/raid1/www/Hosts/bankrupt/TCR_Public/140717.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, July 17, 2014, Vol. 18, No. 197
Headlines
3586 BOSTON ROAD: Case Summary & Unsecured Creditor
ACADIA INVESTMENTS: Court Approves $4,815 in Attorney's Fees
ALL MY CHILDREN: Case Summary & 12 Largest Unsecured Creditors
ALLIED IRISH: Appoints Richard Pym as New Chairman
BONANZA CREEK: S&P Rates Proposed Unsecured Notes Due 2022 'B-'
CARDTRONICS INC: Moody's Rates $250MM Notes Ba3 & Affirms Ba2 CFR
CLEAN BURN: May Recoup $193,500 From Sampson-Bladen
COLDWATER CREEK: SoHo Office, Distribution Center Leases For Sale
CONNIE STEVENS: Los Angeles Home on the Market for $18.5 Million
CRANBROOK HOLDINGS: 998-Unit Houston Apartment to Be Sold July 30
COPYTELE INC: Hearing Set on August 8 in Microsoft Patent Suits
CUBIC ENERGY: Has Forbearance Agreement with Senior Noteholders
CRUMBS BAKE SHOP: Shuts Down Operations for Lack of Liquidity
DELTA RIDGE: Case Summary & 4 Largest Unsecured Creditors
DOTS LLC: Hires Trenk DiPasquale as Special Co-counsel
DVORKIN HOLDINGS: Popowcer Katten Approved as Trustee Accountant
EDUARDO RUIZ VALENTIN: Banco Popular Wins Stay Relief
ELBIT IMAGING: Plaza Centers Appoints New Board Members
ENERGY FUTURE: Creditors Slam 'Extremely Limited' Records
ESSAR STEEL: Chapter 15 Case Summary
EXIDE TECHNOLOGIES: Reaches Deal with UNC for $65MM in Add'l Loans
EXIDE TECHNOLOGIES: Seeks OK of Premium Financing Deal with AFCO
FERRETERIA Y AGROCENTRO: Case Summary & 20 Top Unsec. Creditors
FIRED UP: Gets Final Order to Pay Critical Vendor Claims
FLETCHER INT'L: Equitable Subordination of Turner Claim Stands
FREE LANCE-STAR: Buyer Wants Creditor Panel Disbanded
FURNITURE BRANDS: Insurers Object to Liquidation Plan
FUTUREGEN COMPANY: D.C. Court Appoints Receiver
GENERAL MOTORS: Rusting Brake Lines Don't Make Cut in Recalls
GILES-JORDAN: Galveston Shores Wants Automatic Stay Lifted
GRIDWAY ENERGY: Asks Court to Extend Lease Decision Deadline
GROUP HEALTH: S&P Affirms 'BB+' Rating & Revises Outlook to Pos.
GSE ENVIRONMENTAL: Seeks Authority to Pay Bank of America Costs
HAITIAN FIRST CHURCH: Case Summary & Largest Unsecured Creditor
HOSTESS BRANDS: Aug. 5 Hearing on Estimation of Washington Claim
HOSTESS BRANDS: Authorized to Reject Contracts and Leases
INVENTIV HEALTH: S&P Revises Outlook & Rates $507MM Notes 'CCC+'
JOHN Q. HAMMONS: Partner Interests in Hotel to Be Sold Aug. 5
LIFE UNIFORM: Wants to Sell Rights to Class Action Recoveries
LIGHTSQUARED INC: To File New Chapter 11 Exit Plan
LIGHTSQUARED INC: Harbinger Again Dodges Class Claims
LIGHTSQUARED INC: Seeks Approval of SunTrust Credit Card Program
LIGHTSQUARED INC: Has Access to Cash Collateral Until July 21
MEDIA SERVICES: Court Dismisses "Miller" Lawsuit
MISSION NEW ENERGY: Awaits Final Ruling on Aborted Joint Venture
MOSS FAMILY: AAK's Motion to Withdraw as POA Counsel Denied
MOSS FAMILY: POA Says Compromise to Impair Interest in Property
NATIVE WHOLESALE: Case Conversion Hearing Moved to July 28
NAUTILUS HOLDINGS: Sec. 341 Creditors' Meeting Set for Aug. 12
NEUMA INC: Case Summary & 4 Largest Unsecured Creditors
NEW MILLENNIUM MANAGEMENT: Chapter 7 Trustee Can Hire Auctioneer
NEW YORK CITY OPERA: Suitor Wants Board Removed From Ch. 11 Sale
NEWLEAD HOLDINGS: Ironridge Requests Add'l 35.1MM Common Shares
NUTRITION 21: Court Rules on Walgreen's Chargeback Claims
PHI GROUP: Amends Form 10-Q for Sept. 30, 2012 Quarter
PHILLIPS INVESTMENTS: Files Schedules of Assets and Liabilities
PHILLIPS INVESTMENTS: Has Until Aug. 5 to Use Cash Collateral
PINAFORE HOLDINGS: S&P Withdraws 'B+' Corp. Credit Rating
PINNACLE ENTERTAINMENT: Fitch Affirms 'B+' IDR; Outlook Stable
PINNACLE FOODS: S&P Affirms 'B+' CCR & Removes From Watch Positive
PSL-NORTH AMERICA: Creditor Balks At $100M Sale Plan
RESTORGENEX CORP: Closes $200,00 Private Placement
REVEL AC: Restaurant Owners Demand Role in Bankruptcy Sale
REVEL AC: Hires Winter Harbor to Provide Shaun Martin as CRO
REVEL AC: Taps Moelis & Company as Financial Advisor
REVEL AC: Hires AlixPartners as Administrative Agent
REVEL AC: Wants to Hire White & Case as Attorneys
REVEL AC: Hires Fox Rothschild as Attorneys
REVEL AC: Creditors' Panel Taps Cole Schotz as Counsel
RG STEEL: Gets Court Approval to Settle Dispute With Severstal
RG STEEL: Gets Court Approval to Settle Dispute With Monarch
ROLTA AMERICAS: Fitch Assigns 'BB-(EXP)' Rating on New USD Notes
SETTLERS' HOUSING: Judge Narrows Suit Against Schaumburg Bank
SMITHS' INCORPORATED: Case Summary & Unsecured Creditor
SOLAR POWER: Authorized Common Shares Hiked to 1 Billion
SPENDSMART NETWORKS: Alex Minicucci Holds 25.6% Equity Stake
ST. ANDREWS HARBOR: Case Summary & 2 Unsecured Creditors
STAR DYNAMICS: Court Approves Stipulation with Israel Government
STAR DYNAMICS: Asks Court for 90-Day Exclusive Periods Extension
STAR DYNAMICS: Asks Court to Extend Lease Decision Period
STHI HOLDING: S&P Assigns 'B' Rating on $490MM 1st Lien Loan
STOCKTON, CA: Franklin, CalPERS Clash on City's Pension Issue
T-L CONYERS: Hearing Today on Further Interim Access to Cash
TEE INVESTMENT: Court Approves Payment of Remaining Claims
TEXAS INDUSTRIES: S&P Raises Corp. Credit Rating From 'B-'
TWEETER HOME: Ch. 7 Conversion Request Denied
USEC INC: UT-Battelle Deal Amended; Funding Raised to $21.3MM
USEC INC: Aug. 11 Special Bar Date for Securities-Related Claims
USS PARENT: S&P Assigns 'B' Corp. Credit Rating; Outlook Stable
WALTER ENERGY: Issued $320 Million of Senior Secured Notes
YMCA OF MILWAUKEE: Panel Hires Goldstein & McClintock as Counsel
* Undistributed Money Goes to Creditors in Aborted Chapter 13
* U.S. Scrutiny for Banks Shifts to Commerzbank and Germany
* Argentina Says High Court Ruling Isn't Win for NML Capital
* China Should Let More Ailing Firms Fail, Banking Governor Says
* Leading Litigators Join Chicago Office of DLA Piper
* Recent Small-Dollar & Individual Chapter 11 Filings
*********
3586 BOSTON ROAD: Case Summary & Unsecured Creditor
---------------------------------------------------
Debtor: 3586 Boston Road Realty Corp.
3586 Boston Road
Bronx, NY 10469
Case No.: 14-12080
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: July 16, 2014
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Stuart M. Bernstein
Debtor's Counsel: Joshua N. Bleichman, Esq.
BLEICHMAN & KLEIN
268 Route 59
Spring Valley, NY 10977
Tel: (845) 425-2510
Fax: (845) 425-7362
Email: bleichmanklein@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Samuel Miller, sole shareholder.
The Debtor listed Samuel Miller, at 16 Balmoral Dr, Spring Valley,
in New York, as its largest unsecured creditor holding a claim of
$1.9 million.
A copy of the petition is available for free at:
http://bankrupt.com/misc/nysb14-12080.pdf
AC I INV MANAHAWKIN: Section 341(a) Meeting Held July 15
--------------------------------------------------------
The U.S. Trustee for Region 2 convened a meeting of creditors of
AC I Inv Manahawkin LLC and its affiliates on July 15, 2014.
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.
AC I Inv Manahawkin LLC, AC I Manahawkin Mezz LLC and AC I
Manahawkin LLC filed separate Chapter 11 bankruptcy petitions
(Bankr. S.D.N.Y. Case Nos. 14-22791, 14-22792 and 14-22793) on
June 4, 2014. The petitions were signed by David Goldwasser, of
GC Realty Advisors LLC, managing member. The Debtors estimated
assets of $50 million to $100 million and debts of $0 to $50
million. Robinson Brog Leinwand Greene Genovese & Gluck, P.C.,
serves as the Debtors' counsel. Judge Robert D. Drain presides
over the cases.
Affiliates of AC I Inv., et al., have pending bankruptcy cases
before Judge Drain. NY Affordable Housing Albany Assocs. LLC
sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 13-20007)
on July 26, 2013. First Bronx LLC sought bankruptcy protection
(Bankr. S.D.N.Y. Case NO. 14-22047) on Jan. 13, 2014. Ollie Allen
Holding Company LLC sought bankruptcy (Case NO. 14-22204) on Feb.
18, 2014.
ACADIA INVESTMENTS: Court Approves $4,815 in Attorney's Fees
------------------------------------------------------------
Acadia Investments, L.C., asks the Bankruptcy Court in Alexandria,
Virginia, for attorney's fees in connection with its successful
motion to compel discovery in the case, ACADIA INVESTMENTS, L.C.,
Plaintiff, v. UBS REAL ESTATE OPPORTUNITY FUND III, L.L.C., et
al., Defendants, Adv. Proc. No. 13-1189 (Bankr. E.D. Va.). Acadia
filed the adversary proceeding on July 11, 2013, seeking recovery
of about $1 million from UBS Real Estate Opportunity Fund III,
L.L.C.
Acadia requests $28,748.95 for prosecuting the motion to compel.
According to Bankruptcy Judge Robert G. Mayer, while an award of
attorney's fees is appropriate, the amount requested is excessive.
He said counsel's hourly rate is "outside the reasonable range in
this community for the services provided and some of the time
expended was unnecessary." Judge Mayer said the appropriate
amount of attorney's fees in this case for the motion to compel is
$4,815.
A copy of the Court's July 3, 2014 Memorandum Opinion is available
at http://is.gd/PU0p1Ofrom Leagle.com.
Acadia Investments L.C. is a family-owned investment company that
had borrowed significant amounts to fund its investments. The
economic conditions around 2008 caused Acadia to have financial
difficulties and become in default of its loans. It filed a
voluntary petition in bankruptcy (Bankr. E.D. Va. Case No.
11-12591) on April 7, 2011 and was successful in confirming a plan
of reorganization on December 28, 2012.
Janet Nesse, Esq., at Stinson Morrison & Hecker, served as the
Debtor's counsel. In its petition, Acadia estimated $50,001 to
$100,000 in assets and $10 million to $50 million in liabilities.
A copy of the Company's 20 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/vaeb11-12591.pdf The petition was signed
by Loren W. Hershey, managing member.
ALL MY CHILDREN: Case Summary & 12 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: All My Children Academy I & II, Inc.
2061 N. Dixie Highway
Pompano Beach, FL 33060-4957
Case No.: 14-26053
Chapter 11 Petition Date: July 15, 2014
Court: United States Bankruptcy Court
Southern District of Florida (Fort Lauderdale)
Judge: Hon. Raymond B Ray
Debtor's Counsel: Sherri B. Simpson, Esq.
SHERRI B. SIMPSON, P.A.
507 SE 11 Court
Ft. Lauderdale, FL 33316
Tel: 954.524.4141
Fax: 954.763.5117
Email: sbsecf@gmail.com
sbsimpson@simpson-law-group.com
Total Assets: $1 million
Total Liabilities: $797,635
The petition was signed by Patricia Williams-Thompson, president.
A list of the Debtor's 12 largest unsecured creditors is available
for free at http://bankrupt.com/misc/flsb14-26053.pdf
ALLIED IRISH: Appoints Richard Pym as New Chairman
--------------------------------------------------
Allied Irish Banks, p.l.c., announced that Mr. Richard Pym (64)
will be appointed to the Board as Non-Executive Director and
Chairman Designate effective from Oct. 13, 2014. The current
Chairman, Mr. David Hodgkinson, will retire from the Board in
December 2014.
Mr. Richard is a Chartered Accountant with extensive experience in
financial services and has held a series of senior roles,
including as former group chief executive of Alliance & Leicester
plc. He is currently Chairman of The Co-operative Bank plc,
Nordax Finans AB, and UK Asset Resolution Limited1. Richard has
already announced that he will be standing down as Chairman of The
Co-operative Bank later this year. Richard is a former Chairman
of the BrightHouse Group plc, Halfords Group plc and The Co-
operative Banking Group, and a former non-executive director of
The British Land Company plc, Old Mutual plc and Selfridges plc.
Richard said, "I am delighted to accept the invitation to be the
next Chairman of AIB and I look forward to contributing to the
progress that has already been made in re-building a strong bank.
Irish taxpayers have made considerable sacrifices in supporting
the banking system and I am very conscious of my responsibilities
in that regard."
David Hodgkinson welcomed Richard's upcoming appointment and said,
"I am delighted we have been able to select a candidate of
Richard's capability and experience, to guide AIB on the next
phase of its journey as a vital component of Ireland's economic
infrastructure. It has been a privilege for me to serve in such
an important role in the restructuring of the bank, and to work
with a group of people dedicated to meeting a significant
challenge in difficult circumstances."
Chief Executive David Duffy, in welcoming Richard, said he wanted
to place on record the Bank's thanks to David Hodgkinson for his
work over the last four years, notwithstanding the fact that David
will be staying on with AIB until December. "David deserves
immense credit for his determination in helping AIB to recover and
stabilise. He joined the bank as Chairman at a time of extreme
crisis and has led the company through a turbulent and difficult
time. I have worked closely with him since I joined AIB in
December 2011 and deeply appreciate his support since then. AIB
welcomes Richard to the bank and we look forward to working with
him as we build for the future," the chief executive said.
About Allied Irish Banks
Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a
major commercial bank based in Ireland. It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin. AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).
Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.
As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares. On
April 8, 2011, the NPRFC converted the total outstanding amount of
CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.
In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.
Allied Irish reported a loss of EUR1.59 billion in 2013, a loss of
EUR3.55 billion in 2012 and a net loss of EUR2.32 billion in 2011.
At Dec. 31, 2013, the Company had EUR117.73 billion in total
assets, EUR107.24 billion in total liabilities and EUR10.49
billion in total shareholders' equity.
BONANZA CREEK: S&P Rates Proposed Unsecured Notes Due 2022 'B-'
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' issue-level
rating (one notch lower than the corporate credit rating) to
Denver-based Bonanza Creek Energy Inc.'s proposed senior unsecured
notes due 2022. The recovery rating on the notes is '5',
indicating S&P's expectation of modest (10% to 30%) recovery for
unsecured noteholders in the event of a payment default.
Numerically, the recovery outcome on the company's unsecured debt
is slightly less than 10%, which is the low threshold for the '5'
recovery rating. However, the recovery expectation is sensitive
to small changes in the valuation, and the '5' recovery rating
reflects S&P's expectation that the company's reserve valuation
will increase in the near term, supported by its aggressive
drilling program and liquidity to fund the capital spending.
S&P expects proceeds from the proposed note to be used to repay
outstanding borrowings on the company's credit facility and for
general corporate purposes.
The 'B' corporate credit rating remains unchanged. The outlook is
stable.
"The ratings on Bonanza Creek Energy Inc. reflect our assessment
of the company's "vulnerable" business risk, "aggressive"
financial risk profile, and "adequate" liquidity," said Standard &
Poor's credit analyst Susan Ding. "These assessments reflect
Bonanza's small asset base and production levels, lack of
geographical diversification, aggressive growth strategy, spending
levels in excess of projected operating cash flows, and
participation in the highly cyclical and capital-intensive oil and
gas industry."
Ratings List
Bonanza Creek Energy Inc.
Corporate credit rating B/Stable/--
New Rating
Bonanza Creek Energy Inc.
Senior unsecured notes due 2022 B-
Recovery rating 5
CARDTRONICS INC: Moody's Rates $250MM Notes Ba3 & Affirms Ba2 CFR
-----------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to Cardtronics,
Inc.'s proposed $250 million senior unsecured notes due 2022.
In addition, Moody's affirmed the company's Ba2 Corporate Family
Rating ("CFR"), Ba2-PD Probability of Default Rating ("PDR") and
SGL-1 Speculative Grade Liquidity rating. The rating outlook
remains stable.
Proceeds from the proposed bond offering will be used to fund the
tender offer for the company's existing $180 million(outstanding)
senior subordinated notes due 2018, for general corporate purposes
and to pay fees and expenses associated with the transaction. LGD
point estimates are subject to change and all ratings are subject
to the execution of the transaction as currently proposed and
Moody's review of final documentation.
The affirmation of the Ba2 CFR reflects the fact that the proposed
transaction only modestly increases Cardtronics' leverage on a
debt to EBITDA basis (Moody's adjusted) to about 2.9 times from
about 2.7 times (for the LTM period ended March 31, 2014).
The following summarizes the rating activity:
Issuer: Cardtronics, Inc.
Ratings affirmed:
Corporate Family Rating at Ba2
Probability of Default Rating at Ba2-PD
Speculative Grade Liquidity Rating at SGL-1
Ratings assigned:
Proposed $250 million Senior Unsecured Notes due 2022 at Ba3
(LGD4, 67%)
Ratings to be withdrawn at close of the tender transaction:
$180 million (outstanding) senior subordinated notes due 2018 at
B1 (LGD 5, 88%)
The rating outlook is stable.
Ratings Rationale
Cardtronics' Ba2 Corporate Family Rating ("CFR") reflects its
established market position as the world's largest retail ATM
owner, its predictable operating cash flow derived from
transactions-based revenues and track record of strong EBITDA
growth. The rating incorporates Moody's expectations that the
company's leverage (on a Moody's adjusted debt to EBITDA basis)
will approach 2.0 times and free cash flow as a percentage of debt
will be in excess of 15% in the next 12 to 18 months. The rating
also acknowledges the fact that Cardtronics' ATM transactions
growth has outpaced the nearly stagnant levels of cash used in
payment transactions in the U.S., largely due to growth in ATMs
under its bank-branding arrangements and the Allpoint network
(owned by Cardtronics), both of which generated higher levels of
ATM transactions. The company's growing scale and investments in
infrastructure provide operating leverage that should allow it to
mitigate some of the impact of competitive challenges, potential
declines in ATM interchange rates, or lower than expected
increases in surcharge fee rates.
In Moody's opinion, the key long term risk to Cardtronics' ratings
is the limited growth prospects for cash-based transactions owing
to the secular shift to electronic and mobile-based payments. As a
result, Moody's believe that the company will be increasingly
challenged to sustain its current organic revenue growth rates in
the high single digit percentages over the long term. The Ba2
rating additionally considers Cardtronics' business risks
resulting from its concentrated customer revenue profile, interest
rate exposure (as it relates to the fees for vault cash), highly
competitive industry, and uncertainties over the intermediate to
long term regarding the company's ability to maintain ATM
surcharge fee and interchange fee rates (in the various
jurisdictions in which it operates).
Cardtronics' SGL-1 speculative grade liquidity rating reflects
Moody's expectations that the company will maintain a very good
liquidity profile over the next 12 to 18 months, supported by
healthy cash flow generation, ample balance sheet cash, an
improved debt maturity profile (as a result of the proposed
transaction) and good availability under the recently amended and
extended revolving credit facility, which now matures in April
2019.
The Ba3 rating for the proposed $250 million senior unsecured
notes reflects both the overall probability of default for
Cardtronics, to which Moody's rates Ba2-PD and a loss given
default assessment of LGD4. Furthermore, the rating of the
proposed senior unsecured notes (Ba3), one notch below the
corporate family rating, reflects the fact that these notes will
be effectively subordinated to the existing $375 million senior
secured revolving credit facility. The issuer is Cardtronics, Inc.
and the proposed notes are guaranteed on a senior unsecured basis
by substantially all domestic subsidiaries.
The stable outlook reflects Moody's expectations that Cardtronics'
revenues will grow in the mid to high single digit percentage
range over the next 12 to 18 months (excluding acquisitions), and
that total debt to EBITDA leverage will approach 2.0 times over
this period through EBITDA growth and debt repayment.
Moody's could downgrade Cardtronics' ratings if the company
experiences challenges in growing EBITDA or if EBITDA margins
deteriorate as a result of an organic decline in ATM transactions
or increased usage of non-cash/electronic payment methods or
technologies. In addition, any material adverse impact from
changes in the regulatory environment or the loss of a large
customer(s) could also trigger a ratings downgrade. Furthermore,
aggressive fiscal policies or transformative acquisitions that
increase execution risk could pressure the ratings. Specifically,
Moody's could lower Cardtronics' ratings if the company is unable
to maintain total debt to EBITDA (Moody's adjusted) below 2.5
times and free cash flow weakens to below the mid-teens percentage
of total debt for a protracted time period.
Given the mature growth prospects for the ATM industry in the long
term, and absent meaningful improvements in Cardtronics' business
risk profile, notably through increased scale, higher levels of
operating cash flow and greater product diversity, a ratings
upgrade is unlikely. Additional upward rating triggers include a
track record of growth in free cash flow driven by revenue growth
and management's commitment to maintain debt-to-EBITDA leverage
below 2.0 times (Moody's adjusted), including potential increases
in debt to finance acquisitions.
The principal methodology used in this rating was the Global
Business & Consumer Service Industry Rating Methodology published
in October 2010. Other methodologies used include Loss Given
Default for Speculative-Grade Non-Financial Companies in the U.S.,
Canada and EMEA published in June 2009.
Headquartered in Houston, TX, Cardtronics is the world's largest
non-bank owner of ATMs. The company reported about $924 million in
revenue for the twelve months ended March 31, 2014.
CLEAN BURN: May Recoup $193,500 From Sampson-Bladen
---------------------------------------------------
Sara A. Conti, Chapter 7 Trustee for Clean Burn Fuels, LLC,
Plaintiff, v. Sampson-Bladen Oil Company, Inc., Defendant, Adv.
Proc. No. 12-9081 (Bankr. M.D.N.C.), seeks to recover payments in
the aggregate amount of $194,016.64 made by Clean Burn Fuels, LLC
to the Defendant within 90 days prior to the commencement of the
Chapter 11 case as preferential transfers pursuant to sections 547
and 550 of the Bankruptcy Code. Sampson-Bladen concedes that the
two payments are preferential transfers pursuant to section 547
(b), but contends that the payments fall within the "ordinary
course of business" and "ordinary business terms" exceptions
provided in section 547 (c) (2) and, therefore, may not be avoided
by the Plaintiff.
On April 22, 2014, the Court held a hearing on the Plaintiff's
Motion for Summary Judgment and the Plaintiff's Motion in Limine
to Exclude Defendant's Expert Report.
In an July 1, 2014 Memorandum Opinion available at
http://is.gd/GchCwVfrom Leagle.com, Bankruptcy Judge William L.
Stocks ruled that the payments made on March 9 and March 22, 2011,
by the Debtor were preferential under section 547(b).
"The undisputed facts establish that the March 9 payment of
$193,534.92 was not made in the ordinary course of business under
section 547 (c) (2) (A) and the evidence relied upon by the
Defendant is insufficient to raise a jury issue as to whether such
payment was made according to ordinary business terms under
section 547(c) (2) (B). The Plaintiff therefore is entitled to
summary judgment as to the $193,534.92 payment adjudging that such
payment is an avoidable transfer and that the Plaintiff may
recover the amount of such payment from the Defendant for the
benefit of the bankruptcy estate pursuant to section 550 of the
Bankruptcy Code. Because there is evidence that would support a
finding that the March 22 payment of $481.72 was made in the
ordinary course of business, the court will deny the Plaintiff's
motion for summary judgment with respect to the $481.72 payment,"
the Court ruled.
The Court said it will enter a separate order with respect to the
Plaintiff's motion in limine.
About Clean Burn Fuels
Founded in 2005, Clean Burn Fuels LLC was the first company to
produce ethanol in North Carolina. It completed the construction
of its ethanol plant in Raeford, North Carolina, in August 2010
and started producing and selling ethanol and dried distillers
grains with solubles (DDGS) shortly thereafter.
Clean Burn filed for Chapter 11 bankruptcy protection (Bankr.
M.D.N.C. Case No. 11-80562) on April 3, 2011. John A. Northen,
Esq., at Northen Blue, L.L.P., in Chapel Hill, N.C., represented
the Debtor. Anderson Bauman Tourtellot Vos & Co. served as
financial consultant and chief restructuring officer. Smith,
Anderson, Blount, Dorsett, Mitchell & Jernigan, LLP served as
special counsel to assist the Debtor in its state court litigation
matters, including various lawsuits pending in Hoke County, North
Carolina. The Debtor disclosed $79,516,062 in assets and
$79,218,681 in liabilities as of the Chapter 11 filing.
The Debtor lost its assets when the bankruptcy court in Durham,
North Carolina permitted foreclosure in July 2011. The
foreclosing lender was Cape Fear Farm Credit ACA, owed $66
million. In January 2012, the bankruptcy court appointed a
Chapter 11 trustee.
Sara A. Conti, Chapter 11 trustee for the Debtor, tapped Northen
Blue as special counsel. Charles M. Ivey, Esq., at Ivey McClellan
Gatton, in Greensboro, N.C., represented the Creditors' Committee
as counsel.
In September 2012, the case was converted to Chapter 7 and Ms.
Conti was named Chapter 7 trustee.
COLDWATER CREEK: SoHo Office, Distribution Center Leases For Sale
-----------------------------------------------------------------
Hilco Real Estate is selling former Coldwater Creek real estate
leases. These are:
-- 12,000 square feet on the third floor
Prime SoHo Office space
575 Broadway (@Prince St.)
New York, NY
Lease term through September 2019
-- state-of-the-art 960,000 square feet
facility on 60 acres
Distribution/Fulfillment Center
601 Coldwater Creek Dr.
Mineral Wells, WV
Fully equipped, lease term through 2026
For more information, contact:
Hilco Real Estate
Tel: 847-418-2723
E-mail: jschneider@HilcoGlobal.com
On the Net: HilcoRealEstate.com/Coldwater
About Coldwater Creek
Coldwater Creek is a multi-channel retailer that offers its
merchandise through retail stores across the country, its catalog
and its e-commerce Web site, http://www.coldwatercreek.com/
Originally founded in Sandpoint, Idaho in 1984 as a direct,
catalog-based marketer, Coldwater evolved into a multi-channel
specialty retailer operating 334 premium retail stores, 31 factory
outlet stores and seven day spa locations throughout the United
States.
As of the bankruptcy filing, the Debtors domestically employ a
total of approximately 5,990 employees throughout their retail
locations, corporate headquarters and distribution, design and
call centers.
Coldwater Creek Inc. and its debtor-affiliates sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10867) on
April 11, 2014, to liquidate their assets.
Coldwater Creek Inc. disclosed assets of $721,468,388 plus
undetermined amount and liabilities of $425,475,739 plus
undetermined amount. Affiliate Coldwater Creek U.S. Inc.
estimated $100 million to $500 million in assets and liabilities.
The Debtors have drawn $37.5 million and have approximately
$10 million in letters of credit outstanding under a senior
secured credit facility (ABL facility) provided by lenders led by
Wells Fargo Bank, National Association, as agent. The Debtors
also owe $96 million, which includes accrued interest and
approximately $23 million representing a prepayment premium
payable, under a term loan from lenders led by CC Holding Agency
Corporation, as agent. Aside from the funded debt, the Debtors
have accumulated a significant amount of accrued and unpaid trade
and other unsecured debt in the normal course of their business.
The Debtors have tapped Young Conaway Stargatt & Taylor, LLP, and
Shearman & Sterling LLP as attorneys, Perella Weinberg Partners LP
as financial advisor, Alvarez & Marsal as restructuring advisor,
and Prime Clerk LLC as claims and noticing agent.
The U.S. Trustee for Region Three named seven creditors to serve
on the official committee of unsecured creditors. Lowenstein
Sandler LLP represent the Committee.
CONNIE STEVENS: Los Angeles Home on the Market for $18.5 Million
----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Connie Stevens, the bankrupt actress and singer
popular in the 1960s, is selling her Los Angeles home for $18.5
million after filing under Chapter 11 last month.
According to the report, the 12,500-square-foot home has a pool,
pool house, spa, two one-bedroom guest houses and apartments for
servants, all situated on two acres in what the broker calls
"prime Holmby Hills." Stevens is in the process of obtaining
court permission to hire Coldwell Banker as the broker, to receive
a 4 percent fee if the property is sold, the report related.
The case is In re Connie Stevens, 14-bk-21156, U.S. Bankruptcy
Court, Central District of California (Los Angeles).
CRANBROOK HOLDINGS: 998-Unit Houston Apartment to Be Sold July 30
-----------------------------------------------------------------
Redwood Real Estate Partners is selling 100% of the limited
liability company interests in each of Cranbrook Timbers LLC,
Cranbrook Polo Club LLC and Cranbrook Monticello LLC, in a
foreclosure sale set for July 30, 2014.
The Cranbrook entities' assets will be offered for sale in bulk at
a public auction to be held 10:00 a.m. Central Time at the law
offices of Daspin& Aument LLP, located at 227 W. Monroe St., S.
3500, Chicago, IL 60606.
The principal assets of the Cranbrook entities is a "998-unit
multi-family apartment complex located at 13913, 14000 and 14531
Ela in unicrp. Houston, Texas."
The sale is held to enforce the rights of Massandra Capital LLC,
the secured party under a Mezzanine Loan Agreement dated May 10,
2012, executed by Cranbrook Holdings management LLC, as pledgor
and debtor.
The collateral will be sold only to "qualified bidders" on an "as
is, where is" basis.
Massandra Capital reserves the right to reject any or all bids and
terminate or adjourn the sale to another time. It also reserves
the right to credit bid at the sale, without cash as required of
other bidders, and modify, waive or amend any terms and conditions
of, or impose any other terms or conditions on, the sale.
Additional information may be obtained from:
John McLaughlin
REDWOOD REAL ESTATE PARTNERS
30342 Esperanza
Rancho Santa Margarita, CA 92688
Tel: 949-800-8006
E-mail: jmc@redwoodre.com
COPYTELE INC: Hearing Set on August 8 in Microsoft Patent Suits
---------------------------------------------------------------
CopyTele, Inc., announced that the U.S. District Court for the
Eastern District of New York has scheduled a claims construction
hearing on Aug. 8, 2014, at 11:30 a.m., in the ongoing patent
infringement lawsuits by CopyTele subsidiary Secure Web Conference
Corporation against Microsoft Corporation and Citrix Systems, Inc.
Robert Berman, CTI's president and CEO, stated, "Although we
generally do not comment on upcoming Court proceedings, because
our previously announced Annual Meeting of Stockholders was
originally scheduled to begin at 11:00 a.m. on August 8, we are
changing the start time of our annual meeting to 9:00 a.m., so
that it does not conflict with the 11:30 a.m. start time of the
claims construction hearing."
CopyTele's Annual Meeting of Stockholders will be held at the law
offices of Ellenoff Grossman & Schole LLP, 1345 Avenue of the
Americas, 11th Floor, New York, New York 10105 on Friday, Aug. 8,
2014, at 9:00 a.m. Oral argument for the claims construction
hearing will take place at the United States Courthouse in
Brooklyn, New York at 225 Cadman Plaza E, Courtroom 6C at 11:30
a.m.
SWCC's patented Key Based Web Conferencing technology was
developed in-house at CopyTele. SWCC initiated patent
infringement lawsuits against Microsoft in connection with its
Skype(R) and Lync(R) web conference services, and Citrix in
connection with its GoToMeeting(R), GoToWebinar(R), and
GoToTraining(R) web conference services. A claims construction
proceeding is a part of a patent infringement lawsuit where the
Court defines the meaning of certain patent claim terms for which
there is disagreement among the parties.
COO Appointment
On July 8, 2014, the Board of Directors of CopyTele appointed
Tisha Stender as chief operating officer and legal counsel of the
Company. On that date, the Company entered into an employment
agreement with Ms. Stender.
Prior to Ms. Stender's employment with the Company, Ms. Stender,
age 42, served as senior vice president of licensing of Acacia
Research Corporation, a company involved in the monetization of
patented inventions, from June 2005 through May 2014. At Acacia
Research Corporation, Ms. Stender oversaw the licensing and
enforcement of certain patent portfolios controlled by the
subsidiaries of Acacia Research Corporation. Ms. Stender holds a
J.D. and a Master's of Science in Human Resources and
Organizational Development from Loyola University Chicago and a
Bachelor's degree from the University of Illinois at Urbana-
Champaign.
Pursuant to the Employment Agreement, Ms. Stender will receive an
annual base salary of $277,000. In addition to her base salary,
Ms. Stender is entitled to receive one or more cash bonuses at the
reasonable discretion of the chief executive officer of the
Company.
The Company will also grant Ms. Stender options to purchase an
aggregate of 4,000,000 shares of the Company's common stock with
an exercise price to be determined based upon the average of the
high and the low sales price of the Company's common stock on the
trading day immediately preceding the approval of those options by
the Board. Half of the options will vest in 36 equal monthly
installments commencing on the date those options are granted.
The balance of the options will vest in two equal parts upon the
achievement of certain Company milestones. The options otherwise
have the same terms and conditions as options granted under the
Company's 2010 Share Incentive Plan.
About CopyTele
Melville, N.Y.-based CopyTele, Inc.'s principal operations include
the development, production and marketing of thin flat display
technologies, including low-voltage phosphor color displays and
low-power passive E-Paper(R) displays, and the development,
production and marketing of multi-functional encryption products
that provide information security for domestic and international
users over several communications media.
