/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/140909.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, September 9, 2014, Vol. 18, No. 251 Headlines ADVANCED CELL: Incurs $15.5-Mil. Net Loss for June 30 Quarter ALIMERA SCIENCES: Has $1.12-Mil. Net Income in Second Quarter AMBAC FINANCIAL: Reports $208-Mil. Net Loss for June 30 Quarter AMEDICA CORP: Incurs $13.24-Mil. Net Loss in Second Quarter AMERICA'S SUPPLIERS: Reports $150K Net Loss in Q2 Ended June 30 ARCHER USA: Voluntary Chapter 11 Case Summary ASPEN GROUP: Hikes Offering Under Equity Plan to 16.3MM Shares BRAFFITS CREEK: Brian Shapiro Named as Liquidating Trustee BRIGHTSTAR CORP: S&P Withdraws 'BB' CCR Over Softbank Deal CALIFORNIA RESOURCES: S&P Assigns 'BB+' CCR Over Spin-Off CAPROCK OIL: Posts $491K Net Loss in Q2 Ended June 30 CAPSTONE MINING: S&P Assigns 'B+' CCR & Rates $300MM Notes 'B+' CARDINAL ENERGY: Posts $1.19-Mil. Net Loss in June 30 Quarter CLEAR CHANNEL: Proposes to Offer $750 Million Guarantee Notes CLEAR CHANNEL: Fitch Rates 2022 Priority Guarantee Notes CCC/RR4 CLEAR CHANNEL: S&P Assigns 'CCC+' Rating on $750MM Notes Due 2022 CLEAREDGE POWER: Has Until Dec. 1 to Propose Chapter 11 Plan CLOUDEEVA INC: Court Dismisses Chapter 11 Bankruptcy Case COASTLINE INVESTMENT: SCG America's $19.5MM Wins Bid for Hotels COMPLETE LANDSCAPING: Court Dismisses Salmeron Cross-Claim CONNEAUT LAKE PARK: Trustees Hire Bankruptcy Attorney COSTA DORADA APARTMENT: Wins Dismissal of Chapter 11 Case CUMULUS MEDIA: Unveils New Organizational Leadership Structure CYPRESS COVE: Fitch Rates $66MM Series 2012 Revenue Bonds 'BB+' DETROIT, MI: Judge Puts Off Decision on Water Shut Offs DETROIT, MI: Files 6th Amended Plan for Adjustment of Debts DETROIT, MI: S&P Hikes Rating on 5 CUSIPs of Rev. Bonds From 'D' ECOSPHERE TECHNOLOGIES: Has $2.43-Mil. Net Loss for 2nd Quarter ELEPHANT TALK: Posts $4.61-Mil. Net Loss in Q2 Ended June 30 ELTRON SUPPLY: Schneider Liable to Philips Lighting for $240,000 EDGENET INC: Seeks Until Nov. 13 to File Ch. 11 Plan ENDEAVOUR INT'L: Misses Interest Payments, Cut by S&P to 'D' ERNIE HAIRE FORD: 11th Cir. Affirms 2nd Amended Plan Modification EVOLUCIA INC: Has $854K Net Loss in Second Quarter FL 6801 SPIRITS: General Claims Bar Date Set for September 12 FL 6801 SPIRITS: Files Schedules of Assets and Liabilities FLORIDA GAMING: Creditor Trustee Hires Salazar Jackson as Counsel FLORIDA GAMING: Creditor Trustee Taps KapilaMukamal as Advisors FOCUS CAPITAL: Insurance Proceeds Belong to Bankruptcy Estate GILES-JORDAN: Taps Stephen G. Schulz to Obtain Various Permits GM FINANCIAL: S&P Puts 'BB' ICR on CreditWatch Positive GUANWEI RECYCLING: Gets NASDAQ Listing Non-Compliance Notice KID BRANDS: Gets Court OK to Tap University Management Associates KID BRANDS: Committee Gets Nod to Tap Kelley Drye as Counsel KID BRANDS: Committee Can Hire Emerald Capital as Finc'l Advisors HANSEN MEDICAL: Reports $12.29-Mil. Net Loss for June 30 Quarter HAROLD OSTENSON: Dismissal of Derivative Lawsuit Affirmed HDGM ADVISORY: Hearing on Chapter 7 Conversion Set for Sept. 16 HELIA TEC: Plan Disclosures Hearing Moved Due to Amendment HOVNANIAN ENTERPRISES: Files Q3 Form 10Q, Posts $17MM Net Income IMPRINT TECHNOLOGIES: Ex-Bankr. Lawyer Loses Reinstatement Bid INVENT VENTURES: Has $722K Net Loss in Second Quarter INVENTIV HEALTH: S&P Corrects Rating on $507MM PIK Notes to 'CCC' KID BRANDS: Taps Hilco IP as Consultant and Sales Agent KID BRANDS: Files Schedules of Assets and Liabilities LABOR SMART: Posts $932K Net Loss for Second Quarter LADYWOOD APARTMENTS: Case Summary & 7 Top Unsecured Creditors LAKSHMI HOSPITALITY: Case Summary & 20 Top Unsecured Creditors LEHMAN