/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/140825.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, August 25, 2014, Vol. 18, No. 236 Headlines 21ST CENTURY ONCOLOGY: Incurs $207.5MM Net Loss in 2nd Quarter 710 MARIPOSA: Knowledge of Case No Substitute for Proper Service ADAMIS PHARMACEUTICALS: Raised $5 Million From Private Placement ADELPHI ACADEMY: Can Retain Robinson Brog as Bankruptcy Counsel ADELPHI ACADEMY: Has Final Authorization to Use Collateral AGFEED INDUSTRIES: Has Until Sept. 15 to File Plan ALPHA NATURAL: Bank Debt Trades at 6% Off AM GENERAL: S&P Affirms 'CCC' CCR & Removes From CreditWatch Pos. AMERICAN AIRLINES: Settles 99% of Creditor Claims AMERICAN MEDIA: Incurs $12 Million Net Loss in Fiscal Q1 AMERICAN MEDIA: New Owners Plan to Convert $121MM Debt to Equity AMERICAN MEDIA: JPMorgan, Lenders Waive Reporting Requirements ARCH COAL: Bank Debt Trades at 3% Off ASHER INVESTMENT: Debunks Itkin's Objection to Counsel Hiring BANK OF THE CAROLINAS: Posts $599,000 Net Income in 2nd Quarter BATE LAND: Has Until October 1 to Obtain Plan Confirmation BE ACTIVE HOLDINGS: Needs Capital to Pay Off Expenses BINGO.COM LTD: Posts $350-K Net Loss for Q2 Ended June 30 BIOFUEL ENERGY: Amends Rights Offering Prospectus BIOLIFE SOLUTIONS: Amends Lease Agreement With Monte Villa BLUE RIDGE LIMOUSINE: Financial Consultant's Final Fee Okayed BON-TON STORES: Incurs $36.2 Million Net Loss in Second Quarter BOOMERANG SYSTEMS: Extends Exchange Offer Expiration to Oct. 15 CABLEVISION SYSTEMS: Bank Debt Trades at 2% Off CAESARS ENTERTAINMENT: Bank Debt Trades at 3% Off CASCADE AG: Reorganization Case Converted to Chapter 7 CASPIAN SERVICES: Incurs $1.9 Million Net Loss in June 30 Qtr CEETOP INC: Reports $232,000 Net Loss During Second Quarter CHAPPEL FAMILY: Involuntary Chapter 11 Case Summary CHRISTIAN CARE: S&P Lowers Rating on Revenue Debt to 'BB-' CHOICE GENETICS: Bankruptcy Judge Confirms Ch. 11 Plan CLOUDEEVA INC: Bartronics Asia Wants Case Dismissed CLOUDEEVA INC: Court Okays Payment of Critical Vendors' Claims CLOUDEEVA INC: Has Final Okays Financing From Prestige Capital CLOUDEEVA INC: Taps Lowenstein Sandler as Bankruptcy Counsel CLOUDEEVA INC: Taps Punhani to Handle Matters of Immigration Law COATES INTERNATIONAL: Up to 40 Million Common Shares for Resale COCRYSTAL PHARMA: Phillip Frost Reports 47.8% Equity Stake COLOREP INC: Court Dismisses Chapter 11 Cases COMMACK HOSPITALITY: Plan Confirmation Hearing on Oct. 1 COMPETITIVE TECHNOLOGIES: Now Known as Calmare Therapeutics CONSTRUCTORA DE HATO: Fails to File Plan; Case Dismissed CRAILAR TECHNOLOGIES: Incurs $1.96-Mil. Loss in June 28 Quarter CRUNCHIES FOOD: Seeks Authority to Use Cash Collateral CRUNCHIES FOOD: Section 341(a) Meeting Scheduled for Sept. 18 DETROIT, MI: Modifies Plan To Incorporate DWSD Bonds Tender DIGITAL DOMAIN: Can Probe Avoidance Actions Until Sept. 11 DIOCESE OF GALLUP: Searches for Insurance Coverage DOUGLAS RAY: Summary Judgment Ruling Against Battle Ground Upheld DOWNER DOWNS: Reports $164-K Net Earnings in Q2 Ended June 30 DREIER LLP: Convicted Ex-Lawyer Called to Testify in Court DYNEGY INC: To Buy Assets From Duke, Energy Capital for $6.25B ECOTALITY INC: Opposes Competing Plan From Car Charging Group EDENOR SA: Earns ARS15.8 Million in Second Quarter ELBIT IMAGING: Novartis to Invest $35 Million in Gamida ENGLOBAL CORP: Amends Form 10-Q Report for Q2 to Correct Errors ENTEGRA POWER: Wants to Hire O'Melveny & Myers as Attorney ENTEGRA POWER: Seeks to Employ KPMG as Auditor & Tax Consultant ENTEGRA POWER: Taps Houlihan Lokey as Financial Advisor ERF WIRELESS: Incurs $988,000 Net Loss in Second Quarter ESSAR STEEL: CSX Transportation Opposes Delaware Chapter 15 ESSAR STEEL: Seeks Recognition of Canadian Court Order FLURIDA GROUP: Posts $355-K Net Income in June 30 Quarter FOREST OIL: S&P Retains 'B-' CCR on CreditWatch Positive GENERAL MOTORS: Plaintiffs Want Recall Suit to Move Forward GENERAL MOTORS: Massive Recalls Put Strain on Dealers GENIUS BRANDS: Inks $2 Million Revolving Loan With SunTrust GETTY IMAGES: Bank Debt Trades at 6% Off GIBSON ENERGY: Moody's Hikes Sr. Unsecured Notes Rating to 'Ba2' GLYECO INC: Reports $1.6 Million Revenue in Second Quarter GOLDEN PHOENIX: Reports $2.33-Mil. Net Income for Second Quarter GREENSHIFT CORP: June 30 Balance Sheet Upside-Down by $39MM HAWAII OUTDOOR: Has 16th Interim Cash Collateral Order HAWAII OUTDOOR: First-Citizens Bank Seeks Case Dismissal HCSB FINANCIAL: Has $74,000 Net Loss in Q2 Ended June 30 HEALTHWAREHOUSE.COM INC: Incurs $439,000 Net Loss in Q2 HERCULES OFFSHORE: Files Fleet Status Report as of Aug. 20 HERON THERAPEUTICS: Incurs $19.01-Mil. Net Loss in June 30 Quarter HORIZON LINES: Okays Amendments to Stock Unit Agreements HR BETTY: Voluntary Chapter 11 Case Summary INDEPENDENCE TAX IV: Incurs $123,000 Net Loss in June 30 Quarter INFINITY ACQUISITION: S&P Assigns 'B' CCR; Outlook Stable INTERNATIONAL RECTIFIER: Fitch Puts 'BB' IDR on Positive Watch JAMES RIVER COAL: Sells 3 Mining Complexes to Blackhawk for $52MM JAMES RIVER COAL: Unit Seeks to Buy EQT Assets for $4 Million JAMES RIVER COAL: Hiring Byron Advisors' William Murphy as CRO KENT ALLEN WOODS: Court Denies Zaragoza's Bid for Stay Relief LEHMAN BROTHERS: SkyPower, Not Its Shareholders, Can File Claim LEO MOTORS: Sells Convertible Promissory Notes LIGHTSQUARED INC: Judge Conditionally Approves Plan Outline LIQUIDMETAL TECHNOLOGIES: Posts $2.51-Mil. Loss in June 30 Quarter LUTHERAN HOMES: S&P Affirms 'BB+' Rating on Improvement Bonds LENNAR CORP: Fitch Affirms 'BB+' Issuer Default Rating MACKEYSER HOLDINGS: Names Hammond Hanlon as Investment Banker MACKEYSER HOLDINGS: Court Approves Cole Schotz as Counsel MACKEYSER HOLDINGS: Can Hire GlassRatner as Financial Advisor MARTIFER AURORA: Wants Plan Filing Deadline Moved to Oct. 3 MARTIFER AURORA: Taps Heritage as Auctioneer of Excess Inventory MASHANTUCKET PEQUOT: Moody's Cuts CFR to Caa3 on Covenant Default MEDICAL IMAGING: Incurs $9,000 Net Loss for Q2 Ended June 30 MOMENTIVE PERFORMANCE: Judge Urges Settlement on Ch. 11 Plan N-VIRO INTERNATIONAL: Reports $376K Net Loss During 2nd Quarter NEW MILLENNIUM MANAGEMENT: Corral Tran Singh Allowed $3,880 Fee NMBFIL INC: Court Confirms Protections of Sec. 362 NEWLEAD HOLDINGS: Asher Enterprises No Longer a Shareholder NEWLEAD HOLDINGS: Inronridge Sought Add'l 6MM Common Shares ORIENT PAPER: Seeking to Raise Funds to Pay Off Debt ORO EAST MINING: Incurs $694K Net Loss for Second Quarter PACIFIC GOLD: Incurs $695,000 Second Quarter Net Loss PETROSONIC ENERGY: Has $552K Net Loss for Q2 Ended June 30 PFS HOLDING: Moody's Puts 'B2' CFR on Review for Downgrade PILOT TRAVEL: Moody's Affirms 'Ba2' Corporate Family Rating PLY GEM HOLDINGS: To Buy Simonton Windows From Fortune Brands PURADYN FILTER: Posts $251K Net Loss in June 30 Quarter QUEST SOLUTION: Launches New Intellectual Property Division REVEL AC: Final DIP Financing Hearing Moved to Aug. 28 RICEBRAN TECHNOLOGIES: Posts $15.7-Mil. Net Loss in Second Quarter RONALD W. DEMASI: Court Rules on Motion to Substitute Plaintiff SALLY BEAUTY: New $1BB Share Repurchase No Impact on Moody's CFR SALUBRIOUS PHARMACEUTICAL: Section 341(a) Meeting Set on Sept. 16 SAMARITAN ALLIANCE: Entitled to $340,397 in Medicaid Underpayment SEARS HOLDINGS: Widens Net Loss to $573 Million in 2nd Quarter SID #521, DOUGLAS COUNTY: Chapter 9 Case Summary & Top Creditors SNOWDEN PROPERTIES: Case Summary & 3 Largest Unsecured Creditors SUSQUEHANNA BANK: Moody's Hikes Preferred Shelf rating to (P)Ba2 TAMM OIL: Incurs $35,000 Net Loss for June 30 Quarter TERRA TECH: Reports $4.55-Mil. Net Loss in Q2 Ended June 30 TOUCHPOINT METRICS: Has Profit in 1st Half Following 2013 Loss TOYS R US: Bondholders Form Group to Seek Covenant Relief TRANS ENERGY: Presented at Enercom's Oil & Gas Conference TUNICA-BILOXI GAMING: S&P Cuts ICR to 'CCC' on Weaker Performance UNITEK GLOBAL: Shares Now Trade on OTC Markets UNIVERSITY GENERAL: Delays 10-Q Over Cost Containment Efforts USMART MOBILE: Incurs $282,000 Net Loss in Second Quarter VALITAS HEALTH: Moody's Lowers CFR to Caa1, Sees Covenant Waivers VENOCO INC: S&P Puts 'B-' CCR on CreditWatch Negative VERITEQ CORP: Incurs $5.5 Million Net Loss in Second Quarter VERITY CORP: Incurs $124,000 Net Loss in June 30 Quarter VICTORY ENERGY: Posts $1.3 Million Net Income in 2nd Quarter VICTORY ENERGY: Updated Reserve Report Filed WAFERGEN BIO-SYSTEMS: Amends Form S-1 Registration Statement WALTER ENERGY: Bank Debt Trades at 6% Off WESTMORELAND COAL: Files Financial Statements of Acquired Assets XTREME POWER: Blocks First Wind's Plea for Stay Relief ZAZA ENERGY: Reports $9.22-Mil. Net Loss for June 30 Quarter Z TRIM HOLDINGS: Has $1.57-Mil. Net Loss in Q2 Ended June 30 * Liquidating Trustee Can't Pursue Tax Refund, Appeals Court Says * Second Circuit Goes Easy on Keeping Books, Records in Fee Case * Contempt Actions Not Halted by Automatic Stay, Court Says * Trustee Earns Fees on All Payments in Dismissed '13' * Goldman Sachs to Pay $3.15-Bil. to Settle Mortgage Claims * U.S. Judge Scolds Argentina, Doesn't Hold It in Contempt * BOND PRICING: For The Week From August 18 to 22, 2014 ********* 21ST CENTURY ONCOLOGY: Incurs $207.5MM Net Loss in 2nd Quarter -------------------------------------------------------------- 21st Century Oncology Holdings, Inc., reported a net loss attributable to the Company's shareholders of $207.52 million on $265.89 million of total revenues for the three months ended June 30, 2014, compared to a net loss attributable to the Company's shareholders of $20.13 million on $178.11 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 attributable to the Company's shareholders of $237.70 million on $499.29 million of total revenues compared to a net loss attributable to the Company's shareholders of $39.88 million on $352.08 million of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2014, showed $1.11 billion in total assets, $1.38 billion in total liabilities, $46.65 million in noncontrolling interests- redeemable, and a $325.04 million total deficit. Dr. Daniel Dosoretz, founder and chief executive officer, commented, "The first half of 2014 marked a significant transformation of the Company as we continued to integrate the two largest acquisitions in our history. I am very pleased to report that we have made substantial progress on the integration of OnCure and have made significant headway with the integration of SFRO. OnCure and SFRO are performing at or ahead of our expectations. Our dedication and new markets combined with executing our business model has led to continued growth across all of our key operating metrics, including total radiation oncology cases being up 9.3% and same market treatments per day up 2.2%. We believe our fundamental business remains strong and we continue to execute on our strategy of growth through organic initiatives and selective acquisitions." A copy of the press release is available for free at: http://is.gd/pcZCCz 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. 710 MARIPOSA: Knowledge of Case No Substitute for Proper Service ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that if a creditor neither files a claim nor participates in a bankruptcy case, the bankrupt court without proper service of process won't have personal jurisdiction over the creditor even though the creditor knows about the case and has a copy of the pleadings. According to the report, writing for the three-judge appellate panel, Bankruptcy Judge Frank L. Kurtz said the creditor admitted having notice of the bankruptcy and copies of the papers objecting to her claim. Those facts were sufficient to reject her argument that she was denied constitutional due process when her claim was dismissed, the report related. The case is Keyes v. 701 Mariposa Project LLC (In re 701 Mariposa Project LLC), 13-1329, U.S. Ninth Circuit Bankruptcy Appellate Panel (San Francisco). ADAMIS PHARMACEUTICALS: Raised $5 Million From Private Placement ---------------------------------------------------------------- Adamis Pharmaceuticals Corporation disclosed with the U.S. Securities and Exchange Commission that it has completed a private placement financing transaction pursuant to which it issued 1,418,439 shares of Series A Convertible Preferred Stock to a fundamental healthcare institutional fund and received gross cash proceeds of approximately $5,000,000. The preferred stock is convertible into common stock at a conversion ratio of 1-to-1 at the option of the investor and has no preference to the common shares. The Company also issued to the investor warrants to purchase a number of shares of common stock equal to the number of shares of preferred stock purchased by the investor. The warrants, which are exercisable for a period of five years, have an exercise price of $3.40 per share and are callable for cash. Net proceeds from this financing will be used for general corporate purposes, including without limitation to help prepare for the anticipated marketing and sales launch of the Company's epinephrine pre-filled syringe product. In May 2014, the company filed a New Drug Application with the FDA under section 505(b)(2) of the Food, Drug & Cosmetic Act for marketing approval of its pre-filled single dose syringe (PFS) product, for the emergency treatment of allergic reactions (Type I) including anaphylaxis. On July 29, 2014, the company announced that the FDA had accepted the NDA for review. "We believe this transaction is beneficial to our shareholders. We always review opportunities to raise additional capital to help support and accelerate our development activities and product pipeline, especially when it comes from a highly-respected fundamental healthcare fund. We believe this funding will provide enough capital to support the company through the anticipated launch of our first product, the epinephrine pre-filled syringe." said Dr. Dennis J. Carlo, CEO and president of Adamis. CRT Capital Group, LLC, acted as a financial advisor for the placement. Additional information is available for free at: http://is.gd/WBN9ZB About Adamis San Diego, Calif.-based Adamis Pharmaceuticals Corporation (OTC QB: ADMP) is a biopharmaceutical company engaged in the development and commercialization of specialty pharmaceutical and biotechnology products in the therapeutic areas of respiratory disease, allergy, oncology and immunology. Adamis reported a net loss of $8.15 million for the year ended March 31, 2014, as compared with a net loss of $7.19 million for the year ended March 31, 2013. Mayer Hoffman McCann P.C., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2014. The independent auditors noted that the Company has incurred recurring losses from operations and has limited working capital to pursue its business alternatives. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of June 30, 2014, the Company had $11.56 million in total assets, $1.90 million in total liabilities and $9.65 million in total stockholders' equity. Bankruptcy warning "Our management intends to attempt to secure additional required funding through equity or debt financings, sales or out-licensing of intellectual property assets, seeking partnerships with other pharmaceutical companies or third parties to co-develop and fund research and development efforts, or similar transactions. However, there can be no assurance that we will be able to obtain any required additional funding. If we are unsuccessful in securing funding from any of these sources, we will defer, reduce or eliminate certain planned expenditures and delay development or commercialization of some or all of our products. If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy protection or other alternatives that could result in our stockholders losing some or all of their investment in us," the Company said in its quarterly report for the period ended June 30, 2014. ADELPHI ACADEMY: Can Retain Robinson Brog as Bankruptcy Counsel --------------------------------------------------------------- Adelphi Academy d/b/a Adelphi Academy of Brooklyn sought and obtained authority to retain Robinson Brog Leinwand Greene Genovese & Gluck P.C. effective as of June 16, 2014, to provide legal services in connection with this case. The professional services to be rendered by Robinson Brog in this case will include, but shall not be limited to: (a) providing advice to the Debtor with respect to its powers and duties under the Bankruptcy Code in the continued operation of its business and the management of its property; (b) negotiating with creditors of the Debtor, preparing a plan of reorganization and taking the necessary legal steps to consummate a plan, including, if necessary, negotiations with respect to financing a plan; (c) preparing on the Debtor's behalf necessary applications, motions, answers, replies, discovery requests, forms of orders, reports and other pleadings and legal documents; (d) appearing before this Court to protect the interests of the Debtor and its estate, and representing the Debtor in all matters pending before this Court; (e) performing all other legal services for the Debtor that may be necessary; and (f) assisting the Debtor in connection with all aspects of the Chapter 11 case. Robinson Brog will charge the Debtor these hourly rates for its services: Shareholders $450 to $615 Associates $345 to $440 Paralegals $170 to $210 The Debtor attests that Robinson Brog is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Robinson Brog can be reached at: A. Mitchell Greene, Esq. Robinson Brog Leinwand Greene Genovese & Gluck P.C. 875 Third Avenue New York, New York 10022 Tel: (212)603-6300 Adelphi Academy -- operator of the Adelphi Academy of Brooklyn, a not-for-profit, 501(c)(3), private and independent school from property it owns at 8515 Ridge Boulevard in Bay Ridge, Brooklyn -- filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No. 14-43065) in Brooklyn on June 16, 2014. The bankruptcy case is assigned to Judge Elizabeth S. Stong. The proposed attorney for the Debtor is A. Mitchell Greene, Esq. at Robinson, Brog, Leinwand, Greene, Genovese, & Gluck PC of New York, New York. Metropolitan Commercial Bank is represented by Lee Attanasio, Esq., at Sidley Austin LLP, in New York. ADELPHI ACADEMY: Has Final Authorization to Use Collateral ---------------------------------------------------------- In a final hearing held on Aug. 5, 2014, Judge Elizabeth S. Stong of the U.S. Bankruptcy Court for the Eastern District of New York gave authority for Adelphi Academy to use cash collateral securing its prepetition indebtedness from Metropolitan Commercial Bank. As adequate protection for Metropolitan, (i) the Debtor will maintain the cash they collect over and above the authorized expenditures; and (ii) Metropolitan will have a replacement lien on all postpetition assets of the Debtor and all their proceeds with the liens subject only to valid real estate taxes, all amounts payable to the U.S. Trustee and fees and expenses up to $10,000 incurred by a trustee under Section 726(b) of the Bankruptcy Code. Adelphi Academy -- operator of the Adelphi Academy of Brooklyn, a not-for-profit, 501(c)(3), private and independent school from property it owns at 8515 Ridge Boulevard in Bay Ridge, Brooklyn -- filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No. 14-43065) in Brooklyn on June 16, 2014. The bankruptcy case is assigned to Judge Elizabeth S. Stong. The proposed attorney for the Debtor is A. Mitchell Greene, Esq. at Robinson, Brog, Leinwand, Greene, Genovese, & Gluck PC of New York, New York. Metropolitan Commercial Bank is represented by Lee Attanasio, Esq., at Sidley Austin LLP, in New York. AGFEED INDUSTRIES: Has Until Sept. 15 to File Plan -------------------------------------------------- Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware gave AgFeed USA, LLC, et al., until Sept. 15, 2014, to file a plan, and until Nov. 14, to solicit acceptances of that plan. About AgFeed Industries AgFeed Industries, Inc., has 21 farms and five feed mills in China producing more than 250,000 hogs annually. In the U.S., the business included 10 sow farms in three states and two feed mills producing more than one million hogs a year. AgFeed's revenue in 2012 was $244 million. AgFeed and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. The Debtors' claims and noticing agent is BMC Group, Inc. The U.S. Trustee has appointed a five-member official committee of unsecured creditors to the Chapter 11 cases. The Creditors' Committee tapped Lowenstein Sandler as lead bankruptcy counsel and Greenberg Traurig, LLP, as co-counsel. CohnReznick LLP serves as the Creditors' Committee's financial advisor. An official committee of equity security holders was also appointed to the Chapter 11 cases. The Equity Committee tapped Sugar Felsenthal Grais & Hammer LLP and Elliott Greenleaf as co-counsel. In October 2013, AgFeed completed the sale of the U.S. operations to three buyers for $79.45 million, including $53.4 million in cash. In November 2013, the Court authorized AgFeed to sell its Chinese assets to Hong Kong firm Good Charm International Development Ltd. in a deal that is expected to net the debtor $45 million once several highly negotiated price adjustments are factored in. An auction was held for the Chinese facilities on Nov. 20, although no one emerged to top what was originally a $50.5 million bid. The price was lowered by $3.45 million in view of what the contract called "newly discovered" operational problems and "deterioration of the performance" of feed mills. ALPHA NATURAL: Bank Debt Trades at 6% Off ----------------------------------------- Participations in a syndicated loan under which Alpha Natural Resources is a borrower traded in the secondary market at 94.33 cents-on-the-dollar during the week ended Friday, August 22, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.66 percentage points from the previous week, The Journal relates. Alpha Natural Resources pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on May 31, 2020, and carries Moody's B1 rating and Standard & Poor's BB- rating. The loan is one of the biggest gainers and losers among 205 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. AM GENERAL: S&P Affirms 'CCC' CCR & Removes From CreditWatch Pos. ----------------------------------------------------------------- Standard & Poor's Ratings Services removed its ratings on U.S.- based Humvee manufacturer AM General LLC from CreditWatch, where S&P placed them with positive implications on June 24, 2014. At same time, S&P affirmed its 'CCC' corporate credit rating on the company. The outlook is negative. S&P also lowered its issue- level ratings on the company's senior secured revolver and term loan to 'CCC' from 'CCC+' and revised the recovery ratings to '3' from '2'. The '3' recovery ratings indicate S&P's expectation for meaningful recovery (50%-70%) in the event of a payment default. "The affirmation reflects our view that AM General could experience difficulty generating enough cash internally to meet debt service requirements over the next 12 months, even though the company's cash balance has been enhanced by a recent legal settlement," said Standard & Poor's credit analyst Chris Mooney. S&P believes that the company's liquidity profile remains "weak" due to poor earnings and cash generation, uncertain demand, high borrowing costs, and significant near-term debt maturities. S&P also believes that AM General's financial commitments are vulnerable to nonpayment in the event that adverse business conditions continue. AM General has struggled to secure international orders for new Humvees, which has resulted in significant sales and earnings declines. The low production levels resulted in negative funds from operations (FFO) for the six months ended June 30, 2014. Furthermore, Standard & Poor's-adjusted debt to EBITDA rose to about 10x for the 12 months ended June 30, 2014, compared with S&P's previous expectations of about 5x in 2014. AM General's sponsor provided financial assistance in various forms to keep the company from running out cash, including an equity contribution and a revolving line of credit before the receipt of cash proceeds from the aforementioned legal settlement in second-quarter 2014. Although S&P expects continued financial support from the sponsor, it believes the company must significantly increase its order backlog and improve cash generation to avoid a payment default or distressed exchange in the next year. The negative outlook reflects the possibility that AM General may not have sufficient liquidity to meet its near-term debt maturities, the uncertainty surrounding our base-case forecast because of the unpredictable and competitive nature of international Humvee contract awards, and the potential for delayed aftermarket orders stemming from U.S. defense budget reductions. S&P could lower the rating if it came to believe that a default or distressed exchange appears inevitable within six months. This could result from a continued lack of international orders over the next year such that operating losses result in inadequate cash to service debt requirements or lead to covenant violations that AM General is unable to resolve. S&P could revise the outlook to developing, or raise the rating, if the company's liquidity profile improves, including increased covenant headroom, effective management of cash, and a growing order backlog. AMERICAN AIRLINES: Settles 99% of Creditor Claims ------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that American Airlines resolved 99 percent of about 22,000 creditor claims filed in the Chapter 11 reorganization that concluded in November in a merger with US Airways to form American Airlines Group Inc. According to the report, the airline has asked a court for more time to resolve about 240 remaining claims asserting about $2.7 billion in liability. About American Airlines AMR Corp. and its subsidiaries including American Airlines filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost- cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so- called U.S. legacy airlines to seek court protection from creditors. It was the third largest airline in the United States at the time of the bankruptcy filing. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The bankruptcy judge on Sept. 12, 2013, confirmed AMR Corp.'s plan to exit bankruptcy through a merger with US Airways. By distributing stock in the merged airlines, the plan is designed to pay all creditors in full, with interest. Judge Sean Lane confirmed the Plan despite the lawsuit filed by the U.S. Department of Justice and several states' attorney general complaining that the merger violates antitrust laws. In November 2013, AMR and the U.S. Justice Department a settlement of the anti-trust suit. The settlements require the airlines to shed 104 slots at Reagan National Airport in Washington and 34 at LaGuardia Airport in New York. AMR stepped out of Chapter 11 protection after its $17 billion merger with US Airways was formally completed on Dec. 9, 2013. AMERICAN MEDIA: Incurs $12 Million Net Loss in Fiscal Q1 -------------------------------------------------------- American Media, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $12.03 million on $78.25 million of total operating revenues for the three months ended June 30, 2014, compared to net income of $765,000 on $90.39 million of total operating revenues for the same period a year ago. The Company's balance sheet at June 30, 2014, showed $571.80 million in total assets, $712.72 million in total liabilities, $3 million in redeemable noncontrolling interests, and a $143.92 million total stockholders' deficit. As of June 30, 2014, the Company had cash and cash equivalents of $15.1 million and a working capital deficit of $19.3 million. American Media held an earnings conference call on Aug. 20, 2014, to discuss the financial results for Fiscal Year 2014 and the three month period ended June 30, 2014. A full-text copy of the Form 10-Q is available for free at: http://is.gd/mfQQFg 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. American Media incurred 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. * * * As reported by the TCR on Nov. 20, 2013, Standard & Poor's Ratings Services raised its corporate credit rating on 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. AMERICAN MEDIA: New Owners Plan to Convert $121MM Debt to Equity ---------------------------------------------------------------- American Media, Inc., said that investors who recently acquired 100% of issued and outstanding shares of its common stock have agreed to convert $121.3 million in aggregate principal amount of second lien notes due 2018 into equity. This transaction will reduce AMI's balance sheet leverage by over a full turn and permanently reduce interest expense $12.4 million annually giving management tremendous flexibility to execute an aggressive growth strategy over the next several years. In addition, over the coming months, management plans to actively assess the capital markets in order to capitalize on AMI's lower leverage profile with an eye towards lowering interest costs and further improving the company's free cash flow. "This is the dawn of a new and exciting period of growth for AMI," said David J. Pecker, Chairman, president and CEO of AMI. "Our ability to work with investors who share our strategic vision underscores our commitment to deleverage the balance sheet and focus on reducing the company's interest expense which allows us to execute an aggressive strategy to transform American Media into a premier lifestyle brands company. My team and I are already moving assertively to execute this strategy with growth capital and we remain focused on continuing the investment in digital growth." Over the past several years, the company's leveraged balance sheet had been an impediment to achieving the potential growth inherent in the company's lifestyle brands. With a significantly reduced debt balance and enhanced cash flow, AMI is now well positioned to invest in several growth opportunities identified by management. Through many of these initiatives, AMI plans to significantly grow digital, licensing and branding resulting in further balance sheet de-leveraging over the next 12 to 18 months. AMI management also announced that they have taken efforts to minimize the disruption to their distribution network created by the bankruptcy filing of Source Interlink. Mr. Pecker and his management team remain hopeful that AMI's newsstand magazines will recover their lost sales by year end. Mr. Pecker commented, "I am happy to say that AMI is in the best financial position, with the greatest amount of liquidity, in our company's history. We have the right team and the right support to successfully realize both our short and long term goals." Closing of Merger and Note Purchase American Media entered into an Agreement and Plan of Merger with AMI Parent Holdings LLC ("Parent"), and AMI Merger Corporation, a wholly-owned subsidiary of Parent ("Merger Sub"), pursuant to which on Aug. 15, 2014, Merger Sub merged with and into the Company, with the Company continuing as the surviving entity as a wholly-owned subsidiary of Parent. Pursuant to the terms and conditions of the Merger Agreement, Parent acquired the Company for $2 million in cash. In addition, approximately $513 million of outstanding indebtedness will remain in place. On Aug. 15, 2014, the Company and certain of its subsidiaries entered into a Note Purchase Agreement with Chatham Asset Management, LLC, and Omega Charitable Partnership, L.P. Pursuant to the Note Purchase Agreement, on Aug. 15, 2014, the Company issued and sold to the Investors, and the Investors purchased from the Company, an aggregate principal amount of the Company's 10% Second Lien Senior Secured PIK Notes due 2018 issued under the indenture dated as of Oct. 2, 2013, among the Company, the Guarantors and Wilmington Trust, National Association, as trustee and collateral agent, such that the aggregate principal amount of Second Lien PIK Notes purchased plus the accrued interest thereon from the most recent date to which interest has been paid on the then outstanding Second Lien PIK Notes to the closing date for the Merger equaled $12.5 million. After giving effect to the issuance, approximately $113.3 million in aggregate principal amount of Second Lien PIK Notes are outstanding. The Second Lien PIK Notes were issued under the Second Lien PIK Notes Indenture and will be treated as a single class under the Second Lien PIK Notes Indenture with, and have been assigned the same CUSIP number as, the outstanding Second Lien PIK Notes. The Second Lien PIK Notes were issued through a private offering exempt from the registration requirements of the Securities Act of 1933, as amended. Director Resignations In connection with the Merger, on Aug. 15, 2014, each of the directors of the Company (other than David J. Pecker) resigned pursuant to a letter of resignation delivered to the Parent and the Company, effective immediately prior to the closing of the Merger. Concurrent with the resignation of these directors, on Aug. 15, 2014, Parent, as the sole stockholder of the Company, elected Evan Ratner, Barry Schwartz and David Hughes to serve as directors with Mr. Pecker. In addition, on Aug. 15, 2014, Parent, as the sole stockholder of the Company, appointed Messrs. Ratner, Schwartz and Hughes to the audit committee of the Company's board of directors, with Mr. Hughes serving as Chairman. Mr. Hughes shall be the Company's "audit committee financial expert" for the purposes of the rules and regulations promulgated by the SEC. Concurrent with the Merger, on Aug. 15, 2014, the Board determined that a separate compensation committee of the Board was no longer required for the Company's corporate governance purposes, and the compensation committee of the Board was dissolved. A full-text copy of the regulatory filing with the U.S. Securities and Exchange Commission its available for free at: http://is.gd/Pw13Af 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. American Media incurred 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. * * * As reported by the TCR on Nov. 20, 2013, Standard & Poor's Ratings Services raised its corporate credit rating on 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. AMERICAN MEDIA: JPMorgan, Lenders Waive Reporting Requirements -------------------------------------------------------------- American Media disclosed that on Aug. 15, 2014, the Company and JPMorgan Chase Bank, N.A., as administrative agent entered into a Wavier to the Revolving Credit Agreement with lenders constituting the Required Lenders. Pursuant to the Waiver, the Consenting Lenders have agreed to waive, for the period commencing on Aug. 15, 2014 and (i) with respect to the Annual Deliverables Default, expiring on the earlier of (A) Aug. 22, 2014 and (B) immediately prior to the consummation of the Merger and (ii) with respect to the Quarterly Deliverables Default, expiring on Aug. 22, 2014, the requirements under the Credit Agreement that the Company furnish to the Administrative Agent (i) certain financial statements, reports and other documents and the related required deliverables with respect to the Company's fiscal year ended March 31, 2014, and (ii) certain financial statements, reports and other documents and the related required deliverables with respect to the Company's fiscal quarter ended June 30, 2014. 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. American Media incurred 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. * * * As reported by the TCR on Nov. 20, 2013, Standard & Poor's Ratings Services raised its corporate credit rating on 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. ARCH COAL: Bank Debt Trades at 3% Off ------------------------------------- Participations in a syndicated loan under which Arch Coal Inc. is a borrower traded in the secondary market at 97.04 cents-on-the- dollar during the week ended Friday, August 22, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 0.51 percentage points from the previous week, The Journal relates. Arch Coal Inc. pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on May 17, 2018, and carries Moody's B1 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 205 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. ASHER INVESTMENT: Debunks Itkin's Objection to Counsel Hiring ------------------------------------------------------------- Asher Investment Properties, LLC, countered the objection of the Trustees of the Itking Living Trust, secured creditor and a 50% member of Debtor, to employ Gershuni & Katz, a Law Corporation, as general bankruptcy counsel, and Michael F. Frank and Peggi A. Gross as its special litigation counsel. As reported by the Troubled Company Reporter on Aug. 5, 2014, the Itkin Trust objects to the employment of Gershuni & Katz as general bankruptcy counsel saying that the bankruptcy case should be dismissed, and that Garry Itkin -- Itkin Trust's co- Trustee and the managing member of the Debtor -- never authorized the hiring of counsel. The Itkin Trust also objects to the employment of Mr. Frank, claiming that he is not disinterested and that he represents interests adverse to the estate. According to the Debtor, Itkin Trust's opposition to the employment of general and special bankruptcy counsel is without merit in that, among other reasons, (i) it presupposes that the Court will grant its motion to dismiss; (ii) it is violative of the public policy against pre-petition contractual waivers of the right to file a prepetition for relief and is an attempt to deprive the Debtor of its right to file a petition for relief conferred by Congress pursuant to Article 1, Section 8, Claus 4 of the U.S. Constitution both by seeking to forbid it from filing or consenting to the entry of a petition for relief and by preventing it from retaining counsel to file a petition and appear on its behalf in its bankruptcy case; and (iii) rather than establishing an actual conflict of interest between proposed special litigation counsel and the Debtor, the Itkin Trust's opposition highlights the conflict of interest between the Itkin Trust on the one hand and the Debtor, its equity security holders and its priority and general unsecured creditors on the other hand. "Like other lenders over the years, the Itkin Trust crafted a strategy seeking to avoid the public policy against contractual prohibition of its borrower's right to reorganize under the Bankruptcy Code granted by Congress pursuant to Article 1, Section 8, Clause 4 of the United States Constitution. Its objection to the Debtor's applications to employ general bankruptcy and special lititgation counsel is made in furtherance of that strategy," the Debtor stated in a court filing dated Aug. 14, 2014. Copies of the response is available for free at: http://bankrupt.com/misc/ASHERINVESTMENT_72_specialcounselresp.pdf http://bankrupt.com/misc/ASHERINVESTMENT_75_specialcounsel.pdf About Asher Investment Properties, LLC Asher Investment Properties, LLC, owner of a $10 million property in Beverly Hills, California, filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-21172) in Los Angeles, on June 6, 2014. Yossi Dina signed the petition as managing member. Asher, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), disclosed $11.5 million in assets and $10.7 million in liabilities. Gershuni & Kate, ALC, serves as the Debtor's counsel. Hon. Barry Russell presides over the case. BANK OF THE CAROLINAS: Posts $599,000 Net Income in 2nd Quarter --------------------------------------------------------------- Bank of the Carolinas Corporation reported net income available to common shareholders of $599,000 on $3.78 million of total interest income for the three months ended June 30, 2014, compared to a net loss available to common shareholders of $1.30 million on $3.74 million of total interest income for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss available to common shareholders of $1.17 million on $7.53 million of total interest income compared to a net loss available to common shareholders of $1.41 million on $7.56 million of total interest income for the same period a year ago. Total assets at June 30, 2014, amounted to $427.8 million, an increase of 0.2% when compared to $427.1 million as of June 30, 2013. The Company had total liabilities of $423.04 million and total shareholders' equity of $4.77 million as of June 30, 2014. President and CEO, Stephen R. Talbert, said, "We are pleased to release our second quarter earnings. We continue to have success in reducing our levels of nonperforming assets and decreasing our noninterest expense. I am proud of our successful $45.8 million private placement. I am grateful to the many people who helped us through this complicated transaction. We believe the Company is now positioned for continued success." Bank of the Carolinas Corporation is the holding company for Bank of the Carolinas, a North Carolina chartered bank headquartered in Mocksville, NC with offices in Advance, Asheboro, Concord, Harrisburg, Landis, Lexington and Winston-Salem. The common stock of the Company is quoted under the symbol "BCAR" on the OTCQB marketplace operated by OTC Markets Group Inc. A full-text copy of the press release is available for free at: http://is.gd/PwJ60D 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. BATE LAND: Has Until October 1 to Obtain Plan Confirmation ---------------------------------------------------------- The Hon. Stephani W. Humrickhouse of the U.S. Bankruptcy Court for the Eastern District of North Carolina extended the deadline for Bate Land & Timber LLC to obtain confirmation of its Chapter 11 plan of reorganization until Oct. 1, 2014. The Debtor has filed with the Court a summary of evidence in support of confirmation of its plan. A full-text copy of the summary is available for free at http://is.gd/lObw1k The Plan As reported in the Troubled Company Reporter, the Plan proposes to sell all of the Debtor's real property valued at $47,032,125, and personal property valued at $6,445,499. Proceeds from the asset sales will fund the Plan. The liens secured by the Debtor's property will attach to the net proceeds of the sale remaining after payment costs of sale and all reasonable and ordinary closing costs. As reported in the TCR on Sept. 10, 2013, Judge Humrickhouse conditionally approved the disclosure statement explaining the Debtor's Plan. A full-text copy of the Plan, dated Aug. 30, 2013, is available for free at http://is.gd/sAzeX9 About Bate Land & Timber Willotte, North Carolina-based Bate Land & Timber, LLC, sought protection under Chapter 11 of the Bankruptcy Code on July 25, 2013 (Case No. 13-04665, E.D.N.C.). Judge Stephani W. Humrickhouse oversees the Chapter 11 case. The Debtor, in amended schedules, disclosed $53,477,624 in assets and $74,162,211 liabilities as of the Chapter 11 filing. The petition was signed by Brad Cheers, manager. The Bankruptcy Administrator for the Eastern District of North Carolina was unable to organize and recommend the appointment of a committee of creditors holding unsecured claims against the Debtor. BE ACTIVE HOLDINGS: Needs Capital to Pay Off Expenses ----------------------------------------------------- Be Active Holdings, Inc., filed its quarterly report on Form 10-Q, disclosing net income of $8.18 million on $7,920 of net sales for the three months ended June 30, 2014, compared with a net loss of $1.33 million on $1,094 of net sales for the same period last year. The Company's balance sheet at June 30 2014, showed $1.1 million in total assets, $395,086 in total liabilities, and stockholders' equity of $709,138. The Company has not yet established revenues sufficient to cover its operating costs and allow it to continue as a going concern. The Company has incurred significant net losses since inception and at June 30, 2014, has an accumulated deficit of $8.03 million. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating expenses until it become profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. In order to continue as a going concern, the Company will need, among other things, additional capital resources, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/ilLhAA Be Active Holdings, Inc., manufactures and sells low fat, low calorie, and natural probiotic frozen yogurt and ice cream products in the New York metropolitan area. The company offers its products under the Jala brand name. Be Active Holdings, Inc. sells its products primarily to supermarkets, as well as to convenience and other foods stores. The company was founded in 2009 and is based in Great Neck, New York. BINGO.COM LTD: Posts $350-K Net Loss for Q2 Ended June 30 --------------------------------------------------------- Bingo.com, Ltd., filed its quarterly report on Form 10-Q, disclosing a net loss of $350,351 on $431,185 of total revenue for the three months ended June 30, 2014, compared with net income of $10,449 on $491,259 of total revenue for the same period last year. The Company's balance sheet at June 30, 2014, showed $3.64 million in total assets, $262,857 in total liabilities and total stockholders' equity of $3.37 million. A copy of the Form 10-Q is available at: http://is.gd/srqXvy Bingo.com, Ltd., is in the business of owning and marketing a bingo based entertainment website that provides a variety of Internet games plus other forms of entertainment, including an online community, chat rooms, and more. Located at www.bingo.com, the Company has built one of the leading bingo portals on the Internet. The Company leases office facilities in Vancouver, British Columbia, Canada, The Valley, Anguilla, British West Indies and London, United Kingdom. BIOFUEL ENERGY: Amends Rights Offering Prospectus ------------------------------------------------- Biofuel Energy Corp. amended its Form S-1 registration statement with the U.S. Securities and Exchange Commission relating to the distribution, at no charge, to the holders of its common stock as of 5:00 p.m., New York City time, on Sept. 15, 2014, transferable subscription rights to purchase up to an aggregate of 12,247,393 shares of the Company's common stock, par value $0.01 per share, 6,701,335 of which are available in this public rights offering and the remainder of which will be available pursuant to the private rights offering. Each holder of the Company's common stock as of the record date will receive one subscription right for each share of common stock owned as of the record date. As of the close of business on Aug. 15, 2014, there were 5,456,625 shares of the Company's common stock issued and outstanding, net of 40,481 shares held in treasury. Each subscription right will permit the holder of such right to acquire, at a rights price equal to $5.00 per share of common stock, 2.2445 shares of common stock. The rights price represents an approximately 55.5% discount to the closing price of the Company's common stock on Aug. 15, 2014. Each holder of a subscription right that fully exercises its basic subscription privilege may also subscribe for additional shares for pro rata allocation in the event that not all available shares are purchased pursuant to the stockholders' basic subscription privilege. The over-subscription privilege, however, will only be offered for an aggregate number of shares that, when combined with the number of shares purchased pursuant to the stockholders' basic subscription privilege, does not exceed 12,247,393 shares. The subscription rights will expire and have no value if they are not exercised by 5:00 p.m., New York City time, on Oct. 17, 2014. All exercises of subscription rights are irrevocable. A portion of the rights offering to certain of the Company's existing stockholders is being conducted on a private, non-registered basis. Shares of the Company's common stock are traded on The Nasdaq Capital Market under the symbol "BIOF." The total proceeds expected to be raised in the rights offering and the related Backstop Commitments is approximately $61.2 million. The rights offering is intended to provide a portion of the funds the Company will need to acquire the equity interests of JBGL Builder Finance LLC and certain subsidiaries of JBGL Capital, LP. The Company expects the remainder of the funds necessary to pay for the Acquisition to come from the incurrence of indebtedness, the issuance of shares of the Company's common stock to the sellers of the equity interests of JBGL and the Additional Equity Investment. A full-text copy of the amended prospectus is available at: http://is.gd/MEC4Yk About Biofuel Energy Denver, Colo.