CopyTele incurred a net loss of $10.08 million for the year ended
Oct. 31, 2013, as compared with a net loss of $4.25 million during
the prior year.
The Company's balance sheet at April 30, 2014, showed $10.50
million in total assets, $15.34 million in total liabilities and a
$4.84 million total shareholders' deficiency.
CUBIC ENERGY: Has Forbearance Agreement with Senior Noteholders
---------------------------------------------------------------
Cubic Energy, Inc., entered into an Amendment, Forbearance and
Waiver Agreement with the holders of its senior secured notes due
Oct. 2, 2016, and certain other parties. The Amendment amends the
Note Purchase Agreement dated Oct. 2, 2013, pursuant to which the
Company initially issued an aggregate of $66 million of Notes.
Pursuant to the Amendment, the holders of the Notes waived various
defaults specified in the Amendment, and the parties agreed to
modify certain covenants in the Note Purchase Agreement. The
holders of the Notes also waived their right to receive Default
Interest and Registration Default Interest. In addition, the
Amendment provides that after March 31, 2014, the interest rate
applicable to the Notes is increased from 15.5% per annum to 20.5%
per annum; provided that after that date interest will not be
payable in cash but will accrue and compound on a quarterly basis.
The Amendment includes an additional covenant requiring the
Company, among other things, by no later than Oct. 17, 2014, to
consummate a Strategic Transaction or enter into a definitive
agreement with respect to a Strategic Transaction that is
reasonably expected to be consummated no later than Dec. 31, 2014.
A Strategic Transaction includes a transaction resulting in the
payment in full, in cash, of all amounts owing to the holders of
the Notes, or a joint venture, strategic alliance or other
transaction satisfactory to the holders of the Notes.
A full-text copy of the Amendment, Forbearance and Waiver
Agreement is available for free at http://is.gd/40P3XN
About Cubic Energy
Cubic Energy, Inc., headquartered in Dallas, Texas, is an
independent upstream energy company engaged in the development and
production of, and exploration for, crude oil and natural gas.
Its oil and gas assets and activities are concentrated in
Louisiana.
Cubic Energy incurred a net loss of $5.93 million for the year
ended June 30, 2013, a net loss of $12.49 million for the year
ended June 30, 2012, and a net loss of $10.28 million for the year
ended June 30, 2011. As of March 31, 2014, the Company had
$134.14 million in total assets, $141.96 million in total
liabilities, $988 in redeemable common stock and a $7.81 million
total stockholders' deficit.
CRUMBS BAKE SHOP: Shuts Down Operations for Lack of Liquidity
-------------------------------------------------------------
The Board of Directors of Crumbs Bake Shop, Inc., determined to
cease operations effective July 7, 2014. The Board's
determination was made after the Company lacked sufficient
liquidity to maintain current operations.
Given their severe liquidity constraints, the Company explored all
means for obtaining financing to ensure it did not accrue
liabilities to creditors and employees beyond its means to pay.
No such financing materialized and, as a result, the Company was
unable to continue its operations.
The cessation of business constitutes an "Event of Default" under
a Senior Secured Loan and Security Agreement, dated as of Jan. 20,
2014, among the Company, Crumbs Holdings LLC and Fischer
Enterprises, L.L.C., and the senior secured convertible Tranche
Notes issued by Crumbs pursuant thereto. The Event of Default
also constitutes an "Event of Default" under the Company's senior
unsecured promissory notes that were issued pursuant to that
certain Securities Purchase Agreement, dated as of April 29, 2013,
as amended by a First Amendment to Securities Purchase Agreement,
dated as of May 9, 2013, between the Company and Michael Serruya.
As of June 30, 2014, the aggregate amounts outstanding under the
Tranche Notes and the Unsecured Notes were $9,300,000 and
$5,098,115, respectively.
Effective July 1, 2014, as a result of the Events of Defaults,
interest on the outstanding balances due under the Tranche Notes
and the Unsecured Notes will now accrue at the rate of 18.0% per
annum until such time as the Company cures the Events of Default.
Prior to the Events of Default, the interest rates applicable to
the Tranche Notes and the Unsecured Notes were 7.0% per annum and
6.5% per annum, respectively. This interest rate increase will
significantly increase the amounts that the Company is required to
pay under the Tranche Notes and the Unsecured Notes. Under the
terms of the Unsecured Notes, the Event of Default precludes the
Company from paying interest due thereunder in shares of its
common stock; that interest must now be paid in cash. The Secured
Loan Agreement provides that interest which accrues under the
Tranche Notes is to be added to the amounts outstanding thereunder
unless Crumbs elects to pay that interest in cash.
Crumbs Bake Shop, Inc., and 22 of its debtor affiliates filed
Chapter 11 bankruptcy petitions (Bankr. D. N.J. Lead Case No.
14-24287) on July 11, 2014. The petitions were signed by John D.
Ireland as chief financial officer. Crumbs Bake Shop estimated
assets of $10 million to $50 million and debts of $10 million to
$50 million. Cole, Schotz, Meisel, Forman & Leonard, P.A., serves
as the Debtors' counsel. Prime Clerk LLC acts as the Debtors'
claims and noticing agent. The cases are assigned to Judge
Michael B. Kaplan.
After the Debtors shut down their operations, the Debtors renewed
their negotiations with Fischer and others for financing in a
last-ditch effort to maximize value of the Debtors' assets through
a sale thereof. On July 10,2014, the Debtors and the Lender (who
had since taken assignment from Fischer) reached an agreement
whereby the Lender would provide $1,133,000 of debtor-in-
possession financing to the Debtors that will enable them to
pursue an expedited sale of the Debtors' assets pursuant to
Section 363 of the Bankruptcy Code. With that agreement in place,
the Debtors commenced bankruptcy cases.
DELTA RIDGE: Case Summary & 4 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Delta Ridge Hosting, LLC
dba Victorian Palace Hotel
PO Box 5079
Branson, MO 65615
Case No.: 14-60927
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: July 15, 2014
Court: United States Bankruptcy Court
Western District of Missouri (Springfield)
Judge: Hon. Arthur B. Federman
Debtor's Counsel: Diana P. Brazeale, Esq.
BRAZEALE LAW FIRM, LLC
500 W. Main St., Ste 203D
Branson, MO 65616
Tel: 417-334-7494
Fax: 417-334-7405
Email: diana@brazealelaw.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David Bryant, member/manager.
A list of the Debtor's four largest unsecured creditors is
available for free at http://bankrupt.com/misc/mowb14-60927.pdf
DOTS LLC: Hires Trenk DiPasquale as Special Co-counsel
------------------------------------------------------
Dots, LLC and its debtor-affiliates seek authorization from the
U.S. Bankruptcy Court for the District of New Jersey to employ
Trenk, DiPasquale, Della Fera & Sodono, P.C. as special
co-counsel, effective May 16, 2014.
The Debtors seek entry of an order pursuant to sections 327(a) and
328 of the Bankruptcy Code, Bankruptcy Rule 2014(a), and Local
Rule 2014-1 authorizing the employment of Trenk DiPasquale as
special co-counsel in these Chapter 11 Cases to investigate,
analyze and prosecute preference claims in favor of the Debtors'
estates, on a contingency fee basis.
Trenk DiPasquale will be compensated for professional services
rendered for prosecution of the Preference Claims on a 17%
contingency fee from all cash recoveries of the Preference Claims
plus its reasonable out of pocket costs and expenses.
Joseph J. DiPasquale, Esq., a partner of Trenk DiPasquale, assured
the Court that the 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.
Trenk DiPasquale can be reached at:
Joseph J. DiPasquale, Esq.
TRENK, DIPASQUALE, DELLA FERA & SODONO, P.C.
347 Mount Pleasant Avenue, Suite 300
West Orange, NJ 07052
Tel: (973) 323-8666
Fax: (973) 243-8677
E-mail: jdipasquale@trenklawfirm.com
About DOTS LLC
Dots is a retailer of fashionable clothing, accessories, and
footwear for price-conscious women. Dots provides missy and plus
size choices to fashion savvy 25 to 35 year old women at
approximately 400 retail stores throughout the Midwest, East, and
South United States. Dots' workforce includes 3,500 individuals
in their stores, distribution center, and corporate headquarters.
Dots, LLC, and its affiliates sought bankruptcy protection under
Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No.
14-11016) on Jan. 20, 2014, to sell some or all of their assets.
Lowenstein Sandler LLP serves as counsel to the Debtors.
PricewaterhouseCoopers LLP is financial advisor and investment
banker. Donlin, Recano & Company, Inc., is the claims and notice
agent.
As of the Petition Date, the Debtors have outstanding secured debt
owed to senior lender Salus Capital Partners, LLC, of which
$14.5 million remains outstanding under a revolving facility and
$16.1 million is owed under a term facility. The Debtors also
have not less than $17 million outstanding under subordinated term
loan agreements with Irving Place Capital Partners III L.P.
("IPC") and related entities. Moreover, the Debtors have
aggregate unsecured debts of $47.0 million. The Debtors disclosed
$51,574,560 in assets and $85,442,656 in liabilities as of the
Chapter 11 filing.
Salus, the prepetition senior lender and the DIP lender, is
represented by Morgan, Lewis & Bockius, LLP. The prepetition
subordinated lenders are represented by Okin Hollander & DeLuca,
LLP.
The Company has arranged to borrow $36 million to keep operating
as it reorganizes under court protection.
Otterbourg P.C. serves as counsel to the Official Committee of
Unsecured Creditors; and FTI Consulting, Inc., serves as its
financial advisor.
DVORKIN HOLDINGS: Popowcer Katten Approved as Trustee Accountant
----------------------------------------------------------------
Gus A. Paloian, the Chapter 11 trustee of Dvorkin Holdings, LLC
sought and obtained permission from the Hon. Jack B. Schmetterer
of the U.S. Bankruptcy Court for the Northern District of Illinois
to employ Popowcer Katten, Ltd. to provide accounting services to
the Debtor's estate.
The Chapter 11 Trustee requires the services of an accountant in
the Case to, among other things, prepare and file a tax return or
returns for the Estate.
Subject to the Court's approval, the Trustee is willing to pay
Popowcer Katten its hourly Rates for its services, subject to this
Court's approval of Popowcer Katten's future fee applications.
The Trustee believes that the Hourly Rates are very reasonable.
Popowcer Katten will also be reimbursed for reasonable out-of-
pocket expenses incurred.
Lois West, principal of Popowcer Katten, assured the Court that
the 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.
Popowcer Katten can be reached at:
Lois West
POPOWCER KATTEN, LTD.
35 E. Wacker Dr. Suite 1550
Chicago, IL 60601
Tel: (312) 201-6458
Fax: (312) 201-1286
About Dvorkin Holdings, LLC
Dvorkin Holdings, LLC, a holding company that has interests in
40 non-debtor entities, filed a Chapter 11 petition (Bankr. N.D.
Ill. Case No. 12-31336) in Chicago on Aug. 7, 2012. The Debtor
disclosed $69,894,843 in assets and $9,296,750 in liabilities as
of the Chapter 11 filing. Bankruptcy Judge Jack B. Schmetterer
oversees the case. Michael J. Davis, Esq., at Archer Bay, P.A.,
in Lisle, Ill., serves as counsel to the Debtor. The petition was
signed by Loran Eatman, vice president of DH-EK Management Corp.
The Bankruptcy Court in October 2012 granted the request of
Patrick S. Layng, the U.S. Trustee for the Northern District of
Illinois, to appoint Gus Paloian as the Chapter 11 Trustee.
Seyfarth Shaw, LLP, represents the Chapter 11 Trustee as counsel.
Carpenter Lipps & Leland LLP represents the Chapter 11 Trustee as
conflicts counsel.
EDUARDO RUIZ VALENTIN: Banco Popular Wins Stay Relief
-----------------------------------------------------
Bankruptcy Judge Edward A. Godoy denied debtor Eduardo Ruiz
Valentin's motion for reconsideration of an order lifting the
automatic stay in favor of Banco Popular de Puerto Rico.
Banco Popular has submitted proof of claim number 11 in the amount
of $9,171,436.63, of which $9,134,412.39 is claimed as secured.
(Claim No. 11-1.) The bank's claim corresponds to moneys loaned
to debtor, secured by liens on several of debtor's real
properties.
A copy of the Court's July 3, 2014 Opinion and Order is available
at http://is.gd/D5Fgftfrom Leagle.com.
Eduardo Ruiz Valentin filed for Chapter 11 bankruptcy (Bankr.
D.P.R. Case No. 13-09274) on Nov. 6, 2013.
ELBIT IMAGING: Plaza Centers Appoints New Board Members
-------------------------------------------------------
Plaza Centers N.V., in which Elbit Imaging Ltd. holds directly and
indirectly approximately 62.5% of the outstanding shares,
announced following its Annual General Meeting held on July 8,
2014, that the following individuals will be appointed to its
board of directors with immediate effect: Mr. Ron Hadassi, Mr.
David Dekel, Mr. Shlomi Kelsi, Mr. Yoav Kfir, Mr. Nadav Livni.
The newly appointed directors of Plaza will join Messrs. Marco
Habib Wichers and Sarig Shalhav to form a board of directors
comprising seven members.
About Elbit Imaging Ltd.
Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF)
hold investments in real estate and medical companies. The
Company, through its subsidiaries, also develops shopping and
entertainment centers in Central Europe and invests in and manages
hotels.
Since February 2013, Elbit has intensively endeavored to come to
an arrangement with its creditors. Elbit has said it has been
hanging by a thread for more than five months. It has encountered
cash flow difficulties and this burdens its day to day activities,
and it certainly cannot make the necessary investments to improve
its assets. In light of the arrangement proceedings, and
according to the demands of most of the bondholders, as well as an
agreement that was signed on March 19, 2013, between Elbit and the
Trustees of six out of eight series of bonds, Elbit is prohibited,
inter alia, from paying off its debts to the financial creditors -
- and as a result a petition to liquidate Elbit was filed, and
Bank Hapoalim has declared its debts immediately payable,
threatening to realize pledges that were given to the Bank on
material assets of the Company -- and Elbit undertook not to sell
material assets of the Company and not to perform any transaction
that is not during its ordinary course of business without giving
an advance notice to the trustees.
Accountant Rony Elroy has been appointed as expert for examining
the debt arrangement in the Company.
In July 2013, Elbit Imaging's controlling shareholders, Europe-
Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company
that the Tel Aviv District Court has appointed Adv. Giroa Erdinast
as a receiver with regards to the ordinary shares of the Company
held by Europe Israel securing Europe Israel's obligations under
its loan agreement with Bank Hapoalim B.M. The judgment stated
that the Receiver is not authorized to sell the Company's shares
at this stage. Following a request of Europe-Israel, the Court
also delayed any action to be taken with regards to the sale of
those shares for a period of 60 days. Europe Israel and
Mr. Zisser have also notified the Company that they utterly reject
the Bank's claims and intend to appeal the Court's ruling.
Elbit Imaging reported a loss of NIS1.56 billion on
NIS360.59 million of total revenues for the year ended Dec. 31,
2013, as compared with a loss of NIS483.98 million on NIS418.48
million of total revenues in 2012. The Company's balance sheet at
Dec. 31, 2013, showed NIS4.56 billion in total assets, NIS4.97
billion in total liabilities and a NIS408.63 million shareholders'
deficit.
Brightman Almagor Zohar & Co., a member firm of Deloitte Touche
Tohmatsu, in Tel-Aviv, Israel, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2013.
ENERGY FUTURE: Creditors Slam 'Extremely Limited' Records
---------------------------------------------------------
Law360 reported that creditors of Energy Future Holdings Corp.
complained that the Texas power giant has been slacking in its
production of documents surrounding its bankruptcy, saying Energy
Future needs to pick up the pace so creditors have enough time to
evaluate their potential claims. According to the Law360 report,
in a court filing, the official committee of unsecured creditors
said Energy Future, which entered bankruptcy in April, has agreed
to share with the committee documents it digs up for interested
parties, but that the number of original documents that have been
produced so far has been disappointing. Since mid-May, Energy
Future has turned over 13,906 documents, fewer than 7,000 of which
are originals, the creditors contend, Law360 related.
Energy Future's supposed quick trip through bankruptcy is also
derailed by creditors who oppose the power company's plan to hand
over its Oncor subsidiary to a group that includes Dallas energy
magnate Ray L. Hunt and the state teacher's pension fund. James
Osborne, writing for Dallas News, reported that U.S. Bankruptcy
Judge Christopher Sontchi in Delaware was expected to rule on
EFH's proposal but hinted hinted that the company's attorneys had
a long way to go if they were to convince him that EFH had done
enough to solicit competing bids.
EFH's "record on these particular issues is fairly thin and is
going to need more evidence to satisfy the court that this is the
appropriate path to continue to go down," the Dallas news agency
cited Judge Sontchi as saying in a hearing.
Bill Rochelle, the bankruptcy columnist for Bloomberg News, noted
that Energy Future is temporarily halting the process of securing
court approval for controversial aspects of the bankruptcy
reorganization by calling off hearings for approval of second-lien
financing for the bankruptcy, a settlement on payoff of pre-
bankruptcy debt, and an agreement committing creditors to support
a reorganization plan.
About Energy Future Holdings, fka TXU Corp.
Energy Future Holdings Corp., formerly known as TXU Corp., is a
privately held diversified energy holding company with a portfolio
of competitive and regulated energy businesses in Texas. Oncor,
an 80 percent-owned entity within the EFH group, is the largest
regulated transmission and distribution utility in Texas.
The Company delivers electricity to roughly three million delivery
points in and around Dallas-Fort Worth. EFH Corp. was created in
October 2007 in a $45 billion leverage buyout of Texas power
company TXU in a deal led by private-equity companies Kohlberg
Kravis Roberts & Co. and TPG Inc.
On April 29, 2014, Energy Future Holdings and 70 affiliated
companies sought Chapter 11 bankruptcy protection (Bankr. D. Del.
Lead Case No. 14-10979) after reaching a deal with some key
financial stakeholders to keep its businesses operating while
reducing its roughly $40 billion in debt.
The Debtors' cases have been assigned to Judge Christopher S.
Sontchi (CSS). The Debtors are seeking to have their cases
jointly administered for procedural purposes.
As of Dec. 31, 2013, EFH Corp. reported total assets of $36.4
billion in book value and total liabilities of $49.7 billion. The
Debtors have $42 billion of funded indebtedness.
EFH's legal advisor for the Chapter 11 proceedings is Kirkland &
Ellis LLP, its financial advisor is Evercore Partners and its
restructuring advisor is Alvarez & Marsal. The TCEH first lien
lenders supporting the restructuring agreement are represented by
Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor,
and Millstein & Co., LLC, as financial advisor.
The EFIH unsecured creditors supporting the restructuring
agreement are represented by Akin Gump Strauss Hauer & Feld LLP,
as legal advisor, and Centerview Partners, as financial advisor.
The EFH equity holders supporting the restructuring agreement are
represented by Wachtell, Lipton, Rosen & Katz, as legal advisor,
and Blackstone Advisory Partners LP, as financial advisor. Epiq
Systems is the claims agent.
Wilmington Savings Fund Society, FSB, the successor trustee for
the second-lien noteholders owed about $1.6 billion, is
represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and
Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S.
Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq.,
Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee represents the interests of the unsecured
creditors of ONLY of Energy Future Competitive Holdings Company
LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings
Company LLC; and EFH Corporate Services Company, and of no other
debtors. The Committee has selected Morrison & Foerster LLP and
Polsinelli PC for representation in this high-profile energy
restructuring. The lawyers working on the case are James M. Peck,
Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at
Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K.
Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at
Polsinelli PC.
ESSAR STEEL: Chapter 15 Case Summary
------------------------------------
Chapter 15 Petitioner: Robert J. Sandoval
Chapter 15 Debtors:
Essar Steel Algoma Inc. 14-11730
aka Algoma Steel Inc.
aka Aciers Algoma Inc.
105 West Street
Sault Ste., Marie
Ontario P6A 7B4
Essar Steel Canada Inc. 14-11731
Algoma Holdings B.V. -
Cannelton Iron Ore Company -
Essar Steel Algoma Inc. USA -
Type of Business: Operates one of Canada's largest integrated
steel manufacturing facilities.
Chapter 15 Petition Date: July 16, 2014
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Judge: Hon. Kevin J. Carey
Chapter 15
Petitioner's Counsel: Daniel J. DeFranceschi, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square, P.O. Box 551
Wilmington, DE 19899
Tel: 302 651-7700
Fax: 302-651-7701
Email: defranceschi@rlf.com
- and -
Amanda R. Steele, Esq.
RICHARDS, LAYTON & FINGER, P.A.
920 N. King Street
Wilmington, DE 19801
Tel: 302-651-7838
Fax: 302-428-7838
Email: steele@rlf.com
- and -
Amanda R. Steele, Esq.
RICHARDS, LAYTON & FINGER, P.A.
920 N. King Street
Wilmington, DE 19801
Tel: 302-651-7838
Fax: 302-428-7838
Email: steele@rlf.com
Estimated Assets: More than $1 billion
Estimated Liabilities: More than $1 billion
EXIDE TECHNOLOGIES: Reaches Deal with UNC for $65MM in Add'l Loans
------------------------------------------------------------------
Exide Technologies is seeking to amend its DIP Loan Agreements to
obtain additional term loan commitment of about $65 million from
certain members of the Unofficial Committee of Senior Secured
Noteholders (UNC).
The $65 million commitment will result in approximately $60
million of net cash proceeds (after giving effect to fees paid to
UNC members for their respective commitments).
The Additional Financing is being implemented as part of broader
package of amendments (Amendment No. 6) requested from the lenders
under the DIP Loan Facilities, where the key amendments include:
(a) Maturity Date Extension and Adjustment of Plan of
Reorganization Milestones: Extends maturity date to Dec. 31,
and adjusts plan-related milestones to allow sufficient time
to complete the plan confirmation process. Given that
maturity extension requires 100% consent, the UNC has agreed
to acquire the debt of any holders of the DIP Term Facility
that do not consent to a maturity extension.
(b) EBITDA Covenant Adjustments: Adjusts current trailing-12
month EBITDA covenant thresholds to address (i) the extension
of the DIP maturity date through the end of 2014 (the current
EBITDA thresholds under the DIP Credit Agreement run through
September 2014), and (ii) levels of anticipated earnings
under the Company's business plan projections from July
through the extended maturity date.
(c) Elimination of Capital Expenditures Covenant: Eliminates the
restrictions on capital expenditures in order to provide
Exide with the flexibility to continue to invest to support
ongoing operations and facilities.
(d) Fees: In connection with the Additional Financing, the Debtor
has agreed to pay a 3.50% fee to the UNC Lenders based off of
the total commitment provided (including the Backstop
Commitment. This fee will not be paid in cash, but will be
payable in kind or as original issue discount and capitalized
as additional principal. In addition, the Debtor has agreed
to pay a 0.50% amendment fee in cash to all DIP Lenders
consenting to Amendment No. 6 in accordance with the terms
thereof.
(e) Liquidity Covenant: In return for the maturity extension, the
Debtor has agreed to maintain a minimum level of $35 million
in liquidity.
The Debtor says the need for the Additional Financing primarily
results from the convergence of two factors: (1) lost liquidity
from the suspension of operations at the Debtor's Vernon,
California lead recycling facility earlier this year, and (2) peak
working capital requirements during the summer and fall months
when the Debtor builds inventory for the fall and winter.
About Exide Technologies
Headquartered in Princeton, New Jersey, Exide Technologies
(NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and
distributes lead acid batteries and other related electrical
energy storage products.
Exide first sought Chapter 11 protection (Bankr. Del. Case No.
02-11125) on April 14, 2002 and exited bankruptcy two years after.
Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland &
Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl &
Jones LLP represented the Debtors in their successful
restructuring.
Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No.
13-11482) on June 10, 2013. Exide disclosed $1.89 billion in
assets and $1.14 billion in liabilities as of March 31, 2013.
Exide's international operations were not included in the filing
and will continue their business operations without supervision
from the U.S. courts.
For the new case, Exide has tapped Anthony W. Clark, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang
Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial
advisor; Sitrick and Company Inc. as public relations consultant
and GCG as claims agent. Schnader Harrison Segal & Lewis LLP was
tapped as special counsel.
The Official Committee of Unsecured Creditors is represented by
Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as
co-counsel. Zolfo Cooper, LLC serves as its bankruptcy
consultants and financial advisors. Geosyntec Consultants was
tapped as environmental consultants to the Committee.
Robert J. Keach of the law firm Bernstein Shur as fee examiner has
been appointed as fee examiner. He has hired his own firm as
counsel.
* * *
The Bankruptcy Court has currently granted Exide Technologies
exclusivity to file a Chapter 11 plan through July 31, 2014, and a
corresponding exclusive right to solicit acceptances of that plan
through Sept. 30, 2014.
Exide related in a June 30, 2014 press release that it received a
non-binding proposal for a Plan of Reorganization (POR) from the
Unofficial Committee of Senior Secured Noteholders (UNC). The UNC
members hold a substantial majority of the Company's Debtor-in-
Possession (DIP) facility term loan and prepetition senior secured
notes. The UNC proposal contemplates, among other things, an
investment of $300 million in new equity capital backstopped by
certain members of the UNC. The Debtor says the proposal is
highly constructive and is the likely path it will follow in order
to emerge from chapter 11.
EXIDE TECHNOLOGIES: Seeks OK of Premium Financing Deal with AFCO
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Exide Technologies seeks Bankruptcy Court authority to enter into
new insurance premium financing agreement with AFCO Credit
Corporation.
The PFA will allow the Debtor to finance the Premiums associated
with its Financed Insurance Policies.
The amount to be financed under the new PFA is $473,488, which
will have an interest rate of 3.215%.
The Debtor will make 8 installment payments beginning on Aug. 1,
2014, with the last payment being on March 1, 2015.
To secure its obligations under the new PFA, the Debtor will grant
AFCO a security interest in: (a) any and all unearned premiums and
dividends which may become payable under the Financed Insurance
Policies; (b) loss payments which reduce unearned premiums,
subject to any mortgagee or loss payee interests; and (c) any
interest in any state guarantee fund relating to any Financed
Insurance Policy.
AFCO may cancel the Financed Insurance Policies on the Debtor's
failure to make payment when due.
Finance Charge under the new PFA is $5,725.48.
About Exide Technologies
Headquartered in Princeton, New Jersey, Exide Technologies
(NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and
distributes lead acid batteries and other related electrical
energy storage products.
Exide first sought Chapter 11 protection (Bankr. Del. Case No.
02-11125) on April 14, 2002 and exited bankruptcy two years after.
Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland &
Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl &
Jones LLP represented the Debtors in their successful
restructuring.
Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No.
13-11482) on June 10, 2013. Exide disclosed $1.89 billion in
assets and $1.14 billion in liabilities as of March 31, 2013.
Exide's international operations were not included in the filing
and will continue their business operations without supervision
from the U.S. courts.
For the new case, Exide has tapped Anthony W. Clark, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang
Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial
advisor; Sitrick and Company Inc. as public relations consultant
and GCG as claims agent. Schnader Harrison Segal & Lewis LLP was
tapped as special counsel.
The Official Committee of Unsecured Creditors is represented by
Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as
co-counsel. Zolfo Cooper, LLC serves as its bankruptcy
consultants and financial advisors. Geosyntec Consultants was
tapped as environmental consultants to the Committee.
Robert J. Keach of the law firm Bernstein Shur as fee examiner has
been appointed as fee examiner. He has hired his own firm as
counsel.
* * *
The Bankruptcy Court has currently granted Exide Technologies
exclusivity to file a Chapter 11 plan through July 31, 2014, and a
corresponding exclusive right to solicit acceptances of that plan
through Sept. 30, 2014.
Exide related in a June 30, 2014 press release that it received a
non-binding proposal for a Plan of Reorganization (POR) from the
Unofficial Committee of Senior Secured Noteholders (UNC). The UNC
members hold a substantial majority of the Company's Debtor-in-
Possession (DIP) facility term loan and prepetition senior secured
notes. The UNC proposal contemplates, among other things, an
investment of $300 million in new equity capital backstopped by
certain members of the UNC. The Debtor says the proposal is
highly constructive and is the likely path it will follow in order
to emerge from chapter 11.
FERRETERIA Y AGROCENTRO: Case Summary & 20 Top Unsec. Creditors
---------------------------------------------------------------
Debtor: Ferreteria Y Agrocentro El Siete, Inc.
RR-3 BOX 10168
TOA Alta, PR 00953
Case No.: 14-05795
Chapter 11 Petition Date: July 15, 2014
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Victor Gratacos-Diaz, Esq.
VICTOR GRATACOS-DIAZ LEGAL OFFICE
P O Box 7571
Caguas, PR 00726
Tel: 787 746-4772
Email: bankruptcy@gratacoslaw.com
Total Assets: $1.94 million
Total Liabilities: $1.91 million
The petition was signed by Jose L Rodriguez Cruz, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/prb14-05795.pdf
FIRED UP: Gets Final Order to Pay Critical Vendor Claims
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Bankruptcy Judge Tony M. Davis entered a final order authorizing
Fired Up, Inc. to:
1. pay critical vendors, in the ordinary course of business,
and PACA vendor payments; and
2. assume its agreements with Fintech and CASS, and continue
payments to these entities per the terms set out in their
agreements.
The Court also ordered that Ford Restaurant Group, Pictoric and
any other creditors on the list of critical vendors who are
insiders will not, at this time, be paid any sums they were owed
as of the Petition Date.
As reported in the Troubled Company Reporter on April 7, 2014, the
Debtor has identified 67 of the 215 vendors it does business with
as "critical" vendors. The Debtor said of the 67 vendors, 15 are
owed nothing, 25 are owed less than $1,000 and 16 are owed less
than $15,000. The aggregate amount owed to these vendors is
$1,260,022.
About Fired Up, Inc.
Fired Up, Inc., the Austin, Texas-based owner and operator of the
Johnny Carino's Italian restaurant chain, sought Chapter 11
bankruptcy protection (Bankr. W.D. Tex. Case No. 14-10447) on
March 27, 2014, in Austin. The Debtor is represented by attorneys
at Barron & Newburger, P.C., in Austin. It estimated assets and
debt of $10 million to $50 million.
As of the bankruptcy filing, Fired Up had 2,900 employees and
owned and operated 46 company-owned stores known as Johnny
Carino's Italian in seven states (Texas, Arkansas, Colorado,
Louisiana, Idaho, Kansas and Missouri) and 61 franchised or
licensed locations in 17 states and four other countries (Bahrain,
Dubai, Egypt and Kuwait).
The company began its own "out of court" reorganization in the
last quarter of 2013 by closing 20 unprofitable restaurants. The
company later opted to seek bankruptcy protection to tie up the
"loose ends" of its self-imposed "reorganization" that did not
appear capable of being tied up without litigation. In
particular, the provisions of the Bankruptcy Code with respect to
the rejection of burdensome leases and the ability to propose and
pay out its debts pursuant to a Plan without piecemeal prosecution
by random uncooperative creditors undermining same were
particularly attractive.
For the fiscal year ending June 27, 2012, the company reported
total revenues of $125.7 million, net income of $614,000, and
guest counts of 8.6 million. For the fiscal year ending June 26,
2013, the company reported total revenues of $120.8 million, a net
loss of $5.9 million, and guest counts totaling 8.5 million.
The Debtor disclosed $10,360,877 in assets and $36,139,375 in
liabilities.
Creed Ford III is the majority shareholder and has served as
president and CEO since 2008. Mr. Ford and Norman J. Abdallah
formed Fired Up in 1997 for the purpose of acquiring the then six-
unit Johnny Carino's Italian Kitchen chain from Brinker
International, Inc.
The U.S. Trustee appointed a seven-member Official Committee of
Unsecured Creditors. The Commitee tapped Pachulski Stang Ziehl &
Jones LLP as its counsel, and FTI Consulting, Inc. as its
financial advisor.
FLETCHER INT'L: Equitable Subordination of Turner Claim Stands
--------------------------------------------------------------
In the Chapter 11 case of Fletcher International, Ltd., Bankruptcy
Judge Robert E. Gerber denied the request of Stewart Turner,
former director and treasurer of the Debtor, for reconsideration
of the equitable subordination of his pre-petition claim.
"I believe that my actions were appropriate and forthright and I
humbly ask for reconsideration that my claim should be moved from
Class 5 with its negative insider status to Class 3 General
Unsecured Claims," said Mr. Turner, who appeared Pro Se.
But Judge Gerber said the request "is in substance an effort to
reassert arguments that were made, and rejected, when the Court
first considered the motion; to make new arguments that could have
been made at that time; or to say that because the Movant now
"apologize[s]" for things he did, subordination of his claims
should not be imposed. None provide an appropriate basis for the
entry of Bankruptcy Rule 9023 or Local Rule 9023-1 relief."
A copy of the Court's July 1, 2014 Decision and Order is available
at http://is.gd/aGspV2from Leagle.com
About Fletcher International
Fletcher International, Ltd., filed a Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 12-12796) on June 29, 2012, in Manhattan. The
Bermuda exempted company estimated assets and debts of $10 million
to $50 million. The bankruptcy documents were signed by its
president and director, Floyd Saunders.
David R. Hurst, Esq., at Young Conaway Stargatt & Taylor, LLP, in
New York, serves as counsel and Appleby (Bermuda) Limited serves
as special Bermuda counsel. The Debtor disclosed $52,163,709 in
assets and $22,997,848 in liabilities as of the Chapter 11 filing.
Fletcher International Ltd. was managed by the investment firm of
Alphonse "Buddy" Fletcher Jr.
Fletcher Asset Management was founded in 1991. During its initial
four years, FAM operated as a broker dealer trading various debt
and equity securities and making long-term equity investments.
Then, in 1995, FAM began creating and managing a family of private
investment funds.
The Debtor is a master fund in the Fletcher Fund structure. As a
master fund, it engages in proprietary trading of various
financial instruments, including complex, long-term, illiquid
investments.
The Debtor is directly owned by Fletcher Income Arbitrage Fund and
Fletcher International Inc., which own roughly 83% and 17% of the
Debtor's common shares, respectively. Arbitrage's direct parent
entities are Fletcher Fixed Income Alpha Fund and FIA Leveraged
Fund, both of which are incorporated in the Cayman Islands and are
subject to liquidation proceedings in that jurisdiction, and which
own roughly 76% and 22% of Arbitrage's common stock, respectively.
The Debtor currently has a single subsidiary, The Aesop Fund Ltd.
After filing for Chapter 11 protection, Fletcher immediately
started a lawsuit in bankruptcy court to stop the involuntary
bankruptcy in Bermuda. Judge Gerber at least temporarily halted
liquidators appointed in the Cayman Islands from moving ahead with
proceedings in Bermuda. The lawsuit to halt the Bermuda
liquidation is Fletcher International Ltd. v. Fletcher Income
Arbitrage Fund, 12-01740, in the same court.
