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/raid1/www/Hosts/bankrupt/TCR_Public/140819.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, August 19, 2014, Vol. 18, No. 230 Headlines 818 GREEN STREET: Status Conference Set for Sept. 24 ABDAC INC: Foreclosure Sale Set for Sept. 19 ADAMIS PHARMACEUTICALS: Incurs $2.8MM Net Loss in June 30 Quarter AFRODITI LEDSTROM: LV Cabaret's Bid for Leave to Appeal Denied AGFEED USA: Aug. 21 Hearing on Exclusivity Extension AIRTRONIC USA: GDSI's Involvement in Bankruptcy Case Concluded AMBAC FINANCIAL: Capmark to Get $61MM from RSA Sale AMERICAN MEDIA: Funds to Purchase 100% Equity for $2-Mil. AMERICAN NATURAL: Posts $1.4 Million Net Income in Second Quarter AMINCOR INC: Incurs $2 Million Q2 Net Loss, Warns of Bankruptcy APOLLO MEDICAL: Unit Acquires All Shares of Calif. Medical Group ARAMID ENTERTAINMENT: Hires Irell & Manella as Litigation Counsel ARISTA POWER: Posts $1.8 Million Second Quarter Net Income ASARCO LLC: Union Pacific Wins In $214M 8th Circ. Cleanup Row ASSI IRVINE MARKET: Hanmi Bank to Hold Foreclosure Sale Aug. 26 ATLS ACQUISITION: Files Ch. 11 Plan of Liquidation BAKERSFIELD GROVE: Continued Dismissal Hearing Set for Dec. 18 BANCO ESPIRITO SANTO: Credit Protection Pacts Migrate to New Bank BAYOU SHORES: Voluntary Chapter 11 Case Summary BOREAL WATER: Delays Filing of Second Quarter Form 10-Q BOYNTON BEACH CHARTER SCHOOL: S&P Lowers Rev. Bonds Rating to 'CC' BROWN BROTHERS: Case Summary & 20 Largest Unsecured Creditors BUCCANEER RESOURCES: Files Schedules of Assets and Liabilities C&K MARKET: Yantis Has Pact With Lenders Over Claims Dispute C&K MARKET: US Bank Reserves Rights Under Subordination Deals CALDERA PHARMACEUTICALS: Incurs $1.2 Million Net Loss in Q2 CANCER GENETICS: Incurs $4.2 Million Net Loss in Second Quarter CASPIAN SERVICES: Delays Form 10-Q Filing, Expects $1.4MM Q3 Loss CEETOP INC: Delays Filing of June 30 Quarterly Report CENTURY ARMS: Has $2.2MM Purchase Offer; Aug. 22 Sale Hearing CHHATRALA EDES: Case Summary & 7 Unsecured Creditors COLDWATER CREEK: Has Until Oct. 31 to Decide on Leases COLLEGE WAY: ECP Joins Bid to Convert Chap. 11 Case to Chapter 7 COLT DEFENSE: Delayed 2Q Rpt. Filing No Impact on Moody's CFR COMMERCIAL VEHICLE GRP: Moody's Affirms B2 Corp. Family Rating COTTONWOOD ESTATES: Wants to Hire Clyde Snow as Co-counsel CRUNCHIES FOOD: Case Summary & 20 Largest Unsecured Creditors D.A.B. GROUP: U.S. Trustee Unable to Form Committee DANIEL HENDON: Diversified Funding Wins Judgment in Guaranty Suit DETROIT, MI: $1.45 Billion Pension Debt Trial Set for Next June DYNASIL CORP: Posts $74,000 Net Income in Third Quarter DYNCORP INT'L: Moody's Lowers Corp. Family Rating to 'B3' ENERGY FUTURE: Blasts Bid For 2nd Unsecured Creditors Committee ENERGY FUTURE: Extends Bar Date For Asbestos Claims EVERGREEN COUNTRY CLUB: Lender to Hold Foreclosure Sale Aug. 25 EVERGREEN COUNTRY CLUB: Berkeley Drive Lots to Be Sold Aug. 25 EXIDE TECHNOLOGIES: UST Not Convinced on Equity Panel Appointment F&H ACQUISITION: Has Exclusivity in Plan Filing Thru Oct. 13 FALCON STEEL: Hires Forshey & Prostok as Attorneys FALCON STEEL: Creditors' Panel Taps McCathern as Counsel FIELD TIME SPORTS: Case Summary & 20 Largest Unsecured Creditors FONTAINEBLEAU LAS VEGAS: BofA Takes Note Dispute To Fed. Court GENERAL MOTORS: Judge Warms To Discovery In Ignition Switch MDL GENUTEC BUSINESSS: Taps Shulman Hodges as Collection Counsel GGW BRANDS: Judge Recommends Jail for Girls Gone Wild Founder GRAND CENTREVILLE: Wells Fargo Withdraws Motion to Dismiss Case GREEN MOUNTAIN: Has Interim Authority to Use Cash Collateral GUIDED THERAPEUTICS: Warns of Possible Bankruptcy Filing HELIA TEC: HSC Reserves Rights to Challenge Hughes' Authority HOSPITALITY STAFFING: Taps Grant Thornton to Provide Tax Services HOWREY LLP: Trade Creditors Agree to Dismiss Appeal IDEARC INC: 5th Circ. Renews Yellow Pages ERISA Suit INTERLEUKIN GENETICS: Warns of Possible Bankruptcy Filing IRISH BANK: Sheehan Prepared to Close on Purchase of Loan Assets ISR GROUP: Court Approves Hiring of Neligan Foley as Counsel LAMSON AND GOODNOW: Case Summary & 20 Largest Unsecured Creditors LEHMAN BROTHERS: LBI Trustee to Start $4.6-Bil. Payout LEHMAN BROTHERS: SIPC Lauds Trustee on Distributions to Creditors LIGHTSQUARED INC: Milbank Reaps $14MM in Bankruptcy Fees LOS GATOS HOTEL: Parties Ask Court to Extend Cash Collateral Use LOVE CULTURE: Judge Approves Sale; Some Stores to Remain Open LUNA DAY: Land & Buildings to Be Sold at Aug. 25 Auction M*MODAL: Unveils New Board of Directors Following Chapter 11 Exit M.S. REAL ESTATE: Case Summary & 4 Unsecured Creditors MEDICURE INC: Provides Update on Tardoxal and Tend-TD Study MEGA RV: Files List of 20 Largest Unsecured Creditors MEGA RV: Committee Taps Glusker Fields as Bankruptcy Counsel MF GLOBAL: Asks Judge Not to Toss Lawsuit Against PwC MID-WILSHIRE PROPERTY: Assets to Be Sold at Sept. 4 Auction MIG LLC: Files Schedules of Assets and Liabilities MINI MASTER: Plan Filing Deadline Extended to Oct. 11 MOBILESMITH INC: Incurs $1.6 Million Net Loss in Second Quarter MONTREAL MAINE: Disaster Findings Unlikely to Mark Final Chapter MOSS FAMILY: Gets Interim Approval to Use Bank's Cash Collateral MOSS FAMILY: Court Moves DIP Financing Hearing to Sept. 17 MPM SILICONES: Wants Exclusivity Periods Extended for 60 Days MPM SILICONES: Lease Decision Period Extended Thru Nov. 10 NII HOLDINGS: Skips $118.8-Mil. Senior Note Interest Payment NORTEL NETWORKS: Judge to Press Creditors to End $7 Billion Fight NORTEL NETWORKS: Canadian Arm Granted Time To Fight Interest Deal OHCMC-OSWEGO LLC: Has New Stalking Horse Bidder ORECK CORP: OAC and Royal Want Protection From Class Actions ORMET CORP: 11th DIP Amendment Approval Sought OVERSEAS SHIPHOLDING: S&P Assigns 'B' Corp. Credit Rating OXBOW CARBON: S&P Lowers Corp. Credit Rating to 'BB-' PARAGON OFFSHORE: S&P Revises Outlook & Affirms 'BB' Rating PHILADELPHIA SCHOOL: Moody's Cuts $3.2BB GO Debt Rating to 'Ba3' PRIUM COMPANIES: Case Summary & 20 Largest Unsecured Creditors PROSPECT PARK: Opts For Liquidation PRM FAMILY: Sept. 17 Hearing on Liquidating Plan Outline PUERTO RICO ELECTRIC: Creditors Agree to Amend Bond Documents QUEST SOLUTION: Incurs $262,000 Second Quarter Net Loss RAAM GLOBAL: Moody's Lowers Corporate Family Rating to 'Caa2' REGIONAL CARE: Reorganization Plan Declared Effective RESPONSE BIOMEDICAL: Posts C$288,000 Net Income in Q2 REVEL AC: Fox Rothschild To Return Money, Continue As Counsel RIVER CITY RENAISSANCE: Submits List of Equity Security Holders RR DONNELLEY ARGENTINA: Files for Bankruptcy Liquidation SALUBRIOUS PHARMACEUTICAL: Case Summary & 8 Top Unsec. Creditors SCSLSJ341 LLC: Land, Buildings to Be Sold at Aug. 25 Auction SEAWORLD PARKS: Moody's Affirms 'B1' CFR & 'Ba3' Debt Ratings SEVEN COUNTIES: NextGen's Bid to Withdraw Reference Denied SHENGDATECH INC: Mudd & Saidman Dismissed From Securities Case SIMON WORLDWIDE: Incurs $1 Million Net Loss in Second Quarter SITEL WORLDWIDE: S&P Lowers CCR to 'B-' on Weak Covenant Headroom SKYLINE MANOR: Blueprint Approved to Market and Sell Property SUNTECH POWER: Solyndra Wants Ch.15 Case Moved to N.D. Cal. TITAN INTERNATIONAL: S&P Affirms 'B+' CCR & Alters Outlook to Neg. TMT USA: Nobu Su Asks Court to Stay Whale Vessels Sale Orders TMT USA: Ask Court to Clarify Matters Regarding Su Complaints TWEETER HOME: Creditors' Committee, Bose Settlement Filed USMART MOBILE: Needs More Time to File 10-Q VERIS GOLD: Posts Net Loss of $8.1 Million in Second Qtr. VERITY CORP: Delays Form 10-Q Filing, Sees $349,000 Q3 Loss VIRGINIA KERN: Case Summary & 2 Largest Unsecured Creditors VIVA ALAMO: S&P Assigns 'BB-' Rating on $565-Mil. Secured Loans WALTER ENERGY: S&P Raises CCR to 'CCC+'; Outlook Negative * Firm Suing 270 Debtors Daily Accused of High-Speed Errors * Bitcoin's Price Sinks but Cases Little Alarm Among Traders * New York Regulator Announces Settlement With PwC * Private Equity Firms Agree to Settle Lawsuit on Collusion * Car Loans Found to Lead to Bankruptcy * Argentina Appeals to White House In Sovereign Debt Crisis * Combined Defaults and Deferrals Decreased in July, Fitch Says * Consumer Credit in U.S. Rises on Demand for Car, Student Loans * FICO Recalibrates Its Credit Scores * Lewis Brisbois Adds Commercial Litigation Pro to SF Office * Large Companies With Insolvent Balance Sheet ********* 818 GREEN STREET: Status Conference Set for Sept. 24 ---------------------------------------------------- Bankruptcy Judge William J. Lafferty, III, set a status conference for September 24, 2014, in the case, Martin Lee Eng, Plaintiff, v. 818 Green Street LLC, Defendant, Adv. Proc. No. 14-04094 (Bankr. N.D. Calif.). An "Application to Proceed Without PrePaying Fees or Costs" was filed in the adversary proceeding on August 6. The judge said the Application will be considered at the status conference. A copy of the Court's ruling is avialabe at http://is.gd/ysmsL9 from Leagle.com. 818 Green Street LLC, based in Pleasanton, Calif., filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 14-42286) on May 26, 2014, in Oakland. Judge William J. Lafferty oversees the case. The Debtor is represented by the Law Offices of Mark W. Lapham, Esq. It listed total assets of $3.5 million and total liabilities of $3.2 million. The petition was signed by Harry Nguyen, managing member. ABDAC INC: Foreclosure Sale Set for Sept. 19 -------------------------------------------- Pursuant to judgment of foreclosure and sale dated Jan. 6, 2014, William F. MacKey, Jr., as Referee, will sell at public auction in Courtroom #25 on Sept. 19, 2014 at 10:00 a.m. at the Queens County General Courthouse, 88-11 Sutphin Blvd., Jamaica, NY the premises known as Block 12178, Lot 3. The judgement was entered in the case, SUPREME COURT: QUEENS COUNTY. NYCTL 1998-2 TRUST AND THE BANK OF NEW YORK MELLON, AS COLLATERAL AGENT AND CUSTODIAN FOR NYCTL 1998-2 TRUST, Pltf. vs. ABDAC, INC., et al, Defts. Index #14343/2013. The property will be sold subject to terms and conditions of the judgment and terms of sale. The Referee and counsel to the Plaintiff may be reached at: William F. MacKey, Jr., Esq. LEVY & LEVY 12 Tulip Dr. Great Neck, NY ADAMIS PHARMACEUTICALS: Incurs $2.8MM Net Loss in June 30 Quarter ----------------------------------------------------------------- Adamis Pharmaceuticals Corporation filed with the U.S. Securities and Exchange Commission its quarterly report for the period ended June 30, 2014. The Company reported a net loss of $2.88 million on $0 of revenue for the three months ended June 30, 2014, as compared with a net loss of $1.04 million on $0 of revenue for the same period in 2013. As of June 30, 2014, the Company had $11.56 million in total assets, $1.90 million in total liabilities and $9.65 million in total stockholders' equity. Bankruptcy warning "Our management intends to attempt to secure additional required funding through equity or debt financings, sales or out-licensing of intellectual property assets, seeking partnerships with other pharmaceutical companies or third parties to co-develop and fund research and development efforts, or similar transactions. However, there can be no assurance that we will be able to obtain any required additional funding. If we are unsuccessful in securing funding from any of these sources, we will defer, reduce or eliminate certain planned expenditures and delay development or commercialization of some or all of our products. If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy protection or other alternatives that could result in our stockholders losing some or all of their investment in us," the Company said in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/JbA94S About Adamis San Diego, Calif.-based Adamis Pharmaceuticals Corporation (OTC QB: ADMP) is a biopharmaceutical company engaged in the development and commercialization of specialty pharmaceutical and biotechnology products in the therapeutic areas of respiratory disease, allergy, oncology and immunology. Adamis reported a net loss of $8.15 million for the year ended March 31, 2014, as compared with a net loss of $7.19 million for the year ended March 31, 2013. Mayer Hoffman McCann P.C., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2014. The independent auditors noted that the Company has incurred recurring losses from operations and has limited working capital to pursue its business alternatives. These conditions raise substantial doubt about the Company's ability to continue as a going concern. AFRODITI LEDSTROM: LV Cabaret's Bid for Leave to Appeal Denied -------------------------------------------------------------- Nevada District Judge James C. Mahan denied the motion for leave to appeal filed by defendants/appellants 1531 LVBS, LLC and LV Cabaret South, LLC, in the lawsuit filed by the Chapter 11 trustee for the bankruptcy case of Afroditi Ledstrom. The Defendants argue, inter alia, that the bankruptcy court lacked subject-matter jurisdiction to issue its order. However, on August 1, 2014, the District Court granted a stipulation in which the parties acknowledged that the issue of subject-matter jurisdiction is currently pending before the bankruptcy court. Because one of the issues upon which defendants seek review is currently pending before the bankruptcy court, it is not appropriate for the District Court to grant leave to appeal at this time. Thus, defendants' motion will be denied without prejudice. As reported by the Troubled Company Reporter, owners of the business entities OGE, OGEAD, and Aristotle Holdings who hold various property interests in the Olympic Garden adult entertainment club in Las Vegas commenced litigation against each other in Nevada state court in December 2009. One of the owners is the Debtor, who filed her chapter 11 petition (Bankr. D. Nev. Case No. 12-11672) on February 14, 2012. On May 4, 2012, the state court action was removed to the bankruptcy court. On August 21, 2013, Defendant 1531 entered into an Agreement to purchase the assets and real property constituting the OG Club from OGE and OGEAD subject to the bankruptcy court's approval. On August 22, 2013, Defendants deposited earnest money into escrow, but failed to close escrow under the terms of the agreement, prompting the adversary proceeding. The Complaint was filed in January 2014. The causes of action alleged are: (1) breach of contract, (2) declaratory relief under 28 U.S.C. Sec. 2201, (3) promissory estoppel, (4) specific performance, and (5) injunctive relief. The case is, YVETTE WEINSTEIN, Chapter 11 Trustee, Plaintiff(s), v. 1531 LVBS, LLC, et al., Defendant(s), No. 2:14-CV-819 JCM (D. Nev.). A copy of the District Court's August 12, 2014 Order is available at http://is.gd/LOqWl0from Leagle.com. The Chapter 11 trustee is represented by: Douglas D. Gerrard, Esq. Sheldon A. Herbert, Esq. GERRARD COX & LARSEN 2450 St Rose Pkwy Henderson, NV 89074 Tel: 702-796-4000 1531 LVBS, LLC, and LV Cabaret South, LLC, are represented by: John F. O'Reilly, Esq. Timothy Ryan O'Reilly, Esq. O'REILLY LAW GROUP 325 S. Maryland Pkwy Las Vegas, NV 89101-5300 Tel: (702) 382-2500 Fax: (702) 384-6266 E-mail: info@oreillylawgroup.com Aristotelis Eliades and OG Eliades Ad, LLC,, Intervenor Plaintiffs, are represented by: Dana A. Dwiggins, Esq. SOLOMON DWIGGINS FREER & MORSE, LTD. 9060 West Cheyenne Avenue Las Vegas, NV 89129 Tel: 702-997-7714 Toll free: 800-671-9908 Fax: 702-853-5485 AGFEED USA: Aug. 21 Hearing on Exclusivity Extension ---------------------------------------------------- The Bankruptcy Court will convene a hearing on Aug. 21, at 9:30 a.m., to consider AgFeed USA, LLC, et al.'s motion for exclusivity extension. Objections, if any, are due Aug. 12 at 4:00 p.m. (ET) As reported in the Troubled Company Reporter on Aug. 1, 2014, Jefferies Leveraged Credit Products, LLC and Claims Recovery Group, LLC filed an objection and reservation of rights to the supplement to the motion of the Debtors for entry of a fifth order further extending the exclusive periods for the filing of a Chapter 11 Plan and solicitation of acceptance thereof. Lawrence J. Kotler, Esq., of Duane Morris, LLP in Delaware, Wilmington, said the supplement is just another motion seeking yet another extension of time further extending the Debtor's exclusive periods to file and solicit their plan. However, unlike the previous five requests, the supplement will now deprive creditors and parties-in-interest with a right to object to such a request, Mr. Kotler added. Jefferies and Claims Recovery Group asked the Court to deny the relief requested in the supplement in it entirety or require the Debtors to file a proper motion seeking an extension of the exclusive periods. As reported in the Troubled Company Reporter on July 24, 2014, the Debtors supplemented their motion seeking further extension of their exclusive periods, asking the U.S. Bankruptcy Court for the District of Delaware to further extend their exclusive plan filing period to Oct. 3, 2014, and their exclusive plan solicitations period to Dec. 2. About AgFeed Industries AgFeed Industries, Inc., has 21 farms and five feed mills in China producing more than 250,000 hogs annually. In the U.S., the business included 10 sow farms in three states and two feed mills producing more than one million hogs a year. AgFeed's revenue in 2012 was $244 million. AgFeed and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. The Debtors' claims and noticing agent is BMC Group, Inc. The U.S. Trustee has appointed a five-member official committee of unsecured creditors to the Chapter 11 cases. The Creditors' Committee tapped Lowenstein Sandler as lead bankruptcy counsel and Greenberg Traurig, LLP, as co-counsel. CohnReznick LLP serves as the Creditors' Committee's financial advisor. An official committee of equity security holders was also appointed to the Chapter 11 cases. The Equity Committee tapped Sugar Felsenthal Grais & Hammer LLP and Elliott Greenleaf as co-counsel. In October 2013, AgFeed completed the sale of the U.S. operations to three buyers for $79.45 million, including $53.4 million in cash. In November 2013, the Court authorized AgFeed to sell its Chinese assets to Hong Kong firm Good Charm International Development Ltd. in a deal that is expected to net the debtor $45 million once several highly negotiated price adjustments are factored in. An auction was held for the Chinese facilities on Nov. 20, although no one emerged to top what was originally a $50.5 million bid. The price was lowered by $3.45 million in view of what the contract called "newly discovered" operational problems and "deterioration of the performance" of feed mills. AIRTRONIC USA: GDSI's Involvement in Bankruptcy Case Concluded -------------------------------------------------------------- Global Digital Solutions, Inc. on Aug. 15 provided an update on the Company's involvement in the Airtronic USA, Inc. bankruptcy case. On May 14, 2014, GDSI received $1,509,055.63 in full payment of its outstanding loans to Airtronic. On June 12, 2014, GDSI received $414,760.83 that the Company was awarded for legal fees and expenses incurred. GDSI's involvement with Airtronic and its bankruptcy proceedings has now concluded. Interested parties may review all of the proceedings in the case (Airtronic USA Inc. ? Case No. 12-09776) through the US Bankruptcy Court, Northern District of Illinois Official Court Electronic Document Filing System ("PACER"). Please use the following link: https://ecf.ilnb.uscourts.gov/ Those wishing to access the PACER system will first need to create a PACER account, which can be done here https://pacer.psc.uscourts.gov/pscof/regWizard.jsf About Global Digital Solutions, Inc. Global Digital Solutions -- http://www.gdsi.co-- is positioning itself as a leader in providing cyber arms manufacturing, complementary security and technology solutions and knowledge- based, cyber-related, culturally attuned social consulting in unsettled areas. About Airtronic USA, Inc. Airtronic -- http://www.Airtronic.net-- is an electro-mechanical engineering design and manufacturing company. It provides small arms and small arms spare parts to the U.S. Department of Defense, foreign militaries, and the law enforcement market. The company's products include grenade launchers, rocket propelled grenade launchers, grenade launcher guns, flex machine guns, grenade machine guns, rifles, and magazines. Founded in 1990, the company is based in Elk Grove Village, Illinois. On May 16, 2012, the voluntary petition of Airtronic, Inc. for liquidation under Chapter 7 was converted to a Chapter 11 reorganization. The company had filed for chapter 7 bankruptcy on March 13, 2012. AMBAC FINANCIAL: Capmark to Get $61MM from RSA Sale --------------------------------------------------- On July 15, 2014, Capmark Financial Group Inc. announced that it has entered into an agreement (the "Sale Agreement") to sell its interests in a subsidiary ("NewCo") to be formed in connection with the Restructuring and Settlement Agreement (the "RSA") among Capmark, certain of its subsidiaries and Ambac Assurance Corporation ("Ambac") relating to certain low-income housing tax credit funds for which Ambac issued surety bonds to investors (the "Ambac Funds"). Under the terms of the Sale Agreement, Capmark will sell its interests in NewCo to HCP Pacific Holdings, LLC, an affiliate of Hunt Capital Partners, LLC and Hunt Companies Inc., for a purchase price of $31 million. At the closing of the RSA, $30 million of the approximately $90 million of cash and investment securities previously pledged to Ambac for up to approximately ten additional years will be released to Capmark and Capmark will be released from all obligations related to the Ambac Funds. NewCo will be capitalized with the remaining Ambac collateral after payment of certain expenses in connection with the RSA and with certain other assets related to the Ambac Funds and will issue a new guarantee to Ambac for reimbursement of any payments it is required to make under the surety bonds. Capmark will receive an aggregate of $61 million upon the closing of the RSA and the Sale Agreement. Following the closing of the Sale Agreement, Capmark will have no remaining interest in the Ambac Funds or NewCo. The RSA was filed with the U.S. Bankruptcy Court for the District of Delaware on June 24, 2014 and approved on July 11, 2014. The closing of the RSA and the Sale Agreement are subject to certain closing conditions. Capmark currently expects the RSA and the Sale Agreement to close in the third quarter of 2014, subject to fulfillment of closing conditions. Capmark expects to record a gain on sale of discontinued operations of approximately $30 million after the closing of both the RSA and the Sale Agreement. About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac's bond insurance unit, Ambac Assurance Corp., is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about US$1.62 billion. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. Bankruptcy Judge Shelley C. Chapman entered an order confirming the Fifth Amended Plan of Reorganization of Ambac Financial Group, Inc. on March 14, 2012. The Plan provides for the full payment of secured claims and 8.5% to 13.2% recovery for general unsecured claims. The second modified version of the confirmed Plan was declared effective on May 1, 2013, with Ambac obtaining bankruptcy court approval of a $100+ million claims settlement with the Internal Revenue Service. AMERICAN MEDIA: Funds to Purchase 100% Equity for $2-Mil. --------------------------------------------------------- Lisa Allen, writing for The Deal, reported that Chatham Asset Management, Omega Advisors Inc. CEO Leon Cooperman, and Cooperman's Omega Charitable Partnership, who, together, already owned nearly 40% of American Media Inc.'s total debt load, agreed to purchase 100% of AMI's equity for $2 million in cash and assume AMI's $513 million debt load in a deal that is expected to close soon. According to The Deal, citing a source familiar with the situation, Chatham and Omega are also planning to aid AMI's balance sheet by swapping about $120 million of their second-lien notes for equity shortly after the recapitalization closes. The debt-for-equity swap will lighten AMI's debt load by about 23%, The Deal said. About American Media Based in New York, American Media, Inc., publishes celebrity journalism and health and fitness magazines in the U.S. These include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer. In addition to print properties, AMI manages 14 different Web sites. The company also owns Distribution Services, Inc., the country's #1 in-store magazine merchandising company. American Media, Inc., and 15 units, including American Media Operations, Inc., filed for Chapter 11 protection in Manhattan (Bankr. S.D.N.Y. Case No. 10-16140) on Nov. 17, 2010, with a prepackaged plan. The Debtors emerged from Chapter 11 reorganization in December 2010, handing ownership to former bondholders. The new owners include hedge funds Avenue Capital Group and Angelo Gordon & Co. American Media incurred a net loss of $55.54 million on $348.52 million of total operating revenues for the fiscal year ended March 31, 2013, as compared with net income of $22.29 million on $386.61 million of total operating revenues for the fiscal year ended March 31, 2012. As of Dec. 31, 2013, the Company had $565.84 million in total assets, $692.81 million in total liabilities, $3 million in redeemable noncontrolling interest, and a $129.97 million total stockholders' deficit. * * * As reported by the TCR on Nov. 20, 2013, Standard & Poor's Ratings Services raised its corporate credit rating on Boca Raton, Fla.- based American Media Inc. to 'CCC+' from 'SD'. "The upgrade follows the company's exchange of $94.3 million of its $104.9 million 13.5% second-lien cash-pay notes due 2018 for privately held $94.3 million 10% second-lien notes due 2018," said Standard & Poor's credit analyst Hal Diamond. In the July 10, 2014, edition of the TCR, Moody's Investors Service has lowered American Media, Inc.'s Corporate Family Rating (CFR) to Caa1 from B3. The downgrade of American Media's CFR to Caa1 reflects Moody's expectation for lower revenue and EBITDA resulting in higher financial leverage. AMERICAN NATURAL: Posts $1.4 Million Net Income in Second Quarter ----------------------------------------------------------------- American Natural Energy Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $1.45 million on $470,388 of revenues for the three months ended June 30, 2014, as compared with a net loss of $108,867 on $890,320 of revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $478,281 on $1.04 million of revenues as compared with a net loss of $605,142 on $1.90 million of revenues for the same period last year. As of June 30, 2014, the Company had $18.99 million in total assets, $15.37 million in total liabilities and $3.61 million in total stockholders' equity. "To date, our production has not been sufficient to fund our operations and drilling program. At June 30, 2014, we do not have any available borrowing capacity and have negative working capital of approximately $10.0 million," the Company said in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/8hZfrP About American Natural American Natural Energy Corporation is a Tulsa, Oklahoma based independent exploration and production company with operations in St. Charles Parish, Louisiana. American Natural reported a net loss of $3.14 million in 2013, a net loss of $3.31 million in 2012 and a net loss of $905,792 in 2011. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company incurred a net loss in 2013 and has a working capital deficiency and an accumulated deficit at Dec. 31, 2013. AMINCOR INC: Incurs $2 Million Q2 Net Loss, Warns of Bankruptcy --------------------------------------------------------------- Amincor, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.02 million on $6.12 million of net revenues for the three months ended June 30, 2014, compared to a net loss of $1.90 million on $7.04 million of net revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $4.88 million on $12.46 million of net revenues compared to a net loss of $4.39 million on $14.01 million of net revenues for the same period during the prior year. The Company's balance sheet at June 30, 2014, showed $25.79 million in total assets, $44.36 million in total liabilities and a $18.56 million total deficit. "Amincor's Management is working to secure additional available capital resources and turn around the subsidiary companies to generate operating income. Amincor may raise additional funds through public or private debt or equity financings. However, there can be no assurance that such resources will be sufficient to fund the operations of Amincor or the long-term growth of the subsidiaries businesses. Amincor cannot assure investors that any additional financing will be available on favorable terms, or at all. Without additional capital resources, Amincor may not be able to continue to operate, take advantage of unanticipated opportunities, develop new products or otherwise respond to competitive pressures, and be forced to curtail its business, liquidate assets and/or file for bankruptcy protection," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/TqGCQo About Amincor Inc. New York, N.Y.-based Amincor, Inc., is a holding company operating through its operating subsidiaries Baker's Pride, Inc., Environmental Holdings Corp. and Tyree Holdings Corp., and Amincor Other Assets, Inc. BPI is a producer of bakery goods. Tyree performs maintenance, repair and construction services to customers with underground petroleum storage tanks and petroleum product dispensing equipment. Through its wholly owned subsidiaries, Environmental Quality Services, Inc., and Advanced Waste & Water Technology, Inc., EHC provides environmental and hazardous waste testing and water remediation services in the Northeastern United States. Other Assets, Inc., was incorporated to hold real estate, equipment and loan receivables. As of March 31, 2013, all of Other Assets' real estate and equipment are classified as held for sale. APOLLO MEDICAL: Unit Acquires All Shares of Calif. Medical Group ---------------------------------------------------------------- On July 22, 2014, pursuant to a Stock Purchase Agreement dated as of July 21, 2014, among the Target, the shareholders of the Target and an affiliate of Apollo Medical Holdings, Inc., the Affiliate acquired all of the outstanding shares of capital stock of a medical group that provides professional medical services in Los Angeles County, California (the "Target"). The shares of the Target were acquired from the Sellers. The purchase price for the shares was (i) $2,000,000 in cash, (ii) $362,646 to pay off and discharge certain indebtedness of the Target, (iii) warrants to purchase up to 1,000,000 shares of the Company's common stock at an exercise price of $1.00 per share and (iv) a contingent amount of up to $1,000,000 payable, if at all, in cash. The acquisition was funded by an intercompany loan from Apollo Medical Management, Inc., a wholly-owned subsidiary of the Company, which also provided an indemnity in favor of one of the Sellers relating to certain indebtedness of the Target that remained outstanding following the closing of the acquisition. Following the acquisition of the Target by the Affiliate, the Affiliate was merged with and into the Target, with the Target being the surviving corporation. In connection with the acquisition of the Target, AMM entered into a management services agreement with the Affiliate on July 21, 2014. As a result of the Affiliate's merger with and into the Target, Target is now the counterparty to this management services agreement and bound by its terms. Pursuant to the management services agreement, AMM will manage all non-medical services for the Target and will have exclusive authority over all non-medical decision making related to the ongoing business operations of the Target, and the financial statements of the Target will be consolidated as a variable interest entity with those of the Company from the date of the management services agreement. About Apollo Medical Glendale, Calif.-based Apollo Medical Holdings, Inc., provides hospitalist services in the Greater Los Angeles, California area. Hospitalist medicine is organized around the admission and care of patients in an inpatient facility such as a hospital or skilled nursing facility and is focused on providing, managing and coordinating the care of hospitalized patients. Apollo Medical reported a net loss of $4.55 million for the year ended Jan. 31, 2014, following a net loss of $8.90 million for the year ended Jan. 31, 2013. As of Jan. 31, 2014, the Company's balance sheet showed $3.95 million in total assets, $5.65 million in total liabilities and a $1.69 million total stockholders' deficit. ARAMID ENTERTAINMENT: Hires Irell & Manella as Litigation Counsel ----------------------------------------------------------------- Aramid Entertainment Fund Limited and its debtor-affiliates seek permission from the Hon. Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York to employ Irell & Manella LLP as special litigation counsel for the limited purpose of representing the Debtors in connection with the Fortress Litigation. The Debtors require Irell & Manella to: (a) prepare motions, applications, answers, orders, reports, and other papers; (b) represent the Debtors at all court hearings and trials; and (c) perform all other necessary legal services required by the Debtors in connection with the Fortress Litigation. In 2012, Aramid Entertainment commenced litigation against Fortress Investment Group and other defendants in a California state court action. The Fortress Litigation is based, inter alia, on allegations of wrongful interference by various defendants in connection with a financing transaction in which Aramid Entertainment provided partial financing for a slate of films. Irell & Manella will also be reimbursed for reasonable out-of- pocket expenses incurred. Jeffrey M. Reisner, partner of Irell & Manella, 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 Southern District of New York will hold a hearing on the application on Sept. 10, 2014, at 10:00 a.m. Objections, if any, are due Sept. 3, 2014, at 5:00 p.m. Irell & Manella can be reached at: Jeffrey M. Reisner, Esq. IRELL & MANELLA LLP 840 Newport Center Drive, Suite 400 Newport Beach, CA 92660 Tel: (949) 760-5242 Fax: (949) 760-5200 E-mail: jreisner@irell.com About Aramid Entertainment Aramid Entertainment Fund Limited has been engaged in the business of providing short and medium term liquidity to producers and distributors of film, television and other media and entertainment content by way of loans and equity investments. On May 7, 2014, Geoffrey Varga and Jess Shakespeare of Kinetic Partners (Cayman) Limited were appointed under Cayman law as the joint voluntary liquidators of AEF and two affiliates. On June 13, 2014, the JVLs authorized AEF and two affiliates to file for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-11802) in Manhattan on June 13, 2014. The Debtors have tapped Reed Smith, LLP, in New York, as counsel and Kinetic Partners (Cayman) Limited as crisis managers. AEF estimated at least $100 million in assets and between $10 million to $50 million in liabilities. ARISTA POWER: Posts $1.8 Million Second Quarter Net Income ---------------------------------------------------------- Arista Power, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $1.82 million on $161,574 of sales for the three months ended June 30, 2014, compared to a net loss of $853,000 on $328,617 of sales for the same period a year ago. For the six months ended June 30, 2014, the Company reported net income of $1.07 million on $291,444 of sales compared to a net loss of $2.02 million on $437,260 of sales for the same period during the prior year. As of June 30, 2014, the Company had $2.46 million in total assets, $4.49 million in total liabilities and a $2.02 million total stockholders' deficit. As of June 30, 2014, the Company's accumulated deficit totalled $26 million. The Company had a working capital deficit of approximately $524,000 as of June 30, 2014, as compared to working capital deficit of $1,157,000 as of Dec. 31, 2013. The increase in working capital relates to the March 2014 private placement which provided the company working capital of $1.4 million, offset by the operating loss for the six months ended June 30, 2014. "Since its formation, the Company utilized funds generated from private placement offerings and debt to fund its product development and operations and has incurred a cumulative net loss of $25,958,830 as of June 30, 2014. The recurring losses from operations and current liquidity raise substantial doubt about the Company's ability to continue as a going concern. Continuation of the Company is dependent on achieving sufficiently profitable operations and obtaining additional financing," the Company stated in the filing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/YG2tWv About Arista Power Rochester, N.Y.-based Arista Power, Inc., is a developer, manufacturer, and supplier of custom-designed power management systems, renewable energy storage systems, and a supplier and designer of solar energy systems. Arista Power reported a net loss of $3.27 million on $2.19 million of sales for the year ended Dec. 31, 2013, as compared with a net loss of $3.48 million on $1.99 million of sales for the year ended Dec. 31, 2012. EFP Rotenberg, LLP, in Rochester, 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's recurring losses have resulted in an accumulated deficit and ongoing operation is dependent upon improved results from operation and additional financing. These conditions raise substantial doubt about its ability to continue as a going concern. Bankruptcy Warning "We may also seek additional financing to accelerate our growth. If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of the Company held by existing shareholders will be reduced and our shareholders may experience significant dilution. In addition, new securities may contain rights, preferences or privileges that are senior to those of our common stock. If we raise additional capital by incurring debt, this will result in increased interest expense. There can be no assurance that acceptable financing necessary to further implement our plan of operation can be obtained on suitable terms, if at all. Our ability to develop our business could suffer if we are unable to raise additional funds on acceptable terms, which would have the effect of limiting our ability to increase our revenues, develop our products, attain profitable operations, or even may result in our business filing for bankruptcy protection or otherwise ending our operations which could result in a significant or complete loss of your investment," the Company said in the Annual Report for the year ended Dec. 31, 2013. ASARCO LLC: Union Pacific Wins In $214M 8th Circ. Cleanup Row ------------------------------------------------------------- Law360 reported that the Eighth Circuit kept bankrupt mining company Asarco LLC on the hook for $214 million in Superfund cleanup fees to the U.S. Environmental Protection Agency, rejecting claims that fellow potentially responsible party Union Pacific Corp. should have to cover some of that amount. According to the report, the appeals court found that a $25 million settlement between Union Pacific and the EPA protects the company from any additional actions relating to an Omaha, Nebraska, Superfund site, even though an earlier agreement between Union Pacific and Asarco tolled the statute of limitations for contribution claims. Because Union Pacific's deal with the government did not include a specific waiver, the Comprehensive Environmental Response, Compensation and Liability Act unambiguously shields Union Pacific from further litigation related to pollution costs at the site, the report related, citing the decision. The case is Asarco LLC v. Union Pacific Railroad Co., case number 13-2830, in the U.S. Court of Appeals for the Eighth Circuit. ASSI IRVINE MARKET: Hanmi Bank to Hold Foreclosure Sale Aug. 26 --------------------------------------------------------------- Hanmi Bank, as Secured Party, will sell at public auction to the highest bidder for cash, payable at the time of sale, the personal property assets of Assi Irvine Market LLC, a California limited liability company dba Assi Natural Market. The auction will be held on August 26, at 10:00 a.m. at 4651 East Airport Drive, Ontario, California 91761. The public sale will include, without limitation, all tangible and intangible personal property assets of Assi Irvine Market LLC. The Collateral includes but is not limited to all inventory, equipment, and accounts. The Collateral will be available for inspection at the sale location on August 20, 21, 22 and 25, 2014 from 9:00 a.m. to 3:00 p.m. All proceeds derived from the sale will be disbursed pursuant to the California Commercial Code. For more information, contact: Gerald Evans Cornerstone Equipment Management, Inc. 4651 E Airport Drive Ontario, CA 91761 Tel: 909-230-6100 THE COLLATERAL WILL BE OFFERED FOR SALE WITHOUT ANY WARRANTIES OF ANY KIND WHATSOEVER, WHETHER EXPRESSED OR IMPLIED REGARDING THE COLLATERAL'S CONDITION, QUALITY, MERCHANTABILITY, AND FOR FITNESS FOR ANY PARTICULAR PURPOSE. THE COLLATERAL WILL BE SOLD "AS IS", "WHERE IS", AND WITH ALL FAULTS. Assi Irvine Market LLC and Assi Super, Inc. are entitled to an accounting of the unpaid indebtedness secured by the Assi Irvine Market Collateral being sold. You may request an accounting by calling In Sung Park at Secured Party at (213) 368-3235. The sale of the Collateral does not affect the rights of Hanmi Bank to foreclose upon any other collateral securing the obligations of Assi Irvine Market LLC and Assi Super, Inc. owing to Hanmi Bank, or to pursue any other rights or remedies it may have against Assi Irvine Market LLC, Assi Super, Inc., or any other parties. ATLS ACQUISITION: Files Ch. 11 Plan of Liquidation -------------------------------------------------- ATLS Acquisition, LLC, et al., filed with the U.S. Bankruptcy Court for the District of Delaware a joint plan of reorganization and an accompanying disclosure statement, which propose to fund a liquidating trust with proceeds from the sale of the Debtors' assets. Allowed Secured Claims will either be paid in full in cash, receive the proceeds of the sale of the corresponding collateral, receive the return of the collateral itself, or treated in a manner otherwise acceptable under Section 1129 of the Bankruptcy Code. Allowed Administrative Claims, Priority Tax Claims, and U.S. Trustee Fee Claims will be paid in full. Allowed Non-Tax Priority Claims will be paid in full in cash. Each Holder of a general unsecured claim will receive a beneficial interest in its pro rata share of the liquidating trust assets. Each holder of an Allowed Equity Interest in ATLS will receive its pro rata share of the liquidating trust assets after payment in full in cash of all allowed claims and all allowed general unsecured claims plus postpetition interest. A full-text copy of the Disclosure Statement dated Aug. 15, 2014, is available at http://bankrupt.com/misc/ATLSds0815.pdf About Liberty Medical Entities that own diabetics supply provider Liberty Medical led by ATLS Acquisition, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-10262) on Feb. 15, 2013, just less than three months after a management buy-out and amid a notice by the lender who financed the transaction that it's exercising an option to acquire the business. Liberty has been in business for 22 years serving the needs of both type 1 and type 2 diabetic patients. Liberty is a mail order provider of diabetes testing supplies. In addition to diabetes testing supplies, the Debtors also sell insulin pumps and insulin pump supplies, ostomy, catheter and CPAP supplies and operate a large mail order pharmacy. Liberty operates in seven different locations and has 1,684 employees. Dennis A. Meloro, Esq., at Greenberg Traurig, LLP, serves as the Debtor's counsel; Ernst & Young LLP to provide investment banking advice; and Epiq Bankruptcy Solutions, LLC, as claims and noticing agent for the Clerk of the Bankruptcy Court. An official committee of unsecured creditors has been appointed in the case and consists of LifeScan, Inc., Abbott Laboratories, and Teva Pharmaceuticals USA, Inc. They are represented by Joseph H. Huston Jr., Esq., Maria Aprile Sawczuk, Esq., and Camille C. Bent, Esq., of Stevens & Lee P.C. as well as Bruce Buechler, Esq., S. Jason Teele, Esq., and Nicole Stefanelli, Esq. of Lowenstein Sandler LLP. The Committee has tapped Mesirow Financial Consulting, LLC, as financial advisors. BAKERSFIELD GROVE: Continued Dismissal Hearing Set for Dec. 18 -------------------------------------------------------------- A continued hearing on Bakersfield Grove Limited, LLC's motion to dismiss its bankruptcy case has been set for Dec. 18, 2014 at 10:30 a.m. at Courtroom 5A, 411 W Fourth St., Santa Ana, CA 92701. Brea, California-based Bakersfield Grove Limited, LLC, owns real property at Panam Lane in Bakersfield, Calif. Bakersfield Grove filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 12-13157) on March 12, 2012. Judge Erithe A. Smith presides over the case. Kathy Bazoian Phelps, Esq., at Danning, Gill, Diamond & Kollitz, LLP. The petition was signed by Robert M. Clark, president of managing member. The Debtor scheduled total assets of $17.4 million and total liabilities of $20.7 million. Steven M. Speier, the receiver of the Debtor's assets, is represented by Jeffrey B. Gardner, Esq., and Laurie Chavez, Esq., at Barry, Gardner & Kincannon. BANCO ESPIRITO SANTO: Credit Protection Pacts Migrate to New Bank ----------------------------------------------------------------- Law360 reported that the International Swaps and Derivatives Association Inc. all but wiped out junior bondholders in failed Portuguese lender Banco Espirito Santo SA, ruling that the bank's state-ordered breakup transfers credit protection contracts to its new, healthy incarnation. According to the report, the ISDA's Determinations Committee said unanimously that the Portuguese central bank's decision to split up the private bank constituted a "succession event," meaning that credit default swaps on $953 million in subordinated debt will now reference Novo Banco SA, the new entity that took on the healthy assets and businesses. About Banco Espirito Santo Banco Espirito Santo is a private Portuguese bank based in Lisbon. It is 20% owned by Espirito Santo Financial Group. * * * On Aug. 15, 2014, The Troubled Company Reporter reported that Standard & Poor's Ratings Services affirmed and then suspended its 'C' ratings on two short-term certificate of deposit programs and one commercial paper program originally issued by Portugal- based Banco Espirito Santo S.A. (BES). As S&P publically communicated on Aug. 8, 2014, most of BES' senior unsecured debt has been transferred to newly formed Novo Banco S.A. (not rated) as part of BES' resolution proceedings. S&P currently does not have satisfactory information to perform its ratings analysis on these debt instruments, and S&P is therefore suspending its ratings on them. The TCR, on Aug. 14, 2014, also reported that Moody's Investors Service has assigned debt, deposit ratings and a standalone bank financial strength rating (BFSR) to the newly established Portuguese entity Novo Banco, S.A., in response to the transfer of the majority of assets, liabilities and off-balance sheet items from Banco Espirito Santo, S.A. (BES), together with the banking activities of this bank. The following ratings have been assigned: (1) long- and short-term deposit ratings of B2/Not-Prime; (2) a standalone BFSR of E (equivalent to a ca baseline credit assessment [BCA]). BAYOU SHORES: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Bayou Shores SNF LLC c/o Rehabilitation Center of St. Pete 435 42nd Avenue South Saint Petersburg, FL 33705 Case No.: 14-09521 Nature of Business: Health Care Chapter 11 Petition Date: August 15, 2014 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: Elizabeth A Green, Esq. BAKER & HOSTETLER LLP 200 S Orange Ave Suntrust Center, Suite 2300 Orlando, FL 32801 Tel: (407) 649-4000 Fax: (407) 841-0168 Email: egreen@bakerlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Tzvi Bogomilsky, managing member. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. BOREAL WATER: Delays Filing of Second Quarter Form 10-Q ------------------------------------------------------- Boreal Water Collection, Inc., will delay the filing of its quarterly report on Form 10-Q for the period ended June 30, 2014, with the U.S. Securities and Exchange Commission. The Company said it was unable to complete timely its financial statements without unreasonable effort or expense. About Boreal Water Kiamesha Lake, N.Y.-based Boreal Water Collection, Inc., is a personalized bottled water company specializing in premium custom bottled water. Boreal Water reported net income of $849,748 on $2.15 million of sales for the year ended Dec. 31, 2013, as compared with a net loss of $822,902 on $2.68 million of sales in 2012. Terry L. Johnson, CPA, in Casselberry, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditor noted that the Company has incurred a deficit of approximately $2.5 million and has used approximately $400,000 of cash due to its operating activities in the two years ended Dec. 31, 2013. The Company may not have adequate readily available resources to fund operations through Dec. 31, 2014. This raises substantial doubt about the Company's ability to continue as a going concern. BOYNTON BEACH CHARTER SCHOOL: S&P Lowers Rev. Bonds Rating to 'CC' ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its long-term rating six notches to 'CC' from 'B' on Boynton Beach, Fla.'s series 2012A tax-exempt and 2012B taxable revenue bonds, issued for and supported by the Charter School of Boynton Beach. The outlook is negative. "The downgrade and negative outlook reflect our view that given the revocation of the charter and closure of the school, there is a virtual certainty of default within the next 24 months," said Standard & Poor's credit analyst Carolyn McLean. The charter authorizer, the School District of Palm Beach, voted unanimously to revoke the school's charter on July 30, 2014. The charter revocation is based on Florida State statute that requires the sponsor to terminate a school's charter if the school receives a grade of 'F' for two consecutive years and has been in operation for more than five years. The Charter School of Boynton Beach had a score of 'F' for the 2012-2013 and 2013-2014 school years. Although the school is appealing the 'F' score for the most recent school year, the authorizer states that the score is low enough that it is unlikely to be adjusted to 'D' by the state. If the academic ranking score is not adjusted, state statute does not provide for further appeal of the charter revocation. S&P expects that the bonds will likely default within the next 24 months given that the charter school no longer has access to operating revenue once the charter is revoked. The authorizer states that the school does not plan to open for the 2014-2015 school year and that students will return to their local district schools or attend other charter schools. Bondholders benefit from a fully funded debt service reserve fund that could cover additional debt service payments. S&P's expectation is that the debt service payment due on June 1, 2014, was made with operating funds, and the following year's debt service payments could be covered by the debt service reserve after which the debt service reserve fund would be exhausted. BROWN BROTHERS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Brown Brothers Driver Outsource Services, LLC 2655 Donaghey Ave Conway, AR 72032 Case No.: 14-14394 Chapter 11 Petition Date: August 15, 2014 Court: United States Bankruptcy Court Eastern District of Arkansas (Little Rock) Judge: Hon. Ben T. Barry Debtor's Counsel: Kevin P. Keech, Esq. KEECH LAW FIRM, PA 4800 West Commercial Drive N. Little Rock, AR 72116 Tel: (501) 221-3200 Fax: (501)221-3201 Email: kkeech@keechlawfirm.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $100,000 to $500,000 The petition was signed by Jason Brown, 51% member and manager. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/areb14-14394.pdf BUCCANEER RESOURCES: Files Schedules of Assets and Liabilities -------------------------------------------------------------- Buccaneer Resources LLC filed with the bankruptcy court its schedules of assets and liabilities, disclosing total assets of $47,263,322, and total liabilities of $142,729,233. A full-text copy of the document is available for free at http://is.gd/Wnnu3a About Buccaneer Energy Buccaneer Resources, LLC, and eight affiliates, including Buccaneer Energy Ltd. sought Chapter 11 bankruptcy protection in Victoria, Texas (Bankr. S.D. Tex. Lead Case No. 14-60041) on May 31, 2014. Buccaneer listed assets of up to $50,000 and liabilities between $50 million and $100 million in its petition. Founded in 2006, Buccaneer Energy, Ltd. is a publicly traded independent oil and gas company listed on the Australian Securities Exchange under the symbol "BCC". Although BCC is an Australian listed entity, the company operates exclusively through its eight U.S. subsidiary debtors, each of which are headquartered in the U.S. and which maintain offices in Houston and Dallas, Texas, and Kenai and Anchorage, Alaska. The Debtors' primary business is the exploration for and production of oil and natural gas in North America. Operations have historically focused on both onshore and offshore opportunities in the Cook Inlet of Alaska as well as the development of offshore projects in the Gulf of Mexico and onshore oil opportunities in Texas and Louisiana. CEO Curtis Burton was terminated in May 2014. Manning the Debtors' operations is Conway MacKenzie senior managing director John T. Young, who was appointed chief restructuring officer in March 2014. The bankruptcy cases are assigned to Judge David R Jones. The Debtors have sought and obtained an order authorizing joint administration of their Chapter 11 cases. The Debtors have tapped Robert Andrew Black, Esq., Jason Lee Boland, Esq., Robert Bernard Bruner, and William R Greendyke, Esq., at Fulbright Jaworski LLP as counsel. Norton Rose Fulbright Australia will render legal services related to cross-border insolvency and general corporate and litigation matters to Buccaneer Energy Ltd. Epiq Systems is the claims and notice agent. C&K MARKET: Yantis Has Pact With Lenders Over Claims Dispute ------------------------------------------------------------ In the Chapter 11 case of C&K Markets Inc., Yantis Enterprises Inc., as survivor by merger to Chetco Rexall Drugs, Inc., and Dale and Melva Engel, filed a motion to determine rights under subordination agreement and precautionary objection to the claim of senior lenders, Endeavour Structured Equity and Mezzaine Fund I and THL Credit. The determination of rights was raised in order to resolve disputes between Yantis and the senior lenders concerning the interpretation of written subordination agreements. Yantis objects to the proof of claims of senior lenders. Senior lenders responded that the objection to the proof of claim on any basis is unfounded, unnecessary and highly prejudicial to the senior lenders. In order to avoid unnecessary litigation between Yantis and senior lenders, Yantis withdrew any and all express or inferred objections to the proofs of claim and agree not to object to the same in the future. Senior lenders, in exchange, will not assert a claim for damages or other relief against Yantis for objecting the proof of claim. Local Counsel for Endeavour Structured Equity & Mezzanine Fund I, LP and THL Credit, Inc. Jeffrey C. Misley, Esq. SUSSMAN SHANK, LLP 1000 SW Broadway, Suite 1400 Portland, OR 97205 Direct Dial: (503) 227-1111 Facsimile: (503) 248-0130 E-mail: jeffm@sussmanshank.com Counsel for Endeavour Structured Equity & Mezzanine Fund I, LP and THL Credit, Inc. Pamela K. Webster, Esq. BUCHALTER NEMER A Professional Corporation 1000 Wilshire Blvd., Suite 1500 Los Angeles, CA 90017 Direct Dial: (213) 891-5030 Facsimile: (213) 896-0400 E-mail: pwebster@buchalter.com About C&K Market C&K Market Inc., a 57 year-old grocery store chain, sought bankruptcy protection from creditors with a plan to sell or close some of its stores, on Nov. 19, 2013 (Bankr. D. Ore. Case No. 13-64561). The case is assigned to Judge Frank R. Alley, III. C&K Market scheduled $157,696,921 in total assets and $101,604,234 in total liabilities. The Debtor is represented by Albert N. Kennedy, Esq., Timothy J. Conway, Esq., Michael W. Fletcher, Esq., and Ava L. Schoen, Esq., at Tonkon Torp LLP, in Portland, Oregon. Edward Hostmann has been tapped as chief restructuring officer, and The Food Partners, LLC, serves as the Debtor's financial advisor. Kieckhafer Schiffer & Company LLP serves as advisors and consultants to communicate with lenders, brokers, attorneys and other professionals. Henderson Bennington Moshofsky, P.C., serves as accountants. Watkinson Laird Rubenstein Baldwin & Burgess PC serves as labor counsel. The Debtor hired Great American Group, LLC, to conduct store closing sales. Kurtzman Carson Consultants is the Debtor's noticing agent. An Official Committee of Unsecured Creditors appointed in the Debtor's case has retained Scott L. Hazan, Esq., David M. Posner, Esq., and Jenette A. Barrow-Bosshart, Esq., at Otterbourg P.C. as lead co-counsel, and Tara J. Schleicher, Esq., at Farleigh Wada Witt as local co-counsel; and Protiviti, Inc. as financial consultant. C & K Market on June 30 received a bankruptcy judge's approval for its proposed plan to exit Chapter 11 protection. Judge Frank Alley III of U.S. Bankruptcy Court in Oregon signed an order confirming C&K Market's plan of reorganization, which is based on new financing to pay off a $25 million loan owing to U.S. Bank NA, the company's secured lender. The restructuring plan offers common stock to unsecured creditors with an estimated $60 million in claims. Unsecured creditors individually owed $10,000 or less will be paid 80% in cash. Secured creditors that hold liens on real property will receive seven-year notes at 6% interest. Meanwhile, creditors secured with liens on personal property are to be paid in full over four years, with an interest rate of 6%. C&K MARKET: US Bank Reserves Rights Under Subordination Deals ------------------------------------------------------------- In the Chapter 11 case of C & K Market Inc., US Bank filed an objection to the joint motion to determine rights under subordination agreement. Pursuant to the Debtor's second amended plan of reorganization, it contemplates that claims of U.S. Bank will be paid in full on the effective date. Nevertheless, section 7.6 of the plan provides for the compliance of the debtor with all subordination agreements. U.S. Bank has subordination agreement with several other creditors. It reserves its right until such time that all claims are paid in full. U.S. Bank is represented by: Teresa H. Pearson, P.C., Esq. MILLER NASH LLP 3400 U.S. Bancorp Tower 111 S.W. Fifth Avenue Portland, Oregon 97204 Telephone: (503) 224-5858 Facsimile: (503) 224-0155 E-mail: teresa.pearson@millernash.com - and - Michael R. Stewart, Esq. Colin F. Dougherty, Esq. FAEGRE BAKER DANIELS LLP 2200 Wells Fargo Center 90 South Seventh Street Minneapolis, MN 55402-3901 Telephone: (612) 766-7000 Facsimile: (612) 766-1600 E-mail: Michael.Stewart@FaegreBD.com Colin.Dougherty@FaegreBD.com About C&K Market C&K Market Inc., a 57 year-old grocery store chain, sought bankruptcy protection from creditors with a plan to sell or close some of its stores, on Nov. 19, 2013 (Bankr. D. Ore. Case No. 13-64561). The case is assigned to Judge Frank R. Alley, III. C&K Market scheduled $157,696,921 in total assets and $101,604,234 in total liabilities. The Debtor is represented by Albert N. Kennedy, Esq., Timothy J. Conway, Esq., Michael W. Fletcher, Esq., and Ava L. Schoen, Esq., at Tonkon Torp LLP, in Portland, Oregon. Edward Hostmann has been tapped as chief restructuring officer, and The Food Partners, LLC, serves as the Debtor's financial advisor. Kieckhafer Schiffer & Company LLP serves as advisors and consultants to communicate with lenders, brokers, attorneys and other professionals. Henderson Bennington Moshofsky, P.C., serves as accountants. Watkinson Laird Rubenstein Baldwin & Burgess PC serves as labor counsel. The Debtor hired Great American Group, LLC, to conduct store closing sales. Kurtzman Carson Consultants is the Debtor's noticing agent. An Official Committee of Unsecured Creditors appointed in the Debtor's case has retained Scott L. Hazan, Esq., David M. Posner, Esq., and Jenette A. Barrow-Bosshart, Esq., at Otterbourg P.C. as lead co-counsel, and Tara J. Schleicher, Esq., at Farleigh Wada Witt as local co-counsel; and Protiviti, Inc. as financial consultant. C & K Market on June 30 received a bankruptcy judge's approval for its proposed plan to exit Chapter 11 protection. Judge Frank Alley III of U.S. Bankruptcy Court in Oregon signed an order confirming C&K Market's plan of reorganization, which is based on new financing to pay off a $25 million loan owing to U.S. Bank NA, the company's secured lender. The restructuring plan offers common stock to unsecured creditors with an estimated $60 million in claims. Unsecured creditors individually owed $10,000 or less will be paid 80% in cash. Secured creditors that hold liens on real property will receive seven-year notes at 6% interest. Meanwhile, creditors secured with liens on personal property are to be paid in full over four years, with an interest rate of 6%. CALDERA PHARMACEUTICALS: Incurs $1.2 Million Net Loss in Q2 ----------------------------------------------------------- Caldera Pharmaceuticals, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss applicable to common stock of $1.20 million on $82,662 of sales for the three months ended June 30, 2014, compared to a net loss applicable to common stock of $2.88 million on $82,881 of sales for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income applicable to common stock of $4.06 million on $336,882 of sales compared to a net loss applicable to common stock of $3.68 million on $320,295 of sales for the same period a year ago. As of June 30, 2014, the Company had $5.30 million in total assets, $3.40 million in total liabilities, $133,350 in convertible redeemable preferred stock and $1.76 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/36WAkL About Caldera Based in Cambridge, Massachusetts, Caldera Pharmaceuticals, Inc., is a drug discovery and pharmaceutical services company that is based on a proprietary x-ray fluorescence technology, called XRpro(R). Caldera Pharmaceuticals incurred a net loss applicable to common stock of $5.88 million on $708,273 of sales for the year ended Dec. 31, 2013, as compared with a net loss applicable to common stock of $951,791 on $1.90 million of sales for the year ended Dec. 31, 2012. CANCER GENETICS: Incurs $4.2 Million Net Loss in Second Quarter --------------------------------------------------------------- Cancer Genetics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $4.18 million on $1.51 million of revenue for the three months ended June 30, 2014, compared to a net loss of $9.14 million on $1.83 million of revenue for the same period a year ago. The Company also reported a net loss of $6.67 million on $2.94 million of revenue for the six months ended June 30, 2014, compared to a net loss of $6.78 million on $3.05 million of revenue for the same period during the prior year. As of June 30, 2014, the Company had $49.59 million in total assets, $9.13 million in total liabilities and $40.46 million in total stockholders' equity. As of June 30, 2014, the Company had cash and cash equivalents of $37,417,742. "We believe our cash and cash equivalents are sufficient to satisfy our liquidity requirements at our current level of operations for at least 24 months," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/37QHaj About Cancer Genetics Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve and personalize the diagnosis, prognosis and response to treatment (theranosis) of cancer. Cancer Genetics reported a net loss of $12.37 million in 2013 following a net loss of $6.66 million in 2012. CASPIAN SERVICES: Delays Form 10-Q Filing, Expects $1.4MM Q3 Loss ----------------------------------------------------------------- Caspian Services, Inc., filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the quarter ended June 30, 2014. The Company said the Form 10-Q could not be timely filed because management requires additional time to compile and verify the data required to be included in the report. The report will be filed within five calendar days of the date the original report was due. The Company anticipates that during the three and nine month periods ended June 30, 2014 total revenues will have decreased approximately 13% and 4%, respectively compared to the comparable periods of the prior fiscal year. This decrease is primarily attributable to lower vessel revenues during the third fiscal quarter 2014 and lower geophysical services revenues during the nine-month period ended June 30, 2014. Vessel revenues are expected to be approximately 29% lower in the three months ended June 30, 2014 and flat during the nine months ended June 30, 2014, while geophysical service revenues are expected to be essentially flat during the three months ended June 30, 2014, and approximately 16% lower during the nine months ended June 30, 2014. Marine base revenue is expected to be approximately 113% and 118% higher, respectively, in the three and nine month periods ended June 30, 2014. The Company believes that total costs and operating expenses will have decreased approximately 8% during both the three and nine month periods ended June 30, 2014. The Company anticipates income from operations of approximately $0.7 million during the three months ended June 30, 2014 compared to income from operations of approximately $1.4 million during the three months ended June 30, 2013. During the nine months ended June 30, 2014 the Company anticipates a loss from operations of approximately $0.6 million compared to a loss from operations of approximately $1.8 million during the nine months ended June 30, 2013. The Company expects to realize net losses from continuing operations of approximately $2.0 million and $13.6 million, respectively, for the three and nine month periods ended June 30, 2014 compared to net losses from continuing operations of approximately $0.7 million and $5.8 million, respectively during the three and nine month periods ended June 30, 2013. During the 2013 fiscal year, the Company sold its interest in its majority- owned subsidiary Kazmorgeophysica JSC. As a result, the Company realized losses from discontinued operations during the three and nine month periods ended June 30, 2013 of approximately $2.8 million and $3.4 million, respectively. The Company realized no loss from discontinued operations during the three or nine month periods ended June 30, 2014. During the three and nine month periods ended June 30, 2014, the Company anticipates realizing a net losses attributable to Caspian Services, Inc. (net of non-controlling interests) of approximately $1.4 million and $11.3 million, respectively, compared to net losses attributable to Caspian Services, Inc. of approximately $3.0 million and $8.3 million, respectively during the three and nine month periods ended June 30, 2013. As a result of a 20% devaluation in the Kazakh Tenge by the government of the Republic of Kazakhstan during fiscal 2014, the Company anticipates realizing foreign currency translation adjustments of approximately ($0.2 million) and ($4.8 million), respectively during the three and nine month periods ended June 30, 2014, compared to approximately ($0.5 million) and ($0.3 million) during the three and nine month periods ended June 30, 2013. The Company anticipates realizing comprehensive losses attributable to Caspian Services, Inc. of approximately $1.6 million and $15.6 million, respectively, during the three and nine month periods ended June 30, 2014 compared to losses of $3.7 million and $8.8 million, respectively, during the three and nine month periods ended June 30, 2013. About Caspian Services Headquartered in Salt Lake City, Caspian Services, Inc., was incorporated under the laws of the state of Nevada on July 14, 1998. Since February 2002 the Company has concentrated its business efforts to provide diversified oilfield services to the oil and gas industry in western Kazakhstan and the Caspian Sea, including providing a fleet of vessels, onshore, transition zone and marine seismic data acquisition and processing services and a marine supply and support base in the port of Bautino, in Bautino Bay, Kazakhstan. Caspian Services incurred a net loss of $11.82 million on $33.08 million of total revenues for the year ended Sept. 30, 2013, as compared with a net loss of $15.95 million on $24.74 million of total revenues during the prior fiscal year. Haynie & Company, P.C., in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The independent auditors noted that a Company creditor has indicated that it believes the Company may be in violation of certain covenants of certain substantial financing agreements. The financing agreements have acceleration right features that, in the event of default, allow for the loan and accrued interest to become immediately due and payable. As a result of this uncertainty, the Company has included the note payable and all accrued interest as current liabilities at Sept. 30, 2013. At Sept. 30, 2013, the Company had negative working capital of approximately $66,631,000. Uncertainty as to the outcome of these factors raises substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning To help the Company meet its additional funding obligations to construct the marine base, in 2008 the Company entered into two facility agreements pursuant to which the Company received debt funding of $30,000. In June and July 2011, Mr. Bakhytbek Baiseitov (the "Investor") acquired the two facility agreements. In September 2011 the Company issued the Investor two secured promissory notes, a Secured Non-Negotiable Promissory Note in the principal amount of $10,800 and a Secured Convertible Consolidated Promissory Note in the principal amount of $24,446 in connection with restructuring the facility agreements. During December 2012 the Company, the European Bank for Reconstruction and Development and the Investor outlined the terms of a potential restructuring of the Company's financial obligations to EBRD and the Investor in a non-binding term sheet. Throughout the fiscal year the parties have worked to negotiate definitive agreements pursuant to the terms set out in the Term Sheet. Subsequent to the fiscal year end, negotiations between EBRD, the Investor and the Company to restructure the Company's financial obligations pursuant to the terms of the Term Sheet stalled and have been discontinued. However, the Company has engaged in new discussions with EBRD regarding a possible restructuring of its financial obligations to EBRD. "Should EBRD or the Investor determine to accelerate the Company's repayment obligations to them, the Company currently has insufficient funds to repay its obligations to EBRD or the Investor, individually or collectively, and would be forced to seek other sources of funds to satisfy these obligations. Given the Company's current and near-term anticipated operating results, the difficult credit and equity markets and the Company's current financial condition, the Company believes it would be very difficult to obtain new funding to satisfy these obligations. If the Company is unable to obtain funding to meet these obligations EBRD or the Investor could seek any legal remedies available to them to obtain repayment, including forcing the Company into bankruptcy, or in the case of the EBRD loan, which is collateralized by the assets, including the marine base, and bank accounts of Balykshi and CRE, foreclosure by EBRD on such assets and bank accounts. The Company has also agreed to collateralize the Investor's Notes with non-marine base related assets," according to the Company's 2013 Annual Report. CEETOP INC: Delays Filing of June 30 Quarterly Report ----------------------------------------------------- Ceetop Inc. informed the U.S. Securities and Exchange Commission that it cannot file its June 30, 2014, Form 10-Q within the prescribed time period because management has not completed the process of gathering and analyzing the financial information that will be included in the Company's Form 10-Q. About Ceetop Inc. Oregon-based Ceetop Inc., formerly known as China Ceetop.com, Inc., owned and operated the online retail platform before 2013. Due to excessive competition in online retail, the Company has transformed itself into an integrated supply chain services provider, and focuses on B to B supply chain management and related value-added services among enterprises. Ceetop reported a net loss of $2.88 million in 2013 following a net loss of $1.39 million in 2012. Clement C. W. Chan & Co., in Hong Kong, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company incurred a net loss of $2,886,599 for the year ended December 31, 2013, has accumulated deficit of $8,605,635 at December 31, 2013. These matters are discussed in Note 2 to the consolidated financial statements that raises substantial doubt about the Company's ability to continue as a going concern. CENTURY ARMS: Has $2.2MM Purchase Offer; Aug. 22 Sale Hearing ------------------------------------------------------------- Century Arms Townhomes, LLC, on June 20, 2014 filed a Motion to Approve Sale of Real Property of Century Townhomes, LLC, Free and Clear of All Mortgages, Judgments, Liens, Claims and Encumbrances of 165 Units at public auction sale. The Debtor has received an offer of $2,200,000. Additional information, etc. is available by contacting the offices of Counsel for the Debtor: Michael Kaminski, Esq. BLUMLING & GUSKY, LLP 1200 Koppers Building Pittsburgh, PA 15219 Tel: 412-227-2500 E-mail: mkaminski@blumlinggusky.com Inspection and viewing of the real property to be sold is available by appointment. A hearing will be held on August 22, 2014 at 10:00 a.m. prevailing time, before the Honorable Gregory L. Taddonio in Courtroom "A", 54th Floor, U.S. Steel Tower, 600 Grant Street, Pittsburgh, PA 15219 for the auction on the Motion to Sell, when and where all objections will be heard, when and where the general public is invited, when and where higher and better offers will be accepted. Any Objections to the sale were due July 14, 2014. Terms and conditions announced at the time and place of sale supersede any inconsistent provisions of this Notice. Confirmation of the sale to take place at the above time and place. Century Arms Townhomes LLC, based in Pittsburgh, Pennsylvania, filed for Chapter 11 bankruptcy (Bankr. W.D. Pa. Case No. 14- 22349) on June 9, 2014. Creditors and parties-in-interest include Equity Indexed Managed Fund, LLC; WJA Secure Real Estate Fund, LLC; Century Arms Townhome Association, LLC; City of Clairton; Clairton School District; Allegheny County, Pennsylvania; PA American Water; and Clairton Municipal Authority. According to the case docket, the Chapter 11 Plan and Disclosure Statement are due by Oct. 7, 2014. CHHATRALA EDES: Case Summary & 7 Unsecured Creditors ---------------------------------------------------- Debtor: Chhatrala Edes, LLC 3274 Rosecrans St. San Diego, CA 92110 Case No.: 14-06507 Chapter 11 Petition Date: August 15, 2014 Court: United States Bankruptcy Court Southern District of California (San Diego) Judge: Hon. Louise DeCarl Adler Debtor's Counsel: Jeffrey D. Cawdrey, Esq. GORDON & REES LLP 101 West Broadway, Suite 2000 San Diego, CA 92101 Tel: (619) 696-6700 Fax: (619) 696-7124 Email: jcawdrey@gordonrees.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Hermant Chhatrala, chief executive officer. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/casb14-06507.pdf COLDWATER CREEK: Has Until Oct. 31 to Decide on Leases ------------------------------------------------------ The Hon. Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware extended the time by which Coldwater Creek Inc. and its debtor-affiliates to assume or reject unexpired leases of non-residential real property until Oct. 31, 2014. The Debtor said the extension will provide significant benefit to the estates and creditors without unduly harming landlords. The Debtors assured that they will continue to timely perform all postpetition obligations under the leases as required under Section 365(d)(3) of the Bankruptcy Code. 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. COLLEGE WAY: ECP Joins Bid to Convert Chap. 11 Case to Chapter 7 ---------------------------------------------------------------- ECP College Way, LLC, filed on Aug. 12, 2014, with the Bankruptcy Court a joiner to the U.S. Trustee's motion to convert or dismiss the Chapter 11 case of College Way Commercial Plaza, LLC. ECP College Way, a lender of the Debtor, incorporates in its joinder the reasons set forth in the U.S. Trustee's Motion to Convert. ECP also pointed out that (i) the foreclosure of the Debtor's sole asset has rendered any reorganization impossible, and that (ii) the Debtor's recently filed monthly operating reports evidence that it is administratively insolvent; an thus, the Debtor's case should be converted to one under Chapter 7. As reported in the Troubled Company Reporter on July 31, 2014, Gail Brehm Geiger, Acting U.S. Trustee for the Western District of Washington, sought for the conversion or dismissal of College Way Commercial Plaza, LLC's Chapter 11 case. The U.S. Trustee asserted that the Debtor failed to (i) file monthly financial reports for February, March, April and May 2014, and (ii) pay the U.S. Trustee's quarterly fees, which were due on April 30. She thus contended that the actions of the Debtor constitute "cause" for conversion or dismissal. The U.S. Trustee said she is aware of no "unusual circumstances", which would prevent conversion or dismissal from being in the best interests of creditors. In other news, the Bankruptcy Court, at the Debtor's behest, earlier extended the exclusive period by which the Debtor may file a bankruptcy plan through 15 days after the ruling of the evidentiary hearing for ECP College Way, LLC's Motion for Relief from Stay. No plan has been filed as of presstime. About College Way Commercial Plaza, LLC College Way Commercial Plaza, LLC, filed a Chapter 11 bankruptcy petition (Bankr. W.D. Wash Case No. 13-47724) on Dec. 19, 2013. The petition was signed by Sherwood B Korssjoen as member and manager. The Debtor disclosed $29,160,000 in assets and $21,444,155 in liabilities as of the Chapter 11 filing. Masafumi Iwama, Esq., at Iwama Law Firm, serves as the Debtor's counsel. Judge Brian D Lynch presides over the case. College Way sought bankruptcy protection one day before a scheduled foreclosure auction of its asset. ECP College Way LLC tried to foreclose on the collateral. ECP is the holder of certain indebtedness owed by the Debtor in the original principal amount of $21.1 million. College Way estimates that Lacey Crossroads is valued between $26 million and $29.5 million. COLT DEFENSE: Delayed 2Q Rpt. Filing No Impact on Moody's CFR ------------------------------------------------------------- Moody's Investors Service said that Colt Defense LLC's pending restatement of its 2013 audit and delay in filing its second- quarter 2014 financial statements is a credit-negative event but does not currently impact the company's ratings including its Caa1 corporate family rating, Caa2 senior unsecured notes rating or its SGL-3 speculative grade liquidity rating. If Colt is unable to file its financial statements by the September 13, 2014 extension date or reported operating performance is weaker than expected, the company's ratings and/or outlook could come under pressure. Colt Defense LLC, headquartered in West Hartford, CT, manufactures small arms weapons systems for individual soldiers and law enforcement personnel for the U.S. military, U.S. law enforcement agencies, and foreign militaries. The company also sells rifles, carbines and handguns into the commercial end-market. Revenues for the last twelve months ended March 30, 2014 totaled $264 million. COMMERCIAL VEHICLE GRP: Moody's Affirms B2 Corp. Family Rating -------------------------------------------------------------- Moody's Investors Service affirmed all long-term ratings for Commercial Vehicle Group, Inc. ("CVGI"), including the B2 Corporate Family Rating ("CFR"), and revised the rating outlook to stable from negative. "The outlook revision reflects Moody's expectation that credit metrics will return to levels appropriate for the B2 rating in the near-term," said Ben Nelson, Moody's Assistant Vice President and lead analyst for Commercial Vehicle Group, Inc. Improved conditions in the North American heavy-duty truck and global construction end markets, combined with CVGI's operational restructuring initiatives, has led to a significant improvement in operating performance over the past few quarters that Moody's believes will be sustained. Moody's estimates adjusted financial leverage in the mid 5 times (Debt/EBITDA) for the twelve months ended June 30, 2014, down from almost 9 times at September 30, 2013, and expects further improvement over the next few quarters. Moody's expects interest coverage will improve to the mid 1 times range (EBITA/Interest) and retained cash flow should expand into the low double digit range (RCF/Debt). While Moody's expect funds from operations will exceed maintenance capital spending requirements, free cash flow generation for at least the next two years will depend largely on the company's investment policies. Notably, the company has not clarified investment objectives related to the new "CVG 2020" strategic plan the company expects to announce at its analyst day conference in the early fall. The actions: Issuer: Commercial Vehicle Group, Inc. Corporate Family Rating, Affirmed B2; Probability of Default Rating, Affirmed B2-PD; $250 million Senior Secured Notes due 2019, Affirmed B2 (LGD4); Speculative Grade Liquidity Rating, Affirmed SGL-2; Outlook, Changed to Stable from Negative. Ratings Rationale CVGI's B2 CFR is constrained primarily by high leverage, modest size relative to rated automotive supplier peers, geographic and customer concentration, and exposure to highly cyclical commercial vehicle and construction end markets. The rating acknowledges the company's demonstrated ability to manage its cost structure in challenging times and the flexibility associated with its high cash balances and a covenant-lite financing structure, a notable improvement from previous financing structures that required a series of covenant-related amendments in response to weakening operating performance during 2007-2009. The SGL-2 Speculative Grade Liquidity Rating reflects good liquidity to support operations for at least the next four quarters with available liquidity of over $100 million. The company reported about $70 million of balance sheet cash ($20 million held by international subsidiaries) at June 30, 2014. Moody's anticipates the company will generate sufficient EBITDA to easily cover interest and maintenance capital spending. Moody's does not expect the company to draw down on its $40 million asset- based revolving credit facility in the near-term and does not expect the springing financial maintenance covenant will be triggered in the near-term. The stable outlook reflects Moody's expectation that leverage will fall to below 5.5 times in the near-term and that the company will maintain a good liquidity position. Moody's could downgrade the rating with expectations for leverage sustained above 5.5 times or deterioration in liquidity. Moody's could upgrade the rating with expectations for leverage sustained below 4 times, interest coverage sustained above 2 times (EBITA/Interest), and free cash flow approaching 10% of debt. The principal methodology used in this rating was the Global Automotive Supplier Industry published in May 2013. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Commercial Vehicle Group, Inc. is a provider of customized products for the commercial vehicle market, including the heavy- duty truck, construction, agricultural, specialty and military transportation markets. The company is an amalgamation of several predecessor organizations whose products include cab structures & assembly, seats & seating systems, trim systems & components, wire harnesses, wipers, controls and mirrors. Headquartered in New Albany, Ohio, the company generated $785 million of revenue for the twelve months ended June 30, 2014. COTTONWOOD ESTATES: Wants to Hire Clyde Snow as Co-counsel ---------------------------------------------------------- Cottonwood Estates Development, LLC seeks authorization from the Hon. R. Kimball Mosier of the U.S. Bankruptcy Court for the District of Utah to employ Clyde Snow & Sessions as bankruptcy co- counsel. The Debtor retained Clyde Snow to serve as its bankruptcy co- counsel in connection with the commencement and prosecution of this Chapter 11 case. The Debtor continues to retain Miller Toone, P.C. as co-counsel. James W. Anderson, formerly with the law firm of Miller Toone, P.C., began working at Clyde Snow on July 14, 2014. The services to be provided by Clyde Snow in connection with Miller Toone, P.C. will include: (a) advising the Debtor of its rights, powers and duties as Debtor and debtor in possession; (b) assisting the Debtor in taking necessary actions to protect and preserve the estate of the Debtor, including prosecution of actions on the Debtor's behalf, the defense of actions commenced against the Debtor, negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the estate; (c) assisting in preparing, on behalf of the Debtor, all necessary motions, applications, answers, orders, reports, and papers in connection with the administration of the Debtor's estate; (d) assisting in presenting, on behalf of the Debtor, the Debtor's proposed plan of reorganization and all related transactions and any related revisions, amendments, etc.; and (e) performing all other necessary legal services in connection with the Chapter 11 case. Clyde Snow has not received a retainer. Clyde Snow will seek payment approval from the Court through the customary fee application process. James W. Anderson, of counsel of Clyde Snow, 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. Clyde Snow can be reached at: James W. Anderson, Esq. CLYDE SNOW & SESSIONS One Utah Center, Thirteenth Floor 201 South Main Street Salt Lake City, UT 84111 Tel: (801) 322-2516 Fax: (801) 521-6280 E-mail: jwa@clydesnow.com About Cottonwood Estates Cottonwood Estates Development, LLC's primary asset is a real estate project located in Big Cottonwood Canyon, Salt Lake County, Utah, referred to as the Tavaci Project. The Tavaci Projects consists of 39 single family residence lots which are finished and ready for construction of homes thereon. Four lots were sold before the bankruptcy filing. Cottonwood Estates filed a Chapter 11 bankruptcy petition (Bankr. D. Utah Case No. 13-34298) on Dec. 30, 2013, in Salt Lake City, Utah. The Debtor estimated up to $50 million in both assets and debts. The Debtor has tapped Miller Guymon, PC, in Salt Lake City, as bankruptcy counsel, Parr Brown Gee & Loveless as special counsel for real estate transaction matters, J. Philip Cook as appraiser, and Daines Goodwin as accountant. CRUNCHIES FOOD: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Crunchies Food Company, LLC 733 Lakefield Road, Suite #B Westlake Village, CA 91361-0000 Case No.: 14-11776 Chapter 11 Petition Date: August 15, 2014 Court: United States Bankruptcy Court Central District of California (Santa Barbara) Judge: Hon. Peter Carroll Debtor's Counsel: David L. Neale, Esq. LEVENE NEALE BENDER YOO & BRILL LLP 10250 Constellation Blvd Ste 1700 Los Angeles, CA 90067 Tel: 310-229-1234 Fax: 310-229-1244 Email: dln@lnbrb.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by James P. Lacey, managing member. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Chaucer Foods c/o Evan Smiley $1,009,428 Welland, Golden, Smiley et al. 650 Town Center Drive, Suite 950 Costa, Mesa, CA 92626 Searsport Food $829,234 Jiu Qu Town He Dong District Shandong, China 00027-6034, China Dan Rivero $360,000 13701 Riverside Ave, #500 Sherman Oaks, CA 91423 Bella Food Sales, LLC $347,040 56288 Erickson Dr Mishawaka, IN 46545 World Health Industries $320,712 1485 Livingston Lane Jackson, MS 39213 Anschutz Entertainment Group $276,750 800 W. Olympic Blvd #305 Los Angeles, CA 90015 Landsberg Santa Barbara $245,092 Imperial Valley foods, Inc. $201,525 C.H. Robinson Worldwide Inc. $104,761 Lewis Brisbols Bisgard and Smith LLP $103,435 Sierra Packaging & Converting, LLC $97,583 Dynamic Presence East $76,500 Leadership Capital Partners $70,000 Blue Ocean Innovative Solutions Inc. $64,364 FedEx $55,835 InFocus Specialities $53,184 Van Drunen Farms $51,752 Reicker, Pfau, Pyle & McRoy LLP $50,000 DMH Ingredients $49,416 Koppel, Patrick, Heybi & Philpott $47,097 D.A.B. GROUP: U.S. Trustee Unable to Form Committee --------------------------------------------------- William k. Harrington, the U.S. Trustee for Region 2, said that an official committee under 11 U.S.C. Sec. 1102 has not been appointed in the bankruptcy case of D.A.B. Group LLC. The United States Trustee has attempted to solicit creditors interested in serving on the Unsecured Creditors' Committee from the 20 largest unsecured creditors. After excluding governmental units, secured creditors and insiders, the U.S. Trustee relayed he has been unable to solicit sufficient interest in serving on the Committee, in order to appoint a proper Committee. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. About DAB Group D.A.B. Group LLC, owner of a stalled 16-story Allen Street Hotel project in Orchard Street, New York, sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-12057) in Manhattan on July 14, 2014, to pursue a prompt sale of the property. The case is assigned to Judge Shelley C. Chapman. The property has been in the hands of a receiver since July 18, 2011. Simon J.K. Miller, of Blank Rome LLP, serves as receiver. J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, in New York, serves as counsel to the Debtor. DAB Group said in a court filing that its property is continguous to the commercial property owned by its affiliate, 77-79 Rivington Street Realty LLC (Bankr. S.D.N.Y. Case No. 14-10339). Accordingly, DAB's Chapter 11 case is being filed as a related proceeding. * * * The Debtor is currently required to file its Chapter 11 plan and disclosure statement by Nov. 12, 2014. A meeting of creditors under 11 U.S.C. Sec. 341(a) is slated for Aug. 19, 2014. DANIEL HENDON: Diversified Funding Wins Judgment in Guaranty Suit ----------------------------------------------------------------- Debtor Daniel L. Hendon personally guaranteed a $7.7 million loan made by Diversified Funding Group, LLC, to a limited liability company he controlled, called Rightpath Holdings. That entity defaulted, and the loan was never repaid. DF seeks a determination that the Debtor's obligation under his guarantee is nondischargeable under 11 U.S.C. Sec. 523(a)(2)(A) and (B). In an August 13 Memorandum Decision available at http://is.gd/4f8WKA from Leagle.com, Bankruptcy Judge Eileen W. Hollowell held that DF is entitled to a judgment on one of its Sec. 523(a)(2)(A) claims. "DF has demonstrated by a preponderance of the evidence that Hendon made a fraudulent omission regarding his intent to use the Loan Proceeds for purposes other than those specified in the Loan Agreement, and is therefore entitled to a nondischargeability judgment on its claim under [Sec.] 523(a)(2)(A). DF has not proven that Hendon fraudulently obtained the debt through a materially false personal financial statement or that Hendon fraudulently obtained extensions of the debt," Judge Hollowell said. DF filed the adversary proceeding on October 27, 2011. DF alleged that Hendon incurred the debt through a materially false personal financial statement, promised to use the Loan Proceeds for specific purposes but failed to disclose his true intent to use the proceeds for unrelated and unauthorized purposes, and fraudulently obtained extensions of debt. On July 25, 2013, Hendon filed a motion for summary judgment arguing that DF was not the real party in interest and that only the investors had standing to pursue a nondischargeability action. The merits of that motion were not decided. Instead, DF amended the complaint to add the Investors as plaintiffs. On June 25, 26, 27 and July 9, 2014, trial was held. The matter was taken under advisement. The case is, DIVERSIFIED FUNDING GROUP, LLC, an Arizona limited liability company, et al, Plaintiffs, v. DANIEL L. HENDON, Defendant, Adv. Proc. No. 2:11-ap-01972-EWH (Bankr. D. Ariz.). DF is represented by: John R. Clemency, Esq. Michael R. Ross, Esq. GALLAGHER & KENNEDY, P.A. 2575 East Camelback Road Phoenix, AZ, 85016 Tel: 602-530-8000 Fax: 602-530-8500 E-mail: john.clemency@gknet.com michael.ross@gknet.com Daniel L. Hendon sought chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 11-21164) on July 25, 2011. Hendon operated more than 20 car washes in the greater Phoenix area prior to the bankruptcy filing. Most of the Car Washes were owned by separate LLCs controlled by Hendon. Hendon also owned a number of real properties, including property in Glendale, Arizona, which he hoped to develop in conjunction with that city's plans to build a baseball stadium. Michael W. Carmel, Esq., at Michael W. Carmel, Ltd., represents the Debtor as counsel. DETROIT, MI: $1.45 Billion Pension Debt Trial Set for Next June --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that U.S. Bankruptcy Judge Steven Rhodes in Michigan will commence a trial in June next year in the lawsuit over whether the city of Detroit can escape liability for $1.45 billion in debt incurred in 2005 and 2006 to fund municipal pensions. According to the report, U.S. Bankruptcy Judge Steven Rhodes in Detroit set June 15 to begin the trial to decide whether the city's obligations on the pension debt are void because the loan was structured to evade state restriction on how much debt the city could issue. In other news, Chris Christoff, writing for Bloomberg News, reported that Detroit plans to sell about $975 million in bonds for retirement costs and some creditor settlements as part of its bankruptcy restructuring plan awaiting approval by a federal judge. According to the report, the Detroit City Council approved four issues, including $632 million of tax-limited general obligations that would pay 4 percent interest for the first 20 years and 6 percent for another 10 years. The $632 million in bonds would finance $450 million for retiree health care through a voluntary employee beneficiary association, agreed to by retirees, while another $34 million would pay claims by the city's Downtown Development Authority, the report related. The lawsuit is City of Detroit, Michigan v. General Retirement System Corp. (In re City of Detroit, Michigan), 14-04112, U.S. Bankruptcy Court, Eastern District of Michigan (Detroit). About City of Detroit, Michigan The City of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The City's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. The Hon. Steven Rhodes oversees the bankruptcy case. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. A nine-member official committee of retired workers was appointed in the case. The Retirees' Committee is represented by Dentons US LLP. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. DYNASIL CORP: Posts $74,000 Net Income in Third Quarter ------------------------------------------------------- Dynasil Corporation of America filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to common stockholders of $74,167 on $10.64 million of net revenue for the three months ended June 30, 2014, as compared with a net loss attributable to common stockholders of $366,360 on $11.32 million of net revenue for the same period in 2013. For the nine months ended June 30, 2014, the Company reported net income attributable to common stockholders of $1.80 million on $31.75 million of net revenue as compared with a net loss attributable to common stockholders of $7.98 million on $32.36 million of net revenue for the same period last year. As of June 30, 2014, the Company had $26.47 million in total assets, $12.20 million in total liabilities and $14.26 million in total stockholders' equity. Cash as of June 30, 2014, was $3.1 million or approximately $700,000 more than the cash of $2.4 million at Sept. 30, 2013. Based on the collateral calculation as of June 30, 2014, the Company had $ 3.6 million of availability under the line of credit under which it has borrowed of $2.4 million. Management believes that the cash and availability under the line of credit discussed above are adequate to meet the Company's current liquidity requirements. A full-text copy of the Form 10-Q is available for free at: http://is.gd/iSAm5h About Dynasil Watertown, Mass.-based Dynasil Corporation of America (NASDAQ: DYSL) -- http://www.dynasil.com/-- develops and manufactures detection and analysis technology, precision instruments and optical components for the homeland security, medical and industrial markets. The Company incurred a net loss of $8.72 million for the year ended Sept. 30, 2013, as compared with a net loss of $4.30 million for the year ended Sept. 30, 2012. Going Concern/Bankruptcy Warning McGladrey LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The independent auditors noted that the Company is in default with the financial covenants set forth in the terms of its outstanding loan agreements (and may enter into a forbearance arrangement with its lenders) and has sustained substantial losses from operations for the years ended Sept. 30, 2013 and 2012. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. "If our lenders were to accelerate our debt payments, our assets may not be sufficient to fully repay the debt and we may not be able to obtain capital from other sources at favorable terms or at all. If additional funding is required, this funding may not be available on favorable terms, if at all, or without potentially very substantial dilution to our stockholders. If we do not raise the necessary funds, we may need to curtail or cease our operations, sell certain assets and/or file for bankruptcy, which would have a material adverse effect on our financial condition and results of operations," the Company said in its annual report for the year ended Sept. 30, 2013. DYNCORP INT'L: Moody's Lowers Corp. Family Rating to 'B3' --------------------------------------------------------- Moody's Investors Service has lowered ratings of DynCorp International Inc. ("DI"), including the Corporate Family Rating to B3 from B2, and concurrently affirmed the Speculative Grade Liquidity Rating of SGL-3. The rating outlook is Stable. The downgrade follows continuation of backlog declines across the second quarter of 2014, continued low operating margin at the company's DynAviation segment (comprised 51% of Q2 revenues) and DI's need for a permanent CEO following the sudden departure of its recently hired one. Despite a presently good level of free cash flow generation and term loan prepayment, cash flow will significantly lessen without earnings growth. EBITDA/interest over the first half of 2014, excluding goodwill impairment charges and income from equity method investees, would have been only 1.2x. Ratings: Corporate Family, to B3 from B2 Probability of Default, to B3-PD from B2-PD $181 million first lien revolver due 2016, to Ba3, LGD2, from Ba2, LGD2 $217 million first lien term loan due 2016, to Ba3, LGD2, from Ba2, LGD2 $455 million senior unsecured notes due 2017, to Caa1, LGD5, from B3, LGD5 Speculative Grade Liquidity, affirmed at SGL-3 Rating Outlook: To Stable from Negative Ratings Rationale The B3 CFR recognizes the substantial revenue, backlog, and operating margin declines over the first half of 2014 which lessen the cash flow prospect but also acknowledges DI's good cash balance, its contracting scale, credentials and deep bid pipeline. In the first half of 2014 revenues declined by a third year-over- year and total backlog has fallen materially as well. DI's $60 million of term loan prepayment in the first half of 2014 limited the rise in debt/EBITDA to 5.9x from 5.2x (Moody's adjusted basis), the ratio will likely climb to the low 6x range by year- end despite $30 million additional term loan prepayment planned. Beyond 2014, without improved earnings, free cash flow generation and debt reduction capacity will fall off since the release of working capital from business contraction will lessen, and likelihood of rising leverage will then grow. While the company's Afghanistan-based work is, as expected, declining with US troop levels in-theatre stepping-down, credit metrics face added pressure from unexpected revenue softness and low operating margin at the DynAviation segment. The cash balance provides financial flexibility to undertake cost and other operational initiatives that may stabilize DynAviation while the bid pipeline could provide revenue traction. The rating outlook is Stable as the company manages its cash prudently, will likely remain focused on debt reduction, and potential for a better backlog trend exists due to the bid pipeline. DI's cost reductions over the first half of 2014 and additional ones planned over the balance of the year should favor its bidding competitiveness. Although much of the benefit from cost reduction directly accrues to the customer rather than DI based on the company's many cost-based pricing vehicles, some margin expansion should still follow. The Speculative Grade Liquidity Rating of SGL-3 denotes adequate liquidity supported largely by its cash position. At June 30th DI held $153 million of unrestricted cash. Also supporting the liquidity profile is low capital intensity of the services business model as it favors (albeit, not robust) near-term cash flow generation prospects and the company has no near-term scheduled debt maturities. That said, a complicating factor for the SGL rating is the likely need for amended financial ratio covenant terms under the bank credit facility by year-end. That amendment effort, planned for this quarter, could be helped by the degree to which the term loan has been reduced since its inception. Beyond letters of credit utilization, DI is unlikely to have to rely on the facility's revolver near-term. The rating would be downgraded with EBITDA to interest at or below mid-1x, debt/EBITDA expected at the high 7x range, low annual FCF (less than $10 million), or with weak liquidity. Liquidity will weaken if progress toward obtaining the credit facility covenant test amendment comes in doubt. Upward rating momentum would depend on higher backlog and expectation of EBITDA/interest approaching 3x, debt/EBITDA below 6x, and FCF/debt in the mid single digit percentage range. The principal methodology used in this rating was Global Aerospace and Defense Industry published in April 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non- Financial Companies in the U.S., Canada and EMEA published in June 2009. DynCorp International Inc., headquartered in McLean, VA, provides mission-critical support services outsourced by U.S. military, non-military U.S. governmental agencies and foreign governments. The company is an operating subsidiary of Delta Tucker Holdings, Inc., which is majority-owned by affiliates of Cerberus Capital Management, LP. Revenues for the twelve months ended June 27, 2014 were approximately $2.7 billion. ENERGY FUTURE: Blasts Bid For 2nd Unsecured Creditors Committee --------------------------------------------------------------- Law360 reported that Energy Future Holdings Corp. blasted a request to form a second creditors committee in its massive bankruptcy case, arguing that unsecured interests are already adequately represented and that it hopes to shortly secure a restructuring deal that could "significantly increase" unsecured recoveries. According to the report, in a motion before the Delaware bankruptcy court, EFH contended that unsecured creditors would get "minimal, if any benefits" from the formation of another creditors committee, not enough to justify the substantial cost such a fiduciary body would reap on the estate. 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. ENERGY FUTURE: Extends Bar Date For Asbestos Claims --------------------------------------------------- Law360 reported that Energy Future Holdings Corp. said that it would extend its proposed claims bar date by 30 days, responding to criticism from five personal injury law firms that argued the deadline would strip asbestos claimants of their due process rights, but the power giant would not eliminate the cutoff altogether. According to the report, in a motion before the Delaware bankruptcy court, EFH also said it would modify its notice procedures to include more information about asbestos- related claims and publish a specific notice regarding the substance to address concerns. 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. EVERGREEN COUNTRY CLUB: Lender to Hold Foreclosure Sale Aug. 25 --------------------------------------------------------------- L&L Resorts, LLC, as lender, will sell, lease or license, as applicable, all of the property pledged to the Lender as collateral for loans made to Evergreen Country Club, Inc., including, without limitation, all inventory, accounts, equipment and general intangibles. The Property will be sold to the highest qualified bidder, in public, as follows: Date: Monday, August 25, 2014 Time: Beginning at 11:00 a.m. Place: At the front of the Prince William County Courthouse located at 9311 Lee Avenue, Manassas, Virginia L&L Resorts, LLC is represented by James R. Schroll, Esq., as counsel. EVERGREEN COUNTRY CLUB: Berkeley Drive Lots to Be Sold Aug. 25 -------------------------------------------------------------- Jennifer O. Schiffer and Joseph P. Corish -- as Substitute Trustees, replacing F. Kevin Reynolds and Carl E. Dodson, Trustees, under a Credit Line Deed of Trust and Security Agreement dated March 30, 2005 -- will sell at public auction these properties of Evergreen Country Club, Inc., located at: 15900 Berkeley Drive, 16051 Berkeley Drive, 3651 Delashmutt Drive, and 3899 Mount Atlas Lane, Haymarket, Virginia The sale will exclude a 16,629 square foot parcel to be retained by Evergreen Farm Development Corporation. The Properties will be sold to the highest qualified bidder, in public, on Monday, August 25, 2014, beginning at 11:00 a.m., at the front of the Prince William County Courthouse located at 9311 Lee Avenue, Manassas, Virginia. The Purchaser must be in cash. To bid on the Property, a bidder's deposit of $50,000 must be delivered by each bidder other than the noteholder to the Substitute Trustees prior to the commencement of the sale. The deposit shall be by certified or cashier's check drawn on a financial institution acceptable to the Substitute Trustees and the Noteholder. The deposit, without interest, will be applied to the purchase price at settlement or returned to the unsuccessful bidders, as applicable. The balance of the purchase price will be due by certified check or immediately available funds at settlement. Settlement in full shall be made within 21 days from the date of the foreclosure sale, time being of the essence, and shall occur in the offices of the Substitute Trustees or such other place as mutually agreed upon. Written one-price bids may be received by the Substitute Trustees from the Noteholder or any other person for entry by announcement by the Substitute Trustees at the sale. The Property will be offered for sale to the highest bidder, subject however to the Substitute Trustees' right to reject any bid that the Substitute Trustees deem inadequate and/or unacceptable. Pursuant to a separate Notice of Disposition of Collateral, the Trustee, at the request of the noteholder, will be selling at public auction certain personal property of Evergreen Country Club, Inc. at the same date and time. In the event the Substitute Trustees deem it best for any reason at the time of sale to postpone, suspend, or continue the sale from time to time, they may do so in accordance with the terms of the Deed of Trust and/or applicable law, and thereafter may sell the Property as therein provided. In the event of default, the Property may be sold at the expense (which expense shall include a trustee's fee and costs of sale) of the defaulting purchaser, and the defaulting purchaser shall be liable for any amount by which the ultimate sale price for the Property is less than the defaulting purchaser's bid. In addition, the deposit shall be forfeited and applied to the costs of the sale and to the secured indebtedness, subject however, to any agreement between the Noteholder and the Substitute Trustees with respect to the Substitute Trustees' commission. After any default and forfeiture of deposit, such Property may, at the discretion of the Substitute Trustees, be conveyed to the next highest bidder on such Property whose bid was acceptable to the Substitute Trustees. Should the Substitute Trustees be unable, for any reason, in their reasonable discretion, to convey marketable title, the successful bidder's sole remedy in law or equity shall be the return of his deposit. Upon return of the deposit, the sale shall be void and of no effect. For further information, contact: Lisa A. Antonelli BEAN, KINNEY & KORMAN, P.C. 2300 Wilson Boulevard, 7th Floor Arlington, VA 22201 Tel: 703-525-4000 E-mail lantonelli@beankinney.com EXIDE TECHNOLOGIES: UST Not Convinced on Equity Panel Appointment ----------------------------------------------------------------- Roberta A. DeAngelis, the United States Trustee for Region 3, filed responses to the motions of Alfred M. Shams and Landon Romano seeking the appointment of an equity committee. The July 3, 2014 edition of The Troubled Company Reporter related that Alfred M. Shams and Landon Romano of Steward LLC filed separate letters to the Bankruptcy Court, seeking the appointment of an equity committee. Both parties said they worked together in the Exide-related matters. They both insisted that value exists in equity. Mr. Romano said analysis performed by the outside restructuring firm suggests there could be as much as $600 million in value at the moment. In court papers, the U.S. Trustee argued that the Movants have not offerd admissible evidence to support that there is as much as $600 million of equity value in the Debtor. The Movants, the U.S. Trustee said, appear to rely in part on the analysis of a financial advisor that has not been retained by any party-in-interest. "It is not enough for the Movants to state their conclusion that the Debtor has positive equity value; they must produce evidence demonstrating a substantial likelihood of a meaningful distribution to equity holders after payment in full of all prepetition and postpetition creditors. Absent the requisite evidentiary showing, the estate should not be burdened with the substantial cost of an equity committee," the U.S. Trustee contended. The U.S. Trustee added that even if the Movants were able to demonstrate a substantial likelihood of a meaningful distribution to equity security holders, they must also demonstrate that the interests of equity holders cannot be adequately represented without an official committee. The Movants have the initial burden of developing a factual record to demonstrate that the interests of equity holders are not adequately represented, but they have not met that burden, the U.S. Trustee said. "The interests of shareholders are already represented by the Debtor's board of directors and management, who have a fiduciary obligation to maximize value of the estate for the benefit of both creditors and shareholders," the U.S. Trustee pointed out. "The Movants have not shown that the interests of the board of directors and of management are not aligned with the interests of shareholders." The U.S. Trustee thus asks the Court to deny the Motions for an Equity Committee Appointment. 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. * * * 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. F&H ACQUISITION: Has Exclusivity in Plan Filing Thru Oct. 13 ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware granted F&H Acquisition Corp.'s second request for an extension of its exclusive period to file a Chapter 11 plan through Oct. 13, 2014 and the corresponding deadline to solicit acceptances for that plan through Dec. 10, 2014. About F & H Acquisition Corp. Wichita, Kansas-based F & H Acquisition Corp., et al., owners of the Fox & Hound, Champps, and Bailey's Sports Grille casual dining restaurants, filed a Chapter 11 petition (Bankr. D. Del. Lead Case No. 13-13220) on Dec. 16, 2013, to quickly sell their assets. As of the bankruptcy filing, the Debtors have 101 restaurants located in 27 states and 6,000 employees. Sales decreased by approximately 9 percent over the past two years. The Debtors also experienced significant inflation in commodity prices, energy prices and labor costs. F&H estimated assets in excess of $100 million. According to a court filing, outstanding debt obligations total $119 million, including $68.4 million owing on a first-lien loan with General Electric Capital Corp. as agent. The $11.2 million second-lien obligation has Cerberus Business Finance LLC as agent. Unsecured trade suppliers and landlords are owed $11.2 million. F & H Acquisition Corp., disclosed $122,115,200 in assets and $122,579,631 in liabilities as of the Chapter 11 filing. The senior lenders are to provide $9.6 million in financing for the bankruptcy, with $3.5 million on an interim basis. The parent holding company, F&H Acquisition Corp., is based in Wichita, Kansas. The Debtors are represented by Robert S. Brady, Esq., Robert F. Poppiti, Jr., Esq., and Rodney Square, Esq., at Young, Conaway, Stargatt & Taylor, LLP of Wilmington, DE; and Adam H. Friedman, Esq., Jordana L. Nadritch, Esq., and Jonathan T. Koevary, Esq. at Olshan Frome Wolosky, LLP of New York, NY. Imperial Capital LLC as financial advisor; and Epiq Bankruptcy Solutions as claims and noticing agent. The U.S. Trustee appointed seven members to an official committee of unsecured creditors. The Official Committee of Unsecured Creditors is represented by Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington; and Jeffrey N. Pomerantz, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Los Angeles, California. FALCON STEEL: Hires Forshey & Prostok as Attorneys -------------------------------------------------- Falcon Steel Company and New Falcon Steel, LLC ask for permission from the Hon. D. Michael Lynn of the U.S. Bankruptcy Court for the Northern District of Texas to employ Forshey & Prostok, LLP as attorneys for the Debtors as of the June 29, 2014 petition date. The Debtors require Forshey & Prostok to: (a) advise the Debtors of their rights, powers and duties as debtors and debtors in possession continuing to manage their affairs and properties; (b) advise the Debtors concerning, and assisting in the negotiation and documentation of, agreements, debt restructurings, and related transactions; (c) review the nature and validity of liens asserted against the property of the Debtors and advising the Debtors concerning the enforceability of such liens; (d) advise the Debtors concerning the actions that they might take to collect and to recover property for the benefit of the Debtors' estate; (e) prepare on behalf of the Debtors all necessary and appropriate applications, motions, pleadings, proposed orders, notices, schedules and other documents, and reviewing all financial and other reports to be filed in this chapter 11 case; (f) advise the Debtors concerning, and preparing responses to applications, motions, pleadings, notices and other papers that may be filed and served in this chapter 11 case; (g) counsel the Debtors in connection with the formulation, negotiation and promulgation of a plan of reorganization and related documents; and (h) perform all other legal services for and on behalf of the Debtors that may be necessary or appropriate in the administration of these chapter 11 cases or in the management of the property of the Debtors' bankruptcy estates, including advising and assisting the Debtors with respect to debt restructurings, stock or asset dispositions, and general corporate, securities, tax, finance, real estate and litigation matters. Forshey & Prostok will be paid at these hourly rates: Partners $575 Associates $275-$425 Paralegals $150-$195 Forshey & Prostok will also be reimbursed for reasonable out-of- pocket expenses incurred. Prior to the petition date, the Debtors became obligated to Forshey & Prostok for legal services rendered and expenses advanced in the aggregate amount of $31,420. Prior to and within 90 days of the petition date, Forshey & Prostok received two retainers: on in the amount of $10,000 on April 25, 2014, and one in the amount of $50,000 on June 27, 2014. The current unused balance of the prepetition retainers paid to Forshey & Prostok is $28,580. Jeff P. Prostok, partner of Forshey & Prostok, 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. Forshey & Prostok can be reached at: Jeff P. Prostok, Esq. FORSHEY & PROSTOK, LLP 777 Main Street, Suite 1290 Fort Worth, TX 76102 Tel: (817) 877-8855 Fax: (817) 877-4151 E-mail: jprostok@forsheyprostok.com About Falcon Steel Company Falcon Steel Company and New Falcon Steel, LLC, sought Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division (Case Nos. 14-42585 and 14-42586) on June 29, 2014. Falcon Steel claims to be the only American-owned company that builds steel lattice towers for high electrical transmission lines. The Debtors are seeking joint administration of their Chapter 11 cases (Lead Case No. 14-42585). Falcon Steel was formed in 1963 and has operated continuously since that time as a manufacturer engaged in fabricating and galvanizing structural steel for customers in the United States. New Falcon, a subsidiary, suspended operations in June 2013 and is being held for sale. Falcon has three manufacturing plants in the DFW area in Texas, with one facility in Haltom City, another in Euless, and the third facility in Kaufman, Texas. The company's corporate headquarters is located at its Haltom City plant. It currently employs approximately 255 employees. Falcon Steel estimated assets and debt of $10 million to $50 million. The Debtors have tapped Forshey & Prostok, LLP, as counsel. Bankruptcy Judge D. Michael Lynn, in an amended order, directed the joint administration of the case of Falcon Steel Company and New Falcon Steel, LLC FALCON STEEL: Creditors' Panel Taps McCathern as Counsel -------------------------------------------------------- The Official Committee of Unsecured Creditors of Falcon Steel Company and New Falcon Steel, LLC ask for permission from the Hon. D. Michael Lynn of the U.S. Bankruptcy Court for the Northern District of Texas to retain McCathern, PLLC as counsel of the Committee. The professional services McCathern will render to the Committee, as counsel, include, among other things: (a) assisting, advising, and representing the Committee with respect to the administration of the Bankruptcy Case; (b) providing all necessary legal advice with respect to the Committee's powers and duties; (c) assisting the Committee in working to maximize the value of the Debtors' assets for the benefit of the Debtors' unsecured creditors; (d) assisting the Committee with respect to evaluating and negotiating a plan of reorganization and, if necessary, either challenging or supporting as appropriate, the confirmation of a plan and the approval of an associated disclosure statement; (e) conducting an investigation, as the Committee deems appropriate, concerning, among other things, the assets, liabilities, financial condition, and operating issues of the Debtors; (f) commencing and prosecuting any and all necessary and appropriate actions and proceedings on behalf of the Committee in the Bankruptcy Case; (g) preparing, on behalf of the Committee, necessary applications, pleadings, motions, answers, orders, reports, and other legal papers; (h) communicating with the Committee's constituents and others as the Committee may consider necessary or desirable in furtherance of its responsibilities; (i) appearing in Court and representing the interests of the Committee; and (j) performing all other legal services for the Committee that are appropriate, necessary, and proper in connection with the Bankruptcy Case. McCathern's hourly rates for the attorneys and paralegals who will most likely be working on this Bankruptcy Case are: Jonathan L. Howell, Counsel $290 Blair Greene, Associate $250 Katrina Lucas, Paralegal $150 McCathern will also be reimbursed for reasonable out-of-pocket expenses incurred. Jonathan L. Howell, of counsel of McCathern, 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. McCathern can be reached at: Jonathan L. Howell, Esq. MCCATHERN, PLLC Regency Plaza 3710 Rawlins, Suite 1600 Dallas, TX 75219 Tel: (214) 273-6409 Fax: (214) 723-5966 E-mail: jhowell@mccarthernlaw.com About Falcon Steel Company Falcon Steel Company and New Falcon Steel, LLC, sought Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division (Case Nos. 14-42585 and 14-42586) on June 29, 2014. Falcon Steel claims to be the only American-owned company that builds steel lattice towers for high electrical transmission lines. The Debtors are seeking joint administration of their Chapter 11 cases (Lead Case No. 14-42585). Falcon Steel was formed in 1963 and has operated continuously since that time as a manufacturer engaged in fabricating and galvanizing structural steel for customers in the United States. New Falcon, a subsidiary, suspended operations in June 2013 and is being held for sale. Falcon has three manufacturing plants in the DFW area in Texas, with one facility in Haltom City, another in Euless, and the third facility in Kaufman, Texas. The company's corporate headquarters is located at its Haltom City plant. It currently employs approximately 255 employees. Falcon Steel estimated assets and debt of $10 million to $50 million. The Debtors have tapped Forshey & Prostok, LLP, as counsel. Bankruptcy Judge D. Michael Lynn, in an amended order, directed the joint administration of the case of Falcon Steel Company and New Falcon Steel, LLC FIELD TIME SPORTS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Field Time Sports & Guns Inc. 14542 Beach Boulevard, Suite A Westminster, CA 92683 Case No.: 14-15029 Chapter 11 Petition Date: August 15, 2014 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Judge: Hon. Scott C Clarkson Debtor's Counsel: Todd C. Ringstad, Esq. RINGSTAD & SANDERS LLP 2030 Main St #1600 Irvine, CA 92614 Tel: 949-851-7450 Email: becky@ringstadlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Myrna Wickes, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb14-15029.pdf FONTAINEBLEAU LAS VEGAS: BofA Takes Note Dispute To Fed. Court -------------------------------------------------------------- Law360 reported that Bank of America NA removed to New York federal court U.S. Bank NA's suit accusing BofA of prematurely paying out $271.3 million on a series of mortgage notes related to the failed $2.9 billion Fontainebleau Las Vegas casino and resort project. According to the report, BofA said it was removing the suit from New York's Supreme Court after having been served a summons in the dispute in late July and subsequently filing a demand for a complaint in state court. About Fontainebleau Las Vegas Fontainebleau Las Vegas -- http://www.fontainebleau.com/-- was planned as a hotel-casino on property along the Las Vegas Strip. Its developer, Fontainebleau Las Vegas Holdings LLC and affiliates, filed for Chapter 11 protection (Bankr. S.D. Fla. Lead Case No. 09-21481) on June 9, 2009. Scott L Baena, Esq., at BilzinSumbergBaena Price & Axelrod LLP, represented the Debtors in their restructuring effort. Kurtzman Carson Consulting LLC served as the Debtors' claims agent. Attorneys at Genovese Joblove& Battista, P.A., and Fox Rothschild, LLP, represented the Official Committee of Unsecured Creditors. Fontainebleau Las Vegas LLC estimated more than $1 billion in assets and debts, while each of Fontainebleau Las Vegas Capital Corp. and Fontainebleau Las Vegas Holdings LLC estimated less than $50,000 in assets. In February 2010, Icahn Enterprises L.P. acquired Fontainebleau for roughly $150 million. The bankruptcy case was subsequently converted to Chapter 7. Soneet R. Kapila has been named the trustee for the Chapter 7 case of Fontainebleau Las Vegas. GENERAL MOTORS: Judge Warms To Discovery In Ignition Switch MDL --------------------------------------------------------------- Law360 reported that a New York federal judge indicated he would likely allow limited discovery to proceed in multidistrict litigation over deadly General Motors LLC ignition switches, saying it would streamline and advance the litigation without interfering with the proceedings before the bankruptcy court. According to the report, U.S. District Judge Jesse M. Furman said in an order detailing his preliminary views that GM should be required to produce all relevant non-privileged materials that have been given to the federal government and an investigative team led by attorney Anton Valukas, who was retained by GM to conduct an investigation into the February recall of 2.6 million vehicles. About General Motors With its global headquarters in Detroit, Michigan, General Motors -- http://www.gm.com/-- is one of the world's largest automakers, traces its roots back to 1908. General Motors Co. was formed to acquire the operations of General Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The U.S. government provided financing. The deal was closed July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM -- General Motors Corporation -- 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. The Debtors tapped Weil, Gotshal & Manges LLP Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel; and Morgan Stanley, Evercore Partners and the Blackstone Group LLP as financial advisor. 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 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. GENUTEC BUSINESSS: Taps Shulman Hodges as Collection Counsel ------------------------------------------------------------ Genutec Businesss Solutions, Inc., seeks to employ Shulman Hodges & Bastian LLP as its special collection counsel in relation to a judgment entered by the Orange County Superior Court on July 18, 2013 against Lee Danna and Henrik Smith Duyzentkunst. The lawsuit is styled as Gentuect v. Taus, et al., Orange County Superior Court Case No. 07CC07918. The Firm will be employed on a contingency fee basis plus costs and has requested an advance for costs of $7,500. As special collection counsel, the Firm will be required to conduct investigations and prepare the necessary documents and pleadings to assist the Debtor with collecting on the Judgment, including garnishment proceedings, levy, turnover proceedings or any other legal or judgment enforcement proceeding or procedure necessary. The Firm attests that it is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code. About Genutec Businesss Solutions Genutec Businesss Solutions, Inc., filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-13115) in Santa Ana, Georgia, on May 16, 2014. David Montoya signed the petition as director. The Debtor disclosed assets of $12,851,544 and liabilities of $11,529,199. Judge Erithe A. Smith presides over the case. Michael R Totaro, Esq., at Totaro & Shanahan, in Pacific Palisades, California, acts as bankruptcy counsel. The U.S. Trustee has appointed a three-member panel to serve as of the official committee of unsecured creditors in the Debtor's case. The panel is composed of Merrill Communications, LLC (c/o Leif Simpson); Lawnae Hunter (Jones Day, Paul Rafferty); and Michael Taus. * * * The Debtor currently has until October 1, 2014 to file a Chapter 11 plan and disclosure statement. Sept. 9, 2014 has been set as the general claims bar date. GGW BRANDS: Judge Recommends Jail for Girls Gone Wild Founder ------------------------------------------------------------- Katy Stech, writing for The Wall Street Journal, reported that U.S. Bankruptcy Judge Sandra Klein in Los Angeles has recommended jail time for Girls Gone Wild founder Joe Francis after he failed to turn over luxury cars owned by Girls Gone Wild to the lawyers who are handling the bankruptcy of the porn business. According to the Journal, citing court papers, Mr. Francis said he can't return the vehicles, a 2007 Cadillac Escalade and a 2012 Bentley Flying Spur, because a strip-club owner in Mexico -- angry that several Girls Gone Wild promotions fell through -- took them. About GGW Brands Santa Monica, California-based GGW Brands, LLC, the company behind the "Gils Gone Wild" video, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 13-15130) on Feb. 27, 2013. Judge Sandra R. Klein oversees the case. The company is represented by the Law Offices of Robert M. Yaspan. The company disclosed $0 to $50,000 in estimated assets and $10 million to $50 million in estimated liabilities in its petition. Affiliates GGW Events LLC, GGW Direct LLC and GGW Magazine LLC also sought Chapter 11 protection. GGW Marketing, LLC, another affiliate, filed a voluntary Chapter 11 petition on May 22, 2013, before the Bankruptcy Court for the Central District of California (Los Angeles). The case is assigned Case No. 13-23452. Martin R. Barash, Esq., and Matthew Heyn, Esq., at Klee, Tuchin, Bogdanoff and Stern, LLP, in Los Angeles, California, represent GGW Marketing. In April 2013, R. Todd Neilson, an ex-FBI agent, was appointed as Chapter 11 Trustee to take over the companies. Mr. Neilson has investigated failed solar-power company Solyndra and was involved in the Mike Tyson and Death Row Records bankruptcy cases. In April 2014, the Chapter 11 Trustee sold the "Girls Gone Wild" video franchise and its assets for $1.83 million. An auction set earlier that month was canceled because there were no bids to compete with the so-called stalking horse, who isn't affiliated with founder Joe Francis. GRAND CENTREVILLE: Wells Fargo Withdraws Motion to Dismiss Case --------------------------------------------------------------- Wells Fargo Bank, N.A., as trustee for the registered holders of JP Morgan Chase Commercial Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2005-CIBC13, withdrew its motion to dismiss the Chapter 11 case of Grand Centreville, LLC. The continued hearing on the Motion is also dismissed. As reported in the Troubled Company Reporter on April 15, 2014, Wells Fargo Bank, N.A. filed papers in 2014 seeking dismissal of the Debtor's case, arguing that the bankruptcy case was filed in bad faith and that the receiver has no standing to file the bankruptcy petition. About Grand Centreville Grand Centreville, LLC, filed a Chapter 11 petition (Bankr. E.D. Va. Case No. 13-13590) on Aug. 2, 2013. The petition was signed by Michael L. Schuett, principal of Black Creek Consulting Ltd., the receiver. Judge Robert G. Mayer presides over the case. Paula S. Beran, Esq., and Lynn L. Tavenner, Esq., at Tavenner & Beran, PLC, in Richmond, Va., represent the Debtor as counsel. The Debtor owns the real property located at 13810-13860 Braddock Road, Centreville, Virginia. In its schedules, the Debtor disclosed $40,550,046 in assets and $26,247,602 in liabilities as of the petition date. Grand Centreville's chapter 11 proceeding is related to the Chapter 11 proceedings of Min S. Kang and Man S. Kang (Bankr. E.D. Va. Case No. 10-18839-RGM) filed on Oct. 19, 2010. Prior to March 16, 2009, the Kangs indirectly owned 100% of the economic interests in the Debtor and, through their 100% ownership of Grand Formation, controlled all management rights with respect to Grand Centreville. On Jan. 7, 2013, the Court entered an Order directing the United States Trustee to appoint a chapter 11 trustee for the Kangs' case. On the same date, the U.S. Trustee appointed Raymond A. Yancey as chapter 11 trustee for the Kangs' case, which appointment the Court approved on Jan. 16, 2013. Wells Fargo Bank N.A., the secured creditor, is represented by William C. Crenshaw, Esq., and Mona M. Murphy, Esq., at Akerman LLP. Special Counsel to Raymond A. Yancey, Chapter 11 11 Trustee in the Kangs' Bankruptcy Case is Bradford F. Englander, Esq., at Whiteford Taylor & Preston, L.L.P. Counsel for Yeon K. Han is Timothy J. McGary, Esq. Counsel for James Y. Sohn is James R. Schroll, Esq., at Bean, Kinney & Korman, P.C. GREEN MOUNTAIN: Has Interim Authority to Use Cash Collateral ------------------------------------------------------------ Sherri Toub, substituting for Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Green Mountain Management LLC, the largest municipal solid waste landfill in the southeastern U.S. based on permitted air-space, has obtained interim authority to use the cash collateral securing its prepetition indebtedness. According to the report, the purchase and development of the landfill were funded by $17 million in bonds issued by the Solid Waste Disposal Authority of the city of Adamsville, Alabama. Green Mountain Management, LLC, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 14-64287) on July 25, 2014. The petition was signed by Daniel B. Cowart, sole member of Georgia Flattop Partners, LLC, and chairman of Green Mountain Management, LLC. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due Nov. 24, 2014. The Debtor estimated $10 million to $50 million in assets and debt. Georgia Flattop Partners, LLC is the managing member and holders of 93% of the stock. The case is assigned to Judge Barbara Ellis-Monro. The Debtor is represented by Sage M. Sigler, Esq., at Alston & Bird, LLP, in Atlanta. GUIDED THERAPEUTICS: Warns of Possible Bankruptcy Filing -------------------------------------------------------- Guided Therapeutics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $2.19 million on $11,000 of contract and grant revenue for the three months ended June 30, 2014, as compared with a net loss attributable to common stockholders of $2.92 million on $222,000 of contract and grant revenue for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss attributable to common stockholders of $3.80 million on $30,000 of contract and grant revenue as compared with a net loss attributable to common stockholders of $4.73 million on $389,000 of contract and grant revenue for the same period during the prior year. As of June 30, 2014, the Company had $3.82 million in total assets, $6.31 million int total liabilities and a $2.49 million total stockholders' deficit. "The Company's capital-raising efforts are ongoing. If sufficient capital cannot be raised by the third quarter of 2014, the Company has plans to curtail operations by reducing discretionary spending and staffing levels, and attempting to operate by only pursuing activities for which it has external financial support and additional NCI, NHI or other grant funding. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection." A full-text copy of the Form 10-Q is available for free at: http://is.gd/oRglgb About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. Guided Therapeutics reported a net loss attributable to common stockholders of $10.39 million on $820,000 of contract and grant revenue for the year ended Dec. 31, 2013, as compared with a net loss of $4.35 million on $3.33 million of contract and grant revenue during the prior year. UHY LLP, in Sterling Heights, Michigan, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's recurring losses from operations and accumulated deficit raise substantial doubt about its ability to continue as a going concern. HELIA TEC: HSC Reserves Rights to Challenge Hughes' Authority ------------------------------------------------------------- HSC Holdings Co., Ltd., formerly known as GE&F Co., Ltd., asks the Bankruptcy Court to amend its July 18, 2014 order on its request to convert or dismiss Helia Tec Resources, Inc.'s Chapter 11 case. HSC sought for the conversion of the case to Chapter 7 so that an independent fiduciary may oversee the orderly liquidation of the estate and facilitate pending claims. During the hearing, the Court noted that HSC could choose not to pursue the issue at that point and preserve the issue for another day. Based on comments from the bench, HSC amended its request, withdrew its alternate request for dismissal based on lack of authority and improper purpose, and added an alternate request for the appointment of a Chapter 11 trustee. On July 18, 2014, the Court denied HSC's amended request. In a sentence that appears to address to the Court's jurisdictional concerns, but with no direct bearing on the substance of HSC's amended request, the Court stated that "[a]lthough HSC attempted to preserve the issue regarding Mr. [Cary] Hughes' authority to act on behalf of the Debtor, the withdrawal of the request to dismiss the case due to lack of authority constitutes an admission that the case was properly filed". David B. Harberg, Esq., in Houston, Texas, points out that the statement suggests that HSC did not effectively preserve its objections to Hughes' authority to act on Helia Tec's behalf and that, by withdrawing its alternate request for dismissal, HSC has judicially admitted that Hughes had the authority to file this bankruptcy case. Mr. Harberg clarifies that regardless of whether Mr. Hughes or HSC had the legitimate authority to initiate the bankruptcy filing, HSC ratified the filing of the case, and the Court has jurisdiction over the bankruptcy. Mr. Harbergy adds that HSC has never admitted to Mr. Hughes' authority to act on Helia Tec's behalf in the bankruptcy proceeding or otherwise. HSC's election to withdraw its request for dismissal of the bankruptcy based on Mr. Hughes' lack of authority to act on behalf of Helia Tec is no judicial admission that Mr. Hughes has the authority, says Mr.Harberg. HSC has expressly preserved its objections to Mr. Hughes' authority. HSC therefore wants the order to be altered or amended to remove any ambiguity or confusion concerning the effect of HSC's withdrawal of its request for dismissal. HSC is represented by: David B. Harberg, Esq. 1010 Lamar, Suite 450 Houston, Texas 77002 Telephone: 713-752-2200 Facsimile: 832-553-7888 About Helia Tec Resources Helia Tec Resources, Inc. filed a Chapter 11 petition (Bankr. S. D. Tex. Case No. 13-36251) on Oct. 3, 2013 in Houston, Texas, represented by Richard L. Fuqua, II, Esq., at Fuqua & Associates, PC, in Houston, as counsel to the Debtor. The Debtor listed $16.15 million in assets and $2.24 million in liabilities. The petition was signed by Cary E. Hughes, president. Judy A. Robbins, U.S. Trustee for Region 7, was unable to appoint an official committee of unsecured creditors in the Debtor's case. HOSPITALITY STAFFING: Taps Grant Thornton to Provide Tax Services ----------------------------------------------------------------- Hospitality Liquidation II, LLC, (fka Hospitality Staffing Solutions Group, LLC), et al., ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Grant Thornton, LLP, to provide them with tax preparation services. The Firm is expected to provide these services: (a) Preparation of federal and state tax returns; (b) Preparation of a workbook for purposes of determining the taxable income (loss) allocations to each Debtor; and (c) Upon request, and for an additional fee, routine time-to- time tax consulting services. Grant Thornton will be paid a flat fee of $60,600 for its services, which will be billed and payable as: Fees Amount ---- ------ Upon Execution: $25,000 August 15, 2014: $25,000 September 1, 2014: $10,600 The Debtors owe Grant Thornton $103,790 for auditing services the Firm performed pre-bankruptcy on behalf of the Debtors. The Firm agrees to waive this prepetition claim. The Firm assures the Court that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The Debtors' request is set to be heard on Aug. 25. About Hospitality Staffing Solutions Hospitality Staffing Solutions, LLC (HSS) -- http://www.hssstaffing.com-- is a hospitality staffing company. Established in 1990, the company's team of hotel industry experts works with 4 and 5 star properties in 35 states and 62 markets across the country. Hospitality Staffing Solutions and various affiliates filed voluntary Chapter 11 petitions (Bankr. D. Del. Lead Case No. 13-12740) on Oct. 24, 2013, before Judge Brendan Linehan Shannon. The Debtors are represented by Mark Minuti, Esq., at Saul Ewing LLP, in Wilmington, Delaware; and Jeffrey C. Hampton, Esq., Monique Bair DiSabatino, Esq., and Ryan B. White, Esq., at Saul Ewing LLP, in Philadelphia, Pennsylvania. The Debtors' financial advisor is Conway Mackenzie, Inc., and their investment banker is Duff & Phelps Corp. Epiq Systems, Inc., is the Debtors' claims and noticing agent. HSS Holding disclosed assets of undetermined amount and liabilities of $22,910,994. The investor group is providing DIP financing. They are represented by Scott K. Charles, Esq., and Neil M. Snyder, Esq., at Wachtell, Lipton, Rosen & Katz, in New York; and Derek C. Abbott, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware. Roberta A. DeAngelis, U.S. Trustee for Region 3, has notified the Bankruptcy Court that she was unable to appoint a committee of unsecured creditors in the Debtors' cases as there was insufficient response to the U.S. Trustee communication/contact for service on the committee. The Debtors filed for bankruptcy to facilitate a sale of the business to HS Solutions Corporation, an entity formed by LJC Investments I, LLC and a group of investors including Littlejohn Opportunities Master Fund, L.P., Caymus Equity Partners and Management, and SG Distressed Debt Fund LP. The investor group acquired $22.9 million of the secured bank debt on Oct. 11, 2013. That debt is in default. The asset purchase agreement with HS Solutions was approved by the Court on Dec. 13, 2013. The sale closed on Jan. 24, 2014. HOWREY LLP: Trade Creditors Agree to Dismiss Appeal --------------------------------------------------- The appellate case, ADVANCED DISCOVERY, LLC, et al., Appellants, v. ALLAN DIAMOND et al., Appellees, Case No. 14-03062 JD (N.D. Calif.), is dismissed with prejudice, according to a Stipulation approved by District Judge James Donato. Any court costs or fees that may be due will be paid by appellants. A copy of the August 12, 2014 Stipulation is available at http://is.gd/cp5WyHfrom Leagle.com. As reported by the Troubled Company Reporter on July 18, 2014, Advanced Discovery Inc., Howrey Claims, LLC, Kent Daniels & Associates, LLC, and L.A. Best Photocopies, Inc. moved for a stay pending appeal to the U.S. District Court for the Northern District of California of the bankruptcy court's order approving a settlement between the trustee, a committee of unsecured creditors, and certain former partners of the now defunct law firm, Howrey LLP. Advanced Discovery et al. asked the District Court to decide the motion on an accelerated basis, which the Court has accommodated. On July 11, 2014, the District Court held a telephonic hearing on shortened time. In a ruling three days later, District Judge James Donato denied the stay, ruling that Advanced Discovery et al. have not demonstrated that a stay is warranted because they failed to show a likelihood of success on the merits, the alleged irreparable harm is speculative at best, and the non-moving parties will be significantly injured if the stay is granted. Advanced Discovery et al. are small trade creditors of Howrey LLP. According to their counsel, Advanced Discovery et al.'s unsecured creditor claims amount to less than $175,000. The Howrey bankruptcy as a whole has approximately $100 million in unsecured creditor claims. Even giving Advanced Discovery et al. the full benefit of $175,000 in claims, their portion of the bankruptcy is less than 2%. Howrey Claims LLC is a company formed during the Howrey LLP bankruptcy proceedings that purchased claims from other creditors -- thus becoming a creditor itself -- and pursued those claims in the bankruptcy. In November 2012, Howrey Claims purported to bring a class action lawsuit in the bankruptcy court to recover damages directly from the former Howrey LLP partners on an alter ego theory. The bankruptcy court did not permit Howrey Claims to go forward with that lawsuit, which is the subject of a separate appeal in District Court. The bankruptcy court held that the alter ego claim under "either a fraudulent-transfer or a wrongful- distribution-of-capital theory . . . plainly belongs to the trustee." On March 5, 2014, the chapter 11 bankruptcy trustee, Allan B. Diamond, the Official Committee of Unsecured Creditors, and certain former Howrey LLP partners represented by the law firm of Klee Tuchin Bogdanoff & Stern LLP filed a Joint Motion to Approve a Settlement with the Former Howrey Partners Represented by Klee Tuchin. The settlement agreement provides that in exchange for $4,214,254, the former Howrey partners represented by Klee Tuchin will be fully released from, among other things, the trustee's breach of contract and fraudulent transfer claims. Advanced Discovery et al. objected to the Settlement on several grounds, including that it would release alter ego claims that do not belong exclusively to the trustee. On June 24, 2014, the bankruptcy court held a hearing on the Settlement. Advanced Discovery et al.'s objections were overruled and the Settlement was approved. During the hearing, Advanced Discovery et al. made an oral motion to stay any adverse order pending appeal. The bankruptcy court denied Advanced Discovery et al.'s request. A copy of the District Court's July 14, 2014 Order is available at http://is.gd/IYn6x5from Leagle.com. Advanced Discovery, Inc., et al. are represented by: Frank R. Ubhaus, Esq. BERLINER COHEN 10 Almaden Blvd San Jose, CA Tel: (408) 286-5800 E-mail: frank.ubhaus@berliner.com - and - Myron Moskovitz, Esq. LAW OFFICES OF MYRON MOSKOVITZ 601 Van Ness Avenue, Suite 1042 San Francisco, CA 94102 Tel: 510-384-0354 - and - William McGrane, Esq. McGRANE LLP Four Embarcadero Center, Suite 1400 San Francisco, CA 94111 Telephone: 415-292-4807 E-mail: william.mcgrane@mcgranellp.com The Official Committee of Unsecured Creditors of Howrey LLP, Interested Party, is represented by: Bradford Frost Englander, Esq. WHITEFORD, TAYLOR AND PRESTON, LLP 3190 Fairview Park Drive, Suite 300 Falls Church, VA 22042-4510 Tel: 703-280-9081 Fax: 703-280-3370 E-mail: benglander@wtplaw.com About Howrey LLP Three creditors filed an involuntary Chapter 7 petition (Bankr. N.D. Cal. Case No. 11-31376) on April 11, 2011, against the remnants of the Washington-based law firm Howrey LLP. The filing was in San Francisco, where the firm had an office. The firm previously was known as Howrey & Simon and Howrey Simon Arnold & White LLP. The firm at one time had more than 700 lawyers in 17 offices. The partners voted to dissolve in March 2011. The firm specialized in antitrust and intellectual-property matters. The three creditors filing the involuntary petition together have $36,600 in claims, according to their petition. The involuntary chapter 7 petition was converted to a chapter 11 case in June 2011 at the request of the firm. In its schedules filed in July, the Debtor disclosed assets of $138.7 million and liabilities of $107.0 million. Representing Citibank, the firm's largest creditor, is Kelley Cornish, Esq., a partner at Paul, Weiss, Rifkind, Wharton & Garrison. Representing Howrey is H. Jason Gold, Esq., a partner at Wiley Rein. The Official Committee of Unsecured Creditors is represented in the case by Bradford F. Englander, Esq., at Whiteford, Taylor And Preston LLP. In September 2011, Citibank sought conversion of the Debtor's case to Chapter 7 or, in the alternative, appointment of a Chapter 11 Trustee. The Court entered an order appointing a Chapter 11 Trustee. In October 2011, Allan B. Diamond was named as Trustee. He is represented by Andrew Baxter Ryan, Esq., and Stephen Todd Loden, Esq., at Diamond McCarthy LLP as counsel. IDEARC INC: 5th Circ. Renews Yellow Pages ERISA Suit ---------------------------------------------------- Law360 reported that citing a recent U.S. Supreme Court ruling, the Fifth Circuit revived proposed class action claims against Yellow Pages directories publisher Idearc Inc. brought by retirement plan participants who say the company had to stop offering Idearc stock as an investment option while it approached bankruptcy. According to the report, the appeals panel had previously affirmed a district court's dismissal of the suit, but on Aug. 4 the U.S. Supreme Court vacated that ruling and remanded the case back to the Fifth Circuit for further considerations. The case is Bruce Fulmer v. Scott Klein, et al., Case No. 12-10416 (5th Cir.). About Idearc Inc. Headquartered in D/FW Airport, Texas, Idearc, Inc., now known as SuperMedia Inc., is the second largest U.S. yellow pages publisher. Idearc was spun off from Verizon Communications, Inc. Idearc and its affiliates filed for Chapter 11 protection (Bankr. N.D. Tex. Lead Case No. 09-31828) on March 31, 2009. The Debtors' financial condition as of Dec. 31, 2008, showed total assets of $1,815,000,000 and total debts of $9,515,000,000. Toby L. Gerber, Esq., at Fulbright & Jaworski, LLP, represented the Debtors in their restructuring efforts. The Debtors tapped Moelis & Company as their investment banker; Kurtzman Carson Consultants LLC as their claims agent. William T. Neary, the United States Trustee for Region 6, appointed six creditors to serve on the official committee of unsecured creditors. The Committee selected Mark Milbank, Tweed, Hadley & McCloy LLP, as counsel, and Haynes and Boone, LLP, co- counsel. Idearc completed its debt restructuring and its plan of reorganization became effective as of Dec. 31, 2009. In connection with its emergence from bankruptcy, Idearc changed its name to SuperMedia Inc. Under its reorganization, Idearc reduced its total debt from more than $9 billion to $2.75 billion of secured bank debt. Less than two years since leaving bankruptcy protection, SuperMedia remains in quandary. Early in October 2011, Moody's Investors Service slashed its corporate family rating for SuperMedia to Caa1 from B3 prior. The downgrade reflects Moody's belief that revenues will continue to decline at a double digit rate for the foreseeable future, leading to a steady decline in free cash flow. SuperMedia's sales were down 17% for the second quarter of 2011 in a generally improving advertising sector. Moody's ratings outlook for SuperMedia remains negative. While SuperMedia is attempting to transition the business away from its reliance on print advertising through development of online and mobile directory service applications, Moody's is increasingly concerned that the company will not be able to make this change quickly enough to stabilize the revenue base over the intermediate term. Further, the high fixed cost nature of SuperMedia's business could lead to steep margin compression, notwithstanding continued aggressive cost management. INTERLEUKIN GENETICS: Warns of Possible Bankruptcy Filing --------------------------------------------------------- Interleukin Genetics, Inc., warned that it may have to end its operations and seek protection under bankruptcy laws if it fails to obtain additional capital by the end of November 2014. "We expect that our current and anticipated financial resources will be adequate to maintain our current and planned operations only through November, 2014. We need significant additional capital to fund our continued operations, including for the continued commercial launch of our PerioPredictTM genetic test, continued research and development efforts, obtaining and protecting patents and administrative expenses. We have retained a financial advisor and are actively seeking additional funding, however, based on current economic conditions, additional financing may not be available, or, if available, it may not be available on favorable terms." "We also could be required to seek funds through arrangements with collaborators or others that may require us to relinquish rights to some of our technologies, tests or products in development. If we cannot obtain additional funding on acceptable terms, we may have to discontinue operations and seek protection under U.S. bankruptcy laws." The Company reported a net loss of $1.57 million on $528,595 of total revenue for the three months ended June 30, 2014, as compared with a net loss of $1.77 million on $852,128 of total revenue for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss of $3.24 million on $1.01 million of total revenue as compared with a net loss of $2.97 million on $1.33 million of total revenue for the same period last year. As of June 30, 2014, the Company had $6.21 million in total assets, $3.93 million in total liabilities, all current, and $2.27 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Qy6Ujm About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. Interleukin Genetics incurred a net loss of $7.05 million on $2.42 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss of $5.12 million on $2.23 million of total revenue in 2012. Grant Thornton LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 3, 2013. The independent auditors noted that the Company has incurred recurring losses from operations and has an accumulated deficit that raise substantial doubt about the Company's ability to continue as a going concern. IRISH BANK: Sheehan Prepared to Close on Purchase of Loan Assets ---------------------------------------------------------------- In the Chapter 15 bankruptcy proceedings of The Irish Bank Resolution Corporation Limited (In Special Liquidation), Dr. Joseph Sheehan filed a motion with the Bankruptcy Court in Delaware seeking entry of an order designating him as the "Purchaser" under the Order (I) Approving the Sale of Blackrock Loan Assets Free and Clear of All Liens, Claims, Encumbrances and Interests, (II) Approving the Form and Manner of Sale Notices, and (III) Granting Related Relief of certain loan assets. Various shareholders of Blackrock Hospital borrowed funds to acquire shares in the hospital. In September 2013, the special liquidators commenced a robust sale process for the BlackRock loans for which Dr. Sheehan's bid of EUR24 million was determined as the highest and best bid for the loans. The Blackrock Loans are comprised of six loans made to two individuals, and each loan is secured by shares in the Blackrock Hospital. The nominal gross loan balance of the Blackrock Loans is approximately EUR23,364,000. The Children's Fund International that provided financing to Dr. Sheehan required him to assign his rights to acquire the BlackRock loans to JCS Investment Holdings. However, JCS failed to complete the purchase of the loan. Thus, Dr. Sheehan, in his motion, avers that he has an alternative financing and is ready, willing and able to close on the same terms that the special liquidators previously determined was the highest and best bid for the BlackRock loans. Dr. Sheehan is represented by: Scott J. Leonhardt, Esq. THE ROSNER LAW GROUP LLC 824 Market Street, Suite 810 Wilmington, DE 19801 Telephone: (302) 777-1111 E-mail: leonhardt@teamrosner.com - and - Lawrence Daniel O'Neill, Esq. O'NEILL & COMPANY 240 Central Park South New York, NY 10019 Telephone: 917-675-4864 E-mail: doneill@oneill-company.com About Irish Bank Resolution Irish Bank Resolution Corp., the liquidation vehicle for what was once one of Ireland's largest banks, filed a Chapter 15 petition (Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect U.S. assets of the former Anglo Irish Bank Corp. from being seized by creditors. Irish Bank Resolution sought assistance from the U.S. court in liquidating Anglo Irish Bank Corp. and Irish Nationwide Building Society. The two banks failed and were merged into IBRC in July 2011. IBRC is tasked with winding them down and liquidating their assets. In February, when Irish lawmakers adopted the Irish Bank Resolution Corp., IBRC was placed into a special liquidation in the Irish High Court to complete liquidation and distribution of the two banks' assets. IBRC's principal asset as of June 2012 was a loan portfolio valued at some EUR25 billion (US$33.5 billion). About 70 percent of the loans were to Irish borrowers. Some 5 percent of the portfolio was under U.S. law, according to a court filing. Total liabilities in June 2012 were about EUR50 billion, according to a court filing. Most assets in the U.S. have been sold already. IBRC is involved in lawsuits in the U.S. IBRC was granted protection under Chapter 15 of the U.S. Bankruptcy Code in December 2013. Kieran Wallace and Eamonn Richardson of KPMG have been named the special liquidators. ISR GROUP: Court Approves Hiring of Neligan Foley as Counsel ------------------------------------------------------------ ISR Group, Incorporated, sought and obtained permission from the U.S. Bankruptcy Court for the Western District of Tennessee to employ Neligan Foley LLP as counsel. The Debtor requires Neligan Foley to: (a) advise the Debtor, its management and officers of their rights, powers, and duties as debtor-in-possession; (b) counsel the Debtor's management and officers on issues involving operations, potential sales of assets, and possible financing options; (c) negotiate documents, prepare pleadings, and represent the Debtor at hearings related to those matters; (d) take all necessary actions to protect and preserve the Debtor's estate, including prosecuting litigation on Debtor's behalf, investigating claims of the Debtor, defending the Debtor, if necessary, in actions, litigation, hearings or motions commenced against the Debtor, negotiating disputes in which the Debtor is involved, and preparing objections to claims filed against the estate; (e) prepare on behalf of the Debtor all necessary motions, applications, answers, pleadings, orders, reports, and papers in administration of the estate or in furtherance of the Debtor's business operations, or as required to preserve the Debtor's assets, and as otherwise requested by the Debtor's management; (f) negotiate and draft documents relating to debtor-in- possession financing and use of cash collateral and attend any hearings on such matters, prepare discovery and respond to discovery served on the Debtor, response to creditor inquiries and information requests, assist with preparation of Schedules, Statement of Financial Affairs, Monthly Operating Reports, attendance at section 341 meeting and representation at meetings with creditors as well as any committee appointed by the United States Trustee; (g) counsel the Debtor in connection with the sale of some or all of the Debtor's assets, negotiating the terms of any such sale, drafting, negotiating, and prosecuting any pleadings and other documents necessary to complete any such sale; (h) draft, negotiate, and prosecute on behalf of the Debtor a plan of reorganization, the related disclosure statement, and any revisions, amendments, and supplements relating to the foregoing documents, and all related materials; and (i) perform all other necessary legal services in connection with this Case and any other bankruptcy-related representation that the Debtor requires; Neligan Foley will be paid at these hourly rates: Partner $395-$675 Paralegals and Associates $130-$350 Neligan Foley will also be reimbursed for reasonable out-of-pocket expenses incurred. Prior to the Petition Date, the Debtor paid to Neligan Foley a retainer of $155,000. Neligan Foley applied $90,000 of the Retainer to the fees and expenses incurred prior to the Petition Date. As of the Petition Date, Neligan Foley is holding a retainer of $65,000. Patrick J. Neligan, Jr., a partner in Neligan Foley, 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. Neligan Foley can be reached at: Patrick J. Neligan, Jr., Esq. NELIGAN FOLEY LLP 325 N. St. Paul, Suite 3600 Dallas, TX 75201 Tel: (214) 840-5300 Fax: (214) 840-5301 E-mail: pneligan@neliganlaw.com About ISR Group ISR Group, Incorporated, filed a Chapter 11 bankruptcy petition (Bankr. W.D. Tenn. Case No. 14-11077) on April 29, 2014. John Stuecheli signed the petition as chief restructuring officer. In its schedules, the Debtor disclosed $13,339,836 in total assets and $19,465,911 in total liabilities. Franklin Childress, Jr., Esq., at Baker Donelson Bearman, serves as the Debtor's counsel. Judge Jimmy L Croom presides over the case. ISR Group Inc., a provider of services for military and civilian users of drones, obtained Court permission to sell the business to an affiliate of lender Trive Capital, mostly in exchange for $18.4 million in secured debt. Under a global settlement among the company, the creditors' committee and the buyer, Trive is providing $375,000 in cash exclusively for payment to creditors with unsecured claims. The bankruptcy judge approved the settlement on June 17, together with an agreement among constituents supporting a Chapter 11 plan. LAMSON AND GOODNOW: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Lamson and Goodnow Manufacturing Company 14-30798 45 Conway Street Shelburne Falls, MA 01370 Lamson and Goodnow, LLC 14-30799 45 Conway Street Shelburne Falls, MA 01370 Lamson and Goodnow Retail, LLC 14-30801 45 Conway Street Shelburne Falls, MA 01370 Chapter 11 Petition Date: August 15, 2014 Court: United States Bankruptcy Court District of Massachusetts (Springfield) Judge: Hon. Henry J. Boroff Debtors' Counsel: Gary M. Weiner, Esq. WEINER & LANGE, P.C. 95 State Street, Suite 918 Springfield, MA 01103 Tel: (413) 732-6840 Email: GWeiner@Weinerlegal.com Estimated Estimated Assets Liabilities ---------- ----------- Lamson And Goodnow Manufacturing $1MM-$10MM $1MM-$10MM Lamson And Goodnow, LLC $100K-$500K $1MM-$10MM Lamson And Goodnow Retail $0-$50K $1MM-$10MM The petitions were signed by John Ross Anderson, president. A list of Lamson and Goodnow Manufacturing's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/mab14-30798.pdf A list of Lamson and Goodnow, LLC's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/mab14-30799.pdf A list of Lamson And Goodnow Retail's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/mab14-30801.pdf LEHMAN BROTHERS: LBI Trustee to Start $4.6-Bil. Payout ------------------------------------------------------ James W. Giddens, Trustee for the liquidation of Lehman Brothers Inc. (LBI) under the Securities Investor Protection Act, on Aug. 15 filed a notice regarding the first interim distribution to unsecured general creditors with allowed claims, setting the fund for the distribution at $4.6 billion. This first interim distribution to unsecured general creditors follows the ability to satisfy 100 percent of all customer claims and secured and priority general creditor claims. Distributions to unsecured general creditors will begin on or about September 10, 2014. "This first interim distribution to unsecured general creditors totaling billions of dollars is a milestone in administering and winding down the LBI estate," Mr. Giddens said. "That such a distribution is even possible represents an extraordinary achievement that was far from certain when the liquidation began. We expect additional distributions to unsecured general creditors, while maintaining appropriate reserves and protecting claimants' interests and due process rights." Taking into account required reserves, LBI general estate assets available for distribution total $4.7 billion. Of this amount, the Trustee has set a fund of $4.6 billion, or approximately 97 percent of the total available, for the first interim distribution. The Trustee has allocated approximately $3.5 billion for allowed unsecured general creditor claims and approximately $1.1 billion for still pending unsecured general creditor claims. These allocations represent 17 percent of the total amount of these claims. At the outset of the LBI liquidation, the extent of customer distributions was unknown and the potential for a general estate was in doubt. Customer claims have been paid in full, and now with the planned first interim distribution, more than $110 billion will have been distributed from the LBI estate to customers and general creditors. This represents the largest distribution across the worldwide Lehman insolvency proceedings, and it would not have been possible without the assistance of the Securities Investor Protection Corporation and the Securities and Exchange Commission, and the oversight of United States Bankruptcy Court judges, the Honorable James M. Peck and the Honorable Shelley C. Chapman. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: SIPC Lauds Trustee on Distributions to Creditors ----------------------------------------------------------------- The first interim distribution to unsecured general creditors of Lehman Brothers Inc. (LBI) will make available $4.6 billion, according to James W. Giddens, trustee for the liquidation of LBI. The Securities Investor Protection Corporation (SIPC) on Aug. 15 commended the hard work of Trustee Giddens and his attorneys in reaching this major milestone. Distributions are set to commence on or about September 10. A SIPA liquidation addresses claims of general creditors as well as the 'customers' SIPC and the Trustee are charged with protecting. SIPC President Stephen Harbeck said: "When the SIPA liquidation commenced in September 2008, the possibility of the full satisfaction of customer claims was something SIPC and the Trustee hoped for, but was genuinely uncertain at that time. The fact that customer claims have been fully satisfied, and that unsecured general creditors are now receiving a significant distribution, is an extraordinary achievement. The remarkable distribution of billions of dollars to general creditors is attributable to the diligence and many hundreds of hours of hard work of Trustee Giddens, his counsel, and his staff. SIPC applauds this historic achievement. We also thank U.S. Bankruptcy Court Judges James Peck and Shelley C. Chapman for their countless hours of work, in reaching this important milestone." The $4.6 billion allocated for this first distribution to unsecured general creditors represents 17 percent of the total amount of these claims. With this planned first interim distribution, more than $110 billion will have been distributed from the LBI estate to customers and general creditors. SIPC and Trustee Giddens had previously announced in June 2013 that 100 percent of LBI securities customers claims would be fulfilled. With that return of all LBI customer property, no advances from the SIPC Fund were necessary to make LBI securities customers whole. Secured and priority general creditor claims have also been fully satisfied. SIPC and the Trustee also noted that distributions from the LBI estate stand as the largest return of property in history to former customers of a broker-dealer following a bankruptcy and liquidation proceeding. Full details on the distributions can be found at http://www.lehmantrustee.com About SIPC The Securities Investor Protection Corporation -- http://www.sipc.org-- is the U.S. investor's first line of defense in the event of the failure of a brokerage firm owing customers cash and securities that are missing from customer accounts. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds. The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities -- such as stocks or bonds -- that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims for customer cash and/or securities held in custody with the broker for up to a maximum of $500,000 per customer. This figure includes a maximum of $250,000 on claims for cash. From the time Congress created it in 1970 through December 2013, SIPC has advanced $ 2.1 billion in order to make possible the recovery of $133 billion in assets for an estimated 772,000 investors. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LIGHTSQUARED INC: Milbank Reaps $14MM in Bankruptcy Fees -------------------------------------------------------- Law360 reported that a New York bankruptcy judge signed off on nearly $19 million in fees for professionals working on the LightSquared Inc. bankruptcy, with debtors' counsel Milbank Tweed Hadley & McCloy LLP leading the way with $13.6 million. According to the report, U.S. Bankruptcy Judge Shelley C. Chapman issued an order granting applications for allowance of interim compensation for services provided and expenses incurred by nine law firms and other professionals working on the LightSquared Chapter 11 proceedings during the period spanning Jan. 1 through April 30. 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. LOS GATOS HOTEL: Parties Ask Court to Extend Cash Collateral Use ---------------------------------------------------------------- Los Gatos Hotel Corporation and Los Gatos Lodging Limited Partnership, as secured creditor, ask the Bankruptcy Court to approve their sixth stipulation extending the terms of its cash collateral provisions. Los Gatos Lodging has agreed to extend the period that Los Gatos Hotel is authorized to use its cash collateral from May 15, 2014 through and including the earlier of: (a) the date of confirmation of any plan of reorganization containing terms acceptable to secured creditor; (b) the date of the consummation of a sale of substantially all of Los Gatos Hotel's assets containing terms acceptable to the secured creditor; or (c) December 31, 2014, or until such authorization is terminated. On March 29, 2010, the Court authorized Los Gatos to use the secured creditor's cash collateral. Extension of the use of cash collateral has been conducted five times before, pursuant to Court-approved stipulations. Los Gatos Hotel is represented by: Jeffry A. Davis, Esq. Abigail V. O'Brient, Esq. MINTZ LEVIN COHN FERRIS GLOVSKY AND POPEO P.C. 3580 Carmel Mountain Road, Suite 300 San Diego, CA 92130 Tel: 858-314-1500 Fax: 858-314-1501 Los Gatos Lodging is represented by: Alan M. Feld, Esq. Michael M. Lauter, Esq. Adam J. McNeile, Esq. SHEPPARD, MULLIN, RICHTER & HAMPTON LLP 333 S. Hope Street, 43rd Floor Los Angeles, CA 90071-1422 About Los Gatos Hotel San Jose, California-based Los Gatos Hotel Corporation, dba Hotel Los Gatos, was formed in 2000 to build and operate Hotel Los Gatos, a full-service boutique hotel in downtown Los Gatos, California. Los Gatos Hotel filed for Chapter 11 bankruptcy protection on December 27, 2010 (Bankr. N.D. Cal. Case No. 10-63135). The Debtor disclosed $17,191,277 in assets and $12,896,468 in liabilities as of the Chapter 11 filing. Affiliate Blossom Valley Investors, Inc., filed a separate Chapter 11 petition on September 10, 2009 (Bankr. N.D. Cal. Case No. 09-57669). Jeffry A. Davis, Esq., at Mintz Levin Cohn Ferris Glovsky Popeo, serves as the Debtor's bankruptcy counsel. The Debtor has tapped OSAS Inc. as financial advisor and investment banker. LOVE CULTURE: Judge Approves Sale; Some Stores to Remain Open ------------------------------------------------------------- Tom Corrigan, writing for Daily Bankruptcy Review, reported that a bankruptcy judge authorized Love Culture Inc. to sell its remaining assets to investors who plan to keep open between 40 and 45 of the clothing retailer's stores. Love Culture Inc. filed a Chapter 11 bankruptcy petition (Bankr. D. N.J. Case No. 14-24508) on July 16, 2014. J.E. Rick Bunka signed the petition as chief restructuring officer. The Debtor estimated assets of $10 million to $50 million and liabilities of at least $10 million. Judge Novalyn L. Winfield presides over the case. Lowenstein Sander LLP acts as the Debtor's counsel. PricewaterhouseCoopers LLP serves as the Debtor's financial advisor. Epiq Systems is the Debtor's claims and noticing agent. Consensus Advisory Service LLC and Consensus Securities LLC is the Debtor's investment banker. LUNA DAY: Land & Buildings to Be Sold at Aug. 25 Auction -------------------------------------------------------- Beth D. Graf and Kenneth M. Graf, as holders of a mortgage given by Luna Day LLC, will sell at public auction the land and buildings as described in the Mortgage on August 25, 2014 at 9:30 a.m. at the Premises. The premises are known as 46 Prospect Street, Franklin, County of Merrimack, State of New Hampshire. Luna Day is based at 33 Memorial Street, Franklin, NH 03235. A deposit of $5,000 in the form of a certified check or bank treasurer's check or other check satisfactory to Mortgagee's attorney will be required to be delivered at or before the time a bid is offered. The successful bidder(s) will be required to execute a purchase and sale agreement immediately after the close of the bidding. The balance of the purchase price shall be paid within 30 days from the sale date in the form of a certified check, bank treasurer's check or other check satisfactory to Mortgagee's attorney. The Mortgagee reserves the right to bid at the sale, to reject any and all bids, to continue the same and to amend the terms of the sale by written or oral announcement made before or during the foreclosure sale. The property will be sold "AS IS AND WHERE IS' and subject to unpaid taxes, prior liens or other enforceable encumbrances of record, if any, entitled to precedence over the Mortgage. The Grafs are represented by: Glenn C. Raiche, Esq. LAW OFFICE OF GLENN C. RAICHE 24 Eastman Avenue, Suite C3 Bedford, NH 03110 Tel: (603) 626-7744 M*MODAL: Unveils New Board of Directors Following Chapter 11 Exit ----------------------------------------------------------------- M*Modal on Aug. 14 announced its new Board of Directors, appointed upon the completion of the company's financial restructuring and emergence from Chapter 11 on July 31. The company also announced the formation of an Interim Executive Committee to oversee the day-to-day operations of M*Modal and direct the go-forward strategy. This change reflects the decision by CEO Duncan James to leave the company, effective August 22. The new Board members include: * Michael O'Boyle, former President and CEO of Parallon Business Solutions and former Chief Operating Officer of Cleveland Clinic * William Allen, Chairman of the Board of Managers for Werner International * Eugene Davis, Chairman and CEO of PIRINATE Consulting Group and member of multiple Boards * Jeffrey Goldberg, Chair of the Board of Physiotherapy Associates and co-Chair of the Board of Angiotech/Surgical Specialties Corporation The Interim Executive Committee includes Jeffrey Goldberg, Chair of the Board at M*Modal and Board member Michael O'Boyle. Members of M*Modal's senior executive team will report into this office, which will be in place while the company searches for a permanent CEO with the assistance of a leading executive search firm. "I am very proud of M*Modal's accomplishments," said Mr. James. "The company emerged from the restructuring process with a strong financial foundation and poised to extend its leadership position in clinical documentation and Speech Understanding." "The Board appreciates Duncan's contributions and his leadership during the company's recent successful financial restructuring process," said Mr. Goldberg. "Establishing an Interim Executive Committee will allow the Board to work directly with M*Modal's strong management team while we pursue a successor CEO. Looking ahead, we will be identifying opportunities to grow while working with the executive team to ensure M*Modal remains focused on meeting the needs of our core customers." Michael O'Boyle has over 25 years of experience providing leadership to some of the top health care companies in the U.S. He is the former President and CEO of Parallon Business Solutions, an HCA Holdings company, which delivers consulting and business process outsourcing services to hospitals and other care facilities. Prior positions include serving as President of United Health Networks, the network services company of UnitedHealthcare, as well as leading the world-renowned Cleveland Clinic as its Chief Operating Officer and Chief Financial Officer. Mr. O'Boyle is currently a member for The Greenspring Fund Board, Pinstripe Holdings Advisory Board, Valence Health Advisory Board, and holds several Board and Council positions at St. Catherine University. William Allen has extensive leadership and Board-level experience at a number of multinational companies. He is currently Chairman of the Board of Managers for Werner International, having served as President and CEO of Werner's U.S. operations. Mr. Allen is also a Board member of United Subcontractors Inc., and has held Board positions at Constar, Ames Taping Tools, Oriental Trading Company and others. Eugene Davis brings decades of experience in the areas of strategic planning, mergers and acquisitions, finance, accounting, capital structures and Board practices. He is Chairman and CEO of PIRINATE Consulting Group, which specializes in turnaround management and strategic planning advisory services. Since forming PIRINATE in 1997, Mr. Davis has advised and managed a number of businesses operating in such diverse sectors as telecommunications, automotive, medical, energy and financial services. He currently serves on the Board of Directors for U.S. Concrete, Inc., Harbinger Group, Inc., Spectrum Brands, Inc. and WMI Holdings Corp. Jeffrey Goldberg has spent much of his career providing executive leadership and legal counsel to companies in health care services and medical technology, including IncuMed, Advanced Bionics, Orthopedic Hospital, and the Doheny Eye Institute. Current Board positions include Physiotherapy Associates (Chair) and Angiotech Pharmaceuticals/Surgical Specialties (co-Chair). About M*Modal Headquartered in Franklin, Tennessee, M*Modal provides clinical documentation solutions for the U.S. healthcare industry. It has operations in six countries and employs more than 9,900 employees, most of whom are medical transcriptionists or medical editors. M*Modal, a medical-services company owned by J.P. Morgan Chase Co.'s private-equity arm, filed for Chapter 11 bankruptcy protection, following a decline in sales and mounting debt. MModal disclosed $627 million in total assets and $876 million in total liabilities as of Feb. 28, 2014. MModal Inc., disclosed, in its schedules, assets of $36,128,041 plus undetermined amount, and liabilities of $808,089,536 plus undetermined amount. Legend Parent Inc. and other M*Modal entities, including MModal Inc., sought bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-10701) on March 20, 2014. The Debtors have tapped Dechert LLP as attorneys, Alvarez & Marsal North America, LLC, as restructuring advisor, Lazard Freres & Co LLC as investment banker, Deloitte Tax LLP as tax advisor, and Prime Clerk LLC as claims and noticing agent, and administrative advisor. The Joint Plan of Reorganization dated April 25, 2014, provides that First Lien Claims will be allowed in the aggregate amount of $507,680,532. On the effective date, holders of First Lien Claim will also receive their pro rata share of (i) the New Term Loan, (ii) 93% of Reorganized Holdings Equity Interests, subject to dilution solely on account of the New Warrants and Management Stock Option Plan; and (iii) $8,197,801 in Cash. Holders of Allowed General Unsecured Claims will receive their pro rata share of (i) 7% of the Reorganized Holdings Equity Interests; (ii) the New A Warrants and New B Warrants; and (iii) $617,039 in Cash. A Steering Committee for Secured Lenders under the Prepetition Credit Agreement is represented by Richard Levy, Esq., at Latham & Watkins LLP. An Ad Hoc Committee of certain unaffiliated holders of (i) the Term B loan under the Prepetition Credit Agreement and (ii) Notes issued under the Indenture is represented by Michael Stamer, Esq., and James Savin, Esq., at Akin Gump Strauss Hauer & Feld LLP. The U.S. Trustee for Region 2 has appointed three members to the Official Committee of Unsecured Creditors. Kristopher M. Hansen, Esq., Frank A. Merola, Esq., and Matthew G. Garofalo, Esq., at Stroock & Stroock & Lavan LLP, in New York, serve as counsel to the Committee. Michael Diaz of FTI Consulting leads the team of financial advisors to the Creditors' Committee. M.S. REAL ESTATE: Case Summary & 4 Unsecured Creditors ------------------------------------------------------ Debtor: M.S. Real Estate Holdings, Inc. 831 NW 7th Terr. Fort Lauderdale, FL 33311 Case No.: 14-28462 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: August 15, 2014 Court: United States Bankruptcy Court Southern District of Florida (Fort Lauderdale) Judge: Hon. John K Olson Debtor's Counsel: Angelo A Gasparri, Esq. THE LAW OFFICES OF ANGELO A. GASPARRI, PA 1080 S. Federal Hwy Boynton Beach, FL 33435 Tel: 561-826-8986 Email: angelo@drlclaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Jose Mauricio Sanchez, director/president. A list of the Debtor's four largest unsecured creditors is available for free at http://bankrupt.com/misc/flsb14-28462.pdf MEDICURE INC: Provides Update on Tardoxal and Tend-TD Study ----------------------------------------------------------- Medicure Inc. announced that the preliminary results of its Phase IIa Clinical Trial, TardoxalTM for the Treatment of Tardive Dyskinesia (TEND-TD) showed a non-statistically significant improvement in the primary efficacy endpoint in patients treated with Tardoxal. Medicure views these preliminary results as supportive of continuing the program and developing a modified formulation as a prelude to a larger, confirmatory Phase II study. TEND-TD was planned as a 140 patient Phase II clinical trial to evaluate the efficacy and safety of Tardoxal for the treatment of Tardive Dyskinesia (TD), with a pre-planned interim analysis after approximately 40 patients were enrolled. The primary efficacy endpoint for the study was a decrease in involuntary movements as measured by the Abnormal Involuntary Movement Scale (AIMS), a standardized test used to detect and monitor TD and other movement disorders. The results from all 37 patients (17 randomized to Tardoxal and 20 to matching placebo) who completed the 12 week treatment period showed a trend to greater improvement in AIMS score from baseline to completion of study in the Tardoxal group versus placebo. The study was not adequately powered to assess efficacy and the improvement noted was not statistically significant. No significant differences between the study groups were seen in safety endpoints, however, there was a trend to increased nausea reported in the treatment group. This side effect was anticipated and has been seen in the Company's previous clinical studies with the product. As it was not feasible to complete an adequately powered study prior to expiry of the product and due to the Company's limited financial resources at that time, enrollment was stopped after attainment of the target number for the pre-planned interim analysis. Further details on the results are not being released at this time pending additional evaluation in conjunction with the Principal Investigator, Dr. Gary Remington, Director of the Medication Assessment Clinic, Schizophrenia Program, Centre for Addiction and Mental Health and Professor and Schizophrenia Head, Division of Brain and Therapeutics, Department of Psychiatry, University of Toronto. The trial was conducted by Medicure's subsidiary, Medicure International, Inc. Further study information is available at: http://clinicaltrials.gov/ct2/show/NCT00917293?term=medicure&rank= 5 "We are grateful to the investigators, staff and patients who participated in this study as we work to develop a safe and effective treatment for this debilitating condition," stated Dr. Albert D. Friesen, CEO of Medicure. "The results from TEND-TD give us sufficient confidence to maintain this program and to make plans for the next step in the advancement of Tardoxal. Continued progress and growth in our Aggrastat commercial business, has improved our ability to find value in other areas, such as revisiting and continuing our efforts with Tardoxal." Medicure plans to maintain a modest investment in the research and development of Tardoxal over the next several months and is currently exploring modified formulations to reduce nausea that may be associated with use of the product. A larger, confirmatory Phase II study will be required to evaluate and confirm the safety and efficacy of Tardoxal in treatment of TD. Tardoxal is an experimental drug and has not been approved for commercial use by regulatory bodies such as the U.S. Food and Drug Administration (FDA) or Health Canada. Tardoxal continues to have Fast Track designation from the FDA for the treatment of moderate to severe TD. Fast Track designation is designed to facilitate the development and expedite the