BROTHERS: Bank Argues $63.5MM Claim Should be Paid in Full LENCO MOBILE: Files Chapter 11 Bankruptcy Petition LIBERATOR INC: Amends HCI Convertible Notes LIVINGVENTURES INC: Posts $84K Net Loss in June 30 Quarter LOFINO PROPERTIES: Glicny Wants Trustee to Abandon Cub Food II LONG BEACH MEDICAL: Court OKs VCI as Medical Operations Advisor LONGVIEW POWER: Plan Exclusivity Period Extended Until Sept. 30 MAUDORE MINERALS: Files Notice of Intention to Make BIA Proposal MARTIFER AURORA: Can Extend Plan Filing Deadline Until October 3 MF GLOBAL: SIPA Trustee's 72nd & 73rd Claim Objections Sustained MID-WILSHIRE PROPERTY: Case Summary & Unsecured Creditor MIDTOWN SCOUTS: Plan Confirmation Hearing Moved to Sept. 11 MIDTOWN SCOUTS: Gets Overwhelming Creditor Support for Plan NATIONAL CONSUMER MORTGAGE: Suit v. Rio Properties Dismissed NETWORK CN: OZ Management Reports 9.9% Equity Stake NEW BREED HOLDING: S&P Withdraws 'B' CCR Following Acquisition NII HOLDINGS: Has $623.31-Mil. Net Loss in June 30 Quarter NORALTA LODGE: S&P Assigns 'B' CCR & Rates C$150MM Notes 'B' NORTHERN BLIZZARD: S&P Alters Outlook & Hikes Debt Rating to 'B' OCULUS INNOVATIVE: Incurs $70,000 Net Loss in Second Quarter PENINSULA HOSPITAL: Has Access to Cash Collateral Until Dec. 31 PHILADELPHIA ENTERTAINMENT: Liquidating Plan Declared Effective PLUG POWER: Names Chris Hutter as Chief Financial Officer POLONIA TOWERS: Case Summary & 20 Largest Unsecured Creditors PORTNEUF ELECTRIC: Funds' Summary Judgment Motion Denied POSITIVEID CORP: Obtains $111,250 Financing From JMJ Financial PWK TIMBERLAND: Mediation Held With Withdrawing Members QUARTZ HILL MINING: Appeals From Chapter 11 Dismissal Order RANCHER ENERGY: Reports $175K Net Loss for Q2 Ended June 30 REGAL ONE: Incurs $166K Net Loss for Q2 Ended June 30 REGIONAL CARE: Court Transfer Chapter 11 Case to Judge Whinery ROBERT N. MORAN: No Quick Ruling in Suit Against U.S. Bank RESIDENTIAL CAPITAL: Court Tosses Suit by Deswal and Singh REVEL AC: Wants Until January 2015 to Removal Actions RIVER CITY: Oct. 1 Hearing on Continued Use of Cash Collateral ROCKDALE RESOURCES: Posts $672K Net Loss in Q2 Ended June 30 ROGERS BANCSHARES: Confirms Modified Joint Plan of Liquidation RONALD REAGAN ACADEMY: S&P Cuts Rating on 2007A Rev. Bonds to BB+ S.B. RESTAURANT: Court Extends Lease Decision Deadline to Jan. 12 SCHROEDER INVESTMENT: Case Summary & 9 Top Unsecured Creditors SCOTTSDALE VENETIAN: Confirmation Hearing Resumes Tomorrow SHOTWELL LANDFILL: Supplementary Ch.11 Trustee Order Entered SOCKET MOBILE: Accumulated Deficit at $61.1-Mil. as of June 30 SPECIALTY PRODUCTS: Republic and NMBFiL Seek Joint Administration SRKO FAMILY: Lienholder Committee Proposes Second Amended Plan SYNARC-BIOCORE HOLDINGS: S&P Affirms 'B-' Corp. Credit Rating TEM ENTERPRISES: Oct. 8 Hearing on Final Approval of Plan Outline TLC HEALTH: Hearing on Sale of Assets Continued Until Sept 29 TRUMP INT'L GOLF COURSE: Defaults on $20-Mil. Loan TRUMP TAJ MAHAL: Atlantic City Casino Could Head for Bankruptcy TRANSPERFECT INT'L: Kramer Levin's Dissolution Petition Tossed UNIVERSAL COOPERATIVE: Court Sets September 30 as Claims Bar Date UNIVERSAL COOPERATIVE: Has Until Dec. 7 to Make Lease Decisions UPH HOLDINGS: Court Won't Nix Suit v. Leap, T-Mobile & Sprint US RENAL CARE: S&P Keeps 'B' CCR Over Proposed $75MM Loan Add-On VESTCOM INT'L: S&P Assigns 'B' Credit Rating; Outlook Stable VIGGLE INC: Launches New Fantasy Football Game WESTMORELAND COAL: Amends 700,000 Shares Resale Prospectus XTREME POWER: Can Hire Spivey & Grigg as Litigation Counsel YOUNG INVESTMENTS: Case Summary & 4 Unsecured Creditors ZAZA ENERGY: Regains Compliance with NASDAQ Listing