-based BioFuel Energy Corp. (Nasdaq: BIOF) -- http://www.bfenergy.com/-- aims to become a leading ethanol producer in the United States by acquiring, developing, owning and operating ethanol production facilities. It currently has two 115 million gallons per year ethanol plants in the Midwestern corn belt. Biofuel Energy incurred a net loss of $45.65 million in 2013, a net loss of $46.32 million in 2012 and a net loss of $10.36 million in 2011. The Company's balance sheet at June 30, 2014, showed $8.84 million in total assets, $1.40 million in total liabilities and $7.43 million in total equity. BIOLIFE SOLUTIONS: Amends Lease Agreement With Monte Villa ---------------------------------------------------------- In a document filed with the U.S. Securities and Exchange Commission, BioLife Solutions, Inc., said it entered into a Fifth Amendment to the Lease with Monte Villa Farms LLC to, among other things, enlarge the premises leased by the Company and make associated increases to the monthly base rent and certain other fees and expenses due under the lease, dated as of Aug. 1, 2007, as amended. The premises leased pursuant to the Original Lease consisted of approximately 4,366 rentable square feet of space in the building located at 3303 Monte Villa Parkway, Bothell, Washington. The Company leased an additional 5,798 rentable square feet of space in the Building pursuant to the First Lease Amendment. The Second Lease Amendment expanded the premises leased by the Company from the Landlord to approximately 20,462 rentable square feet. The Third Lease Amendment expanded the premises to 20,761 rentable square feet. The Fourth Lease Amendment expanded the premises to 25,864 rentable square feet. The Fifth Lease Amendment expanded the premises to 30,357 rentable square feet. Under the Fifth Lease Amendment, beginning Nov. 15, 2015, the Company's monthly base rent will increase by $6,739.50 per month to an aggregate of $55,708.67 per month. The Company's base rent will increase from time to time. The Company is also required to pay an amount equal to its proportionate share of certain taxes and operating expenses for the leased premises. About BioLife Solutions Bothell, Washington-based BioLife Solutions, Inc., develops and markets patented hypothermic storage and cryo-preservation solutions for cells, tissues, and organs, and provides contracted research and development and consulting services related to optimization of biopreservation processes and protocols. BioLife Solutions incurred a net loss of $1.08 million in 2013, a net loss of $1.65 million in 2012, and a net loss of $1.95 million in 2011. The Company's balance sheet at June 30, 2014, showed $14.80 million in total assets, $1.40 million in total liabilities and $13.39 million in total shareholders' equity. BLUE RIDGE LIMOUSINE: Financial Consultant's Final Fee Okayed ------------------------------------------------------------- Bankruptcy Judge Brian F. Kenney granted the Final Application for Compensation filed by Matt Sipos, as financial consultant for debtor Blue Ridge Limousine And Tour Service, Inc. The U.S. Trustee filed an Objection and a Motion to Disgorge Mr. Sipos's fees. The Court heard the evidence and the arguments of the parties on July 11, 2014. Judge Kenney allowed Mr. Sipos's compensation in the amounts requested, subject only to a possible motion by the Chapter 7 Trustee for a disgorgement based on administrative insolvency. Mr. Sipos's employment ended on December 20, 2013. He was paid $1,000 per week for 50 weeks while he was the acting CFO. Mr. Sipos testified that his normal hourly rate was $150 to $250, and that he was sure that he lost money on this engagement, when measured against his hourly rate (in his words, "I was severely underpaid"). Ms. Kindred, the Chapter 7 Trustee, also testified. To date she has collected a little more than $70,000, consisting of $30,000 from the sale of the Debtor's remaining contracts and $47,000 that was turned over by Action Capital. She testified that there probably will not be much in the way of preference recoveries. Ms. Kindred also testified that there are Chapter 7 administrative fees in the amount of approximately $23,000. She testified that there is a total of $196,000 in Chapter 11 administrative expenses, of which $96,000 has not been paid. In Ms. Kindred's view, the case is administratively insolvent for the Chapter 11 administrative claimants. The U.S. Trustee raises three arguments in opposition to Mr. Sipos's Final Application. The U.S. Trustee argues that the disclosures in Mr. Sipos's Application for Employment were inadequate under Bankruptcy Rule 2014(a). The U.S. Trustee also argues that Mr. Sipos's fees are not reasonable under Bankruptcy Code Section 330(a) (the court may order "reasonable compensation for actual, necessary services rendered"). Finally, the U.S. Trustee argues that the Court should not award Mr. Sipos final compensation in the face of what likely will be an administrative insolvency in this case. A copy of the Court's August 20, 2014 Memorandum Opinion is available at http://is.gd/lmEyM2from Leagle.com. Blue Ridge Limousine and Tour Service, Inc., based in Springfield, Virginia, filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 12-17551) on Dec. 31, 2012. Judge Brian F. Kenney presides over the case. The Debtor was represented in the Chapter 11 case by: Christopher A. Jones, Esq. Justin Fasano, Esq. WHITEFORD TAYLOR & PRESTON, LLP 3190 Fairview Park Drive, Suite 300 Falls Church, VA 22042 Tel: (703) 280-9263 Fax: (703) 280-8942 E-mail: cajones@wtplaw.com jfasano@wtplaw.com The Debtor estimated assets of under $1 million and debts of under $10 million. A list of the Company's 20 largest unsecured creditors, filed together with the petition, is available for free at http://bankrupt.com/misc/vaeb12-17551.pdf The petition was signed by R. Neill Jefferson, president. On January 6, 2014, roughly a year into in the case, the U.S. Trustee filed a Motion to Convert the case to Chapter 7. The case was converted to Chapter 7 on Feb. 19, 2014. Klinette H. Kindred was named Chapter 7 Trustee. She's represented by Gregory Counts, Esq., at Tyler, Bartl, Ramsdell and Counts. BON-TON STORES: Incurs $36.2 Million Net Loss in Second Quarter --------------------------------------------------------------- The Bon-Ton Stores, Inc., reported a net loss of $36.19 million on $578.13 million of net sales and other income for the 13 weeks ended Aug. 2, 2014, compared to a net loss of $37.32 million on $570.98 million of net sales and other income for the 13 weeks ended Aug. 3, 2013. For the 26 weeks ended Aug. 2, 2014, the Company reported a net loss of $67.70 million on $1.20 billion of net sales and other income compared to a net loss of $63.96 million on $1.23 billion of net sales and other income for the 26 weeks ended Aug. 3, 2013. As of Aug. 2, 2014, Bon-Ton Stores had $1.57 billion in total assets, $1.51 billion in total liabilities and $59.58 million in total shareholders' equity. Brendan Hoffman, president and chief executive officer, commented, "We were pleased that we achieved comparable store sales growth, particularly given the challenging promotional environment and continuation of soft traffic trends. Ecommerce delivered another strong quarter driven primarily by increased conversion. In addition, our proprietary credit card penetration increased to approximately 51% of total sales, further demonstrating the ongoing strength of our loyalty program. We continued to carefully manage our inventory, ending the quarter approximately flat on a comparable store basis as compared with the prior year period and positioning us well for the fall season." Mr. Hoffman continued, "We are excited to welcome Kathryn Bufano to the Bon-Ton team as she assumes the role of President and Chief Executive Officer next week. She comes with a wealth of knowledge and experience in the retail industry which we believe will be beneficial as we continue to execute our business strategies for profitable growth. I look forward to working with Kathy during a transition period." A full-text copy of the press release is available for free at: http://is.gd/M3oLa3 About Bon-Ton Stores The Bon-Ton Stores, Inc. -- http://bonton.com-- with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 272 department stores, which includes 10 furniture galleries, in 25 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates. The stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. Bon-Ton Stores reported a net loss of $3.55 million for the fiscal year ended Feb. 1, 2014, a net loss of $21.55 million for the year ended Feb. 2, 2013, and a net loss of $12.12 million for the year ended Jan. 28, 2012. The Company's balance sheet at May 3, 2014, showed $1.56 billion in total assets, $1.47 billion in total liabilities and $96.05 million in total shareholders' equity. * * * As reported by the TCR on May 15, 2013, Moody's Investors Service upgraded The Bon-Ton Stores, Inc.'s Corporate Family Rating to B3 from Caa1 and its Probability of Default Rating to B3-PD from Caa1-PD. "The upgrade of Bon-Ton's Corporate Family Rating considers the company's ability to drive modest same store sales growth as well as operating margin expansion beginning in the second half of 2012 and that these positive trends have continued, with the company reporting that its same store were positive, and EBITDA margins expanded, in the first fiscal quarter of 2013," said Moody's Vice President Scott Tuhy. As reported by the TCR on May 17, 2013, Standard & Poor's Ratings Services affirmed the 'B-' corporate credit rating on The Bon-Ton Stores Inc. BOOMERANG SYSTEMS: Extends Exchange Offer Expiration to Oct. 15 --------------------------------------------------------------- Boomerang Systems, Inc., amended its tender offer statement on Schedule TO originally filed with the U.S. Securities and Exchange Commission on July 11, 2014. The Schedule TO relates to the right of holders of certain of its unsecured convertible promissory notes and outstanding warrants to purchase common stock to exchange those notes and warrants for shares of common stock of the Company. Amendment No. 2 extended the expiration of the Offer to Oct. 15, 2014. As of Aug. 20, 2014, the Company has not received any Elections to Participate from holders of eligible securities. A full-text copy of the amended Schedule TO is available at: http://is.gd/4DiHIZ About Boomerang Systems Headquartered in Morristown, New Jersey, Boomerang Systems, Inc. (Pink Sheets: BMER) through its wholly owned subsidiary, Boomerang Utah, is engaged in the design, development, and marketing of automated racking and retrieval systems for automobile parking and automated racking and retrieval of containerized self-storage units. Boomerang Systems incurred a net loss of $11.22 million for the year ended Sept. 30, 2013, following a net loss of $17.42 million for the year ended Sept. 30, 2012. The Company's balance sheet at March 31, 2014, showed $6.19 million in total assets, $21.51 million in total liabilities and a $15.31 million total stockholders' deficit. Bankruptcy Warning "Our operations may not generate sufficient cash to enable us to service our debt. If we were to fail to make any required payment under the Loan Agreement, notes and agreements governing our indebtedness or fail to comply with the covenants contained in the Loan Agreement, notes and agreements, we would be in default. A debt default could significantly diminish the market value and marketability of our common stock and could result in the acceleration of the payment obligations under all or a portion of our consolidated indebtedness, or a renegotiation of our Loan Agreement with more onerous terms and/or additional equity dilution. If the debt holders were to require immediate payment, we might not have sufficient assets to satisfy our obligations under the Loan Agreement, notes or our other indebtedness. It may also enable their lenders under the Loan Agreement to foreclose on the Company's assets and/or its ownership interests in its subsidiaries. In such event, we could be forced to seek protection under bankruptcy laws, which could have a material adverse effect on our existing contracts and our ability to procure new contracts as well as our ability to recruit and/or retain employees. Accordingly, a default could have a significant adverse effect on the market value and marketability of our common stock," the Company said in the annual report for the year ended Sept. 30, 2013. CABLEVISION SYSTEMS: Bank Debt Trades at 2% Off ----------------------------------------------- Participations in a syndicated loan under which Cablevision Systems Corp is a borrower traded in the secondary market at 97.88 cents-on-the-dollar during the week ended Friday, August 22, 2014 according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 0.38 percentage points from the previous week, The Journal relates. Cablevision Systems Corp pays 250 basis points above LIBOR to borrow under the facility. The bank loan matures on April 9, 2020. The bank debt carries Moody's Baa3 rating and Standard & Poor's BBB- rating. The loan is one of the biggest gainers and losers among 255 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. CAESARS ENTERTAINMENT: Bank Debt Trades at 3% Off ------------------------------------------------- Participations in a syndicated loan under which Caesars Entertainment Inc. is a borrower traded in the secondary market at 97.11 cents-on-the-dollar during the week ended Friday, August 22, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.30 percentage points from the previous week, The Journal relates. Caesars Entertainment Inc. pays 875 basis points above LIBOR to borrow under the facility. The bank loan matures on March 1, 2017, and carries Moody's Caa2 rating and Standard & Poor's CCC- rating. The loan is one of the biggest gainers and losers among 205 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. CASCADE AG: Reorganization Case Converted to Chapter 7 ------------------------------------------------------ The Hon. Karen A. Overstreet of the U.S. Bankruptcy Court for the Western District of Washington has converted Cascade AG Services, Inc.'s Chapter 11 case to Chapter 7. Gail Brehm Geiger, the Acting U.S. Trustee for Region 18, filed a motion to convert or appoint a Chapter 11 trustee on June 20, 2014. All parties in interest were served with notice of that motion. Three parties responded: Columbia State Bank, Cairncross & Hempelmann, and One PacificCoast Bank. At the hearing on the motion, the Court found cause to convert the case or appoint a Chapter 11 trustee and ordered the U.S. Trustee to appoint a Chapter 11 trustee. The U.S. Trustee said in a court filing dated Aug. 7, 2014, that the U.S. Trustee consulted with parties in interest but the individual the parties preferred to serve as trustee declined appointment. The U.S. Trustee informed the responding parties of her intent to file this motion on an ex parte basis. Each of the parties responded and did not object to this procedure. About Cascade AG Cascade AG Services, Inc., dba Pleasant Valley Farms, fdba Mountain View Produce, Inc., fdba Staffanson Harvesting LLC, fdba Sterling Investment Group, L.L.C., is a vegetable processing company that processes Washington-grown cucumbers and cabbage into pickles and sauerkraut. Cascade AG filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 12-18366) on Aug. 13, 2012. In amended schedules, the Debtor disclosed $25,522,648 in assets and $21,354,742 in liabilities as of the Chapter 11 filing. Lawyers at Cairncross & Hempelmann PS, in Seattle, serve as the Debtor's counsel. Clyde A. Hamstreet & Associates, LLC, is the Debtor's chief restructuring officer and financial advisor. The petition was signed by Craig Staffanson, president. The U.S. Trustee appointed seven creditors to the Official Unsecured Creditors' Committee. Lawrence R. Ream, Esq., at Schwabe, Williamson & Wyatt PC, Seattle, represents the Committee as counsel. DIP lender One PacificCoast Bank, FSB, is represented by Brad T. Summers, Esq., and David W. Criswell, Esq. The Plan filed in the Debtor's case contemplates a $3.0 million capital infusion. Money contributed to fund the Plan will be used to satisfy Administrative Expense Claims to the extent that those Claims must be satisfied for Confirmation, unless there is agreement with Holders of Administrative Expense Claims to defer payment. * * * This concludes the Troubled Company Reporter's coverage of Cascade AG Services, Inc., until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. CASPIAN SERVICES: Incurs $1.9 Million Net Loss in June 30 Qtr ------------------------------------------------------------- Caspian Services, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.98 million on $8.17 million of total revenues for the three months ended June 30, 2014, compared to a net loss of $3.49 million on $9.44 million of total revenues for the same period in 2013. For the nine months ended June 30, 2014, the Company reported a net loss of $13.64 million on $22.49 million of total revenues compared to a net loss of $9.14 million on $23.47 million of total revenues for the same period during the prior year. As of June 30, 2014, the Company had $65.68 million in total assets, $93.76 million in total liabilities and a $28.07 million total deficit. At June 30, 2014, the Company had cash on hand of $1.16 million compared to cash on hand of $3.97 million at Sept. 30, 2013. A full-text copy of the Form 10-Q is available for free at: http://is.gd/iWdXms About Caspian Services Headquartered in Salt Lake City, Caspian Services, Inc., was incorporated under the laws of the state of Nevada on July 14, 1998. Since February 2002 the Company has concentrated its business efforts to provide diversified oilfield services to the oil and gas industry in western Kazakhstan and the Caspian Sea, including providing a fleet of vessels, onshore, transition zone and marine seismic data acquisition and processing services and a marine supply and support base in the port of Bautino, in Bautino Bay, Kazakhstan. Caspian Services incurred a net loss of $11.82 million on $33.08 million of total revenues for the year ended Sept. 30, 2013, as compared with a net loss of $15.95 million on $24.74 million of total revenues during the prior fiscal year. Haynie & Company, P.C., in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The independent auditors noted that a Company creditor has indicated that it believes the Company may be in violation of certain covenants of certain substantial financing agreements. The financing agreements have acceleration right features that, in the event of default, allow for the loan and accrued interest to become immediately due and payable. As a result of this uncertainty, the Company has included the note payable and all accrued interest as current liabilities at Sept. 30, 2013. At Sept. 30, 2013, the Company had negative working capital of approximately $66,631,000. Uncertainty as to the outcome of these factors raises substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning To help the Company meet its additional funding obligations to construct the marine base, in 2008 the Company entered into two facility agreements pursuant to which the Company received debt funding of $30,000. In June and July 2011, Mr. Bakhytbek Baiseitov (the "Investor") acquired the two facility agreements. In September 2011 the Company issued the Investor two secured promissory notes, a Secured Non-Negotiable Promissory Note in the principal amount of $10,800 and a Secured Convertible Consolidated Promissory Note in the principal amount of $24,446 in connection with restructuring the facility agreements. During December 2012 the Company, the European Bank for Reconstruction and Development and the Investor outlined the terms of a potential restructuring of the Company's financial obligations to EBRD and the Investor in a non-binding term sheet. Throughout the fiscal year the parties have worked to negotiate definitive agreements pursuant to the terms set out in the Term Sheet. Subsequent to the fiscal year end, negotiations between EBRD, the Investor and the Company to restructure the Company's financial obligations pursuant to the terms of the Term Sheet stalled and have been discontinued. However, the Company has engaged in new discussions with EBRD regarding a possible restructuring of its financial obligations to EBRD. According to the Company's 2013 Annual Report, "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." CEETOP INC: Reports $232,000 Net Loss During Second Quarter ---------------------------------------------------------- Ceetop Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $232,342 for the three months ended June 30, 2014, compared to a net loss of $293,230 for the same period last year. For the six months ended June 30, 2014, the Company incurred a net loss of $578,538 compared to a net loss of $502,999 for the same period in 2013. The Company generated no income for the six months ended June 30, 2014, due to transitioning from online retail sales to supply chain services. As of June 30, 2014, the Company had $2.50 million in total assets, $544,913 in total liabilities, all current, and $1.95 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/DFJl75 About Ceetop Inc. Oregon-based Ceetop Inc., formerly known as China Ceetop.com, Inc., owned and operated the online retail platform before 2013. Due to excessive competition in online retail, the Company has transformed itself into an integrated supply chain services provider, and focuses on B to B supply chain management and related value-added services among enterprises. Ceetop reported a net loss of $2.88 million in 2013 following a net loss of $1.39 million in 2012. Clement C. W. Chan & Co., in Hong Kong, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company incurred a net loss of $2,886,599 for the year ended December 31, 2013, has accumulated deficit of $8,605,635 at December 31, 2013. These matters are discussed in Note 2 to the consolidated financial statements that raises substantial doubt about the Company's ability to continue as a going concern. CHAPPEL FAMILY: Involuntary Chapter 11 Case Summary --------------------------------------------------- Alleged Debtor: Chappel Family Practice, LLC 222 Broadway Kissimmee, FL 34741 Case Number: 14-09588 Involuntary Chapter 11 Petition Date: August 21, 2014 Court: United States Bankruptcy Court Middle District of Florida (Orlando) Petitioners' Counsel: Wendy D Brewer, Esq. DECA FINANCIAL SERVICES, LLC 12175 Visionary Way Fishers, IN 46037 Tel: 317-215-6220 Email: wbrewer@jeffersonbrewer.com Alleged Debtor's petitioners: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Shah Family, LLC Loans $719,187 801 W. Main Street North Manchester, IN 46962 Barbara K. Shah Loan $109,328 801 W. Main Street North Manchester, IN 46962 Danny J. Dunham Loan $7,500 13051 Lockburn Place Fishers, IN 46038 George X. Cannon Loan and $91,000 9611 Cloverleaf Lane Professional Fishers, IN 46038 Fees Adelaide Holdings, LLC Lease Payments $14,600 c/o Tim Majors, Manager 2106 North Orange Ave., Suite 200 Orlando, FL 32804 CHRISTIAN CARE: S&P Lowers Rating on Revenue Debt to 'BB-' ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Louisville & Jefferson County Metropolitan Government, Ky.'s revenue debt three notches to 'BB-' from 'BBB-', issued for Christian Care Communities. The outlook is negative. The downgrade reflects the rating service's opinion of Christian Care Communities' weakened fiscal 2013 operating results due, in part, to increased expenses related to the opening of a personal care living facility and one-time adjustments related to bad debt and ongoing decreases in unrestricted cash and investments. "We could lower the rating further if management cannot demonstrate meaningful progress toward reducing operating losses and rebuilding unrestricted reserves such that there is more flexibility between the required debt covenants and actual results. We could also lower the rating further if Christian Care cannot secure renewals for its outstanding line of credit or letter of credit," said Standard & Poor's credit analyst Margaret McNamara. "We could revise the outlook to stable if Christian Care were to experience significant improvement in operating performance with sustained debt service coverage of 2x and improved balance sheet metrics, particularly the unrestricted- reserves-to-long-term debt ratio. In addition, we would view management's successful renewal of the letter of credit favorably." Standard & Poor's also notes that since its last review, Christian Care Communities' full fiscal 2013 audited results were significantly weaker than first-quarter of fiscal 2013 results, which had showed signs of improvement. Similarly, audited fiscal 2012 results were worse than the unaudited fiscal year-end results management had reported to the rating service. CHOICE GENETICS: Bankruptcy Judge Confirms Ch. 11 Plan ------------------------------------------------------ Jacqueline Palank, writing for Daily Bankruptcy Review, reported that a bankruptcy judge has approved Choice Genetics USA LLC 's Chapter 11 plan, which repays all creditors of the swine genetics company in full. According to the report, Judge Lee M. Jackwig of the U.S. Bankruptcy Court in Des Moines, Iowa, on Aug. 21, confirmed the plan of reorganization, court papers show, paving the way for Choice Genetics to emerge from Chapter 11 protection. About Choice Genetics Des Moines, Iowa-based swine genetics company Choice Genetics USA LLC, on Feb. 13 sought Chapter 11 bankruptcy protection as the result of an "unforeseen" arbitration award entered against it in a fight with Scidera Inc. The case is In re Choice Genetics USA, LLC, Case No. 14-00242 (S.D. Iowa). The case is assigned to Judge Lee M. Jackwig. The Debtor's counsel is Jeffrey D Goetz, Esq., and Donald F. Neiman, Esq., at Bradshaw, Fowler, Proctor & Fairgrave PC, in Des Moines, Iowa. CLOUDEEVA INC: Bartronics Asia Wants Case Dismissed --------------------------------------------------- Bartronics Asia PTE Ltd. asks the U.S. Bankruptcy Court for the District of New Jersey to dismiss the Chapter 11 cases of Cloudeeva, Inc., and its affiliates, claiming that the cases were not filed in good faith. On Aug. 15, 2014, the Debtors filed with the Court a memorandum of law in opposition to BAPL's motion for the appointment of a Chapter 11 trustee or, in the alternative, the dismissal of the Chapter 11 cases. The Debtors say in the filing that BAPL seeks the appointment of a Chapter 11 trustee or dismissal of the Chapter 11 cases based on allegations of fraud, dishonesty and mismanagement, none of which are supported by competent evidence and all of which are unrelated to the operation of the Debtors' business. The Debtors deny the allegations. The Debtors want their current management team to remain in place. The Debtors complain that the appointment of a Chapter 11 trustee will be very disruptive to the current business operations, and could result in loss of customers, key consultants, vendors and financing opportunities. A copy of the Debtors' memorandum of law in opposition to the dismissal motion is available for free at: http://bankrupt.com/misc/CLOUDEEVAINC_96_dismissal.pdf In the Aug. 20 response to the Debtors' objection, BAPL states that if these cases are to continue in Chapter 11, a trustee must be appointed because Adesh Tyagi, the sole director and officer of Cloudeeva, has proven that he is unfit to serve as a fiduciary to the Debtors, their creditors, shareholders, and other stakeholders (including employees and contractors). BAPL says that by the Debtors' own admission, Mr. Tyagi, the sole director and officer of Cloudeeva, is taking advantage of the customer unease caused by the Chapter 11 filings by transferring customer contracts to Systems America, a company controlled by Mr. Tyagi's wife, without full disclosure or the approval of this Court, thereby creating a windfall for Mr. Tyagi's family at the expense of the Debtors' estates. However, in the weeks since the cases were commenced, it has become clear to BAPL that the best interests of creditors, shareholders, and the Debtors' estates will not be served by continuing in Chapter 11 (even under the supervision of a trustee), but only by dismissal of these cases in their entirety, BAPL states in the Aug. 20 filing. According to BAPL, the cases must be dismissed because the continuation of these cases will serve no valid bankruptcy purpose. The Debtors here have submitted no evidence identifying any legitimate bankruptcy purpose for these cases. BAPL claims that among other things, the cases present a prime example of a two-party controversy that does not belong in bankruptcy. The Debtors advised the Court that "at the end of the day, what we have here is a difficult shareholder dispute." The thrust of the cases is a fight between BAPL and Mr. Tyagi for control of Cloudeeva Delaware. BAPL is the 62% majority shareholder of Cloudeeva Florida, holds an unsecured claim of approximately $6 million against Cloudeeva Delaware, and remains the only equity holder or unsecured creditor to have actively participated in the cases. BAPL was the only creditor to attend the meeting to appoint an official committee of unsecured creditors; as a result, no committee was formed. According to BAPL, the pool of unsecured claims in the cases is small and consists primarily of trade debt, the majority of which has been (or will soon be) paid pursuant to the Court's critical vendor order. BAPL states that the timing of the filing of the cases leaves no doubt that Mr. Tyagi caused their initiation in order to avoid a decision by the California Court on BAPL's receiver motion and a conclusion of the California arbitration, both of which would have likely resulted in Mr. Tyagi being ousted from control of the company. "The California Court overseeing the arbitration would have heard BAPL's receiver motion -- which was filed at the invitation of the California Court -- the morning after these Cases were commenced, and the JAMS arbitration would have concluded this week," BAPL says. A copy of BAPL's Aug. 20 response is available for free at: http://bankrupt.com/misc/CLOUDEEVAINC_110_dismissalresp.pdf About Cloudeeva, Inc. Cloudeeva, Inc., a public company previously known as Systems America, Inc., is a global cloud services and technology solutions company specializing in cloud, big data and mobility solutions and services. The company provides information technology staffing services to major clients and third party vendors in the United States and India. The company headquarters are in East Windsor, New Jersey, with regional offices in California, Illinois and international offices in India. Cloudeeva, Inc., and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-24874) in Trenton, New Jersey, on July 21, 2014. Cloudeeva estimated assets of at least $10 million and debt of less than $10 million. The company said only $209,000 is owing to its lender Prestige Capital Corp. and more than $5.2 million is owed for trade vendor payables. The cases are assigned to Judge Kathryn C. Ferguson. The cases are jointly administered under Lead Case No. 14-24874. The Debtors have tapped Lowenstein Sandler LLP as counsel, and Kurtzman Carson Consultants LLC as claims and noticing agent. According to the docket, the Debtors' exclusive right to file a plan expires on Nov. 18, 2014. CLOUDEEVA INC: Court Okays Payment of Critical Vendors' Claims -------------------------------------------------------------- The Hon. Kathryn C. Ferguson of the U.S. Bankruptcy Court for the District of New Jersey entered a final order authorizing Cloudeeva, Inc., and its affiliates to pay pre-petition claims of certain critical vendors. If a critical vendor refuses to supply goods to the Debtors on customary trade terms following payment of any portion of its critical vendor claim, or fails to comply with any trade agreement it entered into with the Debtors, the Debtors are authorized to (i) declare that any trade agreement between the Debtors and the critical vendor is terminated (if applicable), and (ii) declare that any payments made to the critical vendor on account of its critical vendor claim, whether pursuant to a trade agreement or otherwise, be deemed to have been in payment of then-outstanding post-petition claims of the critical vendor and any further payments contemplated under a trade agreement would not be due or payable without further order of the Court. As reported by the Troubled Company Reporter on July 24, 2014, the Debtors sought court approval to pay prepetition claims of certain vendors that are critical to operations, up to $1.23 million on an interim basis, and up to $1.45 million on a final basis. The Debtors have determined that 62 of their vendors, who are collectively owed $1.45 million as of the Petition Date, are critical vendors. Fifty-one of the critical vendors, who are owed $905,000 as of the Petition Date, are consulting companies that provide or previously provided consultants to the Debtors for placement on-site with the Debtors' customers. On Aug. 7, 2014, Robert Kaleta, creditor and former senior vice president of business development for Cloudeeva, Inc., filed an objection to the Debtors' motion to pay allegedly critical vendor Cloudeeva India. Mr. Kaleta filed a suit against Cloudeeva and Cloudeeva President and CEO Adesh Tyagi in the Superior Court of the State of California for Contra Costa County in a whistleblower action under California Labor Code Section 1102.5 on the grounds that Mr. Tyagi fired Mr. Kaleta two days after Mr. Kaleta reported to Mr. Tyagi that Cloudeeva was involved in multiple and widespread violations of immigration law in the placement of Indian nationals for employment in the U.S. Cloudeeva filed a notice of stay in the state court action. Mr. Kaleta claimed in its Aug. 7 court filing that he has substantial employment-related claims against Cloudeeva that Cloudeeva is attempting to forestall by filing its present bankruptcy. Despite the financial distress that Mr. Tyagi caused Mr. Kaleta by abruptly firing him in retaliation for reporting violations of the law and now forcing creditor Mr. Kaleta to pursue those claims in the bankruptcy court, Mr. Kaleta learned that Mr. Tyagi sought court approval to transfer $145,000 per month on an on-going basis to a company controlled by his father in India. Mr. Kaleta stated that Cloudeeva's proposal to pay $145,000 per month to an Indian company owned by Cloudeeva's CEO's father and whose only customer is his son's business, is a transparent attempt to improperly spirit money out of the country, parking it in friendly hands irretrievably beyond the reach of Cloudeeva's creditors, including Mr. Kaleta. Mr. Kalate objected to this effort to transfer substantial assets on an ongoing monthly basis to a close family member of the debtor's CEO located overseas. Mr. Kaleta asked that the Court deny Cloudeeva's request as to Cloudeeva India and in lieu of paying $145,000 per month to Cloudeeva India, the Court order that these services be put out for competitive bid and an independent third party service provider perform these functions in order to ensure that the $145,000 per month is not at best, the result of a prior pre- existing 'sweetheart' deal between father and son designed, for example, to effectuate the repatriation of U.S. profits offshore and at worst, a scheme to improperly defeat creditors' claims. A copy of the objection is available for free at: http://bankrupt.com/misc/CLOUDEEVAINC_63_cirticalvendorsobj.pdf Mr. Kaleta is represented by: Law Offices of Paul B. Justi Paul B. Justi, Esq. 1981 North Broadway, Swuite 250 Walnut Creek, CA 94596 Tel: (925) 256-7900 Fax: (925) 256-9204 E-mail: pbjusti@comcast.net About Cloudeeva, Inc. Cloudeeva, Inc., a public company previously known as Systems America, Inc., is a global cloud services and technology solutions company specializing in cloud, big data and mobility solutions and services. The company provides information technology staffing services to major clients and third party vendors in the United States and India. The company headquarters are in East Windsor, New Jersey, with regional offices in California, Illinois and international offices in India. Cloudeeva, Inc., and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-24874) in Trenton, New Jersey, on July 21, 2014. Cloudeeva estimated assets of at least $10 million and debt of less than $10 million. The company said only $209,000 is owing to its lender Prestige Capital Corp. and more than $5.2 million is owed for trade vendor payables. The cases are assigned to Judge Kathryn C. Ferguson. The cases are jointly administered under Lead Case No. 14-24874. The Debtors have tapped Lowenstein Sandler LLP as counsel, and Kurtzman Carson Consultants LLC as claims and noticing agent. According to the docket, the Debtors' exclusive right to file a plan expires on Nov. 18, 2014. CLOUDEEVA INC: Has Final Okays Financing From Prestige Capital -------------------------------------------------------------- The Hon. Kathryn C. Ferguson of the U.S. Bankruptcy Court for the District of New Jersey entered a final order approving factoring agreement and authorizing Cloudeeva, Inc., and its affiliates to obtain financing from Prestige Capital Corporation. As reported by the Troubled Company Reporter on July 24, 2014, the Debtors sought the Court's permission to keep their factoring agreement with Prestige Capital in order to meet their payroll obligations to employees. Pursuant to the Factoring Agreement, Prestige Capital would pay the Debtors 80% of the face value of the accounts sold under the Factoring Agreement up to a maximum amount of $2 million. Prestige Capital would then hold in reserve the difference between the purchase price for the receivables purchased and the 80% down payment. Provided that there were no outstanding charge backs or disputes, Prestige Capital would pay the reserve, less any sums due Prestige Capital within five business days of the date on which the accounts were collected. Prestige Capital would earn a fee on each account purchased based on a sliding scale depending on when the account was collected. Pursuant to that pre-petition relationship, Prestige Capital asserts that the Debtors owe Prestige Capital for charge backs, fees, and other costs as of the Petition Date, subject to specification, in the approximate amount of $150,000, which sums Prestige Capital alleges is property secured by a valid, perfected enforceable first priority security interest in the pre-petition collateral. Prestige Capital is willing to provide the Debtor with post- petition financing through the purchase of open and eligible accounts receivable in accordance with the terms and provisions of the proposed Factoring Agreement, so to enable the Debtor to continue to operate its business. The Debtors require this post-petition financing in order to continue to operate its business, and the Debtor has been unable to obtain unsecured credit or to obtain secured credit on any basis other than that offered by Prestige Capital. Unless the post-petition financing offered by Prestige Capital is obtained, the Debtor will be unable to operate its business, to preserve its assets, or otherwise to protect the interests of its creditors. A copy of the final order is available for free at: http://bankrupt.com/misc/CLOUDEEVAINC_109_financingord.pdf The Court previously entered an interim order on Aug. 13, 2014, approving the Factoring Agreement and authorizing the financing from Prestige Capital. The Court authorized the Debtor to sell its accounts to Prestige Capital through and including Aug. 19, 2014, such that the advances made by Prestige Capital to the Debtor do not exceed $900,000. The Debtor was further authorized to sell additional accounts to Prestige Capital through and including Aug. 19, 2014, such that Prestige Capital may make additional advances to the Debtor up to $450,000 provided that for each advance BPL consents to or the Court enters a further order authorizing payment of these expenses from the advance: (i) pre-petition sums due to American Express, in an amount not to exceed $284,069.82; (ii) additional critical vendors; (iii) an additional $70,000 to Cloudeeva India pursuant to the motion to approve payment of pre-petition claims of foreign vendors; and (iv) reimbursement of immigration fees paid by recruits whose U.S. visa applications were not approved, in an amount not to exceed $24,000. A hearing on the entry of a final court order was set for Aug. 20, 2014. About Cloudeeva, Inc. Cloudeeva, Inc., a public company previously known as Systems America, Inc., is a global cloud services and technology solutions company specializing in cloud, big data and mobility solutions and services. The company provides information technology staffing services to major clients and third party vendors in the United States and India. The company headquarters are in East Windsor, New Jersey, with regional offices in California, Illinois and international offices in India. Cloudeeva, Inc., and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-24874) in Trenton, New Jersey, on July 21, 2014. Cloudeeva estimated assets of at least $10 million and debt of less than $10 million. The company said only $209,000 is owing to its lender Prestige Capital Corp. and more than $5.2 million is owed for trade vendor payables. The cases are assigned to Judge Kathryn C. Ferguson. The cases are jointly administered under Lead Case No. 14-24874. The Debtors have tapped Lowenstein Sandler LLP as counsel, and Kurtzman Carson Consultants LLC as claims and noticing agent. According to the docket, the Debtors' exclusive right to file a plan expires on Nov. 18, 2014. CLOUDEEVA INC: Taps Lowenstein Sandler as Bankruptcy Counsel ------------------------------------------------------------ Cloudeeva, Inc., and its affiliates ask the Hon. Kathryn C. Ferguson of the U.S. Bankruptcy Court for the District of New Jersey for authorization to employ Lowenstein Sandler LLP as counsel to the Debtors, effective as of the Petition Date. A hearing for the Court to consider the employment of Lowenstein Sandler is September 9, 2014 at 10:00 a.m. Lowenstein Sandler will, among other things, provide the Debtors with advice and preparing all necessary documents regarding debt restructuring, bankruptcy and asset dispositions. Lowenstein Sandler will be paid at these hourly rates. Partners $500 - $985 Senior Counsel and Counsel $385 - $685 Associates (generally less than 6 years experience) $275 - $480 Paralegals and Legal Assistants $160 - $270 To the best of the Debtors' knowledge, the members, counsel, and associates of Lowenstein Sandler do not have any connection with the Debtors, their creditors, or any other party-in-interest, or their respective attorneys. The Debtors submit that Lowenstein Sandler is "disinterested" and dose not hold or represent an interest adverse to the Debtors' estates. On Aug. 19, 2014, the Court entered an order amending the order authorizing the retention of Kurtzman Carson Consultants LLC as claims and noticing agent for the Debtors as of the Petition Date. These paragraphs of the services agreement are stricken: (i) Paragraph VIII - Bank Accounts; (ii) Paragraph IX. B. - Limitation of Liability of KCC; and (iii) Paragraph XVII ? Arbitration. In all other respects, the terms of the initial KCC court order will remain in full force and effect. About Cloudeeva, Inc. Cloudeeva, Inc., a public company previously known as Systems America, Inc., is a global cloud services and technology solutions company specializing in cloud, big data and mobility solutions and services. The company provides information technology staffing services to major clients and third party vendors in the United States and India. The company headquarters are in East Windsor, New Jersey, with regional offices in California, Illinois and international offices in India. Cloudeeva, Inc., and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-24874) in Trenton, New Jersey, on July 21, 2014. Cloudeeva estimated assets of at least $10 million and debt of less than $10 million. The company said only $209,000 is owing to its lender Prestige Capital Corp. and more than $5.2 million is owed for trade vendor payables. The cases are assigned to Judge Kathryn C. Ferguson. The cases are jointly administered under Lead Case No. 14-24874. The Debtors have tapped Kurtzman Carson Consultants LLC as claims and noticing agent. According to the docket, the Debtors' exclusive right to file a plan expires on Nov. 18, 2014. CLOUDEEVA INC: Taps Punhani to Handle Matters of Immigration Law ---------------------------------------------------------------- Cloudeeva, Inc., and its affiliates seek authorization from the Hon. Kathryn C. Ferguson of the U.S. Bankruptcy Court for the District of New Jersey to employ, effective as of the Petition Date, Punhani Law Firm LLC as special counsel to the Debtors, to continue to provide the legal services provided prior to the Petition Date, including matters of immigration law, filings with United States Citizenship and Immigration Services and Department of Labor, filing H1-B Specialty Occupation Worker petitions (I-129H) for Beneficiaries and Green Card Processing. Punhani Law will coordinate with the Debtors and Lowenstein Sandler LLP, to ensure that the services provided by Punhani Law and Lowenstein Sandler will be complimentary of each other and not duplicative. Ankush Punhani, Esq., a partner at Punhani Law, attested to the Court that the firm does not hold or represent any interest adverse to the Debtors or their estates with respect to the matters for which it is being employed. Currently, Punhani Law is counsel of record on approximately 30 petitions and requests from USCIS that require attention. During the Chapter 11 cases, Punhani Law will apply to the Court for allowance of compensation and reimbursement of actual and necessary expenses. The Debtors and Punhani Law have agreed that the firm will be paid its customary rates at a discount for services rendered. On Aug. 20, 2014, the Debtors filed a motion for an order authorizing the Debtors to file the schedule of Punhani Law fees under seal in order to protect the confidential commercial information related to the discounted fees. About Cloudeeva, Inc. Cloudeeva, Inc., a public company previously known as Systems America, Inc., is a global cloud services and technology solutions company specializing in cloud, big data and mobility solutions and services. The company provides information technology staffing services to major clients and third party vendors in the United States and India. The company headquarters are in East Windsor, New Jersey, with regional offices in California, Illinois and international offices in India. Cloudeeva, Inc., and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-24874) in Trenton, New Jersey, on July 21, 2014. Cloudeeva estimated assets of at least $10 million and debt of less than $10 million. The company said only $209,000 is owing to its lender Prestige Capital Corp. and more than $5.2 million is owed for trade vendor payables. The cases are assigned to Judge Kathryn C. Ferguson. The cases are jointly administered under Lead Case No. 14-24874. The Debtors have tapped Lowenstein Sandler LLP as counsel, and Kurtzman Carson Consultants LLC as claims and noticing agent. According to the docket, the Debtors' exclusive right to file a plan expires on Nov. 18, 2014. COATES INTERNATIONAL: Up to 40 Million Common Shares for Resale --------------------------------------------------------------- Coates International, Ltd., filed with the U.S. Securities and Exchange Commission a prospectus relating to the resale of up to 40,000,000 shares of its common stock, par value $0.0001 per share, issuable to Southridge Partners LLC, pursuant to a "put right" under an equity purchase agreement. The EP Agreement permits the Company to "put" up to $10,000,000 in shares of the Company's common stock to Southridge over a period of up to 36 months. The Company will not receive any proceeds from the sale of these shares of common stock. However, the Company will receive proceeds from the sale of securities pursuant to the Company's exercise of this put right offered by Southridge. The Company will bear all costs associated with this registration. The Company's Common Stock is traded on OTCQB; an OTC market tier for companies that report to the SEC. Investors can find quotes and market information for the Company at www.otcmarkets.com under the ticker symbol "COTE". Only a limited public market currently exists for the Company's Common Stock. On Aug. 15, 2014, the closing price of the Company's common stock was $0.03 per share. A full-text copy of the Form S-1 prospectus is available at: http://is.gd/3ekEGm About Coates International Based in Wall Township, N.J., Coates International, Ltd. (OTC BB: COTE) -- http://www.coatesengine.com/-- was incorporated on August 31, 1988, for the purpose of researching, patenting and manufacturing technology associated with a spherical rotary valve system for internal combustion engines. This technology was developed over a period of 15 years by Mr. George J. Coates, who is the President and Chairman of the Board of the Company. The Coates Spherical Rotary Valve System (CSRV) represents a revolutionary departure from the conventional poppet valve. It changes the means of delivering the air and fuel mixture to the firing chamber of an internal combustion engine and of expelling the exhaust produced when the mixture ignites. Coates International reported a net loss of $2.75 million on $19,200 of total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $4.53 million on $19,200 of total revenues for the year ended Dec. 31, 2012. As of March 31, 2014, the Company had $2.36 million in total assets, $5.48 million in total liabilities and a $3.11 million total stockholders' deficiency. Cowan, Gunteski & Co., P.A., in Tinton Falls, 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 continues to have negative cash flows from operations, recurring losses from operations, and a stockholders' deficiency. COCRYSTAL PHARMA: Phillip Frost Reports 47.8% Equity Stake ---------------------------------------------------------- In a Schedule 13D filed with the U.S. Securities and Exchange Commission, Phillip Frost, M.D., and Frost Gamma Investments Trust disclosed that as of Aug. 11, 2014, they beneficially owned 100,269,114 shares of common stock of Cocrystal Pharma, Inc., representing 47.8 percent of the shares outstanding. Dr. Frost is the trustee of Frost Gamma Investments Trust. Frost Gamma L.P. is the sole and exclusive beneficiary of Frost Gamma Investments Trust. Dr. Frost is one of two limited partners of Frost Gamma L.P. The general partner of Frost Gamma L.P. is Frost Gamma, Inc., and the sole shareholder of Frost Gamma, Inc., is Frost-Nevada Corporation. Dr. Frost is the sole shareholder of Frost-Nevada Corporation. The Trust acquired a total of 111,200 shares of the Company's common stock in open market transactions on Aug. 11, 2014, and Aug. 12, 2014, for a total purchase price of $32,406 using funds from working capital of the Trust. A copy of the regulatory filing is available at: http://is.gd/lvQFT4 About Cocrystal Pharma Cocrystal Pharma, Inc.'s primary business going forward is to develop novel medicines for use in the treatment of human viral diseases. Cocrystal has been developing novel technologies and approaches to create first-in-class and best-in-class antiviral drug candidates since its initial funding in 2008. Subsequent funding was provided to Cocrystal Discovery, Inc., by Teva Pharmaceuticals Industries, Ltd., or Teva, in 2011. The Company's focus is to pursue the development and commercialization of broad- spectrum antiviral drug candidates that will transform the treatment and prophylaxis of viral diseases in humans. By concentrating its research and development efforts on viral replication inhibitors, the Company plans to leverage its infrastructure and expertise in these areas. On Jan. 2, 2014, Biozone Pharmaceuticals, Inc., merged with Cocrystal Discovery, Inc. The Company was previously incorporated in Nevada under the name Biozone Pharmaceuticals, Inc. On March 18, 2014, the Company reincorporated in Delaware under the name Cocrystal Pharma, Inc. Biozone incurred a net loss of $7.96 million in 2012, as compared with a net loss of $5.45 million in 2011. The Company's balance sheet at March 31, 2014, showed $10.48 million in total assets, $12.55 million in total liabilities and a $2.07 million total stockholders' deficit. Paritz and Company. P.A., in Hackensack, New Jersey, issued a "going concern" qualification on the consolidated financial statements of Biozone for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred operating losses for its last two fiscal years, has a working capital deficiency of $5,255,220, and an accumulated deficit of $14,128,079. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. COLOREP INC: Court Dismisses Chapter 11 Cases --------------------------------------------- The Hon. Julia W. Brand of the U.S. Bankruptcy Court for the Central District of California has dismissed Colorep, Inc., et al.'s Chapter 11 cases. As reported by the Troubled Company Reporter on May 13, 2014, Colorep and Transprint USA, Inc., asked the Court to dismiss the bankruptcy cases of the Debtors. The Debtors said that the dismissal of the cases is the most cost-effective way for them to emerge from the bankruptcy proceedings and will not negatively impair the rights of any creditors. The Debtors have sold substantially all their assets in a Court-approved sale and do not anticipate making any distribution to creditors. The TCR reported on June 18, 2014, that Synergy Partners USA, LLC, and Michael Cohen sought a delay of the dismissal of the cases on the grounds that dismissal, while two administrative expense claimants' claims have not been paid, is not in the best interests of the creditors or the Debtors' estates and Synergy and Cohen will suffer prejudice if the case is dismissed before their Motion for Administrative Claims is heard. Synergy and Cohen asserted that they provided postpetition services to the Debtors for which they have not been paid. About Colorep Inc. Colorep Inc., an industrial printer from Harrisonburg, Virginia, filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 13-27689) on July 10, 2013, in Los Angeles, owing $17 million to secured lender Meserole LLC. The company licenses a fabric-dyeing process known as AirDye. Colorep's subsidiary Transprint USA Inc. also filed in Chapter 11. Transprint produces transfer-printing paper. Gary E. Klausner, Esq., at Stutman, Treister & Glatt, P.C. represents Colorep as reorganization counsel while Stubbs, Alderton & Markiles LLP serves as it special corporate counsel. Executive Sounding Board Associates Inc., served as chief restructuring officer. Meserole, LLC, is represented by Frank T. Pepler, Esq., and Stuart M. Brown, Esq., at DLA Piper LLP (US). COMMACK HOSPITALITY: Plan Confirmation Hearing on Oct. 1 -------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the bankruptcy court will convene a hearing on Oct. 1 to consider approval of the reorganization plan filed by Commack Hospitality LLC, owner of a former Wingate hotel in Brentwood, New York. According to the report, at the same Oct. 1 hearing, secured lender Stabilis Master Fund III LLC will ask the court to dismiss the Chapter 11 case or allow foreclosure, or terminate so-called exclusivity so that it can file a competing plan. About Commack Hospitality Commack Hospitality, LLC, filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y. Case No. 14-70931) on March 10, 2014. The petition was signed by Viral Patel as managing member. In its schedules and statements, the Debtor listed $17 million in assets and $13 million in liabilities. Laurence May, Esq., and Mark Tsukerman, Esq., of Cole Schotz Meisel Forman & Leonard PA serve as the Debtor's counsel. Judge Alan S. Trust presides over the case. COMPETITIVE TECHNOLOGIES: Now Known as Calmare Therapeutics ----------------------------------------------------------- The annual meeting of shareholders of Competitive Technologies, Inc., was held on Aug. 14, 2014, at which the shareholders: 1. elected Peter Brennan, Rustin R. Howard, Conrad Mir, Robert G. Moussa, Carl D. O'Connell and Stanley K. Yarbro, Ph. D., as directors to hold office until the next annual meeting of the Company's shareholders or until their successors have been elected and qualified; 2. ratified the selection of Mayer Hoffman McMann, CPAs, as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2014; 3. approved an amendment to the Certificate of Incorporation to change the name of the Company from Competitive Technologies, Inc., to Calmare Therapeutics Incorporated; and 4. approved an amendment to the Certificate of Incorporation to effect a one-for-ten reverse stock split of the Company's common stock. On Aug. 20, 2014, Competitive Technologies, Inc. changed its name to Calmare Therapeutics Incorporated, pursuant to the filing of an Amendment to the Company's Articles of Incorporation with the Secretary of State of the State of Delaware. About Competitive Technologies Fairfield, Conn.-based Competitive Technologies, Inc. (OTC QX: CTTC) -- http://www.competitivetech.net/-- was established in 1968. The Company provides distribution, patent and technology transfer, sales and licensing services focused on the needs of its customers and matching those requirements with commercially viable product or technology solutions. Sales of the Company's Calmare(R) pain therapy medical device continue to be the major source of revenue for the Company. Competitive Technologies incurred a net loss of $3 million on $546,139 of gross profit from product sales in 2012, as compared with a net loss of $3.59 million on $1.86 million of gross profit from product sales in 2011. The Company's balance sheet at Sept. 30, 2013, showed $4.70 million in total assets, $10.42 million in total liabilities, and a $5.71 million total shareholders' deficit. Mayer Hoffman McCann CPAs (The New York Practice of Mayer Hoffman McCann P.C.), 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 at Dec. 31, 2012, the Company has incurred operating losses since fiscal year 2006. CONSTRUCTORA DE HATO: Fails to File Plan; Case Dismissed -------------------------------------------------------- The Hon. Brian K. Tester of the U.S. Bankruptcy Court for the District of Puerto Rico has dismissed Constructora De Hato's Chapter 11 bankruptcy case because the Debtor failed to comply with the July 3, 2014 court order that gave the Debtor until 10 days to show cause as to why they failed to file their plan of reorganization and accompanying disclosure statement. As reported by the Troubled Company Reporter on May 26, 2014, the Court extended until July 1, 2014, the time by which the Debtor should file a plan and a disclosure statement. The CR reported that the Debtor said the offers it received thus far for the purchase of its realty had been unreasonable, thus it had been unable to liquidate its realty and raise the necessary funds to execute a feasible plan. About Constructora De Hato San Juan, Puerto Rico-based Constructora De Hato owns parcels of land in Puerto Rico with an aggregate value of $1.82 million. It filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-02876-11) in Old San Juan, Puerto Rico, on April 13, 2012. The petition was signed by Waldemar Carmona Gonzalez, president. The Debtor is represented by Charles Alfred Cuprill, Esq., at Charles A. Curpill, PSC Law Office, in San Juan. Luis R. Carrasquillo & Co., PSC, serves as financial consultant. In its schedules, as amended, the Debtor disclosed $10,701,724 in assets and $6,847,693 in liabilities. CRAILAR TECHNOLOGIES: Incurs $1.96-Mil. Loss in June 28 Quarter --------------------------------------------------------------- CRAiLAR Technologies Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $1.96 million on $742,564 of revenues for the thirteen week period ended June 28, 2014, compared with a net loss of $3.03 million on $182,376 of revenues for the thirteen- week period ended June 29, 2013. The Company's balance sheet at June 28, 2014, showed $22.82 million in total assets, $25.61 million in total liabilities, and a total stockholders' deficit of $2.79 million. A copy of the Form 10-Q is available at: http://is.gd/ZZLTjb CRAiLAR Technologies Inc., a development stage company, is engaged in the business of technological development and of natural sustainable fibers. It primarily deploys and produces its proprietary CRAiLAR Flax fibers, as well as CRAiLAR processing technologies targeted at the natural yarn and textile, and the cellulose pulp and composites industries. The company develops CRAiLAR Fiber for textiles, which is flax, hemp, or other sustainable bast fiber available in various blends, textures, colors, and applications; and CRAiLAR technologies for the processing of cellulose-based fibers in pulp and paper, and high grade dissolving pulp for use in the additives, ethers, and the performance apparel industries. It also processes CRAiLAR shive and seed products. The company was formerly known as Naturally Advanced Technologies Inc. and changed its name to Crailar Technologies Inc. in October 2012. Crailar Technologies Inc. was founded in 1998 and is headquartered in Victoria, Canada. CRUNCHIES FOOD: Seeks Authority to Use Cash Collateral ------------------------------------------------------ Crunchies Food Company, LLC, seeks authority from the U.S. Bankruptcy Court Central District of California, Santa Barbara Division, to use cash collateral to operate, maintain and preserve its business. The Debtor said it has no ability to continue to operate its business and maintain and preserve the going-concern value of its business unless the Debtor has immediate access to and use of its cash to pay the Debtor's ordinary operating expenses. In December 2013, the Debtor received a loan for $1.5 million from Seung Chung, as Trustee of the Chung Family Trust, and then an additional $500,000 in February 2014, which loan is allegedly secured by all of the Debtor's assets. The Debtor also received two loans in the amounts of $300,000 and $500,000 in 2010 and a third loan in the amount of $4.2 million in October 2011 for a total loan amount of $5 million from the Donald Delaski Revocable trust, which loan is allegedly secured by all of the Debtor's assets. The Provident Trust Group, LLC, and The Chung Family Trust, filed an objection to the proposed use of cash collateral, complaining that the Debtor cannot possibly satisfy its burden of demonstrating that the Senior Secured Lenders are adequately protected by the collateral that secured the repayment of the Senior Secured Lenders' loan, or by the Debtor's prospective profitable operations, the Debtor relies upon an enterprise value that was apparently calculated based upon a multiple of the Debtor's sales. The use of this valuation is not supported by the law or any competent evidence, the Senior Secured Lenders assert. The Donald Delaski Revocable Trust complains that the Cash Collateral Motion is not accompanied by any current or historical financial statements, and without this financial data, the Delaski Trust cannot obtain a full understanding of the Debtor's actual state of affairs. Chaucer Foods UK Limited, a supplier that the Debtor failed to pay, relates that it is currently in discussions with secured creditors Chung and Delaski and intends to submit an offer to provide for the sale of the Debtor's assets to a to-be-formed purchaser and would result in the waiver of Chung's $2 million claim, DeLaski's $5 million claim, and Chaucer's $1 million claim. Chaucer asked that the Court continue the hearing on the Cash Collateral Motion to Aug. 25, or the earliest date that is convenient for the Court thereafter, and pending the continued hearing the Debtor's use of cash collateral should be limited to the payment of only those expenses necessary to prevent irreparable harm and should be based on the Debtor's current cash on hand. The Senior Secured Lenders are represented by: Richard W. Esterkin, Esq. MORGAN, LEWIS & BOCKIUS LLP 300 South Grand Avenue Twenty-Second Floor Los Angeles, CA 90071-3132 Tel: (213) 612-2500 Fax: (213) 612-2501 E-mail: resterkin@morganlewis.com The Delaski Trust is represented by: Sean A. O'Keefe, Esq. OKEEFE & ASSOCIATES LAW CORPORATION, P.C. 4675 MacArthur Court, Suite 550 Newport Beach, CA 92660 Tel: (949) 334-4135 Fax: (949) 274-8639 E-mail: sokeefe@okeefelc.com Chaucer is represented by: Evan D. Smiley, Esq. Philip E. Strok, Esq. Robert S. Marticello, Esq. WEILAND, GOLDEN, SMILEY, WANG EKVALL & STROK, LLP 650 Town Center Drive, Suite 950 Costa Mesa, CA 92626 Tel: (714) 966-1000 Fax: (714) 966-1002 E-mail: esmiley@wgllp.com pstrok@wgllp.com rmarticello@wgllp.com About Crunchies Food 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. CRUNCHIES FOOD: Section 341(a) Meeting Scheduled for Sept. 18 ------------------------------------------------------------- A meeting of creditors in the bankruptcy case of Crunchies Food Company, LLC, will be held on Sept. 18, 2014, at 9:00 a.m. at 128 E Carrillo St., Santa Barbara, Calif. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Crunchies Food Company, LLC, 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 Yoo & Brill LLP, as counsel. Westlake Village, California-based Crunchies estimated $10 million to $50 million in assets and debt. DETROIT, MI: Modifies Plan To Incorporate DWSD Bonds Tender ----------------------------------------------------------- The City of Detroit filed with the U.S. Bankruptcy Court for the Eastern District of Michigan, Southern Division, a Sixth Modified Plan of Adjustment to, among other things, incorporate the proposed tender process related to Detroit Water and Sewerage Department bonds. Under the Plan, if the City votes to accept the purchase of some or all of the DWSD tendered bonds and a settlement date is finalized, bond holders' claims will be reinstated. Steven Church, writing for Bloomberg News, reported that the city offer to exchange more than $5 billion in water and sewer bonds for new debt and said a deal on a new water agency may emerge from mediation talks with its suburbs. The city, according to the Bloomberg report, will agree to form an agency to take over its water and sewage department only if the surrounding suburban counties of Macomb, Oakland and Wayne agree to drop opposition to the plan of debt adjustment. Under the refinancing plan, the city will raise $5.5 billion, about $190 million of which will be used to improve its sewage-disposal system. The rest will be used to replace the old bonds on similar terms, the Bloomberg report related. A redlined version of the Sixth Amended Plan dated Aug. 20, 2014, is available at http://bankrupt.com/misc/DETROIT_plan0820.pdf 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. DIGITAL DOMAIN: Can Probe Avoidance Actions Until Sept. 11 ---------------------------------------------------------- The Hon. Brendan L. Shannon has signed off on a stipulation between Digital Domain Media Group, Inc., the senior lenders and the Official Committee of Unsecured Creditors, granting the Committee standing with respect to D&O claims and avoidance actions. Pursuant to the Final DIP Order, the proceeds of the Avoidance Actions and the Estate D&O Claims are Cash Collateral of the Senior Lenders. The order provides for a mechanism of sharing the proceeds resulting from the liquidation of the avoidance actions and the estate D&O claims among the Senior Lenders, the Committee's professionals and "distribution creditors." In addition, certain intangible assets of the Debtors' estates that are DIP Collateral remain to be liquidated in these chapter 11 cases to maximize the value of the Intangibles for the Debtors' estates. The Committee is permitted to investigate and prosecute any actions applicable to the intangible assets prior to the expiration of any applicable statute of limitations, including the tolling expiration date, which is Sept. 11, 2014. About Digital Domain Port St. Lucie, Florida-based Digital Domain Media Group, Inc. -- http://www.digitaldomain.com/-- engaged in the creation of original content animation feature films, and development of computer-generated imagery for feature films and trans-media advertising primarily in the United States. Digital Domain Media Group, Inc. and 13 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-12568) on Sept. 11, 2012, to sell its business for $15 million to Searchlight Capital Partners LP, subject to higher and better offers. The Company disclosed assets of $205 million and liabilities totaling $214 million. The Debtors also have sought ancillary relief in Canada, pursuant to the Companies' Creditors Arrangement Act in the Supreme Court of British Columbia, Vancouver Registry. Attorneys at Pachulski Stang Ziehl & Jones serve as counsel to the Debtors. FTI Consulting, Inc.'s Michael Katzenstein is the chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. An official committee of unsecured creditors appointed in the case is represented by lawyers at Sullivan Hazeltine Allinson LLC and Brown Rudnick LLP. At a bankruptcy auction, the principal part of the business was purchased by a joint venture between Galloping Horse America LLC, an affiliate of Beijing Galloping Horse Co., and an affiliate of Reliance Capital Ltd., based in Mumbai. The $36.7 million total value of the contact includes $3.6 million to cure defaults on contracts and $2.9 million in reimbursement of payroll costs. As the result of a settlement negotiated by the unsecured creditors' committee with secured lenders, there will be some recovery for the committee's constituency. DIOCESE OF GALLUP: Searches for Insurance Coverage -------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Diocese of Gallup, New Mexico, is asking a bankruptcy court to extend, for the second time, until May 12, its exclusive right to propose a Chapter 11 plan to address sexual- abuse claims. According to the report, citing court papers, the diocese said it has hired an "insurance archeologist" to determine whether the church had insurance policies that cover abuse claims. About the Diocese of Gallup, NM The Diocese of Gallup, New Mexico, principally encompasses American Indian reservations for seven tribes in northwestern New Mexico and northeastern Arizona. It is the poorest diocese in the U.S. There are 38 active priests working in the Diocese and 27 permanent deacons also serve the Diocese along with five seminarians. The Diocese and its missions, schools and ministries employ approximately 50 people, and a significant number of additional people offer their services as volunteers. The diocese sought bankruptcy protection under Chapter 11 of the Bankruptcy Code (Bankr. D. N.M. Case No. 13-bk-13676) on Nov. 12, 2013, in Albuquerque, New Mexico amid suits for sexual abuse committed by priests. The bishop previously said bankruptcy will be "the most merciful and equitable way for the diocese to address its responsibility." The abuse mostly occurred in the 1950s and early 1960s, the bishop said. The petition shows assets and debt both less than $1 million. The Diocese of Gallup is the ninth Catholic diocese to seek protection in Chapter 11 bankruptcy. DOUGLAS RAY: Summary Judgment Ruling Against Battle Ground Upheld ----------------------------------------------------------------- The Court of Appeals of Washington, Division Two, affirmed the trial court's grant of summary judgment in favor of Douglas Ray and the Estate of Irwin Jessen, its denial of Battle Ground Plaza LLC's summary judgment motion, and its award of attorney fees. BG Plaza LLC took an appeal from the superior court's (1) grant of summary judgment for Ray and Jessen on its right of first refusal claim; (2) denial of summary judgment on its seniority claim against Dean Maldonado; and (3) award of attorney fees and costs to Ray and Jessen. Ray and Jessen contracted to sell the Battle Ground Plaza Shopping Center (BG Plaza Property) to BG Plaza LLC. The contract included a right of first refusal provision for an adjacent 0.5 acre undeveloped parcel (undeveloped parcel). BG Plaza LLC argues the superior court erred by granting summary judgment for Ray and Jessen because they failed to comply with the right of first refusal provision. BG Plaza LLC argues Ray and Jessen contracted to sell the undeveloped parcel to Maldonado without advising BG Plaza LLC of the "Reciprocal Easement Agreement" for parking it entered into with Maldonado as part of the undeveloped parcel sale. According to the Appeals Court, the bankruptcy court previously approved the sale of the undeveloped parcel to Maldonado and issued a final order on the sale. Thus, BG Plaza LLC's claim is precluded under the doctrine of collateral estoppel and is an improper collateral attack. BG Plaza LLC also argues the superior court erred by denying its motion for summary judgment on its seniority claim because its rights to the BG Plaza Property are senior to any right Maldonado received in the Reciprocal Easement Agreement. The Appeals Court said that, because the sale of the BG Plaza Property has not closed, BG Plaza LLC does not have an ownership interest in the BG Plaza Property. Thus, BG Plaza LLC's seniority claim is merely hypothetical and speculative and does not present an actual, present, and existing dispute that is ripe for review. BG Plaza LLC finally argues the superior court abused its discretion when awarding Ray and Jessen attorney fees and costs and denying its request for an offset of attorney fees. "We disagree and affirm the superior court's award of attorney fees," the Appeals Court said. The case is, BATTLE GROUND PLAZA, LLC, Appellant/Cross Respondent, v. DEAN MALDONADO and JANE DOE MALDONADO, husband and wife and their marital community; MILLS END, LLC; MILLS END CENTER, LLC; DRKBG, LLC; DOUGLAS RAY; and IRWIN JESSEN; Respondents/Cross Appellants, No. 43874-7-II (Wash. App.). Counsel to Respondent: Denise Joan Lukins, Esq. LAW OFFICE OF DENISE J. LUKINS 10000 Ne 7th Ave Ste 403a Vancouver, WA, 98685-4548 Counsel for Appellant/Cross-Respondent: Ben Shafton, Esq. Attorney at Law 900 Washington St Ste 1000, Vancouver, WA, 98660-3455 Counsel for Respondent/Cross-Appellant: Richard G. Matson, Esq. Landerholm, P.S. PO Box 1086 Vancouver, WA, 98666-1086 Tel: 360-816-2506 (WA) 503-283-3393 (OR) Fax: 360-816-2549 E-mail: dick.matson@landerholm.com - and - Jerret E. Sale, Esq. BULLIVANT HOUSER BAILEY PC 1700 7th Ave Ste 1810 Seattle, WA, 98101-1397 Direct Dial: 206-521-6418 Fax: 206-386-5130 E-mail: jerret.sale@bullivant.com - and - Deborah Lynn Carstens, Esq. Attorney at Law 1821 N 53rd St Seattle, WA, 98103-6115 Douglas M. Ray filed a Chapter 11 petition on August 10, 2005. Mr. Ray and Irwin P. Jessen were co-owners of commercial real estate consisting of a shopping center commonly known as the Battle Ground Plaza Shopping Mall. The Debtor and Mr. Jessen later sold the mall to Battle Ground Plaza, LLC. DOWNER DOWNS: Reports $164-K Net Earnings in Q2 Ended June 30 ------------------------------------------------------------- Dover Downs Gaming & Entertainment, Inc., filed its quarterly report on Form 10-Q disclosing net income of $164,000 on $46.21 million of revenues for the three months ended June 30, 2014, compared with net income of $491,000 on $50.05 million of revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $182.74 million in total assets, $67.26 million in total liabilities, and total stockholders' equity of $115.48 million. A copy of the Form 10-Q is available at: http://is.gd/d6bomO Dover Downs Gaming & Entertainment, Inc., is a gaming and entertainment destination complex in Dover, Delaware. The Dover complex housed a 165,000-square foot casino that features popular table games and the latest slot machines, a 500-room full-serviced hotel with concert hall facilities, and a harness racing track with pari-mutuel wagering on horse races. DREIER LLP: Convicted Ex-Lawyer Called to Testify in Court ---------------------------------------------------------- Sara Randazzo, writing for Daily Bankruptcy Review, reported that Sheila Gowan, the lawyer unwinding the Marc Dreier's former law firm, said Mr. Dreier, who is serving a 20-year sentence for duping investors out of hundreds of millions of dollars, shouldn't be prevented from being temporarily released from prison to testify at an upcoming trial. According to the report, Ms. Gowan has spent the past five-and-a-half years liquidating Dreier LLP to help repay its debts after Mr. Dreier admitted to using his law firm's funds to pay investors who purchased $700 million worth of what ultimately turned out to be bogus promissory notes. About Marc Dreier and Dreier LLP Marc Dreier founded New York-based law firm Dreier LLP -- http://www.dreierllp.com/-- in 1996. On Dec. 8, 2008, the U.S. Securities and Exchange Commission filed a suit, alleging that Mr. Dreier made fraudulent offers and sales of securities in several cities, selling fake promissory notes to hedge and other private investment funds. The SEC asserted that Mr. Dreier also distributed phony financial statements and audit opinions, and recruited accomplices in connection with that scheme. Mr. Dreier, currently in prison, was charged by the U.S. government for conspiracy, securities fraud and wire fraud (S.D.N.Y. Case No. 09-cr-00085). Dreier LLP sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 08-15051) on Dec. 16, 2008. Stephen J. Shimshak, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, was tapped as counsel. The Debtor estimated assets of $100 million to $500 million, and debts between $10 million and $50 million in its Chapter 11 petition. Sheila M. Gowan, a partner with Diamond McCarthy, was appointed Chapter 11 trustee for the Dreier law firm. Ms. Gowan is represented by Diamond McCarthy LLP. Dickstein Shapiro LLP is the trustee's special trial counsel. Wachovia Bank National Association; the Dreier LLP Chapter 11 Trustee; and Steven J. Reisman as post-confirmation representative of the bankruptcy estate of 360networks (USA) Inc. signed a petition that put Mr. Dreier into bankruptcy under Chapter 7 on Jan. 26, 2009 (Bankr. S.D.N.Y. Case No. 09-10371). Mr. Dreier pleaded guilty to fraud and other charges in May 2009. The scheme to sell $700 million in fake notes unraveled in late 2008. Mr. Dreier is serving a 20-year sentence in a federal prison in Minneapolis. The May 15, 2014, edition of The Troubled Company Reporter said the Hon. Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York confirmed the second amended Chapter 11 plan of liquidation filed by Sheila M. Gowan, the Chapter 11 trustee for Dreier LLP, and the Official Committee of Unsecured Creditors. DYNEGY INC: To Buy Assets From Duke, Energy Capital for $6.25B -------------------------------------------------------------- Michael Calia, writing for DBR High Yield, reported that Dynegy Inc. will nearly double its power generation capacity through $6.25 billion in plant acquisitions from Duke Energy Corp. and Energy Capital Partners. According to the DBR High Yield report, Dynegy will pay $2.8 billion for Duke's retail business and ownership interest in 11 power plants in the Midwest, while the deal with ECP -- worth $3.45 billion -- includes power-generation company EquiPower Resources Corp. and coal-fired facility Brayton Point Holdings. Christopher Swann, writing for The New York Times' DealBook, reported that the two deals make a return of ambition for the power company, which once tried to buy Enron and eventually went bust after a spat involving activist Carl C. Icahn. The DealBook said the new generation assets will nearly double Dynegy's capacity to 26,000 megawatts and, the company says, should more than double adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda. Dynegy emerged from Chapter 11 in 2012, together with its affiliate, Dynegy Holdings. On June 27, 2014, Judge Cecelia G. Morris of the U.S. Bankruptcy Court for the Southern District of New York issued a final decree closing the Chapter 11 cases of Dynegy Holdings, L.L.C., Dynegy Roseton, L.L.C., Dynegy Danskammer, L.L.C., Hudson Power, L.L.C., and Dynegy Northeast Generation, Inc. About Dynegy Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE: DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. Dynegy Holdings LLC and four other affiliates of Dynegy Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-38111) on Nov. 7, 2011, to implement an agreement with a group of investors holding more than $1.4 billion of senior notes issued by Dynegy's direct wholly-owned subsidiary, Dynegy Holdings, regarding a framework for the consensual restructuring of more than $4.0 billion of obligations owed by DH. If this restructuring support agreement is successfully implemented, it will significantly reduce the amount of debt on the Company's consolidated balance sheet. Dynegy Holdings disclosed assets of $13.77 billion and debt of $6.18 billion. Dynegy Inc. on July 6, 2012, filed a voluntary petition to reorganize under Chapter 11 (Bankr. S.D.N.Y. Case No. 12-36728) to effectuate a merger with Dynegy Holdings, pursuant to Holdings' Chapter 11 plan. Dynegy Holdings and its affiliated debtor-entities are represented in the Chapter 11 proceedings by Sidley Austin LLP as their reorganization counsel. Dynegy and its other subsidiaries are represented by White & Case LLP, who is also special counsel to the Debtor Entities with respect to the Roseton and Danskammer lease rejection issues. The financial advisor is FTI Consulting. The Official Committee of Unsecured Creditors in Holdings' cases has tapped Akin Gump Strauss Hauer & Feld LLP as counsel. Dynegy Holdings and its parent, Dynegy Inc., completed their Chapter 11 reorganization and emerged from bankruptcy Oct. 1, 2012. Under the terms of the DH/Dynegy Plan, DH merged with and into Dynegy, with Dynegy, Inc., remaining as the surviving entity. Dynegy Northeast Generation, Inc., Hudson Power, L.L.C., Dynegy Danskammer, L.L.C. and Dynegy Roseton, L.L.C., won confirmation of their plan of liquidation in March 2013, allowing the former operating units of Dynegy to consummate a settlement agreement resolving some lease trustee claims and sell their facilities. * * * This concludes the Troubled Company Reporter's coverage of Dynegy Inc., Dynegy Holdings, and its affiliates until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. ECOTALITY INC: Opposes Competing Plan From Car Charging Group ------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Ecotality Inc., the developer charging systems for electric vehicles, joined with the Official Committee of Unsecured Creditors in opposing a request from a buyer for permission to file a competing Chapter 11 plan. According to the report, the Debtor and the Committee both oppose the proposal from the buyer, an affiliate of Blink UYA LLC, to file a competing plan, which Blink said would offer unsecured creditors at least $1 million in additional distributions. About Ecotality Inc. Headquartered in San Francisco, California, Ecotality, Inc. (Nasdaq: ECTY) -- http://www.ecotality.com-- is a provider of electric transportation and storage technologies. Ecotality Inc. along with affiliates including lead debtor Electric Transportation Engineering Corp. sought Chapter 11 protection (Bankr. D. Ariz. Lead Case No. 13-16126) on Sept. 16, 2013, with plans to sell the business at an auction. The cases are assigned to Chief Judge Randolph J. Haines. The Debtors' lead counsel are Charles R. Gibbs, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas; and David P. Simonds, Esq., and Arun Kurichety, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Los Angeles, California. The Debtors' local counsel is Jared G. Parker, Esq., at Parker Schwartz, PLLC, in Phoenix, Arizona. FTI Consulting, Inc. serves as the Debtors' crisis manager and financial advisor. The Debtors' claims and noticing agent is Kurtzman Carson Consultants LLC. Electric Transportation estimated assets of $10 million to $50 million and debt of $100 million to $500 million. Unlike most companies in bankruptcy, Ecotality has no secured debt. It simply ran out of money. There's $5 million owing on convertible notes, plus liability on leases. Part of pre-bankruptcy financing took the form of a $100 million cost-sharing grant from the U.S. Energy Department. In view of the San Francisco-based company's financial problems, the government cut off the grant when $84.8 million had been drawn. On Sept. 24, 2013, the Office of the United States Trustee for Region 14 appointed a committee of unsecured creditors. In October 2013, the bankruptcy judge cleared Ecotality to sell most of the business to Car Charging Group Inc. for $3.3 million. Two other buyers purchased other assets for $1 million in total. EDENOR SA: Earns ARS15.8 Million in Second Quarter -------------------------------------------------- Edenor S.A. has reported a profit of ARS15.76 million for the three months ended June 30, 2014, compared to a profit of ARS1.81 billion for the same period in 2013. For the six months ended June 30, 2014, the Company reported a loss of ARS722.80 million compared to profit of ARS1.30 billion for the same period a year ago. The Company's balance sheet at June 30, 2014, showed ARS7.40 billion in total assets, ARS6.95 billion in total liabilities and ARS453.50 million in total equity. Total cash and cash equivalents at June 30, 2014, were ARS161.35 million. Edenor's capital expenditures during the second quarter of 2014 totaled ARS368.8 million, compared to ARS279.6 million in the second quarter of 2013. This increase was mainly due to the increase in costs and key facilities for ensuring the proper service provision. "Given the fact that the realization of the projected measures to revert the manifested negative trend depends, among other factors, on the occurrence of certain events that are not under the Company's control, such as the requested electricity rate increases, the Board of Directors has raised substantial doubt about the Company's ability to continue as a going concern in the term of the next fiscal year, being obliged to defer certain payment obligations, as previously mentioned, or unable to meet expectations for salary increases or the increases recorded in third-party costs," the Company stated in its report filed with the U.S. Securities and Exchange Commission. A full-text copy of the Form 6-K Report is available at: http://is.gd/7GJmf5 About Edenor SA Headquartered in Buenos Aires, Argentina, Edenor S.A. (NYSE: EDN; Buenos Aires Stock Exchange: EDN) is the largest electricity distribution company in Argentina in terms of number of customers and electricity sold (both in GWh and Pesos). Through a concession, Edenor distributes electricity exclusively to the northwestern zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires. Edenor SA reported profit of ARS 772.7 million on ARS 3.44 billion of revenue from sales for the year ended Dec. 31, 2013, as compared with a loss of ARS 1.01 billion on ARS 2.97 billion of revenue from sales in 2012. Edenor reported a net loss of ARS 291.38 million in 2011. ELBIT IMAGING: Novartis to Invest $35 Million in Gamida ------------------------------------------------------- Gamida Cell Ltd. -- in which Elbit Medical holds approximately 30.8% of the voting power -- and a vast majority of Gamida Cell's shareholders signed an Option and Investment Agreements with Novartis Pharma AG (Novartis). Elbit Medical is a subsidiary Elbit Imaging Ltd. Under the Agreements, Novartis will invest $35 million in Gamida Cell in exchange for approximately 15% of Gamida Cell's share capital and an option to purchase the holdings of the other shareholders in Gamida Cell. The Option is exercisable, for a limited period of time, following Gamida Cell achieving certain milestones relating to the development of NiCord. Gamida Cell estimates that these milestones will be met during 2015. In any event, the Option, if not exercised, will expire in first half of 2016. Upon exercising the Option, Novartis would pay other shareholders in Gamida Cell cash payments of approximately $165 million, in accordance with the terms of the Agreements. In addition, the Sellers will be entitled to potential future payments which can reach a total of $435 million, depending on certain development and regulatory milestones and on sales of Gamida Cell's products. Gamida Cell is currently conducting two Phase I/II trials using the Product to treat patients suffering from hematologic malignancies and Sickle Cell Disease. Following completion of the investment under the Agreements (and prior to the exercise of the Option) Elbit Medical will hold about 24.7% in Gamida Cell. Elbit Medical is evaluating the accounting implications of the Agreements on its financial statements. Completion of the transaction is subject to closing conditions as specified in the Agreements. "At this point in time, there is no certainty that the investment will be completed and/or that Novartis will exercise the Option and/or that the milestones will be achieved and/or the Product or any other of Gamida Cell's products will reach the market and generate earn-out payments from their sales," the Company stated in the press release filed with the U.S. Securities and Exchange Commission. 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. ENGLOBAL CORP: Amends Form 10-Q Report for Q2 to Correct Errors --------------------------------------------------------------- ENGlobal Corporation had amended its quarterly report on Form 10-Q for the quarterly period ended June 28, 2014, that was originally filed with the U.S. Securities and Exchange Commission on Aug. 8, 2014, to correct certain references caused by source document formula errors. The amended Form 10 only changes the correct amounts for the period ended June 28, 2014, for Common stock, Additional paid-in capital and Accumulated deficit and the correct amounts for the periods ended June 28, 2014, and Dec. 28, 2013, for Other current liabilities, Total current liabilities and Long term leases. A full-text copy of the Form 10-Q/A is available for free at http://is.gd/ofcgIT About ENGlobal Houston-based ENGlobal Corporation (Nasdaq: ENG) is a provider of engineering and related project services primarily to the energy sector throughout the United States and internationally. ENGlobal operates through two business segments: Automation and Engineering. ENGlobal's Automation segment provides services related to the design, fabrication and implementation of advanced automation, control, instrumentation and process analytical systems. The Engineering segment provides consulting services for the development, management and execution of projects requiring professional engineering, construction management, and related support services. ENGlobal incurred a net loss of $2.98 million for the year ended Dec. 28, 2013, a net loss of $33.60 million for the year ended Dec. 29, 2012 and a net loss of $7.07 million for the year ended Dec. 31, 2011. As of June 28, 2014, the Company had $51.02 million in total assets, $24.87 million in total liabilities and $26.14 million in total stockholders' equity. ENTEGRA POWER: Wants to Hire O'Melveny & Myers as Attorney ---------------------------------------------------------- Entegra Power Group LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ O'Melveny & Myers LLP as their attorney. A hearing is set for Sept. 3, 2014, at 11:00 a.m., to consider approval of the Debtors' employment request. Objections, if any, are due Aug. 27, 2014, at 4:00 p.m. The firm is expected to: a) advise the Debtors of their rights, powers, and duties as debtors and debtors in possession in the continued management and operation of their businesses and properties; b) prepare on behalf of the Debtors all necessary and appropriate applications, motions, draft orders, other pleadings, notices, schedules, and other documents, and reviewing all financial and other reports to be filed in the Debtors' chapter 11 cases; c) advise the Debtors concerning, and preparing responses to, applications, motions, other pleadings, notices, and other papers that may be filed and served in the Debtors' chapter 11 cases; d) advise the Debtors concerning actions that they might take to collect and recover property for the benefit of their estates; e) advise the Debtors concerning executory contracts and unexpired lease assumptions, assignments, and rejections; f) assist the Debtors in reviewing, estimating, and resolving any claims asserted against their estates; g) commence and conduct any and all litigation necessary or appropriate to assert rights held by the Debtors, protect assets of their estates, or otherwise further the goal of completing a successful reorganization; h) advise and assist the Debtors in connection with the solicitation, confirmation, and consummation of the Plan and related documents; and i) perform all other necessary legal services in connection with the Debtors' chapter 11 cases and other general corporate matters concerning the Debtors' businesses. The firm's professionals and their hourly rates: Partners $780-$1,150 Attorneys $395-$750 Legal Assistants $175-$350 The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: George A. Davis, Esq. O'MELVENY & MYERS LLP Times Square Tower 7 Times Square New York, NY 10036 Tel: +1-212-326-2000 Fax: +1-212-326-2061 Email: gdavis@omm.com About Entegra Power Group Entegra Power Group LLC and its affiliates operate an independent power company that owns one of the largest gas-fueled power plants in the United States, located in El Dorado, Arkansas. In addition, affiliate Gila River Energy Holdco LLC indirectly owns one-half of another of the country's largest gas-fueled power plants, in Gila Bend, Arizona. The Entegra entities market electric power from the two facilities to wholesale customers in the southeastern and southwestern United States. Entegra, Gila, and 10 other affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-11859) on Aug. 4, 2014. The cases are pending before the Honorable Peter J. Walsh, and the Debtors have requested that their cases be jointly administered. The Debtors have tapped Richards, Layton & Finger, P.A., as counsel, and Prime Clerk LLC as claims and notice agent. The Gila facility's direct owners are not debtors in the Chapter 11 cases, and the Gila Facility will not become property of the Debtors' estates. ENTEGRA POWER: Seeks to Employ KPMG as Auditor & Tax Consultant --------------------------------------------------------------- Entegra Power Group LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ KPMG LLP as their auditor and tax consultant. A hearing is set for Sept. 3, 2014, at 11:00 a.m., to consider approval of the Debtors' employment request. Objections, if any, are due Aug. 27, 2014, at 4:00 p.m. The firm will provide these services: a) Audit Services. Work performed for any special audit-related projects, such as research and consultation on special business or financial issues in accordance with the engagement letter dated March 5, 2014. b) Tax Consulting Services. General tax consulting services with respect to the Debtors' proposed debt/equity restructuring in accordance with the engagement letter dated Jan. 21, 2014 (as supplemented by an addendum dated March 12, 2014). c) Tax Opinion Letter. 1) Issuance of a tax opinion letter concerning the tax characterization of debt as non-recourse or recourse and the character of taxable income recognized upon relinquishment of the debt in accordance with the engagement letter dated Jan. 14, 2014 (as supplemented by an addendum dated March 12, 2014); and 2) Review of relevant debt instruments, LLC operating agreements, and other transaction documents in accordance with the engagement letter dated Jan. 14, 2014 (as supplemented by an addendum dated March 12, 2014). The firm will be paid in this manner: a) Audit Services. Audit services are billed at a reduction of approximately 45%-65% from KPMG's normal and customary hourly rates pursuant to the engagement letter dated March 5, 2014. The discounted hourly rates for audit services to be rendered by KPMG during these chapter 11 cases are as follows: Audit, Audit-Related and Other Services Hourly Rate Partners $400 Senior Managers $300 Managers $275 In-charge $200 Staff $125 b) Tax Consulting Services. The hourly rates for the tax consulting services to be rendered by KPMG during these chapter 11 cases pursuant to the engagement letter dated Jan. 21, 2014, which reflects a reduction of approximately 30% from KPMG's standard rates, are as follows: Tax Consulting Services Hourly Rate Partners $683-$788 Managing Directors $683-$718 Senior Managers/Directors $560-$700 Managers $298-$630 Senior Associates $315-$455 Associates $245 - $298 c) Tax Opinion Letter. KPMG's fees related to the preparation and issuance of a tax opinion letter will be billed at KPMG's standard hourly rates pursuant to the engagement letter dated Jan. 14, 2014, which are as follows: Tax Consulting Services Hourly Rate Partners $975-$1,125 Managing Directors $975-$1,025 Senior Managers/Directors $800-$1,000 Managers $650-$900 Senior Associates $450-$650 Associates $350-$425 The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: KPMG LLP Suite 300 1212 N. 96th Street Omaha, NE 68114-2274 Tel: +1 402 348 1450 Fax: +1 402 348 0152 About Entegra Power Group Entegra Power Group LLC and its affiliates operate an independent power company that owns one of the largest gas-fueled power plants in the United States, located in El Dorado, Arkansas. In addition, affiliate Gila River Energy Holdco LLC indirectly owns one-half of another of the country's largest gas-fueled power plants, in Gila Bend, Arizona. The Entegra entities market electric power from the two facilities to wholesale customers in the southeastern and southwestern United States. Entegra, Gila, and 10 other affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-11859) on Aug. 4, 2014. The cases are pending before the Honorable Peter J. Walsh, and the Debtors have requested that their cases be jointly administered. The Debtors have tapped Richards, Layton & Finger, P.A., as counsel, and Prime Clerk LLC as claims and notice agent. The Gila facility's direct owners are not debtors in the Chapter 11 cases, and the Gila Facility will not become property of the Debtors' estates. ENTEGRA POWER: Taps Houlihan Lokey as Financial Advisor ------------------------------------------------------- Entegra Power Group LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Houlihan Lokey Capital Inc. as their financial advisor and investment banker. A hearing is set for Sept. 3, 2014, at 11:00 a.m., to consider approval of the Debtors' employment request. Objections, if any, are due Aug. 27, 2014, at 4:00 p.m. The firm will: a) assist the Debtors in the evaluation, development, and implementation of any transaction(s) including a case under Chapter 11 of the Bankruptcy Code; b) assist the Debtors in the development and distribution of selected information, documents, and other materials related to a transaction(s); c) assist the Debtors in evaluating any transaction(s) proposals; d) assist the Debtors with the negotiation of any transaction(s), including participating in negotiations with creditors and other parties involved in any transaction(s); e) as necessary, provide expert advice, analysis, evidence, and testimony regarding financial matters related to any transaction(s), including transaction(s) structuring, valuation, and debt capacity; and f) attend meetings of the Debtors' board of directors, creditors groups, official constituencies, and other interested parties, as the Debtors and firm mutually agree. The Debtors tell the Court that they have agreed to pay the firm a nonrefundable cash fee of $200,000 upon the effective date of the engagement, and each of the first five monthly anniversaries of the effective date, and thereafter, upon each monthly anniversary of the effective date, nonrefundable cash of $150,000, provided that 100% of the first seven monthly fees and 50% of each subsequent monthly fee previously paid on a timely basis will be credited against any transaction fee; provided further that the transaction fee may not be reduced below zero. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: Matthew A. Mazzuchi Managing Director HOULIHAN LOKEY CAPITAL INC. 200 Crescent Ct., Suite 1900 Dallas, TX 75201 Tel: 214-220-8470 Fax: 214-220-3808 About Entegra Power Group Entegra Power Group LLC and its affiliates operate an independent power company that owns one of the largest gas-fueled power plants in the United States, located in El Dorado, Arkansas. In addition, affiliate Gila River Energy Holdco LLC indirectly owns one-half of another of the country's largest gas-fueled power plants, in Gila Bend, Arizona. The Entegra entities market electric power from the two facilities to wholesale customers in the southeastern and southwestern United States. Entegra, Gila, and 10 other affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-11859) on Aug. 4, 2014. The cases are pending before the Honorable Peter J. Walsh, and the Debtors have requested that their cases be jointly administered. The Debtors have tapped Richards, Layton & Finger, P.A., as counsel, and Prime Clerk LLC as claims and notice agent. The Gila facility's direct owners are not debtors in the Chapter 11 cases, and the Gila Facility will not become property of the Debtors' estates. ERF WIRELESS: Incurs $988,000 Net Loss in Second Quarter -------------------------------------------------------- ERF Wireless, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $988,000 on $1.63 million of total sales for the three months ended June 30, 2014, compared to a net loss attributable to the Company of $2.25 million on $1.56 million of total sales for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss attributable to the Company of $2.03 million on $3.22 million of total sales compared to a net loss attributable to the Company of $3.91 million on $3.47 million of total sales for the same period a year ago. The Company's balance sheet at June 30, 2014, showed $3.59 million in total assets, $11.69 million in total liabilities and a $8.10 million total shareholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/bhUPSg 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. ESSAR STEEL: CSX Transportation Opposes Delaware Chapter 15 ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that CSX Transportation Inc. is seeking to use the bankruptcy of Essar Steel Algoma Inc. to challenge the use of Chapter 15 to halt all creditor actions in the U.S. when the non- U.S. bankruptcy only deals with some creditors' claims. According to the report, CSX, owed $8.4 million by Essar for shipping goods, said the Canadian bankruptcy isn't intended to impair the collection of that debt and that the Canadian bankruptcy isn't a "collective proceeding" because it doesn't deal with all of Essar's debt. About Essar Steel Robert J. Sandoval filed a petition under Chapter 15 of the U.S. Bankruptcy Code for Essar Steel Algoma Inc., and its debtor affiliates on July 16, 2014, following the companies' initiation of a reorganization under Canada's Companies' Creditors Arrangement Act. The lead case is Essar Steel Algoma Inc., Case No. 14-11730 (D. Del.). Essar Steel operates one of Canada's largest integrated steel manufacturing facilities. The Chapter 15 case is assigned to Judge Brendan Linehan Shannon. Chapter 15 Petitioner's Counsel is Daniel J. DeFranceschi, Esq., and Amanda R. Steele, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. ESSAR STEEL: Seeks Recognition of Canadian Court Order ------------------------------------------------------ Essar Steel Algoma Inc., in its capacity as the foreign representative in a foreign proceeding under section 192 of the Canada Business Corporations Act, R.S.C. 1985, c. C-44, as amended pending before the Ontario Superior Court of Justice, Commercial List, asks the Bankruptcy Court to recognize the Canadian Court's interim order that: (a) extends the stay period through to September 30, 2014; (b) authorizes the Debtors to call, hold, and conduct a special meeting of holders of the Debtors' 9.875% senior unsecured notes to consider and, if deemed advisable, pass a resolution authorizing, adopting, and approving the proposed plan of arrangement; (c) authorizes the recording of votes of Unsecured Noteholders who will be deemed to have voted in favor of the Arrangement Resolution at the Meeting; and (d) approves the form and manner of notice to be given and the procedures to be followed with respect to the calling and conduct of the Meeting. The Interim Order establishes certain dates, deadlines, and procedures governing the means by which Unsecured Noteholders may vote to accept or reject the Proposed CBCA Plan and/or object to the Canadian Court's sanction of such plan. In substance, the Interim Order is similar to disclosure statement orders approving balloting and solicitation procedures in chapter 11 cases. The Interim Order provides as follows, among other things: A. Meeting Date and Record Date - Algoma is permitted to call, hold, and conduct the Meeting of the Unsecured Noteholders at the offices of Stikeman Elliott LLP, 199 Bay St., Suite 5300, Toronto, Ontario M5L 1B9, on September 10, 2014 at 9 a.m. (Toronto time). The record date for determination of the Unsecured Noteholders entitled to notice of, and to vote at, the Meeting shall be July 24, 2014. The only persons entitled to attend or speak at the Meeting shall be: (i) the Unsecured Noteholders or their respective proxyholders and their counsel, including counsel to the Ad Hoc Committee; (ii) the officers, directors, auditors, and advisors of Algoma; (iii) counsel to EGFL; (iv) the CBCA Director; and (v) other persons who may receive permission of the Chair of the Meeting. B. Quorum for the Meeting - The quorum at the Meeting will be not less than one person present in person at the opening of the Meeting who is entitled to vote at the Meeting either as an Unsecured Noteholder or a proxyholder. C. Notice of the Meeting - Notice of the Meeting shall be effected by Algoma sending the Meeting Materials by pre-paid ordinary or first class mail, delivery in person or electronic transmission to the Unsecured Noteholders, the directors and auditors of Algoma, counsel to the Ad Hoc Committee, and the CBCA Director. D. Votes at the Meeting - The only persons entitled to vote in person or by proxy on the Arrangement Resolution, or such other business as may be properly brought before the Meeting, will be those Unsecured Noteholders on record as of the close of business on the Record Date. Votes will be taken at the Meeting on the basis of one vote per dollar of principal amount of Unsecured Notes and that approval of the Arrangement Resolution shall require the affirmative vote of at least two-thirds (66-2/3%) of the votes cast by Unsecured Noteholders present in person or by proxy at the Meeting. E. Hearing on Application for Approval of Arrangement - Upon approval by the Unsecured Noteholders of the Plan of Arrangement, the Debtors may apply to the Canadian Court for final approval of the Arrangement on Sept. 15, 2014. F. Stay of Proceedings - The stay of proceedings granted in the Preliminary CBCA Order is extended until and including Sept. 30, 2014. The Foreign Representative submits that recognition of the Interim Order upon recognition of the Canadian Proceeding is appropriate under Section 1521(a) because it will ensure that the procedure for the conduct of, and voting at, the Meeting, as well as the notice procedures with respect thereto, are applicable regardless of whether Unsecured Noteholders are subject to the Canadian Court's jurisdiction. In that regard and otherwise, the relief requested herein is consistent with well-established policies underlying the Bankruptcy Code and is appropriate under the circumstances. CSX Objects to Motion CSX Transportation, Inc., objects to Debtors' petition for recognition and Foreign Representative's motion for orders granting provisional and final relief in aid of foreign proceeding. The relief sought by CSX is permission to pursue unpaid rail charges owed by Essar Steel Algoma Inc. which are neither the subject of nor addressed by the purported foreign proceeding currently pending in Canada. Algoma entered into an agreement with CSX to transport freight by interstate rail. Through and including May 2014, CSX transported freight on behalf of Algoma pursuant to the agreement and at Algoma's request. Algoma incurred a total of $8,367,905.55 in rail freight and related charges which remain unpaid. CSX demanded payment from Algoma and negotiated terms for payment of the outstanding rail debt but Algoma failed to pay. Brya M. Keilson, Esq., of Gellert Scali Busenkell & Brown LLC, states that the Canadian Action does not pertain to the debt owed to CSX. CSX does not hold any of the Unsecured Notes; the debt owed by Algoma to CSX is not included in any category of liabilities listed by Debtors; and none of the agreements reached between Debtors and any other parties, including the RSA, affect CSX's charges. The Debtors have repeatedly represented that, "Like certain 'prepackaged' bankruptcy cases in the U.S., the claims of all other creditors, including employees, litigants, trade vendors, licensors and other contract counterparties, and others, are unaffected by the recapitalization transaction. Accordingly, the Company will continue to pay such creditors in the ordinary course." Ms. Keilson submits that the Canadian Action is not "collective in nature." The Debtors are not attempting to restructure all of their debts -- only those select debts listed in the Motion. Thus, parties such as CSX are left without redress in Canada and would, if such proceeding were recognized, be without recourse in the United States. Such a result would be inconsistent with the purpose of Chapter 15 and would disadvantage creditors like CSX. Ms. Keilson tells the Court that the Canadian Action is not a foreign proceeding under the Bankruptcy Code and this Court should not grant its recognition. The bankruptcy stay should be removed because the Canadian Action is not a foreign proceeding and because the Canadian Action does not involve the claims that CSX is pursuing in the New York Case. A blanket stay is not necessary to complete the limited debt restructuring that the Debtors are attempting in Canada, but would prevent the resolution of claims that are not addressed by the Canadian Action. Thus, the stay should be lifted to allow CSX to maintain it efforts to collect the debt owed by Algoma. About Essar Steel Robert J. Sandoval filed a petition under Chapter 15 of the U.S. Bankruptcy Code for Essar Steel Algoma Inc., and its debtor affiliates on July 16, 2014, following the companies' initiation of a reorganization under Canada's Companies' Creditors Arrangement Act. The lead case is Essar Steel Algoma Inc., Case No. 14-11730 (D. Del.). Essar Steel operates one of Canada's largest integrated steel manufacturing facilities. The Chapter 15 case is addigned to Judge Brendan Linehan Shannon. Chapter 15 Petitioner's Counsel is Daniel J. DeFranceschi, Esq., and Amanda R. Steele, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware. FLURIDA GROUP: Posts $355-K Net Income in June 30 Quarter --------------------------------------------------------- Flurida Group, Inc., filed its quarterly report on Form 10-Q, disclosing net income of $355,770 on $15.86 million of revenues for the three months ended June 30, 2014, compared with net income of $144,295 on $10.71 million of revenues for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $9.13 million in total assets, $6.56 million in total liabilities and stockholders' equity of $2.57 million. The Company's significant customers are Electrolux and its subsidiaries located in various countries. Because of the concentration of the customers and Company's heavily reliance on the Electrolux and its subsidiaries, the Company's customer concentration may raise doubt about its ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/K2RE6b Based in Chicago, Flurida Group, Inc.'s main business is the sale of appliance parts in Asia, Europe, Australia, North and South America. The Company also sold stove, thermostat and other electronic components in 2012. FOREST OIL: S&P Retains 'B-' CCR on CreditWatch Positive -------------------------------------------------------- Standard & Poor's Ratings Services said that its 'B-' corporate credit rating and its other ratings on Denver-based Forest Oil Corp. remain on CreditWatch with positive implications, pending the close of a merger transaction with Sabine Oil & Gas LLC. "The ratings remain on Credit Watch with positive implications because of our expectation that the transaction will be completed later in 2014," said Standard & Poor's credit analyst Mark L Salierno. The rating action followed the announcement in May 2014 that Forest Oil and Sabine Oil & Gas will merge. The agreement was subsequently amended in July 2014, which revised the structure of the transaction but did not alter the economic terms. Under the revised terms, owners of Sabine Oil & Gas will contribute their interests in Sabine to Forest Oil in exchange for common and preferred stock in Forest Oil. Sabine Oil & Gas will become a wholly owned subsidiary that will subsequently be merged into Forest Oil, with Sabine's management leading the newly combined entity (which is expected to be renamed Sabine Oil & Gas Corp.). On a pro forma basis, Sabine shareholders would own an estimated 73.5% economic interest in Forest and an 80% voting interest. Sabine has committed financing in place; the newly combined entity plans to put a new reserve- based revolving credit facility in place and issue new debt to refinance Forest Oil's existing debt, which contains change-of- control put provisions. Under the proposed capital structure, S&P expects debt outstanding (including existing debt at Sabine Oil & Gas) will be at the newly combined parent company, and that Forest and Sabine subsidiaries will guarantee the parent debt, subject to certain exceptions. S&P plans to resolve the CreditWatch listing for Forest Oil on completion of the proposed transaction. S&P expects the corporate credit rating for Forest Oil would be raised by one notch to 'B', equal to the existing corporate credit rating on Sabine Oil & Gas LLC. S&P would withdraw the ratings on Forest's debt if this debt is repaid on completion of the transaction, which is now expected to close in the fourth quarter of 2014. In the event that the transaction is not completed as expected, S&P will reassess the Credit Watch implications. GENERAL MOTORS: Plaintiffs Want Recall Suit to Move Forward ----------------------------------------------------------- Stephanie Gleason, writing for Daily Bankruptcy Review, reported that one of the groups of plaintiffs trying to sue General Motors Co. over economic losses relating to the massive recall tied to faulty ignition switches is asking the bankruptcy judge to allow its lawsuit to proceed, saying the post-bankruptcy General Motors shouldn't receive the protection of the Bankruptcy Code unless it files for bankruptcy again. According to the report, in a case that is largely focused on the reasons present-day General Motors should or shouldn't still be liable for the deeds of its pre- bankruptcy predecessor, this is a fresh argument that basically says the 2009 bankruptcy sale order, which wiped the slate clean for General Motors, doesn't matter. About General Motors With its global headquarters in Detroit, Michigan, General Motors -- http://www.gm.com/-- is one of the world's largest automakers, traces its roots back to 1908. General Motors Co. was formed to acquire the operations of General Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The U.S. government provided financing. The deal was closed July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM -- General Motors Corporation -- filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. The Debtors tapped Weil, Gotshal & Manges LLP Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel; and Morgan Stanley, Evercore Partners and the Blackstone Group LLP as financial advisor. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. GENERAL MOTORS: Massive Recalls Put Strain on Dealers ----------------------------------------------------- Christina Rogers, writing for The Wall Street Journal, reported that General Motors Co.'s record string of vehicle recalls has forced new car dealers to get creative to keep their dealerships from falling behind on auto repairs. According to the Journal, recalls have long been bittersweet for auto dealers, noting that while the warranty work is reimbursed by auto makers and recalls encourage some customers to trade in their vehicles for new models, it can tie up service bays with lower-margin jobs. Dealers generally make more profit on out-of-warranty customer repairs, the Journal said. About General Motors With its global headquarters in Detroit, Michigan, General Motors -- http://www.gm.com/-- is one of the world's largest automakers, traces its roots back to 1908. General Motors Co. was formed to acquire the operations of General Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The U.S. government provided financing. The deal was closed July 10, 2009, and Old GM changed its name to Motors Liquidation Co. Old GM -- General Motors Corporation -- filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. The Debtors tapped Weil, Gotshal & Manges LLP Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel; and Morgan Stanley, Evercore Partners and the Blackstone Group LLP as financial advisor. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. GENIUS BRANDS: Inks $2 Million Revolving Loan With SunTrust ----------------------------------------------------------- Genius Brands International, Inc., entered into a revolving line of credit with SunTrust Bank with availability equal to a maximum of $2,000,000, evidence by a note, according to a document filed with the U.S. Securities and Exchange Commission. All outstanding amounts under the Note will be due and payable on Aug. 12, 2015, and will accrue interest at a rate equal to the one month LIBOR Rate (as defined in Addendum A to the Note) plus 4.75% per annum, subject to adjustment. Repayment of the Loan Amount is secured by the assets of the Company pursuant to the terms of a security agreement. The Note is subject to certain "events of default", including, but not limited to, the failure by the Company to pay any amount due and owing under the Note when it becomes due and the entry of a judgment or the issuance or service of any attachment, levy or garnishment against the Company or the property of the Company or the repossession or seizure of the property of the Company. Upon the occurrence of any proscribed event of default, SunTrust will have no obligation to fund the Note or make any advancement under the Note and SunTrust, at its option, may declare the entire outstanding principal balance, together with all interest thereon, to be immediately due and payable. Upon the occurrence of an event of default, SunTrust may, at its option, charge interest on the unpaid balance of the Note at the lesser of (i) the Interest Rate plus 4% per annum or (ii) the maximum rate allowed by law. 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. 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. GETTY IMAGES: Bank Debt Trades at 6% Off ---------------------------------------- Participations in a syndicated loan under which Getty Images Inc. is a borrower traded in the secondary market at 94.25 cents-on- the-dollar during the week ended Friday, August 22, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents a decrease of 0.65 percentage points from the previous week, The Journal relates. Getty Images Inc. pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 14, 2019, and carries Moody's B2 rating and Standard & Poor's B rating. The loan is one of the biggest gainers and losers among 205 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. GIBSON ENERGY: Moody's Hikes Sr. Unsecured Notes Rating to 'Ba2' ---------------------------------------------------------------- Moody's Investor's Services upgraded Gibson Energy Inc.'s senior unsecured notes to Ba2 from Ba3. Moody's also upgraded Gibson's Speculative Grade Liquidity Rating to SGL-2 from SGL-3. Moody's affirmed Gibson's Ba2 Corporate Family Rating and Ba2-PD Probability of Default Rating. The outlook remains stable. The senior unsecured notes were upgraded following the release of security on Gibson's revolving credit facility. Issuer: Gibson Energy Inc. Upgrades: Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3 Senior Unsecured Regular Bond/Debenture Jul 15, 2020, Upgraded to Ba2(LGD4) from Ba3(LGD4) Senior Unsecured Regular Bond/Debenture Jul 15, 2021, Upgraded to Ba2(LGD4) from Ba3(LGD4) Senior Unsecured Regular Bond/Debenture Jul 15, 2022, Upgraded to Ba2(LGD4) from Ba3(LGD4) Affirmations: Probability of Default Rating, Affirmed Ba2-PD Corporate Family Rating, Affirmed Ba2 Ratings Rationale Under Moody's Loss Given Default (LGD) Methodology, the senior unsecured notes are rated Ba2, at the CFR, due to the C$500 million senior revolving credit facility in the capital structure becoming unsecured. Gibson's Ba2 CFR reflects the company's small size, and price and volume risks inherent in its business segments which expose the company to volatile commodity prices. As well, the company is pursuing organic growth-based initiatives that will require large capital expenditures and consume free cash flow over the next few years. Favorably, the rating considers the company's low leverage, which Moody's expect to remain around 3x, and that about a third of EBITDA comes from long-term fee-based contracts, which provides visibility and stability to expected cash flows. Gibson's diversified operations in several midstream segments and solid position in each of its principal business areas provides further support to the rating. The SGL-2 Speculative Grade Liquidity Rating indicates good liquidity. As of June 30, 2014 Gibson had C$348 million of cash and C$422 million available under its C$500 million revolver due August 2019, after letters of credit. Moody's expect the negative free cash flow of C$400 million between September 30, 2014 and September 30, 2015, and the C$100 million Cal-Gas Inc. acquisition to be funded with cash and revolver drawings. Moody's expect Gibson will be in compliance with its financial covenants through this period. Alternative sources of liquidity are good, as all assets are unencumbered and disparate, suggesting that parts of the company could be sold for liquidity if needed. The stable outlook reflects Moody's expectation that Gibson's EBITDA growth will enable its leverage to remain around 3x despite significant negative free cash flow over the next couple of years. The ratings could be upgraded if Gibson executes on its growth initiatives, growing EBITDA towards C$700 million and increasing the long-term fee-based EBITDA above 40%, while maintaining debt to EBITDA below 2.5x. The ratings could be downgraded if Gibson's financial leverage increases due to debt funded capital expenditures. More specifically, if debt to EBITDA cannot be sustained under 4x a ratings downgrade could result. Gibson is a Calgary, Alberta based midstream energy company that is engaged in the movement, storage, blending, processing, marketing and distribution of crude oil, condensate, natural gas liquids, water, oilfield waste and refined products. The principal methodology used in this rating was the Global Midstream Energy published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non- Financial Companies in the U.S., Canada and EMEA published in June 2009. GLYECO INC: Reports $1.6 Million Revenue in Second Quarter ---------------------------------------------------------- GlyEco, Inc., reported its financial results for the period ended June 30, 2014. For the second quarter ended June 30, 2014, revenue increased 13% to $1.6 million, compared to $1.4 million for the year-ago period. The increase in revenue was due to increased production capabilities at six processing centers and penetration into new markets. Historically, second quarter is the slowest sales quarter in the anti-freeze related industries. For the second quarter ended June 30, 2014, the Company realized a profit margin of (1%), compared to 20% for the year-ago period. The decrease in gross profit was primarily due to continued operating costs, investment in infrastructure and low production volumes as the NJ Processing Center transitions to producing high volumes of T1TM material from multiple types of waste glycols. The Company expects its gross profit margin to increase as production volumes increase at the NJ Processing Center. Net equipment assets increased 43% to $7.9 million (after depreciation) for the quarter ended June 30, 2014, compared to net equipment assets of approximately $5.5 million for the year ended Dec. 31, 2013. "Demand for our T1(TM) refinery-grade recycled glycol continues to exceed our current processing capabilities, and we are implementing improvements to foster growth. We are embarking on the transition from increased capacity to increased sales volume," stated John Lorenz, CEO of GlyEco. "The positive response from customers for all our recycled glycol products has been tremendous. Since year-end 2012, we've seen a 160% increase in our customer base across our seven facilities nationally, and today we're providing collection, recycling, and disposal services to over 3,500 waste glycol generators." Lorenz continued, "GlyEco is at the threshold of expansive opportunity. While planned equipment changes and maintenance had a negative impact on gross profits during this quarter, we are very confident we are on the right track with our build out plan and technology. We have invested in building the infrastructure and trained operations staff necessary to reach our goals in the coming months and years." "We have made great progress during the first half of this year. We have multiplied processing capacities at each of our seven processing centers which will reap benefits in the coming months and for years to come," John Lorenz further states. "We are beginning the transition from increased capacity to increased production and sales. I look forward to continuing to capitalize on the opportunities ahead, as we grow both production and shareholder value." A full-text copy of the press release as filed with the U.S. Securities and Exchange Commission is available at: http://is.gd/1s1jdv About GlyEco, Inc. Phoenix, Ariz.-based GlyEco, Inc., is a green chemistry company formed to roll-out its proprietary and patent pending glycol recycling technology that transforms waste glycols, a hazardous material, into profitable green products. GlyeCo reported a net loss of $4.01 million in 2013, a net loss of $1.86 million in 2012.and a net loss of $592,171 in 2011. As of Dec. 31, 2013, the Company had $15.69 million in total assets, $3.34 million in total liabilities, $1.17 million in mandatorily redeemable series AA convertible preferred stock, and $11.18 million in total stockholders' equity. Semple, Marchal & Cooper, 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 yet to achieve profitable operations and is dependent on its ability to raise capital from stockholders or other sources to sustain operations and to ultimately achieve viable profitable operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. GOLDEN PHOENIX: Reports $2.33-Mil. Net Income for Second Quarter ---------------------------------------------------------------- Golden Phoenix Minerals, Inc., filed its quarterly report on Form 10-Q, disclosing net income of $2.33 million on $nil of revenues for the three months ended June 30, 2014, compared with a net loss of $291,205 on $nil of revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $1.56 million in total assets, $2.61 million in total liabilities, and a total stockholders' deficit of $1.05 million. A copy of the Form 10-Q is available at: http://is.gd/0kBNh5 American Fork, Utah-based Golden Phoenix Minerals, Inc. engages in the exploration, development, and production of mineral properties in Nevada and the western United States. It focuses on exploring for gold, silver, and molybdenum minerals properties. GREENSHIFT CORP: June 30 Balance Sheet Upside-Down by $39MM ----------------------------------------------------------- Greenshift Corporation filed its quarterly report on Form 10-Q, disclosing a net income of $2.83 million on $4.11 million of revenue for the three months ended June 30, 2014, compared with a net loss of $722,738 on $4.74 million of revenue for the same period last year. The Company's balance sheet at June 30, 2014, showed $4.56 million in total assets, $43.61 million in total liabilities, and a total stockholders' deficit of $39.05 million. As of June 30, 2014, the Company had $2.38 million in cash, and current liabilities exceeded current assets by $38.23 million. These matters raise substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/jR6ixg About Greenshift Corporation GreenShift Corporation invents, develops, commercializes and licenses clean alternative technologies that aim to facilitate the more efficient use of natural resources. The Company maintains its principal executive offices in Alpharetta, Georgia. Greenshift reported a net loss of $4.43 million on $15.49 million of total revenue for the year ended Dec. 31, 2013, as compared with net income of $2.46 million on $14.51 million of total revenue in 2012. As of Dec. 31, 2013, the Company had $6.35 million in total assets, $49.07 million in total liabilities and a $42.72 million total stockholders' deficit. Rosenberg Rich Baker Berman & Company, in Somerset, NJ, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company could be subject to default of its senior debt obligation in 2014 if a condition to a forbearance agreement that is not within the Company's control is not satisfied. These conditions raise substantial doubt about its ability to continue as a going concern. HAWAII OUTDOOR: Has 16th Interim Cash Collateral Order ------------------------------------------------------ The Hon. Robert J. Faris of the U.S. Bankruptcy Court for the District of Hawaii approved a 16th stipulated interim order authorizing David C. Farmer, as Chapter 11 trustee for Hawaii Outdoor Tours, Inc., to use cash collateral until a final hearing scheduled for Sept. 15, 2014, at 9:30 a.m. First-Citizens Bank & Trust Company asserts secured claims and an unsecured claim in the amount of $5,500,000 and a superpriority claim that it will seek to have partially paid as a distribution from the unsecured creditor fund, subject to further court order. The trustee will use the cash collateral to administer the liquidation of the bankruptcy estate and wind down the affairs of the Debtor. The stipulation was entered among Timothy J. Hogan, Esq., on behalf of the trustee, Ted N. Pettit, on behalf of the secured creditor, and Christopher J. Muzzi, Esq., on behalf of the Official Committee of Unsecured Creditors. As reported in the Troubled Company Reporter on Oct. 9, 2013, the Chapter 11 trustee won authority to use cash collateral to continue operating the property located at 93 Banyan Drive, Hilo, Hawaii, which includes the hotel known as Naniloa Volcanoes Resort and a nine-hole golf course known as the Naniloa Volcanoes Gold Club. As adequate protection for the trustee's use of collateral, First- Citizens Bank is granted a senior replacement lien in all of the borrower accounts created from and after the Petition Date and all of the Debtor's right, title and interest in, to and under the prepetition collateral. The Chapter 11 trustee also granted, assigned and pledged to the Department of Taxation, State of Hawaii a second priority replacement lien and security interest, junior to the Senior Replacement Lien of First-Citizens Bank in all of the Borrower Accounts created from and after the Petition Date and all of the Debtor's right, title and interest in, to and under the Pre- Petition Collateral. The trustee and First-Citizens Bank have agreed to provide postpetition financing of a reserve account held by the trustee at First Hawaiian Bank. First-Citizens Bank will cause the sum of $100,000 to be wire transferred to the reserve account. The reserve account funds will be used solely in the event that the trustee does not have sufficient cash to fund: (i) payroll, (ii) payroll taxes, (iii) State of Hawaii general excise tax, and/or (iv) State of Hawaii transient accommodation taxes. About Hawaii Outdoor Tours Hawaii Outdoor Tours, Inc., operator of the Naniloa Volcanoes Resort in Hilo, Hawaii, filed a Chapter 11 petition (Bankr. D. Haw. Case No. 12-02279) in Honolulu on Nov. 20, 2012. Naniloa Volcanoes is a 382-room hotel with a nine-hole golf course. The 64-acre property is subject to a 65-year lease, commencing Feb. 1, 2006, and provides for a total ground rent for the first 10 years of $500,000 annually. The Debtor used a $10 million loan from First Regional Bank and $10 million of its own cash to invest in the property. First-Citizens Bank & Trust Company, which acquired the First Regional note from the Federal Deposit Insurance Corp., commenced foreclosure proceedings in August. First-Citizens Bank asserts a claim of $9.95 million. The Debtor believes that the value of the hotel property exceeds the amount of the First-Citizens Bank note. Just the bricks and mortar alone was valued in excess of $35 million by First Regional's appraiser and the insurance company. Bankruptcy Judge Robert J. Faris oversees the case. Ramon J. Ferrer, Esq., represents the Debtor as counsel. In its schedules, the Debtor disclosed $52,492,891 in assets and $11,756,697 in liabilities. The petition was signed by CEO Kenneth Fujiyama. Ted N. Petitt, Esq., represents secured creditor First-Citizens Bank as counsel. Cynthia M. Johiro, Esq., represents the State of Hawaii Department of Taxation as counsel. Timothy J. Hogan, Esq., represents David C. Farmer, the Chapter 11 Trustee, as counsel. Christopher J. Muzzi, Esq., at Tsugawa Biehl Lau & Muzzi, LLLC, represents the Official Committee of Unsecured Creditors as counsel. The Bankruptcy Court, in the minutes of the hearing held Nov. 12, 2013, authorized the Chapter 11 trustee to sell hotel, assets and assignments to the highest bidder. Ken Direction Corporation, the parent company of Hawaii Outdoor Tours, Inc., filed with the U.S. Bankruptcy Court for the District of Hawaii on Nov. 5, 2013, a disclosure statement explaining its proposed plan of reorganization for the Debtor, dated Nov. 4, 2013. According to the Disclosure Statement, the source of about $14,000,000 in new funds will be the proceeds from the sale of real estate owned by HPAC, LLC, an affiliated company of the Proponent, to Shalom Amar Revocable Trust 2000 by way of a 1031 exchange.tion as counsel. Timothy J. Hogan, Esq., represents David C. Farmer, the Chapter 11 Trustee, as counsel. Christopher J. Muzzi, Esq., at Tsugawa Biehl Lau & Muzzi, LLLC, represents the Official Committee of Unsecured Creditors as counsel. The Bankruptcy Court, in the minutes of the hearing held Nov. 12, 2013, authorized the Chapter 11 trustee to sell hotel, assets and assignments to the highest bidder. Ken Direction Corporation, the parent company of Hawaii Outdoor Tours, Inc., filed with the U.S. Bankruptcy Court for the District of Hawaii on Nov. 5, 2013, a disclosure statement explaining its proposed plan of reorganization for the Debtor, dated Nov. 4, 2013. According to the Disclosure Statement, the source of about $14,000,000 in new funds will be the proceeds from the sale of real estate owned by HPAC, LLC, an affiliated company of the Proponent, to Shalom Amar Revocable Trust 2000 by way of a 1031 exchange. HAWAII OUTDOOR: First-Citizens Bank Seeks Case Dismissal -------------------------------------------------------- First-Citizens Bank & Trust Company asks the Bankruptcy Court for entry of an order dismissing Hawaii Outdoor Tours, Inc.'s bankruptcy case. In addition, FCB seek the authorization the disbursement of the $250,000 unsecured creditor fund by escrow, pending adjudication of the FCB's Third Omnibus Objection to Certain Unsecured Scheduled Claims Listed on Debtor's Bankruptcy Schedules. All other unsecured claims have been adjudicated as allowed, partially allowed or disallowed claims. The hearing on the motion to dismiss is scheduled for Sept. 15, 2014, at 9:30 a.m. About Hawaii Outdoor Tours Hawaii Outdoor Tours, Inc., operator of the Naniloa Volcanoes Resort in Hilo, Hawaii, filed a Chapter 11 petition (Bankr. D. Haw. Case No. 12-02279) in Honolulu on Nov. 20, 2012. Naniloa Volcanoes is a 382-room hotel with a nine-hole golf course. The 64-acre property is subject to a 65-year lease, commencing Feb. 1, 2006, and provides for a total ground rent for the first 10 years of $500,000 annually. The Debtor used a $10 million loan from First Regional Bank and $10 million of its own cash to invest in the property. First-Citizens Bank & Trust Company, which acquired the First Regional note from the Federal Deposit Insurance Corp., commenced foreclosure proceedings in August. First-Citizens Bank asserts a claim of $9.95 million. The Debtor believes that the value of the hotel property exceeds the amount of the First-Citizens Bank note. Just the bricks and mortar alone was valued in excess of $35 million by First Regional's appraiser and the insurance company. Bankruptcy Judge Robert J. Faris oversees the case. Ramon J. Ferrer, Esq., represents the Debtor as counsel. In its schedules, the Debtor disclosed $52,492,891 in assets and $11,756,697 in liabilities. The petition was signed by CEO Kenneth Fujiyama. Ted N. Petitt, Esq., represents secured creditor First-Citizens Bank as counsel. Cynthia M. Johiro, Esq., represents the State of Hawaii Department of Taxation as counsel. Timothy J. Hogan, Esq., represents David C. Farmer, the Chapter 11 Trustee, as counsel. Christopher J. Muzzi, Esq., at Tsugawa Biehl Lau & Muzzi, LLLC, represents the Official Committee of Unsecured Creditors as counsel. The Bankruptcy Court, in the minutes of the hearing held Nov. 12, 2013, authorized the Chapter 11 trustee to sell hotel, assets and assignments to the highest bidder. Ken Direction Corporation, the parent company of Hawaii Outdoor Tours, Inc., filed with the U.S. Bankruptcy Court for the District of Hawaii on Nov. 5, 2013, a disclosure statement explaining its proposed plan of reorganization for the Debtor, dated Nov. 4, 2013. According to the Disclosure Statement, the source of about $14,000,000 in new funds will be the proceeds from the sale of real estate owned by HPAC, LLC, an affiliated company of the Proponent, to Shalom Amar Revocable Trust 2000 by way of a 1031 exchange.tion as counsel. Timothy J. Hogan, Esq., represents David C. Farmer, the Chapter 11 Trustee, as counsel. Christopher J. Muzzi, Esq., at Tsugawa Biehl Lau & Muzzi, LLLC, represents the Official Committee of Unsecured Creditors as counsel. The Bankruptcy Court, in the minutes of the hearing held Nov. 12, 2013, authorized the Chapter 11 trustee to sell hotel, assets and assignments to the highest bidder. Ken Direction Corporation, the parent company of Hawaii Outdoor Tours, Inc., filed with the U.S. Bankruptcy Court for the District of Hawaii on Nov. 5, 2013, a disclosure statement explaining its proposed plan of reorganization for the Debtor, dated Nov. 4, 2013. According to the Disclosure Statement, the source of about $14,000,000 in new funds will be the proceeds from the sale of real estate owned by HPAC, LLC, an affiliated company of the Proponent, to Shalom Amar Revocable Trust 2000 by way of a 1031 exchange. HCSB FINANCIAL: Has $74,000 Net Loss in Q2 Ended June 30 -------------------------------------------------------- HCSB Financial Corporation filed its quarterly report on Form 10- Q, disclosing a net loss of $74,000 on $4.12 million of total interest income for the three months ended June 30, 2014, compared with net income of $77,000 on $4.22 million of total interest income for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $452.63 million in total assets, $464.42 million in total liabilities, and a stockholders' deficit of $11.79 million. A copy of the Form 10-Q is available at: http://is.gd/XheNlF About HCSB Financial Loris, South Carolina-based HCSB Financial Corporation was incorporated on June 10, 1999, to become a holding company for Horry County State Bank. The Bank is a state chartered bank which commenced operations on Jan. 4, 1988. From its 13 branch locations, the Bank offers a full range of deposit services, including checking accounts, savings accounts, certificates of deposit, money market accounts, and IRAs, as well as a broad range of non-deposit investment services. During the third quarter of 2011, the Bank closed its Covenant Towers branch located at Myrtle Beach. All deposits were transferred to the Bank's Myrtle Beach branch and the Bank does not expect any disruption of service in that market for its customers. As of March 31, 2014, HCSB Financial had $457.87 million in total assets, $471.43 million in total liabilities and a $13.55 million total shareholders' deficit. "At March 31, 2014, the Company was categorized as "critically undercapitalized" and the Bank was categorized as "significantly undercapitalized." Our losses over the past five years have adversely impacted our capital. As a result, we have been pursuing a plan to increase our capital ratios in order to strengthen our balance sheet and satisfy the commitments required under the Consent Order. However, if we continue to fail to meet the capital requirements in the Consent Order in a timely manner, then this would result in additional regulatory actions, which could ultimately lead to the Bank being taken into receivership by the FDIC. Our auditors have noted that the uncertainty of our ability to obtain sufficient capital raises substantial doubt about our ability to continue as a going concern," according to the quarterly report for the period ended March 31, 2014. HEALTHWAREHOUSE.COM INC: Incurs $439,000 Net Loss in Q2 ------------------------------------------------------- HealthWarehouse.com, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss attributable to common stockholders of $439,771 on $1.46 million of net sales for the three months ended June 30, 2014, compared to a net loss attributable to common stockholders of $338,827 on $2.67 million of net sales for the same period a year ago. For the six months ended June 30, 2014, the Company reported a net loss attributable to common stockholders of $820,142 on $3.17 million of net sales compared to a net loss attributable to common stockholders of $6.01 million on $5.08 million of net sales for the same period during the prior year. As of June 30, 2014, the Company had $1.02 million in total assets, $5.50 million in total liabilities and a $4.48 million total stockholders' deficit. Since inception, the Company has financed operations primarily through debt and equity financings and advances from stockholders. As of June 30, 2014, the Company had a working capital deficiency of $5,018,086 and an accumulated deficit of $28,950,810. "The Company recognizes it will need to raise additional capital in order to fund operations, meet its payment obligations, including the terms of its Loan and Security Agreement, and execute its business plan. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, attempt to extend note repayments, attempt to negotiate the preferred stock redemption and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. If the Company is unable to obtain financing on a timely basis, the Company could be forced to sell its assets, discontinue its operation and/or seek reorganization under the U.S. bankruptcy code," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/gryTcd About HealthWarehouse.com HealthWarehouse.com, Inc., headquartered in Florence, Kentucky, is a U.S. licensed virtual retail pharmacy ("VRP") and healthcare e-commerce company that sells brand name and generic prescription drugs as well as over-the-counter ("OTC") medical products. Marcum LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012, citing significant losses and the need to raise additional funds to meet the Company's obligations and sustain its operations. The Company reported a net loss of $5.57 million on $11.08 million of net sales for the year ended Dec. 31, 2012, as compared with a net loss of $5.71 million on $10.36 million of net sales during the prior year. HERCULES OFFSHORE: Files Fleet Status Report as of Aug. 20 ---------------------------------------------------------- Hercules Offshore, Inc., posted on its Web site at www.herculesoffshore.com a report entitled "Hercules Offshore Fleet Status Report". The Fleet Status Report includes the Hercules Offshore Rig Fleet Status (as of Aug. 20, 2014), which contains information for each of the Company's drilling rigs, including contract dayrate and duration. The Fleet Status Report also includes the Hercules Offshore Liftboat Fleet Status Report, which contains information by liftboat class for July 2014, including revenue per day and operating days. The Fleet Status Report is available for free at http://is.gd/RrLHVf About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. Hercules incurred a net loss of $68.11 million in 2013, a net loss of $127 million in 2012 and a net loss of $76.12 million in 2011. * * * The Troubled Company Reporter said on April 11, 2013, that Moody's Investors Service upgraded Hercules Offshore, Inc.'s Corporate Family Rating to B2 from B3. Hercules' B2 CFR is supported by its improved cash flow and lower leverage on the back of increased drilling activity and higher day-rates in the Gulf of Mexico (GOM) As reported by the TCR on Nov. 6, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Houston-based Hercules Offshore Inc. to 'B' from 'B-'. "The upgrade reflects the improving market conditions in the Gulf of Mexico and our expectations that Hercules' fleet will continue to benefit," said Standard & Poor's credit analyst Stephen Scovotti. HERON THERAPEUTICS: Incurs $19.01-Mil. Net Loss in June 30 Quarter ------------------------------------------------------------------ Heron Therapeutics, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $19.01 million for the three months ended June 30, 2014, compared to a net loss of $15.41 million for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $108.64 million in total assets, $10.79 million in total liabilities and total stockholders' equity of $97.85 million. The Company disclosed in the regulatory filing, "Our near-term ability to generate revenues and our future success, in large part, depends on the approval and successful commercialization of SUSTOL. We will not be able to commercialize SUSTOL until we obtain regulatory approval in the United States or foreign countries. In order to satisfy FDA approval standards for the commercial sale of SUSTOL, we must first successfully resolve the issues identified in the Complete Response Letter received from the FDA in March 2013. This letter identified several issues that precluded the approval of SUSTOL NDA, including issues relating to: manufacturing of SUSTOL, the administration of SUSTOL and our analysis of efficacy data for SUSTOL under more recent guidelines classifying chemotherapy regimens. Although we are currently working to address these issues and currently expect to resubmit the SUSTOL NDA during the fourth quarter of 2014, there can be no assurance that these responses will be sufficient or that we will be able to resubmit within this time period. Further, the FDA?s review of our resubmission may not produce positive decisions as to whether: -- SUSTOL is safe and effective in its proposed use(s) and whether its benefits outweigh the risks; -- the proposed labeling for SUSTOL has our desired product indication regarding acute and delayed-onset CINV, as well as HEC and MEC regimens; and -- the methods used in manufacturing SUSTOL and the controls used to maintain its quality are adequate to preserve its identity, strength, quality and purity. Deficiencies on any of the above, or other factors, could prevent or delay obtaining regulatory approval of SUSTOL, which would negatively affect our potential revenues, increase our costs and potentially impair our ability to continue as a going concern." A copy of the Form 10-Q is available at: http://is.gd/1O7jtF Heron Therapeutics, Inc., a specialty pharmaceutical company, develops product candidates using its proprietary Biochronomer polymer-based drug delivery platform. The company's drug delivery platform is designed to improve the therapeutic profile of injectable pharmaceuticals by converting them from products that should be injected once or twice per day to products that need to be injected once every one or two weeks. Its lead product candidate, Sustol, is developed for the prevention of both acute- and delayed-onset chemotherapy-induced nausea and vomiting for patients undergoing emetogenic chemotherapy. The company was formerly known as A.P. Pharma, Inc. and changed its name to Heron Therapeutics, Inc. in January 2014. Heron Therapeutics, Inc. was founded in 1983 and is headquartered in Redwood City, California. HORIZON LINES: Okays Amendments to Stock Unit Agreements -------------------------------------------------------- Horizon Lines, Inc., disclosed with the U.S. Securities and Exchange Commission that it approved agreements to amend certain outstanding Restricted Stock Unit Agreements granted under the Company's 2012 Incentive Compensation Plan, including those Restricted Stock Unit Agreements with the Company's (i) non- employee directors and (ii) principal executive officer, principal financial officer and its other executive officers. The Restricted Stock Unit Agreements are to be amended to provide that vested restricted stock units will be settled solely with the delivery of cash. About Horizon Lines Charlotte, N.C.