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/raid1/www/Hosts/bankrupt/TCR_Public/140823.mbx T R O U B L E D C O M P A N Y R E P O R T E R Saturday, August 23, 2014, Vol. 18, No. 234 Headlines ATLS ACQUISITION: Net Loss Down Further to $830,876 at June 30 DOTS LLC: Incurs $31.68 Million Net Loss at July 5 FAIRMONT GENERAL: Had $6.98 Million in Total Expenses for June FLAT OUT: Reports $384,260 Cash Balance at April 30 FLAT OUT: Cash Balance Down to $38,480 at May 28 FLAT OUT: Posts $7,956 Net Loss at July 2 LABORATORY PARTNERS: Ends June with $1.48 Million Cash LIGHTSQUARED INC: Lists $51.44 Million Net Loss in July LONG BEACH MEDICAL: Incurs $417,454 Net Loss in June NE OPCO: Net Loss Down to $71,274 in July ORECK CORP: Lists $12,250 Net Loss for July PHOENIX PAYMENT: Projects $2.76MM Total Receipts Thru October 2014 PSL-NORTH AMERICA: Incurs $511,345 Net Loss at June 30 RAPID-AMERICAN CORP: Reports $4.69MM Cash Balance at June 30 RAPID-AMERICAN CORP: Posts $4.60MM Cash Balance at July 30 REVEL AC: Projects $109.73MM Total Receipts Thru September 2014 S.B. RESTAURANT: Suffers $2.71 Million Net Loss at July 31 SOUND SHORE: Has $96.35MM Total Shareholders' Equity in June ********* ATLS ACQUISITION: Net Loss Down Further to $830,876 at June 30 -------------------------------------------------------------- ATLS Acquisition, LLC, and its affiliates, on August 6, 2014, filed their monthly operating report for the month of June 2014. The Debtors recorded a net loss of $830,876 over net revenues of $19.98 million for June, a decrease from the $1.10 million net loss incurred for the previous month. The Debtors declared total assets of $135.60 million, total liabilities of $82.23 million, and a total shareholders' equity of $53.36 million. The Debtors started the month with $15.59 million cash. They listed total receipts of $26.39 million and total disbursements of $20.63 million. At month end, the Debtors had $21.35 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/ATLSACQUISITIONjune2014mor.pdf About Liberty Medical Entities that own diabetics supply provider Liberty Medical led by ATLS Acquisition, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-10262) on Feb. 15, 2013, just less than three months after a management buy-out and amid a notice by the lender who financed the transaction that it's exercising an option to acquire the business. Liberty has been in business for 22 years serving the needs of both type 1 and type 2 diabetic patients. Liberty is a mail order provider of diabetes testing supplies. In addition to diabetes testing supplies, the Debtors also sell insulin pumps and insulin pump supplies, ostomy, catheter and CPAP supplies and operate a large mail order pharmacy. Liberty operates in seven different locations and has 1,684 employees. Dennis A. Meloro, Esq., at Greenberg Traurig, LLP, serves as the Debtor's counsel; Ernst & Young LLP to provide investment banking advice; and Epiq Bankruptcy Solutions, LLC, as claims and noticing agent for the Clerk of the Bankruptcy Court. An official committee of unsecured creditors has been appointed in the case and consists of LifeScan, Inc., Abbott Laboratories, and Teva Pharmaceuticals USA, Inc. They are represented by Joseph H. Huston Jr., Esq., Maria Aprile Sawczuk, Esq., and Camille C. Bent, Esq., of Stevens & Lee P.C. as well as Bruce Buechler, Esq., S. Jason Teele, Esq., and Nicole Stefanelli, Esq. of Lowenstein Sandler LLP. The Committee has tapped Mesirow Financial Consulting, LLC, as financial advisors. DOTS LLC: Incurs $31.68 Million Net Loss at July 5 -------------------------------------------------- Dots, LLC, et al., on July 28, 2014, filed a monthly operating report for the period from June 1 through July 5, 2014. The Debtors listed a net loss of $31.68 million for the current reporting period, a large decrease from the $3.39 million net profit recorded at May 31. Reorganization items of $31.28 million incurred for the reporting period contributed to the net loss. At July 5, the Debtors had $8.62 million in total assets, $69.39 million in total liabilities, and a -$60.77 million total shareholders' equity. The Debtors recorded total receipts of $4.28 million and total disbursements of $5.24 million. A copy of the monthly operating report is available at: http://bankrupt.com/misc/DOTSLLCjune-july2014mor.pdf About DOTS LLC Dots is a retailer of fashionable clothing, accessories, and footwear for price-conscious women. Dots provides missy and plus size choices to fashion savvy 25 to 35 year old women at approximately 400 retail stores throughout the Midwest, East, and South United States. Dots' workforce includes 3,500 individuals in their stores, distribution center, and corporate headquarters. Dots, LLC, and its affiliates sought bankruptcy protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 14-11016) on Jan. 20, 2014, to sell some or all of their assets. Lowenstein Sandler LLP serves as counsel to the Debtors. PricewaterhouseCoopers LLP is financial advisor and investment banker. Donlin, Recano & Company, Inc., is the claims and notice agent. As of the Petition Date, the Debtors have outstanding secured debt owed to senior lender Salus Capital Partners, LLC, of which $14.5 million remains outstanding under a revolving facility and $16.1 million is owed under a term facility. The Debtors also