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/raid1/www/Hosts/bankrupt/TCR_Public/140820.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, August 20, 2014, Vol. 18, No. 231 Headlines 21ST CENTURY ONCOLOGY: Expects to File Q2 Report Next Week A.M. CASTLE: S&P Revises Outlook to Negative & Affirms 'B-' CCR ADVANCED SLEEP: MCG Capital to Sell Collateral on Sept. 2 AEROGROW INTERNATIONAL: SMG Growing Media Holds 33% Stake AFFINITY GAMING: S&P Affirms 'B' Corp. Credit Rating AMERICAN APPAREL: Narrows Its Losses, But Troubles Remain AMERICAN MEDIA: Incurs $54.3 Million Net Loss in Fiscal 2014 ANDALAY SOLAR: Reports $636,000 Net Loss in Second Quarter ASSURED PHARMACY: Pinewood et al. Report 53% Equity Stake ATLAS PIPELINE: S&P Revises Outlook to Stable & Affirms 'B+' CCR AURORA DIAGNOSTICS: Reports Q2 Net Loss of $2.9 Million AUXILIUM PHARMACEUTICALS: S&P Affirms 'CCC' CCR; Outlook Negative BANK OF THE CAROLINAS: Registers 458.1MM Shares for Resale BERNARD L. MADOFF: Trustee Can't Block Feeder-Fund Deals BOMBAY & CO: In CCAA Proceedings; Richter Named as Monitor BROWNIE'S MARINE: Delays Second Quarter Form 10-Q BUFFALO PARK: Owners to Seek Plan Approval Sept. 23 BUFFALO PARK: Lewises Reach Agreement with Nationstar C&K MARKET: Emerges From Chapter 11 Reorganization CAPITOL CITY: Needs More Time to File Form 10-Q CASPIAN SERVICES: Buys Kyran From Topaz for $100 CATASYS INC: Reports $27.4 Million Net Loss in Second Quarter CHINA SHIANYUN: Needs More Time to File Form 10-Q CODA HOLDINGS: Estate Hits Ex-JV Partner With $14M Clawback Suit COHAWKIN ROAD: Case Summary & 5 Largest Unsecured Creditors COMMUNITYONE BANCORP: John Redett Qualified to Serve as Director CRUNCHIES FOOD: Files Bare-Bones Chapter 11 Petition CUBIC ENERGY: Chief Financial Officer Resigns DAEHAN SHIPBUILDING: Bankrupt Korean Shipbuilder Files in U.S. DAEHAN SHIPBUILDING: Chapter 15 Case Summary DEALMAKERS CONSULTANTS: Voluntary Chapter 11 Case Summary DETROIT, MI: First Witness Testifies at Plan Trial DOLPHIN DIGITAL: Incurs $2.5 Million Net Loss in 2013 DOLPHIN DIGITAL: Delays Filing of Quarterly Reports EAGLE BULK: Limited Claims Bar Date Set for Sept. 2 ELBIT IMAGING: Shareholders Approve 1-for-20 Reverse Stock Split ELEPHANT TALK: Reports $6.9 Million of Revenue in 2nd Quarter ENERGY FUTURE: Panel Taps Morrison & Foerster as Counsel ENERGY FUTURE: Creditors' Panel Hires Polsinelli as Co-counsel ENERGY FUTURE: Creditors' Panel Taps FTI Consulting as Advisor ENERGY FUTURE: Creditors' Panel Taps Lazard as Investment Banker ENERGY FUTURE: Executive Bonuses May Top $18 Million ENERGY SERVICES: Posts $439,000 Net Income in Third Quarter EPAZZ INC: Needs More Time to File Form 10-Q Report ERF WIRELESS: Needs More Time to File Form 10-Q Report ERF WIRELESS: Issued 1 Million Common Shares ESSAR STEEL: S&P Lowers CCR to 'SD' on Planned Restructuring EVERYWARE GLOBAL: Incurs $26.9 Million Net Loss in Second Quarter EXIDE TECHNOLOGIES: U.S. Trustee Responds to Bid for Equity Panel EXIDE TECHNOLOGIES: Taps Akin Gump as Board Counsel EXIDE TECHNOLOGIES: Execs Can't Escape Suit Over Enviro Issues FOREVER GREEN: Dismissal of Involuntary Petition Affirmed FORMER PAYROLL: Voluntary Chapter 11 Case Summary FREEDOM INDUSTRIES: Judge Again Limits Fee Payments FREEDOM INDUSTRIES: Files Creditor-Payment Plan FULLCIRCLE REGISTRY: Incurs $165,500 Net Loss in 2nd Quarter FUSION TELECOMMUNICATIONS: Hires EisnerAmper as New Accountant GARCIA TENT: Case Summary & 10 Largest Unsecured Creditors GENIUS BRANDS: Reports $1.1 Million Second Quarter Net Loss GEOMET INC: Posts $57.7 Million Net Income in Second Quarter HAROLD L. ROSBOTTOM: 5th Circuit Affirms Conviction IDEARC INC: Fifth Circuit Bars Creditors from Jury on Fraud Suit IDERA PHARMACEUTICALS: Incurs $8.3 Million Net Loss in Q2 IMAGEWARE SYSTEMS: Conference Call Held to Discuss Results INDEPENDENCE TAX II: Delays 10-Q Over Management Changes INDUSTRY MANAGEMENT: Case Summary & 2 Top Unsecured Creditors INTERMETRO COMMUNICATIONS: Delays Q2 Form 10-Q Filing INTERMETRO COMMUNICATIONS: Douglas Benson Holds 32.6% Stake KIRCH MEDIA: Deutsche Bank CEO Hit With Fraud Charges LANTHEUS MEDICAL: Incurs $1.6 Million Net Loss in Second Quarter LEO MOTORS: Incurs $315,000 Net Loss in Second Quarter LINCOLN ROAD: Case Summary & 4 Unsecured Creditors LIQUIDMETAL TECHNOLOGIES: Incurs $2.5MM Net Loss in 2nd Quarter LOMBARD FLATS: Contempt Order Against Cheuk Tin Yan Upheld LOPES DOOR: First Creditors Meeting on Aug. 27 in Toronto MARINA BIOTECH: Delays Second Quarter Form 10-Q MASHANTUCKET WESTERN: S&P Lowers ICR to 'CCC-'; Outlook Neg. MICHELE DICOSOLA: September 2014 Trial Set in Government's Suit MILESTONE SCIENTIFIC: Incurs $169,000 Net Loss in 2nd Quarter MINT LEASING: Incurs $2.8 Million Net Loss in Second Quarter MMRGLOBAL INC: Incurs $1.4 Million Net Loss in Second Quarter MOMENTIVE PERFORMANCE: Plan Hearing Begins; Exclusivity Extended MOMENTIVE PERFORMANCE: Insurance Premium Financing Deal Okayed MOMENTIVE PERFORMANCE: Amends Schedules of Assets and Liabilities MOMENTIVE PERFORMANCE: Net Loss Widens to $106MM at 2014 Q2 MONARCH COMMUNITY: Posts $46,000 Net Income in 2nd Qtr 2014 MORRISON INFORMATICS: Shareholder Suit Over Embezzlement Revived N-VIRO INTERNATIONAL: Delays Second Quarter Form 10-Q Report NEPHROS INC: Incurs $654,000 Net Loss in Second Quarter NET ELEMENT: Posts $1.3 Million Net Income in Second Quarter NEW LIFE: Gets Conditional Confirmation of Plan NEXT 1 INTERACTIVE: Amends Certificates of Designations NII HOLDINGS: Reports $968 Million of Revenue in Second Quarter NTELOS HOLDINGS: S&P Raises Corp. Credit Rating to 'B+' OSAGE EXPLORATION: Had $4MM Q2 Loss, Warns of Possible Bankruptcy OXYSURE SYSTEMS: Incurs $320,000 Net Loss in Second Quarter PACIFIC GOLD: Delays Second Quarter Form 10-Q PARSLEY ENERGY: S&P Raises CCR to 'B'; Outlook Stable PLUG POWER: Swings to $3.8MM Net Income in 2nd Qtr 2014 POSITIVEID CORP: Incurs $1.2 Million Net Loss in Second Quarter POSITIVEID CORP: Asher Enterprises No Longer a Shareholder POSITRON CORP: Incurs $201,000 Net Loss in Second Quarter PRESIDENTIAL REALTY: Posts $70,000 Net Income in Second Quarter PRESSURE BIOSCIENCES: Incurs $721,000 Net Loss in 2nd Quarter PURADYN FILTER: Incurs $251,500 Net Loss in Second Quarter PT-1 COMMS: Bankr. Court Lacked Jurisdiction to Award Refund R.R. DONNELLEY: Plunges Into Market for Printed Electronic Parts REALOGY CORP: Closes Acquisition of ZipRealty RESPONSE BIOMEDICAL: Inks Separation Pact with Timothy Shannon RESPONSE BIOMEDICAL: Posts C$288,000 Net Income in Q2 RESTORGENEX CORP: Incurs $4.4 Million Net Loss in Second Quarter REVEL AC: To Close Down After Labor Day RICEBRAN TECHNOLOGIES: Incurs Second Quarter Net Loss of $15.7MM RIVIERA HOLDINGS: In Covenant Talks; Forbearance Moved to Aug. 31 S.E. SHIRES: Judge Says Liquidation Can Stay in Chapter 11 SALON MEDIA: Incurs $886,000 Net Loss in First Quarter SALUBRIOUS PHARMACEUTICAL: Files Bare-Bones Ch. 11 Petition SB PARTNERS: Incurs $205,700 Net Loss in Second Quarter SILVERSUN TECHNOLOGIES: Posts $60,000 Second Quarter Net Profit SKYLINE MANOR: Court Okays Douglas Kucera as Trustee's Accountant SPEEDEMISSIONS INC: Incurs $453,000 Net Loss in Second Quarter SPENDSMART NETWORKS: Incurs $2.5-Mil. Net Loss in June 30 Qtr STELLAR BIOTECHNOLOGIES: Copies of Charter Filed with SEC SUNLAND INC: Aug 29 Hearing to Approve Salmonella Claims Protocol SUNVALLEY SOLAR: Reports $274,000 Net Loss in Second Quarter TELECONNECT INC: Reports $768,000 Net Loss in June 30 Quarter TN-K ENERGY: Reports $225,000 Net Loss in Second Quarter TRIPLANET PARTNERS: Court Approves EisnerAmper as Accountant UNI-PIXEL INC: To Present at 2014 Gateway Conference on Sept. 4 UNILAVA CORP: Delays Form 10-Q Report for 2nd Quarter UNIVERSAL SOLAR: System Fault Causes Delay in 10-Q Filing USEC INC: Files Second Quarter 2014 Report With SEC UTSTARCOM HOLDINGS: Incurs $4.6 Million Second Quarter Net Loss VERMILLION INC: Eliminates SVP Sales & Marketing & CMO Positions VERSO PAPER: Incurs $42.8 Million Net Loss in Second Quarter VISION INDUSTRIES: Incurs $138,000 Net Loss in Second Quarter VISUALANT INC: Incurs $1.3 Million Net Loss in Third Quarter VYCOR MEDICAL: Incurs $1.3 Million Net Loss in Second Quarter VYCOR MEDICAL: Fountainhead Owns 50% of Common Shares VYCOR MEDICAL: Peter Zachariou Holds 25.7% of D Preferred Shares VYCOR MEDICAL: Fountainhead Owns 70% of Outstanding D Shares WAFERGEN BIO-SYSTEMS: Ends Second Quarter with $3.5MM in Cash Z TRIM HOLDINGS: Incurs $1.6 Million Net Loss in Second Quarter * New York Prosecutors Charge Payday Lenders with Usury * SEC Charges Kansas with Failure to Disclose Pension Risks * Swaps Panel Delays Payout Auction on Argentine Bonds * Deloitte CRG Wins Two TMA Transaction of the Year Awards ********* 21ST CENTURY ONCOLOGY: Expects to File Q2 Report Next Week ---------------------------------------------------------- To allow adequate time to complete its quarterly goodwill impairment review, 21st Century Oncology Holdings, Inc., has not yet filed its quarterly report on Form 10-Q for the period ended June 30, 2014. The Company expects to issue its earnings release for the quarterly period ended June 30, 2014, during the week of Aug. 18, 2014, and to file its quarterly report on Form 10-Q during the week of Aug. 25, 2014. About 21st Century 21st Century Oncology, Inc., formerly known as Radiation Therapy Services, Inc. ("RTS") owns and operates radiation treatment facilities in the US and Latin America. The Company incurred a net loss of $78.24 million in 2013 following a net loss of $151.12 million in 2012. * * * As reported by the TCR on Aug. 14, 2014, Moody's Investors Service downgraded 21st Century Oncology, Inc.'s Corporate Family Rating to Caa2 from B3 and Probability of Default Rating to Caa2-PD from B3-PD. The rating action follows the company's July 29, 2014 announcement that it has entered into a Recapitalization Support Agreement with Vestar Capital Partners and a group of holders of its outstanding subordinated notes, under which the company expects to obtain additional liquidity through an equity contribution or subordinated debt of at least $150 million on or before October 1, 2014. In the Aug. 4, 2014, edition of the TCR, Standard & Poor's Ratings Services lowered all of its ratings on 21st Century Oncology Holdings Inc., including the corporate credit rating to 'CCC+'. "We lowered our ratings because of increased risk that the company could exchange its $380 million subordinated notes for equity," said credit analyst Tulip Lim. A.M. CASTLE: S&P Revises Outlook to Negative & Affirms 'B-' CCR --------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Oak Brook, Ill.-based A.M. Castle & Co. to negative from stable. At the same time, S&P is affirming its 'B-' corporate credit rating on the company and 'B-' issue-level ratings. The recovery rating on the company's 12.75% senior secured notes is unchanged at '4', indicating S&P's expectation for average (30% to 50%) recovery in the event of payment default. "The negative outlook reflects our expectation that EBITDA interest coverage will be less than 1x for the duration of 2014 and that funds from operations [FFO] will be nominal," said Standard & Poor's credit analyst Amanda Buckland. Weak operating results through the first half of 2014 were worse than industry peers due to operational miscues and interruptions related to Castle's cost reduction program. S&P believes the worst is behind Castle because it understands the new inventory system implementation, most facility consolidations, and major sales staffing changes were completed by the end of the second quarter, but operating performance in the second half of 2014 and full-year 2015 is still coming off of nearly 18 months of weakening results. Demand from Castle's key end markets -- oil and gas and aerospace -- is expected to be positive given higher oil and gas spending budgets and stronger demand for commercial aerospace relative to 2013. However, Castle's ability to execute better sales is key in capitalizing on these trends. Industrial demand is expected to remain tepid given weakness in mining and capital goods. "We view liquidity as "adequate"; however, Castle's $125 million ABL revolving credit facility due December 2015 will become current next January. While we consider the ABL to be well over- collateralized based on quarter-end accounts receivables and inventory balances on June 30, refinancing risk will rise as the maturity date nears given the potential for unexpected, negative events. Partly mitigating this is Castle's ability to generate cash from working capital as it reduces inventory purchases during soft markets. We expect working capital inflows between $30 million and $35 million in 2014 based on management's target inventory days of 150 (before last in, first out adjustment) by year-end; we view this as achievable because Castle met its target for inventory reductions in 2013, generating nearly $90 million in cash," S&P noted. The negative outlook reflects S&P's view that overall operating results will be weak and EBITDA interest coverage will be less than 1x for full-year 2014. In 2015, S&P expects some improvement, with EBITDA interest coverage increasing above 1x, but remain cautious because operating improvement is contingent upon better execution from Castle. The outlook also reflects the possibility that liquidity may become "less than adequate" during the next 12 months should the ABL become current and the company does not have a viable plan for extension. S&P could lower the rating if Castle experiences cash burn through the next six months and its asset base continues to shrink. In S&P's view, this indicates the possibility that Castle may not be able to refinance the ABL at a level where liquidity could support a continued downturn. S&P could also lower the rating if the ABL becomes current and Castle does not have a firm plan to refinance it amid weak operating performance, because S&P would then consider liquidity to be "less than adequate" or even "weak." An upgrade in the next year is unlikely given S&P's cautious view of operating results through 2015. However, if operations and cash flow improved such that debt to EBITDA decreased to less than 5x, S&P would consider an upgrade. ADVANCED SLEEP: MCG Capital to Sell Collateral on Sept. 2 --------------------------------------------------------- MCG Capital Corporation, in its capacity as administrative agent on behalf of and for the benefit of itself and the lenders under a security agreement dated Oct. 12, 2006, will dispose of collateral either at: -- a public sale at 10:30 a.m. on Sept. 2, 2014, at the Floyd County Courthouse, 3 Government Plaza, Rome, Georgia 30161; or -- one or more public or private sales thereafter. The Debtors are Advanced Sleep Concepts, Inc., Spears Mattress Co., Mattressmax In., and Mattress Barn, Inc. The sale will exclude any fixtures owned by Spears Mattress. At any public sale, the collateral is expected to be sold in a single block to a single purchaser. However, the Secured lender reserves the right to designate lots and parcels for sale. The Secured lender also reserves the right to credit bid. The Secured lender also may forego with conducting the public sale and proceed with any private sale. The Secured lender is represented by: Douglas Ghidina, Esq. MOORE & VAN ALLEN PLLC 100 North Tryon Street, Suite 4700 Charlotte, NC 28202-4003 Tel: 704-331-3504 E-mail: dougghidina@mvalaw.com AEROGROW INTERNATIONAL: SMG Growing Media Holds 33% Stake --------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, SMG Growing Media, Inc., and The Scotts Miracle-Gro Company disclosed that as of Aug. 5, 2014, they beneficially owned 3,039,099 shares of common stock of AeroGrow International, Inc., representing 33.14 percent of the shares outstanding. A full-text copy of the regulatory filing is available for free at http://is.gd/UdVg41 About AeroGrow Boulder, Colo.-based AeroGrow International, Inc., is a developer, marketer, direct-seller, and wholesaler of advanced indoor garden systems designed for consumer use and priced to appeal to the gardening, cooking, and healthy eating, and home and office decor markets. Aerogrow International reported a net loss attributable to common shareholders of $4.13 million for the year ended March 31, 2014, a net loss attributable to common shareholders of $8.25 million for the year ended March 31, 2013, and a net loss of $3.55 million for the year ended March 31, 2012. As of March 31, 2014, the Company had $4.54 million in total assets, $3.65 million in total liabilities and $894,000 in total stockholders' equity. AFFINITY GAMING: S&P Affirms 'B' Corp. Credit Rating ---------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on Las Vegas-based gaming operator Affinity Gaming (Affinity), including the 'B' corporate credit rating. The outlook remains negative. The 'B' corporate credit rating reflects S&P's assessment of Affinity's business risk profile as "weak" and its assessment of the company's financial risk profile as "highly leveraged," according to S&P's criteria. The liquidity profile is "adequate." Under the amended credit facility, the financial covenants have been reset and pricing has increased. The previous total leverage covenant has been replaced with a first-lien covenant that opens at 3.75x and remains at that level through fiscal 2015, but will step down thereafter to 3x in early 2017 and remain at that level until maturity. The interest coverage covenant has been relaxed to 1.5x from the previous 2x. Pricing under the facility has increased to LIBOR + 400 bps with a 1.25% LIBOR floor from the current L + 325 bps with a 1% floor. As a result of the amendment, S&P has revised its assessment of the liquidity profile to "adequate," reflecting the good cushion with respect to the new financial covenants under our performance expectations. S&P's assessment of Affinity's business risk profile as "weak" reflects its challenged Nevada businesses, with limited competitive advantage and minimal barriers to entry in the markets in which they operate. Affinity's Midwest casino business, which had historically benefited from a more protected market position and experienced less volatility during the last downturn, has also been exposed to continued softness in the local economies and weather-related disruptions causing the segment to underperform relative to S&P's expectations. S&P expects the Colorado business to stabilize after the weather-related issues in recent quarters and should be a larger contributor to Affinity's operations. There could be disruption in late 2015 and beyond, however, if voters allow video lottery terminals (VLTs) at exclusive locations in select Denver suburbs, which are key feeder markets to the Black Hawk/Central City gaming market. S&P's assessment of Affinity's financial risk profile as "highly leveraged" reflects its anticipation that lease-adjusted leverage will remain above 7x for the next two years. The company will continue to maintain significant excess cash balances of greater than $90 million and will maintain EBITDA coverage of interest expense of greater than 1.8x through 2015. Though these measures are significantly weaker than previously anticipated, the maintenance of interest coverage greater than 1.5x and the significant excess cash balances are key for support at the 'B' rating level. The combination of pressure on the discretionary income of the company's target value-oriented consumer from softness in economic conditions in key markets, severe weather across much of its portfolio, and missteps in promotional spending has hurt operating performance in the past several quarters. For 2014, S&P expects EBITDA to decline in the mid-teens percentage area. S&P believes operating performance for the remainder of the year will remain challenged as the company refines its marketing, and promotional strategies and value-oriented consumers' discretionary spending on gaming remains constrained. In 2015, S&P expects EBITDA to grow modestly in the low-single-digits, as it believes the company will have worked through its previously inefficient marketing programs. AMERICAN APPAREL: Narrows Its Losses, But Troubles Remain --------------------------------------------------------- Elizabeth A. Harrisaug, writing for The New York Times, reported that American Apparel's earnings for the second quarter reinforced the retailer's troubled financial footing. According to the report, sales at American Apparel were essentially flat, at $162 million, in the period that ended June 30. And while losses narrowed considerably over the same period in 2013, the company still lost $16.2 million in the quarter, compared with $37.5 million a year earlier, the report related. About American Apparel Los Angeles, Calif.-based American Apparel, Inc. (NYSE Amex: APP) -- http://www.americanapparel.com/-- is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel. As of September 2010, American Apparel employed over 10,000 people and operated 278 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea and China. Amid liquidity problems and declining sales, American Apparel in early 2011 reportedly tapped law firm Skadden, Arps, Slate, Meagher & Flom and investment bank Rothschild Inc. for advice on a restructuring. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Under the deal, the investors were buying 15.8 million shares of common stock at 90 cents apiece. The deal allows the investors to purchase additional 27.4 million shares at the same price. American Apparel reported a net loss of $106.29 million on $633.94 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $37.27 million on $617.31 million of net sales for the year ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $333.75 million in total assets, $411.15 million in total liabilities and a $77.40 million total stockholders' deficit. * * * As reported by the Troubled Company Reporter on Feb. 26, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating to 'CCC' from 'B-' on Los Angeles-based American Apparel Inc. The outlook is developing. The Troubled Company Reporter, on Nov. 21, 2013, reported that American Apparel Inc. had its corporate family rating cut one level to Caa2 by Moody's Investors Service. The clothing retailer's probability of default was also lowered one level and the outlook is negative. AMERICAN MEDIA: Incurs $54.3 Million Net Loss in Fiscal 2014 ------------------------------------------------------------ American Media, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss attributable to the Company and its subsidiaries of $54.31 million on $344.22 million of total operating revenues for the fiscal year ended March 31, 2014, compared to a net loss attributable to the Company and its subsidiaries of $56.23 million on $348.52 million of total operating revenues for the year ended March 31, 2013. The Company's balance sheet at March 31, 2014, showed $572.64 million in total assets, $701.61 million in total assets, $3 million in redeemable noncontrolling interests, and a $131.97 million total stockholders' deficit. A full-text copy of the Form 10-K is available for free at: http://goo.gl/9k7fGt Bondholders to Acquire Equity American Media announced that Chatham Asset Management, LLC, and Omega Charitable Partnership, L.P., which are existing bondholders of AMI, have agreed to acquire all of the issued and outstanding shares of common stock of AMI. In addition to the stock acquisition, the Investors will invest an additional $12.5 million in AMI through the purchase of Second Lien PIK Notes due 2018 resulting in an implied enterprise value of $527 million for AMI. AMI Parent Holdings LLC is an affiliate of Chatham Asset Management LLC and Omega Charitable Partnership. The enterprise value of the company reflects the aggregate purchase price of $2 million to be paid for AMI's common stock, the $513 million of outstanding indebtedness that will remain in place after closing and the additional Second Lien PIK Notes issued at closing. The Investors have also agreed to waive two separate repurchases of First Lien Notes due 2017 during Fiscal Year 2015, which total $12.7 million. David J. Pecker, Chairman, president and chief executive officer of AMI, said, "The acquisition of AMI by Chatham Asset Management and Omega Charitable Partnership is a watershed moment for American Media. As a result of the acquisition and related support provided by Chatham and Omega, American Media is in an extraordinary position to pursue the assertive growth path we began two years ago. Since that time, we have established a formidable digital presence for our key brands, created proprietary digital publishing and e-commerce platforms, and signed an agreement with a major international mobile advertising provider. The opportunity to now work with Chatham Asset Management and Omega Charitable Partnership will ensure these and other opportunities come to full fruition as we continue to transform American Media into a premier lifestyle brands company." In addition, the Investors announced that Mr. Pecker will continue as the chairman, president and chief executive officer of AMI after the closing and that all of Mr. Pecker's senior management team will remain in place. The merger and the related transactions are subject to the satisfaction of customary closing conditions. A full-text copy of the Agreement and Plan of Merger is available for free at http://goo.gl/XGRI63 Delays Form 10-Q American Media notified the SEC that it could not complete the filing of its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2014, within the prescribed time period due to a delay in obtaining and compiling information required to be included therein for the reasons discussed below, which delay could not be eliminated by the Company without unreasonable effort and expense. The Company plans to file its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2014, no later than the fifth calendar day following the prescribed due date of Aug. 14, 2014, being Aug. 19, 2014. The Company expects to report total operating revenues of $78.3 million and operating income of $5.7 million for the quarter ended June 30, 2014, compared to total operating revenues of $90.3 million and operating income of $16.5 million reported for the quarter ended June 30, 2013. The decline in operating revenues and operating income were due to (i) the industry wide disruption in the Company's wholesaler channels due to the shutdown and bankruptcy of one of the Company's major wholesalers, (ii) the decline in the celebrity magazine market, (iii) the overall decline in the consumer advertising market and (iv) the divestiture of the distribution and merchandising business, included in the prior year period with no comparable revenue in the current year period. 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., an 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. * * * 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 had 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. ANDALAY SOLAR: Reports $636,000 Net Loss in Second Quarter ---------------------------------------------------------- Andalay Solar, 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 $635,831 on $306,919 of net revenue for the three months ended June 30, 2014, as compared with a net loss attributable to common stockholders of $555,115 on $130,046 of net revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss attributable to common stockholders of $720,227 on $449,401 of net revenue as compared with a net loss attributable to common stockholders of $1.89 million on $211,240 of net revenue for the same period last year. As of June 30, 2014, Andalay Solar had $3.29 million in total assets, $6.31 million in total liabilities, $37,505 in series D convertible redeemable preferred stock, and a $3.06 million total stockholders' deficit. Cash as of June 30, 2014, was $93,000. "Total revenue in the second quarter was $307,000, a 136.0% increase as compared to the same period in the prior year. We are pleased that revenue also increased sequentially by 115.4%, which is more than double as compared to the first quarter of 2014. Total operating expenses in the second quarter of 2014 decreased by 24.5% as compared to the second quarter of 2013, and decreased by 8.2% as compared to the first quarter of 2014. The Company's team is the most streamlined that it has ever been and is fully focused on growing sales and working with key partners," commented Steven Chan, CEO of Andalay Solar. A full-text copy of the Form 10-Q is available for free at: http://is.gd/p3qzX1 Appointment of Chief Financial Officer Andalay Solar's Board of Directors appointed Steven Chan as the Company's interim chief financial officer effective Aug. 6, 2014. Steven Chan is the Company's chief executive officer and he will continue to serve in this capacity. About Andalay Solar Founded in 2001, Andalay Solar, Inc., formerly Westinghouse Solar, Inc., is a provider of innovative solar power systems. In 2007, the Company pioneered the concept of integrating the racking, wiring and grounding directly into the solar panel. This revolutionary solar panel, branded "Andalay", quickly won industry acclaim. In 2009, the Company again broke new ground with the first integrated AC solar panel, reducing the number of components for a rooftop solar installation by approximately 80 percent and lowering labor costs by approximately 50 percent. This AC panel, which won the 2009 Popular Mechanics Breakthrough Award, has become the industry's most widely installed AC solar panel. A new generation of products named "Instant Connect" was introduced in 2012 and is expected to achieve even greater market acceptance. Andalay Solar reported a net loss attributable to common stockholders of $3.85 million on $1.12 million of net revenue for the year ended Dec. 31, 2013, as compared with a net loss attributable to common stockholders of $9.15 million on $5.22 million of net revenue in 2012. Burr Pilger Mayer, Inc., in San Francisco, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's significant operating losses and negative cash flow from operations raise substantial doubt about its ability to continue as a going concern. ASSURED PHARMACY: Pinewood et al. Report 53% Equity Stake --------------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, Pinewood Trading Fund, LP, Sagewood, LLC, and Jack E. Brooks disclosed that as of July 17, 2014, they beneficially owned 10,593,083 shares of common stock of Assured Pharmacy, Inc., representing 53.9% of the shares outstanding. Because Mr. Brooks is a manager of Sagewood, which is the general partner of Pinewood, he has the power to direct the affairs of Sagewood and Pinewood, including the voting and disposition of shares of Common Stock held in the name of Pinewood. A copy of the regulatory filing is available for free at http://is.gd/rbWk6h About Assured Pharmacy Headquartered in Frisco, Texas, Assured Pharmacy, Inc., is engaged in the business of establishing and operating pharmacies that specialize in dispensing highly regulated pain medication for chronic pain management. The Company was organized as a Nevada corporation on Oct. 22, 1999, under the name Surforama.com, Inc., and previously operated under the name eRXSYS, Inc. The Company changed its name to Assured Pharmacy, Inc., in October 2005. In their report on the consolidated financial statements for the year ended Dec. 31, 2013, BDO USA, 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 net capital deficiency. The Company reported a net loss of $3.36 million on $5.19 million of sales in 2013, compared with a net loss of $4 million on $5.64 million of sales in 2012. The Company's balance sheet at March 31, 2014, showed $1.19 million in total assets, $9.09 million in total liabilities, $3.17 million in series D redeemable convertible preferred stock and a $11.07 milion stockholders' deficit. ATLAS PIPELINE: S&P Revises Outlook to Stable & Affirms 'B+' CCR ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Tulsa- based Atlas Pipeline Partners L.P. to stable from negative. At the same time, S&P affirmed its 'B+' corporate credit and senior unsecured debt ratings on Atlas. The recovery rating on the senior unsecured debt is '3', indicating S&P's expectation for meaningful recovery (50% to 70%) in the event of a payment default. "We base the outlook revision on modestly improving financial leverage and our expectation for adjusted debt to EBITDA of about 4.9x by year end 2014," said Standard & Poor's credit analyst Michael Ferguson. The partnership's Stonewall and Silver Oak II processing facilities recently commenced operations and S&P expects these assets to run near capacity by the end of 2015, leading to sharply increased EBITDA for the entity by 2015. Additionally, Atlas used around $135 million of proceeds from the sale of its West Texas LPG to pay down debt outstanding under its revolving credit facility which also contributed to the outlook revision. S&P expects the Edward plant to come online by the third quarter of 2014 and provide an additional uplift to cash flow. That said, S&P continues to view execution and volume risk associated with the development of Atlas' Eagle Ford- based assets as a key credit consideration and intend to closely monitor the partnership's progress over the next 12 months. S&P considers Atlas' business risk profile to be "fair." Atlas' "aggressive" financial risk profile reflects S&P's expectation for elevated debt to EBITDA of about 4.9x in 2014, falling to about 4.7x in 2015; the master limited partnership (MLP) structure, which gives management incentive to distribute a large portion of its free cash flow to unitholders each quarter; and a contract mix that remains highly sensitive to changes in the price of natural gas and natural gas liquids. S&P considers Atlas Pipeline's liquidity to be "adequate" under its criteria, with a ratio of liquidity sources over uses of about 1.2x during the next 12 months. The stable outlook reflects S&P's expectation that Atlas' key credit measures will stabilize in the near term. S&P could raise the rating if Atlas successfully executes its 2014 growth strategy, maintains adequate liquidity, and reduces leverage below 4x for a sustained period. S&P could lower the rating if low commodity prices, stagnant throughput levels, or operational difficulties result in tight liquidity and/or debt to EBITDA over 5x through the end of 2015. AURORA DIAGNOSTICS: Reports Q2 Net Loss of $2.9 Million ------------------------------------------------------- Aurora Diagnostics Holdings, LLC, filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.92 million on $60.78 million of net revenue for the three months ended June 30, 2014, as compared with a net loss of $5.14 million on $62.97 million of net revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $9.49 million on $117.82 million of net revenue as compared with a net loss of $12.81 million on $123.94 million of net revenue for the same period last year. As of June 30, 2014, the Company had $331.09 million in total assets, $392.83 million in total liabilities and a $61.74 million members' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/j4knRD About Aurora Diagnostics Headquartered in Palm Beach Gardens, Florida, Aurora Diagnostics Holdings, LLC, through its subsidiaries, provides physician-based general anatomic and clinical pathology, dermatopathology, molecular diagnostic services and other esoteric testing services to physicians, hospitals, clinical laboratories and surgery centers. The company recognized approximately $260 million in revenue for the 12 months ended June 30, 2013. The company is majority owned by equity sponsors KRG Capital Partners and Summit Partners. Aurora Diagnostics reported a net loss of $73.01 million on $248.16 million of net revenue for the year ended Dec. 31, 2013, as compared with a net loss of $160.85 million on $277.88 million of net revenue for the year ended Dec. 31, 2012. * * * As reported by the Troubled Company Reporter on Sept. 27, 2013, Moody's Investors Service downgraded Aurora's Corporate Family Rating to Caa2 from B3 and Probability of Default Rating to Caa2- PD from B3-PD. Moody's also lowered the debt ratings of Aurora Diagnostics Holdings, LLC's and Aurora Diagnostics, LLC (collectively Aurora). Concurrently, Moody's downgraded Aurora's Speculative Grade Liquidity Rating to SGL-4 from SGL-3. The outlook for the ratings remains negative. The downgrade of the ratings reflects Moody's expectation that the company will see continued difficulty in mitigating a significant decline in revenue and EBITDA. This stems from a reduction in Medicare reimbursement due to a decrease in rates and sequestration, continued challenging volume growth trends and threats of additional reimbursement reductions. This will negatively impact the company's credit metrics, constrain Aurora's ability to repay debt and pressure the company's liquidity position. Moody's also has concerns about the sustainability of the company's capital structure given its significant debt load and related interest burden. In the Aug. 7, 2014, edition of the TCR, Standard & Poor's Ratings Services raised its corporate credit rating on Palm Beach Gardens, Fla.