Richard J. Davis, Chapter 11 trustee appointed in the case, has
hired Michael Luskin, Esq., Lucia T. Chapman, Esq., and Stephanie
E. Hornung, Esq., at Luskin, Stern & Eisler LLP as his
counsel.
The Chapter 11 trustee filed a proposed liquidating Plan in
November 2013. The disclosure statement was approved on Jan. 17,
2014. Judge Gerber has confirmed the Second Amended Plan of
Liquidation late in March 2014.
FREE LANCE-STAR: Buyer Wants Creditor Panel Disbanded
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Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Sandton Capital Partners, which bought newspaper and
radio station owner Free Lance-Star in June for $30.2 million,
wants the bankruptcy court to disband the official creditors'
committee, saying it's no longer required for adequate
representation of its constituents. According to the report,
there is "no conceivable reason" for the committee's continued
existence following completion of the sale because the company has
no ongoing business or income sources and its only remaining
assets are potential lawsuits, said Sandton's DSP Acquisition LLC
in court papers.
About The Free Lance-Star Publishing
The Free Lance-Star Publishing Co. of Fredericksburg, Va., is a
publishing, newspaper, radio and communications company based in
Fredericksburg, Virginia and owned by the family of Josiah P. Rowe
III. FLS's single, seven-day a week newspaper, The Free Lance-
Star was first published in 1885 when a group of local
Fredericksburg merchants and businessmen created the paper to
serve the news and advertising needs of the community. FLS also
owns radio stations WFLS-AM, FLS-FM, and WVBX. FLS owns the
community and news portal http://www.fredericksburg.com/
FLS filed a Chapter 11 bankruptcy petition (Bankr. E.D. Va. Case
No. 14-30315) in Richmond, Virginia, on Jan. 23, 2014. William
Douglas Properties, L.L.C., a related entity that owns a portion
of the land pursuant to which FLS operates certain aspects of its
business, also sought bankruptcy protection.
Judge Keith L. Phillips was initially assigned to the cases, but
the cases were reassigned to Judge Kevin R. Huennekens on the
Petition Date.
The Debtors have tapped Lynn L. Tavenner, Esq., and Paula S.
Beran, Esq., at Tavenner & Beran, PLC, as counsel; and Protiviti,
Inc., as financial advisor.
The U.S. Trustee for Region 4 appointed three members to the
official committee of unsecured creditors.
FURNITURE BRANDS: Insurers Object to Liquidation Plan
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BankruptcyData reported that AIG Property Casualty and ACE America
Insurance filed with the U.S. Bankruptcy Court separate objections
to Furniture Brands International's Amended Joint Plan of
Liquidation.
According to BData, ACE asserted that "The Debtors and/or the
Liquidating Trustee cannot retain the benefits of the Agreements
without satisfying the continuing obligations of the insured there
under. A bankruptcy court cannot alter or enlarge an insurer's
state law contractual obligations....A debtor cannot assume the
benefits of a contract (whether executor or non-executory) without
assuming the corresponding burdens imposed upon the
debtor....Stated another way, neither Debtors nor this Court can
unilaterally rewrite the terms of the Agreements. Bankruptcy Court
does not have the authority to rewrite the terms of an insurance
policy and impose requirements upon the insurer which were not
part of the parties' bargains....Without the inclusion of specific
language in the Confirmation Order reserving all of the ACE
Companies' contractual and other rights under the Agreements, the
Plan could be construed in a way that impermissibly modifies the
ACE Companies' rights and cannot be confirmed."
About Furniture Brands
Furniture Brands International (NYSE:FBN) --
http://www.furniturebrands.com-- engaged in the designing,
manufacturing, sourcing and retailing home furnishings. Furniture
Brands markets products through a wide range of channels,
including company owned Thomasville retail stores and through
interior designers, multi-line/ independent retailers and mass
merchant stores. Its brands include Thomasville, Broyhill, Lane,
Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture,
Maitland-Smith and LaBarge.
The balance sheet at June 29, 2013, showed $546.73 million in
total assets against $550.13 million in total liabilities.
On Sept. 9, 2013, Furniture Brands International, Inc. and 18
affiliated companies sought Chapter 11 protection (Bankr. D. Del.
Lead Case No. 13-12329).
Attorneys at Paul Hastings LLP and Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Debtors. Alvarez and Marsal
North America, LLC, is the restructuring advisors. Miller
Buckfire & Co., LLC is the investment Banker. Epiq Systems Inc.
dba Epiq Bankruptcy Solutions is the claims and notice agent.
The official creditor's committee is comprised of the Pension
Benefit Guaranty Corp., Milberg Factors Inc. and five suppliers.
The Committee tapped Blank Rome LLP as co-counsel, Hahn &
Hessen LLP as lead counsel, BDO Consulting as financial advisor,
and Houlihan Lokey Capital, Inc., as investment banker.
In November 2013, Furniture Brands won bankruptcy court approval
to sell the business to KPS Capital Partners LP for $280 million.
Private-equity investor KPS formed a new company named Heritage
Home Group LLC to operate the business. Furniture Brands changed
its name to FBI Wind Down, Inc., following the sale.
* * *
The Debtors obtained an extension until Aug. 24, 2014 of the
exclusive period within which they may file a Chapter 11 plan.
The exclusive period within which the Debtors may solicit
acceptances to that plan is extended until Oct. 21, 2014.
FUTUREGEN COMPANY: D.C. Court Appoints Receiver
-----------------------------------------------
At the behest of the Securities and Exchange Commission, District
Judge Christopher R. Cooper appointed Marion A. Hecht of Clifton
Larson Allen, LLP, to serve without bond as receiver to assume
control of, marshal, pursue, and preserve the assets of FutureGen
Company d/b/a FutureGen Capital; Commercial Equity Partners, Ltd.;
FGC Distressed Assets Investment #1, LLC; FutureGen Capital DDA CG
Fund LLC; FGC Tax Lien Fund #2, LLC; FGC Trading Fund #1 LLC; FGC
SPE No 1 LLC; FGC SPE NO 2 LLC; and FGC CM Note Fund LLC.
The Court also ruled that all Receivership Assets are frozen until
further Court order. Accordingly, all persons and entities with
direct or indirect control over any Receivership Assets, other
than the Receiver, are restrained and enjoined from directly or
indirectly transferring, setting off, receiving, changing,
selling, pledging, assigning, liquidating or otherwise disposing
of or withdrawing such assets. This freeze shall include, but not
be limited to. Receivership Assets that are on deposit with
financial institutions such as banks, brokerage firms and mutual
funds.
A copy of the Court's July 3, 2014 Order is available at
http://is.gd/m0rAFEfrom Leagle.com.
The Receivership case is, SECURITIES AND EXCHANGE COMMISSION,
Plaintiff, v. LAWRENCE P. SCHMIDT; FUTUREGEN COMPANY d/b/a
FUTUREGEN CAPITAL; COMMERCIAL EQUITY PARTNERS, LTD.; FGC
DISTRESSED ASSETS INVESTMENT #1, LLC; FUTUREGEN CAPITAL DDA CG
FUND LLC; FGC TAX LIEN FUND #2, LLC; FGC TRADING FUND #1 LLC; FGC
SPE NO 1 LLC; FGC SPE NO 2 LLC; AND FGC CM NOTE FUND LLC,
Defendants, CASE NO. 1:14-CV-01002 (CRC), NO. 14-MC-0162 (D.C.).
GENERAL MOTORS: Rusting Brake Lines Don't Make Cut in Recalls
-------------------------------------------------------------
Jeff Plungis and Jeff Green, writing for Bloomberg News, reported
that General Motors Co., which has set a record for recalls this
year as it tries to clear up lingering safety issues, is making an
exception for rusting brake lines in almost 1.8 million pickups
and sport-utility vehicles. According to the report, much like it
did initially with flawed ignition switches in small cars linked
to at least 13 deaths, GM says the corroded lines aren't a safety
hazard that requires a recall. Even with at least 26 crashes,
three injuries and a four-year-old probe by the National Highway
Traffic Safety Administration, GM is characterizing potential
brake failure as normal wear-and-tear, the report related.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on
June 1, 2009. The Honorable Robert E. Gerber presides over the
Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin,
Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges
LLP, assist the Debtors in their restructuring efforts. Al Koch
at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as
the Chief Executive Officer for Motors Liquidation Company. GM
is also represented by Jenner & Block LLP and Honigman Miller
Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP
is providing legal advice to the GM Board of Directors. GM's
financial advisors are Morgan Stanley, Evercore Partners and the
Blackstone Group LLP. Garden City Group is the claims and notice
agent of the Debtors.
The U.S. Trustee appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured
Creditors Holding Asbestos-Related Claims. Lawyers at Kramer
Levin Naftalis & Frankel LLP served as bankruptcy counsel to the
Creditors Committee. Attorneys at Butzel Long served as counsel
on supplier contract matters. FTI Consulting Inc. served as
financial advisors to the Creditors Committee. Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represented the Asbestos
Committee. Legal Analysis Systems, Inc., served as asbestos
valuation analyst.
The Bankruptcy Court entered an order confirming the Debtors'
Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan
was declared effect on March 31.
On Dec. 15, 2011, Motors Liquidation Company was dissolved. On
the Dissolution Date, pursuant to the Plan and the Motors
Liquidation Company GUC Trust Agreement, dated March 30, 2011,
between the parties thereto, the trust administrator and trustee
-- GUC Trust Administrator -- of the Motors Liquidation Company
GUC Trust, assumed responsibility for the affairs of and certain
claims against MLC and its debtor subsidiaries that were not
concluded prior to the Dissolution Date.
GILES-JORDAN: US Trustee Unable to Form Creditors' Committee
------------------------------------------------------------
Judy A. Robbins, the U.S. Trustee for Region 7, was unable to
appoint creditors to serve on an official committee of unsecured
creditors for Giles-Jordan Inc. because there was no sufficient
interest from the creditors in serving on the Committee.
Giles-Jordan, Inc., filed a Chapter 11 bankruptcy petition in its
hometown in Galveston, Texas (Bankr. S.D. Tex. Case No. 14-80173)
on May 5, 2014. The Debtor disclosed $12 million in total assets
and $4.81 million in liabilities, including $3.72 million of
secured debt. Its lone asset is a 39.16-acre property at 230 East
Beach Drive, in Galveston, Texas. Galveston Shores, LP, of
Carlsbad, California, is the holder of the secured debt.
The case is assigned to Judge Letitia Z. Paul. The Debtor is
represented by Jeffrey Wells Oppel, Esq., at Oppel & Goldberg,
PLLC, in Houston, Texas.
GILES-JORDAN: Galveston Shores Wants Automatic Stay Lifted
----------------------------------------------------------
Giles-Jordan, Inc., on September 17, 2013, purchased its only
asset from Galveston Shores, L.P., for $4 million. Giles-Jordan
paid $550,000 down on the purchase. The $4 million sales price
remains the actual current market value of the property.
As part of the purchase, Galveston Shores financed the sale of the
39.16 acres of undeveloped land on the East Beach of Galveston
Island, with a loan for $3,450,000 bearing interest at 10% per
annum, secured by a deed of trust. Giles-Jordan represented to
Galveston Shores that the owner financing was only needed as a
bridge loan pending the finalizing of a development loan from a
lender. That loan never materialized.
The promissory note became due on December 17, 2013. It was not
paid. As the promissory note went into default, Galveston Shores
was forced to post the 39.16 acres for foreclosure on May 6, 2014.
However, about 10 hours before the scheduled foreclosure, Giles-
Jordan filed for relief under Chapter 11 of the Bankruptcy Code.
David E. Cowen, Esq., at McLeod, Alexander, Powel & Apffel, P.C.,
in Galveston, Texas, relates that at the time of filing, Giles-
Jordan had no obvious means of refinancing its debt or of
operating in a manner which would likely result in reorganization.
According to Mr. Cowen, Giles-Jordan has admitted that it has no
actual operating business and has had no reported revenues without
any cash on hand. No official committee of unsecured creditors has
been appointed as there are insufficient creditors to do so.
Galveston Shores is the only secured creditor listed.
Mr. Cowen asserts that Giles-Jordan has not offered Galveston
Shores any adequate protection for its collateral. Galveston
Shores is an oversecured creditor and its position is being
jeopardized by the delay in foreclosure.
Mr. Cowen notes that the sole reason for filing the bankruptcy was
to stop foreclosure. Thus, the filing was in bad faith, he
explains.
Accordingly, Galveston Shores asks the Bankruptcy Court to lift
the automatic stay under Section 362 of the Bankruptcy Code so
that it may exercise its rights against the collateral.
Mr. Cowen points out there is cause to lift the stay including
lack of adequate protection, the property not being necessary for
reorganization because of the inability to reorganize, and that
the filing was in bad faith.
Giles-Jordan Objects
Giles-Jordan asks the Court to deny Galveston Shores' request.
Jeffrey Wells Oppel, Esq., at Oppel & Goldberg, PLLC, in Houston,
Texas, tells the Court that since acquiring the property, it has
taken significant steps to substantially increase its value.
Giles-Jordan is in the process of formulating its plan of
reorganization based on that equity.
Mr. Oppel assures the Court that the plan will be funded by new
financing that will either adequately protect or pay off Galveston
Shores.
Galveston Shores is represented by:
David E. Cowen
MCLEOD, ALEXANDER, POWEL & APFFEL, PC
802 Rosenberg
P.O. Box 629
Galveston, Texas 77553
Tel: 281-488-7150 Ext. 134
409-763-2481 Ext. 134
Fax: 409-762-1155
Giles-Jordan is represented by:
Jeffrey Wells Oppel, Esq.
OPPEL & GOLDBERG, PLLC
1010 Lamar, Suite 1420
Houston, TX 77002
Tel: 713-659-9200
Fax: 713-659-9300
E-mail: joppel@ogs-law.com
Giles-Jordan, Inc., filed a Chapter 11 bankruptcy petition in its
hometown in Galveston, Texas (Bankr. S.D. Tex. Case No. 14-80173)
on May 5, 2014. The Debtor disclosed $12 million in total assets
and $4.81 million in liabilities, including $3.72 million of
secured debt. Its lone asset is a 39.16-acre property at 230 East
Beach Drive, in Galveston, Texas. Galveston Shores, LP, of
Carlsbad, California, is the holder of the secured debt.
The case is assigned to Judge Letitia Z. Paul. The Debtor is
represented by Jeffrey Wells Oppel, Esq., at Oppel & Goldberg,
PLLC, in Houston, Texas.
GRIDWAY ENERGY: Asks Court to Extend Lease Decision Deadline
------------------------------------------------------------
Gridway Energy Holdings, Inc. and its subsidiaries ask the
Bankruptcy Court to extend the deadline to assume or reject all
unexpired leases of nonresidential real property to November 6,
2014.
The original 120-day period to assume or reject leases expires on
August 8, 2014.
The Debtors are tenants under leases of nonresidential real
property related to operating subsidiaries across the country as
well as the global headquarters in the Virgin Islands.
Gridway Energy sought and obtained the Court's authority to sell
substantially all of their assets, except for the assets of
Ziphany, LLC, and Negawatt Business Solutions, Inc., to Platinum
Partners Value Arbitrage Fund LP, as successful bidder.
Gridway Energy will assume and assign to Platinum some executory
contracts and unexpired leases on the asset transfer closing date,
which has yet to occur.
Travis G. Buchanan, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, explains that Gridway Energy's leases are
among the most crucial of their assets. It is critical to
consummation of the sale that Gridway Energy retain the ability to
assume and assign leases, notes Mr. Buchanan.
Mr. Buchanan adds that with respect to the leases that relate to
Ziphany and Negawatt, it is vital to the ultimate success of
reorganization efforts and ongoing business operations that
Gridway Energy has sufficient time to analyze the value of those
leases.
Gridway Energy is represented by:
Michael R. Nestor, Esq.
Joseph M. Barry, Esq.
Donald J. Bowman, Jr., Esq.
Travis G. Buchanan, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, DE 19801
Telephone: 302-571-6600
Facsimile: 302-571-1253
- and -
Alan M. Noskow, Esq.
Mark A. Salzberg, Esq.
SQUIRE PATTON BOGGS (US) LLP
2550 M St. NW
Washington, DC 20037
Telephone: 202-457-6000
Facsimile: 202-457-6315
About Gridway Energy
Gridway Energy Holdings, Inc., and its affiliates, including
Glacial Energy Holdings -- providers of electricity and natural
gas in markets that have been restructured to permit retail
competition -- sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Lead Case No. 14-10833) on April 10, 2014.
The Debtors have 200,000 electric residential customers and 55,000
gash residential customers across the U.S. A large portion of the
customers' energy consumption and revenue is generated in the
northeast U.S., Ohio, Illinois and Texas (collectively accounting
for 80% of revenue), with the remaining portion coming from
California and other states.
The Debtors blamed the bankruptcy due to lower revenue brought by
increased market competition, which caused the Debtors to default
on certain of their obligations. Gridway defaulted on $60 million
of debt.
Prepetition, the Debtors negotiated a stock purchase transaction
with an interested buyer. But in March 2014, the purchaser
withdrew from the transaction because of the large amount of debt
that the purchaser would become liable through a stock
transaction.
The Debtors are represented by Michael R. Nestor, Esq., Joseph M.
Barry, Esq., and Donald J. Bowman, Jr., Esq., at Young Conaway
Stargatt & Taylor, LLP; and Alan M. Noskow, Esq., and Mark A.
Salzberg, Esq., at Patton Boggs LLP. They employed Omni
Management Group, LLC, as claims and notice agent.
Gridway Energy estimated assets of $500 million to $1 billion and
debt of more than $1 billion.
The Creditors' Committee is represented by Sharon Levine, Esq.,
and Philip J. Gross, Esq., at Lowenstein Sandler LLP; and
Frederick B. Rosner, Esq., and Julia B. Klein, Esq., at The Rosner
Law Group LLC.
Vantage is represented in the case by Ingrid Bagby, Esq., David E.
Kronenberg, Esq., Kenneth Irvin, Esq., and Karen Dewis, Esq., at
Cadwalader, Wickersham & Taft LLP, and Jason M. Madron, Esq., at
Richards, Layton & Finger, P.A.
GROUP HEALTH: S&P Affirms 'BB+' Rating & Revises Outlook to Pos.
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on Group
Health Cooperative and its core operating subsidiaries, including
its 'BB+' long-term counterparty credit and financial strength
ratings. At the same time, S&P revised the outlook on the group
to positive from negative.
The positive outlook on Group Health reflects the group's improved
operating performance and capital adequacy. Operating performance
improved significantly through 2013, and S&P believes Group Health
will sustain this improvement during the next 18 to 24 months.
The company reported dramatic growth in pretax generally accepted
accounting principles (GAAP) operating income (which excludes
realized gains and losses, changes in the value of the company's
interest rate swap, and special charges) with income of $115.6
million in 2013 compared with an operating loss of $22.7 million
in 2012, primarily from the company's improved ability to control
external delivery service expenses.
"The positive outlook indicates that we are likely to raise the
ratings on Group Health Cooperative and its operating subsidiaries
by one notch during the next 12 to 24 months if we gain increasing
certainty that the company's recent improvements in operating
performance, capitalization, and leverage and coverage are
sustainable," said Standard & Poor's credit analyst Neal Freedman.
S&P believes that the company's adjusted EBIT will begin to
stabilize as the company's medical loss ratio improves due to
stabilization in out-of-network benefit usage and profitable
growth in membership. S&P expects Group Health to report adjusted
GAAP EBIT in excess of $100 million in 2014 and 2015, resulting in
a return on revenue (ROR) of 2% to 3%, and capitalization to
remain redundant at least at the 'AA' level. S&P also expects
fixed-charge coverage to remain more than 4x and financial
leverage (including operating leases and unfunded post-retirement
liabilities) to remain less than 35%.
Although unlikely, S&P could revise the outlook to stable if the
company's adjusted EBIT were to decline to an ROR of 0% to 1.5% on
a sustained basis or if capital adequacy were to fall to less than
the 'AA' level. S&P could also revise the outlook to stable if
financial leverage were to increase to more than 35%or if fixed-
charge coverage declined to less than 4x.
GSE ENVIRONMENTAL: Seeks Authority to Pay Bank of America Costs
---------------------------------------------------------------
GSE Environmental, Inc., and its affiliates seek the Bankruptcy
Court's authority to pay fee and expense reimbursements in
connection with potential exit financing.
GSE Environmental intends to obtain exit financing to fund ongoing
operations and obligations due upon emergence from Chapter 11. To
that end, they are in negotiations with Bank of America, N.A.,
regarding a potential asset-backed revolving facility and some
term lenders regarding a potential term loan facility. It is
anticipated that both facilities would provide necessary exit
financing.
Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware, relates that Bank of America is requiring
GSE Environmental for reimbursement of its out-of-pocket costs
incurred during the process necessary to determine whether to
proceed with the exit financing. The costs include fees and
expense of counsel.
GSE Environmental is represented by:
Laura Davis Jones, Esq.
Timothy P. Cairns, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
919 North Market Street, 17th Floor
P.O. Box 8705
Wilmington, DE 19899-8705
Telephone: (302) 652-4100
Facsimile: (302) 652-4400
Email: ljones@pszjlaw.com
tcairns@pszjlaw.com
- and -
Patrick J. Nash, Esq.
Jeffrey D. Pawlitz, Esq.
Bradley Thomas Giordano, Esq.
KIRKLAND & ELLIS LLP
300 North LaSalle
Chicago, IL 60654
Telephone: (312) 862-2000
Facsimile: (312) 862-2200
Email: patrick.nash@kirkland.com
jeffrey.pawlitz@kirkland.com
bradley.giordano@kirkland.com
About GSE Environmental
GSE Environmental -- http://www.gseworld.com-- is a global
manufacturer and marketer of geosynthetic lining solutions,
products and services used in the containment and management of
solids, liquids and gases for organizations engaged in waste
management, mining, water, wastewater and aquaculture.
Headquartered in Houston, Texas, USA, GSE maintains sales offices
throughout the world and manufacturing facilities in the US,
Chile, Germany, Thailand, China and Egypt.
GSE Environmental, Inc. and its affiliates filed for Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 14-11126) on
May 4, 2014 as part of a restructuring support agreement with
their lenders. The Debtors are seeking joint administration of
their Chapter 11 cases.
GSE announced an agreement with its lenders to restructure its
balance sheet by converting all of its outstanding first lien debt
to equity, leaving the Company well-positioned for long-term
growth and profitability.
The Company has tapped Kirkland & Ellis LLP and Pachulski Stang
Ziehl & Jones LLP as counsel, Alvarez & Marsal North America, LLC,
as restructuring advisor, and Moelis & Company, as financial
advisor. The first lien lenders are represented by Wachtell,
Lipton, Rosen & Katz. Prime Clerk is the Debtors' claims agent.
Cantor Fitzgerald Securities as agent for a consortium of DIP
lenders is represented by Nathan Z. Plotkin, Esq., at Shipman &
Goodwin LLP, in Hartford, Connecticut. The DIP Lenders are
represented by Scott K. Charles, Esq., Emily D. Johnson, Esq., and
and Neil K. Chatani, Esq., at Wachtell, Lipton, Rosen & Katz, in
New York. The local Delaware counsel to the DIP Lenders and the
DIP Agent is Russell C. Silberglied, Esq., at Richards, Layton &
Finger, P.A., in Wilmington, Delaware.
GSE Environmental's non-U.S. subsidiaries are not included in the
U.S. Chapter 11 filings and will continue to operate in the
ordinary course without interruption.
* * *
The Bankruptcy Court has approved the disclosure statement filed
by GSE Environmental Inc. for its plan of reorganization. The
hearing at which the Court will consider confirmation of the Plan
will commence at 10:30 a.m., prevailing Eastern Time, on July 25,
2014.
HAITIAN FIRST CHURCH: Case Summary & Largest Unsecured Creditor
---------------------------------------------------------------
Debtor: Haitian First Church of the Bretheren Inc.
1781 Flatbush Avenue
Brooklyn, NY 11210
Case No.: 14-43609
Chapter 11 Petition Date: July 15, 2014
Court: United States Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Hon. Carla E. Craig
Debtor's Counsel: Bruce Weiner, Esq.
ROSENBERG MUSSO & WEINER LLP
26 Court Street, Suite 2211
Brooklyn, NY 11242
Tel: (718) 855-6840
Fax: (718) 625-1966
Email: rmwlaw@att.net
Total Assets: $850,000
Total Liabilities: $1 million
The petition was signed by Verel Montauban, president.
The Debtor listed D.A.M. Nevada LLC, at 30 West Merrick Rd.
Valley Stream, in New York, as its largest unsecured creditor
holding a claim of $1 million.
A copy of the petition is available for free at:
http://bankrupt.com/misc/nyeb14-43609.pdf
HOSTESS BRANDS: Aug. 5 Hearing on Estimation of Washington Claim
----------------------------------------------------------------
The Bankruptcy Court continued until Aug. 5, 2014, at 10:00 a.m.,
the hearing to consider the motion of Old HB, Inc. formerly known
as Hostess Brands, Inc., et al., for the estimation of the claim
of the Department of Labor and Industries of the State of
Washington.
The motion was heard on July 8, at which the Court directed that
the hearing be continued to permit supplemental briefing on
certain issues that were identified by the Court.
The parties have agreed that the deadline for the Department to
file and serve a supplemental brief in support of the objection
will be July 22 at 4:00 p.m. The Debtors' deadline to file a
supplemental reply brief in support of the motion will be July 29,
at 4:00 p.m.
In support of the Debtors' motion, the Debtors stated that:
1. the Department's draw of the entire amount of the bond was
unnecessary, punitive and beyond its authority under the
statute and the form of the bond itself;
2. the Department ignores their stay violation and improper
divestiture of the rights of the Debtors to excess
collateral; and
3. various of the other arguments of the Department have been
addressed in prior matters.
On July 1, the Department objected to the Debtors' motion dated
June 17.
The Debtors are represented by:
Corinne Ball, Esq.
Lisa Laukitis, Esq.
David Marks, Esq.
JONES DAY
222 East 41st Street
New York, NY 10017
Tel: (212) 326-3939
Fax: (212) 755-7306
- and -
Ryan T. Routh, Esq.
JONES DAY
North Point
901 Lakeside Avenue
Cleveland, OH 44114
Tel: (216) 586-3939
Fax: (216) 579-0212
About Hostess Brands
Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known
for iconic brands such as Butternut, Ding Dongs, Dolly Madison,
Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride,
Twinkies and Wonder. Hostess has 36 bakeries, 565 distribution
centers and 570 outlets in 49 states.
Hostess filed for Chapter 11 bankruptcy protection early morning
on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through
12-22056) in White Plains, New York. Hostess Brands disclosed
assets of $982 million and liabilities of $1.43 billion as of the
Chapter 11 filing.
The bankruptcy filing was made two years after predecessors
Interstate Bakeries Corp. and its affiliates emerged from
bankruptcy (Bankr. W.D. Mo. Case No. 04-45814).
In the new Chapter 11 case, Hostess has hired Jones Day as
bankruptcy counsel; Stinson Morrison Hecker LLP as general
corporate counsel and conflicts counsel; Perella Weinberg Partners
LP as investment bankers, FTI Consulting, Inc. to provide an
interim treasurer and additional personnel for the Debtors, and
Kurtzman Carson Consultants LLC as administrative agent.
Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry
Wilson, the head of turnaround and restructuring firm MAEVA
Advisors, are representing the Teamsters union.
Attorneys for The Bakery, Confectionery, Tobacco Workers and Grain
Millers International Union and Bakery & Confectionery Union &
Industry International Pension Fund are Jeffrey R. Freund, Esq.,
at Bredhoff & Kaiser, P.L.L.C.; and Ancela R. Nastasi, Esq., David
A. Rosenzweig, Esq., and Camisha L. Simmons, Esq., at Fulbright &
Jaworski L.L.P.
The official committee of unsecured creditors selected New York
law firm Kramer Levin Naftalis & Frankel LLP as its counsel. Tom
Mayer and Ken Eckstein head the legal team for the committee.
Hostess Brands in mid-November 2012 opted to pursue the orderly
wind down of its business and sale of its assets after the Bakery,
Confectionery, Tobacco and Grain Millers Union (BCTGM) commenced a
nationwide strike. The Debtor failed to reach an agreement with
BCTGM on contract changes.
Hostess Brands sold its businesses and most of the plants to five
different buyers for an aggregate of $860 million. Hostess still
has some plants, depots and other facilities the buyers didn't
acquire.
The bankruptcy estate has changed its name to Old HB Inc.
HOSTESS BRANDS: Authorized to Reject Contracts and Leases
---------------------------------------------------------
Bankruptcy Judge Robert D. Drain entered on July 9, 2014, a 22nd
order (a) authorizing Old HB, Inc., formerly known as Hostess
Brands, Inc., et al., to (i) reject certain executory contracts
and unexpired leases not necessary to implement the Debtors' wind-
down plan; and (b) setting a rejection claims bar date.
In accordance with the order, any entity asserting claims arising
from or relating to the rejection of any of the rejected
contracts, or asserting claims otherwise related to the rejected
contract, including (a) secured claims, unsecured priority claims
and unsecured nonpriority claims that arose or are deemed to have
arisen prior to the Petition Date; and (b) administrative claims
arising from and after Feb. 1, 2013, must file a proof of claim on
the date that is 30 days after the entry of the order.
If an entity fails to timely and properly file a rejection damages
claim by the Rejection Damages Bar Date, the party will be forever
barred, estopped and enjoined from asserting the rejection damages
claim against the Debtors.
About Hostess Brands
Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known
for iconic brands such as Butternut, Ding Dongs, Dolly Madison,
Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride,
Twinkies and Wonder. Hostess has 36 bakeries, 565 distribution
centers and 570 outlets in 49 states.
Hostess filed for Chapter 11 bankruptcy protection early morning
on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through
12-22056) in White Plains, New York. Hostess Brands disclosed
assets of $982 million and liabilities of $1.43 billion as of the
Chapter 11 filing.
The bankruptcy filing was made two years after predecessors
Interstate Bakeries Corp. and its affiliates emerged from
bankruptcy (Bankr. W.D. Mo. Case No. 04-45814).
In the new Chapter 11 case, Hostess has hired Jones Day as
bankruptcy counsel; Stinson Morrison Hecker LLP as general
corporate counsel and conflicts counsel; Perella Weinberg Partners
LP as investment bankers, FTI Consulting, Inc. to provide an
interim treasurer and additional personnel for the Debtors, and
Kurtzman Carson Consultants LLC as administrative agent.
Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry
Wilson, the head of turnaround and restructuring firm MAEVA
Advisors, are representing the Teamsters union.
Attorneys for The Bakery, Confectionery, Tobacco Workers and Grain
Millers International Union and Bakery & Confectionery Union &
Industry International Pension Fund are Jeffrey R. Freund, Esq.,
at Bredhoff & Kaiser, P.L.L.C.; and Ancela R. Nastasi, Esq., David
A. Rosenzweig, Esq., and Camisha L. Simmons, Esq., at Fulbright &
Jaworski L.L.P.
The official committee of unsecured creditors selected New York
law firm Kramer Levin Naftalis & Frankel LLP as its counsel. Tom
Mayer and Ken Eckstein head the legal team for the committee.
Hostess Brands in mid-November 2012 opted to pursue the orderly
wind down of its business and sale of its assets after the Bakery,
Confectionery, Tobacco and Grain Millers Union (BCTGM) commenced a
nationwide strike. The Debtor failed to reach an agreement with
BCTGM on contract changes.
Hostess Brands sold its businesses and most of the plants to five
different buyers for an aggregate of $860 million. Hostess still
has some plants, depots and other facilities the buyers didn't
acquire.
The bankruptcy estate has changed its name to Old HB Inc.
INVENTIV HEALTH: S&P Revises Outlook & Rates $507MM Notes 'CCC+'
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
Burlington, Mass. contract pharmaceutical services provider
inVentiv Health Inc. to stable from negative. At the same time,
S&P assigned its 'CCC+' issue-level rating to the company's
proposed $507 million second-lien PIK toggle notes due 2018. The
recovery rating is '6', reflecting S&P's expectation for
negligible (0%-10%) recovery in the event of bankruptcy. S&P
affirmed all other ratings, including the 'B-' corporate credit
rating.
S&P's rating action follows inVentiv's announcement that has
launched a transaction to address near-term refinancing concerns
and enhance liquidity, allowing the company greater flexibility to
enact its operational turnaround. The company plans to extend the
maturity of its existing B1-2 term loan and to exchange $450
million of its existing unsecured notes for new second-lien notes
with a PIK toggle feature. In addition, financial sponsor TH Lee
is injecting $50 million in cash into the company in the form of
the purchase of $25 million of the new second-lien notes and a
$26.3 million add-on to the existing senior unsecured debt.
"Our ratings on inVentiv reflect the company's very high leverage
and limited cash flow, which are key factors underlying our view
that the company's financial risk profile is "highly leveraged".
Our ratings also incorporate our view that inVentiv is narrowly
focused on a highly competitive industry where contract
cancelations can introduce an element of earnings volatility,
which supports our view that the company's business risk profile
is "weak"," said credit analyst Shannan Murphy.
S&P's stable outlook reflects its view that the proposed capital
structure provides inVentiv with significant financial and
operating flexibility over the next few years as the company works
to grow EBITDA to support a very highly leveraged capital
structure. While leverage is very high at over 10x, S&P believes
the company's balance sheet cash and revolver availability will be
sufficient to support its cash needs over the next few years.
Downside Scenario
S&P could lower the rating if inVentiv depletes its cash balances
and shows limited prospects for improved cash flow generation, as
this might cause us to believe that the company's capital
structure is not sustainable over the long term. In S&P's view,
this could happen if the company encounters a serious quality
issue that results in major customer and contract losses,
prompting mid-single-digit revenue declines and margin erosion.
Upside Scenario
Given the company's very high debt leverage and thin projected
cash flow, a higher rating is unlikely over the next year absent a
transaction that materially reduces debt leverage and the
associated interest burden.
JOHN Q. HAMMONS: Partner Interests in Hotel to Be Sold Aug. 5
-------------------------------------------------------------
Jones Lang LaSalle will sell at auction on Aug. 5, 2014, all of
rights, title and interests of John Q. Hammons, as trustee of The
Revocable Trust of John Q. Hammons dated Dec. 28, 1989, as amended
and restated, and Hammons Inc. -- as pledgors -- in and to all
"Hamons Preferred Units" consisting of certain limited partner
interests under a Fourth Amended and Restated Agreement of Limited
Partnership of John Q. Hammons Hotels L.P., n/k/a Atrium Hotels
L.P., and the proceeds thereof, f/k/a John Q. Hammons Hotels L.P.,
owned by the pledgors.