Standards * Adrian to Head KCC's Strategic Communications Services Business * Large Companies With Insolvent Balance Sheet ********* ADVANCED CELL: Incurs $15.5-Mil. Net Loss for June 30 Quarter ------------------------------------------------------------- Advanced Cell Technology, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $15.52 million on $39,469 of revenue for the three months ended June 30, 2014, compared to a net loss of $6.89 million on $58,268 of revenue for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $5.54 million in total assets, $11.39 million in total liabilities and total stockholders' deficit of $5.84 million. A copy of the Form 10-Q is available at: http://is.gd/hBlOut Advanced Cell Technology, Inc., is a biotechnology company whose intellectual property portfolio includes pluripotent human embryonic stem cell-induced pluripotent stem cell platforms and other human stem cell-focused research programs. ACTC (U.S.: OTC) is headquartered in Marlborough, Massachusetts. ALIMERA SCIENCES: Has $1.12-Mil. Net Income in Second Quarter ------------------------------------------------------------- Alimera Sciences, Inc., filed its quarterly report on Form 10-Q, disclosing net income of $1.12 million on $2.19 million of net revenue for the three months ended June 30, 2014, compared with a net loss of $16.36 million on $179,000 of net revenue for the same period last year. The Company's balance sheet at June 30, 2014, showed $48.66 million in total assets, $35 million in total liabilities and total stockholders' equity of $13.66 million. A copy of the Form 10-Q is available at: http://is.gd/WCYBnW About Alimera Sciences Alpharetta, Ga.-based Alimera Sciences, Inc., is a biopharmaceutical company that specializes in the research, development and commercialization of prescription ophthalmic pharmaceuticals. The Company is presently focused on diseases affecting the back of the eye, or retina, because it believes these diseases are not well treated with current therapies and represent a significant market opportunity. AMBAC FINANCIAL: Reports $208-Mil. Net Loss for June 30 Quarter --------------------------------------------------------------- Ambac Financial Group, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $208.23 million on $80.09 million of total net investment income for the three months ended June 30, 2014, compared with a net income of $205.28 million on $26.2 million of total net investment income for the same period last year. The Company's balance sheet at June 30, 2014, showed $27.7 billion in total assets, $26.5 billion in total liabilities and total stockholders' equity of $1.22 billion. A copy of the Form 10-Q is available at: http://is.gd/SJGkmb About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac's bond insurance unit, Ambac Assurance Corp., is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about US$1.62 billion. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. Bankruptcy Judge Shelley C. Chapman entered an order confirming the Fifth Amended Plan of Reorganization of Ambac Financial Group, Inc. on March 14, 2012. The Plan provides for the full payment of secured claims and 8.5% to 13.2% recovery for general unsecured claims. The second modified version of the confirmed Plan was declared effective on May 1, 2013, with Ambac obtaining bankruptcy court approval of a $100+ million claims settlement with the Internal Revenue Service. AMEDICA CORP: Incurs $13.24-Mil. Net Loss in Second Quarter ----------------------------------------------------------- Amedica Corporation filed its quarterly report on Form 10-Q, disclosing a net loss of $13.24 million on $5.84 million