-based anatomic pathology services provider Aurora Diagnostics Holdings LLC to 'CCC+' from 'CCC'. The outlook is stable. AUXILIUM PHARMACEUTICALS: S&P Affirms 'CCC' CCR; Outlook Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'CCC' corporate credit rating on Auxilium Pharmaceuticals Inc. following the company's announcement that it had obtained an amendment to its credit agreement permitting the change of control associated with the company's proposed merger with a Canadian biotechnology firm QLT Inc. The outlook is negative. S&P also affirmed the 'CCC+' issue-level rating on the company's senior secured first-lien credit facility. The '2' recovery rating remains unchanged and reflects S&P's expectation for substantial (70%-90%) recovery in the event of payment default. "The rating affirmation reflects our belief that liquidity remains "weak", despite the merger with QLT and expected increase in balance sheet cash," said credit analyst Maryna Kandrukhin. "The amendment has a strict financial covenant schedule for the maximum permitted first-lien net leverage ratio effective in the first quarter of 2015. There is an aggressive step-down in the second quarter. We believe Auxilium will be challenged to meet the financial covenant requirement because revenue growth and cost control over the next three quarters might not be sufficient to generate the EBITDA necessary for covenant compliance." The negative outlook reflects S&P's belief that Auxilium could be challenged to meet the financial covenant requirement introduced by the amendment, despite the increase in balance sheet cash that will result from the transaction. Downside scenario S&P could lower the rating if Auxilium is unable to either meet or amend its covenant tests in the first half of 2015. Under S&P's base-case forecast, it estimates Auxilium will generate around $25 million in annualized EBITDA, versus more than $40 million required to meet the test. S&P could also lower the rating if the company uses cash faster than it currently estimates. In S&P's view, low-single-digit revenue growth coupled with continued margin erosion in 2015 could cause it to believe the company will likely deplete its cash within the next year, which could cause S&P to lower the rating. Upside scenario While unlikely, S&P could raise its rating to 'CCC+' if Auxilium generates sufficient EBITDA to meet its net leverage covenant requirement. This would result from product performance and cost control that is better than S&P expects, resulting in EBITDA growth that is at least $15 million higher than S&P's current expectations. Under this scenario, S&P would also need to believe that the company could generate at least breakeven cash flow. This would alleviate the threat of a liquidity event over the next 12 months. BANK OF THE CAROLINAS: Registers 458.1MM Shares for Resale ---------------------------------------------------------- Bank of the Carolinas Corporation filed a registration statement with the U.S. Securities and Exchange Commission relating to the resale of up to 458,132,991 shares of the voting common stock of the Company by Allstate Insurance Company, Bridge Equities III, LLC, Ithan Creek Investors USB, LLC, et al. The Company will not receive any proceeds from the sale of these securities. The Company is registering securities for resale by the selling shareholders, but that does not necessarily mean that they will sell any of the securities. The selling shareholders will sell at prevailing market prices, or privately negotiated prices. Each selling shareholder or dealer selling the common stock is required to deliver a current prospectus upon the sale. The Company's common stock is currently quoted on the OTCQB marketplace maintained by OTC Markets Group Inc., under the symbol "BCAR." On Aug. 14, 2014, the last reported sales price for the Company's common stock as reported on the OTCQB marketplace was $0.70 per share. A full-text copy of the Form S-1 is available for free at: http://is.gd/vqt42A About Bank of the Carolinas Mocksville, North Carolina-based Bank of the Carolinas Corporation was formed in 2006 to serve as a holding company for Bank of the Carolinas. The Bank's primary market area is in the Piedmont region of North Carolina. Turlington and Company, LLP, in Lexington, North Carolina, 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 credit losses that have eroded certain regulatory capital ratios. As of Dec. 31, 2013, the Company is considered undercapitalized based on their regulatory capital level. This raises substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss available to common stockholders of $2.33 million in 2013, a net loss available to common stockholders of $5.53 million in 2012 and a net loss available to common stockholders of $29.18 million in 2011. The Company's balance sheet at March 31, 2014, showed $428.05 million in total assets, $426.06 million in total liabilities, and stockholders' equity of $1.99 million. BERNARD L. MADOFF: Trustee Can't Block Feeder-Fund Deals -------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that in an opinion handed down on Aug. 8 by a three-judge appeals panel, the U.S. Court of Appeals in Manhattan upheld a ruling by a federal district judge who refused to let Bernard L. Madoff's trustee, Irving Picard, stop a settlement with managers of the Fairfield Sentry feeder funds. According to the report, Mr. Picard has been seeking $460 million from the Merkin defendants and $3.2 billion from the Fairfield defendants. The report related that U.S. Circuit Judge Robert D. Sack said the feeder-fund customers' suits weren't property of the bankrupt Madoff estate because they are based on "injury that is particularized as to them." The appeal in the circuit court is Picard v. Fairfield Greenwich Ltd., 13-1289, U.S. Court of Appeals for the Second Circuit (Manhattan). About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has commenced distributions to victims, with the fourth and latest batch of distributions done in May 2014. Distributions to eligible claimants have totaled almost $6 billion, which includes $812.2 million in committed advances from the SIPC. More than 1,100 victims have already recovered the full principal they lost in the fraud. As of May 2014, Mr. Picard has recovered or reached agreements to recover $9.8 billion since his appointment in December 2008. BOMBAY & CO: In CCAA Proceedings; Richter Named as Monitor ---------------------------------------------------------- The Ontario Superior Court of Justice (Commercial List) issued on August 6 an initial order under the Companies' Creditors Arrangement Act in respect of Bombay & Co, Inc., Bowring & Co, Inc., and Benix & Co., Inc., in the proceeding bearing Court File No. CV14-10659-OOCL, declaring that the Applicants are a company to which the CCAA applies. Richter Advisory Group Inc. has been appointed monitor in the Applicants' CCAA proceeding. The firm may be reached at: Adam Sherman RICHTER ADVISORY GROUP INC. 181 Bay Street, 33rd Floor Toronto, Ontario M5J 2T3 Tel: 1-866-576-0499 Fax: 514-934-8603 E-mail: asherman@richter.ca BROWNIE'S MARINE: Delays Second Quarter Form 10-Q ------------------------------------------------- Brownie's Marine Group, 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 certain financial and other information necessary for an accurate and full completion of the Report could not be provided within the prescribed time period without unreasonable effort or expense. About Brownie's Marine Brownie's Marine Group, Inc., which does business through its wholly owned subsidiary, Trebor Industries, Inc., d/b/a Brownie's Third Lung -- http://www.browniesmarinegroup.com/-- designs, tests, manufactures and distributes recreational hookah diving, yacht based scuba air compressor and nitrox generation systems, and scuba and water safety products. BWMG sells its products both on a wholesale and retail basis, and does so from its headquarters and manufacturing facility in Fort Lauderdale, Florida. The Company's common stock is quoted on the OTC BB under the symbol "BWMG". Brownie's Marine reported a net loss of $788,286 in 2013, as compared with a net loss of $2.01 million in 2012. As of March 31, 2014, the Company had $1.11 million in total assets, $1.72 million in total liabilities and a $613,098 of total stockholders' deficit. Liquidity and Capital Resources As of March 31, 2014, the Company had cash and current assets (primarily consisting of inventory) of $1,012,251 and current liabilities of $1,725,977, or a current ratio of .59 to 1. This represents a working capital deficit of $713,726. As of December 31, 2013, the Company had cash and current assets of $1,057,967 and current liabilities of $1,760,058, or a current ratio of .60 to 1. As of December 31, 2012, the Company had cash and current assets of $894,573 and current liabilities of $1,770,503, or a current ratio of .51 to 1. The consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these financial statements. The Company has incurred losses since 2009, and expects to have losses through 2014. The Company has had a working capital deficit since 2009. The Company is behind on payments due for payroll taxes and withholding, matured convertible debentures, related party notes payable, accrued liabilities and interest-related parties, and certain vendor payables. The Company is handling delinquencies on a case by case basis. However, there can be no assurance that cooperation the Company has received thus far will continue. The Company closed and ceased operations at its retail facility. The Company is still involved in the joint venture. As a result, the Company does not expect that existing cash flow will be sufficient to fund presently anticipated operations beyond the second quarter of 2043. This raises substantial doubt about BWMG's ability to continue as a going concern. The Company will need to raise additional funds and is currently exploring alternative sources of financing. "We have issued a number of convertible debentures as an interim measure to finance our working capital needs. We have historically paid for many legal and consulting services with restricted stock to maximize working capital. We intend to continue this practice in the future when possible. We have implemented some cost saving measures and will continue to explore more to reduce operating expenses. "If we fail to raise additional funds when needed, or do not have sufficient cash flows from sales, we may be required to scale back or cease operations, liquidate our assets and possibly seek bankruptcy protection," the Company said in the Quarterly Report for the period ended March 31, 2014. BUFFALO PARK: Owners to Seek Plan Approval Sept. 23 --------------------------------------------------- Ronald P. Lewis and Carol J. Lewis are slated to present their bankruptcy-exit plan after winning approval of the explanatory disclosure statement. The Lewises own their residence, as well as real estate investment property and stock in various businesses entities. Their principal occupation involves the ownership and management of their real estate investment and rental properties. The bankruptcy schedules, as amended, indicate that the gross value of the assets of the Lewises totals $7,888,657, of which $7,582,413 is on account of real property. The Plan, which divides creditors and interest holders into 31 classes, provides that the Debtors will restructure their debts and obligations in the ordinary course of business, including the sale and leasing of properties and operation of their businesses. The Debtors expect that rental income from these properties and the Lewis' disposable income, together with the restructuring of the mortgages and other secured debts, will generate sufficient funds to pay on a pro-rata basis a portion of the Lewis' unsecured debts. The reduction of payments to secured creditors as a result of Plan confirmation will have a material beneficial impact on the Debtors' ability to service their debt, including making a distribution to unsecured creditors. The Plan provides that each month for five years following the effective date of the Plan, the Lewises will deposit $1,782 into an unsecured creditor account. Every time three deposits have been made into the account, the balance of the account will be distributed to holders of administrative claims who elect to be treated under this provision on a pro rata basis until such time as the holders of administrative claims have been paid in full. Once the holders of allowed administrative claims have been paid in full, the balance of the account will be distributed for a period of 5 years to general unsecured claims. A payment of $1,782 per month for five years results in total deposits to the unsecured creditor account of $106,920. Holders of allowed unsecured claims will also share on a pro rata basis in the equity of vacant land identified by the Lewises. The Lewises will have four years from the Effective Date to sell the vacant land. The vacant land is valued at $82,430 in the Debtors' schedules. The Debtors expect that the total amount of unsecured claims will increase due to deficiency claims associated with the secured lenders. The Debtors expect unsecured claims to total $11,755,141. Judge Howard R. Tallman's Aug. 6 order approving the disclosure statement sets forth this schedule: -- Sept. 10, 2014, is fixed as the last day for filing written acceptances or rejections of the Debtors' plan. -- Sept. 10, 2014, is fixed as the last day for filing and serving written objections to confirmation of the plan pursuant to Fed. R. Bankr. P. 3020(b)(1). -- On or before Sept. 17, 2014, counsel for the Debtors must prepare and file with this Court a summary report on the ballots. -- Sept. 23, 2014, at 9:30 a.m. is the date fixed for the hearing on confirmation of the plan. The hearing on confirmation will be conducted in Courtroom B, U.S. Custom House, 721 19th Street, Denver, Colorado. -- If any objections to confirmation of Plan are filed, the parties must exchange exhibits, and file witness and exhibit lists with the Court, in accordance with L.B.R. 9070-1, no later than Sept. 22, 2014. Iterations of the Plan Outline The Debtors on Nov. 13, 2013, won approval of the disclosure statement dated Oct. 15, 2013. Following approval of the disclosure statement, numerous creditors filed objection to the Plan. The Debtors have resolved the majority of such objections and continue to resolve the remaining objections. Given the settlements reached and passage of time since the Oct. 15, 2013 Disclosure Statement was prepared, on May 14, 2014, the Bankruptcy Court ordered the Debtors to file an amended disclosure statement and plan on or before July 9, 2014. The Debtors filed a Disclosure Statement on July 3, 2014. A copy of the document is available at: http://bankrupt.com/misc/Buffalo_Park_Lewis_DS.pdf The Debtors on Aug. 6, 2014, filed another iteration of the Disclosure Statement, a copy of which is available for free at: http://bankrupt.com/misc/Buffalo_Park_Lewis_DS_Aug2014.pdf About Buffalo Park & Lewises Buffalo Park Development Properties, Inc., filed a Chapter 11 petition (Bankr. D. Colo. Case No. 13-17669) on May 7, 2013. Ronald P. Lewis signed the petition as owner and CEO. Buffalo Park disclosed $20,777,601 assets and $11,294,567 liabilities in its schedules. Robert Padjen, Esq., at Laufer and Padjen LLC serves as counsel to Buffalo Park. Judge Elizabeth E. Brown presides over the case. Formed in 1964, Buffalo Park is a real estate development, construction, management and sales business. It has developed and sold numerous subdivisions and currently has several land developments in progress. Buffalo Park owns and operates community water companies that require a licensed water works operator and owns a commercial business center. Owners of Buffalo Park -- Ronald P. Lewis and Carol J. Lewis -- filed for protection under Chapter 11 of the Bankruptcy Code on March 21, 2012. The Lewises have been investing in, developing and managing real property for more than 60 years. Aside from Buffalo Park, the Lewises have interests in Evergreen Memorial Park, Inc., Elf Creek Properties, LLC, and Mountain Land Construction, Co. The Lewises are represented by attorneys at Kutner Brinen Garber P.C. The Bankruptcy Court granted joint administration of the two estates on July 18, 2013. On Aug. 30, 2013, the Lewises and Buffalo Park filed a Joint Plan of Reorganization. Buffalo Park was unable to reach agreements with its primary secured lenders CCB and Mutual of Omaha, and has determined not to proceed with a reorganization Plan. Rather, Buffalo Park is proceeding with a sale of its water companies pursuant to 11 U.S.C. Sec. 363 and has agreed to relief from stay as to Mutual and possibly CCB. BUFFALO PARK: Lewises Reach Agreement with Nationstar ----------------------------------------------------- Ronald P. Lewis and Carol J. Lewis are seeking bankruptcy court approval of a settlement with Nationstar Mortgage, LLC. Nationstar is a secured creditor holding a promissory note secured by a deed of trust encumbering real property located 6951 Lynx Lair, Evergreen, CO. The Debtor's plan dated Oct. 15, 2013, provides that Nationstar's claim will be allowed for $349,145, to be paid in equal monthly installments of the Debtors' future income. Nationstar filed an objection to the Plan and filed an adversary proceeding seeking damages of not less than $52,680. In order to resolve the adversary proceeding, as well as the treatment of the claim in the Plan, the parties have reached a settlement, which among other things, provides that the claim will be allowed in an amount of $342,000, will bear interest at the rate of 5% per annum commencing on the Effective Date, will be amortized over a 30-year period and paid in equal monthly installments. The Debtors will be responsible for timely ongoing principal, interest and escrow payments upon approval of the settlement. Objections to the settlement are due Sept. 4, 2014. About Buffalo Park & Lewises Buffalo Park Development Properties, Inc., filed a Chapter 11 petition (Bankr. D. Colo. Case No. 13-17669) on May 7, 2013. Ronald P. Lewis signed the petition as owner and CEO. Buffalo Park disclosed $20,777,601 assets and $11,294,567 liabilities in its schedules. Robert Padjen, Esq., at Laufer and Padjen LLC serves as counsel to Buffalo Park. Judge Elizabeth E. Brown presides over the case. Formed in 1964, Buffalo Park is a real estate development, construction, management and sales business. It has developed and sold numerous subdivisions and currently has several land developments in progress. Buffalo Park owns and operates community water companies that require a licensed water works operator and owns a commercial business center. Owners of Buffalo Park -- Ronald P. Lewis and Carol J. Lewis -- filed for protection under Chapter 11 of the Bankruptcy Code on March 21, 2012. The Lewises have been investing in, developing and managing real property for more than 60 years. Aside from Buffalo Park, the Lewises have interests in Evergreen Memorial Park, Inc., Elf Creek Properties, LLC, and Mountain Land Construction, Co. The Lewises are represented by attorneys at Kutner Brinen Garber P.C. The Bankruptcy Court granted joint administration of the two estates on July 18, 2013. On Aug. 30, 2013, the Lewises and Buffalo Park filed a Joint Plan of Reorganization. Buffalo Park was unable to reach agreements with its primary secured lenders CCB and Mutual of Omaha, and has determined not to proceed with a reorganization Plan. Rather, Buffalo Park is proceeding with a sale of its water companies pursuant to 11 U.S.C. Sec. 363 and has agreed to relief from stay as to Mutual and possibly CCB. C&K MARKET: Emerges From Chapter 11 Reorganization -------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that C&K Market Inc., a chain of more than 40 grocery stores throughout Oregon and northern California, implemented the Chapter 11 plan on Aug. 10 that was approved when the bankruptcy judge in Eugene, Oregon, signed a confirmation order on June 30. According to the report, the plan gave common and preferred stock to unsecured creditors with an estimated $60 million in claims. Unsecured creditors individually owed $10,000 or less were paid 80 percent in cash, the report related. 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%. CAPITOL CITY: Needs More Time to File Form 10-Q ----------------------------------------------- Capitol City Bancshares, Inc., requests an extension of time to file its Form 10-Q for the period ended June 30, 2014, as it could not complete the filing of its Form 10-Q on or before the prescribed due date without unreasonable effort. According to the Company, it needs additional time to complete the compilation, dissemination and review of the information required to be presented in the Form 10-Q. The Company expects to file its Quarterly Report on Form 10-Q on or before the fifth day following the prescribed due date. About Capitol City Atlanta, Georgia-based Capitol City Bancshares, Inc., was incorporated under the laws of the State of Georgia for the purposes of serving as a bank holding company for Capitol City Bank and Trust Company. The Bank operates a full-service banking business and engages in a broad range of commercial banking activities, including accepting customary types of demand and timed deposits, making individual, consumer, commercial, and installment loans, money transfers, safe deposit services, and making investments in U.S. government and municipal securities. Capitol City reported a net loss available to common shareholders of $5.53 million in 2013, as compared with a net loss available to common shareholders of $1.79 million in 2012. The Company's balance sheet at March 31, 2014, showed $283.80 million in total assets, $283.04 million in total liabilities and $756,333 in total stockholders' equity. Nichols, Cauley & Associates, LLC, in Atlanta, GA, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company is operating under regulatory orders to, among other items, increase capital and maintain certain levels of minimum capital. As of December 31, 2013, the Company was not in compliance with these capital requirements. In addition to its deteriorating capital position, the Company has suffered significant losses related to nonperforming assets, and has significant maturities of liabilities within the next twelve months. The auditors maintained that these matters raise substantial doubt about the ability of Capitol City Bancshares, Inc., and subsidiaries to continue as a going concern. CASPIAN SERVICES: Buys Kyran From Topaz for $100 ------------------------------------------------ On Aug. 7, 2014, Caspian Services, Inc., and Topaz Engineering Limited closed a Share Purchase Agreement dated Nov. 20, 2013. Pursuant to the Agreement, the Company acquired from Topaz its 100% equity interest in Kyran Holding Limited for $100. The principal asset of Kyran is a 50% equity interest in Mangistau Oblast Boat Yard, LLP. MOBY is a joint venture between Kyran, JSC KazMorTransFlot and Balykshi LLP, a Company majority-owned subsidiary. Balykshi owns a 20% interest in MOBY. Prior to the acquisition of Kyran, MOBY was accounted for in the Company's financial statements by the equity method. As a result of the Kyran acquisition, the operations and balances of Kyran and MOBY will be consolidated with the financial statements of the Company. This transaction was undertaken in connection with the Company's ongoing efforts to restructure its debt obligations to the European Bank for Reconstruction and Development and Mr. Baiseitov. MOBY was formed to operate a boat repair and drydocking services yard located at the Company's marine base. In October 2008 the Company entered into a lease agreement with MOBY to lease three hectares of space at the marine base. The lease agreement was for 20 years and provided for a fixed rent payment of $290,000 per year. In November 2009 MOBY made a partial advance payment of $3,347,000, which the Company began to recognize over the 20 year lease term in May 2010. During the second fiscal quarter 2014, Balykshi and MOBY agreed to cancel the lease and most of the balance of the advance was off-set against amounts owed to Balykshi by MOBY. In August 2008 MOBY entered into a Loan Agreement with EBRD. Pursuant to the Loan Agreement, MOBY borrowed $10.3 million from EBRD. In connection with the loan, EBRD required the Company, Topaz and KMTF to, inter alia, execute a Deed of Guarantee and Indemnity, guaranteeing the repayment of the MOBY loan. The guarantee obligation of each party was limited to each party's respective ownership interest in MOBY. Prior to closing the Agreement; (i) Topaz, through Kyran, voluntarily repaid 50% of the outstanding principal and accrued but unpaid interest of the MOBY loan; (ii) MOBY entered into a loan agreement with Kyran in the amount of the Topaz repayment, approximately $5.7 million; and (iii) Topaz obtained waivers from EBRD of the obligations of Topaz and Kyran under the Loan Agreement, the Guarantee and applicable security agreements. The Company and KMTF were not released from their obligations under the Guarantee. While the dollar amount of the Company's obligation pursuant to the Guarantee did not increase as a result of the release of Topaz, the percentage of the MOBY loan that is guaranteed by the Company (and KMTF) under the Guarantee effectively doubled to reflect the 50% repayment by and release of Topaz as a guarantor. As of the closing, the outstanding balance of the MOBY loan was approximately $5.9 million. The interest rate under the MOBY loan is generally the Interbank Rate plus a margin of 3.6%. The Loan Agreement provides that during any period when the loan is in default, a default interest rate of an additional 2% per annum will be charged. The Loan Agreement provides for 14 equal semi- annual installment payments of principal and interest on June 15 and December 15, commencing on or after the third anniversary of the Loan Agreement. As of the closing, MOBY had made no semi-annual installment payments and was in violation of certain financial covenants under the Loan Agreement. To the Company's knowledge, as of the date of the closing, EBRD has not sought to accelerate repayment of the MOBY loan. Pursuant to the Agreement, the Company agreed to issue indemnity to Topaz and its related parties against any and all past, present and future claims or court actions in relation to Seller's good faith and legally taken actions during its participation in Kyran. A copy of the Loan Agreement is available for free at: http://is.gd/jwLbQg 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. The Company's balance sheet at March 31, 2014, showed $64.67 million in total assets, $90.61 million in total liabilities, and a stockholders' deficit of $25.94 million. 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. CATASYS INC: Reports $27.4 Million Net Loss in Second Quarter ------------------------------------------------------------- Catasys, Inc., reported a net loss of $27.44 million on $312,000 of revenues for the three months ended June 30, 2014, compared to a net loss of $6.47 million on $107,000 of revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $25.30 million on $511,000 of revenues compared to a net loss of $3.86 million on $206,000 of revenues for the same period a year ago. The Company's balance sheet at June 30, 2014, showed $2.30 million in total assets, $45.22 million in total liabilities and a $42.91 million total stockholders' deficit. Rick Anderson, president and COO commented, "During the second quarter, total enrollment and healthcare services revenue continued to grow at an accelerated pace, up 80% and 192%, respectively. These results helped the Company to complete an excellent first half of the year, as demonstrated by the percent change in our deferred revenue, up 55% since December 31, 2013. This metric is important as a large portion of our fees are deferred over the term of the 12 month program or until performance guarantees are achieved." Mr. Anderson added, "The positive momentum has continued into the second half of the year, as underscored by one of our largest customers expanding to the offering to include its commercial population in Florida. The impetus behind the increased spending with Catasys is directly correlated to the program's early results indicating the ability to save the health plan money. This demonstrates the dual opportunity to generate increased revenue from program expansions, both with existing customers and by bringing on new clients. As more and more existing and new customers realize the return on investment that OnTrak, provides, we expect our growth to be able to increase substantially, and profitably, as we add revenue with very little incremental overhead cost, leveraging our already built out infrastructure. We are confident that this represents a near term opportunity, as customers are expanding use of the OnTrak program within 12 months of launching." A full-text copy of the press release is available for free at: http://is.gd/XWKr3b About Catasys Inc. Based in Los Angeles, California, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. Catasys reported a net loss of $4.67 million on $866,000 of total revenues for the 12 months ended Dec. 31, 2013, as compared with a net loss of $11.64 million on $541,000 of total revenues during the prior year. Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2013. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "[W]e currently expend cash at a rate of approximately $500,000 per month, excluding non-current accrued liability payments. We also anticipate cash inflow to increase during 2014 as we continue to service our executed contracts. We expect our current cash resources to cover expenses into June 2014; however delays in cash collections, revenue, or unforeseen expenditures could impact this estimate. We are in need of additional capital and while we are currently in discussions with our existing stockholders regarding additional financing there is no assurance that additional capital can be raised in an amount which is sufficient for us or on terms favorable to us and our stockholders, if at all. If we do not obtain additional capital, there is a significant doubt as to whether we can continue to operate as a going concern and we will need to curtail or cease operations or seek bankruptcy relief. If we discontinue operations, we may not have sufficient funds to pay any amounts to stockholders," the Company stated in the 2013 Annual Report. CHINA SHIANYUN: Needs More Time to File Form 10-Q ------------------------------------------------- China Shianyun Group Corp., Ltd., 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 offered the following explanation: "The Registrant is in the process of preparing its consolidated financial statements as of and for the three months and six months ended June 30, 2014. The process of compiling and disseminating the information required to be included in its Form 10-Q interim report for the three and six months ended June 30, 2014, as well as the completion of the required review of the Registrant's financial information, could not be completed by August 14, 2014 without incurring undue hardship and expense. The Registrant undertakes the responsibility to file such quarterly report no later than five calendar days after its original due date." About China Shianyun China Shianyun Group Corp., Ltd, formerly known as China Green Creative, Inc., develops and distributes consumer goods, including herbal teas, health liquors, meal replacement products, and cured meat using ecological breeding methods in China. The Company is based in Shenzhen Guandong Province, China. China Shianyun reported a net loss of $381,508 on $2 million of revenues for the year ended Dec. 31, 2013, as compared with net income of $635,873 on $6.87 million of revenues in 2012. As of Dec. 31, 2013, the Company had $4.85 million in total assets, $5.76 million in total liabilities and a $906,622 total stockholders' deficit. Albert Wong & Co., in Hong Kong, China, 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 a significant accumulated deficits and negative working capital that raise substantial doubt about the Company's ability to continue as a going concern. CODA HOLDINGS: Estate Hits Ex-JV Partner With $14M Clawback Suit ---------------------------------------------------------------- Law360 reported that the bankruptcy estate for defunct electric carmaker Coda Holdings Inc. lodged an adversary action looking to recover nearly $14 million in allegedly avoidable transfers to its China-based joint-venture battery partner, and also lodged a breach of contract claim against the company. According to the report, in a complaint filed in the Delaware bankruptcy court, John Madden, trustee for the Coda estate's liquidating trust, claims that Tianjin Lishen Battery Joint Stock Co. Ltd. and certain affiliates still owe the California-based electric carmaker. About CODA Holdings Los Angeles, California-based CODA Energy -- http://www.codaenergy.com-- made an electric auto that was a commercial failure. The company marketed the Coda Sedan, which sold only 100 copies. It was an electrically powered version of the Hafei Saibao, made in China. After bankruptcy, Los Angeles- based Coda intends to concentrate on making stationery electric- storage systems. CODA Holdings, Inc., Coda Energy LLC and three other affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-11153) on May 1, 2013, to enable the Company to complete a sale, confirm a plan, and emerge from bankruptcy in a stronger position to execute its new business plan. The Company expects the sale process to take 45 days to complete. FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group, is leading a consortium of lenders intending to provide DIP financing to enable the Company's energy storage business to remain fully operational during the restructuring process. The consortium, or its designee, will also as stalking horse bidder to acquire the Company post-bankruptcy. In addition, the Company will seek to monetize value of its existing automotive business assets. CODA disclosed assets of $10 million to $50 million and liabilities of less than $100 million. Coda Automotive Inc., disclosed $24,950,641 in assets and $95,859,413 in liabilities as of the Chapter 11 filing. The Debtors have incurred prepetition a significant amount of secured indebtedness: secured notes of with principal in the amount of $59.1 million; term loans in the principal amount of $12.6 million; and a bridge loan with $665,000 outstanding. FCO and other bridge loan lenders have "enhanced priority" over other secured noteholders that did not participate in the bridge loans, pursuant to the intercreditor agreement. Jeffrey M. Schlerf, Esq., John H. Strock, Esq., and L. John Bird, Esq., at Fox Rothschild LLP are the counsel for the Debtors. CODA's legal advisor in connection with the restructuring is White & Case LLP. Emerald Capital Advisors serves as its chief restructuring officer and restructuring advisor, and Houlihan Lokey serves as its investment banker for the restructuring. Sidley Austin LLP is serving as FCO MA CODA Holdings LLC's legal advisor. Brent T. Robinson, Esq., at Robinson, Anthon & Tribe represents the Debtors in their restructuring efforts. The Committee tapped Brown Rudnick as its counsel and Deloitte Financial Advisory Services LLP as its financial advisor. Adoc Holdings, Inc., formerly known as Coda Holdings, Inc., et al., notified the U.S. Bankruptcy Court for the District of Delaware that the Effective Date of their Third Amended Chapter 11 Plan of Liquidation occurred on March 5, 2014. COHAWKIN ROAD: Case Summary & 5 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Cohawkin Road, LLC 432 S. Evergreen Avenue Woodbury Heights, NJ 08097 Case No.: 14-27017 Chapter 11 Petition Date: August 18, 2014 Court: United States Bankruptcy Court District of New Jersey (Camden) Judge: Hon. Andrew B. Altenburg Jr. Debtor's Counsel: Maureen P. Steady, Esq. MAUREEN P. STEADY, ESQUIRE 38 N. Haddon Avenue Haddonfield, NJ 08033 Tel: (856) 428-1060 Fax: (609) 482-8011 Email: msteady@mac.com maureen.steady@gmail.com Total Assets: $0 Total Liabilities: $1.41 million The petition was signed by Richard Phalines, managing member. A list of the Debtor's five largest unsecured creditors is available for free at http://bankrupt.com/misc/njb14-27017.pdf COMMUNITYONE BANCORP: John Redett Qualified to Serve as Director ---------------------------------------------------------------- John C. Redett, who was elected to the Board of Directors of CommunityOne Bancorp at the 2014 Annual Meeting of Shareholders, has now been qualified to serve in that capacity, having received supervisory non-objection to serve from the Federal Reserve Bank of Richmond. Mr. Redett assumed his position effective Aug. 15, 2014. As disclosed in the Company's definitive Proxy Statement on Schedule 14A, filed on April 8, 2014, Mr. Redett will serve on the Strategic Planning Committee and the Compensation and Nominating Committee of the Board. Mr. Redett is a managing director of The Carlyle Group, LP, and is the director designated by Carlyle to serve on the Company's Board pursuant to Section 3.5(b) of the Investment Agreement, dated as of April 26, 2011, between the Company and Carlyle. About CommunityOne CommunityOne Bancorp (formerly FNB United) is the North Carolina- based bank holding company for CommunityOne Bank, N.A. (community1.com), which offers a full range of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth and online banking services through 55 branches in 44 communities throughout the central, southern and western regions of the state. CommunityOne Bancorp incurred a net loss of $1.48 million in 2013, a net loss of $40 million in 2012, and a $137.31 million net loss in 2011. CRUNCHIES FOOD: Files Bare-Bones Chapter 11 Petition ---------------------------------------------------- Crunchies Food Company, LLC, sought bankruptcy protection without stating a reason. Westlake Village, California-based Crunchies estimated $10 million to $50 million in assets and debt. According to the docket, the schedules of assets and liabilities, the statement of financial affairs, and other incomplete filings are due Aug. 29, 2014. Crunchies filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-bk-11776) in Santa Barbara, California, on Aug. 15, 2014. The case is assigned to Judge Peter Carroll. The Debtor has tapped David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, serves as counsel. For its legal services, the firm has agreed to accept $50,000. CUBIC ENERGY: Chief Financial Officer Resigns --------------------------------------------- Scott M. Pinsonnault, the chief financial officer and senior vice president of Cubic Energy, Inc., resigned on Aug. 12, 2014. The Company and Mr. Pinsonnault agreed that his resignation would be effective immediately. Larry G. Badgley, the Company's former chief financial officer and current vice president -- finance and compliance, has been reappointed as the Company's chief financial officer, contemporaneously with Mr. Pinsonnault's resignation. In connection with that appointment, Mr. Badgley's base salary has been increased to $250,000, on an annual basis. Mr. Badgley, age 57, joined the Company in August 2008, as a consultant, and was appointed chief financial officer in October 2008. He served in that capacity until March 2014, when he was named the Company's vice president - Finance and Compliance. Prior to joining the Company, from October 2005 through September 2006, Mr. Badgley served as managing director of BridgePoint Consulting, a provider of CFO services to venture capital-backed and early stage companies. In that capacity, Mr. Badgley was primarily responsible for strategic planning for growth companies. From July 1998 through October 2005, Mr. Badgley served as Director of Accounting and Finance for Jefferson Wells International, an international professional services firm. Prior to that time, Mr. Badgley served as chief operating officer and Chief Financial Officer of a privately held national sign manufacturer until its sale in July 1998. Mr. Badgley received a BBA in Finance from Hardin-Simmons University and is a Certified Public Accountant. About Cubic Energy Cubic Energy, Inc., headquartered in Dallas, Texas, is an independent upstream energy company engaged in the development and production of, and exploration for, crude oil and natural gas. Its oil and gas assets and activities are concentrated in Louisiana. Cubic Energy incurred a net loss of $5.93 million for the year ended June 30, 2013, as compared with a net loss of $12.49 million for the year ended June 30, 2012, and a net loss of $10.28 million for the year ended June 30, 2011. As of March 31, 2014, the Company had $134.14 million in total assets, $141.96 million in total liabilities, $988 in redeemable common stock and a $7.81 million total stockholders' deficit. DAEHAN SHIPBUILDING: Bankrupt Korean Shipbuilder Files in U.S. -------------------------------------------------------------- Korean shipbuilder Daehan Shipbuilding Co., Ltd., filed a Chapter 15 bankruptcy petition in Manhattan to seek U.S. recognition of rehabilitation proceedings in Korea. The Company wants to enjoin lawsuits against it in the U.S. while it works on its rehabilitation plan in its hometown. The company, which is estimated to have less than US$500 million in assets and US$500 million to US$1 billion in debt, is facing a $54 million lawsuit from Rimpacific Navigation Inc. and Wonder Enterprises Ltd. in New York. Byung Mo Lee, the custodian, said in a court filing in Manhattan that recently, the Company suffered from a serious liquidity crisis due to the economic recession arising from the global financial crisis in 2008. These issues were compounded by the financial difficulties of the Company's parent company, Dae Ju Construction Industry Co., Ltd., during the same timeframe. As a result, the Company's credit rating plummeted. This, in turn, resulted in the cancellation of 22 of the Company's ship building contracts. In addition, the Company suffered major losses due to currency fluctuations following the economic recession. These losses were made worse by the inflation in the personnel expenses and distribution costs for shipbuilding. As a result of its financial difficulties, in May 2009, the Company filed an application to put it under a debt workout plan. Notwithstanding this previous Korean bankruptcy proceeding, the Company has continuously recorded business losses and net losses since 2011. On June 27, 2014, the Company applied for rehabilitation under the Republic of Korea's Debtor Rehabilitation and Bankruptcy Act (DRBA). On July 7, 2014, the Korean Bankruptcy Court issued a commencement order commencing the rehabilitation proceeding of the Company. With the filing of the Chapter 15 petition, Daehan Shipbuilding is seeking recognition of the Korean Bankruptcy Proceeding as a "foreign main proceeding". It also seeks an order staying the commencement or continuation of any action or proceeding against the Company in the U.S. Michael B. Schaedle, Esq., at Blank Rome LLP, U.S. counsel of the Debtor, avers that given the limited assets the Company has in the United States, it is unclear why the plaintiffs would continue to prosecute the NY Action, other than in an attempt to seek circumvent the limitations set forth in the DRBA and the Company's Korean Bankruptcy Proceeding. Accordingly, the Debtor has filed an ex parte application for provisional relief pending recognition of a foreign main proceeding. It wants the U.S. bankruptcy court to enter an order to show cause with temporary restraining order: (i) prohibiting the commencement or continuation of proceedings against the Company or its property currently within (or which may come into) the territorial jurisdiction of the United States, and (ii) scheduling a hearing on the Company's request for a preliminary injunction order. U.S. Lawsuit On March 3, 2014, Rimpacific Navigation Inc. and Wonder Enterprises Ltd. filed a petition for recognition of foreign judgments against the Company in the Supreme Court of the State of New York, County of New York (Index No. 650686/2014). The petition seeks the entry of an order recognizing and enforcing an English judgment rendered in favor of Rimpacific and Wonder and against the Company, and the entry of a judgment against the Company of not less than US$54,538,682. On April 16, 2014, the Company filed an answer to the Petition and asserted various defenses, including: (i) failure to state a claim; (ii) insufficient service of process; (iii) the foreign judgments do not have res judicata effect; and (iv) the English Court lacked jurisdiction, service of process in that proceeding was invalid, notice was insufficient and the underlying guarantees are invalid and repugnant to public policy. On July 24, 2014, Rimpacific and Wonder filed a motion for summary judgment in support of their petition for recognition of foreign judgments. By agreement between Rimpacific, Wonder and the Company, the latter's response to the motion for summary judgment was due on Aug. 20, 2014. About Daehan Shipbuilding Based in Haenam-gun, Jeollanam-do, Korea, Daehan Shipbuilding Co., Ltd., is engaged in the shipbuilding and repair business. On June 27, 2014, Daehan Shipbuilding applied for rehabilitation before the 4th Bankruptcy Division of the Seoul Central District Court. Byung Mo Lee, as existing chief executive officer of the Company, assumed the role of the custodian and "foreign representative" of the company. Mr. Lee filed a Chapter 15 bankruptcy petition in Manhattan, in the United States (Bankr. S.D.N.Y. Case No. 14-12391) on Aug. 18, 2014, to seek recognition of the Korean rehabilitation proceedings. Judge Sean H. Lane is assigned to the U.S. case. The Debtor has tapped Michael B. Schaedle, Esq., at Blank Rome LLP, as counsel. DAEHAN SHIPBUILDING: Chapter 15 Case Summary -------------------------------------------- Chapter 15 Petitioner: Byung Mo Lee Chapter 15 Debtor: Daehan Shipbuilding Co., Ltd. Joseonso-gil 498 Hwawon-myeon, Haenam-gun Korea Chapter 15 Case No.: 14-12391 Type of Business: The Company is engaged in the shipbuilding and repair business. Chapter 15 Petition Date: August 18, 2014 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Hon. Sean H. Lane Chapter 15 Petitioner's Counsel: Michael B. Schaedle, Esq. John Kimball, Esq. Thomas Belknap, Esq. Marc E. Richards, Esq. Alan M. Root, Esq. BLANK ROME LLP One Logan Square 130 North 18th Street Philadelphia, PA 19103 Tel: 215-569-5762 Fax: 215-832-5762 Email: schaedle@blankrome.com JKimball@BlankRome.com TBelknap@BlankRome.com MRichards@BlankRome.com Root@BlankRome.com Estimated Assets: $100 million to $500 million Estimated Liabilities: $500 million to $1 billion DEALMAKERS CONSULTANTS: Voluntary Chapter 11 Case Summary --------------------------------------------------------- Debtor: DealMakers Consultants Inc 4227 Don Ortega Pl Los Angeles, CA 90008 Case No.: 14-25826 Chapter 11 Petition Date: August 18, 2014 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Hon. Robert N. Kwan Debtor's Counsel: Casey B. Yim, Esq. MURCHISON & CUMMING LLP 18201 Von Karman Ave Se 1100 Irvine, CA 92612 Tel: 714-972-9977 Fax: 714-972-1404 Email: cyim@murchisonlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Glen Quilter, president. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. DETROIT, MI: First Witness Testifies at Plan Trial -------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, and Sherry Toub, a Bloomberg News reporter, said that although the trial on Detroit's debt-adjustment plan doesn't begin until Aug. 29, an economist who will be unavailable at that time testified in court on Aug. 18, defending the city's 10-year revenue model. Steven Church, writing for Bloomberg News, reported that Robert Cline, an economist hired to create 10-year and 40-year revenue forecasts for the city's bankruptcy-exit plan, testified that he factored in long-term population declines and weak job growth in estimating future tax collections. Mr. Church said Syncora Guarantee Inc. questioned Cline's work, saying it assumed the city couldn't raise tax rates or find new ways to increase revenue that could be used to pay creditors. 