The Hammons et al. are parties to a Pledge and Security Agreement
dated as of Sept. 16, 2005, as amended, with Atrium Lendco LLC as
lender; and SFI Belmont LLC, in its capacity as lender's
collateral assignee, and irrevocable attorney-in-fact. Atrium
Lendco is not purporting to sell any interest not owned by the
pledgors or not subject to a first-priority lien in favor of the
lender. The collateral secures payment of the pledgors' debt
under the Agreement.
The collateral will be sold at a public auction at the offices of
Katten Muchin Rosenman LLP at 525 W. Monroe Street, Chicago, IL,
60861. The auction will start at 10:00 a.m. CT.
The collateral wil be offered for sale as a single lot and sold to
the highest bidder, as determined by SFI in its sole and absolute
discretion, on an "as is, where is" basis.
All bids must be cash.
A successful bid must be accompanied by a certified check payable
to SFI in an amount no less than 10% of the bid amount, as a non-
refundable deposit, with the entire balance payable within 24
hours after the sale.
If the successful bidder fails to pay the balance of the
successful bid, the initial deposit will be forfeited to SFI as
liquidated damages and the collateral may, at SFI's option, be
sold to the next highest bidder.
SFI reserves the right to credit bid.
Persons interested in bidding on the collateral or desiring other
information, including who qualifies as a qualified transferee and
the status of the collateral, may contact:
Bill Grice
Tel: 404-995-2154
E-mail: Bill.Grice@am.jil.com
On the Net: www.johnqhammons-uccforeclosure.com
KIDSPEACE CORP: Removes KNCG From Joint Administration
------------------------------------------------------
The Hon. Richard E. Fehling of the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania authorized KidsPeace Corporation
and its debtor-affiliates to remove KidsPeace National Centers of
Georgia (Case No. 13-14512) from the joint administration with the
their related Chapter 11 case for procedural purposes.
About KidsPeace Corp.
KidsPeace Corp., a provider of behavioral services for children,
filed a petition for Chapter 11 reorganization (Bankr. E.D. Pa.
Case No. 13-14508) on May 21, 2013, in Reading, Pennsylvania.
KidsPeace operates a 96-bed pediatric psychiatric hospital in
Orefield, Pennsylvania. Assets are $86.7 million, and debt on the
books is $158.6 million, according to a court filing.
The Debtor, which sought bankruptcy protection with eight
affiliates, tapped Norris McLaughlin & Marcus, P.A. as counsel;
EisnerAmper LLP as financial advisor, and Rust Omni as claims and
notice agent.
Assets total $158,587,999 at the end of 2012. The Debtors owe
approximately $56,206,821 in bond debt, and they have been told
that their pension liability is allegedly about $100,000,000 of
which the Debtors currently reflect $83,049,412 on their books.
KidsPeace sought Chapter 11 (i) as a means to implement a
negotiated restructuring of bond debt currently aggregating
approximately $51,310,000 plus accrued interest to a reduced
amount of approximately $24 million in new 30-year bonds with
interest at 7.5 percent, and (ii) to continue on-going
negotiations with the Pension Benefit Guaranty Corporation in
hopes of reducing the PBGC asserted obligation of $100+ million to
an amount that the Debtors can reasonably expect to satisfy.
The Debtor disclosed $157,930,467 in assets and $168,768,207 in
liabilities as of the Chapter 11 filing.
Since March 2012, MK has been exploring possible affiliation or
acquisition opportunities; however, no offer of an affiliation or
acquisition has been presented to the Debtors.
Gemino Healthcare Finance, LLC, the prepetition revolving lender,
is represented by James S. Rankin, Jr., Esq., at Parker, Hudson,
Rainer & Dobbs LLP; and Weir & Partners LLP's Walter Weir, Jr.,
Esq.
UMB Bank, N.A., on behalf of bondholders, Performance Food Group
d/b/a AFI, W.B. Mason Co., Inc., Pension Benefit Guaranty
Corporation, and Teresa Laudenslager were appointed to an official
committee of unsecured creditors in the Debtors' cases. The
Official Committee of Unsecured Creditors is represented by
Fitzpatrcik Lentz & Bubba, P.C., and Lowenstein Sandler LLP as
counsel. FTI Consulting, Inc. serves as the panel's financial
advisor.
LIFE UNIFORM: Wants to Sell Rights to Class Action Recoveries
-------------------------------------------------------------
LUHC Wind Down Corp., formerly known as Life Uniform Holding
Corp., and its affiliates, seek the Bankruptcy Court's authority
to sell rights to any payments they may recover as a result of a
class action interchange litigation.
On October 20, 2005, an action was initiated in the U.S. District
Court for the Eastern District of New York by various retailers
and trade associations against Visa U.S.A. Inc. and Mastercard
International Inc. The plaintiffs asserted that Visa and
Mastercard conspired to unlawfully fix the price of interchange
fees to merchants for transactions processed over their networks.
An interchange fee is a fee that a merchant's bank pays a
customer's bank when merchants accept cards using card networks
like Visa and MasterCard for purchases.
On December 13, 2013, the Eastern District Court approved a class
settlement in the class action interchange litigation. The order
approving the settlement is under appeal. Life Uniform may have a
claim in the litigation and may be entitled to a monetary
recovery. However, it is impossible to predict when the settlement
event will occur and any actual recovery could be obtained.
To bring additional assets into their estates, Life Uniform want
to sell their contingent rights to Cascade Settlement Services LLC
or a party submitting a better offer. The parties have negotiated
an asset purchase agreement, selling the assets for $135,000, but
is subject to higher offers.
Michael W. Yurkewicz, Esq., at Klehr Harrison Harvey Branzburg
LLP, in Wilmington, Delaware, relates that Life Uniform has
attempted to market the asset and reached out to all known
industry players. Of the interest received, Life Uniform
determined the agreement with Cascade provided the best
opportunity.
Life Uniform is represented by:
Domenic E. Pacitti, Esq.
Michael W. Yurkewicz, Esq.
KLEHR HARRISON HARVEY BRANZBURG LLP
919 N. Market Street, Suite 1000
Wilmington, DE 19801
Telephone: (302) 426-1189
Facsimile: (302) 426-9193
About Life Uniform
Life Uniform was founded in 1965 when Angelica Corporation decided
to enter the retail uniform industry. The first Life Uniform
store opened in 1965 in Clayton, Missouri. At present, Life
Uniform is the nation's largest independently owned medical
professional supplier.
Sun Uniform LLC acquired Life Uniform in July 2004. Since the
acquisition by Sun the company addressed sagging profitability and
overhead issues and quickly drove increases in profitability
through a combination of store rationalization and sensible
corporate overhead initiatives. However, recent performance has
been declining in terms of revenue. This is due to the company's
liquidity issues, which prevented the company from completing its
e-commerce system upgrade, encourage better pricing from vendors,
and maintain sufficient capital.
Life Uniform Holding Corp., Healthcare Uniform Company, Inc., and
Uniform City National Inc. filed Chapter 11 petitions (Bankr. D.
Del. Case Nos. 13-11391 to 13-11393) on May 29, 2013. The
petitions were signed by Bryan Graiff, COO, CFO, VP, secretary,
and treasurer. Life Uniform Holding disclosed $10,695,870 in
assets and $36,821,034 in liabilities as of the Chapter 11 filing.
Life Uniform and Uniform City received court authority on July 26
to sell the business for $22.6 million to Scrubs & Beyond LLC.
There were no competing bids, so an auction wasn't held.
First lien lender CapitalSource Finance LLC is owed on a $11.5
million revolver and $26 million term loan. CapitalSource is
represented by Brian T. Rice, Esq., at Brown Rudnick LLP; and
Jeffrey C. Wisler, Esq., at Connolly Gallagher LLP.
Sun Uniforms Finance LLC is owed $6.1 million in principal on a
second lien note and holds two additional notes, each in the
original principal of $1.08 million. Angelica Corp. holds an
unsecured junior subordinate not in the principal amount of $5.48
million.
Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg, LLP,
serves as the Debtors' counsel. Epiq Bankruptcy Solutions acts as
the Debtors' administrative agent, and claims and noticing agent.
The Debtors' financial advisor is Capstone Advisory Group, LLC.
Crowe Horwath LLP serves as tax accountants and Brown Smith
Wallace LLC as wind-down tax accountants.
Richard Stern, Esq., at Luskin Stern & Eisler LLP, was appointed
independent fee examiner in the case. Luskin, Stern & Eisler LLP
serves as his counsel and The Rosner Law Group LLC, serves as his
Delaware counsel.
The Official Committee of Unsecured Creditors is represented by
Seth Van Aalten, Esq., at Cooley LLP, and Ann M. Kashishian, Esq.,
at Cousins Chipman & Brown, LLP as counsel.
The U.S Trustee for Region 3 appointed Boris Segalis of
InfoLawGroup LLP as consumer privacy ombudsman in the case.
LIGHTSQUARED INC: To File New Chapter 11 Exit Plan
--------------------------------------------------
LightSquared Inc. is set to file within a week details of its new
Chapter 11 plan that would finally resolve its dispute with Dish
Network Corp. Chairman Charlie Ergen over more than $1 billion in
secured debt he holds in the company.
Under the new plan, Mr. Ergen will get a $1 billion claim, which
would represent a $316 million reduction to his initial claim.
That would roll into a new loan for LightSquared when it emerges
from bankruptcy, and Mr. Ergen will provide an additional $300
million in financing, according to a July 14 report by Bloomberg
News.
The wireless broadband company's deal with Mr. Ergen, which has
yet to be completed, would finally settle their dispute, which
scuttled a prior plan to reorganize.
Last week, U.S. Bankruptcy Judge Shelley Chapman denied the
confirmation of LightSquared's prior plan due to its "unfair"
treatment of Mr. Ergen's $1 billion in debt he holds through his
investment vehicle SP Special Opportunities LLC.
LightSquared had proposed to repay other holders of the company's
bank debt in full, in cash, while Mr. Ergen would be repaid over
seven years, in a note rather than in cash. Mr. Ergen opposed the
proposal, saying the note would be out of money when LightSquared
exits bankruptcy.
In a decision issued on July 11, Judge Chapman said the note
"would still not constitute the indubitable equivalent" of SP
Special's claim because it has longer maturity and provides for
"far riskier third lien treatment subordinated behind at least
$2.2 billion of senior debt."
A full-text copy of Judge Chapman's order is available without
charge at http://is.gd/WPSsh4
LightSquared has accused Mr. Ergen of secretly accumulating about
$1 billion of its debt through the fund so he can buy the
company's airwaves for a below-market price through bankruptcy.
The company said Mr. Ergen was acting on behalf of Dish, a
competitor, which makes the purchases improper.
An agreement between LightSquared and its lenders barred
competitors from acquiring the company's debt, according to court
papers.
LightSquared and its main shareholder Harbinger Capital Partners
filed a case against Mr. Ergen and his company, alleging he had
purchased the debt on Dish's behalf. Mr. Ergen defended the
purchase, saying he bought the debt in his personal capacity.
About LightSquared Inc.
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, to resolve regulatory issues that have prevented it
from building its coast-to-coast integrated satellite 4G wireless
network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties.
Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to
the Debtors. Alvarez & Marsal North America, LLC, is the
financial advisor. Kurtzman Carson Consultants LLC serves as
claims and notice agent.
LIGHTSQUARED INC: Harbinger Again Dodges Class Claims
-----------------------------------------------------
Law360 reported that a New York federal judge won't revive state-
law class claims against hedge fund Harbinger Capital Partners LLC
over its $3 billion investment in doomed startup LightSquared
Inc., saying that an exception outlined by the U.S. Supreme Court
in February can't redeem the claims. According to the report,
U.S. District Judge Alison Nathan denied the investors' motion for
reconsideration of her September opinion killing off the claims,
citing a domino chain of precedent created by a new Second Circuit
reading of the February Supreme Court ruling in Chadbourne & Parke
LLP v. Troice. Judge Nathan said the Second Circuit's new reading
only reinforced the Securities Litigation Uniform Standards Act's
preclusion of the state-law class claims in the investor suit, the
report related.
The case is Schad et al. v. Harbinger Capital Partners LLC et al.,
case number 12-cv-01244, in the U.S. District Court for the
Southern District of New York.
About LightSquared Inc.
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, to resolve regulatory issues that have prevented it
from building its coast-to-coast integrated satellite 4G wireless
network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties.
Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to
the Debtors. Alvarez & Marsal North America, LLC, is the
financial advisor. Kurtzman Carson Consultants LLC serves as
claims and notice agent.
LIGHTSQUARED INC: Seeks Approval of SunTrust Credit Card Program
----------------------------------------------------------------
LightSquared Inc. has filed a motion seeking court approval to
avail SunTrust Bank's credit card services.
The move came after Bank of America NA canceled its credit card
program with LightSquared covering the wireless broadband
company's and its employees' expenses, including entertainment and
corporate travel expenses.
The SunTrust program will provide credit card services up to an
aggregate credit limit of $100,000 to LightSquared. In exchange,
the company is required to open an account with SunTrust in which
it will deposit $100,000.
LightSquared is also required to sign an agreement under which it
will transfer to the bank all rights to the account and proceeds
thereof, according to court filings.
Milbank Tweed Hadley & McCloy LLP, the company's legal counsel,
will present the motion to U.S. Bankruptcy Judge Shelley Chapman
for approval on July 22. Objections are due by July 22, at 4:00
p.m. (prevailing Eastern time).
About LightSquared Inc.
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, to resolve regulatory issues that have prevented it
from building its coast-to-coast integrated satellite 4G wireless
network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties.
Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to
the Debtors. Alvarez & Marsal North America, LLC, is the
financial advisor. Kurtzman Carson Consultants LLC serves as
claims and notice agent.
LIGHTSQUARED INC: Has Access to Cash Collateral Until July 21
-------------------------------------------------------------
U.S. Bankruptcy Judge Shelley Chapman authorized LightSquared to
continue to use the cash collateral of lenders under a 2010 credit
agreement until July 21.
The judge's order issued on July 14 does not require LightSquared
to pay the so-called adequate protection payment to the lenders.
The company, however, is required to pay the fees and expenses of
White & Case LLP and The Blackstone Group LP.
A full-text copy of the July 14 order is available without charge
at http://is.gd/Ul9PkE
About LightSquared Inc.
LightSquared Inc. and 19 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on
May 14, 2012, to resolve regulatory issues that have prevented it
from building its coast-to-coast integrated satellite 4G wireless
network.
LightSquared had invested more than $4 billion to deploy an
integrated satellite-terrestrial network. In February 2012,
however, the U.S. Federal Communications Commission told
LightSquared the agency would revoke a license to build out the
network as it would interfere with global positioning systems used
by the military and various industries. In March 2012, the
Company's partner, Sprint, canceled a master services agreement.
LightSquared's lenders deemed the termination of the Sprint
agreement would trigger cross-defaults under LightSquared's
prepetition credit agreements.
LightSquared and its prepetition lenders attempted to negotiate a
global restructuring that would provide LightSquared with
liquidity and runway necessary to resolve its issues with the FCC.
Despite working diligently and in good faith, however,
LightSquared and the lenders were not able to consummate a global
restructuring on terms acceptable to all interested parties.
Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to
the Debtors. Alvarez & Marsal North America, LLC, is the
financial advisor. Kurtzman Carson Consultants LLC serves as
claims and notice agent.
LOFINO PROPERTIES: Ch. 11 Trustee Taps Gibbs as Special Counsel
---------------------------------------------------------------
Henry E. Menninger, Jr., as Chapter 11 Trustee for Lofino
Properties LLC and Southland 75 LLC, asks the Hon. Lawrence S.
Walter of the U.S. Bankruptcy Court for the Southern District of
Ohio for permission to retain The Gibbs Firm, LPA as his special
counsel, nunc pro tunc March 25, 2014.
The firm is expected to appeal the real estate taxes on the
properties subject to the mortgages of Glicny Real Estate Holding
LLC.
The firm proposes to perform legal services in connection with its
employment on an hourly basis at $300 per hour, which is less than
the $350 per hour usual and customary hourly rate of Ryan J.
Gibbs, Esq., attorney at the firm, plus reimbursement of
reasonable and necessary expenses.
The Chapter 11 Trustee assures the Court that the firm is a
"disinterested person" within the meaning of Section 101(14) of
the Bankruptcy Code.
About Lofino Properties & Southland 75
Dayton, Ohio-based Lofino Properties, LLC, which owns retail
stores, sought bankruptcy protection (Bankr. S.D. Ohio Case No.
13-34099) on Oct. 4, 2013. Lofino Properties listed assets of
$19.91 million and liabilities of about $13.15 million.
A sister company, Southland 75 LLC, which owns a strip shopping
center, sought bankruptcy protection (Bankr. S.D. Ohio Case No.
13-34100) on the same day. Southland 75 listed assets of $8.09
million and liabilities of $5.62 million.
The Hon. Judge Lawrence S. Walter presides over the cases.
According to the petitions, attorneys at Pickrel, Schaeffer, and
Ebeling, in Dayton, Ohio, represent the Debtors as counsel. The
petitions were signed by Michael D. Lofino, managing member.
In re Southland 75, LLC, case no. 13-34100, has been substantively
consolidated on lead case no. 13-34099.
Henry E. Menninger, Jr., has been appointed the chapter 11
trustee, and is represented by Raymond J. Pikna, Jr., Esq., at
Wood & Lamping LLP.
Attorneys for lender, First Financial Bank, N.A., can be reached
at Robert G. Sanker, Esq., and Jason V. Stitt, Esq., at Keating
Muething & Klekamp PLL.
Maria Mariano Guthrie, Esq., and Leon Friedberg, Esq., at Carlile
Patchen & Murphy, represent Jamie Hadac at Foresite Realty, as
Receiver.
Larry J. McClatchey, Esq., at Kegler Brown Hill + Ritter,
represents LCM Investments Management LLC.
GLICNY Real Estate Holding, LLC, is represented by Isaac M.
Gabriel, Esq., at Quarles & Brady LLP; and Gilbert E. Blomgren,
Esq., at Blomgren & Bobka Co., L.P.A.
MEDIA SERVICES: Court Dismisses "Miller" Lawsuit
------------------------------------------------
District Judge James L. Robart granted the Plaintiffs' motion to
dismiss their claims against Defendant Media Services Acquisition
Corporation, without prejudice and without costs to any party, in
the case, JON MILLER, et al., Plaintiffs, v. MEDIA SERVICES
ACQUISITION CORP., et al., Defendants, CASE NO. C09-1425JLR (W.D.
Wash.). No party has filed an opposition to Plaintiffs' motion.
The court previously stayed the Plaintiffs' claims against Media
Services due to Media Services' bankruptcy filing. The bankruptcy
proceedings have since been dismissed.
A copy of the Court's June 30, 2014 Order is available at
http://is.gd/27lBCCfrom Leagle.com.
New York-based Media Services Acquisition Corporation Inc., filed
for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 10-13396) on
June 25, 2010. Robert M. Fox, Esq., at the Law Offices of Robert
M Fox, served as the Debtor's counsel. In its petition, the
Debtor estimated $1 million to $10 million in assets and
liabilities. The petition was signed by Adam Cohen, chief
executive officer.
MISSION NEW ENERGY: Awaits Final Ruling on Aborted Joint Venture
----------------------------------------------------------------
Mission NewEnergy Limited said it is awaiting the final ruling
from the arbitration panel regarding the terminated Indonesian
joint venture. The date for the decision reading was due to be
held on July 11, 2014. The Arbitration Tribunal has now deferred
this matter until July 18, 2014.
About Mission NewEnergy
Based in Subiaco, Western Australia, Mission NewEnergy Limited is
a producer of biodiesel that integrates sustainable biodiesel
feedstock cultivation, biodiesel production and wholesale
biodiesel distribution focused on the government mandated markets
of the United States and Europe.
The Company is not operating its biodiesel refining segment. The
refineries are being held in care and maintenance either awaiting
a return to positive operating conditions or the sale of assets.
The Company has materially diminished its Jatropha contract
farming operation and the company is now focused on divesting the
remaining Indian assets. The Company intends to cease all Indian
operations.
The Company's balance sheet at Dec. 31, 2013, showed $4.92 million
in total assets, $13.96 million in total liabilities and a $9.04
million total deficiency.
Mission NewEnergy disclosed net profit of A$10.05 million on
A$8.41 million of total revenue for the year ended June 30, 2013,
as compared with a net loss of A$6.19 million on A$38.20 million
of total revenue during the prior fiscal year.
BDO Audit (WA) Pty Ltd, in Perth, Western Australia, issued a
"going concern" qualification on the consolidated financial
statements for the year ended June 30, 2013. The independent
auditors noted that the Company incurred operating cash outflows
of $3.7 million during the year ended 30 June 2013 and, as of that
date the consolidated entity's total liability exceeded its total
assets by $12.5 million. These conditions, along with other
matters, raise substantial doubt the Company's ability to continue
as a going concern.
MOSS FAMILY: AAK's Motion to Withdraw as POA Counsel Denied
-----------------------------------------------------------
Bankruptcy Judge Harry C. Dees, Jr., denied the motion of Scott M.
Keller, Bernard E. Edwards, Jr. and the law firm of Anderson,
Agostino & Keller, P.C. to withdraw appearance as counsel for
Beachwalk Property Owners Association, Inc., creditor in the
Chapter 11 cases of Moss Family Limited Partnership and Beachwalk
L.P.
The Court, in its order dated July 8, 2014, said that the firm
failed to provide a proposed form of the order on the amended
motion to withdraw appearance.
The movants, in their motion, stated that on June 16, the new
president of Beachwalk POA, Thomas Pugh, sent an email to the
counsel stating that Beachwalk POA was making a change in its
legal representation in the bankruptcy case and instructing that
AAK should terminate its legal services for Beachwalk POA.
The movant can be reached at:
Bernard E. Edwards, Jr., Esq.
Scott M. Keller, Esq.
Bernard E. Edwards, Jr., Esq.
ANDERSON, AGOSTINO & KELLER, P.C.
131 South Taylor Street
South Bend, IN 46601
Tel: (574) 288-1510
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.
The Debtors' Amended Joint Chapter 11 Plan dated Dec. 3, 2013,
provides that unsecured claims will be fully paid and satisfied by
use of the proceeds from the sale of LaPorte Judgment Lien
Property.
MOSS FAMILY: POA Says Compromise to Impair Interest in Property
---------------------------------------------------------------
Creditor Beachwalk Property Owners Association, Inc., objected to
the approval of Moss Family Limited Partnership, and Beachwalk,
LP's secured financing to fund a proposed settlement with creditor
LaPorte Savings Bank, stating that the Debtors appear to be
seeking to alter the existing interest of the POA in certain
property by encumbering it with new mortgage liens.
The POA's interest arises by virtue of the Debtors' promises to
convey certain property (the Amenity Property) which the POA has
exclusively paid for and maintained for more than 20 years.
The Amenity Property primarily encompasses common area amenities
which exist for the benefit of Beachwalk homeowners and were
marketed and promised to them at the time they purchased homes in
the Beachwalk Development. An adversary proceeding is pending to
determine the validity and priority of the POA's interest and to
avoid liens on the property obtained by the Bank as fraudulent
transfers.
In a separate filing, POA made a limited objection to the motion
to compromise claim and approve the settlement agreement between
the Debtors, and LaPorte Savings Bank.
The POA is the homeowners association which serves property owners
in the Beachwalk Development. POA asked the Court to deny the
Debtors' motion to the extent it seeks to impair any of the POA's
interests in the amenity property.
On June 12, 2014, the Debtors filed their motion requesting
approval of the terms of a settlement with LaPorte Savings Bank
which among other things, seeks to convey certain property in the
Beachwalk Development to the bank.
Additionally, based on the representations in the Debtors' motion
to approve secured financing, the Debtors sought to encumber
certain property in the Beachwalk Development in order to raise
funds to make the cash settlement payment proposed in the motion.
The POA is represented by:
Samuel D. Hodson, Esq.
John R. Humphrey, Esq.
Erin C. Nave, Esq.
TAFT STETTINIUS & HOLLISTER LLP
One Indiana Square, Suite 3500
Indianapolis, IN 46204
Tel: (317) 713-3500
Fax: (317) 713-3699
E-mail: shodson@taftlaw.com
jhumphrey@taftlaw.com
enave@taftlaw.com
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.
The Debtors' Amended Joint Chapter 11 Plan dated Dec. 3, 2013,
provides that unsecured claims will be fully paid and satisfied by
use of the proceeds from the sale of LaPorte Judgment Lien
Property.
NATIVE WHOLESALE: Case Conversion Hearing Moved to July 28
----------------------------------------------------------
The hearing on the motion to convert the case of Native Wholesale
Supply Company from Chapter 11 to Chapter 7 filed by U.S. Trustee
Joseph W. Allen has been continued to July 28, 2014, at 1:00 p.m.
As reported in the Troubled Company Reporter on March 13, 2014,
the U.S. Trustee argued that the Debtor has (1) an inability to
perform the statutory duties of a debtor-in-possession and to
comply with the requirements of the Chapter 11 Operating
Guidelines; and (2) failed to file monthly financial reports for
February and March 2013. The States of California, Idaho, New
Mexico, New York, and Oklahoma and the United States have filed a
statement in support of the U.S. Trustee's motion to convert or
dismiss the Chapter 11 case.
The TCR also reported on June 19, 2014, that the Debtor filed
papers in court opposing the U.S. Trustee's Motion to Convert,
whereby its lawyer said the grounds cited by the U.S. Trustee no
longer exist as the Debtor is "current" in filing its monthly
operating reports and is profitable as shown in those reports.
About Native Wholesale Supply Company
Native Wholesale Supply Company is engaged in the business of
importing cigarettes and other tobacco products from Canada and
selling them to third parties within the United States. It
purchases the products from Grand River Enterprises Six Nations,
Ltd., a Canadian corporation and the Debtor's only secured
creditor. Native is an entity organized under the Sac and Fox
Nation and has its principal place of business at 10955 Logan Road
in Perrysburg, New York.
Native filed for Chapter 11 bankruptcy (Bankr. W.D.N.Y. Case No.
11-14009) on Nov. 21, 2011. The Chapter 11 filing was triggered
to resolve an ongoing dispute with the United States government
regarding up to $43 million in assessments made by the government
against the Debtor pursuant to the Fair and Equitable Tobacco
Reform Act of 2004 and the Tobacco Transition Payment Program and
to restructure the terms of payment of any obligation determined
to be owing by the Debtor to the U.S. under the Disputed
Assessment. The issues pertaining to the Disputed Assessment
resulted in two lawsuits, subsequently consolidated, now pending
in the Federal District Court.
Robert J. Feldman, Esq., and Janet G. Burhyte, Esq., at Gross,
Shuman, Brizdle & Gilfillan, P.C., in Buffalo, N.Y., represent the
Debtor as counsel.
The Company disclosed $30,022,315 in assets and $70,590,564 in
liabilities as of the Chapter 11 filing.
The States of California, New Mexico, Oklahoma and Idaho have
appeared in the case and are represented by Garry M. Graber, Esq.,
and Craig T. Lutterbein, Esq., at Hodgson Russ LLP, in Buffalo,
New York, and Karen Cordry, Esq., National Association of
Attorneys General, in Washington, D.C.
According to a Consensual Disclosure Statement for Joint
Consensual Plan of Reorganization of Native Wholesale Supply
Company, and the States dated March 6, 2014, the Debtor
established a Plan Funding Account at M&T and deposited
$5.5 million on Feb. 4, 2014, and an additional $500,000 was
deposited on Feb. 14, 2014. An additional $500,000 will be
deposited in the Plan Funding Account on each succeeding 15th day
of each month (or the first business day after the 15th)
beginning in March 2014 until the Plan is confirmed.
No trustee, examiner or creditors' committee has been appointed in
the case.
NAUTILUS HOLDINGS: Sec. 341 Creditors' Meeting Set for Aug. 12
--------------------------------------------------------------
Pursuant to section 341 of the Bankruptcy Code, the United States
Trustee for the Southern District of New York has scheduled a
meeting of creditors in the Chapter 11 cases of Nautilus Holdings
Limited and 20 affiliated companies to be held on Aug. 12, 2014,
at 2:30 p.m. (ET), 80 Broad Street, 4th Floor, New York, New York
10004.
About Nautilus Holdings
Nautilus Holdings Limited and 20 affiliated companies, including
Nautilus Holdings No. 2 Limited, filed bare-bones Chapter 11
bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 14-22885) in
White Plains, New York, on June 23, 2014.
The affiliates are Nautilus Holdings No. 2 Limited; Nautilus
Shipholdings No. 1 Limited; Nautilus Shipholdings No. 2 Limited;
Nautilus Shipholdings No. 3 Limited; Able Challenger Limited;
Charming Energetic Limited; Dynamic Continental Limited; Earlstown
Limited; Findhorn Osprey Limited; Floral Peninsula Limited; Golden
Knighthead Limited; Magic Peninsula Limited; Metropolitan Harbour
Limited; Metropolitan Vitality Limited; Miltons' Way Limited;
Perpetual Joy Limited; Regal Stone Limited; Resplendent Spirit
Limited; Superior Integrity Limited; and Vivid Mind Limited.
The Debtors' cases have been assigned to Judge Robert D. Drain,
and are being jointly administered for procedural purposes.
Hamilton, Bermuda-based Nautilus estimated $100 million to $500
million in assets and debt. Monrovia, Liberia-based Reminiscent
Ventures S.A. owns 100% of the stock. Nautilus has tapped Jay
Goffman, Esq., Mark A. McDermott, Esq., Shana A. Elberg, Esq., and
Suzanne D.T. Lovett, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in New York, as counsel; and AP Services, LLC, as financial
advisor. Epiq Bankruptcy Solutions LLC serves as the claims and
noticing agent.
NEUMA INC: Case Summary & 4 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: Neuma, Inc.
4709 Golf Road
Skokie, IL 60076
Case No.: 14-26015
Chapter 11 Petition Date: July 15, 2014
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Hon. Pamela S. Hollis
Debtor's Counsel: Scott R Clar, Esq.
CRANE, HEYMAN, SIMON, WELCH & CLAR
135 S Lasalle Suite 3705
Chicago, IL 60603
Tel: 312 641-6777
Fax: 312 641-7114
Email: sclar@craneheyman.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by David I. Binter, president.
A list of the Debtor's four largest unsecured creditors is
available for free at http://bankrupt.com/misc/ilnb14-26015.pdf
NEW MILLENNIUM MANAGEMENT: Chapter 7 Trustee Can Hire Auctioneer
----------------------------------------------------------------
Bankruptcy Judge Letitia Z. Paul granted:
1. the Amended Emergency Application of Randy W. Williams,
the Chapter 7 Trustee of New Millennium Management,
L.L.C., to employ Realestateauctions.com as auctioneer;
and
2. the Chapter 7 Trustee's Motion for Authority to Sell
Real Property of the Estate Located at 810 Waugh Dr.,
Houston, TX 77019
The Chapter 7 Trustee seeks authority to employ an auctioneer, and
to sell the real property located at 810 Waugh, Houston, Texas,
after the auctioneer conducts an online auction of the real
property on July 17, 2014. The Chapter 7 Trustee seeks to
establish a reserve price for the auction sufficient to pay all
secured claims in full. The Chapter 7 Trustee also seeks
modification of the stay, to allow TexHou Investment Group, Ltd.,
a secured creditor, to post for foreclosure, and if no sale takes
place as a result of the auction, to foreclose in August 2014.
A copy of the Court's June 30, 2014 Memorandum Opinion is
available at http://is.gd/cnDt1kfrom Leagle.com.
New Millennium Management, L.L.C., filed a voluntary petition
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No.
13-35719-H3-11) on Sept. 13, 2013. Its primary business is the
operation of a commercial building located at 810 Waugh, Houston,
Texas.
Judge Letitia Z. Paul presides over the case. Margaret Maxwell
McClure, Esq., at the Law Office Of Margaret M. McClure, serves as
the Debtor's counsel. In its petition, the Debtor estimated under
$10 million in both assets and debts.
The petition was signed by David L. Sheller, managing member.
The Court entered an order directing appointment of a Chapter 11
Trustee on February 25, 2014. The case was converted to a case
under Chapter 7 of the Bankruptcy Code on June 2, 2014, and Randy
W. Williams was named the Chapter 7 Trustee.
NEW YORK CITY OPERA: Suitor Wants Board Removed From Ch. 11 Sale
----------------------------------------------------------------
Law360 reported that a New York City Opera Inc. creditor filed
court papers seeking to put a Chapter 11 trustee or another
restructuring officer in charge of finding a buyer for the iconic
institution, saying the current board can't be trusted to execute
an asset sale quickly enough to avert a wind-down.
According to the report, Gene Kaufman, a businessman and creditor
who purportedly offered in January to fund the opera for another
three more years, asked U.S. Bankruptcy Judge Sean H. Lane to
wrest control of ongoing negotiations surrounding a potential
asset sale away from the board of directors and hand the process
over to a "responsible" outsider. With City Opera's survival on
the line, he said, the board has failed for nine months to "pull
the trigger" on any of the investor proposals it has received and
should not be in charge of the Chapter 11 process any longer, the
report related.
About New York City Opera
New York City Opera, Inc., sought Chapter 11 bankruptcy protection
(Bankr. S.D.N.Y. Case No. 13-13240) on Oct. 3, 2013, estimating
between $1 million and $10 million in both assets and debt.
The petition was signed by George Steel, general manager and
artistic director. Kenneth A. Rosen, Esq., at Lowenstein Sandler
LLP, serves as the opera's counsel. Ewenstein Young & Roth LLP
serves as special counsel.
NEWLEAD HOLDINGS: Ironridge Requests Add'l 35.1MM Common Shares
---------------------------------------------------------------
NewLead Holdings Ltd. disclosed that Ironridge Global IV, Ltd.,
requested an additional 35.1 million common shares of the Company.
As of July 13, 2014, Ironridge has requested approximately 160.6
million shares (adjusted to reflect the 1-for-50 reverse split
effective as of May 15, 2014), 81.4 million of which have been
requested but not issued, and are therefore not included in the
shares outstanding.
As of July 11, 2014, the Company had approximately 299.6 million
shares outstanding.
A list of the transactions is available for free at:
http://is.gd/AruJJM
About NewLead Holdings Ltd.
Based in Athina, Greece, NewLead Holdings Ltd. --
http://www.newleadholdings.com/-- is an international, vertically
integrated shipping company that owns and manages product tankers
and dry bulk vessels. NewLead currently controls 22 vessels,
including six double-hull product tankers and 16 dry bulk vessels
of which two are newbuildings. NewLead's common shares are traded
under the symbol "NEWL" on the NASDAQ Global Select Market.
