Beard Group Corporate Restructuring Review

For September 2012

Presented by
Beard Group, Inc.
P.O. Box 4250
Frederick, MD 21705-4250
Voice: (240) 629-3300
Fax: (240) 629-3360
E-mail: nina@beard.com

An audio recording of this presentation is available

at http://bankrupt.com/restructuringreview/
____________________________________________________

Welcome to the Beard Group Corporate Restructuring

Review for September 2012, brought to you by the editors of the
Troubled Company Reporter and Troubled Company Prospector.

In this month's Corporate Restructuring Review, we'll discuss

five topics:

• first, last month's largest chapter 11 filings and other

statistics;

• second, large chapter 11 filings TCR editors anticipate

in the near-term;

• third, a quick review of the major pending disputes in

chapter 11 cases that we monitor day-by-day;
 • fourth, reminders about debtors whose emergence from
chapter 11 has been delayed; and

• fifth, information you're unlikely to find elsewhere about

new publicly traded securities being issued by
chapter 11 debtors.

September 2012 Mega Cases

Now, let's review the largest chapter 11 cases in September

2012.

Danilo Muñoz reports there were three Chapter 11

proceedings commenced in September 2012 involving assets
exceeding $100 million, reversing the upward trend in mega
filings the past few months. Six mega cases were filed in August
and four in July. None of the three mega filings in September
involved assets exceeding $1 billion, compared to one in August
and three in July.

For the first nine months of 2012, a total of 11 companies

sought Chapter 11 protection with excess of $1 billion in assets.
Five of those companies filed in May.

For the first nine months of 2012, there were a total of 51

mega filings with assets in excess of $100 million -- coincidentally
the same as the mega filings during the same period last year,
and substantially lower than the 80 such cases during the first
nine months of 2010.

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Beard Group Corporate Restructuring Review for September 2012 -- page 2

 Journal Register Company is the largest Chapter 11 filer for
September. Journal Register sought bankruptcy protection on
September 5 in the Bankruptcy Court for the Southern District of
New York [case number 12-13774] before Judge Stuart Bernstein.
The Company disclosed total assets of $235 million and liabilities
totaling $268.6 million as of July 29.

Journal Register is the publisher of the New Haven Register

and other papers in 10 states, including Philadelphia, Detroit and
Cleveland, and in upstate New York. The Company's more than
350 multi-platform products reach an audience of 21 million
people each month.

Journal Register, along with its affiliates, first filed for

Chapter 11 bankruptcy protection on Feb. 21, 2009, also in the
Bankruptcy Court for the Southern District of New York [case
number 09-10769]. The Company exited the 2009 restructuring
with $225 million in debt and with a legacy cost structure, which
includes leases, defined benefit pensions and other liabilities that
have become unsustainable and threatened the Company's
efforts for a successful digital transformation.

The Company sought Chapter 11 for the second time to sell

the business to 21st CMH Acquisition Co., an affiliate of funds
managed by Alden Global Capital LLC. The deal is subject to
higher and better offers. Journal Register expects to complete
the auction and sale process within 90 days.

The second largest Chapter 11 for September was by Digital

Domain Media Group, Inc. Along with 13 affiliates, Digital Domain
sought Chapter 11 protection on Sept. 11 with the Bankruptcy
Court for the District of Delaware [Lead Case No. 12-12568] to
sell its business for $15 million to Searchlight Capital Partners LP.

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Beard Group Corporate Restructuring Review for September 2012 -- page 3

 Digital Domain, based in St. Lucie, Florida, disclosed assets
of $205 million and liabilities totaling $214 million.

Digital Domain engages in the creation of original content

animation feature films, and development of computer-generated
imagery for feature films and transmedia advertising primarily in
the United States.

The Company entered into a purchase agreement with

Searchlight to acquire Digital Domain Productions Inc. and its
operating subsidiaries in the United States and Canada, including
Mothership Media, subject to receipt of higher and better offers
and Court approval.

