that it can become profitable. These factors raise substantial doubt about the Company's ability to continue as a going concern. PACIFIC THOMAS: Plan Outline Hearing Moved to Sept. 19 ------------------------------------------------------ The hearing for the approval of Pacific Thomas Corporation's First Amended Disclosure Statement describing its First Amended Plan of Reorganization has been continued to Sept. 19, 2013 at 10:30 a.m. As reported by The Troubled Company Reporter on July 25, 2013, Pacific Thomas amended the Disclosure Statement to address objections raised by two secured creditors -- Private Mortgage Fund LLC and Summit Bank. The Disclosure Statement dated July 11, 2013, reveals that the Plan proposes a restructuring plan with a refinance or sale within 60 months. The Debtor seeks to accomplish payments under the Plan by restructuring notes secured by real property of the estate held by Summit Bank, Bank of the West, Jacol, and Private Mortgage, by restructuring notes secured by personal property and real property of the estate, by restructuring liens levied by the real estate taxing authorities, and by a full payoff off all secured and general unsecured creditors within sixty months. The secured creditors as well as the general unsecured creditors of the estate will be paid the present value of their claim at a market interest rate over a 60- month period through net income generated from the Pacific Thomas Properties and/or through a refinance or sale of the Pacific Thomas Properties. A full-text copy of the Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/PACIFICTHOMASds0711.pdf About Pacific Thomas Corp. Walnut Creek, California, Pacific Thomas Corporation filed a Chapter 11 petition (Bankr. N.D. Cal. Case No. 12-46534) in Oakland on Aug. 6, 2012, estimating in excess of $10 million in assets and liabilities. The Debtor is related to Pacific Thomas Capital, which specializes in real estate services, focusing on the investment, ownership and development of commercial real estate properties, according to http://www.pacificthomas.com/ Real estate activities has spanned throughout the Hawaiian Islands as well as U.S. West Coast locations in California, Nevada, Arizona and Utah. Hawaii based activities are managed under the name Thomas Capital Investments. Bankruptcy Judge M. Elaine Hammond presides over the case. Anne- Leith Matlock, Esq., at Matlock Law Group, P.C., serves as general counsel. The petition was signed by Jill V. Worsley, COO, secretary. Kyle Everett was named Chapter 11 Trustee of the Debtor. In its schedules, the Debtor disclosed $19,960,679 in assets and $16,482,475 in liabilities as of the petition date. PACIFIC THOMAS: Bank of The West Opposes Plan Outline Approval -------------------------------------------------------------- Bank of The West filed court papers in the first week of August, articulating its objection to the approval of the First Amended Disclosure Statement in support of the First Amended Plan of Reorganization of Pacific Thomas Corporation. Bank of The West asserted a secured claim against the Debtor pursuant to certain loan documents in the amount of $3,237,845, plus additional interest, plus attorneys' fees and costs and other amounts due under the Loan Documents. Bank of The West complains that the Amended Disclosure Statement lacks adequate information. Among other things, the Bank argues that: -- the events leading to the bankruptcy filing disclosed by the Debtor are lacking; -- no detailed explanation is disclosed of how the Debtor's asets are valued; -- the Disclosure Statement makes no mention of the Swap Documents and does not take into account the payment due from the Debtor; -- the liquidation analysis provided is insufficient; The Bank adds that the Amended Plan is unconfirmable on its face as it does not provide adequate means for implementation, is not feasible and is not fair and equitable with respect to BOW's Class 2 claim. Attorneys for the Bank of The West are: JEFFER, MANGELS, BUTLER & MITCHELL LLP Robert B. Kaplan, Esq. Walter W. Gouldsbury III, Esq. Two Embarcadero Cener, Fifth Floor San Francisco, California 94111-3813 Tel No: (415) 398-8080 Fax No: (415) 398-5584 About Pacific Thomas Corp. Walnut Creek, California, Pacific Thomas Corporation filed a Chapter 11 petition (Bankr. N.D. Cal. Case No. 12-46534) in Oakland on Aug. 6, 2012, estimating in excess of $10 million in assets and liabilities. The Debtor is related to Pacific Thomas Capital, which specializes in real estate services, focusing on the investment, ownership and development of commercial real estate properties, according to http://www.pacificthomas.com/ Real estate activities has spanned throughout the Hawaiian Islands as well as U.S. West Coast locations in California, Nevada, Arizona and Utah. Hawaii based activities are managed under the name Thomas Capital Investments. Bankruptcy Judge M. Elaine Hammond presides over the case. Anne- Leith Matlock, Esq., at Matlock Law Group, P.C., serves as general counsel. The petition was signed by Jill V. Worsley, COO, secretary. Kyle Everett was named Chapter 11 Trustee of the Debtor. In its schedules, the Debtor disclosed $19,960,679 in assets and $16,482,475 in liabilities as of the petition date. PATRIOT COAL: Bankruptcy Judge Approves Deal with Miners' Union --------------------------------------------------------------- The Associated Press reported that Patriot Coal Corp. got a bankruptcy judge's go-ahead to enter into a new labor agreement with the nation's biggest miners' union, ending a long, acrimonious dispute the company had worried would push into liquidation. According to the report, U.S. Bankruptcy Judge Kathy Surratt- States granted St. Louis-based Patriot's request to put in place the collective bargaining deal ratified by some 85 percent of United Mine Workers of America members who cast ballots on the proposal last Friday. Some 1,800 current or laid-off Patriot workers in West Virginia and Kentucky were eligible to vote. The settlement restores most wage cuts Patriot had sought as part of its efforts to emerge from bankruptcy protection, the report related. Pension benefits for thousands of retirees also will be maintained, and active employees will continue earning pension credit as part of the deal Patriot said will save $130 million a year over the next several years. Cecil Roberts, the union's national president, celebrated the development involving the settlement he said "we worked long and hard to reach with Patriot Coal." Those talks intensified after July 1, when Patriot enacted cuts Surratt-States ruled in May the company could impose in abandoning its collective-bargaining agreements with the union. "The terms and conditions of this settlement are a significant improvement over the company's original proposals, while still giving Patriot the stability and certainty it needs to move forward," Roberts added in a statement, the report cited. "There is still a long way to go, however, before retired mine workers receive all of the health care benefits they earned during their years in the mines." Creditors Committee The Official Committee of Unsecured Creditors supported the Debtors' entry into new Collective Bargaining Agreements and Memorandum of Understanding with the United Mine Workers of America, subject to the reservation of rights of the Committee and all unsecured creditors with respect to any issues that may arise in connection with confirmation of a plan of reorganization. U.S. Bank National Association, as indenture trustee with respect to the 3.25% Convertible Senior Notes due 2013 in the aggregate principal amount of $200,000,000, issued pursuant to that certain Indenture, dated as of May 28, 2008, between Patriot Coal Corporation and 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 tells the Bankruptcy Court. The Trustee related: "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." As reported in the TCR on Aug. 16, the Debtors and the UMWA, as the representative of the UMWA Employees under the Existing CBAs, reached negotiated resolutions on modifications to the Existing CBAs, as set forth in the New CBAs and the MOU (together, the "1113 Settlement"), and the Debtors and the UMWA, in its capacity as the authorized representative of the UMWA Retirees, reached negotiated resolutions on modifications to the Retiree Benefits, as set forth in Article XX of the New CBAs and the MOU (collectively, the "1114 Settlement"). A brief summary of the key terms of the 1113 Settlement and a brief summary of the 1114 Settlement are found in pages 6 through 17 of the Motion, a copy of which is available at: http://bankrupt.com/misc/patriotcoal.doc4460.pdf United Mine Workers of America filed Wednesday a Joinder in the motion of the Debtors seeking approval of new CBAs and the MOU. 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: Welcomes Bankruptcy Appellate Panel Ruling -------------------------------------------------------- Patriot Coal Corporation on Aug. 21 issued the following statement regarding the Bankruptcy Appellate Panel's decision. "We are pleased that the Bankruptcy Appellate Panel has found Peabody Energy Corporation responsible for healthcare benefits it assumed at the time of the spin-off of Patriot. The appellate court adopted the position that Patriot has advocated all along -- Peabody should not be permitted to use Patriot's bankruptcy to escape its healthcare obligations to thousands of retirees," said Patriot President and Chief Executive Officer Bennett K. Hatfield. "Patriot remains committed to a fair outcome for our stakeholders, while securing the necessary savings to successfully emerge as a long-term coal producer," concluded Mr. Hatfield. "The decision of the Bankruptcy Appellate Panel is a welcome development that will help Patriot achieve these goals." 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: Peabody Praises Bankruptcy Appellate Panel Ruling --------------------------------------------------------------- Peabody Energy is pleased with Wednesday's ruling by the Eighth Circuit Bankruptcy Appellate Panel on Patriot Coal's bankruptcy. The court said that Peabody was obligated to make payments (that have been consistently paid) until such time as a new labor agreement was approved between Patriot and the UMWA. The Panel did not rule on how Peabody's level of funding would be determined with this new agreement in place: "We are not concerned with, and express no opinion on, what effect a new labor agreement would have on Peabody Holding's obligation to the assumed retirees." Now that a new labor agreement has been approved, the provisions of the contract with Patriot will apply and any future funding levels are yet to be determined. 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. PENINSULA HOSPITAL: Trustee Can Use Cash Collateral Until Sept. 30 ------------------------------------------------------------------ The Hon. Elizabeth S. Stong of the U.S. Bankruptcy Court for the Eastern District of New York, in a Fifteenth Interim Order, authorized Lori Lapin Jones, as Chapter 11 trustee for Peninsula Hospital Center, et al., to use the cash collateral of the 1199 Funds in connection with the wind down of PHC, until Sept. 30, 2013. The Trustee is authorized to use tge cash collateral of the 1199 Funds and Revival Funding Co., LLC, in connection with the ordinary course operations through Sept. 30, 2013. Pursuant to the Fifteenth Interim Order, the Trustee and the 1199 Funds agree that the Trustee Fee Additional Carveout will be increased by $150,000 to an amount of up to $650,000. A copy of the Fifteenth Interim Order is available at: http://bankrupt.com/misc/peninsulahospital.doc1064.pdf About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody served as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. In April 2013, the bankruptcy court discharged Daniel T. McMurray from his duties and responsibilities as patient care ombudsman. Richard J. McCord, Esq., was appointed by the Court as examiner in the Debtors' cases. His task was to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. Certilman Balin, & Hyman, LLP, which counts Mr. McCord as one of the firm's members, served as counsel for the Examiner. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. Robert M. Hirsh, Esq., at Arent Fox LLP, in New York, N.Y., represents the Committee as counsel. At the behest of the U.S. Trustee, Lori Lapin Jones, Esq. -- ljones@jonespllc.com -- was named Chapter 11 Trustee in March 2012, replacing Todd Miller, the Debtors' Chief Executive Officer. The Chapter 11 trustee is represented by LaMonica Herbst & Maniscalco LLP as her counsel. Storch Amini & Munves, PC, serves as the Chapter 11 Trustee's special counsel in connection with her investigation of the Debtors. She obtained approval to employ Garfunkel Wild, P.C., as her special health care, regulatory, corporate, finance and litigation counsel; and Foy Advisors LLC as consultant. PENINSULA HOSPITAL: Trustee Can Employ G. Messer as Plan Fiduciary ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of New York authorized Lapin Jones, as Chapter 11 Trustee of the estates of Peninsula Hospital Center, et al., to employ (I) Gregory Messer as an independent fiduciary for the Debtors' 403(b) tax deferred retirement plan; and (II) Northeast Retirement Services, Inc., as the replacement plan administrator of the Debtors' 403(b) tax deferred retirement plan. The Trustee is authorized to segregate from the Plan Assets the sum of $50,000 in a segregated Trustee account, which the Trustee is authorized to pay to Plan Fiduciary and the Plan Administrator without further Order of the Court as follows: (i) $10,000 to the Plan Fiduciary upon the entry of this Order; (ii) $15,000 to the Plan Administrator upon the entry of this Order; (iii) $10,000 to the Plan Fiduciary upon the completion of his responsibilities; (vi) $15,000.00 to the Plan Administrator upon the completion of its responsibilities. The $50,000 to be segregated is without prejudice to payment from Plan Assets, as may be permitted under the Plan, of further funds to administer the Plan and to pay the fees of the Plan termination. As reported in the TCR on June 18, the responsibilities of the Plan Fiduciary will include, as necessary, amending or modifying the Plan, terminating the Plan, signing and approving the forms for filing with the Internal Revenue Service, and coordinating with NRS. Mr. Messer will also be among those communicating with employees, if needed. In addition, Mr. Messer will address Plan issues as they arise including any issues with respect to the underfunding. The Chapter 11 Trustee proposes that Mr. Messer be compensated from the Plan Assets in the amount of $20,000, plus reimbursement of any out-of-pocket expenses (e.g., copying and postage, premiums on insurance coverage). NRS will review all current Plan documents to ensure that the Plan is in full compliance with current regulations. The Chapter 11 Trustee proposes that NRS be compensated from the Plan Assets in the amount of $30,000, plus reimbursement of any out-of-pocket expenses. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody served as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. In April 2013, the bankruptcy court discharged Daniel T. McMurray from his duties and responsibilities as patient care ombudsman. Richard J. McCord, Esq., was appointed by the Court as examiner in the Debtors' cases. His task was to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. Certilman Balin, & Hyman, LLP, which counts Mr. McCord as one of the firm's members, served as counsel for the Examiner. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. Robert M. Hirsh, Esq., at Arent Fox LLP, in New York, N.Y., represents the Committee as counsel. At the behest of the U.S. Trustee, Lori Lapin Jones, Esq. -- ljones@jonespllc.com -- was named Chapter 11 Trustee in March 2012, replacing Todd Miller, the Debtors' Chief Executive Officer. The Chapter 11 trustee is represented by LaMonica Herbst & Maniscalco LLP as her counsel. Storch Amini & Munves, PC, serves as the Chapter 11 Trustee's special counsel in connection with her investigation of the Debtors. She obtained approval to employ Garfunkel Wild, P.C., as her special health care, regulatory, corporate, finance and litigation counsel; and Foy Advisors LLC as consultant. PENINSULA HOSPITAL: SAM Employment to Include Insurance Issues -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of New York approved the Supplemental Application of Lori Lapin Jones, as Chapter 11 Trustee of the estates of Peninsula Hospital Center, et al., to expand the employment of Storch Amini & Munves, PC, as special counsel to the Trustee to include advising the Trustee on insurance coverage and claims issues and issues arising out of employee-related claims. The Trustee is authorized to employ SAM on an hourly basis on the amended terms and conditions set forth in the Supplemental Application nunc pro tunc to June 23, 2013. According to papers filed with the Court on July 4, the Trustee requires the assistance of counsel to advise her and guide her through insurance-related issues. The Trustee may also require the assistance of counsel to address the employee claims directly, including issues related to Empire Blue Shield, the Debtor's third-party health claims administrator. As reported in the TCR on Jan. 11, 2013, the Bankruptcy Court authorized the Trustee to employ SAM as her special counsel in connection with her investigation of the Debtors including, but not limited to, issues relating to: (a) the filing of the bankruptcy cases; (b) the laboratory at PHC; (c) the conduct of the Debtors' officers, directors and professionals; (d) certain pre- and post-petition transactions; and (e) whether to pursue (by settlement, suit or otherwise) any resulting claims and causes of action. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody served as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. In April 2013, the bankruptcy court discharged Daniel T. McMurray from his duties and responsibilities as patient care ombudsman. Richard J. McCord, Esq., was appointed by the Court as examiner in the Debtors' cases. His task was to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. Certilman Balin, & Hyman, LLP, which counts Mr. McCord as one of the firm's members, served as counsel for the Examiner. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. Robert M. Hirsh, Esq., at Arent Fox LLP, in New York, N.Y., represents the Committee as counsel. At the behest of the U.S. Trustee, Lori Lapin Jones, Esq. -- ljones@jonespllc.com -- was named Chapter 11 Trustee in March 2012, replacing Todd Miller, the Debtors' Chief Executive Officer. The Chapter 11 trustee is represented by LaMonica Herbst & Maniscalco LLP as her counsel. Storch Amini & Munves, PC, serves as the Chapter 11 Trustee's special counsel in connection with her investigation of the Debtors. She obtained approval to employ Garfunkel Wild, P.C., as her special health care, regulatory, corporate, finance and litigation counsel; and Foy Advisors LLC as consultant. PENINSULA HOSPITAL: Court Denies Motion for Judgment Vs. Trustee ---------------------------------------------------------------- On July 10, 2013, the U.S. Bankruptcy Court for the Eastern District of New York denied, in part, CathyJo Hunt-Edmonston's motion seeking a judgment against Burton S. Weston, Esq., Trustee Lori Lapin Jones, Michael Melnicke, Yehuda Hoffner, the former administrator of PGN, receiver Cardiff Bay Center, LLC, Leo Friedman and Joseph Brunner, holding them responsible for certain health care claims; and to modify the Chapter 11 cases to include the Movant's and PGN employee's accrued medical debt. For the reasons stated by the Court at the July 1 hearing, the Motion is denied as to Lapin Jones, individually and as Trustee, Weston, Hoffner, Melnicke, Friedman and Brunner. The hearing on the Motion as it relates to the Debtors and Cardiff Bay Center, LLC, is adjourned to Aug. 15, 2013, at 10:30 a.m. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody served as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. In April 2013, the bankruptcy court discharged Daniel T. McMurray from his duties and responsibilities as patient care ombudsman. Richard J. McCord, Esq., was appointed by the Court as examiner in the Debtors' cases. His task was to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. Certilman Balin, & Hyman, LLP, which counts Mr. McCord as one of the firm's members, served as counsel for the Examiner. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. Robert M. Hirsh, Esq., at Arent Fox LLP, in New York, N.Y., represents the Committee as counsel. At the behest of the U.S. Trustee, Lori Lapin Jones, Esq. -- ljones@jonespllc.com -- was named Chapter 11 Trustee in March 2012, replacing Todd Miller, the Debtors' Chief Executive Officer. The Chapter 11 trustee is represented by LaMonica Herbst & Maniscalco LLP as her counsel. Storch Amini & Munves, PC, serves as the Chapter 11 Trustee's special counsel in connection with her investigation of the Debtors. She obtained approval to employ Garfunkel Wild, P.C., as her special health care, regulatory, corporate, finance and litigation counsel; and Foy Advisors LLC as consultant. PG&E CORP: Says Gas Penalty Would Push Co. to Brink of Bankruptcy ----------------------------------------------------------------- Mark Chediak, writing for Bloomberg News, reported that PG&E Corp., owner of California's largest electric utility, said it may be pushed to the edge of bankruptcy if state regulators impose a proposed $2.25 billion penalty for a deadly 2010 pipeline explosion. According to the report, if approved, the company would pay a total of $4 billion, including money already spent on pipeline upgrades and safety work, Chairman and Chief Executive Officer Tony Earley said in an interview at Bloomberg headquarters in New York today. The San Francisco-based company would need to sell about $2 billion in additional stock, he said. "The risk is you can't raise that capital and you end up in bankruptcy," Earley said, the report added. Investors would have to buy stock that they "would never get a return on" because the money couldn't be recovered from customers. "If I was a shareholder, I wouldn't be buying PG&E stock under those circumstances." Last month, staff of the California Public Utilities Commission changed a prior recommendation and called for PG&E to pay $2.25 billion in penalties for the explosion that killed eight people in San Bruno, California, including a $300 million fine for violating safety rules, the report recalled. An earlier proposal would've given the company credit for money already spent on upgrades and safety work. The penalty is more than four times the company's net income last year and is 15 years worth of earnings for the gas business, Earley said, the report added. Moody's Investors Service and Standard & Poor's have said they would review California's regulatory system if the full penalty is assessed. PG&E Corporation is a holding company that conducts its business through Pacific Gas and Electric Company (Utility). The Utility's revenues are generated mainly through the sale and delivery of electricity and natural gas to customers. POINT CENTER: H. Grobstein Succeeds T. Seaman as Ch. 11 Trustee --------------------------------------------------------------- Judge Theodor C. Albert of the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division, approved the U.S. Trustee's application to appoint Howard B. Grobstein as Chapter 11 Trustee for Point Center Financial, Inc. Mr. Grobstein succeeds Thomas Seaman, CFA, as Chapter 11 Trustee. Peter C. Anderson, the U.S. Trustee, is represented by Frank Cadigan, Esq. -- Frank.Cadigan@usdoj.gov -- Assistant U.S. Trustee, in Santa Ana, California. About Point Center Point Center Financial, Inc., a hard money lender, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 13-11495) in Santa Ana, California, on Feb. 19, 2013. The Debtor disclosed $109,257,545 in assets and $54,566,116 in liabilities as of the Chapter 11 filing. The Company claims to have a long track record of success in originating and servicing loans from hundreds of investors. Unfortunately, due to the historic collapse of the economy beginning in about 2007, the Debtor, no different than many other similar enterprises in real estate, has fallen on hard times. From a high of about 130 performing loans with a total combined face value of over $450 million in 2006, only 8 loans are now performing. There were a total of only four foreclosed properties ("REOs") as of 2006. In comparison, between 2007 and 2012, there were 60 foreclosure sales. The result left the Debtor saddled with large secured liabilities to PMB, which has a blanket lien on all of the Debtor's assets in excess of $9 million, secured by the Debtor's primary asset of loan servicing and management fees received from secured loans and properties that have been taken back through foreclosure. The MA Creditors are represented by Mary L. Fickel, Esq., at Fickel & Davis. The Official Committee of Unsecured Creditors is represented by Marshack Hays LLP. POLYMER GROUP: Moody's Retains B1 Rating over FiberWeb Deal ----------------------------------------------------------- Moody's Investors Service said that Polymer Group Inc.'s ratings and outlook are not immediately impacted by plans to acquire Fiberweb plc. because the structure of the transaction, including the terms and conditions of any related financing, has not been announced, but it could be credit negative if the company funds the acquisition using a significant portion of debt. Moody's view is based on terms disclosed publicly by Fiberweb in its public announcement. Polymer Group has not made a formal offer at this point. Headquartered in Charlotte, North Carolina, Polymer Group, Inc. is one of the world's leading producers of nonwoven materials sold to makers of consumer and industrial products. End uses include disposable diapers, feminine hygiene products, cleaning wipes, surgical gowns & drapes, and furniture & bedding, among others. PGI was acquired by The Blackstone Group in January 2011. On July 27, 2012, Moody's assigned an SGL-2 Speculative Grade Liquidity Rating to Polymer Group. Moody's also affirmed the company's existing long-term credit ratings, including the B1 Corporate Family Rating, B1 Probability of Default Rating, and B1 rating on the $560 million Senior Secured Notes due 2019. PREMIER PAVING: Can Continue Using Cash Collateral Until Sept. 1 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Colorado authorized Premier Paving, Inc., to continue using cash collateral of Wells Fargo Bank, N.A., for an additional month through Sept. 1, 2013, pursuant to the terms of the Stipulation of Use of Cash Collateral entered into by the Debtor and Wells Fargo dated July 26, 2013. A copy of the Stipulation for Use of Cash Collateral is available at http://bankrupt.com/misc/premierpaving.doc446.pdf About Premier Paving Headquartered in Denver, Colorado Premier Paving, Inc. -- http://www.premierpavinginc.com/-- operates a full-service highway construction company, which services include paving, grading and milling, geo-textiles, trucking, traffic control and quality control. Premier Paving also owns and operates an asphalt plant. Premier Paving filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 12-16445) on April 2, 2012. Judge Michael E. Romero presides over the case. In its petition, the Debtor estimated up to $50 million in assets and debts. The petition was signed by David Goold, treasurer. Lee M. Kutner, Esq., at Kutner Miller Brinen, P.C., serves as the Debtor's counsel. Pinnacle Real Estate Advisors LLC provides professional broker services related to the sale of certain of the Debtor's real estate assets. The Official Unsecured Creditors Committee is represented by J. Brian Fletcher, Esq., at Onsager, Staelin & Guyerson, LLC. PURADYN FILTER: Had $474,000 Net Loss in Second Quarter ------------------------------------------------------- Puradyn Filter Technologies Incorporated filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $474,215 on $600,390 of net sales for the three months ended June 30, 2013, as compared with a net loss of $273,119 on $804,099 of net sales for the same period last year. For the six months ended June 30, 2013, the Company incurred a net loss of $890,899 on $1.17 million of net sales, as compared with a net loss of $505,097 on $1.55 million of net sales for the same period during the prior year. As of June 30, 2013, the Company had $1.30 million in total assets, $11.17 million in total liabilities and a $9.87 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/wvjRVV About Puradyn Filter Boynton Beach, Fla.