review of new drugs that are intended to treat serious or life-threatening conditions and that demonstrate the potential to address unmet medical needs. About Medicure Inc. Based in Winnipeg, Manitoba, Canada, Medicure Inc. (TSX/NEX: MPH.H) -- http://www.medicure.com/-- is a biopharmaceutical company engaged in the research, development and commercialization of human therapeutics. The Company has rights to the commercial product, AGGRASTAT(R) Injection (tirofiban hydrochloride) in the United States and its territories (Puerto Rico, U.S. Virgin Islands, and Guam). AGGRASTAT(R), a glycoprotein GP IIb/IIIa receptor antagonist, is used for the treatment of acute coronary syndrome (ACS) including unstable angina, which is characterized by chest pain when one is at rest, and non-Q-wave myocardial infarction. Medicure Inc. incurred a net loss of C$2.57 million on C$2.60 million of net product sales for the year ended May 31, 2013, as compared with net income of C$23.38 million on C$4.79 million of net product sales during the prior fiscal year. The Company's balance sheet at Nov. 30, 2013, showed C$3.25 million in total assets, C$8.52 million in total liabilities and a C$5.27 million total deficiency. Ernst & Young, LLP, in Winnipeg, Canada, issued a "going concern" qualification on the consolidated financial statements for the year ended May 31, 2013. The independent auditors noted that Medicure Inc. has experienced losses and has accumulated a deficit of $125,877,356 since incorporation and a working capital deficiency of $2,065,539 as at May 31, 2013 that raises substantial doubt about its ability to continue as a going concern. MEGA RV: Files List of 20 Largest Unsecured Creditors ----------------------------------------------------- Mega RV Corp. has filed the required list of creditors holding 20 largest unsecured claims. A full-text copy of the document is available for free at http://is.gd/2v8b8P About Mega RV Corp. Mega RV Corp. filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-13770) on June 15, 2014. Brent McMahon signed the petition as president. The Debtor estimated assets and liabilities of at least $10 million. Goe & Forsythe, LLP, serves as the Debtor's counsel. Judge Mark S Wallace presides over the case. The U.S. Trustee for Region 16 on July 3 appointed three creditors of Mega RV Corp. to serve on the official committee of unsecured creditors. MEGA RV: Committee Taps Glusker Fields as Bankruptcy Counsel ------------------------------------------------------------ The Official Committee of Unsecured Creditors of Mega RV Corp. seeks to retain Greenberg Glusker Fields Claman & Machtinger LLP as its general bankruptcy counsel. The Firm is expected to provide these services, among other things: (1) Advise the Committee with respect to its rights, duties, and powers in this Chapter 11 case; (2) Assist the Committee with the administration of the case and the exercise of oversight with respect to the Debtor's affairs; (3) Assist and advise the Committee in its consultations and negotiations with the Debtor relative to the administration of the Chapter 11 case. The Firm's standard fees are: Professional Position Hourly Rate ------------ -------- ----------- Brian L. Davidoff Partner $640 Courtney E. Pozmantier Associate $425 James C. Behrens Associate $325 Brian L. Davidoff, Esq. -- BDavidoff@GreenbergGlusker.com -- attests that his Firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Mega RV Corp. Mega RV Corp. filed a Chapter 11 bankruptcy petition (Bankr. C.D. Calif. Case No. 14-13770) on June 15, 2014. Brent McMahon signed the petition as president. The Debtor estimated assets and liabilities of at least $10 million. Judge Mark S Wallace presides over the case. Proposed counsel for the Debtor are Robert P. Goe, Esq. and Elizabeth A. LaRocque, Esq. at Goe & Forsythe, LLP of Irvine, CA. The U.S. Trustee for Region 16 on July 3 appointed three creditors of Mega RV Corp. to serve on the official committee of unsecured creditors. MF GLOBAL: Asks Judge Not to Toss Lawsuit Against PwC ----------------------------------------------------- Joseph Checkler, writing for The Wall Street Journal, reported that MF Global Holdings Ltd. is urging a judge not to toss its $1 billion lawsuit against PricewaterhouseCoopers LLP for the alleged bad accounting advice that MF Global says led to its 2011 collapse. According to the report, in a filing with the U.S. District Court in Manhattan, lawyers for the administrator in charge of MF Global fought PwC's argument that MF doesn't have the standing to sue PWC. In March, MF Global sued PwC for at least $1 billion, alleging that bad accounting advice helped cause MF Global's 2011 collapse, the report related. About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. MID-WILSHIRE PROPERTY: Assets to Be Sold at Sept. 4 Auction ----------------------------------------------------------- Tomatobank, N.A. as Beneficiary, will sell at public auction to the highest bidder the real and personal property of Mid-Wilshire Property, LP, on September 4, 2014 at 9:00 a.m., on the front steps to the entrance of the Orange Civic Center, 300 E. Chapman, Orange CA 92866. The real property is located at 1051 Bryan Avenue, Tustin, CA 92780. The property is being sold "as is". Special Default Services, Inc., is the duly Appointed Trustee. The total amount of the unpaid balance of the obligations secured by the property to be sold and reasonable estimated costs, expenses and advances at the time of the initial publication of the Notice of Trustee's Sale is estimated to be $4,435,772. However, prepayment premiums, accrued interest and advances will increase this figure prior to sale. The Beneficiary may bid at th sale, which bid may include all or part of the amount. Potential Bidders will be bidding on a lien, not on the property itself. Placing the highest bid at a Trustee auction does not automatically entitle a bidder to free and clear ownership of the property. The lien being auctioned off may be a junior lien. The highest bidder at the auction is or may be responsible for paying off all liens senior to the lien being auctioned off, before it can receive clear title to the property. The Trustee may be reached atL Lisa Rohrbacker Trustee Sales Officer Special Default Services, Inc. Duly Appointed Successor Trustee Red Hill Avenue Irvine, CA 92614 Tel: (844) 706-4182 Sale information can be obtained on line at http://www.priorityposting.com MIG LLC: Files Schedules of Assets and Liabilities -------------------------------------------------- MIG LLC, fka Metromedia International Group Inc., filed with the U.S. Bankruptcy Court for the Northern District of California its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property 15,939,125 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $252,400,000 E. Creditors Holding Unsecured Priority Claims 0 F. Creditors Holding Unsecured Non-priority Claims 1,313,467 ----------- ----------- TOTAL $15,939,125 $253,713,467 About MIG LLC Formerly operating under the name "Metromedia International Group, Inc.," MIG LLC -- http://www.migllc-group.com/-- owned and operated and sold dozens of companies in diverse industries, including entertainment, photo finishing, garden equipment and sporting goods, until the late 1990s. In 1997 and 1998, MIG consummated the sale of substantially all of its U.S.-based entertainment assets and began focusing on expanding into emerging communications and media businesses. By 2005, all of MIG's operating businesses were located in the Republic of Georgia and operated through its subsidiaries. MIG LLC and affiliate ITC Cellular, LLC, filed for Chapter 11 bankruptcy protection on June 30, 2014. The cases are currently jointly administered under Bankr. D. Del. Lead Case No. 14-11605. As of the bankruptcy filing, MIG's sole valuable asset, beyond its existing cash, is its indirect interest in Magticom Ltd. The cases are assigned to Judge Kevin Gross. Headquartered in Tbilisi, Georgia, Magticom is the leading mobile telephony operator in Georgia and is also the largest telephone operator in Georgia. Magticom serves 2.4 million subscribers with a network that covers 97% of the populated regions in Georgia. Magticom is owned by International Telcell Cellular, LLC, which is 46% owned by MIG unit ITC Cellular, 51% owned by Dr. George Jokhtaberidze, and 3% owned by Gemstone Management Ltd. Formerly known as MIG, Inc., MIG was a debtor in a previous case (Bankr. D. Del. Case NO. 09-12118). It obtained approval of its reorganization plan in November 2010. The Debtors have tapped Greenberg Traurig LLP as counsel, Fox Rothschild Inc. as financial advisor; Cousins Chipman and Brown, LLP as conflicts counsel; and Prime Clerk LLC as claims and notice agent and administrative advisor. The Debtors has obtained interim Court approval to retain Natalia Alexeeva as chief restructuring officer. A three-member panel has been appointed in these cases to serve as the official committee of unsecured creditors, consisting of Walter M. Grant, Paul N. Kiel, and Lawrence P. Klamon. MINI MASTER: Plan Filing Deadline Extended to Oct. 11 ----------------------------------------------------- The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico extended the exclusive period of Mini Master Concrete Services Inc. to file a Chapter 11 plan of reorganization and disclosure statement until Oct. 11, 2014. As reported in the Troubled Company Reporter on July 21, 2014, the Debtor told the Court that it is analyzing these alternatives: a) The opening of new locations at Aguadilla and Arecibo, Puerto Rico, in order to increase its sales. b) The sale or surrender of assets to secured creditors. c) A joint venture with another company to re-establish its manufacturing plant in Toa Baja, Puerto Rico. About Mini Master Concrete Mini Master Concrete aka Mini Master aka Empresas Master filed a Chapter 11 petition (Bankr. D.P.R. Case No. 13-10302) on Dec. 11, 2013, in Old San Juan, Puerto Rico. Charles A. Cuprill, PSC Law Office, also serves as counsel to Mini Master Concrete. The petition was signed by Carmen Betancourt, president. Affiliate Master Aggregates Toa Baja Corporation also filed a Chapter 11 petition (Bankr. D.P.R. Case No. 13-10305) in Old San Juan, Puerto Rico on Dec. 11, 2013. The Debtor disclosed $11,125,939 in assets and $10,148,437 in liabilities. MOBILESMITH INC: Incurs $1.6 Million Net Loss in Second Quarter --------------------------------------------------------------- Mobilesmith, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.66 million on $194,783 of total revenues for the three months ended June 30, 2014, as compared with a net loss of $23.25 million on $60,753 of total revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $3.26 million on $382,728 of total revenues as compared with a net loss of $24.68 million on $125,208 of total revenues for the same period last year. As of June 30, 2014, the Company had $2.23 million in total assets, $29.91 million in total liabilities and a $27.67 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/3vNhh8 About MobileSmith Inc. MobileSmith, Inc. (formerly, Smart Online, Inc.) was incorporated in the State of Delaware in 1993. The Company changed its name to MobileSmith, Inc., effective July 1, 2013. The Company develops and markets software products and services tailored to users of mobile devices. The Company's flagship product is The MobileSmithTM Platform. The MobileSmithTM Platform is an innovative, patents pending mobile app development platform that enables organizations to rapidly create, deploy, and manage custom, native smartphone apps deliverable across iOS and Android mobile platforms. In their report on the consolidated financial statements for the year ended Dec. 31, 2013, Cherry Bekaert LLP expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has suffered recurring losses from operations and has a working capital deficiency as of Dec. 31, 2013. The Company reported a net loss of $27.53 million on $339,039 of total revenues in 2013, compared with a net loss of $4.4 million on $147,468 of total revenues in 2012. MONTREAL MAINE: Disaster Findings Unlikely to Mark Final Chapter ---------------------------------------------------------------- Paul Vieira, writing for The Wall Street Journal, reported that Canadian investigators will reveal what they believe went wrong in the early hours of July 6, 2013 when a crude-carrying train derailed in Lac-Megantic, killing 47 people and wiping out the center of the small Quebec town. According to the report, while investigators' findings will likely answer some questions about the events leading up to the crash, they are unlikely to assign blame or mark the final chapter in a tragedy that has pushed policymakers in the U.S. and Canada to move swiftly to address the risks of shipping crude by rail. About Montreal Maine Montreal, Maine & Atlantic Railway Ltd., the railway company that operated the train that derailed and exploded in July 2013, killing 47 people and destroying part of Lac-Megantic, Quebec, sought bankruptcy protection in U.S. Bankruptcy Court in Bangor, Maine (Case No. 13-10670) on Aug. 7, 2013, with the aim of selling its business. Its Canadian counterpart, Montreal, Maine & Atlantic Canada Co., meanwhile, filed for protection from creditors in Superior Court of Quebec in Montreal. Robert J. Keach, Esq., at Bernstein, Shur, Sawyer, and Nelson, P.A., has been named as chapter 11 trustee. His firm serves as his chapter 11 bankruptcy counsel, led by Michael A. Fagone, Esq., and D. Sam Anderson, Esq. Development Specialists, Inc., serves as the Chapter 11 trustee's financial advisor. Gordian Group, LLC, serves as the Chapter 11 Trustee's investment banker. U.S. Bankruptcy Judge Louis H. Kornreich has been assigned to the U.S. case. The Maine law firm of Verrill Dana served as counsel to MM&A. It now serves as counsel to the Chapter 11 Trustee. Justice Martin Castonguay oversees the case in Canada. The Canadian Transportation Agency suspended the carrier's operating certificate after the accident, due to insufficient liability coverage. The town of Lac-Megantic, Quebec, has sought financial aid to restore the gutted community and a civil complaint alleges a failure to take steps to prevent a derailment. In the Canadian case, Andrew Adessky at Richter Consulting has been appointed CCAA monitor. The CCAA Monitor is represented by Sylvain Vauclair at Woods LLP. MM&A Canada is represented by Patrice Benoit, Esq., at Gowling LaFleur Henderson LLP. The U.S. Trustee appointed a four-member official committee of derailment victims. The Official Committee is represented by: Richard P. Olson, Esq., at Perkins Olson; and Luc A. Despins, Esq., at Paul Hastings LLP. There's also an unofficial committee of wrongful death claimants consisting of representatives of the estates of the 46 victims. This group is represented by George W. Kurr, Jr., Esq., at Gross, Minsky & Mogul, P.A.; Daniel C. Cohn, Esq., at Murtha Cullina LLP; Peter J. Flowers, Esq., at Meyers & Flowers, LLC; Jason C. Webster, Esq., at The Webster Law Firm; and Mitchell A. Toups, Esq., at Weller, Green Toups & Terrell LLP. After the U.S. Trustee formed the Official Committee, the ad hoc committee filed papers asking the U.S. Court to have the official committee disbanded. The ad hoc group said it represents 46 victims of the disaster. On Jan. 23, 2014, the Debtors won authorization to sell substantially all of their assets to Railroad Acquisition Holdings LLC, an affiliate of New York-based Fortress Investment Group, for $15.7 million. The Bankruptcy Courts in the U.S. and Canada approved the sale. The Fortress unit is represented by Terence M. Hynes, Esq., and Jeffrey C. Steen, Esq., at Sidley Austin LLP. On Jan. 29, 2014, an ad hoc group of wrongful-death claimants submitted a plan, which would give 75% of the $25 million in available insurance to the families of those who died after an unattended train derailed in Lac-Megantic, Quebec, in July. The other 25% would be earmarked for claimants seeking compensation for property that was damaged when much of the town burned. Former U.S. Senator George Mitchell, a Democrat who represented Maine in the U.S. Senate from 1980 to 1995 and who is now chairman emeritus of law firm DLA Piper LLP, would administer the plan and lead the effort to wrap up MM&A's Chapter 11 bankruptcy. As reported by the Troubled Company Reporter on April 3, 2014, Judge Kornreich ruled that the unofficial committee of wrongful death claimants and its counsel have failed to comply with Rule 2019 of the Federal Rules of Bankruptcy Procedure, and as a result of that failure, the Unofficial Committee and its counsel will not be heard on any pending matter in the case. As reported by the TCR on April 11, 2014, Judge Kornreich rejected the disclosure statement for the Plan filed by the ad hoc group of wrongful-death claimants, holding that the Plan is flawed and unconfirmable. MOSS FAMILY: Gets Interim Approval to Use Bank's Cash Collateral ---------------------------------------------------------------- The Hon. Harry C. Dees, Jr., of the U.S. Bankruptcy Court for the Northern District of Indiana issued an interim order authorizing Moss Family Limited Partnership and Beachwalk LP to use cash collateral of Horizon Bank N.A. The Debtor will provide adequate protection to the bank. 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: Court Moves DIP Financing Hearing to Sept. 17 ---------------------------------------------------------- The Hon. Harry C. Dees, Jr., of the U.S. Bankruptcy Court for the Northern District of Indiana rescheduled hearing to approve Moss Family Limited Partnership and Beachwalk LP's request to access secured financing from Aug. 12, 2014, to Sept. 17, 2014. 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. MPM SILICONES: Wants Exclusivity Periods Extended for 60 Days ------------------------------------------------------------- MPM Silicones, LLC, et al., ask the U.S. Bankruptcy Court for the Southern District of New York to extend exclusive periods to file a plan of reorganization through and including October 10, 2014, and to solicit acceptances for that plan through and including December 9, 2014. The Debtors cited these reasons for their requested extensions: a. The size and complexity of the Debtors' chapter 11 cases support a finding of "cause" to extend the Exclusive Periods. These chapter 11 cases are large and complex. The Debtors' cases involve twelve debtor entities that have over $4,114 million in consolidated outstanding indebtedness (including over $2,950 million of secured debt), and thousands of employees, customers, vendors and contract counterparties worldwide. b. The Debtors have made significant and material progress in their Chapter 11 cases and do not seek an extension of the Exclusive Periods as a means to exert pressure on the relevant parties-in-interest, but rather to ensure that the Exclusive Periods extend beyond the confirmation and effectiveness of the Plan should the Court determine to approve it. Because the Plan contains numerous conditions precedent to Plan confirmation and effectiveness, the precautionary extension of the Exclusive Periods that the Debtors are seeking will provide the Debtors with ample breathing space in the unlikely event that one of these conditions is not timely satisfied, including confirmation of the Plan. c. The Debtors continue to pay in the ordinary course their undisputed postpetition obligations. As such, the requested extension of the Exclusive Periods will not prejudice the legitimate interests of creditors in these cases, and this factor weighs in favor of allowing the Debtors to extend the Exclusive Periods. d. The Debtors have already filed the Plan and the Plan Supplement. The Debtors and their professionals are continuing their good faith negotiations with various creditor constituents, including the Debtors' unsecured creditors and subordinated noteholders. e. The Debtors have no ulterior motive in seeking an extension of the Exclusive Periods. The Debtors believe that they have worked diligently over the past four months to effectuate their reorganization and consummate the Plan. f. The Debtors commenced these cases on April 13, 2014, less than four months ago. This is the first request the Debtors have made for an extension of the Exclusive Periods. g. Termination of the Debtors' Exclusive Periods could adversely impact the Debtors' business operations and the progress of these cases. If this Court were to deny the Debtors' request for an extension of the Exclusive Periods, any party-in-interest then would be free to propose a plan of reorganization for each of the Debtors, which would likely foster a chaotic environment with no central focus, and may cause substantial harm to the Debtors' restructuring efforts. The Honorable Robert D. Drain will hear the Debtors' request on Aug. 18, 2014 at 10:00 a.m. in White Plains, New York. About Momentive Performance Momentive Performance is one of the world's largest producers of silicones and silicone derivatives, and is a global leader in the development and manufacture of products derived from quartz and specialty ceramics. Momentive has a 70-year history, with its origins as the Advanced Materials business of General Electric Company. In 2006, investment funds affiliated with Apollo Global Management, LLC, acquired the company from GE. As of Dec. 31, 2013, the Company had 4,500 employees worldwide, of which 46% of the Company's employees are members of a labor union or are represented by workers' councils that have collective bargaining agreements. Momentive Performance Materials Inc., Momentive Performance Materials Holdings Inc., and their affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 14-22503) on April 14, 2014, with a deal with noteholders on a balance-sheet restructuring. As of Dec. 31, 2013, the Debtors had $4.114 billion of consolidated outstanding indebtedness, including payments due within the next 12 months and short-term borrowings. The Debtors said that the restructuring will eliminate $3 billion in debt. The Debtors have tapped Willkie Farr & Gallagher LLP as bankruptcy counsel with regard to the filing and prosecution of these chapter 11 cases; Sidley Austin LLP as special litigation counsel; Moelis & Company LLC as financial advisor and investment banker; AlixPartners, LLP as restructuring advisor; PricewaterhouseCoopers as auditor; and Crowe Horwath LLP as benefit plan auditor. Kurtzman Carson Consultants LLC is the notice and claims agent. The U.S. Trustee for Region 2 appointed seven members to serve on the Official Committee of Unsecured Creditors of the Debtors' cases. Klee, Tuchin, Bogdanoff & Stern LLP serves as its counsel. FTI Consulting, Inc., serves as its financial advisor. Rust Consulting Omni Bankruptcy serves as its information agent. MPM SILICONES: Lease Decision Period Extended Thru Nov. 10 ---------------------------------------------------------- MPM Silicones, LLC, et al., obtained a Bankruptcy Court order for an extension of the period by which they may assume or reject their unexpired non-residential real property leases through and including November 10, 2014. About Momentive Performance Momentive Performance is one of the world's largest producers of silicones and silicone derivatives, and is a global leader in the development and manufacture of products derived from quartz and specialty ceramics. Momentive has a 70-year history, with its origins as the Advanced Materials business of General Electric Company. In 2006, investment funds affiliated with Apollo Global Management, LLC, acquired the company from GE. As of Dec. 31, 2013, the Company had 4,500 employees worldwide, of which 46% of the Company's employees are members of a labor union or are represented by workers' councils that have collective bargaining agreements. Momentive Performance Materials Inc., Momentive Performance Materials Holdings Inc., and their affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 14-22503) on April 14, 2014, with a deal with noteholders on a balance-sheet restructuring. As of Dec. 31, 2013, the Debtors had $4.114 billion of consolidated outstanding indebtedness, including payments due within the next 12 months and short-term borrowings. The Debtors said that the restructuring will eliminate $3 billion in debt. The Debtors have tapped Willkie Farr & Gallagher LLP as bankruptcy counsel with regard to the filing and prosecution of these chapter 11 cases; Sidley Austin LLP as special litigation counsel; Moelis & Company LLC as financial advisor and investment banker; AlixPartners, LLP as restructuring advisor; PricewaterhouseCoopers as auditor; and Crowe Horwath LLP as benefit plan auditor. Kurtzman Carson Consultants LLC is the notice and claims agent. The U.S. Trustee for Region 2 appointed seven members to serve on the Official Committee of Unsecured Creditors of the Debtors' cases. Klee, Tuchin, Bogdanoff & Stern LLP serves as its counsel. FTI Consulting, Inc., serves as its financial advisor. Rust Consulting Omni Bankruptcy serves as its information agent. NII HOLDINGS: Skips $118.8-Mil. Senior Note Interest Payment ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that NII Holdings Inc., the owner of Latin American telecommunications systems, didn't make a $118.8 million payment due Aug. 15 on senior notes. According to Bloomberg, NII said in a regulatory filing that it's in "preliminary discussions" with holders of the notes about a restructuring entailing the exchange of the notes for equity or new debt and the agreement would require implementation through a Chapter 11 filing. In other news, Stephanie Gleason, writing for Daily Bankruptcy Review, reported that NII Holdings has an agreement to sell its Chilean subsidiary, but negotiations continue with bondholders as the Latin American wireless provider attempts to restructure its debt load. According to DBR, Grupo Veintitres, an Argentine media company; Optimum Advisors, a U.S. private-equity firm; and ISM Capital, a London-based investment firm that focuses on emerging markets, have formed a joint venture to acquire the stock of Nextel Chile S.A., NII said in documents filed with the U.S. Securities and Exchange Commission. The $800 million in 10 percent senior unsecured notes due 2016 last traded on Aug. 15 for 19.125 cents on the dollar, to yield 135.973 percent, Bloomberg related, citing Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The stock closed on Aug. 15 at 13.77 cents, down 8.6 percent in New York trading, a record closing low, Bloomberg said. About NII Holdings With headquarters in Reston, Virginia, NII Holdings is an international wireless operator with more than 7 million largely post-pay, business subscribers. * * * As reported by the TCR on March 5, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Reston, Va.-based wireless carrier NII Holdings Inc. (NII) to 'CCC' from 'CCC+'. "The downgrade follows the company's poor fourth-quarter 2013 results that were below our expectations, and its disclosure that its auditors have uncertainty about the company's ability to continue as a going concern," said Standard & Poor's credit analyst Allyn Arden. The TCR also reported on March 5, 2014, that Moody's Investors Service downgraded the corporate family rating (CFR) of NII Holdings Inc. ("NII" or "the company") to Caa1 from B3. The downgrade reflects the company's poor 2013 operating performance and the risk that the company will violate the covenants governing its Mexican and Brazilian subsidiary debt, which could trigger an event of default for up to $4.4 billion of debt issued by intermediate holding companies NII Capital Corp. and NII International Telecom S.C.A. The TCR, on Aug. 14, 2014, reported that Moody's Investors Service has downgraded the corporate family rating (CFR) of NII Holdings Inc. ("NII" or "the company") to Caa2 from Caa1. The downgrade reflects Moody's expectation that bankruptcy filing is more likely as a result of the company's inability to find a strategic solution to extend its liquidity. The company is currently not in compliance with certain financial covenants in its existing debt obligations which could trigger an event of default for up to $4.4 billion of debt issued by intermediate holding companies NII Capital Corp. ("NII Capital") and NII International Telecom S.C.A ("NIII Telecom"). At the same time, Moody's has lowered the probability of default rating (PDR) to Caa2-PD from Caa1-PD while affirming the SGL-4 speculative grade liquidity. As part of the rating action, Moody's has also downgraded the unsecured notes at NII Capital to Caa3 from Caa2 and the unsecured notes at NII Telecom to Caa1 from B3. Outlook remains negative. The Aug. 15, 2014 version of the TCR reported that Standard & Poor's Ratings Services lowered the corporate credit rating on Reston, Va.-based wireless carrier NII Holdings Inc. to 'CC' from 'CCC'. The outlook is negative. NORTEL NETWORKS: Judge to Press Creditors to End $7 Billion Fight ----------------------------------------------------------------- Steven Church, writing for Bloomberg News, reported that U.S. Bankruptcy Judge Kevin Gross in Wilmington, Delaware, said he may pressure creditors fighting over $7 billion to reach a deal in a closed-door meeting. According to the report, Judge Gross told U.S. bondholders and a monitor for Nortel's Canadian parent in a court hearing on Aug. 9 that he wants to meet with them for several hours and proposed an October date. A few minutes after the hearing ended, the company's 10.125 bonds that were due last year fell almost 1 percent to 116 cents on the dollar, the report said, citing Trace, the bond price reporting system of the Financial Industry Regulatory Authority. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation and its various affiliated entities provided next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel did business in more than 150 countries around the world. Nortel Networks Limited was the principal direct operating subsidiary of Nortel Networks Corporation. On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parent Nortel Networks Corporation, NNI's direct corporate parent Nortel Networks Limited and certain of their Canadian affiliates commenced a proceeding with the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (Canada) seeking relief from their creditors. Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. That same day, the Monitor sought recognition of the CCAA Proceedings in U.S. Bankruptcy Court (Bankr. D. Del. Case No. 09-10164) under Chapter 15 of the U.S. Bankruptcy Code. That same day, NNI and certain of its affiliated U.S. entities filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10138). In addition, the High Court of England and Wales placed 19 of NNI's European affiliates into administration under the control of individuals from Ernst & Young LLP. Other Nortel affiliates have commenced and in the future may commence additional creditor protection, insolvency and dissolution proceedings around the world. On May 28, 2009, at the request of administrators, the Commercial Court of Versailles, France, ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in U.S. Bankruptcy Court for recognition of the English Proceedings as foreign main proceedings under Chapter 15. U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and 15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as Chapter 15 petitioner's counsel. In the Chapter 11 case, James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as the U.S. Debtors' general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. The United States Trustee appointed an Official Committee of Unsecured Creditors in respect of the U.S. Debtors. An ad hoc group of bondholders also was organized. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. An Official Committee of Retired Employees and the Official Committee of Long-Term Disability Participants tapped Alvarez & Marsal Healthcare Industry Group as financial advisor. The Retiree Committee is represented by McCarter & English LLP as Delaware counsel, and Togut Segal & Segal serves as the Retiree Committee. The Committee retained Alvarez & Marsal Healthcare Industry Group as financial advisor, and Kurtzman Carson Consultants LLC as its communications agent. Several entities, particularly, Nortel Government Solutions Incorporated and Nortel Networks (CALA) Inc., have material operations and are not part of the bankruptcy proceedings. As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated assets of $11.6 billion and consolidated liabilities of $11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI had assets of about $9 billion and liabilities of $3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about $4.2 billion of unsecured public debt. Since the commencement of the various insolvency proceedings, Nortel has sold its business units and other assets to various purchasers. Nortel has collected roughly $9 billion for distribution to creditors. Of the total, $4.5 billion came from the sale of Nortel's patent portfolio to Rockstar Bidco, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July 2011. Nortel has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. Judge Gross and the court in Canada scheduled trials in 2014 on how to divide proceeds among creditors in the U.S., Canada, and Europe. NORTEL NETWORKS: Canadian Arm Granted Time To Fight Interest Deal ----------------------------------------------------------------- Law360 reported that a Delaware bankruptcy judge granted Nortel Networks Corp.'s Canadian units additional time to develop their objection to a settlement between bondholders and the defunct telecom's U.S. arm that would cap post-petition interest payments at just more than $1 billion. According to the report, at a telephonic hearing in Wilmington, U.S. Bankruptcy Judge Kevin Gross agreed to Canadian debtors' request to push back the Aug. 11 objection deadline for the proposed deal, but reined in the scope of discovery they sought. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation and its various affiliated entities provided next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel did business in more than 150 countries around the world. Nortel Networks Limited was the principal direct operating subsidiary of Nortel Networks Corporation. On Jan. 14, 2009, Nortel Networks Inc.'s ultimate corporate parent Nortel Networks Corporation, NNI's direct corporate parent Nortel Networks Limited and certain of their Canadian affiliates commenced a proceeding with the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act (Canada) seeking relief from their creditors. Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. That same day, the Monitor sought recognition of the CCAA Proceedings in U.S. Bankruptcy Court (Bankr. D. Del. Case No. 09-10164) under Chapter 15 of the U.S. Bankruptcy Code. That same day, NNI and certain of its affiliated U.S. entities filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10138). In addition, the High Court of England and Wales placed 19 of NNI's European affiliates into administration under the control of individuals from Ernst & Young LLP. Other Nortel affiliates have commenced and in the future may commence additional creditor protection, insolvency and dissolution proceedings around the world. On May 28, 2009, at the request of administrators, the Commercial Court of Versailles, France, ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in U.S. Bankruptcy Court for recognition of the English Proceedings as foreign main proceedings under Chapter 15. U.S. Bankruptcy Judge Kevin Gross presides over the Chapter 11 and 15 cases. Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as Chapter 15 petitioner's counsel. In the Chapter 11 case, James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as the U.S. Debtors' general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. The United States Trustee appointed an Official Committee of Unsecured Creditors in respect of the U.S. Debtors. An ad hoc group of bondholders also was organized. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. An Official Committee of Retired Employees and the Official Committee of Long-Term Disability Participants tapped Alvarez & Marsal Healthcare Industry Group as financial advisor. The Retiree Committee is represented by McCarter & English LLP as Delaware counsel, and Togut Segal & Segal serves as the Retiree Committee. The Committee retained Alvarez & Marsal Healthcare Industry Group as financial advisor, and Kurtzman Carson Consultants LLC as its communications agent. Several entities, particularly, Nortel Government Solutions Incorporated and Nortel Networks (CALA) Inc., have material operations and are not part of the bankruptcy proceedings. As of Sept. 30, 2008, Nortel Networks Corp. reported consolidated assets of $11.6 billion and consolidated liabilities of $11.8 billion. The Nortel Companies' U.S. businesses are primarily conducted through Nortel Networks Inc., which is the parent of majority of the U.S. Nortel Companies. As of Sept. 30, 2008, NNI had assets of about $9 billion and liabilities of $3.2 billion, which do not include NNI's guarantee of some or all of the Nortel Companies' about $4.2 billion of unsecured public debt. Since the commencement of the various insolvency proceedings, Nortel has sold its business units and other assets to various purchasers. Nortel has collected roughly $9 billion for distribution to creditors. Of the total, $4.5 billion came from the sale of Nortel's patent portfolio to Rockstar Bidco, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July 2011. Nortel has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. Judge Gross and the court in Canada scheduled trials in 2014 on how to divide proceeds among creditors in the U.S., Canada, and Europe. OHCMC-OSWEGO LLC: Has New Stalking Horse Bidder ----------------------------------------------- Sherri Toub, substituting for Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Turnstone Group LLC's REO Funding Solutions V LLC was approved as the replacement stalking horse bidder for more than 487 acres of undeveloped land in Oswego, Illinois, owned by an affiliate of Oliver-Hoffmann Corp. According to the report, REO Funding will buy the property for about $11.1 million unless a better bid emerges at an auction scheduled for Sept. 16. About OHCMC-Oswego OHCMC-Oswego, LLC, is an Illinois limited liability company that was formed on July 12, 2005 to, inter alia, acquire, develop and sell a series of real estate developments. It is wholly owned by Oliver-Hoffman Corporation. Its principal place of business is located at 3108 S. Rt. 59, Ste. 124-373, Naperville, Illinois. OHCMC-Oswego filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ill. Case No. 14-05349) in Chicago on Feb. 19, 2014, with plans to sell its assets. Camille O. Hoffmann signed the petition as president of managing and sole member. The Debtor disclosed $92,268 plus an unknown amount in assets and $56,782,127 in liabilities. The Hon. Carol A. Doyle presides over the case. The Debtor is represented by David C. Gustman,, Esq., at Freeborn & Peters LLP. No trustee, examiner or creditors' committee has been appointed in the case. * * * OHCMC-Oswego, LLC, filed a Modified Plan of Liquidation and Disclosure Statement on June 30, 2014. According to the latest plan documents, the Debtor's assets will be sold pursuant to the Court-approved sale procedures. The Debtor anticipates a sale process that will allow its real estate broker adequate time to market the properties to ensure the Debtor receives the highest and best offer for the properties. The proceeds of the sale of the properties will be used to satisfy the secured claims of BMO and PNC. The Debtor will distribute a set sum of money that is currently held in an escrow account with the Village of Oswego and totaling $29,408 to unsecured creditors in accordance with the Bankruptcy Code's priority scheme. The Debtor currently has an offer from L.B. Anderson Construction, Inc., the stalking horse bidder, to purchase the properties for $11,750,000, absent higher and better offers. The Debtor will solicit written bids from other potential bidders with all such bids to be received no later than 4:00 p.m. on Sept. 12, 2014. If the Debtor receives two or more qualified bids for the assets, the debtor will conduct an auction. the Debtor will determine the winning bid in its reasonable discretion. It will also select the back-up bid, to be utilized, in the event that the best bid is unable to timely close. The Bankruptcy Court has scheduled a joint hearing with respect to the sufficiency of the Disclosure Statement and confirmation of the Plan for Aug. 6, 2014. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/OHCMC-OSWEGO_80_dsmodifiedplan.pdf ORECK CORP: OAC and Royal Want Protection From Class Actions ------------------------------------------------------------ OAC Acquisition Company, LLC and Royal Appliance Mfg. Co. want to prevent third parties from bringing them and their dissolved former affiliate, TTI Floor Care North America, Inc., into a lawsuit based on liabilities that the Bankruptcy Court's sale order makes clear they did not assume. Robert J. Welhoelter, Esq., in Nashville, Tennessee, explains that OAC Acquisition and Royal purchased substantially all of the assets of Oreck Corporation and some of its subsidiaries on or July 24, 2013. OAC Acquisition and Royal purchased the assets "free and clear" of liens, claims, encumbrances, and interests, including rights or claims based on successor or transferee liability. TTI no longer existed at that time, so it neither bought nor assumed anything. Before the bankruptcy filing and at the time of the sale to OAC Acquisition and Royal, Oreck were defendants in a consolidated class action entitled In re: Oreck Corporation Halo Vacuum and Air Purifiers Marketing and Sales Practices Litigation, filed in the United States District Court for the Central District of California. The class action lawsuit alleges false representations about the ability of some products to eliminate germs, viruses, bacteria, mold, and allergens. Mr. Welhoelter notes that while the class action plaintiffs attempt to recast their claims against OAC Acquisition, Royal, and TTI as "warranty" claims, the plaintiffs are not claiming any defect in the manufacturing, design, or performance of Oreck's products. Rather, they allege that Oreck falsely labeled and advertised their products. OAC Acquisition and Royal declined to assume any liability for the claims alleged in the class action lawsuit. Instead, OAC Acquisition and Royal limited their assumption of liabilities to those liabilities expressly set forth in the asset purchase agreement. Mr. Welhoelter points out that the assumed liabilities included the warranted obligation to repair or replace defective materials and workmanship, but, those assumed "warranty" obligations excluded all liabilities arising from statements in Oreck's advertising, marketing material, product catalogs, point of sale material and the like -- precisely the claims that the plaintiffs assert in the class action lawsuit. On August 5, 2014, the plaintiffs filed an amended complaint wherein they attempt to add OAC Acquisition, Royal, and TTI as additional defendants despite the fact that the sale to OAC Acquisition and Royal was "free and clear" of those liabilities, and TTI was not a party to the sale transaction. Mr. Welhoelter points out that while the plaintiffs recharacterized their false advertising/labeling claims as warranty claims in an effort to circumvent the sale order, there is no doubt that those recharacterized warranty claims are based solely on the statements in Oreck's advertising, marketing material, product catalogs, and similar materials that the sale order expressly states OAC Acquisition and Royal did not assume. Accordingly, OAC Acquisition and Royal ask the Court to confirm that: (a) the sale of Oreck's assets to OAC Acquisition and Royal was "free and clear" of the claims alleged in the class action lawsuit; (b) none of OAC Acquisition, Royal, nor TTI assumed through the bankruptcy proceedings any liabilities that derive from the false advertising and false labeling allegations characterized as "warranties" and asserted against them in the amended complaint; and (c) OAC Acquisition and Royal assumed only the limited warranty obligations relating to defects in material and workmanship as set forth in Oreck's written warranties, and that those obligations do not include liability for claims alleged in the class action lawsuit. OAC Acquisition and Royal are represented by: Robert J. Welhoelter, Esq. 4525 Harding Pike, Suite 105 Nashville, TN 37205 Tel: 615-620-4343 Fax: 615-620-4581 E-mail: rjwelho@gmail.com - and - Bruce R. Kraus, Esq. Benjamin D. Feder, Esq. Gilbert R. Saydah Jr., Esq. KELLEY DRYE & WARREN LLP 101 Park Avenue New York, NY 10178 Tel: 212-808-7800 Fax: 212-808-7897 E-mail: KDWBankruptcyDepartment@kelleydrye.com - and - Reinhart Boerner Van Deuren S.C. Scott W. Hansen, Esq. Laura A. Brenner, Esq. L. Katie Mason, Esq. 1000 North Water Street, Suite 1700 Milwaukee, WI 53202 Tel: 414-298-1000 Fax: 414-298-8097 About Oreck Corp. Oreck Corporation and eight affiliates sought Chapter 11 protection (Bankr. M.D. Tenn. Lead Case No. 13-04006) in Nashville, Tennessee, on May 6, 2013, with plans to sell the business as a going concern. Oreck has been in the business of manufacturing, marketing and selling vacuum cleaners and related products since the late 1960s. The corporate offices are located in Nashville, and the manufacturing and call center is located in Cookeville, Tennessee. Oreck has 70 employees in Nashville, 250 employees at its plant in Cookeville and 325 employees operating 96 company-owned and managed retail stores. The Debtor disclosed $18,013,249 in assets and $14,932,841 plus an unknown amount in liabilities as of the Chapter 11 filing. William L. Norton III, Esq., and Alexandra E. Dugan, Esq., at Bradley Arant Boult Cummings LLP, serve as counsel to the Debtor. BMC Group Inc. is the claims and notice agent. Sawaya Segalas & Co., LLC serves as financial advisor. The U.S. Trustee appointed six creditors to the Official Committee of Unsecured Creditors. Daniel H. Puryear, Esq., at Puryear Law Group, and Sharon L. Levine, Esq., and Kenneth A. Rosen, Esq., at Lowenstein Sandler LLP represent the Committee. The Committee tapped to retain Gavin/Solmonese LLC as its financial advisor. In July 2013, Royal Appliance Mfg. Co. (RAM), a subsidiary of the TTI Group, finalized the purchase of Oreck Corp.'s assets. The Bankruptcy Court approved the sale on July 16, 2013. Royal, the maker of Dirt Devil floor-care products, won the auction for Oreck Corp. The second-place bidder was the Oreck family, which sold the business in a $272 million transaction in 2003. The Oreck family made the first bid at auction at $21.9 million, including $14.5 million cash. The terms of Royal's winning bid weren't disclosed publicly, according to a Bloomberg News report. Royal was acquired in 2003 by Hong Kong-based Techtronic Industries Co., the maker of Hoover vacuum cleaners. ORMET CORP: 11th DIP Amendment Approval Sought ---------------------------------------------- BankruptcyData reported that Ormet Corp. filed with the U.S. Bankruptcy Court a motion for entry of an order (a) authorizing the Debtors to enter into the eleventh amendment to the term loan D.I.P. credit agreement. According to BData, the motion explains, "The Eleventh Term DIP Amendment would provide up to $1,500,000 in additional funding under the Loan Agreement (the 'Supplemental Term DIP financing'), subject to certain closing conditions. Specifically, the Eleventh Term DIP Amendment provides for the following: The amendment of the Loan Agreement to provide for additional Loans in the amount of $1,500,000, which constitutes the Supplemental Term DIP Financing. A new Maturity Date of October 31, 2014....The total amount of funding under the Loan Agreement will increase to $56,500,000. For the avoidance of doubt, as of the date hereof, all previously outstanding borrowings under the Loan Agreement have been repaid in full and, following approval by the Court of the Eleventh Term DIP Amendment only $1,500,000 will be available to be drawn by the Debtors in accordance with the Loan Agreement, as amended....Absent approval of the Supplemental Term DIP financing, the Lenders are unwilling to provide additional funds to the Debtors. The Debtors will require access to approximately $1,500,000 of the additional funds from the Lenders to complete the wind down of these estates. Without the relief requested herein, the wind down costs will not be fully funded and the Debtors would be forced to suspend the wind down entirely and consider alternate options, to the detriment of all creditors and these estates." About Ormet Corp. Aluminum producer Ormet Corporation, along with affiliates, filed for Chapter 11 protection (Bankr. D. Del. Case No. 13-10334) on Feb. 25, 2013, with a deal to sell the business to a portfolio company owned by private investment funds managed by Wayzata Investment Partners LLC. Headquartered in Wheeling, West Virginia, Ormet -- http://www.ormet.com/-- is a fully integrated aluminum manufacturer, providing primary metal, extrusion and thixotropic billet, foil and flat rolled sheet and other products. Ormet disclosed assets of $406.8 million and liabilities totaling $416 million. Secured debt of about $180 million includes $139.5 million on a secured term loan and $39.3 million on a revolving credit. Affiliates that separately filed Chapter 11 petitions are Ormet Primary Aluminum Corporation; Ormet Aluminum Mill Products Corporation; Specialty Blanks Holding Corporation; and Ormet Railroad Corporation. Ormet emerged from a prior bankruptcy in April 2005. Lender Wayzata Investment Partners LLC is among existing owners. Others are UBS Willow Fund LLC and Fidelity Leverage Company Stock Fund. In the 2013 case, Ormet is represented in the case by Morris, Nichols, Arsht & Tunnell LLP's Erin R. Fay, Esq., Robert J. Dehney, Esq., Daniel B. Butz, Esq.; and Dinsmore & Shohl LLP's Kim Martin Lewis, Esq., Patrick D. Burns, Esq. Kurtzman Carson Consultants is the claims and notice agent. Evercore's Lloyd Sprung and Paul Billyard serve as investment bankers to the Debtor. An official committee of unsecured creditors was appointed in the case in March 2013. The Committee is represented by Rafael X. Zahralddin, Esq., Shelley A. Kinsella, Esq., and Jonathan M. Stemerman, Esq., at Elliott Greenleaf; and Sharon Levine, Esq., S. Jason Teele, Esq., and Cassandra M. Porter, Esq., at Lowenstein Sandler LLP. In October 2013, the U.S. Trustee filed papers saying the bankruptcy instead should be converted to a liquidation in Chapter 7. The U.S. Trustee said there is no budget and no financing for a wind-down in Chapter 11. In November 2013, the Bankruptcy Court approved on an interim basis Ormet's motion for (a) an interim plan to wind down the Debtors' businesses and protections for certain employees implementing the wind down, (b) authorizing the Debtors to modify employee benefit plans consistent with the wind down plan, and (c) authorizing the Debtors to take any and all actions necessary to implement the wind down plan. In December 2013, Ormet completed a previously approved sale of its alumina smelter in Burnside, Louisiana, to Almatis Inc. for $39.4 million. There was no auction. Completion of a court- approved sale of the business to lender and part owner Wayzata Investment Partners LLC became impossible when Ohio utility regulators refused in October to grant reductions in electricity prices. Wayzata would have acquired the business largely in exchange for debt. Ormet also has sold 32,000 metric tons of alumina for $8.4 million to Glencore AG, and its rights and interests in and to 17,086 MT baked carbon anodes, located at the Debtors' Hannibal, Ohio location, and its rights and interest in and to 34,755 MT baked carbon anodes, located in a storage in Baltimore, Maryland, to Alcoa Materials Management, Inc. In 2014, the Bankruptcy Court issued several interim orders related to the wind-down plan. Those orders authorize the Debtors to make payments through a certain date, as part of implementing the wind-down plan. OVERSEAS SHIPHOLDING: S&P Assigns 'B' Corp. Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Overseas Shipholding Group Inc. (OSG). The outlook is stable. At the same time, S&P assigned its 'BB-' issue-level rating and '1' recovery rating to credit facilities of the company's principal subsidiaries: OSG Bulk Ships Inc.'s (OBS'; the domestic business) $75 million asset-based lending (ABL) facility and $603 million senior secured term loan due 2019, and OSG International Inc.'s (OIN's) $50 million revolving credit facility and $628.375 million senior secured term loan, both due in 2019. The '1' recovery rating indicates S&P's expectation for a very high recovery (90%-100%) in the event of a payment default. S&P also assigned its 'B' issue-level rating and '4' recovery rating to OSG's reinstated notes, which consist of $300 million 8.125% senior unsecured notes due 2018 and $146 million 7.5% senior unsecured notes due 2021 or 2024. The '4' recovery rating indicates S&P's expectation for an average recovery (30%-50%) in the event of a payment default. "The rating on OSG reflects the company's high leverage, even after emerging from bankruptcy, the competitive nature of the shipping industry, and its substantial, albeit reduced, revenue exposure to volatile tanker charter spot markets," said Standard & Poor's credit analyst Michael Durand. The outlook is stable. S&P expects Oversea OSG's financial profile to gradually improve with support from strong contract coverage in its U.S. business and an improved cost structure in its international business. S&P could lower the rating if OSG's earnings decline because of cyclical pressures or if the company's outsourcing plan is not executed as planned, resulting in FFO to debt in the low-single- digit percent area for a sustained period. S&P could raise the rating if OSG's earnings improvement results in FFO to debt in the high-teens percent area for a sustained period. Barring dramatic improvement in international liquid bulk shipping rates, S&P is unlikely to upgrade OSG during the next 12 months. OXBOW CARBON: S&P Lowers Corp. Credit Rating to 'BB-' ----------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on West Palm Beach, Fla.-based Oxbow Carbon LLC to 'BB-' from 'BB'. The outlook is stable. At the same time, in conjunction with the downgrade of the corporate credit rating, S&P lowered the ratings on the company's senior secured $800 million first-lien revolving credit facility, $300 million term loan A, and $350 million term loan B to 'BB' from 'BB+'. The recovery rating on these debt obligations remains '2', indicating S&P's expectation of substantial recovery (70% to 90%) in the event of a payment default. S&P also lowered the ratings on the company's $350 million senior secured second-lien term loan B to 'B+' from 'BB-'. The recovery rating on this debt remains '5', indicating S&P's expectation of modest recovery (10% to 30%) in the event of a payment default. "The downgrade reflects our view that the company's debt leverage will be between 4x to 5x and funds from operations [FFO} to debt will be slightly under 15% in 2014, consistent with an 'aggressive' financial risk profile as per our criteria versus our previous 'significant' financial risk assessment," said Standard & Poor's credit analyst William Ferara. These levels are somewhat weaker than previous expectations of debt leverage of below 4x in 2014. S&P's financial risk assessment also incorporates the company's history of good cash flow generation, its willingness to pursue acquisitions, and its policy of distributing free cash flow to shareholders. Oxbow Carbon is privately held and does not publish its financial statements. Global softness in aluminum and steel markets and economic conditions are pressuring cash flows and thus credit measures. Based on current economic conditions, commodity prices, and demand trends, S&P believes business prospects will not materially change over the next year. S&P expects U.S. GDP to grow by about 2.3% this year and 3% next year, growth in the Asia-Pacific region to remain steady at about 5% over the next one-to-two years, with Eurozone economies growing by about 1% in 2014. "Our ratings also incorporate our assessment of Oxbow's business risk profile as 'fair.' Our assessment incorporates the company's exposure to cyclical end markets and relatively low operating margins, which are partially offset by its diversified business lines, as well as its leading position in both the calcined petroleum coke (primarily used to produce aluminum) and fuel-grade petroleum coke markets. The company also markets carbon and sulphur-based products. Oxbow is geographically diversified, with operations in the U.S., Europe, and Asia. Demand for Oxbow's products is largely driven by steel and aluminum production and therefore is subject to cyclical global demand for those products," S&P noted. The stable outlook reflects S&P's expectation that Oxbow will maintain metrics consistent with an "aggressive" financial risk profile with debt to EBITDA between 4x and 5x in 2014 and into 2015. S&P also expects the company to maintain relatively steady operating and financial performance in its business lines and an adequate liquidity position. S&P could lower its rating if market and price conditions weaken from current levels and S&P expects debt to EBITDA will be sustained above 5x. This could occur if cash flows are further pressured by the global oversupply of key commodities, which would keep prices low and hinder Oxbow's margins and profitability. S&P would raise its rating if debt to EBITDA improves and stays below 4x and FFO to debt climbs to about 20% on a sustained basis. S&P would also expect any improvement in operating conditions would result from higher global commodities prices on better supply and demand conditions. PARAGON OFFSHORE: S&P Revises Outlook & Affirms 'BB' Rating ----------------------------------------------------------- Standard & Poor's Ratings Services said that it has taken the following rating actions following a review of its rated offshore contract drillers: -- S&P has revised the outlook on Diamond Offshore Drilling Inc. to negative from stable and affirmed its 'A' rating on the company; -- S&P has revised the outlook on Paragon Offshore Ltd. to negative from stable and affirmed its 'BB' rating on the company; and -- S&P has affirmed its 'BBB+' rating on Noble Corp. and removed the rating from CreditWatch, where S&P placed it with negative implications on Sept. 25, 2013. The outlook is negative. S&P has taken these rating actions because it believes these companies are vulnerable to weaker credit protection measures over the next 12 to 24 months. Recent weakness in the offshore drilling market prompted Standard & Poor's to review the ratings and outlooks on S&P's rated offshore drillers. Following several years of robust spending on new vessels, drillers are facing the likelihood that capacity will outpace demand at least through 2016. According to Riglogix and Bloomberg, through 2016, there are an estimated 69 floaters entering the market, with just 33 currently contracted (48%), and there are 115 jack-ups entering the market, with just 18 contracted (15%). Driven by the expected supply, customers are bidding down day rates in the mid-water, deepwater, and ultradeepwater market, with the most sophisticated ultra-deepwater drillships, for example, falling to a day rate close to the $500,000 level, from a peak last year typically in excess of $600,000 per day. S&P believes that new capacity will weigh on some issuers more than others. Those most vulnerable are likely to have a relatively higher proportion of the following: -- Mid-water rigs: The risk, in our view, is that older deepwater vessels unable to compete in the deepwater market will increasingly bid for contracts in the mid-water market. S&P believes that this will pressure rates and utilization for mid-water rigs. -- Older and less sophisticated rigs: Additional capacity is likely to exacerbate the dichotomy between newer and higher specification rigs and older rigs. This is because newer rigs can typically drill more challenging wells (i.e., deeper and in harsher conditions) and do so more efficiently and safely. As a result, S&P believes that older rigs will be especially susceptible to weaker day rates and utilization in the future. -- Issuers with near-term contract expirations or new builds without contracts: S&P expects most operators with recontracting risk in 2015 or 2016 to face weaker day rates than existing contracts. At the same time, uncontracted newbuilds could see rates below S&P's expectations, given substantial capacity entering the market. Following S&P's review of offshore contract drillers, the ratings and outlooks on the following issuers remain unchanged: -- Ensco plc: BBB+/Stable/--; -- Rowan Cos. Inc.: BBB-/Stable/--; -- Transocean Inc.: BBB-/Negative/--; -- Atwood Oceanics Inc.: BB/Positive/--; -- Pacific Drilling S.A.: B/Stable/--; -- Hercules Offshore Inc.: B/Stable/-; and -- Vantage Drilling Co.: B-/Stable/--. PHILADELPHIA SCHOOL: Moody's Cuts $3.2BB GO Debt Rating to 'Ba3' ---------------------------------------------------------------- Moody's Investors Service has downgraded the Philadelphia School District, PA to Ba3 from Ba2, affecting $3.2 billion of General Obligation debt; the outlook is negative. Moody's have also affirmed the A1 enhanced ratings on all the district's GO bonds. This action concludes a review for possible downgrade that Moody's initiated on June 6, 2014. The district's bonds are secured by its general obligation unlimited tax pledge. Summary Rating Rationale The downgrade to Ba3 from Ba2 reflects the district's ongoing struggles to continue delivering its core services. As the district has continued to lose enrollment to charter schools and cut its programming, its ability to deliver core services has weakened. The district has very little authority to increase its revenues, which has pressured the quality of its educational services as well as its financial position as charter school costs have increased. The negative outlook reflects Moody's expectation that the district will continue to struggle to find new revenues and fund its core services. The outlook also reflects Moody's expectation that the district will continue to make its debt service payments in full and on time, given the various structural enhancements supporting its debt. The A1 enhanced rating on all of the district's direct general obligation debt reflects Moody's current assessment of the Pennsylvania School District Fiscal Agent Agreement Intercept Program, which provides for the pre-default intercept of state aid in the event of a payment failure by the district. Moody's maintain an enhanced A1 rating on all of the GO-secured debt issued through the State Public School Building Authority, reflecting the SPSBA Lease Intercept Program, through which the state treasurer withholds appropriated state aid and makes payments directly to the bond trustee. The ratings on both programs reflect the credit profile of the Commonwealth itself, whose general obligation bonds are rated Aa3 with a stable outlook. Strengths: -- Some progress in securing new revenues for the 2015 budget year -- Structural enhancements provide additional protection to bondholders Challenges: -- Potential for continued deterioration of service delivery -- Lack of revenue-raising authority Outlook Negative The negative outlook reflects Moody's expectation that the district will continue to struggle to deliver its core services. Charter school enrollment continues to push up costs, and the district has limited authority to increase revenues to pay for those costs. The outlook also reflects Moody's expectation that the district will continue to make its debt service payments in full and on time What Could Change The Rating -- UP (removal of negative outlook): -- Securing new revenues -- Stemming the effect of charter school competition What Could Change The Rating -- DOWN -- Further deterioration in financial operations given deteriorating service quality -- Reductions or expirations of current revenues PRIUM COMPANIES: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Prium Companies, LLC 6416 Pacific Hwy E. #300 Tacoma, WA 98424 Case No.: 14-44512 Chapter 11 Petition Date: August 15, 2014 Court: United States Bankruptcy Court Western District of Washington (Tacoma) Judge: Hon. Paul B. Snyder Debtor's Counsel: Diana K Carey, Esq. KARR TUTTLE CAMPBELL 701 5th Ave Ste 3300 Seattle, WA 98104 Tel: 206-224-8066 Email: dcarey@karrtuttle.com - and - Michael M Feinberg, Esq. KARR TUTTLE CAMPBELL 701 5th Ave Ste 3300 Seattle, WA 98104 Tel: 206-223-1313 Email: mfeinberg@karrtuttle.com Total Assets: $7.04 million Total Liabilities: $83.69 million The petition was signed by Eric D. Orse, manager. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/wawb14-44512.pdf PROSPECT PARK: Opts For Liquidation ----------------------------------- Law360 reported that Hollywood production company Prospect Park Networks LLC, which tried to extend the run of soap operas "One Life to Live" and "All My Children" online, unveiled a plan to liquidate its assets as it continues to pursue litigation against the ABC television network. According to the report, the defunct production company submitted a plan to a Delaware bankruptcy court that would see all its assets liquidated under Chapter 11, saying it is a preferable course of action over a Chapter 7 proceeding. About Prospect Park Networks Prospect Park Networks, LLC, a Los Angeles, Calif.-based talent and management company, filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-10520) in Wilmington, on March 10, 2014, estimating $50 million to $100 million in assets, and $10 million to $50 million in debts. The petition was signed by Jeffrey Kwatinetz, president. William E. Chipman, Jr., Esq., and Mark D. Olivere, Esq., at Cousins Chipman & Brown LLP, in Wilmington, Delaware; and John H. Genovese, Esq., Michael Schuster, Esq., and Heather L. Harmon, Esq., at Genovese Joblove & Battista, P.A. serve as the Debtor's bankruptcy counsel. The Debtor also hired Cohn Reznick LLP as an ordinary course professional. The U.S. Trustee for Region 3 selected three creditors to serve on the Official Committee of Unsecured Creditors. Cole, Schotz, Meisel, Forman & Leonard, P.A., serves as the Committee's counsel. PRM FAMILY: Sept. 17 Hearing on Liquidating Plan Outline -------------------------------------------------------- The Bankruptcy Court will convene a hearing on Sept. 17, 2014, at 1:30 p.m., to consider adequacy of information in the Disclosure Statement explaining the Joint Plan of Liquidation as proposed by PRM Family Holding Company, L.L.C., and the Official Committee of Unsecured Creditors on July 25, 2014. As reported in the TCR on Aug. 6, 2014, the Plan proposes this treatment: holders of allowed CNG Secured Claims, allowed secured tax claims and allowed other secured claims will be paid in full. The holders of administrative claims will be paid with proceeds as assets of the estates are liquidated by a creditor trustee, or as agreed between the creditor trustee and the claim holder. Holders of allowed priority tax claims and other priority claims will be paid in order of priority from a creditor trust. Allowed general unsecured claims will be deemed to hold unsecured creditor trust interests and will receive pro rata distributions from the Creditor Trust, and the Debtors' equity securities will be cancelled and terminated. The Plan will be funded in part by a contribution from related third parties, Provenzano Family members and their respective trusts, in exchange for an acknowledgement, affirmation and ratification that the estates and their creditors hold no claims and fully release any claims against the Plan Funding Source. The Creditor Trustee will be charged with: (i) pursuing claims and causes of action on behalf of the Creditor Trust; (ii) analyzing and reconciling claims that have been filed against the Debtors' estates; and (iii) making distributions on account of allowed claims in accordance with the Plan and the creditor trust agreement entered into with respect thereto. The cost of distributing the Plan and Disclosure Statement as well as the costs, if any, of soliciting acceptances, will be paid from property of the estates. Professional fees of the plan proponents' counsel are not contingent upon the acceptance of the Plan, and are payable as a cost of administration, upon court approval. All remaining assets of the Debtors' estates will be transferred to the Creditor Trust and will be held for the benefit of the holders of (i) allowed administrative claims, allowed priority tax claims and allowed priority claims, and (ii) allowed general unsecured claims. The provisions of the Creditor Trust will be implemented under the direction of the Creditor Trustee, who will be designated prior to the confirmation hearing. Prior to the Effective Date, the Committee will select three creditors to serve on an advisory board. The Creditor Advisory Board will: (a) select a successor Creditor Trustee in the event that the initial Creditor Trustee needs or is required to resign or is unable to complete its duties as Creditor Trustee; (b) advise the Creditor Trustee with respect to his or her duties, including the reconciliation of claims, distributions to beneficiaries of the Creditor Trust and avoidance actions; and (c) file any necessary pleadings with the Court challenging any actions of the Creditor Trustee as permitted under the Creditor Trust Agreement. The Creditor Trustee will provide the Creditor Advisory Board with quarterly reports. On the Effective Date, all of the equity securities in the Debtors will be and are deemed to be cancelled. Upon receipt by the Debtors (or the Creditor Trust) of the plan funding Contribution with a value of $1.6 million from the Plan Funding Source, the guarantor release parties are fully released from any claims or causes of action held by the Debtors and the Creditor Trust. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/PRMFAMILY_1171_ds.pdf About PRM Family PRM Family Holding Company, L.L.C., operator of 11 Pro's Ranch Markets grocery stores in Arizona and Texas and New Mexico, sought Chapter 11 protection (Bankr. D. Ariz. Case No. 13-09026) on May 28, 2013. As of the bankruptcy filing, PRM Family Holding operates seven grocery stores in Phoenix, two in El Paso, Texas, and two in New Mexico. Its corporate office is in California and it has warehouses and distribution facilities in California and Phoenix. Its Pro's Ranch Markets feature produce, baked goods, and other general grocery items with a Hispanic flair and theme. The company has more than 2,200 employees. PRM Family blamed its woes on, among other things, the adverse effect of the perception in Arizona towards immigrants including the passage of SB 1070 and an immigration audit to which no other competitor was subjected. It also blamed a decline in the U.S. economy and an increase competition from other grocery store chains. Bank of America, the secured lender, declared a default in February 2013. PRM Family estimated liabilities in excess of $10 million. Judge Sarah Sharer Curley oversees the case. Michael McGrath, Esq., Scott H. Gan, Esq., Frederick J. Petersen, Esq., Kasey C. Nye, Esq., David J. Hindman, Esq., and Isaac D. Rothschild, Esq., at Mesch, Clark & Rothschild, P.C., serve as the Debtor's counsel. HG Capital Partners' Jim Ameduri serves as financial advisor. PRM Family submitted to the Bankruptcy Court on Sept. 23, 2013, a Joint Disclosure Statement in support of Plan of Reorganization. The Disclosure Statement says the Debtor will continue the operation of a long-standing business, which currently employs approximately 2,300 people. Continuing the business will allow the Debtors to repay creditors and maintain trading relationships with long-term trade vendors. Attorneys at Freeborn & Peters LLP, in Chicago, Ill., represent the Official Committee of Unsecured Creditors as lead counsel. Attorneys at Schian Walker, P.L.C., in Phoenix, Arizona, represent the Committee as local counsel. O'Keefe & Associates Consulting, LLC, serves as financial advisor to the Committee. Robert J. Miller, Esq., Bryce A. Suzuki, Esq., and Justin A. Sabin, Esq., at Bryan Cave LLP, in Phoenix, serve as counsel for Bank of America, N.A., as administrative agent and a lender under an amended and restated credit agreement dated July 1, 2011. PUERTO RICO ELECTRIC: Creditors Agree to Amend Bond Documents ------------------------------------------------------------- The Puerto Rico Electric Power Authority ("PREPA") on Aug. 14 disclosed that discussions with its creditors have resulted in agreements that provide PREPA with a consensual path forward to improve its operations and financial situation. Insurers and bondholders controlling more than 60 percent of PREPA's outstanding bonds have entered into contractual arrangements and agreed to amend the existing bond documents to provide PREPA with liquidity and time to work with its creditors to develop a plan to achieve a restructuring of its business. The insurers and bondholders who signed the agreements, including those that have commenced litigation against the Debt Enforcement and Recovery Act, have agreed that they will not exercise remedies against PREPA during the term of these agreements. During this period, PREPA will continue to make required debt service payments in full. The banks that provide revolving lines of credit used to pay for purchased power, fuel and other expenses have agreed to extend until March 31, 2015 their previously announced agreements to not exercise remedies as a result of certain credit downgrades and other events. These agreements allow PREPA to continue to delay certain payments that were due to these lenders in July and August, respectively, until March 31, 2015. During this period, the banks will receive interest payments on these amounts. The contractual agreements with PREPA's insurers, bondholders and banks will go into effect immediately and an amendment to the existing bond documents, which will provide PREPA the ability to use approximately $280 million held in its construction fund for payment of current expenses and capital improvements, will become effective later this month. The additional liquidity will assist PREPA in its ongoing operations, while also keeping funds available for capital improvements that will help to facilitate cleaner and more efficient fuel delivery, enabling Puerto Rico to achieve the targets established in the Energy Reform Act. As part of the new agreements, GDB has agreed that it will not exercise set off rights with respect to PREPA deposits and will not require PREPA to make principal or interest payments due under GDB loans. "[Thurs]day's announcement is an important milestone in the transformation of PREPA and gives us a clear line of sight to the future," said Harry Rodriguez, President of PREPA's Board of Directors. "PREPA is working hard to deliver with infrastructure improvements, better cost controls and improved service. [Thurs]day's agreements give us additional tools toward the creation of a more modern and self-sustaining PREPA for the future." Juan F. Alicea Flores, executive director for PREPA, stated, "[Thurs]day's agreements give PREPA the additional time and financial resources we need to reach a comprehensive solution that ensures our ability to provide a safe, reliable and efficient power supply to all Puerto Ricans for many years to come. It is the result of a lot of hard work by many people, and I want to thank all of our stakeholders for their contributions to this very positive outcome." David H. Chafey, president of the Board of Directors of GDB, commented, "The Government Development Bank of Puerto Rico is pleased with PREPA's ongoing efforts to become a self-sustaining business. The agreements announced [Thurs]day are important steps in the process of creating a stronger PREPA for the people of Puerto Rico." As part of its agreements with the creditors group, PREPA has committed to complete a five-year business plan by December 15, 2014 and to appoint a chief restructuring officer (CRO) by September 8, 2014. The CRO will work closely with Mr. Alicea and the rest of PREPA's Board and management team to accelerate PREPA's transformation, ensuring the utility is able to efficiently implement the changes necessary to achieve its financial and operating targets. Initial areas of focus are expected to include optimizing the generation, transmission and distribution of the Island's power supply, refining collection and expense management processes, and enhancing the overall quality of data collection and reporting. Under the terms of the agreements announced today, PREPA must deliver a full debt restructuring plan by March 2, 2015. "The additional insights and experiences the CRO will bring to PREPA will be important assets as we work to build a stronger utility for the future," Mr. Alicea added. PREPA will file a notice on the Electronic Municipal Market Access (EMMA) system outlining the key terms of its agreements with the creditor groups. PREPA agreed to make these disclosures under confidentiality agreements it signed with certain of its creditors in conjunction with the ongoing discussions. The notice will be filed today and includes additional information about the agreements and PREPA. QUEST SOLUTION: Incurs $262,000 Second Quarter Net Loss ------------------------------------------------------- Quest Solution, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $262,305 on $7.43 million of total revenues for the three months ended June 30, 2014, compared to a net loss of $307,944 on $1,008 of total revenues for the same period in 2013. The Company also reported a net loss of $15,886 on $17.05 million of total revenues for the six months ended June 30, 2014, compared to a net loss of $346,402 on $1,269 of revenues for the same period a year ago. As of June 30, 2014, the Company had $20.89 million in total assets, $20.96 million in total liabilities and a $68,629 total stockholders' deficit. At June 30, 2014, the Company had cash in the amount of $898,935 and a working capital deficit of $3,035,567. A full-text copy of the Form 10-Q is available for free at: http://is.gd/N1lccw About Quest Solution Quest Solution (formerly known as Amerigo Energy, Inc.) is a national mobility systems integrator with a focus on design, delivery, deployment and support of fully integrated mobile solutions. The Company takes a consultative approach by offering end to end solutions that include hardware, software, communications and full lifecycle management services. The highly tenured team of professionals simplifies the integration process and delivers proven problem solving solutions backed by numerous customer references. Motorola, Intermec, Honeywell, Panasonic, AirWatch, Wavelink, SOTI and Zebra are major suppliers which Quest Solution uses in its systems. Amerigo Energy reported a net loss of $1.12 million in 2013 following a net loss of $191,364 in 2012. L.L. Bradford & Company, LLC, Las Vegas, NV, 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 suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern. RAAM GLOBAL: Moody's Lowers Corporate Family Rating to 'Caa2' ------------------------------------------------------------- Moody's Investors Service downgraded RAAM Global Energy Company's (RAAM) Corporate Family Rating (CFR) and Probability of Default Rating (PDR) to Caa2 from Caa1 and Caa2-PD from Caa1-PD, respectively. Moody's downgraded RAAM's senior secured note rating to Caa3 from Caa2. Moody's assigned a SGL-4 Speculative Grade Liquidity Rating. The outlook was changed to negative from stable. "RAAM Global Energy has faced challenges over the last couple of years leading to reduced production and reserves," said Arvinder Saluja, Moody's Analyst. "With bond maturities in October 2015 and a forbearance agreement in place with its current revolver bank group, the company needs to manage its refinancing and reserve replacement plans in light of reduced liquidity in the near term." Rating Rationale The Caa2 CFR for RAAM primarily reflects Moody's concerns about the company's ability to refinance the senior secured notes that come due on October 1, 2015 amid a period of declining production profile. This is compounded by its credit facility covenant breach at June 30 and the need to raise additional near term liquidity. The rating further reflects its modest scale and concentration in the Gulf of Mexico with its technical challenges including capital intensity, high decline rates and high finding and development (F&D) costs, particularly since it is operating from a relatively small asset base. Moreover, given its short 3.5 year proved developed (PD) reserve life, debt to PD reserves is very high, reflecting the need for high ongoing capital spending rates to address the high decline rates inherent in GOM production. The rating is supported by the reasonably sized and stable 25% oil component of RAAM's total production volumes in the current favorable price environment, a degree of diversification with onshore operations in several different areas, an experienced management team and an established operational track record over a series of industry cycles. RAAM has weak liquidity as reflected by the assignment of a SGL-4 Speculative Grade Liquidity Rating. As of June 30, 2014, RAAM had a cash balance of $77 million. The company's $50 million borrowing base revolving credit facility is currently unavailable due to failure to comply with the interest coverage ratio. The facility is governed by two financial covenants, a minimum interest coverage (EBITDA to interest for the four immediately preceding consecutive quarters) of 2.5x and a minimum current ratio of 1.0x. As of June 30, 2014, RAAM had interest coverage of 2.3x. Due to the covenant breach, on July 31, 2014 RAAM entered into a forbearance agreement with its senior secured lenders. The borrowing base was reduced to zero and RAAM must maintain $4 million in deposit accounts with the administrative agent. The standstill period ends on September 30, 2014, at which time RAAM must have a form of replacement financing in place. Replacement financing is critical in order for the company to be able to increase production through greater capital expenditures which in turn could help in addressing the maturity of its senior secured notes. The negative outlook reflects the increase in execution risk as the company attempts to offset production and reserves declines with increased focus on onshore drilling and the unavailability of the revolver borrowing base. The Caa3 senior secured notes rating reflects the priority of any current or potential senior secured credit facility debt's first lien claim relative to the senior secured notes' second lien claim results in the notes being rated one notch beneath the Caa2 CFR under Moody's Loss Given Default Methodology. The forbearance agreement RAAM entered into with its revolver lenders permanently eliminated the borrowing base but allows for the company to secure first lien financing by September 30, 2014 which could effectively replace the revolver in the capital structure. If the company is unable to replace the existing credit facility with another first lien credit facility, the secured notes will essentially become first lien claims and may be notched up to the CFR level. Moody's could downgrade the ratings if the probability of a distressed exchange of secured bonds increases or if production declines continue. A positive rating action could be considered if the company is able to secure additional liquidity, demonstrate good results and thus sustainably increase production and reserves from the new wells it drills, and put in viable refinancing plan in place for its secured notes. REGIONAL CARE: Reorganization Plan Declared Effective ----------------------------------------------------- Regional Care Services Corp., et al., notified the Bankruptcy Court that the Effective Date of their Second Amended Joint Plan of Reorganization dated March 28, 2014, occurred on June 9. On May 16, the Court entered an order confirming their Plan, and on June 9, the sale of substantially all of the Debtors' assets to Banner Health closed. As reported in the Troubled Company Reporter on May 22, 2014, the Plan provides for the sale of substantially all of the Debtors' assets to Banner Health pursuant to an asset purchase agreement dated Feb. 4, 2014; the assumption and assignment to the Buyer of certain executory contracts and unexpired leases; and the creation of a creditor trust to, among other things, liquidate and administer remaining assets, analyze, object to and resolve claims, prosecute, abandon and resolve causes of action, make distributions to holders of allowed claims and wind-down the estates. Scott Davis will be appointed as Creditor Trustee. Prior to the May 15 confirmation hearing, the Debtors filed an amended plan to incorporate minor changes. The confirmed Plan provides that it does not change the effect of Banner's assumption through operation of Section 365 of the Bankruptcy Code or otherwise, and must be consistent with Medicare statute and Medicare regulations. The confirmation order makes clear that the nothing in the Plan will cause the Debtors' Medicare Provider Agreement with Centers for Medicare & Medicaid Services, United States Department of Health and Human Services, to be deemed rejected under the Plan. The Debtors and Banner Health also modified the APA to provide that if the Seller and the Buyer do not agree on the value of the Seller Cost Report Liabilities, the sum of (i) the agreed portion, if any, of the value, plus (ii) the disputed portion of the value will be deducted from the closing date payment provided that the agreed portion plus the disputed portion will not exceed $553,376. All objections to the Plan that have not been withdrawn, waived, or resolved are overruled on the merits. The U.S. Trustee objected to the Plan as providing improper third-party releases. The Debtors countered that true third-party releases were amended out of the Plan at the Disclosure Statement stage and the exculpation provision was disclosed prominently in the Plan. Not a single creditor, regardless of class, has objected to the proposed exculpation, the Debtors said. In fact, as evidenced by the declaration of Stephenie Kjontvedt, a vice president, senior consultant at Epiq Bankruptcy Solutions, LLC, holders of claims in classes entitled to vote under the Plan gave their overwhelming support to the Plan. A full-text copy of the voting and tabulation results is available at: http://bankrupt.com/misc/REGIONALCAREballot0512.pdf Pinal County Treasurer, Med One Capital Funding LLC, Aetna Inc. and its affiliates, 3M Company, Great Western Bank, also objected to the Plan but these objection was resolved and were subsequently withdrawn. A full-text copy of the May 14 Amendments to the Plan is available at http://bankrupt.com/misc/REGIONALCAREplan0514.pdf Creditor Trust Agreement On June 30, the Court approved the Creditor Trust Agreement consistent with the requirements of Section 1142 of the Bankruptcy Code and their Second Amended Plan. The creditor trust agreement describes, among other things, the rights of beneficiaries and the powers, obligations and compensation of the Creditor Trustee. The Debtors are represented by: Michael J. Pankow, Esq. Joshua M. Hantman, Esq. BROWNSTEIN HYATT FARBER SCHRECK, LLP 410 Seventeenth Street, Suite 2200 Denver, CO 80202-4432 Tel: (303) 223-1100 Fax: (303) 223-1111 E-mails: mpankow@bhfs.com jhantman@bhfs.com Michael McGrath, Esq. Kasey C. Nye, Esq. MESCH, CLARK & ROTHSCHILD, P.C. 259 North Meyer Avenue Tucson, Arizona 85701 Tel: (520) 624-8886 Fax: (520) 798-1037 E-mail: mmcgrath@mcrazlaw.com knye@mcrazlaw.com About Casa Grande Community Hospital and Regional Care Services Regional Care Services Corp., Casa Grande Community Hospital d/b/a Casa Grande Regional Medical Center, Regional Care Physician's Group, Inc., and Casa Grande Regional Retirement Community sought Chapter 11 protection (Bankr. D. Ariz. Lead Case No. 14-01383) in Tucson, Arizona, on Feb. 4, 2014. The Debtors, one of the largest employers in Pinal County, operate an award winning, full service non-profit community hospital serving more than 65,000 patients each year from the largely rural communities of Casa Grande, Sacaton, Eloy, Florence and surrounding communities. CGRMC is a 177-licensed bed, general acute care hospital located in Casa Grande, Arizona. RCSC is the sole member and sponsor of CGRMC, RCPG and CGRRC. As of the Petition Date, CGRRC's management consists of Rona Curphy as President, Cherie McGlynn as Chairman, David Fitzgibbons as Vice Chairman, and John Robert McEvoy as Secretary/Treasurer. Michael McGrath, Esq., and Kasey C. Nye, Esq., at Mesch, Clark & Rothschild, P.C., in Tucson, Arizona; and Michael J. Pankow, Esq., and Joshua M. Hantman, Esq., at Brownstein Hyatt Farber Schreck, LLP, in Denver, Colorado, serve as counsel to the Debtor. Casa Grande Hospital estimated $50 million to $100 million in assets and liabilities. The Debtors have filed a Plan of Reorganization to effectuate the sale of substantially all of their assets to Phoenix-based Banner Health pursuant to a binding Asset Purchase Agreement dated Feb. 4, 2014. Banner Health is also providing $6.2 million of DIP financing. Banner Health is represented in the case by Robert M. Charles, Jr., Esq., and Susan M. Freeman, Esq., at Lewis Roca Rothgerber LLP, as counsel. RESPONSE BIOMEDICAL: Posts C$288,000 Net Income in Q2 ----------------------------------------------------- Response Biomedical Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income and comprehensive income of C$288,000 on C$3.07 million of product sales for the three months ended June 30, 2014, as compared with net income and comprehensive income of C$3.34 million on C$2.74 million of product sales for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss and comprehensive loss of C$1.23 million on C$5.63 million of product sales as compared with a net loss and comprehensive loss of C$6.62 million on C$6.30 million of product sales for the same period in 2013. The Company's balance sheet at June 30, 2014, showed C$13.73 million in total assets, C$16.07 million in total liabilities and a C$2.33 million total shareholders' deficit. "Management believes that, with the Private Placement completed in 2013 ... based on the current level of operations, and excluding out of the ordinary cash management measures, the Company's cash and cash equivalent balances, including cash generated from operations and proceeds of debt, will be sufficient to meet the anticipated cash requirements through the next twelve months, unless the Company violates its debt covenants and the outstanding amounts become current. However, due to the requirements of the Company to meet financial covenants related to revenue and liquidity, under the terms of the term loan, and the Company's history of losses, there is substantial doubt over the Company's ability to continue as a going concern as it is dependent on meeting the financial covenants and ultimately achieving profitable operations, the outcome of which cannot be predicted at this time," the Company said in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/bK7nnw About Response Biomedical Based in Vancouver, Canada, Response Biomedical Corporation develops, manufactures and sells diagnostic tests for use with its proprietary RAMP(R) System, a portable fluorescence immunoassay- based diagnostic testing platform. The RAMP(R) technology utilizes a unique method to account for sources of error inherent in conventional lateral flow immunoassay technologies, thereby providing the ability to quickly and accurately detect and quantify an analyte present in a liquid sample. Consequently, an end-user on-site or in a point-of-care setting can rapidly obtain important diagnostic information. Response Biomedical currently has thirteen tests available for clinical and environmental testing applications and the Company has plans to commercialize additional tests. Response Biomedical reported a net loss and comprehensive loss of $5.99 million in 2013, a net loss and comprehensive loss of $5.28 million in 2012 and a net loss and comprehensive loss of $5.37 million in 2011. PricewaterhouseCoopers LLP, in Vancouver, British Columbia, 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 recurring losses from operations and has an accumulated deficit at Dec. 31, 2013, that raises substantial doubt about its ability to continue as a going concern. REVEL AC: Fox Rothschild To Return Money, Continue As Counsel ------------------------------------------------------------- Law360 reported that Fox Rothschild LLP can represent Atlantic City's bankrupt Revel Casino Hotel after reaching a settlement with a government bankruptcy watchdog requiring the firm to return $254,000 to the debtors to resolve allegations that it received improper retainer payments from the hotel's owner, a New Jersey bankruptcy judge said. According to the report, U.S. Bankruptcy Judge Gloria M. Burns signed off on Revel's application to retain Fox Rothschild as counsel in its Chapter 11 proceedings, two days after a Fox Rothschild lawyer confirmed to Law360 that the firm was close to reaching a deal with Roberta DeAngelis, the U.S. trustee for Region 3 of the bankruptcy courts. 