The third largest filer, military cargo airline Southern Air Inc.,
sought Chapter 11 bankruptcy protection on Sept. 28, with the
Bankruptcy Court for the District of Delaware [Case Nos. 12-
12690 to 12-12707]. Its parent company, Southern Air Holdings
Inc., and other affiliated entities also filed for bankruptcy.

Southern Air estimated $100 million to $500 million in both

assets and debts.

Southern Air blamed the bankruptcy filing on the decline in

business from the U.S. Department of Defense, which reduced its
troop count in Afghanistan and hired the airline less frequently.

There was no prepackaged Chapter 11 filing in September.

For the first nine months of 2012, 10 of the 51 mega cases
involved a prepackaged filing -- about 20% of the mega cases.

For 2011, 13 of the 82 mega cases involved a prepackaged

Chapter 11 plan as of the Petition Date -- or about 16% of the
large Chapter 11 filings. For fiscal year 2010, a total of 35

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Beard Group Corporate Restructuring Review for September 2012 -- page 4

prepacks/pre-arranged cases were filed out of the 106 bankruptcy
mega cases -- or about one in every three filings in 2010.

For the first nine months of 2012, the manufacturing industry

continues to lead mega filings with eight, information with seven
and real estate and finance industries with six mega filings each.

For the first nine months of 2012, the Bankruptcy Court for
the Southern District of New York was the most favored venue for
mega filers with 19, followed by the Bankruptcy Court for the
District of Delaware with 12 mega filings.

In 2011, the Delaware Bankruptcy Court was the most

favored of bankruptcy mega cases with 38 filings, or 46% of the
mega cases, followed by the Southern District of New York with
16 filings, or 19% of the mega cases, and by the Northern District
of Texas with 4 filings, or 5% of the mega cases. The rest of the
bankruptcy mega cases are spread evenly throughout the various
bankruptcy courts.

Lehman Brothers Holding Corp. remains the biggest

corporate bust in history. Lehman, which filed in 2008, had $639
billion in total assets and $613 billion in total debts at that time of
its filing.

For 2011, the largest Chapter 11 filing was filed by MF

Global Holdings Ltd. and its affiliates. As of Sept. 30, 2011, MF
Global had $41.05 billion in total assets and $39.68 billion in total
liabilities.

For 2012, the largest Chapter 11 filing was by Residential

Capital LLC, which disclosed $15.68 billion in assets and $15.28
billion in liabilities as of March 31, 2012.

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Beard Group Corporate Restructuring Review for September 2012 -- page 5

 Anticipated Large Chapter 11 Filings

Now, let's turn to the topic of large chapter 11 filings Troubled

Company Reporter editors anticipate in the near-term.

Carlo Fernandez identified five companies that may be close

to filing for bankruptcy. These are: Champion Industries,
Emisphere Technologies, Bronx Parking, BioFuel Energy, and
Homer City Funding.

(A) Champion Industries

Champion Industries, Inc., entered into a forbearance

agreement with Fifth Third Bank, as administrative agent for
lenders. The forbearance agreement expires Oct. 15.

Champion acknowledged that as a result of the existing

defaults, the lenders are entitled to decline to provide further
credit to it, to terminate their loan commitments, to accelerate the
outstanding loans, and to enforce their liens.

Champion is in discussions with Fifth Third regarding a

restructuring debt term sheet.

At Sept. 12, 2012, the outstanding principal balance of

Champion's obligations under the Credit Agreement totaled $38.7
million.

Champion Industries is a commercial printer, business forms

manufacturer and office products and office furniture supplier in
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Beard Group Corporate Restructuring Review for September 2012 -- page 6

regional markets in the United States. The Company also
publishes The Herald-Dispatch daily newspaper in Huntington,
West Virginia.

The Company reported a net loss of $3.97 million for the

year ended Oct. 31, 2011, compared with net income of $488,134
during the prior year.