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. DOLPHIN DIGITAL: Incurs $2.5 Million Net Loss in 2013 ----------------------------------------------------- Dolphin Digital Media, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $2.46 million on $2.29 million of total revenue for the year ended Dec. 31, 2013, compared to a net loss of $3.38 million on $3.86 million of total revenue for the year ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $1.61 million in total assets, $8.52 million in total liabilities, all current, and a $6.91 million total stockholders' deficit. As of Dec. 31, 2013, and 2012 the Company had cash of $706,641 and $282,675 and a working capital deficit of $7,733,655 and $5,477,532 respectively. Crowe Horwath LLP, in Fort Lauderdale, Florida, 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 net losses, negative cash flows from operations and does not have sufficient working capital. These events raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/acWb2Y About Dolphin Digital Coral Gables, Florida-based Dolphin Digital Media, Inc., is dedicated to the twin causes of online safety for children and high quality digital entertainment. By creating and managing child-friendly social networking websites utilizing state-of the- art fingerprint identification technology, Dolphin Digital Media, Inc. has taken an industry-leading position with respect to internet safety, as well as digital entertainment. DOLPHIN DIGITAL: Delays Filing of Quarterly Reports --------------------------------------------------- Dolphin Digital notified the Securities and Exchange Commission that its Form 10-Q could not be filed within the prescribed time because additional time is required by the Company's management and auditors to prepare certain financial information to be included in that report. The Company's 10-Q for Sept. 30, 2012, March 31, 2013, June 30, 2013, Sept. 30, 2013 and March 31, 2014, as well as the Company's form 10-K for the years ended Dec. 31, 2012, and 2013 were also not timely filed. About Dolphin Digital Coral Gables, Florida-based Dolphin Digital Media, Inc., is dedicated to the twin causes of online safety for children and high quality digital entertainment. By creating and managing child-friendly social networking websites utilizing state-of the- art fingerprint identification technology, Dolphin Digital Media, Inc. has taken an industry-leading position with respect to internet safety, as well as digital entertainment. EAGLE BULK: Limited Claims Bar Date Set for Sept. 2 --------------------------------------------------- In the Chapter 11 case of Eagle Bulk Shipping Inc., the Bankruptcy Court for the Southern District of New York established a limited general bar date of Sept. 2, 2014, within which a limited group of holders of claims or equity interests must file proofs of claim: -- arising from the rescission of a purchase or sale of a security of the Debtor; -- for damages arising from the purchase or sale of a security; or -- for reimbursement or contribution allowed under Sec. 502 of the Bankruptcy Code on account of that claim. The Court also established Feb. 2, 2015, as the deadline for governmental units holding claims under Sec. 510(b) of the Bankruptcy Code to file proofs of claim. About Eagle Bulk Shipping With headquarters in New York, Eagle Bulk Shipping Inc. (Nasdaq: EGLE) provides ocean-borne transportation services for a broad range of major and minor "dry bulk" cargoes, including iron ore, coal, grain, cement, and fertilizer, along worldwide shipping routes. Each of Eagle's 45 vessels is flagged in the Marshall Islands and owned by a separate wholly-owned subsidiary organized as a limited liability company under the Marshall Islands. On Aug. 6, 2014, Eagle Bulk entered into a restructuring support agreement with certain of its lenders regarding the terms of a balance sheet restructuring that will reduce debt by $975 million. To implement the restructuring, Eagle Bulk, the parent company, commenced a voluntary "prepackaged" chapter 11 case (Bankr. S.D.N.Y. Case No. No. 14-12303). The case has been assigned to the Honorable Sean H. Lane. The Chapter 11 filing does not include any of Eagle Bulk's operating or management subsidiaries. The Company estimated $850 million to $950 million in assets and debt of $1.21 billion as of the Petition Date. The Company has tapped Tyson M. Lomazow, Esq., and Matthew Brod, Esq., at Milbank, Tweed, Hadley & McCloy LLP as general bankruptcy counsel, Moelis & Company as financial advisor and investment banking advisor, Alvarez & Marsal as restructuring advisors, and PricewaterhouseCoopers LLP as its accountant and auditor. Eagle Bulk's noticing agent is Kurtzman Carson Consultants. Wilmington Trust (London) Limited, solely in its capacity as successor agent and security trustee under a 2012 credit agreement, is represented by Andrew Rosenberg, Esq., at Paul Weiss Rifkind Wharton & Garrison LLP. ELBIT IMAGING: Shareholders Approve 1-for-20 Reverse Stock Split ---------------------------------------------------------------- Elbit Imaging Ltd. said that at its annual general meeting of shareholders held on Aug. 14, 2014, the Company's shareholders approved all of the proposals on the agenda, including authorization to effect a reverse share split. Accordingly, the previously announced one-for-twenty reverse split of the Company's ordinary shares will become effective at 5:00 p.m. (New York time) on Thursday, Aug. 21, 2014, such that the shares will start trading on a reverse split-adjusted basis upon the open of trading on the NASDAQ Global Select Market on Friday, Aug. 22, 2014, and upon the open of trading on the Tel Aviv Stock Exchange on Sunday, Aug. 24, 2014. The reverse share split is intended to increase the per share trading price of the Company's ordinary shares to satisfy the $1.00 minimum bid price requirement for continued listing on the NASDAQ Global Select Market. As a result of the reverse stock split, every 20 ordinary shares issued and outstanding at the effective time will automatically be combined into one issued and outstanding ordinary share. In lieu of issuing fractional shares, any fractional share that would have resulted from the reverse share split will be rounded up or down to the nearest whole share and a half-share will be rounded up. Pursuant to the approval of the Company's shareholders, on Aug. 21, 2014, the Company's Memorandum and Articles of Association will be amended to reduce the Company's authorized share capital from 700,000,000 ordinary shares, no par value, to 35,000,000 ordinary shares, no par value. Shareholders who hold their shares in brokerage accounts or "street name" will not be required to take any action to effect the exchange of their shares. Holders of share certificates will receive instructions from the company's transfer agent, American Stock Transfer & Trust Company, LLC, regarding the process for exchanging their share certificates. Other proposals at the meeting were: 1. To re-elect the following members of the Company's Board of Directors: Alon Bachar, Eliezer Avraham Brender, Ron Hadassi, Shlomi Kelsi, Yoav Kfir, Boaz Lifschitz and Nadav Livni; 2. To approve for Mr. Ron Hadassi to serve as the Company's Chairman of the Board and acting Chief Executive Officer until no later than March 31, 2015; 3. To approve a compensation policy for the Company's directors and officers; 4. To approve the compensation for the Company's Chairman, Mr. Ron Hadassi; 5. To approve a Consultancy Agreement with the Company's Director, Mr. Boaz Lifschitz; 6. To approve compensation for the Company's non-external directors; and 7. To re-appoint Brightman Almagor Zohar & Co., a member of Deloitte, as the Company's independent auditors until the next annual general meeting of shareholders. About Elbit Imaging Ltd. Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) hold investments in real estate and medical companies. The Company, through its subsidiaries, also develops shopping and entertainment centers in Central Europe and invests in and manages hotels. Since February 2013, Elbit has intensively endeavored to come to an arrangement with its creditors. Elbit has said it has been hanging by a thread for more than five months. It has encountered cash flow difficulties and this burdens its day to day activities, and it certainly cannot make the necessary investments to improve its assets. In light of the arrangement proceedings, and according to the demands of most of the bondholders, as well as an agreement that was signed on March 19, 2013, between Elbit and the Trustees of six out of eight series of bonds, Elbit is prohibited, inter alia, from paying off its debts to the financial creditors - - and as a result a petition to liquidate Elbit was filed, and Bank Hapoalim has declared its debts immediately payable, threatening to realize pledges that were given to the Bank on material assets of the Company -- and Elbit undertook not to sell material assets of the Company and not to perform any transaction that is not during its ordinary course of business without giving an advance notice to the trustees. Accountant Rony Elroy has been appointed as expert for examining the debt arrangement in the Company. In July 2013, Elbit Imaging's controlling shareholders, Europe- Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company that the Tel Aviv District Court has appointed Adv. Giroa Erdinast as a receiver with regards to the ordinary shares of the Company held by Europe Israel securing Europe Israel's obligations under its loan agreement with Bank Hapoalim B.M. The judgment stated that the Receiver is not authorized to sell the Company's shares at this stage. Following a request of Europe-Israel, the Court also delayed any action to be taken with regards to the sale of those shares for a period of 60 days. Europe Israel and Mr. Zisser have also notified the Company that they utterly reject the Bank's claims and intend to appeal the Court's ruling. Elbit Imaging reported a loss of NIS1.56 billion on NIS360.59 million of total revenues for the year ended Dec. 31, 2013, as compared with a loss of NIS483.98 million on NIS418.48 million of total revenues in 2012. The Company's balance sheet at Dec. 31, 2013, showed NIS4.56 billion in total assets, NIS4.97 billion in total liabilities and a NIS408.63 million shareholders' deficit. Brightman Almagor Zohar & Co., a member firm of Deloitte Touche Tohmatsu, in Tel-Aviv, Israel, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. ELEPHANT TALK: Reports $6.9 Million of Revenue in 2nd Quarter ------------------------------------------------------------- Elephant Talk Communications Corp. reported a net loss of $4.61 million on $6.91 million of revenues for the three months ended June 30, 2014, as compared with a net loss of $7.69 million on $4.99 million of revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $8.73 million on $13.39 million of revenues as compared with a net loss of $12.83 million on $11.59 million of revenues for the same period last year. As of June 30, 2014, the Company had $44.72 million in total assets, $23.24 million in total liabilities and $21.47 million in total stockholders' equity. Mr. Steven van der Velden, Chairman and CEO of Elephant Talk, stated, "We are pleased with the continued increase in our monthly recurring mobile and security revenue which drove sequential growth in our Adjusted EBITDA to approximately $553,000 compared to a negative $949,000 in the second quarter of 2013. We now have over 2.6 million SIMs on our platform and expect our Adjusted EBITDA to continue to grow as we layer additional SIMs onto our platform. We are currently on track with the Iusacell migration, working to transition the entire SIM database from old legacy systems in Mexico onto our platform. Our Software DNA(R) virtualized platform continues to deliver impressive performance and reliability, capabilities that will also become more visible throughout the industry based on our recent global sales collaboration with HP. Together with HP's Integrated Home Subscriber Server technology, we are driving the message that Mobile Network Operators no longer have to be held captive to their legacy infrastructure systems." A full-text copy of the press release is available for free at: http://is.gd/bUmtJT About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk reported a net loss of $22.13 million in 2013, a net loss of $23.13 million in 2012 and a net loss of $25.31 million in 2011. At June 30, 2014, the Company had $829,388 of cash and cash equivalents. "If the Company is unable to achieve the anticipated revenues or financing arrangement with its major vendors, the Company will need to attract further debt or equity financing. Although the Company has been succesful in the past in meeting its cash needs, there can be no assurance that proceeds from additional revenues, vendor financings or debt and equity financings, where required, will be received in the required time frames. If this occurs, the Company may, therefore, be unable to continue its operations. As of December 31, 2013, these conditions raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty," the Company said in the Annual Report for the year ended Dec. 31, 2013. ENERGY FUTURE: Panel Taps Morrison & Foerster as Counsel -------------------------------------------------------- The Official Committee of Unsecured Creditors of Energy Future Holdings Corp. and its debtor-affiliates seeks authorization from the Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware to retain Morrison & Foerster LLP as counsel to the Committee, effective May 12, 2014. The Committee requires Morrison & Foerster to: (a) advise the Committee in connection with its powers and duties under the Bankruptcy Code, the Bankruptcy Rules and the Local Rules; (b) assist and advise the Committee in its consultation with the Debtors relative to the administration of these cases; (c) attend meetings and negotiate with the representatives of the Debtors and other parties in interest; (d) assist and advise the Committee in its examination and analysis of the conduct of the Debtors' affairs; (e) assist and advise the Committee in connection with any sale of the Debtors' assets pursuant to Section 363 of the Bankruptcy Code; (f) assist the Committee in the review, analysis and negotiation of any chapter 11 plans of reorganization or liquidation that may be filed and assist the Committee in the review, analysis and negotiation of the disclosure statement accompanying any such plans; (g) take all necessary action to protect and preserve the interests of the Committee, including (i) possible prosecution of actions on its behalf; (ii) if appropriate, negotiations concerning all litigation in which the Debtors are involved; and (iii) if appropriate, review and analysis of claims filed against the Debtors' estates; (h) generally prepare on behalf of the Committee all necessary motions, applications, answers, orders, reports, replies, responses and papers in support of positions taken by the Committee; (i) appear, as appropriate, before this Court, the appellate courts, and the United States Trustee, and protect the interests of the Committee before those courts and before the United States Trustee; and (j) perform all other necessary legal services in these cases. Morrison & Foerster will be paid at these hourly rates: Partners and Senior counsel $705-$1,250 Of Counsel $595-$975 Associates $280-$750 Paraprofessionals $185-$410 Morrison & Foerster will also be reimbursed for reasonable out-of- pocket expenses incurred. Brett H. Miller, managing partner of Morrison & Foerster, 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. Morrison & Foerster can be reached at: Brett H. Miller, Esq. MORRISON & FOERSTER LLP 250 West 55th Street New York, NY 10019-9601 Tel: (212) 468-8051 Fax: (212) 468-7900 E-mail: brettmiller@mofo.com 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 advisors for the Chapter 11 proceedings are Richard M. Cieri, Esq., Edward O. Sassower, P.C., Stephen E. Hessler, Esq., Brian E. Schartz, Esq., James H.M. Sprayregen, P.C., Chad J. Husnick, Esq., and Steven N. Serajeddini, Esq., at Kirkland & Ellis, LLP; and Mark D. Collins, Esq., and Daniel J. DeFranceschi, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A. The Debtors also tapped as financial advisor, Evercore Partners, and as restructuring advisor, Alvarez & Marsal. Epiq Systems is the claims agent. 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. 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. ENERGY FUTURE: Creditors' Panel Hires Polsinelli as Co-counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors of Energy Future Holdings Corp. and its debtor-affiliates seeks authorization from the Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware to retain Polsinelli PC as co-counsel to the Committee, effective May 13, 2014. The Committee requires Polsinelli to render, without limitation, the following: (a) in conjunction with co-counsel, providing legal advice with respect to the powers and duties available to the Creditors' Committee, an official committee appointed under section 1102 of the Bankruptcy Code; (b) assisting co-counsel in the investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors, the operation of the Debtors' businesses, and any other matter relevant to these cases or to the formulation of a plan or plans of reorganization or liquidation; (c) assisting co-counsel in preparing on behalf of the Creditors' Committee necessary applications, motions, complaints, answers, orders, agreements and other legal papers; (d) reviewing, analyzing and assisting co-counsel in responding to all pleadings filed by the Debtors or other parties-in- interest in these Cases and appearing in Court to present necessary motions, applications and pleadings and to otherwise protect the interest of the Creditors' Committee; (e) consulting with the Debtors and their professionals, other parties-in-interest and their professionals, and the United States Trustee concerning the administration of the Debtors' respective estates; (f) representing the Creditors' Committee in hearings and other judicial proceedings; (g) advising the Creditors' Committee on practice and procedure in the United States Bankruptcy Court for the District of Delaware and with respect to the Local Rules and local practice; and (h) performing all other legal services for the Creditors' Committee in connection with these chapter 11 cases. Polsinelli will be paid at these hourly rates: Shareholders $300-$1,000 Associates and Senior Counsel $200-$400 Paraprofessionals $100-$250 Christopher A. Ward, shareholder $620 Justin K. Edelson, associate $385 Shanti M. Katona, associate $385 Jarrett K. Vine, associate $340 Lindsey M. Suprum, paralegal $245 Polsinelli will also be reimbursed for reasonable out-of-pocket expenses incurred. Christopher A. Ward, shareholder of Polsinelli, 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. Polsinelli can be reached at: Christopher A. Ward, Esq. POLSINELLI PC 222 Delaware Avenue, Suite 1101 Wilmington, DE 19801 Tel: (302) 252-0922 Fax: (302) 252-0921 E-mail: CWard@Polsinelli.com 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 advisors for the Chapter 11 proceedings are Richard M. Cieri, Esq., Edward O. Sassower, P.C., Stephen E. Hessler, Esq., Brian E. Schartz, Esq., James H.M. Sprayregen, P.C., Chad J. Husnick, Esq., and Steven N. Serajeddini, Esq., at Kirkland & Ellis, LLP; and Mark D. Collins, Esq., and Daniel J. DeFranceschi, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A. The Debtors also tapped as financial advisor, Evercore Partners, and as restructuring advisor, Alvarez & Marsal. Epiq Systems is the claims agent. 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. 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. ENERGY FUTURE: Creditors' Panel Taps FTI Consulting as Advisor -------------------------------------------------------------- The Official Committee of Unsecured Creditors of Energy Future Holdings Corp. and its debtor-affiliates seeks authorization from the Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware to retain FTI Consulting, Inc. as financial advisor to the Committee, effective May 19, 2014. The Committee requires FTI Consulting to: (a) assist in the review of financial-related disclosures required by the Court, including the Schedules of Assets and Liabilities, the Statement of Financial Affairs, and Monthly Operating Reports; (b) assist with the assessment and monitoring of the Debtors' short term cash flow, liquidity, and operating results; (c) assist with the review of the Debtors' proposed key employee retention and other employee benefit programs; (d) assist with the review of the Debtors' long term financial projections, including industry outlook and cash generating capacity and identification of potential cost savings, including overhead and operating expense reductions and efficiency improvements; (e) assist with the review of the Debtors' cost/benefit analysis with respect to the affirmation or rejection of various executory contracts and leases; (f) assist with the review of the Debtors' corporate structure, including analysis of intercompany activities and claims; (g) assist with review of any tax issues associated with, but not limited to, claims/stock trading, preservation of net operating losses, refunds due to the Debtors, plans of reorganization, and asset sales; (h) assist in the review of the claims reconciliation and estimation process; (i) attend meetings and assistance in discussions with the Debtors, potential investors, banks, other secured lenders, the Committee and any other official committees organized in these chapter 11 proceedings, the U.S. Trustee, other parties in interest and professionals hired by the same, as requested; (j) assist in the review and preparation of information and analysis necessary for the confirmation of a plan and related disclosure statement in these chapter 11 proceedings; (k) assist in the evaluation and analysis of avoidance actions, including fraudulent conveyances and preferential transfers; (l) assist in the prosecution of Committee responses/objections to the Debtors' motions, including attendance at depositions and provision of expert reports/testimony on case issues as required by the Committee; and (m) render such other general business consulting or such other assistance as the Committee or its counsel may deem necessary that are consistent with the role of a financial advisor and not duplicative of services provided by other professionals in this proceeding. FTI Consulting will be paid at these hourly rates: Senior Managing Directors $800-$925 Directors/Managing Directors $580-$765 Consultants/Senior Consultants $300-$550 Administrative/Paraprofessionals/ Associates $125-$250 FTI Consulting will also be reimbursed for reasonable out-of- pocket expenses incurred. Steven Simms, senior managing director of FTI Consulting, 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. FTI Consulting can be reached at: Steven D. Simms FTI CONSULTING, INC. Three Times Square, 11th Floor New York, NY 10036 Tel: +1 (212) 247-1010 Fax: +1 (212) 841-9350 E-mail: steven.simms@fticonsulting.com 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 advisors for the Chapter 11 proceedings are Richard M. Cieri, Esq., Edward O. Sassower, P.C., Stephen E. Hessler, Esq., Brian E. Schartz, Esq., James H.M. Sprayregen, P.C., Chad J. Husnick, Esq., and Steven N. Serajeddini, Esq., at Kirkland & Ellis, LLP; and Mark D. Collins, Esq., and Daniel J. DeFranceschi, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A. The Debtors also tapped as financial advisor, Evercore Partners, and as restructuring advisor, Alvarez & Marsal. Epiq Systems is the claims agent. 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. 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. ENERGY FUTURE: Creditors' Panel Taps Lazard as Investment Banker ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Energy Future Holdings Corp. and its debtor-affiliates seeks authorization from the Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware to retain Lazard Freres & Co. LLC as investment banker to the Committee, effective May 14, 2014. The Committee requires Lazard to: (a) review and analyze the business, operations, liquidity, assets and liabilities, financial condition and prospects of the Company; (b) review and analyze the Company's business plan; (c) evaluate the Company's debt capacity in light of its projected cash flows; (d) review and provide an analysis of any proposed capital structure for the Company; (e) review and provide an analysis of any valuation of the Company or its assets; (f) advise and attend meetings of the Committee as well as meetings with the Company or other third parties as appropriate in connection with the matters set forth herein; (g) advise and assist the Committee in evaluating the financial aspects of any potential DIP loans or other financing by the Company; (h) review, analyze and advise the Committee with respect to the existing debt structures of the Company, and potential refinancing alternatives for existing secured debt; (i) advise and assist the Committee in analyzing strategic alternatives potentially available to the Company; (j) review and provide an analysis of any restructuring plan proposed by any party; (k) review and provide an analysis of any new securities, other consideration or other inducements to be offered and issued under the Plan or otherwise; (l) assist the Committee and participate in negotiations with the Company; (m) provide testimony, as necessary, with respect to matters on which we have been engaged to advise the Committee in any proceeding before the Court; and (n) provide such other financial advisory services as the Committee may from time to time reasonably request and which are customarily provided by financial advisors in similar situations. Subject to the Court's approval and, except as otherwise modified or by order of the Court, the Committee seeks the following consideration for Lazard's services pursuant to, and as further explained in, the Engagement Letter: -- Monthly Fee: * The Debtors shall pay Lazard a monthly fee of $250,000 for each month of Lazard's engagement hereunder, payable in accordance with this Court's orders. The Monthly Fee for the month of May 2014 shall be payable pro-rated such that Lazard will not be paid for the first 13 days of the month; and * 50% of all Monthly Fees paid in respect of any month commencing with the month of February 2015 shall be credited against any Contingent Fee. For the avoidance of doubt, if the Contingent Fee is not payable, there shall be no crediting of the Monthly Fees. -- Restructuring Fee. The Debtors shall pay Lazard a fee (the "Restructuring Fee"), payable upon consummation of any Restructuring of $10,000,000. -- Contingent Fee. The Debtors shall pay Lazard a fee (the "Contingent Fee"), payable upon consummation of any Restructuring supported by the Committee, of $3,000,000. Lazard will also be reimbursed for reasonable out-of-pocket expenses incurred. Timothy R. Pohl, managing director at Lazard, 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. Lazard can be reached at: Timothy R. Pohl LAZARD FRERES & CO. LLC 30 Rockefeller Plaza New York, NY 10112 Tel: +1 (212) 632-6000 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 advisors for the Chapter 11 proceedings are Richard M. Cieri, Esq., Edward O. Sassower, P.C., Stephen E. Hessler, Esq., Brian E. Schartz, Esq., James H.M. Sprayregen, P.C., Chad J. Husnick, Esq., and Steven N. Serajeddini, Esq., at Kirkland & Ellis, LLP; and Mark D. Collins, Esq., and Daniel J. DeFranceschi, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A. The Debtors also tapped as financial advisor, Evercore Partners, and as restructuring advisor, Alvarez & Marsal. Epiq Systems is the claims agent. 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. 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. ENERGY FUTURE: Executive Bonuses May Top $18 Million ---------------------------------------------------- Peg Brickley, writing for The Wall Street Journal, reported that Energy Future Holdings Corp. is seeking to pay as much as $18 million or more in bonuses to 26 top executives for keeping the company on track during this year's struggle through bankruptcy. According to the report, citing court papers, Energy Future said one major program could pay out a maximum of $15.8 million, if executives hit their top goals. A second major program, estimated to cost $2.5 million, provides for quarterly payments, so the company knows what targets were hit and is able to estimate the overall payout, the report related. 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 SERVICES: Posts $439,000 Net Income in Third Quarter ----------------------------------------------------------- Energy Services of America Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income available to common shareholders of $438,788 on $21.48 million of revenue for the three months ended June 30, 2014, as compared with net income available to common shareholders of $2.93 million on $30.69 million of revenue for the same period last year. For the nine months ended June 30, 2014, the Company reported net income available to common shareholders of $661,540 on $60.58 million of revenue as compared with net income available to common shareholders of $972,848 on $78.42 million of revenue for the same period in 2013. As of June 30, 2014, the Company had $35.78 million in total assets, $19.92 million in total liabilities and $15.85 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/wB7QsU About Energy Services Huntington, West Virginia-based Energy Services of America Corporation provides contracting services to America's energy providers, primarily the gas and electricity providers. Energy Services posted net income of $3.57 million on $108.82 million of revenue for the year ended Sept. 30, 2013, as compared with a net loss of $48.52 million on $109.01 million of revenue during the prior year. Arnett Foster Toothman PLLC, in Charleston, West Virginia, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The indepdendent auditors noted that the Company has suffered recurring losses from operations. This raises substantial doubt about the Company's ability to continue as a going concern. EPAZZ INC: Needs More Time to File Form 10-Q Report --------------------------------------------------- Epazz, 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 has been unable to complete the Quarterly Report within the prescribed time because of delays in completing the preparation of its financial statements and its management discussion and analysis. About EPAZZ Inc. Chicago, Ill.-based EPAZZ, Inc., was incorporated in the State of Illinois on March 23, 2000, to create software to help college students organize their college information and resources. The idea behind the Company was that if the information and resources provided by colleges and universities was better organized and targeted toward each individual, the students would encounter a personal experience with the college or university that could lead to a lifetime relationship with the institution. This concept is already used by business software designed to retain relationships with clients, employees, vendors and partners. Epazz reported a net loss of $3.37 million on $750,139 of revenue for the year ended Dec. 31, 2013, as compared with a net loss of $1.90 million on $1.19 million of revenue for the year ended Dec. 31, 2012. The Company's balance sheet at Dec. 31, 2013, showed $1.08 million in total assets, $2.60 million in total liabilities and a $1.52 million total stockholders' deficit. M&K CPAS, PLLC, 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 has an accumulated deficit of $(7,501,994) and a working capital deficit of $(1,283,338), which raises substantial doubt about its ability to continue as a going concern. Bankruptcy Warning The Company said in the 2013 Annual Report that it will need to raise additional funds to continue to operate as a going concern. "We cannot be certain that any such financing will be available on acceptable terms, or at all, and our failure to raise capital when needed could limit our ability to continue and expand our business. We intend to overcome the circumstances that impact our ability to remain a going concern through a combination of the commencement of additional revenues, of which there can be no assurance, with interim cash flow deficiencies being addressed through additional equity and debt financing. Our ability to obtain additional funding for the remainder of the 2014 year and thereafter will determine our ability to continue as a going concern. There can be no assurances that these plans for additional financing will be successful. Failure to secure additional financing in a timely manner to repay our obligations and supply us sufficient funds to continue our business operations and on favorable terms if and when needed in the future could have a material adverse effect on our financial performance, results of operations and stock price and require us to implement cost reduction initiatives and curtail operations. Furthermore, additional equity financing may be dilutive to the holders of our common stock, and debt financing, if available, may involve restrictive covenants, and strategic relationships, if necessary to raise additional funds, and may require that we relinquish valuable rights. In the event that we are unable to repay our current and long-term obligations as they come due, we could be forced to curtail or abandon our business operations, and/or file for bankruptcy protection; the result of which would likely be that our securities would decline in value and/or become worthless." ERF WIRELESS: Needs More Time to File Form 10-Q Report ------------------------------------------------------ ERF Wireless, 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 it was unable to file the Form 10-Q within the prescribed time because it requires additional time to complete Form 10-Q. The Form 10-Q will be filed within the extension period. About ERF Wireless Based in League City, Texas, ERF Wireless, Inc., provides secure, high-capacity wireless products and services to a broad spectrum of customers in primarily underserved, rural and suburban parts of the United States. ERF Wireless reported a net loss attributable to the Company of $7.26 million in 2013, a net loss attributable to the Company of $4.81 million in 2012 and a net loss attributable to the Company of $3.37 million in 2011. The Company's balance sheet at March 31, 2014, showed $4.16 million in total assets, $11.97 million in total liabilities and a $7.80 million total shareholders' deficit. ERF WIRELESS: Issued 1 Million Common Shares -------------------------------------------- From July 29, 2014, through Aug. 11, 2014, ERF Wireless, Inc., issued 1,020,000 shares of common stock pursuant to Convertible Promissory Notes. The Shares were issued at an average of $.052 per share. The issuance of the Shares constitutes 16.2% of the Company's issued and outstanding shares based on 6,292,414 shares issued and outstanding as of July 28, 2014. About ERF Wireless Based in League City, Texas, ERF Wireless, Inc., provides secure, high-capacity wireless products and services to a broad spectrum of customers in primarily underserved, rural and suburban parts of the United States. ERF Wireless reported a net loss attributable to the Company of $7.26 million in 2013, a net loss attributable to the Company of $4.81 million in 2012 and a net loss attributable to the Company of $3.37 million in 2011. The Company's balance sheet at March 31, 2014, showed $4.16 million in total assets, $11.97 million in total liabilities and a $7.80 million total shareholders' deficit. ESSAR STEEL: S&P Lowers CCR to 'SD' on Planned Restructuring ------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its long-term corporate credit rating on Essar Steel Algoma Inc. to 'SD' (selective default) from 'CCC-'. At the same time, Standard & Poor's lowered its issue-level rating on the US$385 million senior unsecured notes to 'D' (default) from 'C'. Standard & Poor's also removed the ratings from CreditWatch, where they were placed with negative implications June 26. Finally, Standard & Poor's placed its 'CCC+' issue-level rating on the company's senior secured asset-backed loan (ABL) facility and notes on CreditWatch with developing implications and removed them from CreditWatch with negative implications to reflect the uncertainty regarding the timing and outcome of the proposed restructuring on secured creditors. "The rating actions reflect Essar's default on its unsecured debt obligations, and our expectation that the company will continue to service its secured debt obligations until their eventual refinancing at par," said Standard & Poor's credit analyst Jarrett Bilous. Essar missed the interest payment on its US$385 million unsecured notes, due July 16, 2015, following a 30-day grace period. S&P do not expect the company to pay the interest owed on the unsecured notes, which is an event of default as per Standard & Poor's criteria. The CreditWatch placement reflects the uncertainty regarding the outcome of the proposed restructuring of Essar on its secured creditors. S&P expects the secured ABL and notes will be fully refinanced upon completion of the proposed unsecured debt restructuring, concurrent with an equity infusion of up to US$300 million by the parent. However, there are risks associated with the completion of the restructuring as contemplated in a timely manner. Furthermore, in the event that the secured notes remain outstanding upon the company's completion of the restructuring, S&P could notch the issue-level rating up or down depending on the long-term corporate credit rating and S&P's updated recovery analysis. EVERYWARE GLOBAL: Incurs $26.9 Million Net Loss in Second Quarter ----------------------------------------------------------------- EveryWare Global, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $26.91 million on $99.79 million of total revenues for the three months ended June 30, 2014, compared to a net loss of $2.20 million on $100.84 million of total revenues for the same period a year ago. For the six months ended June 30, 2014, the Company reported a net loss of $65.29 million on $194.63 millin of total revenues compared to a net loss of $2 million on $200.18 million of total revenues for the same period during the prior year. As of June 30, 2014, the Company had $274.33 million in total assets, $400.64 million in total liabilities and a $126.30 million total stockholders' deficit. Sam Solomon, chief executive officer of EveryWare stated, "We resolved our liquidity and covenant issues and right sized our manufacturing capacity. Now we are focused on operational initiatives and providing excellent service to our customers. Our operational improvements will take time to produce results, but we believe they will deliver earnings and cash flow growth over the long-term. I look forward to the opportunities ahead." A full-text copy of the Form 10-Q is available for free at: http://is.gd/80wdgF About EveryWare EveryWare Global, Inc. is a global marketer of tabletop and food preparation products for the consumer and foodservice markets, with operations in the United States, Canada, Mexico, Latin America, Europe and Asia. Its global platform allows it to market and distribute internationally its total portfolio of products, including bakeware, beverageware, serveware, storageware, flatware, dinnerware, crystal, buffetware and hollowware; premium spirit bottles; cookware; gadgets; candle and floral glass containers; and other kitchen products, all under a broad collection of widely-recognized brands. * * * As reported by the TCR on Aug. 6, 2014, Standard & Poor's Ratings Services raised its corporate credit rating on EveryWare Global Inc. to 'CCC+' from 'CCC-'. "The upgrade reflects our view that a default scenario is less likely as a result of a $20 million investment from majority owner, Monomoy Capital Partners, in addition to a waiver received for the covenant default in the quarter ended March 2014 and the expected covenant default in the quarter ended June 2014. EXIDE TECHNOLOGIES: U.S. Trustee Responds to Bid for Equity Panel ----------------------------------------------------------------- BankruptcyData reported that the U.S. Trustee assigned to the Exide Technologies case filed with the U.S. Bankruptcy Court a response to the request for an official committee of equity security holders. According to BData, the U.S. Trustee explained that "Equity committees should not be appointed unless equity holders establish that (i) there is a substantial likelihood that they will receive a meaningful distribution in the case under a strict application of the absolute priority rule, and (ii) they are unable to represent their interests adequately without an official committee....Movants assert that there is as much as $600 million of equity value in the Debtor, but have not yet offered admissible evidence to support such a valuation....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 pre-petition and post- petition creditors. Absent the requisite evidentiary showing, the estate should not be burdened with the substantial cost of an equity committee....The Movants have the initial burden of developing a factual record to demonstrate that the interests of equity holders are not adequately represented. They have not met that burden....The Movants have not shown that the interests of the board of directors and of management are not aligned with the interests of shareholders. They have failed to demonstrate that equity is likely to receive a meaningful distribution in this case, and they have failed to demonstrate that shareholder interests are not adequately represented. Accordingly, the Motions should be denied." 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. EXIDE TECHNOLOGIES: Taps Akin Gump as Board Counsel --------------------------------------------------- Exide Technologies seeks authorization from the Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to employ Akin Gump Strauss Hauer & Feld LLP as counsel to the board of directors, nunc pro tunc to June 1, 2014. The Debtor requires Akin Gump to assist the Board, as requested, with respect to a restructuring, recapitalization or reorganization of all or a portion of the assets and liabilities of the Company and to perform any and all other legal services as may be requested by the Board from time to time. Such services may also include, at the request of the Board, the provision of legal services to committees of the Board. Akin Gump will be paid at these hourly rates: Kerry E. Berchem, Partner $895 Sarah Link Schultz, Partner $900 Steven F. Reich, Partner $975 Bruce S. Mendelsohn, Partner $950 Ashley R. Beane, Counsel $700 Partners $615-$1,220 Senior Counsel and Counsel $520-$925 Associates $355-$675 Paraprofessionals $155-$345 Akin Gump will also be reimbursed for reasonable out-of-pocket expenses incurred. Sarah Link Schultz, partner of Akin Gump, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The Court for the District of Delaware will hold a hearing on the motion on Aug. 22, 2014, at 10:00 a.m. Objections were due Aug. 15, 2014. Akin Gump can be reached at: Sarah Link Schultz, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York, NY 10036 Tel: (212) 872-1000 Fax: (212) 872-1002 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. EXIDE TECHNOLOGIES: Execs Can't Escape Suit Over Enviro Issues -------------------------------------------------------------- Law360 reported that executives of bankrupt automotive and industrial battery maker Exide Technologies Inc. can't dismiss a putative investor class action alleging the company misled investors about its failure to comply with environmental regulations, a California federal judge ruled. According to the report, while their first amended complaint had been dismissed for lack of specificity, the plaintiffs -- Exide shareholders and senior noteholders -- had adequately alleged in their second amended complaint that the defendants had made materially false or misleading statements regarding the company's environmental compliance. The case is David M Loritz v. Exide Technologies et al., Case No. 2:13-cv-02607 (C.D. Calif.). 