-based Horizon Lines, Inc. (NYSE: HRZ) is the nation's leading domestic ocean shipping and integrated logistics company. The Company owns or leases a fleet of 20 U.S.-flag containerships and operates five port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. The Company provides express trans-Pacific service between the U.S. West Coast and the ports of Ningbo and Shanghai in China, manages a domestic and overseas service partner network and provides integrated, reliable and cost competitive logistics solutions. For the year ended Dec. 22, 2013, the Company reported a net loss of $31.93 million following a net loss of $94.69 million for the year ended Dec. 23, 2012. As of March 23, 2014, the Company had $632.12 million in total assets, $701.39 million in total liabilities and a $69.26 million total stockholders' deficiency. * * * In June 2012, Moody's Investors Service affirmed Horizon Lines, Inc.'s Corporate Family Rating (CFR) and Probability of Default Rating ("PDR") at Caa2 and removed the LD ("Limited Default") designation from the rating in recognition of the conversion to equity of the $228 million of Series A and Series B Convertible Senior Secured notes due in October 2017 ("Notes"). Moody's said the affirmation of the Corporate Family and Probability of Default ratings considers that total debt has been reduced by the conversion of the Notes, but also recognizes the significant operating challenges that the company continues to face. HR BETTY: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: HR Betty, LLC 5055 North 12th Street, Suite 100 Phoenix, AZ 85014 Case No.: 14-13035 Chapter 11 Petition Date: August 21, 2014 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Hon. Brenda K. Martin Debtor's Counsel: Joseph E. Cotterman, Esq. ANDANTE LAW GROUP OF DANIEL E. GARRISON, PLLC 4110 North Scottsdale Road, Suite 330 Scottsdale, AZ 85251 Tel: 480-421-9449 Fax: 480-522-1515 Email: joe@andantelaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Nicholas Smith, president. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. INDEPENDENCE TAX IV: Incurs $123,000 Net Loss in June 30 Quarter ---------------------------------------------------------------- Independence Tax Credit Plus L.P. IV filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $122,908 on $908,535 of total revenues for the three months ended June 30, 2014, compared to a net loss of $185,715 on $868,676 of total revenues for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $4.53 million in total assets, $26.59 million in total liabilities and a $22.05 million total partners' deficit. "The Partnership originally invested all of its net proceeds in fourteen Local Partnerships of which, approximately $148,000 remains to be paid to the Local Partnerships (including approximately $123,000 being held in escrow). The Partnership is currently in the process of developing a plan to dispose of all its investments. Through June 30, 2014, the Partnership has sold its limited partnership interests in four Local Partnerships and the property and the related assets and liabilities of three Local Partnerships have been sold. There can be no assurance as to when the Partnership will dispose of its seven remaining investments or the amount of proceeds which may be received. However, based on the historical operating results of the Local Partnerships and the current economic conditions, it is unlikely that the proceeds from such sales received by the Partnership will be sufficient to return to the limited partners their original investments. All gains and losses on sales are included in discontinued operations," the Company said in the filing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/JyOBu5 About Independence Tax IV New York-based Independence Tax Credit Plus L.P. IV is a limited partnership which was formed under the laws of the State of Delaware on Feb, 22, 1995. On July 6, 1995, the Partnership commenced a public offering of Beneficial Assignment Certificates representing assignments of limited partnership interests in the Partnership. The Partnership received $45,844,000 of gross proceeds from the Offering from 2,759 investors. The Offering was terminated on May 22, 1996. The Partnership's initial business was 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 currently in the process of developing a plan to dispose of all of its investments. It is anticipated that this process will take a number of years. Independence Tax Credit Plus L.P. IV reported a net loss of $2.71 million on $3.6 million of total revenues for the fiscal year ended March 31, 2014, compared to a net loss of $967,365 on $3.45 million of total revenues for the year ended March 31, 2013. INFINITY ACQUISITION: S&P Assigns 'B' CCR; Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services assigned Delaware-based Infinity Acquisition LLC (herein referred to as Ipreo) a corporate credit rating of 'B'. The outlook is stable. At the same time, S&P assigned the $45 million senior secured revolving credit facility due 2019 and the $345 million senior secured term loan B due 2021 a 'B+' issue-level rating, with a recovery rating of '2', indicating S&P's expectation of substantial (70% to 90%) recovery of principal for debtholders in the event of default. Lastly, S&P assigned the $185 million senior unsecured notes due 2022 a 'CCC+' issue-level rating, with a recovery rating of '6', indicating S&P's expectation of negligible (0% to 10%) recovery of principal for debtholders in the event of default. Infinity Acquisition Finance Corp. is the co-issuer of the unsecured notes. "The 'B' corporate credit rating reflects the high level of debt used to fund the acquisition of the company by Blackstone and Goldman Sachs Merchant Banking," said Standard & Poor's credit analyst Jawad Hussain. "The rating also reflects the company's narrow business focus, competition from much larger competitors with greater financial resources, and the company's revenue sensitivity to changes in financial markets. These risks largely offset the deeply entrenched nature of the company's products." Ipreo is a niche financial services technology, research, and data provider. Its capital markets segment (54% of 2013 revenue) provides software solutions to automate debt, equity, and municipal securities marketing, securities issuance, and pricing for new transactions. Revenue, especially from municipal and equity markets, is highly dependent on new issuance transaction volumes and activity levels at its investment banking and brokerage clients. Standard & Poor's estimates approximately 55% of revenue in the capital markets segment is transaction-related-- and therefore inherently variable. The research, sales, and trading (RS&T, 21% of revenue) and corporate (25% of revenue) segments provide client relationship, market intelligence, and analytics products and solutions to the investment community and corporate investor relations groups. These segments are less sensitive to capital market volumes, serve a broader client base than the capital markets segment, and offer a degree of stability, largely because about 85% of the two segments' revenues are subscription-based. However, Ipreo faces significant competition in these segments from larger competitors with greater financial resources, requiring it to continually improve its products or risk losing its market position as a provider of premium financial services software. These factors support S&P's "weak" business risk assessment of the company. Standard & Poor's assessment of Ipreo's financial risk profile as "highly leveraged" is based on its ownership by a financial sponsor and its elevated pro forma lease-adjusted leverage of around 9x as a result of the increased debt in its capital structure. S&P expects leverage to moderate by the end of 2014 to around 8x, as EBITDA benefits from recent market share gains in the capital markets and corporate advisory segments and as the company completes a staff restructuring. S&P expects pro forma EBITDA coverage of interest to be a little below 2x in 2014 and increase to the low-2x area in 2015 on continued EBITDA growth. INTERNATIONAL RECTIFIER: Fitch Puts 'BB' IDR on Positive Watch -------------------------------------------------------------- Fitch Ratings has placed International Rectifier Corp.'s (IR) Long-term Issuer Default Rating (IDR) and revolving credit facility (RCF) ratings of 'BB' on Rating Watch Positive following Infineon Technologies AG's (Infineon) definitive agreement to acquire IR for $3 billion. IR has no outstanding public debt. The Positive Watch reflects Fitch's belief that IR's credit profile will meaningfully strengthen following the combination, likely resulting in an IDR of 'BBB' or higher for Infineon post transaction close. The combined company will benefit from greater scale, increased technology platform, sales channel and geographic diversification, and strengthened financial flexibility compared with IR on a standalone basis. Infineon also proposes to maintain leverage (total debt to operating EBITDA) below 2x and gross cash to revenues at 30% - 40%. Infineon intends to acquire IR in an all cash transaction valued at $3 billion or $2.4 billion on an enterprise value basis. Infineon will finance the acquisition, which has been approved by the boards of both IR and Infineon, with cash on hand and a EUR1.5 billion credit facility. The deal is expected to close in late 2014 or early 2015 subject to approval by RF shareholders and regulators. Pro forma for the deal, combined annual revenues will be nearly $7 billion with an operating EBITDA margin in the mid-20s. This compares to IR's $1.1 billion of revenues and an operating EBITDA margin of 18.1% for the latest 12 months (LTM) ended June 29, 2014. Fitch expects the deal will provide meaningful operating margin expansion opportunities, driven by excess and more efficient capacity management at Infineon, along with the elimination of overhead redundancies. The combined company will leverage Infineon's power semiconductor capabilities with IR's power conversion and Gallium Nitride capabilities. IR will benefit from Infineon's significant direct customer portfolio in the European Union, while IR increases Infineon's exposure in the U.S. and Asia-Pacific. JAMES RIVER COAL: Sells 3 Mining Complexes to Blackhawk for $52MM ----------------------------------------------------------------- An affiliate of Blackhawk Mining LLC is acquiring the assets of James River Coal Company. Pursuant to the Strategic Transaction Bidding Procedures entered in the Debtors' Chapter 11 cases, the Debtors, in consultation with the agent under the Debtors' debtor-in-possession financing facility, and the Unsecured Creditors' Committee, entered into an Asset Purchase Agreement, dated August 15, 2014, with, JR Acquisition, LLC, a wholly owned subsidiary of Blackhawk, and selected the Agreement to serve as a Stalking Horse Bidder for the purchase of the Debtors' mining complexes commonly referred to as: -- the Hampden Complex (including the assets of Debtor Logan & Kanawha Coal Company, LLC), -- the Hazard Complex (other than the assets of Debtor Laurel Mountain Resources LLC) and -- the Triad Complex. The Agreement contemplated that, among other things, Blackhawk would (i) pay to the Debtors $20.0 million in cash and deliver a third lien secured promissory note in the amount of $25.0 million, and (ii) deliver to one of the Debtors' lessors, in lieu of a cash payment of cure costs under leases to be assumed and assigned to Blackhawk, a second lien secured promissory note in the amount of $5.0 million. In conjunction with the Strategic Transaction Bidding Procedures, the Debtors filed with the Court the Agreement with Blackhawk and then held a previously announced public auction on August 18-21, 2014 to determine whether a higher or better bid (or combination of bids) could be obtained. During the auction process, Blackhawk submitted a bid that, among other things, increased the consideration offered for the Purchased Assets from $50 million plus the assumption of certain liabilities to $52 million plus the assumption of certain liabilities. On August 21, 2014, the Debtors, in consultation with the DIP Agent and the Unsecured Creditors' Committee, selected Blackhawk's revised bid as the winning bid. The revised bid contemplates that Blackhawk will (i) pay to the Debtors $20.0 million in cash and deliver a third lien secured promissory note in the amount of $27.0 million, and (ii) deliver to one of the Debtors' lessors, in lieu of a cash payment of cure costs under leases to be assumed and assigned to Blackhawk, a second lien secured promissory note in the amount of $5.0 million. The sale is expected to close on or about August 29, 2014 and is subject to customary closing conditions, including Court approval. A Court hearing is scheduled for August 26, 2014, at 11 a.m. to consider approval of the sale. A copy of the sale agreement is available at http://is.gd/YdonAN The Buyer can be reached at: BLACKHAWK MINING, LLC 3228 Summit Square Place, Suite 180 Lexington, KY 40509 Attention: Nicholas R. Glancy Facsimile No.: (859) 543-0516 E-mail: nglancy@blackhawkmining.com The Buyer is represented in the case and sale transaction by: Mitchell A. Seider, Esq. Charles E. Carpenter, Esq. LATHAM & WATKINS LLP 885 Third Avenue New York, NY 10022 Facsimile No.: (212) 751-4864 E-mail: mitchell.seider@lw.com charlie.carpenter@lw.com About James River James River Coal Company is a producer and marketer of coal in the Central Appalachia ("CAPP") and the Midwest coal regions of the United States. James River's principal business is the mining, preparation and sale of metallurgical coal, thermal coal (which is also known as steam coal) and specialty coal. James River and 33 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Va. Case Nos. 14-31848 to 14-31886) in Richmond, Virginia, on April 7, 2014. The petitions were signed by Peter T. Socha as president and chief executive officer. Judge Kevin R. Huennekens oversees the Chapter 11 cases. On the petition date, James River Coal disclosed total assets of $1.06 billion and total liabilities of $818.6 million. The Debtors are represented by Tyler P. Brown, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq. at Hunton & Williams LLP of Richmond, VA and Marshall S. Huebner, Esq, Brian M. Resnick, Esq., and Michelle M. McGreal, Esq. at Davis Polk & Wardwell LLP of New York, NY. Kilpatrick Townsend & Stockton LLP serves as the Debtors' special counsel. Perella Weinberg Partners L.P. is the Debtors' financial advisor. Deutsche Bank Securities Inc. serves as the Debtors' investment banker and M&G advisor. Epiq Bankruptcy Solutions, LLC, acts as the debtors' notice, claims and administrative agent. The U.S. Trustee for Region 4 has appointed five creditors to the Official Committee of Unsecured Creditors. Michael S. Stamer, Esq., Alexis Freeman, Esq., and Jack M. Tracy II, Esq., at Akin Gump Strauss Hauer & Feld LLP; and Jonathan L. Gold, Esq., Christopher L. Perkins, Esq., and Christian K. Vogel, Esq., at LeClairRyan. JAMES RIVER COAL: Unit Seeks to Buy EQT Assets for $4 Million ------------------------------------------------------------- James River Coal Company asks the Bankruptcy Court to: -- authorize Debtor Leeco, Inc. to purchase certain real property located in Perry County, Kentucky, and certain equipment and other assets located on the Real Property pursuant to an asset purchase agreement between EQT Gathering, LLC, as seller, and Leeco, as purchaser; and -- authorize Leeco to pay an Initial Installment and a Second Installment. The Debtors said the purchase of the Purchased Assets and the payment of the First Installment Payments are an integral part of the Debtors' larger efforts to consummate a strategic restructuring transaction, and, in fact, required by the Successful Bid for the purchase of the Debtors' mining complexes by JR Acquisition, LLC, a wholly-owned subsidiary of Blackhawk Mining LLC, for an aggregate purchase price of $52,000,000 plus the assumption of certain liabilities. Pursuant to the Purchase Agreement, Leeco and Blackhawk, as the assignee of the EQT assets, will be obligated to pay EQT a purchase price equal to $4,000,000 in the aggregate, to be paid in four separate $1,000,000 installments. The installments are required to be paid: (i) at closing (the "Initial Installment"), (ii) on or before Oct. 15, 2014 (the "Second Installment"), (iii) on Jan. 5, 2015 (the "Third Installment"), and (iv) at a Supplemental Closing Date (the "Fourth Installment") Following payment of the First Installment Payments, the only amount that would remain owing under the Purchase Agreement are the Final Installment Payments, which in the aggregate are in an amount equal to $2,000,000. Blackhawk has consented to the assignment of the Purchase Agreement and agreed to assume any remaining obligations under the Purchase Agreement, including the payment of the Final Installment Payments. At Tuesday's hearing, the Court will also consider the Debtors' Motion for Entry of an Order Authorizing Debtor Leeco, Inc. to Purchase Certain Real Property and Equipment from EQT. About James River James River Coal Company is a producer and marketer of coal in the Central Appalachia ("CAPP") and the Midwest coal regions of the United States. James River's principal business is the mining, preparation and sale of metallurgical coal, thermal coal (which is also known as steam coal) and specialty coal. James River and 33 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Va. Case Nos. 14-31848 to 14-31886) in Richmond, Virginia, on April 7, 2014. The petitions were signed by Peter T. Socha as president and chief executive officer. Judge Kevin R. Huennekens oversees the Chapter 11 cases. On the petition date, James River Coal disclosed total assets of $1.06 billion and total liabilities of $818.6 million. The Debtors are represented by Tyler P. Brown, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq. at Hunton & Williams LLP of Richmond, VA and Marshall S. Huebner, Esq, Brian M. Resnick, Esq., and Michelle M. McGreal, Esq. at Davis Polk & Wardwell LLP of New York, NY. Kilpatrick Townsend & Stockton LLP serves as the Debtors' special counsel. Perella Weinberg Partners L.P. is the Debtors' financial advisor. Deutsche Bank Securities Inc. serves as the Debtors' investment banker and M&G advisor. Epiq Bankruptcy Solutions, LLC, acts as the debtors' notice, claims and administrative agent. The U.S. Trustee for Region 4 has appointed five creditors to the Official Committee of Unsecured Creditors. Michael S. Stamer, Esq., Alexis Freeman, Esq., and Jack M. Tracy II, Esq., at Akin Gump Strauss Hauer & Feld LLP; and Jonathan L. Gold, Esq., Christopher L. Perkins, Esq., and Christian K. Vogel, Esq., at LeClairRyan. JAMES RIVER COAL: Hiring Byron Advisors' William Murphy as CRO -------------------------------------------------------------- James River Coal Company is slated to appear before the Bankruptcy Court in Richmond, Virginia, for a hearing on its request for authority, retroactive to July 31, 2014, to (i) retain Byron Advisors, LLC to provide the Debtors a Chief Restructuring Officer and (ii) designate William B. Murphy as CRO. Following the Closing of the purchase of the Debtors' mining complexes by JR Acquisition, LLC, a wholly-owned subsidiary of Blackhawk Mining LLC, for an aggregate purchase price of $52,000,000 plus the assumption of certain liabilities, and the conclusion of the sale process with respect to the Debtors' remaining assets, nearly all of the Debtors' employees, including certain of the Debtors' officers, are expected to cease working for the Debtors. Consequently, the Debtors will require a CRO to assist them in continuing to operate efficiently while they consummate any additional asset sales and to oversee the remaining prosecution of these chapter 11 cases, thereby enabling the Debtors to maximize the value of their estates for the benefit of all creditors. The Debtors, in consultation with the lenders under the Debtors' postpetition debtor in possession financing facility and the advisors to the official committee of unsecured creditors entered into an agreement with Byron Advisors to provide those services through Mr. Murphy. In exchange for the services provided by Mr. Murphy, Byron Advisors will receive a fee equal to $60,0000 per month through January 31, 2015, at which time such fee shall be reduced to $30,000 per month; provided that the Debtors and Byron Advisors have agreed to discuss in good faith a possible transition from a monthly fee to an hourly fee to begin on July 1, 2015, if appropriate at such time. The Debtors shall also reimburse Mr. Murphy for all reasonable, necessary and documented out-of-pocket expenses. Additionally, Byron Advisors shall earn transaction fees equal to (a) $150,0000 upon the repayment in full in cash of the Debtors' postpetition financing facility (which fee shall be reduced by $50,000 per month for each month after November 30, 2014), and (b) 5% of average recoveries of general unsecured creditors (prior to dilution for this fee), subject to a minimum of $250,000 (provided that general unsecured creditors receive at least $250,000, in the aggregate) and a maximum of $750,000, payable upon the effectiveness of a chapter 11 plan. Byron Advisors will be retained and Mr. Murphy will be designated as the Debtors' CRO pursuant to section 363 of the Bankruptcy Code, rather than as a professional under section 327 of the Bankruptcy Code. Accordingly, Byron Advisors will not be required to submit fee applications pursuant to sections 330 and 331 of the Bankruptcy Code. Instead, Byron Advisors will file with the Court reports of compensation earned and expenses incurred on a quarterly basis, and shall provide notice thereof to the United States Trustee for the Eastern District of Virginia, the DIP Lenders and the Committee. The compensation and expenses shall be subject to Court review in the event that an objection is filed. Mr. Murphy will make reasonable efforts to coordinate his services with the Debtors and with the Debtors' advisors and senior management to avoid unnecessary duplication of services provided by the Debtors' Court-approved professionals or by the Debtors' senior management. Mr. Murphy has more than 30 years of professional experience in finance, including more than 25 years of experience in corporate restructuring. Mr. Murphy advises troubled companies, their creditors and other economic stakeholders in both chapter 11 and out-of-court restructurings. Since June 2012, in connection with his service to Byron Advisors, Mr. Murphy has served as Chief Restructuring Officer of Southern Air Inc., a $275 million provider of air cargo services, and as Interim Chief Financial Officer of Fedcap Rehabilitation Services, Inc., which provides workforce solution, homecare, out-patient mental health and health screening services. From August 2011 to May 2012, Mr. Murphy was Vice President of Operational Controls and Process Efficiencies at Volt Information Services, where he guided key business units through operational and organizational changes resulting from a financial restatement. Prior to holding those roles, Mr. Murphy spent 14 years at the advisory and restructuring firm Zolfo Cooper LLC, where he most recently held the title of Senior Director. Mr. Murphy holds a Bachelor of Science degree in Accounting from Lehigh University, is a Certified Public Accountant in the State of New York and is a Certified Insolvency and Reorganization Advisor. The firm may be reached at: William B. Murphy BYRON ADVISORS, LLC 1623 Third Avenue, Suite 20A New York, NY 10128 About James River James River Coal Company is a producer and marketer of coal in the Central Appalachia ("CAPP") and the Midwest coal regions of the United States. James River's principal business is the mining, preparation and sale of metallurgical coal, thermal coal (which is also known as steam coal) and specialty coal. James River and 33 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Va. Case Nos. 14-31848 to 14-31886) in Richmond, Virginia, on April 7, 2014. The petitions were signed by Peter T. Socha as president and chief executive officer. Judge Kevin R. Huennekens oversees the Chapter 11 cases. On the petition date, James River Coal disclosed total assets of $1.06 billion and total liabilities of $818.6 million. The Debtors are represented by Tyler P. Brown, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq. at Hunton & Williams LLP of Richmond, VA and Marshall S. Huebner, Esq, Brian M. Resnick, Esq., and Michelle M. McGreal, Esq. at Davis Polk & Wardwell LLP of New York, NY. Kilpatrick Townsend & Stockton LLP serves as the Debtors' special counsel. Perella Weinberg Partners L.P. is the Debtors' financial advisor. Deutsche Bank Securities Inc. serves as the Debtors' investment banker and M&G advisor. Epiq Bankruptcy Solutions, LLC, acts as the debtors' notice, claims and administrative agent. The U.S. Trustee for Region 4 has appointed five creditors to the Official Committee of Unsecured Creditors. Michael S. Stamer, Esq., Alexis Freeman, Esq., and Jack M. Tracy II, Esq., at Akin Gump Strauss Hauer & Feld LLP; and Jonathan L. Gold, Esq., Christopher L. Perkins, Esq., and Christian K. Vogel, Esq., at LeClairRyan. KENT ALLEN WOODS: Court Denies Zaragoza's Bid for Stay Relief ------------------------------------------------------------- Bankruptcy Judge Timothy A. Barnes denied the "Motion for Relief from the Automatic Stay Pending Arbitration" brought by Leticia Zaragoza in the Chapter 11 case of Kent Allen Woods. Prior to the Debtor's Chapter 11 filing, Zaragoza was employed by the Debtor. At some point in 2011, Zaragoza's employment with the Debtor concluded. The parties dispute the manner in which that employment was concluded. Zaragoza commenced litigation against the Debtor on June 1, 2012, captioned as Leticia Zaragoza v. Kent Woods et al., Case No. 2012 L 006163 (Cir. Ct. of Cook Cty, Illinois, June 1, 2012). In apparent response to the State Court Litigation, the Debtor commenced an arbitration matter before the Chicago Board of Trade. In the CBOT Arbitration, Zaragoza asserted as a counterclaim her claims against the Debtor from the State Court Litigation. The State Court Litigation was apparently stayed by the commencement of the CBOT Arbitration, which in turn was stayed by the commencement of the Chapter 11 Case. In his ruling, Judge Barnes noted that Zaragoza is challenging the bankruptcy court's constitutional authority to hear the matters before it. "While it is without question that this court has the authority to hear the Motion itself, [Zaragoza] attempts to establish grounds for the Motion in showing that the underlying action -- a presently pending arbitration matter before the Chicago Board of Trade (the "CBOT") ? lies outside of this court's authority," Judge Barnes said. "The Movant misapprehends the import of recent Supreme Court decisions regarding the constitutional authority of the bankruptcy courts, and that argument is fundamentally flawed. Further, even had the Movant been able to establish a challenge to this court's authority on such grounds, the Movant mistakes a lack of constitutional authority to hear an underlying matter as sufficient grounds for relief from stay. Finding no other grounds in the Motion to grant relief from stay, the court denies the Motion." A copy of Judge Barnes' August 18, 2014 Memorandum Decision is available at http://is.gd/651VtVfrom Leagle.com. Kent Allen Woods filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 13-39194) on October 4, 2013. LEHMAN BROTHERS: SkyPower, Not Its Shareholders, Can File Claim --------------------------------------------------------------- Bankruptcy Judge Shelley C. Chapman issued a Memorandum Decision sustaining Lehman Brothers Holdings Inc.'s objection to proofs of claim -- Nos. 33583 and 33586 -- filed by 2138747 Ontario Ltd. and 6785778 Canada Inc., minority shareholders of SkyPower Corp. SkyPower is a Canadian corporation whose controlling shareholder was an indirect subsidiary of LBHI. The asserted claims are based on alleged breaches of various agreements that, the minority shareholders submit, when construed together, paint a picture of a transaction that was designed to provide a benefit directly to them -- despite the fact that they are not party to (nor are they named third-party beneficiaries of) any agreement with LBHI, including the equity contribution agreement on which they rely to assert their claims. All of the other agreements that the minority shareholders allege are part of a "multifaceted transaction" designed to use "Lehman Brothers" as a funding source and investor to support and grow SkyPower's business are signed by Lehman entities other than LBHI. According to Judge Chapman, while SkyPower and its minority shareholders may well have been victims of Lehman's failure, it is SkyPower and not its minority shareholders who has the right to assert claims against LBHI. With respect to the claims, the Objection is sustained, she said. A copy of Judge Chapman's August 19, 2014 Memorandum is available at http://is.gd/Vr5eVVfrom Leagle.com. Attorneys for 2138747 Ontario Ltd. and 6785778 Canada Inc.: Shaya M. Berger, Esq. DICKSTEIN SHAPIRO LLP 1633 Broadway New York, NY 10019 Tel: (212) 277-6746 E-mail: bergers@dicksteinshapiro.com About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEO MOTORS: Sells Convertible Promissory Notes ---------------------------------------------- Leo Motors, Inc., sold three convertible promissory notes to certain accredited investors pursuant to a Securities Purchase Agreement, which were disclosed on the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on Aug.6, 2014. The Agreements contained a closing date of Aug. 14, 2014. Subsequently, on Aug. 14, 2014, the Company entered into amendments to the Agreements with each of those Investors pursuant to which the Closing Date was extended to Aug. 29, 2014. All other terms of the Agreements remained unchanged. 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. 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. 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. LIGHTSQUARED INC: Judge Conditionally Approves Plan Outline ----------------------------------------------------------- A bankruptcy judge signed off on an order conditionally approving the outline of the two competing plans proposed by LightSquared Inc. and Harbinger Capital Partners LLC. U.S. Bankruptcy Judge Shelley Chapman on Aug. 20 conditionally approved the disclosure statements to permit the solicitation of votes from creditors of the wireless broadband company, which will start on August 28. Creditors have until Sept. 23 to cast their votes on the two competing plans. Voting results are expected to be filed with the court by Oct. 2. Judge Chapman will consider final approval of the disclosure statements at a hearing that would start on Oct. 20 and continue to Oct. 31. The confirmation of the companies' proposed plans as well as the bankruptcy plan proposed by MAST Capital Management, LLC for One Dot Six Corp. will also be considered at the court hearing. The deadline for filing objections to the disclosure statements and the plans is Oct. 3. LightSquared Inc. on August 7 filed a plan with a group of lenders that has secured claims against the company's "LP" unit. The plan is premised on the merger or other combination of LightSquared Inc. and the LP unit in consideration for the treatment provided under the plan to creditors of the wireless broadband company. Under the plan, senior secured claims against the wireless broadband company will be paid in full. It also provides for potential recoveries to junior stakeholders through an auction of common equity to be issued by the new LightSquared company. A special committee composed of LightSquared directors said in a court filing that the proposed plan "maintains the possibility of the LP and Inc. estates remaining consolidated." A copy of LightSquared's plan can be accessed at http://is.gd/1QOqJM The plan proposed by Harbinger, an investment company owned by Philip Falcone, incorporates a $560 million reorganization of the LightSquared estate as a separate entity. Meanwhile, Mast Capital's plan proposes breaking the LightSquared claims apart from the LP unit. Full-text copies of the Harbinger and Mast plans are available without charge at: http://bankrupt.com/misc/LSquared_HCPplan081114.pdf http://bankrupt.com/misc/LSquared_MASTplan081914.pdf 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. LIQUIDMETAL TECHNOLOGIES: Posts $2.51-Mil. Loss in June 30 Quarter ------------------------------------------------------------------ Liquidmetal Technologies, Inc., filed 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, compared with a net loss of $1.92 million on $150,000 of total revenue for the same period last year. The Company's balance sheet at June 30, 2014, showed $16.01 million in total assets, $8.45 million in total liabilities, and stockholders' equity of $7.56 million. A copy of the Form 10-Q is available 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. LUTHERAN HOMES: S&P Affirms 'BB+' Rating on Improvement Bonds ------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook to negative from stable and affirmed its 'BB+' long-term rating on Lucas County, Ohio's series 2010 revenue refunding and improvement bonds issued for Lutheran Homes Society (LHS). "The outlook revision reflects our view of LHS' significant operating losses in fiscal 2013 and the first five months of fiscal 2014 ended May 31, producing thin maximum annual debt service coverage based on our calculations," said Standard & Poor's credit analyst Brian Williamson. The 'BB+' rating further reflects S&P's view of LHS': -- Significant operating losses, resulting in very low maximum annual debt service coverage of 1.3x, per our calculations; -- Location in northwest Ohio in competitive markets and in areas that have been affected by the economic recession; and -- High concentration of governmental payors, especially Medicaid, and thus limited revenue flexibility. As of May 31, 2014, the system had $48 million in long-term debt, all of which had fixed interest rates. LENNAR CORP: Fitch Affirms 'BB+' Issuer Default Rating ------------------------------------------------------ Fitch Ratings has affirmed Lennar Corporation's (NYSE: LEN) Issuer Default Rating (IDR) and senior unsecured debt rating at 'BB+'. The Rating Outlook is Stable. Key Rating Drivers The ratings and Outlook for Lennar reflect the company's strong liquidity position and continuing recovery of the housing sector this year and in 2015. The ratings also reflect Lennar's successful execution of its business model over many cycles, geographic and product line diversity, and much lessened joint venture exposure than was the case just a few years ago. The company did a good job in reducing its inventory exposure (especially early in the correction) and generating positive operating cash flow during the recent, severe industry downturn. Additionally, Lennar steadily, substantially reduced its number of JVs over the last few years and, as a consequence, has very sharply lowered its JV recourse debt exposure (from $1.76 billion to $29.3 million as of May 31, 2014). In contrast to almost all the other public homebuilders Lennar was profitable in fiscal 2010 and 2011 and the company was solidly profitable in fiscal 2012 and 2013. The company's gross margins are consistently above its peers, and contributions from its Rialto Investment segment have added to corporate profits in 2010, 2011, 2012 and 2013. There are still some challenges facing the housing market that are likely to moderate the early-to-intermediate stages of this recovery. Nevertheless, Lennar has the financial flexibility to navigate through the sometimes challenging market conditions and continue to broaden its franchise and invest in land and other opportunities. The Industry Housing metrics should increase in 2014 due to faster economic growth (prompted by improved household net worth, industrial production and consumer spending), and consequently some acceleration in job growth (as unemployment rates decrease to 6.4% for 2014 from an average of 7.4% in 2013), despite somewhat higher interest rates, as well as more measured home price inflation. A combination of tax increases and spending cuts in 2013 shaved about 1.5pp off annual economic growth, according to the Congressional Budget Office. Many forecasters expect the fiscal drag in 2014 to be only 0.25%. Single-family starts in 2014 are projected to improve 9.5% to 677,000 as multifamily volume grows about 11.7% to 343,000. Thus, total starts this year should top 1 million. New home sales are forecast to advance about 8% to 465,000, while existing home volume is likely to decline to 4.835 million due to fewer distressed homes for sale and limited inventory. New home price inflation should moderate in 2014, at least partially because of higher interest rates. Average and median new home prices should rise about 3.5% in 2014. Housing activity is likely to ratchet up more sharply in 2015 with the support of a steadily growing economy throughout the year. The unemployment rate should continue to move lower (5.8% in 2015). Credit standards should steadily, moderately ease throughout next year. Demographics should be more of a positive catalyst. More of those younger adults who have been living at home should find jobs and these 25-35-year-olds should provide some incremental elevation to the rental and starter home markets. Single-family starts are forecast to rise 21% to 819,000 as multifamily volume expands about 6.5% to 366,000. Total starts would be approaching 1.2 million. New home sales are projected to increase 20.4% to 560,000. Existing home volume is expected to approximate 5.075 million, up 5%. New home price inflation should further taper off with higher interest rates and the mix of sales shifting more to first time homebuyer product. Average and median home prices should increase 2.5-3%. Challenges remain, including the potential for higher interest rates, and restrictive credit qualification standards. Improving Financial Results and Credit Metrics Lennar's corporate revenues expanded 31.6% to $3,181.84 million during the first six months of 2014. Homebuilding revenues increased 34% to $2,866.17 million as home deliveries grew 12.5% to 8,573 and the average selling price increased 15.6% to $320,261. Deliveries improved in each region with the exception of Southeast Florida (-6.4%). The strongest comparisons were reported for the East and West regions, both up 18.6%. The housing gross profit margin also reflected healthy improvement, growing 202 bps during the first half 2014 - well above peer averages. SG&A expense as a percentage of total homebuilding revenues declined from 11.17% to 10.75% for the first six months of 2014. The company reported homebuilding income, before real estate charges, of $399.08 million for the first half 2014, up 69.4% Financial services revenues decreased 12.6% to $187.97 million in the absence of refinance activity, while segment profits dropped almost 50% to $22.76 million as a result of competitive pressures. Rialto Investments revenues expanded 97.5% to $101.35 million and consisted primarily of securitization revenue and interest income from Rialto Mortgage Finance (RMF), interest income associated with the Rialto's segment's portfolio of real estate loans and fees for managing and servicing assets. Rialto had a slight operating loss ($173,000) for the first half of 2014 (including $16.1 million of net loss attributable to non-controlling interest) as compared to a year earlier profit of $9.88 million (including $5.4 million of net earnings attributable to non- controlling interest). Lennar Multifamily reported revenues of $26.35 million in 2014, up 109.9%. The segment operating loss widened from $4.89 million to $13.38 million. The corporate pretax income (before real estate charges) advanced 50.3% to $331.86 million. With a much higher (normalized) tax rate in 2014, net earnings attributable to Lennar rose 10.7% to $215.84 million for the six months ended May 31, 2014. Debt-to-LTM EBITDA was 4.6x at the end of the second quarter 2014, while interest coverage was 3.7x. Fitch expects further improvement in credit metrics, with leverage approaching 4.0x and interest coverage nearing 4.0x by the end of 2014. Net unit orders and the value of orders expanded 9.1% and 23.1% respectively, for the first six months of 2014. As of May 31, 2014, unit backlog increased 11.3% to 6,858 and the backlog average sales price improved 13.4% to $342,694. The value of backlog gained 26.1% to $2,350.2 million. Liquidity The company ended the second quarter of 2014 with $627.62 million in unrestricted cash and equivalents and $39.9 million in restricted cash. At May 31, 2014, Lennar had a $950 million unsecured revolving credit facility with certain financial institutions that matures in June 2017, $200 million of letter of credit facilities with a financial institution and a $140 million letter of credit facility with a different financial institution. The proceeds available under the credit facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The credit facility agreement also provides that up to $500 million in commitments may be used for letters of credit. As of May 31, 2014, there were no outstanding borrowings under the credit facility. In June 2014, Lennar amended its credit facility increasing the aggregated principal amount from $950 million to $1.5 billion, which includes a $263 million accordion feature, subject to additional commitments. The credit facility's maturity date was extended to June 2018. The company's debt maturities are well-laddered, with about 21% of its senior notes (as of May 31, 2014) maturing through 2016. Lennar's performance letters of credit outstanding were $225.4 million as of May 31, 2014. The company's financial letters of credit outstanding were $212.6 million at the end of the second quarter. Performance letters of credit are generally posted with regulatory bodies to guarantee its performance of certain development and construction activities. Financial letters of credit are generally posted in lieu of cash deposits on option contracts, for insurance risks, credit enhancements and as other collateral. Homebuilding The company was the second largest homebuilder in 2013 and primarily focuses on entry-level and first-time move-up homebuyers. In 2013 and so far in 2014 approximately one third of sales were to the first time buyer, half to first time move up customers and the balance is a mix of second time move up, luxury and active adult. The company builds in 17 states with particular focus on markets in Florida, Texas and California. Lennar's significant ranking (within the top five or top 10) in many of its markets, its largely presale operating strategy, and a return on capital focus provide the framework to soften the impact on margins from declining market conditions. Fitch notes that in the past, acquisitions (in particular, strategic acquisitions) have played a significant role in Lennar's operating strategy. Compared to its peers, Lennar has had above-average exposure to joint ventures (JVs) during this past housing cycle. Longer-dated land positions are controlled off balance sheet. The company's equity interests in its partnerships generally ranged from 10% to 50%. These JVs have a substantial business purpose and are governed by Lennar's conservative operating principles. They allow Lennar to strategically acquire land while mitigating land risks and reduce the supply of land owned by the company. They help Lennar to match financing to asset life. JVs facilitate just-in- time inventory management. Nonetheless, Lennar has substantially reduced its number of JVs over the last eight years (from 270 at the peak in 2006 to 35 as of May 31, 2014). As a consequence, the company has very sharply lowered its JV recourse debt exposure from $1.76 billion to $29.3 million ($25.1 million net of joint and several reimbursement agreements with its partners) as of May 31, 2014. In the future, management will still be involved with partnerships and JVs, but there will be fewer of them and they will be larger, on average, than in the past. The company did a good job in reducing its inventory exposure (especially early in the correction) and generating positive operating cash flow. In 2010, the company started to rebuild its lot position and increased land and development spending. Lennar spent about $600 million on new land purchases during 2011 and expended about $225 million on land development during the year. This compares to roughly $475 million of combined land and development spending during 2009 and about $704 million in 2010. During 2012, Lennar purchased approximately $1 billion of new land and spent roughly $302 million on development expenditures. Land spend totaled almost $1.9 billion in 2013, and development expenditures reached about $600 million, double the level of 2012. Total real estate spending in 2014 could be flat to up moderately (perhaps $200 million) as Lennar incrementally focuses more on development activities than on land spend. The company was considerably more cash flow negative in 2013 ($807.71 million) than in 2012 ($424.65 million). Lennar is likely to be much less cash flow negative in 2014, maybe half as much as in 2013. Fitch is comfortable with this real estate strategy given the company's cash position, debt maturity schedule, proven access to the capital markets and willingness to quickly put the brake on spending as conditions warrant. Financial Services Lennar's financial services segment provides mortgage financing, title insurance and closing services for both buyers of its homes and others. Substantially all of the loans that the segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, Lennar retains potential liability for possible claims by purchasers that the company breached certain limited industry standard representations and warranties in the loan sale agreements. The company participates in mortgage refinance activity, which periodically is consequential business. During the first half of 