The Company's balance sheet at July 31, 2012, showed

$51.21 million in total assets against $51.98 million in total
liabilities.

(B) Emisphere Technologies

Emisphere Technologies disclosed that, as of September 27,

it would be in default under the terms of its 11% senior secured
convertible notes issued to MHR Fund Management LLC.
Additionally, it would be in default under the terms of non-interest
bearing promissory notes issued to MHR on June 8, 2010.

These defaults occurred, and are continuing, as a result of

the Company's failure to pay to MHR $30.5 million in principal and
interest due and payable on September 26, under the senior
secured convertible notes, and the Company's failure to pay to
MHR $600,000 in principal due and payable under the terms of
the promissory notes.

The Company's obligations under the Senior Secured

Convertible Notes are secured by substantially all of the
Company's assets, and MHR has the ability to foreclose on such
assets as a result of the default there under. MHR has not
demanded payment under the Senior Secured Convertible Notes
or the MHR 2010 Promissory Notes or exercised its rights there
under as a result of the default.
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Beard Group Corporate Restructuring Review for September 2012 -- page 7

 MHR has indicated to the Company that it is prepared to
continue discussions with the Company regarding proposals
relating to the senior secured convertible notes and promissory
notes.

Cedar Knolls, New Jersey-based Emisphere Technologies is

a biopharmaceutical company that focuses on a unique and
improved delivery of therapeutic molecules or nutritional
supplements using its Eligen Technology.

The Company's balance sheet at June 30, 2012, showed

$2.52 million in total assets, $64.86 million in total liabilities, and a
stockholders' equity of $62.34 million.

(C) Bronx Parking

Bronx Parking Development Co., a nonprofit that operates

parking garages serving New York Yankees baseball fans under a
lease with New York City, won't have sufficient reserves next year
to pay investors holding about $240 million of tax-exempt debt,
according to a report by Bloomberg News.

Bronx Parking, after making a payment to bondholders

recently, has about $422,000 of debt-service reserves remaining
and an $8.1 million surplus fund. Principal and interest payments
to bondholders next year total $15 million, almost double the cash
currently available to repay investors.

The corporation said in June the securities must be

restructured, with investors taking losses, or it may pursue
bankruptcy protection. Bonds due in 2017 traded as low as 45
cents on the dollar Aug. 21, according to data compiled by
Bloomberg.
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Beard Group Corporate Restructuring Review for September 2012 -- page 8

 Bloomberg News says Edward Moran, a financial adviser for
Bronx Parking, declined to comment on any potential bankruptcy
filing or how the corporation plans to pay investors in 2013. The
next payment is due April 1.

(D) BioFuel Energy

Subsidiaries of BioFuel Energy Corp. failed to make the

regularly scheduled payments of principal and interest, in an
aggregate amount of $3.6 million, that were due on the
outstanding term loans under the credit agreement dated as of
September 25, 2006. The Companies were notified of the default
on September 28.

First National Bank of Omaha serves as administrative agent

while Deutsche Bank Trust Company Americas acts as collateral
agent under the Credit Agreement.

The Company said in a regulatory filing that it intends to

continue to have discussions with the administrative agent and
the lenders regarding the terms of a potential forbearance,
reinstatement or restructuring of the term loans.

As of Sept. 28, 2012, there was an aggregate principal

amount of $170.5 million outstanding under the term loans.

Biofuel Energy has decided to idle its Fairmont, Minnesota

ethanol facility until further notice. The Company reported that its
second plant in Wood River, Nebraska, continues to operate.

Denver, Colorado-based BioFuel Energy is an ethanol

producer. The Company reported a net loss of $10.36 million in

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Beard Group Corporate Restructuring Review for September 2012 -- page 9

2011, compared with a net loss of $25.22 million during the prior
year.

BioFuel Energy's balance sheet at June 30, 2012, showed

$275.09 million in total assets against $197.90 million in total
liabilities.