have not less than $17 million outstanding under subordinated term loan agreements with Irving Place Capital Partners III L.P. ("IPC") and related entities. Moreover, the Debtors have aggregate unsecured debts of $47.0 million. The Debtors disclosed $51,574,560 in assets and $85,442,656 in liabilities as of the Chapter 11 filing. Salus, the prepetition senior lender and the DIP lender, is represented by Morgan, Lewis & Bockius, LLP. The prepetition subordinated lenders are represented by Okin Hollander & DeLuca, LLP. The Company has arranged to borrow $36 million to keep operating as it reorganizes under court protection. Otterbourg P.C. serves as counsel to the Official Committee of Unsecured Creditors; and FTI Consulting, Inc., serves as its financial advisor. * * * The Debtors' exclusive plan filing deadline is currently extended through Sept. 17, 2014. FAIRMONT GENERAL: Had $6.98 Million in Total Expenses for June -------------------------------------------------------------- Fairmont General Hospital, Inc., and its subsidiaries, on Aug. 6, 2014, filed a monthly operating report for June 2014. The Debtors earned $6.40 million in total income and spent $6.98 million in total expenses for the month. A copy of the monthly operating report is available at: http://bankrupt.com/misc/FairmontGeneral_940_morJune2014.pdf About Fairmont General Hospital Inc. Fairmont General Hospital Inc. and Fairmont Physicians, Inc., which operate a 207-bed acute-care facility in Fairmont, West Virginia, sought Chapter 11 bankruptcy protection (Bankr. N.D. W.Va. Case No. 13-01054) on Sept. 3, 2013. The fourth-largest employer in Marion County, West Virginia, filed for bankruptcy as it looks to partner with another hospital or health system. The Debtors are represented by Rayford K. Adams, III, Esq., and Casey H. Howard, Esq., at Spilman Thomas & Battle, PLLC, in Winston-Salem, North Carolina; David R. Croft, Esq., at Spilman Thomas & Battle, PLLC, in Wheeling, West Virginia, and Michael S. Garrison, Esq., at Spilman Thomas & Battle, PLLC, in Morgantown, West Virginia. The Debtors' financial analyst is Gleason & Associates, P.C. The Debtors' claims and noticing agent is Epiq Bankruptcy Solutions. Hammond Hanlon Camp, LLC, has been engaged as investment banker and financial advisor. UMB Bank is represented by Nathan F. Coco, Esq., and Suzanne Jett Trowbridge, Esq., at McDermott Will & Emery LLP. The Committee of Unsecured Creditors is represented by Andrew Sherman, Esq., and Boris I. Mankovetskiy, Esq., at Sills Cummis & Gross P.C. and Kirk B. Burkley, Esq., Bernstein Burkley, P.C. Janet Smith Holbrook, Esq., at Huddleston Bolen LLP, represents the Committee as local counsel. The Bankruptcy Court has named Suzanne Koenig at SAK Management Services, LLC, as patient care ombudsman. Ms. Koenig has hired her own firm as medical operations advisor; and Greenberg Traurig, LLP, as her counsel. The Debtors have scheduled $48,568,863 in total assets and $54,774,365 in total liabilities. FLAT OUT: Reports $384,260 Cash Balance at April 30 --------------------------------------------------- Flat Out Crazy, LLC, on July 25, 2014, filed their monthly operating report for the period from April 3 to 30, 2014. The Debtor reported a net loss of $11,308 on zero revenue for the current reporting period, an increase from the $5,375 net loss incurred at April 2. The Debtor declared $831,588 in total assets, $2.43 million in total liabilities, and -$1.60 million in total shareholders' equity. The Debtor had a cash balance of $385,568 at April 3. It listed $10,000 in total receipts and $11,308 in total disbursements. At April 30, the Debtor had $384,260 cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/FLATOUTApril2014mor.pdf About Flat Out Crazy Flat Out Crazy LLC and its affiliates operate two Asian-inspired restaurant chains that began in Chicago. Flat Top Grill, which currently has 15 locations, is a full-service fast-casual create- your-own stir-fry concept. Stir Crazy Fresh Asian Grill, which has 11 locations, is a full-service casual Asian restaurant offering the flavors of Chinese, Japanese, Thai and Vietnamese food. The Debtors have 1,200 employees. Flat Out Crazy and 13 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 13-22094) in White Plains, New York on Jan. 25, 2013. The Debtors have tapped Squire Sanders (US) LLP as counsel; Kurtzman Carson Consultants, LLC, as claims, noticing and administrative agent; William H. Henrich and Mark Samson from Getzler Henrich as their co-chief restructuring officers; and J.H. Chapman Group, L.L.C, as their investment bankers. The Debtor disclosed $24,339,542 in assets and $15,899,166 in liabilities as of the Chapter 11 filing. An official committee of unsecured creditors has been appointed in the Debtors' cases. The Committee tapped to retain Kelley Drye & Warren LLP as its counsel and CBIZ Accounting, Tax and Advisory of New York, LLC as financial advisor. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed Alan Chapell, as the consumer privacy ombudsman in the Debtors' cases. FLAT OUT: Cash Balance Down to $38,480 at May 28 ------------------------------------------------ Flat Out Crazy, LLC, on July 25, 2014, filed its monthly operating report for the the period from May 1 to 28, 2014. The Debtor recorded a net loss of $6,296 for the month, an improvement from the $11,308 net loss posted at April 30. The Debtor, at May 28, reported total assets of $297,346, total liabilities of $1.90 million, and a total shareholders' equity of -$1.61 million. The Debtor had $384,260 at May 1. It posted total receipts of $188,462 and total disbursements of $534,242. About $527,000 of the disbursements were for vendor deposits and wired payments. At May 28, the Debtor had $38,480 cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/FLATOUTmay14mor.pdf About Flat Out Crazy Flat Out Crazy LLC and its affiliates operate two Asian-inspired restaurant chains that began in Chicago. Flat Top Grill, which currently has 15 locations, is a full-service fast-casual create- your-own stir-fry concept. Stir Crazy Fresh Asian Grill, which has 11 locations, is a full-service casual Asian restaurant offering the flavors of Chinese, Japanese, Thai and Vietnamese food. The Debtors have 1,200 employees. Flat Out Crazy and 13 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 13-22094) in White Plains, New York on Jan. 25, 2013. The Debtors have tapped Squire Sanders (US) LLP as counsel; Kurtzman Carson Consultants, LLC, as claims, noticing and administrative agent; William H. Henrich and Mark Samson from Getzler Henrich as their co-chief restructuring officers; and J.H. Chapman Group, L.L.C, as their investment bankers. The Debtor disclosed $24,339,542 in assets and $15,899,166 in liabilities as of the Chapter 11 filing. An official committee of unsecured creditors has been appointed in the Debtors' cases. The Committee tapped to retain Kelley Drye & Warren LLP as its counsel and CBIZ Accounting, Tax and Advisory of New York, LLC as financial advisor. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed Alan Chapell, as the consumer privacy ombudsman in the Debtors' cases. FLAT OUT: Posts $7,956 Net Loss at July 2 ----------------------------------------- Flat Out Crazy, LLC, on July 29, 2014, filed their monthly operating report for the period from May 29 through July 2, 2014. The Debtor's statement of operations showed a net loss of $7,956 for the current reporting period, a slight increase from the $6,296 net loss incurred at May 28. At July 2, the Debtor declared $212,224 in total assets, zero liabilities, and $212,224 in total shareholders' equity. The Debtor, at May 29, had $38,480 cash. It recorded zero receipts and $7,956 in total disbursements. At July 2, the Debtor had $30,524 cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/FLATOUT-may-july-2014mor.pdf About Flat Out Crazy Flat Out Crazy LLC and its affiliates operate two Asian-inspired restaurant chains that began in Chicago. Flat Top Grill, which currently has 15 locations, is a full-service fast-casual create- your-own stir-fry concept. Stir Crazy Fresh Asian Grill, which has 11 locations, is a full-service casual Asian restaurant offering the flavors of Chinese, Japanese, Thai and Vietnamese food. The Debtors have 1,200 employees. Flat Out Crazy and 13 affiliates sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 13-22094) in White Plains, New York on Jan. 25, 2013. The Debtors have tapped Squire Sanders (US) LLP as counsel; Kurtzman Carson Consultants, LLC, as claims, noticing and administrative agent; William H. Henrich and Mark Samson from Getzler Henrich as their co-chief restructuring officers; and J.H. Chapman Group, L.L.C, as their investment bankers. The Debtor disclosed $24,339,542 in assets and $15,899,166 in liabilities as of the Chapter 11 filing. An official committee of unsecured creditors has been appointed in the Debtors' cases. The Committee tapped to retain Kelley Drye & Warren LLP as its counsel and CBIZ Accounting, Tax and Advisory of New York, LLC as financial advisor. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed Alan Chapell, as the consumer privacy ombudsman in the Debtors' cases. LABORATORY PARTNERS: Ends June with $1.48 Million Cash ------------------------------------------------------ Laboratory Partners, Inc., et al., on Aug. 1, 2014, filed its monthly operating report for June 2014. The Debtors' statement of operations showed a total net loss of $997,445 on net revenues of $3.77 million for the month. At June 30, the Debtors recorded $43.22 million in total assets, $52.99 million in total liabilities, and -$9.77 million in total shareholders' equity. At June 1, the Debtors had a cash balance of $2.18 million. They listed total receipts of $7.28 million and total disbursements of $7.97 million for the month. The disbursements include $591,783 in professional fees. At the end of the month, the Debtor had $1.48 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/LABORATORYPARTNERSjune2014mor.pdf About Laboratory Partners Laboratory Partners Inc., a Cincinnati-based provider of lab and pathology services, and several affiliates filed petitions for Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12769) on Oct. 25, 2013, in Delaware. In its assets, the Debtor disclosed $43,034,702.91 in total assets and at least $132,357,067.42 (plus unknown) in total liabilities. The debtor-affiliates are Kilbourne Medical Laboratories, Inc., MedLab Ohio, Inc., Suburban Medical Laboratory, Inc., Biological Technology Laboratory, Inc., Terre Haute Medical Laboratory, Inc., and Pathology Associates of Terre Haute, Inc. Certain of the Debtors do business as