NewLead Holdings reported a net loss of $158.22 million on $7.34
million of operating revenues for the year ended Dec. 31, 2013, as
compared with a net loss of $403.92 million on $8.92 million of
operating revenues in 2012. The Company's balance sheet at
Dec. 31, 2013, showed $151.33 million in total assets, $292.68
million in total liabilities and a $141.34 million total
shareholders' deficit.
EisnerAmper LLP, in New York, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2013. The independent auditors noted that
the Company has incurred a net loss, negative operating cash
flows, a working capital deficiency, and shareholders' deficiency
and has defaulted under its credit facility agreements. Those
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
NUTRITION 21: Court Rules on Walgreen's Chargeback Claims
---------------------------------------------------------
Walgreen Co. asserts chargeback claims against two of its former
vendors, defendants NXXI, Inc., f/k/a Nutrition 21, Inc., a
Chapter 11 debtor; and Nature's Products, Inc. for outdated,
defective and otherwise unsalable products, as well as for
merchandise it claims an absolute right to return, and based on
specific deals, such as discounts, coupons and promotional
allowances.
In turn, NXXI and NPI seek to collect invoices owed them by
Walgreen, the amount of which, Walgreen contends, is exceeded by
its claimed chargebacks. In addition, NXXI seeks to enforce NPI's
assumption, under an asset purchase agreement between NXXI and
NPI, dated December 29, 2009, of NXXI's obligations, if any, to
Walgreen for chargebacks, and NPI asserts a claim against NXXI for
breach of the APA.
In a July 2, 2014 Amended Memorandum of Decision After Trial,
available at http://is.gd/o75amHfrom Leagle.com, Bankruptcy Judge
Robert D. Drain ruled that after netting the parties' claims
against each other:
(a) (1) NXXI has a claim against Walgreen for $401,684.98
minus the $209,717.88 of Walgreen accounts
receivable that NPI purchased from Walgreen, for a
total of $191,967.10, and
(2) a claim against NPI for $155,445.10, and
(b) Walgreen has a claim against NPI for $388,408.06
($1,297,172.02 minus $908,763.96 (NPI's claim against
Walgreen), plus, in each case,
(1) pre-judgment interest under Florida law from the
date of breach, that is, the date the respective
party failed to pay the receivable or chargeback,
and
(2) post-judgment interest at the federal rate in
effect on the date of the original Memorandum
of Decision, May 28, 2014.
The case is, Walgreen Co., Plaintiff, v. NXXI Inc., f/k/a
Nutrition 21, Inc., and Nature's Products, Inc., Defendants, ADV.
PRO. NO. 11-08367 (RDD) (Bankr. S.D.N.Y.).
Walgreen is represented by:
John K. Sherwood, Esq.
Frank T. M. Catalina, Esq.
LOWENSTEIN SANDLER, LLP
65 Livingston Avenue & 6 Becker Farm Road
Roseland, NJ 07068
Tel: 973-597-2538
Fax: 973-597-2539
E-mail: jsherwood@lowenstein.com
fcatalina@lowenstein.com
NXXI is represented by:
Martin Stein, Esq.
HELLER HOROWITZ & FEIT, P.C.
292 Madison Avenue, 20th Flr.
New York, NY 10017
Tel: (212) 685-7600 x327
Fax: (212) 213-2633
E-mail: mstein@hhandf.com
Nature's Products, Inc., is represented by:
Alan Rosenthal, Esq.
Natalie J. Carlos, Esq.
CARLTON FIELDS, P.A.
Miami Tower
100 S.E. Second Street, Suite 4200
Miami, FL 33131-2113
Tel: 305-539-7301
Toll Free: 800-486-0140
Fax: 305-530-0055
E-mail: arosenthal@cfjblaw.com
ncarlos@cfjblaw.com
About Nutrition 21
Purchase, N.Y.-based Nutrition 21, Inc. --
http://www.nutrition21.com/-- is a nutritional bioscience company
that primarily develops and markets raw materials, formulations,
compounds, blends and bulk and other materials to third-party non-
end users to be further fabricated, blended or packaged for
ultimate sales to end-users as nutritional supplements or
otherwise. The Company holds more than 30 patents for nutrition
products and their uses.
Nutrition 21 and its debtor-affiliates filed for Chapter 11
bankruptcy (Bankr. S.D.N.Y. Lead Case No. 11-23712) on
Aug. 26, 2011. Michael Friedman, Esq., and Keith N. Sambur, Esq.,
at Richards Kibbe & Orbe LLP, serve as the Debtors' counsel.
On Dec. 23, 2011, the Bankruptcy Court entered an order confirming
the Second Amended Joint Chapter 11 Plan of Nutrition 21, Inc., et
al. On the effective date of the Plan, all outstanding equity
securities of the Company will be canceled and the Company will be
dissolved. The Company expects the Plan to become effective on or
about Jan. 9, 2012, upon satisfaction or waiver of the conditions
precedent specified under the Plan.
The Second Amended Joint Chapter 11 Plan of NXXI Inc., et al.,
formerly known as Nutrition 21, Inc., became effective on Jan. 13,
2012.
PENINSULA GENERAL: Patient Care Ombudsman Discharged
----------------------------------------------------
The Hon. Elizabeth S. Stong of the U.S. Bankruptcy Court for the
Eastern District of New York entered an order discharging Daniel
T. McMurray from his duties as the patient care ombudsman
appointed in the Chapter 11 case of Peninsula General Nursing Home
Corporation.
In seeking the discharge, Mr. McMurray said it is in the best
interests of the Debtor and its estate, that, upon consent of Lori
Lapin Jones, Chapter 11 Trustee, and, given the circumstances of
the nursing home, the sale of its assets and the concomitant
cessation of the Debtor's provision of patient care, there is no
longer a need for a patient care ombudsman for the nursing home.
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. Mr. McCord's own firm, Certilman Balin,
& Hyman, LLP, served as the Examiner's counsel.
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. 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.
PHI GROUP: Amends Form 10-Q for Sept. 30, 2012 Quarter
------------------------------------------------------
PHI Group, Inc., filed with the U.S. Securities and Exchange
Commission an amended quarterly report for the period ended
Sept. 30, 2012.
Pursuant to the amendment, the Company reported a net loss of
$236,514 on $0 of consulting and fee advisory fee income for the
quarter ended Sept. 30, 2012, as compared with a net loss of
$128,578 on $175,000 of consulting and advisory fee income for the
same period in 2011. The Company originally reported a net loss
of $178,080 on $0 of consulting and advisory fee income for the
three months ended Sept. 30, 2012.
The amended balance sheet shows $477,278 in total assets, $10.43
million in total liabilities, all current, and a $9.96 million
total stockholders' deficit. The Company previously disclosed
$1.14 million in total assets, $10.38 million in total
liabilities, all current, and a $9.23 million total stockholders'
deficit.
A full-text copy of the Form 10-Q/A is available for free at:
http://is.gd/KbboZv
About PHI Group
Huntington Beach, Cal.-based PHI Group, Inc., through its wholly
owned and majority-owned subsidiaries, is engaged in a number of
business activities, the scope of which includes consulting and
merger and acquisition advisory services, real estate and
hospitality development, mining, natural resources, energy, and
investing in special situations. The Company invests in various
business opportunities within its chosen scope of business,
provides financial consultancy and M&A advisory services to U.S.
and foreign companies, and acquires selective target companies
under special situations to create additional long-term value for
its shareholders.
PHI Group reported a net loss of $5.15 million on $570,000 of
consulting and advisory fee income for the year ended
June 30, 2012, as compared with a net loss of $1.17 million on
$409,317 of consulting and advisory fee income for the year ended
June 30, 2011.
Dave Banerjee, CPA An Accountancy Corp., in Woodland Hills,
California, issued a "going concern" qualification on the
consolidated financial statements for the year ended June 30,
2012. The independent auditor noted that the Company has
accumulated deficit of $35,814,955 and a negative cash flow from
operations amounting to $1,367,705 for the year ended June 30,
2012. These factors raise substantial doubt about the Company's
ability to continue as a going concern.
PHILLIPS INVESTMENTS: Files Schedules of Assets and Liabilities
---------------------------------------------------------------
Phillips investments, LLC, filed with the Bankruptcy Court its
schedules of assets and liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $29,500,000
B. Personal Property $58,424
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $17,892,854
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-Priority
Claims $10,774,380
----------- -----------
Total $29,558,424 $28,667,234
A copy of the schedules is available for free at
http://bankrupt.com/misc/PHILLIPSINVESTMENTS_25_sal.pdf
About Phillips Investments
Phillips Investments, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. N.D. Ga. Case No. 14-61444) on June 11, 2014. Ly Phillips
signed the petition as managing member. The Debtor estimated
assets and liabilities of between $10 million to $50 million.
Scroggins & Williamson, P.C., serves as the Debtor's counsel.
Judge Mary Grace Diehl presides over the case.
PHILLIPS INVESTMENTS: Has Until Aug. 5 to Use Cash Collateral
-------------------------------------------------------------
Bankruptcy Judge Mary Grace Diehl authorized Phillips Investments,
LLC, to use cash collateral through the earlier of (i) Aug. 5,
2014; or (ii) the entry of a final order authorizing the use of
cash collateral.
East West Bank asserts a first-priority security title to the
property -- certain parcels of improved commercial real estate
from which it operates two retail shopping centers, commonly
known as Gwinnett Station and Gwinnett Prado -- a first-priority
assignment of all leases and rents from the property and first-
priority security interests in all of the Debtor's personal
property located on the property, including but not limited to,
fixtures, equipment, furniture, and inventory and all proceeds.
The Debtor would use the cash collateral to operate its business
and maximize its prospects for a successful reorganization.
As adequate protection for any diminution in value of the
collateral, the Debtor will grant the lender adequate protection
liens all postpetition assets of the same type and to the same
extent and validity prior to the Petition Date, and a
superpriority claim status.
A final hearing on the motion will be held on Aug. 4 at 2:00 p.m.
Objections, if any, are due July 28.
As reported in the Troubled Company Reporter on July 8, 2014,
Phillips Investments owns several parcels of improved commercial
real estate from which it operates two retail shopping centers.
East West made certain loans to Phillips Investments on which it
may assert liens and security interest in the properties.
Ashley R. Ray, Esq., at Scroggins & Williamson, P.C., in Atlanta,
Georgia, pointed out that the rents and monthly fees received from
tenants represent Phillips Investments' sole source of income and
it must maintain its properties and meet obligations to tenants.
Without the authority to use cash collateral, the properties may
fall into disrepair and the tenants may terminate their leases or
assert claims against the estate.
Ms. Ray assured the Court that Phillips Investments does not
intend to use cash collateral to pay any amounts due before it
filed from bankruptcy without further order of the Court.
About Phillips Investments, LLC
Phillips Investments, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. N.D. Ga. Case No. 14-61444) on June 11, 2014. Ly Phillips
signed the petition as managing member. The Debtor disclosed
$29,558,424 in assets and $28,667,234 in liabilities as of the
Chapter 11 filing. Scroggins & Williamson, P.C., serves as the
Debtor's counsel. Judge Mary Grace Diehl presides over the case.
PINAFORE HOLDINGS: S&P Withdraws 'B+' Corp. Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on industrial and automotive supplier Pinafore Holdings
B.V. to 'B+' from 'BB-', and removed all ratings on Pinafore from
CreditWatch, where S&P had placed them with negative implications
on April 10, 2014. The outlook is stable.
S&P subsequently withdrew its corporate credit rating on Pinafore.
At the same time, S&P withdrew all its issue-level ratings on the
existing debt at its subsidiaries, which comprised the first- and
second-lien credit facilities that were used to finance the
acquisition of Tomkins plc in 2010.
"T[he] rating actions follow the completion of Pinafore's
acquisition by private equity funds managed by Blackstone," said
Standard & Poor's credit analyst Nishit Madlani.
S&P lowered the rating on Pinafore and removed it from CreditWatch
to reflect its view that its credit quality is now aligned with
that of Gates Global LLC following the close of the acquisition
transaction. Immediately thereafter, S&P withdrew all ratings on
Pinafore and rated debt at its subsidiaries following the
repayment of all prior debt.
PINNACLE ENTERTAINMENT: Fitch Affirms 'B+' IDR; Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Pinnacle Entertainment, Inc.'s (PNK;
Pinnacle) Issuer Default Rating (IDR) at 'B+'. Fitch also
affirmed all of Pinnacle's issue ratings including the senior
secured credit facility at 'BB+/RR1', senior unsecured notes at
'BB-/RR3' and subordinated notes at 'B-/RR6'. The Rating Outlook
is Stable.
Key Rating Drivers
The affirmation of Pinnacle's IDR at 'B+' and the Stable Outlook
reflect Fitch's expectation that Pinnacle's leverage will decline
to 6x or below over the next two to three years even if moderate
revenue declines continue. Fitch's view is supported by
Pinnacle's publicly stated goal of reducing debt, with the company
targeting leverage of 4x or below. The deleveraging will be
facilitated by Pinnacle's strong free cash flow (FCF) profile,
which is supported by limited capital spending requirements and
substantial net operating losses (NOLs) that will offset most if
not all tax liability through 2017, the last year of Fitch's
forecast.
With a 'B+' IDR there is less tolerance for company actions that
could slow down the debt reduction given the difficult operating
environment across most regional markets in which Pinnacle
operates. Such actions might include Pinnacle executing
leveraging acquisitions and initiating dividends or share
repurchases. Pinnacle's operations will be challenged by the
opening of the Golden Nugget casino in Lake Charles, LA in late
2014. Fitch estimates that Pinnacle's Lake Charles casino
accounts for about 15% of the company's property EBITDA.
Given the difficult operating backdrop, which Fitch expects will
persist, Fitch sees Pinnacle's debt/EBITDA ratio remaining
elevated above 6x until 2016. This compares to Fitch's prior
expectation at the time of the Ameristar Casinos (Ameristar)
acquisition that leverage would decline to below 6x within a year
of the acquisition, which closed in August 2013. The 6x threshold
is the maximum that Fitch believes appropriate for a 'B+' IDR
given Pinnacle's business risk profile. Fitch calculates for the
LTM period ending March 31, 2014 pro forma debt/EBITDA for the
sale of the Lumiere casino at 7.0x.
FITCH's FORECAST
Fitch projects Pinnacle's debt/EBITDA at 6.4x for 2014 and 2015,
6.0x for 2016 and 5.7x for 2017. In Fitch's base case the debt
reduction more than offsets the decline in EBITDA except in 2015,
when the EBITDA decline is accentuated by the new competition in
Lake Charles. Fitch believes Pinnacle's EBITDA after corporate
expense will be $626 million, $586 million, $579 million and $567
million for 2014, 2015, 2016 and 2017, respectively.
Fitch's base case assumes that Pinnacle's revenues decline by 3%
in the second quarter of 2014 on a same-store basis and then by 1%
for the balance of the projection horizon (excluding Lake
Charles). Fitch forecasts Pinnacle's property level margins to
remain relatively stable in the low 30s as Pinnacle's cost
synergies should offset some of the flow-through from the revenue
declines.
Fitch's base case assumes a 20% revenue decline in Lake Charles in
2015 with a 50% flow-through. This equates to roughly 30%-35%
decline in EBITDA for the property and about a 5% decline for the
company. This is a larger decline relative to Fitch's earlier
forecast with the revision reflecting the softer regional gaming
trends, including in the Lake Charles market. Fitch assumes that
Belterra Park in Cincinnati will largely offset the declines at
the Belterra sister property in Indiana stemming from the new
competition in Ohio.
Fitch's forecast assumes that Pinnacle applies all of its FCF to
paying down term loan B2 and projects FCF at about $105 million in
2014 (includes roughly $135 million of capex for Belterra Park,
including half of the $50 million licensing fee paid in 2014) and
approximately $250 million-$260 million in discretionary FCF
through 2017.
The FCF forecast for the outer years takes into account the
following estimates:
-- Property EBITDA of $645 million-$665 million;
-- Corporate expense of $80 million;
-- Interest expense of $210 million-$230 million;
-- Cash tax expense at about zero ($553 million and $862
million in federal and state NOLs, respectively, as of
Dec. 31, 2013);
-- Maintenance capex at $100 million.
Fitch's assumption that all FCF will be used to pay down debt
reflects the Pinnacle's consistently articulated goal of
deleveraging, the lack of attractive growth opportunities, and the
company's covenants. Pinnacle's credit agreement has a 50% excess
cash flow sweep provision and limits restricted payments to $100
million in aggregate. The revolver (about $600 million
outstanding pro forma for the sale of Lumiere) has a leverage-
based pricing grid and leverage-based financial covenants that
step down to below 6x by mid-2016. The Ameristar 7.5% senior
notes assumed by Pinnacle have stringent restricted payment
covenants but the notes are callable beginning April 2015.
REGIONAL TRENDS TO REMAIN NEGATIVE
With no weather or calendar impediments, gaming revenues reported
by the gaming regulators for May remained negative on year-over-
year basis across regional markets on a same-store basis.
Revenues were mostly down in the low single-digit range with the
exception of the few more fragile markets such as Mississippi
where declines approached double-digits. June has been similarly
weak for the states that have reported thus far. The common theme
sounded by regional casino operators is that the weakness stems
largely from the lower-tier customers, often described as those
with a theoretical loss of $100 or less per visit.
Fitch attributes the weakness in regional gaming to near-term and
long-term headwinds. Near-term, the end of the federal
unemployment benefits at year-end 2013 and the individual health
insurance sign-ups related to the implementation of the Affordable
Care Act (ACA) are having an impact. Annualized unemployment
benefits are down $31 billion in the 1Q'14 and the Congressional
Budget Office expects six million to be enrolled in an ACA-
compliant plan in 2014 with about five million getting some form
of a subsidy. Longer-term headwinds include stagnant wages among
the 99%; reprioritization of discretionary income; lower interest
rates (which affects investment income) and proliferation of lower
cost, more convenient gaming (e.g. video gaming terminals at bars,
casino-themed social games, and lottery).
On the bright side, the EBITDA flow-through from the revenue
declines has been relatively modest for most operators in 1Q'14 at
around 40% as operators continue to cut costs. The low flow-
through partially reflects the regional markets' high tax rates
(Mississippi is a notable exception) and admission fees (common in
the Midwest). Fitch notes that the flow-through may increase
closer to 50% as the cost savings begin to anniversary.
POTENTIAL FOR A REIT SPIN-OFF
Since Penn National Gaming (Penn) spun off its assets into a REIT
(Gaming & Leisure Properties, Inc.; GLPI) in late 2013 there has
been market speculation whether any of the other regional
operators will consider a REIT spin-off. GLPI has been well-
received by the equity markets with the company trading at about
14x-15x EV/EBITDA relative to the 7x-8x regional multiples. PNK
has been routinely mentioned as the most likely candidate to do a
spin-off given its better-than-industry-standard balance sheet,
quality of assets, size and diversification. On April 16, 2014,
Pinnacle received a letter from Orange Capital, which owns 4.5% of
the company's stock, making a case for a REIT spin-off. The
company responded by saying that the management and the board
'regularly review its strategic priorities and opportunities, and
assess a variety of value creating options.'
Fitch views the probability of Pinnacle executing a REIT spin-off
as low in the near term and somewhere in the 50/50 range longer
term (past 2017). Should Pinnacle pursue a REIT spin-off, Fitch
may consider it a credit negative depending on how the transaction
is financed. In the case of Penn, Fitch viewed the transaction
negatively since the lease-adjusted leverage increased following
the transaction.
Fitch believes Pinnacle may consider the spin-off once leverage
improves, most of its bonds become callable, and its NOLs are
close to being depleted. These conditions will not likely be met
until 2017 at the earliest. Also, according to GLPI and Penn, a
REIT spin-off is very complex and takes a long-time to execute.
Nevertheless, should GLPI's multiples hold up, Fitch believes a
spin-off would be tempting for Pinnacle, especially given the
lackluster organic growth prospects.
TRANSACTION RATINGS
The 'RR1' Recovery Rating (RR) on Pinnacle's senior secured credit
facility results in a three-notch uplift from the IDR and takes
into account Fitch's expectation of full recovery in an event of
default. The 'RR3' on the senior unsecured notes (one-notch
uplift from the IDR) reflects Fitch's expectations of better-than-
average recovery for the senior notes in an event of default. The
senior notes benefit from a quick paydown of Pinnacle's term loan
and tight lien covenants in Pinnacle's senior notes indentures.
Pinnacle repaid $660 million of term loans since the credit
facility closed in August 2013 using proceeds from asset sales and
FCF. The paydowns were partially offset by draws on its revolver
to fund Belterra Park. Pinnacle is restricted to 3.5x capacity on
its credit facility per the senior notes' indentures. The notes
mature in 2021 and are not callable until August 2016 (April 2015
for the 7.5% notes).
The 'RR6' on the subordinate notes reflects Fitch's expectation of
minimal recovery in an event of a default and results in a two-
notch negative differentiation from the IDR.
RATING SENSITIVITIES (Fitch forecasts in parentheses)
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- Fitch having less confidence that PNK's debt/EBITDA ratio
will approach 6x by 2016 (FY16: 6.0x and FY17: 5.7x);
-- Same-store revenue declines significantly exceed Fitch's 1%
per year projection for an extended period of time;
-- Discretionary FCF declining below $250 million, or $200
million once the NOLs are fully utilized, for an extended
period of time (FY15: $256 million, FY16: $259 million);
-- The company's adopts a more aggressive financial policy and
starts to de-emphasize debt reduction;
-- PNK pursuing a REIT spin-off that would result in the rent
adjusted leverage to increase.
Positive: No positive rating action is expected over the next 24
months given the company's high leverage. However, positive rating
action may result from:
-- Debt/EBITDA declining below 5x;
-- Revenue growth stabilizing at or close to 0%;
-- Discretionary FCF exceeding $300 million, or $250 million
once the NOLs are fully utilized, for an extended period of
time (FY15: $256 million, FY16: $259 million).
PINNACLE FOODS: S&P Affirms 'B+' CCR & Removes From Watch Positive
------------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit rating on Parsippany, N.J.-based Pinnacle Foods Inc. S&P
revised its recovery rating on the company's senior secured debt
to '1' from '2' and raised its issue-level ratings to 'BB' from
'BB-', reflecting the company's anticipated debt reduction. The
ratings were removed from CreditWatch with positive implications,
where they were placed on May 12, 2014, following the announcement
that the company was being acquired by Hillshire. The outlook is
stable.
The rating actions follow Pinnacle's announcement that it has
exercised its right to terminate the merger agreement between the
company and The Hillshire Brands Company (Hillshire) announced on
May 12, 2014. Hillshire announced that it has entered into a
definitive agreement to be purchased by Tyson Foods Inc. The
positive CreditWatch placement reflected S&P's expectation that
Pinnacle would be acquired by higher-rated Hillshire.
"The rating affirmation reflects our view that Pinnacle's credit
quality will remain in line with our prior expectations as a
stand-alone entity," said Standard & Poor's credit analyst Bea
Chiem.
As part of the termination, Pinnacle received a roughly $163
million break-up fee from Hillshire. "We understand that Pinnacle
expects to use the net proceeds for debt reduction, which we
believe would be applied to the company's senior secured credit
facilities," continued Ms. Chiem.
S&P estimates as of March 30, 2014, Pinnacle had roughly $2.6
billion in lease- and pension-adjusted debt outstanding.
PSL-NORTH AMERICA: Creditor Balks At $100M Sale Plan
----------------------------------------------------
Law360 reported that one of bankrupt PSL-North America LLC's
prepetition creditors took issue with the pipe manufacturer's plan
for a $100 million stalking horse sale to Jindal Tubular USA LLC,
arguing the transaction will deeply impair its secured claim and
turn the case's lien priorities on their head. According to the
report, in a motion before the Delaware bankruptcy court, Standard
Chartered Bank, Dubai International Financial Centre Branch said
that it doesn't oppose the concept of a sale of the debtor, which
provides pipe to the oil and gas industry, or quibble with Jindal
Tubular's fitness as a potential buyer. But the bank, which is
owed under a $30 million prepetition term loan facility, claims
that it has the senior liens on PSL-NA's personal property, which
includes equipment, inventory and receivables, the report said.
About PSL-North America
Founded in 2006, PSL-North America LLC is a manufacturer and
coater of large diameter steel pipes. The company has a state-of-
the-art facility located in Bay St. Louis, Mississippi, with the
land leased for 99 years. The company is an American-based
partially owned subsidiary of India's largest producer and
manufacturer of steel piping, PSL Limited.
On June 16, 2014, PSL-North America LLC and PSL USA Inc., filed
voluntary petitions in Delaware (Lead Case No. 14-11477) seeking
relief under chapter 11 of the United States Bankruptcy Code. The
Debtors' cases have been assigned to Judge Peter J. Walsh.
The Debtors seek to have their cases jointly administered
for procedural purposes.
PSL-North America estimated $50 million to $100 million in assets
and $100 million to $500 million in debt in the bankruptcy
petition. As of the Petition Date, the company had total
outstanding debt obligations of $130 million, according to a court
filing.
Proposed counsel for the Debtor are John H. Knight, Esq., Paul N.
Heath, Esq., Tyler D. Semmelman, Esq., Amanda R. Steele, Esq. and
William A. Romanowicz, Esq. at Richards, Layton & Finger, P.A.
of Wilmington, Delaware. Epiq Bankruptcy Solutions serves as
claims agent.
RESTORGENEX CORP: Closes $200,00 Private Placement
--------------------------------------------------
RestorGenex Corporation closed the fifth and final round in the
aggregate sum of $200,000 of a private placement pursuant to those
certain Subscription Agreements, dated as of July 10, 2014, the
Company entered into with certain accredited investors. At the
closing, the Company issued (i) 50,000 shares of the Company's
common stock, and (ii) warrants to purchase a total 15,000 shares
of Common Stock.
The purchasers of Common Stock received warrants to purchase three
shares of Common Stock for every ten shares of Common Stock such
Investors purchased in the Private Placement. The purchase price
of each share of Common Stock was $4.00. The aggregate purchase
price of the securities sold in the Private Placement was
$200,000. In connection with the Private Placement, the Company
paid to Maxim Group LLC commissions of $20,000. Additionally, the
Company issued to the Placement Agent Warrants to purchase 5,000
shares of Common Stock.
The aggregate sum of the Company's five closings in this Private
Placement is $35,582,740.
Registration Rights Agreement
The Company also entered into Registration Rights Agreements with
the Investors, which sets forth the rights of the Investors to
have their shares of Common Stock purchased in the Private
Placement and the shares of Common Stock issuable upon the
exercise of the Warrants registered with the Securities and
Exchange Commission for public resale under the Securities Act.
Pursuant to the Registration Rights Agreements, the Company is
required to file a registration statement with the SEC within 30
days of the closing of the final closing of Private Placement
registering the total number of shares of Common Stock purchased
in the Private Placement, the Placement Agent Shares and the
shares of Common Stock issuable upon exercise of the Warrants and
the Placement Agent Warrants. The Company will be required to
have the Registration Statement declared effective within 120 days
after final closing of the Private Placement.
On July 14, the Company filed with the SEC a Form S-1 registration
statement to register 11,633,885 shares the Company's currently
outstanding shares of common stock that are owned by some of its
stockholders, and 2,684,743 shares issuable upon the exercise of
currently outstanding common stock purchase warrants held by some
of the warrant holders. The Company's common stock is listed for
quotation on the OTC QB, under the symbol "RESX". There is
limited trading in its common stock. On July 8, 2014, the last
reported price per share of the Company's common stock was $4.10
per share. A copy of the Form S-1 is available for free at:
http://is.gd/kHYREe
About RestorGenex
RestorGenex Corporation operates as a biopharmaceutical company.
It focuses on dermatology, ocular disease, and women's health
areas. The company was formerly known as Stratus Media Group,
Inc., and changed its name to RestorGenex Corporation in March
2014. RestorGenex Corporation is based in Los Angeles,
California.
Restorgenex reported a net loss of $2.45 million in 2013 following
a net loss of $6.85 million in 2012.
Goldman Kurland and Mohidin LLP, in Encino, California, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2013. The independent
auditors noted that RestorGenex Corporation has suffered recurring
losses and has negative cash flow from operations. These
conditions raise substantial doubt as to the ability of
RestorGenex Corporation to continue as a going concern.
REVEL AC: Restaurant Owners Demand Role in Bankruptcy Sale
----------------------------------------------------------
Law360 reported that owners of high-end restaurants and
entertainment services at Atlantic City's bankrupt Revel Casino
Hotel objected to proposed sale procedures, saying they are
entitled to be part of the auction process since they will have to
work alongside the buyer. According to the report, a group of
"amenity tenants" filed papers saying they have not been invited
to participate in the sale process despite being the providers of
the dining, nightlife, spa and retail attractions Revel
advertises. They say the resort cannot use the Bankruptcy Code to
simply cancel their leases, the report related.
About Revel AC
Revel AC, Inc. -- http://www.revelresorts.com/-- owns and
operates Revel, a Las Vegas-style, beachfront entertainment resort
and casino located on the Boardwalk in the south inlet of Atlantic
City, New Jersey.
Revel AC Inc. and five of its affiliates sought bankruptcy
protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19,
2014, to pursue a quick sale of the assets.
The Chapter 11 cases are assigned to Judge Gloria M. Burns. The
Debtors' Chapter 11 cases are jointly consolidated for procedural
purposes.
Revel AC estimated assets ranging from $500 million to $1 billion,
and the same amount of liabilities.
White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors'
Counsel, and Moelis & Company, LLC, is the investment banker. The
Debtors' solicitation and claims agent is Alixpartners, LLP.
The prepetition first lenders are represented by Cadwalader,
Wickersham & Taft LLP. The prepetition second lien lenders are
represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The
DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP.
This is Revel AC's second trip to bankruptcy. The company first
sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13-
16253) on March 25, 2013, with a prepackaged plan that reduced
debt by $1.25 billion. Less than two months later on May 15,
2013, the 2013 Plan was confirmed and became effective on May 21,
2013.
REVEL AC: Hires Winter Harbor to Provide Shaun Martin as CRO
------------------------------------------------------------
Revel AC, Inc. and its debtor-affiliates seek authorization from
the U.S. Bankruptcy Court for the District of New Jersey to employ
Winter Harbor LLC to provide Shaun Martin as the Debtors' chief
restructuring officer, nunc pro tunc to June 19, 2014 petition
date.
The Debtors require Winter Harbor to:
(a) prepare data and analyses necessary to meet the
requirements and requests of various parties related to
these Chapter 11 Cases;
(b) compile and format data and analyses necessary to meet the
financial reporting requirements mandated by the Bankruptcy
Code and the Office of the U.S. Trustee, including, but not
limited to, statements of financial affairs, schedules of
assets and liabilities and monthly operating reports;
(c) in conjunction with the Debtors' management, manage the
Debtors' cash, prepare ongoing forecasting of the cash
flows and claim pools and estimate creditor recoveries;
(d) prepare analyses and data required under the Debtors'
financing documents;
(e) manage analyses and reconciliation of claims against the
Debtors and bankruptcy avoidance actions;
(f) prepare for court hearings, for the argument of motions and
provide expert testimony as required;
(g) prepare analyses in support of, and preparation of a
Chapter 11 plan and disclosure statement;
(h) manage the Debtors' negotiations with their creditor
constituencies, including negotiations relating to the
Debtors' chapter 11 plan;
(i) advise the Board on restructuring matters; and
(j) provide such other services as requested or directed by the
Board.
Winter Harbor will be paid at these hourly rates:
Managing Director $495-$595
Director $395-$450
Manager $250-$325
Associate $175-$225
Clerical/Administrative $75-$125
Shaun Martin $495
Todd Michalik $395
Barak Tulin $395
Winter Harbor will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Winter Harbor continues to hold a retainer of $60,000.
Shaun Martin, managing member of Winter Harbor, assured the Court
that the 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.
The Court for the District of New Jersey will hold a hearing on
the application on July 21, 2014, at 10:00 a.m. Objections were
due July 14, 2014.
Winter Harbor can be reached at:
Shaun Martin
WINTER HARBOR LLC
265 Franklin Street, 10th Floor
Boston, MA 02110
Tel: (617) 275-5411
About Revel AC
Revel AC, Inc. -- http://www.revelresorts.com/-- owns and
operates Revel, a Las Vegas-style, beachfront entertainment resort
and casino located on the Boardwalk in the south inlet of Atlantic
City, New Jersey.
Revel AC Inc. and five of its affiliates sought bankruptcy
protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19,
2014, to pursue a quick sale of the assets.
The Chapter 11 cases are assigned to Judge Gloria M. Burns. The
Debtors' Chapter 11 cases are jointly consolidated for procedural
purposes.
Revel AC estimated assets ranging from $500 million to $1 billion,
and the same amount of liabilities.
White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors'
Counsel, and Moelis & Company, LLC, is the investment banker. The
Debtors' solicitation and claims agent is Alixpartners, LLP.
The prepetition first lenders are represented by Cadwalader,
Wickersham & Taft LLP. The prepetition second lien lenders are
represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The
DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP.
This is Revel AC's second trip to bankruptcy. The company first
sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13-
16253) on March 25, 2013, with a prepackaged plan that reduced
debt by $1.25 billion. Less than two months later on May 15,
2013, the 2013 Plan was confirmed and became effective on May 21,
2013.
REVEL AC: Taps Moelis & Company as Financial Advisor
----------------------------------------------------
Revel AC, Inc. and its debtor-affiliates seek authorization from
the U.S. Bankruptcy Court for the District of New Jersey to employ
Moelis & Company LLC as financial advisor and investment banker to
the Debtors, nunc pro tunc to June 19, 2014 petition date.
The Debtors require Moelis & Company to:
(a) assist the Debtors in conducting a business and financial
analysis of the Debtors;
(b) meet with the Debtors' lenders to provide updates, as and
when reasonably requested by the Debtors, on the factual
details of the Transaction process and address questions
posed by the lenders related thereto, subject to any
applicable confidentiality obligations;
(c) assist the Debtors in identifying and evaluating candidates
for a Sale Transaction;
(d) contact and meet with potential Acquirers that the Debtors
have agreed may be appropriate for a Sale Transaction and
provide such potential Acquirers with such information
about the Debtors as appropriate and acceptable to the
Debtors, subject to customary business confidentiality;
(e) assist the Debtors in preparing a marketing plan and
information materials describing the Debtors for
distribution to potential Acquirers, subject to a
customary confidentiality agreement, in each case as
approved in advance by the Debtors;
(f) assist the Debtors in developing a strategy to effectuate a
Transaction and advise the Debtors on their debt and
capital structure and facilitate amendments to the Debtors'
credit agreements and the Debtors' efforts to secure new
debtor-in-possession financing or other financing or
refinancing, in each case from any stakeholder in the
Debtors or any party contacted in the Debtors' strategic
process in connection with a Restructuring;
(g) assist the Debtors in structuring and negotiating a
Transaction and participate in such negotiations;
(h) meet with the Debtors' Board of Directors to discuss a
Proposed Transaction and its financial implications;
(i) provide testimony regarding the strategic alternatives
review process undertaken by the Debtors, the DIP loan and
other non-contested bankruptcy matters in connection with
the Bankruptcy Case, including without limitation testimony
provided in any depositions or before the Bankruptcy Court.