(E) Homer City Funding

General Electric Capital Corporation; EFS-N Inc.; Homer

City Generation, L.P., and the Metropolitan Life Insurance
Company entered into a plan support agreement with holders of
76% of the outstanding principal amount of bonds issued under a
December 2001 indenture between Homer City Funding LLC, and
The Bank of New York, as successor trustee. Fundco is in the
process of entering into the PSA.

The parties commit to support and implement a

reorganization and restructuring of Fundco and its obligations
through a solicitation of votes on a prepackaged plan of
reorganization under chapter 11 of title 11 of the United States
Code in accordance with the terms set forth in therein.

Homer City, Pennsylvania-based EME Homer City

Generation L.P., is a Pennsylvania limited partnership with
Chestnut Ridge Energy Company as a limited partner with a
99.9% interest and Mission Energy Westside Inc. as a general
partner with a 0.1% interest. Both Chestnut Ridge Energy and
Mission Energy Westside are wholly owned subsidiaries of Edison
Mission Holdings Co., a wholly owned subsidiary of EME. EME is
an indirect wholly owned subsidiary of Edison International.

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Beard Group Corporate Restructuring Review for September 2012 -- page 10

 Homer City's balance sheet at June 30, 2012, showed $1.24
billion in total assets, $1.71 billion in total liabilities and a $465
million partners' deficit.

The Company reported a net loss of $686 million in 2011,

compared with net income of $27 million in 2010.

* * *

In addition to the challenged companies mentioned in Mr.

Fernandez's report, the Troubled Company Reporter provides on-
going reporting about more than 3,000 companies experiencing
financial distress or restructuring their balance sheets in a judicial
proceeding. Stay tuned to learn more about obtaining a trial
subscription to the TCR at no cost or obligation.

Major Pending Disputes In Chapter 11 Cases

Next, we'll quickly review major pending disputes in large

chapter 11 cases that Troubled Company Reporter editors
monitor day-by-day.

Ivy Magdadaro provides updates on the various disputes

Lehman Brothers is involved in.

Ms. Magdadaro relates that in a Sept. 14 filing, the

bankruptcy estate of Lehman Brothers Holdings Inc. sued J.P.
Morgan Chase anew as the defunct investment bank seeks
rejection of more than $2.2 billion in derivatives obligations.
Lehman named seven other defendants.

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Beard Group Corporate Restructuring Review for September 2012 -- page 11

 In the 22-page complaint filed in Manhattan federal court,
Lehman said the claims are "overstated" and that they were
calculated based on "improper methodologies." The failed bank
added that the defendants never supplied supporting documents
for the claims.

"The JPMorgan entities' derivatives claims should be

reduced or disallowed," Lehman told the Court.

JPMorgan asserts a $2.2 million claim, which stemmed from

a derivatives deal with Lehman's special financing unit.

The lawsuit seeks unspecified damages and money owed to

Lehman by JPMorgan under the derivatives deal.

The derivatives claims also feature in Lehman’s $8.6 billion

lawsuit against JPMorgan filed in 2010. That suit alleges that the
New York-based lender helped cause Lehman’s bankruptcy by
taking collateral for its loans. JPMorgan was the main short-term
lender to Lehman at the time of its 2008 collapse during the credit
crisis.

In August, Lehman failed to persuade Bankruptcy Judge

James Peck to revise his ruling on the $8.6 billion suit. The judge
refused to reinstate certain claims in the lawsuit which might have
brought creditors hundreds of millions of dollars. He noted that
Lehman cannot claim money from JPMorgan for securities
transactions governed by the so-called safe harbor law. He said
Lehman has other ways of obtaining money from JPMorgan, such
as fighting JPMorgan’s payment demands.