MEDLAB. Judge Peter J. Walsh presides over the case. The Debtors are represented by Robert J. Dehney, Esq., Derek C. Abbott, Esq., Andrew R. Remming, Esq., and Ann R. Fay, Esq., at Morris, Nichols, Arsht, and Tunnell, LLP in Wilmington, Delaware; and Leo T. Crowley, Esq., Jonathan J. Russo, Esq., and Margot Erlich, Esq., at Pillsbury, Winthrop, Shaw, Pittman, LLP in New York, NY. BMC Group Inc. serves as claims and administrative agent. Duff & Phelps Securities LLC serves as the Debtors' investment bankers. The Official Committee of Unsecured Creditors has retained Otterbourg P.C., as Lead Co-Counsel; Klehr Harrison Harvey Branzburg LLP as Delaware Counsel; and Carl Marks Advisory Group LLC, as financial advisors. In March 2014, the Bankruptcy Court authorized the Debtors to sell their so-called "Talon Division," which refers to the clinical laboratory and anatomic pathology services to (i) physicians, physician officers and medical groups in Indiana, Illinois, and (ii) Union Hospital, Inc., in Terre Haute and Clinton, Indiana, to Laboratory Corporation of America Holdings for $10.5 million. An auction was cancelled after the Debtors received no competing bid during the bid deadline. The Court also authorized the Debtors to sell certain of their assets relating to their nuclear medicine business to Union Hospital, Inc. In June 2014, the Debtors won Court approval to sell its long-term care (LTC) division to Amerathon LLC for a $5.5 million credit bid. Amerathon is a joint venture between American Health Associates, Inc., and the Debtor's prepetition senior secured lender. On July 10, 2014, Judge Walsh confirmed the Debtors' First Amended Joint Chapter 11 Plan. The implementation an execution of the Plan includes the effectuation of the transaction contemplated by the asset purchase agreement involving the Debtors' Long Term Care division; the dissolution of the Debtors; the eventual vesting of the remaining assets in the LPI Plan Trust, which will be liquidated and distributed in accordance with the Plan terms. LIGHTSQUARED INC: Lists $51.44 Million Net Loss in July ------------------------------------------------------- LightSquared Inc., et al., filed on August 15, 2014, a monthly operating report for the month ended July 31, 2014. The Company reported a net loss of $51.44 million on net revenue of $1.65 million for July, as compared to a $53.82 million net loss for the previous month. As of July 31, 2014, the Company had total assets of $3.588 billion, total liabilities of $3.262 billion, and total stockholders' equity of $325.68 million. At the beginning of the month, LightSquared had $22.75 million in cash. The Company had total cash receipts of $2.17 million and total cash disbursements of $9.06 million for July. As a result, at the end of July, the Company had total cash of $15.86 million. A full-text copy of the July monthly operating report is available at http://is.gd/FAuprU About LightSquared Inc. LightSquared Inc. and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on May 14, 2012, to resolve regulatory issues that have prevented it from building its coast-to-coast integrated satellite 4G wireless network. LightSquared had invested more than $4 billion to deploy an integrated satellite-terrestrial network. In February 2012, however, the U.S. Federal Communications Commission told LightSquared the agency would revoke a license to build out the network as it would interfere with global positioning systems used by the military and various industries. In March 2012, the Company's partner, Sprint, canceled a master services agreement. LightSquared's lenders deemed the termination of the Sprint agreement would trigger cross-defaults under LightSquared's prepetition credit agreements. LightSquared and its prepetition lenders attempted to negotiate a global restructuring that would provide LightSquared with liquidity and runway necessary to resolve its issues with the FCC. Despite working diligently and in good faith, however, LightSquared and the lenders were not able to consummate a global restructuring on terms acceptable to all interested parties. Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to the Debtors. Alvarez & Marsal North America, LLC, is the financial advisor. Kurtzman Carson Consultants LLC serves as claims and notice agent. LONG BEACH MEDICAL: Incurs $417,454 Net Loss in June ---------------------------------------------------- Long Beach Medical Center, on July 22, 2014, filed its monthly operating report for the month of June 2014. The Debtor incurred a net loss of $417,454 over net revenues of $66,747 for the month. At June 30, the Debtor had $35.15 million in total assets, $81.41 million in total liabilities, and a total shareholders' equity of -46.26 million. The Debtor started June with a cash balance of $4.18 million. It listed total receipts of $945,214 and total disbursements of $1.22 million. At month end, the Debtor had $3.90 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/LONGBEACHjune2014mor.pdf About Long Beach Medical Center Long Beach Medical Center, formerly Long Beach Memorial Hospital, was a 162-bed, community-based hospital offering primary, acute, emergency and long-term health care to residents of Long Beach, New York. Founded in 1922, LBMC was a teaching facility for the New York College of Osteopathic Medicine. LBMC was