-based Puradyn Filter Technologies Incorporated (OTC BB: PFTI) designs, manufactures and markets the puraDYN's Oil Filtration System. Puradyn Filter reported a net loss of $2.22 million on $2.57 million of net sales for the year ended Dec. 31, 2012, as compared with a net loss of $1.61 million on $2.67 million of net sales during the prior year. 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 suffered recurring losses from operations, its total liabilities exceed its total assets, and it has relied on cash inflows from an institutional investor and current stockholder. These conditions raise substantial doubt about the Company's ability to continue as a going concern. PWK TIMBERLAND: Hearing on Exclusivity Extension Resumes Today -------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Louisiana continued until today, Aug. 22, 2013, at 10:30 a.m., the hearing to consider PWK Timberland LLC's request for extension of its exclusivity period. As reported in the Troubled Company Reporter on Aug. 14, 2013, the Court vacated the July 23 order extending the Debtor's exclusivity periods because, according to Gerald J. Casey, Esq., counsel for the Debtor, the order was submitted to the Court in error. As reported in the TCR on July 26, 2013, the Debtor asked for an extension in its exclusive periods to file a proposed chapter 11 plan until Nov. 21, 2013, and solicit acceptances for that plan until Jan. 21, 2014. The Debtor explained that it needed more time to negotiate a settlement and propose a plan of reorganization without interference from creditors and other interests. Under the present deadline, the Debtor's Chapter 11 plan is due Sept. 18, 2013. About PWK Timberland Lake Charles, Louisiana-based PWK Timberland LLC sought Chapter 11 protection (Bankr. W.D. La. Case No. 13-20242) on March 22, 2013. Gerald J. Casey, Esq., serves as counsel to the Debtor. The Debtor disclosed $15,038,448 in assets and $1,792,957 in liabilities as of the Chapter 11 filing. QBEX ELECTRONICS: Has Until Aug. 28 to File Chapter 11 Plan ----------------------------------------------------------- The Hon. Robert A. Mark of the U.S. Bankruptcy Court for the Southern District of Florida gave his stamp of approval to an agreed order extending QBEX Electronics Corporation, Inc., et al.'s exclusive periods to file a Chapter 11 plan until Aug. 28, 2013. The agreed order, entered into with the Official Committee of Unsecured Creditors, resolves the Committee's objection and provides that: -- if a Plan is filed by the Aug. 28 deadline, the Debtors will have the exclusive right to obtain acceptances of that Plan until Sept. 27; -- the Debtors will, by Aug. 23, produce to the Committee all documents, which the Debtors have not already produced to the Committee, in the Debtor's possession, custody or control that are responsive to the document requests; and -- the Debtors will, by Aug. 23, provide the Committee with a plan for the liquidation of the Debtors' non-core assets (i.e., computers and parts). The Committee asked the Court to deny approval of the Debtors' third motion to extend exclusivity. The Committee related that to date, the Debtors have not fully complied with the agreed order extending exclusivity. As reported in the TCR 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. QUALITY DISTRIBUTION: Apollo Had 17.4% Equity Stake at March 13 --------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission on Aug. 13, 2013, Apollo Capital Management II, Inc., and its affiliates disclosed that as of March 13, 2012, they beneficially owned 4,696,715 shares of common stock of Quality Distribution, Inc., representing 17.4 percent of the shares outstanding. On March 13, 2012, Fund III, Overseas III and UK Partners III sold an aggregate of 3,185,815 shares of common stock pursuant to an underwritten offering, in connection with the public offering of shares of common stock by the Company, including an aggregate of 685,815 shares of common stock that were sold upon exercise of the underwriters' over-allotment option, pursuant to an underwriting agreement, dated as of March 7, 2012, among the Company, the Apollo Funds, and Goldman, Sachs & Co., JP Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Credit Suisse Securities (USA) LLC. A copy of the regulatory filing is available for free at: http://is.gd/5GTa1k About Quality Distribution Quality Distribution, LLC, and its parent holding company, Quality Distribution, Inc., are headquartered in Tampa, Florida. The company is a transporter of bulk liquid and dry bulk chemicals. The company's 2010 revenues are approximately $686 million. Apollo Management, L.P., owns roughly 30 percent of the common stock of Quality Distribution, Inc. Bankruptcy Warning According to the Company's annual report for the period ended Dec. 31, 2012, the Company had consolidated indebtedness and capital lease obligations, including current maturities, of $418.8 million as of Dec. 31, 2012. The Company must make regular payments under the ABL Facility and its capital leases and semi- annual interest payments under its 2018 Notes. The Company's 2018 Notes issued in the quarter ended Dec. 31, 2010, carry high fixed rates of interest. In addition, interest on amounts borrowed under the Company's ABL Facility is variable and will increase as market rates of interest increase. The Company does not presently hedge against the risk of rising interest rates. The Company's higher interest expense may reduce its future profitability. The Company's future higher interest expense and future redemption obligations could have other important consequences with respect to the Company's ability to manage its business successfully, including the following: * it may make it more difficult for the Company to satisfy its obligations for its indebtedness, and any failure to comply with these obligations could result in an event of default; * it will reduce the availability of the Company's cash flow to fund working capital, capital expenditures and other business activities; * it increases the Company's vulnerability to adverse economic and industry conditions; * it limits the Company's flexibility in planning for, or reacting to, changes in the Company's business and the industry in which the Company operates; * it may make the Company more vulnerable to further downturns in its business or the economy; and * it limits the Company's ability to exploit business opportunities. The ABL Facility matures August 2016. However, the maturity date of the ABL Facility may be accelerated if the Company defaults on its obligations. "If the maturity of the ABL Facility and/or such other debt is accelerated, we may not have sufficient cash on hand to repay the ABL Facility and/or such other debt or be able to refinance the ABL Facility and/or such other debt on acceptable terms, or at all. The failure to repay or refinance the ABL Facility and/or such other debt at maturity would have a material adverse effect on our business and financial condition, would cause substantial liquidity problems and may result in the bankruptcy of us and/or our subsidiaries. Any actual or potential bankruptcy or liquidity crisis may materially harm our relationships with our customers, suppliers and independent affiliates." * * * As reported in the TCR on June 28, 2013, Moody's Investors Service upgraded Quality Distribution, LLC's Corporate Family Rating to B2 from B3 and Probability of Default Rating to B2-PD from B3-PD. The upgrade of Quality's CFR to B2 was largely driven by the expectation that credit metrics will improve over the next twelve to eighteen months, through a combination of EBITDA growth and debt paydowns, to levels consistent with the B2 rating level. The company is in the process of integrating the bolt-on acquisitions made in its Energy Logistics business sector since 2011. R&K FABRICATING: Trustee May Amend Suit v. Tokio Marine et al ------------------------------------------------------------- In the lawsuit, MICHAEL J. DURRSCHMIDT Plaintiff(s) v. FROST NATIONAL BANK, et al Defendant(s), Adv. Proc. No. 12-03177(Bankr. S.D. Tex.), Bankruptcy Judge Marvin Isgur issued a Memorandum Opinion addressing: 1. the Motion for Leave to Amend Complaint filed by Michael Durrschmidt, the Chapter 11 Trustee, and now the Disbursing Agent, in the case of R&K Fabricating, Inc.; 2. Defendant Tokio Marine & Nichido Fire Insurance's Motion for Leave to File Third Amended Cross-Claim in Compliance with Court's Order; and 3. Defendant Wyendell S. Evans' Motion for Leave to File Cross Counter-Claim Against Tokio Marine & Nichido Fire Insurance Company, Ltd. and Cross Complaint Against Crawford & Company. The Trustee's Motion for Leave to Amend is granted, in part, and denied, in part. Tokio's Motion for Leave to Amend is granted, in part, and denied, in part. Evans' Motion for Leave to File Cross Counter-Claim and Cross Complaint is denied. A copy of the Court's Aug. 20 Memorandum Opinion is available at http://is.gd/cghPfQfrom Leagle.com. R&K Fabricating, Inc., manufactures frac tanks. Ricardo Gonzalez is the principal owner of R&K. As a result of the 2008 financial crisis, R&K began receiving cancellation notices on tank orders and becoming delinquent on its accounts payable. This led to R&K filing a voluntary chapter 11 petition (Bankr. S.D. Tex. Case No. 10-33878) on May 5, 2010. Mr. Gonzalez filed an individual case (Case No. 10-33880) on the same day. On March 25, 2011, an Agreed Motion to Appoint Trustee was filed by the United States Trustee, and Michael Durrschmidt was named the Chapter 11 Trustee on March 31, 2011. RAI STIFF: Case Summary & 2 Unsecured Creditors ----------------------------------------------- Debtor: Rai Stiff, Ltd. P.O. Box 7024 Virginia Beach, VA 23457 Bankruptcy Case No.: 13-73035 Chapter 11 Petition Date: August 15, 2013 Court: United States Bankruptcy Court Eastern District of Virginia (Norfolk) Judge: Stephen C. St. John Debtor's Counsel: Ann B. Brogan, Esq. CROWLEY, LIBERATORE, RYAN & BROGAN P. C. Town Point Center, Ste 300, 150 Boush St. Norfolk, VA 23510 Tel: (757) 333-4500 Fax: (757) 333-4501 E-mail: abrogan@clrbfirm.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 largest unsecured creditors, filed together with the petition, is available for free at http://bankrupt.com/misc/vaeb13-73035.pdf The petition was signed by Raietta M Johnson, director. RAINBOW LAND: Case Now Assigned to Judge Laurel Davis ----------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada reassigned the Chapter 11 case and any related adversary proceedings of Rainbow Land & Cattle Company, LLC, to the Hon. Laurel E. Davis. Bankruptcy Judge Bruce A. Markell previously presided over the case. About Rainbow Land Rainbow Land & Cattle Company, LLC, is the owner of approximately 466 acres of undeveloped real property located in Caliente, Nevada, and approximately 133 acre feet of water appurtenant to the property. The Property was financed by Zions First National Bank at the time of the purchase. Rainbow Land filed a Chapter 11 petition (Bankr. D. Nev. Case No. 12-14009) on April 4, 2012. It scheduled $15.43 million in assets and $2.50 million in liabilities. The Debtor owns approximately 579.48 undeveloped acres of real property located in Caliente, Nevada, along with 466.79 acre feet of water rights. The Debtor is owned by John Huston, 45.2381%; Jan J. Cole, 45.2381%; and Clarence Burr, 9.52381%. Alan R. Smith, Esq., at the Law Offices of Alan R. Smith serves as bankruptcy counsel. The petition was signed by John H. Huston, managing member. Smith Larsen & Wixom represents Zions Bank as counsel. The Debtor confirmed its first amended plan of reorganization which intended to sell or refinance its property prior to the expiration of a deferral period of three years. Postpetition and during the Deferral Period, interest, attorneys' fees and other charges will continue to accrue on the Zions Bank and Heise Loans. RESIDENTIAL CAPITAL: FHFA Can Sue Ally Despite ResCap Bankruptcy ---------------------------------------------------------------- Reuters reported that the Federal Housing Finance Agency may pursue a fraud lawsuit against Ally Financial Inc even though Ally's Residential Capital LLC mortgage unit is in bankruptcy, a federal judge said. According to the report, Judge Denise Cote, of U.S. District Court in Manhattan, said the lawsuit is unlikely to have an "immediate adverse economic consequence" for ResCap's estate, such that it would be subject to an automatic stay under the U.S. Bankruptcy Code. Bankrupt debtors typically invoke the automatic stay to halt litigation, which could interfere with their reorganizations, the report noted. Lawyers for ResCap did not immediately respond to requests for comment, the report said. Ally is among 18 defendants that the FHFA sued in 2011 for allegedly making false or misleading statements in documents relating to residential mortgage-backed securities bought by Fannie Mae, Freddie Mac or both, the report related. The case is Residential Capital LLC et al v. Federal Housing Finance Agency, U.S. District Court, Southern District of New York, No. 12-05116. 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). RESPONSE BIOMEDICAL: Posts C$3.3 Million Net Income in 2nd Qtr. --------------------------------------------------------------- Response Biomedical Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income and comprehensive income of C$3.34 million on C$1.14 million of gross profit on product sales for the three months ended June 30, 2013, as compared with net income and comprehensive income of C$2.39 million on C$1.15 million of gross profit on product sales for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss and comprehensive loss of C$6.62 million on C$2.73 million of gross profit on product sales, as compared with a net loss and comprehensive loss of C$3.31 million on C$2.41 million of gross profit on product sales for the same period a year ago. Response Biomedical disclosed a net loss and comprehensive loss of C$5.28 million on C$11.75 million of product sales for the year ended Dec. 31, 2012, as compared with a net loss and comprehensive loss of C$5.37 million on C$9.02 million of product sales during the prior year. As of June 30, 2013, the Company had C$13.29 million in total assets, C$18.57 million in total liabilities and a C$5.28 million total shareholders' deficit. Response's Chief Executive Officer, Jeff Purvin, commented on second quarter, 2013, performance, saying, "We expected this quarter's sales might decline given our high level of seasonal Influenza test sales last quarter. In addition, the quarter's sales results reflect two of our distributors' decision to delay some of their expected second quarter orders into the third quarter. Offsetting our modest sales declines, however, are markedly increased gross margins and lower operating expenses, the result of continued tight internal financial controls and improved operational efficiencies. We continue to focus on developing and transitioning to an expanded U.S. sales base which, given the sales cycle involved, we believe should result in improved sales in 2014 and beyond. In addition, we are making continued progress towards achieving our own product registrations in China which we expect will help us to stabilize and grow our China base of sales by allowing us to increase the number of distributors of our products in this important market for us." "The ability of the Company to continue as a going concern is uncertain and dependant on the Company's ability to obtain additional financing to fund ongoing operations. Management has, thus far, financed the operations through a series of equity financings. Management will continue, as appropriate, to seek other sources of financing, including equity and debt, on favorable terms. However, there are no assurances that any such financing can be obtained on favorable terms, if at all. Management believes that without additional financing, based on the current level of operations, and excluding out of the ordinary cash management measures, the Company's cash and cash equivalents balances, including cash generated from operations, will not be sufficient to meet the anticipated cash requirements beyond mid- fourth quarter, 2013. If additional financing is not obtained, the Company may be required to significantly reduce, restructure or cease operations. In view of these conditions, there is substantial doubt over the Company's ability to continue as a going concern as it is dependent on financing and ultimately achieving profitable operations, the outcome of which cannot be predicted at this time," the Company said in the quarterly report. A copy of the Form 10-Q is available for free at: http://is.gd/JwdYGv About Response Biomedical Based in Vancouver, Canada, Response Biomedical Corporation develops, manufactures and sells diagnostic tests for use with its proprietary RAMP(R) System, a portable fluorescence immunoassay- based diagnostic testing platform. The RAMP(R) technology utilizes a unique method to account for sources of error inherent in conventional lateral flow immunoassay technologies, thereby providing the ability to quickly and accurately detect and quantify an analyte present in a liquid sample. Consequently, an end-user on-site or in a point-of-care setting can rapidly obtain important diagnostic information. Response Biomedical currently has thirteen tests available for clinical and environmental testing applications and the Company has plans to commercialize additional tests. REVOLUTION DAIRY: Has Interim OK to Use Cash Collateral to Aug. 22 ------------------------------------------------------------------ The Hon. R. Kimball Mosier of the U.S. Bankruptcy Court for the District of Utah authorized, on an interim basis, Revolution Dairy, LLC, et al. to use cash collateral from Aug. 1, 2013, to Aug. 22, 2013. Secured creditors asserting an interest in the cash collateral proposed to be used by the Debtors (including Rabo Agrifinance, Inc.; Metropolitan Life Insurance; Delta Cache, LLC; Cargill, Inc.; Intermountain Farmers Association ("IFA"), and WesternAg Credit, PCA ("WAC") will be granted a replacement lien in all post-petition property of like kind acquired by the Debtors to the extent of the respective Debtors' use of cash collateral. The Debtors will not expend more than $2,107,000 for the month of August, inclusive of approved adequate protection payment to IFA and MetLife, prior to Aug. 22, 2013, without the consent of Rabo or further order from the Court. All issues raised by Rabo in its objection are reserved pending final resolution at a final hearing on Aug. 22, 2013. On July 29, Rabo filed its Objection to the Debtors' Cash Collateral Motion, telling the Court that it should refuse to grant the Debtors cash collateral authority, final or otherwise, for an extended three month period while the Debtors attempt to get their proposed Plan confirmed. Instead, according to Rabo, the Court should only authorize cash collateral expenditures for periods of one month at a time, and then only if the Debtors provide Rabo adequate protection. 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., Adam S. Affleck, Esq., and T. Edward Cundick, Esq., at Prince, Yeates & Geldzahler. Highline Dairy, LLC, is represented by George B. Hoffman, Esq., at Parsons Kinghorn & Harris. Robert and Judith Bliss are represented by David T. Berry, Esq., at Berry & Tripp P.C. The Debtors' cases are jointly administered under Case No. 13-20770. The U.S. Trustee appointed five members to the official committee of unsecured creditors. The Committee tapped Snell and Wilmer L.L.P. as its counsel. ROCKWELL MEDICAL: D. Hagelstein Had 4.9% Equity Stake at July 31 ---------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, David Hagelstein Charitable Remainder Unitrust dated November 20, 2003, as amended, and David A. Hagelstein disclosed that as of July 31, 2013, they beneficially owned 1,991,593 shares of common stock of Rockwell Medical Technologies, Inc., representing 4.9 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/o9yibN About Rockwell Rockwell Medical, Inc. (Nasdaq: RMTI), headquartered in Wixom, Michigan, is a fully-integrated biopharmaceutical company targeting end-stage renal disease ("ESRD") and chronic kidney disease ("CKD") with innovative products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis (also referred to as "HD" or "dialysis"). Rockwell's lead investigational drug is in late stage clinical development for iron therapy treatment in CKD-HD patients. It is called Soluble Ferric Pyrophosphate ("SFP"). SFP delivers iron to the bone marrow in a non-invasive, physiologic manner to hemodialysis patients via dialysate during their regular dialysis treatment. In its report on the consolidated financial statements for the year ended Dec. 31, 2012, Plante & Moran, PLLC, in Clinton Township, Michigan, expressed substantial doubt about Rockwell Medical's ability to continue as a going concern, citing the Company's recurring losses from operations, negative working capital, and insufficient liquidity. The Company reported a net loss of $54.0 million on $49.8 million of sales in 2012, compared with a net loss of $21.4 million on $49.0 million of sales in 2011. As of June 30, 2013, the Company had $54.02 million in total assets, $36.78 million in total liabilities and $17.23 million in total shareholders' equity. SAEXPLORATION HOLDINGS: To Restate Q1 2013 Financial Statements --------------------------------------------------------------- SAExploration Holdings, Inc. on Aug. 20 provided an update on the previously disclosed review of questions associated with certain adjustments to direct operating expenses between the 2013 first quarter ended March 31, 2013 and the second quarter ended June 30, 2013. On August 19, 2013, SAE determined that it will restate, and that investors should not rely upon, its previously-filed interim financial statements for Q1 2013, following management's discussion of the matter with the audit committee of SAE's board of directors, and management's and the audit committee's discussions with SAE's independent registered public accounting firm. The restatement results from information that came to SAE's attention in connection with the preparation and review of its Form 10-Q for Q2 2013, as reported in SAE's August 13, 2013 press release announcing preliminary financial results for the six months ended June 30, 2013. Although the review is ongoing and additional items may need to be included in the restatement, certain adjustments have been identified relating to SAE's operations in Papua New Guinea. As reported on August 13, 2013, these adjustments will change the allocation of direct operating expenses between Q1 2013 and Q2 2013. SAE believes that these adjustments may decrease Q1 2013 direct operating expenses by up to $1.3 million, resulting in restated net income for Q1 2013 of $6.2 million, up from as reported net income of $4.9 million. Because of the time involved in restating Q1 2013, SAE will not timely file its Quarterly Report on Form 10-Q for Q2 2013. SAE expects Q2 2013 direct operating expenses to increase by approximately $1.7 million to $2.0 million. At this time, SAE cannot estimate net income for Q2 2013, but does not expect that possible further adjustments will change its expected range of net income for the six-months ended June 30, 2013 by more than $300,000 from the amounts reported in the August 13, 2013 press release. SAE's financial statements for Q1 2013 were included in SAE's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 28, 2013, which incorporated such financial statements by reference to its