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. FOREVER GREEN: Dismissal of Involuntary Petition Affirmed --------------------------------------------------------- District Judge Stewart Dalzell affirmed a Bankruptcy Court decision dismissing an involuntary petition against Forever Green Athletic Fields, Inc. based solely on that Court's finding that a petitioning creditor impermissibly used the involuntary petition as a litigation tactic and thus acted in bad faith. On April 20, 2012, Charles Dawson, his wife Kelli L. Dawson, and the law firm Cohen, Seglias, Pallas, Greenhall & Furman, PC filed an involuntary petition under Chapter 11 of the Bankruptcy Code, 11 U.S.C. Sec. 101 et seq., against Forever Green, which markets artificial turf for athletic fields. The Dawsons have a $306,006.24 Consent Judgment against Forever Green dated April 5, 2011 as a result of litigation in Louisiana. Cohen Seglias has a $206,126.00 judgment against Forever Green entered by the Court of Common Pleas of Philadelphia County, about which the Bankruptcy Court stated "[n]o additional information has been provided." On Nov. 1, 2013, after a two-day hearing and the parties' post- hearing briefing, Judge Magdeline D. Coleman of the United States Bankruptcy Court for the Eastern District of Pennsylvania found by a preponderance of the evidence that Charles Dawson filed the involuntary petition "in furtherance of an improper bankruptcy purpose." She held that the record showed the litigation to be the "latest tactic employed by Mr. Dawson to frustrate Forever Green's attempts to litigate its claims against him and the entities he owns." The Court held that "[a]fter due deliberation and for sufficient cause[,] . . . Mr. Dawson was not motivated by a proper bankruptcy purpose," and granted the Putative Debtor's motion to dismiss on the grounds that the involuntary petition was a bad-faith filing and an abuse of the bankruptcy court system. A copy of the District Court's August 13, 2014 Memorandum is available at http://is.gd/7b34u6from Leagle.com. The case is, FOREVER GREEN ATHLETIC FIELDS, INC., Putative Debtor/Appellee v. CHARLES DAWSON, KELLY DAWSON and COHEN SEGLIAS PALLAS GREENHALL & FURMAN, Petitioning Creditors/Appellants, Civil Action No. 14-641 (E.D. Pa.). Forever Green Athletic Fields, Inc., is represented by: Aris J. Karalis, Esq. Robert W. Seitzer, Esq. MASCHMEYER KARALIS, P.C. 1900 Spruce St Philadelphia, PA 19103 Tel:(215) 546-4500 E-mail: AKaralis@cmklaw.com RSeitzer@cmklaw.com The petitioning creditors are represented by: Leslie J. Rase, Esq. Steven K. Eisenberg, Esq. STERN & EISENBERG PC 1581 Main Street, Suite 200 Warrington, PA 18976 Tel: (215) 572-8111 E-mail: lrase@sterneisenberg.com seisenberg@sterneisenberg.com Robert H. Holber, the Chapter 7 Trustee, is represented by his own firm: Robert H. Holber, Esq. THE LAW OFFICE OF ROBERT H. HOLBER PC 41 E Front St Media, PA 19063 Tel: (610) 565-5463 FORMER PAYROLL: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Former Payroll Company, Inc. fka PayPro, Inc. 6774 South 1300 East Salt Lake City, UT 84121 Case No.: 14-28633 Chapter 11 Petition Date: August 18, 2014 Court: United States Bankruptcy Court District of Utah (Salt Lake City) Judge: Hon. Kimball Mosier Debtor's Counsel: Paul James Toscano, Esq. THE LAW OFFICE OF PAUL TOSCANO, P.C. Newhouse Building, Suite 614 10 Exchange Place Salt Lake City, UT 84111 Tel: (801) 359-1313 Email: ptoscano@expresslaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Barbara Iwaniec, corporate secretary. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. FREEDOM INDUSTRIES: Judge Again Limits Fee Payments --------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that U.S. Bankruptcy Judge Ronald G. Pearson in Charleston, West Virginia, refused to allow professionals in the Chapter 11 case of Freedom Industries Inc., to be paid 60 percent of their fees every month. According to the report, Judge Pearson rejected a "mechanism" proposed by attorneys and other professionals to be paid 60 percent of their monthly fees and 80 percent if there are no objections, saying the "elaborate scheme" would complicate, limit, and delay the court in passing on fees. It might also make it more difficult for the court to ensure that Freedom meets its environmental obligations, which the court finds to be the "urgent class" of administrative expense, the judge said in his ruling on Aug. 6, the report related. About Freedom Industries Freedom Industries Inc., is engaged principally in the business of producing specialty chemicals for the mining, steel and cement industries. The Debtor operates two production facilities located in (a) Nitro, West Virginia; and (b) Charleston, West Virginia. The company, connected to a chemical spill that tainted the water supply in West Virginia, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 14-bk-20017) on Jan. 17, 2014. The case is assigned to Judge Ronald G. Pearson. The petition was signed by Gary Southern, president. The Debtor is represented by Mark E Freedlander, Esq., at McGuire Woods LLP, in Pittsburgh, Pennsylvania; and Stephen L. Thompson, Esq., at Barth & Thompson, in Charleston, West Virginia. On Dec. 31, 2013, four companies merged under the umbrella of Freedom Industries: Freedom Industries Inc., Etowah River Terminal LLC, Poca Blending LLC and Crete Technologies LLC. As reported in the Troubled Company Reporter on Feb. 20, 2014, Kate White, writing for The Charleston Gazette, reported that the Debtor disclosed $16 million in assets and $6 million in liabilities when it filed for bankruptcy. On Feb. 5, 2014, the U.S. Trustee appointed an official committee of unsecured creditors. The Committee retained Frost Brown Todd LLC as counsel. On March 18, the Bankruptcy Court approved the hiring of Mark Welch at MorrisAnderson in Chicago as Freedom's chief restructuring officer. FREEDOM INDUSTRIES: Files Creditor-Payment Plan ----------------------------------------------- Joseph Checkler, writing for The Wall Street Journal, reported that Freedom Industries Inc., the company behind a chemical spill that contaminated a significant swath of West Virginia's water supply, filed a creditor-payment plan that aims to start resolving the claims brought by those affected by the spill. According to the report, the plan provides that general unsecured creditors would receive nearly a dime for every dollar of the approximately $8.5 million they are owed. About Freedom Industries Freedom Industries Inc., is engaged principally in the business of producing specialty chemicals for the mining, steel and cement industries. The Debtor operates two production facilities located in (a) Nitro, West Virginia; and (b) Charleston, West Virginia. The company, connected to a chemical spill that tainted the water supply in West Virginia, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No. 14-bk-20017) on Jan. 17, 2014. The case is assigned to Judge Ronald G. Pearson. The petition was signed by Gary Southern, president. The Debtor is represented by Mark E Freedlander, Esq., at McGuire Woods LLP, in Pittsburgh, Pennsylvania; and Stephen L. Thompson, Esq., at Barth & Thompson, in Charleston, West Virginia. On Dec. 31, 2013, four companies merged under the umbrella of Freedom Industries: Freedom Industries Inc., Etowah River Terminal LLC, Poca Blending LLC and Crete Technologies LLC. As reported in the Troubled Company Reporter on Feb. 20, 2014, Kate White, writing for The Charleston Gazette, reported that the Debtor disclosed $16 million in assets and $6 million in liabilities when it filed for bankruptcy. On Feb. 5, 2014, the U.S. Trustee appointed an official committee of unsecured creditors. The Committee retained Frost Brown Todd LLC as counsel. On March 18, the Bankruptcy Court approved the hiring of Mark Welch at MorrisAnderson in Chicago as Freedom's chief restructuring officer. FULLCIRCLE REGISTRY: Incurs $165,500 Net Loss in 2nd Quarter ------------------------------------------------------------ FullCircle Registry, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $165,510 on $396,029 of revenues for the three months ended June 30, 2014, compared to a net loss of $179,000 on $477,043 of revenues for the same period a year ago. The Company also reported a net loss of $261,019 on $782,172 of revenues for the six months ended June 30, 2014, compared to a net loss of $206,984 on $931,344 of revenues for the same period during the previous year. As of June 30, 2014, the Company had $5.75 million in total assets, $6.06 million in total liabilities and a $306,851 total stockholders' deficit. Net cash provided by operating activities for the six months ended June 30, 2014 was $4,418 compared to net cash used by operating activities for the six months ended June 30, 2013 of $4,753. During the six months ended June 30, 2014, $945 was used for investments, and $21,173 was provided by financing activities. For the same period in 2013, $40,113 was used for investments and $35,713 was provided by financing activities. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/vLW176 About FullCircle Registry Shelbyville, Kentucky-based FullCircle Registry, Inc., targets the acquisition of small profitable businesses. FullCircle Registry, Inc., has become a holding company with three subsidiaries. They are FullCircle Entertainment, Inc., FullCircle Insurance Agency, Inc. and FullCircle Prescription Services, Inc. Target companies for future acquisition are those in search of exit plans for the owners and are intended to continue autonomous operations as current ownership is phased out over a period of 3-5 years. FullCircle Registry reported a net loss of $448,102 on $1.88 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $369,784 on $1.86 million of revenues during the prior year. Rodefer Moss & Co., PLLC, in New Albany, Indiana, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that FullCircle has suffered recurring losses from operations and has a net working capital deficiency that raises substantial doubt about the company's ability to continue as a going concern. FUSION TELECOMMUNICATIONS: Hires EisnerAmper as New Accountant -------------------------------------------------------------- Fusion Telecommunications International, Inc., with the approval of its audit committee, terminated the engagement of KPMG LLP as the Company's independent registered public accounting firm. The Company's decision to terminate the engagement was based on uncertainty surrounding the time to complete the review of the Company's consolidated financial statements for the quarterly period ended June 30, 2014. KPMG had been engaged on July 10, 2014, following KPMG's acquisition of certain assets of Rothstein-Kass, P.A., d/b/a Rothstein Kass & Company, P.C., and certain of its affiliates. As a result of that transaction, on June 30, 2014, Rothstein Kass resigned as the Company's independent registered public accounting firm. Rothstein Kass audited the Company's consolidated financial statements for the years ended Dec. 31, 2013 and 2012. KPMG has never issued an audit report or completed a review of the Company's consolidated financial statements. The Company said that during the period of KPMG's engagement from July 10, 2014, through Aug. 12, 2014, there were no disagreements between the Company and KPMG. During the period of engagement, the Company engaged in discussions with KPMG on certain accounting and auditing matters related to the Company's sales of accounts receivable, accounting treatment of the Company's preferred stock and warrants and accounting treatment of a related party note payable. With the termination of KPMG as the Company's independent registered public accounting firm, KPMG was unable to complete their evaluation of these matters and their review of the Company's consolidated financial statements for the quarterly period ended June 30, 2014. On Aug. 12, 2014, the Company, with the approval of its Audit Committee, engaged EisnerAmper LLP as its new independent registered public accounting firm. During the two most recent fiscal years ended Dec. 31, 2013, and through the subsequent interim period prior to EisnerAmper becoming the Company's independent registered public accounting firm, the Company did not consult with EisnerAmper. About Fusion Telecommunications New York City-based Fusion Telecommunications International, Inc. (OTC BB: FSNN) is a provider of Internet Protocol ("IP") based digital voice and data communications services to corporations and carriers worldwide. Fusion Telecommunications incurred a net loss applicable to common stockholders of $5.48 million in 2013, a net loss applicable to common stockholders of $5.61 million in 2012 and a net loss of $4.45 million in 2011. The Company's balance sheet at March 31, 2014, showed $69.69 million in total assets, $58.51 million in total liabilities and $11.18 million in total stockholders' equity. GARCIA TENT: Case Summary & 10 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Garcia Tent Rentals, Inc. 303 Arvada Ave. NW Albuquerque, NM 87102 Case No.: 14-12485 Chapter 11 Petition Date: August 18, 2014 Court: United States Bankruptcy Court New Mexico (Albuquerque) Judge: Hon. David T. Thuma Debtor's Counsel: Erika Poindexter, Esq. POINDEXTER LAW, LLC 118 Wellesly Dr. SE Albuquerque, NM 87106 Tel: 505-881-8186 Fax: 505-265-1319 Email: erika@bkpoindexter.com Total Assets: $2.08 million Total Liabilities: $728,935 The petition was signed by Steven Garcia, president. A list of the Debtor's 10 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb14-13865.pdf GENIUS BRANDS: Reports $1.1 Million Second Quarter Net Loss ----------------------------------------------------------- Genius Brands International, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.14 million on $217,196 of total revenues for the three months ended June 30, 2014, compared to a net loss of $543,249 on $622,324 of total revenues for the same period a year ago. Net loss for the six months ended June 30, 2014, was $1.99 million on $393,478 of total revenues compared to a net loss of $1.48 million on $1.35 million of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2014, showed $18.91 million in total assets, $3.46 million in total liabilities and $15.44 million in total equity. Cash totaled $5,576,206 at June 30, 2014. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/wME6QB About Genius Brands San Diego, Calif.-based Genius Brands International, Inc., creates and distributes music-based products which it believes are entertaining, educational and beneficial to the well-being of infants and young children under its brands, including Baby Genius and Little Genius. Genius Brands reported a net loss of $7.21 million in 2013, a net loss of $2.06 million in 2012 and a net loss of $1.37 million in 2011. GEOMET INC: Posts $57.7 Million Net Income in Second Quarter ------------------------------------------------------------ Geomet, Inc., reported net income available to common stockholders of $57.71 million for the quarter ended June 30, 2014, compared to net income available to common stockholders of $40.46 million for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income available to common stockholders of $57.31 million compared to net income available to common stockholders of $33.14 million for the same period a year ago. As of June 30, 2014, the Company had $27.95 million in total assets, $3.96 million in total liabilities, $45.90 million in series A convertible redeemable preferred stock and a $21.92 million stockholders' deficit. On May 12, 2014, the Company closed the sale of substantially all of its remaining assets. As a result of the Asset Sale, the Company has classified all of the assets related to its gas properties as Assets related to discontinued operations and all related liabilities as Liabilities related to discontinued operations, both in the Condensed Consolidated Balance Sheet (Unaudited) as of June 30, 2014. Additionally, the related operating activities are presented as discontinued operations in the Condensed Consolidated Statements of Operations (Unaudited) for the quarter and six months ended June 30, 2014 and 2013. A full-text copy of the press release is available for free at: http://is.gd/ENWZyc About Geomet Inc. Houston, Texas-based GeoMet, Inc., is an independent energy company primarily engaged in the exploration for and development and production of natural gas from coal seams (coalbed methane) and non-conventional shallow gas. Its principal operations and producing properties are located in the Cahaba and Black Warrior Basins in Alabama and the central Appalachian Basin in Virginia and West Virginia. It also owns additional coalbed methane and oil and gas development rights, principally in Alabama, Virginia, West Virginia, and British Columbia. As of March 31, 2012, it owns a total of 192,000 net acres of coalbed methane and oil and gas development rights. Hein & Associates 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 has suffered recurring losses from operations and has a net working capital deficiency that raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning On Feb. 13, 2014, the Company and its wholly-owned subsidiaries, GeoMet Operating Company, Inc. and GeoMet Gathering Company, LLC, entered into an asset purchase agreement to sell substantially all of the Company's remaining assets, comprising coalbed methane interests and other assets located in the Appalachian Basin in McDowell, Harrison, Wyoming, Raleigh, Barbour and Taylor Counties, West Virginia and Buchanan County, Virginia to ARP Mountaineer Productions, LLC, and a wholly-owned subsidiary of Atlas Resource Partners, L.P., for a purchase price of $107 million, subject to various purchase price adjustments. "If the Asset Sale is not consummated and we are unable to find another viable purchaser for our assets, we will likely file bankruptcy as we will have no operating assets to continue the business," the Company said in the Annual Report for the year ended Dec. 31, 2013. HAROLD L. ROSBOTTOM: 5th Circuit Affirms Conviction --------------------------------------------------- Harold Rosbottom and Ashley Kisla were convicted in federal district court of various counts of conspiracy, false oath, and concealment of assets in connection with property of Rosbottom's that was not disclosed in his bankruptcy proceedings. They appeal, alleging various trial and sentencing errors. "We affirm as to all convictions, sentences, and monetary penalties," United States Court of Appeals, Fifth Circuit, held in an Aug. 13 decision written by Circuit Judge Patrick E. Higginbotham, available at http://is.gd/u5GW7nfrom Leagle.com. In an 11-count superseding indictment, Rosbottom and Kisla were charged with various criminal counts arising from Rosbottom's bankruptcy proceedings. Specifically, the indictment charged both defendants with conspiracy, in violation of 18 U.S.C. Sec. 371 (Count 1); transfer of assets, in violation of 18 U.S.C. Sec. 152(7) (Count 2); conspiracy to launder money instruments, in violation of 18 U.S.C. Sec. 1956(h) (Count 8); money laundering, in violation of 18 U.S.C. Sections 1956(a)(1)(A)(i) and (B)(i) (Count 9); and concealment of assets, in violation of 18 U.S.C. Sec. 152(1) (Count 11). The indictment charged Rosbottom individually with three additional counts of concealment of assets (Counts 3, 4, and 10) and two counts of false oath and account, in violation of 18 U.S.C. Sec. 152(2) (Counts 5 and 7). It further charged Kisla individually with one count of false oath and account (Count 6). The indictment also sought forfeiture of $1,677,506, an issue which both parties agreed would be determined by the district court. A jury convicted Rosbottom on Counts 1-3, 5, 7-8, and 10-11, and acquitted him on Counts 4 and 9. Kisla was convicted on Counts 1, 6, and 8, and acquitted on Counts 2, Count 9, and 11. The court sentenced Rosbottom to a total term of imprisonment of 120 months: 60 months each for Counts 1, 2, 5, and 10, to run concurrently; 60 months each for Counts 3, 7, and 11, to run concurrently to each other but consecutively to Counts 1, 2, 5, and 10; and 120 months for Count 8, to run concurrently. It also sentenced him to three years of supervised release and $5,353,102 in restitution. Kisla was sentenced to 60 months of incarceration and three years of supervised release. Evidence at trial showed the following. Rosbottom was a self-made multi-millionaire who owned over a hundred businesses. Co- defendant Kisla was Rosbottom's employee since 2001 and girlfriend since 2005. In connection with a divorce proceeding in Texas, Rosbottom filed an individual voluntary Chapter 11 bankruptcy petition in the Western District of Louisiana on June 9, 2009. He thus became a debtor-in-possession and was required to file statements of financial affairs and be questioned under oath. In his filings, Rosbottom represented that no property was transferred within the previous two years and was asked to list all property being held for him by someone else. Rosbottom did not disclose, neither in original nor amended filings, a series of cashier's checks, a boat, a plane, or a private club membership. On February 18, 2010, the United States trustee, Frances Hewitt, petitioned for appointment of a Chapter 11 trustee on the grounds that she discovered a $140,000 deposit that Rosbottom made towards the purchase of a boat in March 2009. Former Bankruptcy Judge Gerald Schiff was appointed trustee and took control of Rosbottom's personal bankrupt estate as well as his businesses. The case is, UNITED STATES OF AMERICA, Plaintiff-Appellee, v. HAROLD L. ROSBOTTOM, JR.; ASHLEY C. KISLA, Defendants-Appellants, No. 13-30071 (5th Cir.). IDEARC INC: Fifth Circuit Bars Creditors from Jury on Fraud Suit ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Verizon Communications Inc. won a complete victory over creditors of former subsidiary Idearc Inc. when the U.S. Fifth Circuit Court of Appeals in New Orleans upheld judgment from a federal district judge in Dallas throwing out a $9.8 billion lawsuit the creditors' trustee initiated almost four years ago. According to Mr. Rochelle, the opinion is important for two reasons: (1) In terms of economics, Idearc creditors were told to expect little from bankruptcy absent victory in suits against Verizon, the second-largest phone company in the U.S. Idearc had about $6 billion in unsecured claims; and (2) On the law, the opinion is important because it tells creditors they likely won't be entitled to a jury trial when they file fraudulent transfer suits against creditors who filed claims. The appeal is U.S. Bank NA v. Verizon Communications Inc., 13- 10752, U.S. Fifth Circuit Court of Appeals (New Orleans). 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. IDERA PHARMACEUTICALS: Incurs $8.3 Million Net Loss in Q2 --------------------------------------------------------- Idera Pharmaceuticals, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $8.30 million on $38,000 of alliance revenue for the three months ended June 30, 2014, as compared with a net loss of $3.59 million on $29,000 of alliance revenue for the same period last year. The Company also reported a net loss of $17.26 million on $41,000 of alliance revenue for the six months ended June 30, 2014, as compared with a net loss of $7.39 million on $36,000 of alliance revenue for the same period during the prior year. As of June 30, 2014, the Company had $66.56 million in total assets, $6.30 million in total liabilities and $60.26 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ijWrJS About Idera Pharmaceuticals Cambridge, Massachusetts-based Idera Pharmaceuticals, Inc., is a clinical stage biotechnology company engaged in the discovery and development of novel synthetic DNA- and RNA-based drug candidates that are designed to modulate immune responses mediated through Toll-like Receptors, or TLRs. The Company has two drug candidates, IMO-3100, a TLR7 and TLR9 antagonist, and IMO-8400, a TLR7, TLR8, and TLR9 antagonist, in clinical development for the treatment of autoimmune and inflammatory diseases. Idera Pharmaceuticals reported a net loss of $18.22 million in 2013, a net loss of $19.24 million in 2012 and a net loss of $23.77 million in 2011. IMAGEWARE SYSTEMS: Conference Call Held to Discuss Results ---------------------------------------------------------- ImageWare Systems, Inc., conducted a quarterly conference call on Aug. 11, 2014, where it provided a corporate update and provided certain information regarding the Company's progress. In the second quarter of 2014, total revenue was $937,000 versus $1.0 million in the second quarter of 2013. Gross margin in the second quarter of 2014 increased 410 basis points to 75.2% compared to 71.1% in the year-ago quarter. The increase was primarily due to the increase in the percentage of software license revenues as a component of product revenues. Net loss in the second quarter of 2014 was $2.1 million or $0.02 per basic share, compared to a net loss of $5.6 million or minus $0.07 per basic share in the second quarter of 2013. The $5.6 million loss in 2013 included a $4.0 million charge for changes in the fair market value of derivative liabilities. At June 30, 2014, cash and cash equivalents totalled $1.4 million compared to $2.4 million at Dec. 31, 2013. A full-text copy of the transcript is available for free at: http://is.gd/sbuP9a About ImageWare Systems Headquartered in San Diego, California, ImageWare Systems, Inc., is a leader in the emerging market for software-based identity management solutions, providing biometric, secure credential, law enforcement and enterprise authorization. Its "flagship" product is the IWS Biometric Engine. Scalable for small city business or worldwide deployment, the Company's biometric engine is a multi- biometric platform that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. The Company's identification products are used to manage and issue secure credentials, including national IDs, passports, driver licenses, smart cards and access control credentials. Its law enforcement products provide law enforcement with integrated mug shot, fingerprint LiveScan and investigative capabilities. The Company also provides comprehensive authentication security software. Imageware Systems incurred a net loss of $9.84 million in 2013, a net loss of $10.19 million in 2012 and a net loss of $3.18 million in 2011. As of March 31, 2014, the Company had $7.59 million in total assets, $3.99 million in total liabilities and $3.60 million in total shareholders' equity. INDEPENDENCE TAX II: Delays 10-Q Over Management Changes -------------------------------------------------------- Independence Tax Credit Plus L.P. IV was not able to timely file its quarterly report on Form 10-Q for the period ended June 30, 2014. Significant changes in the senior management of Independence Tax Credit Plus L.P. II have occurred since the Partnership's last quarterly report on Form 10-Q. On Nov. 14, 2013, Robert A. Pace resigned as a chief financial officer and principal accounting officer and was subsequently replaced by Mark B. Hattier. Also, on Nov. 14, 2013, Robert L. Levy resigned as president and chief executive officer and was subsequently replaced by Alan T. Fair. "While the Partnership's new officers have been working diligently to familiarize themselves with the Partnership's operations and to accomplish a timely filing of its Quarterly Report on Form 10-Q for the period ended June 30, 2014, they require additional time to finalize the report within the spirit as well as the letter of the Commission's rules," the Partnership said in a regulatory filing with the U.S. Securities and Exchange Commission. The Company expects to file the Form 10-Q no later than five calendar days after its original prescribed due date. About Independence Tax Credit Plus L.P. II Based in New York, Independence Tax Credit Plus L.P. II was organized on Feb. 11, 1992, and commenced its public offering on Jan. 19, 1993. The general partner of the Partnership is Related Independence Associates L.P., a Delaware limited partnership. The general partner of Related Independence Associates L.P. is Related Independence Associates Inc., a Delaware Corporation. The ultimate parent of Related Independence Associates L.P. is Centerline Holding Company. The Partnership's business is primarily to invest in other partnerships owning leveraged apartment complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. The Partnership is in the process of developing a plan to dispose of all of its investments. The Company's balance sheet at March 31, 2014, showed $2.76 million in total assets, $16.49 million in total liabilities and a $13.73 million total partners' deficit. "At March 31, 2014, the Partnership's liabilities exceeded assets by $13,733,253 and for the year then ended, the partnership had net loss of $ (568,406). These factors raise doubt about the Partnership's ability to continue as a going concern," the Partnership said in its annual report for the year ended March 31, 2014. INDUSTRY MANAGEMENT: Case Summary & 2 Top Unsecured Creditors ------------------------------------------------------------- Debtor: Industry Management, LLC 23945 Calabasas Road, Suite 101 Calabasas, CA 91302 Case No.: 14-13865 Chapter 11 Petition Date: August 18, 2014 Court: United States Bankruptcy Court Central District of California (San Fernando Valley) Debtor's Counsel: Matthew Abbasi, Esq. ABBASI LAW CORPORATION 8889 West Olympicd Blvd., Suite 240 Beverly Hills, CA 90211 Tel: 310-358-9341 Fax: 888-709-5448 Email: matthew@anhlegal.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by George Shakiban, manager. A list of the Debtor's two largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb14-13865.pdf INTERMETRO COMMUNICATIONS: Delays Q2 Form 10-Q Filing ----------------------------------------------------- InterMetro Communications, 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 it was unable to prepare its accounting records and schedules in sufficient time to allow its accountants to complete their review of the Company's financial statements. The Company intends to file the subject Quarterly Report on or before the fifth calendar day following the prescribed due date. About InterMetro Simi Valley, Calif.-based InterMetro Communications, Inc., -- http://www.intermetro.net/-- is a Nevada corporation which through its wholly owned subsidiary, InterMetro Communications, Inc. (Delaware), is engaged in the business of providing voice over Internet Protocol ("VoIP") communications services. InterMetro Communications reported a net loss of $2.45 million on $11.57 million of net revenues for the year ended Dec. 31, 2013, as compared with net income of $699,000 on $20.06 million of net revenues in 2012. Gumbiner Savett Inc., in Santa Monica, California, issued a "going cocern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company incurred net losses in previous years, and as of Dec. 31, 2013, the Company had a working capital deficit of approximately $12,082,000 and a total stockholders' deficit of approximately $12,426,000. The Company anticipates that it will not have sufficient cash flow to fund its operations in the near term and through fiscal 2014 without the completion of additional financing. These factors, among other things, raise substantial doubt about the Company's ability to continue as a going concern INTERMETRO COMMUNICATIONS: Douglas Benson Holds 32.6% Stake ----------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Douglas LeRoy Benson disclosed that as of Aug. 1, 2014, he beneficially owned 27,113,091 shares of common stock of Intermetro Communications, Inc., representing 32.63 percent of the shares outstanding. On Aug. 1, 2014, the Reporting Person acquired an additional 3,000,000 shares of Series B Convertible Preferred Stock of the Company and a warrant to purchase 3,000,000 shares of common stock of the issuer for a total purchase price of $3,000,000. The 3,000,000 shares of Series B Convertible Preferred are convertible into 20,000,000 shares of common stock of the Company. A full-text copy of the regulatory filing is available at: http://is.gd/IvSCCT About InterMetro Simi Valley, Calif.-based InterMetro Communications, Inc., -- http://www.intermetro.net/-- is a Nevada corporation which through its wholly owned subsidiary, InterMetro Communications, Inc. (Delaware), is engaged in the business of providing voice over Internet Protocol ("VoIP") communications services. InterMetro Communications reported a net loss of $2.45 million on $11.57 million of net revenues for the year ended Dec. 31, 2013, as compared with net income of $699,000 on $20.06 million of net revenues in 2012. Gumbiner Savett Inc., in Santa Monica, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company incurred net losses in previous years, and as of Dec. 31, 2013, the Company had a working capital deficit of approximately $12,082,000 and a total stockholders' deficit of approximately $12,426,000. The Company anticipates that it will not have sufficient cash flow to fund its operations in the near term and through fiscal 2014 without the completion of additional financing. These factors, among other things, raise substantial doubt about the Company's ability to continue as a going concern. KIRCH MEDIA: Deutsche Bank CEO Hit With Fraud Charges ----------------------------------------------------- Law360 reported that Deutsche Bank AG co-CEO Juergen Fitschen and two of his predecessors have been charged with attempted fraud by German prosecutors, stemming from the bank's long-running legal fight with the bankrupt Kirch media group, according to a German media report. Law360 related that Fitschen, former Deutsche Bank CEOs Rolf-Ernst Breuer and Josef Ackermann, and former executives Clemens Boersig and Tessen von Heydebreck have all been charged with attempted fraud, according to German newspaper Sueddeutsche Zeitung, citing sources in the Munich public prosecutor's office. Headquartered in Ismaning, Germany, KirchMedia GmbH -- http://www.kirchmedia.de/-- was the country's second largest media company prior to its insolvency filing in June 2002. The firm's collapse, caused by a US$5.7 billion debt incurred during an expansion drive, was Germany's biggest since World War II. Taurus Holding is the former holding company for the Kirch group. The case is docketed under Case No. 14 HK O 1877/07 at the Regional Court of Munich. LANTHEUS MEDICAL: Incurs $1.6 Million Net Loss in Second Quarter ---------------------------------------------------------------- Lantheus MI Intermediate, Inc., and subsidiaries filed with the U.S. Securities and Exchange Commission their quarterly report on Form 10-Q disclosing a net loss of $1.63 million on $75.61 million of revenues for the three months ended June 30, 2014, as compared with a net loss of $14.50 million on $70.60 million of revenues for the same period last year. For the six months ended June 30, 2014, the Companies reported a net loss of $2.92 million on $148.94 million of revenues as compared with a net loss of $34.31 million on $141.61 million of revenues for the same period during the prior year. As of June 30, 2014, the Companies had $251.57 million in total assets, $492.44 million in total liabilities and a $240.86 million total stockholders' deficit. Jeffrey Bailey, president and CEO said, "We have been undertaking a financial and operational transformation of our business over the past six quarters, and our success to date is quite evident with the financial results of our second quarter. Our 8% constant currency revenue growth, accompanied by significant gross margin expansion and operating expense reduction, combined to expand our Adjusted EBITDA by 149% from year-ago levels, and has elevated our business to a meaningfully greater level of financial performance in a relatively short period of time." Mr. Bailey continued, "We continue to be pleased by the momentum of our business. Sequentially, our second quarter 2014 revenue and Adjusted EBITDA results exceeded those of our first quarter, the result of accelerated revenue growth in combination with continued operating leverage. During the second quarter, DEFINITY revenues once again grew sequentially, the result of continued growth of the U.S. ultrasound contrast market and the execution of our dedicated sales force. Looking ahead, the dynamics of our markets, the initiatives that we are targeting and the capabilities of our team combine to create exciting opportunities for our business during the remainder of 2014 and beyond." A full-text copy of the Form 10-Q is available for free at: http://is.gd/GycNy6 About Lantheus Medical Lantheus Medical Imaging, Inc., a wholly-owned operating subsidiary of parent company, Lantheus MI Intermediate, Inc., is a global leader in developing, manufacturing, selling and distributing innovative diagnostic imaging agents. LMI provides a broad portfolio of products, which are primarily used for the diagnosis of cardiovascular diseases. LMI's key products include the echocardiography contrast agent DEFINITY(R) Vial for (Perflutren Lipid Microsphere) Injectable Suspension; TechneLite(R) (Technetium Tc99m Generator), a technetium-based generator that provides the essential medical isotope used in nuclear medicine procedures; and Xenon (Xenon Xe 133 Gas), an inhaled radiopharmaceutical imaging agent used to evaluate pulmonary function and for imaging the lungs. * * * As reported by the TCR on July 1, 2014, Moody's Investors Service upgraded the ratings of Lantheus Medical Imaging, Inc. including the Corporate Family Rating to Caa1 from Caa2, the Probability of Default Rating to Caa1-PD from Caa2-PD and the senior unsecured rating to Caa1 (LGD4) from Caa2 (LGD4). "The upgrade reflects our outlook for continuing earnings improvement driven by rising DEFINITY sales and the impact of ongoing cost reductions, while the positive outlook considers the potential for deleveraging pending a successful IPO and further resolution of supply issues," stated Michael Levesque, Senior Vice President. In the Nov. 6, 2013, edition of the TCR, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Lantheus Medical Imaging Inc. to 'B-' from 'B'. The outlook is negative. LEO MOTORS: Incurs $315,000 Net Loss in Second Quarter ------------------------------------------------------ Leo Motors, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $314,715 on $0 of revenues for the three months ended June 30, 2014, compared to a net loss of $188,240 on $0 of revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $1.58 million on $0 of revenues compared to a net loss of $369,127 on $0 of revenues for the same period last year. As of June 30, 2014, the Company had $1.15 million in total assets, $1.92 million in total liabilities and a $766,257 total deficit. "Our liquidity and capital resources are limited. Accordingly, our ability to initiate our plan of operations and continue as a going concern is currently dependent on our ability to either generate significant new revenues or raise external capital," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/CiCnEV About Leo Motors Headquartered in Hanam City, Gyeonggi-do, Republic of Korea, Leo Motors, Inc., a Nevada corporation, is currently engaged in the research and development of multiple products, prototypes and conceptualizations based on proprietary, patented and patent pending electric power generation, drive train and storage technologies. In 2011, the Company determined its investment in Leo B&T Inc. an investment account was impaired and recorded an expense of $4.5 million. During the 2012 year the Company had a net non operating income largely from the result of the forgiveness of debt for $1.3 million. Leo Motors reported a net loss of $1.24 million on $0 of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.88 million on $25,605 of revenues during the prior year. John Scrudato CPA, in Califon, New Jersey, 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 significant losses since inception of $16,871,850. This and other factors raise substantial doubt about the Company's ability to continue as a going concern. LINCOLN ROAD: Case Summary & 4 Unsecured Creditors -------------------------------------------------- Debtor: Lincoln Road, LLC 432 S. Evergreen Avenue Woodbury Heights, NJ 08097 Case No.: 14-27030 Chapter 11 Petition Date: August 18, 2014 Court: United States Bankruptcy Court District of New Jersey (Camden) Judge: Hon. Gloria M. Burns Debtor's Counsel: Maureen P. Steady, Esq. MAUREEN P. STEADY, ESQUIRE 38 N. Haddon Avenue Haddonfield, NJ 08033 Tel: (856) 428-1060 Fax: (609) 482-8011 Email: msteady@mac.com maureen.steady@gmail.com Total Assets: $869,523 Total Liabilities: $1.34 million The petition was signed by Richard Phalines, managing member. A list of the Debtor's four largest unsecured creditors is available for free at http://bankrupt.com/misc/njb14-27030.pdf LIQUIDMETAL TECHNOLOGIES: Incurs $2.5MM Net Loss in 2nd Quarter --------------------------------------------------------------- Liquidmetal Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.51 million on $153,000 of total revenue for the three months ended June 30, 2014, as compared with a net loss of $1.91 million on $150,000 of total revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $6.42 million on $313,000 of total revenue as compared with a net loss of $5.41 million on $272,000 of total revenue for the same period last year. As of June 30, 2014, the Company had $16.01 million in total assets, $8.45 million in total liabilities and $7.56 million in total stockholders' equity. "The Company anticipates that its current capital resources, when considering expected losses from operations, will be sufficient to fund the Company's operations through the end of 2015. The Company has a relatively limited history of producing bulk amorphous alloy components and products on a mass-production scale. Furthermore, the ability of future contract manufacturers to produce the Company's products in desired quantities and at commercially reasonable prices is uncertain and is dependent on a variety of factors that are outside of the Company's control, including the nature and design of the component, the customer's specifications, and required delivery timelines. These factors will likely require that the Company continue to make draw-downs under the 2013 Purchase Agreement, raise additional funds by other means, or pursue other strategic initiatives to support its operations beyond the end of 2015. There is no assurance that the Company will be able to continue to make draw-downs under the 2013 Purchase Agreement or raise additional funds by other means on acceptable terms, if at all. If the Company were to continue to make draw-downs under the 2013 Purchase Agreement or to raise additional funds through other means by issuing securities, existing stockholders may be diluted. If funding is insufficient at any time in the future, the Company may be required to alter or reduce the scope of its operations or to cease operations entirely. Uncertainty as to the outcome of these factors raises substantial doubt about the Company's ability to continue as a going concern," the Company said in the filing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/HUv4ge About Liquidmetal Technologies Based in Rancho Santa Margarita, Cal., Liquidmetal Technologies, Inc., and its subsidiaries are in the business of developing, manufacturing, and marketing products made from amorphous alloys. Liquidmetal Technologies markets and sells Liquidmetal(R) alloy industrial coatings and also manufactures, markets and sells products and components from bulk Liquidmetal alloys that can be incorporated into the finished goods of its customers across a variety of industries. The Company also partners with third- party licensees and distributors to develop and commercialize Liquidmetal alloy products. Liquidmetal reported a net loss and comprehensive loss of $14.24 million on $1.02 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss and comprehensive loss of $14.02 million on $650,000 of total revenue for the year ended Dec. 31, 2012. SingerLewak LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit. This raises substantial doubt about the Company's ability to continue as a going concern. LOMBARD FLATS: Contempt Order Against Cheuk Tin Yan Upheld ---------------------------------------------------------- Cheuk Tin Yan appeals from the memorandum opinion and order on motion for order of contempt entered August 5, 2013, and order denying Cheuk Yan's motion to amend findings, entered September 26, 2013, by the bankruptcy court in the Chapter 11 cases of Lombard Flats, LLC. District Judge Phyllis J. Hamilton affirmed the bankruptcy court's decisions pursuant to an August 13, 2014 Order available at http://is.gd/fmeroEfrom Leagle.com. As reported by the Troubled Company Reporter on Aug. 13, 2013, the reorganized debtor, Lombard Flats, moved for an order of contempt against Cheuk Tin Yan and his attorney for obtaining a $960,299 judgment against the Debtor after confirmation of a Chapter 11 plan. Martin Eng is the debtor's principal. Cheuk Yan loaned money to Eng in 2007 and 2008, evidenced by several promissory notes. From 1985 through January 2009, Eng owned the building at 949-953 Lombard Street, San Francisco. On January 26, 2009, Eng recorded a grant deed transferring the property to debtor Lombard Flats, LLC. On September 26, 2012, Cheuk Yan filed an action in San Francisco Superior Court against the debtor, Eng, Eng's relatives and their closely held companies, seeking recovery on over $1 million for loans made by Cheuk Yan to Eng in 2007 and 2008. The state court action alleged a conspiracy to defraud Cheuk Yan, as creditor, by making fraudulent transfers and encumbrances on the Lombard Street property, including a fraudulent conveyance from Eng to the debtor. Lombard Flats LLC filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 09-32219) on Aug. 3, 2009, and obtained an order confirming its plan on July 19, 2010. The court entered a final decree on May 23, 2011, and the case was closed on June 3, 2011. LOPES DOOR: First Creditors Meeting on Aug. 27 in Toronto --------------------------------------------------------- Lopes Door Systems Inc., was placed in bankruptcy protection in Toronto, Ontario, on August 7, 2014. The first meeting of creditors will be held on August 27, 2014, at 10:00 a.m. at the office of the trustee at: James Williams & Associates Inc. 2300 Yonge Street, Suite 1701 Toronto, ON M4P 1E4 MARINA BIOTECH: Delays Second Quarter Form 10-Q ----------------------------------------------- Marina Biotech, 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 stated that, "The registrant is in the process of preparing and reviewing the financial information and related disclosures of the registrant with respect to the fiscal period ended March 31, 2014 and the fiscal period ended June 30, 2014. The process of compiling and disseminating the information required to be included in the Form 10-Q for the fiscal period ended June 30, 2014, as well as the completion of the required review of the registrant's financial information and related disclosures with respect to such fiscal period, could not be completed without incurring undue hardship and expense. The registrant undertakes the responsibility to file the quarterly report with respect to the fiscal period ended June 30, 2014 no later than five days after its prescribed due date." About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. As reported by the TCR on May 21, 2014, KPMG LLP was dismissed as the principal accountants for Marina Biotech, Inc., and Wolf & Company, P.C., had been engaged as replacement. In 2013, the Company incurred a net loss of $1.57 million on $2.11 million of license and other revenue, compared to a net loss of $9.54 million on $4.21 million of license and other revenue in 2012. The Company's balance sheet at Dec. 31, 2013, showed $7.74 million in total assets, $14.80 million in total liabilities and a $7.06 million total stockholders' deficit. MASHANTUCKET WESTERN: S&P Lowers ICR to 'CCC-'; Outlook Neg. ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings, including its issuer credit rating, on Mashantucket, Conn.-based casino operator Mashantucket (Western) Pequot Tribe to 'CCC-' from 'CCC+'. The rating outlook is negative. S&P do not assign recovery ratings to Native American debt issues because there are sufficient uncertainties surrounding the exercise of creditor rights against a sovereign nation, including whether the Bankruptcy Code would apply, whether the U.S. court would ultimately be the appropriate venue to settle such a matter, and to what extent a creditor would be able to enforce any judgment against a sovereign nation. The 'CCC-' issue-level ratings on the credit facilities are the same as the Tribe's issuer credit rating, reflecting the senior position of the facilities in the capital structure. The downgrade reflects meaningful underperformance relative to S&P's previous forecast because of ongoing operating challenges, which has led to a breach of financial covenants under Mashantucket's senior credit facility. S&P believes the combination of continued operating weakness and the failure to comply with financial covenants increases the likelihood of a near-term default. Under S&P's current forecast, it believes available cash flow in the collection account may be insufficient to cover cash interest for all junior obligations in Mashantucket's capital structure after paying senior credit facility interest and amortization payments and fixed tribal distributions. Under S&P's updated forecast, it estimates a $20 million shortfall in the collection account. Failure to make full and timely payment of cash interest expense would be a default under our criteria. In addition, given the breach of covenants, senior lenders have the right to block interest payments to junior debt holders in order to preserve liquidity for themselves. Because of continued economic weakness and a high degree of competition in the Northeast gaming market, S&P believes it is increasingly likely that lenders would give notice to the administrative agent blocking junior debt service payments. In the event senior lenders block payments to junior lenders, S&P would consider this a default under its criteria because of a failure to make full and timely interest payments. "We have updated our forecast to reflect greater than previously anticipated declines in revenue and EBITDA in the Sept. quarter because of meaningfully weaker than expected operating performance due to increased competition and overall economic challenges in the Northeast market. In the nine months ended June (fiscal September year-end), net revenue was down in the high-single-digit percentage area and EBITDA declined in the mid-30% area, compared to our prior forecast for low-teens percentage decline for the full year 2014. Mashantucket continues to experience declines in visitation and average consumer spending per trip. Competitive pressures continue to impact Mashantucket, both from the expansion of gaming, specifically the implementation of table games at Twin River in 2013, and from increased marketing activity among Mashantucket and its competitors. Increased costs associated with wage increases and health care expenses, and higher utility costs also added to the EBITDA decline," S&P said. MICHELE DICOSOLA: September 2014 Trial Set in Government's Suit --------------------------------------------------------------- Michele DiCosola stands accused of committing a variety of acts to defraud others and enrich himself. The allegations are drawn exclusively from the eight-count indictment. The first set of charges relates to fraudulent applications for loans. Defendant is alleged to have served as President of a business called "CD Shape Cutters." When acting in that capacity in July 2008, he submitted an application to Amcore Bank for two business loans (in the amounts of $250,000 and $450,000). To induce the bank to approve the application, he included false personal and business tax returns from 2006 and 2007 that inflated his income. The next month, Defendant submitted a mortgage application to CitiMortgage so that he could refinance his personal home mortgage and obtain a home equity loan. He supplemented his application in September 2008 by faxing CitiMortgage the same false tax returns from 2007 and 2008 that overstated his income. These loans were approved and funded shortly thereafter. Despite his guarantee of full and punctual payment, Defendant defaulted on the loans. Counts I and II charge bank fraud in violation of 18 U.S.C. Sec. 1344 -- one count for each business loan. Count III alleges that Defendant made a false statement to a bank in violation of 18 U.S.C. Sec. 1014 in his pursuit of the business loans. Count IV charges wire fraud under 18 U.S.C. Sec. 1343 and 1342 for the fax transmission of the false 2006 and 2007 tax returns used to obtain the personal loans. Counts V and VI charge Defendant with filing false claims against the United States in violation of 18 U.S.C. Sec. 287. The indictment accuses Defendant of filing two false tax returns on September 15, 2009 -- one for himself and one on behalf of behalf of taxpayer P.W. The fraudulent returns claimed entitlement to tax refunds of approximately $5.5 million and $385,000. Although not mentioned in the indictment, the Court understands that Defendant's claim for a tax refund was based on an original issue discount ("OID") tax theory whereby a filer claims that numerous debts entitle him to a large refund from the IRS. The indictment brings two Counts for bankruptcy fraud related to Defendant's two bankruptcy cases. On June 14, 2010, Defendant filed a Chapter 11 petition wherein he misrepresented whether he had closed financial accounts within the past year and whether he had served as an officer, director, partner, or managing director of a business within the past six years. Then, on November 2, 2010, Defendant filed another Chapter 11 petition in which he made those same misrepresentations. Counts VII and VIII relate to these two false petitions. The case is scheduled for trial in September 2014. Pending before the United States District Court for the Northern District of Illinois, Eastern Division, are Motions to Sever, for Disclosure of Exculpatory and Impeaching Evidence, for Disclosure of the Signed Indictment and Grand Jury Minutes, and to Dismiss -- all filed by Defendant. Defendant argues that the charges in this case must be severed into three groups: Counts I-IV for bank fraud, Counts V-VI for tax fraud, and Counts VII-VIII for bankruptcy fraud. In a Memorandum Opinion and Order dated Aug. 14, 2014, a copy of which is available at http://is.gd/H9w5wsfrom Leagle.com, District Judge Harry D. Leinenweber granted Defendant's Motion to Sever. Defendant's Motion for Disclosure of Exculpatory and Impeaching Evidence is denied. Defendant's Motion for Disclosure of Signed Indictment and Grand Jury Minutes is granted in part. The Court said the U.S. government must submit, for in camera review, competent proof that the indictment in this case was returned by a Grand Jury whose term had not expired. Defendant's Motion to Dismiss Count Two of the Indictment is granted. The case is, UNITED STATES OF AMERICA, Plaintiff, v. MICHELE DICOSOLA, Defendant, Case No. 12 CR 446 (N.D. Ill.). Michele DiCosola is represented by: Leonard C. Goodman, Esq. Melissa Ann Matuzak, Esq. LEN GOODMAN LAW OFFICE LLC 53 W Jackson Blvd, Suite 1650 Chicago, IL 60604 Tel: (312) 986-1984 MILESTONE SCIENTIFIC: Incurs $169,000 Net Loss in 2nd Quarter ------------------------------------------------------------- Milestone Scientific Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss applicable to common stockholders of $169,457 on $2.50 million of product sales for the three months ended June 30, 2014, compared with net income applicable to common stockholders of $74,009 on $2.27 million of product sales for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income applicable to common stockholders of $25,377 on $5.12 million of product sales compared to net income applicable to common stockholders of $224,754 on $4.76 million of product sales for the same period last year. As of June 30, 2014, the Company had $17.26 million in total assets, $1.94 million in total liabilities, all current, and $15.31 million in total stockholders' equity. As of June 30, 2014, Milestone had cash and cash equivalents of $1,121,721, treasury bills of $9,498,498 and a positive working capital of $13,696,852. The working capital as of June 30, 2014, was $13,696,852 and it is the result of the increase in treasury bills in 2014 of $9.5 million as a result of a capital raises in May 2014. A full-text copy of the Form 10-Q is available for free at: http://is.gd/rLLhYX About Milestone Scientific Livingston, N.J.-based Milestone Scientific Inc. is engaged in pioneering proprietary, innovative, computer-controlled injection technologies and solutions for the medical and dental markets. Milestone Scientific reported net income of $1.46 million in 2013, as compared with a net loss of $870,306 in 2012. Baker Tilly Virchow Krause, LLP, in New York, issued "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 since inception, which raises substantial doubt about its ability to continue as a going concern. MINT LEASING: Incurs $2.8 Million Net Loss in Second Quarter ------------------------------------------------------------ The Mint Leasing, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $2.84 million on $2.34 million of total revenues for the three months ended June 30, 2014, compared to a net loss of $1.32 million on $1.20 million of total revenues for the same period a year ago. For the six months ended June 30, 2014, the Company reported a net loss of $2.92 million on $4.25 million of total revenues compared to a net loss of $1.86 million on $4.45 million of total revenues for the same period during the prior year. As of June 30, 2014, the Company had $17.86 million in total assets, $16.58 million in total liabilities and $1.28 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/a1yNJF About Mint Leasing Houston, Texas-based The Mint Leasing, Inc., is in the business of leasing automobiles and fleet vehicles throughout the United States. Mint Leasing reported net income of $3.22 million on $6.45 million of total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $238,969 on $9.97 million of total revenues in 2012. Bankruptcy Warning "We do not currently have any commitments of additional capital from third parties or from our sole officer and director or majority shareholders. We can provide no assurance that additional financing will be available on favorable terms, if at all. If we choose to raise additional capital through the sale of debt or equity securities, such sales may cause substantial dilution to our existing shareholders and/or trigger the anti- dilution protection of the Warrants. If we are not able to obtain additional funding to repay the Amended Loan and our other outstanding notes payable and debt facilities, we may be forced to abandon or curtail our business plan, which may cause any investment in the Company to become worthless. Our independent auditor has expressed substantial doubt regarding our ability to continue as a going concern. If we are unable to continue as a going concern, we may be forced to file for bankruptcy protection, may be forced to cease our filings with the Securities and Exchange Commission, and the value of our securities may decline in value or become worthless," the Company said in the 2013 Annual Report. MMRGLOBAL INC: Incurs $1.4 Million Net Loss in Second Quarter ------------------------------------------------------------- MMRGlobal, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.43 million on $55,330 of total revenues for the three months ended June 30, 2014, compared with a net loss of $1.14 million on $300,549 of total revenues for the same period last year. For the six months ended June 30, 2014, the Company incurred a net loss of $3.07 million on $540,842 of total revenues compared with a net loss of $2.65 million on $425,577 of total revenues for the same period in 2013. As of June 30, 2014, the Company had $2.31 million in total assets, $10.87 million in total liabilities, and an $8.55 million total stockholders' deficit. As of June 30, 2014, the Company had cash and cash equivalents of $168,262, compared to $10,630 as of June 30, 2013. A full-text copy of the Form 10-Q is available for free at: http://is.gd/O07S36 About MMRGlobal Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. MMRGlobal reported a net loss of $7.63 million in 2013, as compared with a net loss of $5.90 million in 2012. Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the years ended December 31, 2013 and 2012. These conditions raise substantial doubt about the Company's ability to continue as a going concern. MOMENTIVE PERFORMANCE: Plan Hearing Begins; Exclusivity Extended ---------------------------------------------------------------- The hearing to consider confirmation of the Chapter 11 exit plans for MPM Silicones, LLC, Momentive Performance Materials Holdings Inc., Momentive Performance Materials Inc., and their affiliated entities began August 18, 2014, in U.S. Bankruptcy Court in White Plains, New York. Hearings also have been scheduled for August 19, 21 and 22. The hearings commence at 10:00 a.m. prevailing Eastern Time. At the onset of the hearing on Monday, Judge Robert D. Drain, who oversees the case, signed off on an order extending the Debtors' Exclusive Filing Period by 60 days, through and including October 10, 2014; and the Debtors' Exclusive Solicitation Period also by 60 days, through and including December 9, 2014. In the run-up to the Confirmation Hearing, the Debtors a revised Joint Chapter 11 Plan. Among other things, the Revised Plan provides a non-exclusive list of certain Released Parties. That list may be supplemented with additional Released Parties in an amendment or addendum to the Plan Supplement or otherwise prior to the Effective Date. A copy of the blacklined version of the Plan is available at no extra charge at: http://bankrupt.com/misc/MPMBlacklinedPlan.pdf During the hearings, the Court will also consider various matters including the Subordinated Notes Subordination Dispute; the Motion by the First Lien Trustee and the 1.5 Lien Trustee to Lift the Automatic Stay; the Adversary Proceedings Regarding the Payment of the Applicable Premium to the Holders of First Lien Notes and 1.5 Lien Notes (Adv. Pro. No. 14-08227) (RDD) and (Adv. Pro. No. 14- 08228) (RDD); and the Adversary Complaint Against The Bank of New York Mellon Trust Company, N.A., Solely as Trustee for the MPM Escrow LLC and MPM Finance Escrow Corp. 8.875% First-Priority Senior Secured Notes due 2020. The Cramdown of First Lien Notes and 1.5 Lien Notes Under 11 U.S.C. Sec. 1129(b), will be tackled on Thurday. The remainder of agenda from Thursday's hearing will be taken up Friday. Other matters to be taken up during the hearings are: http://bankrupt.com/misc/MPMHearingAgenda.pdf BOKF, NA -- as successor First Lien Trustee to The Bank of New York Mellon Trust Company, N.A., as trustee under an indenture dated as of October 25, 2012, for the 8.875% First-Priority Senior Secured Notes due 2020 issued by Momentive Performance Materials Inc. and guaranteed by certain of the debtors -- has argued that the current Plan cannot be approved unless it is amended to expressly provide for the payment of the Applicable Premium to the First Lien Noteholders. BOKF said the present Plan contemplates disallowance of the Applicable Premium -- a sum of over two hundred million dollars -- due to the First Lien Trustee on behalf of the holders of the First Lien Notes, by virtue of the Debtors' refinancing of the First Lien Notes under the Plan and discharge of their obligations thereunder. Applicable law does not permit MPM, under the cloak of voluntary bankruptcy, to evade its contractual obligation to compensate the First Lien Noteholders for its early redemption of the First Lien Notes, and to improperly shift value to subordinated and junior creditors. An Ad Hoc Committee of Second Lien Noteholders, however, has argued that the bankruptcy cases did not trigger any obligation on the part of MPM or the Guarantors to pay the Applicable Premium to the Noteholders. The Ad Hoc Group said the Debtors' Plan should be approved. A full-text copy of BOKF's Objection is available at: http://bankrupt.com/misc/BOKFPlanobj.pdf Meanwhile, Wilmington Trust, National Association, as Indenture Trustee, will appear during the hearings to seek relief from the automatic stay to permit rescission of acceleration of the First Lien Notes and the 1.5 Lien Notes. Apollo Global Management, LLC and certain of its affiliated funds, which are supporting the Debtors' exit plan, have argued that the Trustees are seeking to lift the stay for the sole purpose of attempting to increase the value of their claims against the Debtors' estates at the expense of the Debtors' other creditors. Apollo said the Trustees' efforts to rescind acceleration of the Notes are barred by the automatic stay because the Debtors' contractual rights under the Notes are property of their estates, and issuing a rescission notice is an attempt to modify the express terms of the Indentures. A copy of Apollo's objection is available at: http://bankrupt.com/misc/ApolloObjtoWTStayReliefBid.pdf On Tuesday, the Debtors filed an Omnibus Reply to Cramdown Objections to the Plan, a copy of which is available at http://bankrupt.com/misc/MPMReplytoCramdownObj.pdf Apollo Global Management, LLC and Certain of its Affiliated Funds filed a Joinder to the Debtors' Omnibus Reply to Cramdown Objections, a copy of which is available at: http://bankrupt.com/misc/ApolloJoindertoCramdown.pdf On June 23, 2014, the Company filed with the Court an amended version of the Plan and accompanying disclosure statement, both of which were originally filed with the Court on May 12, 2014. The Plan provides, among other things, mechanisms for settlement of claims against the Debtors' estates, treatment of the Company's existing equity and debt holders, and certain corporate governance and administrative matters pertaining to the reorganized Company, each consistent with the terms set forth in a restructuring support agreement. The Plan is intended to enable the Debtors to continue business operations without the likelihood of need for further financial reorganization. Also on June 23, 2014, the Court issued an order (a) approving the Disclosure Statement; (b) establishing August 18, 2014 as the date of commencement of the hearing to approve the Plan; (c) establishing the procedures for solicitation and tabulation to accept or reject the Plan, including setting July 28, 2014 as the voting deadline; (d) establishing the deadline, July 28, 2014, and the procedures for filing objections to confirmation of the Plan; and (e) approving rights offering procedures. Pursuant to the Disclosure Statement Order, the Voting Deadline has passed. Pursuant to the Plan, only four classes of holders of claims against the Debtors were entitled to vote to accept or reject the Plan. Two classes of holders of claims (including holders of the Springing Lien Notes) voted unanimously to approve the Plan whereas two classes of holders of claims voted to reject the Plan (including holders of the First Lien Notes and Senior Secured Notes). The two classes of holders of claims that rejected the Plan will receive, pursuant to the Plan, certain replacement notes in satisfaction of their claims against the Debtors, the terms of which will be further addressed at the Confirmation Hearing. Four of the remaining classes of holders of claims against the Debtors are unimpaired by the Plan and thus deemed to have accepted the Plan. In addition, three classes of holders of claims will not receive any distributions under the Plan and are deemed to have rejected the Plan. Despite the rejection or deemed rejection of the Plan by certain classes of holders of claims, the Bankruptcy Code provides for the Plan to be approved if it meets certain requirements. The Court will make a determination at or following the Confirmation Hearing regarding whether the Plan meets all requirements for approval. While the Company believes that the Plan is fair, equitable, and meets all requirements of the Bankruptcy Code, there can be no assurance that the Company will be able to secure confirmation of the Plan from the Court. Restructuring Support Agreement In connection with the Bankruptcy Filing, the Debtors entered into a Restructuring Support Agreement, dated as of April 13, 2014, with certain affiliates of Apollo Global Management, LLC and certain holders of the Company's 9.0% Second-Priority Springing Lien Notes due 2021 and 9.5% Second-Priority Springing Lien Notes due 2021 that are not Apollo Entities. These so-called Plan Support Parties, which hold approximately 90% in dollar amount of the Second Lien Notes, agree to support, and vote in favor of the Plan. Pursuant to the terms of the Support Agreement, the Plan Support Parties were required to not only vote in favor of the Plan, but were also prohibited, from among other things, opposing confirmation of the Plan. The Debtors, in turn, agreed to propose the Plan which provides for (a) payment in full in cash to the Debtors' general unsecured trade creditors and holders of claims arising from the Company's $75 million revolving credit facility, (b) either payment in full in cash or by delivery of replacement notes to holders of 8.875% First-Priority Senior Secured Notes due 2020 and 10% Senior Secured Notes due 2020, (c) conversion of the Second Lien Notes into the new equity of the reorganized Debtors (subject to dilution by a management incentive plan and the new equity to be issued by a rights offering), (d) subscription rights to holders of Second Lien Notes in a $600 million rights offering, giving such holders the opportunity to purchase a percentage of the new equity of the reorganized Debtors at a price per share determined by using the pro forma capital structure and an enterprise value of $2.2 billion and applying a 15% discount to the equity value thereto, (e) a recovery to holders of the 11% Senior Discount Note, due June 4, 2017 of MPM Holdings in the amount of the cash available at MPM Holdings as of the effective date of the Plan, after taking into account administrative expenses, and (f) no recovery to the holders of 11-1/2% Senior Subordinated Notes due 2016 on account of the subordination provisions set forth in the indenture governing the Subordinated Notes. The Plan also provides that the reorganized Debtors will select a chief executive officer, chief financial officer and general counsel who are acceptable to the Requisite Investors and the costs for whom will not be shared with Momentive Specialty Chemicals Inc. under the Shared Services Agreement between the Company and MSC. Under the Plan, the Shared Services Agreement will be amended, subject to agreement by MSC, to provide for certain transition services in the event of a termination of the Shared Services Agreement. The Support Agreement may be terminated upon the occurrence of certain events, including: (a) certain breaches by the Debtors or Plan Support Parties under the Support Agreement; (b) the failure to meet certain milestones with respect to achieving confirmation and consummation of the Plan; (c) the amendment or modification of certain documents, including the Plan, without the consent of the Plan Support Parties; (d) the occurrence of an uncured event of default under the Debtors' DIP Facilities; and (e) the determination by the Company's board of directors, upon the advice of counsel, that fiduciary obligations require the Company to terminate the Company's obligations under the Support Agreement. On June 23, 2014, the Court found that the terms and conditions of the Support Agreement were fair, reasonable and the best available to the Debtors under the circumstances and issued an order authorizing and directing the Debtors to assume the Support Agreement. Backstop Commitment Agreement On May 9, 2014, the Company entered into the Backstop Commitment Agreement, as subsequently amended (the "BCA"), among the Company, MPM Holdings, and the commitment parties party thereto. The BCA provides that upon the satisfaction of certain terms and conditions, including the confirmation of the Plan, the Company will have the option to require each Commitment Party to purchase from the Company (on a several and not joint basis) its pro rata portion, based on such Commitment Party's backstop commitment percentage, of the common stock of the reorganized Company that is not otherwise purchased in connection with the $600 million rights offerings for New Common Stock to be made in connection with the Plan. In consideration for their commitment to purchase the Unsubscribed Shares, the Commitment Parties will receive a commitment premium equal to $30 million. The BCA Commitment Premium is payable in shares of New Common Stock; provided, that, if the BCA is terminated under certain circumstances, the BCA Commitment Premium will be payable in cash. Pursuant to the terms of the BCA, the BCA Commitment Premium was deemed earned, nonrefundable and non- avoidable upon entry of the approval order by the Court. The Company also has agreed to reimburse the Commitment Parties for all reasonable fees and expenses incurred in connection with, among other things, the negotiation, preparation and implementation of the rights offerings, the Plan and any related efforts. In addition, the BCA requires that the Company and the other Debtors shall indemnify the Commitment Parties for certain losses, claims, damages, liabilities, costs and expenses arising out of or in connection with the BCA, the Plan and the related transactions. On June 23, 2014, the Court found that the terms and conditions of the Support Agreement were fair, reasonable and the best available to the Debtors under the circumstances, and issued an order authorizing and directing the Debtors to enter into, execute, deliver and implement the BCA. Attorneys for BOKF, NA, as First Lien Trustee, are: Michael J. Sage, Esq. Brian E. Greer, Esq. Mauricio A. Espana, Esq. DECHERT LLP 1095 Avenue of the Americas New York, NY 10036-6797 Telephone: (212) 698-3500 Facsimile: (212) 698-3599 Counsel to Apollo Global Management, LLC and certain of its affiliated funds are: Ira S. Dizengoff, Esq. Philip C. Dublin, Esq. Abid Qureshi, Esq. Deborah J. Newman, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York, NY 10036 Tel: (212) 872-1000 Fax: (212) 872-1002 - and - Ashleigh L. Blaylock, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP 1333 New Hampshire Avenue, NW Washington, DC 20036 Tel: (202) 887-4000 Fax: (202) 887-4288 Attorneys for Ad Hoc Committee of Second Lien Noteholders: Dennis F. Dunne, Esq. Michael Hirschfeld, Esq. Samuel A. Khalil, Esq. MILBANK, TWEED, HADLEY & McCLOY LLP 1 Chase Manhattan Plaza New York, NY 10005-1413 Telephone: (212) 530-5000 Facsimile: (212) 530-5219 E-mail: ddunne@milbank.com skhalil@milbank.com 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. MOMENTIVE PERFORMANCE: Insurance Premium Financing Deal Okayed -------------------------------------------------------------- MPM Silicones, LLC, Momentive Performance Materials Holdings Inc., Momentive Performance Materials Inc., and their affiliated debtors won approval from the Bankruptcy Court to enter into premium finance agreements for the purpose of financing the payment of premiums with respect to several forms of insurance coverage. Specifically, the Debtors obtained authority to enter into and perform all obligations under three Commercial Insurance Premium Finance and Security Agreements with Aon Premium Finance, LLC and certain of its affiliates for the financing of premiums required under certain insurance policies, which the Debtors have renewed postpetition. While the Debtors entered into the Premium Finance Agreements with APF, APF has assigned its rights under the Premium Finance Agreements to FIRST Insurance Funding Corp. The Prepetition Policies required renewal by July 1, 2014 and the Debtors have secured renewal Policies and proposed entering into the Premium Finance Agreements to finance the Policy Premiums. The insurance companies providing the Policies have historically allowed the Debtors a short "grace" period of approximately 30 days before payment of the Policy Premiums, to permit the Debtors to arrange financing for such payment. The Premium Finance Agreements provide for: (a) A Premium Finance Agreement with Aon Risk Services Northeast Inc. (the "U.S. PFA"), which will provide $4,963,228.78 in financing to the Debtors for the payment of Policy Premiums totaling $6,733,304.93. Pursuant to the terms of the U.S. PFA, the Debtors will make a down payment on the Policy Premiums in the amount of $1,770,076.15 and will pay the remainder, including interest at the rate of 3.24%, in 10 monthly installments of $503,723.08 each, which are due on the first day of each month, commencing on August 1, 2014. (b) A Premium Finance Agreement with Aon UK Limited (the "U.K. PFA"), which will provide $437,856.63 in financing to the Debtors for the payment of the Policy Premiums totaling $596,308.84. Pursuant to the terms of the U.K. PFA, the Debtors will make a down payment on the Policy Premiums in the amount of $158,452.21 and will pay the remainder, including interest at the rate of 3.24%, in 10 monthly installments of $44,438.51 each, which are due on the first day of each month, commencing on August 1, 2014. (c) A Premium Finance Agreement with Aon (Bermuda) Ltd. (the "Bermuda PFA"), which will provide $251,925.00 in financing to the Debtors for the payment of the Policy Premiums totaling $335,900.00. Pursuant to the terms of the Bermuda PFA, the Debtors will make a down payment on the Policy Premiums in the amount of $83,975.00, and will pay the remainder, including interest at the rate of 3.24%, in 10 monthly installments of $25,568.12 each, which are due on the first day of each month, commencing on August 1, 2014. As collateral to secure the repayment of the indebtedness under the Premium Finance Agreements, the Debtors will grant APF and FIFC a security interest in, among other things, the unearned Policy Premiums. 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. MOMENTIVE PERFORMANCE: Amends Schedules of Assets and Liabilities ----------------------------------------------------------------- MPM Silicones, LLC, et al., filed with the U.S. Bankruptcy Court for the Southern District of New York amended schedules of assets and liabilities in mid-July 2014. The Amended Schedules include (i) Schedule E-2 (administrative expense claims), which serves as a new exhibit to Schedule E for Debtor MPM Silicones LLC, and (ii) an amended Schedule F-2 (trade payables) for Debtor MPM Silicones LLC. Moreover, the Amended Schedules are intended to reflect the creditors holding unsecured priority and non-priority claims against MPM Silicones LLC as of July 15, 2014. Accordingly, the Amended Schedules reflect these items: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $98,349,883 B. Personal Property $451,408,077 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $2,805,644,350 E. Creditors Holding Unsecured Priority Claims $5,009,593 F. Creditors Holding Unsecured Non-priority Claims $709,721,046 ----------- ----------- TOTAL $549,757,960 $3,520,374,989 The original Schedules filed last June 4, 2014, disclose $549,757,960 in total assets and $3,518,234,293 in total liabilities. A copy of the Amended Schedules of Assets and Liabilities dated July 15, 2014, is available for free at: http://bankrupt.com/misc/MPMSILICONES_AmdSALjul15.pdf 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. MOMENTIVE PERFORMANCE: Net Loss Widens to $106MM at 2014 Q2 ----------------------------------------------------------- Momentive Performance Materials Inc. delivered to the Securities and Exchange Commission its quarterly report on Form 10-Q for the three- and six- months ended June 30, 2014. Momentive posted net sales of $637 million for the three months ended June 30, 2014, up from $610 million for the same period in 2013. It posted net sales of $1,242 million for the six months ended June 30, 2014, up from $1,180 million for the same six-month period in 2013. Momentive posted a net loss of $106 million for the three months ended June 30, 2014, wider than the $70 million for the same period in 2013. It had a net loss of $162 million for the six months ended June 30, 2014, also wider than the $131 million during the same period in 2013. Momentive had total assets of $2,771 million against total liabilities of $4,429 million at June 30, 2014. A copy of the Form 10-Q report is available at http://is.gd/vtPld1 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. MONARCH COMMUNITY: Posts $46,000 Net Income in 2nd Qtr 2014 ----------------------------------------------------------- Monarch Community Bancorp, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $46,000 on $1.87 million of total interest income for the three months ended June 30, 2014, compared to a net loss of $824,000 on $1.83 million of total interest income for the same period during the prior year. For the six months ended June 30, 2014, the Company reported net income of $64,000 on $3.74 million of total interest income compared to a net loss of $1.15 million on $3.78 million of total interest income for the same period a year ago. As of June 30, 2014, the Company had $188.80 million in total assets, $168.85 million in total liabilities and $19.95 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/E8IpqM About Monarch Community Coldwater, Michigan-based Monarch Community Bancorp, Inc., was incorporated in March 2002 under Maryland law to hold all of the common stock of Monarch Community Bank, formerly known as Branch County Federal Savings and Loan Association. The Bank converted to a stock savings institution effective Aug. 29, 2002. In connection with the conversion, the Company sold 2,314,375 shares of its common stock in a subscription offering. Monarch Community reported a net loss available to common stockholders of $2.55 million in 2013, a net loss available to common stockholders of $741,000 in 2012 and a net loss of $353,000 in 2011. MORRISON INFORMATICS: Shareholder Suit Over Embezzlement Revived ---------------------------------------------------------------- Law360 reported that a Pennsylvania appeals court revived a lawsuit brought by shareholders of Morrison Informatics Inc. alleging two former employees stole money to gamble and sent the health care consulting firm into bankruptcy as well as accusing their bank of breach of contract, saying the shareholders can amend the complaint to name the bankruptcy trustee as plaintiff. According to the report, the Superior Court of Pennsylvania ruled that the trial court wrongly refused to let shareholders Anthony M. Grigonis and Malcolm H. Morrison amend their complaint. N-VIRO INTERNATIONAL: Delays Second Quarter Form 10-Q Report ------------------------------------------------------------ N-Viro International Corporation 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 it was unable to complete the preparation of the financial statement within the required time period without unreasonable effort or expense due to delays in gathering and the review of financial information needed to complete the preparation and inclusion of the required financial statement. About N-Viro International Toledo, Ohio-based N-Viro International Corporation owns and sometimes licenses various N-Viro processes and patented technologies to treat and recycle wastewater and other bio-organic wastes, utilizing certain alkaline and mineral by-products produced by the cement, lime, electrical generation and other industries. N-Viro International reported a net loss of $1.64 million on $3.37 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.63 million on $3.58 million of revenues during the prior year. As of March 31, 2014, the Company had $1.47 million in total assets, $2.37 million in total liabilities and a $896,224 total stockholders' deficit. UHY LLP, in Farmington Hills, 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, negative cash flow from operations and net working capital deficiency raise substantial doubt about its ability to continue as a going concern. NEPHROS INC: Incurs $654,000 Net Loss in Second Quarter ------------------------------------------------------- Nephros, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $654,000 on $441,000 of total net revenues for the three months ended June 30, 2014, compared with a net loss of $671,000 on $575,000 of total net revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $1.41 million on $915,000 of total net revenues compared with a net loss of $1.91 million on $1.09 million of total net revenues for the same period during the prior year. As of June 30, 2014, the Company had $2.35 million in total assets, $2.13 million in total liabilities and $216,000 in total stockholders' equity. At June 30, 2014, the Company had an accumulated deficit of approximately $102,642,000 and the Company expects to incur additional losses in the foreseeable future at least until such time, if ever, that the Company is able to increase product sales or license revenue. A full-text copy of the Form 10-Q is available for free at: http://is.gd/R5nGMb About Nephros River Edge, N.J.