shut down after superstorm Sandy devastated the hospital in October 2012. Long Beach Memorial Nursing Home Inc, runs the The Komanoff Center for Geriatric and Rehabilitative Medicine, a 200-bed skilled nursing facility affiliated with LBMC. It provides services for residents requiring long term nursing home care and short term post-acute (sub-acute) care. Currently there are 127 residents of Komanoff. Long Beach Medical Center and Long Beach Memorial Nursing Home d/b/a The Komanoff Center for Geriatric and Rehabilitative Medicine, sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case Nos. 14-70593 and 14-70597) on Feb. 19, 2014. Long Beach Medical Center scheduled $17,400,606 in total assets and $84,512,298 in total liabilities. Garfunkel Wild P.C. serves as the Debtors' counsel. GCG, Inc., is the Debtors' claims and noticing agent. The Hon. Alan S. Trust presides over the cases. The U.S. Trustee has appointed three members to the official committee of unsecured creditors. The panel retained Klestadt & Winters, LLP, led by Sean C. Southard, Esq., as counsel. * * * In May 2014, Long Beach Medical Center was sold at auction to two buyers. South Nassau Communities Hospital originally offered $21 million for both the hospital and the affiliated 200-bed Komanoff nursing home. South Nassau won the hospital auction with a bid of $10.25 million, plus the assumption of $1 million in employee liabilities. South Nassau will sell the hospital's equipment and guarantee Long Beach at least $500,000. The nursing home went to several individuals for $15.6 million, plus assumption of employee liabilities and as much as $1.1 million in known or unknown health-care program debt. As a breakup fee, South Nassau receives $450,000 and repayment of as much as $4.5 million in loans it made to finance the Chapter 11 case. NE OPCO: Net Loss Down to $71,274 in July ----------------------------------------- NE Opco, Inc., dba National Envelope, and its debtor-affiliates, on Aug. 13, 2014, filed their monthly operating report for the month of July 2014. The Debtors posted a net loss of $71,274 for July, an increase from the $40,403 net loss incurred for the previous month. As of July 31, the Debtors had total assets of $1.26 million, total liabilities of $135.91 million, and a $134.65 million total shareholders' deficit. The Debtors started the July with $1.25 million cash. They listed $322,051 net cash used in operating activities. At month end, the Debtors had $931,236 cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/NEOpco_771_morJuly2014.pdf About NE OPCO, Inc. National Envelope is the largest privately-held manufacturer of envelopes in North America. Headquartered in Frisco, Texas, National Envelope has eight plants and 15 percent of the envelope market. Revenue of $427 million in 2012 resulted in a $60.1 million net loss, continuing an unbroken string of losses since 2007. NE OPCO, Inc., doing business as National Envelope, along with affiliate NEV Credit Holdings, Inc., filed petitions seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-11483) on June 10, 2013. The company disclosed liabilities including $148.4 million in secured debt, with $37.5 million owing on a revolving credit and $15.6 million on a secured term loan. There is a $55.7 million second-lien debt 82 percent held by a Gores Group LLC affiliate. National Envelope, then known as NEC Holdings Corp., first sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 10-11890) on June 10, 2010. The business was bought by Gores Group LLC for $208 million in a bankruptcy sale. National Envelope, through NE OPCO, has returned to bankruptcy to pursue a plan of reorganization or sell the assets as a going concern via 11 U.S.C. Sec. 363. The Debtor plans to facilitate a sale of the business with publicly traded competitor Cenveo Inc. In the 2013 case, the company tapped the law firm Richards, Layton & Finger as counsel, PricewaterhouseCoopers LLP as financial adviser, and Epiq Bankruptcy Solutions as claims and notice agent. The Gores Group is represented by Weil, Gotshal and Manges LLP and Lowenstein Landler LLP. Salus Capital Partners, the DIP agent, is represented by Choate, Hall & Stewart LLP and Morris Nichols Arsht & Tunnell LLP. Wells Fargo Capital Finance, LLC, the prepetition senior agent, is represented by Goldberg Kohn Ltd and DLA Piper. The Official Committee of Unsecured Creditors is represented by Pachulski Stang Ziehl & Jones LLP's Laura Davis Jones, Esq., Bradford J. Sandier, Esq., Robert J. Feinstein, Esq., and Peter J. Keane, Esq. Guggenheim Securities, LLC, serves as its investment banker and financial advisor. National Envelope won court approval on July 19, 2013, for a global settlement permitting a sale of the company without objection from the official unsecured creditors' committee. The settlement ensures some recovery for unsecured creditors. The Company also won final approval for $67.5 million in bankruptcy financing being supplied by Salus Capital Partners LLC. Judge Christopher Sontchi authorized three buyers to acquire National Envelope's business for a total of about $70 million. Connecticut-based printer Cenveo Inc. acquired National Envelope's operating assets for $25 million, Hilco Receivables LLC picked up accounts receivable for $25 million and Southern Paper LLC took on its inventory for $15 