JPMorgan has denied causing Lehman’s collapse. It loaned

Lehman about $70 billion in 2008. In a countersuit, JPMorgan is
fighting for more than $6.3 billion it says Lehman owes it. After
agreeing to give Lehman almost $700 million to settle part of the
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Beard Group Corporate Restructuring Review for September 2012 -- page 12

$8.6 billion suit, JPMorgan continues to fight most of Lehman’s
allegations.

In a separate billion-dollar lawsuit involving Barclays Plc, a

Lehman trustee continues to argue against the UK-based bank in
a Manhattan appeals court. In a brief filed with the appeals court
in the last week of September, James Giddens, the liquidating
trustee of Lehman’s broker unit, argued that there was denial of
due process when the broker business was sold to Barclays one
week after Lehman's bankruptcy filing in September 2008. Mr.
Giddens said that notions of due process were violated because
the parties changed material terms without bankruptcy court
approval.

The Lehman trustee is seeking to overturn a June 2012

ruling by U.S. District Judge Katherine B. Forrest who concluded
that Bankruptcy Judge James Peck was wrong in requiring
Barclays to pay $1.5 billion. Mr. Giddens is also asking the
Second Circuit to award him $4 billion in cash representing so-
called margin assets.

Mr. Giddens’ argument is grounded on a clarification letter

making up part of the sale contract. Judge Forrest concluded that
the letter amendment unambiguously entitled Barclays to receive
billions in cash margin assets even though the bankruptcy judge
was told that Barclays would acquire no cash.

Barclays is taking its own appeal, arguing that Judge Forrest

erred by not awarding an additional $1.276 billion in the UK
bank’s favor.

The Lehman holding company and the brokerage trustee

sued Barclays one year to the day after bankruptcy. The Lehman

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Beard Group Corporate Restructuring Review for September 2012 -- page 13

holding company lost on all its claims against Barclays and
ultimately did not appeal.

In a related development, around Sept. 25, the U.S.

Securities and Exchange Commission asked for permission to
intervene in Lehman’s appeal of the billion dollar award to
Barclays in relation to the Lehman broker unit sale. The SEC
asserted in a letter to the Second Circuit that it has the legal right
to participate in all cases involving a brokerage that’s being
liquidated under the Securities Investor Protection Act. The SEC
previously sided with the Lehman brokerage in district court,
saying that as long as there is a shortfall in what’s owed to clients,
Barclays has only a conditional claim on as much as $1.3 billion
reserved for customers.

Delayed Exits From Chapter 11

Julie Anne Lopez-Toledo reports about two Chapter 11

debtors whose emergence from Chapter 11 has been delayed:
Tribune Co. and WR Grace.

(A) Tribune Co.

In Tribune Co.'s pending Chapter 11 case, Law Debenture

Trust Co. of New York and Deutsche Bank Trust Co. filed a
statement of issues on appeal in connection with their appeal
from the July 23 order approving Tribune's Chapter 11 plan issued
by Delaware Bankruptcy Judge Kevin Carey.

In their statement, the bond trustees raised the issue of

whether the bankruptcy judge erred in confirming the plan, which
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Beard Group Corporate Restructuring Review for September 2012 -- page 14

they said, discriminates unfairly against senior bondholders in
violation of Section 1129(b)(l) of the Bankruptcy Code.

The bond trustees filed the appeal as well as a motion to

temporarily put on hold Judge Carey's July 23 order until a higher
court hears their appeal to review his decision. They complained
that the plan undercompensates senior bondholders relative to
other, similarly situated creditors.

The bond trustees are seeking to have their case heard by

the U.S. Court of Appeals for the Third Circuit in Philadelphia.

Judge Carey previously issued an order directing the bond

trustees to post a $1.5 billion bond for their appeal from the
Confirmation Order to proceed.

Aurelius Capital Management LP has argued before the

Court that the bonding requirement would make the appeal
"prohibitively expensive."

District Judge Gregory Sleet in Delaware affirmed Judge

Carey's ruling and held that requiring a $1.5 billion bond "was
appropriate." Judge Sleet also ruled that accelerating the appeal
"is not appropriate."