proxy statement/information statement dated May 31, 2013. SAE will amend that Form 8-K to reflect the restatement of those financial statements. It expects to file the Q1 2013 amendment on Form 8-K/A and its Form 10-Q for Q2 2013 as soon as possible. In connection with the restatement, SAE is in the process of evaluating deficiencies in its internal control over financial reporting. As part of this evaluation, management may determine that a deficiency associated with the accounting for its Papua New Guinea operations constitutes a material weakness. SAE has begun taking immediate steps to remediate this potential deficiency and intends to take further action to remediate any other deficiencies that are identified as part of its evaluation of its internal control over financial reporting, which may include centralizing its accounting operations at one location. About SAExploration Holdings, Inc. Based in Calgary, Canada, SAE -- http://www.saexploration.com-- is a holding company of various subsidiaries which cumulatively form a geographically diversified seismic data acquisition company. SAE provides a full range of 2D, 3D and 4D seismic data services to its clients, including surveying, program design, logistical support, data acquisition, processing, camp services, catering, environmental assessment and community relations. SAE services its multinational client base from offices in Canada, Alaska, Peru, Columbia, Bolivia, Papua New Guinea, New Zealand and Brazil. SAND SPRING CAPITAL III: Plan Confirmation Hearing on September 18 ------------------------------------------------------------------ On July 25, 2013, the U.S. Bankruptcy Court approved the adequacy of the disclosure statement for Sand Spring Capital III, LLC, et al's Third Amended Joint Plan of Reorganization filed July 24, 2013. The hearing to consider confirmation of the Plan will commence on Sept. 18, 2013, at 11:30 a.m. The Plan Confirmation Deadline is Sept. 11, 2013, at 4:00 p.m. The Voting record date is July 25, 2013, at 4:00 p.m. The voting deadline is Sept. 11, 2013, at 4:00 p.m. A copy of the disclosure statement for the Debtors' Third Amended Joint Plan of Reorganization filed July 24, 2013, is available at: The Plan implements a settlement with Cantor Fitzgerald & Co. and related entities, referred to as the "Cantor Chapter 11 Settlement," which the Bankruptcy Court approved on May 28, 2013. Under the Cantor Chapter 11 Settlement, in exchange for Cantor's payment of $1 million to the Debtors (the "Cantor Derivative Claim Settlement Amount"), the Debtors are releasing the claims against the Cantor Group. Subject to the resolution of certain disputed claims, the Cantor Derivative Claim Settlement Amount will be released to the Debtors for distribution to all Investors pro rata. In addition to the Cantor Derivative Settlement Amount, Cantor has agreed to pay up to a total of $1 million to Investors who vote in favor of the Plan and elect to release their direct claims and causes of action against the members of the Cantor Group. The Cantor Direct Claim Settlement Amount will only total $1.0 million in the event that all Investors affirmatively elect to grant a Direct Claim Release. In other words, in the event that Investors holding 75% of the Interest elect to release their direct claims and causes of action against the members of the Cantor Group, the Cantor Direct Claim Settlement Amount will be $750,000. Alternatively, Investors may elect to retain any potential direct claims and causes of action against members of the Cantor Group. A copy of the disclosure statement for the Debtors' Third Amended Joint Plan of Reorganization filed July 24, 2013, is available at: http://bankrupt.com/misc/sandspring.doc937.pdf About Sand Spring Nine funds advised by Commonwealth Advisors Inc. of Baton Rouge, Louisiana, sought Chapter 11 protection on Oct. 25, 2011, after failing to work out a reorganization plan acceptable to all investors. Lead Debtor is Sand Spring Capital III, LLC (Bankr. D. Del. Case No. 11-13393). Kenneth J. Enos, Esq., and Michael R. Nestor, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serve as counsel to the Debtors. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The funds were formed from 2005 to 2007 under Walter Morales, president and chief investment manager, and attracted 456 investors, according to filings in U.S. Bankruptcy Court in Wilmington, Delaware. Last year, investors filed class-action and derivative suits alleging mismanagement, misrepresentation, and breach of fiduciary duty. According to Bloomberg News, the U.S. Securities and Exchange Commission initiated a formal investigation in July 2009. The funds were unable or unwilling to satisfy investors' redemption demands, which would have required liquidation of "their holdings in an illiquid market and at depressed prices." The funds, Commonwealth and Morales negotiated a prepackaged Chapter 11 plan, which was accepted by all classes of creditors except one. Because third-party contributions required unanimous approval, the funds said they filed in Chapter 11 so they could have "further discussions with their investors with the oversight of this court." Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP, represents the Debtor. SAVE MOST: Wants to Use Cash Collateral Until Sept. 30 ------------------------------------------------------ Save Most Desert Rancho, Ltd., asks the U.S. Bankruptcy Court for the Central District of California to approve a stipulation with JPMorgan Chase Bank, N.A., extending the use of cash collateral until Sept. 30, 2013. According to the Debtor, this is the third extension for the use of cash collateral. As reported in the Troubled Company Reporter on July 24, 2013, the Court authorized the Debtor to use cash collateral of JPMorgan until Aug. 31. As reported in the TCR on Feb. 7, 2013, JPMorgan will be granted, to the extent of the amount of cash collateral used by the Debtor pursuant to the order, a first priority replacement lien in (a) all prepetition and postpetition rents; (b) all leases and occupancy agreements affecting the Debtor's Laguna Hills property; and (c) all associated proceeds and products. About Save Most Desert Rancho Save Most Desert Rancho, Ltd., filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 12-23173) in Santa Ana, California on Nov. 15, 2012. The Laguna Hills-based company disclosed $10,134,997 in assets and $14,874,770 in liabilities as of the Chapter 11 filing. The petition was signed by Charles Kaminskas for Brighton Park, LP, general partner. Michael G. Spector, Esq., and Vicki L. Schennum, Esq., at The Law Offices of Michael G. Spector, in Santa Ana, Calif., represent the Debtor as Chapter 11 insolvency counsel. Michael D. Testan, Esq., represents JPMorgan. SB PARTNERS: Delays Q2 Form 10-Q to Complete Audit -------------------------------------------------- SB Partners has delayed the filing of its quarterly report on Form 10-Q for the period ended June 30, 2013. SB Partners has a 30 percent non-controlling interest in Sentinel Omaha, LLC, an affiliate of the Company's general partner. The investment in Omaha is accounted for at fair value. Earlier this year, the controller for Omaha informed the Company that, due to open issues, Omaha's auditors would be unable to complete their audit and issue an audit opinion for calendar year 2012 until late August 2013. "Because the investment in Omaha constitutes a significant portion of the assets of the Company, Company's auditors are required to review both the financial statements of Omaha and the related workpapers prepared by Omaha's auditors after the audit work of Omaha is completed," John H. Zoeller, vice president and chief financial officer, said in a regulatory filing with the U.S. Securities and Exchange Commission. "Until the Company's auditors perform their review of the Omaha audit, the Company's auditors cannot issue an audited opinion on the Company's financial statements for the period ending Dec. 31, 2012. As a result, the Company was not able to file its form 10-K for the period ending Dec. 31, 2012, timely and filed form 10-K NT," he added. The Company anticipates filing the form 10-K for the year ended Dec. 31, 2012, and form 10-Q for the period ending June 30, 2013, shortly after the Omaha audit for Dec. 31, 2012, is complete. The Company expects to report a net loss of $296,015 on $626,103 of total revenues for the three months ended June 30, 2013, as compared with a net loss of $261,154 on $642,766 of total revenues for the same period last year. About SB Partners Milford, Conn.-based SB Partners is a New York limited partnership engaged in acquiring, operating and holding for investment a varying portfolio of real estate interests. As of June 30, 2010, the partnership owns an industrial flex property in Maple Grove, Minnesota and warehouse distribution centers in Lino Lakes, Minnesota and Naperville, Illinois. The Company has a 30 percent interest in Sentinel Omaha, LLC. Sentinel Omaha is a real estate investment company which currently owns 24 multifamily properties and 1 industrial property in 17 markets. Sentinel Omaha is an affiliate of the partnership's general partner. SCIENTIFIC LEARNING: Incurs $54,000 Net Loss in Second Quarter -------------------------------------------------------------- Scientific Learning Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing 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 last year. For the six months ended June 30, 2013, the Company incurred 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 a year ago. 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 net capital deficiency. A copy of the Form 10-Q is available for free at: http://is.gd/BgQA0Z 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% 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: Texas Counties Assert $35,000 in Unpaid Tax Liens ---------------------------------------------------------------- Law360 reported that three Texas counties earlier this month urged a Delaware bankruptcy judge to reject Scooter Store Holdings Inc.'s bid for final relief orders, saying that the Scooter Store still owes them $35,000 in unpaid tax liens. According to the report, the objection, jointly filed by Dallas, Harris and Nueces counties, was raised against Scooter Store's bid for final orders authorizing cash collateral. The counties said that the Texas-based scooter and wheelchair seller still owes $35,000 in first priority tax liens and that they must take priority in the proceedings, the report related. On Monday, Scooter Store won court authority to use cash collateral after a deal was reached with unsecured creditors. 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. The closely held company listed assets of less than $10 million and debt of more than $50 million. 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. SEANERGY MARITIME: Has Until Oct. 28 to Regain NASDAQ Compliance ---------------------------------------------------------------- Seanergy Maritime Holdings Corp. has received a notice from the Nasdaq Capital Market, dated Aug. 7, 2013, granting the Company an extension of time until Oct. 28, 2013, to regain compliance with the NASDAQ Listing Rule 5550(b)(1). Under the terms of the extension, on or before Oct. 28, 2013, the Company must furnish to the Securities and Exchange Commission and NASDAQ a publicly available filing that, among other things, evidences compliance with the minimum $2.5 million stockholders' equity requirement. In the event the Company does not satisfy the terms of the extension, the Company expects to be notified that its securities will be subject to delisting. At that time, the Company may appeal NASDAQ's determination to a Hearings Panel. The Company is working on implementing a plan that it will enable to regain compliance with the NASDAQ Listing Rule 5550(b)(1) by Oct. 28, 2013. This notification has no effect on the listing status of the Company's common stock at this time. About Seanergy Athens, Greece-based Seanergy Maritime Holdings Corp. is an international company providing worldwide seaborne transportation of dry bulk commodities. The Company owns and operates a fleet of seven dry bulk vessels that consists of three Handysize, two Supramax and two Panamax vessels. Its fleet carries a variety of dry bulk commodities, including coal, iron ore, and grains, as well as bauxite, phosphate, fertilizer and steel products. In its audit report on the consolidated financial statements for the year ended Dec. 31, 2012, Ernst & Young (Hellas) Certified Auditors Accountants S.A., in Athens, Greece, expressed substantial doubt about Seanergy Maritime's ability to continue as a going concern. The independent auditors noted that the Company has not complied with the principal and interest repayment schedule and with certain covenants of its loan agreements, which in turn gives the lenders the right to call the debt. "In addition, the Company has a working capital deficit, recurring losses from operations, accumulated deficit and inability to generate sufficient cash flow to meet its obligations and sustain its operations." The Company reported a net loss of US$193.8 million on US$55.6 million of net vessel revenue in 2012, compared with a net loss of US$197.8 million on US$104.1 million of net vessel revenue in 2011. As of March 31, 2013, the Company had US$93.01 million in total assets, US$193.56 million in total liabilities and a US$100.54 million total deficit. SEVEN COUNTIES: Has Authority to Employ CCRE as Realtor ------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Kentucky, Louisville Division, authorized Seven Counties Services, Inc., to employ Commonwealth Commercial, Inc., as realtor. As realtor, CCRE will list and market properties that the Debtor identifies for sale or lease during the pendency of their Chapter 11 cases. The Debtor says it needs the services of a realtor to enable the estate to obtain maximum value for its real estate. About Seven Counties Seven Counties Services Inc., a not-for-profit behavioral services provider from Louisville, Kentucky, filed for Chapter 11 protection (Bankr. W.D. Ky. Case No. 13-31442) in the hometown on April 4, 2013. The petition was signed by Anthony M. Zipple as president/CEO. The Debtor scheduled assets of $45,603,716 and scheduled liabilities of $232,598,880. Seiller Waterman LLC serves as the Debtor's counsel. Judge Joan A. Lloyd presides over the case. The agency generates more than $100 million a year in revenue and employs a staff of 1,400 providing services at 21 locations and 120 schools and community centers. SEVEN COUNTIES: Seeks to Employ Deming Malone as Auditor -------------------------------------------------------- Seven Counties Services, Inc., seeks authority from the U.S. Bankruptcy Court for the Western District of Kentucky, Louisville Division, to employ Deming Malone Livesay & Ostroff CPAs as auditor to conduct reviews of the Debtor's financial reporting and employee benefits packages. The Debtor discloses that prior to the Petition Date it issued a check in the amount of $8,340 to DMLO. The Debtors also paid DMLO in the amount of $17,000 for services rendered since the Petition Date. David M. Cantor, Esq. -- cantor@derbycitylaw.com -- Neil C. Bordy, Esq. -- bordy@derbycitylaw.com -- Charity B. Neukomm, Esq. -- neukomm@derbycitylaw.com -- Tyler R. Yeager, Esq. -- yeager@derbycitylaw.com -- and James E. McGhee III, Esq. -- mcghee@derbycitylaw.com -- at SEILLER WATERMAN LLC, in Louisville, Kentucky, represent the Debtor. About Seven Counties Seven Counties Services Inc., a not-for-profit behavioral services provider from Louisville, Kentucky, filed for Chapter 11 protection (Bankr. W.D. Ky. Case No. 13-31442) in the hometown on April 4, 2013. The petition was signed by Anthony M. Zipple as president/CEO. The Debtor scheduled assets of $45,603,716 and scheduled liabilities of $232,598,880. Seiller Waterman LLC serves as the Debtor's counsel. Judge Joan A. Lloyd presides over the case. The agency generates more than $100 million a year in revenue and employs a staff of 1,400 providing services at 21 locations and 120 schools and community centers. SHILO INN: Aug. 27 Hearing on Extension of Lease Decision Period ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California will convene a hearing on Aug. 27, 2013, at 11 a.m., to consider Shilo Inn, Twin Falls, LLC's motion for extension of time to assume or reject non-residential real property leases. The Debtor, in its motion, requested that the Court extend the deadline to assume or reject nonresidential real property leases from Aug. 29, until Nov. 27. According to the Debtor, the leases are ground leases for the hotels and hotel operations of Shilo Rose Garden and Shilo Moses Lake, and are required to operate the hotels. California Bank & Trust has objected to the Debtor's motion stating that the Debtors do not really need more time to decide whether to assume or reject the ground leases for the Rose Garden and Moses Lake hotels. CB&T related that the true purpose of the motion is to promote the Debtors' delay campaign and bolster an attempt to avoid filing their proposed reorganization plans within the 120-day exclusivity period. Additionally, as established in the appraisals of John Gordon submitted by CB&T in connection with the latest cash collateral motion, there is no equity in either Rose Garden or Moses Lake, even with the ground lease assumptions. Therefore, CB&T will be able to establish that neither property is necessary for an effective reorganization and that CB&T must be entitled to relief from stay to foreclose. About Shilo Inn, Twin Falls Shilo Inn, Twin Falls, LLC, and six affiliates filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 13-21601) on May 1, 2013. Judge Richard M. Neiter presides over the case. Shilo Inn, Twin Falls estimated assets of at least $10 million and debts of at least $1 million. Shilo Inn, Twin Falls; Shilo Inn, Nampa Blvd, LLC; Shilo Inn, Newberg, LLC; Shilo Inn, Seaside East, LLC, Shilo Inn, Moses Lake, Inc.; and Shilo Inn, Rose Garden, LLC each operates and owns a hotel. California Bank and Trust is the primary, senior secured lender for each of the Debtors. The Debtors sought Chapter 11 protection after CBT on May 1, 2013, filed for receiverships in district court. David B. Golubchick, Esq., at Levene, Neale, Bender, Yoo & Brill LLP, represents the Debtor in its restructuring effort. SHOTWELL LANDFILL: Ragsdale Liggett to Handle Wake County Matters ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of North Carolina, according to Shotwell Landfill, Inc.'s case docket, authorized the Debtor to employ William W. Pollock, Esq., and Ragsdale Liggett PLLC as special counsel for a pending matter in Wake County Superior Court captioned Double "J" Enterprises, Inc. v. Shotwell Landfill, Inc., David W. King, Jr., and Shelly E. King. Mr. Pollock -- BPOLLOCK@RL-LAW.COM -- and the firm will continue to represent the Debtor in the matter. Mr. Pollock and the firm have performed a variety of legal work for the Debtor for many years. Mr. Pollock and the firm are owed $140,585 for prepetition work and expenses. Mr. Pollock and the firm are owed $1,026 by the Debtor for postpetition work and expenses. As reported in the Troubled Company Reporter on Aug. 6, 2013, the firm's rates are: Professional Rates ------------ ----- Partners $325 per hour Associates $165 per hour Paralegals $125 per hour Mr. Pollock attests that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code About Shotwell Landfill, Inc. Raleigh, North Carolina-based Shotwell Landfill, Inc., filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 13-02590) in Wilson on April 19, 2013. The Debtor disclosed $23,027,736 in assets and $10,039,308 in liabilities as of the Chapter 11 filing. William P. Janvier, Esq., at the Janvier Law Firm, PLLC, represents the Debtor as counsel. The Bankruptcy Administrator was unable to appoint an official committee of unsecured creditors in the Debtor's case. SHOTWELL LANDFILL: Files Amended Schedules of Assets & Liabilities ------------------------------------------------------------------ Shotwell Landfill, Inc., Shotwell Landfill, Inc., filed with the U.S. Bankruptcy Court for the Eastern District of North Carolina on Aug. 5, 2013, amended schedules of its assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $2,900,000 B. Personal Property $20,127,736 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $9,675,268 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $363,389 ----------- ----------- TOTAL $23,027,736 $10,038,658 A copy of the schedules is available for free at: http://bankrupt.com/misc/shotwell.doc85-1.pdf About Shotwell Landfill, Inc. Raleigh, North Carolina-based Shotwell Landfill, Inc., filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 13-02590) in Wilson on April 19, 2013. The Debtor estimated $10 million to $50 million in assets and liabilities. William P. Janvier, Esq. at the Janvier Law Firm, PLLC, represents the Debtor as counsel. William W. Pollock, Esq., at Ragsdale Liggett PLLC, represents the Debtor as special counsel. SHOTWELL LANDFILL: Offers to Fully Pay Creditors in Installments ---------------------------------------------------------------- Shotwell Landfill, Inc., filed with the U.S. Bankruptcy Court for the Eastern District of North Carolina a disclosure statement for the Debtor's proposed Chapter 11 Plan, filed Aug. 16, 2013. Branch Bank & Trust has filed a proof of claim in the amount of $13.7 million. The claim amount is disputed. Pursuant to the Plan, the Allowed Secured Claim of BB&T in Class 3 will be placed in current, non-default status and re-amortized over 25 years with interest at the Secured Rate. The Debtor will make monthly payments according to such amortization. The Debtor anticipates that Branch Bank & Trust's Class 3 Claim will be $2,900,000. BB&T's Allowed Unsecured Claim in Class 6 will be amortized over 25 years at the Unsecured Rate, or such amortization and rate as the Court finds necessary for confirmation. The Debtor will make monthly payments according to such amortization. The Debtor anticipates that the Class 6 Claim will be less than $6,700,000. Allowed Unsecured Claims of less than $5,000 in Class 7 will be paid in full 90 days after the Effective Date. The Debtor anticipates that the Class 7 Claims will be less than $5,500. Allowed General Unsecured Claims in Class 8 will receive quarterly installments of $30,000 to be split pro rata among Allowed Claims in Class 8 until paid in full. The Debtor anticipates Class 8 Claims will be less than $360,000. Class 8 claimants have filed proofs of claim totaling $200,637.03. The existing Allowed Equity Interests in the Debtor in Class 9 will remain the same as prepetition. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/shotwelllandfill.doc99.pdf About Shotwell Landfill, Inc. Raleigh, North Carolina-based Shotwell Landfill, Inc., operates landfill in located in Wendell, N.C. The Company filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 13-02590) in Wilson on April 19, 2013. The Debtor estimated $10 million to $50 million in assets and liabilities. William P. Janvier, Esq. at the Janvier Law Firm, PLLC, represents the Debtor as counsel. William W. Pollock, Esq., at Ragsdale Liggett PLLC, represents the Debtor as special counsel. SIERRA NEGRA: Global Water Objects to Approval of 3rd Amended DS ---------------------------------------------------------------- Sierra Negra Ranch, LLC, filed with the U.S. Bankruptcy Court for the District of Nevada a Third Amended Disclosure Statement for the Debtor's Third Amended Plan of Reorganization. Global Water Resources, Inc. According to the Third Amended Disclosure Statement, the Plan contemplates the full payment of all Allowed Claims and the amount to cure the Infrastructure Agreement with Global Water Resources, Inc., from the revenue generated by the farming leases on the Real Property combined with a potential sale of a portion of the Real Property, along with capital raised through the Shareholders' Rights Offering of $5,807,500 of Series A Preferred Shares of Limited-Liability Company Interest. The Debtor believes that its projected revenues are sufficient to satisfy all of its obligations under the Plan. According to the Debtor, as of the date of the filing of this Disclosure Statement, it has raised a sum in excess of $2,558,020, and is confident that it will raise an additional sum of no less than $2,000,000 through the Offering. According to papers filed with the Court, the Debtor anticipates that it will sell, prior to the Payoff Date, approximately 100 acres of the Real Property, which will generate Sale Proceeds in the approximate sum of $800,000 to $1,000,000. According to the Debtor, it is on track to have sufficient funds available to it to meet its obligations under the Plan and the Omnibus Order, whether the Court determines that the amount to cure the Infrastructure Agreement is the full amount claimed by Global which is $4,621,728.38 as of the Petition Date (an amount with which Debtor disagrees). The Omnibus Order, entered on July 25, 2013, provides that the Cure amount due under the Infrastructure Agreement must be paid four (4) months following the Effective Date of the Plan, but not later than March 21, 2014. The Global Claim is comprised of $2,802,156 in EDU fees, fees and costs of $179,947.84 incurred in the arbitration, interest of $1,596,736.01 through July 17, 2012, additional interest of $42,893.21 through the Petition Date, plus claimed interest and fees and costs incurred since the Petition Date. The Debtor tells the Court that while a dispute exists between it and Global as to the Cure Amount, it will have more than sufficient funds by March 21, 2014, to satisfy the Cure Amount. A copy of the Debtor's Third Amended Disclosure Statement is available at http://bankrupt.com/misc/sierranegra.doc364.pdf Global Water's Objection Global Water Resources, Inc., by and through its counsel, Snell & Wilmer, L.L.P., objects to the approval of the Debtor's Third Amended Disclosure Statement, and asks the Bankruptcy Court to authorize it to lodge an order converting the Debtor's case to a case under Chapter 7 of the Bankruptcy Code unless Global receives the cure amount of $5,408,268.22 on or before 5:00 p.m. on Aug. 30, 2013. According to papers filed with the Court, instead of paying the Cure Amount in full, in cash, on or before March 21, 2014, as ordered by the Bankruptcy Court on July 11, the Debtor proposes to satisfy the claim with numerous deductions and offsets, and proposes to make the payment subject to certain conditions and third party approvals. Global says this "Last Chance Plan" is not designed to satisfy its claim but, instead, is designed to lead to more delays and more litigation. Further, according to Global, the Debtor's "Last Chance Disclosure Statement" only adds two more paragraphs regarding the funding of the Plan and offers no proof of this funding, other than statements such as the Debtor is "confident it will raise an additional sum of no less than $2,000,000." A copy of Global's objection to the Debtor's Third Amended Disclosure Statement is available at: http://bankrupt.com/misc/sierranegra.doc372.pdf Counsel for Global Water can be reached at: Robert R. Kinas, Esq. Blakeley E. Griffith, Esq. Charles E. Gianelloni, Esq. SNELL & WILMER L.L.P. 3883 Howard Hughes Parkway, Suite 1100 Las Vegas, NV 89169 Tel: (702) 784-5200 Fax: (702) 784-5252 E-mail: rkinas@swlaw.com bgriffith@swlaw.com cgianeloni@swlaw.com About Sierra Negra Ranch Las Vegas, Nevada-based Sierra Negra Ranch, LLC, is a limited liability company organized in November 2004 to purchase an aggregate of approximately 2,757.5 acres of undeveloped land in the Tonopah area of incorporated Maricopa County, west of Phoenix, Arizona. It filed a bare-bones Chapter 11 petition (Bankr. D. Nev. Case No. 12-19649) in Las Vegas on Aug. 21, 2012. Candace C. Clark, Esq., Gerald M. Gordon, Esq., Kirk D. Homeyer, Esq., and Mark M. Weisenmiller, Esq., at Gordon Silver, in Las Vegas, Nev., represent the Debtor as counsel. In its amended schedules, the Debtor disclosed $26,197,986 in total assets and $4,801,931 in total liabilities. The Debtor is "Single Asset Real Estate" as defined in 11 U.S.C. Sec 101(51B) and its asset is located in Maricopa County, Arizona. SILVERSUN TECHNOLOGIES: Posts $62,000 Net Income in 2nd Quarter --------------------------------------------------------------- Silversun Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $62,185 on $3.87 million of net total revenues for the three months ended June 30, 2013, as compared with a net loss of $334,031 on $3.07 million of net total revenues for the same period last year. For the six months ended June 30, 2013, the Company posted net income of $177,715 on $7.91 million of net total revenues, as compared with a net loss of $1.04 million on $5.98 million of net total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $2.58 million in total assets, $3.18 million in total liabilities, all current, and a $599,480 of total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/xMVcTN About SilverSun Livingston, N.J.