million. ORECK CORP: Lists $12,250 Net Loss for July ------------------------------------------- Oreck Corporation, et al., on August 5, 2014, filed their monthly operating report for July 2014. Oreck Corp. incurred a net loss of $12,250 in July. Oreck Corp. declared total assets of $7.21 million, total current liabilities of $3.47 million, and a total shareholders' equity of $3.73 million. Oreck Corp. had a cash balance of $4,478,395 at July 1. They posted total receipts of $21,744 and total disbursements of $16,541. At the end of the month, Oreck Corp. had $4,483,599 cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/Oreck_1421_morJuly2014.pdf About Oreck Corp. Oreck Corporation and eight affiliates sought Chapter 11 protection (Bankr. M.D. Tenn. Lead Case No. 13-04006) in Nashville, Tennessee, on May 6, 2013, with plans to sell the business as a going concern. Oreck has been in the business of manufacturing, marketing and selling vacuum cleaners and related products since the late 1960s. The corporate offices are located in Nashville, and the manufacturing and call center is located in Cookeville, Tennessee. Oreck has 70 employees in Nashville, 250 employees at its plant in Cookeville and 325 employees operating 96 company-owned and managed retail stores. The Debtor disclosed $18,013,249 in assets and $14,932,841 plus an unknown amount in liabilities as of the Chapter 11 filing. William L. Norton III, Esq., and Alexandra E. Dugan, Esq., at Bradley Arant Boult Cummings LLP, serve as counsel to the Debtor. BMC Group Inc. is the claims and notice agent. Sawaya Segalas & Co., LLC serves as financial advisor. The U.S. Trustee appointed six creditors to the Official Committee of Unsecured Creditors. Daniel H. Puryear, Esq., at Puryear Law Group, and Sharon L. Levine, Esq., and Kenneth A. Rosen, Esq., at Lowenstein Sandler LLP represent the Committee. The Committee tapped to retain Gavin/Solmonese LLC as its financial advisor. In July 2013, Royal Appliance Mfg. Co. (RAM), a subsidiary of the TTI Group, finalized the purchase of Oreck Corp.'s assets. The Bankruptcy Court approved the sale on July 16, 2013. Royal, the maker of Dirt Devil floor-care products, won the auction for Oreck Corp. The second-place bidder was the Oreck family, which sold the business in a $272 million transaction in 2003. The Oreck family made the first bid at auction at $21.9 million, including $14.5 million cash. The terms of Royal's winning bid weren't disclosed publicly, according to a Bloomberg News report. Royal was acquired in 2003 by Hong Kong-based Techtronic Industries Co., the maker of Hoover vacuum cleaners. PHOENIX PAYMENT: Projects $2.76MM Total Receipts Thru October 2014 ------------------------------------------------------------------ Phoenix Payment Systems, Inc., filed an initial monthly operating report on August 18, 2014. The Initial MOR contained a cash flow projection for the 13-week period covering the week ending August 8, 2014, through the week ending October 31, 2014. The Debtor projects receipts to total $2.76 million; disbursements (Non-Backlog) to total $2.54 million; and non-operating disbursements to total $1.88 million for the 13-week period. The disbursements include $855,624 in current payroll, $129,487 in rent, and $225,000 in current referral fees. The Initial MOR also includes a schedule of retainers paid to professionals. Among the Debtor's bankruptcy professionals are Richards, Layton & Finger, PMCM, and Rust Omni. A copy of the Initial MOR is available at: http://bankrupt.com/misc/PhoenixPayment_74_mor.pdf About Phoenix Payment Founded in 2004, Phoenix Payment Systems, Inc., aka Electronic Payment Systems, aka EPX, is an international payment processor with corporate headquarters in Wilmington, Delaware, and technology headquarters in Phoenix, Arizona. It provides acceptance, processing, support, authorization and settlement services for credit card, debit card and e-check payments. Providing processing services at more than 8,700 locations worldwide, PPS processed, in multiple currencies, 280 million transactions in 2013 and expects to process 400 million in 2014. Phoenix Payment Systems sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 14-11848) on Aug. 4, 2014, to quickly sell its assets. As of the Petition Date, the Debtor had total outstanding liabilities and other obligations of $16.6 million and 9.8 million shares of outstanding preferred and common stock. Debt to secured creditor The Bancorp Bank is estimated at $6.2 million. Judge Mary F. Walrath presides over the case. The Debtor's attorneys are Richard J. Bernard, Esq., at Foley & Lardner LLP, in New York; and Mark D. Collins, Esq., Russell Siberglied, Esq., Zachary I Shapiro, Esq., and Marisa A. Terranova, Esq., at Richards Layton & Finger, P.A., in Wilmington, Delaware. The Debtor's banker and financial advisor is Raymond James & Associates, Inc., while Bederson, LLC, is the Debtor's accountant. PMCM, LLC, provides advisory services and executive leadership to the Debtor. The Debtor's claims and noticing agent is Omni Management Group, LLC. PSL-NORTH AMERICA: Incurs $511,345 Net Loss at June 30 ------------------------------------------------------ PSL-North America LLC, on Aug. 1, 2014, filed a monthly operating report for period from June 16 to June 30, 2014. The Debtor incurred a net loss of $511,645 on zero revenue for the period. The Debtor posted total assets of $120.78 million, total liabilities of $134.08 million, and a total shareholders' equity of -$13.30 million. The Debtor had $141,728 cash at June 16. It posted $1.90 million in total receipts and $1.01 million in total disbursements. At June 30, the Debtors had $1.03 million cash. Less $141,728 in prepetition cash, the Debtors had available cash of $888,454 at the end of the month. A copy of the monthly operating report is available at: http://bankrupt.com/misc/PSL-NORTHAMERICAjune2014mor.pdf About PSL-North America Founded in 2006, PSL-North America LLC is a manufacturer and coater of large diameter steel pipes. The company has a state-of- the-art facility located in Bay St. Louis, Mississippi, with the land leased for 99 years. The company is an American-based partially owned subsidiary of India's largest producer and manufacturer of steel piping, PSL Limited. On June 16, 2014, PSL-North America LLC and PSL USA Inc., filed voluntary Chapter 11 petitions in Delaware. Their cases are jointly administered under Lead Case No. 14-11477 and have been assigned to Judge Peter J. Walsh. PSL-North America LL disclosed $93,343,085 in assets and $204,025,409 in liabilities as of the Chapter 11 filing. As of the Petition Date, the company had total outstanding debt obligations of $130 million, according to a court filing. Counsel for the Debtor are John H. Knight, Esq., Paul N. Heath, Esq., Tyler D. Semmelman, Esq., Amanda R. Steele, Esq. and William A. Romanowicz, Esq. at Richards, Layton & Finger, P.A. of Wilmington, Delaware. Duff & Phelps Securities, LLC acts as investment banker and financial advisor. Epiq Bankruptcy Solutions serves as claims agent. RAPID-AMERICAN CORP: Reports $4.69MM Cash Balance at June 30 ------------------------------------------------------------ Rapid-American Corporation, on July 8, 2014, filed its monthly operating report for the month of June 2014. The Debtor posted a total income of $124 for the month. The Debtor had $4.87 million cash at the beginning of the month. It recorded total disbursements of $176,548, of which $145,248 were spent for professional fees. As a result, the Debtor had $4.69 million cash at the end of the month. A copy of the monthly operating report is available at: http://bankrupt.com/misc/RAPID-AMERICANjune2014mor.pdf About Rapid-American Corp. Rapid-American Corp. filed for Chapter 11 bankruptcy protection in Manhattan (Bankr. S.D.N.Y. Case No. 13-10687) on March 8, 2013, to deal with debt related to asbestos personal-injury claims. New York-based Rapid-American was formerly a holding company with subsidiaries primarily engaged in retail sales and consumer products and was never engaged in an asbestos business of any kind. Through a series of merger transactions going back more than 45 years, Rapid has nevertheless incurred successor liability for personal injury claims arising from plaintiffs' exposure to asbestos-containing products sold by The Philip Carey Manufacturing Company -- Old Carey -- as that entity existed prior to June 1, 1967. Attorneys at Reed Smith LLP serve as counsel to the Debtor. The Debtor disclosed assets in excess of $4,446,261 and unknown liabilities. The Official Committee of Unsecured Creditors retained Caplin & Drysdale, Chartered, as counsel. Gilbert LLP serves as special insurance counsel. Young Conaway Stargatt & Taylor, LLP, represents Lawrence Fitzpatrick, the Future Claimants' Representative, as counsel. RAPID-AMERICAN CORP: Posts $4.60MM Cash Balance at July 30 ---------------------------------------------------------- Rapid-American Corporation filed, on Aug. 13, 2014, a monthly operating report for the month of July 2014. The Debtor reported a total income of $116 for the month. The Debtor had a cash balance of $4.69 million at the beginning of the month. They posted total dibursements of $91,041. Professional fees incurred total $41,191. At the end of the month, the Debtor had $4.60 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/RAPID-AMERICANjuly2014mor.pdf About Rapid-American Corp. Rapid-American Corp. filed for Chapter 11 bankruptcy protection in Manhattan (Bankr. S.D.N.Y. Case No. 13-10687) on March 8, 2013, to deal with debt related to asbestos personal-injury claims. New York-based Rapid-American was formerly a holding company with subsidiaries primarily engaged in retail sales and consumer products and was never engaged in an asbestos business of any kind. Through a series of merger transactions going back more than 45 years, Rapid has nevertheless incurred successor liability for personal injury claims arising from plaintiffs' exposure to asbestos-containing products sold by The Philip Carey Manufacturing Company -- Old Carey -- as that entity existed prior to June 1, 1967. Attorneys at Reed Smith LLP serve as counsel to the Debtor. The Debtor disclosed assets in excess of $4,446,261 and unknown liabilities. The Official Committee of Unsecured Creditors retained Caplin & Drysdale, Chartered, as counsel. Gilbert LLP serves as special insurance counsel. Young Conaway Stargatt & Taylor, LLP, represents Lawrence Fitzpatrick, the Future Claimants' Representative, as counsel. REVEL AC: Projects $109.73MM Total Receipts Thru September 2014 --------------------------------------------------------------- Revel