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. RIVER CITY RENAISSANCE: Submits List of Equity Security Holders --------------------------------------------------------------- River City Renaissance, LC, submits to the Bankruptcy Court its list of equity security holders in accordance with Rule 1007(a)(3) of the Federal Rules of Bankruptcy Procedure. Joseph J. Luzinski, at Development Specialists, Inc., River City's proposed liquidating representative, declares that River City has four equity security holders: Company No. of Securities ------- ----------------- River City Renaissance SCP, LC 1.00% 307 Stockton Street Richmond, VA 23224 River City Renaissance Tenant, LC 5.00% 307 Stockton Street Richmond, VA 23224 The Jefferson Investor Group, LC 93.50% 2716 Monument Ave. Richmond, VA 23220 WJA, Inc. 0.50% 307 Stockton Street Richmond, VA 23224 River City Renaissance, LC, and River City Renaissance III, LC, sought Chapter 11 protection (Bankr. E.D. Va. Case Nos. 14-34080 and 14-34081) in Richmond, Virginia, on July 30, 2014. The cases are assigned to Judge Keith L. Phillips. Richmond, Virginia-based River City Renaissance estimated $10 million to $50 million in assets and debts. Renaissance III estimated less than $10 million in assets and debts. The Debtors have tapped Spotts Fain PC as counsel. RR DONNELLEY ARGENTINA: Files for Bankruptcy Liquidation -------------------------------------------------------- R. R. Donnelley & Sons Company announced the filing for bankruptcy Aug. 11, by R.R. Donnelley Argentina S. A. ("RRDA"), a subsidiary of RR Donnelley & Sons Company, with the Argentine Court. Thomas J. Quinlan, President and Chief Executive Officer of RR Donnelley & Sons Company, states that it was after much discussion, thought, and the consideration of many alternatives to preserve operations, that RRDA made the difficult choice to file for bankruptcy liquidation in Argentina after 22 years in operation. The printing industry in Argentina has been struggling to be profitable for some time and the outlook for improvement of industry sales is not positive. The business of RRDA is not solvent. RRDA has experienced a decrease in sales and does not foresee any improvement in the foreseeable future. At every point in this decision, RRDA followed all Argentinian laws and regulations as they apply to these business decisions. During the analysis of alternatives, many discussions and considerations took place including, among other things, the following: RRDA obtained a Programa de Reproduccion ("Repro") in September 2013. However, the local union elected not to sign it thereby preventing RRDA's proposed corrective actions and therefore worsening even more the economic and financial situation. For three months RRDA had multiple meetings directly with the national and local unions in advance of filing bankruptcy seeking a Crisis Prevention Plan (requesting a reduction of headcount in order to draw closer to profitability), but no solutions were acceptable to the unions. RRDA met with and filed a petition with the National Ministry of Labor proposing a reduction in headcount at the facility. This was also brought to the Provincial Ministry of Labor. Prior to filing for bankruptcy, both Ministries of Labor informed RRDA that they did not support the proposal. Because RRDA was left with no other solutions for the many crises facing it, including rising labor costs, inflation, materials price increases, devaluation, inability to pay debts as they become due, and other issues, the independent decision was made to file for bankruptcy. In arriving at the decision, neither RRDA nor RR Donnelley & Sons Co. discussed its intentions with any other company, stakeholder or bondholder. We have absolutely no relation to the current situation with Argentina's bondholders. The bankruptcy petition filed on August 11 was approved by the court shortly thereafter and a trustee was appointed. This was quickly done, as it is usual in these cases, so as to protect and preserve premises, workers, facilities and creditors. We believe this issue will be best resolved by the court and the trustee. At base, the business of RRDA is not solvent and that reality was the sole driver of the business decision. R. R. Donnelley & Sons Company -- http://www.rrdonnelley.com/-- provides integrated communication solutions to private and public sectors worldwide. SALUBRIOUS PHARMACEUTICAL: Case Summary & 8 Top Unsec. Creditors ---------------------------------------------------------------- Debtor: Salubrious Pharmaceutical LLC 5328 Lockhurst Drive Woodland Hills, CA 91367 Case No.: 14-13835 Chapter 11 Petition Date: August 15, 2014 Court: United States Bankruptcy Court Central District of California (San Fernando Valley) Judge: Hon. Maureen Tighe Debtor's Counsel: Timothy Quick, Esq. LAW OFFICES OF TIMOTHY K QUICK 3502 Katella Ave Ste 207 Los Alamitos, CA 90720 Tel: 562-799-6020 Fax: 877-803-7252 Email: tkquick@gmail.com Estimated Assets: $50 million to $100 million Estimated Liabilities: $500,000 to $1 million The petition was signed by George H. Nelson, manager/member. List of Debtor's eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Robert C. Baker, Esq. Lawsuit $407,000 633 W. 5th Street, Ste. 5400 Los Angeles, CA 90071 Robert Boatman Lawsuit $200,000 Priscilla Boatman Lawsuit $200,000 Pharmo, LLC Lawsuit $100,000 Maricela Susana Lawsuit $50,000 The Estate of Chad Wilde Lawsuit $50,000 Joh E. Sweeney, Esq. Lawsuit $25,000 Norman Perbil Lawsuit $10,000 SCSLSJ341 LLC: Land, Buildings to Be Sold at Aug. 25 Auction ------------------------------------------------------------ Glenn C. Raiche, Trustee of the Marilyn G. Raiche 1999 Revocable Trust, as mortgagee, will sell at public auction the land and buildings owned by SCSLSJ341, LLC. The premises are known as 79 School Street, Franklin, County of Merrimack, State of New Hampshire. The sale shall take place on August 25, 2014 at 11:30 a.m. at the Premises. SCSLSJ341 is based at 33 Memorial Street, Franklin, NH 03235. A deposit of $5,000 in the form of a certified check or bank treasurer's check or other check satisfactory to the Mortgagee's attorney will be required to be delivered at or before the time a bid is offered. The successful bidder(s) will be required to execute a purchase and sale agreement immediately after the close of the bidding. The balance of the purchase price shall be paid within 30 days from the sale date in the form of a certified check, bank treasurer's check or other check satisfactory to Mortgagee's attorney. The Mortgagee reserves the right to bid at the sale, to reject any and all bids, to continue the same and to amend the terms of the sale by written or oral announcement made before or during the foreclosure sale. The property will be sold "AS IS AND WHERE IS' and subject to unpaid taxes, prior liens or other enforceable encumbrances of record, if any, entitled to precedence over the Mortgage. SEAWORLD PARKS: Moody's Affirms 'B1' CFR & 'Ba3' Debt Ratings ------------------------------------------------------------- Moody's Investors Service changed the rating outlook for SeaWorld Parks and Entertainment, Inc. to stable from positive. The B1 corporate family rating (CFR) and Ba3 debt ratings were affirmed The change in outlook reflects weak performance during the first half of the year and the company's revised guidance for revenue declines of 6 to 7% and company defined adjusted EBITDA declining 14 to 16% in FY 2014. The company also increased capex guidance to 13% of revenue over the next several years from Moody's expectation of 10%. In Moody's opinion, results were negatively impacted by animal rights campaigns against the company, stronger competitive offerings in the Orlando, Florida market, and delayed school closings in some markets this year. The company is anticipated to carry out a cost saving program to help offset revenue declines as well as fund additional capex spend and fund stock buybacks in 2015. The heightened capex spend over the next few years will improve park attractions, but reduce free cash flow. SeaWorld Parks and Entertainment, Inc Corporate Family Rating, affirmed at B1 Probably of Default Rating, affirmed at B1-PD Revolving credit facility maturing on April 2018, affirmed at Ba3 (LGD3) 1st lien term loan B-2 facility maturing May 2020, affirmed at Ba3 (LGD3) Speculative Grade Liquidity Rating, affirmed SGL-2 Outlook: changed to stable from positive Summary Rating Rationale SeaWorld's B1 (CFR) reflects the portfolio of 11 regional and destination theme parks and weak operating performance during 2014 that is expected to increase leverage from 4.4x as of Q2 2014 (incorporating Moody's standard adjustments) to almost 5x by the end of 2014. The parks are highly seasonal and sensitive to cyclical discretionary consumer spending, weather conditions, changes in fuel prices, public health issues as well as other disruptions outside of the company's control. The rating also reflects negative publicity from its killer whale shows and legislative efforts in California to ban the shows in that state. Despite weaker than anticipated performance, the company still generates meaningful annual attendance (approximately 23 million in the LTM period ending Q2 2014) and benefits from adequate cash flow generation to fund a significant ongoing capital program, dividends, and fund stock buy backs. The value of its portfolio of parks is also substantial and provides significant asset protection. SeaWorld has a good liquidity position (as reflected in Moody's SGL-2 rating) supported by sufficient cash ($63 million as of Q2 2014) and projected free cash flow to cover capital spending, required debt service, and dividends. Moody's expect seasonal reliance on the $192.5 million revolver (undrawn at Q2 2014 except for $16 million of letters of credit). The revolver matures on the earlier of April 2018 or the 91st day prior to the maturity date of the senior notes (unrated). Moody's anticipates the company will maintain access to the revolver and remain in compliance with the credit facility covenants (based on the credit agreement definitions). The total leverage covenant is set at 5.75x for the life of the loan and the interest coverage ratio is set at 2.05x. The 11% cash-pay notes have a make-whole call prior to 12/1/14 and is callable at 105.5% thereafter (declining to 102.75% on 12/1/15). The company may refinance the notes as the initial call date approaches which could lead to interest expense savings. A reduction or refinancing of the note with new secured debt could pressure the credit facility rating given the removal of subordinated debt in the capital structure. The stable rating outlook reflects our expectation that SeaWorld will experience mid to high single digit revenue declines that will lead leverage to increase to almost 5x by the end of 2014. The company will have to contend with negative publicity and campaigns from animal activist, potential legislative actions that could impact operations, and improve the level of attractions at some parks. Given recent weak performance, an upgrade is not expected in the near term. Positive rating pressure would occur if the company generates positive revenue, attendance and EBITDA growth that caused leverage to decline below 4.25x (as calculated by Moody's) on a sustained basis. Comfort that there were not any significant legislative, regulatory, or activist actions that would materially impact operations would also be required. A good liquidity position would also be necessary for an upgrade. Downward rating pressure could result from continued poor operating performance due to negative publicity or economic weakness, debt funded equity friendly transactions, or debt financed acquisitions that led to leverage increasing above 5.25x. Legislative or regulatory actions that are expected to materially impact its business model could also result in negative rating pressure. A weakened liquidity profile or failure to maintain an adequate cushion of compliance with covenants could also lead to a downgrade. The Ba3 credit facility rating could be lowered if the unsecured notes were reduced or refinanced with senior secured debt. SeaWorld Parks & Entertainment, Inc.'s ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside SeaWorld Parks & Entertainment, Inc.'s core industry and believes SeaWorld Parks & Entertainment, Inc.'s ratings are comparable to those of other issuers with similar credit risk. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. SeaWorld Entertainment, Inc., headquartered in Orlando, Florida, owns and operates 11 amusement and water parks located in the U.S. Properties include SeaWorld (Orlando, San Diego and San Antonio), Busch Gardens (Tampa and Williamsburg) and Sesame Place (Langhorne, PA). The Blackstone Group (Blackstone) acquired SeaWorld Parks in December 2009 in a $2.4 billion (including fees) leveraged buyout. SeaWorld Entertainment, Inc. filed for an initial public offering in December 2012, and Blackstone has reduced its ownership position to less than 25% as of June 2014. SeaWorld's revenue was approximately $1.4 billion as of the LTM period ending Q2 2014. SEVEN COUNTIES: NextGen's Bid to Withdraw Reference Denied ---------------------------------------------------------- Senior District Judge Charles R. Simpson, III, in Louisville, Kentucky, denied the request of defendants NextGen Healthcare Information Systems, Inc., NextGen Healthcare Systems, LLC and Quality Systems, Inc., for an order withdrawing the bankruptcy court reference of the adversary proceeding commenced against them by Seven Counties Services, Inc. Judge Simpson said NextGen consented to the Bankruptcy Court's jurisdiction by filing a proof of claim against SCS. He also pointed out that the adversary proceeding raises fraudulent conveyance claims which are core claims under 28 U.S.C. Sec. 157(b)(2). The additional claims alleging various permutations of fraud and breach of contract, while traditionally non-core, arise from the same operative facts as the core claims over which the bankruptcy court has jurisdiction and the Proof of Claim NextGen itself filed. According to Judge Simpson, despite its attempt to un-ring the bell, NextGen has consented to bankruptcy court jurisdiction and has no ground to procure withdrawal of the reference by the District Court. NextGen also seeks an order transferring the matter to the United States District Court for the Central District of California at Santa Ana. Judge Simpson said that, in light of the District Court's exercise of its discretion to deny the withdrawal from the bankruptcy court, the District Court will leave consideration of the transfer request for the bankruptcy court's consideration. In May 2013, NextGen filed a proof of claim in the bankruptcy case for the balance of payments purportedly due under a contract with SCS. On July 1, 2013, SCS terminated the contract, and on January 16, 2014, SCS commenced the adversary proceeding to recoup the payments it had already made plus additional damages purportedly incurred due to NextGen's alleged failure to provide products and services required by the contract. According to SCS' version of the facts, on September 16, 2011, SCS entered into a Software License & Services Agreement with NextGen for the implementation of a software platform that would assist SCS in managing its network of mental health treatment delivery. SCS paid NextGen $800,000 at the time the agreement was executed, and paid additional sums over the next two years. The total paid to NextGen exceeded $2 million. According to SCS, NextGen had represented that it was experienced in configuring such software systems and could customize a platform to SCS' needs. NextGen was allegedly incapable of fulfilling that obligation and breached its contract to do so. SCS contends that the contract was unfulfilled at the time SCS filed for bankruptcy and NextGen filed its proof of claim for the remaining balance. SCS moved, and the bankruptcy court ordered, that SCS' "executory contract" with NextGen was rejected. SCS ultimately replaced NextGen with another provider, requesting approval from the bankruptcy court to enter into another software license and service agreement. NextGen moved to withdraw the reference, urging that SCS seeks resolution of non-core, garden variety breach of contract claims. SCS counters that the matter is a core proceeding under 28 U.S.C. Sec. 157, as the AP is directly responsive to NextGen's first- filed claim for collection of an alleged debt. NextGen also filed a motion to dismiss in the Bankruptcy Court urging that the Adversary Proceeding was filed in an improper venue and that it fails to state a claim upon which relief can be granted. NextGen stated that "If the District Court grants the Motion to Withdraw the Reference, this Court will not have jurisdiction to decide this Motion. However, this Motion is being filed at this time to preserve NextGen Healthcare's rights." The District Court did not address that motion. The case is, SEVEN COUNTIES SERVICES, INC., Petitioner, v. NEXTGEN HEALTHCARE INFORMATION SYSTEMS, INC., et al., Respondents, Civil Action No. 3:14CV-330-S (W.D. Ky.). A copy of the District Court's August 12, 2014 Memorandum Opinion is available at http://is.gd/fGiG2dfrom Leagle.com. NextGen Healthcare Information Systems, Inc., et al. are represented by: Brian M. Daucher, Esq. SHEPPARD MULLIN RICHTER & HAMPTON LLP 650 Town Center Drive, Fourth Floor Costa Mesa, CA 92626 Tel: 714-513-5100 Fax: 714-513-5130 E-mail: bdaucher@sheppardmullin.com - and - Laura Day DelCotto, Esq. DELCOTTO LAW GROUP PLLC 200 North Upper Street Lexington, KY 40507 Tel: 859-231-5800 Fax: 859-281-1179 E-mail: ldelcotto@dlgfirm.com About Seven Counties Seven Counties Services Inc., a not-for-profit behavioral services provider from Louisville, Kentucky, filed for Chapter 11 protection (Bankr. W.D. Ky. Case No. 13-31442) on April 4, 2013. The agency generates more than $100 million a year in revenue and employs a staff of 1,400 providing services at 21 locations and 120 schools and community centers. The petition was signed by Anthony M. Zipple as president/CEO. The Debtor scheduled assets of $45,603,716 and scheduled liabilities of $232,598,880. Judge Joan A. Lloyd presides over the case. David M. Cantor, Esq., Neil C. Bordy, Esq., Charity B. Neukomm, Esq., Tyler R. Yeager, Esq., and James E. McGhee III, Esq., at SEILLER WATERMAN LLC, serve as counsel to the Debtor. Bingham Greenebaum Doll LLP and Wyatt, Tarrant & Combs LLP have been retained by the Debtor as special counsel. Hall, Render, Killian, Heath & Lyman, PLLC, is special counsel to represent and advise it in the implementation of its new software system. Peritus Public Relations, LLC, has been tapped to provide public relations and public affairs support in Kentucky. Fifth Third Bank, the cash collateral lender, is represented by Brian H. Meldrum, Esq., at STITES & HARBISON PLLC; and Robert C. Goodrich, Jr., Esq., at STITES & HARBISON PLLC. SHENGDATECH INC: Mudd & Saidman Dismissed From Securities Case -------------------------------------------------------------- Shareholders of ShengdaTech, Inc. brought suit against ShengdaTech and its officers and directors for securities fraud. Defendants A. Carl Mudd and Sheldon B. Saidman moved to dismiss the Third Consolidated Amended Class Action Complaint, which District Judge Lorna G. Schofield granted, in its entirety, according to an Opinion and Order dated Aug. 12, 2014, a copy of which is available at http://is.gd/wBv1qgfrom Leagle.com. Messrs. Mudd and Saidman became members of ShengdaTech's five- member Board of Directors in February 2007, and both served on its three-member Audit Committee, which Mr. Mudd chaired. In a Form 8-K filed on May 5, 2011, ShengdaTech announced that KPMG HK's audit reports on the Company's year-end financial statements for 2008 and 2009 should no longer be considered reliable. Later that month, the Special Committee retained the law firm Skadden, Arps, Slate, Meagher & Flom LLP to take over the internal investigation. On August 19, 2011, Skadden presented to the Special Committee its preliminary report, in which it "confirmed material irregularities and/or inaccuracies in the financial records of the Company." On the same day, the Special Committee authorized and directed ShengdaTech to file a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. Both Messrs. Mudd and Saidman signed ShengdaTech's Forms 10-K for the years ending 2006 to 2009. Mesrs. Mudd and Saidman also sat on the Board's Compensation Committee and Nominating and Corporate Governance Committee. The 2009 Form 10-K stated that both Defendants were qualified to serve on the ShengdaTech Board because of their "extensive knowledge" of ShengdaTech. For their positions, they were compensated as follows: Defendant Mudd received $75,000 in cash annually for 2008 and 2009, plus $58,945 in options for 2008; and Defendant Saidman received $35,000 in cash annually for 2008 and 2009. Donald D. Yaw, Lead Plaintiff, is represented by Mario Alba, Jr, Robbins Geller Rudman & Dowd LLP, Avital Orly Malina, Robbins Geller Rudman & Dowd LLP, Edward Y. Kroub, Robbins Geller Rudman & Dowd LLP, Michael Gerard Capeci, Robbins Geller Rudman & Dowd LLP & Samuel Howard Rudman, Robbins Geller Rudman & Dowd LLP. Edward J. Schaul, Lead Plaintiff, is represented by Mario Alba, Jr, Robbins Geller Rudman & Dowd LLP, Avital Orly Malina, Robbins Geller Rudman & Dowd LLP, Edward Y. Kroub, Robbins Geller Rudman & Dowd LLP, Michael Gerard Capeci, Robbins Geller Rudman & Dowd LLP & Samuel Howard Rudman, Robbins Geller Rudman & Dowd LLP. James Thomas Turner, Individually and on behalf of all others similarly situated, Plaintiff, is represented by Mario Alba, Jr, Robbins Geller Rudman & Dowd LLP & Samuel Howard Rudman, Robbins Geller Rudman & Dowd LLP. Erik S. Mathes, on behalf of himself and all others similarly situated, Consolidated Plaintiff, is represented by Donald R. Hall, Jr, Kaplan Fox & Kilsheimer LLP, Frederic Scott Fox, Sr, Kaplan Fox & Kilsheimer LLP, Hae Sung Nam, Kaplan Fox & Kilsheimer LLP & Irina Kobylevsky, Kaplan Fox & Kilsheimer LLP. Marlon Fund SICA V PLC, Movant, is represented by Jeremy Alan Lieberman, Pomerantz LLP. Thomas Loomis, Movant, is represented by Irina Kobylevsky, Kaplan Fox & Kilsheimer LLP. Shadas, Movant, represented by Phillip C. Kim, is The Rosen Law Firm P.A.. Shengdatech, Inc., Defendant, is represented by Miriam G. Bahcall, Greenberg Traurig, LLP & Robert Allen Horowitz, Greenberg Traurig, LLP. KPMG LLP, Defendant, is represented by Kevin Michael Hodges, Williams & Connolly LLP, Benjamin M. Greenblum, Williams & Connolly LLP & William Pruitt Ashworth, Williams & Connolly LLP. KPMG Hong Kong, Defendant, represented by Ari Micah Selman, Bingham McCutchen LLP. KPMG, Defendant, is represented by Ari Micah Selman, Bingham McCutchen LLP & Steven W. Hansen, Bingham McCutchen LLP. KPMG, a Hong Kong Partnership, Defendant, is represented by Jeffrey Q. Smith, Bingham McCutchen LLP. KPMG Hong Kong, Defendant-in-Rem, is represented by Jeffrey Q. Smith, Bingham McCutchen LLP. About ShengdaTech Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano precipitated calcium carbonate for the tire industry. ShengdaTech converts limestone into nano-precipitated calcium carbonate (NPCC) using its proprietary and patent-protected technology. NPCC products are increasingly used in tires, paper, paints, building materials, and other chemical products. In addition to its broad customer base in China, the Company currently exports to Singapore, Thailand, South Korea, Malaysia, India, Latvia and Italy. ShengdaTech sought Chapter 11 bankruptcy protection from creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno, Nevada, in the United States. The Shanghai-China based company said in its bankruptcy filing it would fire all of its officers and restructure to try to recover from an accounting scandal. The Company disclosed US$295.4 million in assets and US$180.9 million in debt as of Sept. 30, 2011. The Company's legal representative in its Chapter 11 case is Greenberg Traurig, LLP. On Aug. 23, 2011, the Court entered an interim order confirming the Board of Directors Special Committee's appointment of Michael Kang as the Debtor's chief restructuring officer. Alvarez & Marsal North America, LLC, is the Company's chief restructuring officer. As reported in by the Troubled Company Reporter on Sept. 7, 2011, the United States Trustee appointed AG Ofcon, LLC, The Bank of New York, Mellon (in its role as indenture trustee for bondholders), and Zazove Associates, LLC, to serve on the Official Committee of Unsecured Creditors of ShengdaTech, Inc. Hogan Lovells US serves as counsel for ShengdaTech's official committee of unsecured creditors. The Plan provides for the wind-down of the Debtor's affairs and the Distribution of the Debtor's remaining assets to Creditors. SIMON WORLDWIDE: Incurs $1 Million Net Loss in Second Quarter ------------------------------------------------------------- Simon Worldwide, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.03 million on $0 of revenue for the three months ended June 30, 2014, as compared with a net loss of $897,000 on $0 of revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $2.09 million on $0 of revenue as compared with a net loss of $1.42 million on $0 of revenue for the same period last year. As of June 30, 2014, the Company had $6.15 million in total assets, $64,000 in total liabilities and $6.08 million in ttoal stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/DJyWRf About Simon Worldwide Based in Los Angeles, Simon Worldwide, Inc. (OTC: SWWI) no longer has any operating business. Prior to August 2001, the Company operated as a multi-national full-service promotional marketing company, specializing in the design and development of high-impact promotional products and sales promotions. At Dec. 31, 2009, the Company held an investment in Yucaipa AEC Associates, LLC, a limited liability company that is controlled by the Yucaipa Companies, a Los Angeles, California based investment firm. Yucaipa AEC in turn principally held an investment in the common stock of Source Interlink Companies, a direct-to-retail magazine distribution and fulfillment company in North America, and a provider of magazine information and front-end management services for retailers and a publisher of approximately 75 magazine titles. Yucaipa AEC held this investment in Source until April 28, 2009, when Source filed a pre-packaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. Simon Worldwide reported a net loss of $3.63 million on $0 of revenue for the year ended Dec. 31, 2013, as compared with a net loss of $1.52 million on $0 of revenue for the year ended Dec. 31, 2012. The Company incurred a net loss of $1.97 million on $0 revenue in 2011. SITEL WORLDWIDE: S&P Lowers CCR to 'B-' on Weak Covenant Headroom ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Nashville-based SITEL Worldwide Corp. to 'B-' from 'B'. The outlook is negative. S&P also lowered its issue-level rating on the company's senior secured credit facilities to 'B-'. The recovery rating on this debt is unchanged at '3' and indicates S&P's expectations of meaningful (50% to 70%) recovery in the event of payment default. Additionally, S&P lowered its issue-level rating on the company's senior unsecured notes to 'CCC+'. The recovery rating on the notes is '5' and indicates S&P's expectations of modest (10% to 15%) recovery in the event of a payment default. "The downgrade is based on our expectation that the company's currently weak operating results will result in a continuation of less-than-adequate covenant headroom and negative unadjusted free cash flow over the coming year," said Standard & Poor's credit analyst James Thomas. Although SITEL recently negotiated amendments to covenant terms and received a $75 million additional investment from ONEX, S&P believes that headroom under both leverage and interest coverage covenants will remain below 10% over the next fiscal year. S&P believes that covenant headroom is unlikely to improve materially, even if operating performance improves, as higher EBITDA quarters from 2013 continue to roll off of trailing-12-month covenant EBITDA and covenant step-downs begin in the second quarter of 2015. SKYLINE MANOR: Blueprint Approved to Market and Sell Property ------------------------------------------------------------- Chapter 11 trustee, Ron Ross, sought and obtained authority from the Bankruptcy Court for the District of Nebraska to employ Blueprint Healthcare Real Estate Advisors LLC as advisor for the marketing and sale of the property of debtor Skyline Manor Inc. On July 24, 2014, an engagement agreement was entered into by the Chapter 11 trustee and blueprint. Blueprint will assist and advise trustee with respect to the marketing and sale of the debtor's property. Blueprint's compensation is contingent on a sale of property: Commission Fee Purchase Price -------------- -------------- 1.00% Purchase Price less than or equal to $17MM 1.50% Purchase Price is between $17MM and $18MM 1.75% Purchase Price is between $18MM and $19MM 2.00% Purchase Price is between $19MM and $20MM 2.50% Purchase Price greater than $20MM The Bankruptcy Code provides that a trustee may employ a professional that do not hold or represent an interest adverse to the estate, and that is a disinterested person, to represent or assist the trustee in carrying out its duties. The Chapter 11 trustee believes that the employment of Blueprint will be to the best interests of the debtor's estate and their creditors. The official committee of unsecured creditors supports the employment of the firm. Blueprint's Ben Firestone filed a declaration in support of the application. Mr. Firestone said Blueprint is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. On July 31, 2014, Judge Thomas L. Saladino approved the employment of Blueprint as advisor for the marketing and sale of the debtor's property. The request is approved subject to the following: (1) This order is not a determination that the services are necessary; (2) No determination is made that the person or entity being employed represents no adverse interest; (3) Trustee is specifically authorized to employ the professional under the contingency fee arrangement described in the application; and (4) This order does not allow fees. The firm must file a fee application in accordance with the Bankruptcy Code and Fed. Rules. The firm also must also comply with Neb. R. Bankr. P. 2016. The allowance of fees is subject to objection and to applicable laws governing allowance of fees. 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. SUNTECH POWER: Solyndra Wants Ch.15 Case Moved to N.D. Cal. ----------------------------------------------------------- The Solyndra Residual Trust filed papers with the U.S. Bankruptcy Court for the Southern District of New York seeking an order transferring venue of the Chapter 15 Petition of Suntech Power Holdings Co., Ltd. (In Provisional Liquidation) to the Northern District of California pursuant to 28 U.S.C. section 1412. Solyndra on October 11, 2012, filed a complaint in the Northern District of California against Suntech Power Holdings asserting claims for horizontal price fixing, predatory pricing, and tortuous interference of the Sherman Anti-trust Act, California's Cartwright Act and Unfair Practices Act. Solyndra claims damages of over $1.5 billion on account of Suntech's illegal trade practices. On March 17, 2008, Suntech closed an offering of $575 million of 3.00% convertible senior unsecured notes. The parties thereto submitted to the non-exclusive jurisdiction of any US Federal or New York State court solely for the purpose of any legal action or proceeding to enforce their obligation. On March 15, 2013, Suntech defaulted on the notes. On June 11, 2013, certain holders of notes commenced lawsuits in the US District Court for the Southern District of New York. On November 5, 2013, Suntech's chairman, Christopher Micheal Nacson, filed a winding up petition thereby commencing the Cayman proceeding. The joint provisional liquidators were appointed in the Cayman Proceeding. Suntech, on February 20, 2014, transferred $500,000 to Computershare Account. Suntech contends that venue is proper because its principal assets (i.e., the $500,000) were deposited into the Computershare account at the Bank of New York Mellon and noteholder actions were pending in the same court when the Chapter 15 petition was filed. Solyndra, on the other hand, asserts that the transfer of funds into the Computershare account should be disregarded since it was made for the sole purpose of establishing venue. In addition, since Suntech's principal place of business is located in San Francisco, California, it is proper for the venue to be at the Northern District of California. The other litigation claimant, Energy Conversion Devices, supports the transfer of the Chapter 15 Petition to the Northern District of California. Attorneys for the Solyndra Residual Trust John A. Morris, Esq. Debra I. Grassgreen, Esq. Jason H. Rosell, Esq. PACHULSKI STANG ZIEHL & JONES LLP 780 Third Avenue, 34th Floor New York, NY 10017 Telephone: (212) 561-7700 Facsimile: (212) 561-7777 - and - W. Gordon Dobie, Esq. Eric E. Sagerman, Esq. Justin E. Rawlins, Esq. William C. O'Neil, Esq. WINSTON & STRAWN LLP 333 S. Grand Avenue Los Angeles, CA 90071 Telephone: (213) 615-1700 Facsimile: (213) 615-1750 About Suntech Wuxi, China-based Suntech Power Holdings Co., Ltd., produces solar products for residential, commercial, industrial, and utility applications. Suntech has delivered more than 25,000,000 photovoltaic panels to over a thousand customers in more than 80 countries. Suntech Power Holdings Co., Ltd., received from the trustee of its 3 percent Convertible Notes a notice of default and acceleration relating to Suntech's non-payment of the principal amount of US$541 million that was due to holders of the Notes on March 15, 2013. That event of default has also triggered cross-defaults under Suntech's other outstanding debt, including its loans from International Finance Corporation and Chinese domestic lenders. Suntech Power had involuntary Chapter 7 bankruptcy proceedings initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by holders of more than $1.5 million of defaulted securities under a 2008 $575 million indenture. The Chapter 7 Petitioners are Trondheim Capital Partners, L.P., Michael Meixler, Longball Holdings, LLC, and Jiangsu Liquidators, LLC. They are represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP, in White Plains, New York. Suntech Power on Jan. 31, 2014, disclosed that it has signed a Restructuring Support Agreement relating to the petition for involuntary bankruptcy filed against it under chapter 7 of the U.S. Bankruptcy Code. Under the RSA, the parties agreed that chapter 7 proceedings will be dismissed following recognition of the provisional liquidation proceeding previously filed by the Company in the Cayman Islands under chapter 15 of the U.S. Bankruptcy Code. On Feb. 21, 2014, David Walker and Ian Stokoe, the joint provisional liquidators of Suntech Power Holdings Co., Ltd., appointed by the Grand Court of the Cayman Islands, commenced a Chapter 15 proceeding (Bankr. S.D.N.Y. Case No. 14-10383). The Chapter 15 Petitioners are represented by Jennifer Taylor, Esq., and Diana Perez, Esq., at O'Melveny & Myers LLP. According to the Chapter 15 petition, Suntech has more than $1 billion in both assets and debts. TITAN INTERNATIONAL: S&P Affirms 'B+' CCR & Alters Outlook to Neg. ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Quincy, Ill.-based Titan International Inc. and revised the outlook to negative from stable. S&P also affirmed its 'B+' issue-level ratings on Titan's senior secured notes due 2020. S&P's recovery rating on the notes is '3', indicating its expectation of meaningful (50% to 70%) recovery for lenders in the event of a payment default. "The rating action reflects weaker-than-expected operating performance in recent quarters and our expectation that similar operating trends will continue through the second half of the year, contributing to weaker credit measures," said Standard & Poor's credit analyst Svetlana Olsha. The outlook is negative. Titan's credit measures provide minimal cushion if demand for agricultural and earthmoving equipment declines further than S&P expects. S&P could lower the rating if a sustained downturn in Titan's end markets erodes the company's operating performance more than S&P expects, resulting in leverage above 5x for an extended period. S&P could also lower the rating if Titan pursues large, debt- financed acquisitions that increase leverage beyond 4x in periods of favorable end-market demand. S&P could revise the outlook to stable if the company can reverse negative operating trends and improve leverage to below 4x, while generating moderately positive FOCF and preserving adequate levels of liquidity. TMT USA: Nobu Su Asks Court to Stay Whale Vessels Sale Orders ------------------------------------------------------------- Hsin Chi Su also known as Nobu Su wants to appeal the Bankruptcy Court's orders approving the sale of several Whale vessels of TMT Procurement Corporation and its affiliates. Deirdre Carey Brown, Esq., at Hoover Slovacek LLP, in Houston, Texas, relates that Mr. Su owns patents from China, Japan and Korea for underdeck piping design which was installed in the Whales. All of the Whales used Mr. Su's patented design. Ms. Brown notes that Mr. Su was the owner of the TMT companies and allowed them to use his patents provided they were used with his approval. Mr. Su and his family have been in the shipping industry for over 50 years. His family's flagship company was Taiwan Maritime Transportation Co., Ltd., which is now known as TMT Co., Ltd. or Today Makes Tomorrow Co. Ltd. Mr. Su took over the management of the company after his father passed away in 2002. Mr. Su became known as an innovator in the shipping industry, shares Ms. Brown. Ms. Brown tells the Court that the buyers of the Whales are competitors or have ownership in companies which compete with Mr. Su. He objected to the sale and asserted that the vessels could not be sold free and clear of his patent rights. Mr. Su also argued that the marketing was improper, designed to depress the value of the vessels. According to Ms. Brown, Mr. Su has been under siege by some of his competitors in worldwide litigation. It appears to be a collective effort to attempt to oust and destroy Mr. Su and his companies from the small group of shipping magnates which have succeeded in building large market shares in the shipping industry. Ms. Brown conveys that one of Mr. Su's most litigious adversaries, Petros Pappas, assessed the Whales for certain credit bidders. In doing so, he noted that he did not want to compete against the Whales. Ms. Brown adds that Mr. Pappas has interests in several shipping companies and reportedly has a joint venture with the entities related to the debt and credit bid buyers for the D, G and H Whales. The joint venture was reported a couple months after TMT's bankruptcy was filed. In deciding the sale requests, Ms. Brown argues that the Court did not determine many of the issues related to Mr. Su's patent rights. Mr. Su asserts that if a sale is allowed it should not include his patent rights. His patent rights were not property of the TMT's estates. Mr. Su acknowledges that TMT can sell the vessels but they cannot sell his property. TMT and their lenders have contended that the patented technology provided little value to the vessels. Ms. Brown contends that this begs the question as to why the underdeck piping was not removed from the Whales before a sale. The piping then could have been sold separately as scrap and the issues related to Mr. Su's patented design and patent rights would have been a non-issue in the sale process. Accordingly, Mr. Su asks the Court to stay the sale orders, prohibiting any sales of the Whales from going forward until the appeals have been resolved. Alternatively, Mr. Su asks the Court to stay only the use of the underdeck piping and patents prohibiting: (a) the transfer of the underdeck piping with the Whales by requiring the piping to be removed and stored; and (b) the transfer of any documents related to the underdeck piping design and require that those documents be preserved and marked as highly confidential. TMT Objects William A. Wood III, Esq., at Bracewell & Giuliani LLP, in Houston, Texas, contends that Mr. Su's jurisdictional and constitutional arguments miss the point. The Court did not decide any patent rights; the Court only decided that there was a "bona fide dispute" as to Mr. Su's patent rights. Mr. Wood further contends that Mr. Su's alleged irreparable harm can be compensated with monetary damages, which per se means it is not irreparable. The balance of harms on appeal, and public policy favoring bankruptcy asset sales, also weigh heavily against issuance of stays. According to Mr. Wood, even if the Court were to consider granting one or more stays, a bond should be required to protect the estate against the expenses of maintaining the relevant vessels pending appeal and the fees and expenses of the appeals. Expenses may exceed $66 million as a conservative estimate, assuming the average 18 months it takes to resolve bankruptcy court appeals and assuming the five appeals are consolidated. Mr. Su is represented by: Deirdre Carey Brown, Esq. HOOVER SLOVACEK LLP 5847 San Felipe, Suite 2200 Houston, TX 77057 Telephone: (713) 977-8686 Facsimile: (713) 735-4135 TMT is represented by: William A. (Trey) Wood III, Esq. Jason G. Cohen, Esq. BRACEWELL & GIULIANI LLP 711 Louisiana, Suite 2300 Houston, Texas 77002 Telephone: (713) 223-2300 Facsimile: (713) 221-1212 E-mail: Trey.Wood@bgllp.com Jason.Cohen@bgllp.com - and - Evan Flaschen, Esq. Ilia M. O'Hearn, Esq. BRACEWELL & GIULIANI LLP Goodwin Square 225 Asylum Street, Suite 2600 Hartford, CT 06103 Telephone: (860) 947-9000 Facsimile: (860) 246-3201 E-mail: Evan.Flaschen@bgllp.com Ilia.O'Hearn@bgllp.com About TMT Group Known in the industry as TMT Group, TMT USA Shipmanagement LLC and its affiliates own 17 vessels. Vessels range in size from approximately 27,000 dead weight tons (dwt) to approximately 320,000 dwt. TMT USA and 22 affiliates, including C. Ladybug Corporation, sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13- 33740) in Houston, Texas, on June 20, 2013 after lenders seized seven vessels. TMT filed a lawsuit in U.S. bankruptcy court aimed at forcing creditors to release the vessels so they can return to generating income. TMT has tapped attorneys from Bracewell & Giuliani LLP as bankruptcy counsel and AlixPartners as financial advisors. On a consolidated basis, the Debtors have $1.52 billion in assets and $1.46 billion in liabilities. TMT USA: Ask Court to Clarify Matters Regarding Su Complaints ------------------------------------------------------------- TMT Procurement Corporation and its affiliates seek clarification from the Bankruptcy Court concerning complaints filed by Hsin Chi Su against them in District Court. The Bankruptcy Court had approved the sale of several of TMT's Whale vessels. Mr. Su appealed the sale, and a stay of those orders pending appeal was denied by the Bankruptcy Court, the District Court, and the Fifth Circuit Court of Appeals. Mr. Su's appeals are now pending before the District Court. All sales of the Whale vessels have closed. In a supplemental order, the Bankruptcy Court clarifies that the sale orders do "not authorize any person, purchaser, successor or assign to incorporate or utilize any patented technology in any other vessel or thing." On August 8, 2014, TMT was informed that Mr. Su has now sued the lenders for each of the Whale vessels in the United States District Court for the Southern District of Texas. Mr. Su is seeking a declaratory judgment that "the Bankruptcy Case has no effect as to his patent rights and specifically that Mr. Su may protect his patent rights as allowed by law by, among other things, suing future patent infringers . . . [and] Alternatively, . . . finding that Plaintiff is entitled to the monetary value of the loss of his intellectual property rights as defined above in the amount of no less than $100 million, plus interest at a rate of 8.25%." William A. Wood III, Esq., at Bracewell & Giuliani LLP, in Houston, Texas, points out that Mr. Su did not first file the Su Complaints in the Bankruptcy Court and then seek withdrawal of the reference if he believed that the District Court was the appropriate forum. Mr. Wood argues that, while ambiguous, the Su complaints could be interpreted as a collateral attack on the Bankruptcy Court's sale orders. The Su Complaints could be interpreted as seeking factual findings that, upon any separate claims made by Mr. Su for damages, Mr. Su might assert as binding against TMT. Mr. Su did not provide any notice to TMT of the filings, notes Mr. Wood. Accordingly, TMT ask the Bankruptcy Court to clarify on these matters: (a) TMT are concerned as to whether it was proper to file the Su complaints directly with the District Court. All matters in connection with a bankruptcy case have automatically been referred to the Bankruptcy Court. Even in instances where a party asserts that the Bankruptcy Court does not have jurisdiction or that the reference should be withdrawn for other reasons, the normal procedure is for the litigant to first commence its proceedings in the Bankruptcy Court and then to seek withdrawal of the reference. (b) The Su complaints appear to regurgitate the same failed arguments presented to the Bankruptcy Court. TMT do not believe that it is appropriate for Mr. Su to seek District Court permission to take any actions that are inconsistent with the Bankruptcy Court's orders other than via appeal of the sale orders. TMT seek clarification as to either (i) why their interpretation is erroneous or (ii) if the interpretation is accurate, why it was proper for Mr. Su to collaterally attack the Bankruptcy Court's orders by filing the complaints directly with the District Court. (c) Under the sale orders, any monetary claims that Mr. Su may have against TMT remain with the Bankruptcy Court for future adjudication. TMT have not moved to intervene in the District Court with respect to the Su complaints. TMT seek clarification that Mr. Su will not be permitted to attempt to use any monetary award he might obtain against a lender as binding or persuasive authority with respect to any monetary damages he may seek in the Bankruptcy Court against TMT. TMT further ask the Bankruptcy Court to require Mr. Su to provide them with contemporaneous notice of, and copies of all pleadings filed in connection with, the Su complaints and any other litigation Mr. Su may commence anywhere in the world with respect to his asserted patent rights. Mr. Wood explains that it may well be that other litigation has no effect on TMT's estates, but they have no way of confirming without receipt of notice. About TMT Group Known in the industry as TMT Group, TMT USA Shipmanagement LLC and its affiliates own 17 vessels. Vessels range in size from approximately 27,000 dead weight tons (dwt) to approximately 320,000 dwt. TMT USA and 22 affiliates, including C. Ladybug Corporation, sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13- 33740) in Houston, Texas, on June 20, 2013 after lenders seized seven vessels. TMT filed a lawsuit in U.S. bankruptcy court aimed at forcing creditors to release the vessels so they can return to generating income. TMT has tapped attorneys from Bracewell & Giuliani LLP as bankruptcy counsel and AlixPartners as financial advisors. On a consolidated basis, the Debtors have $1.52 billion in assets and $1.46 billion in liabilities. TWEETER HOME: Creditors' Committee, Bose Settlement Filed --------------------------------------------------------- BankruptcyData reported that Tweeter Home Entertainment Group's official committee of unsecured creditors filed with the U.S. Bankruptcy Court a motion, pursuant to Bankruptcy Code Section 105 and Bankruptcy Rule 9019(a), for approval of a settlement agreement among the committee, on behalf of the Debtors' estates, and Bose Corporation. According to BData, the motion explains, "The settlement resolves the claims filed by Bose. Pursuant to the proposed settlement, the Debtors' estates and creditors will benefit on account of the settlement without the expense or risks of litigation. Certain salient provisions of the Settlement Agreement include the following: Bose's Claims shall be treated as follows (a) claim number 593 shall be treated as an Allowed General Unsecured Claim in the amount of $264,819.67, which claim shall be paid on a pro rata basis with other Allowed General Unsecured Claims in the Bankruptcy Cases, (b) claim number 2172 shall be treated as an Allowed General Unsecured Claim in the amount of $350,000, which claim shall be paid on a pro rata basis with other Allowed General Unsecured Claims in the Bankruptcy Cases, and (c) Bose will waive and release all other claims against the Debtors, including but not limited to claims numbered 32, 33, 564, 565, 566, 594 and 596....Pursuant to the settlement, Bose's 503(b)(9) Claims filed in the aggregate amount of $1,934,347.84, including duplicate claims filed against multiple Debtors, will be treated as a single Allowed General Unsecured Claim in the amount of $264,819.67. In addition, Bose's claim number 2172, which claim the Committee does not dispute, will be allowed in full as a General Unsecured Claim." 