A three-judge panel with the Third Circuit ruled that junior

creditors of Tribune including Aurelius, that are challenging the
bankruptcy court's demand that they post a $1.5 billion bond to
stay the media giant's restructuring for an appeal can't contest the
order in an appeals court.

The appeals court, in a decision dated Sept. 10, said there

was no right to appeal.

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Beard Group Corporate Restructuring Review for September 2012 -- page 15

 The Third Circuit said it lacked jurisdiction to review Judge
Sleet's Aug. 27 decision denying Aurelius' request to modify a
bankruptcy court's prior appeal order.

With the latest Third Circuit ruling, Aurelius Capital failed in

what was its last reasonable chance of blocking Tribune from
implementing its reorganization plan, according to a Bloomberg
News article.

Tribune filed for bankruptcy four years ago.

(B) W.R. Grace

W.R. Grace & Co. issued a Form 8-K in September

announcing the company has been unable to achieve the
necessary waivers from Sealed Air and Fresenius in order to
proceed with emergence by year-end. Grace said it now
benchmarks emergence by the end of 2013.

W.R. Grace filed for Chapter 11 bankruptcy in April 2001,

weighed down by asbestos-related claims. A district court
approved its reorganization plan earlier this year, clearing a major
hurdle for it to emerge from bankruptcy protection.

The plan was reaffirmed in June but eight parties filed

notices of appeal before a July 11 deadline.

* * *

The Troubled Company Reporter provides detailed reporting

about every chapter 11 filing nationwide. Stay tuned to learn more
about obtaining a trial subscription to the TCR at no cost or
obligation.
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Beard Group Corporate Restructuring Review for September 2012 -- page 16

 New Publicly Traded Securities

There were five companies who issued or will issue shares

of new common stock upon emergence pursuant to the plans of
reorganization they filed in their Chapter 11 cases in September
2012. These are: Dynegy Inc./Dynegy Holdings, CDEX, Omega
Navigation, Global Aviation, Contec Holdings.

(A) Dynegy

A U.S. Bankruptcy Court confirmed the Joint Chapter 11

Plan of Reorganization for Dynegy and Dynegy Holdings. The
Company announced its intentions to emerge from Chapter 11
protection on or prior to October 1, 2012. Prior to emergence,
Dynegy Holdings will merge with and into Dynegy Inc. with
Dynegy Inc. being the surviving company.

The Plan substantially strengthens Dynegy's balance sheet

by converting approximately $4 billion of senior and subordinated
debt into equity. Dynegy is seeking to have the common stock
and warrants that will be issued pursuant to the Plan listed on the
New York Stock Exchange.

(B) CDEX

A U.S. Bankruptcy Court confirmed CDEX's Plan of

Reorganization, which will allow the Company to utilize the capital
contributions from new investors to finalize the development and

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Beard Group Corporate Restructuring Review for September 2012 -- page 17

independent testing of its ValiMed G4 drug validation system and
to complete production of our products for sale.

According to documents filed with the SEC, as part of the

Plan, CDEX will implement the 1 for 10 Reverse Stock Split of the
old CDEX Common Stock, such that each 10 shares shall,
following the reverse stock split, be consolidated into one (1)
share of new common stock.

All existing warrants to purchase shares of old CDEX

common stock will be extinguished upon consummation of the
Plan. When the Plan becomes effective, all 10% Convertible
Notes, and any other notes, bonds, indentures or other
instruments or documents evidencing or creating any
indebtedness or obligations of the Debtor will be cancelled.

(C) Omega Navigation

Omega Navigation Enterprises filed a First Amended Joint

Plan of Reorganization and related Disclosure Statement.