of product revenue for the three months ended June 30, 2014, compared with a net loss of $3.07 million on $6.05 million of product revenue for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $43.33 million in total assets, $28.47 million in total liabilities and total stockholders' equity of $14.86 million. A copy of the Form 10-Q is available at: http://is.gd/cWnoFw Amedica Corporation, a commercial-stage biomaterial company, develops, manufactures, and sells a range of medical devices in the United States. It offers Valeo silicon nitride interbody spinal fusion devices for use in the cervical and thoracolumbar areas of the spine; Valeo stand-alone anterior lumbar intervertebral fusion device; and a line of non-silicon nitride spinal fusion products used by surgeons to promote bone growth and fusion in spinal fusion procedures. The company also develops femoral heads for use in its total hip replacements; and femoral condyle components for use in its total knee replacements. It markets and sells its products to surgeons and hospitals in the United States, Europe, and South America through a network of independent sales distributors. The company has research and development agreement with Kyocera Industrial Ceramics Corporation to manufacture silicon nitride-based spinal fusion products and product candidates. Amedica Corporation was founded in 1996 and is headquartered in Salt Lake City, Utah. AMERICA'S SUPPLIERS: Reports $150K Net Loss in Q2 Ended June 30 --------------------------------------------------------------- America's Suppliers, Inc., filed its quarterly report on Form 10- Q, disclosing a net loss of $150,268 on $4 million of revenue for the three months ended June 30, 2014, compared with a net loss of $58,230 on $3.89 million of revenue for the same period last year. The Company's balance sheet at June 30, 2014, showed $1.41 million in total assets, $1.88 million in total liabilities and total stockholders' deficit of $474,789. A copy of the Form 10-Q is available at: http://is.gd/i4vhTH Scottsdale, Ariz.-based America's Suppliers, Inc., is an Internet- based provider of general merchandise through its wholly owned subsidiaries, DollarDays International, Inc., and http://www.WowMyUniverse.com/ ARCHER USA: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- Archer USA, Inc. 14-16659 2025 First Avenue, Suite 320 Seattle, WA 98121 Lenco Mobile, Inc. 14-16660 FDBA Capital Supreme; FDBA Multimedia Solutions; DBA Archer Inc. 2025 First Avenue, Suite 320 Seattle, WA 98121 Chapter 11 Petition Date: September 6, 2014 Nature of Business: Global provider of proprietary mobile engagement solutions to large enterprises. Court: United States Bankruptcy Court Western District of Washington (Seattle) Judge: Hon. Karen A. Overstreet Debtors' Counsel: Heidi C Anderson, Esq. LANE POWELL PC 1420 5th Ave Ste 4100 Seattle, WA 98101 Tel: 206-223-7000 Email: andersonh@lanepowell.com - and - Bruce W. Leaverton, Esq. LANE POWELL PC 1420 Fifth Avenue, Suite 4200 Seattle, WA 98111-9402 Archer USA estimated assets of $1 million to $10 million and liabilities of $10 million to $50 million. Lenco Mobile disclosed total assets of $6.5 million and total debts of $32.6 million. The petitions were signed by Matthew Harris, president. The Debtors did not file a list of their largest unsecured creditors when they filed the petitions. ASPEN GROUP: Hikes Offering Under Equity Plan to 16.3MM Shares -------------------------------------------------------------- Aspen Group, Inc., amended the Company's 2012 Equity Incentive Plan to increase the number of authorized shares under the Plan to 16.3 million. In connection with the closing of the