2014, Lennar's financial services subsidiary provided loans to approximately 76% of its homebuyers who obtained mortgage financing in areas where Lennar offered services. During that same period, the company originated approximately 9,100 mortgage loans totaling $2.29 billion. Rialto Lennar's Rialto segment was formed to focus on acquisitions of distressed debt and other real estate assets utilizing Rialto's abilities to source, underwrite, price, turnaround and ultimately monetize such assets in markets across the United States. Lennar had a similar operation in the 1980s, LNR Property Corporation, which was the vehicle used by the company to invest in and work out large portfolios of distressed real estate assets purchased from the government's Resolution Trust Corporation (RTC). This operation was subsequently spun-off as a separate publicly traded company and was later acquired by Cerberus Capital Management. Lennar's Rialto reportable segment is a commercial real estate investment, investment management, and finance company focused on raising, investing and managing third party capital, originating and securitizing commercial mortgage loans, as well as investing its own capital in real estate related mortgage loans, properties and related securities. Rialto utilizes its vertically-integrated investment and operating platform to underwrite, diligence, acquire, manage, workout and add value to diverse portfolios of real estate loans, properties and securities, as well as providing strategic real estate capital. Rialto's primary focus is to manage third party capital and to originate and sell into securitizations commercial mortgage loans. Rialto has commenced the workout and/or oversight of billions of dollars of real estate assets across the United States, including commercial and residential real estate loans and properties, as well as mortgage backed securities. To date, many of the investment and management opportunities have arisen from the dislocation in the United States real estate markets and the restructuring and recapitalization of those markets. In July 2013, RMF was formed to originate and sell into securitization five, seven and 10-year commercial first mortgage loans, generally with principal amounts between $2 million and $75 million, which are secured by income producing properties. This business is expected to be a significant contributor to our Rialto revenues, at least in the near future. Rialto is the sponsor of and an investor in private equity vehicles that invest in and manage real estate related assets. This includes: -- Rialto Real Estate Fund, LP that was formed in 2010 to which investors have committed and contributed a total of $700 million of equity (including $75 million by Lennar); -- Rialto Real Estate Fund II, LP that was formed in 2013 with the objective to invest in distressed real estate assets and other related investments and that as of May 31, 2014 had equity commitments of $1.3 billion (including $100 million by Lennar) and was closed to additional commitments and -- Rialto Mezzanine Partners Fund that was formed in 2013 with a target of raising $300 million in capital (including $27 million committed and invested by Lennar) to invest in performing mezzanine commercial loans that have expected durations of one to two years and are secured by equity interests in the borrowing entity owning the real estate assets. Rialto also earns fees for its role as a manager of these vehicles and for providing asset management and other services to those vehicles and other third parties. Lennar Multi-Family Since 2012, Lennar has become actively involved, primarily through unconsolidated entities, in the development of multifamily rental properties. This business segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. As of May 31, 2014 Lennar's balance sheet had $166.6 million of assets related to the Lennar Multifamily segment, which includes investments in unconsolidated entities of $77.5 million. Lennar's net investment in the Lennar Multifamily segment as of May 31, 2014 was $136.2 million. The Lennar Multifamily segment had 18 unconsolidated entities, as of May 31, 2014. As of May 31, 2014, the Lennar Multifamily segment had interests in 18 communities with development costs of approximately $1 billion, of which two communities were completed and operating, two communities were partially completed and leasing, 13 communities were under construction and one community was under development. The Lennar Multifamily segment also had a pipeline of future projects totaling $3.3 billion in assets across a number of states that will be developed primarily by unconsolidated entities. Fivepoint Communities FivePoint manages large, complex master planned communities in the Western U.S., typically in a joint venture structure. These include the former military installation El Toro, the former Newhall Land and Farming Company (just north of Los Angeles) and San Francisco's Hunters Point. These entities will not be generating meaningful home deliveries for another few years. At Great Park (El Toro), the first phase of 726 homes is over 75% sold out and the second phase of 1,000 home sites will begin to be sold to builders late this year or early next year. The grand opening will be late spring 2015. Lennar won two lawsuits which would have impeded the development at Newhall Land and also won an appeal of a lawsuit that challenged its environmental permit in the second quarter 2014. Lennar expects opponents' appeals to be concluded in late 2014 and then development should begin on the first 5,000 home sites. Lennar is pre-selling homes at the Shipyard, Candle Stick Park/Hunters Point, in San Francisco. The grand opening will take place in August. About 250 homes are under construction and another 100 are scheduled to break ground in 2014. Some homes will be delivered by the end of this year. Lastly, at Treasure Island, Lennar is designing homes and doing land development engineering with an expectation to break ground in early 2016. Rating Sensitivities Future ratings and Outlooks will be influenced by broad housing market trends as well as company specific activity, such as trends in land and development spending, general inventory levels, speculative inventory activity (including the impact of high cancellation rates on such activity), gross and net new order activity, debt levels, free cash flow trends and uses, and the company's cash position. Fitch would consider taking further positive rating actions if the recovery in housing accelerates and Lennar shows steady improvement in credit metrics (such as debt to EBITDA leverage consistently less than 3x), while maintaining a healthy liquidity position (in excess of $1 billion in a combination of cash and revolver availability). Conversely, negative rating actions could occur if the recovery in housing dissipates and Lennar maintains an overly aggressive land and development spending program. This could lead to sharp declines in profitability, consistent and significant negative quarterly cash flow from operations, higher leverage and meaningfully diminished liquidity position (below $500 million). MACKEYSER HOLDINGS: Names Hammond Hanlon as Investment Banker ------------------------------------------------------------- The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware authorized MacKeyser Holdings LLC and its debtor-affiliates to employ Hammond Hanlon Camp LLC as their exclusive investment banker. The firm will: a) advice and assist the Debtors in analyzing, structuring, and negotiating the financial aspects of any restructuring transaction as follows: -- assistance to the Debtors' in reviewing and analyzing the Debtors' business plan; -- advice and assistance to the Debtors in reviewing, analyzing, structuring, and negotiating the financial aspects of potential restructuring transactions, including, but not limited to, debt to equity conversions, debt maturity extensions, modifications to interest rates, and financial covenants of debt obligations; -- assistance to the Debtors in valuing the Debtors and, as appropriate, valuing the Debtors' assets or operations; provided, that any "fairness opinions" or real estate or fixed asset appraisals, to the extent necessary, will be undertaken by an independent third party financial advisor or appraiser to be separately retained and compensated by the Debtors; -- expert advice and testimony regarding financial matters related to any restructuring transaction or any related proceeding before the bankruptcy court, and such other financial advisory services as may be requested by the Debtors from time to time in connection with executing a restructuring transaction; and -- advice to and attendance at meetings of the Debtors' board of directors, creditors group, official constituencies, and other interested parties as the Debtors determine are necessary or desirable. b) advice and assist the Debtors in formulating a plan of reorganization or liquidation and analyzing any proposed plan, including assistance in the plan negotiation and confirmation process, assistance in the preparation of any documents needed in a bankruptcy case, and assistance to the Debtors in connection with any restructuring transaction; c) assist the Debtors in identifying and evaluating candidates for potential sale transactions involving any assets or operations of the Debtors, effectuated either prior to, during the pendency of, or subsequent to consummation of a bankruptcy case, including advice to the Debtors in connection with negotiation and assistance in the consummation of such sale transactions, including, without limitation, the preparation of offering memoranda related thereto; and d) advice and assist the Debtors with respect to any debt or equity financing, whether public, private, or otherwise, conducted prior to or during the pendency of a bankruptcy case. Among other things, the Debtors agreed to pay the firm a monthly fee of $50,000 payable in advance. Thomas M. Barry, principal at the firm, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: Thomas M. Barry HAMMOND HANLON CAMP LLC 623 5th Avenue, 29th Floor New York, NY 10022 Tel: 212-257-4500 Email: tbarry@h2cllc.om About MacKeyser Holdings, LLC MacKeyser Holdings, LLC and its operating affiliates -- American Optical Services, LLC, and Exela Hearing Services, LLC -- manage integrated eye care and hearing systems providers with over 80 optical retail, optometry and ophthalmology locations in 14 states. Within certain of the Company's locations, dedicated audiology and dispensing staff conduct diagnostics, fitting and dispensing of hearing systems. MacKeyser Holdings, LLC, American Optical Services, Inc. and their affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 14-11528 to 14-11550) on June 20, 2014. David R. Hurst, Esq., and Marion M. Quirk, Esq., at Cole, Schotz, Meisel, Forman & Leonard, PA. The Debtors' financial advisor is GlassRatner Advisory & Capital Group. The investment banker is Hammond Hanlon Camp LLC. The noticing and claims management agent is American Legal Claim Services, LLC. In its petition, MacKeyser Holdings estimated $50 million to $100 million in both assets and liabilities. The petitions were signed by Thomas J. Allison, authorized officer. MACKEYSER HOLDINGS: Court Approves Cole Schotz as Counsel --------------------------------------------------------- The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware authorized MacKeyser Holdings LLC and its debtor-affiliates to employ Cole, Schotz, Meisel, Forman & Leonard, PA, as their counsel. The firm will: a) advise the Debtors with respect to their power and duties as Debtors and Debtors in possession in the continued management and operation of their businesses and properties; b) attend meetings and negotiate with representatives of creditors and other parties in interest; and advise and consult on the conduct of the cases, including all of the legal and administrative requirements of operating in Chapter 11; c) take all necessary actions to protect and preserve the Debtors' estates, including the prosecution of actions on their behalf, the defense of actions, commenced against their estates, negotiation concerning litigation in which the Debtors may be involved and objections to claims filed against the estates; d) prepare on behalf of the Debtors any necessary motions, applications, answers, orders, reports and other papers necessary to the administration of the estate; e) advise the Debtors in connection with the sale of any assets; f) appear before the Court, any appellate courts, and the U.S. Trustee, and protecting the interest of the Debtors' estates before such courts and the U.S. Trustee; and g) perform all other necessary legal services and provide all other necessary or appropriate legal advice to the Debtors in connection with the Chapter 11 cases. The firm's professionals and their hourly rates: Members and Special Counsel $335-$800 Associates $210-$420 Paralegals $170-$250 Litigation Support Specialists $150-$250 The Debtors told the Court that the firm received a retainer payment of $250,000, and, as of the petition date, continued to hold $125,000 as a retainer. David R. Hurst, member at the firm, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: David R. Hurst, Esq. COLE, SCHOTZ, MEISEL, FORMAN & LEONARD, PA 500 Delaware Avenue, Suite 1410 Wilmington, DE 19801 Tel: 302-652-3131 Fax: 302-652-3117 Email: dhurst@coleschotz.com About MacKeyser Holdings, LLC MacKeyser Holdings, LLC and its operating affiliates -- American Optical Services, LLC, and Exela Hearing Services, LLC -- manage integrated eye care and hearing systems providers with over 80 optical retail, optometry and ophthalmology locations in 14 states. Within certain of the Company's locations, dedicated audiology and dispensing staff conduct diagnostics, fitting and dispensing of hearing systems. MacKeyser Holdings, LLC, American Optical Services, Inc. and their affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 14-11528 to 14-11550) on June 20, 2014. David R. Hurst, Esq., and Marion M. Quirk, Esq., at Cole, Schotz, Meisel, Forman & Leonard, PA. The Debtors' financial advisor is GlassRatner Advisory & Capital Group. The investment banker is Hammond Hanlon Camp LLC. The noticing and claims management agent is American Legal Claim Services, LLC. In its petition, MacKeyser Holdings estimated $50 million to $100 million in both assets and liabilities. The petitions were signed by Thomas J. Allison, authorized officer. MACKEYSER HOLDINGS: Can Hire GlassRatner as Financial Advisor ------------------------------------------------------------- The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware authorized Mackeyser Holdings LLC and its debtor-affiliates to employ GlassRatner Advisory & Capital Group LLC as their financial advisor. The firm will: a) assist in evaluating the Debtors' current business plan in preparation of a revised operating plan and cash flow forecast and presentation of such plan to the Debtors' board of directors and their creditors; b) assist in identifying cost reduction and operations improvements opportunities; c) assist in developing and managing a 13-week cash flow forecast; d) assist in finance issues including assisting in preparation of reports and liaison with creditors; e) report to the board as desired or directed by the Debtors' chief executive officer; f) assist with and prepare reports to be filed by the Debtors with the U.S. Trustee's office; g) assist in analyzing the Debtors; historical financial performance as directed by the Debtors' chief executive officer; h) attend hearings in the Court, testify or file affidavits or declarations and providing such other support as the Debtors' request, in connection with the Debtors' Chapter 11 and potentially their plan of reorganization or liquidation; i) assist in the due diligence process of any proposed sale, as request; and j) provide any other advice or assistance as approved by the Debtors' chief executive officer or the board and agreed by the firm. The Debtors agreed to pay the firm on an hourly basis. The rates for the advisors who will primarily be performing services to the Debtors: Professionals Hourly Rates ------------- ------------ Kerry Krisher $485 Adam Meislik $450 Staff $175-$485 Kerry Krisher, principal at the firm, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: Kerry Krisher Adam Meislik GLASSRATNER ADVISORY & CAPITAL GROUP LLC Monarch Tower, 3424 Peachtree Road, Suite 2150 Atlanta, GA 30326 Tel: 678-904-1990 Fax: 678-904-1991 Email: kkrisher@glassratner.com ameislik@glassratner.com About MacKeyser Holdings, LLC MacKeyser Holdings, LLC and its operating affiliates -- American Optical Services, LLC, and Exela Hearing Services, LLC -- manage integrated eye care and hearing systems providers with over 80 optical retail, optometry and ophthalmology locations in 14 states. Within certain of the Company's locations, dedicated audiology and dispensing staff conduct diagnostics, fitting and dispensing of hearing systems. MacKeyser Holdings, LLC, American Optical Services, Inc. and their affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 14-11528 to 14-11550) on June 20, 2014. David R. Hurst, Esq., and Marion M. Quirk, Esq., at Cole, Schotz, Meisel, Forman & Leonard, PA. The Debtors' financial advisor is GlassRatner Advisory & Capital Group. The investment banker is Hammond Hanlon Camp LLC. The noticing and claims management agent is American Legal Claim Services, LLC. In its petition, MacKeyser Holdings estimated $50 million to $100 million in both assets and liabilities. The petitions were signed by Thomas J. Allison, authorized officer. MARTIFER AURORA: Wants Plan Filing Deadline Moved to Oct. 3 ----------------------------------------------------------- Martifer Solar USA, Inc., and Martifer Aurora Solar, LLC, ask for the second time the U.S. Bankruptcy Court for the District of Nevada to extend the periods during which only the Debtors may file a Chapter 11 plan to to Oct. 3, 2014, and solicit acceptances of that plan to Dec. 3, 2014. On June 13, 2014, the Court entered an order granting the Debtors' motion to extend exclusivity period for filing a plan through Aug. 19, 2014 and extending the solicitation period through Oct. 20, 2014. The Debtors request a 45-day extension to settle claims, which may affect the plan and the request is reasonable and appropriate under the circumstances of these Chapter 11 cases. In order to formulate their plan and provide adequate information on expected recoveries, the Debtors must define the universe of claims that are likely to be allowed against them. The Debtors are still determining the validity of claims to which they have not yet filed objections and determining whether resolutions are possible. Moreover, the resolution of the pending claim objections will have significant impact on expected recoveries for creditors. Until these and other claim objection hearings and claim issues are resolved, the Debtors cannot know or reasonably determine the universe of claims existing against the Debtors. The Debtors say that an additional extension of the Exclusivity Periods will enable the Debtors to finalize the disposition of their assets prior to the filing of their plan and promote an efficient plan solicitation process. About Martifer Solar Martifer Solar USA, Inc., and Martifer Aurora Solar LLC filed separate Chapter 11 bankruptcy petitions (Bankr. D. Nev. Case Nos. 14-10357 and 14-10355) in Las Vegas on Jan. 21, 2014. Martifer Solar USA, which is based in Los Angeles, California, estimated $10 million to $50 million in assets and liabilities. Bankruptcy Judge August B. Landis oversees the case. The Debtors tapped Brett A. Axelrod, Esq., and Micaela Rustia Moore, Esq., at Fox Rothschild LLP, in Las Vegas, as counsel, and Armory Consulting Co. as restructuring and financial advisor. The Debtors tapped Foley Hoag LLP as special Massachusetts litigation counsel with respect to a pending litigation relating to EPG Solar, LLC; and Foley & Lardner LLP as special solar counsel. The Debtors also won approval to hire FTI and Michael Tucker, a senior managing director of FTI, to serve as the company's chief restructuring officer. Cathay Bank, a prepetition lender, is represented by Michael Gerard Fletcher, Esq., and Reed S. Waddell, Esq., at Frandzel Robins Bloom & Csato, L.C.; and Natalie M. Cox, Esq., and Randolph L. Howard, Esq., at Kolesar & Leatham. Martifer Solar Inc., the proposed DIP Lender, and ultimate parent of the Debtors, is represented by Samuel A. Schwartz, Esq., and Bryan A. Lindsey, Esq., at The Schwartz Law Firm Inc. Tracy Hope Davis, the U.S. Trustee for Region 17, appointed five creditors to serve on the Official Committee of Unsecured Creditors. The Committee has retained Pachulski Stang Ziehl & Jones LLP's Bradford J. Sandler, Esq., Shirley S. Cho, Esq., Jason Rosell, Esq., and Patricia Jeffries, Esq.; and Larson & Zirzow, Matthew C. Zirzow, Esq., Zachariah Larson, Esq., and Carey Shurtliff, Esq., as counsel. MARTIFER AURORA: Taps Heritage as Auctioneer of Excess Inventory ---------------------------------------------------------------- Martifer Solar USA, Inc., and Martifer Aurora Solar, LLC, ask for permission from the U.S. Bankruptcy Court for the District of Nevada to employ Heritage Global Partners, Inc., a California corporation, as auctioneer of certain excess inventory located in California and Colorado to a third party. The assets consist of excess inventory and equipment which are located in three different warehouses. Suddath Global Logistics, LLC, stores inventory of the Debtors, generally intended for use in project construction, in a warehouse in La Mirada, California, pursuant to a master services agreement. The Debtors believe that the best and highest net recovery to the estates will arise by selling the assets at an auction through the employment and services of a licensed auctioneer. The Sale will be conducted on Sept. 16-17, 2014, and the Auction will be conducted online at www.hgpauction.com. Pursuant to their auction agreement, Heritage Global guarantees payment to Debtors of a minimum sum of $255,000, plus participation in the gross proceeds of the Auction as follows: a. Auctioneer will remit the Guaranteed Minimum to the seller within 30 days following the date of the Auction, less the amount of Suddath's claim, which will be remitted directly to Suddath; b. Auctioneer will then retain, when realized from the sale of the Assets, the next $15,000 (provided Auctioneer is only required to staff the Los Angeles facility for Auction set-up, preview and check-out and seller provides sufficient personnel to staff preview and check-out at the Colorado and New Jersey facilities) of gross sale proceeds in excess of the Guaranteed Minimum to cover expenses and partial compensation, subject to increase pursuant to Auction expenses; c. all gross proceeds as may be realized from the Sale over and above the total sum of $270,000 Dollars will then be payable as: (i) payment to seller: 70%; and (ii) payment to auctioneer: 30%; d. for purposes of the Auction Agreement, "gross proceeds" will mean all revenue from the Sale pursuant to the Auction Agreement, except (a) any applicable sales taxes collected by Auctioneer and (b) any buyer's premium payments; e. Auctioneer will charge each successful bidder its standard buyer's premium for its own account as partial compensation for auction services provided up to and including the actual Auction event. The buyer's premium will be collected by the Auctioneer directly from each purchaser in addition to the purchase price as bid for auction services. Payment to the Auctioneer of the buyer's premium by the successful bidder is not dependent on any other service provided by the Auctioneer in connection with the Auction subsequent to the actual Auction event, if any. The Debtors will not be liable to Auctioneer for buyer's premium in the event that a purchaser fails to live up to its agreement and complete a purchase; and f. Auctioneer will bear and pay all of the expenses, costs and other charges in connection with the sale of the Assets, provided, however, that if Debtors request changes to the Assets or to the Auctioneer's set-up, Auction dates or check-out plans, and the changes result in additional expenses, the seller will reimburse the Auctioneer for any and all additional and reasonable costs and expenses incurred as a result of the changes. Debtors will file a report of the Sale with the Court at the conclusion of the Auction. No further confirmation of sale will be sought. The Debtors are informed and believe that Heritage Global is a disinterested person within the meaning of 11 U.S.C. Section 101, and accordingly that it is appropriate to employ Heritage Global under the provisions of 11 U.S.C. Section 327(a). On July 24, 2014, the Hon. August B. Landis of the U.S. Bankruptcy Court for the District of Nevada granted the Debtors permission to employ the Law Office of Nathan A. Schultz, P.C., as counsel. As reported by the Troubled Company Reporter on June 25, 2014, the Schultz Firm provided prior to the Petition Date services to Debtors pursuant to a contract attorney relationship with Fox Rothschild LLP, the proposed counsel to the Debtor, particularly in connection with the Debtors' efforts to negotiate a workout with its prepetition lender Cathay Bank. On Feb. 10, 2014, the Debtors disclosed their understanding that "Fox Rothschild anticipates continuing to utilize the services of the Schultz Firm on the same contract basis in connection with its representation of Debtors in the Chapter 11 cases. About Martifer Solar Martifer Solar USA, Inc., and Martifer Aurora Solar LLC filed separate Chapter 11 bankruptcy petitions (Bankr. D. Nev. Case Nos. 14-10357 and 14-10355) in Las Vegas on Jan. 21, 2014. Martifer Solar USA, which is based in Los Angeles, California, estimated $10 million to $50 million in assets and liabilities. Bankruptcy Judge August B. Landis oversees the case. The Debtors tapped Brett A. Axelrod, Esq., and Micaela Rustia Moore, Esq., at Fox Rothschild LLP, in Las Vegas, as counsel, and Armory Consulting Co. as restructuring and financial advisor. The Debtors tapped Foley Hoag LLP as special Massachusetts litigation counsel with respect to a pending litigation relating to EPG Solar, LLC; and Foley & Lardner LLP as special solar counsel. The Debtors also won approval to hire FTI and Michael Tucker, a senior managing director of FTI, to serve as the company's chief restructuring officer. Cathay Bank, a prepetition lender, is represented by Michael Gerard Fletcher, Esq., and Reed S. Waddell, Esq., at Frandzel Robins Bloom & Csato, L.C.; and Natalie M. Cox, Esq., and Randolph L. Howard, Esq., at Kolesar & Leatham. Martifer Solar Inc., the proposed DIP Lender, and ultimate parent of the Debtors, is represented by Samuel A. Schwartz, Esq., and Bryan A. Lindsey, Esq., at The Schwartz Law Firm Inc. Tracy Hope Davis, the U.S. Trustee for Region 17, appointed five creditors to serve on the Official Committee of Unsecured Creditors. The Committee has retained Pachulski Stang Ziehl & Jones LLP's Bradford J. Sandler, Esq., Shirley S. Cho, Esq., Jason Rosell, Esq., and Patricia Jeffries, Esq.; and Larson & Zirzow, Matthew C. Zirzow, Esq., Zachariah Larson, Esq., and Carey Shurtliff, Esq., as counsel. MASHANTUCKET PEQUOT: Moody's Cuts CFR to Caa3 on Covenant Default ----------------------------------------------------------------- Moody's Investors Service lowered The Mashantucket Pequot Tribal Nation's Corporate Family Rating to Caa3 from Caa1 and placed the company ratings on review for downgrade. Issuer: Mashantucket (Western) Pequot Tribe, CT Ratings lowered and on review for downgrade: Corporate Family Rating, to Caa3 from Caa1 and placed under review for further downgrade Probability of Default Rating, to Caa3-PD from Caa1-PD and placed under review for further downgrade Term loan A due 2018, to B2(LGD2) from B1(LGD2) and placed under review for further downgrade Term loan B due 2020, to B2(LGD2) from B1(LGD2) and placed under review for further downgrade Term loan C due 2016, to B2(LGD2) from B1(LGD2) and placed under review for further downgrade Revolver due 2016, to B2(LGD2) from B1(LGD2) and placed under review for further downgrade The Mashantucket Pequot Tribal Nation (MPTN) conducts the gaming and resort operations of Foxwoods Resort Casino through the Mashantucket Pequot Gaming Enterprise (Gaming Enterprise), a wholly-owned, unincorporated division of MPTN. Ratings Rationale The downgrade to Caa3, along with the possibility of a further downgrade, is based on Moody's view that because of non-compliance with certain bank agreement financial covenants and a challenging market environment, there is a high degree of risk that MPTN will not be able to sustain its current capital structure and that some form of debt restructuring and impairment is likely. MPTN was not in compliance with the senior leverage and interest coverage financial maintenance covenants for the period ended June 30, 2014. The lenders now have the option to declare a default and pursue all available rights and remedies including the right to block upcoming non-bank debt service payments, the earliest of which occurs September 30, 2014. At this time, MPTN is current on all debt service payments, and the lenders have not declared an event of default. Compounding the immediate concern related to non-compliance with bank loan covenants, is the continued decline in the MPTN's Gaming Enterprise's revenue and earnings, a trend that has kept debt/EBITDA at over 10 times since the company emerged from a restructuring in early 2013. All of MPTN's revenue and earnings come from its Connecticut casino. Connecticut is among the states suffering the most as competition expands in the region. Like other regional gaming companies throughout the US, MPTN's earnings have been unfavorably impacted by a combination of reduced spending trends by gaming consumers, increased competition, and more aggressive promotional activity. The review for downgrade will focus on the outcome of the company's discussion with its lenders concerning covenants, the possibility that non-bank debt service payments could be blocked, and any restructuring. The principal methodology used in this rating was the Global Gaming Industry published in June 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. MEDICAL IMAGING: Incurs $9,000 Net Loss for Q2 Ended June 30 ------------------------------------------------------------ Medical Imaging Corp. filed its quarterly report on Form 10-Q, disclosing a net loss of $9,000 on $1.32 million of sales for the three months ended June 30, 2014, compared with a net loss of $68,916 on $1.19 million of sales for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $3.31 million in total assets, $3.33 million in total liabilities, and a total stockholders' deficit of $20,461. The Company incurred net losses of $10,336 for the three months ended June 30, 2014 as well as a working capital deficit of $418,415. These conditions raise substantial doubt to the Company's ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/v2z1J2 Medical Imaging Corp., formerly Diagnostic Imaging International Corp., is engaged in providing comprehensive medical diagnostic imaging services to clients in the United States and Canada through its wholly owned subsidiaries: Custom Teleradiology Services, Inc. ("CTS") and Schuylkill Medical Imaging (SMI). Founded in 2004, CTS is a leading provider of expert remote reading and reporting of medical diagnostic imaging scans for rural hospitals, clinics and referring physicians. SMI is the premier outpatient diagnostic imaging facility serving patients in Schuylkill County, Pennsylvania; and has provided high quality medical diagnostic imaging services to the region for more than 11 years. MOMENTIVE PERFORMANCE: Judge Urges Settlement on Ch. 11 Plan ------------------------------------------------------------ Tom Corrigan, writing for Daily Bankruptcy Review, reported that Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York urged Momentive Performance Materials and its creditors to continue negotiations and stop bickering before he rules on the company's bankruptcy-exit plan. According to the report, on Aug. 22, the final day of a contentious, week-long hearing on the company's plan to slash its debts and exit Chapter 11, Judge Drain heard arguments on a variety of objections to the plan but he ultimately asked for creditors -- Momentive's highest ranking bondholders in particular -- to continue negotiations. 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. Wilmington Trust, National Association, the Trustee for the Momentive Performance Materials Inc. 10% Senior Secured Notes due 2020 -- 1.5 Lien Notes -- under the Indenture, dated as of May 25, 2012, by and between Momentive Performance Materials Inc. and The Bank of New York Mellon Trust Company, National Association, is represented by Mark R. Somerstein, Esq., Mark I. Bane, Esq., and Stephen Moeller-Sally, Esq., at Ropes & Gray LLP. U.S. Bank National Association -- as successor Indenture Trustee under the indenture dated as of December 4, 2006, among Momentive Performance Materials Inc., the Guarantors named in the Indenture, and Wells Fargo Bank, N.A. as initial trustee, governing the 11.5% Senior Subordinated Notes due 2016 -- is represented in the case by Susheel Kirpalani, Esq., Benjamin I. Finestone, Esq., David L. Elsberg, Esq., Robert Loigman, Esq., K. John Shaffer, Esq., and Matthew R. Scheck, Esq., at Quinn Emanuel Urquhart & Sullivan, LLP; and Clark Whitmore, Esq., and Ana Chilingarishvili, Esq., at Maslon Edelman Borman & Brand, LLP. 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 -- is represented by Michael J. Sage, Esq., Brian E. Greer, Esq., and Mauricio A. Espana, Esq., at Dechert LLP. 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., and Ashleigh L. Blaylock, Esq., at Akin Gump Strauss Hauer & Feld LLP. Attorneys for Ad Hoc Committee of Second Lien Noteholders are Dennis F. Dunne, Esq., Michael Hirschfeld, Esq., and Samuel A. Khalil, Esq., at Milbank, Tweed, Hadley & McCloy LLP. N-VIRO INTERNATIONAL: Reports $376K Net Loss During 2nd Quarter --------------------------------------------------------------- N-Viro International Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $376,534 on $170,091 of revenues for the three months ended June 30, 2014, compared to a net loss of $443,711 on $938,133 of revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $815,617 on $693,680 of revenues compared to a net loss of $1.06 million on $1.72 million of revenues for the same period during the prior year. The Company's balance sheet at June 30, 2014, showed $1.68 million in total assets, $2.66 million in total liabilities and a $983,587 total stockholders' deficit. "The Company has negative working capital of approximately $1,851,000 at June 30, 2014, has incurred recurring losses and negative cash flow from operations for the year ended December 31, 2013, and incurred negative cash flow from operating activities for the first six months of 2014. Moreover, while the Company expects to arrange for replacement financing with other lending institutions, there is no borrowing availability under the line of credit at June 30, 2014. The Company has borrowed money from third parties and related parties and expects to be able to generate future cash from the exercise of common stock warrants and new equity issuances, though there can be no assurance given that such issuances or exercises will be realized. The Company has slowed payments to trade vendors, and has renegotiated payment terms with several existing and prior vendors to lengthen the time and/or reduce the amount of cash to repay these trade payables. In 2012 the Company modified all outstanding common stock warrants to reduce their weighted average exercise price, and in the first quarter of 2013 further modified all outstanding warrants and realized $124,000 in exercises. Beginning in March 2014, the Company's operations in Volusia County, Florida, which now represent substantially all revenue, were voluntarily delayed while the Company employed additional personnel and moved assets to the Company's new site in Bradley, Florida. The Company considers its relationship with the current landlord to be satisfactory overall as we work to reduce and eventually terminate operations on their site. While operations resumed in Bradley in June 2014, this reduction in revenue, while temporary, materially reduced available cash to fund current or prior expenses incurred. These factors raise substantial doubt as to the Company's ability to continue as a going concern," the Company said in the Form 10-Q. A full-text copy of the Form 10-Q is available for free at: http://is.gd/MGt8bh On Aug. 8, 2014, N-Viro Energy Limited, a capital-sourcing entity for N-Viro International Corporation, notified its Board of Directors it had received GBP179,000, or approximately US$298,000, which represents the first close of funding in its efforts to raise capital and commitments for corporate and project funding. N-Viro Energy Limited expects to close on the second tranche of funding in September 2014 for an estimated GBP350,000, or approximately US$582,000 at Aug. 7, 2014's exchange rate, although there are no assurances of the amount or timeframe for this second tranche of funding. At present, NVIC holds 45% of the Class C voting shares that select Directors for N-Viro Energy Limited. Michael Burton- Prateley, who is an NVIC board member, is the beneficial owner of 20% of N-Viro Energy Limited Class C stock. The initial Directors of N-Viro Energy Limited include Timothy R. Kasmoch and Robert W. Bohmer, the Company's CEO and executive vice president, respectively, and Mr. Burton-Prateley. 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. 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. NEW MILLENNIUM MANAGEMENT: Corral Tran Singh Allowed $3,880 Fee --------------------------------------------------------------- Bankruptcy Judge Letitia Z. Paul says Corral Tran Singh, LLP, with Susan Tran as attorney in charge, counsel to New Millennium Management, LLC, should be allowed a fee in the amount of $3,880. In its fee application, the firm seeks allowance of $11,700 in fees, and $121.00 in expenses, for the period from January 5, 2014 through February 25, 2014. Among others, the time records reflect that the firm billed $3,340 for settlement negotiations with TexHou Investment Group, Ltd., which filed a motion to convert the case to Chapter 7, or for appointment of a Chapter 11 Trustee. At the hearing on the fee application, Susan Tran testified that the firm's services were of benefit to the bankruptcy estate in that "it did give the Debtor a fair shot at having a Chapter 11 trustee appointed, instead of automatically going into liquidation." A copy of the Court's Aug. 18, 2014 Memorandum Opinion is available at http://is.gd/Y2H0pSfrom Leagle.com. About New Millennium Management New Millennium Management, L.L.C., filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 13-35719-H3-11) on Sept. 13, 2013. Its primary business is the operation of a commercial building located at 810 Waugh, Houston, Texas. Judge Letitia Z. Paul presides over the case. Margaret Maxwell McClure, Esq., at the Law Office of Margaret M. McClure, served as the Debtor's counsel. McClure was later replaced by Susan Tran, Esq., at Corral Tran Singh, LLP. In its petition, the Debtor estimated under $10 million in both assets and debts. The petition was signed by David L. Sheller, managing member. Randy W. Williams was appointed as Chapter 11 Trustee on February 28, 2014. The case was converted to a case under Chapter 7 of the Bankruptcy Code on June 2, 2014. NMBFIL INC: Court Confirms Protections of Sec. 362 -------------------------------------------------- Judge Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware issued an order confirming the protections of Section 362 of the Bankruptcy Code in the Chapter 11 case of NMBFiL, Inc. Pursuant to the order, commencing on Aug. 15, 2014, all persons and all foreign or domestic governmental units are stayed, restrained and enjoined from: (a) commencing or continuing any judicial, administrative or other proceeding against the Debtor, including the issuance or employment of process that was or could have been commenced before NMBFil's Chapter 11 case was commenced; (b) recovering a claim against NMBFiL that arose before the Petition Date; (c) taking any action to obtain possession of property of NMBFiL or of property from NMBFiL; (d) taking any action to create, perfect or enforce any lien against property of NMBFiL, to the extent that that lien secures a claim that arose before the Petition Date; (e) taking any action to collect, assess or recover a claim against NMBFiL that arose before the Petition Date; and (f) offsetting any debt owing to NMBFiL that arose before the Petition Date against any claim against NMBFiL. About NMBFiL Medina, Ohio-based NMBFiL, Inc., filed a bare-bones Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 14-11942) on Aug. 15, 2014, without stating a reason. The case is assigned to Judge Peter J. Walsh. Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, in Wilmington, Delaware, serves as counsel. On May 31, 2010, Specialty Products Holding Corp. and Bondex International, Inc., both of which are affiliates of Debtor NMBFil, Inc., each filed a petition for relief under Chapter 11 of the Bankruptcy Code. Debtor NMBFiL intends to file a motion requesting that its Chapter 11 case be jointly administered with the Initial Debtors' Chapter 11 cases for administrative purposes only. NEWLEAD HOLDINGS: 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. 18, 2014, it ceased to beneficially own shares of common stock of NewLead Holdings Ltd. Asher Enterprises previously owned 3,298,026 shares of common stock or 9.9 percent equity stake at April 23, 2014. A full-text copy of the regulatory filing is available for free at http://is.gd/4nTd6G About NewLead Holdings Ltd. Based in Athina, Greece, NewLead Holdings Ltd. -- http://www.newleadholdings.com/-- is an international, vertically integrated shipping company that owns and manages product tankers and dry bulk vessels. NewLead currently controls 22 vessels, including six double-hull product tankers and 16 dry bulk vessels of which two are newbuildings. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. NewLead Holdings reported a net loss of $158.22 million on $7.34 million of operating revenues for the year ended Dec. 31, 2013, as compared with a net loss of $403.92 million on $8.92 million of operating revenues in 2012. The Company's balance sheet at Dec. 31, 2013, showed $151.33 million in total assets, $292.68 million in total liabilities and a $141.34 million total shareholders' deficit. EisnerAmper LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred a net loss, negative operating cash flows, a working capital deficiency, and shareholders' deficiency and has defaulted under its credit facility agreements. Those conditions raise substantial doubt about the Company's ability to continue as a going concern. NEWLEAD HOLDINGS: Inronridge Sought Add'l 6MM Common Shares ----------------------------------------------------------- Ironridge Global IV, Ltd., on Aug. 13, 2014, requested an additional 2.8 million common shares of NewLead Holdings Ltd. and, on Aug. 21, 2014, Ironridge requested an additional 3.2 million common shares of the Company, according to NewLead Holdings' regulatory filing with the U.S. Securities and Exchange Commission. As of Aug. 21, 2014, Ironridge has requested 14.5 million shares, 7.3 million of which have been requested but not issued. As of July 31, 2014, Ironridge has invested $2.5 million in the Company and force funded another $2.5 million, which was immediately returned pending resolution of the arbitration, and, as disclosed to the Company by Ironridge, has sold the common shares of the Company issued to it for aggregate proceeds of $32.3 million. As of Aug. 21, 2014, the Company had approximately 33.4 million shares outstanding. A full-text copy of the Form 8-K disclosure is available for free at http://is.gd/18QU1f About NewLead Holdings Ltd. Based in Athina, Greece, NewLead Holdings Ltd. -- http://www.newleadholdings.com/-- is an international, vertically integrated shipping company that owns and manages product tankers and dry bulk vessels. NewLead currently controls 22 vessels, including six double-hull product tankers and 16 dry bulk vessels of which two are newbuildings. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. NewLead Holdings reported a net loss of $158.22 million on $7.34 million of operating revenues for the year ended Dec. 31, 2013, as compared with a net loss of $403.92 million on $8.92 million of operating revenues in 2012. The Company's balance sheet at Dec. 31, 2013, showed $151.33 million in total assets, $292.68 million in total liabilities and a $141.34 million total shareholders' deficit. EisnerAmper LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred a net loss, negative operating cash flows, a working capital deficiency, and shareholders' deficiency and has defaulted under its credit facility agreements. Those conditions raise substantial doubt about the Company's ability to continue as a going concern. ORIENT PAPER: Seeking to Raise Funds to Pay Off Debt ---------------------------------------------------- Orient Paper, Inc., filed its quarterly report on Form 10-Q, disclosing net income of $3.57 million on $37.84 million of revenue for the three months ended June 30, 2014, compared with net income of $3.66 million on $33.04 million of revenue for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $224.21 million in total assets, $58.15 million in total liabilities and total stockholders' equity of $166.07 million. As of June 30, 2014, the Company had current assets of $32.22 million and current liabilities of $40.95 million (including amounts due to related parties for $2.41 million), resulting in a working capital deficit of approximately $8.73 million; while as of Dec. 31, 2013, the Company had current assets of $25.95 million and current liabilities of $28.37 million (including amounts due to related parties for $2.27 million), resulting in a working capital deficit of approximately $2.42 million. The Company is currently seeking to restructure the term of its liabilities by raising funds through long-term loans to pay off liabilities with shorter terms. Its ability to continue as a going concern is dependent upon obtaining the necessary financing or negotiating the terms of the existing short-term liabilities to meet the Company's current and future liquidity needs. Although management believes it can secure financial resources to satisfy the Company's current liabilities and the capital expenditure needs in the next 12 months, there are no guarantees that these financial resources will be secured. Therefore, there is a substantial doubt about the ability of the Company to continue as going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/BPUXMt Orient Paper, Inc. is one of the leading paper manufacturers in northern China. The Hebei, China-based Company conducts its operations through Hebei Baoding Orient Paper Milling Company Limited (Orient Paper HB), which produces printing paper and corrugating medium paper, and Baoding Shengde Paper Co., Ltd (Orient Paper Shengde), which produces digital photo paper. ORO EAST MINING: Incurs $694K Net Loss for Second Quarter --------------------------------------------------------- Oro East Mining, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $694,627 on $nil of net sales of metal concentrates for the three months ended June 30, 2014, compared with a net loss of $391,106 on $nil of net sales of metal concentrates for the same period last year. The Company's balance sheet at June 30, 2014, showed $1.09 million in total assets, $2.25 million in total liabilities, and a total stockholders' deficit of $1.17 million. The Company has an accumulated deficit of $5.94 million and a negative working capital of $1.96 million at June 30, 2014. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management's plan includes obtaining additional funds by equity and debt financing and/or related party advances, but there is no assurance of additional funding being available. These conditions raise substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/iIWWVF Oro East Mining, Inc., an exploration stage company, focuses on mining gold, silver, copper, iron ore, and other industrial mineral deposits in the Philippines. It holds interests in the MPSA 320-2010-XI property, a tenement claim covering an area of 7,855 hectares located in the municipalities of Lupon and Tarragona in the Davao Oriental Province, Island Region of Mindanao, the Philippines. The company was formerly known as Accelerated Acquisitions I, Inc. and changed its name to Oro East Mining, Inc. in September 2010. Oro East Mining, Inc. was founded in 2008 and is headquartered in Oakland, California. PACIFIC GOLD: Incurs $695,000 Second Quarter Net Loss ----------------------------------------------------- Pacific Gold Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $695,652 on $0 of revenue for the three months ended June 30, 2014, compared to a net loss of $515,379 on $0 of revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $986,355 on $0 of revenue compared to a net loss of $736,264 on $0 of revenue for the same period during the prior year. As of June 30, 2014, the Company had $1.09 million in total assets, $3.80 million in total liabilities and a $2.71 million total stockholders' deficit. The Company had an accumulated deficit of $45,555,610 and a working capital deficit of $1,215,449 at June 30, 2014. During the six months ended June 30, 2014, the company financed its operations through the sale of securities, proceeds received from sale of mining claims, and issuance of debt. A full-text copy of the Form 10-Q is available for free at: http://is.gd/FVOaN8 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. 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. PETROSONIC ENERGY: Has $552K Net Loss for Q2 Ended June 30 ---------------------------------------------------------- Petrosonic Energy Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $552,525 on $nil of revenues for the three months ended June 30, 2014, compared to a net loss of $953,303 on $nil of revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $2.14 million in total assets, $852,484 in total liabilities and total stockholders' equity of $1.29 million. The Company has suffered recurring net losses since inception, has an accumulated deficit at June 30, 2014 and does not have sufficient working capital for its planned activities, which raises substantial doubt about its ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/Z6RJFF Petrosonic Energy, Inc., a development stage company, focuses on the treatment and upgrading of heavy oil through sonicated solvent de-asphalting. The company was formerly known as Bearing Mineral Exploration, Inc. and changed its name to Petrosonic Energy, Inc. in May 2012. Petrosonic Energy, Inc. was founded in 2008 and is headquartered in Los Angeles, California. PFS HOLDING: Moody's Puts 'B2' CFR on Review for Downgrade ---------------------------------------------------------- Moody's Investors Service placed PFS Holding Corporation's B2 Corporate Family Rating ("CFR") on review for downgrade following the company's second quarter earnings, which reflected dramatically deteriorated operating performance due to integration challenges faced with a recent acquisition, and loss of the right to distribute the Royal Canin product line. This has also negatively impacted the company's credit metrics and liquidity profile relative to what Moody's expected at the time the ratings were assigned. "The company's leverage exceeds 7 times, which is what Moody's have laid out could contribute to a downgrade," said Nancy Meadows, a Vice President and Senior Analyst at Moody's. "As part of the review process, Moody's will need to understand what the company's plans are to get credit metrics back in a range appropriate for the B2 rating," she added. Ratings Rationale The review will focus on PFS's plans to stabilize the business operations and restore revenue growth in the second half of 2014 and beyond. Moody's will also assess PFS's financial position including projected liquidity, cash flow, credit metrics, and acquisition strategy. The following ratings were placed on review for downgrade: PFS Holding Corporation -- Corporate Family rating at B2; -- Probability of Default Rating at B2-PD; -- $260 million senior secured first lien term loan expiring in January 2021 at B2 (LGD 3); -- $130 million second lien term loan due 2022 at Caa1 (LGD 5); Easton, Pennsylvania-based PFS Holding Corporation (along with its operating subsidiary Phillips Pet Food & Supplies), is a pet food and pet supply distributor in the U.S., servicing independent pet retail stores, online retailers and other channels such as groomers and other specialty outlets. For the twelve months ended June 30, 2014, the company posted pro forma revenues of approximately $1 billion. The company was acquired by Thomas H. Lee Partners in January 2014. Pro forma for the acquisition, Thomas H. Lee owns the majority of the equity, with a meaningful minority stake held by management. The principal methodology used in this rating was the Global Distribution & Supply Chain Services published in November 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. PILOT TRAVEL: Moody's Affirms 'Ba2' Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service changed the ratings outlook for Pilot Travel Centers LLC to stable from negative and affirmed the company's ratings, including its Ba2 senior secured bank ratings, Ba2 Corporate Family Rating (CFR) and Ba3-PD Probability of Default Rating (PDR). "The stabilization of the outlook is due to the elimination of the uncertainty of the financial impact of the U.S Justice Department's investigation into the company's diesel fuel discount programs and the related lawsuits filed against it by trucking companies," Moody's Senior Analyst Mickey Chadha stated. "Pilot has settled a majority of the lawsuits related to this matter including a class action lawsuit and Moody's do not expect that the monetary penalty under the agreement with the Justice Department or the payments pertaining to the settlement of the lawsuits will have material impacts on Pilot's credit metrics," Chadha further stated. Under the criminal enforcement agreement the company will not be prosecuted, assuming it follows the terms of the agreement, including paying a monetary penalty over the next two years which the government has set at $92 million and cooperating fully with the federal government's investigation of fraudulent conduct within the company's diesel fuel sales discount programs. The agreement stems from an April 2013 search on the company's Knoxville headquarters by the FBI and the Internal Revenue Service in an investigation into fraud allegations in its fuel rebate program. Since then, a number of former Pilot employees have pleaded guilty to charges that they deliberately reduced promised rebates to many trucking firms throughout the country. Ratings Rationale Pilot's Ba2 CFR reflects the company's relatively good debt protection metrics, meaningful scale, geographic reach, relatively diverse profit stream, and good liquidity. The ratings are constrained by Pilot's reliance on high volume, low margin fuel sales, some regional concentration, and concern that financial policies with respect to dividends and acquisitions could become more aggressive. The following ratings are affirmed: Corporate Family Rating at Ba2 Probability of Default Rating at Ba3-PD $300 million senior secured term loan due 2016 at Ba2 LGD3 $800 million senior secured term loan due 2016 at Ba2 LGD 3 $900 million senior secured revolving credit facility due 2016 at Ba2 LGD3 $343 million senior secured term loan due 2018 at Ba2 LGD3 $1,000 million senior secured term loan due 2018 at Ba2 LGD3 $700 million senior secured term loan due 2019 at Ba2 LGD3 $200 million senior secured term loan due 2016 at Ba2 LGD3 The stable outlook reflects Moody's view that Pilot's operating performance will remain good and debt protection metrics will not materially deteriorate from current levels that liquidity will remain good. A downgrade could occur in the event that liquidity contracted beyond current levels or debt protection metrics weaken due to a sustained deterioration in operating performance or an adverse impact of pending litigation. The adoption of an aggressive financial policy or growth strategy that negatively impacted debt protection metrics or liquidity could also pressure the ratings. Specifically, ratings could be downgraded if debt to EBITDA exceeded 4.5 times, EBITA coverage of interest fell below 1.75 times. An upgrade would require a sustained improvement in debt protection metrics driven in part by stronger operating performance of its fuel business, with gross margins from Pilot's non- fuel businesses remaining stable. A higher rating would also require good liquidity. Quantitatively, an upgrade would require sustained debt to EBITDA below 3.5 times, EBITA coverage of interest of above 4.0 times, and retained cash flow to net debt of about 25%. Pilot Travel Centers LLC is a partnership that owns and operates over 500 truck stops across the U.S. and Canada. In addition to fuel, Pilot locations have convenience stores, fast food restaurants, and other amenities. Annual revenues are approximately $32 billion. The principal methodology used in this rating was the Global Retail Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. PLY GEM HOLDINGS: To Buy Simonton Windows From Fortune Brands ------------------------------------------------------------- Ply Gem Holdings, Inc., through its subsidiary, Ply Gem Industries, has signed an agreement with Fortune Brands Home & Security, Inc., to acquire Simonton Windows -- one of America's leading vinyl window and patio door manufacturers with revenues of more than $300 million. As part of the deal, Ply Gem will also acquire all assets of SimEx, a vinyl and PVC foam extrusion manufacturing operation in West Virginia, from Fortune Brands. The transaction, valued at approximately $130 million, aligns with Ply Gem's plans for growing strategically while contributing to earnings growth through targeted acquisitions of complementary specialty product lines. The transaction combines two leading low-maintenance, energy- efficient residential window businesses under the Ply Gem umbrella, and is expected to: * Create a more comprehensive, balanced portfolio by combining Simonton's strength in the repair and remodeling (R&R) market with Ply Gem's leadership in the new construction market. * Establish a stronger national residential windows platform with manufacturing scale and channel distribution advantages to serve both R&R and new construction customers. * Generate opportunities for operational efficiencies to enhance customer service and propel future profitability and growth, core tenets of Ply Gem's strategic vision. "The addition of Simonton Windows is in full alignment with our strategic growth plan and will better balance the mix of end markets that we serve while strengthening our core capabilities and contributing significantly to revenues in the future," said Gary E. Robinette, Ply Gem's president and CEO. "A prominent brand, Simonton has consistently been ranked a leader in the J.D. Powers Window and Patio Doors Satisfaction StudySM and is known for exceptional quality and service. Simonton Windows ideally complements our existing portfolio of window products." Robinette adds, "Simonton is a perfect fit for the Ply Gem culture, and we are confident this new addition will help us achieve synergies and competitive advantages that drive growth in top line sales and customer and shareholder value." Expected to close in October pending regulatory approval, Ply Gem is funding the deal through a combination of cash-on-hand and new debt. After giving effect to anticipated cost savings and synergies, the acquisition is expected to be credit accretive. Ply Gem will operate Simonton Windows as a stand-alone business unit, similar to the way the company's existing Siding and Window groups operate today. Simonton customers will continue to be serviced through its existing relationships. "We will be very pleased to welcome the experienced Simonton management team to Ply Gem when the deal is closed,' said Robinette. "We look forward to working with them -- and all Simonton associates -- in the years ahead to build and maintain the best exterior building products company in the industry," said Robinette. Headquartered in Columbus, Ohio, Simonton produces ENERGY STAR- qualified vinyl replacement and new construction windows and doors, including a line of impact resistant products, at manufacturing facilities in West Virginia, Illinois and California. About Ply Gem Based in Cary, North Carolina, Ply Gem Holdings Inc. is a diversified manufacturer of residential and commercial building products, which are sold primarily in the United States and Canada, and include a wide variety of products for the residential and commercial construction, the do-it-yourself and the professional remodeling and renovation markets. Ply Gem Holdings reported a net loss of $79.52 million in 2013, a net loss of $39.05 million in 2012 and a net loss of $84.50 million in 2011. * * * In May 2010, Standard & Poor's Ratings Services raised its (unsolicited) corporate credit rating on Ply Gem to 'B-' from 'CCC+'. "The ratings upgrade reflects our expectation that the company's credit measures are likely to improve modestly over the next several quarters to levels that we would consider more in line with the 'B-' corporate credit rating," said Standard & Poor's credit analyst Tobias Crabtree at that time. PURADYN FILTER: Posts $251K Net Loss in June 30 Quarter ------------------------------------------------------- Puradyn Filter Technologies Incorporated filed 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, compared with a net loss of $474,215 on $600,390 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 total stockholders' deficit of $10.63 million. A copy of the Form 10-Q is available at: http://is.gd/orgMcB 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. The Company's balance sheet at March 31, 2014, showed $1.56 million in total assets, $11.96 million in total liabilities and a $10.40 million total stockholders' deficit. 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. QUEST SOLUTION: Launches New Intellectual Property Division ----------------------------------------------------------- Quest Solution, Inc., announced the creation of a wholly owned division focused on commercializing Intellectual Property, Patents and Distribution of industry-specific technologies in an array of new verticals. The new division will operate under the stewardship of recent Quest Solution advisory board members Augie Sick and Jim Holt, each of whom bring considerable technology expertise, operational successes and a bounty of contacts. Quest Solution disclosed its first agreement in this new division via a global exclusive distribution agreement with Rampart Detection Systems of Canada. Quest Solution will become the exclusive distributor of Rampart's unique technology for Intelligent Bulk Solids Handling inside of the Mining, Minerals and Metals industry. The purpose of this division is to significantly grow margins and recurring revenue generation for Quest Solution. Jim Holt said, "Rampart's solutions significantly lower costs, improve profits and eliminate catastrophic events that occur at mines with their conveyor systems. With conveyor belts sometimes costing $5 million and hopper crushers costing $30 million or more and downtime running into the millions, these solutions have proven to be very affordable systems." Holt continued, "Rampart's Belt Guard family of products utilizes proprietary applied work in electrodynamics using sensors and signal processing software to detect conditions and situations that could shut down operations. Application of this set of solutions can be used on Conveyors, Haul Trucks, and Hopper Crushers." No shares were issued or cash expended in conjunction with this transaction. The Company intends to announce other verticals for the new Division and as current negotiations consummate into executed agreements. About Quest Solution Quest Solution (formerly known as Amerigo Energy, Inc.) is a national mobility systems integrator with a focus on design, delivery, deployment and support of fully integrated mobile solutions. The Company takes a consultative approach by offering end to end solutions that include hardware, software, communications and full lifecycle management services. The highly tenured team of professionals simplifies the integration process and delivers proven problem solving solutions backed by numerous customer references. Motorola, Intermec, Honeywell, Panasonic, AirWatch, Wavelink, SOTI and Zebra are major suppliers which Quest Solution uses in its systems. Amerigo Energy reported a net loss of $1.12 million in 2013 following a net loss of $191,364 in 2012. As of June 30, 2014, the Company had $20.89 million in total assets, $20.96 million in total liabilities and a $68,629 total stockholders' deficit. L.L. Bradford & Company, LLC, Las Vegas, NV, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern. REVEL AC: Final DIP Financing Hearing Moved to Aug. 28 ------------------------------------------------------ The hearing to consider final approval of Revel AC Inc.'s request to obtain debtor-in-possession financing has been moved to August 28. Revel AC previously won interim approval from U.S. Bankruptcy Judge Gloria Burns to borrow $25 million from Wells Fargo Bank N.A. and other lenders, of which $1.9 million is available only for issuance of letters of credit. The loan will increase to $41.9 million once the company gets the bankruptcy judge's final approval. The interim order also authorized the company to use cash collateral securing its pre-bankruptcy debt. The interim order can be accessed for free at http://is.gd/IBlCIS The proposed financing drew flak from Revel AC's creditors, including Mudrick Capital Management LP, Konami Gaming Inc., Stone Concrete Inc., IDEA Boardwalk LLC, and a group of tenants represented by the law firm Porzio, Bromberg & Newman PC. Mudrick, Konami and Stone Concrete expressed similar concerns that the final order would prime their liens for the benefit of lenders without giving them "adequate protection." Mudrick has "first priority" liens in $70 million of proceeds, which may be realized by Revel AC under the State Economic Redevelopment and Growth Incentive Grant Agreement. Meanwhile, IDEA Boardwalk LLC and the tenants won't drop their objections unless the final order is revised to clarify that "superpriority" claims and liens provided to lenders do not attach to their possessory leasehold interests as well as charges being held in trust by Revel AC. IDEA Boardwalk's counsel can be reached at: Barry Roy, Esq. Jeffrey Cooper, Esq. RABINOWITZ, LUBETKIN & TULLY LLC 293 Eisenhower Parkway, Suite 100 Livingston, New Jersey 07039 Phone: (973) 597-9100 E-mail: broy@rltlawfirm.com jcooper@rltlawfirm.com Konami Gaming's counsel can be reached at:: Joseph Garemore, Esq. BROWN & CONNERY LLP 360 Haddon Avenue Westmont, NJ 08108 Phone: (856) 854-8900 E-mail: jgaremore@brownconnery.com Mudrick Capital's counsel can be reached at: Jennifer Del Medico, Esq. George R. Howard, Esq. JONES DAY 222 East 41st Street New York, New York 10017 Phone: (212) 326-3939 Fax: (212) 755-7306 E-mail: jdelmedico@jonesday.com grhoward@jonesday.com Stone Concrete's counsel can be reached at: David Kasen, Esq. KASEN & KASEN 1874 E. Marlton Pike, Suite 3 Cherry Hill, NJ 08003 Phone (856) 424-4144 Fax (856) 424-7565 E-mail: dkasen@kasenlaw.com The tenants' counsel can be reached at: Warren Martin Jr., Esq. Robert Schechter, Esq. Rachel Segall, Esq. PORZIO, BROMBERG & NEWMAN PC 100 Southgate Parkway P.O. Box 1997 Morristown, New Jersey 07962 Phone: (973) 538-4006 Fax: (973) 538-5146 E-mail: wjmartin@pbnlaw.com rmschechter@pbnlaw.com rasegall@pbnlaw.com About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J., Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13- 16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. RICEBRAN TECHNOLOGIES: Posts $15.7-Mil. Net Loss in Second Quarter ------------------------------------------------------------------ RiceBran Technologies filed its quarterly report on Form 10-Q, disclosing a net loss of $15.7 million on $11.34 million of revenues for the three months ended June 30, 2014, compared with a net loss of $2.51 million on $9.39 million of revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $54.31 million in total assets, $32.13 million in total liabilities, and total stockholders' equity of $16.58 million. A copy of the Form 10-Q is available at: http://is.gd/3k8ZsN RiceBran Technologies is a human food ingredient, nutritional supplement and animal nutrition company focused on processing and marketing products derived from raw rice bran (RRB). The Company is headquartered in Scottsdale, Arizona. RONALD W. DEMASI: Court Rules on Motion to Substitute Plaintiff --------------------------------------------------------------- Ravi Kondapalli sued debtor Ronald DeMasi to have $205,714.47 in judgment debts DeMasi allegedly owes to Gulf Coast Endoscopy Center of Venice, LLC and Anesthesia Associates of Southwest Florida, LLC determined to be nondischargeable under Bankruptcy Code Sec. 523(a)(2). GCEC and Anesthesia Associates had apparently assigned their Sec.523(a)(2) claim to Kondapalli, a member of both entities. The Court ruled that Kondapalli lacked standing to bring a Sec. 523(a)(2) claim on behalf of GCEC and Anesthesia Associates since fraud claims are nonassignable under Florida law. The Court must now decide whether GCEC and Anesthesia Associates can substitute in as the proper plaintiffs after the deadline for bringing a dischargeability action has expired. In an Aug. 18, 2014 Memorandum Opinion available at http://is.gd/1Ws6u5from Leagle.com, Bankruptcy Judge Michael G. Williamson held that under Federal Rule of Civil Procedure 17, substitution should be allowed where the failure to name the proper plaintiff in the original complaint was the result of an understandable mistake. "Here, there is no evidence that the assignment by GCEC and Anesthesia Associates was made in bad faith or in an effort to deceive DeMasi. The Court can only conclude that Kondapalli originally sued in his own name because he was unaware that fraud claims are nonassignable under Florida law. Because the failure to name GCEC and Anesthesia Associates was an understandable mistake, the Court concludes that those entities can substitute in as the proper parties, and their substitution will relate back to the original filing of the dischargeability complaint," the judge said. Kondapalli and DeMasi were members of three limited liability companies: GCEC, Anesthesia Associates, and Gulf Coast Digestive Health, LLC. GCEC was formed in 1999 to construct and operate a surgical center, and Anesthesia Associates was formed two years later to provide anesthesia services at the surgical center. Gulf Coast Digestive was a new medical practice Kondapalli and DeMasi (and others) created in 2005. All three entities contracted with Surgical Synergies, Inc. ("SSI"), which was in the business of providing billing and collection services to ambulatory surgical centers. The case is, Ravi Kondapalli, et al., Plaintiffs, v. Ronald W. DeMasi, M.D., Defendant, Adv. Proc. No. 8:13-ap-00890-MGW (Bankr. M.D. Fla.). Counsel for Ravi Kondapalli are: Stuart J. Levine, Esq. Heather A. DeGrave, Esq. WALTERS, LEVINE, KLINGENSMITH & THOMISON 1819 Main Street Suite 1110 Sarasota, FL 34236 E-mail: slevine@walterslevine.com hdegrave@walterslevine.com - and - Zala L. Forizs, Esq. McINTYRE THANASIDES BRINGGOLD ELLIOTT GRIMALDI & GUITO, P.A. 501 East Kennedy Boulevard, Suite 1900 Tampa, FL 33602 Tel: 813-899-6059 E-mail: zala@mcintyrefirm.com Counsel for Ronald W. DeMasi are: David S. Jennis, Esq. Kathleen L. DiSanto, Esq. JENNIS & BOWEN, P.L. 400 North Ashley Drive, Suite 2540 Tampa, FL 33602 Tel: 813-229-1700 Fax: 813-229-1707 Ronald W. DeMasi and Susan J. DeMasi filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 13-08406) on June 26, 2013. SALLY BEAUTY: New $1BB Share Repurchase No Impact on Moody's CFR ---------------------------------------------------------------- Moody's Investors Service stated that Sally Beauty Holdings, Inc.'s, parent company of Sally Holdings LLC ("Sally"), new $1 billion share repurchase authorization would have no immediate impact on either the Ba2 Corporate Family Rating or the stable outlook. Sally Holdings LLC, based in Denton, Texas, is an international retailer and distributor of beauty supplies. Its two subsidiaries, Sally Beauty Supply and Beauty Systems Group, sell and distribute beauty products to individual retail consumers and salon professionals. Products are distributed through a network of over 4,700 stores in 13 countries. Revenue exceeded $3.7 billion for the latest twelve months ended June 30, 2014. The principal methodology used in this rating was the Global Retail Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. SALUBRIOUS PHARMACEUTICAL: Section 341(a) Meeting Set on Sept. 16 ----------------------------------------------------------------- A meeting of creditors in the bankruptcy case of Salubrious Pharmaceutical LLC will be held on Sept. 16, 2014, at 9:00 a.m. at RM 105, 21051 Warner Center Lane, Woodland Hills, Calif. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Salubrious Pharmaceutical filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-13835) in San Fernando Valley, California, on Aug. 15, 2014. George H. Nelson, signed the petition as manager/member. 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. The Woodland Hills, California-based company estimated $50 million to $100 million in assets and less than $1 million in debt. SAMARITAN ALLIANCE: Entitled to $340,397 in Medicaid Underpayment ----------------------------------------------------------------- Bankruptcy Judge Joan A. Lloyd in Kentucky issued a "Memorandum- Opinion and Proposed Findings of Facts and Conclusions of Law" dated August 18, 2014, recommending that the District Court for the Eastern District of Kentucky grant Samaritan Alliance LLC relief on its claims of Medicaid underpayment in the amount of $340,397.98. Samaritan Alliance, which operated the Samaritan Hospital in Fayette County, Kentucky, and the Commonwealth of Kentucky Cabinet for Health and Family Services, the state agency charged with implementing the Federal Medicaid Program in Kentucky, are embroiled in litigation over allegations that the Cabinet misapplied the state regulation governing reimbursements for certain outpatient services, thus substantially underpaying Medicaid reimbursements due to Samaritan. A copy of the Court's August 18 decision is available at http://is.gd/aw1yiGfrom Leagle.com. The case is, SAMARITAN ALLIANCE, LLC d/b/a SAMARITAN HOSPITAL, PLAINTIFF v. COMMONWEALTH OF KENTUCKY, CABINET FOR HEALTH AND FAMILY SERVICES, et al., DEFENDANTS, Adv. Proc. No. 12-5009 (Bankr. E.D. Ky.). Lexington, Kentucky-based Samaritan Alliance, L.L.C., dba Samaritan Hospital and fdba James Noble Rural Health Care Clinic -- http://www.samaritanhospital.com/-- provided a range of health and wellness services. Samaritan and other affiliates filed for Chapter 11 bankruptcy protection (Bankr. E.D Ky. Case No. 07- 50735) on April 16, 2007. The debtor-affiliates are Associated Physicians Services of Lexington, L.L.C.; Associated Healthcare Systems of Lexington, L.L.C.; Integrated Health Plus, L.L.C. and Kentucky Internal Medicine Group, P.L.L.C. Judge William S. Howard was first assigned to the Chapter 11 case. W. Thomas Bunch, II, Esq., and Thomas Bunch, Sr., Esq., at Bunch & Brock, Attorneys-at-Law, served as counsel to the Debtors. Samaritan said total assets are $21,054,795 and total liabilities are $25,645,512 in its petition. SEARS HOLDINGS: Widens Net Loss to $573 Million in 2nd Quarter -------------------------------------------------------------- Sears Holdings Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common shareholders of $573 million on $8.01 billion of revenues for the 13 weeks ended Aug. 2, 2014, compared to a net loss attributable to shareholders of $194 million on $8.87 billion of revenues for the 13 weeks period ended Aug. 3, 2013. For the 26 weeks ended Aug. 2, 2014, the Company reported a net loss attributable to shareholders of $975 million on $15.89 billion of revenues compared to a net loss attributable to shareholders of $473 million on $17.32 billion of revenues for the 26 weeks ended Aug. 3, 2013. As of Aug. 2, 2014, Sears Holdings had $16.43 billion in total assets, $15.51 billion in total liabilities and $919 million in total equity. Cash and cash equivalents and Aug. 2, 2014, were $829 million. "We have continued to show progress in our transformation, as demonstrated by our year-over-year increase in online and multi- channel sales, and with our member sales now representing 73% of eligible sales," said Edward S. Lampert, Sears Holdings' Chairman and chief executive officer. "However, our second quarter earnings are unacceptable and we are taking steps to address our performance on several levels. This includes reducing costs as we evolve our business model, investing in our Shop Your Way and Integrated Retail customer initiatives, rationalizing our physical footprint and improving pricing and promotions. As we move through the transformation, our new programs are becoming more prominent both in how we run the company and in how we serve our members, and we are pleased with how our members are responding." Mr. Lampert continued, "As we progress with our transformation by investing in new programs and platforms, we continue to bear the costs of two promotional models, which adversely impacts margins. There is more work to be done to get results where we expect them to be. Like any transformation, we must first overcome the burden of the initial costs before we can enjoy the benefits. We have a large and valuable portfolio of assets that provide us with the flexibility we need to fund our transformation as we proactively work to return Sears Holdings to profitable growth and deliver shareholder value." A full-text copy of the Form 10-Q is available for free at: http://is.gd/i6XElI About Sears Sears Holdings Corporation (NASDAQ: SHLD) -- http://www.searsholdings.com/-- is an integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve members. Sears Holdings is home to Shop Your Waytm, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners across categories important to them. The company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with more than 2,000 full- line and specialty retail stores in the United States and Canada. Kmart Corporation and 37 of its U.S. subsidiaries filed voluntary Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 02-02474) on Jan. 22, 2002. Kmart emerged from chapter 11 protection on May 6, 2003, pursuant to the terms of an Amended Joint Plan of Reorganization. Skadden, Arps, Slate, Meagher & Flom, LLP, represented Kmart in its restructuring efforts. Its balance sheet showed $16,287,000,000 in assets and $10,348,000,000 in debts when it sought chapter 11 protection. Kmart bought Sears, Roebuck & Co., for $11 billion to create the third-largest U.S. retailer, behind Wal-Mart and Target, and generate $55 billion in annual revenues. Kmart completed its merger with Sears on March 24, 2005. Sears Holdings reported a net loss of $1.36 billion in 2013, a net loss of $930 million in 2012 and a net loss of $3.14 billion in 2011. * * * Moody's Investors Service in January 2014 downgraded Sears Holdings Corporate Family Rating to Caa1 from B3. The rating outlook is stable. The downgrade reflects the accelerating negative performance of Sears' domestic business with comparable sales falling 7.4% for the quarter to date ending January 6th, 2014 compared to the prior year. The company now expects domestic Adjusted EBITDA to decline to a range of ($80 million) to $20 million for the fourth fiscal quarter, compared with $365 million in the year prior period. For the full year, Sears expects domestic Adjusted EBITDA loss between $(308) million and $(408) million, as compared to $557 million last year. Moody's expects full year cash burn (after capital spending, interest and pension funding) to be around $1.2 billion in 2013 and we expect Sears' cash burn to remain well above $1 billion in 2014. "Operating performance for fiscal 2013 is meaningfully weaker than our previous expectations, and we expect negative trends in performance to persist into 2014" said Moody's Vice President Scott Tuhy. He added "While Sears noted improved engagement metrics for its "Shop Your Way" Rewards program, Moody's remains uncertain when these improved engagement metrics will lead to stabilization of operating performance." As reported by the TCR on March 26, 2014, Standard & Poor's Ratings Services affirmed its ratings on the Hoffman Estate, Ill.- based Sears Holdings Corp., including the 'CCC+' corporate credit rating. SID #521, DOUGLAS COUNTY: Chapter 9 Case Summary & Top Creditors ---------------------------------------------------------------- Debtor: Sanitary and Improvement District #521 Douglas County, Nebraska 10250 Regency Circle, Suite 300 Omaha, NE 68114 Bankruptcy Case No.: 14-81592 Chapter 9 Petition Date: August 21, 2014 Court: United States Bankruptcy Court District of Nebraska (Omaha Office) Debtor's Counsel: Mark James LaPuzza, Esq. PANSING HOGAN ERNST & BACHMAN, LLP 10250 Regency Circle, Suite 300 Omaha, NE 68114 Tel: (402) 397-5500 Fax: (402) 397-4853 Email: mjlbr@pheblaw.com Estimated Assets: $1 million to $10 million Estimated Debts: $10 million to $50 million The petition was signed by Rick North, Chairman. Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Elk Ridge Office, LLC $1,243,283 c/o Rick North 11506 Nicholas ST #100 Omaha, NE 68154 Daniel Hirschfeld $1,125,835 3606 4 th Avenue Kearney, NE 68845 Plains LTD $872,856 2404 W 48 th ST Place Kearney, NE 68845 Allan G Lozier and $775,722 Dianne S Lozier, Trustees of the Allan G Lozier Revocable Trust ATTN: Barb Molck 6336 Pershing Dr Omaha, NE 68110 Joy A Sommerhalder, Trustee $661,307 Joy A Sommerhalder Trust 9501 Firethorn Lane Lincoln, NE 68520 Delphin L Sommerhalder, Trustee $534,281 Delphin L Sommerhalder Trust 9501 Firethorn Lane Lincoln, NE 68520 National Financial Services LLC $418,832 FFC: Elkhorn Valley Bank ACCT AK7-463024 Newport Office Center III 499 Washington BLVD, 5th Floor Jersey City, NJ 07310 Steve Saylan & Jacki Saylan $406,001 9738 Ascot Dr Omaha, NE 68114-3846 James C Cripe & Sharon M Cripe $280,046 10077 Fieldcrest Dr Omaha, NE 68114 Rodney Vandeberg $280,001 2202 Chase St Falls City, NE 68355 Booge Properties $241,142 Wells Fargo Bank NE $238,001 Lamp Rynearson & Assoc Inc $175,271 Steven Nathan & Donna Nathan $168,000 DA Davidson & Co as cust for $164,134 Christopher R Held SEP IRA First Westroads Bank $140,000 Warrant Account DA Davidson & Co as cust for $129,317 Donald Gary Kathol RLVR IRA Richard B Peterson, Trustee of the $125,296 Richard B Peterson REV LIV Trust Hubert H Friedman, Trustee Friedman Inter Vivos $112,000 Howard J Kaslow $98,000 SNOWDEN PROPERTIES: Case Summary & 3 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Snowden Properties, LLC 14-00912 P.O. Box 1983 Martinsburg, WV 25402 Burke Street Properties, LLC 14-00913 P.O. Box 1983 Martinsburg, WV 25402 Chapter 11 Petition Date: August 21, 2014 Court: United States Bankruptcy Court Northern District of West Virginia (Martinsburg) Judge: Hon. Patrick M. Flatley Debtors' Counsel: Mary Binns-Davis, Esq. MCNEER HIGHLAND MCMUNN AND VARNER, L.C. P.O. Box 2509 Martinsburg, WV 25402 Tel: 304-264-4621 Fax: 304-264-8623 Email: mbdavis@wvlawyers.com Estimated Estimated Assets Liabilities ---------- ----------- Snowden Properties, LLC $1MM-$10MM $1MM-$10MM Burke Street Properties $1MM-$10MM $500K-$1MM The petitions were signed by Stephen Snowden, member. A list of Snowden Properties, LLC 's three largest unsecured creditors is available for free at: http://bankrupt.com/misc/wvnb14-00912.pdf A list of Burke Street's three largest unsecured creditors is available for free at http://bankrupt.com/misc/wvnb14-00913.pdf SUSQUEHANNA BANK: Moody's Hikes Preferred Shelf rating to (P)Ba2 ---------------------------------------------------------------- Moody's Investors Service has upgraded the long-term ratings of Susquehanna Bancshares, Inc. and its subsidiaries, including its bank subsidiary, Susquehanna Bank. The holding company's senior debt rating was upgraded to Baa2 from Baa3. The bank's standalone bank financial strength rating was affirmed at C-. Its standalone Baseline Credit Assessment was changed to baa1 from baa2, and its long-term deposit rating was upgraded to Baa1 from Baa2. The bank's short-term rating was affirmed at Prime-2. Following the rating action, the outlook on all ratings is stable. This rating action concludes Moody's review for upgrade that began on 25 June 2014. Rating Actions: Issuer: Susquehanna Bancshares, Inc. Preferred Shelf, Upgraded to (P)Ba1 from (P)Ba2 Preferred Shelf Non-Cumulative, Upgraded to (P)Ba2 from (P)Ba3 Subordinate Shelf, Upgraded to (P)Baa3 from (P)Ba1 Senior Unsecured Shelf, Upgraded to (P)Baa2 from (P)Baa3 Senior Unsecured Regular Bond/Debenture, Upgraded to Baa2 from Baa3 Outlook, Changed To Stable From Rating Under Review Issuer: Susquehanna Bank Bank Financial Strength Rating, Affirmed C- Adjusted Baseline Credit Assessment, Changed to baa1 from baa2 Baseline Credit Assessment, Changed to baa1 from baa2 Issuer Rating, Upgraded to Baa1 from Baa2 Long Term OSO Rating, Upgraded to Baa1 from Baa2 Long Term Deposit Rating, Upgraded to Baa1 from Baa2 Short Term OSO Rating, Affirmed P-2 Short Term Deposit Rating, Affirmed P-2 Outlook, Changed To Stable From Rating Under Review Issuer: Susquehanna Capital I Pref. Stock Preferred Stock, Upgraded to Ba1 (hyb) from Ba2 (hyb) Outlook, Changed To Stable From Rating Under Review Issuer: Susquehanna Capital II Pref. Stock Preferred Stock, Upgraded to Ba1 (hyb) from Ba2 (hyb) Outlook, Changed To Stable From Rating Under Review Ratings Rationale The upgrade reflects Susquehanna's improved risk profile, specifically its reduced commercial real estate (CRE) concentration, strong risk discipline, and its solid credit performance. Regarding Susquehanna's risk profile, Moody's said management has reduced the bank's CRE concentration noticeably. At its peak at 30 September 2009, the bank's CRE exposure was a high 4.5 times tangible common equity (TCE), with construction and land development representing 1.9 times TCE. At 30 June 2014, Susquehanna's CRE and construction and land development concentrations were down to 2.3 times and 0.7 times TCE, respectively. Moody's said that although this exposure may again rise in the future, the rating agency expects the exposure to be far less than its historical highs. Regarding Susquehanna's strong credit discipline, Moody's said the bank has recently taken a more conservative approach to loan growth, particularly in light of deteriorating industry underwriting trends. This is in contrast with many other regional US banks. Susquehanna's total loans grew less than 4% for the year ended 30 June 2014. Moody's added that Susquehanna's exposure to the national syndicated loan markets is relatively modest, which is credit positive because banks that participate in these markets often have limited influence in setting underwriting standards or determining the outcome of a workout of a problematic credit. Moody's added that Susquehanna's credit discipline is reflected in its good performance during the financial crisis and its current strong asset quality metrics. During the most recent downturn, the bank's losses in the CRE portfolio peaked at only 3.3% in Q4 2009, which was comparatively low. At 30 June 2014, the bank's nonperforming assets (NPAs including nonaccruals, 90+ days past due, OREO, and accruing troubled debt restructurings) were 1.2% of loans plus OREO or 10.1% of TCE plus reserves, which are comparatively low ratios. Notwithstanding the upgrade, Moody's noted that Susquehanna still faces earnings pressure in the current protracted low interest rate environment. In addition, the bank's capital and core funding profile are modestly weaker than similarly-rated peer medians. These factors act as constraints on further upward rating migration. TAMM OIL: Incurs $35,000 Net Loss for June 30 Quarter ----------------------------------------------------- Tamm Oil and Gas Corp. filed its quarterly report on Form 10-Q disclosing a net loss of $35,500 for the three months ended June 30, 2014, compared with a net loss of $15,126 for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $2.44 million in total assets, $499,303 in total liabilities and total stockholders' equity of $1.94 million. As shown in the accompanying unaudited condensed consolidated financial statements for the three months ended June 30, 2014 and 2013, the Company has incurred losses of $35,500 and $15,126, respectively. In addition, as of June 30, 2014, the Company had a working capital deficit of $498,541, and no revenue generating operations. These factors, among others, indicate that the Company may be unable to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/XuSYRH Tamm Oil and Gas Corp., a petroleum exploration company, identifies, acquires, and develops oil sands prospects in Canada. It leases 21 sections of oil sands leases in the Peace River region of Northern Alberta. The company was formerly known as Hola Communications, Inc. and changed its name to Tamm Oil and Gas Corp. in November 2007. Tamm Oil and Gas Corp. was founded in 2005 and is based in Steinhausen, Switzerland. TERRA TECH: Reports $4.55-Mil. Net Loss in Q2 Ended June 30 ----------------------------------------------------------- Terra Tech Corp. filed its quarterly report on Form 10-Q, disclosing a net loss of $4.55 million on $3.71 million of total revenues for the three months ended June 30, 2014, compared with a net loss of $1.08 million on $665,365 of total revenues for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $8.87 million in total assets, $7.15 million in total liabilities and total stockholders' equity of $1.72 million. The Company has incurred net losses for the three months ended June 30, 2014 and has accumulated a deficit of approximately $24.3 million at June 30, 2014. The Company has not been able to generate sufficient cash from operating activities to fund its ongoing operations. There is no guarantee that the Company will be able to generate enough revenue and/or raise capital to support its operations. These factors raise substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/vHJrpi Terra Tech Corp., through Grow Technology Ltd., is engaged in the integration of best of breed hydroponic equipment with proprietary technology to create sustainable solutions for the cultivation of indoor agriculture. Terra Tech is based in Irvine, California. TOUCHPOINT METRICS: Has Profit in 1st Half Following 2013 Loss -------------------------------------------------------------- Touchpoint Metrics, Inc., filed its quarterly report on Form 10-Q disclosing a net income of $126,694 on $612,905 of total revenue for the three months ended June 30, 2014, compared with a net loss of $139,851 on $273,325 of total revenue for the same period last year. The Company's balance sheet at June 30, 2014, showed $1.17 million in total assets, $375,818 in total liabilities and total stockholders' equity of $793,414. For the six months ended June 30, 2014, the Company had net income of $12,271. In addition, the Company had a net loss of $715,656 for the year ended Dec. 31, 2013. These circumstances result in substantial doubt as to the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon the Company's ability to continue to generate sufficient revenues to operate profitably, or raise additional capital through debt financing and/or through sales of common stock, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/ZF421d San Francisco, Calif.-based Touchpoint Metrics, Inc., is engaged in the business of developing and delivering technology-enabled products and services that improve customer experience management capabilities for corporations. TOYS R US: Bondholders Form Group to Seek Covenant Relief --------------------------------------------------------- Lisa Allen and Richard Collings, writing for The Deal, reported that certain bondholders of Toys "R" Us Inc. have formed a group to seek covenant modifications with a goal of making refinancing for the retailer easier. According to The Deal, citing a bondholder, one path toward refinancing -- and a hoped-for turnaround -- would be to pursue a sale-leaseback deal for its domestically owned properties. The Deal, further citing the investor, said though the company's earliest debt maturities aren't until 2016, given the favorable state of credit markets and the uncertainty surrounding the company's operations and the retail industry in general, Toys "R" Us should kick a refinancing effort into gear in the next month or so. * * * The Troubled Company Reporter, on July 1, 2014, reported that Fitch Ratings has downgraded the issue ratings on Toys 'R' Us, Inc.'s (Toys, HoldCo) $450 million 10.375% senior unsecured notes due August 2017 and $400 million 7.375% senior unsecured notes due October 2018 to 'CCC-/RR5' from 'CCC/RR4'. Fitch has also affirmed the Issuer Default Ratings (IDRs) on Toys 'R' Us, Inc. and its various domestic subsidiaries at 'CCC'. TRANS ENERGY: Presented at Enercom's Oil & Gas Conference --------------------------------------------------------- Trans Energy, Inc.'s Chairman Steve Lucado and President John Corp presented on Wednesday, Aug. 20, 2014, at EnerCom's The Oil & Gas Conference(R) 19 being held at the Westin Denver Hotel located in Denver, Colorado, the Company disclosed in a document filed with the U.S. Securities and Exchange Commission. The presentation focused on the Company's development efforts in the Marcellus Shale, specifically in Marion, Marshall, and Wetzel counties in Northern West Virginia. The presentation covered these topics: * General information about Trans Energy, Inc. * Discussion of drilling results * Production history and future drilling plans * Wet gas economics * Debt refinancing * Other information About Trans Energy St. Mary's, West Virginia-based Trans Energy, Inc. (OTC BB: TENG) -- http://www.transenergyinc.com/-- is an independent energy company engaged in the acquisition, exploration, development, exploitation and production of oil and natural gas. Its operations are presently focused in the State of West Virginia. Trans Energy reported a net loss of $17.7 million in 2013 following a net loss of $21.2 million in 2012. The Company's balance sheet at March 31, 2014, showed $94.21 million in total assets, $103.56 million in total liabilities and a $9.34 million total stockholders' deficit. TUNICA-BILOXI GAMING: S&P Cuts ICR to 'CCC' on Weaker Performance ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Marksville, La.-based gaming operator Tunica-Biloxi Gaming Authority (TBGA), including our issuer credit rating, to 'CCC' from 'B-'. 