The key components of the Plan are as follows:

-- payment in full of all Allowed Administrative Expenses,

Priority Tax Claims and Priority Non-Tax Claims;

-- a new value equity investment of $2,500,000 or

$2,600,000, and replacement of the Old Senior Facilities
Agreement with the New Facilities Agreement, which will include
a Working Capital Tranche of up to $7,500,000 to be used for
Working Capital Purposes, all of which will provide the Debtors
with critical cash to operate their business after the Effective Date;

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Beard Group Corporate Restructuring Review for September 2012 -- page 18

 -- the opportunity for Junior Lenders (if they accept the Plan)
and Holders of Allowed General Unsecured Claims to participate
in a Rights Offering at the same price as the new value equity
investment;

-- as to (and only as to) each Holder of an Allowed General

Unsecured Claim who accepts the Plan and is in a Class that
accepts the Plan, the payment to such Holder of its Pro Rata
share of $300,000;

-- and the pursuit of the Consensual Wind-Down as to the

Vessels in the event a Consensual Wind-Down Trigger occurs,
including the failure of the Plan to be confirmed by November
[16], 2012 or the failure of the Plan Effective Date to occur by
November [27], 2012 or the failure of the Consummation Date to
occur by December 31, 2012.

(D) Global Aviation

Global Aviation Holdings filed with a Joint Chapter 11 Plan

and related Disclosure Statement. Treatment under the Plan
includes the following:

-- Each Holder of such Claims arising under that certain

Indenture dated as of August 13, 2009 whose claims total
approximately $111.4 million, will receive a Pro Rata distribution
of: (i) the remaining New First Lien Loan after satisfaction of the
DIP Claims; (ii) new second lien debt of $40 million, with a 5-year
term and an interest rate of 3% per annum, with an option for
cash pay or pay-in-kind and (iii) 100% of the new common stock
of Reorganized Global Aviation subject to dilution for distributions
of New Common Stock under Reorganized Global Aviation's
Management Equity Incentive Plan and Employee Incentive
Equity Plan;
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Beard Group Corporate Restructuring Review for September 2012 -- page 19

 -- Holders of Second Lien Claims will not receive any
distribution;

-- Holders of General Unsecured Claims will not receive any

distribution;

-- On the Effective Date, all General Unsecured Claims will

be cancelled and discharged;

-- No distribution will be made on account of Intercompany

Claims;

-- All equity interests in Global Aviation will be cancelled or

extinguished on the Effective Date.

(E) Contec Holdings

Contec Holdings Ltd . plans a speedy trip through

bankruptcy with a debt-for-equity swap that will displace the
private-equity firm and leave banks in charge. The cable-box
repair company has votes already in place to carry its balance-
sheet revamping through the courts, erasing most of its $360
million in debt.

The plan calls for lenders led by units of Barclays PLC to

take ownership of the restructured company plus $27.5 million in
new debt. Subordinated debt holders will get warrants.

Judge Kevin Carey approved orders allowing Contec to tap

up to $20 million of a $35 million bankruptcy loan, freeing up cash
to keep the company operating while it completes its Chapter 11
restructuring.

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Beard Group Corporate Restructuring Review for September 2012 -- page 20

 Barclays, the agent on the bankruptcy loan, is getting an
undisclosed fee for the financing, which carries $900,000 of
disclosed fees and interest at the London Interbank Offered Rate
plus 9%.

* * *

That ends the Beard Group Corporate Restructuring Review

for September 2012, brought to you by the editors of the Troubled
Company Reporter and Troubled Company Prospector. If you'd
like to receive the Troubled Company Reporter for 30-days at no
cost -- and with no strings attached -- call Nina Novak at (240)
629-3300 or visit bankrupt-dot-com-slash-free-trial and we'll add
you to the distribution list. That telephone number, again, is (240)
629-3300 and that Web site address, again, is bankrupt-dot-com-
slash-free-trial.

Tune in to our next monthly Restructuring Review on

November 16th. Thank you for listening.

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Beard Group Corporate Restructuring Review for September 2012 -- page 21