recent offering which was previously reported on a Form 8-K, the Company granted 2.6 million options (exercisable at $0.155 per share) to its Board of Directors. Of the options, 75% were granted to Mr. Michael Mathews and the remaining amount was granted in equal amounts to the remaining directors. The options vest in three equal annual increments with the first vesting date being one year from the grant date, subject to continued service as a director on each applicable vesting date. The options will become exercisable at such time as the Company increases its authorized common stock to 250,000,000 shares. About Aspen Group Denver, Colo.-based Aspen Group, Inc., was founded in Colorado in 1987 as the International School of Information Management. On Sept. 30, 2004, it was acquired by Higher Education Management Group, Inc., and changed its name to Aspen University Inc. On May 13, 2011, the Company formed in Colorado a subsidiary, Aspen University Marketing, LLC, which is currently inactive. On March 13, 2012, the Company was recapitalized in a reverse merger. Aspen's mission is to become an institution of choice for adult learners by offering cost-effective, comprehensive, and relevant online education. Approximately 88 percent of the Company's degree-seeking students (as of June 30, 2012) were enrolled in graduate degree programs (Master or Doctorate degree program). Since 1993, the Company has been nationally accredited by the Distance Education and Training Council, a national accrediting agency recognized by the U.S. Department of Education. Aspen Group incurred a net loss of $5.35 million for the year ended April 30, 2014. The Company also reported a net loss of $1.40 million for the four months ended April 30, 2013. The Company reported a net loss of $6 million in 2012 as compared with a net loss of $2.13 million in 2011. As of April 30, 2014, Aspen Group had $3.58 million in total assets, $5.36 million in total liabilities and a $1.78 million total stockholders' deficiency. BRAFFITS CREEK: Brian Shapiro Named as Liquidating Trustee ---------------------------------------------------------- Cohen Braffits Estates Development filed on August 29, 2014, a notice of proposed appointment of a liquidating trustee in connection with the proposed plan of reorganization. Brian Shapiro is nominated as the liquidating trustee for the proposed liquidating trust. Cohen Braffits Estates Development is represented by: JOHNSON & GUBLER, P.C. Matthew L. Johnson, Esq. Lakes Business Park 8831 West Sahara Avenue Las Vegas, NV 89117 Tel: (702) 471-0065 Fax: (702) 471-0075 E-mail: mjohnson@mjohnsonlaw.com About Braffits Creek Estates LLC Braffits Creek Estates LLC filed for Chapter 11 protection (Bankr. D. Nev. Case No. 12-19780) on Aug. 23, 2012. Bankruptcy Judge Bruce A. Markell presides over the case. David J. Winterton, & Assoc., Ltd., represents the Debtor in its restructuring effort. The Debtor disclosed $25,003,800 in assets and $33,959,140 in liabilities as of the Chapter 11 filing. BRIGHTSTAR CORP: S&P Withdraws 'BB' CCR Over Softbank Deal ---------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB' corporate credit rating on Miami-based wireless distributor Brightstar Corp. The rating withdrawal follows Softbank's acquisition from Marcelo Claure of the 37.7% shares in Brightstar Global Group Inc. (the parent company of Brightstar Corp.) that it didn't already own. Softbank has been the majority share owner (62.3%) of Brightstar since early 2014. Furthermore, the company's senior unsecured notes are already guaranteed by Softbank and therefore are rated 'BB+'. As a result of this equity purchase transaction, the company is