-based Nephros, Inc., is a commercial stage medical device company that develops and sells high performance liquid purification filters. Its filters, which it calls ultrafilters, are primarily used in dialysis centers and healthcare facilities for the production of ultrapure water and bicarbonate. Nephros, Inc., reported a net loss of $3.69 million in 2013 following a net loss of $3.26 million in 2012. Rothstein Kass, in Roseland, New Jersey, 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 negative cash flow from operations and net losses since inception. These conditions, among others, raise substantial doubt about its ability to continue as a going concern. NET ELEMENT: Posts $1.3 Million Net Income in Second Quarter ------------------------------------------------------------ Net Element, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $1.34 million on $4.91 million of net revenues for the three months ended June 30, 2014, compared to a net loss of $20.23 million on $5.60 million of net revenues for the same period a year ago. For the six months ended June 30, 2014, the Company reported a net loss of $2.24 million on $9.75 million of net revenues compared to a net loss of $23.46 million on $6.47 million of net revenues for the same period during the prior year. The Company's balance sheet at June 30, 2014, showed $16.57 million in total assets, $22.79 million in total liabilities and a $6.21 million total stockholders' deficit. The Company's cash balance at June 30, 2014, was approximately $1.3 million, compared with a cash balance of approximately $0.1 million at December 31, 2013. The $1.2 million increase in the Company's cash balance generally is attributable to positive operating cash flow activities, favorable impact on foreign currency translation from the functional currency of the Company's Russia operations to its reporting currency offset by cash used in investing and financing activities. "We believe that our existing cash balance in connection with available funding sources will be sufficient to fund our planned operations through the remainder of 2014," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/G9chd2 About Net Element Miami, Fla.-based Net Element, Inc. (formerly Net Element International, Inc.) is a financial technology-driven group specializing in mobile payments and other transactional services in emerging countries and in the United States. The Company operates in a single operating segment, that being a provider of transactional services and mobile payment solutions. The Company's operating segment is based on geographic location. Geographic areas in which the Company operates include the United States, where through its U.S. based subsidiaries it generates revenues from transactional services and other payment technologies for small and medium-sized businesses. Through TOT Group Russia and Net Element Russia, the Company operates the Company's international segment focused on transactional services, mobile payments transactions and other payment technologies in emerging countries including Russian Federation and the Commonwealth of Independent States ("CIS"). Net Element reported a net loss of $48.31 million in 2013, as compared with a net loss of $16.38 million in 2012. BDO USA, LLP, in Miami, Florida, 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 used substantial amounts of cash to fund its operating activities that raise substantial doubt about its ability to continue as a going concern. NEW LIFE: Gets Conditional Confirmation of Plan ----------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports New Life International, a Nashville, Tennessee-based charitable organization, received tentative approval of its Chapter 11 liquidating plan, subject to further review by the state attorney general. According to the report, the bankruptcy judge in Nashville gave the Tennessee attorney general until Aug. 26 if he chooses to pursue a renewed objection to the confirmation of the plan so that a hearing can be held on Sept. 2. If the attorney general doesn't file a renewed objection by the deadline, New Life can give the judge an order to sign that "unconditionally" confirms the plan, the report related. About New Life New Life International, a religious corporation originally incorporated under the name "World Bible Society", sought Chapter 11 bankruptcy protection (Bankr. M.D. Tenn. Case No. 13-bk-10974) in Nashville, Tennessee, on Dec. 31, 2013. The Debtor disclosed $44,651,301 in assets and $46,362,805 in liabilities as of the Chapter 11 filing. NLI's sources of revenue include donations of goods, money and other property, investment earnings, sale of Christian-themed merchandise and earnings from other real estate and operating entities. Other names used by the Debtor are the National Community Foundation, The New Life Group, and Band Angels. The Debtor has tapped Gullett Sanford Robinson & Martin, PLLC as attorneys and Kraft CPAs Turnaround & Restructuring Group, PLLC, as financial consultant. The U.S. Trustee for Region 8 appointed an official committee of unsecured creditors consisting of Robert T. Abbotts, Dorothy F. Mack, James D. Rice, Richard M. Taylor, and Sharon L. Upton-Rice. Bradley, Arant, Boult, Cumming LLP serves as counsel to the Committee. NEXT 1 INTERACTIVE: Amends Certificates of Designations ------------------------------------------------------- Next 1 Interactive, Inc., filed (i) an Amendment to its Series C Certificate of Designation with the Secretary of State of the State of Nevada to change the conversion price from $5.00 to a new conversion price of $.25; and (ii) an Amendment to its Series D Certificate of Designation with the Secretary of State of the State of Nevada to change the conversion price from $5.00 to a new conversion price of $.25. About Next 1 Interactive Weston, Fla.-based Next 1 Interactive, Inc., is the parent company of RRTV Network (formerly Resort & Residence TV), Next Trip -- its travel division, and Next One Realty -- its real estate division. The Company is positioning itself to emerge as a multi revenue stream "Next Generation" media-company, representing the convergence of TV, mobile devices and the Internet by providing multiple platform dynamics for interactivity on TV, Video On Demand (VOD) and web solutions. The Company has worked with multiple distributors beta testing its platforms as part of its roll out of TV programming and VOD Networks. The list of multi- system operators the Company has worked with includes Comcast, Cox, Time Warner and Direct TV. At present the Company operates the Home Tour Network through its minority owned/joint venture real estate partner -- RealBiz Media. As of July 17, 2012, the Home Tour Network features over 4,300 home listings in four cities on the Cox Communications network. The Company incurred a net loss of $18.29 million on $1.56 million of total revenues for the year ended Feb. 28, 2014, as compared with a net loss of $4.23 million on $987,115 of total revenues for the year ended Feb. 28, 2013. The Company's balance sheet at May 31, 2014, showed $4.53 million in total assets, $13.01 million in total liabilities and a $8.47 million total stockholders' deficit. D'Arelli Pruzansky, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Feb. 28, 2014. The independent auditors noted that the Company has incurred net losses of $18,295,802 and net cash used in operations of $4,590,428 for the year ended Feb. 28, 2014, and the Company had an accumulated deficit of $87,625,076 and a working capital deficit of $13,549,796 at Feb. 28, 2014. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "If we continue to experience liquidity issues and are unable to generate revenue, we may be unable to repay our outstanding debt when due and may be forced to seek protection under the federal bankruptcy laws," the Company said in the fiscal 2013 Annual Report. NII HOLDINGS: Reports $968 Million of Revenue in Second Quarter --------------------------------------------------------------- NII Holdings reported a net loss of $623.3 million on $968.8 million of operating revenues for the three months ended June 30, 2014, as compared with a net loss of $396.4 million on $1.25 billion of operating revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $999.4 million on $1.93 billion of operating revenues as compared with a net loss of $603.9 million on $2.59 billion of operating revenues for the same period during the prior year. As of June 30, 2014, the Company had $7.43 billion in total assets, $8.02 billion in total liabilities and a $583.5 million total stockholders' deficit. "Despite the actions we've taken to improve our operational performance, we have fallen short in our efforts, leaving the Company with a liquidity position that is not sufficient to support the business," said Steve Shindler, NII Holdings' chief executive officer. "Our subscriber base in Brazil continued to grow during the second quarter overcoming a market slowdown during the World Cup and higher iDEN churn. While our subscriber losses in Mexico were lower than last quarter, we are still short of where we need to be in that market. We will continue to take actions to improve our results in Mexico including the optimization of our distribution channels and the staging of our 3G services to more effectively attract new customers. We are excited that Salvador Alvarez has joined our team as President of Nextel Mexico as we work to return to subscriber growth. However, with our current liquidity position and the cash demands on our business, these ongoing initiatives will not be sufficient to allow the Company to continue to operate unless we are able to restructure our debt obligations, find a strategic solution or some combination of those approaches. As a result, we will need to make some key decisions in the short term to address our liquidity situation in an effort to secure the best possible path forward for our stakeholders." A full-text copy of the press release is available for free at: http://is.gd/4frQx3 About NII Holdings NII Holdings, Inc., a publicly held company based in Reston, Va., is a provider of differentiated mobile communication services for businesses and high value consumers in Latin America. NII Holdings, operating under the Nextel brand in Brazil, Mexico, Argentina and Chile, offers fully integrated wireless communications tools with digital cellular voice services, data services, wireless Internet access and Nextel Direct Connect(R) and International Direct ConnectSM, a digital two-way radio. NII Holdings is a Fortune 500 and Barron's 500 company, and has also been named one of the best places to work among multinationals in Latin America by the Great Place to Work(R) Institute. The Company trades on the NASDAQ market under the symbol NIHD. Visit the Company's Web site at www.nii.com. * * * 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. Bankruptcy Warning "We believe we are currently in compliance with the indentures governing our senior notes. However, a holder of more than 25% of our 8.875% senior notes, issued by NII Capital Corp. and due December 15, 2019, has provided a notice of default in connection with these notes. We believe that the allegations contained in the notice are without merit," the Company said in the Report. "Currently we have not entered into any agreements relating to any potential strategic transactions or any potential restructuring of our obligations. There can be no assurance that these efforts will result in any such agreement. If an agreement is reached and we decide to pursue a restructuring either on a standalone basis or in conjunction with one or more other potential actions, we expect that it will be necessary for us to file a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in order to implement it through the confirmation and consummation of a plan of reorganization approved by the bankruptcy court in the bankruptcy proceedings. We may also conclude that it is necessary to initiate Chapter 11 proceedings to implement a restructuring of our obligations even if we are unable to reach an agreement with our creditors and other relevant parties regarding the terms of such a restructuring. In either case, such a proceeding could be commenced in the very near future," the Company said in the quarterly report for the period ended June 30, 2014. NTELOS HOLDINGS: S&P Raises Corp. Credit Rating to 'B+' ------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Waynesboro, Va.-based wireless provider NTELOS Holdings Corp. to 'B+' from 'B'. The outlook is stable. At the same time, S&P raised the rating on NTELOS's senior secured debt to 'B+' from 'B'. The recovery rating remains '4' and reflects S&P's expectation for average (30%-50%) recovery for lenders in the event of payment default. S&P removed all ratings on NTELOS from CreditWatch, where it had placed them with positive implications on May 28, 2014 following the announcement that the company had extended its wholesale agreement whereby it will remain as Sprint Corp.'s exclusive network provider in NTELOS's West Virginia and western Virginia footprint though 2022. "The ratings upgrade reflects our view that the wholesale extension will provide some visibility into future revenue and cash flow, notwithstanding our expectation for lower EBITDA in 2014 and 2015 as well as higher capital expenditures to support the company's LTE network build," said Standard & Poor's credit analyst Allyn Arden. As a result of this increased visibility, S&P is revising its business risk assessment upward by one category, to "weak" from "vulnerable." Moreover, S&P expects leverage to be in the high-4x area over the next couple of years, which supports the 'B+' rating, although it is at the high end for that rating category. Under the revised agreement, management expects that revenue from the Sprint wholesale agreement will decline around 4%-6% compared with the prior agreement and that total EBITDA could be as much as 15% lower in 2014. NTELOS will also spend around $150 million to $175 million in capital expenditures to complete the required LTE network buildout by mid-2017 but will eliminate its $36 million annual dividend, which modestly reduces the impact of the cash outflow for the LTE build. The outlook is stable. The fixed-fee element from NTELOS's contract with Sprint provides a measure of revenue and EBITDA visibility. Still, S&P expects the company will face ongoing competitive pressures from other wireless carriers resulting in some retail subscriber losses. S&P could lower the rating if there is material erosion in the retail wireless customer base with no offsetting growth in ARPU. For example, a reduction in sales of wholesale minutes to Sprint that leads to wholesale revenues approaching the minimum guarantee level, along with competitive pressure, could result in leverage rising above 5x on a sustained basis. S&P believes such a scenario could cause the consolidated EBITDA margin to decline to below 24% on a sustained basis, which along with elevated leverage, would likely result in a lower rating. Prospects for an upgrade over the next 12 months are limited given constraints on S&P's business risk assessment due to the company's limited scale. For consideration of an upgrade, NTELOS would need to reduce leverage to below 4x on a sustained basis, which will be challenging given the retail segment's dependence on a single, small, and highly competitive wireless market. OSAGE EXPLORATION: Had $4MM Q2 Loss, Warns of Possible Bankruptcy ----------------------------------------------------------------- Osage Exploration and Development, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $4.39 million on $2.47 million of total operating revenues for the three months ended June 30, 2014, compared to net income of $30,702 on $1.31 million of total operating revenues for the same period in 2013. For the six months ended June 30, 2014, the Company incurred a net loss of $5.33 million on $5.11 million of total operating revenues compared to a net loss of $42,723 on $2.52 million of total operating revenues for the same period during the previous year. As of June 30, 2014, the Company had $49.57 million in total assets, $32.97 million in total liabilities and $16.60 million in total stockholders' equity. "The Company's operating plans require additional funds which may take the form of debt or equity financings. The Company's ability to continue as a going concern is in substantial doubt and is dependent upon achieving profitable operations and obtaining additional financing. There is no assurance additional funds will be available on acceptable terms or at all. In the event we are unable to continue as a going concern, we may elect or be required to seek protection from our creditors by filing a voluntary petition in bankruptcy or may be subject to an involuntary petition in bankruptcy," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/HrWTDg About Osage Exploration Based in San Diego, California with production offices in Oklahoma City, Oklahoma, and executive offices in Bogota, Colombia, Osage Exploration and Development, Inc. (OTC BB: OEDV) -- http://www.osageexploration.com/-- is an independent exploration and production company with interests in oil and gas wells and prospects in the US and Colombia. Osage Exploration reported net income of $3.85 million on $8.02 million of total operating revenues for the year ended Dec. 31, 2013, as compared with a net loss of $516,706 on $2.26 million of total operating revenues for the year ended Dec. 31, 2012. Mayer Hoffman McCann P.C., in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred recurring losses from operations and, as of December 31, 2013, has current liabilities significantly in excess of current assets. These conditions, among other things, raise substantial doubt about its ability to continue as a going concern. OXYSURE SYSTEMS: Incurs $320,000 Net Loss in Second Quarter ----------------------------------------------------------- Oxysure Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $319,508 on $678,111 of net revenues for the three months ended June 30, 2014, compared to a net loss of $231,937 on $476,071 of net revenues for the same period in 2013. Net loss for the six months ended June 30, 2014, was $695,828 compared to a net loss of $474,090 for the same period last year. For the six months ended June 30, 2014, the Company had net revenues of $1.03 million compared to net revenues of $716,491 for the same period a year ago. As of June 30, 2014, the Company had $2.02 million in total assets, $1.15 million in total liabilities and $867,239 in total stockholders' equity. "We completed product development of our launch product, the OxySure Model 615 and launched sales thereof in 2008. We have and will continue to use significant capital to manufacture and commercialize our products. These factors raise doubt about our ability to continue as a going concern. In this regard, management is proposing to raise any necessary additional funds not provided by operations through loans or through additional sales of our common stock," the Company said in the Form 10-Q Report. A full-text copy of the Quarterly Report is available at: http://is.gd/9nuHVD About OxySure Systems Frisco, Tex.-based OxySure Systems, Inc. (OTC QB: OXYS) is a medical technology company that focuses on the design, manufacture and distribution of specialty respiratory and emergency medical solutions. The company pioneered a safe and easy to use solution to produce medically pure (USP) oxygen from inert powders. The Company owns nine (9) issued patents and patents pending on this technology which makes the provision of emergency oxygen safer, more accessible and easier to use than traditional oxygen provision systems. The Company incurred a net loss of $712,452 in 2013 as compared with a net loss of $1.14 million in 2012. Sadler, Gibb & Associates, LLC, in Salt Lake, UT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company had accumulated losses of $15,287,647 as of Dec. 31, 2013, which raises substantial doubt about its ability to continue as a going concern. PACIFIC GOLD: Delays Second Quarter Form 10-Q --------------------------------------------- Pacific Gold Corp. is seeking an extension of time to file its quarterly report on Form 10-Q for the period ended June 30, 2014. In a regulatory filing with the U.S. Securities and Exchange Commission, the Company stated that the compilation, verification and review by management of the information and disclosure required to be presented in the Form 10-Q requires additional time which renders the timely filing of the Form 10-Q impracticable without undue hardship and expense to the Company. About Pacific Gold Las Vegas, Nev.-based Pacific Gold Corp. is engaged in the identification, acquisition, and development of prospects believed to have gold mineralization. Pacific Gold through its subsidiaries currently owns claims, property and leases in Nevada and Colorado. Pacific Gold reported a net loss of $463,422 in 2013 following a net loss of $16.62 million in 2012. The Company's balance sheet at March 31, 2014, showed $1.68 million in total assets, $4 million in total liabilities and a $2.32 million total stockholders' deficit. Silberstein Ungar, PLLC, 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 losses from operations, has negative working capital, and is in need of additional capital to grow its operations so that it can become profitable. These factors raise substantial doubt about the Company's ability to continue as a going concern. PARSLEY ENERGY: S&P Raises CCR to 'B'; Outlook Stable ----------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Austin, Texas-based oil and gas E&P company Parsley Energy LLC. to 'B' from 'B-'. The outlook is stable. S&P also raised the rating on the company's senior unsecured notes to 'CCC+' from 'CCC'. The recovery rating on the notes is '6', reflecting S&P's expectation for negligible (0% to 10%) recovery in the event of a payment default. "The rating action reflects our view of the improvement in Parsley's financial risk profile, supported by its successful IPO that raised almost $870 million in cash," said Standard & Poor's credit analyst Vishal Merani. "The cash generated by the IPO provides Parsley the means to fund its aggressive capital spending plans without compromising financial leverage levels," said Mr. Merani. The ratings on Parsley reflect S&P's assessment of the company's "weak" business risk, "aggressive" financial risk, and "adequate" liquidity. These assessments reflect Parsley's small reserve base and production levels, limited geographic diversity, aggressive capital spending plans that exceed S&P's projected funds from operations during the next two years, sizable proportion of undeveloped reserves, and limited executive management track record. These risks are somewhat offset by the relatively low finding and development risk for reserves in the Permian Basin, the company's significant exposure to favorable crude oil prices and thus above-average profitability, meaningful hedging position for 2014 and 2015, significant cash balances to support growth spending, and high operatorship of its properties. The stable outlook reflects S&P's expectation that Parsley's cash balances, operating cash flow, and availability under its RBL facility will be sufficient to fund planned capital spending and increase its production and reserves through 2015. S&P could lower the rating if Parsley's growth strategy does not proceed as it expects, with production below or costs above S&P's expectations, such that run rate FFO to debt falls below 20% or debt to EBITDA exceeds 4x. In addition, S&P could lower the ratings if it assess that the company will be unable to maintain adequate liquidity. S&P could raise the rating if Parsley is able to increase its reserves and production to a level commensurate with 'B+' rated E&P companies, which typically have production in excess of 25,000 barrels of oil equivalent per day and reserves in excess of 150 million barrels of oil equivalent. S&P would also look for the company's leverage to be maintained below 4x levels and liquidity to be adequate or better in considering an upgrade. PLUG POWER: Swings to $3.8MM Net Income in 2nd Qtr 2014 ------------------------------------------------------- Plug Power Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income attributable to common shareholders of $3.82 million on $17.32 million of total revenue for the three months ended June 30, 2014, compared to a net loss attributable to common stockholders of $9.33 million on $7.49 million of total revenue for the same period a year ago. For the six months ended June 30, 2014, the Company reported a net loss attributable to common shareholders of $72.08 million on $22.89 million of total revenue compared to a net loss attributable to common shareholders of $17.91 million on $13.94 million of total revenue for the same period during the prior year. "Activity in the second quarter has demonstrated the value proposition of the GenKey hydrogen and fuel cell solution at customer sites, namely Walmart," said Andy Marsh, CEO at Plug Power Inc. "Success has resulted in positive gross margins for GenDrive, customer confidence in our ability to deliver on our GenKey services, and driven our ability to expand into new markets." The Company's balance sheet at June 30, 2014, showed $221.10 million in total assets, $47.85 million in total liabilities, $2.37 million in series C redeemable convertible preferred stock, and $170.88 million in total stockholders' equity. On June 30, 2014, the Company had cash and cash equivalents of $168.6 million and net working capital of $190.4 million. "Our cash requirements relate primarily to working capital needed to operate and grow our business, including funding operating expenses, growth in inventory to support both shipments of new units and servicing the installed base, funding the growth in our GenKey "turn-key" solution which also includes the installation of our customer's hydrogen infrastructure as well as delivery of the hydrogen molecule, and continued development and expansion of our products. Our ability to achieve profitability and meet future liquidity needs and capital requirements will depend upon numerous factors, including the timing and quantity of product orders and shipments; the timing and amount of our operating expenses; the timing and costs of working capital needs; the timing and costs of building a sales base; the timing and costs of developing marketing and distribution channels; the timing and costs of product service requirements; the timing and costs of hiring and training product staff; the extent to which our products gain market acceptance; the timing and costs of product development and introductions; the extent of our ongoing and any new research and development programs; and changes in our strategy or our planned activities. If we are unable to fund our operations, we may be required to delay, reduce and/or cease our operations and/or seek bankruptcy protection," the Company said in the Form 10-Q Report. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/Kk0ije About Plug Power Plug Power Inc. is a provider of alternative energy technology focused on the design, development, commercialization and manufacture of fuel cell systems for the industrial off-road (forklift or material handling) market. Plug Power reported a net loss attributable to common shareholders of $62.79 million on $26.60 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss attributable to common shareholders of $31.86 million on $26.10 million of total revenue during the prior year. POSITIVEID CORP: Incurs $1.2 Million Net Loss in Second Quarter --------------------------------------------------------------- PositiveID Corporation 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 $1.17 million on $420,000 of revenue for the three months ended June 30, 2014, compared to a net loss attributable to common stockholders of $2.45 million on $0 of revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss attributable to common stockholders of $3.90 million on $420,000 of revenue compared to a net loss attributable to common stockholders of $7.77 million on $0 of revenue for the same period during the prior year. As of June 30, 2014, the Company had $1.19 million in total assets, $6.98 million in total liabilities, all current, $1.21 million in mandatorily redeemable preferred stock, and a $6.99 million total stockholders' deficit. As of June 30, 2014, cash and cash equivalents totalled $183,000 compared to cash and cash equivalents of $165,000 at Dec. 31, 2013. "We have incurred operating losses since our inception. The current operating losses are the result of research and development expenditures, selling, general and administrative expenses related to our projects and products. We expect our operating losses to continue through at least the next twelve months. These conditions raise substantial doubt about our ability to continue as a going concern," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/DMAaQp About PositiveID Delray Beach, Fla.-based PositiveID Corporation has historically developed, marketed and sold RFID systems used for the identification of people in the healthcare market. Beginning in early 2011, the Company has focused its strategy on the growth of its HealthID business, including the continued development of its GlucoChip, its Easy Check breath glucose detection device, its iglucose wireless communication system, and potential strategic acquisition opportunities of businesses that are complementary to its HealthID business. PositiveID reported a net loss attributable to common stockholders of $13.33 million on $0 of revenue for the year ended Dec. 31, 2013, as compared with a net loss attributable to common stockholders of $25.30 million on $0 of revenue in 2012. EisnerAmper LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has a working capital deficiency and an accumulated deficit. Additionally, the Company has incurred operating losses since its inception and expects operating losses to continue during 2014. These conditions raise substantial doubt about its ability to continue as a going concern. POSITIVEID CORP: Asher Enterprises No Longer a Shareholder ---------------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, Asher Enterprises, Inc., disclosed that as of Aug. 13, 2014, it had ceased to beneficially own any shares of common stock of PositiveID Corporation. Asher Enterprises held 2,403,113 common shares or 9.99% equity stake at Nov. 8, 2013. A copy of the regulatory filing is available at: http://is.gd/uQSorA About PositiveID Delray Beach, Fla.-based PositiveID Corporation has historically developed, marketed and sold RFID systems used for the identification of people in the healthcare market. Beginning in early 2011, the Company has focused its strategy on the growth of its HealthID business, including the continued development of its GlucoChip, its Easy Check breath glucose detection device, its iglucose wireless communication system, and potential strategic acquisition opportunities of businesses that are complementary to its HealthID business. PositiveID reported a net loss attributable to common stockholders of $13.33 million on $0 of revenue for the year ended Dec. 31, 2013, as compared with a net loss attributable to common stockholders of $25.30 million on $0 of revenue in 2012. As of June 30, 2014, the Company had $1.19 million in total assets, $6.98 million in total liabilities, all current, $1.21 million in mandatorily redeemable preferred stock and a $6.99 million total stockholders' deficit. EisnerAmper LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has a working capital deficiency and an accumulated deficit. Additionally, the Company has incurred operating losses since its inception and expects operating losses to continue during 2014. These conditions raise substantial doubt about its ability to continue as a going concern. POSITRON CORP: Incurs $201,000 Net Loss in Second Quarter --------------------------------------------------------- Positron Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss and comprehensive loss of $201,000 on $355,000 of sales for the three months ended June 30, 2014, compared to a net loss and comprehensive loss of $1.08 million on $432,000 of sales for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss and comprehensive loss of $1.06 million on $811,000 of sales compared to a net loss and comprehensive loss of $2.28 million on $803,000 of sales for the same period a year ago. As of June 30, 2014, the Company had $2.33 million in total assets, $6.68 million in total liabilities and a $4.34 million total stockholders' deficit. Cash and cash equivalents at June 30, 2014, were $374,000 compared to $1,744,000 at Dec. 31, 2013. Accounts receivable was $214,000 at June 30, 2014, compared to $247,000 at Dec. 31, 2013. A full-text copy of the Form 10-Q is available for free at: http://is.gd/v143OW About Positron Corporation Headquartered in Fishers, Indiana, Positron Corporation is a molecular imaging company focused on nuclear cardiology. Positron reported a net loss of $7.10 million on $1.63 million of sales for the year ended Dec. 31, 2013, as compared with a net loss of $7.95 million on $2.80 million of sales during the prior year. Sassetti LLC, in Oak Park, Illinois, 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 a significant accumulated deficit which raises substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning The Company had cash and cash equivalents of approximately $1,744,000 at December 31, 2013. The Company utilized $2,520,000 proceeds from issuance of convertible debt and securities, and $2,285,000 proceeds from non-interest bearing advances to fund operating activities during the year ended December 31, 2013. The Company had accounts payable and accrued liabilities of approximately $1,401,000 and a negative working capital of approximately $12,084,000. The Company believes that it may continue to experience operating losses and accumulate deficits in the foreseeable future. "If we are unable to obtain financing to meet our cash needs we may have to severely limit or cease our business activities or may seek protection from our creditors under the bankruptcy laws," the Company said in the 2013 Annual Report. PRESIDENTIAL REALTY: Posts $70,000 Net Income in Second Quarter --------------------------------------------------------------- Presidential Realty Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $70,396 on $220,730 of total revenues for the three months ended June 30, 2014, compared to a net loss of $654,336 on $215,802 of total revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $194,506 on $440,387 of total revenues compared to a net loss of $1.19 million on $429,907 of total revenues for the same period last year. As of June 30, 2014, the Company had $1.36 million in total assets, $1.84 million in total liabilities and a $476,828 total deficit. At June 30, 2014, we had $589,780 in available cash, an increase of $112,703 from $477,077 available at December 31, 2013. This increase in cash and cash equivalents was due to cash provided in operating activities of $127,357 offset by $2,451 used in investing activities and $12,203 of principal payments made on the Mapletree Industrial Center mortgage. A full-text copy of the Form 10-Q is available for free at: http://is.gd/xNBEUU About Presidential Realty Headquartered in White Plains, New York, Presidential Realty Corporation, a real estate investment trust, is engaged principally in the ownership of income-producing real estate and in the holding of notes and mortgages secured by real estate or interests in real estate. On Jan. 20, 2011, Presidential stockholders approved a plan of liquidation, which provides for the sale of all of the Company's assets over time and the distribution of the net proceeds of sale to the stockholders after satisfaction of the Company's liabilities. Presidential Realty reported net income of $2.47 million on $846,878 of total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $2.33 million on $779,547 of total revenues in 2012. Baker Tilly Virchow Krause, LLP, in Melville, New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has a working capital deficiency. These factors raise substantial doubt about its ability to continue as a going concern. PRESSURE BIOSCIENCES: Incurs $721,000 Net Loss in 2nd Quarter ------------------------------------------------------------- Pressure Biosciences, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss applicable to common shareholders of $720,789 on $307,464 of total revenue for the three months ended June 30, 2014, compared with a net loss applicable to common shareholders of $1.17 million on $357,735 of total revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss applicable to common shareholders of $3.80 million on $711,611 of total revenue compared to a net loss applicable to common shareholders of $2.56 million on $728,474 of total revenue for the same period last year. As of June 30, 2014, the Company had $1.48 million in total assets, $2.75 million in total liabilities, and a $1.27 million total stockholders' deficit. "We have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of June 30, 2014, we did not have adequate working capital resources to satisfy our current liabilities and as a result, there is substantial doubt regarding our ability to continue as a going concern," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/nGine0 About Pressure Biosciences Pressure BioSciences, Inc., headquartered in South Easton, Massachusetts, holds 14 United States and 10 foreign patents covering multiple applications of pressure cycling technology in the life sciences field. Pressure Biosciences reported a net loss applicable to common shareholders of $5.24 million on $1.50 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss applicable to common stockholders of $4.40 million on $1.23 million of total revenue in 2012. Marcum LLP, in Boston, Massachusetts, 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 had recurring net losses and continues to experience negative cash flows from operations. The auditors said these conditions raise substantial doubt about its ability to continue as a going concern. PURADYN FILTER: Incurs $251,500 Net Loss in Second Quarter ---------------------------------------------------------- Puradyn Filter Technologies Incorporated filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $251,517 on $772,880 of net sales for the three months ended June 30, 2014, as compared with a net loss of $474,215 on $600,390 of net sales for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss of $469,603 on $1.66 million of net sales as compared with a net loss of $890,899 on $1.17 million of net sales for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $1.58 million in total assets, $12.21 million in total liabilities, and a $10.62 million total stockholders' deficit. As of June 30, 2014, the Company had cash of $99,077, as compared to $161,503 at Dec. 31, 2013. Kevin G. Kroger, president and COO, noted, "We remain optimistic for 2014 as our second quarter shows continued increase over 2013. Additionally, our order board remains strong with a 43% increase year to date July 2014 over the same time period in 2013." A full-text copy of the Form 10-Q is available for free at: http://is.gd/BQci3g About Puradyn Filter Boynton Beach, Fla.