-based SilverSun Technologies, Inc., formerly known as Trey Resources, Inc., focuses on the business software and information technology consulting market, and is looking to acquire other companies in this industry. SWK Technologies, Inc., the Company's subsidiary and the surviving company from the acquisition and merger with SWK, Inc., is a New Jersey-based information technology company, value added reseller, and master developer of licensed accounting and financial software published by Sage Software. SWK Technologies also publishes its own proprietary supply-chain software, the Electronic Data Interchange (EDI) solution "MAPADOC." SWK Technologies sells services and products to various end users, manufacturers, wholesalers and distribution industry clients located throughout the United States, along with network services provided by the Company. As reported in the TCR on April 2, 2011, Friedman LLP, in East Hanover, NJ, expressed substantial doubt about Trey Resources, Inc.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred substantial accumulated deficits and operating losses, and at Dec. 31, 2010, has a working capital deficiency of approximately $5.1 million. SL GREEN: Moody's Affirms 'Ba1' Sr. Debt Rating; Outlook Stable --------------------------------------------------------------- Moody's Investors Service affirmed SL Green's senior unsecured rating at Ba1 with a stable outlook. The following ratings were affirmed: SL Green Realty Corporation * senior secured shelf at (P)Baa3 * senior unsecured debt at Ba1 * senior unsecured shelf at (P)Ba1 * subordinate shelf at (P)Ba2 * junior subordinate shelf at (P)Ba2 * preferred stock at Ba2 * preferred shelf at (P)Ba2 SL Green Operating Partnership L.P. * senior secured shelf at (P)Baa3 * senior unsecured shelf at (P)Ba1 * subordinate shelf at (P)Ba2 * junior subordinate shelf at (P)Ba2 * preferred shelf at (P)Ba2 Reckson Operating Partnership L.P. * senior secured shelf at (P)Baa3 * senior unsecured debt at Ba1 * senior unsecured shelf at (P)Ba1 * subordinate shelf at (P)Ba2 * junior subordinate shelf at (P)Ba2 Ratings Rationale: This rating action reflects SL Green's high quality portfolio of primarily Manhattan real estate, good quality unencumbered asset pool and stable credit metrics. Moody's expects the REIT to maintain strong occupancy in its Manhattan portfolio (94.4% on a same store basis for H1'13 inclusive of JVs) and to improve its suburban occupancy (80.2% for the same period). Moody's also acknowledges SL Green's strong liquidity and conservative FFO payout. Positively, the REIT's fixed charge coverage (inclusive of JVs) also improved in 2013. Counterbalancing these strengths, the REIT's net debt/EBITDA is material at 8.2x (including pro rata share of JVs), and its secured debt is high at 38.4% (pro rata for joint ventures). In addition, SL Green's unencumbered asset pool is limited at 33% of gross assets (inclusive of cash), although the REIT has been adding to it recently. The stable rating outlook incorporates Moody's expectation that SL Green will continue its strong operating performance and maintain its defensive credit metrics. Upward rating momentum would be predicated upon a material increase in SLG's unencumbered assets (over 40% of gross assets) while maintaining strong unencumbered EBITDA to unsecured interest expense (over 3.0x), a material reduction in overall secured debt (closer to 20% of gross assets), net debt to recurring EBITDA below 7.0x and fixed charge coverage over 2.4x on a sustained basis (all metrics inclusive of its proportionate share of joint ventures). Negative rating pressure would occur from effective leverage (debt plus preferred as a percentage of gross assets) approaching 55%, net debt to EBITDA increasing closer to 9.0x, secured debt rising above 40% or fixed charge coverage falling below 1.7x (all metrics inclusive of SLG's proportionate share of joint ventures). The ratings would also be pressured should SLG's unencumbered assets to gross assets decline materially from existing levels. The principal methodology used in this rating was Global Rating Methodology for REITs and Other Commercial Property Firms published in July 2010. SL Green Realty Corporation [NYSE: SLG] is a real estate investment trust (REIT) focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2013, SL Green owned interests in 87 Manhattan properties totaling 42.8 million square feet. This included ownership interests in 28.1 million square feet of commercial properties and debt and preferred equity investments secured by 14.7 million square feet of properties. At June 30, 2013, SL Green's assets totaled $14.4 billion and its equity was $6.7 billion. SOUND SHORE: Patient Care Ombudsman Can Hire Neubert as Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Sound Shore Medical Center of Westchester, et al., to employ Neubert, Pepe & Monteith, P.C., as counsel, for Daniel T. McMurray, the patient care ombudsman. About Seven Counties Seven Counties Services Inc., a not-for-profit behavioral services provider from Louisville, Kentucky, filed for Chapter 11 protection (Bankr. W.D. Ky. Case No. 13-31442) in the hometown on April 4, 2013. The petition was signed by Anthony M. Zipple as president/CEO. The Debtor scheduled assets of $45,603,716 and scheduled liabilities of $232,598,880. Seiller Waterman LLC serves as the Debtor's counsel. Judge Joan A. Lloyd presides over the case. The agency generates more than $100 million a year in revenue and employs a staff of 1,400 providing services at 21 locations and 120 schools and community centers. SPECIALTY PRODUCTS: Loses Bid to Stay $1.1-Bil. Asbestos Ruling --------------------------------------------------------------- Law360 reported that Specialty Products Holding Corp. lost its bid to stay a Delaware bankruptcy court's decision pegging its asbestos-related liability at $1.1 billion while it attempts to appeal the ruling directly to the Third Circuit. According to the report, U.S. Bankruptcy Judge Peter J. Walsh denied Specialty Products' motion to hold off on that determination or at least to suspend any proceedings based on it, rebuffing arguments that Specialty Products would likely succeed with its "substantial and strong" appeal. About Specialty Products Cleveland, Ohio-based Specialty Products Holdings Corp., aka RPM, Inc., is a wholly owned subsidiary of RPM International Inc. The Company is the holding company parent of Bondex International, Inc., and the direct or indirect parent of certain additional domestic and foreign subsidiaries. The Company claims to be a leading manufacturer, distributor and seller of various specialty chemical product lines, including exterior insulating finishing systems, powder coatings, fluorescent colorants and pigments, cleaning and protection products, fuel additives, wood treatments and coatings and sealants, in both the industrial and consumer markets. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-11780) on May 31, 2010. Gregory M. Gordon, Esq., Dan B. Prieto, Esq., and Robert J. Jud, Esq., at Jones Day, serve as bankruptcy counsel. Daniel J. DeFranceschi, Esq., and Zachary I. Shapiro, Esq., at Richards Layton & Finger, serve as co- counsel. Logan and Company is the Company's claims and notice agent. The Company estimated its assets and debts at $100 million to $500 million. The Company's affiliate, Bondex International, Inc., filed a separate Chapter 11 petition on May 31, 2010 (Case No. 10-11779), estimating its assets and debts at $100 million to $500 million. On May 20, 2013, the Bankruptcy Court entered an order estimating the amount of the Debtors' asbestos liabilities, and a related memorandum opinion in support of the estimation order. The Bankruptcy Court estimated the current and future asbestos claims associated with Bondex International, Inc. and Specialty Products Holding at approximately $1.17 billion. The estimation hearing represents one step in the legal process in helping to determine the amount of potential funding for a 524(g) asbestos trust. SPEEDEMISSIONS INC: Had $111,400 Net Loss in Second Quarter ----------------------------------------------------------- Speedemissions, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $111,490 on $1.77 million of revenue for the three months ended June 30, 2013, as compared with a net loss of $75,967 on $1.98 million of revenue for the same period during the prior year. For the six months ended June 30, 2013, the Company incurred a net loss of $382,263 on $3.65 million of revenue, as compared with a net loss of $192,749 on $3.90 million of revenue for the same period last year. As of June 30, 2013, the Company had $2.50 million in total assets, $2.08 million in total liabilities, $4.57 million in series A convertible, redeemable preferred stock, and a $4.15 million total shareholders' deficit. "Our revenues for the quarter and six-month period ended June 30, 2013 and the fiscal year ended December 31, 2012 were below our expectations and internal forecasts primarily as a result of fewer vehicle emissions tests and safety inspections being performed at our stores. Our revenues for these periods have been insufficient to attain profitable operations and to provide adequate levels of cash flow from operations. Our near term liquidity and ability to continue as a going concern is dependent on our ability to generate sufficient revenues from our store operations to provide sufficient cash flow from operations to pay our current level of operating expenses, to provide for inventory purchases and to reduce past due amounts owed to vendors and service providers. No assurances may be given that the Company will be able to achieve sufficient levels of revenues in the near term to provide adequate levels of cash flow from operations. As a result of the Company's history of losses and financial condition, there is substantial doubt about the ability of the Company to continue as a going concern," the Company said in the quarterly report. After auditing the 2011 results, Habif, Arogeti & Wynne, LLP, in Atlanta, Georgia, expressed substantial doubt about Speedemissions' ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has a capital deficiency. A copy of the Form 10-Q is available for free at: http://is.gd/tHXnIY About Speedemissions Tyrone, Georgia-based Speedemissions, Inc., is a test-only emissions testing and safety inspection company. The Company reported a net loss of $281,723 for the nine months ended Sept. 30, 2012. The Company reported a net loss of $1.6 million in 2011, compared with a net loss of $2.2 million in 2010. SPIRE CORP: Incurs $1.7 Million Net Loss in Second Quarter ---------------------------------------------------------- Spire Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.78 million on $3.57 million of total net sales and revenues for the three months ended June 30, 2013, as compared with a net loss of $1.82 million on $6.62 million of total net sales and revenues for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $4.41 million on $6.81 million of total net sales and revenues, as compared with net income of $1.54 million on $14.09 million of total net sales and revenues for the same period during the prior year. The Company reported a net loss of $1.9 million on total net sales and revenues of $22.1 million in 2012, compared with a net loss of $1.5 million on total net sales of $58.7 million in 2011. As of June 30, 2013, the Company had $13.46 million in total assets, $10.15 million in total liabilities and $3.31 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/T13CVI About Spire Corp Bedford, Massachusetts-based Spire Corporation currently develops, manufactures and markets customized turn-key solutions for the solar industry, including individual pieces of manufacturing equipment and full turn-key lines for cell and module production and testing. McGladrey LLP, in Boston, Massachusetts, expressed substantial doubt about Spire Corporation's ability to continue as a going concern. The independent auditors noted that during the year ended Dec. 31, 2012, the Company incurred a loss from continuing operations of $4.8 million and continuing operating cash flows used $6.9 million in cash. In addition, the independent auditors noted that the Company's credit agreements are due to expire on June 29, 2013. STELERA WIRELESS: Wants MOHL as Additional Bankruptcy Counsel ------------------------------------------------------------- Stelera Wireless, LLC, asks the U.S. Bankruptcy Court for the Western District of Oklahoma for authorization to employ Jeffrey A. Tate, Esq., and other attorneys at Mulinix Ogden Hall & Ludlam ("MOHL") as additional bankruptcy counsel, retroactive to July 18. The professional services which MOHL is to render will include: (a) To give Debtor legal advice with respect to its powers, duties and obligations as Debtor in Possession in the operation of its business and management of its assets. (b) To advise Debtor regarding the conduct of this Chapter 11 case, including the legal and administrative requirements of a Chapter 11 case. (c) To participate in meetings and negotiations with creditors and other parties in interest. (d) To evaluate litigation matters and if necessary participate in the prosecution or defense of such matters. (e) To prepare, on debtor's behalf, such pleadings, applications, motions, answers, orders, reports and other legal papers as may be necessary during the conduct of these proceedings. (f) To participate in any asset sales as needed by the Debtor. (g) To aid in Debtor's reporting responsibilities. (h) To perform and provide all such other and further legal services for Debtor as may be necessary during the conduct of these proceedings. MOHL's current hourly rates are: Members: $330 to $350 Associates: $150 to $200 Paraprofessionals $75 Prior to the Petition Date, MOHL received $20,997 for fees and expenses in advising the Debtor and preparing for the filing of its Chapter 11 Petition and related documents. MOHL believes it is a "disinterested person," as defined in 11 U.S.C. Section 101(14). Stelera Wireless, LLC, filed a Chapter 11 petition (Bankr. W.D. Okla. Case No. 13-13267) on July 18, 2013. Tim Duffy signed the petition as chief technology officer/manager. Judge Niles L. Jackson presides over the case. The Debtor estimated assets and debts of at least $10 million. Christensen Law Group, PLLC, serves as the Debtor's primary counsel. Mulinix Ogden Hall & Ludlam, PLLC, serves as additional bankruptcy counsel. STELERA WIRELESS: Wants to Hire CLG as Primary Bankruptcy Counsel ----------------------------------------------------------------- Stelera Wireless, LLC, asks the U.S. Bankruptcy Court for the Western District of Oklahoma for authorization to employ Christensen Law Group, P.L.L.C., to act as primary counsel to the Debtor, retroactive to July 18. J. Clay Christensen, Esq., D. Michael O'Neil, Esq., and Jonathan M. Miles, Esq., will be primarily responsible for CLG's bankruptcy representation of the Debtor in this matter. The professional services CLG will be required to render include, in special counsel role, local and conflicts counsel with an eye toward not duplicating effort with Jeffrey Tate, Esq., of Mulinix, Ogden, Hall, Andrews & Ludlam, but are not limited to: (a) advising the Debtor with respect to its powers and duties as debtor-in-possession; (b) advising and consulting on the conduct of this Chapter 11 case, including all of the legal and administrative requirements of operating in Chapter 11; (c) attending meetings and negotiating with representatives of creditors and other parties in interest; (d) taking all necessary actions to protect and preserve the Debtor's estate, including prosecuting actions on the Debtor's behalf, if needed, defending any actions commenced against the Debtor, if needed, and representing the Debtor in any negotiations concerning the sale of its property; (e) preparing pleadings in connection with the Chapter 11 case, including motions, applications, answers, draft orders, reports and other documents necessary or otherwise beneficial to the administration of the Debtor's estate; (f) representing the debtor in connection with obtaining authority to sell certain property of the estate; (g) appearing before the Court and any appellate courts to represent the interests of the Debtor's estate; (h) negotiating and documenting agreements for the Section 363 sale or dispositions of Debtor's primary assets; and (i) performing all other necessary legal services for the Debtor in connection with the prosecution of the Chapter 11 case, including: (a) analyzing the Debtor's agreement to sell property; (b) analyzing the Debtor's leases and contracts and the assumption and assignment or rejection thereof; and (c) analyzing the validity of liens asserted against the Debtor and its assets; and CLG's current hourly rates are: Partners $360 Directors $350 Associates $275 Paraprofessionals $150 During the past 3 1/2 months prior to the Petition Date, CLG received $69,529.50 in fees and expenses in assisting the Debtor counsel relating to the sale of its assets and relating to this case. CLG has received and holds a prepetition unused retainer for services to be performed and reimbursement of related expenses in the prosecution of this Chapter 11 case of $158.50. To the best of the Debtor's knowledge, information and belief, the Debtor believes that CLG does not hold or represent any interest adverse to Debtor or its estate, and that CLG is a "disinterested person" as defined in 11 U.S.C. Sec. 101(14). Stelera Wireless, LLC, filed a Chapter 11 petition (Bankr. W.D. Okla. Case No. 13-13267) on July 18, 2013. Tim Duffy signed the petition as chief technology officer/manager. Judge Niles L. Jackson presides over the case. The Debtor estimated assets and debts of at least $10 million. Christensen Law Group, PLLC, serves as the Debtor's primary counsel. Mulinix Ogden Hall & Ludlam, PLLC, serves as additional bankruptcy counsel. STELERA WIRELESS: Files Schedules of Assets and Liabilities ----------------------------------------------------------- Stelera Wireless, LLC, filed with the U.S. Bankruptcy Court for the Western District of Oklahoma its schedules of assets and liabilities, disclosing: Assets Liabilities ----------- ----------- A. Real Property $0 B. Personal Property $18,005,000 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $23,831,615 E. Creditors Holding Unsecured Priority Claims $384,256 F. Creditors Holding Unsecured Nonpriority Claims $6,593,443 ----------- ----------- Total $18,005,000 $30,809,314 A copy of the Schedules is available at: http://bankrupt.com/misc/stelera.doc34.pdf Stelera Wireless, LLC, filed a Chapter 11 petition (Bankr. W.D. Okla. Case No. 13-13267) on July 18, 2013. Tim Duffy signed the petition as chief technology officer/manager. Judge Niles L. Jackson presides over the case. The Debtor estimated assets and debts of at least $10 million. Christensen Law Group, PLLC, serves as the Debtor's primary counsel. Mulinix Ogden Hall & Ludlam, PLLC, serves as additional bankruptcy counsel. STEVE & BARRY'S: Paul Hastings Freed From $50MM Malpractice Case ---------------------------------------------------------------- Law360 reported that a Cerberus Capital Management LP affiliate has only itself to blame for loaning money for another company to acquire assets from a bankrupt retailer, a New York state appeals court ruled, finding that Paul Hastings LLP hadn't dropped the ball. According to the report, the Cerberus affiliate, Ableco Finance LLC, had alleged that its lawyers at Paul Hastings hadn't told it that the loan wasn't secured by as much of bankrupt retailer Steve & Barry's inventory as it thought, but the evidence in the case suggested otherwise. About Steve & Barry's Headquartered in Port Washington, New York, Steve and Barry's LLC -- http://www.steveandbarrys.com/-- is a national casual apparel retailer that offers high quality merchandise at low prices for men, women and children. Founded in 1985, the company operates 276 anchor and junior anchor shopping center and mall-based locations throughout the U.S. The discount clothing chain's brands include the BITTEN(TM) collection, the first-ever apparel line created by actress and global fashion icon Sarah Jessica Parker, and the STARBURY(TM) collection of athletic and lifestyle apparel and sneakers created with NBA (R) star Stephon Marbury. Steve & Barry's LLC, and 63 affiliates filed separate voluntary petitions under Chapter 11 protection on July 9, 2008 (Bankr. S.D.N.Y. Lead Case No. 08-12579). Lori R. Fife, Esq., and Shai Waisman, Esq., at Weil, Gotshal & Manges, LLP, represent the Debtors in their restructuring efforts. Diana G. Adams, United States Trustee for Region 2, has appointed seven members to the Official Committee of Unsecured Creditors in the Debtors' Chapter 11 cases. On Aug. 22, 2008, the Debtors obtained permission from the Court to sell substantially all of their assets for $168 million to a joint venture by Bay Harbour Management and York Capital, BHY S&B Holdings, LLC. Under the terms of the purchase agreement, majority of the Debtors' 276 stores will remain open. Pursuant to the Purchase Agreement, the Court authorized 51 Debtors to change their corporate names. Lead Debtor Steve & Barry's Manhattan LLC (Case No. 08-12579) has been changed to Stone Barn Manhattan LLC. Parent company Steve & Barry's LLC (Case No. 08-12615) is now known as Steel Bolt LLC. When the Debtors filed for bankruptcy, they disclosed $693,492,000 in total assets and $638,086,000 in total debts. STONE ROSE: Files Disclosure Statement; Metcalf Bank Paid in Full ----------------------------------------------------------------- Stone rose, LP, filed with the U.S. Bankruptcy Court for the Northern District of Illinois Friday a disclosure statement dated Aug. 16, 2013, describing the Debtor's Plan of Liquidation dated Aug. 16, 2013. The Plan provides for the transfer of the assets of the Debtor to a liquidation trust, the liquidation of those assets by the trustees, and the payment of the claims of creditors and a return of capital to the limited partners to the extent of the net proceeds of the liquidation. The secured claim of Metcalf Bank, the Debtor's only secured creditor, will be allowed in the amount of $2,117,758.52 as of April 19, 2013. Metcalf Bank will be paid in full from the proceeds of the sale of its collateral, an 82-acre parcel of vacant land in Wyandotte County, Kansas. Any proceeds in excess of the amount required to pay Metcalf Bank will be added to the proceeds of the liquidation of the Debtor's remaining assets and, after payment of administrative expenses of the Chapter 11 case and the costs of liquidating the Debtor's assets, used to pay the other claims against the Debtor. General unsecured creditors, totaling approximately $930,401.82, will be paid on a pro rata basis until paid in full. All equity interests in the Debtor will be canceled as of the Effective Date. After the payment of priority claims and the claims of general unsecured creditors, holders of equity interests in the Debtor will receive a pro rata distribution of any remaining funds as a return of capital. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/stonerose.doc39.pdf About Stone Rose Aurora, Illinois-based Stone Rose, LP, filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 13-16410) in Chicago, Illinois, on April 19, 2013. Joseph G. Dinges signed the petition as president of Stone Rose Mgmt., Inc., general partner. Judge Eugene R. Wedoff presides over the case. G. Alexander McTavish, Esq., at Foote, Mielke, Chavez & O'Neil, in Geneva, Ill., represents the Debtor as counsel. Stone Rose disclosed $16.5 million in total assets and $6.93 million in total liabilities in its schedule. The Debtor owns 82 acres of vacant land at 123rd St and Parallel Pky, in Kansas City, Missouri, which is valued at $4 million, and serves as collateral for a $2 million debt to Metcalf Bank. The Debtor also has a 75% interest as a member of Big House Investments, LLC, which owns 17 acres of vacant land at 110th St. and I-70 in Edwardsville, Kansas. The land is subject to a contract for sale for $6 million and is subject to a $4.0 million mortgage in favor of Metcalf Bank. STRATUM HOLDINGS: Incurs $247K Net Loss in Second Quarter --------------------------------------------------------- Stratum Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $246,705 on $668,796 of revenues for the three months ended June 30, 2013, compared with net income of $62,354 on $754,657 of revenues for the same period last year. Gain on oil and gas derivatives for the three months ended June 30, 2013, was $9,056 versus $329,378 for the three months ended June 30, 2012. According to the Company, this fluctuation was due to the change in fair value of CYMRI's outstanding oil and gas derivative contracts. The Company reported a net loss of $338,688 on $1.4 million of revenues for the six months ended June 30, 2013, compared with a net loss of $255,690 on $1.5 million of revenues for the corresponding period of 2012. Gain on oil and gas derivatives for the six months ended June 30, 2013 was $1,616 versus $225,500 for the six months ended June 30, 2012. The Company's balance sheet at June 30, 2013, showed $7.0 million in total assets, $5.5 million in total liabilities, and stockholders' equity of $1.5 million. According to the regulatory filing, the Company has reported net losses from continuing operations in the last two years and has a substantial working capital deficit as of June 30, 2013. "These factors, among others, indicate that the Company may be unable to continue as a going concern for a reasonable period of time." A copy of the Form 10-Q is available at http://is.gd/ZfXSeM Houston-based Stratum Holdings, Inc., is a holding company whose operations are presently focused on the domestic Exploration & Production business. In that business, the Company's wholly-owned subsidiaries, CYMRI, L.L.C., and Triumph Energy, Inc., maintain working interests in approximately 45 to 50 producing oil and gas wells in Texas and Louisiana, with net production of approximately 700 MCF equivalent per day. In late 2012, the Company formed a new wholly-owned subsidiary, Deployed Energy, Inc., to enter the domestic Energy Services business, however, the Company has yet to determine when or if it will commence operations in that subsidiary. As a result of the unexpected passing of the Company's Chief Executive Officer in April 2013, the Company is considering divestment of the oil and gas properties in its Exploration & Production business, as well as other possible corporate level transactions. SYNAGRO TECHNOLOGIES: Ch 11. Plan, $480MM Buyout Gets Judge's Nod ----------------------------------------------------------------- Law360 reported that Synagro Technologies Inc. won approval of its Chapter 11 plan that aims to see Swedish private equity firm EQT Holdings acquire stock in the reorganized company in a $480 million deal, including $465 million in cash to go toward creditors. According to the report, U.S. Bankruptcy Judge Brendan L. Shannon gave the plan the green light at a hearing in Delaware, noting Synagro's bankruptcy process was conducted on a "largely consensual basis" and that the company had overwhelming creditor support. 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 SORRENTO: Court Confirms Fourth Amended Chapter 11 Plan --------------------------------------------------------- On Aug. 9, 2013, the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, confirmed the Fourth Amended Chapter 11 Plan filed by T Sorrento, Inc., and Transcontinental Realty Investors, Inc., dated Aug. 1, 2013. The Fourth Amended Plan does not adversely change the treatment of creditors voting in favor of the Original Chapter 11 Plan filed on April 3, 2013, other than RMR Investments, Inc., and West Orient Investments, Inc. Pursuant to the terms of the Fourth Amended Plan, the Debtor, TCI, and RMR agree that the amount of the Allowed Class 2 Claim of RMR - Casino is $4,244,495. The Allowed Class 2 Claim will accrue interest after the Effective Date at the annual rate of 7% in year one, 7.5% in year two, and 8% in year three, in each case using simple interest. Beginning on the Effective Date, the Debtor will pay interest on the first day of each month at the annual rate of 5% using simple interest plus an additional $12,500 to be applied to the principal balance. The unpaid balance of the Allowed Class 2 Claim together will all accrued and unpaid interest and any other fees assessed to the Allowed Class 2 Claim, will be due and owing on the 36th month following the Effective Date. The Debtor, TCI, and RMR agree that the amount of the Allowed Class 3 Claim of RMR - Stanley is $1,732,589. The Allowed Class 3 Claim will accrue interest at the annual rate of 7% between Sept. 1, 2013, and the Effective Date, using simple interest, and no further interest, fees, or other expenses. The Allowed Class 3 Claim will accrue interest after the Effective Date at the annual rate of 7% in year one, 7.5% in year two, and 8% in year three, in each case using simple interest. Beginning on the Effective Date, the Debtor will pay interest on the first day of each month at the annual rate of 5% using simple interest plus an additional $5,000 to be applied to the principal balance. The unpaid balance of the Allowed Class 3 Claim together will all accrued and unpaid interest and any other fees assessed to the Allowed Class 3 Claim, will be due and owing on the 36th month following the Effective Date. The Debtor, TCI, and RMR agree that the Class 4 Claim of RMR - Galleria will be allowed as two separate notes to be executed by the Debtor, the first Note being in the principal amount of $1,100,000 and the second Note being in the principal amount of $900,000. The Notes will be non-recourse and accrue interest after the Effective Date at the annual rate of 7% in year one, 7.5% in year two, and 8% in year three, in each case using simple interest. The Debtor will make additional payments of $50,000 each per month on the Effective Date and the first day of the five months following the Effective Date and each payment will be applied to the principal balances as follows: $27,500 to Galleria Note ? Casino and $22,500 to Galleria Note - Stanley. The unpaid balance of the Notes, together with all accrued and unpaid interest and any other fees assessed to the Notes, will be due and owing on the 36th month following the Effective Date. The Debtor, TCI, and West Orient agree that the Class 5 Claim of West Orient - Casino is $156,199.97. On the Effective Date, West Orient will apply the Reserve to the Allowed Class 5 Claim, and the Debtor will satisfy any remaining amounts by six equal payments on the first day of the 7th through 12th months following the Effective Date. The Allowed Class 5 Claim will not accrue interest, fees, or any other amounts. The Debtor, TCI, and West Orient agree that the Class 6 Claim of West Orient - Stanley is $45,840.47. On the Effective Date, West Orient will apply any Reserve remaining after the application to the Allowed Class 5 Claim to the Allowed Class 6 Claim, and the Debtor and Debtor will satisfy any remaining amounts by 6 equal payments on the first day of the 7th through 12th months following the effective Date. The Allowed Class 6 Claim will not accrue interest, fees, or any other amounts. Holders of Allowed Class 7 General Unsecured Claims will be entitled accrue interest from the Petition Date until paid in full at the Interest Rate. Claimants will receive 50% of their Allowed Claim with interest on or before the later of: (a) 30 days following the Effective Date, or (b) 30 days following the entry of a final order allowing such claim. The Claimants will receive the remaining 50% of their allowed claim with interest on the first day of the 6th month following confirmation. Holders of Allowed Class 8 Interests will retain their prepetition interest in the Debtor and will not receive any distributions on account of those Interests until the Debtor has performed its obligations to Classes 1 - 7. A black-lined version of the Fourth Amended Plan, dated Aug. 1, 2013, is available for free at: http://bankrupt.com/misc/tsorrento.doc150.pdf Hudson M. Jobe, Esq., at QUILLING, SELANDER, LOWNDS, WINSLETT & MOSER, P.C., in Dallas, Texas, represents the Debtor. C. Gregory Shamoun, Esq., and Dennis M Holmgren, Esq., at Shamoun & Norman LLP, in Dallas, Texas, represent Transcontinental Realty. About T Sorrento Clark, Nevada-based T Sorrento, Inc., is a wholly owned subsidiary of Transcontinental Realty Investors, Inc., a Nevada corporation. T Sorrento filed for a Chapter 11 petition (Bankr. D. Nev. Case No. 12-13907) in Las Vegas on April 2, 2012. At the behest of RMR Investments, Inc., the Nevada Bankruptcy Court transferred the venue of the case to the Northern District of Texas, Dallas Division, as the Debtor's principal office and principal place of business are located in Dallas and the mailing address for each of the Debtor's officers is also located in Dallas, Texas. The case was transferred to the Northern District of Texas by a June 27, 2012 court order. Dallas Bankruptcy Judge Barbara J. Houser oversees the case. T Sorrento disclosed assets of $17.4 million and debts of $5.4 million in its schedules. The Debtor's Schedule A states it owns six lots (about 30 acres) at "Mira Lago" in Farmers Branch, two lots (24 acres) at Valley Branch Circle in Farmers Branch, 5.7 acres in McKinney and less than an acre in Irving. The total value of the real property is stated as $17,442,754. The Debtor has no personal property. The Debtor disclosed it has secured debt held by two entities totaling $5,121,368. Property taxes owed total $90,000. Six unsecured creditors are owed a total of $235,203. Lender RMR Investments is represented by Mark E. Andrews, Esq., and Stephen K. Lecholop II, Esq., at Cox Smith Matthews Incorporated. TEE INVESTMENT: Sept. 24 Hearing on Motion to Convert Case ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada will convene a hearing on Sept. 24, 2013, at 2 p.m., the hearing to consider creditor WBCMT 2006-C27 Plumas Street LLC's motion to convert the Chapter 11 case of Tee Investment Company to one under Chapter 7 of the Bankruptcy Code. Phillip K. Wang, Esq. -- pwang@duanemorris.com -- at Duane Morris LLP, on behalf of WBCMT 2006-C27, requested that the Court: i) convert the Debtor's case; and ii) renew its previous motion for relief of stay to allow the creditor to exercise any and all of its available right and remedies in and to its collateral which consist of certain real property and improvements commonly known as Lakeridge Apartments West, 6155 Plumas Street, Reno, Nevada and related personal property. According to Mr. Wang, WBCMT 2006-C27 is undersecured because the Debtor owed, as of the Petition Date, $14,242,985 and the fair market value of the property is approximately $10,800,000. About Tee Investment Reno, Nevada-based Tee Investment Company, Limited Partnership, dba Lakeridge Apartments, owns the property known as the Lakeridge East Apartments, 6155 Plums Street, Reno, Nevada. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-50615) on March 1, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. Alan R. Smith, Esq., at the Law Offices of Alan R. Smith, in Reno, Nev., represents the Debtor as counsel. Affiliates Lakeridge Centre Office Complex, LP (Bankr. D. Nev. 10-53612), West Shore Resort Properties III, LLC (Bankr. D. Nev. 10-51101), and West Shore Resort Properties, LLC, and (Bankr. D. Nev. 10-50506) filed separate Chapter 11 petitions. Attorneys at Armstrong Teasdale represents Terrence S. Daly, the court-appointed receiver for Tee Investment Company, Limited Partnership, as counsel. The First Amendment to the Debtor's First Amended Plan of Reorganization provides that the amount of the WBCMT Secured Claim will be the lesser of the value of the Property determined as of the Confirmation Date (the "Value as of Confirmation Date") or the WBCMT Note Balance, less all post-petition pre-confirmation payments made to WBCMT. All existing membership interests are canceled. Upon plan confirmation 100% of the membership interest in the Reorganized Debtor will be issued to Blackwood Canyon, LLC. TM REAL: TD Bank Wants to Continue Collecting Payment of Rents -------------------------------------------------------------- TD Bank, N.A., successor by merger to Commerce Bank/North, asks the U.S. Bankruptcy Court for the Eastern District of New York to enter an order granting relief from the automatic stay in the Chapter 11 case of T.M. Real Estate Holding LLC et al., on a nunc pro tunc basis, authorizing TD Bank to continue to collect payment of rents in the shopping centers owned by each of Richmond Valley Plaza LLC, et al. TD Bank, N.A., in its reply to the Debtors' objection, stated the Debtors cannot adequately protect TD Bank's interest in the rents. Accordingly, TD Bank said it must be authorized to continue to collect and retain the rent nunc pro tunc to the commencement of the cases. The Debtors cannot dispute that as of the Petition Date, the outstanding amount due to TD Bank under the judgment was $6,503,889, with interest accruing thereon at the per diem rate of $2,549. Michael J. Venditto, Esq. -- mvenditto@reedsmith.com -- at Reed Smith LLP represents TD Bank. On Aug. 7, Yann Geron, Esq., at Fox Rothschild LLP, on behalf of T.M. Real Estate Holding LLC, objected to TD Bank's motion to dismiss the case or, in the alternative, for relief from the automatic stay. Mr. Geron asserted that TD Bank's motion lacks merit and is a premature reaction to the Debtor's legitimate effort to reorganize in Chapter 11, and TD Bank's claim is not at risk in the case. About TM Real Estate Holding LLC TM Real Estate Holding LLC filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No. 13-44046) on June 28, 2013. Judge Carla E. Craig presides over the case. The Debtor scheduled assets of $10,900,000 and liabilities of $10,497,264. The petition was signed by John Noce, manager. TOUSA INC: Court Okays Disputed Claims Reserve ---------------------------------------------- BankruptcyData reported that the U.S. Bankruptcy Court approved the modified motion filed by TOUSA and its official committee of unsecured creditors for entry of an order establishing a disputed claims reserve in connection with the Company's Amended Joint Plan of Liquidation. Under the order, the parties are authorized to establish the total disputed claims reserve amount at $35 million in cash on account of allowed administrative claims, allowed priority claims and allowed general unsecured claims. About TOUSA Inc. Headquartered in Hollywood, Florida, TOUSA, Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on Jan. 29, 2008 (Bankr. S.D. Fla. Case No. 08-10928). Richard M. Cieri, Esq., M. Natasha Labovitz, Esq., and Joshua A. Sussberg, Esq., at Kirkland & Ellis LLP, in New York, N.Y.; and Paul S. Singerman, Esq., at Berger Singerman, in Miami, Fla., represent the Debtors in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. Daniel H. Golden, Esq., and Philip C. Dublin, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, N.Y., represent the creditors committee. The unsecured creditors committee initially proposed a chapter 11 liquidating plan for Tousa. However, the committee decided not to pursue approval of its liquidation plan because of a pending appeal of its fraudulent transfer action in the U.S. Court of Appeals for the Eleventh Circuit. In May 2012, the Court of Appeals in Atlanta held that Tousa's bank lenders received fraudulent transfers exceeding $400 million. After mediation before Peter L. Borowitz, Tousa and the unsecured creditors committee, MatlinPatterson Global Advisers and Monarch Alternative Capital, as investment adviser to Monarch Master Funding, collectively reached an agreement in principle on a settlement proposal. The proposal would form the foundation for a joint bankruptcy-exit plan for the Debtors. In May 2013, Tousa and the unsecured creditors committee filed a proposed liquidating Chapter 11 plan. On July 12, 2013, Tousa won court approval of a $67 million settlement with several insurance companies allowing the Debtors to proceed with an Aug. 1 hearing to confirm the plan. The dispute with the insurance companies involved the pre-bankruptcy fraudulent transfers. The insurance companies included Federal Insurance Co., XL Specialty Insurance Co. and Zurich American Insurance Co. According to Bloomberg News, in settlement, the insurance companies will pay $67 million, with $47.9 million going to creditors of the Tousa companies that were forced to take on debt improperly. The first-lien lenders receive $7.66 million, while second-lien lenders take home $11.5 million. Some of the insurance companies also pay $8.27 million of the directors' and officers' defense costs. Bloomberg relates Tousa's Chapter 11 plan has recoveries ranging from 58 percent for senior noteholders to 5 percent for creditors with general unsecured claims. The plan was the result of the decision from the appeals court in May 2012 finding banks received fraudulent transfers exceeding $400 million. The opinion reinstated a ruling by U.S. Bankruptcy Judge John K. Olson which had been set aside on the first appeal in federal district court. The Court confirmed the Plan on August 6, 2013. TRINITY COAL: Files Essar-Sponsored Reorganization Plan ------------------------------------------------------- Trinity Coal Corporation and its debtor affiliates filed with the U.S. Bankruptcy Court for the Eastern District of Kentucky a joint plan of reorganization sponsored by Essar Met Coal Inc. Under the Plan, Essar's unsecured claims will be allowed in the aggregate amount of $133,446,780. In exchange for full and final satisfaction, settlement, release, and compromise of each and every Essar Unsecured Claim, together with the other payments and consideration to be provided by the holders of the Allowed Essar Unsecured Claims or their non-Debtor Affiliate designees, each Holder of Essar Unsecured Claims will receive its Pro Rata share of 100% of the New Common Stock of Reorganized TPC and 100% of the New Common Stock of the Reorganized Deep Water Entities on the Effective Date. General Unsecured Claims, excluding the Essar Unsecured Claims, are impaired. Each Holder of an Allowed General Unsecured Claim will receive a Pro Rata interest in the Trust Assets; provided that each Holder of an Allowed Senior Secured Credit Facility Deficiency Claim agrees to waive the entire amount of the Senior Secured Credit Facility Deficiency Claim on the Effective Date. The Debtors stated that if the Plan is not confirmed with respect to any of the Debtors, the Debtors may revert back to the auction for the sale of any or all of the Debtors' assets and/or risk foreclosure on collateral of various secured parties, including the DIP Lenders. Denham Commodity Partners Fund III LP and Travis Coal Restructured Holdings LLC, objected to the Debtors' motion for approval of procedures governing the solicitation and confirmation of the Joint Plan. With the consent of the objectors, the hearing on the solicitation procedures motion is scheduled for Sept. 19, 2013, at 1:30 p.m. (Eastern Time). Objections must be filed no later than Sept. 12. A full-text copy of the Joint Plan, dated Aug. 15, 2013, is available for free at: http://bankrupt.com/misc/TRINITYCOALds0815.pdf John W. Ames, Esq., C.R. Bowles, Jr., Esq., and Bruce Cryder, Esq., at BINGHAM GREENEBAUM DOLL LLP, in Lexington, Kentucky; and Steven J. Reisman, Esq., L. P. Harrison 3rd, Esq., Jerrold L. Bregman, Esq., and Dienna Ching, Esq., at CURTIS, MALLET-PREVOST, COLT & MOSLE LLP, in New York, represent the Debtors. 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. TRINITY COAL: Committee Files Protective Objection to Any Sale -------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the Chapter 11 cases of Trinity Coal Corporation, et al., filed a protective objection to any sale of assets under Section 363 of the Bankruptcy Code. The Committee also reserves all of its rights to oppose the Debtors' motion for authority to sell their assets. The Committee is represented by Edward J. Green, Esq., and Geoffrey S. Goodman, Esq., at Foley & Lardner LLP, in Chicago, Illinois, and Matthew D. Lee, Esq., at Foley & Lardner LLP, in Madison, Wisconsin. 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. TRINITY COAL: Can Borrow Additional $7MM in Revolving Loans ----------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Kentucky modified the Final DIP Order entered April 8, 2013, to extend through and including Nov. 29, 2013, the maturity date of Trinity Coal Corporation, et al.'s DIP Credit Agreement and through and including Nov. 22 the expiry dates of the Roll-Up Letters of Credit. The Debtors are also authorized to borrow an additional $7 million from the Revolving DIP Lenders and the Revolving Commitment under the DIP Credit Agreement is increased to $22 million. According to the Debtors, the extension of the Maturity Date of the DIP Credit Agreement and the $7 million increase in the amount of the Revolving Commitment is the result of good faith and arms'- length negotiations between the Debtors, Essar Global Fund Limited, and the DIP Lenders, and provides the financial flexibility needed to continue good-faith negotiations towards confirmation of the proposed Joint Plan of Reorganization. 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. TRINSEO SA: Moody's Lowers Corp. Family Rating to 'B2' ------------------------------------------------------ Moody's Investors Service downgraded the Corporate Family Rating of Trinseo S.A and the rating on its subsidiary Trinseo Materials Operating S.C.A.'s $1.325 billion senior secured notes due 2019 to B2 from B1 due to volatility in its financial performance and weak credit metrics over the past year. Moody's also assigned a Speculative Grade Liquidity Rating of SGL-2 to Trinseo. The outlook on both entities is stable. "Weak end market demand and exposure to volatile commodity prices has created more volatility in financial performance than was originally incorporated into the B1 CFR," said John Rogers, Senior Vice President at Moody's. "The company is much better positioned at the B2 rating as performance in its two stronger businesses, latex and rubber, is likely to remain below previously expected levels." Rating downgraded: Trinseo S.A. Corporate Family Rating to B2 from B1 Probability of Default Rating to B2-PD from B1-PD Trinseo Materials Operating S.C.A. $1.325 billion guaranteed senior secured notes due 2019 to B2 (LGD4, 53%) from B1 (LGD4, 55%) Rating assigned: Speculative Grade Liquidity Rating assigned at SGL-2 Ratings Rationale: Trinseo's B2 CFR is tempered by its narrow portfolio of commodity and quasi-commodity products, weak credit metrics driven by weaker end market demand, exposure to volatile feedstock prices and a limited amount of cash equity. The company's credit profile is supported by its size in terms of revenue, leading market positions in three of its four product lines (polycarbonates is the exception), relatively stable volume demand in its emulsion polymers and rubber businesses, an experienced management team and the success in lowering fixed costs since the acquisition by Bain in 2010. June 2013 LTM credit metrics remain weak with adjusted leverage (including Moody's Standard Adjustments) of 7x. The outlook is stable and assumes that financial metrics improve over the next four quarters reducing leverage to below 6.0x and Retained Cash Flow/Debt to over 7%. The ratings have limited upside given the volatile earnings profile of the company and limited debt reduction to date, but could be raised if Debt/EBITDA falls below 5.0x and is expected to remain at that level for a sustained period. The ratings could be downgraded further if Debt/EBITDA was to remain above 7.0x and the company was to begin relying on its revolver as its primary source of liquidity. The SGL-2 rating reflects good liquidity primarily supported by cash balances of roughly $170 million (as of June 30, 2013) and the expectation for positive free cash flow in the second half of 2013. The company also has access to a $200 million A/R securitization that had nearly $150 million outstanding at the end of the second quarter and an undrawn $300 million revolver. However, if borrowings exceed $75 million at the end of the quarter, the revolver has a leverage covenant, which is set at 5.0x for the remainder of 2013 and steps down to 4.5x in 2014. If financial performance does not improve, this covenant would limit access to the revolver at the end of each quarter. The principal methodology used in this rating was the Global Chemical Industry Methodology published in December 2009. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Trinseo S.A. is the world's largest producer of styrene butadiene (SB) latex, the largest European producer of SSBR rubber (solution styrene butadiene rubber), the third largest global producer of polystyrene and a leading producer of polycarbonate resins and blends. Trinseo had revenues of roughly $5.4 billion for the last four quarters ending June 30, 2013. Trinseo is owned by an affiliate of Bain Capital and was acquired from The Dow Chemical Company in 2010. TRITON AVIATION: S&P Puts 'B-' Rating on CreditWatch Negative ------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B- (sf)' rating on Triton Aviation Finance's class A-1 notes on CreditWatch with negative implications. The notes are collateralized primarily by the lease revenue and sales proceeds from a portfolio of commercial aircraft. The CreditWatch placements reflects S&P's view of the aircraft portfolio's diminished lease-rental-generating ability, the ongoing higher-than-expected value decline of the relatively older aircraft in the portfolio, and the number of lessees in arrears. As of Aug. 15, 2013, the aircraft portfolio consisted of 21 operating aircraft and two disassembled aircraft. The appraised base value of the 21 operating aircraft declined by approximately 15% in 2012. The fleet, with a significant concentration of aircraft manufactured in the 1980s and early 1990s, has a weighted average age of approximately 23 years. The older aircraft has become less favorable and thus less able to generate future lease revenue. As of Aug. 15, 2013, there were eight operating aircraft off lease,, eight lessees (on 10 aircraft leases) in arrears, and no principal payment on the class A-1 notes. S&P will resolve its CreditWatch placement after it completes a comprehensive review of the transaction. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com TRIUS THERAPEUTICS: Cubist to Buy Trius at $13.50 Apiece -------------------------------------------------------- Cubist Pharmaceuticals, Inc., has commenced its tender offer for all outstanding shares of the common stock of Trius Therapeutics for $13.50 per share in cash, plus one Contingent Value Right, entitling the holder to receive an additional cash payment of up to $2.00 for each share they tender if certain sales milestones are achieved. The tender offer is being made by BRGO Corporation, a wholly-owned subsidiary of Cubist, pursuant to the previously announced Agreement and Plan of Merger, dated July 30, 2013, for Cubist to acquire Trius. The tender offer and merger are subject to the satisfaction or waiver of customary conditions, including, among others, that the number of shares validly tendered and not validly withdrawn equals at least a majority of the outstanding shares on a fully-diluted basis and that any applicable waiting periods under the Hart- Scott-Rodino Antitrust Improvements Act of 1976, as amended, have expired or otherwise been terminated. Cubist filed with the U.S. Securities and Exchange Commission (SEC) a Tender Offer Statement on Schedule TO, setting forth in detail the terms of the tender offer. Trius also filed with the SEC a Solicitation/Recommendation Statement on Schedule 14D-9, setting forth in detail, among other things, the unanimous recommendation of Trius' Board of Directors that Trius' stockholders accept the tender offer and tender their shares in the offer. Copies of the Offer to Purchase, Letter of Transmittal and other materials related to the tender offer are available free of charge from MacKenzie Partners, Inc., the information agent for the tender offer, at (212) 929-5500 for banks and brokers or toll-free at (800) 322-2885 for stockholders and all others. Computershare Trust Company, N.A., is acting as depositary for the tender offer. The tender offer and any withdrawal rights to which Trius' stockholders may be entitled expire at 9:00 a.m., Eastern Time, on Sept. 11, 2013, unless extended or earlier terminated. A full-text copy of the Schedule TO is available for free at: http://is.gd/2WecBm About Trius Therapeutics San Diego, Calif.-based Trius Therapeutics, Inc. (Nasdaq: TSRX) -- http://www.triusrx.com/-- is a biopharmaceutical company focused on the discovery, development and commercialization of innovative antibiotics for serious, life-threatening infections. The Company's first product candidate, torezolid phosphate, is an IV and orally administered second generation oxazolidinone being developed for the treatment of serious gram-positive infections, including those caused by MRSA. In addition to the company's torezolid phosphate clinical program, it is currently conducting two preclinical programs using its proprietary discovery platform to develop antibiotics to treat infections caused by gram-negative bacteria. Trius Therapeutics incurred a net loss of $53.92 million in 2012, a net loss of $18.25 million in 2011 and a $23.86 million net loss in 2010. As of June 30, 2013, the Company had $74.05 million in total assets, $19.37 million in total liabilities and $54.68 million in total stockholders' equity. VAIL LAKE: Sec. 341 Creditors' Meeting Set for Aug. 27 ------------------------------------------------------ The U.S. Trustee will convene a meeting of creditors pursuant to 11 U.S.C. 341(a) in the Chapter 11 case of Vail Lake Rancho California, LLC et al., on Aug. 27, 2012, at 1:00 p.m. The meeting will be held at 402 W. Broadway, Emerald Plaza Building, Suite 660 (B), Hearing Room B, San Diego, CA 92101. Vail Lake Rancho California, LLC and its affiliates own the California campground Vail Lake Resort. Vail Lake is a large reservoir in western Riverside County, California, located on Temecula Creek in the Santa Margarita River watershed, approximately 15 miles east of Temecula, California. Properties cover approximately 9,000 acres and have an estimated water storage capacity of approximately 51,000 acre-feet. On Dec. 26, 2012, creditors of Vail Lake filed an involuntary Chapter 11 petition (Bankr. S.D. Cal. Case No. 12-16684) for Vail Lake. In a filing on June 6, 2013, the Debtor said it consents to the entry of an order for relief and does not contest the involuntary Chapter 11 petition. On June 5, 2013, the company sent 5 related entities -- Vail Lake USA, LLC ("VLU"), Vail Lake Village & Resort, LLC ("VLRC"), Vail Lake Groves, LLC, Agua Tibia Ranch, LLC, and Outdoor Recreational Management, LLC -- to Chapter 11 bankruptcy. The new debtors have sought and obtained an order for joint administration of their Chapter 11 cases with Vail Lake Rancho (Case No. 12-16684). The Debtors are represented by attorneys at Cooley LLP and Phillips, Haskett & Ingwalson, A.P.C. Thomas C. Hebrank at E3 Realty Advisors, Inc., serves as the Debtors' chief restructuring officer. The Debtors' consolidated assets, as of May 31, 2013, total approximately $291,016,000 and liabilities total $52,796,846. VELATEL GLOBAL: Delays Form 10-Q for Second Quarter --------------------------------------------------- VelaTel Global Communications, Inc., was unable to file its Form 10-Q for the period ended June 30, 2013, in a timely manner because the Company was unable to complete its financial statements. About VelaTel Global VelaTel acquires spectrum assets through acquisition or joint venture relationships, and provides capital, engineering, architectural and construction services related to the build-out of wireless broadband telecommunications networks, which it then operates by offering services attractive to residential, enterprise and government subscribers. VelaTel currently focuses on emerging markets where internet penetration rate is low relative to the capacity of incumbent operators to provide comparable cutting edge services, or where the entry cost to acquire spectrum is low relative to projected subscribers. VelaTel currently has project operations in People's Republic of China, Croatia, Montenegro and Peru. Additional target markets include countries in Latin America, the Caribbean, Southeast Asia and Eastern Europe. VelaTel's administrative headquarters are in Carlsbad, California. See http://www.velatel.com/ Velatel Global incurred a net loss of $45.60 million on $1.87 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $21.79 million on $0 of revenue for the year ended Dec. 31, 2011. As of March 31, 2013, the Company had $15.77 million in total assets, $62.25 million in total liabilities and a $46.48 million total deficiency. Kabani & Company, Inc., in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company's viability is dependent upon its ability to obtain future financing and the success of its future operations. The Company has incurred a net loss of $45,601,292 for the year ended Dec. 31, 2012, cumulative losses of $298,347,524 since inception, a negative working capital of $34,972,850 and a stockholders' deficiency of $36,566,868. These factors raise substantial doubt as to the Company's ability to continue as a going concern. VERSO PAPER: Addresses Additional NYSE Continued Listing Standard ----------------------------------------------------------------- Verso Paper Corp. on Aug. 20 disclosed that the New York Stock Exchange has notified Verso that it has fallen below the NYSE's continued listing standard requiring that the average closing price of Verso's common stock be at least $1.00 over a consecutive 30 trading-day period. As of August 14, 2013, the date of the NYSE notice, the average closing price of Verso's common stock over the past 30 trading days was $0.97 per share. To maintain its NYSE listing, Verso has until February 14, 2014, which is six months from the date of the NYSE notice, to bring the closing share price and the average closing share price of its common stock back above $1.00. Verso has notified the NYSE that it intends to cure the share price deficiency. During the cure period, Verso's common stock will continue to be traded on the NYSE, subject to Verso's compliance with other NYSE continued listing requirements. Separately, and as previously disclosed, Verso has appealed the NYSE staff's determination to delist Verso's common stock due to Verso's failure to satisfy the NYSE's continued listing standard requiring that Verso have an average market capitalization of at least $75 million over a consecutive 30 trading-day period. The review committee of the NYSE's board of directors currently is scheduled to hear Verso's appeal on September 10, 2013. About Verso Based in Memphis, Tennessee, Verso Paper Corp. -- http://www.versopaper.com-- is a North American producer of coated papers, including coated groundwood and coated freesheet, and specialty paper products. Verso's paper products are used primarily in media and marketing applications, including magazines, catalogs and commercial printing applications such as high-end advertising brochures, annual reports and direct-mail advertising. VIDEOTRON LTEE: DBRS Confirms 'BB(high)' Issuer Rating ------------------------------------------------------ On October 3, 2012, DBRS confirmed Videotron Ltee's Issuer Rating at BB (high); its Secured Bank Debt rating at BBB (low), with an RR1 recovery rating; and its Senior Unsecured Notes at BB (high), with an RR2 recovery rating; all trends remain Stable. The confirmation reflected Videotron's steadily growing subscriber base and strong incumbent position in Quebec. Since DBRS's latest report on Videotron, Industry Canada has restated its intention of establishing four wireless carriers in each region of the country. DBRS notes that a viable fourth competitor with strong financial backing could cause the competitive environment to intensify. Although the Company's wireless operations represent an important growth area, DBRS notes that, currently, these services contribute only nominally to operating income. Furthermore, a strong brand and proven customer loyalty may help prevent wireless subscriber losses from affecting wireline market share. As the Company's ratings are currently well placed within their categories, a more competitive environment would not likely result in a negative rating action for Videotron. The ratings continue to be supported by Videotron's strong market position in Quebec and its ability to grow and bundle television, Internet and wireless services. DBRS's ratings also take into account the intensifying competition in the telecommunications industry and the constant innovation and capital intensity required to maintain market positioning. DBRS will continue to carefully monitor the operating performance and financial management of Videotron and parent Quebecor Media Inc., particularly in the context of an evolving competitive environment. VIRTUALSCOPICS INC: Expects to Receive NASDAQ Delisting Notice -------------------------------------------------------------- VirtualScopics, Inc. on Aug. 21 disclosed that it has filed a Certificate of Amendment to its Certificate of Incorporation to effect a 1-for-10 reverse stock split of its common stock, effective as of August 21, 2013, at 5:00 p.m. Eastern Time. A Certificate of Amendment to effect a reverse stock split was approved by the Company's stockholders at its Annual Meeting of Stockholders held on August 13, 2013. The Company's stockholders granted the Board authority to effectuate a reverse stock split at a ratio of between 1-for-2 and 1-for-10, and the 1-for-10 ratio was subsequently approved by the Company's Board of Directors. The shares of the Company's common stock will continue to trade under the symbol "VSCP" on a split-adjusted basis on the NASDAQ Capital Market on August 22, 2013. A new CUSIP number has been assigned to the Company's common stock as a result of the reverse stock split. As a result of the reverse stock split, each ten shares of the Company's outstanding common stock will automatically be combined into one share, without any change to the par value per share. In addition, the reverse stock split will effect a proportionate adjustment to the per share exercise price and number of shares issuable upon the exercise of outstanding warrants and stock options and the vesting of restricted stock awards. As a result of the reverse stock split, the Company expects its stock price to increase proportionally. The reverse stock split is intended to help the Company regain compliance with the minimum $1 bid price per share requirement for continued listing on the NASDAQ Capital Market. The Company does not believe that it will regain compliance by the August 26, 2013, deadline set by NASDAQ, and, as a result, the Company might receive a delisting notice from NASDAQ. The Company plans to appeal any such notice, which would stay the delisting pending the outcome of the appeal. The Company also plans to continue working with NASDAQ during that time to regain compliance. Continental Stock Transfer & Trust will act as the Company's Exchange Agent in connection with the reverse stock split. Stockholders will receive the notices, forms and instructions regarding the exchange of their pre-split shares for post-split shares from the Exchange Agent or their broker. No fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise be entitled to receive a fractional share will receive cash in lieu of the fractional share. Additional information regarding the reverse stock split can be found in the Company's definitive proxy statement filed with the Securities and Exchange Commission on July 2, 2013. About VirtualScopics, Inc. VirtualScopics, Inc. -- http://www.virtualscopics.com-- is a provider of imaging solutions to accelerate drug and medical device development. VirtualScopics has developed a robust software platform for analysis and modeling of both structural and functional medical images. In combination with VirtualScopics' industry-leading experience and expertise in advanced imaging biomarker measurement, this platform provides a uniquely clear window into the biological activity of drugs and devices in clinical trial patients, allowing sponsors to make better decisions faster. press release Aug. 21, 2013, 6:00 p.m. EDT BASi Files Form 8K Notice of Non-Compliance with a Continued Listing Rule Non-Reliance on Previously Issued Financial Statements WEST LAFAYETTE, Ind., Aug 21, 2013 (BUSINESS WIRE) -- The Company is evaluating the debt covenants at each reporting period and expects to be in breach of the tangible net worth ratios in fiscal 2013. The Company is communicating with its lenders to obtain waivers for the applicable periods, if necessary. WOUND MANAGEMENT: Amends Second Quarter Form 10-Q ------------------------------------------------- Wound Management Technologies, Inc., filed an amendment to its quarterly report on Form 10-Q for the period ended June 30, 2013, as filed with the Securities and Exchange Commission on Aug. 12, 2013, for the sole purpose of furnishing Exhibit 101 to the Form 10-Q which contains the XBRL (eXtensible Business Reporting Language) Interactive Data File for the financial statements and notes included in Part 1, Item 1 of the Form 10-Q. As permitted by rule 405(a)(2)(ii) of Regulation S-T, Exhibit 101 was required to be furnished by amendment within 30 days of the original filing date of the Form 10-Q. No changes have been made to the Form 10-Q. A copy of the Amended Form 10-Q is available for free at: http://is.gd/hSVSTr 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. 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 March 31, 2013, showed $1.61 million in total assets, $6.09 million in total liabilities and a $4.47 million total stockholders' deficit. 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. * Keehn Attys Must Face Malpractice Suit, Calif. Court Says ----------------------------------------------------------- Law360 reported that a California appeals court ruled that a lower court improperly found in favor of Keehn & Associates bankruptcy attorneys in a professional negligence suit over their representation during securities arbitrations, finding that the firm's evidence didn't meet its threshold summary judgment burden. According to the report, Plaintiff Mark Augusta sued L. Scott Keehn and Keehn & Associates for professional negligence, breach of fiduciary duty and fraud, alleging their negligence caused him to lose valuable claims against other attorneys who had represented him in securities arbitrations. * McBride & Collier Ducks Class Cert. Over Fees in Ch. 7 -------------------------------------------------------- Law360 reported that a Louisiana federal judge refused to certify a proposed class action brought against the law firm McBride & Collier by an ex-client who alleged the firm violated federal bankruptcy laws addressing fee collection and client contracts in Louisiana-based Chapter 7 proceedings. According to the report, Dorothy Marie Wheeler of Shreveport, La., sought certification of two overlapping classes, alleging that the firm illegally collected prepetition debts after the filing of bankruptcy petitions and failed to provide clients with proper contracts before doing so. The case is Wheeler v. Collier et al, Case No. 5:11-cv-01670 (W.D. La.) before Judge S. Maurice Hicks. * Morgan Drexen Responds to CFPB Lawsuit Over Data Mining --------------------------------------------------------- Morgan Drexen issued a response to a lawsuit filed in California by the Consumer Financial Protection Bureau on Aug. 20, a week before the agency is required to answer a Washington, DC court's scheduling order to prove its constitutionality. Morgan Drexen joined Connecticut attorney Kimberly Pisinski in a lawsuit challenging the constitutionality of the agency in its attempt to data mine the communications of bankruptcy clients of Ms. Pisinksi and other attorneys Morgan Drexen supports. "There are two glaring misrepresentations in the CFPB press release -- one, that Morgan Drexen is a support services company NOT a debt-settlement company; and two, that CFPB's constitutionality as an agency is in question now -- because of a lawsuit Morgan Drexen filed last month," said Morgan Drexen CEO Walter Ledda. "Instead of proceeding in an orderly manner and in accordance with the schedule ordered by the federal court in Washington, DC, the CFPB has chosen to engage in procedural gamesmanship by opening a new front to the lawsuit 3000 miles away in Los Angeles," said Randall K. Miller, Venable partner and counsel for Morgan Drexen in a lawsuit filed in federal district court in Washington, D.C. That lawsuit against the CFPB was filed on July 22. Mr. Miller points out that Morgan Drexen does not charge any fees to consumers. The attorneys who hire Morgan Drexen charge fees for their work, and is not out of line for their industry. The attorneys who provide debt relief -- even though they're not obligated to -- do so in compliance with the Telemarking Sales Rule and those attorneys who provide bankruptcy services do so in compliance with the US Bankruptcy Code, Mr. Miller said. The propriety of Morgan Drexen support services model has been evaluated and confirmed by at least 16 jurisdictions across the country, including state bars and district courts. "It is interesting to point out that the CFPB didn't mention attorneys in their press release, even though that's who Morgan Drexen works for," said Mr. Ledda. "We work at the direction of the attorneys and pursuant to the Rules of Professional Conduct in the attorneys' respective states," he said. The company sued the CFPB for its attempts to data mine personal, protected consumer information provided solely to their attorneys that is not of the public record -- including attorney communications, the nature of the client's engagement with their attorney, attorney notes and other, non-public information. About Morgan Drexen Morgan Drexen -- http://www.morgandrexen.com-- provides integrated software systems and administrative support services to businesses and industries nationwide. Morgan Drexen's proprietary MDIS software improves workflow through the use of automated document management. In addition to computer technology, Morgan Drexen provides businesses with marketing, marketing support, call centers, outsourced litigation support, databases, work-product retrieval systems and cloud-computing platforms facilitated by the company's outsourced support staff * New York Attorney General Files Lawsuit Against Payday Lenders ---------------------------------------------------------------- Andrew R. Johnson, Reed Albergotti and Alan Zibel, writing for The Wall Street Journal, reported that New York Attorney General Eric Schneiderman sued an online lender with ties to an American Indian tribe and its affiliates, alleging they charged interest rates to low-income New Yorkers that were more than 10 times higher than state law allows. According to the report, Mr. Schneiderman accused Western Sky Financial LLC and its affiliates, WS Funding LLC and CashCall Inc., of acting "in concert" in an alleged scheme to make loans at more than 355% annual interest. The lawsuit poses a key test for regulators who have begun cracking down on online lenders, including those affiliated with Indian tribes, the report said. Government officials say the lenders are violating state interest-rate caps and consumer- protection laws, but tribes say they are immune because they operate as sovereign governments. The report related that a group of 16 tribes that offer short-term loans over the Internet sent a letter to Benjamin Lawsky, New York's top banking regulator, saying they wouldn't comply with cease-and-desist orders he issued last week. Tribes also are challenging the authority of the Consumer Financial Protection Bureau, which has broad powers to police online lending, according to people familiar with the matter, the report further related. The CFPB sent civil subpoenas in mid-2012 to several tribal lenders seeking information about their operations, but the tribes haven't complied, arguing the CFPB doesn't have the authority to demand the information from another government, these people said. * Regulator Subpoenas Banks Over Long Warehouse Queues ------------------------------------------------------ Silla Brush and Dawn Kopecki, writing for Bloomberg News, reported that the top U.S. derivatives regulator subpoenaed Goldman Sachs Group Inc. and JPMorgan Chase & Co. for documents relating to their warehouses for aluminum and other metals, according to two people with knowledge of the probe. The Commodity Futures Trading Commission has requested documents dating to the start of 2010 about the banks' commodity warehouses, according to the people, who asked not to be named because the subpoenas are private, the report related. Glencore Xstrata Plc, which owns warehousing business Pacorini, also received a subpoena, another person said. MillerCoors LLC, Encore Wire Corp. and other metal users have complained about long queues and artificially high prices at the warehouses, particularly for copper and aluminum, the report added. "We're a market regulator overseeing the commodity futures, swaps markets and have clear authority to police markets for fraud, manipulation and other abuses," CFTC Chairman Gary Gensler said in response to questions about warehousing at a Senate Banking Committee hearing last month, the report further related. Dennis Holden, a CFTC spokesman, declined to comment on the subpoenas, the report said. * SAC Allowed by Federal Judge to Keep Operating ------------------------------------------------ Patricia Hurtado, writing for Bloomberg News, reported that SAC Capital Advisors LP, which is facing federal insider-trading charges and a money-laundering lawsuit, was granted court approval to continue operating until the cases are resolved. According to the report, U.S. District Judge Richard Sullivan in Manhattan, who's presiding over the money-laundering case, on Aug. 9 signed an order to protect the Stamford, Connecticut-based fund's legitimate operations from being impeded by the government while the case is pending. The indictment of SAC, the New York hedge fund owned by Steven A. Cohen, and the related laundering case were announced July 25 by Manhattan U.S. Attorney Preet Bharara, who called SAC "a veritable magnet for market cheaters," the report related. Bharara said SAC reaped hundreds of millions of dollars in illicit profits through separate insider-trading schemes by at least eight former SAC fund managers and analysts. "By entering a restraining order, the court can preserve the status quo pending the jury's verdict and the outcome of any proportionality hearing," according to the order jointly submitted by prosecutors and SAC, the report further related. "Here the government requests a protective order that imposes limited measures designed to preserve the availability of the defendant property for forfeiture." The cases are U.S. v. SAC Capital Advisors LP, 13-cr-00541; U.S. v. SAC Capital Advisors LP 13-cv-05182, U.S. District Court, Southern District of New York (Manhattan). * U.S. Agrees