Such Testimony will not include the content of a Report
unless the Report Fee has been earned; and
(j) provide such other financial advisory services in respect
of a potential Transaction and related matters as the
Debtors and Moelis may mutually agree upon, both acting
reasonably.
Moelis & Company's Engagement Letter provides for the Fee
Structure:
- Monthly Fee. Starting from March 1, 2014, a fee of $150,000
per month, payable in advance of each month. The Debtors
will pay the first three Monthly Fees (for March, April and
May) immediately upon the execution of the Engagement Letter,
and all subsequent Monthly Fees prior to each monthly
anniversary of the date of the Engagement Letter. Whether or
not a Restructuring or a Sale Transaction occurs, Moelis
shall earn and be paid the Monthly Fee every month during the
term of the Engagement Letter. To the extent that Monthly
Fees beyond the seventh Monthly Fee are not reimbursed from a
third party, Moelis shall credit 100% of those Monthly Fees
earned beyond the seventh Monthly Fee against either the Sale
Transaction Fee or the Restructuring Transaction Fee,
whichever becomes first payable under the terms of the
Engagement Letter.
- Sale Transaction Fee. A sale transaction fee, payable
promptly at the closing of a Sale Transaction, in an amount
equal to 0.75% of Transaction Value; provided that with
respect to the first Transaction that is consummated by the
Debtors following the date of the Engagement Letter, the Sale
Transaction Fee shall be the greater of (i) 0.75% of
Transaction Value and (ii) $2,000,000, in each case, less
$256,000. The Debtors will pay a separate Sale Transaction
Fee for each Transaction. Under no circumstances shall the
Sale Transaction Fee be less than zero.
- Restructuring Transaction Fee. At the closing of a
Restructuring, a fee of $2,000,000, less $256,000. Under no
circumstances shall the Restructuring Transaction Fee be less
than zero. If both the Sale Transaction Fee and the
Restructuring Transaction Fee become payable, Moelis will be
entitled to only one fee which is the higher of such fees.
- Report Fee. A cash fee of $1,000,000 if the Debtors
request in writing that Moelis & Company prepare an expert
report on the valuation of (A) the Debtors, (B) the Debtors'
assets or (C) the bids for the Debtors' assets, in the case
of each of clauses (A) through (C), in connection with a
contested matter in the Bankruptcy Case, which Report Fee
shall be payable promptly upon Moelis & Company's
confirmation that it is ready to deliver the Report. For the
avoidance of doubt, the Report Fee shall not be payable to
Moelis & Company with respect to Testimony described in
Section 1(i) of the Engagement Letter. The Report Fee shall
be payable no more than one time under the Engagement Letter.
Moelis & Company will also be reimbursed for reasonable out-of-
pocket expenses incurred.
As of the Petition Date, the Debtors do not owe Moelis & Company
any fees for services performed or expenses incurred under the
Engagement Letter. According to Moelis & Company's books and
records, during the 90-day period before the Petition Date, Moelis
received $600,000 for professional services performed and
$93,337.47 for expenses incurred.
Barak M. Klein, managing director of the Restructuring and
Recapitalization Group of Moelis & Company, assured the Court that
the 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.
Moelis & Company can be reached at:
Barak M. Klein
MOELIS & COMPANY LLC
399 Park Avenue
New York, NY 10022
Tel: +1 (212) 883-3877
E-mail: barak.klein@moelis.com
About Revel AC
Revel AC, Inc. -- http://www.revelresorts.com/-- owns and
operates Revel, a Las Vegas-style, beachfront entertainment resort
and casino located on the Boardwalk in the south inlet of Atlantic
City, New Jersey.
Revel AC Inc. and five of its affiliates sought bankruptcy
protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19,
2014, to pursue a quick sale of the assets.
The Chapter 11 cases are assigned to Judge Gloria M. Burns. The
Debtors' Chapter 11 cases are jointly consolidated for procedural
purposes.
Revel AC estimated assets ranging from $500 million to $1 billion,
and the same amount of liabilities.
White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors'
Counsel, and Moelis & Company, LLC, is the investment banker. The
Debtors' solicitation and claims agent is Alixpartners, LLP.
The prepetition first lenders are represented by Cadwalader,
Wickersham & Taft LLP. The prepetition second lien lenders are
represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The
DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP.
This is Revel AC's second trip to bankruptcy. The company first
sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13-
16253) on March 25, 2013, with a prepackaged plan that reduced
debt by $1.25 billion. Less than two months later on May 15,
2013, the 2013 Plan was confirmed and became effective on May 21,
2013.
REVEL AC: Hires AlixPartners as Administrative Agent
----------------------------------------------------
Revel AC Inc. and its debtor-affiliates seek authorization from
the U.S. Bankruptcy Court for the District of New Jersey to employ
AlixPartners LLP as administrative agent, nunc pro tunc to June
19, 2014 petition date.
The Debtors require AlixPartners to:
(a) provide all voting ballots to necessary parties, quantify
the ballot results and provide a final report to the
Bankruptcy Court;
(b) be available for testimony regarding, among other things,
the results of balloting;
(c) assist with preparation of schedules and statement of
affairs;
(d) develop and host a case website including a secure document
room for legal and transactional diligence as necessary;
and
(e) assist with such other matters as may be requested that
fall within AlixPartners' expertise and that are mutually
agreeable.
AlixPartners shall invoice the Debtors monthly for services
rendered to the Debtors during the preceding month.
AlixPartners will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In the 90 days prior to the Petition Date, AlixPartners received a
total of $108,984.44 in advance payment retainers from the
Debtors.
Meade Monger, managing director of AlixPartners, assured the Court
that the 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.
AlixPartners can be reached at:
Meade Monger
ALIXPARTNERS LLP
2101 Cedar Springs Road, Suite 1100
Dallas, TX 75201
Tel: +1 (214) 647-7621
E-mail: mmonger@alixpartners.com
About Revel AC
Revel AC, Inc. -- http://www.revelresorts.com/-- owns and
operates Revel, a Las Vegas-style, beachfront entertainment resort
and casino located on the Boardwalk in the south inlet of Atlantic
City, New Jersey.
Revel AC Inc. and five of its affiliates sought bankruptcy
protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19,
2014, to pursue a quick sale of the assets.
The Chapter 11 cases are assigned to Judge Gloria M. Burns. The
Debtors' Chapter 11 cases are jointly consolidated for procedural
purposes.
Revel AC estimated assets ranging from $500 million to $1 billion,
and the same amount of liabilities.
White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors'
Counsel, and Moelis & Company, LLC, is the investment banker. The
Debtors' solicitation and claims agent is Alixpartners, LLP.
The prepetition first lenders are represented by Cadwalader,
Wickersham & Taft LLP. The prepetition second lien lenders are
represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The
DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP.
This is Revel AC's second trip to bankruptcy. The company first
sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13-
16253) on March 25, 2013, with a prepackaged plan that reduced
debt by $1.25 billion. Less than two months later on May 15,
2013, the 2013 Plan was confirmed and became effective on May 21,
2013.
REVEL AC: Wants to Hire White & Case as Attorneys
-------------------------------------------------
Revel AC, Inc. and its debtor-affiliates seek authorization from
the U.S. Bankruptcy Court for the District of New Jersey to employ
White & Case LLP as attorneys, nunc pro tunc to Jun. 19, 2014
petition date.
The Debtors require White & Case to:
(a) take all necessary actions to maximize the value of the
estates of the Debtors, including the prosecution of
actions on the Debtors' behalf, the defense of any actions
commenced against the Debtors, the negotiation of disputes
in which the Debtors are involved, and the preparation of
objections to claims filed against the Debtors' estates;
(b) provide legal advice with respect to the Debtors' powers
and duties as debtors in possession and the management of
their property;
(c) prepare on behalf of the Debtors all necessary motions,
applications, answers, orders, reports, and documents in
connection with the administration and prosecution of the
Chapter 11 Cases;
(d) assist the Debtors in connection with the sale and
disposition of the Debtors' assets, by sale or otherwise;
(e) assist the Debtors in the negotiation, preparation, and
confirmation of a chapter 11 plan and all related
transactions;
(f) appear in Court and protect the interests of the Debtors
before this Court; and
(g) perform all other necessary legal services in connection
with these Chapter 11 Cases.
White & Case will be paid at these hourly rates:
Partners $750-$1,100
Counsel $530-$850
Associates $405-$765
Paraprofessionals $215-$315
White & Case will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Prior to the Petition Date, the Debtors paid White & Case $250,000
to be held on account as retainer for services rendered and
reimbursement of expenses incurred with respect to work in
progress and work to be provided in connection with the
preparation and prosecution of the Chapter 11 Cases.
John K. Cunningham, Esq., partner of White & Case, assured the
Court that the 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.
White & Case can be reached at:
John K. Cunningham, Esq.
WHITE & CASE LLP
Southeast Financial Center
200 South Biscayne Blvd., Suite 4900
Miami, FL 33131
Tel: (305) 371-2700
Fax: (305) 358-5744
E-mail: jcunningham@whitecase.com
About Revel AC
Revel AC, Inc. -- http://www.revelresorts.com/-- owns and
operates Revel, a Las Vegas-style, beachfront entertainment resort
and casino located on the Boardwalk in the south inlet of Atlantic
City, New Jersey.
Revel AC Inc. and five of its affiliates sought bankruptcy
protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19,
2014, to pursue a quick sale of the assets.
The Chapter 11 cases are assigned to Judge Gloria M. Burns. The
Debtors' Chapter 11 cases are jointly consolidated for procedural
purposes.
Revel AC estimated assets ranging from $500 million to $1 billion,
and the same amount of liabilities.
White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors'
Counsel, and Moelis & Company, LLC, is the investment banker. The
Debtors' solicitation and claims agent is Alixpartners, LLP.
The prepetition first lenders are represented by Cadwalader,
Wickersham & Taft LLP. The prepetition second lien lenders are
represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The
DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP.
This is Revel AC's second trip to bankruptcy. The company
First sought bankruptcy protection (Bankr. D.N.J. Lead Case No.
13-16253) on March 25, 2013, with a prepackaged plan that reduced
debt by $1.25 billion. Less than two months later on May 15,
2013, the 2013 Plan was confirmed and became effective on May 21,
2013.
REVEL AC: Hires Fox Rothschild as Attorneys
-------------------------------------------
Revel AC, Inc. and its debtor-affiliates seek authorization from
the U.S. Bankruptcy Court for the District of New Jersey to employ
Fox Rothschild LLP as attorneys, nunc pro tunc to June 19, 2014
petition date.
The Debtors require Fox Rothschild to:
(a) provide legal advice to the Debtors with respect to the
powers and duties as a debtor-in-possession;
(b) prepare on behalf of the Debtors all necessary
applications, motions, answers, orders, reports, plans and
other legal papers;
(c) analyze the Debtors' financial condition to determine the
best course of action to follow in order to achieve the
best possible outcome for the estate and its creditors;
(d) represent Debtors as outside counsel, including as labor,
litigation, and regulatory counsel, in matters both related
to this case and which would otherwise occur in the normal
course;
(e) appear in Court and protect the interests of the Debtors,
the estate and its creditors; and
(f) perform all other legal services for the Debtors that may
be necessary and proper in these proceedings.
Fox Rothschild will be paid at these hourly rates:
Michael J. Viscount, Jr. $640
Nicholas Casiello, Jr. $660
Raymond M. Patella $550
Patrick Madamba $510
John Strock $390
Robin I. Solomon, Paralegal $325
Fox Rothschild will also be reimbursed for reasonable out-of-
pocket expenses incurred.
Fox Rothschild received an advance payment retainer from the
Debtors in the amount of $100,000 on Apr. 4, 2014. Fox Rothschild
has been billing weekly and has received replenishments of and
additions to the advance payment since that date in the total
amount of approximately $540,000. After application of the
retainer to Fox Rothschild's fees and costs incurred shortly
before the filing date, Fox Rothschild has $78,361.40 remaining of
its initial retainer.
Michael J. Viscount, Jr., Esq., partner of Fox Rothschild, assured
the Court that the 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.
Fox Rothschild can be reached at:
Michael J. Viscount, Jr., Esq.
FOX ROTHSCHILD LLP
Midtown Building, Suite 400
1301 Atlantic Avenue
Atlantic City, NJ 08401
Tel: (609) 572-2227
Fax: (215) 299-2000
E-mail: mviscount@foxrothschild.com
About Revel AC
Revel AC, Inc. -- http://www.revelresorts.com/-- owns and
operates Revel, a Las Vegas-style, beachfront entertainment resort
and casino located on the Boardwalk in the south inlet of Atlantic
City, New Jersey.
Revel AC Inc. and five of its affiliates sought bankruptcy
protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19,
2014, to pursue a quick sale of the assets.
The Chapter 11 cases are assigned to Judge Gloria M. Burns. The
Debtors' Chapter 11 cases are jointly consolidated for procedural
purposes.
Revel AC estimated assets ranging from $500 million to $1 billion,
and the same amount of liabilities.
White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors'
Counsel, and Moelis & Company, LLC, is the investment banker. The
Debtors' solicitation and claims agent is Alixpartners, LLP.
The prepetition first lenders are represented by Cadwalader,
Wickersham & Taft LLP. The prepetition second lien lenders are
represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The
DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP.
This is Revel AC's second trip to bankruptcy. The company first
sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13-
16253) on March 25, 2013, with a prepackaged plan that reduced
debt by $1.25 billion. Less than two months later on May 15,
2013, the 2013 Plan was confirmed and became effective on May 21,
2013.
REVEL AC: Creditors' Panel Taps Cole Schotz as Counsel
------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the Revel casino in Atlantic City, New Jersey, has an
official unsecured creditors' committee with five members,
including National Union Fire Insurance of Pittsburgh PA, and the
Committee has selected Cole Schotz Meisel Forman & Leonard PA from
Hackensack, New Jersey, to serve as its legal representative.
Also on the committee is ACR Energy Partners LLC, the owner of the
power plant built to supply energy for the facility, Mr. Rochelle
said.
About Revel AC
Revel AC, Inc. -- http://www.revelresorts.com/-- owns and
operates Revel, a Las Vegas-style, beachfront entertainment resort
and casino located on the Boardwalk in the south inlet of Atlantic
City, New Jersey.
Revel AC Inc. and five of its affiliates sought bankruptcy
protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19,
2014, to pursue a quick sale of the assets.
The Chapter 11 cases are assigned to Judge Gloria M. Burns. The
Debtors' Chapter 11 cases are jointly consolidated for procedural
purposes.
Revel AC estimated assets ranging from $500 million to $1 billion,
and the same amount of liabilities.
White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors'
Counsel, and Moelis & Company, LLC, is the investment banker. The
Debtors' solicitation and claims agent is Alixpartners, LLP.
The prepetition first lenders are represented by Cadwalader,
Wickersham & Taft LLP. The prepetition second lien lenders are
represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The
DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP.
This is Revel AC's second trip to bankruptcy. The company first
sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13-
16253) on March 25, 2013, with a prepackaged plan that reduced
debt by $1.25 billion. Less than two months later on May 15,
2013, the 2013 Plan was confirmed and became effective on May 21,
2013.
RG STEEL: Gets Court Approval to Settle Dispute With Severstal
--------------------------------------------------------------
RG Steel received court approval for a deal that would resolve its
dispute with OAO Severstal's U.S. subsidiaries concerning the
purchase of the Sparrows Point facility.
Four lawsuits were outstanding between Severstal and RG Steel,
which allegedly owes the company $100 million on a note dating
from the acquisition of the facility.
Under the settlement, Severstal will pay the steel maker $30
million in cash. In return, RG Steel will transfer to the company
its right, title and interest in its membership interest in
Mountain State Carbon LLC, which owns the third-largest coke plant
in the United States.
RG Steel acquired a 50% joint venture interest in Mountain State
as part of its acquisition of the Sparrows Point facility.
The settlement also requires both sides to release each other from
all claims. A copy of the agreement is available for free at
http://is.gd/60YHb2
About RG Steel
RG Steel LLC -- http://www.rg-steel.com/-- is the United States'
fourth-largest flat-rolled steel producer with annual steelmaking
capacity of 7.5 million tons. It was formed in March 2011
following the purchase of three steel facilities located in
Sparrows Point, Maryland; Wheeling, West Virginia and Warren,
Ohio, from entities related to Severstal US Holdings LLC. RG
Steel also owns finishing facilities in Yorkville and Martins
Ferry, Ohio. It also owned Wheeling Corrugating Company and has a
50% ownership in Mountain State Carbon and Ohio Coatings Company.
RG Steel along with affiliates, including WP Steel Venture LLC,
sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12-
11661) on May 31, 2012. Bankruptcy was precipitated by liquidity
shortfall and a dispute with Mountain State Carbon, LLC, and a
Severstal affiliate, that restricted the shipment of coke used in
the steel production process.
The Debtors estimated assets and debts in excess of $1 billion.
As of the bankruptcy filing, the Debtors owe (i) $440 million,
including $16.9 million in outstanding letters of credit, to
senior lenders led by Wells Fargo Capital Finance, LLC, as
administrative agent, (ii) $218.7 million to junior lenders, led
by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million
on account of a subordinated promissory note issued by majority
owner The Renco Group, Inc., and (iv) $100 million on a secured
promissory note issued by Severstal.
Judge Kevin J. Carey presides over the case.
The Debtors are represented in the case by Robert J. Dehney, Esq.,
and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP,
and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T.
Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the
Debtors. Conway MacKenzie, Inc., serves as the Debtors' financial
advisor and The Seaport Group serves as lead investment banker.
Donald MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman
Carson Consultants LLC is the claims and notice agent.
Wells Fargo Capital Finance LLC, as Administrative Agent, is
represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo,
Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura
Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang
Ziehi & Jones LLP.
Renco Group is represented by lawyers at Cadwalader, Wickersham &
Taft LLP.
Kramer Levin Naftalis & Frankel LLP represents the Official
Committee of Unsecured Creditors. Huron Consulting Services LLC
serves as the Committee's financial advisor.
The Debtor has sold off the principal plants. The sale of
the Wheeling Corrugating division to Nucor Corp. brought in
$7 million. That plant in Sparrows Point, Maryland, fetched the
highest price, $72.5 million. CJ Betters Enterprises Inc. paid
$16 million for the Ohio plant. RG Steel Sparrows Point LLC has
received the green light to sell some of its assets to Siemens
Industry, Inc., which include equipment and related spare parts,
for $400,000.
RG STEEL: Gets Court Approval to Settle Dispute With Monarch
------------------------------------------------------------
RG Steel Wheeling, LLC received court approval for a deal that
would resolve its dispute with Monarch Machine Tool Co. and allow
the steel maker to collect $1.4 million from the company.
Under the settlement, RG Steel agreed to the dismissal of a case
against Monarch in exchange for payment of approximately $1.4
million.
RG Steel's former subsidiary Ohio Coatings will receive $718,822
while Reed Smith LLP, the law firm that represented both companies
in the case, will receive $385,817 for attorney's fees and costs.
A copy of the settlement agreement is available without charge at
http://is.gd/bx2yc6
Ohio Coatings, together with Wheeling-Pittsburg Steel Corp.,
predecessor to RG Steel, filed the case before the Franklin County
Court of Common Pleas to seek damages from Monarch caused by an
allegedly defectively designed and installed piece of equipment in
its facility. Monarch subsequently filed a third-party complaint
against Desch Antriebstechnik GmbH Co. KG, making the latter a
defendant in the case.
In 2001, Monarch filed for bankruptcy protection in the U.S.
Bankruptcy Court for the Southern District of Ohio. Wheeling-
Pittsburg's and Ohio Coatings' claims against the company were
resolved in its bankruptcy case.
Monarch eventually assigned its claims against Desch in the
lawsuit to Wheeling-Pittsburg and Ohio Coatings. As a result, the
Ohio state court dismissed all claims of Wheeling-Pittsburg and
Ohio Coatings against Monarch. The court also allowed both
companies to substitute in place of Monarch for the purposes of
asserting the latter's claims against Desch in the lawsuit.
About RG Steel
RG Steel LLC -- http://www.rg-steel.com/-- is the United States'
fourth-largest flat-rolled steel producer with annual steelmaking
capacity of 7.5 million tons. It was formed in March 2011
following the purchase of three steel facilities located in
Sparrows Point, Maryland; Wheeling, West Virginia and Warren,
Ohio, from entities related to Severstal US Holdings LLC. RG
Steel also owns finishing facilities in Yorkville and Martins
Ferry, Ohio. It also owned Wheeling Corrugating Company and has a
50% ownership in Mountain State Carbon and Ohio Coatings Company.
RG Steel along with affiliates, including WP Steel Venture LLC,
sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12-
11661) on May 31, 2012. Bankruptcy was precipitated by liquidity
shortfall and a dispute with Mountain State Carbon, LLC, and a
Severstal affiliate, that restricted the shipment of coke used in
the steel production process.
The Debtors estimated assets and debts in excess of $1 billion.
As of the bankruptcy filing, the Debtors owe (i) $440 million,
including $16.9 million in outstanding letters of credit, to
senior lenders led by Wells Fargo Capital Finance, LLC, as
administrative agent, (ii) $218.7 million to junior lenders, led
by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million
on account of a subordinated promissory note issued by majority
owner The Renco Group, Inc., and (iv) $100 million on a secured
promissory note issued by Severstal.
Judge Kevin J. Carey presides over the case.
The Debtors are represented in the case by Robert J. Dehney, Esq.,
and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP,
and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T.
Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the
Debtors. Conway MacKenzie, Inc., serves as the Debtors' financial
advisor and The Seaport Group serves as lead investment banker.
Donald MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman
Carson Consultants LLC is the claims and notice agent.
Wells Fargo Capital Finance LLC, as Administrative Agent, is
represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo,
Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura
Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang
Ziehi & Jones LLP.
Renco Group is represented by lawyers at Cadwalader, Wickersham &
Taft LLP.
Kramer Levin Naftalis & Frankel LLP represents the Official
Committee of Unsecured Creditors. Huron Consulting Services LLC
serves as the Committee's financial advisor.
The Debtor has sold off the principal plants. The sale of
the Wheeling Corrugating division to Nucor Corp. brought in
$7 million. That plant in Sparrows Point, Maryland, fetched the
highest price, $72.5 million. CJ Betters Enterprises Inc. paid
$16 million for the Ohio plant. RG Steel Sparrows Point LLC has
received the green light to sell some of its assets to Siemens
Industry, Inc., which include equipment and related spare parts,
for $400,000.
ROLTA AMERICAS: Fitch Assigns 'BB-(EXP)' Rating on New USD Notes
----------------------------------------------------------------
Fitch Ratings has assigned Rolta Americas LLC's proposed US dollar
senior unsecured notes an expected rating of 'BB-(EXP)'. The
notes will be unconditionally and irrevocably guaranteed by
India's Rolta India Limited (Rolta; BB-/Stable) and are therefore
rated at the same level as Rolta's foreign-currency senior
unsecured rating of 'BB-'. The final rating of the proposed notes
is contingent upon the receipt of documents conforming to
information already received.
Rolta will use about 75% of the proceeds of the notes to refinance
its existing secured debt and the balance for general corporate
purposes. The notes will rank pari passu with the issuer's
existing and future senior unsecured indebtedness. Rolta Americas
LLC is a wholly owned subsidiary of Rolta, a diversified company
with interests in information technology (IT) and geospatial
services. The company has changed its financial year-end from
June 30 to March 31. The ratings factor in Rolta's financial
results for the nine months ended March 2014.
The terms and conditions of the proposed bond are similar to Rolta
LLC's 10.75% USD200m guaranteed senior notes due 2018, except that
in the proposed notes the interest reserve account is removed, the
fixed charge coverage ratio is lowered to 2.5x from 3.0x, and
Rolta's guarantee on the notes is reduced to 1.5x the bond
issuance amount from 2.0x. Fitch believes that the lower fixed
charge coverage ratio does not affect the proposed bond's rating
given that the agency's negative rating guidance on leverage is
effectively tighter than the revised terms. The removal of the
interest reserve account and the lowering of the guarantee amount,
while potentially negative for bondholders in the event of
default, are not viewed as material in light of the company's
current profitability levels, ability to generate positive FCF
going forward, and rating level of 'BB-'.
KEY RATING DRIVERS
Low Ratings Headroom: Rolta's funds flow from operations (FFO)-
adjusted leverage of 3.7x at end-March 2014 (FY13: 4.1x) is close
to the 4.0x threshold above which Fitch may consider a negative
rating action. Fitch expects its leverage to remain stable around
3.5x during FY15-16 as a decline in capex/revenue to 12%-13%
(9MFY14: 29%) would offset a likely deterioration in operating
EBITDAR margin to 33%-35% (FY14: 37.3%) resulting in free cash
flow (FCF) margin of 5%-6% (9MFY14: -9%).
Likely Lower Profitability: Rolta is gradually shifting its
business from a high-margin but capital-intensive model to a
lower-margin, lower-capex model. Fitch expects annual capex to
decrease to around INR3.5bn-4bn during FY15-16 in line with the
company's plan to generate new products, the development costs of
which would be expensed rather than capitalised. Management
expects annual capex to fall to INR2bn during the same period.
Rolta invested about INR45bn, or 56% of its revenue, during FY11-
14 mostly to acquire intellectual properties, intangible assets
and to develop demonstrations and prototypes.
Changing Revenue Mix: Operating EBITDAR margin is also likely to
fall due to a change in the product mix with a higher revenue
contribution from Rolta's IT services business, which contributed
72% of FY14 revenue (FY09: 55%) and typically generates relatively
lower operating EBITDAR margin of 28%-30%. The geospatial
segment, which generates margins of 50%-55%, contributed 28% of
FY14 revenue.
Reasonable Barriers to Entry: Rolta's 'BB-' ratings benefit from
its niche-market strategy, established market position in
engineering and geospatial services and innovative product
portfolio in IT services, which are reasonably differentiated from
traditional IT companies. Rolta's geospatial segment has high
entry barriers with limited competition in geospatial services
including 3D mapping, surveying and image processing to various
federal and local governments, utilities, telcos, and
infrastructure and defence agencies.
Subordination of Notes: Fitch views positively Rolta's financial
strategy to raise unsecured debt at Rolta LLC to refinance
existing secured debt at operating companies. The agency notes
that Rolta's existing USD200m senior note holders are subordinated
to secured debt, which constitutes 70% of total debt at end-March
2014. Fitch does not notch the senior unsecured notes one level
down from the IDR given reasonable recovery on unsecured debt,
growing cash generation and management's stated strategy to
replace secured debt with unsecured debt.
Positive FCF starting FY15: Fitch expects Rolta to start
generating positive FCF of INR1.5bn-2bn or 5%-6% of its revenue
during FY15-16 as operating cash generation should be stable and
capex is lower. During FY15, Fitch forecasts that Rolta will
generate about INR10bn of EBITDA which would be sufficient to
cover its interest and tax of INR3bn-4bn and a similar amount on
capex. Rolta is likely to stick to its dividend policy of
distributing 20% of its net income.
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating action include
-- FFO-adjusted leverage at above 4.0x. However, Fitch expects
the company to maintain leverage below 4.0x during FY15-18,
driven by a decrease in capex and stable FFO growth.
-- Further subordination of unsecured creditors from existing
levels would lead to a downgrade of the issue rating.
Rolta's IDRs are constrained by the small scale of its operations.
As such, Fitch does not foresee any positive rating action over
the medium term.
SCOTTSDALE VENETIAN: Can Use FNB's Cash Collateral Until Aug. 31
----------------------------------------------------------------
The Hon. Brenda K. Martin of the U.S. Bankruptcy Court for the
District of Arizona authorized Scottsdale Venetian Village LLC to
use cash collateral from June 1, 2014, to Aug. 31, 2014, pursuant
to a budget available for free at http://is.gd/VxDKyG
The Debtor told the Court that it owed lender First National Bank
of Olathe under a certain loan documents in the principal amounts
of $6,662,171 under a first loan, and $226,686 under a second
note. FNB asserted a valid and perfected security interest in
substantially all of its assets including, without limitation, its
interest in a certain property and land lease, according to the
Debtor.
The Debtor agreed to make monthly adequate protection payments to
lender of $5,500, which payment must be made no later than the
10th day of each month, and will be applied to postpetition
interest accruing indebtedness. Any cash collateral received in
excess of that required operations consistent with the budget, or
paid, will be sequestered until such time as lender consents to,
or the Court orders, its use.
About Scottsdale Venetian
Scottsdale Venetian Village, LLC, operates the Days Hotel located
at 5101 N. Scottsdale Road, in Scottsdale, Arizona. The Company
also operates Papi Chulo's Mexican Grill & Cantina, located
immediately adjacent to the hotel. The hotel consists of 211
guest rooms and, among other things, facilities for meetings and
banquets.
Scottsdale Venetian Village filed a Chapter 11 petition (Bankr. D.
Ariz. Case No. 13-02150) on Feb. 19, 2013, in Phoenix, estimating
at least $10 million in assets and less than $10 million in
liabilities.
The Debtor is represented by John J. Hebert, Esq., and Wesley D.
Ray at Polsinelli Shughart, P.C., in Phoenix. Charles B. Foley,
CPA, PLLC serves as the Debtor's accountant.
As reported in the March 12, 2014 edition of the TCR, Scottsdale
Venetian Village LLC has won approval of the disclosure statement
explaining its proposed Chapter 11 plan. The bankruptcy judge
approved the disclosure statement after the Debtor resolved the
objection made by First National Bank of Hutchinson.
Scottsdale Venetian Village amended the Plan documents on Feb. 27,
2014, to incorporate terms reached with the buyer for the Debtor's
interests in the Days Hotel in Scottsdale, Arizona.
SETTLERS' HOUSING: Judge Narrows Suit Against Schaumburg Bank
-------------------------------------------------------------
Settlers' Housing Service, Inc., an Illinois Non-Profit,
Plaintiff, v. Schaumburg Bank & Trust Company, N.A., Defendant,
Adv. Proc. No. 13-AP-1328 (Bankr. N.D. Ill.), arises out of and
relates to the Chapter 11 case of Settlers' Housing Service Inc.,
an Illinois nonprofit dedicated to fulfilling the housing needs of
recently arrived legal immigrants. Settlers' ran into financial
trouble as a result of an allegedly fraudulent transaction wherein
it acquired some distressed properties through the Bank of
Commerce. Schaumburg Bank and Trust, the successor in interest to
The Bank of Commerce, foreclosed.
Settlers' filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case
No. 13-BK-28022), on July 12, 2013, citing under $1 million in
both assets and debts. A copy of the petition is available at
http://bankrupt.com/misc/ilnb13-28022.pdf Ariane Holtschlag,
Esq., at the Law Office of William J. Factor, Ltd., serves as the
Debtor's counsel.
The Bank moved for relief from the automatic stay under Sec.
362(d) of the Bankruptcy Code, asserting (1) lack of adequate
protection of its interest in certain property of Settlers', and
(2) that Debtor has no equity in the property and it is not
necessary to an effective reorganization because debtor does not
have sufficient cashflow to propose a feasible plan.
After taking evidence as to the financial viability of Debtor's
plan, it was determined that Debtor will not have sufficient
cashflow to support a feasible plan unless it can prevail on its
objection and counterclaim to Bank's proof of claim. Settlers'
separately filed its objection and counterclaim to the Bank's
claim as this adversary proceeding.
The Second Amended Complaint alleges that at the closing of the
sale of multiple properties from another bank customer to
Settlers', the Bank of Commerce set a trap by surreptitiously
burying a document providing for a line of credit secured by a
mortgage on the Washington-Taylor Property, and cross
collateralizing of all outstanding mortgages, into a thick stack
of closing documents. An outright loan and documents for it at
the time would have aroused suspicions of Settlers' president KJ
Lodico because she hadn't asked for any additional loan for
Settlers'. The alleged trap was sprung when Settlers' later found
itself in need of money to pay property taxes, which the Bank of
Commerce allegedly knew would happen because the properties sold
to Settlers' could not generate enough income to pay necessary
expenses. Once the need became manifest, Settlers' drew upon the
line of credit, and the equity Settlers' had held in the
Washington-Taylor Property became the Bank of Commerce's
collateral securing the entire Settlers' loan portfolio. The Bank
of Commerce allegedly needed that collateral to help it fend off
being shut down by banking regulators.
The Second Amended Complaint is pleaded in 17 Counts:
1. Equitable Subordination
2. Breach of Fiduciary Duty
3. Aiding and Abetting Breach of Fiduciary Duty
4. Fraudulent Misrepresentation
5. Fraudulent Concealment
6. Breach of Illinois Consumer Credit Act
7. Fraud in the Inducement
8. Fraud, Illegality and Unenforceability Regarding
Washington-Taylor Mortgage
9. Constructive Fraud
10. Conspiracy to Defraud and Civil Conspiracy
11. Violation of Anti-Tying Provisions of the Bank Holding
Company Act
12. Unconscionability
13. Tortious Interference With Contract
14. Conversion and Accounting
15. Setoff
16. Unjust Enrichment
17. Improper Post-Petition Interest and Receiver's Fees
Relief requested in the complaint seeks disallowance or
equitable subordination of the Bank's claim, avoidance
or recision of the mortgage on the Washington-Taylor
Property, compensatory, statutory, and punitive damages,
attorney's fees, and any other relief that may be
warranted.
The Bank filed an answer, and simultaneously filed a Motion to
Dismiss Counts 1 through 16, seeking dismissal of all these Counts
with prejudice.
In a June 30, 2014 Memorandum Opinion available at
http://is.gd/gAXGiMfrom Leagle.com, Bankruptcy Judge Jack B.