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. USMART MOBILE: Needs More Time to File 10-Q ------------------------------------------- USmart Mobile Device Inc. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the period ended June 30, 2014. "We are unable to file our Form 10-Q for the period ended June 30, 2014 on a timely basis due to the Company requiring additional time to work internally with its staff to prepare and finalize the Quarterly Report," the Company explained. About USmart Mobile Del.-based USmart Mobile, previously known as ACL Semiconductors Inc., is currently engaged in the production, manufacturing and distribution of smartphones, electronic products and components in Hong Kong Special Administrative Region and the People's Republic of China through its operating subsidiaries. USmart Mobile reported a net loss of $13.8 million on $72.2 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $4.86 million on $161 million of net sales for the year ended Dec. 31, 2012. Albert Wong & Co. 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's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. These factors raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. VERIS GOLD: Posts Net Loss of $8.1 Million in Second Qtr. --------------------------------------------------------- Veris Gold Corp. on Aug. 15 reported its unaudited interim financial and operational results for the second quarter ended on June 30, 2014 on August 15, 2014. All dollar amounts are expressed in United States Dollars unless otherwise specified. Creditor Protection Proceedings On June 3, 2014, the Company received Notices of Early Termination Date from Deutsche Bank AG London Branch ("DB") requiring the Company to make payments totaling $89.4 million under the terms of the Senior Secured Gold Forward Facility the Company and DB entered into in 2011 and 2012. Failing to make payments by June 9, 2014 would have allowed DB to take such steps as necessary to enforce its rights against the Company. On June 9, 2014 the Company sought protection under the Companies' Creditors Arrangement Act ("CCAA") in the Supreme Court of British Columbia (the "Court") and the Court issued an order granting the Company's application for creditor protection. The Company also filed a Chapter 15 case in the United States Bankruptcy Court for the District of Nevada (the "US Court"). The US Court issued an interim order granting provisional relief under Section 1519 of the United States Bankruptcy Code and subsequently entered a formal order on July 23, 2014 with respect to such provisional relief. The protections in both proceedings (the "Creditor Protection Proceedings") have currently been extended to (i) September 4, 2014 for the CCAA proceeding and (ii) August 29, 2014 for the Chapter 15 case, when a hearing on the application for recognition of the CCAA proceeding is currently scheduled. The Company and DB have negotiated an interim agreement, which was approved by the US Court on August 6, 2014, and are in the process of negotiating a final agreement to be approved by the US Court, which will be documented in a final Cash Collateral Order. During the Creditor Protection Proceedings, the Company continues its daily operations while pursuing a restructuring through a plan of compromise and arrangement (the "Plan"). The Plan will involve a restructuring of the Company's current liabilities and will be subject to creditors' vote and the approval of both the Court and US Court. Exchange Listing Trading in the Company's common stock on the Toronto Stock Exchange ("TSX") was halted on June 9, 2014, and the Company's common stock was subsequently delisted on July 18, 2014. The delisting was a direct result of the CCAA proceeding and the Company is currently not exploring alternative listings at this time as the listed securities would likely continue to be suspended under the new listing. Upon completion of the Creditor Protection Proceedings, the Company will evaluate options to relist on the TSX or other possible exchanges. Operational Highlights for Q2-2014 include: 44,295 payable ounces were produced in the second quarter of 2014 ("Q2-14"), representing a 17% increase from the 38,018 ounces produced in the three month period ending June 30, 2013 ("Q2-13"); 40,795 ounces were sold in Q2-14, an 11% increase from the 36,590 ounces sold in Q2-13 primarily due to the increased processing of higher grade stockpiled ore built up during recent shutdowns, supplemented with high grade ores from the three underground mine operations and improved overall mill recoveries; Revenue in Q2-14 was $53.4 million compared to $46.6 million in Q2-13, driven by an 11% increase in the number of gold ounces sold offset by a 7% decrease in the average price-per-ounce of gold sold in Q2-14 compared to Q2-13 and a $0.9 million reduction in toll milling revenue; Total mine production for Q2-14 was 198,156 tons containing an estimated 34,248 ounces of gold, a 27% decline from the 271,880 tons mined in Q2-13 and a 19% decline in contained ounces of gold compared with 42,094 ounces mined in Q2-13. The primary contributor to the reduction in tons arose from transitioning the mining of the SSX-Steer mine to Small Mine Development ("SMD") on June 1, 2014 but also as a result of supply shortages, primarily cement used in backfill, as a result of the commencement of the Creditor Protection Proceedings; The Jerritt Canyon roaster processing facility achieved total average throughput of 3,366 tons per day ("TPD") in Q2-14, 7% less than the 3,611 TPD achieved in Q2-13. The lower average tonnage processed resulted from the gradual restart of operations after the 21 day mill maintenance shutdown in March 2014 as well as difficulties in processing the higher work index ore for Newmont Mining USA Ltd. ("Newmont") in May and June. Processing rates were also impacted by shortages of supply which occurred at the commencement of the Creditor Protection Proceedings; Development of Saval 4, the fourth underground mine at Jerritt Canyon, recommenced late in Q2-14, with pre-production occurring in July and August. Using existing equipment and crews, the Company plans to mine Saval 4 at a rate between 250 and 300 TPD. Commercial production is expected to be achieved late in the third quarter of 2014; and The Company had a net loss of $8.1 million during Q2-14, a $14.0 million decline from the net income of $5.9 million in Q2-13. The increased loss in 2014 is primarily the result of a $1.8 million increase in depreciation and depletion ("D&D") driven by the commissioning of both the Starvation Canyon mine and the second tailing facility in mid-2013, a $0.5 million decrease in gross margin resulting from lower average realized gold prices (Q2-2014 - $1,288 per ounce, Q2-2013 - $1,388 per ounce) and lower toll milling revenues, and a $3.0 million increase in interest expense due primarily to the recognition of $2.7 million in interest on the Senior Secured Gold Forward Facility (previously a non-financial gold forward and now a financial instrument recorded at amortized cost using the effective interest method). As well, Q2-2013 recognized a $12.2 million gain on fair value adjustments related to warrants and forward gold liabilities compared with only a $2.3 million gain recognized in Q2-2014. Gold Sales/Revenue For Q2-14, the Company realized gold sales of $52.5 million on the sale of approximately 40,795 ounces of gold, this compares to $44.9 million on sales of approximately 36,590 ounces of gold sold in Q2-13. The primary driver of the increased revenue in Q2-14 versus Q2-13 was an 11% increase in the number of gold ounces sold offset by a 7% decline in the market price for gold. The Company had $0.8 million in toll milling revenue in Q2-14 compared with $1.7 million in toll milling in Q2-13 as the Company maintained a focus on allocating the majority of available milling capacity to process the Company's increased high grade ore stockpiles which were generated during the December 2013 and March 2014 mill shutdowns. Gross Margins before D&D In Q2-14, the Company had a Gross Margin before D&D of $4.0 million compared to $4.5 million in Q2-13. As previously discussed, this $0.5 million decrease was primarily driven by a 7% decrease in average gold price from sales during the quarter and a 52% decline in toll milling revenues offset by an 11% increase in the gold ounces sold. As well, cash costs per ounce for the quarter rose to $1,209 per ounce compared with $1,152 per ounce in the comparable period 2013, or a $7.2 million (17%) increase from $42.1 million in Q2-13 primarily resulting from increased mining costs. The increased mining cost resulted primarily from higher per ton costs in the SSX-Steer mine resulting from lower production rates as a result of low equipment availability and subsequent transitioning to contract mining in June 2014, as well as lower production rates in all three mines due to lower availability of cement and other materials needed for steady state mining primarily as a result of the Company commencing the Creditor Protection Proceedings in June. In contrast with 2013, this quarter the Company recognized a full quarter of Starvation Canyon mine costs in the operating results (as April and May of 2013 Starvation Canyon mine costs continued to be capitalized) although this is offset partially on a per ton basis as a result of the improved productivity from that mine. Jerritt Canyon Underground Mining Overview The Company mined a total of 198,156 tons in the Q2-14, containing an estimated 34,248 ounces. This mining production represents a 27% decline from 271,880 tons of mine production in Q2-13; and is a 19% decrease in the estimated 42,094 ounces mined in Q2-13. As mentioned above, the majority of this reduced mine production occurred from downtime during a transition to contract mining at the Company's SSX mine as well as supply shortages resulting from interruptions in supply at the commencement of the Creditor Protection Proceedings. From the Smith Mine SMD delivered approximately 81,078 tons of ore containing an estimated 13,729 ounces of gold from the Smith mine for Q2-14. This represents mine production of 891 TPD in Q2-14, below the targeted 1,200 TPD. This is a decrease of mined ore from the Smith mine from Q2-13, which was 137,978 tons mined, containing an estimated 18,778 ounces, an average of 1,516 TPD for that quarter. The estimated average blended grade achieved at the Smith mine was 0.17 ounces-per-ton ("OPT") in Q2-14, an increase from the 0.14 OPT achieved in Q2-13. The second quarter of 2014 marked the fourth complete quarter of full mine production from the Starvation Canyon mine which opened in the Q2-13. In Q2-14 approximately 82,862 tons of ore was mined containing an estimated 15,444 ounces, an average grade of 0.19 OPT. This mining rate translates to over 911 TPD for the quarter above the 700 TPD that was targeted. This is an increase of mined ore from the 47,390 tons mined in Q2-13 containing an estimated 8,630 ounces from Starvation Canyon mine, an average of 521 TPD for that quarter. The Company continues to explore opportunities to increase future production levels from Starvation Canyon. The SSX-Steer Mine produced 34,216 tons for Q2-14, containing an estimated 5,075 ounces, compared with 86,512 tons mined in Q2-13 containing an estimated 14,686 ounces, representing a 60% and 65% decline in production, respectively. The estimated Au grade achieved from the Q2-14 production was 0.15 OPT which was lower than that achieved in Q2-13 at 0.17 OPT. Prior to the interruption arising from the transition to contract mining in June 2014, the operations experienced a decline in performance as a result of low equipment availability (lack of parts) and necessary mine supplies required for backfill and development. During the month of June SMD prioritized the required backfill and development needed limiting overall production during that period. Jerritt Canyon Processing Overview The Jerritt Canyon roaster facility processed approximately 306,285 tons in Q2-14, a 7% decrease from the approximately 328,606 tons processed through the roasters in Q2-13. The decrease in mill throughput in Q2-14 compared to Q2-13 arose primarily due to the slow startup after the 21 day maintenance shutdown in March, 2014 and also from the processing of higher work index third party ores. Future third party ore deliveries will be closer in nature to those more suitable for the Jerritt Canyon roaster processing facility and will not have a significant impact on operations. Processing rates in June were also hampered by a slowdown in the provision of materials and supplies, including reagents, as a result of the Creditor Protection Proceedings commenced on June 9, 2014. The supplies have normalized subsequently and tonnage rates have returned to normal operating levels in the third quarter. Outlook As a result of the events leading up to, and including, the initiation of the Creditor Protection Proceedings, the Company has significantly curtailed non-essential capital expenditures. With limited liquidity available during the Creditor Protection Proceedings, the Company is limiting capital expenditures and does not expect to have an active capital program beyond required expenditures for sustaining production and maintaining environmental compliance unless and until the Company successfully emerges from the Creditor Protection Proceedings. Despite the operational setbacks and lack of available liquidity, the Company believes it can sustain production levels between approximately 145,000 an 155,000 ounces from its three existing underground mines (including Starvation Canyon mine) with potential increases coming from the fourth new mine, Saval 4, with initial production targeted in the third quarter of 2014. To supplement the ores from the property, the Company has an existing toll milling agreement with Newmont to process up to 45,000 tons per month which extends to December 31, 2014, adding incremental revenues and cash flows to the Jerritt Canyon operation. QP and Quality Control Assaying of all mine production drill holes and muck samples from the three operating mines reported in this news release were conducted by the Jerritt Canyon Assay Lab using standard fire assay techniques and includes a Quality Assurance and Quality Control (QA/QC) program. The company's current QA/QC protocols are similar to those done in previous years which are available at the Company's website: http://www.verisgold.com/i/pdf/JC_Assay_Protocols.pdfand include using certified standard reference materials and a certified assay lab (ISO 9001:2008) for check assays. The information contained in this news release has been reviewed and approved by the Company's Vice President of Exploration, Todd Johnson, P.E., (Qualified Person per the requirements of NI 43- 101). About Veris Gold Corp. Veris Gold Corp. is a growing mid-tier North American gold producer in the business of developing and operating gold mines in geo-politically stable jurisdictions. The Company's primary assets are the permitted and operating Jerritt Canyon processing plant and gold mines located 50 miles north of Elko, Nevada, USA. The Company's primary focus is on the re-development of the Jerritt Canyon mining and processing plant. The Company also holds a portfolio of precious metals properties in British Columbia and the Yukon Territory, Canada, including the Ketza River Property. * * * As reported in the TCR on April 11, 2013, Deloitte LLP, in Vancouver, Canada, expressed substantial doubt about Veris Gold's ability to continue as a going concern, citing the Company's net losses over the past several years, working capital deficit in the amount of US$34.3 million and accumulated deficit of US$379.0 million as at Dec. 31, 2012. VERITY CORP: Delays Form 10-Q Filing, Sees $349,000 Q3 Loss ----------------------------------------------------------- Verity Corp. filed with the U.S. Securities and Exchange Commission a Notification of Late Filing on Form 12b-25 with respect to its quarterly report on Form 10-Q for the period ended June 30, 2014. The Company said the compilation, dissemination and review of the information required to be presented in the Form 10-Q for the relevant fiscal quarter has imposed time constraints that have rendered timely filing of the Form 10-Q impracticable without undue hardship and expense to the Company. The Company undertakes the responsibility to file that quarterly report no later than 5 days after its original due date. Verity Corp's loss for the three months ended June 30, 2014, is approximately $349,000 as compared to a loss of $477,522 for the three months ended June 30, 2013. Verity Corp's loss for the nine months ended June 30, 2014, is approximately $1,023,000, as compared to a loss of $ 7,024,750, for the nine months ended June 30, 2013. The nine months ended June 30, 2013 loss included impairment of goodwill of $ 5,943,533. About Verity Sioux Falls, South Dakota-based Verity Corp., formerly AquaLiv Technologies, Inc., is the parent of Verity Farms II, Inc., Aistiva Corporation (formerly AquaLiv, Inc.). Verity Farms II is dedicated to providing consumers with safe, high-quality and nutritious food sources through sustainable crop and livestock production. Aistiva's technology alters the behavior of organisms, including plants and humans, without chemical interaction. Aistiva's platform technology influences biological processes naturally and without chemical interaction. To date, Aistiva has released products in the industries of water treatment, skincare, and agriculture. Verity Corp. reported a net loss attributable to the Company of $7.59 million for the year ended Sept. 30, 2013, as compared with a net loss attributable to the Company of $623,079 during the prior fiscal year. Bongiovanni & Associates, CPA's, in Cornelius, North Carolina, 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 suffered recurring losses, has negative working capital, and has yet to generate an internal net cash flow that raises substantial doubt about its ability to continue as a going concern. VIRGINIA KERN: Case Summary & 2 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Virginia Kern, LLC 188 North Holliston Avenue, Suite 201 Pasadena, CA 91106 Case No.: 14-25728 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: August 15, 2014 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Hon. Neil W. Bason Debtor's Counsel: Tamar Terzian, Esq. TERZIAN LAW GROUP 315 W Arden Ave Suite 28 Glendale, CA 91203 Tel: 818-242-1100 Fax: 818-242-1012 Email: terzian@kingobk.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Mehran Romi Baghgegian, president/manager. A list of the Debtor's two largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb14-25728.pdf VIVA ALAMO: S&P Assigns 'BB-' Rating on $565-Mil. Secured Loans --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' rating to Viva Alamo LLC's $515 million secured term loan B and $50 million senior secured revolving credit facility. S&P also assigned its '1' recovery rating to the term loan and the facility, indicating very high (90% to 100%) recovery under a default scenario. The outlook is stable. The seven-year term loan is priced at LIBOR + 375, with a 1% LIBOR floor. The transaction backs Blackstone's $685 million purchase of three gas-fired power plants in Texas from Direct Energy. With the borrowing at Viva Alamo LLC, sponsor equity has decreased to $203 million. The transaction also includes a $50 million, five- year revolving credit facility, which a maximum-net-leverage test governs. The portfolio consists of three combined-cycle gas turbine facilities (Bastrop, Frontera, and Paris) totaling 1,295 MW in the North and South regions of the Electric Reliability Council of Texas market. Through February 2017, the facilities will sell 100% of their capacity under heat rate call option agreements to Energy America LLC, a division of Direct Energy, and will get support from a parent guarantee from Centrica. Competitive Power Ventures Inc., an experienced manager of merchant gas-fired power plants in the U.S., manages the project's assets, and NAES Corp. operates the facilities. NAES is the largest global provider of third-party power plant operations. In addition, NAES has hired the staff that operated the facilities under Direct Energy's ownership. The outlook is stable. Relatively small projects of this type normally have a rating no higher than 'BB'. A rating upgrade, not under consideration until 2017, could occur if operational performance through the forecast period enables deleveraging of the portfolio by 20%, and there is visibility into merchant pricing that will likely to support DSCR levels of about 2.5x. Conversely, a ratings downgrade could occur if operational issues emerge that result in DSCRs declining to 1.7x. In the merchant period, S&P could lower ratings if DSCR levels are below 2x, and/or debt pay-down lags, and refinancing leverage levels are expected to be above $250 per kilowatt. WALTER ENERGY: S&P Raises CCR to 'CCC+'; Outlook Negative --------------------------------------------------------- Standard & Poor's Ratings Services said it raised its corporate credit rating on Birmingham, Ala.-based Walter Energy Inc. to 'CCC+' from 'SD'. The outlook is negative. At the same time, S&P raised its issue-level rating on the company's 9.875% senior unsecured notes due 2020 to 'CCC-' from 'D'. The recovery rating on the notes remains '6', indicating S&P's expectation of negligible recovery (0% to 10%) in the event of payment default. "The negative outlook reflects our expectation that weak met coal market conditions will persist, which will pressure the company's liquidity position," said William Ferara. "We also expect very weak credit measures in 2014, with debt leverage above 20x and EBITDA interest coverage of less than 1x in 2014." S&P believes the company's capital structure is likely unsustainable in the long-term absent an improvement in met coal prices. S&P could lower its rating if met coal prices further deteriorated, liquidity became further constrained, or negative cash flow from operations were sustained. S&P could also lower the rating if the company were to risk a breach of its financial covenant. This could occur if the company needed to draw more than 30% on its revolving credit facility. S&P could revise the outlook to stable if market conditions improved and leverage began to trend toward 10x, with EBITDA interest coverage comfortably of about 1.25x. This is highly unlikely, in our view, to occur over the next few quarters. * Firm Suing 270 Debtors Daily Accused of High-Speed Errors ----------------------------------------------------------- Patrick G. Lee, writing for Bloomberg News, reported that the Consumer Financial Bureau has filed a lawsuit against Frederick J. Hanna & Associates P.C., marking the bureau's first enforcement attempt against debt-collection law firms, which make money by suing debtors in court, often on behalf of firms that bought the debts from banks for pennies on the dollar. According to the report, the bureau's suit alleges that Hanna churns out hundreds of lawsuits each day -- many against consumers who don't owe money or owe a different amount. Hanna's lawyers violated the law by filing suits throughout Georgia without verifying facts, the bureau alleges, relying instead on an automated system and hundreds of non-lawyer staff, the report related. * Bitcoin's Price Sinks but Cases Little Alarm Among Traders ------------------------------------------------------------ Sydney Ember, writing for The New York Times' DealBook, reported that the price of Bitcoin dropped 12% to $435.60 from $492.95 on Aug. 18, but those familiar with Bitcoin shrugged off the latest price movement, which they said was well within the typical range for the currency. According to the report, the price, on Aug. 18, also briefly plunged to $309 on BTC-e, an exchange with shadowy backing, although it may have been the result of a glitch and the price quickly recovered to where it was trading before. The DealBook said Bitcoin's price has been trending downward in recent weeks, but the latest decline after a period of relative stability comes as new regulations and general stock market malaise have taken hold. New York State's proposed regulation of virtual currency companies, the Consumer Financial Protection Bureau's recent warning against digital money and the Bitcoin market's lack of liquidity may all have contributed to the recent drop, the DealBook related, citing experts. * New York Regulator Announces Settlement With PwC -------------------------------------------------- Ben Protess, writing for The New York Times' DealBook, reported that New York State's financial regulator announced a settlement deal with the giant consulting firm PricewaterhouseCoopers, capping an investigation into the firm's cozy ties with Bank of Tokyo-Mitsubishi UFJ, one of the world's biggest banks. According to the report, the PwC will pay a $25 million fine and will be prevented from letting its regulatory consulting unit from performing certain assignments on behalf of New York-regulated banks for two years. The report related that in 2007, as the bank was facing regulatory scrutiny for doing business with countries blacklisted by the United States, it hired PwC to conduct a review of transactions with Iran and other sanctioned countries, including some transfers routed through its New York branch. * Private Equity Firms Agree to Settle Lawsuit on Collusion ----------------------------------------------------------- William Alden, writing for The New York Times' DealBook, reported that Kohlberg Kravis Roberts, Blackstone Group, and TPG, have agreed to pay a combined $325 million to settle accusations that they colluded with one another to drive down the prices of corporate takeover targets. According to the report, the three firms have agreed to settle all claims without admitting wrongdoing, and they will decide among themselves how to split up the payment. * Car Loans Found to Lead to Bankruptcy --------------------------------------- The Editorial Board of The New York Times reported that the federal government must do to the auto lending industry what it did to the mortgage industry after a recent report found that ruinously priced loans carried interest rates that sometimes exceeded 23 percent, which leads some borrows into bankruptcy. A full-text copy of the editorial is available at http://is.gd/m3rEAO * Argentina Appeals to White House In Sovereign Debt Crisis ----------------------------------------------------------- Law360 reported that Argentina's government reportedly appealed to the White House to rein in what it sees as overreach from the federal judge handling its dispute with hedge funds holding around $1.5 billion in government bonds, while denying speculation that it is seeking a rescue from the Argentine banking sector. According to the report, the appeal follows U.S. District Judge Thomas P. Griesa's threat to hold Argentina in contempt of court if it continues making ?false and misleading? public pronouncements about its sovereign debt crisis. * * * The Troubled Company Reporter, on Aug. 8, 2014, reported that Moody's Latin America Agente de Calificacion de Riesgo has affirmed the deposit, debt, issuer and corporate family ratings on Argentina's banks and financial institutions, both on the global and national scales. The outlook on these ratings has been changed to negative from stable. At the same time, the rating agency has affirmed the banks' Caa2 foreign-currency deposit ratings and Not- Prime short-term ratings. The banks' standalone E financial strength ratings corresponding to caa1 baseline credit assessments (BCA) have also been affirmed. The TCR, on Aug. 6, 2014, also reported that DBRS Inc. has downgraded Argentina's long-term foreign currency issuer rating from CC to Selective Default (SD). The short-term foreign currency rating has been downgraded to Default (D), from R-5. The long-term and short-term local currency issuer ratings have been confirmed at B (low) and R-5, respectively. The trend on the long-term local currency rating is Negative, and the trend on the short-term local currency rating is Stable. * Combined Defaults and Deferrals Decreased in July, Fitch Says --------------------------------------------------------------- According to the latest index results published by Fitch Ratings, the number of combined defaults and deferrals for U.S. bank TruPS CDOs has decreased to 22.7% at the end of July compared with 22.9% at the end of June. In July, seven banks deferring interest on a total notional of $65.6 million in 14 CDOs cured. Three of these banks, or $26.5 million in notional, were due to reach the end of the maximum allowable five-year deferral period in 2014. One issuer representing $5 million in collateral deferred interest on its TruPS in July. There were no new defaults in July. However, a defaulted issuer with total notional of $15 million from two CDOs has been sold out of the portfolios at 8% recovery. Across 78 Fitch-rated TruPS CDOs, 231 bank defaulted issuers remain in the portfolio, representing approximately $6.3 billion of collateral. Additionally, 197 issuers are currently deferring interest payments on $2.3 billion of collateral. * Consumer Credit in U.S. Rises on Demand for Car, Student Loans ---------------------------------------------------------------- Lorraine Woellert, writing for Bloomberg News, reported that consumer borrowing rose in June as American households took out auto and student loans. According to the report, the $17.3 billion increase in consumer credit followed a $19.6 billion May advance, the Federal Reserve reported on Aug. 8 in Washington. Non-revolving loans, including borrowing for cars and college tuition, climbed $16.3 billion, the report said. * FICO Recalibrates Its Credit Scores ------------------------------------- Annamaria Andriotis, writing for The Wall Street Journal, reported that Fair Isaac Corp. said it will stop including in its FICO credit-score calculations any record of a consumer failing to pay a bill if the bill has been paid or settled with a collection agency. The company, according to the Journal, also will give less weight to unpaid medical bills that are with a collection agency, following months of discussions with lenders and the Consumer Financial Protection Bureau aimed at boosting lending without creating more credit risk. The changes are expected to boost consumer lending, especially among borrowers shut out of the market or charged high interest rates because of their low scores, the report related. * Lewis Brisbois Adds Commercial Litigation Pro to SF Office ------------------------------------------------------------ Law360 reported that Lewis Brisbois Bisgaard & Smith LLP said it has added to the ranks of its San Francisco office a commercial litigation and corporate expert who returned to law after racking up credits in movies like "Scarface" and TV shows such as "M*A*S*H" and "Dallas." According to the report, Dennis Holahan focuses his practice on entertainment and business-related litigation, transactional work for the entertainment industry, and business financial contracts and bankruptcy litigation. Mr. Holahan may be reached at: Dennis J. Holahan, Esq. LEWIS BRISBOIS BISGAARD & SMITH LLP 333 Bush Street Suite 1100 San Francisco, CA 94104 Tel: (415) 438-5917 Fax: (415) 434-0882 Email: Dennis.Holahan@lewisbrisbois.com * Large Companies With Insolvent Balance Sheet ---------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 118.9 (8.4) 1.0 ABSOLUTE SOFTWRE OU1 GR 118.9 (8.4) 1.0 ABSOLUTE SOFTWRE ALSWF US 118.9 (8.4) 1.0 ACHAOGEN INC AKAO US 13.8 (0.0) 2.1 ACTINIUM PHARMAC ATNM US 6.6 (13.5) (13.5) ADVANCED EMISSIO ADES US 106.4 (46.1) (15.3) ADVANCED EMISSIO OXQ1 GR 106.4 (46.1) (15.3) ADVENT SOFTWARE ADVS US 452.2 (86.0) (99.3) ADVENT SOFTWARE AXQ GR 452.2 (86.0) (99.3) AEMETIS INC AMTX US 99.4 (4.2) (14.6) AEROHIVE NETWORK HIVE US 69.1 (5.2) 26.7 AIR CANADA-CL A ADH GR 10,522.0 (1,822.0) (226.0) AIR CANADA-CL A ADH TH 10,522.0 (1,822.0) (226.0) AIR CANADA-CL A AIDIF US 10,522.0 (1,822.0) (226.0) AIR CANADA-CL A AC/A CN 10,522.0 (1,822.0) (226.0) AIR CANADA-CL B AIDEF US 10,522.0 (1,822.0) (226.0) AIR CANADA-CL B AC/B CN 10,522.0 (1,822.0) (226.0) ALDER BIOPHARMAC ALDR US 16.6 (37.2) (8.4) ALLIANCE HEALTHC AIQ US 468.1 (131.0) 59.7 AMC NETWORKS-A AMCX US 3,685.9 (396.1) 689.3 AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2) AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 AMYRIS INC AMRS US 236.8 (112.5) 33.5 ANGIE'S LIST INC ANGI US 128.4 (36.6) (54.9) ANGIE'S LIST INC 8AL GR 128.4 (36.6) (54.9) ANGIE'S LIST INC 8AL TH 128.4 (36.6) (54.9) ARRAY BIOPHARMA ARRY US 135.2 (23.3) 72.2 ASPEN AEROGELS I ASPN US 88.2 (80.7) (5.2) AUTOZONE INC AZ5 GR 7,371.8 (1,808.2) (1,016.1) AUTOZONE INC AZ5 TH 7,371.8 (1,808.2) (1,016.1) AUTOZONE INC AZO US 7,371.8 (1,808.2) (1,016.1) BERRY PLASTICS G BERY US 5,419.0 (118.0) 654.0 BIOCRYST PHARM BO1 TH 43.4 (5.7) 22.0 BIOCRYST PHARM BO1 GR 43.4 (5.7) 22.0 BIOCRYST PHARM BCRX US 43.4 (5.7) 22.0 BRP INC/CA-SUB V DOO CN 2,019.7 (17.0) 172.7 CABLEVISION SY-A CVY GR 6,701.1 (5,133.2) 338.4 CABLEVISION SY-A CVC US 6,701.1 (5,133.2) 338.4 CABLEVISION-W/I 8441293Q US 6,701.1 (5,133.2) 338.4 CABLEVISION-W/I CVC-W US 6,701.1 (5,133.2) 338.4 CADIZ INC CDZI US 57.9 (45.6) 4.7 CAESARS ENTERTAI CZR US 27,069.4 (2,578.4) 1,716.6 CAESARS ENTERTAI C08 GR 27,069.4 (2,578.4) 1,716.6 CALLIDUS CAPITAL 28K GR 444.5 (4.3) - CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CASELLA WASTE CWST US 649.9 (8.5) (18.9) CC MEDIA-A CCMO US 14,752.2 (9,315.2) 1,225.6 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CENVEO INC CVO US 1,206.8 (511.7) 145.0 CHOICE HOTELS CZH GR 628.4 (412.5) 184.3 CHOICE HOTELS CHH US 628.4 (412.5) 184.3 CIENA CORP CIEN US 1,795.5 (80.8) 641.3 CIENA CORP CIE1 TH 1,795.5 (80.8) 641.3 CIENA CORP CIEN TE 1,795.5 (80.8) 641.3 CIENA CORP CIE1 GR 1,795.5 (80.8) 641.3 CINCINNATI BELL CBB US 2,176.9 (556.0) 337.7 DENNY'S CORP DENN US 284.2 (0.0) (21.5) DENNY'S CORP DE8 GR 284.2 (0.0) (21.5) DEX MEDIA INC DXM US 2,275.0 (782.0) 162.0 DEX MEDIA INC 9DX GR 2,275.0 (782.0) 162.0 DIRECTV DTV US 22,126.0 (6,127.0) (624.0) DIRECTV DIG1 GR 22,126.0 (6,127.0) (624.0) DOMINO'S PIZZA EZV TH 495.7 (1,289.7) 105.0 DOMINO'S PIZZA DPZ US 495.7 (1,289.7) 105.0 DOMINO'S PIZZA EZV GR 495.7 (1,289.7) 105.0 DUN & BRADSTREET DNB US 1,773.4 (1,077.1) (60.3) DUN & BRADSTREET DB5 GR 1,773.4 (1,077.1) (60.3) EDGEN GROUP INC EDG US 883.8 (0.8) 409.2 ELEVEN BIOTHERAP EBIO US 5.1 (6.1) (2.9) EMPIRE RESORTS I NYNY US 38.7 (14.0) (14.6) FAIRPOINT COMMUN FRP US 1,546.4 (338.8) 25.3 FERRELLGAS-LP FEG GR 1,589.9 (88.9) 89.0 FERRELLGAS-LP FGP US 1,589.9 (88.9) 89.0 FREESCALE SEMICO 1FS TH 3,265.0 (3,728.0) 1,334.0 FREESCALE SEMICO 1FS GR 3,265.0 (3,728.0) 1,334.0 FREESCALE SEMICO FSL US 3,265.0 (3,728.0) 1,334.0 GENCORP INC GCY GR 1,675.6 (49.0) 86.7 GENCORP INC GY US 1,675.6 (49.0) 86.7 GENTIVA HEALTH GHT GR 1,234.9 (297.6) 99.2 GENTIVA HEALTH GTIV US 1,234.9 (297.6) 99.2 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GLOBALSTAR INC GSAT US 1,350.0 (74.3) (97.3) GOLD RESERVE INC GDRZF US 21.5 (5.6) 1.2 GOLD RESERVE INC GRZ CN 21.5 (5.6) 1.2 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 GTT COMMUNICATIO GTT US 168.5 (0.1) (25.3) HCA HOLDINGS INC 2BH GR 29,822.0 (6,588.0) 2,877.0 HCA HOLDINGS INC HCA US 29,822.0 (6,588.0) 2,877.0 HCA HOLDINGS INC 2BH TH 29,822.0 (6,588.0) 2,877.0 HD SUPPLY HOLDIN HDS US 6,552.0 (750.0) 1,446.0 HERBALIFE LTD HLF US 2,435.7 (404.1) 552.4 HERBALIFE LTD HOO GR 2,435.7 (404.1) 552.4 HOVNANIAN ENT-A HOV US 1,838.8 (462.5) 1,122.1 HOVNANIAN ENT-B HOVVB US 1,838.8 (462.5) 1,122.1 HOVNANIAN-A-WI HOV-W US 1,838.8 (462.5) 1,122.1 HUGHES TELEMATIC HUTC US 110.2 (101.6) (113.8) HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) IMPRIVATA INC IMPR US 35.6 (4.3) (10.8) INCYTE CORP INCY US 679.1 (171.0) 464.6 INCYTE CORP ICY GR 679.1 (171.0) 464.6 INFOR US INC LWSN US 6,515.2 (555.7) (303.6) IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU 1JE GR 1,642.6 (117.4) 221.0 JUST ENERGY GROU JE CN 1,642.6 (117.4) 221.0 JUST ENERGY GROU JE US 1,642.6 (117.4) 221.0 KINAXIS INC KXS CN 44.6 (70.4) (6.4) L BRANDS INC LTD GR 6,663.0 (609.0) 1,070.0 L BRANDS INC LTD TH 6,663.0 (609.0) 1,070.0 L BRANDS INC LB US 6,663.0 (609.0) 1,070.0 LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9 LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9 LEE ENTERPRISES LEE US 797.3 (155.6) 0.8 LORILLARD INC LLV GR 2,893.0 (2,228.0) 900.0 LORILLARD INC LO US 2,893.0 (2,228.0) 900.0 LORILLARD INC LLV TH 2,893.0 (2,228.0) 900.0 LUMENPULSE INC LMP CN 29.4 (38.4) 3.5 MANNKIND CORP NNF1 GR 236.3 (46.4) (74.3) MANNKIND CORP NNF1 TH 236.3 (46.4) (74.3) MANNKIND CORP MNKD US 236.3 (46.4) (74.3) MARRIOTT INTL-A MAQ GR 6,830.0 (1,720.0) (1,153.0) MARRIOTT INTL-A MAQ TH 6,830.0 (1,720.0) (1,153.0) MARRIOTT INTL-A MAR US 6,830.0 (1,720.0) (1,153.0) MDC PARTNERS-A MD7A GR 1,685.0 (87.5) (228.9) MDC PARTNERS-A MDZ/A CN 1,685.0 (87.5) (228.9) MDC PARTNERS-A MDCA US 1,685.0 (87.5) (228.9) MERITOR INC MTOR US 2,810.0 (527.0) 373.0 MERITOR INC AID1 GR 2,810.0 (527.0) 373.0 MERRIMACK PHARMA MACK US 165.0 (65.8) 81.9 MONEYGRAM INTERN MGI US 4,784.5 (142.0) 119.2 MORGANS HOTEL GR M1U GR 695.2 (202.0) 129.7 MORGANS HOTEL GR MHGC US 695.2 (202.0) 129.7 MOXIAN CHINA INC MOXC US 0.0 (0.0) (0.0) MPG OFFICE TRUST MPG US 1,280.0 (437.3) - NATIONAL CINEMED NCMI US 1,005.2 (188.3) 79.1 NATIONAL CINEMED XWM GR 1,005.2 (188.3) 79.1 NAVISTAR INTL NAV US 7,727.0 (4,072.0) 1,070.0 NAVISTAR INTL IHR GR 7,727.0 (4,072.0) 1,070.0 NAVISTAR INTL IHR TH 7,727.0 (4,072.0) 1,070.0 NEKTAR THERAPEUT NKTR US 478.1 (35.4) 213.9 NEKTAR THERAPEUT ITH GR 478.1 (35.4) 213.9 NEW ENG RLTY-LP NEN US 179.7 (24.5) - NORTHWEST BIO NBYA GR 12.5 (31.1) (31.2) NORTHWEST BIO NWBO US 12.5 (31.1) (31.2) NYMOX PHARMACEUT NYMX US 0.9 (6.3) (3.8) OMEGA COMMERCIAL OCFN US 0.3 (2.7) (3.0) OMEROS CORP OMER US 41.0 (10.6) 26.8 OMEROS CORP 3O8 GR 41.0 (10.6) 26.8 OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) OPOWER INC OPWR US 63.1 (6.3) (11.9) PALM INC PALM US 1,007.2 (6.2) 141.7 PHIBRO ANIMAL HE PAO EU 473.3 (78.7) 177.3 PHIBRO ANIMAL HE PAHC LN 473.3 (78.7) 177.3 PHIBRO ANIMAL HE PAO GR 473.3 (78.7) 177.3 PHIBRO ANIMAL-A PAHC US 473.3 (78.7) 177.3 PHILIP MORRIS IN PM1CHF EU 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM US 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PMI SW 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM1EUR EU 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN 4I1 TH 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM FP 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM1 TE 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN 4I1 GR 36,325.0 (7,847.0) 1,130.0 PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLY GEM HOLDINGS PGEM US 1,096.8 (91.4) 217.3 PROTALEX INC PRTX US 2.8 (7.0) 2.3 PROTECTION ONE PONE US 562.9 (61.8) (7.6) QUALITY DISTRIBU QLTY US 443.2 (51.2) 106.0 QUALITY DISTRIBU QDZ GR 443.2 (51.2) 106.0 QUINTILES TRANSN Q US 2,978.6 (621.6) 511.6 RADIUS HEALTH IN RDUS US 12.8 (24.5) (22.7) RADNET INC PQI GR 737.2 (9.3) 61.4 RADNET INC RDNT US 737.2 (9.3) 61.4 REGAL ENTERTAI-A RGC US 2,675.7 (750.5) 26.2 REGAL ENTERTAI-A RETA GR 2,675.7 (750.5) 26.2 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTPATH INC PRM US 208.0 (91.7) 3.6 RETROPHIN INC RTRX US 94.0 (35.4) (107.0) REVLON INC-A REV US 1,938.7 (571.8) 275.3 REVLON INC-A RVL1 GR 1,938.7 (571.8) 275.3 RITE AID CORP RAD US 6,946.5 (2,046.4) 1,643.0 RITE AID CORP RTA GR 6,946.5 (2,046.4) 1,643.0 ROCKWELL MEDICAL RMTI US 26.8 (3.5) 8.2 ROCKWELL MEDICAL RWM GR 26.8 (3.5) 8.2 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 RYERSON HOLDING RYI US 1,989.5 (114.5) 754.6 SALLY BEAUTY HOL S7V GR 1,983.6 (362.8) 616.8 SALLY BEAUTY HOL SBH US 1,983.6 (362.8) 616.8 SEQUENOM INC SQNM US 131.6 (49.3) 51.4 SERVICEMASTER GL SERV US 5,197.0 (369.0) 240.0 SILVER SPRING NE SSNI US 534.3 (111.7) 83.2 SIRIUS XM CANADA XSR CN 409.2 (78.8) (157.0) SPORTSMAN'S WARE SPWH US 272.7 (52.1) 75.1 SUNGAME CORP SGMZ US 2.2 (3.6) (3.9) SUPERVALU INC SJ1 TH 4,354.0 (682.0) 106.0 SUPERVALU INC SVU US 4,354.0 (682.0) 106.0 SUPERVALU INC SVU* MM 4,354.0 (682.0) 106.0 SUPERVALU INC SJ1 GR 4,354.0 (682.0) 106.0 THERAVANCE HVE GR 605.6 (187.5) 303.2 THERAVANCE THRX US 605.6 (187.5) 303.2 THRESHOLD PHARMA THLD US 94.7 (29.0) 50.3 THRESHOLD PHARMA NZW1 GR 94.7 (29.0) 50.3 TRANSDIGM GROUP T7D GR 6,711.0 (1,591.5) 1,073.0 TRANSDIGM GROUP TDG US 6,711.0 (1,591.5) 1,073.0 TRINET GROUP INC TNET US 1,340.4 (46.1) 93.8 TRINET GROUP INC TN3 GR 1,340.4 (46.1) 93.8 TRUPANION INC TRUP US 49.0 (5.5) 7.2 ULTRA PETROLEUM UPM GR 2,958.1 (123.5) (352.9) ULTRA PETROLEUM UPL US 2,958.1 (123.5) (352.9) UNISYS CORP UISEUR EU 2,336.1 (628.5) 369.7 UNISYS CORP USY1 GR 2,336.1 (628.5) 369.7 UNISYS CORP USY1 TH 2,336.1 (628.5) 369.7 UNISYS CORP UIS1 SW 2,336.1 (628.5) 369.7 UNISYS CORP UISCHF EU 2,336.1 (628.5) 369.7 UNISYS CORP UIS US 2,336.1 (628.5) 369.7 VARONIS SYSTEMS VRNS US 33.7 (1.5) 1.8 VECTOR GROUP LTD VGR US 1,642.7 (31.1) 560.0 VECTOR GROUP LTD VGR GR 1,642.7 (31.1) 560.0 VENOCO INC VQ US 738.2 (130.8) (13.4) VERISIGN INC VRS GR 2,322.6 (632.9) (246.0) VERISIGN INC VRS TH 2,322.6 (632.9) (246.0) VERISIGN INC VRSN US 2,322.6 (632.9) (246.0) VERSO PAPER CORP VRS US 1,037.1 (549.4) 28.0 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WTW US 1,526.4 (1,397.9) 13.8 WEIGHT WATCHERS WW6 GR 1,526.4 (1,397.9) 13.8 WEIGHT WATCHERS WW6 TH 1,526.4 (1,397.9) 13.8 WEST CORP WSTC US 3,876.0 (672.7) 264.3 WESTMORELAND COA WME GR 1,583.7 (260.6) 50.8 WESTMORELAND COA WLB US 1,583.7 (260.6) 50.8 XERIUM TECHNOLOG TXRN GR 633.4 (8.9) 104.5 XERIUM TECHNOLOG XRM US 633.4 (8.9) 104.5 YRC WORLDWIDE IN YEL1 GR 2,179.5 (362.4) 201.2 YRC WORLDWIDE IN YRCW US 2,179.5 (362.4) 201.2 ********* 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 ***