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 a 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 rating on the unsecured notes is at the same level as the issuer credit rating, reflecting the senior position of the debt in the capital structure. The downgrade reflects significant underperformance in the first six months of 2014 relative to S&P's previous expectations and its view that TBGA does not currently have a credible plan to address its late-2015 notes maturity. S&P believes recent operating trends increase the likelihood that TBGA may not be able to successfully refinance its notes prior to maturity and may instead pursue a restructuring transaction. Through June 2014, revenue and EBITDA declined in the high-single-digit area and mid-20% area, respectively, compared with S&P's previous forecast for low- single-digit revenue declines and low- to mid-single-digit EBITDA declines for the full-year 2014. Increased competition within TBGA's markets since late-2012, driven by the opening of L'Auberge Casino Hotel in Baton Rouge and the Jena Band of Choctaw Indians' Class II casino, has lowered visitation from customers in Baton Rouge and Alexandria, two primary feeder markets for the casino (the Paragon Casino Resort). Under S&P's updated forecast for EBITDA to decline in the 20% area, S&P estimates that EBITDA coverage of fixed charges (defined as interest expense, S&P's expectation for maintenance capital expenditures, and minimum distributions to the Tunica-Biloxi Tribe of Louisiana (the Tribe)) will be under 1x through 2014, with minimal excess cash balances to cover the shortfall. In 2015, under S&P's base-case forecast, it estimates that the Tribe will need to reduce distributions significantly in order to meet full-year fixed charges. S&P has limited transparency into the Tribe's financial policy and financial position, particularly concerning the level of flexibility within its budget and its ability to reduce distributions below current levels. While the Tribe has demonstrated a willingness and ability to reduce distributions over time (distributions have declined in step with declines in free cash flow over the past few years), at this point, S&P is unable to assess the viability of a further and sustained reduction in distributions over the next year. S&P's assessment of TBGA's business risk profile as "vulnerable" reflects its narrow business position as an operator of a single casino in a highly competitive operating environment that requires a high level of promotional spending. TBGA's limited ability to adjust costs in a down cycle, resulting in a high degree of EBITDA volatility also factors into the assessment. In addition, the Tribe has stated that its plans to let its management contract with Exceptional Gaming & Entertainment LLC expire at the end of Aug. 2014, at which time the Tribe will take over management of Paragon. The rating incorporates the potential for operating disruption during the management transition, particularly during a period where performance is already weak. UNITEK GLOBAL: Shares Now Trade on OTC Markets ---------------------------------------------- UniTek Global Services, Inc., confirmed its previous disclosure that trading in the Company's common stock on The NASDAQ Stock Market will be suspended effective with the open of business on Aug. 21, 2014, according to a press release filed with the U.S. Securities and Exchange Commission. The Company's common stock will be eligible to trade on the OTC Markets - OTC Pink Tier effective with the open of business on Aug. 21, 2014. The Company anticipates that its symbol, UNTK, will remain unchanged. For quotes or further information on OTC Markets and the OTC Pink Tier, visit http://www.otcmarkets.com/ About UniTek Global Services UniTek Global Services, Inc., based in Blue Bell, Pennsylvania, provides fulfillment and infrastructure services to media and telecommunication companies in the United States and Canada. UniTek Global reported a net loss of $52.07 million on $471.93 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $77.73 million on $437.59 million of revenues in 2012. The Company's balance sheet at Dec. 31, 2013, showed $270.54 million in total assets, $259.08 million in total liabilities and $11.45 million in total stockholders' equity. Bankruptcy Warning "An event of default under either of our credit facilities could result in, among other things, the acceleration and demand for payment of all the principal and interest due and the foreclosure on the collateral. As a result of such a default or action against collateral, we could be forced to enter into bankruptcy proceedings, which may result in a partial or complete loss of your investment," the Company said in the Annual Report for the year ended Dec. 31, 2013. * * * In the Oct. 17, 2013, edition of the TCR, Moody's Investors Service assigned a Caa2 Corporate Family Rating to UniTek Global Services, Inc. UniTek's Caa2 CFR reflects the company's high interest burden, delay in filing 2013 quarterly reports with the SEC, lower than anticipated future revenues from one of its main customers, and need to address internal control weaknesses over financial reporting as of December 31, 2012 as cited in the company's Form 10-K for the year ended Dec. 31, 2012. As reported by the TCR on Oct. 17, 2013, Standard & Poor's Ratings Services said it raised its corporate credit rating on Blue Bell, Pa.-based UniTek Global Services Inc. to 'B-' from 'CCC'. "The ratings upgrade to 'B-' reflects our belief that the company is no longer vulnerable and dependent on favorable developments to meet its financial commitments over the next few years," said Standard & Poor's credit analyst Michael Weinstein. UNIVERSITY GENERAL: Delays 10-Q Over Cost Containment Efforts ------------------------------------------------------------- University General Health System, 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. According to the Company: "Our recently announced cost containment and restructuring efforts have contributed to additional delays in our ability to complete the Form 10-Q for the quarter ended June 30, 2014 by the prescribed due date. We are diligently working on completing the Form 10-Q and anticipate its filing as soon as practicable." The Company did not timely file its annual report on Form 10-K for the period ended Dec. 31, 2013. This report was filed on July 2, 2014. In addition, the Company has not filed its quarterly report on Form 10-Q for the periods ended March 31 and June 30, 2011. About University General University General Health System, Inc., located in Houston, Texas, is a diversified, integrated multi-specialty health care provider that delivers concierge physician- and patient-oriented services. UGHS currently operates one hospital and two ambulatory surgical centers in the Houston area. It also owns a revenue management company, a hospitality service provider and facility management company, three senior living facilities and manages six senior living facilities. University General reported a net loss attributable to common shareholders of $35.70 million on $163.98 million of total revenues for the year ended Dec. 31, 2013, as compared with a net loss attributable to common shareholders of $3.97 million on $113.22 million of total revenues for the year ended Dec. 31, 2012. As of Dec. 31, 2013, the Company had $183.26 million in total assets, $186.91 million in total liabilities, $2.97 million in series C convertible preferred stock, and a $6.61 million total deficit. Moss, Krusick & Associates, LLC, in Winter Park, 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 negative working capital and relative low levels of cash and cash equivalents. These conditions raise substantial doubt about its ability to continue as a going concern, the auditors said. USMART MOBILE: Incurs $282,000 Net Loss in Second Quarter --------------------------------------------------------- USmart Mobile Device Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $282,104 on $451,371 of net sales for the three months ended June 30, 2014, compared to a net loss of $648,107 on $25 million of net sales for the same period a year ago. The Company also reported a net loss of $574,679 on $1.01 million of net sales for the six months ended June 30, 2014, compared to net income of $240,227 on $39.46 million of net sales for the same period in 2013. As of June 30, 2014, the Company had total net current liabilities of $13,082,384. "We will continue to seek additional sources of available financing on acceptable terms; however, there can be no assurance that we will be able to obtain the necessary additional capital on a timely basis or on acceptable terms, if at all. In addition, if the results are negatively impacted and delayed as a result of political and economic factors beyond management's control, our capital requirements may increase," the Company said in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/XFaeIk About USmart Mobile Del.-based USmart Mobile, previously known as ACL Semiconductors Inc., is currently engaged in the production, manufacturing and distribution of smartphones, electronic products and components in Hong Kong Special Administrative Region and the People's Republic of China through its operating subsidiaries. USmart Mobile reported a net loss of $13.8 million on $72.2 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $4.86 million on $161 million of net sales for the year ended Dec. 31, 2012. Albert Wong & Co. LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. These factors raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. VALITAS HEALTH: Moody's Lowers CFR to Caa1, Sees Covenant Waivers ----------------------------------------------------------------- Moody's Investors Service downgraded Valitas Health Services, Inc.'s Corporate Family Rating to Caa1 from B3, its Probability of Default Rating to Caa1-PD from B3-PD, and its senior secured bank credit facility ratings to B3 from B2. The rating outlook remains negative. The rating action reflects the company's continued operating performance weakness and the further deterioration of credit metrics beyond Moody's previous expectations, attributable to recent contract losses, margin declines from competitive pricing pressure on renewed contracts, and delays in the realization of earnings from certain start-up contracts. The downgrade also reflects Moody's concerns related to the minimal cushion under the company's financial covenants, due to earnings volatility and approaching step-downs, and Moody's expectation that a waiver or an amendment will be required over the next twelve months. Ratings downgraded: Valitas Health Services, Inc. Corporate Family Rating to Caa1 from B3 Probability of Default Rating to Caa1-PD from B3-PD Senior secured revolving credit facility, to B3 (LGD 3) from B2 (LGD 3) Senior secured term loan B, to B3 (LGD 3) from B2 (LGD 3) The rating outlook is negative. Ratings Rationale Valitas' Caa1 Corporate Family Rating reflects the company's high financial leverage, operating headwinds due to recent contract losses, margin compression due to competitive pricing pressure on renewed contracts, and delays in the realization of earnings from certain start-up contracts. The credit profile is also constrained by risks associated with the company's considerable customer concentration, and liquidity concerns related to the company's modest cash flow and weak cushion under the company's credit facility financial maintenance covenants. Moody's expect the company to continue to face near-term earnings pressure following recent contract losses and certain underperforming state Department of Corrections ("DOC") contracts. The ratings are supported by Valitas' solid scale and market position as the largest provider of healthcare services to correctional facilities in a highly fragmented sector, and recent business wins which Moody's expect will provide earnings and cash flow improvement over the next 12 to 18 months. The negative rating outlook reflects Moody's expectation that credit metrics will remain constrained due to elevated costs and start-up delays, the challenging competitive environment, and a weak liquidity profile. In addition, Moody's believes that a waiver or amendment may need to be obtained over the next few quarters if the company fails to remain in compliance with financial covenants. The ratings could be upgraded if the company exhibits growth in EBITDA from new contract opportunities or repays debt such that adjusted debt to EBITDA approaches 6.0 times on a sustained basis, free cash flow to debt is sustained above 3%, and cushion under the company's credit facility financial covenants improves. The ratings could be downgraded if operating performance deteriorates further, or if it appears likely that the company will breach a covenant and cannot obtain a waiver. The ratings could also be downgraded if the company experiences a loss of key DOC contract resulting in further erosion of credit metrics. The principal methodology used in this rating was Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Brentwood, Tennessee, Valitas Health Services, Inc., ("Valitas") through its operating subsidiaries, Corizon, Inc. and Corizon Health, Inc., is a leading provider of contract healthcare services to correctional facilities owned or operated by state and local governments in United States. Valitas is majority owned by Beecken Petty O'Keefe & Company, a Chicago based private equity management firm. For the twelve months ended June 30, 2014, Valitas reported revenue of approximately $1.4 billion. VENOCO INC: S&P Puts 'B-' CCR on CreditWatch Negative ----------------------------------------------------- Standard & Poor's Ratings Services placed its 'B-' corporate credit ratings on Denver-based Venoco Inc. and parent company Denver Parent Corp. (DPC) on CreditWatch with negative implications. At the same time, S&P placed its 'CCC+' issue rating on Venoco's senior unsecured notes on CreditWatch with positive implications. The recovery rating on these notes is '5' indicating the likelihood of modest (10% to 30%) recovery in the event of default. The 'CCC' issue-level rating on DPC's notes remain unchanged. The recovery rating on these notes is '6' indicating the likelihood of negligible (0% to 10%) recovery in the event of default. "The negative CreditWatch placement of the Venoco and DPC corporate credit ratings follows Venoco's announcement that it has limited borrowing availability under its revolving credit facility and expects to be out of compliance with the debt to EBITDA leverage requirement for the facility as of Sept. 30, 2014," said Standard & Poor's credit analyst Ben Tsocanos. The company also announced that it has reached an agreement to sell its West Montalvo oil and gas producing properties for $200 million and use proceeds to repay borrowings under the revolver. S&P expects the sale to close by Oct. 15, 2014. S&P views the asset sale as necessary for improving liquidity to a sustainable level and avoiding acceleration under its debt agreements. The CreditWatch placement reflects uncertainty regarding the completion and timing of the sale and the likelihood that the company receives waivers for its covenants in the event that it is out of compliance on Sept. 30, 2014. The positive CreditWatch placement of the 'CCC+' issue-level rating on Venoco's senior unsecured notes reflect S&P's recovery criteria which states S&P will apply current hydrocarbon prices in the event an entity's corporate credit rating is lowered into the CCC category. The current robust crude oil price assumptions could potentially provide very high recoveries to the unsecured note holders in such a scenario. The 'CCC' issue-level rating on the DPC payment-in-kind (PIK) toggle notes remains unchanged. S&P's recovery rating for the PIK notes is '6' reflecting the potential for negligible (0% to 10%) recovery in a default scenario. S&P intends to resolve the CreditWatch placement near the closing date of the West Montalvo sale, which S&P expects by Oct. 15, 2014. If the sale does not occur, S&P believes there is a potential for downgrades of two notches of both Venoco and DPC based on S&P's view that the asset sale is necessary to improve liquidity to a sustainable level and to avoid acceleration under its debt agreements. There is also a potential that S&P could raise the issue rating on Venoco's senior unsecured notes by one notch, given that the application of current robust crude oil price assumptions could potentially provide very high recoveries to the unsecured noteholders. VERITEQ CORP: Incurs $5.5 Million Net Loss in Second Quarter ------------------------------------------------------------ Veriteq Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $5.55 million on $21,000 of sales for the three months ended June 30, 2014, compared to a net loss of $1.54 million on $0 of sales for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $933,000 on $95,000 of sales compared to a net loss of $2.85 million on $0 of sales for the same period during the prior year. As of June 30, 2014, the Company had $7.04 million in total assets, $14.16 million in total liabilities and a $7.12 million total stockholders' deficit. As of June 30, 2014, cash was $0.1 million compared to $13,000 at Dec. 31, 2013. "We are in the development stage, have incurred operating losses since our inception and have a working capital deficit. Our cash position is critically low, and payments critical to our survival are not being made in the ordinary course. Failure to raise capital in the coming days to fund our operations and generate positive cash flow to fund such operations will have a material adverse effect on our financial condition. These factors raise substantial doubt about our ability to continue as a going concern," the Company stated in the Form 10-Q. A full-text copy of the Form 10-Q is available for free at: http://is.gd/T65KIP Amends Q1 Form 10-Q The Company has amended its quarterly report on Form 10-Q for the three-months ended March 31, 2014, filed with the SEC on May 14, 2014, for the purpose of correcting information in Part I, Items 1, 2 and 4 and Part II, Item 6. In connection with the preparation of the Company's quarterly report on Form 10-Q for the period ended June 30, 2014, the Company identified an error relating to the accounting for the financing transaction. On Nov. 13, 2013, the Company entered into a financing transaction which included notes in the principal amount of $1,816,667. The notes are convertible into shares of the Company's common stock at an initial exercise price of $0.75 per share. The notes provided for the initial conversion price to be reset to lower amounts in the event the Company issues its common stock or is deemed to have issued its common stock at a price below the conversion price in effect at that time. This provision results in what is referred to as an embedded derivative and should have been bifurcated and a liability recorded at fair value upon the issuance of the notes and on Dec. 31, 2013, and on March 31, 2014, in the Original Report. This oversight resulted in an understatement of the derivative liability of $2.1 million and $3.1 million at March 31, 2014, and Dec. 31, 2013, respectively. Accordingly, the Company restated its previously filed financial statements to reflect the fair value of this embedded derivative liability as a non-cash current liability on the Company's Unaudited Condensed Consolidated Balance Sheets at March 31, 2014, and Dec. 31, 2013, and to reflect the change in the fair value from Dec. 31, 2013, to March 31, 2014 and from Dec. 14, 2011, to March 31, 2014, in the Company's Unaudited Condensed Consolidated Statement of Operations, Unaudited Condensed Consolidated Statement of Comprehensive Losses, Unaudited Condensed Consolidated Statement of Changes in Stockholders' Deficit and Unaudited Condensed Consolidated Statement of Cash Flows. The correction of the error did not impact any assets. As previously reported, the Company had total liabilities of $15.19 million at March 31, 2014. As restated the Company had $17.24 million of total liabilities at March 31, 2014. The Company previously reported total stockholders' deficit of $7.21 million at March 31, 2014. As restated, total stockholders' deficit at March 31, 2014, was $9.26 million. As previously reported, net income for the three months ended March 31, 2014, was $3.55 million. As a result of the restatement, the Company had net income of $4.62 million at March 31, 2014. A full-text copy of the amended Form 10-Q is available at: http://is.gd/Dv8eG0 About VeriTeQ VeriTeQ Corporation (formerly known as Digital Angel Corporation) -- http://www.veriteqcorp.com/-- develops innovative, proprietary RFID technologies for implantable medical device identification, and dosimeter technologies for use in radiation therapy treatment. VeriTeQ offers the world's first FDA cleared RFID microchip technology that can be used to identify implantable medical devices, in vivo, on demand, at the point of care. VeriTeQ's dosimeters provide patient safety mechanisms while measuring and recording the dose of radiation delivered to a patient in real time. Veriteq Corporation reported a net loss of $15.07 million on $18,000 of sales for the year ended Dec. 31, 2013, as compared with a net loss of $1.60 million on $0 of sales for the year ended Dec. 31, 2012. As of March 31, 2014, the Company had $7.97 million in total assets, $15.19 million in total liabilities and a $7.21 million total stockholders' deficit. EisnerAmper LLP, in New York, New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred recurring net losses, and at Dec. 31, 2013, had negative working capital and a stockholders' deficit. These events and conditions raise substantial doubt about the Company's ability to continue as a going concern. VERITY CORP: Incurs $124,000 Net Loss in June 30 Quarter -------------------------------------------------------- Verity Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $124,291 on $1.74 million of total revenues for the three months ended June 30, 2014, compared to a net loss attributable to the Company of $477,522 on $1.42 million of total revenues for the same period in 2013. The Company also reported a net loss attributable to the Company of $803,399 on $2.44 million of total revenues for the nine months ended June 30, 2014, compared to a net loss attributable to the Company of $7.02 million on $2.10 million of total revenues for the ame period last year. As of June 30, 2014, the Company had $2.24 million in total assets, $5.83 million in total liabilities and a $3.59 million total stockholders' deficit. Cash flows used by operating activities were $492,622 for the nine months ended June 30, 2014, as compared to $1,502,718 for the nine months ended June 30, 2014. Negative cash flow is a direct result of operating expenses exceeding revenues generated during the nine months ended June 30, 2014, and 2013. "As of June 30, 2014, Verity did not have and continues to not have sufficient cash on hand to pay present obligations as they become due. In addition, there is no assurance that we will be able to raise additional capital on acceptable terms, if at all, to meet our current obligations over the next 12 months," the Company stated in the Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/cTtMFT About Verity Sioux Falls, South Dakota-based Verity Corp., formerly AquaLiv Technologies, Inc., is the parent of Verity Farms II, Inc., Aistiva Corporation (formerly AquaLiv, Inc.). Verity Farms II is dedicated to providing consumers with safe, high-quality and nutritious food sources through sustainable crop and livestock production. Aistiva's technology alters the behavior of organisms, including plants and humans, without chemical interaction. Aistiva's platform technology influences biological processes naturally and without chemical interaction. To date, Aistiva has released products in the industries of water treatment, skincare, and agriculture. Verity Corp. reported a net loss attributable to the Company of $7.59 million for the year ended Sept. 30, 2013, as compared with a net loss attributable to the Company of $623,079 during the prior fiscal year. Bongiovanni & Associates, CPA's, in Cornelius, North Carolina, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2013. The independent auditors noted that the Company has suffered recurring losses, has negative working capital, and has yet to generate an internal net cash flow that raises substantial doubt about its ability to continue as a going concern. VICTORY ENERGY: Posts $1.3 Million Net Income in 2nd Quarter ------------------------------------------------------------ Victory Energy Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $1.29 million on $237,977 of oil and gas revenues for the three months ended June 30, 2014, compared to a net loss of $385,032 on $161,910 of oil and gas revenues for the same period in 2013. For the six months ended June 30, 2014, the Company reported net income of $851,671 on $432,960 of oil and gas revenues compared to a net loss of $838,386 on $255,678 of oil and gas revenues for the same period a year ago. The Company's balance sheet at June 30, 2014, showed $5.02 million in total assets, $1.29 million in total liabilities and $3.72 million in total stockholders' equity. At June 30, 2014, the Company had a working capital surplus of $976,951 compared to a working capital deficit of ($331,539) at Dec. 31, 2013. A full-text copy of the Form 10-Q is available for free at: http://is.gd/K7Iw7Q "We made significant progress toward our strategic goals," said Kenny Hill, Victory's CEO. "For the first time in company history, we closed on almost $9 million of transactions in a single quarter. Our divestiture of the Lightnin' Property ($4.0 million proceeds) provided a sound capital foundation for the acquisition of the 4,560 acre, Fairway Project, growing our production and our drilling inventory by at least forty additional well locations. These two transactions complement each other and illustrate our ability to increase shareholder value by increasing proved reserves on a net basis, adding significantly larger development acreage and leveraging our access to capital through our Navitus Energy Group relationship (up to $15M) and the Texas Capital Bank credit facility ($25M)." A full-text copy of the press release is available for free at: http://is.gd/NlosEW About Victory Energy Austin, Texas-based Victory Energy Corporation is engaged in the exploration, acquisition, development and exploitation of domestic oil and gas properties. Current operations are primarily located onshore in Texas, New Mexico and Oklahoma. Victory Energy reported a net loss of $2.11 million on $735,413 of total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $7.09 million on $326,384 of total revenues in 2012. Weaver & Tidwell, LLP, in Fort Worth, 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 experienced recurring losses since its inception and has an accumulated deficit. These conditions raise substantial doubt regarding the Company's ability to continue as a going concern. VICTORY ENERGY: Updated Reserve Report Filed -------------------------------------------- Victory Energy Corporation issued an updated reserve report showing a 62.6% increase in the PV-10 value of its reserves based on a report issued by Cambrian Management Ltd., an independent petroleum reserves engineering firm. The majority of the increase is attributed to the Fairway Project acquired in June 2014. The Cambrian Management Ltd. report showed total reserves of approximately 205.6 MBOE and a PV-10 of approximately $3.9 million. These totals include probable reserve based values of $1.4 million PV-0 and $.8 million PV-10, all of which is associated with the Fairway Project. Without the benefit of the probable reserves at June 30, 2014, PV-10 increase would have been 28.3 % higher than Dec. 31, 2013. The Fairway Project located in Glasscock and Howard County, Texas, accounted for the majority of the increases in PDNP, PUD and Probable reserves. As of Aug. 1, 2014, four new wells have been drilled on the Fairway property by Target Energy; four additional wells will be drilled in 2014. Under Securities and Exchange Commission guidelines, the commodity prices used in the June 30, 2014, and Dec. 31, 2013, PV-10 estimates were based on the 12-month unweighted arithmetic average of the first day of the month prices for the period July 1, 2013 through June 1, 2014, and for the period Jan. 1, 2013, through Dec. 1, 2013, respectively, adjusted by lease for transportation fees and regional price differentials and were also used in the mid-year 2014 report. For crude oil volumes, the average West Texas Intermediate posted price of $100.27 per barrel used to calculate PV-10 at June 30, 2014, was up 3% from the average price of $96.94 per barrel used to calculate PV-10 at Dec. 31, 2013. For natural gas volumes, the average Henry Hub spot price of $4.10 per million British thermal units ("MMBTU") used to calculate PV- 10 at June 30, 2014 was up 14% from the average price of $3.60 per MMBTU used to calculate PV-10 at Dec. 31, 2013. All prices were held constant throughout the estimated economic life of the properties. "Our updated reserve report is another indication that our strategy is unfolding as we envisioned," explained Kenny Hill, CEO of Victory Energy Corporation. "We focus on acquiring and developing low-risk vertical wells in the Permian Basin. This disciplined, capital efficient and repeatable process, coupled with our unique funding structure, affords us the opportunity to create significant shareholder value for an extended period of time." On Aug. 20, 2014, representatives of Victory Energy Corporation made a presentation at the Enercom, Inc. Conference in Denver, Co., a copy of the materials used at the presentation is available for free at http://is.gd/yIyc9h About Victory Energy Austin, Texas-based Victory Energy Corporation is engaged in the exploration, acquisition, development and exploitation of domestic oil and gas properties. Current operations are primarily located onshore in Texas, New Mexico and Oklahoma. Victory Energy reported a net loss of $2.11 million on $735,413 of total revenues for the year ended Dec. 31, 2013, as compared with a net loss of $7.09 million on $326,384 of total revenues in 2012. Weaver & Tidwell, LLP, in Fort Worth, 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 experienced recurring losses since its inception and has an accumulated deficit. These conditions raise substantial doubt regarding the Company's ability to continue as a going concern. WAFERGEN BIO-SYSTEMS: Amends Form S-1 Registration Statement ------------------------------------------------------------ Wafergen Bio-Systems, Inc., amended its prospectus with the U.S. Securities and Exchange Commission relating to the offering of 2,000 Units, with each Unit consisting of 1,143 shares of common stock and 1,143 warrants to purchase shares of the Company's common stock at a public offering price of $10,000 per Unit. The Company amended the Registration Statement to delay its effective date. The unit, share and warrant numbers, and the related prices, reflect a one-for-ten (1-for-10) reverse stock split which occurred on June 30, 2014. The underwriters have the option to purchase up to (i) 342,900 additional shares of common stock (based upon an assumed offering price per share of $8.75, which was the last reported sale price of the Company's common stock on Aug. 15, 2014), and/or (ii) additional warrants to purchase up to 342,900 additional shares of common stock (based upon an assumed offering price per share of $8.75, which was the last reported sale price of the Company's common stock on August 15, 2014) solely to cover over-allotments, if any, at the price to the public less the underwriting discounts and commissions. The over-allotment option may be used to purchase shares of common stock, or warrants, or any combination thereof, as determined by the underwriters, but those purchases cannot exceed an aggregate of 15% of the number of shares of common stock and warrants sold in the primary offering. The Company's common stock is currently traded on the OTCQB under the symbol "WGBS." On Aug. 15, 2014, the closing price of the Company's common stock was $8.75 per share. The Company has applied for listing of its common stock on the Nasdaq Capital Market under the symbol "WGBS," which listing the Company expects to occur upon consummation of this offering. A full-text copy of the amended Form S-1 is available for free at: http://is.gd/u53wTo 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. 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. 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. WALTER ENERGY: Bank Debt Trades at 6% Off ----------------------------------------- Participations in a syndicated loan under which Walter Energy Inc is a borrower traded in the secondary market at 94.75 cents-on- the-dollar during the week ended Friday, August 22, 2014, according to data compiled by LSTA/Thomson Reuters MTM Pricing and reported in The Wall Street Journal. This represents an increase of 0.69 percentage points from the previous week, The Journal relates. Walter Energy Inc. pays 575 basis points above LIBOR to borrow under the facility. The bank loan matures on March 14, 2018. The bank debt carries Moody's B3 rating and Standard & Poor's B- rating. The loan is one of the biggest gainers and losers among 249 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. WESTMORELAND COAL: Files Financial Statements of Acquired Assets ---------------------------------------------------------------- In connection with the Registration Statement on Form S-4 filed by Westmoreland Coal Company with the U.S. Securities and Exchange Commission, the Company filed the audited financial statements of its recently acquired Canadian subsidiaries, Prairie Mines & Royalty Ltd. and Coal Valley Resources, Inc., as of Dec. 31, 2013, and 2012 and for each of the three years in the period ended Dec. 31, 2013. For the year ended Dec. 31, 2013, Prairie Mines & Royalty Ltd. and Coal Valley Resources Inc. reported a net loss of C$200.93 million on C$736.22 million of revenue compared to a net loss of C$5.23 million on C$974.37 million of revenue in 2012. As of Dec. 31, 2013, the companies had C$1.54 billion in total assets, C$1.57 billion in total liabilities and a C$23.18 million shareholders' deficit. A copy of Prairie Mines & Royalty Ltd. and Coal Valley Resources Inc.'s combined consolidated financial statement is available for free at http://is.gd/1rx6ZK About Westmoreland Coal Colorado Springs, Colo.-based Westmoreland Coal Company (NYSE AMEX: WLB) -- http://www.westmoreland.com/-- is the oldest independent coal company in the United States. The Company's coal operations include coal mining in the Powder River Basin in Montana and lignite mining operations in Montana, North Dakota and Texas. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina. Westmoreland Coal incurred a net loss applicable to common shareholders of $6.05 million in 2013, a net loss applicable to common shareholders of $8.58 million in 2012 and a net loss applicable to common shareholders of $34.46 million in 2011. As of Dec. 31, 2013, the Company had $946.68 million in total assets, $1.13 billion in total liabilities and a $187.87 million total deficit. * * * As reported by the TCR on Nov. 6, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Englewood, Co.-based Westmoreland Coal Co. (WLB). to 'B-' from 'CCC+'. "The upgrade reflects our view that WLB is less vulnerable to default after successfully negotiating less restrictive covenant requirements for an unrated $110 million term loan due 2018," said credit analyst Gayle Bowerman. "Our assessment of WLB's business risk profile as 'vulnerable' and financial risk profile as 'highly leveraged' are unchanged. We also revised our liquidity score to 'adequate' based on the covenant relief and additional liquidity provided under the company's new $20 million asset-based loan (ABL) facility from 'less than adequate'." Westmoreland Coal carries a Caa1 corporate family rating from Moody's Investors Service. XTREME POWER: Blocks First Wind's Plea for Stay Relief ------------------------------------------------------ Xtreme Power Systems, LLC, and its debtor-affiliates ask the U.S. Bankruptcy Court for the Western District of Texas to deny First Wind Holdings, LLC's motion for relief from the automatic stay. The motion for relief seeks permission to pursue litigation concerning the Kahuku fire that occurred in August 2012. The Debtors say that while all the parties agree that the claims of First Wind must be liquidated at some point, there is no urgency to proceed with that litigation now, and open the flood gates to other claimants that may wish to proceed with litigation in other forums on proofs of claims that have been filed with the Court. The Debtors claim that the timing of the motion for relief, which was not initially thought to be problematic, became a concern due to delays in the two court-ordered mediations and First Wind's refusal to waive the 30 and 60-day deadlines for court action on a motion for relief from stay. The Court will conduct on Sept. 25, 2014, at 1:30 p.m.(CT) a final hearing on the motion for relief from automatic stay. Any party opposing the relief sought must file a written response to each of the motions by Sept. 11, 2014. About Xtreme Power Xtreme Power focuses on the design, engineering, installation, and monitoring of integrated energy storage systems for power generators, grid operators and commercial and industrial end users, among others. Xtreme Power to be one of the world's leading grid-scale power control technology provider capable of integrating the full spectrum of energy generation sources and battery technologies. Xtreme Power Inc. and two affiliates filed Chapter 11 bankruptcy petitions (Bankr. W.D. Tex. Lead Case No. 14-10096) in Austin, Texas, on Jan. 22, 2014. Judge Christopher H. Mott presides over the case. The Debtor is represented by Shelby A. Jordan, Esq., at Jordan, Hyden, Womble, Culbreth & Holzer, P.C. The Debtors tapped Baker Botts L.L.P. as special counsel, and Gordian Group, LLC, as investment banker and financial advisor. Debtor Power Inc. scheduled $7,004,915 in total assets and $65,743,283 in total liabilities. Debtor Power Grove scheduled $5,179,692 in total assets and $31,882,277 in total liabilities. Power Systems scheduled $4,303,921 in total assets and $87,666,873 in total liabilities. The Creditors' Committee is represented by Eric J. Taube, Esq., Mark C. Taylor, Esq., and Morris D. Weiss, Esq., at Hohmann, Taube & Summers, LLP, in Austin, Texas. * * * Judge H. Christopher Mott on April 11, 2014, authorized Xtreme Power, Inc., et al., to sell substantially all of their assets to Younicos, Inc., for $14 million. The Court also authorized the sale of certain assets free and clear of encumbrances to First Wind Holdings, LLC, for approximately $110,400. The Debtors initially intended to sell their assets to Horizon Technology Finance Corporation under a credit of the Debtors' pre- and postpetition financing up to $2.5 million. At an auction, the Debtors declared Shared Investments VI Inc. as the successful bidder with a $12 million bid but the Court reopened the auction and allowed Younicos to bid, with Younicos emerging as the highest bidder at an auction, besting Shared Investments. Shared Investments filed a motion for reconsideration, which was objected to by the Official Committee of Unsecured Creditors. The motion for reconsideration was denied by the Court. Younicos is represented by John Simon, Esq., and Omar Lucia, Esq., at Foley & Lardner LLP, in Detroit, Michigan. Shared Investments is represented by Sabrina L. Streusand, Esq., and Richard D. Villa, Esq., at Streusand, Landon & Ozburn, LLP, in Austin, Texas. Horizon Technology is represented by A. Lee Hogewood, III, Esq., at K&L Gates LLP, in Raleigh, North Carolina. ZAZA ENERGY: Reports $9.22-Mil. Net Loss for June 30 Quarter ------------------------------------------------------------ ZaZa Energy Corporation filed its quarterly report on Form 10-Q, disclosing a net loss of $9.22 million on $3.74 million of total revenues for the three months ended June 30, 2014, compared with a net loss of $58.15 million on $2.37 million of total revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $62.28 million in total assets, $131.99 million in total liabilities, and stockholders' deficit of $69.71 million. In connection with the audit of the Company's financial statements for the year ended December 31, 2013, its independent registered public accounting firm at the time issued their report dated March 31, 2014, that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about the Company's ability to continue as a going concern due to its dependency on the success of its 2014 drilling program with the Company's joint venture partners to generate sufficient cash flows to maintain positive liquidity. These conditions continue to be present as of June 30, 2014. A copy of the Form 10-Q is available at: http://is.gd/i2t6yV ZaZa Energy Corporation is an independent oil and gas company based in Houston. The Company operates primarily through its joint ventures in the Eaglebrine trend in East Texas and the Eagle Ford trend in South Texas. Z TRIM HOLDINGS: Has $1.57-Mil. Net Loss in Q2 Ended June 30 ------------------------------------------------------------ Z Trim Holdings, Inc., filed 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, compared with net income of $3.08 million on $382,126 of total revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $3.1 million in total assets, $2.17 million in total liabilities, and total stockholders' equity of $930,616. A copy of the Form 10-Q is available 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. As of March 31, 2014, the Company had $3.55 million in total assets, $1.41 million in total liabilities and $2.14 million in total stockholders' equity. 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. * Liquidating Trustee Can't Pursue Tax Refund, Appeals Court Says ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the bankruptcy court lacks jurisdiction to compel the government to pay a refund sought by the trustee of a liquidating trust, the U.S. Court of Appeals in New York ruled Aug. 13. According to the report, U.S. Circuit Judge Dennis Jacobs reversed a bankruptcy judge's decision directing the Internal Revenue Service to pay a $3.8 million refund to the trust liquidating a bankrupt company, saying the bankruptcy court lacked jurisdiction. The case is U.S. v. Bond, 12-48903, U.S. Court of Appeals for the Second Circuit (Manhattan). * Second Circuit Goes Easy on Keeping Books, Records in Fee Case ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the failure to keep books and records before bankruptcy, resulting in a default judgment in state court, by itself doesn't bar discharge in a later bankruptcy, the U.S. Court of Appeals in New York ruled in a July 25 opinion. According to the report, U.S. Circuit Judge Robert D. Sack, writing for the three-judge panel, went along with the lower courts, saying discharge provisions are to be construed liberally in favor of the bankrupt. The report related that Judge Sack said the discharge rules are intended to sanction misconduct that undermines the administration of bankruptcy. The case is Berger & Associates PC v. Kran (In re Kran), 13-1931, U.S. Court of Appeals for the Second Circuit (Manhattan). * Contempt Actions Not Halted by Automatic Stay, Court Says ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that contempt proceedings in state court to collect a sanction are not enjoined by the so-called automatic stay, the U.S. Bankruptcy Appellate Panel in San Francisco ruled, following a 1977 decision by the Ninth Circuit Court of Appeals. According to Mr. Rochelle, the three-judge appellate panel said it was compelled to reverse, based on a 1977 case from the circuit court called David v. Hooker. Setting aside the $1,500 contempt citation, U.S. Bankruptcy Judge Ralph Kirscher said he was bound by Hooker, which said that contempt proceedings aren't halted by the automatic stay unless designed to collect the ultimate obligation or were intended to harass, the report related. The case is Yellow Express LLC v. Dingley (In re Dingley), 13- 1261, U.S. Ninth Circuit Bankruptcy Appellate Panel (San Francisco). * Trustee Earns Fees on All Payments in Dismissed '13' ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that when a Chapter 13 case is dismissed, the standing trustee is entitled to fees based on all amounts paid out, Chief District Judge Jerome M. Simandle in Newark, New Jersey, ruled in the process of trying to harmonize Section 586 of the U.S. Judiciary Code with Section 1326 of the Bankruptcy Code. According to the report, upholding the bankruptcy judge, Judge Simandle decided that the percentage fee is "mandatory on all payments received, including cases dismissed before confirmation." The case is Nardello v. Balboa (In re Nardello), 13-6564, U.S. District Court, District of New Jersey (Newark). * Goldman Sachs to Pay $3.15-Bil. to Settle Mortgage Claims ----------------------------------------------------------- Nathaniel Popper, writing for The New York Times' DealBook, reported that Goldman Sachs said it has agreed to buy back $3.15 billion in mortgage bonds from Fannie Mae and Freddie Mac to end a lawsuit filed by the Federal Housing Finance Agency. According to the report, the agency, had accused Goldman of unloading low- quality mortgage bonds onto Fannie Mae and Freddie Mac in the run- up to the financial crisis. * U.S. Judge Scolds Argentina, Doesn't Hold It in Contempt ---------------------------------------------------------- Alexandra Stevenson, writing for The New York Times' DealBook, reported that Judge Thomas P. Griesa of the U.S. District Court in Manhattan said Argentina's attempt to skirt one of his rulings was "lawless" but stopped short of finding the country in contempt of court. According to the report, the federal judge held an emergency hearing at the request of lawyers for a group of New York hedge funds that are seeking more than $1.5 billion in bond payments that Argentina has refused to pay. The hearing followed the announcement of Argentina's president, Cristina Fernandez de Kirchner, that her government was proposing legislation to bypass a ruling by Judge Griesa that has prevented Argentina from making regular payments to its bondholders. Hugh Bronstein and Alejandro Lifschitz, writing for Reuters, reported that the Argentine government has sent a bill to Congress that would replace its New York intermediary bank with state-run Banco Nacion. According to the county's economy minister, the new plan aims to protect creditors who participated in two debt restructurings, Reuters related. Bob Van Voris, writing for Bloomberg News, related that during the emergency hearing, Judge Griesa denied a request by the hedge funds' lawyers, saying that a contempt finding wouldn't add to the prospects of a settlement between Argentina and its creditors. * BOND PRICING: For The Week From August 18 to 22, 2014 ------------------------------------------------------- Company Ticker Coupon Bid Price Maturity Date ------- ------ ------ --------- ------------- Alion Science & Technology Corp ALISCI 10.250 85.500 2/1/2015 Allen Systems Group Inc ALLSYS 10.500 52.250 11/15/2016 Allen Systems Group Inc ALLSYS 10.500 53.000 11/15/2016 Buffalo Thunder Development Authority BUFLO 9.375 41.500 12/15/2014 Caesars Entertainment Operating Co Inc CZR 10.000 24.900 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 42.424 2/1/2016 Caesars Entertainment Operating Co Inc CZR 6.500 36.000 6/1/2016 Caesars Entertainment Operating Co Inc CZR 12.750 28.900 4/15/2018 Caesars Entertainment Operating Co Inc CZR 5.750 37.000 10/1/2017 Caesars Entertainment Operating Co Inc CZR 10.000 26.300 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 42.250 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10.000 30.125 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.000 26.250 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.750 42.250 2/1/2016 Caesars Entertainment Operating Co Inc CZR 10.000 30.125 12/15/2018 Caesars Entertainment Operating Co Inc CZR 10.000 26.250 12/15/2018 Champion Enterprises Inc CHB 2.750 0.250 11/1/2037 Dendreon Corp DNDN 2.875 64.500 1/15/2016 Endeavour International Corp END 12.000 48.500 6/1/2018 Endeavour International Corp END 5.500 41.750 7/15/2016 Energy Conversion Devices Inc ENER 3.000 7.875 6/15/2013 Energy Future Competitive Holdings Co LLC TXU 8.175 1.000 1/30/2037 Energy Future Holdings Corp TXU 5.550 85.000 11/15/2014 FairPoint Communications Inc/Old FRP 13.125 1.000 4/2/2018 Federal Home Loan Banks FHLB 1.375 99.700 2/26/2018 Global Geophysical Services Inc GGS 10.500 20.375 5/1/2017 Global Geophysical Services Inc GGS 10.500 18.500 5/1/2017 James River Coal Co JRCC 7.875 12.500 4/1/2019 James River Coal Co JRCC 4.500 1.000 12/1/2015 James River Coal Co JRCC 10.000 6.125 6/1/2018 James River Coal Co JRCC 10.000 4.963 6/1/2018 James River Coal Co JRCC 3.125 2.125 3/15/2018 Las Vegas Monorail Co LASVMC 5.500 10.000 7/15/2019 Lehman Brothers Inc LEH 7.500 13.500 8/1/2026 MF Global Holdings Ltd MF 6.250 41.129 8/8/2016 MF Global Holdings Ltd MF 1.875 44.500 2/1/2016 MModal Inc MODL 10.750 10.375 8/15/2020 MModal Inc MODL 10.750 10.125 8/15/2020 Momentive Performance Materials Inc MOMENT 11.500 6.938 12/1/2016 Motors Liquidation Co MTLQQ 7.200 11.250 1/15/2011 Motors Liquidation Co MTLQQ 7.375 11.250 5/23/2048 Motors Liquidation Co MTLQQ 6.750 11.250 5/1/2028 NII Capital Corp NIHD 10.000 27.550 8/15/2016 NII Capital Corp NIHD 7.625 15.500 4/1/2021 NII Capital Corp NIHD 8.875 31.000 12/15/2019 NRG Energy Inc NRG 8.500 103.577 6/15/2019 OnCure Holdings Inc RTSX 11.750 48.875 1/15/2017 OnCure Holdings Inc RTSX 11.750 48.875 5/15/2017 Platinum Energy Solutions Inc PLATEN 14.250 74.750 3/1/2015 Platinum Energy Solutions Inc PLATEN 14.250 74.750 3/1/2015 Platinum Energy Solutions Inc PLATEN 14.250 74.750 3/1/2015 Platinum Energy Solutions Inc PLATEN 14.250 74.750 3/1/2015 Powerwave Technologies Inc PWAV 1.875 0.125 11/15/2024 Powerwave Technologies Inc PWAV 1.875 0.125 11/15/2024 RAAM Global Energy Co RAMGEN 12.500 78.133 10/1/2015 Savient Pharmaceuticals Inc SVNT 4.750 0.125 2/1/2018 TMST Inc THMR 8.000 12.000 5/15/2013 Terrestar Networks Inc TSTR 6.500 10.000 6/15/2014 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 14.563 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.000 37.250 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 14.000 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.500 14.500 11/1/2016 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 15.000 38.750 4/1/2021 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.250 13.625 11/1/2015 Texas Competitive Electric Holdings Co LLC / TCEH Finance Inc TXU 10.500 14.250 11/1/2016 Tunica-Biloxi Gaming Authority PAGON 9.000 60.750 11/15/2015 Western Express Inc WSTEXP 12.500 82.250 4/15/2015 Western Express Inc WSTEXP 12.500 84.000 4/15/2015 ********* 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 ***