Schmetterer said the Bank's motion will be granted in part and
denied in part:
Count Disposition
----- -----------
1 Equitable Subordination Dismissed, with leave to plead
fraud in the execution
2 Breach of Fiduciary Duty Dismissed, with no leave
to amend
3 Aiding & Abetting Breach of Dismissed, with no leave
to amend Fiduciary Duty
4 Fraudulent Dismissed, with leave to plead fraud in
the execution Misrepresentation
5 Fraudulent Concealment Dismissed, with leave to
plead fraud in the execution
6 Breach of the Illinois Dismissed, with leave to
plead fraud in the execution Consumer Credit Act
7 Fraud in the Inducement Dismissed, with no leave to
amend
8 Fraud, Illegality and Dismissed, with leave to
replead illegality Unenforceability Regarding
Washington-Taylor Mortgage
9 Constructive Fraud Dismissed, with leave to plead
fraud in the execution
10 Conspiracy to Defraud and Dismissed, with leave to
plead a civil conspiracy with Civil Conspiracy KPW
and Peterson to commit fraud in the execution
11 Violation of Anti-Tying Dismissed, with no leave
to amend Provisions of the Bank Holding Companies Act
12 Unconscionability Dismissed, with no leave to amend
13 Tortious Interference With Not Dismissed Contract
14 Conversion and Accounting Dismissed, with leave to
Amend
15 Setoff Not Dismissed
16 Unjust Enrichment Not Dismissed
17 Improper Post-Petition Not Dismissed Interest
and Receiver's Fees
SKYLINE MANOR: Section 341(a) Meeting Slated for July 17
--------------------------------------------------------
The U.S. Trustee for Region 13 will convene a meeting of creditors
of Skyline Manor Inc. on July 17, 2014, at 11:00 a.m., at Omaha's
341 Meeting Room.
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 Skyline Manor
Skyline Manor, Inc., operates a retirement community in Omaha.
The facility offers apartments, assisted-living units, skilled
nursing beds and hospice care.
Skyline Manor filed a Chapter 11 bankruptcy petition
(Bankr. D. Neb. Case No. 14-80934) on May 8, 2014. The petition
was signed by John W. Bartle as chief restructuring officer.
Judge Thomas L. Saladino presides over the case.
The Debtor estimated assets of at least $10 million and
liabilities between $10 million to $50 million.
SMITHS' INCORPORATED: Case Summary & Unsecured Creditor
-------------------------------------------------------
Debtor: Smiths' Incorporated
P. O. Box 15307
Panama City, FL 32406
Case No.: 14-50232
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: July 15, 2014
Court: United States Bankruptcy Court
Northern District of Florida (Panama City)
Debtor's Counsel: Charles M. Wynn
CHARLES M. WYNN LAW OFFICES, P.A.
P.O. Box 146
Marianna, FL 32447
Tel: 850-526-3520
Fax: 850-526-5210
Email: candy@wynnlaw-fl.com
court@wynnlaw-fl.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by William Loren Smith, president.
The Debtor listed Ameris Bank, at 225 South Main St., in Moultrie,
Georgia, as its largest unsecured creditor holding a claim of
$5.9 million.
A copy of the petition is available for free at:
http://bankrupt.com/misc/flnb14-50232.pdf
SOLAR POWER: Authorized Common Shares Hiked to 1 Billion
--------------------------------------------------------
The shareholders of Solar Power Inc. approved an amendment to the
Company's Amended and Restated Articles of Incorporation to
increase the number of authorized shares of common stock of the
Company from 250,000,000 to 1,000,000,000.
About Solar Power
Roseville, Cal.-based Solar Power, Inc., is a global solar
energy facility ("SEF") developer offering its own brand of high-
quality, low-cost distributed generation and utility-scale SEF
development services. Primarily, the Company works directly with
and for developers around the world who hold large portfolios of
SEF projects for whom it serves as an engineering, procurement and
construction contractor. The Company also performs as an
independent, turnkey SEF developer for one-off distributed
generation and utility-scale SEFs.
Solar Power reported a net loss of $32.24 million in 2013
following a net loss of $25.42 million in 2012. As of Dec. 31,
2013, the Company had $70.96 million in total assets, $73.83
million in total liabilities and a $2.86 million total
stockholders' deficit.
Crowe Horwath LLP, in San Francisco, California, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2013. The independent auditors noted
that the Company has incurred a current year net loss of $32.2
million, has an accumulated deficit of $56.1 million, has
experienced a significant reduction in working capital, has past
due related party accounts payable and a debt facility under which
a bank has declared amounts immediately due and payable.
Additionally, the Company's parent company LDK Solar Co., Ltd has
experienced significant financial difficulties including the
filing of a winding up petition on Feb. 24, 2014. These matters
raise substantial doubt about the Company's ability to continue as
a going concern.
SPENDSMART NETWORKS: Alex Minicucci Holds 25.6% Equity Stake
------------------------------------------------------------
In an amended Schedule 13D filed with the U.S. Securities and
Exchange Commission, Alex Minicucci and his affiliates disclosed
that as of July 10, 2014, he beneficially owned 4,143,000 shares
of common stock of SpendSmart Networks, Inc., formerly known as
The SpendSmart Payments Company, representing 25.6 percent based
on 16,180,787 shares of Company common stock.outstanding. A
full-text copy of the regulatory filing is available for free at:
http://is.gd/v5q5ps
About SpendSmart Networks
San Diego, Cal.-based The SpendSmart Payments Company is a
Colorado corporation. Through the Company's subsidiary
incorporated in the state of California, The SpendSmart Payments
Company, the Company issues and services prepaid cards marketed to
young people and their parents. The Company is a publicly traded
company trading on the OTC Bulletin Board under the symbol "SSPC."
Effective as of June 20, 2014, The SpendSmart Payments Company, a
Colorado corporation, and The SpendSmart Payments Company, a
Delaware corporation, entered into a Plan of Conversion. In
conjunction with the execution of the Plan of Conversion, the
Company filed a Certificate of Conversion in each of the States of
Delaware and Colorado. As a result of the Re-Domiciliation, the
Company filed its Certificate of Incorporation in Delaware and
adopted By-Laws.
Effective as of June 20, 2014, SpendSmart Networks, Inc. f/k/a The
SpendSmart Payments Company filed an amendment to its newly
adopted Delaware Certificate of Incorporation to change its name
to "SpendSmart Networks, Inc.".
The Spendsmart Payments incurred a net loss and comprehensive loss
of $12.58 million on $1.02 million of revenues for the year ended
Sept. 30, 2013, as compared with a net loss and comprehensive loss
of $21.09 million on $1 million of revenues during the prior year.
The Company's balance sheet at March 31, 2014, showed $14.68
million in total assets, $2.44 million in total liabilities and
$12.24 million in total stockholders' equity.
EisnerAmper LLP, in Iselin, New Jersey, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Sept. 30, 2013. The independent auditors noted that
the Company has incurred net losses since inception and has an
accumulated deficit at Sept. 30, 2013. These factors among others
raise substantial doubt about the ability of the Company to
continue as a going concern.
ST. ANDREWS HARBOR: Case Summary & 2 Unsecured Creditors
--------------------------------------------------------
Debtor: St. Andrews Harbor Village, LLC
P. O. Box 15307
Panama City, FL 32406
Case No.: 14-50233
Nature of Business: Single Asset Real Estate
Chapter 11 Petition Date: July 15, 2014
Court: United States Bankruptcy Court
Northern District of Florida (Panama City)
Debtor's Counsel: Charles M. Wynn, Esq.
CHARLES M. WYNN LAW OFFICES, P.A.
P.O. Box 146
Marianna, FL 32447
Tel: 850-526-3520
Fax: 850-526-5210
Email: candy@wynnlaw-fl.com
court@wynnlaw-fl.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: 1 million to $10 million
The petition was signed by William Loren Smith, managing member.
A list of the Debtor's two largest unsecured creditors is
available for free at http://bankrupt.com/misc/flnb14-50233.pdf
STAR DYNAMICS: Court Approves Stipulation with Israel Government
----------------------------------------------------------------
The Bankruptcy Court approves a stipulation among the Government
of Israel, Ministry of Defense and Star Dynamics Corporation to
extend the limited use of cash collateral.
Earlier in 2014, the parties obtained Court approval of a
stipulation which extends, at the Government of Israel's request,
the expiration date of a letter of credit of over $5 million to
August 13, 2014.
In view of various pending matters, Star Dynamics, with the
consent of Whitney Bank and Thomas Becnel, has informed the
Government of Israel that it has consented to a further extension
of the letter of credit to December 17, 2014.
Local Counsel for the Government of Israel Ministry of Defense:
Frederick M. Luper, Esq.
William B. Logan, Jr., Esq.
Kenneth M. Richards, Esq.
LUPER, NEIDENTHAL & LOGAN, LPA
50 W. Broad Street, Suite 1200
Columbus, OH 43215
Telephone: (614) 221-7663
Facsimile: (866) 345-4948
Email: fluper@lnlattorneys.com
wlogan@lnlattorneys.com
krichards@lnlattorneys.com
Counsel for Star Dynamics:
Thomas R. Allen, Esq.
Richard K. Stovall, Esq.
Erin L. Pfefferle, Esq.
ALLEN KUEHNLE STOVALL & NEUMAN LLP
17 South High Street, Suite 1220
Columbus, OH 43215
Telephone: (614) 221-8500
Facsimile: (614) 221-5988
E-mail: allen@aksnlaw.com
stovall@aksnlaw.com
pfefferle@aksnlaw.com
Counsel for Whitney Bank:
Joseph P. Hebert, Esq.
LISKOW & LEWIS
822 Harding Street
Lafayette, LA 70503-2361
Telephone: (337) 232-7424
Fascimile: (337) 267-2399
jphebert@liskow.com
About STAR Dynamics
STAR Dynamics Corp. develops, sales, and services instrumentation
radar systems for missile test ranges utilized by the United
States and foreign governments. Located principally in Hilliard,
Ohio, with satellite offices in Herndon, Virginia and Sandestin
Florida, it has 112 full-time employees.
STAR Dynamics filed a petition for Chapter 11 protection (Bankr.
S.D. Ohio Case No. 13-59657) on Dec. 10, 2013, in Columbus, Ohio,
in part to halt a lawsuit by BAE Systems Plc.
According to its first-day motions and as of Nov. 30, 2013, it has
assets of $28,470,788.13, liabilities of $50,892,360.12 and gross
sales of $8,140,140.93. In its schedules, the Debtor listed
$12,138,334 in total assets and $50,740,343 in total liabilities.
BAE is an American subsidiary of a global-level defense contractor
based in Great Britain, with more than 50,000 employees world-
wide. BAE has its headquarters in Arlington, Virginia, and like
the Debtor, is engaged in the radar range business for the testing
of missiles and other weaponry.
Bankruptcy Judge Charles M. Caldwell oversees the case. Thomas R.
Allen, Esq., Richard K. Stovall, Esq., and Erin L. Pfefferle,
Esq., at Allen Kuehnle Stovall & Neuman LLP serve as the Debtor's
bankruptcy counsel. Michael J. Sullivan, Esq., Russell A.
Williams, Esq., Julie E. Adkins, Esq., Louis T. Isaf, Esq., and
Nanda K. Alapati, Esq., at Womble Carlyle Sandridge & Rice LLP,
serve as special counsel with respect to litigation involving BAE
Systems and with respect to the completion of prepetition patent
work. Sagent Advisors LLC serves as financial advisor.
STAR DYNAMICS: Asks Court for 90-Day Exclusive Periods Extension
----------------------------------------------------------------
Star Dynamics Corporation asks the Bankruptcy Court to extend its
exclusive period to file a plan to October 6, 2014, and exclusive
period to solicit plan acceptances to December 8, 2014.
This is Star Dyamics' second request to extend their exclusive
periods.
Richard K. Stovall, Esq., at Allen Kuehnle Stovall & Neuman LLP,
in Columbus, Ohio, relates that Star Dynamics has continued to
market a sale of its assets to potential buyers and interested
parties have submitted indications of interest.
Necessary due diligence conducted by qualified purchasers is an
ongoing and intensive process, Mr. Stovall explains. Once the due
diligence process is complete, Star Dynamics anticipates that
final, binding proposals will be submitted.
In addition to conducting due diligence, Star Dynamics believes it
is necessary for certain of those matters at issue in its
adversary proceeding against BAE Systems Technology Solutions &
Services, Inc., be resolved, as the determination of such matters
may impact the sale process. The parties have had multiple
conferences with the Court and conducted significant discovery,
all of which has been undertaken with an eye towards trial.
Following the sale process and matters at issue in the adversary
proceeding, Star Dynamics believes that a liquidating plan of
reorganization may be necessary. However, it will not be in a
position to propose any plan of reorganization until the sale
process has concluded, a sale has been approved by the Court, and
the issues in the adversary proceeding are resolved. Thus, the
Star Dynamics believes it would be most prudent to extend the
exclusive periods by 90 days each.
About STAR Dynamics
STAR Dynamics Corp. develops, sales, and services instrumentation
radar systems for missile test ranges utilized by the United
States and foreign governments. Located principally in Hilliard,
Ohio, with satellite offices in Herndon, Virginia and Sandestin
Florida, it has 112 full-time employees.
STAR Dynamics filed a petition for Chapter 11 protection (Bankr.
S.D. Ohio Case No. 13-59657) on Dec. 10, 2013, in Columbus, Ohio,
in part to halt a lawsuit by BAE Systems Plc.
According to its first-day motions and as of Nov. 30, 2013, it has
assets of $28,470,788.13, liabilities of $50,892,360.12 and gross
sales of $8,140,140.93. In its schedules, the Debtor listed
$12,138,334 in total assets and $50,740,343 in total liabilities.
BAE is an American subsidiary of a global-level defense contractor
based in Great Britain, with more than 50,000 employees world-
wide. BAE has its headquarters in Arlington, Virginia, and like
the Debtor, is engaged in the radar range business for the testing
of missiles and other weaponry.
Bankruptcy Judge Charles M. Caldwell oversees the case. Thomas R.
Allen, Esq., Richard K. Stovall, Esq., and Erin L. Pfefferle,
Esq., at Allen Kuehnle Stovall & Neuman LLP serve as the Debtor's
bankruptcy counsel. Michael J. Sullivan, Esq., Russell A.
Williams, Esq., Julie E. Adkins, Esq., Louis T. Isaf, Esq., and
Nanda K. Alapati, Esq., at Womble Carlyle Sandridge & Rice LLP,
serve as special counsel with respect to litigation involving BAE
Systems and with respect to the completion of prepetition patent
work. Sagent Advisors LLC serves as financial advisor.
STAR DYNAMICS: Asks Court to Extend Lease Decision Period
---------------------------------------------------------
Star Dynamics Corporation asks the Bankruptcy Court to extend to
October 6, 2014, its period to assume or reject a lease of a
hanger storage space and airstrip at Darby Dan Airport, in
Galloway, Ohio with the Galloway Airport Authority, LLC,
The lease is a one-year lease, which automatically renews on an
annual basis upon agreement of the parties. Star Dynamics pays
$3,500 per month in rent for the lease.
Richard K. Stovall, Esq., at Allen Kuehnle Stovall & Neuman LLP,
in Columbus, Ohio, tells the Court that continued use of the lease
is critical to Star Dynamics' ability to continue to operate as a
going concern, with the ultimate goal of a sale of all its assets.
On the other hand, the lessor may have reversionary interests to
the improvements built on its premises, which would represent a
windfall if its lease was rejected.
Mr. Stovall points out that Star Dynamics is in need of additional
time to appraise its financial situation to make an informed
decision and continues to explore all of its options in light of
an intended sale of its assets pursuant to Section 363 of the
Bankruptcy Code.
About STAR Dynamics
STAR Dynamics Corp. develops, sales, and services instrumentation
radar systems for missile test ranges utilized by the United
States and foreign governments. Located principally in Hilliard,
Ohio, with satellite offices in Herndon, Virginia and Sandestin
Florida, it has 112 full-time employees.
STAR Dynamics filed a petition for Chapter 11 protection (Bankr.
S.D. Ohio Case No. 13-59657) on Dec. 10, 2013, in Columbus, Ohio,
in part to halt a lawsuit by BAE Systems Plc.
According to its first-day motions and as of Nov. 30, 2013, it has
assets of $28,470,788.13, liabilities of $50,892,360.12 and gross
sales of $8,140,140.93. In its schedules, the Debtor listed
$12,138,334 in total assets and $50,740,343 in total liabilities.
BAE is an American subsidiary of a global-level defense contractor
based in Great Britain, with more than 50,000 employees world-
wide. BAE has its headquarters in Arlington, Virginia, and like
the Debtor, is engaged in the radar range business for the testing
of missiles and other weaponry.
Bankruptcy Judge Charles M. Caldwell oversees the case. Thomas R.
Allen, Esq., Richard K. Stovall, Esq., and Erin L. Pfefferle,
Esq., at Allen Kuehnle Stovall & Neuman LLP serve as the Debtor's
bankruptcy counsel. Michael J. Sullivan, Esq., Russell A.
Williams, Esq., Julie E. Adkins, Esq., Louis T. Isaf, Esq., and
Nanda K. Alapati, Esq., at Womble Carlyle Sandridge & Rice LLP,
serve as special counsel with respect to litigation involving BAE
Systems and with respect to the completion of prepetition patent
work. Sagent Advisors LLC serves as financial advisor.
STHI HOLDING: S&P Assigns 'B' Rating on $490MM 1st Lien Loan
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' credit rating
with a '4' recovery rating to Deerfield, Ill.-based STHI Holding
Corp.'s proposed $75 million revolving credit facility and $490
million first-lien term loan. The '4' recovery rating reflects
S&P's expectation for average (30%-50%) recovery in the event of a
payment default.
S&P's 'B' corporate credit rating on the company and the 'B'
credit rating and '4' recovery rating on its existing second-lien
notes are unchanged. The new debt will be effectively pari passu
with the existing second-lien notes.
"STHI's business risk profile, unchanged by the Nordion
acquisition, is dominated by its narrow business scope," said
credit analyst Gail Hessol. "Its strong and well-established
global position in a small niche market with fairly favorable
characteristics only partly offsets this major shortcoming, and we
view overall business risk as "fair". STHI is the world's largest
provider of contract sterilization and ionization services, with a
global market share (estimated by STHI) of about 35% to 40%.
Customers are primarily in the medical device and food industries.
Demand for essential sterilization services is only mildly
sensitive to economic conditions."
The rating outlook is stable, reflecting S&P's expectation that
STHI will return to its pattern of generating discretionary cash
flow in 2015, after incurring one-time cash costs and temporary
working capital requirements connected to the Nordion acquisition
in 2014. Although S&P expects EBITDA of the acquired medical
isotope business to fluctuate, it expects STHI's adjusted debt-to-
EBITDA ratio to remain in the 6.0x to 7.5x range.
Downside scenario
S&P could lower the rating if it concludes that leverage would be
sustained above 8x or if liquidity becomes pressured, evidenced by
significantly decreased revolver availability or financial
covenant cushion. Such a scenario could be associated with
reported EBITDA of only $160 million in 2015. This could occur if
raw material supply problems or unfavorable shifts in demand for
medical isotopes result in a steeper earnings decline than S&P
expects or significant contracts to sell cobalt-60 are cancelled.
Alternatively, a decline in STHI's capacity utilization, possibly
from unforeseen operating problems that reduce revenues, could
result in substantial erosion of profit margins and free operating
cash flow.
Upside scenario
S&P is unlikely to raise its rating because it believes STHI's
financial policies will sustain high leverage and the company must
address its MO-99 supply problem. If STHI generates more cash
flow than S&P's base-case forecast, it expects it to be
distributed to owners, rather than applied to debt repayment.
STOCKTON, CA: Franklin, CalPERS Clash on City's Pension Issue
-------------------------------------------------------------
Dan Fitzpatrick, writing for The Wall Street Journal, reported
that two U.S. investment titans -- Franklin Templeton Investments
and California Public Employees' Retirement System -- are clashing
over whether public pensions should be protected in municipal
bankruptcy, a major test that has implications for workers,
investors and distressed cities across the country.
According to the Journal, in Stockton's Chapter 9 case, the
investment firms disagree on whether the city's retirement
contributions should be reduced to free up money for a loan
repayment. A ruling that Stockton's pensions can be curtailed
could embolden more cities to use bankruptcy as a way to seek
retirement concessions, the Journal said.
A ruling on the city's debt adjustment plan won't come by the end
of this month as U.S. Bankruptcy Judge Christopher M. Klein asked
contending parties to submit more papers on the question of
whether CalPERS has the equivalent of a $1.5 billion lien
justifying payment in full, Bill Rochelle, the bankruptcy
columnist for Bloomberg News, reported. Mr. Rochelle said that in
light of the continued discovery relating to the city's pension
payments, Judge Klein said he may rule on the plan's viability by
October.
The city has resolved almost all constituencies other than
Franklin Resources, which claims the restructuring unfairly
discriminates because the plan pays less on its bonds than other
similarly situated claims, like workers' pensions, which won't be
touched, Mr. Rochelle said. Judge Klein, according to Robin
Respaut, writing for Reuters, ruled that Stockton has collateral
worth $4 million with which it could pay Franklin, dismissing the
city's contention its collateral was worthless. The collateral
includes two golf courses and a city park, Law360 said.
Judge Klein, Reuters said, made no ruling on whether CalPERS
should be made to accept less than the entire amount it is owed
while bondholders take losses in the case.
About Stockton, Calif.
The City of Stockton, California, filed a Chapter 9 petition
(Bankr. E.D. Cal. Case No. 12-32118) in Sacramento on June 28,
2012, becoming the largest city to seek creditor protection in
U.S. history. The city was forced to file for bankruptcy after
talks with bondholders and labor unions failed. Stockton
estimated more than $1 billion in assets and in excess of
$500 million in liabilities.
The city, with a population of about 300,000, identified the
California Public Employees Retirement System as the largest
unsecured creditor with a claim of $147.5 million for unfunded
pension costs. In second place is Wells Fargo Bank NA as trustee
for $124.3 million in pension obligation bonds. The list of
largest creditors includes $119.2 million owing on four other
series of bonds.
The city is being represented by Marc A. Levinson, Esq., and John
W. Killeen, Esq., at Orrick, Herrington & Sutcliffe LLP. The
petition was signed by Robert Deis, city manager.
Mr. Levinson also represented the city of Vallejo, Cal. in its
2008 bankruptcy. Vallejo filed for protection under Chapter 9
(Bankr. E.D. Cal. Case No. 08-26813) on May 23, 2008, estimating
$500 million to $1 billion in assets and $100 million to $500
million in debts in its petition. In August 2011, Vallejo was
given green light to exit the municipal reorganization. The
Vallejo Chapter 9 plan restructures $50 million of publicly held
debt secured by leases on public buildings. Although the Plan
doesn't affect pensions, it adjusts the claims and benefits of
current and former city employees. Bankruptcy Judge Michael
McManus released Vallejo from bankruptcy on Nov. 1, 2011.
The bankruptcy judge on April 1, 2013, ruled that the city of
Stockton is eligible for municipal bankruptcy in Chapter 9.
T-L CONYERS: Hearing Today on Further Interim Access to Cash
------------------------------------------------------------
The Bankruptcy Court will convene a hearing today, July 17, 2014,
at 10:00 a.m., to consider T-L Conyers LLC, et al.'s request for
continued access to cash collateral in which lender Cole Taylor
Bank asserts an interest.
As of the Petition Date, the Debtor owed the lender the principal
amount of $14,392,500 and $92,280 in interest and fees. As
reported in the Troubled Company Reporter on Jan. 3, 2014, as
adequate protection from any diminution in value of the lender's
collateral, the Debtor proposes to grant the lender replacement
liens on postpetition assets, and make timely full premiums for
all insurance policies required under the terms of prepetition
loan documents. The Debtor will also properly maintain, manage
protect and preserve the property.
About T-L Cherokee
T-L Conyers LLC, T-L Cherokee South, LLC, and two affiliates
sought Chapter 11 protection in Hammond, Indiana, on Feb. 1, 2013.
The Debtors are represented by David K. Welch, Esq., at Crane,
Heyman, Simon, Welch & Clar, in Chicago.
The Debtors own various shopping centers in Georgia and Kansas.
T-L Cherokee South (Bankr. N.D. Ind. Case No. 13-20283) estimated
assets and debts of $10,000,001 to $50,000,000. T-L Cherokee owns
and operates a commercial shopping center in Overland Park, Kansas
known as "Cherokee South Shopping Center".
The Debtors are entities managed by Westchester, Illinois-based
Tri-Land Properties, Inc., which sought Chapter 11 protection
(Case No. 12-22623) on July 11, 2012.
TEE INVESTMENT: Court Approves Payment of Remaining Claims
----------------------------------------------------------
The Bankruptcy Court, at the request of Christina Lovato, Chapter
11 trustee for Tee Investment Company Limited Partnership, doing
business as Lakeridge Apartments, approves the payment of
remaining claims followed by a dismissal of the case.
Jeffrey L. Hartman, Esq., explains that while a distribution in a
Chapter 11 case without an approved disclosure statement and plan
is not the usual practice, the trustee believes that there would
be no benefit to anyone to convert the case to Chapter 7, conduct
a new meeting and open a new period for filing claims and
incurring another layer of administrative expense. Disposition of
assets and closing the case is a relatively straightforward
process, notes Mr. Hartman.
To close the case, the trustee must address unpaid administrative
expenses, priority and unsecured claims. Administrative claims had
been already considered by the Court on separately filed
applications. There is one priority claim in favor of Washoe
County for $1,673.50, which is to be paid from carve out approved
by the Court's cash collateral order.
The cash collateral order also approved the payment from cash
collateral of specific, unsecured claims:
Air Filter Sales $35.44
Appliance Parts 786.48
Coll. Serv. of Nev. 1,082.00
Comyns Smith 10,000.00
Discount Tire 354.86
Dunseath Key 54.99
Easy Rooter 85.00
First Comp 980.00
Floors R Us 733.35
Fuller Color Center 661.09
GE Appliance 298.40
Graybar 251.59
Hutch's Mission 29.92
Inland Supply 115.80
Kleaning Connection 520.00
Landlord Protection 438.00
Lowe's 289.64
Marketing Design 2,400.00
Pacific States 568.86
Pool Water Prod. 129.54
Prof. Commun. 452.93
Quick Smog 70.00
Rapid Refill 44.15
Reimer Pest 675.00
Sam's Club 852.63
Sierra Welding 43.53
Victor Illumin. 344.00
==========
$22,297.10
There is one additional unsecured claim to be addressed by the
trustee. In July 2011, Ikon Financial Services filed a claim for
$40,000 representing the amount owed for three copier leases. The
IKON claim is deemed allowed unless it is objected to or otherwise
resolved.
The Court further rules that 30 days after payment of approved
claims, the trustee is discharged of her duties and any individual
bond in this case is exonerated.
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. Jeffrey L. Hartman, Esq., at Hartman &
Hartman, represents Christina W. Lovato, Chapter 11 trustee.
In 2012, the Debtor filed a First Amended Plan of Reorganization,
which 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.
WBCMT has sought conversion of the Debtor's case to one under
Chapter 7 of the Bankruptcy Code.
In 2013, the Court approved the appointment of Christina W. Lovato
as Chapter 11 trustee for the Debtor.
TEM ENTERPRISES: Section 341(a) Meeting Continued to July 24
------------------------------------------------------------
The U.S. Trustee for Region 17 continued the meeting of creditors
of TEM Enterprises on July 24, 2014, at 12:00 p.m., in Foley
Federal Building Room 1500, 300, Las Vegas Blvd. South in Las
Vegas, Nevada.
The meeting was originally set on July 10, 2014.
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.
Tem Enterprises dba Xtra Airways filed a Chapter 11 bankruptcy
petition (Bankr. D. Nev. Case No. 14-13955) on June 4, 2014.
Judge August B. Landis oversees the case. The Debtor estimated
assets and debts of at least $10 million. Lisa Dunn signed the
petition as president. McDonald Carano Wilson LLP serves as the
Debtor's counsel.
TEXAS INDUSTRIES: S&P Raises Corp. Credit Rating From 'B-'
----------------------------------------------------------
Standard & Poor's Ratings Services said it raised its corporate
credit rating on Dallas-based Texas Industries to 'BBB' from 'B-'
following the announcement by Raleigh, N.C.-based Martin Marietta
that it has completed the acquisition of the company. At the same
time, S&P removed all ratings on Texas Industries from
CreditWatch, where it had placed them with positive implications
on Jan. 30, 2014. The outlook is stable. S&P subsequently
withdrew all of its corporate credit and issue-level ratings on
Texas Industries and its existing unsecured debt, which has been
repaid.
"We raised the ratings on Texas Industries and removed them from
CreditWatch to reflect our view that its credit quality is now
aligned with that of Martin Marietta, following the July 1, 2014,
closing of the acquisition by the aggregates company. Immediately
thereafter, we withdrew the ratings because the company's debt has
been repaid," said Standard & Poor's credit analyst Pablo Garces.
TWEETER HOME: Ch. 7 Conversion Request Denied
---------------------------------------------
BankruptcyData reported that the U.S. Bankruptcy Court denied the
motion of the U.S. Trustee assigned to the Tweeter Home
Entertainment Group case seeking an order converting the Chapter
11 reorganization to a Chapter 7 liquidation. According to BData,
the order states that if the Debtors do not seek approval of a
disclosure statement on or before August 25, 2014, the U.S.
Trustee may file a new motion seeking conversion of the Debtor's
cases.
About Tweeter Home
Based in Canton, Mass., Tweeter Home Entertainment Group Inc.
-- http://www.tweeter.com/-- sold mid-to high-end audio and
video consumer electronics products. Tweeter and seven of its
affiliates filed for chapter 11 Protection on June 11, 2007
(Bankr. D. Del. Case Nos. 07-10787 through 07-10796). Gregg M.
Galardi, Esq., Mark L. Desgrosseilliers, Esq., and Sarah E.
Pierce, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP,
represented the Debtors. Kurtzman Carson Consultants LLC acted as
the Debtors' claims and noticing agent.
Bruce Grohsgal, Esq., William P. Weintraub, Esq., and Rachel Lowy
Werkheiser, Esq., at Pachulski Stang Ziehl & Jones LLP; and Scott
L. Hazan, Esq., Lorenzo Marinuzzi, Esq., and Todd M. Goren, Esq.,
at Otterbourg, Steindler, Houston & Rosen, P.C., represented the
Official Committee of Unsecured Creditors.
As of Dec. 21, 2006, Tweeter had total assets of $258,573,353 and
total debts of $190,417,285.
Tweeter Home Entertainment Group filed with the U.S. Bankruptcy
Court a Chapter 11 Plan of Liquidation and related Disclosure
Statement in October of 2012.
USEC INC: UT-Battelle Deal Amended; Funding Raised to $21.3MM
-------------------------------------------------------------
USEC Inc. on July 11, 2014, entered into Amendment No. 004 to the
agreement dated May 1, 2014 with UT-Battelle, LLC, as operator of
Oak Ridge National Laboratory, for continued research, development
and demonstration of the American Centrifuge technology in
furtherance of the U.S. Department of Energy's national security
objectives. Amendment No. 004 amends the ACTDO Agreement to
provide for additional funds of approximately $5.4 million,
bringing total funding to approximately $21.3 million. The other
terms and conditions of the ACTDO Agreement were not changed by
the Amendment.
The ACTDO Agreement provides for continued cascade operations, the
continuation of core American Centrifuge research and technology
activities, and the furnishing of related reports to ORNL. The
agreement is a firm fixed-price contract with a total price of
approximately $33.7 million for the period from May 1, 2014 to
September 30, 2014. The agreement provides for payments of
approximately $6.7 million per month and is incrementally funded.
Funds currently allocated to the ACTDO Agreement are expected to
cover the work to be performed through August 5, 2014. The
agreement also provides ORNL with two options to extend the
agreement by six months each. Each option is priced at
approximately $41.7 million. ORNL may exercise its option by
providing notice 60 days prior to the end of the term of the
agreement. The total price of the contract including options is
approximately $117 million.
USEC INC: Aug. 11 Special Bar Date for Securities-Related Claims
----------------------------------------------------------------
In conjunction with approving the disclosure statement explaining
USEC Inc.'s Chapter 11 plan of reorganization, the Bankruptcy
Court in Delaware set a special deadline applicable to current nd
former holders of public securities issued by the Debtor,
including convertible senior notes (Old Notes) and common stock,
who may wish to assert securities-related claims against the
Debtor.
As ordered by the Bankruptcy Court, any claim:
(i) arising from rescission of a purchase or sale of the
Old Notes or the USEC common stock;
(ii) for damages arising from the purchase or sale of a
security; or
(iii) for reimbursement or contributon allowed under
Bankruptcy Code Section 502 on account of a claim --
a "510(b) Claim"
must be asserted against the Debtor in a proof of claim received
no later than 5:00 p.m. Eastern Time on Aug. 11, 2014, by Logan &
Co., Inc., the Debtor's claims agent.
For current holders of Old Notes, the claim for the principal and
interest due on the Old Notes will be treated under the Plan in
the manner provided for Noteholder Claims in Class 5.
Common Stock Interests/Claims in Class 7 include (a) any interests
in the Debtor that are based on or arise from USEC Common Stock
and (b) any Claims against the Debtor that are subordinated
pursuant to Bankruptcy Code Section 510(b) arising from the
rescission of a purchase or sale of USEC Common Stock, or any
Claim for reimbursement, contribution, or indemnification on
account of any Claim. Under the Plan, if Class 5 and Class 6 vote
to accept the Plan, the holders of any Allowed Common Stock
Interests/Claims in Class 7 shall be entitled to receive a pro
rata share of 5% of the New Common Stock issued under the Plan,
subject to dilution. If, however, Class 5 or Class 6 votes to
reject the Plan, the holders of those Claims and Interests in
Class 7 will not receive or retain any property on account of
those Claims and Interests.
About USEC Inc.
USEC Inc. filed a Chapter 11 bankruptcy petition (Bank. D. Del.
Case No. 14-10475) on March 5, 2014. John R. Castellano signed
the petition as chief restructuring officer. The Hon. Christopher
S. Sontchi presides over the case.
D. J. Baker, Esq., Rosalie Walker Gray, Esq., Adam S. Ravin, Esq.,
and Annemarie V. Reilly, Esq., at Latham & Watkins LLP, serve as
the Debtor's general counsel. Amanda R. Steele, Esq., Mark D.
Collins, Esq., and Michael J. Merchant, Esq., at Richards, Layton
& Finger, P.A., serve as the Debtor's Delaware counsel. Vinson &
Elkins is the Debtor's special counsel. Lazard Freres & Co. LLC
acts as the Debtor's investment banker. AP Services, LLC,
provides management services to the Debtor. Logan & Company Inc.
serves as the Debtor's claims and noticing agent. Deloitte Tax
LLP are the Debtor's tax professionals. The Debtor's independent
auditor is PricewaterhouseCoopers LLP. KPMG LLP provides fresh
start accounting services to the Debtors.