-based Puradyn Filter Technologies Incorporated (OTC BB: PFTI) designs, manufactures and markets the puraDYN's Oil Filtration System. Puradyn Filter reported a net loss of $1.33 million on $2.53 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $2.22 million on $2.56 million of net sales during the prior year. Liggett, Vogt & Webb, P.A., in Boynton Beach, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has a net loss of $1,333,292, negative cash flow from operations of $957,941, a working capital deficiency of $769,907 and a stockholders' deficiency of $10,227,875. These conditions raise substantial doubt about the Company's ability to continue as a going concern. PT-1 COMMS: Bankr. Court Lacked Jurisdiction to Award Refund ------------------------------------------------------------ Edward P. Bond, the trustee of the liquidating trust in the Chapter 11 cases of PT-1 Communications, Inc., PT-1 Long Distance, Inc., and PT-1 Technologies, Inc., filed a federal income tax refund claim in bankruptcy court. The government asserted (1) that its waiver of sovereign immunity for bankruptcy court adjudication of tax refund claims filed by bankruptcy trustees did not confer on the bankruptcy court jurisdiction to decide such claims filed by the Liquidating Trustee, and (2) that in any event the refund claim was subject to an offset on account of other taxes owed by the Liquidating Trust. The United States Bankruptcy Court for the Eastern District of New York (Craig, C.J.) ruled that the Liquidating Trustee was entitled to a $3.8 million tax refund, and that the reorganization extinguished the government's setoff rights. The United States District Court for the Eastern District of New York (Cogan, J.) affirmed the $3.8 million tax refund, but reversed the extinguishment of setoff rights. The district court did not reach the merits of the government's setoff claim, or remand the issue to the bankruptcy court. Rather, the district court held that the government's setoff rights could be asserted in a separate federal cause of action pursuant to the Judgment Setoff Act, 31 U.S.C. Sec. 3728. On appeal to the U.S. Court of Appeals for the Second Circuit, the Liquidating Trustee seeks a mandate directing affirmance of the April 29, 2011 final order of the bankruptcy court in toto, and argues that the issue of the bankruptcy court's subject matter jurisdiction over the refund claim was waived when the government withdrew its own appeal in this case. A three-judge panel of the Second Circuit ruled last week that the bankruptcy court lacks jurisdiction over the Liquidating Trustee's refund claim and that the jurisdictional defense was not waived by the government's withdrawal of its appeal. The Second Circuit explained, "Section 505(a) of the Bankruptcy Code ("Code") allows a tax refund suit in bankruptcy court only after a refund claim is filed with the IRS by "the trustee" in bankruptcy. (A debtor-in-possession has the status "of a trustee serving in a case under this Chapter," 11 U.S.C. [Sec.] 1107; in this opinion, all references to a bankruptcy trustee include the debtor-in-possession.) Here, however, the refund claim was filed by the Liquidating Trustee, a representative of the estate who was appointed under the reorganization plan and whose status is distinct from that of a trustee in bankruptcy. Because Congress authorized a bankruptcy trustee (not a plan-appointed estate representative) to administratively exhaust a refund claim before bringing that claim in bankruptcy court, and the refund claim here was not filed with the IRS by a bankruptcy trustee, the bankruptcy court lacked jurisdiction to award the refund." "The judgment of the district court is reversed, and the case is remanded to the district court for entry of an order directing the bankruptcy court to dismiss the Liquidating Trustee's Short Period refund claim against the government," said Circuit Judge Dennis Jacobs, who penned the opinion, a copy of which is available at http://is.gd/qCsnZtfrom Leagle.com. The appellate case is, United States of America, Plaintiff- Appellee, v. Edward P. Bond, Liquidating Trustee of the Liquidating Trust U/A/W PT1 Communications, Inc., Defendant- Appellant, No. 12-4803-bk (2nd Cir.). The Liquidating Trustee is represented by: Laurence May, Esq. Therese Scheuer, Esq. COLE, SCHOTZ, MEISEL, FORMAN & LEONARD, P.A. 900 3rd Ave # 16 New York, NY 10022 E-mail: lmay@coleschotz.com tscheuer@coleschotz.com Debtors PT-1 Communications, Inc., PT-1 Long Distance, Inc., and PT-1 Technologies, Inc., filed for bankruptcy on March 9, 2001. R.R. DONNELLEY: Plunges Into Market for Printed Electronic Parts ---------------------------------------------------------------- Steven Rosenbush, writing for The Wall Street Journal, reported that driven by its demanding and impatient chief executive, R.R. Donnelley & Sons Co. is plunging into the developing market for printed electronic components such as thin, bendable RFID antennas, sensors and batteries. According to the report, the company is looking for new lines of business to supplement its core printing operations and forecasts that revenue will increase as much as 12.7% this year, to $11.8 billion from $10.5 billion, after growing less than 1% in 2013. * * * The Troubled Company Reporter, on June 26, 2014, reported that Moody's Investors Service affirmed RR Donnelley & Sons Company's (RRD) Ba2 corporate family rating (CFR), Ba2-PD probability of default rating (PDR), Baa2 senior secured credit facility rating, Ba3 senior unsecured notes rating and SGL-2 speculative grade liquidity rating (indicating good liquidity). The ratings outlook remains negative. The TCR, on March 10, 2014, reported that Standard & Poor's Ratings Services assigned Chicago-based print company R.R. Donnelley & Sons Co.'s proposed issuance of $350 million 10-year notes a 'BB-' issue-level rating, with a recovery rating of '4', indicating S&P's expectations for average (30%-50%) recovery for bondholders in the event of a payment default. REALOGY CORP: Closes Acquisition of ZipRealty --------------------------------------------- Realogy Group LLC completed its acquisition of all of the outstanding shares of common stock, par value $0.001 per share of ZipRealty, Inc., pursuant to an Agreement and Plan of Merger, dated as of July 15, 2014, by and among Realogy, Honeycomb Acquisition, Inc. (Purchaser), and ZipRealty. Realogy's acquisition of the Shares was structured as a two-step transaction, with a cash tender offer by Purchaser for the Shares at a price of $6.75 per Share, net to the seller in cash, without interest and less any applicable withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated July 16, 2014, and the related Letter of Transmittal, each as amended and supplemented from time to time, filed by Realogy and the Purchaser with the U.S. Securities and Exchange Commission on July 16, 2014, followed by the merger of Purchaser with and into ZipRealty, with ZipRealty surviving as a wholly-owned indirect subsidiary of Realogy. The Offer expired at 5:00 P.M., New York City time, on Wednesday, Aug. 13, 2014. As of the expiration of the Offer, 17,576,436 Shares were validly tendered and not withdrawn (including 821,068 Shares tendered by notice of guaranteed delivery), representing approximately 80.2% of all outstanding Shares. On Aug. 13, 2014, Honeycomb accepted for payment all Shares validly tendered and not properly withdrawn prior to the expiration of the Offer and made payment for those Shares in accordance with the terms and conditions of the Offer and applicable law. In order to obtain a sufficient number of Shares to effect a "short-form" merger under applicable Delaware law, on Aug. 14, 2014, the Purchaser exercised its option under the Merger Agreement to purchase from ZipRealty a number of newly issued Shares equal to the lowest number of Shares that, when added to the number of Shares owned by Purchaser at the time of such exercise, constituted one Share more than 90% of the Shares outstanding (after giving effect to the issuance of the Top-Up Shares). Immediately following the issuance of the Top-Up Shares to the Purchaser, the Purchaser owned in excess of 90% of the outstanding Shares at that time. Following the Purchaser's acceptance for payment of all Shares validly tendered and not properly withdrawn pursuant to the Offer on Aug. 13, 2014, and Purchaser's subsequent exercise of the Top- Up Option, Realogy and the Purchaser completed the Merger in accordance with the applicable provisions of Delaware law that authorized completion of the Merger without a vote or meeting of the stockholders of ZipRealty. ZipRealty survived the Merger as a wholly-owned indirect subsidiary of Realogy. The aggregate consideration paid by Realogy in the Merger was approximately $166 million (inclusive of paying holders of in-the- money ZipRealty stock options, whether vested or unvested at the time of the Merger, for each option owned by such holders, the excess of $6.75 over the exercise price of the applicable option), plus related transaction fees and expenses. In a regulatory filing with the SEC, Realogy Group LLC and Honeycomb Acquisition disclosed that as of Aug. 13, 2014, they beneficially owned 51,533,271 shares of common stock of ZipRealty, Inc., representing 100% of the shares outstanding. A copy of the regulatory filing is available at http://is.gd/FQOwIr About Realogy Corp. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have around 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. Realogy Holdings Corp. and Realogy Group LLC reported net income of $443 million in 2013, a net loss of $540 million in 2012 and a net loss of $439 million in 2011. As of March 31, 2014, the Company had $7.22 billion in total assets, $5.25 billion in total liabilities and $1.97 billion in total equity. * * * In the Aug. 1, 2013, edition of the TCR, Moody's Investors Service upgraded the corporate family rating of Realogy Group to B2 from B3. The upgrade to B2 CFR is driven by expectations for ongoing strong financial performance, supported by Realogy's recently-concluded debt and equity financing activities and a continuing recovery in the US existing home sale market. As reported by the TCR on Feb. 18, 2013, Standard & Poor's Ratings Services raised its corporate credit rating on Realogy Corp. to 'B+' from 'B'. "The one notch upgrade in the corporate credit rating to 'B+' reflects an increase in our expectation for operating performance at Realogy in 2013, and S&P's expectation that total lease adjusted debt to EBITDA will improve to the low-6x area and funds from operations (FFO) to total adjusted debt will be improve to the high-single-digits percentage area in 2013, mostly due to EBITDA growth in the low- to mid-teens percentage area in 2013," S&P said. RESPONSE BIOMEDICAL: Inks Separation Pact with Timothy Shannon -------------------------------------------------------------- In connection with his resignation as senior vice president worldwide sales and marketing of Response Biomedical Corp., Timothy Shannon and the Company have entered into a separation agreement and release pursuant to which the Company and Mr. Shannon have agreed that: (i) Mr. Shannon's employment with the company was terminated effective as of Aug. 1, 2014; (ii) Mr. Shannon will be provided severance payments equal to his base salary at the time of his termination for a period of eight months; (iii) the Company will reimburse Mr. Shannon for six months' worth of COBRA expenses. 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. 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. 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. RESPONSE BIOMEDICAL: Posts C$288,000 Net Income in Q2 ----------------------------------------------------- Response Biomedical Corp. reported financial results for the second quarter and six months ended June 30, 2014, including a 12% increase in sales and improving gross margin. The Company posted 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 during the prior year. Response's Chief Executive Officer, Jeff Purvin, commented on Response's Q2 2014 performance saying, "I am happy to report that our new China distributors are continuing to place new orders this quarter. Total sales in China were approximately $350 thousand more in this quarter than last quarter, indicating that these distributors are starting to work through their initial stocking inventories and are developing new demand in the marketplace." Mr. Purvin added, "Sales in the US were relatively unchanged from the previous year with the exception of Biodefense and West Nile Virus testing sales which increased by 30%, primarily due to the successful sales efforts of our distributors and the timing of orders. US cardiac sales have been slower than we expected and we are in the process of refocusing our resources on the specific hospital groups and other opportunities that will benefit the most from our products. We will be reallocating some of our current US spending over to China, where it will likely have a more immediate impact on our sales growth, this year and next. Sales in the rest of the world, excluding China and the US, increased 22% versus last year to $674 thousand in the quarter as we continue to strengthen our overseas distribution networks. This growth was hampered by lower quarter over quarter sales to our Russian distributor due to factors resulting from the recent unrest in that country. Russia is our second biggest market after China." A full-text copy of the press release is available for free at: http://is.gd/aPj4Rf 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. As of Dec. 31, 2013, the Company had $14.20 million in total assets, $15.68 million in total liabilities and a $1.48 million total shareholders' deficit. 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. RESTORGENEX CORP: Incurs $4.4 Million Net Loss in Second Quarter ---------------------------------------------------------------- Restorgenex Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $4.45 million on $0 of total revenues for the three months ended June 30, 2014, compared to net income of $2.34 million on $0 of total revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $5.83 million on $0 of total revenues compared to a net loss of $129,290 on $0 of total revenues for the same period during the prior year. Stephen M. Simes, chief executive officer of RestorGenex, said, "Several notable milestones have been achieved this year, including the successful closing of our private placement, the addition of several new, quality investors, the closing of two mergers, the hiring of Phillip Donenberg, our chief financial officer, and Mark Weinberg, MD, our senior vice president of clinical development, as well as continuing our efforts to evaluate, prioritize and develop our technologies and products." As of June 30, 2014, the Company had $54.52 million in total assets, $9.23 million in total liabilities and $45.29 million in total stockholders' equity. The Company's cash and cash equivalents as of June 30, 2014 were approximately $27.1 million. "Our financial position at the end of our second quarter of 2014 improved significantly compared to December 31, 2013 and the end of our first quarter of 2014, as a result of our recently completed private placement. Our working capital as of June 30, 2014 totaled $25,306,982 including $27,139,593 in cash and cash equivalents, compared to a negative working capital $(5,880,035), including $254,964 in cash and cash equivalents, as of December 31, 2013 and compared to a negative working capital $(8,016,821), including $222,071 in cash and cash equivalents, as of March 30, 2014," the Company stated in the Quarterly Report. A full-text copy of the Form 10-Q is available for free at: http://goo.gl/nZM7j5 About RestorGenex RestorGenex Corporation operates as a biopharmaceutical company. It focuses on dermatology, ocular disease, and women's health areas. The company was formerly known as Stratus Media Group, Inc., and changed its name to RestorGenex Corporation in March 2014. RestorGenex Corporation is based in Los Angeles, California. Restorgenex reported a net loss of $2.45 million in 2013 following a net loss of $6.85 million in 2012. Goldman Kurland and Mohidin LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that RestorGenex Corporation has suffered recurring losses and has negative cash flow from operations. These conditions raise substantial doubt as to the ability of RestorGenex Corporation to continue as a going concern. REVEL AC: To Close Down After Labor Day --------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, and Sherry Toub, a Bloomberg News reporter, said the Revel casino in Atlantic City, New Jersey, will close down at the end of the Labor Day weekend on Sept. 1. Michael Bathon, writing for Bloomberg News, said the embattled casino operator is still pursuing a potential sale as it plans to shut down operations to stanch its cash loss of about $2 million a week. A Revel lawyer said the current bids the casino operator has don't value the company as an ongoing operation and the offers show bidders look at Revel's losses like they would be "stepping into a black hole," the report related. About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13- 16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. RICEBRAN TECHNOLOGIES: Incurs Second Quarter Net Loss of $15.7MM ---------------------------------------------------------------- RiceBran Technologies filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $15.70 million on $11.34 million of revenues for the three months ended June 30, 2014, as compared with a net loss of $2.51 million on $9.38 million of revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $18.49 million on $19.02 million of revenues as compared with a net loss of $8.80 million on $18.09 million of revenues for the same period last year. As of June 30, 2014, the Company had $54.31 million in total assets, $32.13 million in total liabilities, $5.60 million in temporary equity and $16.57 million in total equity attributable to the Company's shareholders. A full-text copy of the Form 10-Q is available for free at: http://is.gd/mtG3ol About RiceBran Scottsdale, Ariz.-based RiceBran Technologies, a California corporation, is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. RiceBran Technologies reported a net loss of $17.64 million on $35.05 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $11.13 million on $37.72 million of revenues for the year ended Dec. 31, 2012. As of March 31, 2014, the Company had $52.66 million in total assets, $40.78 million in total liabilities, $6.42 million in temporary equity and $5.44 million in total equity attributable to the Company shareholders. BDO USA, LLP, in Phoenix, Arizona, 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 resulting in an accumulated deficit of $219 million at Dec. 31, 2013. This factor among other things, raises substantial doubt about its ability to continue as a going concern. RIVIERA HOLDINGS: In Covenant Talks; Forbearance Moved to Aug. 31 ----------------------------------------------------------------- Riviera Holdings Corporation filed with the Securities and Exchange Commission its second quarterly report on Form 10-Q for the period ended June 30, 2014. Riviera Holdings said net revenues (total revenues less promotional allowances) were higher during the period. It posted net revenues of $20,830,000 for the second quarter compared to $15,714,000 for the same period in 2013. Net revenues were $42,559,000 for the six months ended June 30, 2014 compared to $30,600,000 for the same period in 2013. Its net loss narrowed to $4,499,000 for the second quarter from $7,376,000 for the same period in 2013. Riviera Holdings said total assets were $204,805,000 against total liabilities of $126,008,000 at June 30, 2014. The Company had $58.6 million in cash and cash equivalents and $0.4 million in restricted cash as of June 30, 2014. Riviera Holdings also disclosed that effective April 1, 2011, the Company had the ability to draw up to $10 million against its Working Capital Facility. However, due to the default under the Series A Credit Agreement and the Series B Credit Agreement, Riviera Holdings does not currently have the ability to draw any additional funds under the Working Capital Facility until such time as the default is cured or waived. The lenders under the Series A Credit Agreement and Series B Credit Agreement also hold 100% of the Company's Class B Non- Voting Common Stock. As a result of the default, the Required Lenders (as defined in the Series A Credit Agreement and the Series B Credit Agreement, respectively) have the ability to increase the interest accruing on amounts owed under the Series A Credit Agreement and the Series B Credit Agreement, respectively. An increase in the interest rate would negatively affect the Company's available cash and results from operations. Further, the Required Lenders and administrative agent under the Series A Credit Agreement and the Series B Credit Agreement, respectively, have the right to accelerate repayment of all amounts owed under each of the agreements and require the Company to repay such amounts immediately. Riviera Holdings said, "We do not currently have sufficient funds to repay the Series A and Series B debt. Repaying these amounts and covering our operating losses will require additional cash, which may include the issuance of additional equity, debt financing and/or capital contributions from stockholders, if available to us. There can be no assurance that we will be successful in obtaining additional capital resources. The inability to obtain additional capital will restrict our ability to grow and inhibit our ability to continue to conduct business operations. Any additional equity financing may result in substantial dilution to our then existing stockholders. We do not provide any guarantees or assurances that the Company will have ample liquidity and capital resources to meet future financial obligations. If repayment of the indebtedness under our Series A Credit Agreement and Series B Credit Agreement were accelerated, we do not believe the Company has sufficient liquidity and capital resources to meet both debt service and normal operating expenditures. Pursuant to the terms of the Forbearance Agreement, the Required Lenders had agreed to forbear from exercising their remedies under the Series A Credit Agreement and the Series B Credit Agreement arising out of the default for a period up to and including July 31, 2014. On July 31, 2014, the Forbearance Agreement was amended to extend the forbearance period through August 31, 2014." The Company is currently in negotiations with its lenders, who are also stockholders, under the Credit Agreements concerning new financial covenants and other amendments to the Credit Agreements to resolve the existing default. There can be no assurance that the Company will be successful in doing so or that such amendments will be on favorable terms to the Company. Riviera Holdings said in the Form 10-Q report that the conditions and events raise substantial doubt about its ability to continue as a going concern. As reported by the Troubled Company Reporter, the default raises substantial doubt about the Company's ability to continue as a going concern, according to Ernst & Young LLP, in Las Vegas, Nevada, the Company's outside auditor, in its March 31, 2014 audit report. About Riviera Holdings Riviera Holdings Corporation, through its wholly owned subsidiary, Riviera Operating Corporation, owns and operates the Riviera Hotel & Casino located on Las Vegas Boulevard in Las Vegas, Nevada. Riviera Hotel & Casino, which opened in 1955, has a long-standing reputation for delivering traditional Las Vegas-style gaming, entertainment and other amenities. On July 12, 2010, RHC, ROC and the Riviera Black Hawk casino filed petitions for relief under the provisions of Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the District of Nevada. On Nov. 17, 2010, the Bankruptcy Court entered a written order confirming the Debtors' Second Amended Joint Plan of Reorganization. On December 1, 2010, the Plan became effective. On April 1, 2011, the Debtors emerged from reorganization proceedings under the Bankruptcy Code. Thomas H. Fell, Esq., at Gordon Silver, represented the Debtors in the Chapter 11 cases. XRoads Solutions Group, LLC, served as the financial and restructuring advisor. Garden City Group Inc. served as the claims and notice agent. On April 26, 2012, RHC completed the sale of Riviera Black Hawk casino to Monarch Casino and Resorts, Inc., and its wholly-owned subsidiary Monarch Growth Inc. The Buyer purchased Riviera Black Hawk by acquiring all of the issued and outstanding shares of common stock of RHC's subsidiary Riviera Black Hawk. The Buyer paid $76 million for the stock, subject to certain post-closing working capital adjustments. At the closing, ROC paid or satisfied substantially all of RBH's indebtedness (which consisted of inter-company accounts and equipment leases) and placed $2.1 million of working capital in a restricted bank account. Accordingly, the Company has reflected the business, including gain on sale, as discontinued operations. In July 2013, Moody's Investors Service downgraded Riviera Holdings' ratings, including its Corporate Family Rating to Caa3 from Caa2 and its Probability of Default Rating to Caa3-PD from Caa2-PD. At the same time, Moody's downgraded Riviera's first lien term loan and revolver to Caa2 from Caa1, its second lien term loan to Ca from Caa3 and its Speculative Grade Liquidity rating to SGL-4 from SGL-3. The rating outlook is negative. The downgrade reflected Moody's view that Riviera's capital structure is unsustainable given growing operating losses and its inability to cover debt service and capex needs given limited available cash balances. Moody's at that time said that, although the company continues to pay required interest on time, it remains in technical default of financial covenants. S.E. SHIRES: Judge Says Liquidation Can Stay in Chapter 11 ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that S.E. Shires Inc., its business sold, will remain in Chapter 11 after the U.S. Trustee lost a bid to convert the case to a liquidation under Chapter 7, where a trustee would supplant management and the creditors' committee. According to the report, U.S. Bankruptcy Judge Melvin S. Hoffman in Worcester, Massachusetts, said that the case can remain in Chapter 11 and that it's permissible to use Chapter 11 for liquidation. S.E. Shires, Inc., based in Hopedale, Mass., filed for Chapter 11 bankruptcy (Bankr. D. Mass. Case No. 14-40715) on April 8, 2014, listing total assets of $1.80 million and total liabilities of $3.10 million. Judge Melvin S. Hoffman presides over the case. Christine E. Devine, Esq., at Mirick, O'Connell, DeMaillie & Lougee LLP, serves as the Debtor's counsel. The petition was signed by Stephen E. Shires, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/mab14-40715.pdf SALON MEDIA: Incurs $886,000 Net Loss in First Quarter ------------------------------------------------------ Salon Media Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $886,000 on $1.24 million of net revenues for the three months ended June 30, 2014, compared with a net loss of $688,000 on $1.19 million of net revenues for the same period in 2013. As of June 30, 2014, the Company had $1.93 million in total assets, $5.74 million in total liabilities and a $3.81 million total stockholders' deficit. "The growth and expansion of mobile platforms and social media continues to impact the way media companies are attracting and interacting with their audiences, as does the importance of delivering immersive content that keeps users engaged," said Cynthia Jeffers, CEO of Salon Media Group. "We are responding to these market demands with a continued focus on high quality content, innovative sales products, upgraded user experiences on mobile, and strategic hires to continue delivering the quality content and advertising experiences our readers and partners have come to expect. This strategy is clearly paying off, with audience growth at an all-time high of 17.6 million unique visitors in June and 60% growth over last year. Our focus on these core principals continues to provide opportunity for future growth." A full-text copy of the Form 10-Q is available for free at: http://is.gd/VrYzjx About Salon Media San Francisco, Calif.-based Salon Media Group (OTC BB: SLNM.OB) -- http://www.Salon.com/-- is an online news and social networking company and an Internet publishing pioneer. Salon Media incurred a net loss of $2.18 million on $6 million of net revenues for the year ended March 31, 2014, as compared with a net loss of $3.93 million on $3.64 million of net revenues for the year ended March 31, 2013. Burr Pilger Mayer, Inc., in San Francisco, California, 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 suffered recurring losses and negative cash flows from operations and has an accumulated deficit of $118.7 million as of March 31, 2014. The auditors said these conditions raise substantial doubt about its ability to continue as a going concern. SALUBRIOUS PHARMACEUTICAL: Files Bare-Bones Ch. 11 Petition ----------------------------------------------------------- Salubrious Pharmaceutical LLC sought bankruptcy protection without stating a reason. The Woodland Hills, California-based company estimated $50 million to $100 million in assets and less than $1 million in debt. The list of 20 largest unsecured creditors contains only four entries, each on account of a lawsuit asserting claims of $100,000 to $400,000. Salubrious Pharmaceutical filed a bare-bones Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-13835) in San Fernando Valley, California, on Aug. 15, 2014. The case is assigned to Judge Maureen Tighe. The company tapped Timothy Quick, Esq., at the Law Offices of Timothy K Quick, in Los Alamitos, California, as counsel. According to the docket, the schedules of assets and liabilities and statement of financial affairs and other missing documents are due Aug. 29, 2014. SB PARTNERS: Incurs $205,700 Net Loss in Second Quarter ------------------------------------------------------- SB Partners filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $205,732 on $692,434 of total revenues for the three months ended June 30, 2014, as compared with a net loss of $296,015 on $626,103 of total revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $490,015 on $1.31 million of total revenues as compared with a net loss of $568,800 on $1.24 million of total revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $17.25 million in total assets, $22.64 million in total liabilities and a $5.39 million total partners' deficit. As of June 30, 2014, the Company had cash and cash equivalents of approximately $688,000. A full-text copy of the Form 10-Q is available for free at: http://is.gd/VW3GNa About SB Partners Milford, Conn.-based SB Partners is a New York limited partnership engaged in acquiring, operating and holding for investment a varying portfolio of real estate interests. As of June 30, 2010, the partnership owns an industrial flex property in Maple Grove, Minnesota and warehouse distribution centers in Lino Lakes, Minnesota and Naperville, Illinois. SB Partners incurred a net loss of $1.10 million in 2012 as compared with a net loss of $1.02 million in 2011. SILVERSUN TECHNOLOGIES: Posts $60,000 Second Quarter Net Profit --------------------------------------------------------------- Silversun Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $59,890 on $5.25 million of net total revenues for the three months ended June 30, 2014, compared with net income of $62,185 on $3.87 million of net total revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $180,631 on $10.17 million of net total revenues compared with net income of $177,715 on $7.91 million of net total revenues for the same period last year. As of June 30, 2014, the Company had $4.55 million in total assets, $4.67 million in total liabilities and a $117,638 total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/AjjYId About SilverSun Livingston, N.J.-based SilverSun Technologies, Inc., formerly known as Trey Resources, Inc., focuses on the business software and information technology consulting market, and is looking to acquire other companies in this industry. SWK Technologies, Inc., the Company's subsidiary and the surviving company from the acquisition and merger with SWK, Inc., is a New Jersey-based information technology company, value added reseller, and master developer of licensed accounting and financial software published by Sage Software. SWK Technologies also publishes its own proprietary supply-chain software, the Electronic Data Interchange (EDI) solution "MAPADOC." SWK Technologies sells services and products to various end users, manufacturers, wholesalers and distribution industry clients located throughout the United States, along with network services provided by the Company. Silversun Technologies posted net income of $322,548 on $17.40 million of net total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.23 million on $13.17 million of net total revenues for the year ended Dec. 31, 2012. SKYLINE MANOR: Court Okays Douglas Kucera as Trustee's Accountant ----------------------------------------------------------------- Ron Ross, the Chapter 11 trustee of Skyline Manor, Inc. sought and obtained permission from the U.S. Bankruptcy Court for the District of Nebraska to employ S. Douglas Kucera, CPA of the accounting firm Schroeder & Schreiner, P.C. as his accountant. The Trustee desires to engage Mr. Kucera to assist with cost reporting and any other general accounting services that may be needed during the course of Debtor's bankruptcy case. Mr. Kucera will charge the Trustee his standard hourly billing rate of $140 per hour. In addition, Mr. Kucera would set a maximum cost for his services at $5,000, and would not exceed $5,000 in fees and costs without further permission and approval from Trustee and the Court. Mr. Kucera 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. Mr. Kucera can be reached at: S. Douglas Kucera SCHROEDER & SCHREINER, P.C. 2535 N. Carleton Ave., Suite B Grand Island, NE 68803 Tel: (308) 381-1355 Fax: (308) 381-6557 E-mail: doug@ss-cpas.com 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. SPEEDEMISSIONS INC: Incurs $453,000 Net Loss in Second Quarter -------------------------------------------------------------- Speedemissions, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $453,242 on $1.60 million of revenue for the three months ended June 30, 2014, compared to a net loss of $111,490 on $1.77 million of revenue for the same period last year. Net loss for the six months ended June 30, 2014, was $694,862 compared with a net loss of $382,263 for the same period a year ago. For the six months ended June 30, 2014, the Company had $3.39 million of revenue compared to revenue of $3.65 million for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $2.17 million in total assets, $2.50 million in total liabilities, $4.57 million in series A convertible, redeemable preferred stock, and a $4.91 million total shareholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/eeN1yo On Aug. 8, 2014, the Company received hard copy of Demand for Payment of $791,206 pursuant to a Credit Agreement, dated June 8, 2012, as Amended by that Second Amendment to Credit Agreement, dated Oct. 23, 2013, and Replacement and Consolidated Revolving Note, dated Oct. 23, 2013; and Richard Parlontieri pursuant to Validity Guaranty, dated June 8, 2012 from TCA Global Credit Master Fund, L.P. and Trafalgar Capital Advisors, LLC. According to the notice, the demand of Speedemissions is a result of failure to make timely payments. "We do not agree with this action and are currently negotiating with TCA regarding options to remedy this default, but have no resolution as of the date of this report," the Company said in a document filed with the SEC dated Aug. 14, 2014. About Speedemissions Tyrone, Georgia-based Speedemissions, Inc., is a test-only emissions testing and safety inspection company. Speedimissions reported a net loss of $814,482 in 2013 and a net loss of $656,037 in 2012. SPENDSMART NETWORKS: Incurs $2.5-Mil. Net Loss in June 30 Qtr ------------------------------------------------------------- Spendsmart Networks, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss and comprehensive net loss of $2.48 million on $1.31 million of total revenues for the three months ended June 30, 2014, compared to a net loss of and comprehensive net loss $4.05 million on $244,011 of total revenues for the same period in 2013. For the nine months ended June 30, 2014, the Company reported a net loss and comprehensive net loss of $7.71 million on $2.42 million of total revenues compared to a net loss and comprehensive net loss of $9.05 million on $790,194 of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2014, showed $13.20 million in total assets, $2.56 million in total liabilities and $10.64 million in total stockholders' equity. The Company's cash and cash equivalents balance at June 30, 2014, totaled $6,017,849. During the nine months ended June 30, 2014, positive cash flows resulted from financing and investing activities of $9,724,226, offset by negative cash flows from operating activities totaling $4,777,125. A full-text copy of the Form 10-Q is available for free at: http://is.gd/MgrciI About SpendSmart Networks SpendSmart Networks Inc, formerly The SpendSmart Payments Company, is a financial solutions company focused on helping teens and young adults between the ages of 13 and 18 to manage spending. The Company offers a prepaid reloadable MasterCard with parental features ranging from giving parents complete control to make purchase on behalf of their teens to simply monitoring their teen's purchase transactions. The Company provides solutions that facilitate communication between parents and teens while helping to teach financial responsibility. In March 2014, the Company acquired SMS Masterminds. Effective as of June 20, 2014, SpendSmart Networks, Inc. f/k/a The SpendSmart Payments Company filed an amendment to its newly adopted Delaware Certificate of Incorporation to change its name to "SpendSmart Networks, Inc.". The Spendsmart Payments incurred a net loss and comprehensive loss of $12.58 million on $1.02 million of revenues for the year ended Sept. 30, 2013, as compared with a net loss and comprehensive loss of $21.09 million on $1 million of revenues during the prior year. EisnerAmper LLP, in Iselin, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The independent auditors noted that the Company has incurred net losses since inception and has an accumulated deficit at Sept. 30, 2013. These factors among others raise substantial doubt about the ability of the Company to continue as a going concern. STELLAR BIOTECHNOLOGIES: Copies of Charter Filed with SEC --------------------------------------------------------- Stellar Biotechnologies Inc. filed with the U.S. Securities and Exchange Commission copies of these documents: 1. Stellar Audit Committee Charter http://is.gd/CeH36V 2. Stellar Compensation Committee Charter http://is.gd/LnynnV 3. Stellar Nomination and Corporate Governance Committee Charter http://is.gd/p0gZDw 4. Stellar Code of Ethics and Business Conduct http://is.gd/pxRCYE 5. Stellar Insider Trading Policy http://is.gd/NhfG3z About Stellar Port Hueneme, Cal.-based Stellar Biotechnologies, Inc.'s business is to commercially produce and market Keyhole Limpet Hemocyanin ("KLH") as well as to develop new technology related to culture and production of KLH and subunit KLH ("suKLH") formulations. The Company markets KLH and suKLH formulations to customers in the United States and Europe. KLH is used extensively as a carrier protein in the production of antibodies for research, biotechnology and therapeutic applications. Stellar Biotechnologies incurred a loss and comprehensive loss of $14.88 million on $545.46 million of revenues for the year ended Aug. 31, 2013, as compared with a loss and comprehensive loss of $5.19 million on $286.05 million of revenues for the year ended Aug. 31, 2012. The Company's balance sheet at May 31, 2014, showed $15.50 million in total assets, $4.35 million in total liabilities and $11.15 million in total shareholders' equity. SUNLAND INC: Aug 29 Hearing to Approve Salmonella Claims Protocol ----------------------------------------------------------------- Clarke C. Coll, the chapter 7 trustee in the bankruptcy case of Sunland Inc., (Bankr. D. N.M. Case No. 13-13301) seeks approval of: -- a settlement and insurance policy buyback agreement with Great American Alliance Insurance Company and Jimmie Shearer; and -- Salmonella claim settlement and distribution procedures In September 2012, Sunland was the subject of an FDA recall in connection with an outbreak of Salmonella Bredeney. The agreement provides, in part, that Great American will pay $10.6 million to purchase from the estate certain liability insurance policies for settlement of all disputes, including all coverage disputes, broad and final releases, and conveyance to Great American of all rights, title and interests in the policies, free and clear of any and all claims and interests of any and all persons. Of this amount, $10 million will be placed in certain funds to be used to pay eligible claims arising from the outbreak, and $600,000 will be used to administer the funds and determine the eligible claims. The Chapter 7 trustee also seeks an injunction providing, in part, that all persons who have held, who hold or who may in the future hold any Claim or Interest against Great American, Sunland, the estates, the policies, Shearer, other Sunland officers and directors, or any other person who may claim to be an insured, will be permanently enjoined from talking any action to enforce those claims or interests. Objections to the Chapter 7 trustee's request are due Aug. 28. A preliminary hearing on any objections is set for Aug. 29 at 2 p.m. A final hearing on any unresolved objections is set for Sept. 30 at 9 a.m. If no objections are timely filed, orders granting the Motions will be presented for entry without a final hearing or further notice. The Chapter 7 Trustee is represented by: Thomas D. Walker, Esq. WALKER & ASSOCIATES P.C. 500 Marquette N.W., Suite 650 Albuquerque, NM 87102 Tel: 505-766-9272 E-mail: twalker@walkerlawpc.com SUNVALLEY SOLAR: Reports $274,000 Net Loss in Second Quarter ------------------------------------------------------------ Sunvalley Solar, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $273,896 on $17,580 of revenues for the three months ended June 30, 2014, compared with a net loss of $157,031 on $516,228 of revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $488,155 on $19,628 of revenues compared with a net loss of $546,179 on $528,884 of revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $7.46 million in total assets, $6.07 million in total liabilities, and $1.39 million of stockholders' equity. "We have experienced recurring losses from operations and had an accumulated deficit of $2,849,472 as of June 30, 2014. To date, we have not been able to produce sufficient sales to become cash flow positive and profitable on a consistent basis. The success of our business plan during the next 12 months and beyond will be contingent upon generating sufficient revenue to cover our costs of operations and/or upon obtaining additional financing. For these reasons, our auditor has raised substantial doubt about our ability to continue as a going concern," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/rkHMkh About Sunvalley Solar Sunvalley Solar, Inc., is a California-based solar power technology and system integration company. Since the inception of its business in 2007, the company has focused on developing its expertise and proprietary technology to install residential, commercial and governmental solar power systems. Sunvalley Solar disclosed a net loss of $1.76 million on $3.74 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $398,866 on $5.82 million of revenue for the year ended Dec. 31, 2011. Sadler, Gibb & Associates, LLC, in Salt Lake City, UT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company had losses from operations of $1,767,902 and accumulated deficit of $3,125,692, which raises substantial doubt about its ability to continue as a going concern. TELECONNECT INC: Reports $768,000 Net Loss in June 30 Quarter ------------------------------------------------------------- Teleconnect Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $768,043 on $9,674 of sales for the three months ended June 30, 2014, compared with a net loss of $906,479 on $30,670 of revenues for the same period in 2013. For the nine months ended June 30, 2014, the Company incurred a net loss of $2.44 million on $140,262 of sales compared with a net loss of $2.93 million on $315,177 of sales for the same period a year ago. As of June 30, 2014, the Company had $4.47 million in total assets, $3.21 million in total liabilities, all current, and $1.26 million in total stockholders' equity. At June 30, 2014 and Sept. 30, 2013, Teleconnect Inc. had a working capital deficit of $2,843,965 and $2,087,316, respectively. This decrease of working capital, $756,649 or 36.2%, is primarily a result of the increase in total current liabilities of $725,045 as detailed previously. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ppvQxv About Teleconnect Teleconnect Inc., headquartered in Breda, The Netherlands, was incorporated under the laws of the State of Florida on Nov. 23, 1998. With its ownership in Hollandsche Exploitatie Maatschappij BV (HEM), a Dutch entity established in 2007, the Company's main activities are the manufacturing, sales and lease of age validation equipment and the performance of age validation. The Company also sells and maintains vending solutions (through Mediawizz, The Netherlands), is involved in the broadcasting of in-store commercial messages using the age validation equipment between age checks (through HEM), and plans to develop market survey activities in the future (through Giga Matrix, The Netherlands). Teleconnect incurred a net loss of $3.47 million for the year ended Sept. 30, 2013, as compared with a net loss of $3.87 million for the year ended Sept. 30, 2012. Coulter & Justus, P.C., in Knoxville, Tennessee, 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 from operations and has a net capital deficiency in addition to a working capital deficiency, which raise substantial doubt about its ability to continue as a going concern. TN-K ENERGY: Reports $225,000 Net Loss in Second Quarter -------------------------------------------------------- TN-K Energy Group Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $225,288 on $68,705 of total revenue for the three months ended June 30, 2014, compared with a net loss of $50,650 on $87,649 of total revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $324,790 on $81,591 of total revenue compared with a net loss of $134,587 on $136,938 of total revenue for the same period during the prior year. As of June 30, 2014, the Company had $2.21 million in total assets, $3.92 million in total liabilities, and a $1.71 million total stockholders' deficit. "The Company has incurred losses since inception and has negative cash flows from operations and a substantial portion of the debt is in default and has a stockholders' deficit of $(1,718,527) as of June 30, 2014. The future of the Company is dependent upon its ability to obtain additional equity and/or debt financing and upon the continued development of commercially viable producing wells at levels which significantly increase the Company's revenues and net income. Management cannot assure that the Company will be able to secure such financing or obtain financing on terms beneficial to the Company or that the Company will be able to significantly increase its revenues and net income. Failure to achieve these goals may result in the Company's inability to continue as a going concern and the impairment of the recorded long-lived assets," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/gn0xzm About TN-K Energy Crossville, Tenn.-based TN-K Energy Group, Inc., an independent oil exploration and production company, engaged in acquiring oil leases and exploring and developing crude oil reserves and production in the Appalachian basin. TN-K Energy disclosed net income of $3.97 million on $1.88 million of total revenue for the year ended Dec. 31, 2012, as compared with net income of $1.25 million on $1.88 million of total revenue in 2011. Liggett, Vogt & Webb, P.A., in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred recurring operating losses and will have to obtain additional financing to sustain operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. TRIPLANET PARTNERS: Court Approves EisnerAmper as Accountant ------------------------------------------------------------ TriPlanet Partners, LLC, sought and obtained authority from the Hon. Robert D. Drain of the U.S. Bankruptcy Court from the Southern District of New York to employ EisnerAmper LLP, as accountants. EisnerAmper's services to the Debtor include: (a) reviewing the Debtor's books and records; (b) examining and reviewing the Debtor's financial information (including determining the Debtor's profits, if any, from 2010 to the present); (c) reviewing and analyzing insider transactions; (d) reconciling Roberts' claim against the Debtor; (e) assisting the Debtor's chief restructuring officer with litigation he may pursue; (f) analyzing the tax liability owed to the taxing authority in London, England; (g) investigating the transfers of assets; and (h) assisting with such other financial advisory or accounting services as the Debtor may deem necessary. EisnerAmper will be paid at these hourly rates: Partner $474-$520 Director $395-$470 Senior Manager $370-$390 Manager $285-$330 Senior $225-$265 Staff Assistants/ Paralegals $150-$250 EisnerAmper will also be reimbursed for reasonable out-of-pocket expenses incurred. Ira Spiegel, director of EisnerAmper, 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. EisnerAmper can be reached at: Ira Spiegel EISNERAMPER LLP 750 Third Avenue New York, NY 10017 Tel: (212) 891-4061 About Triplanet Partners LLC Triplanet Partners LLC filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 14-22643) on May 8, 2014. Sophien Bennaceur signed the petition as manager. The Debtor disclosed $19,946,560 in assets and $33,663,525 in liabilities. Arnold Mitchell Greene, Esq., at Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtor's counsel. Judge Robert D. Drain oversees the case. UNI-PIXEL INC: To Present at 2014 Gateway Conference on Sept. 4 --------------------------------------------------------------- UniPixel, Inc., has been invited to present at the 2014 Gateway Conference being held on Sept. 4, 2014, at the Palace Hotel in San Francisco. UniPixel President and CEO Jeff Hawthorne is scheduled to present at 1:30 p.m. Pacific time, with one-on-one meetings held throughout the day. Management will discuss the Company's progress in commercializing its revolutionary InTouch SensorsTM for mobile and all-in-one devices, including the recent achievement of roll-to-roll pilot production. For additional information or to schedule a one-on-one meeting log-in via the link provided in your invitation. You may also email your request to schedule@gateway-conference.com or call Ron Both at (949) 574-3860. About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. Uni-Pixel reported a net loss of $15.18 million in 2013, a net loss of $9.01 million in 2012 and a net loss of $8.56 million in 2011. As of June 30, 2014, the Company had $44.40 million in total assets, $5.60 million in total liabilities and $38.80 million in total shareholder's equity. UNILAVA CORP: Delays Form 10-Q Report for 2nd Quarter ----------------------------------------------------- Unilava Corporation 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 it was unable to prepare the financial statements in sufficient time to allow the timely filing of that report. About Unilava Corporation Unilava Corporation (OTC BB: UNLA) -- http://www.unilava.com/-- is a diversified communications holding company incorporated under the laws of the State of Wyoming in 2009. Unilava and its subsidiary brands provide a variety of communications services, products, and equipment that address the needs of corporations, small businesses and consumers. The Company is licensed to provide long distance services in 41 states throughout the U.S. and local phone services across 11 states. Through its carrier- grade microwave wireless broadband infrastructure and broadband Internet access partners, the Company also offers mobile and high- definition IP-hosted voice services to residential customers and corporate clients. Additionally, Unilava delivers a comprehensive and integrated suite of fee-based online and mobile advertising and web services to a broad array of business enterprises. Headquartered in San Francisco, the Company has regional offices in Chicago, Seoul, Hong Kong, and Beijing. Unilava reported a net loss of $1.58 million in 2012, as compared with a net loss of $2.98 million in 2011. Shelley International CPA, in Mesa, AZ, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has suffered losses from operations, which raises substantial doubt about its ability to continue as a going concern. UNIVERSAL SOLAR: System Fault Causes Delay in 10-Q Filing --------------------------------------------------------- Universal Solar Technology, 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 has been unable to complete the Quarterly Report due to an error in the Company's financial system when the Company prepared the Form 10-Q in July. The Company said that although the system has been repaired, it will need additional time to make sure that the dates in the Form 10-Q are accurate. The Company intends to file the Second Quarterly Report within the extension period. About Universal Solar Headquartered in Zhuhai City, Guangdong Province, in the People's Republic of China, Universal Solar Technology, Inc., was incorporated in the State of Nevada on July 24, 2007. It operates through its wholly owned subsidiary, Kuong U Science & Technology (Group) Ltd., a company incorporated in Macau, the People's Republic of China on May 10, 2007, and its subsidiary, Nanyang Universal Solar Technology Co., Ltd., a wholly foreign owned enterprise registered on Sept. 8, 2008 under the wholly foreign- owned enterprises laws of the PRC. The Company primarily manufactures, markets and sells silicon wafers to manufacturers of solar cells. In addition, the Company manufactures photovoltaic modules with solar cells purchased from third parties. Universal Solar reported a net loss of $1.28 million in 2013 following a net loss of $5.66 million in 2012. Paritz & Company, P.A., in Hackensack, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company had not generated cash from its operation, had a stockholders' deficiency of $ 10,663,106 and had incurred net loss of $ 11,175,906 since inception. These circumstances, among others, raise substantial doubt about the Company's ability to continue as a going concern. USEC INC: Files Second Quarter 2014 Report With SEC --------------------------------------------------- USEC Inc. filed its quarterly report on Form 10-Q with the Securities and Exchange Commission for the period ended June 30, 2014. USEC said total assets were $807.7 million against $1,343.9 million in total liabilities. USEC reported a net loss of $28.0 million for the quarter ended June 30, 2014, compared to a net loss of $40.9 million for the second quarter of 2013. For the six months ended June 30, 2014, USEC reported a loss of $78.8 million compared to $42.9 million in the same period of 2013. A copy of the Form 10-Q Report is available at http://is.gd/sHwdGZ About USEC Inc. USEC Inc. filed a Chapter 11 bankruptcy petition (Bank. D. Del. Case No. 14-10475) on March 5, 2014. John R. Castellano signed the petition as chief restructuring officer. The Hon. Christopher S. Sontchi presides over the case. D. J. Baker, Esq., Rosalie Walker Gray, Esq., Adam S. Ravin, Esq., and Annemarie V. Reilly, Esq., at Latham & Watkins LLP, serve as the Debtor's general counsel. Amanda R. Steele, Esq., Mark D. Collins, Esq., and Michael J. Merchant, Esq., at Richards, Layton & Finger, P.A., serve as the Debtor's Delaware counsel. Vinson & Elkins is the Debtor's special counsel. Lazard Freres & Co. LLC acts as the Debtor's investment banker. AP Services, LLC, provides management services to the Debtor. Logan & Company Inc. serves as the Debtor's claims and noticing agent. Deloitte Tax LLP are the Debtor's tax professionals. The Debtor's independent auditor is PricewaterhouseCoopers LLP. KPMG LLP provides fresh start accounting services to the Debtors. * * * The Court approved the disclosure statement explaining USEC Inc.'s plan of reorganization on July 7, 2014. The Confirmation Hearing is scheduled for Sept. 5, 2014, at 1:00 p.m. (Eastern time). The Plan Objection Deadline is Aug. 22, and the deadline for filing a reply to objections to confirmation of the Plan, if any, is Sept. 2. UTSTARCOM HOLDINGS: Incurs $4.6 Million Second Quarter Net Loss --------------------------------------------------------------- UTStarcom reported a net loss attributable to UTStarcom's shareholders for the second quarter of 2014 of $4.6 million, compared to net loss attributable to UTStarcom's shareholders of $2.1 million for the corresponding period in 2013. Net loss attributable to UTStarcom's shareholders for the first half of 2014 was $7.9 million, compared to net loss attributable to UTStarcom's shareholders of $7.1 million for the corresponding period in 2013. Total revenues for the second quarter of 2014 were $31.9 million, a decrease of 33.2% from $47.7 million for the corresponding period in 2013. Total revenues for the first half of 2014 were $64.2 million, a decrease of 24.3% from $84.9 million for the corresponding period in 2013. As of June 30, 2014, the Company had $326.56 million in total assets, $186.21 million in total liabilities and $140.35 million in total equity. As of June 30, 2014, UTStarcom had cash and cash equivalents of $95.1 million. Mr. William Wong, UTStarcom's chief executive officer, stated, "We are pleased with our performance in the second quarter as well as with the ongoing progress we are making in the aggressive transformation of UTStarcom. During the quarter we exceeded our expectations for the topline, continued to drive costs out of our business, and made a great many strategic moves that will help us propel the transition of our Company forward. More specifically, we staged a global launch of our carrier-class Wi-Fi solution, strengthening our product portfolio with key customers. Further, we pushed more aggressively into key markets, as highlighted by our opening of a new product testing and demonstration lab in the U.S., and we believe these global expansion efforts will drive significant improvement in top and bottom line growth. Lastly, we reduced the size of the Board, appointed a new Chairman, and together we are driving for higher efficiency and stronger governance. The management team and Board of Directors are working closely together to drive progress and success in the business. All in, the second quarter was a critical period for UTStarcom and proves that we are fully on the right track to compete more aggressively on a global stage going forward." Mr. Robert Pu, UTStarcom's chief financial officer, commented, "In the second quarter, we achieved better than expected revenue growth and sequential improvement in our gross margin despite the depreciation of Japanese yen. As we move into the second half of the year, we are particularly pleased with our improved underlying financial position and with the strength of our balance sheet. With $95.1 million in cash and no debt, we have ample liquidity to fund our investments in future business growth. In the quarters ahead, the Company will continue to keep its vigilant focus on topline growth, cost control, and cash generation. We will work diligently towards the goal of delivering increased sales, generating operating cash flow, and further improving overall finance performance." Chief Financial Officer Transition The Company appointed Mr. Min Xu as chief financial officer of the Company, effective August 21. Mr. Xu will replace Mr. Robert Pu who has resigned for personal reasons but will remain with the business for six months as a consultant to help ensure a smooth transition. The Company also announced an additional important promotion within the finance team. Mr. Bill Lou, who joined the Company in April 2002 and currently serves as financial controller of the company, has been promoted to Vice President of Finance. A full-text copy of the press release is available for free at: http://is.gd/4ky25O About UTStarcom, Inc. UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a global leader in IP-based, end-to-end networking solutions and international service and support. The Company sells its solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks. The Company's headquarters are currently in Alameda, California, with its research and design operations primarily in China. UTStarcom Holdings reported a net loss of $22.73 million on $164.43 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $35.57 million on $186.72 million of net sales for the year ended Dec. 31, 2012. "We have a history of operating losses and may not have sufficient liquidity to execute our business plan or to continue our operations without obtaining additional funding or selling additional securities. We may not be able to obtain additional funding under commercially reasonable terms or issue additional securities," the Company said in the Annual Report for the year ended Dec. 31, 2013. VERMILLION INC: Eliminates SVP Sales & Marketing & CMO Positions ---------------------------------------------------------------- Due to recent changes in the sales and marketing organization of Vermillion, Inc., the position of senior vice president, sales and marketing and chief commercial officer was eliminated. As a result, Marian Sacco, senior vice president, sales and marketing and chief commercial officer, departed the Company effective August 12, 2014. In connection with Ms. Sacco's departure from the Company, Ms. Sacco will be entitled to accelerated vesting of 50% of the unvested options previously granted by the Company to Ms. Sacco, severance and certain benefits in accordance with her Employment Agreement with the Company, dated Dec. 16, 2013, provided that Ms. Sacco signs and does not revoke a standard separation agreement releasing all claims against the Company, in a form reasonably satisfactory to the Company, does not breach any provision of the Sacco Employment Agreement, and continues to comply with the Proprietary Information and Inventions Agreement between Mr. Sacco and the Company. Ms. Sacco's termination was not the result of any disagreement with the Company on any matter relating to the Company's operations, policies or practices. About Vermillion Vermillion, Inc., is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. The Company filed for Chapter 11 on March 30, 2009 (Bankr. D. Del. Case No. 09-11091). Vermillion's legal advisor in connection with its successful reorganization efforts was Paul, Hastings, Janofsky & Walker LLP. Vermillion emerged from bankruptcy in January 2010. The Plan called for the Company to pay all claims in full and equity holders to retain control of the Company. Vermillion incurred a net loss of $8.81 million in 2013, a net loss of $7.14 million in 2012 and a net loss of $17.79 million in 2011. As of March 31, 2014, the Company had $27.27 million in total assets, $4.34 million in total liabilities and $22.92 million in total stockholders' equity. VERSO PAPER: Incurs $42.8 Million Net Loss in Second Quarter ------------------------------------------------------------ Verso Paper Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $42.83 million on $320.91 million of net sales for the three months ended June 30, 2014, compared to a net loss of $43.03 million on $330.38 million of net sales for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $133.44 million on $620.02 million of net sales compared to a net loss of $81.41 million on $663.60 million of net sales for the same period last year. As of June 30, 2014, Verso Paper had $1.03 billion in total assets, $1.58 billion in total liabilities and a $549.42 million total deficit. "Our ability to continue as a going concern is dependent on management's plans, which are centered on the NewPage acquisition, and also include potential asset acquisitions or dispositions, mergers or business combinations with other entities, and continuing to raise funds through debt and/or equity financings. Our future projected operating results for current operations alone raise substantial doubt as to our ability to continue as a going concern," the Company said in the 10-Q. A full-text copy of the Quarterly Report is available for free at: http://is.gd/JcUJ38 About Verso Verso is a North American producer of coated papers, including coated groundwood and coated freesheet, and specialty products. Verso is headquartered in Memphis, Tennessee, and owns three paper mills located in Maine and Michigan. Verso's paper products are used primarily in media and marketing applications, including magazines, catalogs and commercial printing applications such as high-end advertising brochures, annual reports and direct-mail advertising. Additional information about Verso is available on its Web site at http://www.versopaper.com/ * * * As reported by the TCR on July 10, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Memphis, Tenn.- based Verso Paper Holdings LLC to 'CC' from 'CCC'. "The rating action reflects the announcement that the company plans to conduct a two-part exchange for its senior secured second-priority notes and senior subordinated notes," said Standard & Poor's credit analyst David Kuntz. The TCR reported on June 24, 2014, that Moody's Investors Service downgraded Verso Paper Holdings LLC's corporate family rating (CFR) to Caa3 from B3 and probability of default rating (PDR) to Caa3-PD from Caa2-PD. Verso's Caa3 CFR reflects the elevated risk of a default or distressed exchange in the next 12 months, the company's weak liquidity, high leverage (adjusted leverage over 13x), and the expectation that the company will continue to face secular demand declines and weak prices for most of the grades of coated paper it produces. VISION INDUSTRIES: Incurs $138,000 Net Loss in Second Quarter ------------------------------------------------------------- Vision Industries Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $138,143 on $0 of revenue for the three months ended June 30, 2014, compared to a net loss of $1.36 million on $0 of revenue for the same period during the prior year. Net loss for the six months ended June 30, 2014, was $1.25 million compared to a net loss of $2.53 million for the same period a year ago. As of June 30, 2014, the Company had $1.34 million in total assets, $3.18 million in total liabilities, and a $1.83 million total stockholders' deficit. As of June 30, 2014, the Company had a working capital deficit of $1,944,098. The Company's cash balance at June 30, 2014, was $7,249, and the Company is dependent on its ability to continue to raise funds primarily through debt financing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/4Uat6Z About Vision Industries Long Beach, Cal.-based Vision Industries Corp. focuses its efforts in building Class 8 fuel cell electric vehicles (FCEV) used in drayage transportation. Vision Industries reported a net loss of $5.28 million on $26,545 of total revenue for the year ended Dec. 31, 2012, as compared with a net loss of $6.44 million on $764,157 of total revenue for the year ended Dec. 31, 2011. DKM Certified Public Accountants, in Clearwater, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company's cash and available credit are not sufficient to support its operations for the next year. Accordingly, management needs to seek additional financing that raises substantial doubt about its ability to continue as a going concern. VISUALANT INC: Incurs $1.3 Million Net Loss in Third Quarter ------------------------------------------------------------ Visualant, Incorporated, filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.33 million on $2.02 million of revenue for the three months ended June 30, 2014, compared with a net loss of $2.41 million on $2.06 million of revenue for the same period in 2013. For the nine months ended June 30, 2014, the Company reported a net loss of $1.21 million on $5.92 million of revenue compared with a net loss of $5.46 million on $6.33 million of revenue for the same period last year. As of June 30, 2014, the Company had $3.46 million in total assets, $7.09 million in total liabilities, all current, $72,713 in non-controlling interest, and a $3.70 million total stockholders' deficit. "The Company anticipates that it will record losses from operations for the foreseeable future. As of June 30, 2014, our accumulated deficit was $21,776,800. The Company has limited capital resources, and operations to date have been funded with the proceeds from private equity and debt financings and currently from loans from Ronald P. Erickson, our Chief Executive Officer. These conditions raise substantial doubt about our ability to continue as a going concern," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/OGNFun About Visualant Inc. Seattle, Wash.-based Visualant, Inc., was incorporated under the laws of the State of Nevada on Oct. 8, 1998. The Company develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti- counterfeiting, forgery/fraud prevention, brand protection and process control applications. Visualant incurred a net loss of $6.60 million for the year ended Sept. 30, 2013, as compared with a net loss of $2.72 million for the year ended Sept. 30, 2012. PMB Helin Donovan, LLP, in Seattle, Washington, 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 sustained a net loss from operations and has an accumulated deficit since inception. These factors raise substantial doubt about the Company's ability to continue as a going concern. VYCOR MEDICAL: Incurs $1.3 Million Net Loss in Second Quarter ------------------------------------------------------------- Vycor Medical, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.27 million on $298,540 of revenue for the three months ended June 30, 2014, as compared with a net loss of $656,551 on $234,954 of revenue for the same period during the prior year. For the six months ended June 30, 2014, the Company reported a net loss of $2.06 million on $656,662 of revenue as compared with a net loss of $1.29 million on $466,628 of revenue for the same period in 2013. As of June 30, 2014, the Company had $4.79 million in total assets, $3.30 million in total liabilities, and $1.48 million in total stockholders' equity. Cash and cash equivalents were $2,840,052 at June 30, 2014. Peter Zachariou, chief executive officer of Vycor, commented: "These results demonstrate that Vycor continues to build value and momentum with its existing products, with revenues up 27% overall compared to 2013 and up 39% in the Vycor VBAS business. Clearly, Vycor is executing on its development plan and I am increasingly encouraged by our progress and the opportunities in front of us. We have moved into manufacturing implementation of our new small VBAS units and completed prototyping of the new IGS-compatible devices. We have expanded the NeuroEyeCoach suite and our VRT development is nearing completion. With the $5 million Offering completed in the second quarter and the $2.4 million debt exchange, we are well capitalized and in a position to take advantage of strategic opportunities as they arise and to continue to build shareholder value through the execution of our clearly articulated growth strategy." Cash and cash equivalents were $2,840,052 at June 30, 2014. A full-text copy of the Form 10-Q is available for free at: http://is.gd/vwWIAm About Vycor Medical Boca Raton, Fla.-based Vycor Medical, Inc. (OTC BB: VYCO) -- http://www.VycorMedical.com/-- is a medical device company committed to making neurological brain, spinal and other surgical procedures safer and more effective. The Company's flagship, Patent Pending ViewSite(TM) Surgical Access Systems represent an exciting new minimally invasive access and retraction system that holds the potential for speedier, safer and more economical brain, spinal and other surgeries and a quicker patient discharge. Vycor's innovative medical instruments are designed to optimize neurosurgical site access, reduce patient risk, accelerate recovery, and add tangible value to the professional medical community. Vycor Medical reported a net loss of $2.47 million on $1.08 million of revenue for the year ended Dec. 31, 2013, as compared with a net loss of $2.93 million on $1.20 million of revenue for the year ended Dec. 31, 2012. VYCOR MEDICAL: Fountainhead Owns 50% of Common Shares ----------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Fountainhead Capital Management Limited disclosed that as of Aug. 5, 2014, it beneficially owned 6,399,902 shares of common stock of Vycor Medical, Inc., representing 50.1 percent of the shares outstanding. On August 5, Fountainhead was issued Warrants to purchase 572,613 Vycor Common Shares in connection with its exchange of $1,641,487 of debt in the Company held by Fountainhead. Fountainhead previously disclosed beneficial ownership of 5,827,289 shares at June 30, 2014. A full-text copy of the regulatory filing is available at: http://is.gd/t78Oe1 About Vycor Medical Boca Raton, Fla.-based Vycor Medical, Inc. (OTC BB: VYCO) -- http://www.VycorMedical.com/-- is a medical device company committed to making neurological brain, spinal and other surgical procedures safer and more effective. The Company's flagship, Patent Pending ViewSite(TM) Surgical Access Systems represent an exciting new minimally invasive access and retraction system that holds the potential for speedier, safer and more economical brain, spinal and other surgeries and a quicker patient discharge. Vycor's innovative medical instruments are designed to optimize neurosurgical site access, reduce patient risk, accelerate recovery, and add tangible value to the professional medical community. Vycor Medical reported a net loss of $2.47 million on $1.08 million of revenue for the year ended Dec. 31, 2013, as compared with a net loss of $2.93 million on $1.20 million of revenue for the year ended Dec. 31, 2012. The Company's balance sheet at March 31, 2014, showed $4.86 million in total assets, $5.10 million in total liabilities and a $247,332 total stockholders' deficiency. VYCOR MEDICAL: Peter Zachariou Holds 25.7% of D Preferred Shares ---------------------------------------------------------------- Peter C. Zachariou disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that as of Aug. 5, 2014, he beneficially owned 60,555 of 7% Series D Convertible Redeemable Preferred Stock Par Value $0.0001, representing 25.7% of the Company's outstanding Series D. On Aug. 5 2014, Mr. Zachariou exchanged $605,550 of debt in the Company held by him into 60,555 shares of Series D. A copy of the regulatory filing is available for free at http://is.gd/FEf1oL About Vycor Medical Boca Raton, Fla.-based Vycor Medical, Inc. (OTC BB: VYCO) -- http://www.VycorMedical.com/-- is a medical device company committed to making neurological brain, spinal and other surgical procedures safer and more effective. The Company's flagship, Patent Pending ViewSite(TM) Surgical Access Systems represent an exciting new minimally invasive access and retraction system that holds the potential for speedier, safer and more economical brain, spinal and other surgeries and a quicker patient discharge. Vycor's innovative medical instruments are designed to optimize neurosurgical site access, reduce patient risk, accelerate recovery, and add tangible value to the professional medical community. Vycor Medical reported a net loss of $2.47 million on $1.08 million of revenue for the year ended Dec. 31, 2013, as compared with a net loss of $2.93 million on $1.20 million of revenue for the year ended Dec. 31, 2012. The Company's balance sheet at March 31, 2014, showed $4.86 million in total assets, $5.10 million in total liabilities and a $247,332 total stockholders' deficiency. VYCOR MEDICAL: Fountainhead Owns 70% of Outstanding D Shares ------------------------------------------------------------ In a Schedule 13D filed with the U.S. Securities and Exchange Commission, Fountainhead Capital Management Limited disclosed that as of Aug. 5, 2014, it beneficially owned 164,149 of 7% Series D Convertible Redeemable Preferred Stock par value $0.0001, approximately 70% of the Company's outstanding Series D. On Aug. 5 2014, Fountainhead exchanged $1,641,487 of debt in the Company held by it into 164,149 shares of Series D. A copy of the regulatory filing is available at http://is.gd/tNcQgk About Vycor Medical Boca Raton, Fla.-based Vycor Medical, Inc. (OTC BB: VYCO) -- http://www.VycorMedical.com/-- is a medical device company committed to making neurological brain, spinal and other surgical procedures safer and more effective. The Company's flagship, Patent Pending ViewSite(TM) Surgical Access Systems represent an exciting new minimally invasive access and retraction system that holds the potential for speedier, safer and more economical brain, spinal and other surgeries and a quicker patient discharge. Vycor's innovative medical instruments are designed to optimize neurosurgical site access, reduce patient risk, accelerate recovery, and add tangible value to the professional medical community. Vycor Medical reported a net loss of $2.47 million on $1.08 million of revenue for the year ended Dec. 31, 2013, as compared with a net loss of $2.93 million on $1.20 million of revenue for the year ended Dec. 31, 2012. The Company's balance sheet at March 31, 2014, showed $4.86 million in total assets, $5.10 million in total liabilities and a $247,332 total stockholders' deficiency. WAFERGEN BIO-SYSTEMS: Ends Second Quarter with $3.5MM in Cash ------------------------------------------------------------- WaferGen Bio-systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.10 million on $1.73 million of total revenue for the three months ended June 30, 2014, compared to a net loss of $3.16 million on $246,248 of total revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $4.64 million on $3.13 million of total revenue compared to a net loss of $6.94 million on $424,735 of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2014, showed $9.41 million in total assets, $7.69 million in total liabilities and $1.71 million in total stockholders' equity. As of June 30, 2014, the Company had $3,521,549 in unrestricted cash and cash equivalents, and working capital of $3,231,026. "The Company has incurred operating losses and negative cash flows from operations since its inception. Management expects that revenues will increase as a result of current and future product releases. However, the Company also expects to incur additional expenses for the development and expansion of its products, marketing campaigns, and operating costs as it expands its operations. Therefore, the Company expects operating losses and negative cash flows to continue for the foreseeable future. It is management's plan to obtain additional working capital through additional financings. The Company believes that it will be successful in expanding operations, gaining market share, and raising additional funds. However, there can be no assurance that in the event the Company requires additional financing, such financing will be available at terms which are favorable, or at all. Failure to generate sufficient cash flows from operations or raise additional capital could have a material adverse effect on the Company's ability to achieve its intended business objectives. These factors raise substantial doubt about the Company's ability to continue as a going concern," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/262NIY About WaferGen Bio-systems Fremont, California-based WaferGen Bio-systems, Inc., engages in the development of systems for gene expression quantification, genotyping and stem cell research. Since 2008, the Company's primary focus has been on the development, manufacture and marketing of its SmartChip System, a genetic analysis platform used for profiling and validating molecular biomarkers in the life sciences and pharmaceutical drug discovery industries. WaferGen reported a net loss attributable to common stockholders of $17.71 million in 2013, following a net loss attributable to common stockholders of $8.97 million in 2012. SingerLewak LLP, in San Jose, California, issued a "going concern" qualification on the consoliated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred operating losses and negative cash flows from operating activities since inception which raise substantial doubt about the Company's ability to continue as a going concern. Z TRIM HOLDINGS: Incurs $1.6 Million Net Loss in Second Quarter --------------------------------------------------------------- Z Trim Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.57 million on $212,154 of total revenues for the three months ended June 30, 2014, as compared with net income of $3.08 million on $382,126 of total revenues for the same period last year. For the six months ended June 30, 2014, the Company reported a net loss of $3.01 million on $528,624 of total revenues as compared with a net loss of $8.25 million on $745,957 of total revenues for the same period last year. As of June 30, 2014, the Company had $3.10 million in total assets, $2.17 million in total liabilities and $930,616 in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/dQ7Rru About Z Trim Mundelein, Ill.-based Z Trim Holdings, Inc., is a functional food ingredient company which provides custom product solutions that help answer the food industry's problems. Z Trim's revolutionary technology provides value-added ingredients across virtually all food industry categories. Z Trim's all-natural products, among other things, help to reduce fat and calories, add fiber, provide shelf-stability, prevent oil migration, and add binding capacity -- all without degrading the taste and texture of the final food products. Z Trim Holdings reported a net loss of $13.43 million in 2013, a net loss of $9.58 million in 2012 and a net loss of $6.94 million in 2011. M&K CPAS, PLLC, 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 does not have enough cash on hand to meet its current liabilities and has had reoccurring losses as of Dec. 31, 2013. These conditions raise substantial doubt about its ability to continue as a going concern. * New York Prosecutors Charge Payday Lenders with Usury ------------------------------------------------------- Jessica Silver-Greenberg, writing for The New York Times' DealBook, reported that a trail of money that began with triple- digit loans to troubled New Yorkers and wound through companies owned by a former used-car salesman in Tennessee led New York prosecutors on a yearlong hunt through the shadowy world of payday lending. According to the report, on Aug. 11, that investigation culminated with state prosecutors in Manhattan bringing criminal charges against a dozen companies and their owner, Carey Vaughn Brown, accusing them of enabling payday loans that flouted the state's limits on interest rates in loans to New Yorkers. * SEC Charges Kansas with Failure to Disclose Pension Risks ----------------------------------------------------------- Maria Armental and Aaron Kuriloff, writing for The Wall Street Journal, reported that Kansas has agreed to settle a fraud case in which the Securities and Exchange Commission charged the state misled investors when it failed to disclose that its underfunded pension system posed a risk to the repayment of some municipal bonds. According to the report, the SEC said in a cease-and- desist order that Kansas officials didn't provide important information about the state's pension system in eight bond offerings totaling $273 million in 2009 and 2010. Kansas has since adopted new policies to ensure its finances are more transparent in offering documents, the Journal cited the agency as saying in a news release. * Swaps Panel Delays Payout Auction on Argentine Bonds ------------------------------------------------------ Peter Eavis, writing for The New York Times' DealBook, reported that some investors were expecting to collect their winnings soon on a bet they made against Argentina's bonds using financial instruments called credit default swaps but the International Swaps and Derivatives Associated decided to delay the auction to Sept. 2 after receiving a challenge to the swaps' payout process. According to the report, the ISDA, the industry body that helps oversee the credit default swaps market, ruled that the swaps had been activated and has stated that an auction would take place on Aug. 21 to set the exact amount at which the swaps would pay out, but has announced that it now expected to hold the auction on Sept. 2. * Deloitte CRG Wins Two TMA Transaction of the Year Awards ---------------------------------------------------------- The Turnaround Management Association (TMA) will honor 50 professionals with the prestigious 2014 Turnaround and Transaction of the Year Awards on September 30. The winners will be honored during a special awards ceremony at 10:30 a.m. at The TMA Annual, taking place September 29 ? October 1 at the Westin Harbour Castle in Toronto, Ontario. Since 1993, TMA has honored excellence through its annual awards program, which recognizes the most successful turnarounds and impactful transactions. This year's winners saved countless jobs and made a significant economic impact, both locally and globally. The 2014 TMA Turnaround and Transaction of the Year Award Winners: Turnaround of the Year: Mega Company ? Eastman Kodak Company / Kodak Alaris Holdings Ltd. Albert A. Koch, CTP, AlixPartners, LLP James A. Mesterharm, AlixPartners, LLP Rebecca A. Roof, AlixPartners, LLP Jeffery Stegenga, Alvarez & Marsal Christopher R. Donoho III, Hogan Lovells US LLP Leon Szlezinger, Jefferies LLC David Kurtz, Lazard Freres & Co LLC Dennis Dunne, Milbank Tweed Hadley & McCloy LLP Andrew G. Dietderich, Sullivan & Cromwell LLP Pauline K. Morgan, Young Conaway Stargatt & Taylor LLP Turnaround of the Year: Large Company ? Longview Fibre Paper and Packaging Hugh Sutcliffe, Brookfield Asset Management Turnaround of the Year: Mid-Size Company ? Fansteel, Inc. Brian F. Cassady, Black Management Advisors Patrick Murray, The Ridgevale Group Turnaround of the Year: Small Company ? Renwood Mills, LLC Randall Jackson, Lladnar Consulting Mark Barbeau, Renovo Capital David Hull, Renovo Capital Michael Manos, Renovo Capital Matthew Tarver, Renovo Capital Todd Bernier, The PrivateBank Robert Corsentino, The PrivateBank Mitchell Rasky, The PrivateBank Turnaround of the Year: Non-Profit Company ? Elim Christian Services Matthew S. Thiede, O'Keefe Transaction of the Year: Mega Company ? AMR Corporation Jasmine Ball, Debevoise & Plimpton LLP Anthony J. Jackson, Deloitte CRG John Little, CTP, Deloitte CRG Kevin M. Carmody, McKinsey & Company Neal D. Mollen, Paul Hastings LLP Homer D. Parkhill, Rothschild Inc. Stephen Karotkin, Weil, Gotshal & Manges LLP Alfredo R. Perez, Weil, Gotshal & Manges LLP Transaction of the Year: Large Company - AgFeed Industries, Inc & AgFeed USA, LLC Justine A. Mannering, Business Development Asia LLC Rafael X. Zahralddin, Elliott Greenleaf Selig D. Sacks, Foley & Lardner LLP Jeffrey D. Prol, Lowenstein Sandler LLP Keith A. Maib, Mackinac Partners LLC Matt Beresh, Mackinac Partners LLC Aaron L. Hammer, Sugar Felsenthal Grais & Hammer LLP Robert S. Brady, Young Conaway Stargatt & Taylor LLP Transaction of the Year: Mid-Size Company ? Intelligent Global Pooling Systems (iGPS) Stephen Krawchuk , Crystal Financial LLC Timothy Lawlor, Crystal Financial LLC Rebecca Tarby, Crystal Financial LLC Travis Haynes, Balmoral Funds LLC Robin Nourmand, Balmoral Funds LLC David Shainberg, Balmoral Funds LLC Jonathan Victor, Balmoral Funds LLC Transaction of the Year: Small Company ? TC Global Inc (dba Tully's Coffee Shops) Gayle Bush, Bush Strout & Kornfeld LLP Gene R. Baldwin, CTP, Deloitte CRG Rob Carringer, CTP, Deloitte CRG Michael Juniper, CTP, Deloitte CRG Matthew Farrell, Renovo Capital About the Turnaround Management Association The Turnaround Management Association (TMA) is the leading organization dedicated to turnaround management, corporate restructuring, and distressed investing. Established in 1988, TMA has more than 9,300 members in 49 chapters worldwide, including 31 in North America. Members include turnaround practitioners, attorneys, accountants, advisors, liquidators, executive recruiters, and consultants, as well as academic, government, and judicial employees. ********* 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 ***