AC, LLC, filed an initial monthly operating report on July 7, 2014. The Initial MOR contained a cash flow projection for the 13-week period covering the week ending June 29, 2014 through the week ending September 21, 2014. The Debtors project receipts to total $109.73 million and disbursments to total $125.79 million for the 13-week period. The disbursements include $48 million in currency purchases; $29.07 million in payroll, payroll taxes and benefits; and $9.40 million in taxes and fees. A copy of the Initial MOR is available at: http://bankrupt.com/misc/REVELACmor.pdf.pdf 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. S.B. RESTAURANT: Suffers $2.71 Million Net Loss at July 31 ---------------------------------------------------------- S.B. Restaurant Co., et al., on Aug. 14, 2014, filed their monthly operating report for the period from June 16 through July 31, 2014. The Debtors suffered a net loss of $2.71 million on total sales of $12.03 million for the current reporting period. As of July 27, the Debtors had $47.33 million in total assets, $78.71 million in total liabilities, and a total shareholders' equity of -$31.38 million. A copy of the monthly operating report is available at: http://bankrupt.com/misc/SBRESTAURANTjune-july2014mor.pdf About S.B. Restaurant Co. S.B. Restaurant Co. dba Elephant Bar Global Grill/Wok Kitchen, now a chain of 29 restaurants in seven states, filed a petition for Chapter 11 protection (Bankr. C.D. Cal. Case No. 14-13778) on June 17, 2014, in Santa Ana, California. The case is assigned to Judge Erithe A. Smith. The Debtors' counsel is Jeffrey N Pomerantz, Esq., and John W. Lucas, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, California. The Debtors' chief restructuring officers are from Deloitte Transactions & Business Analytics LLP, while their investment banker is Mastodon Ventures, Inc. The Debtors' noticing claims and balloting agent is Rust Consulting Omni Bankruptcy. An official committee of unsecured creditors was appointed in the case of S.B. Restaurant Co. Debtors' cases. The panel comprises of (1) General Growth Properties Inc., c/o Julie Minnick Bowden of Chicago, IL; (2) The Macerich Company, c/o Bill Palmer of Pittsford, NY; and (3) Global Media Group c/o Mark Torres of Rancho Santa Margarita, CA. The Committee retained Cooley LP as its counsel. SOUND SHORE: Has $96.35MM Total Shareholders' Equity in June ------------------------------------------------------------ Sound Shore Medical Center of Westchester and its affiliates filed, on August 5, 2014, filed an operating report for the month of June 2014. At June 30, the Debtors had total assets of $54.02 million, total liabilities of $150.37 million, and total shareholders' equity of -$96.35 million. A copy of the monthly operating report is available at: http://bankrupt.com/misc/SoundShoreMedicalMORjune2014.pdf About Sound Shore Medical Center Sound Shore Medical Center of Westchester, Mount Vernon Hospital Inc., Howe Avenue Nursing Home and related entities sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 13-22840) on May 29, 2013, in White Plains, New York. The Debtors were the largest "safety net" providers for Southern Westchester County in New York. Affiliated with New York Medical College, Sound Shore is a not-for-profit 242-bed, community based- teaching hospital located in New Rochelle, New York. Mountain Vernon Hospital is a voluntary, not-for-profit 176-bed hospital located in Mount Vernon, New York. Howe Avenue Nursing Home is a 150-bed, comprehensive facility. The Debtors tapped Burton S. Weston, Esq., at Garfunkel Wild, P.C. as counsel; Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors; and GCG Inc., as claims agent. Alston & Bird LLP represents the Official Committee of Unsecured Creditors. Deloitte Financial Advisory Services LLP serves as the Committee's as financial advisor. Sound Shore disclosed assets of $159.6 million and liabilities totaling $200 million. Liabilities include a $16.2 million revolving credit and a $5.8 million term loan with Midcap Financial LLC. There is $9 million in mortgages with Sun Life Assurance Co. of Canada (US) and $11.5 million owing to the New York State Dormitory Authority. Neubert, Pepe & Monteith, P.C., represents Daniel T. McMurray, the patient care ombudsman for Sound Shore. The Debtors filed for bankruptcy to sell their assets, including their hospital and nursing home operations, to the Montefiore health system. On Aug. 8, 2013, the Bankruptcy Court entered an order, as affirmed and ratified by a Supplemental Sale Order entered on Oct. 15, 2013, approving the sale to Montefiore New Rochelle Hospital, Inc., Schaffer Extended Care Center, Inc., Montefiore Mount Vernon Hospital, Inc. and certain related affiliates. In June 2013, Montefiore added $4.75 million to its purchase offer to speed up the sale. Montefiore raised its bid to $58.75 million plus furniture and equipment as part of a request for a private sale of the hospitals. On Nov. 6, 2013 at 12:01 a.m., the closing of the Sale occurred and the sale became effective. Montefiore is represented by Togut, Segal & Segal LLP. ********* 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. 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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. 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