* * *
As reported by the Troubled Company Reporter on July 15, 2014, a
hearing to consider confirmation of USEC Inc.'s Plan will be held
on Sept. 5, 2014 at 1:00 p.m. (Eastern Time) before the Honorable
Christopher S. Sontchi, Judge of the U.S. Bankruptcy Court for the
District of Delaware. Objections to the confirmation must be
filed no later than Aug. 22.
Judge Sontchi approved the disclosure statement explaining USEC's
Plan on July 7, which allowed the Debtor to solicit acceptances of
the Plan. A full-text copy of the Disclosure Statement dated
July 11 is available at http://bankrupt.com/misc/USECds0711.pdf
USS PARENT: S&P Assigns 'B' Corp. Credit Rating; Outlook Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B'
corporate credit rating to USS Parent Holding Corp., the holding
company of portable sanitation services company United Site
Services Inc. The outlook is stable.
At the same time, S&P assigned its 'B' senior secured debt rating
(the same as the corporate credit rating), with a recovery rating
of '3', to USS Parent Holding's five-year $50 million revolving
facility, its seven-year $175 million term loan, and its seven-
year $40 million delayed draw term loan. The delayed draw portion
is likely to be used in the event of future acquisitions.
The company will use the proceeds from the issuance to fund its
leveraged buyout by Boston- and San Francisco-based equity sponsor
Calera Capital and to pay for associated transaction fees. The
transaction price represents an approximately 9.1x multiple based
on management's estimate of its adjusted EBITDA for the twelve
months ended May 31, 2014.
The stable rating outlook on USS Parent Holding Corp reflects
S&P's expectation of the company's sustainable operating
profitability and fair amount of free cash flow generation on the
back of expected positive industry growth.
"The company's leading market position in its niches, moderate
geographic diversity and modest free cash flow generation ability
should help to offset to some extent the volatility in its
earnings owing to large exposure to the cyclical construction end
market and narrow product offerings," said Standard & Poor's
credit analyst James Siahaan. "We also expect the new sponsors to
implement financial policies that would result in the credit
measures remaining consistent with the current ratings, indicated
by debt to EBITDA of roughly 5x."
S&P could lower ratings if debt-funded acquisitions or a dividend
recapitalization weakens credit measures over the next year. S&P
could also lower ratings if management actions or unexpected
earnings weakness causes the debt-to-EBITDA ratio to exceed 6x
without prospects for improvement over the next 12 months. This
situation could occur if revenue growth is weak and adjusted
EBITDA margins dip to below 15%. In addition, S&P could lower
ratings if liquidity weakens to levels it considers "less than
adequate," indicated by sources of funds being lower than 1.2x
future uses.
Although unlikely during the near term, S&P could reassess and
raise the ratings if the company can reduce its debt levels
significantly, to the point that the debt-to-EBITDA ratio is below
5x, and if S&P views management as being willing and committed to
abiding by financial policies that would maintain measures at that
level.
WALTER ENERGY: Issued $320 Million of Senior Secured Notes
----------------------------------------------------------
Walter Energy Inc. closed its previously announced private
offering of $320 million aggregate principal amount of 9.500%
Senior Secured Notes due 2019.
The Notes are a follow-on issue to the $450 million aggregate
principal amount of Walter Energy's 9.500% senior secured notes
due 2019 which were issued on Sept. 27, 2013, and Walter Energy's
$200 million aggregate principal amount of 9.500% senior secured
notes due 2019 which were issued on March 27, 2014. The Notes
will be guaranteed by each of Walter Energy's current and future
wholly-owned domestic restricted subsidiaries that from time to
time guarantees any of Walter Energy's indebtedness or any
indebtedness of any of Walter Energy's restricted subsidiaries.
The Notes and related guarantees will be secured on a first
priority basis by substantially all of the property and assets of
Walter Energy and the guarantors.
Walter Energy used the net proceeds of the offering of the Notes
to repay $298.1 million of indebtedness outstanding under its
Revolving Credit Facility and to pay related fees and expenses.
Additional information is available for free at:
http://is.gd/It5O8I
About Walter Energy
Walter Energy is a leading, publicly traded "pure-play"
metallurgical coal producer for the global steel industry with
strategic access to high-growth steel markets in Asia, South
America and Europe. The Company also produces thermal coal,
anthracite, metallurgical coke and coal bed methane gas. Walter
Energy employs approximately 2,900 employees with operations in
the United States, Canada and United Kingdom.
The Company's balance sheet at March 31, 2014, showed $5.64
billion in total assets, $4.97 billion in total liabilities and
$669.6 million in total stockholders' equity.
* * *
As reported by the TCR on July 1, 2014, Standard & Poor's Ratings
Services lowered its corporate credit rating on Birmingham, Ala.-
based Walter Energy Inc. to 'CCC+' from 'B-'. S&P believes the
company's capital structure is likely unsustainable in the long-
term absent an improvement in met coal prices.
The TCR reported on July 10, 2014, that Moody's downgraded the
Corporate Family Rating of Walter Energy, Inc., to Caa2 from Caa1.
WHEATLAND MARKETPLACE: Wants Until Sept. 30 to File Ch. 11 Plan
---------------------------------------------------------------
Wheatland Marketplace LLC asks the U.S. Bankruptcy Court for the
Northern District of Illinois to further extend its exclusive
period to file a Chapter 11 plan and disclosure statement until
Sept. 30, 2014, and solicit acceptances of that plan until
Nov. 30, 2014.
The Debtor assures the Court that the extension of time will not
prejudice the legitimate interest of any parties-in-interest in
this Chapter 11 case. Rather, the extension will further its
efforts to preserve, maximize and create value for the Debtor's
creditors and increase the likelihood of a plan, the Debtor notes.
About Wheatland Marketplace, LLC
Wheatland Marketplace, LLC, owner of a commercial retail center in
Naperville, Illinois, filed a Chapter 11 bankruptcy petition
(Bankr. N.D. Ill. Case No. 13-46492) in Chicago on Dec. 3, 2013.
The Debtor has tapped Thomas W. Toolis, Esq., at Jahnke, Sullivan
& Toolis, LLC, in Frankfurt, Illinois, as counsel. Coleen J.
Lehman Trust and Lucy Koroluk each holds a 50% membership interest
in the Debtor. The Debtor reported $10,999,006 in total assets,
and $7,052,778 in total liabilities.
No committee of unsecured creditors has been appointed to serve in
the case.
YMCA OF MILWAUKEE: US Trustee Forms Five-Member Creditor's Panel
----------------------------------------------------------------
Patrick S. Layng, the U.S. Trustee for Region 11, appointed five
creditors to serve on the Official Committee of Unsecured
Creditors for The Young Men's Christian Association of Milwaukee
Inc.
The members of the Committee are:
a) Chris Dolney
Acting Chairperson
The Marek Group Inc.
W228N821 Westmound Drive
Waukesha, WI 53186
Tel: 261-549-8942
Fax: 262-549-6246
Email: chris.dolney@marekgroup.com
b) Lawrence Horning
Pieper Electric Inc.
5070 N. 35th St.
Milwaukee, WI 53209
Tel: 414-831-2328
Email: Lawrence.horning@peiperpower.com
c) Ellen Homb
2 Story Creative
641 W. National Avenue
Milwaukee, WI 53204
Tel: 414-220-9663
Fax: 414-220-9657
Email: ellen@2-story.com
d) Jennifer Coppersmith
Jennifer Coppersmith Design LLC
1159 S. Windsor St.
Salt Lake City, UT 84105
Tel: 801-783-7779
Email: jcoppersmith@gmail.com
e) Robert Nelson
L&A Crystal Services LLC
10903 N. Industrial Drive
Mequon, WI 53092
Tel: (262) 512-9790
(262) 271-5823 (Cell)
Fax: (262) 512-0393
Email: bobn@lacrystal.com
About YMCA of Milwaukee
The Young Men's Christian Association of Metropolitan Milwaukee,
Inc., and affiliate, YMCA Youth Leadership Academy, Inc., filed
voluntary Chapter 11 bankruptcy petitions (Bankr. E.D. Wis. Case
Nos. 14-27174 and 14-27175) in Milwaukee, on June 4, 2014.
YMCA Milwaukee, which has more than 100,000 members using its
centers and camps, plans to sell a majority of its owned real
estate to help pay down $29 million in debt.
YMCA Milwaukee estimated $10 million to $50 million in both assets
and liabilities. YMCA Academy estimated $100,000 to $500,000 in
both assets and liabilities. The formal schedules of assets and
liabilities are due June 18, 2014.
The Debtors are seeking joint administration of their Chapter 11
cases for procedural purposes. The cases are assigned to Judge
Susan V. Kelley.
The Debtors have tapped Olivier H. Reiher, Esq., and Mark L. Metz,
Esq., at Leverson & Metz, S.C., in Milwaukee, as counsel.
YMCA OF MILWAUKEE: Panel Hires Goldstein & McClintock as Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of The Young Men's
Christian Association of Metropolitan Milwaukee, Inc. seeks
authorization from the U.S. Bankruptcy Court for the Eastern
District of Wisconsin to retain Goldstein & McClintock LLLP as
counsel to the Committee, nunc pro tunc to Jun. 25, 2014.
The Committee contemplates that Goldstein & McClintock will
provide the full range of services required to represent the
Committee in the course of this case including:
(a) advise the Committee on all legal issues as they arise;
(b) represent and advise the Committee regarding the terms of
any sales of assets or plans of reorganization or
liquidation, and assisting the Committee in negotiations
with the Debtor and other parties;
(c) investigate the Debtor's assets and pre-bankruptcy conduct;
(d) prepare, on behalf of the Committee, all necessary
pleadings, reports, and other papers;
(e) represent and advise the Committee in all proceedings in
this case;
(f) assist and advise the Committee in its administration; and
(g) provide such other services as are customarily provided by
counsel to a creditors' committee in cases of this kind.
Goldstein & McClintock will be paid at these hourly rates:
Matthew E. McClintock, partner $435
Chris S. Mehring $395
Kavin Tedamrongwanish $195
Legal Assistants $135-$255
New Associates $195
Senior Partners $725
Goldstein & McClintock will also be reimbursed for reasonable out-
of-pocket expenses incurred.
Matthew E. McClintock, partner of Goldstein & McClintock, assured
the Court that the 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.
Christopher S. Mehring, Esq.
GOLDSTEIN & MCCLINTOCK LLLP
316 North Milwaukee Street, Suite 201
Milwaukee, WI 53202
Tel: (414) 982-4020
Fax: (414) 755-7013
E-mail: chrism@restructuringshop.com
About YMCA of Milwaukee
The Young Men's Christian Association of Metropolitan Milwaukee,
Inc., and affiliate, YMCA Youth Leadership Academy, Inc., filed
voluntary Chapter 11 bankruptcy petitions (Bankr. E.D. Wis. Case
Nos. 14-27174 and 14-27175) in Milwaukee, on June 4, 2014.
YMCA Milwaukee, which has more than 100,000 members using its
centers and camps, plans to sell a majority of its owned real
estate to help pay down $29 million in debt.
YMCA Milwaukee estimated $10 million to $50 million in both assets
and liabilities. YMCA Academy estimated $100,000 to $500,000 in
both assets and liabilities. The formal schedules of assets and
liabilities are due June 18, 2014.
The Debtors are seeking joint administration of their Chapter 11
cases for procedural purposes. The cases are assigned to Judge
Susan V. Kelley.
The Debtors have tapped Olivier H. Reiher, Esq., and Mark L. Metz,
Esq., at Leverson & Metz, S.C., in Milwaukee, as counsel.
* Undistributed Money Goes to Creditors in Aborted Chapter 13
-------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that when a Chapter 13 case converts to Chapter 7,
undistributed funds in the hands of the trustee go to creditors in
the Chapter 13 case, not to the bankrupt and not to the Chapter 7
trustee, according to a July 7 opinion by the U.S. Court of
Appeals in New Orleans.
Writing for a three-judge panel, U.S. Circuit Judge James E.
Graves Jr. said courts are about equally split on whether
undistributed funds go back to the bankrupt or to creditors,
according to the report. Judge Graves disagreed with the only
other circuit court authority on the issue, a 2012 decision in In
re Michael by the U.S. Court of Appeals in Philadelphia, when he
ruled that property acquired after the Chapter 13 filing isn't
part of the Chapter 7 estate.
The case is Viegelahn v. Harris (In re Harris), 13-50374, U.S.
Court of Appeals for the Fifth Circuit (New Orleans).
* U.S. Scrutiny for Banks Shifts to Commerzbank and Germany
-----------------------------------------------------------
Jessica Silver-Greenberg and Ben Protess, writing for The New York
Times' DealBook, reported that a trail of illicit money led the
American government on a hunt through the European financial
system, generating criminal cases against banks in Britain,
Switzerland and most recently, France. Now the crackdown is bound
for another European financial center -- Germany -- as state and
federal authorities have begun settlement talks with Commerzbank,
Germany's second-largest lender, over the bank's dealings with
Iran and other countries blacklisted by the United States, the
DealBook said, citing people briefed on the matter.
The bank, which is suspected of transferring money through its
American operations on behalf of companies in Iran and Sudan,
could strike a settlement deal with the state and federal
authorities as soon as this summer, the DealBook related, further
citing the people briefed on the matter, who were not authorized
to speak publicly.
* Argentina Says High Court Ruling Isn't Win for NML Capital
------------------------------------------------------------
Law360 reported that the Republic of Argentina told the Ninth
Circuit that NML Capital Ltd. is overstating a U.S. Supreme Court
ruling allowing discovery for assets held by a foreign sovereign
debtor, arguing against a lower court ruling that the country has
to pay $1.4 billion to the hedge fund. According to the Law360
report, Argentina had appealed the lower court decision arguing
that the discovery of assets sought by NML was improper because it
did not take into account assets protected by the Foreign
Sovereign Immunities Act, or FSIA. NML moved for summary
affirmance in the Ninth Circuit after the Supreme Court denied
Argentina's petition for certiorari in the case in June, Law360
related.
Ken Parks, writing for The Wall Street Journal, reported that
Argentine officials meet again with a court appointed mediator in
New York as the country tries to negotiate a solution to a high
stakes dispute over unpaid debts, according to a senior government
official. Economy Minister Axel Kicillof met for several hours
with Daniel Pollack, the lawyer that a U.S. judge named in June to
oversee negotiations between Argentina and a small group of hedge
funds that is suing to collect on defaulted Argentine bonds, the
Journal related. According to the Journal, during the meeting,
Mr. Kicillof asked that U.S. District Court Thomas Griesa suspend
his ruling, which bars the country from paying investors who own
restructured bonds unless it also pays the hedge funds. Complying
with the judge's order is "impossible", the government said in a
statement after the meeting, the Journal further related.
Hugh Bronstein, writing for Reuters, reported that Argentina has
accused the U.S. judge overseeing its bond dispute of being biased
in favor of hedge funds that have sued the South American country
for full repayment of defaulted bonds.
The case is Republic of Argentina v. NML Capital Ltd. et al., case
number 12-17738, in the U.S. Court of of Appeals for the Ninth
Circuit.
* China Should Let More Ailing Firms Fail, Banking Governor Says
----------------------------------------------------------------
Reuters reported that China should let more ailing firms go
bankrupt to help improve economic mechanisms rather than allow
them to get government-led bailouts, a deputy central bank
governor said.
According to Reuters, the risk of corporate failures is rising as
economic growth slows and the government tries to put a lid on
high debt levels in the economy to help ward off financial risks.
He urged companies in the coal, steel, machinery and shipbuilding
sectors to find ways out of business difficulties, including using
a bankruptcy law introduced in 2007, the report related. The
number of bankruptcies handled by Chinese courts fell to 1,920
last year from 10,000 a few years ago, Liu added, Reuters related.
* Leading Litigators Join Chicago Office of DLA Piper
-----------------------------------------------------
DLA Piper announced that Kevin Finger and Jeffrey Torosian, the
former co-chairs of Greenberg Traurig's Chicago Litigation
practice, will join the firm's Litigation practice as partners in
the Chicago office.
Finger focuses his practice on civil and bankruptcy litigation,
corporate compliance, and white collar criminal matters. He also
represents hedge funds, large corporations and officers and
directors. Most recently, he was lead counsel in a multi-billion
dollar adversary proceeding associated with a large-scale
corporate bankruptcy.
Torosian handles commercial disputes involving business
transactions, with a concentration on acquisition-related disputes
and corporate governance issues. He has litigated and tried cases
and arbitrations in over two dozen states across the country.
"Kevin and Jeff bring a history of success with complex, high-
profile litigation to our practice," said Robert Mathias, joint
global leader and US chair of DLA Piper's Litigation practice.
"Globalization has created increased legal liability for our
corporate clients and they need experienced lawyers like Kevin and
Jeff who can navigate this increasingly turbulent environment and
provide ways to manage risk and implement effective solutions."
Finger and Torosian's arrival comes on the heels of DLA Piper's
recently announced addition of litigator Karl Dial in Dallas. They
are also the latest partners to join the firm's growing Chicago
office, which added technology and sourcing partner Gregory Manter
in February.
"Kevin and Jeff are highly respected throughout the local legal
community and among their clients for their legal acumen and
strong leadership," said David Mendelsohn, managing partner of the
firm's Chicago office. "We are excited that they will work
alongside our high-caliber litigation team to assist clients in
resolving the disputes in which they are embroiled. Kevin's and
Jeff's experience and their superb track record of providing
exceptional client service will complement the already strong team
of lawyers they will be joining in our Chicago office."
Finger has also represented corporations and employees in
government investigations, and created and implemented corporate
compliance programs. He was an assistant state's attorney in Cook
County, Illinois, in the financial crimes and governmental fraud
unit and is currently a member of the American Bar, Illinois State
Bar, Chicago Bar and Federal Bar associations, as well as the
Chicago Chapter of the American Inns of Court. Finger began his
legal career as a law clerk to the Honorable William J. Bauer of
the US Court of Appeals for the Seventh Circuit.
He earned his J.D., magna cum laude, from Loyola University
Chicago School of Law, where he was managing editor of the Loyola
Law Journal. He received his B.S. in electrical engineering from
the University of Notre Dame.
Mr. Finger may be reached at:
Kevin D. Finger, Esq.
DLA PIPER LLP (US)
203 North LaSalle Street
Suite 1900
Chicago, IL 60601-1293
Tel: (312) 368-4050
Fax: (312) 251-5730
Email: kevin.finger@dlapiper.com
Torosian also concentrates his practice on private equity
litigation, commercial fraud claims, bankruptcy litigation, trade
secret litigation, shareholder disputes and M&A matters and is
regularly involved in arbitration and mediation proceedings before
several agencies. He also chairs the private equity litigation
subcommittee of the American Bar Association and is a hearing
board chair of the Illinois Attorney Registration and Disciplinary
Commission.
He earned his J.D. from Pepperdine University School of Law, where
he was literary editor of the Pepperdine Law Review. He received
his B.A. from the University of Chicago.
Mr. Torosian may be reached at:
Jeffrey S. Torosian, Esq.
DLA PIPER LLP (US)
203 North LaSalle Street
Suite 1900
Chicago, IL 60601-1293
Tel: (312) 368-4045
Fax: (312) 251-5745
E-mail: jeffrey.torosian@dlapiper.com
* Recent Small-Dollar & Individual Chapter 11 Filings
-----------------------------------------------------
In re Frank Andy Johnson
Bankr. C.D. Cal. Case No. 14-11459
Chapter 11 Petition filed July 9, 2014
In re Jerry G. Valenzuela
Bankr. C.D. Cal. Case No. 14-23123
Chapter 11 Petition filed July 9, 2014
In re Mark Waecker
Bankr. C.D. Cal. Case No. 14-23162
Chapter 11 Petition filed July 9, 2014
In re Eye, P.A.
Bankr. M.D. Fla. Case No. 14-03328
Chapter 11 Petition filed July 9, 2014
See http://bankrupt.com/misc/flmb14-03328.pdf
represented by: William B. McDaniel, Esq.
BANKRUPTCY LAW FIRM OF LANSING J. ROY, P.A.
E-mail: court@lansingroy.com
In re C & N Auto Care, Inc.
dba C & N Towing and Recovery
Bankr. N.D. Ga. Case No. 14-63285
Chapter 11 Petition filed July 9, 2014
represented by: Greg T. Bailey, Esq.
GREG T. BAILEY & ASSOC.
In re 133 Chesapeake St., LLC
Bankr. D. Md. Case No. 14-20894
Chapter 11 Petition filed July 9, 2014
See http://bankrupt.com/misc/mdb14-20894.pdf
represented by: Richard Marc Goldberg, Esq.
SHAPIRO SHER GUINOT & SANDLER
E-mail: rmg@shapirosher.com
In re Precision Dentistry, LLC
Bankr. D. Md. Case No. 14-20904
Chapter 11 Petition filed July 9, 2014
See http://bankrupt.com/misc/mdb14-20904.pdf
represented by: Rudolph Ettore DeMeo, Esq.
THE LAW OFFICE OF RUDOLPH E. DEMEO, P.C.
E-mail: redemeo@gmail.com
In re Duane Lyle Archer and Karen Williams-Archer
Bankr. D. Md. Case No. 14-20905
Chapter 11 Petition filed July 9, 2014
In re Daniel Hernandez and Sandra Garcia De Hernandez
Bankr. D. Nev. Case No. 14-14698
Chapter 11 Petition filed July 9, 2014
In re William Keuper and Debra Keuper
Bankr. D. Nev. Case No. 14-51182
Chapter 11 Petition filed July 9, 2014
In re B&G Land Management, LLC
Bankr. D.N.J. Case No. 14-24051
Chapter 11 Petition filed July 9, 2014
See http://bankrupt.com/misc/njb14-24051.pdf
represented by: Scott M. Itzkowitz, Esq.
E-mail: scottitzkowitz@aol.com
In re Muriel Boone
Bankr. S.D.N.Y. Case No. 14-22993
Chapter 11 Petition filed July 9, 2014
In re Cable's Enterprises, LLC
Bankr. M.D.N.C. Case No. 14-10782
Chapter 11 Petition filed July 9, 2014
See http://bankrupt.com/misc/ncmb14-10782.pdf
represented by: Samantha K. Brumbaugh, Esq.
IVEY, MCCLELLAN, GATTON & TALCOTT, LLP
E-mail: skb@imgt-law.com
In re James Allchin and Felicia Allchin
Bankr. W.D. Pa. Case No. 14-22796
Chapter 11 Petition filed July 9, 2014
In re James Wilford Davison Amy and Victoria Perez Collado
Bankr. D.P.R. Case No. 14-05644
Chapter 11 Petition filed July 9, 2014
In re Scott L. Mclaren and Sondia L. Mclaren
Bankr. D. Ariz. Case No. 14-10611
Chapter 11 Petition filed July 10, 2014
In re Valerie A. Joy
Bankr. C.D. Cal. Case No. 14-14297
Chapter 11 Petition filed July 10, 2014
In re Frank V. Guerrieri and Jody A. Guerrieri
Bankr. S.D. Fla. Case No. 14-25713
Chapter 11 Petition filed July 10, 2014
In re Judy L. Taylor
Bankr. S.D. Fla. Case No. 14-40388
Chapter 11 Petition filed July 10, 2014
In re Stanley David Bryant
Bankr. N.D. Ga. Case No. 14-63310
Chapter 11 Petition filed July 10, 2014
In re Dermatology and Skin Cancer Prevention C, a Corporation
Bankr. N.D. Ga. Case No. 14-63311
Chapter 11 Petition filed July 10, 2014
See http://bankrupt.com/misc/ganb14-63311.pdf
represented by: Stanley W. Schoolcraft, III, Esq.
E-mail: swschoolcraft@bellsouth.net
In re Formal Wear and Bridal Center, Inc.
dba Performance Attire
Bankr. D. Idaho Case No. 14-01159
Chapter 11 Petition filed July 10, 2014
See http://bankrupt.com/misc/idb14-01159.pdf
represented by: Sarah B. Bratton, Esq.
MARTELLE LAW OFFICES
E-mail: sarah@martellelaw.com
In re Pasta Blitz of Bel Air, Inc.
Bankr. D. Md. Case No. 14-20994
Chapter 11 Petition filed July 10, 2014
See http://bankrupt.com/misc/mdb14-20994.pdf
represented by: Aryeh E. Stein, Esq.
MERIDIAN LAW, LLC
E-mail: astein@meridianlawfirm.com
In re Moses Apsan
Bankr. D.N.J. Case No. 14-24181
Chapter 11 Petition filed July 10, 2014
In re John Luther Rufty, Jr.
Bankr. W.D.N.C. Case No. 14-50486
Chapter 11 Petition filed July 10, 2014
In re Conor Cummins
Bankr. E.D. Pa. Case No. 14-15558
Chapter 11 Petition filed July 10, 2014
In re Declan Mannion
Bankr. E.D. Pa. Case No. 14-15566
Chapter 11 Petition filed July 10, 2014
In re Omega Services, Corp.
Bankr. D.P.R. Case No. 14-05656
Chapter 11 Petition filed July 10, 2014
See http://bankrupt.com/misc/prb14-05656.pdf
represented by: Alexis Fuentes Hernandez, Esq.
FUENTES LAW OFFICES, LLC
E-mail: alex@fuentes-law.com
In re Pedro Roel
Bankr. S.D. Tex. Case No. 14-20282
Chapter 11 Petition filed July 10, 2014
In re C. Aston Howard Funeral Homes, Inc.
Bankr. E.D. Va. Case No. 14-72521
Chapter 11 Petition filed July 10, 2014
See http://bankrupt.com/misc/vaeb14-72521.pdf
Filed Pro Se
In re Ruthy's Cheesecake & Rugelach Bakery, Inc.
Bankr. S.D.N.Y. Case No. 14-12045
Chapter 11 Petition filed July 11, 2014
See http://bankrupt.com/misc/nysb14-12045.pdf
represented by: Robert D. Nosek, Esq.
SILVERMANACAMPORA, LLP
E-mail: rnosek@silvermanacampora.com
In re NLP International Corporation
Bankr. S.D.N.Y. Case No. 14-23000
Chapter 11 Petition filed July 11, 2014
Filed Pro Se
In re Loryjor Investment Corporation
Bankr. C.D. Cal. Case No. 14-23267
Chapter 11 Petition filed July 13, 2014
See http://bankrupt.com/misc/cacb14-23267.pdf
represented by: Onyinye N. Anyama, Esq.
ANYAMA LAW FIRM
E-mail: onyi@anyamalaw.com
In re Village Inn, LLC
Bankr. C.D. Cal. Case No. 14-23354
Chapter 11 Petition filed July 13, 2014
See http://bankrupt.com/misc/cacb14-23354.pdf
represented by: David I. Brownstein, Esq.
LAW OFFICE OF DAVID I. BROWNSTEIN
E-mail: david@brownsteinfirm.com
In re Gerald Matthew Whitehead, Jr. and Michelle Lynn Whitehead
Bankr. M.D. Fla. Case No. 14-03355
Chapter 11 Petition filed July 13, 2014
In re Jack T. Krauser
Bankr. S.D. Fla. Case No. 14-25817
Chapter 11 Petition filed July 13, 2014
In re Pali Centric, LLC
dba Belmont Pourhouse
Bankr. N.D. Ill. Case No. 14-25574
Chapter 11 Petition filed July 13, 2014
See http://bankrupt.com/misc/ilnb14-25574.pdf
represented by: Karen J. Porter, Esq.
PORTER LAW NETWORK
E-mail: porterlawnetwork@gmail.com
In re Mildred Joyce Nixon
Bankr. D. Md. Case No. 14-20995
Chapter 11 Petition filed July 13, 2014
In re Lakeside Divisions, Inc.
Bankr. E.D. Mich. Case No. 14-51457
Chapter 11 Petition filed July 13, 2014
See http://bankrupt.com/misc/mieb14-51457.pdf
represented by: Harold Russell Smith, Esq.
VENTURE LAW, PLLC
E-mail: orange888@comcast.net
In re Douglas Wynn Keenan
Bankr. D. Minn. Case No. 14-42900
Chapter 11 Petition filed July 13, 2014
In re Gregory Lance Lacey and Barbara Diane Lacey
Bankr. W.D. Mo. Case No. 14-60905
Chapter 11 Petition filed July 13, 2014
In re Vegas Valley Beverage, Inc.
Bankr. D. Nev. Case No. 14-14786
Chapter 11 Petition filed July 13, 2014
See http://bankrupt.com/misc/nvb14-14786.pdf
represented by: Rebecca A. Fuller, Esq.
FULLER LAW PRACTICE, PC
E-mail: info@fullerlawpractice.com
In re Chi Chuan Hsieh
Bankr. D.N.J. Case No. 14-24212
Chapter 11 Petition filed July 13, 2014
In re William Arthur McCauley and Terri Lynn McCauley
Bankr. D. N.M. Case No. 14-12093
Chapter 11 Petition filed July 13, 2014
In re ngineering & Testing 2000, Inc.
Bankr. S.D. W. Va. Case No. 14-50156
Chapter 11 Petition filed July 13, 2014
See http://bankrupt.com/misc/wvsb14-50154.pdf
represented by: John F. Leaberry, Esq.
LAW OFFICE OF JOHN LEABERRY
E-mail: leaberry01@yahoo.com
In re Jeffrey Behling and Jacqueline Behling
Bankr. E.D. Wash. Case No. 14-02573
Chapter 11 Petition filed July 13, 2014
In re TCF, LLC
Bankr. N.D. Ala. Case No. 14-02738
Chapter 11 Petition filed July 14, 2014
See http://bankrupt.com/misc/alnb14-02738.pdf
represented by: C. Taylor Crockett, Esq.
C. TAYLOR CROCKETT, P.C.
E-mail: taylor@taylorcrockett.com
In re Ginn Casket Company, LLC
Bankr. M.D. Ga. Case No. 14-30742
Chapter 11 Petition filed July 14, 2014
See http://bankrupt.com/misc/gamb14-30742.pdf
represented by: Ernest V. Harris, Esq.
HARRIS & LIKEN, LLP
E-mail: eharris@harrisliken.com
In re Michael H. Rose
Bankr. N.D. Ill. Case No. 14-25905
Chapter 11 Petition filed July 14, 2014
In re Richard Lewis Reeves
Bankr. S.D. Miss. Case No. 14-51129
Chapter 11 Petition filed July 14, 2014
In re Edward C. Kaufer and Cynthia A. Kaufer
Bankr. D. Nev. Case No. 14-51197
Chapter 11 Petition filed July 14, 2014
In re Excel Popular, Inc.
Bankr. D.N.J. Case No. 14-24359
Chapter 11 Petition filed July 14, 2014
See http://bankrupt.com/misc/njb14-24359.pdf
represented by: Chong S. Kim, Esq.
LAW OFFICES OF CHONG S. KIM
E-mail: phillyoffice@gmail.com
In re 16 East 116th Street, Corp.
Bankr. S.D.N.Y. Case No. 14-12061
Chapter 11 Petition filed July 14, 2014
Filed Pro Se
In re David DeLuco
Bankr. W.D. Pa. Case No. 14-22836
Chapter 11 Petition filed July 14, 2014
In re Hamar Li Construction & Rental Corp.
Bankr. D.P.R. Case No. 14-05763
Chapter 11 Petition filed July 14, 2014
See http://bankrupt.com/misc/prb14-05763.pdf
represented by: Nydia Gonzalez Ortiz, Esq.
SANTIAGO & GONZALEZ
E-mail: bufetesg@gmail.com
In re Ronald Paul Jensen, Jr. and Debra Clinger Jensen
Bankr. M.D. Tenn. Case No. 14-05582
Chapter 11 Petition filed July 14, 2014
In re Arturo J. Gonzalez
Bankr. S.D. Tex. Case No. 14-33891
Chapter 11 Petition filed July 14, 2014
In re Allen R. Grant
Bankr. W.D. Wash. Case No. 14-43829
Chapter 11 Petition filed July 14, 2014
In re Leticia S. Olmos
Bankr. D. Ariz. Case No. 14-10884
Chapter 11 Petition filed July 15, 2014
In re Armenia Animal Hospital, Inc.
Bankr. M.D. Fla. Case No. 14-08137
Chapter 11 Petition filed July 15, 2014
See http://bankrupt.com/misc/flmb14-08137.pdf
represented by: Suzy Tate, Esq.
SUZY TATE, P.A.
E-mail: suzy@suzytate.com
In re Alberto Oria and Beatriz Oria
Bankr. S.D. Fla. Case No. 14-26026
Chapter 11 Petition filed July 15, 2014
In re AMG, Inc.
Bankr. N.D. Ill. Case No. 14-26037
Chapter 11 Petition filed July 15, 2014
See http://bankrupt.com/misc/ilnb14-26037.pdf
represented by: Scott R. Clar, Esq.
CRANE HEYMAN SIMON WELCH & CLAR
E-mail: sclar@craneheyman.com
In re Chicago Title & Trust Company
as Trustee under Trust Agreement dated 3/20/00
and known Trust #1108013
Bankr. N.D. Ill. Case No. 14-26067
Chapter 11 Petition filed July 15, 2014
See http://bankrupt.com/misc/ilnb14-26067.pdf
represented by: Lester A Ottenheimer, III, Esq.
OTTENHEIMER LAW GROUP, LLC
E-mail: lottenheimer@olawgroup.com
In re Deli Town of Park Road, Inc.
Bankr. W.D.N.C. Case No. 14-31207
Chapter 11 Petition filed July 15, 2014
See http://bankrupt.com/misc/ncwb14-31207.pdf
represented by: David M. Grogan, Esq.
SHUMAKER, LOOP & KENDRICK, LLP
E-mail: dgrogan@slk-law.com
In re Arawak Holding Corp.
Bankr. E.D. Pa. Case No. 14-15656
Chapter 11 Petition filed July 15, 2014
See http://bankrupt.com/misc/paeb14-15656.pdf
represented by: Dimitri L. Karapelou, Esq.
LAW OFFICES OF DIMITRI L. KARAPELOU, LLC
E-mail: dkarapelou@karapeloulaw.com
In re Feliciano Gonzalez Construction, Inc.
Bankr. D.P.R. Case No. 14-05790
Chapter 11 Petition filed July 15, 2014
See http://bankrupt.com/misc/prb14-05790.pdf
Filed Pro Se
In re Donald K. Slone and Hilda J. Slone
Bankr. W.D. Va. Case No. 14-70993
Chapter 11 Petition filed July 15, 2014
In re Larry E. Klahn
Bankr. W.D. Wis. Case No. 14-13074
Chapter 11 Petition filed July 15, 2014
*********
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 by e-mail.
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 the nation's bankruptcy courts. The
list includes links to freely downloadable of these small-dollar
petitions in Acrobat PDF documents.
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.
*********
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, 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 2014. 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 ***