Not to Prosecute "London Whale" --------------------------------------------- Dan Fitzpatrick, Devlin Barrett and Gregory Zuckerman, writing for The Wall Street Journal, reported that the J.P. Morgan Chase & Co. trader known as the "London whale" has reached an agreement with federal authorities to avoid criminal prosecution over a $6 billion trading loss, but two former colleagues are expected to be charged, according to people close to the case. The report related that prosecutors are expected to charge Javier Martin-Artajo, a Spaniard who led the team that made the disastrous trades, and Julien Grout, a Frenchman responsible for recording and distributing daily values on the group's positions. They don't, however, plan to bring charges against Bruno Iksil, who made the wagers that earned him the nickname, according to a person close to the situation. According to the report, the developments mark the first move by prosecutors trying to uncover who was responsible for the trading fiasco in a London outpost of the bank's chief investment office, and whether any wrongdoing was involved. The decision not to prosecute Mr. Iksil suggests the former trader has emerged as an important witness. J.P. Morgan has been arguing that a small group of traders was largely responsible for the mess, which generated big trading losses early in 2012, the report said. It isn't clear whether prosecutors expect to bring charges against others, or have concluded that more-senior executives did nothing wrong. A lawyer representing Mr. Martin-Artajo, who was Mr. Iksil's direct boss, said in a statement that his client is confident that he will be exonerated once a "complete and fair reconstruction of these complex events is completed," the report further related. * U.S. Arrests Seven in $140 Million Penny Stock Fraud Case ----------------------------------------------------------- Christie Smythe and Patricia Hurtado, writing for Bloomberg News, reported that seven people accused of taking part in a $140 million international penny stock fraud that U.S. prosecutors say is one of the largest in history were arrested. According to the report, federal agents arrested six individuals in the U.S. accused of participating in a scheme to inflate the values of at least a dozen worthless stocks and market them to investors, Brooklyn U.S. Attorney Loretta E. Lynch said. A seventh defendant was arrested in Canada, she said. The stocks were sold to victims in as many as 35 countries, prosecutors said, the report related. Some victims were swindled a second time through a separate scheme in which investors were told they would pay an "advance fee" to recoup their losses, according to prosecutors. "The defendants used our securities markets as a platform from which to run elaborate fraudulent schemes to victimize unsuspecting investors across the globe," Lynch said in a statement, the report cited. "Where others saw citizens of the world, the defendants saw a pool of potential marks." As many as nine individuals were involved in the conspiracy, according to a 24-count indictment filed Aug. 7, the report said. Two of the defendants, Canadian citizens Gregory Curry and Sandy Winick, who prosecutors said orchestrated the scheme, are still at large, said Zugiel Soto, a spokeswoman for Lynch. The criminal case is U.S. v. Winick, 13-cr-00452, U.S. District Court, Eastern District of New York (Brooklyn). * SEC Charges Former Oppenheimer Manager with Misleading Investors ------------------------------------------------------------------ Kaitlyn Kiernan, writing for The Wall Street Journal, reported that U.S. regulators filed civil administrative charges against former Oppenheimer Holdings Inc. fund manager Brian Williamson, accusing him of misleading investors by inflating the value of certain holdings. According to the report, the Securities and Exchange Commission alleges Mr. Williamson, who used to run Oppenheimer Global Resource Private Equity Fund LP, "made material false and misleading statements and omissions to investors and prospective investors concerning the valuation" of his fund beginning in September 2009. The SEC valuation probe was first reported by The Wall Street Journal last year. Mr. Williamson denies wrongdoing, the report said. "We are deeply disappointed with the SEC's decision to bring an enforcement action in this matter," Mr. Williamson's lawyers, Andrew J. Levander and Cheryl A. Krause from Dechert LLP, wrote in a statement, the report related. "Mr. Williamson will vigorously defend against these charges and looks forward to vindicating his good name and reputation in the industry." The SEC is seeking a repayment of any ill-gotten gains and civil penalties for violation of antifraud provisions of various securities laws, the report further related. The administrative proceeding will be heard within 30 to 60 days by an SEC administrative law judge. * Accounting Regulator Proposes In-Depth Reports From Auditors -------------------------------------------------------------- Tracy Alloway, writing for The Financial Times, reported that auditors will have to provide much more detailed information when signing off on companies' financial statements under a controversial proposal put forward by a US accounting watchdog, partly aimed at preventing future accounting scandals. The new requirements would be the first overhaul of the so-called standard "auditor's report" since the 1940s, according to the Public Company Accounting Oversight Board, which voted unanimously in favour of the proposal, the report said. For more than 70 years the auditor's report has consisted of a boilerplate "pass or fail" statement, with auditors either choosing to sign off on a company's accounts or not, the report related. Under the PCAOB proposal, accounting firms will have to disclose to investors the most difficult and subjective judgments they make when performing their audits. According to the report, the move follows similar efforts by UK and international accounting regulators, aimed at breaking away from the "pass or fail" model. However, the PCAOB's proposal could have a far-reaching impact since any company listed on a US exchange will be affected, accounting experts say. "I think of it as telling investors what kept the auditor up at night," Jay Hanson, PCAOB board member, told the newspaper. "They are a window into the audit, intended to provide more information about the difficulty faced by auditors in connection with providing assurance on certain important and complex aspects of the company's financial statements or internal controls." * Moody's to Revise US State Outlook to Stable on Better Economy ---------------------------------------------------------------- Moody's Investors Service has revised its outlook for US states to stable from negative, as the slowly improving US economy continues supporting growth in state revenues and reserves. Moody's also acknowledges the economic recovery has been uneven, one reason that the local government outlook remains negative. "US State Sector Outlook Revised to Stable" explains the outlook change in detail, while "Why US Local Governments Still Have a Negative Outlook Despite Stabilization at the State Level" discusses the continuing negative outlook for the local governments. At the state level, the recovery has stabilized key indicators of credit quality, says Moody's. Also, federal cuts have become less likely to undermine continued growth. Moody's outlook for the states was negative for five years. Credit quality among states remains extremely high, however, with 30 of the 50 states having either Aaa or Aa1 ratings, the two highest possible ratings. "Improving labor and housing markets have boosted consumer confidence, and strong stock market performance has further improved state revenues," says Moody's Baye Larsen, Vice President and lead author of the state outlook report. "Additionally, now that the scope of federal cuts is better understood, there is less uncertainty regarding the pace of continued economic recovery." Despite a slow start, states continued to experience revenue growth in fiscal 2013, says Moody's, with many states recording better-than expected results. States have also been boosting reserves. Median reserve levels grew both in fiscal 2012 and fiscal 2013 and are now comfortably above the low level they reached in fiscal 2010, although still well below their pre-recession peaks, says Moody's. There are several risks to the stable outlook, says Moody's. One is the potential for federal deficit reduction, especially cutbacks in government employment and procurement, to create drag on the economy. Another major risk is budgetary pressure from pension contributions. Moody's also notes employment levels are still below their pre- recession peak and regional divides in economic growth across the US are delaying full fiscal recovery in some states. The unevenness of the economic recovery is a main reason that Moody's outlook for the local governments remains negative. Some local governments continue to suffer from depopulation, deindustrialization, and a weak housing recovery, says Moody's. Another reason is local governments fund most of their budgets with property taxes. Even as many housing markets recover, there is a delay before growth in market value translates into higher assessed values and increases in property taxes. Other important revenue streams for local governments, such as state aid and sales taxes, have not recovered to the same extent as income or capital gains taxes have. The latter two are major sources of revenue for states. The outlook captures Moody's expectations for the fundamental credit conditions in the sector over the next 12 to 18 months. * Moody's Notes Slight Rise in Liquidity-Stress Index as of July ---------------------------------------------------------------- Moody's Liquidity-Stress Index (LSI) ticked up to 3.6% as of mid- August from 3.4% at the end of July, but remains near its record low of 2.8%, Moody's Investors Service says in the latest edition of SGL Monitor. The LSI remains comfortably below its 7.2% long- term average, with continued benign readings indicating that few US speculative-grade, non-financial companies are experiencing liquidity problems. The LSI falls when corporate liquidity appears to improve and rises when it appears to weaken. "Market appetite for high-yield debt has returned following the sharp decline in issuance in June, which is a positive development for corporate liquidity," says Senior Vice President, John Puchalla. "Companies should find the markets willing to accommodate debt issuance that can be used to push out maturities, shore up balance sheets and extend headroom under financial maintenance covenants." And while SGL rating downgrades have outnumbered upgrades in most months over the past two years, the opposite was true in the first half of August, Puchalla says, when there were six upgrades and two downgrades. The downgrade of Allied Nevada Gold was the only rating action involving Moody's weakest liquidity rating, SGL-4, and accounts for the slight increase in the LSI so far this month. Moody's Covenant-Stress Index (MCSI) fell to 2.1% in July from 2.2% in June, also remaining near its record low of 1.7%. The index measures the extent to which speculative-grade companies are at risk of violating their debt covenants, with a higher reading indicating a higher risk of violations. "Most companies have a comfortable cushion under their financial maintenance covenants, with the low MCSI reading signaling only a small risk of covenant violations over the next 12-15 months," Puchalla says. Just 15 companies had Moody's lowest score on the covenant component of their overall score in July, compared with 16 the prior month, which along with the removal of three companies from the index accounted for the latest downtick. * Rise in U.S. Retail Sales Points to Pickup in Spending -------------------------------------------------------- Lorraine Woellert, writing for Bloomberg News, reported that retail sales rose in July for a fourth consecutive month, showing American households are regaining momentum as employment climbs. According to the report, the 0.2 percent increase in purchases followed a 0.6 percent June gain that was larger than previously reported, Commerce Department figures showed in Washington. The numbers in the report that feed into gross domestic product climbed by the most this year, prompting some economists to boost growth estimates. More jobs and rising household wealth tied to higher home values and stock prices are boosting confidence and triggering improving sales at companies such as Michael Kors Holdings Ltd., the report related. A pickup in consumer spending, which accounts for about 70 percent of the economy, would help counter the fiscal headwinds of government cutbacks that have held back growth. "We're seeing sales pick up in multiple categories -- that's a promising sign that consumer spending might be a little bit stronger in the third quarter," Michael Brown, an economist with Wells Fargo Securities LLC in Charlotte, North Carolina, told the news agency. "We've seen wage and salary growth continue to expand with the pace of employment. That's helped support some additional consumer activity." Wells Fargo is the top forecaster of retail sales, according to data collected by Bloomberg. * National Credit Default Rates Marginally Increased in July ------------------------------------------------------------ Data through July 2013, released on Aug. 20 by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, showed increase in national default rates during the month. The national composite was 1.35% in July, up from 1.34% in June. The first mortgage was 1.25% in July, up from 1.23% posted last month. The second mortgage remained flat since last month at its historic low of 0.54%. The auto loan default rate posted 1.03% in July, up from a 1.00% June level. The bank card rate hit a new low of 3.22% in July; it was 3.41% in June. "Consumer credit quality remains healthy", says David M. Blitzer, Managing Director and Chairman of the Index Committee for S&P Dow Jones Indices. "The first mortgage was 1.25% in July, only two basis points up from its recent low posted last month. Across all other categories default rates remain at or marginally above their historic lows. The second mortgage default rate remained flat at a new low of 0.54% reached last month. Bank card default rate hit a new low of 3.22%, 19 basis points down from June and 41 basis points down from May level. Auto loan default rate was 1.03%, three basis points up from its historic low posted last month. All loan types remain below their respective levels a year ago. "All five cities saw increased default rates in July. Miami increased the most; it posted 2.06%, 31 basis points up from last month. Chicago recorded 1.75%, 16 basis points above the last month's level. New York increased by nine basis points, Dallas by five and Los Angeles by three basis points. All five cities remain below default rates they posted a year ago, in July 2012." The table below summarizes the July 2013 results for the S&P/Experian Credit Default Indices. These data are not seasonally adjusted and are not subject to revision. S&P/Experian Consumer Credit Default Indices National Indices Index July 2013 June 2013 July 2012 Index Level Index Level Index Level Composite 1.35 1.34 1.51 First Mortgage 1.25 1.23 1.41 Second Mortgage 0.54 0.54 0.75 Bank Card 3.22 3.41 3.83 Auto Loans 1.03 1.00 1.01 Source: S&P/Experian Consumer Credit Default Indices Data through July 2013 The table below provides the S&P/Experian Consumer Default Composite Indices for the five MSAs: Metropolitan July 2013 June 2013 July 2012 Statistical Area Index Level Index Level Index Level New York 1.52 1.43 1.49 Chicago 1.75 1.59 1.84 Dallas 0.97 0.92 0.98 Los Angeles 1.56 1.53 1.67 Miami 2.06 1.75 2.39 Source: S&P/Experian Consumer Credit Default Indices Data through July 2013 About S&P Dow Jones Indices S&P Dow Jones Indices LLC -- http://www.spdji.com-- is a part of McGraw Hill Financial. It is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500(R) and the Dow Jones Industrial Average(TM), S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. About Experian Experian -- http://www.experianplc.com-- is a global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft. Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2013 was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao Paulo, Brazil. * U.S. Mortgage Group Forced to Correct Initiative Stats -------------------------------------------------------- Phil Mattingly and Tom Schoenberg, writing for Bloomberg News, reported that President Barack Obama's administration significantly overstated statistics from a year-long mortgage- fraud initiative, including total number of victims, their losses suffered and number of individuals criminally charged, according to an FBI memo. The Federal Bureau of Investigation, in the document sent Aug. 10, asked members of the administration's Mortgage Fraud Working Group to correct and update any public materials related to the results released in October of a year-long law enforcement initiative targeting fraud schemes aimed at vulnerable homeowners, the report related. According to the report, the FBI restated the number of people criminally charged to 107 from 530. Agencies were asked to correct victims' total losses to $95 million from an estimated $1 billion, and the number of victims found to 17,185 from more than 73,000. "This targeted approach resulted in the successful filing of many criminal and civil cases around the country, but regrettably, the statistics reported in October included cases that fell outside the specific parameters of the initiative," the FBI, which co- chairs the mortgage group, said in the memo. The corrected statistics come in response to a Bloomberg News story reporting that some cases cited occurred before the initiative began in October 2011, including one filed by prosecutors more than two years before Obama took office. * U.S. Said to Plan Charges Against Ex-JPMorgan Employees --------------------------------------------------------- Patricia Hurtado, Keri Geiger & Dawn Kopecki, writing for Bloomberg News, reported that the U.S. may announce charges against former London-based JPMorgan Chase & Co. employees related to allegations they tried to conceal losses last year, a person familiar with the matter said. According to the report, the situation remains fluid and it isn't clear who may be charged, said the person, who requested anonymity because the information wasn't public. Those facing U.S. charges include Javier Martin-Artajo, a former executive who oversaw the trading strategy, and Julien Grout, a trader who worked for him, the New York Times reported Aug. 9. Prosecutors also are weighing penalties for the bank, including a fine and a reprimand, the newspaper said in a subsequent report. The investigation has centered on whether employees at JPMorgan's chief investment office attempted to inflate the value of trades on the bank's books by mismarking them, a person with knowledge of the matter said previously, the report related. Federal officials are considering charges related to mismarking books and falsifying documents, the person said. Police showed up at Grout's home in London and his landlord gave them his forwarding address in the south of France, according to a person with direct knowledge of the matter, the report further related. A spokesman for London's Metropolitan Police declined to comment. A French citizen, Grout may be difficult to arrest if he's charged because France has tougher extradition laws than the U.K., the person said. * Bankruptcy Watchdogs Seek Greater Scrutiny of Legal Fees ---------------------------------------------------------- Jacqueline Palank, writing for The Wall Street Journal, reported that the appointment of a fee examiner to monitor legal bills in Detroit's Chapter 9 case comes in the midst of a push by the Department of Justice to crack down on the perception of bankruptcy as a billing bonanza for attorneys. According to the report, starting Nov. 1, attorneys representing large corporate debtors in Chapter 11 will be subject to additional disclosures and rules. Debtors will also face a bigger push to ensure that someone -- namely, a fee examiner -- is keeping an eye on the meter, which in large bankruptcy cases often runs into the tens of millions of dollars. "It's something in these larger cases that we think ought to be done with greater frequency," Clifford J. White III, who leads the Justice Department unit responsible for monitoring bankruptcy cases and enforcing bankruptcy laws, said, the report related. On a call sponsored by the American Bankruptcy Institute, Mr. White explained the hallmarks of the new fee guidelines that his cadre of bankruptcy watchdogs, called U.S. trustees, will use to evaluate attorney fee requests in bankruptcy courts across the country. In Chapter 11, a debtor must secure court approval for its choice of lawyers, and their fees are also subject to court approval as well as public scrutiny. While U.S. trustees can, and often do, object to legal fee applications, some of the biggest bankruptcy cases regularly involve dozens of law firms that submit extensive invoices throughout the case, the report said. In those cases, the court may appoint an independent fee examiner to make sure the fees are reasonable and to point out any red flags to the bankruptcy judge. There's a fee examiner in the American Airlines Chapter 11 case, for instance, and one was just appointed in Detroit's Chapter 9 bankruptcy case. * John Samberg Joins Wolf Rifkin as Partner in Reno Office ---------------------------------------------------------- Los Angeles based law firm, Wolf Rifkin Shapiro Schulman & Rabkin, LLP (WRSS&R), with offices in Las Vegas and Reno, welcomes the highly experienced trial attorney John Samberg as a partner in their Reno office. Mr. Samberg's extensive experience in areas of commercial, construction, and bankruptcy litigation, real estate disputes, creditor's right, and major injury/wrongful death cases are expected to be a major asset to the firm. Mr. Samberg was a founding member of a Southern California boutique civil trial practice handling commercial litigation and major injury/wrongful death cases across the nation from 1985 to 2007. Before entering the practice of law, he worked as a private detective and still holds an active California Private Detective license. "Backed by nearly 30 years of civil practice in state, federal and bankruptcy courts across the country, John Samberg will be the lead partner in our Reno office," says Michael Wolf, managing partner at WRSS&R. "With John's past achievements and diverse professional experiences, we know he will greatly add to our firm's success." "I'm very excited to be joining the WRSS&R team," said Mr. Samberg. "The breadth of the firm's practice and multiple office locations, combined with the depth of colleague support, presents a strong opportunity for client service and market growth." About WRSS&R Comprised of a team of over 40 attorneys, WRSS&R -- http://www.wrslawyers.com-- specializes in all areas of law. Offering top quality legal expertise at reasonable costs, WRSS&R has garnered a national reputation as a leading law firm. Their offices are located in Los Angeles, Las Vegas, Reno and Birmingham, Alabama. * McGlinchey's Bankruptcy Lawyers Included in Best Lawyers List --------------------------------------------------------------- McGlinchey Stafford on Aug. 20 disclosed that 38 of the firm's attorneys have been selected by their peers for inclusion in the 2014 edition of The Best Lawyers in America(R) and four of these attorneys were selected for the publication's "Lawyers of the Year." The four attorneys who were singled out as 2014 "Lawyers of the Year" were Samuel A. Bacot (Real Estate Law), Michael H. Rubin (Litigation - Banking and Finance), John F. Sieberth (Patent Law) and Stephen P. Strohschein (Litigation - Bankruptcy) and the complete list of The Best Lawyers in America(R) from McGlinchey Stafford is below. The Best Lawyers in America(R) 2014 from McGlinchey Stafford: Albany, NY -- Marc J. Lifset Financial Services Regulation Law, Litigation - Banking and Finance Baton Rouge, LA -- Rudy J. Aguilar, Jr. Commercial Litigation, Corporate Law, Litigation - Mergers and Acquisitions -- Brad J. Axelrod Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, Corporate Law -- Samuel A. Bacot* Litigation - Real Estate, Real Estate Law -- Richard A. Curry Commercial Litigation, Litigation - Environmental -- Michael D. Ferachi Commercial Litigation, Litigation - Banking and Finance -- R. Marshall Grodner Equipment Finance Law -- Deborah Duplechin Harkins Gaming Law, Government Relations Practice -- Mary Terrell Joseph Banking and Finance Law -- Christine Lipsey Commercial Litigation -- Kai David Midboe Environmental Law -- Jay M. O'Brien Appellate Practice -- R. Andrew Patty II Copyright Law, Patent Law, Trademark Law -- Anthony Rollo Litigation - Banking and Finance, Mass Tort Litigation / Class Actions - Defendants -- Michael H. Rubin* Appellate Practice, Bet-the-Company Litigation, Commercial Litigation, Litigation - Banking and Finance -- John F. Sieberth* Patent Law, Trademark Law -- Stephen P. Strohschein* Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, Litigation - Bankruptcy -- Dan E. West Commercial Litigation, Litigation - Environmental Cleveland, OH -- Mark S. Edelman Financial Services Regulation Law -- Barbara Friedman Yaksic Commercial Litigation, Litigation - Banking and Finance, Litigation - Bankruptcy Dallas, TX -- Steven T. Holmes Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law -- Eldon L. Youngblood Real Estate Law Jackson, MS -- H. Hunter Twiford III Commercial Litigation, Litigation - Banking and Finance, Litigation - Municipal New Orleans, LA -- Richard A. Aguilar Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law, Commercial Litigation, Litigation - Banking and Finance, Litigation - Bankruptcy, Litigation - Mergers and Acquisitions, Litigation - Real Estate, Litigation - Trusts and Estates -- Stephen P. Beiser Employment Law - Management, Labor Law - Management -- Mark N. Bodin Personal Injury Litigation - Defendants -- Jaye A. Calhoun Litigation and Controversy - Tax, Tax Law -- Rudy J. Cerone Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law -- Katherine Conklin Employee Benefits (ERISA) Law -- Larry Feldman, Jr. Bet-the-Company Litigation, Commercial Litigation -- Bennet S. Koren Banking and Finance Law, Litigation - Banking and Finance -- Kathleen A. Manning Personal Injury Litigation - Defendants, Product Liability Litigation - Defendants -- B. Franklin Martin III Commercial Litigation -- Colvin Norwood, Jr. Personal Injury Litigation - Defendants, Product Liability Litigation - Defendants -- Erin Fury Parkinson Personal Injury Litigation - Defendants -- Kenneth A. Weiss Elder Law, Litigation - Trusts and Estates, Non-Profit / Charities Law, Tax Law, Trusts and Estates -- Constance Charles Willems Communications Law, Litigation - Regulatory Enforcement (SEC, Telecom, Energy) -- Gerard E. Wimberly, Jr. Commercial Litigation * = 2014 Lawyer of the Year About Best Lawyers in America(R) Best Lawyers in America(R) 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 of The Best Lawyers in America is based on more than 3.9 million detailed evaluations of lawyers by other lawyers. Corporate Counsel magazine has called Best Lawyers "the most respected referral list of attorneys in practice." About McGlinchey Stafford McGlinchey Stafford is a full-service law firm providing innovative legal counsel to business clients nationwide. Guiding clients wherever business and law intersect, McGlinchey Stafford attorneys are based in ten offices in California, Florida, Louisiana, Mississippi, New York, Ohio and Texas. * Waller's Bankruptcy Attorneys Included in Best Lawyers List ------------------------------------------------------------- Best Lawyers(R), the oldest and most highly-respected peer- reviewed guide to legal excellence in the legal profession, has named 58 Waller attorneys to its 2014 edition of The Best Lawyers in America, six of whom were named "Lawyers of the Year." The list is compiled based on exhaustive national surveys of more than 4 million evaluations of lawyers by their professional peers. "We are thrilled that so many Waller attorneys have been recognized by Best Lawyers," said John Tishler, chairman of Waller, Nashville's oldest and largest law firm. "This prodigious achievement for all of our attorneys demonstrates the breadth of knowledge and dedication each make to the many clients who rely on them across all of our practices groups. We are particularly proud of the five new attorneys who are being recognized for their remarkable professionalism and tremendous achievements in legal services for the first time, as well as the six attorneys who received the highest honor as Lawyers of the Year." Waller attorneys were recognized by Best Lawyers in more than 45 distinct practice areas. Many were listed in multiple specialties. Attorneys representing each of Waller's offices in Nashville, Birmingham, and Austin, which opened in 2012, were among those honored. The following attorneys were recognized in their respective practice areas. The six Nashville attorneys recognized as Lawyers of the Year are also indicated below. Austin -- Fletcher Brown, Partner - Health Care Law -- Anthony E. Pletcher, Counsel - Personal Injury Litigation-Plaintiffs & Defendants Birmingham -- Larry B. Childs, Partner - Banking & Finance Law, Commercial Litigation, Litigation-Banking & Finance, Litigation- Construction -- Rebecca W. Pritchett, Partner - Environmental Law, Litigation-Environmental Nashville -- Stephen C. Baker, Partner - Real Estate Law -- George W. Bishop III, Partner - Corporate Law, Health Care Law, Litigation-Mergers & Acquisitions, Mergers & Acquisitions Law -- Robert E. Boston, Partner - Bet-the-Company Litigation, Commercial Litigation, Employment Law-Management, Labor Law-Management, Litigation-Labor & Employment -- James B. Bristol, Partner - Employee Benefits (ERISA) Law, Employment Law-Management, Litigation-ERISA, Tax Law -- Brian R. Browder, Partner - Health Care Law -- Alexander B. Buchanan, Counsel- Administrative/Regulatory Law, Corporate Law, Public Finance Law; *Lawyer of the Year* -- Mathew R. Burnstein, Partner - Corporate Law, Mergers & Acquisitions Law -- Jeffrey A. Calk, Partner - Real Estate Law -- Edward M. Callaway, Partner - Environmental Law; *Lawyer of the Year* -- Robert R. Campbell, Jr., Partner - Banking & Finance Law, Project Finance Law, Real Estate Law -- John D. Claybrook, Partner - Real Estate Law -- J. Chase Cole, Partner - Corporate Law, Mergers & Acquisitions Law -- Lew Conner, Counsel - Arbitration, Bet-the-Company Litigation, Commercial Litigation, Family Law, Family Law Mediation, Litigation-Construction, Mediation; *Lawyer of the Year* -- Waverly D. Crenshaw, Jr., Partner - Employment Law- Management, Litigation-Labor & Employment -- Marcus M. Crider, Partner - Employment Law-Management, Litigation-Labor & Employment -- Walter H. Crouch, Partner - Commercial Litigation, Litigation-Intellectual Property -- Paul S. Davidson, Partner - Commercial Litigation, Litigation-Antitrust, Litigation-Intellectual Property, Litigation-Mergers & Acquisitions, Litigation- Securities; *Lawyer of the Year* -- Ames Davis, Partner - Commercial Litigation -- James M. Doran, Jr., Partner - Bet-the-Company Litigation, Commercial Litigation, Mass Tort Litigation/Class Actions-Defendants, Product Liability Litigation-Defendants -- Christopher S. Dunn, Partner -Construction Law, Litigation-Construction -- Derek W. Edwards, Partner - Commercial Litigation -- Robert P. Felber, Jr., Partner - Franchise Law, Trademark Law -- Carla Fiddler Fenswick, Partner - Health Care Law -- Shannon Goff Kukulka, Partner - Employee Benefits (ERISA) Law -- Stanley E. Graham, Partner - Employment Law- Management, Litigation-Labor & Employment -- J. Leigh Griffith, Partner - Government Relations Practice, Litigation & Controversy-Tax, Tax Law -- Matthew T. Harris, Partner, -- Litigation-Real Estate, Real Estate Law -- Robert L. Harris, Partner - Banking & Finance Law -- Robb S. Harvey, Partner - Commercial Litigation, Franchise Law, Litigation-First Amendment, Litigation-Intellectual Property, Media Law -- E. Brent Hill, Partner - Corporate Law, Health Care Law -- Heather J. Hubbard, Partner - Copyright Law, Litigation-Intellectual Property, Litigation-Patent, Trademark Law -- Richard A. Johnson, Partner - Tax Law, Trusts & Estates -- J. Steven Kirkham, Partner - Real Estate Law -- David E. Lemke, Partner - Bankruptcy & Creditor Debtor Rights/Insolvency & Reorganization Law -- Nora L. Liggett, Partner - Health Care Law -- Kim Harvey Looney, Partner - Health Care Law -- Gerald F. Mace, Partner - Banking & Finance Law -- E. Marlee Mitchell, Partner - Corporate Law, Mergers & Acquisitions Law, Securities/Capital Markets Law, Mutual Funds Law; *Lawyer of the Year* -- Donald R. Moody, Partner - Corporate Law, Mergers & Acquisitions Law -- Andrew S. Naylor, Partner - Labor Law-Management, Litigation-Labor & Employment -- E. Andrew Norwood, Partner - Copyright Law, Information Technology Law, Litigation-Intellectual Property, Litigation-Patent, Patent Law, Technology Law, Trademark Law; *Lawyer of the Year* -- W. Travis Parham, Partner - Commercial Litigation, Litigation-Banking & Finance, Litigation-Real Estate, Litigation- Securities -- Michael R. Paslay, Partner - Bankruptcy & Creditor Debtor Rights/Insolvency & Reorganization Law, Litigation- Bankruptcy -- Thomas H. Peebles IV, Counsel - Eminent Domain & Condemnation Law -- MaryEllen S. Pickrell, Partner - Corporate Law -- Patricia Owen Powers, Counsel - Health Care Law -- G. Scott Rayson, Partner - Corporate Law, Health Care Law, Mergers & Acquisitions Law -- Colbey B. Reagan, Partner - Health Care Law -- L. Hunter Rost, Jr., Partner - Mergers & Acquisitions Law -- John C. Tishler, Partner - Bankruptcy & Creditor Debtor Rights/Insolvency & Reorganization Law, Litigation- Bankruptcy -- Charles A. Trost, Counsel - Tax Law, Trusts & Estates -- James M. Weaver, Partner - Environmental Law, Gaming Law, Government Relations Practice -- Joseph A. Woodruff, Partner - Commercial Litigation, Litigation-Banking & Finance, Litigation-Securities -- G. Michael Yopp, Partner - Litigation & Controversy- Tax, Tax Law About Waller Waller -- http://www.wallerlaw.com-- is headquartered in Nashville, Tennessee with offices in Birmingham, Alabama and Austin, Texas. With approximately 200 attorneys, Waller helps clients navigate a diverse range of complex transactional, regulatory and litigation issues across myriad industries. Waller is Nashville's oldest and largest law firm. Founded in 1905, Waller has client relationships spanning decades because time and again, clients come for the lawyer and stay for the firm. * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In re Elton Johann Bankr. D. Ariz. Case No. 13-13782 Chapter 11 Petition filed August 9, 2013 In re Felipe Sanchez Bankr. D. Ariz. Case No. 13-13797 Chapter 11 Petition filed August 9, 2013 In re Mohdsameer Aljanedi Bankr. C.D. Cal. Case No. 13-30127 Chapter 11 Petition filed August 9, 2013 In re Mohdsameer Aljanedi, DDS, INC. dba Pacifica Dental Group fdba Sameer Aljanedi, Inc. Bankr. C.D. Cal. Case No. 13-30136 Chapter 11 Petition filed August 9, 2013 See http://bankrupt.com/misc/cacb13-30136.pdf represented by: M. Jonathan Hayes, Esq. SIMON RESNIK HAYES, LLP E-mail: jhayes@srhlawfirm.com In re Mohdsameer Aljanedi Prof. Dental Corporation dba Marina Dentistry fdba Marina Dentistry, Inc. Bankr. C.D. Cal. Case No. 13-30146 Chapter 11 Petition filed August 9, 2013 See http://bankrupt.com/misc/cacb13-30146.pdf represented by: M. Jonathan Hayes, Esq. SIMON RESNIK HAYES, LLP E-mail: jhayes@srhlawfirm.com In re Tiffany Quilting & Drapery Inc. Bankr. M.D. Fla. Case No. 13-09940 Chapter 11 Petition filed August 9, 2013 See http://bankrupt.com/misc/flmb13-09940.pdf represented by: Raymond J. Rotella, Esq. KOSTO & ROTELLA, P.A. E-mail: rrotella@kostoandrotella.com In re Sterling Ferguson Bankr. S.D. Fla. Case No. 13-28991 Chapter 11 Petition filed August 9, 2013 In re Winners Sports Bar and Grill, Inc. Bankr. N.D. Ill. Case No. 13-31873 Chapter 11 Petition filed August 9, 2013 See http://bankrupt.com/misc/ilnb13-31873.pdf represented by: Ernesto D, Borges, Esq. LAW OFFICES OF ERNESTO BORGES E-mail: notice@billbusters.com In re Mary Giovacchini Bankr. D.N.J. Case No. 13-27581 Chapter 11 Petition filed August 9, 2013 In re Hayashi, LLC dba Hayashi-ya Japanese Cuisine Bankr. E.D.N.C. Case No. 13-05024 Chapter 11 Petition filed August 9, 2013 See http://bankrupt.com/misc/nceb13-05024.pdf represented by: Travis Sasser, Esq. SASSER LAW FIRM E-mail: tsasser@carybankruptcy.com In re Brenda Lugo Velez Bankr. D.P.R. Case No. 13-06518 Chapter 11 Petition filed August 9, 2013 In re John Sandlin Bankr. W.D. Wash. Case No. 13-17297 Chapter 11 Petition filed August 9, 2013 In re John Sandlin Bankr. W.D. Wash. Case No. 13-17299 Chapter 11 Petition filed August 9, 2013 In re Soho's Enterprises, LLC Bankr. S.D. W.Va. Case No. 13-20405 Chapter 11 Petition filed August 9, 2013 See http://bankrupt.com/misc/wvsb13-20405.pdf represented by: William W. Pepper, Esq. PEPPER AND NASON E-mail: tinas@peppernason.com In re Land Survey Technologies, Inc. Bankr. D. Nev. Case No. 13-16914 Chapter 11 Petition filed August 10, 2013 See http://bankrupt.com/misc/nvb13-16914.pdf Represented by: Matthew C. Zirzow, Esq. Larson & Zirzow E-mail: mzirzow@lzlawnv.com In re Valencia Group, LLC Bankr. C.D. Cal. Case No. 13-30218 Chapter 11 Petition filed August 10, 2013 See http://bankrupt.com/misc/cacb13-30218.pdf represented by: Michael J. Jaurigue, Esq. Jaurigue Law Group E-mail: michael@jauriguelaw.com In re Michael Ebenroth Bankr. W.D. Mo. Case No. 13-43026 Chapter 11 Petition filed August 11, 2013 In re Ziz Restaurant, Inc. Bankr. E.D.N.Y. Case No. 13-74154 Chapter 11 Petition filed August 11, 2013 See http://bankrupt.com/misc/nyeb13-74154.pdf represented by: Alan Stein, Esq. E-mail: alan@alanstein.net In re Charles Williams Bankr. N.D. Cal. Case No. 13-44612 Chapter 11 Petition filed August 12, 2013 In re Frances Newman Bankr. N.D. Fla. Case No. 13-31023 Chapter 11 Petition filed August 12, 2013 In re Larry Patton Bankr. N.D. Ill. Case No. 13-82791 Chapter 11 Petition filed August 12, 2013 In re Michael Jackson Bankr. W.D. La. Case No. 13-81000 Chapter 11 Petition filed August 12, 2013 In re Amira Badaway Bankr. D. Md. Case No. 13-23682 Chapter 11 Petition filed August 12, 2013 In re Musa Badaway Bankr. D. Md. Case No. 13-23682 Chapter 11 Petition filed August 12, 2013 In re Sonia Mejia Bankr. D. Mass. Case No. 13-14804 Chapter 11 Petition filed August 12, 2013 In re Carrie Quagliaroli Bankr. D. N.H. Case No. 13-12011 Chapter 11 Petition filed August 12, 2013 In re YWCA of Essex and West Hudson,Inc. Bankr. D.N.J. Case No. 13-27694 Chapter 11 Petition filed August 12, 2013 See http://bankrupt.com/misc/njb13-27694.pdf represented by: Stuart M. Nachbar, Esq. Law Office of Stuart M Nachbar E-mail: stuart@snanj.com In re Barbara Ahrens Bankr. W.D.N.Y. Case No. 13-12150 Chapter 11 Petition filed August 12, 2013 In re Pinto's Collision LLC Bankr. W.D.N.Y. Case No. 13-12148 Chapter 11 Petition filed August 12, 2013 See http://bankrupt.com/misc/nywb13-12148.pdf represented by: Arthur G. Baumeister, Jr., Esq. Amigone, Sanchez, et al E-mail: abaumeister@amigonesanchez.com In re Pinto's Towing & Recovery, LLC Bankr. W.D.N.Y. Case No. 13-12149 Chapter 11 Petition filed August 12, 2013 See http://bankrupt.com/misc/nywb13-12149.pdf represented by: Arthur G. Baumeister, Jr., Esq. Amigone, Sanchez, et al E-mail: abaumeister@amigonesanchez.com In re Magar Magar Bankr. D. Ore. Case No. 13-35143 Chapter 11 Petition filed August 12, 2013 In re Instrumentation and Controls, Inc. Bankr. E.D. Pa. Case No. 13-17059 Chapter 11 Petition filed August 12, 2013 See http://bankrupt.com/misc/paeb13-17059p.pdf See http://bankrupt.com/misc/paeb13-17059c.pdf represented by: Nella Moses Bloom, Esq. Steven D. Usdin, Esq. Flaster/Greenberg PC E-mail: nella.bloom@flastergreenberg.com steven.usdin@flastergreenberg.com In re ICI Green, L.L.C. Bankr. E.D. Pa. Case No. 13-17060 Chapter 11 Petition filed August 12, 2013 See http://bankrupt.com/misc/paeb13-17060p.pdf See http://bankrupt.com/misc/paeb13-17060c.pdf represented by: Nella Moses Bloom, Esq. Steven D. Usdin, Esq. E-mail: nella.bloom@flastergreenberg.com steven.usdin@flastergreenberg.com In re 4JZink, LLC dba Cheeburger Cheeburger Bankr. W.D. Pa. Case No. 13-23387 Chapter 11 Petition filed August 12, 2013 See http://bankrupt.com/misc/pawb13-23387.pdf represented by: Robert O Lampl, Esq. E-mail: rol@lampllaw.com In re Victor Pizarro Rohena Bankr. D.P.R. Case No. 13-6538 Chapter 11 Petition filed August 12, 2013 In re James Felton Bankr. E.D. Tenn. Case No. 13-32931 Chapter 11 Petition filed August 12, 2013 In re Viva Environmental, Inc. Bankr. W.D. Tex. Case No. 13-31317 Chapter 11 Petition filed August 12, 2013 See http://bankrupt.com/misc/txwb13-31317.pdf represented by: Carlos A. Miranda, III, Esq. Carlos A. Miranda, III & Associates P.C E-mail: cmiranda@mirandafirm.com In re Michael Slaght Bankr. W.D. Wis. Case No. 13-13991 Chapter 11 Petition filed August 12, 2013 In re William Dailey Bankr. D. Ariz. Case No. 13-13928 Chapter 11 Petition filed August 13, 2013 In re Earl Calliste Bankr. D. D.C. Case No. 13-00500 Chapter 11 Petition filed August 13, 2013 In re Donald Horn Bankr. M.D. Fla. Case No. 13-10664 Chapter 11 Petition filed August 13, 2013 In re Kenton Findlay Bankr. S.D. Fla. Case No. 13-29223 Chapter 11 Petition filed August 13, 2013 In re Driggs Investment Group, LLC Bankr. D. Idaho Case No. 13-40995 Chapter 11 Petition filed August 13, 2013 See http://bankrupt.com/misc/idb13-40995p.pdf See http://bankrupt.com/misc/idb13-40995c.pdf represented by: Aaron J. Tolson, Esq. AARON J. TOLSON LAW OFFICES E-mail: ajt@aaronjtolsonlaw.com In re Ronald O'Connor Bankr. C.D. Ill. Case No. 13-91044 Chapter 11 Petition filed August 13, 2013 In re Mary Prieto Bankr. E.D. La. Case No. 13-12200 Chapter 11 Petition filed August 13, 2013 In re Clay Prieto Bankr. E.D. La. Case No. 13-12200 Chapter 11 Petition filed August 13, 2013 In re Cowdog Holdings, LLC Bankr. E.D. La. Case No. 13-12197 Chapter 11 Petition filed August 13, 2013 See http://bankrupt.com/misc/laeb13-12197.pdf represented by: William G. Cherbonnier, Jr., Esq. WILLIAM G. CHERBONNIER ATTORNEY AT LAW, LLC E-mail: usbcdocs@billcherbonnier.com In re James Vincent Bankr. W.D. Mo. Case No. 13-61273 Chapter 11 Petition filed August 13, 2013 In re Playa Del Sol 380 condo Association Bankr. D.N.J. Case No. 13-27800 Chapter 11 Petition filed August 13, 2013 See http://bankrupt.com/misc/njb13-27800.pdf represented by: Dino S. Mantzas, Esq. LAW OFFICE OF DINO S. MANTZAS E-mail: dmantzas@aol.com In re Jopindar Harika Bankr. W.D. Pa. Case No. 13-23400 Chapter 11 Petition filed August 13, 2013 In re Eduardo Ruiz Valentin Bankr. D.P.R. Case No. 13-06575 Chapter 11 Petition filed August 13, 2013 In re Annette Braffett Mulinelli Bankr. D.P.R. Case No. 13-06605 Chapter 11 Petition filed August 13, 2013 In re Attic Space Self Storage, LLC Bankr. D. S.C. Case No. 13-04684 Chapter 11 Petition filed August 13, 2013 See http://bankrupt.com/misc/scb13-04684.pdf represented by: Nancy E. Johnson, Esq. LAW OFFICE OF NANCY E. JOHNSON, LLC E-mail: nej@njohnsonbankruptcy.com In re John Britt Bankr. E.D. Va. Case No. 13-34390 Chapter 11 Petition filed August 13, 2013 In re Alonzo Cano Bankr. W.D. Va. Case No. 13-71308 Chapter 11 Petition filed August 13, 2013 In re Alaa Babiker Bankr. D. Ariz. Case No. 13-14064 Chapter 11 Petition filed August 14, 2013 In re John Mcloughlin Bankr. D. Ariz. Case No. 13-14029 Chapter 11 Petition filed August 14, 2013 In re William Berry Bankr. E.D. Ark. Case No. 13-14555 Chapter 11 Petition filed August 14, 2013 In re William Prior Bankr. E.D. Cal. Case No. 13-30690 Chapter 11 Petition filed August 14, 2013 In re Rolando Caballero Bankr. N.D. Cal. Case No. 13-54369 Chapter 11 Petition filed August 14, 2013 In re William McNew Bankr. N.D. Ill. Case No. 13-82820 Chapter 11 Petition filed August 14, 2013 In re Bay Town Realty LLC Bankr. D. Mass. Case No. 13-14837 Chapter 11 Petition filed August 14, 2013 See http://bankrupt.com/misc/mab13-14837.pdf represented by: Roger Stanford, Esq. Stanford & Schall E-mail: rogerstanf@aol.com In re Theodora Hart Bankr. D. Nev. Case No. 13-16968 Chapter 11 Petition filed August 14, 2013 In re MRD Seventh Holding Company, LLC Bankr. D.N.J. Case No. 13-27877 Chapter 11 Petition filed August 14, 2013 See http://bankrupt.com/misc/njb13-27877.pdf represented by: Gabriel Fischbarg, Esq. E-mail: fis123@yahoo.com In re Why Bake Inc. aka Mr Tod's Pies Bankr. D.N.J. Case No. 13-27810 Chapter 11 Petition filed August 14, 2013 See http://bankrupt.com/misc/njb13-27810.pdf Filed pro se In re Bonny Calloway Bankr. E.D. N.C. Case No. 13-5081 Chapter 11 Petition filed August 14, 2013 In re IHP, Inc Bankr. E.D. Va. Case No. 13-13744 Chapter 11 Petition filed August 14, 2013 See http://bankrupt.com/misc/vaeb13-13744.pdf represented by: Gregory H. Counts, Esq. Tyler, Bartl, Ramsdell & Counts, PLC E-mail: gcounts@tbrclaw.com In re Amirbhai Mahida Bankr. C.D. Cal. Case No. 13-30562 Chapter 11 Petition filed August 15, 2013 In re Les Deux Garcons, LLC T/A Bistrot Le Zinc Bankr. D. D.C. Case No. 13-00505 Chapter 11 Petition filed August 15, 2013 See http://bankrupt.com/misc/dcb13-00505.pdf represented by: Darrell W. Clark, Esq. STINSON MORRISON HECKER, LLP E-mail: dclark@stinson.com In re Melia El Bahri Bankr. M.D. Fla. Case No. 13-04992 Chapter 11 Petition filed August 15, 2013 In re Elias Food Corp Bankr. N.D. Ill. Case No. 13-32665 Chapter 11 Petition filed August 15, 2013 See http://bankrupt.com/misc/ilnb13-32665.pdf represented by: Daniel L. Giudice, Esq. GIUDICE LAW, LTD. E-mail: giudicelaw@gmail.com In re Hilltop Enterprises, Inc. Bankr. N.D. Miss. Case No. 13-13376 Chapter 11 Petition filed August 15, 2013 See http://bankrupt.com/misc/msnb13-13376.pdf represented by: Robert Gambrell, Esq. GAMBRELL & ASSOCIATES, PLLC E-mail: rg@ms-bankruptcy.com In re Newton Company LLC Bankr. D. Nebr. Case No. 13-81745 Chapter 11 Petition filed August 15, 2013 See http://bankrupt.com/misc/neb13-81745.pdf represented by: Kathryn J. Derr, Esq. KATHRYN J. DERR, PC, LLO E-mail: kderr@berkshire-law.com In re Salvador Macedo Bankr. D. Nev. Case No. 13-17015 Chapter 11 Petition filed August 15, 2013 In re Bhavesh Patel Bankr. D.N.J. Case No. 13-27904 Chapter 11 Petition filed August 15, 2013 In re Christopher DiCristo Bankr. D.N.J. Case No. 13-27912 Chapter 11 Petition filed August 15, 2013 In re Abner Reed Bankr. D. N.M. Case No. 13-12692 Chapter 11 Petition filed August 15, 2013 In re Rithimna Realty LLC Bankr. E.D.N.Y. Case No. 13-45017 Chapter 11 Petition filed August 15, 2013 See http://bankrupt.com/misc/nyeb13-45017.pdf Filed as Pro Se In re B & Y Restaurant Group, LLC Bankr. S.D.N.Y. Case No. 13-12663 Chapter 11 Petition filed August 15, 2013 See http://bankrupt.com/misc/nysb13-12663.pdf represented by: Cynthia Maria Attard, Esq. ATTARD & ASSOCIATES E-mail: cattardesq@gmail.com In re Protective Systems Technologies, Inc. Bankr. W.D.N.C. Case No. 13-31778 Chapter 11 Petition filed August 15, 2013 See http://bankrupt.com/misc/ncwb13-31778.pdf represented by: Dennis M. O'Dea, Esq. SFS LAW GROUP E-mail: dennis.odea@sfslawgroup.com In re Cretia, Inc. Bankr. N.D. Tex. Case No. 13-34165 Chapter 11 Petition filed August 15, 2013 See http://bankrupt.com/misc/txnb13-34165.pdf represented by: Edie Walters, Esq. Walters Law, P.C. E-mail: ediewalt@gmail.com In re J & J Insulation and Acoustics, Inc. Bankr. S.D. Tex. Case No. 13-20386 Chapter 11 Petition filed August 15, 2013 See http://bankrupt.com/misc/txsb13-20386.pdf represented by: Ralph Perez, Esq. CAVADA LAW OFFICE E-mail: ralph.perez@cavadalawoffice.com In re Raietta Johnson Bankr. E.D. Va. Case No. 13-73036 Chapter 11 Petition filed August 15, 2013 In re Frontier Room LLC Bankr. W.D. Wash. Case No. 13-17435 Chapter 11 Petition filed August 15, 2013 See http://bankrupt.com/misc/wawb13-17435.pdf represented by: Larry B. Feinstein, Esq. VORTMAN & FEINSTEIN E-mail: feinstein2010@gmail.com In re Ella Harvey Bankr. W.D. Wash. Case No. 13-17443 Chapter 11 Petition filed August 15, 2013 In re Christine Caseber Bankr. W.D. Wash. Case No. 13-45276 Chapter 11 Petition filed August 15, 2013 In re Reid-Dallas, LLC Bankr. W.D. Wash. Case No. 13-45286 Chapter 11 Petition filed August 15, 2013 Filed as Pro Se In re First Impressions Child Enrichment Center, Inc. Bankr. N.D. Ala. Case No. 13-03707 Chapter 11 Petition filed August 16, 2013 See http://bankrupt.com/misc/alnb13-3707.pdf represented by: Rodrick J. Barge, Esq. Shayana Boyd Davis, Esq. Fresh Start Law Group, LLC E-mail: rodrick@freshstartal.com shayana@freshstartal.com In re Victoria Randall Bankr. C.D. Cal. Case No. 13-30745 Chapter 11 Petition filed August 16, 2013 In re Elwyn Dubey Bankr. E.D. Cal. Case No. 13-30804 Chapter 11 Petition filed August 16, 2013 In re Donahue Mountain Farm, LLC Bankr. D. Conn. Case No. 13-31581 Chapter 11 Petition filed August 16, 2013 See http://bankrupt.com/misc/ctb13-31581.pdf represented by: Richard C. Marquette, Esq. E-mail: rcmarquette@aol.com In re The Lauretti Corporation Bankr. D. Conn. Case No. 13-21676 Chapter 11 Petition filed August 16, 2013 See http://bankrupt.com/misc/ctb13-21676.pdf represented by: Christopher H. Thogmartin, Esq. J Dimauro Law LLC E-mail: chris@jdimaurolaw.com In re John Freund Bankr. M.D. Fla. Case No. 13-10848 Chapter 11 Petition filed August 16, 2013 In re Darryl Adams Bankr. M.D. Ga. Case No. 13-52162 Chapter 11 Petition filed August 16, 2013 In re Susan Adams Bankr. M.D. Ga. Case No. 13-52162 Chapter 11 Petition filed August 16, 2013 In re Stephen Parke Bankr. D. Idaho Case No. 13-1685 Chapter 11 Petition filed August 16, 2013 In re Padraic Buckley Bankr. N.D. Ill. Case No. 13-32762 Chapter 11 Petition filed August 16, 2013 In re Barbara Graham Bankr. D. Md. Case No. 13-23995 Chapter 11 Petition filed August 16, 2013 In re David Graham Bankr. D. Md. Case No. 13-23995 Chapter 11 Petition filed August 16, 2013 In re Stephan Maisondieu-Laforge Bankr. D. Nev. Case No. 13-17065 Chapter 11 Petition filed August 16, 2013 In re PJ Hanleys Corp. Bankr. S.D. N.Y. Case No. 13-12677 Chapter 11 Petition filed August 16, 2013 See http://bankrupt.com/misc/nysb13-12677.pdf represented by: Jonathan S. Pasternak, Esq. DelBello Donnellan Weingarten Wise & Wiederkehr, LLP E-mail: jpasternak@ddw-law.com In re 300 Church Street, Inc. Bankr. N.D. Ohio Case No. 13-15787 Chapter 11 Petition filed August 16, 2013 See http://bankrupt.com/misc/ohnb13-15787.pdf represented by: Julie E. Rabin, Esq. Rabin & Rabin Co LPA E-mail: jerofficialmail@rabinandrabin.com In re Luis Diesel Services Inc. Bankr. D.P.R. Case No. 13-06718 Chapter 11 Petition filed August 16, 2013 See http://bankrupt.com/misc/prb13-6718.pdf represented by: Nilda M. Gonz lez-Cordero, Esq. E-mail: ngonzalezc@ngclawpr.com In re Both Entertainment, LLC Bankr. S.D. Tex. Case No. 13-35081 Chapter 11 Petition filed August 16, 2013 See http://bankrupt.com/misc/txsb13-35081.pdf Filed pro se In re Stephen Donnelly Bankr. W.D. Tex. Case No. 13-52206 Chapter 11 Petition filed August 16, 2013 In re Wasatch Legal and Collections LLC Bankr. D. Utah Case No. 13-29422 Chapter 11 Petition filed August 16, 2013 See http://bankrupt.com/misc/utb13-29422.pdf Filed pro se In re Luz Tintaya Bankr. E.D. Va. Case No. 13-13771 Chapter 11 Petition filed August 16, 2013 In re Western Sazerac, LLC dba Vessel Bankr. W.D. Wash. Case No. 13-17464 Chapter 11 Petition filed August 16, 2013 See http://bankrupt.com/misc/wawb13-17464.pdf represented by: Jeffrey B. Wells, Esq. E-mail: paralegal@wellsandjarvis.com In re Moore Security Services, Inc. Bankr. N.D. Ill Case No. 13-32840 Chapter 11 Petition filed August 17, 2013 See http://bankrupt.com/misc/ilnb13-32840.pdf represented by: Deadra F Woods Stokes, Esq. Deadra Woods Stokes & Associates, PC E-mail: dwslawpc@gmail.com ********* 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 ***