now a wholly owned subsidiary of Softbank and has requested that S&P withdraw the corporate credit rating. CALIFORNIA RESOURCES: S&P Assigns 'BB+' CCR Over Spin-Off --------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' corporate credit rating to Los Angeles-based California Resources Corp. The outlook is stable. "We also assigned our 'BBB' issue-level rating (two notches above the corporate credit rating on CRC) to the company's $2 billion revolving credit facility due in 2019 and its planned $1 billion term loan facility due 2019. The recovery rating on the RBL and term loan facility is '1', reflecting our expectation for very high (90% to 100%) recovery in the event of a payment default. We also assigned a 'BB' issue-level rating (one notch lower than the corporate credit rating) to CRC's proposed $5 billion aggregate senior unsecured debt issuance (tranche sizes are still to be determined, but the debt will be issued in three separate tranches with tenors of five and a half years, seven years, and 10 years). The recovery rating on this unsecured debt is '5', indicating our expectation of modest (10% to 30%) recovery in the event of a payment default," S&P said. CRC will be spun off from OXY in the fourth quarter of 2014 and is issuing debt to fund a $6 billion dividend that will be paid to OXY in conjunction with the spinoff. CRC will own and operate the California businesses as an independent publicly traded company. OXY will retain less than 20% of CRC's common stock at the close of the transaction, reducing its exposure over time and ultimately disposing of its CRC shares within an 18-month time frame. The stable outlook is based on S&P's expectation that CRC will maintain consistent operational performance focusing on its key California basins. "We believe that increased capital spending as a stand-alone entity will enable the company to drive high-single-digit production growth over the next two years, led by higher investment in mature, lower-risk crude oil plays," said Standard & Poor's credit analyst Mark Salierno. "We expect CRC's cash flow generation will sufficiently support its capital spending plans." S&P could consider a higher rating if CRC's key credit ratios improve, including FFO to total debt above 45% and leverage below 2x on a sustained basis. This could occur if the company's performance is in line with S&P's expectations and its internally generated operating cash flow exceeds capital spending, and it applies its excess cash flow to debt reduction over the next several years. S&P could consider a downgrade if CRC's credit measures deteriorate, including FFO to total debt falling below 20% or leverage approaching the 4x area with no near-term remedy, or if the company's business risk profile weakens, which S&P believes could result from heightened regulatory requirements in California and/or a meaningful, prolonged deterioration in crude oil prices. CAPROCK OIL: Posts $491K Net Loss in Q2 Ended June 30 ----------------------------------------------------- Caprock Oil, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $491,634 on $644,568 of total revenues for the three months ended June 30, 2014, compared with a net loss of $283,213 on $668,796 of total revenues for the same period last year. The Company's balance sheet at March 31, 2014, showed $7.13 million in total assets, $5.78 million in total liabilities and stockholders' equity of $1.35 million. A copy of the Form 10-Q is available at: http://is.gd/iUTvBK Caprock Oil, Inc. is focused on the exploration and production of oil and natural gas in Texas and Louisiana. Based in Houston, the Company recently completed the acquisition of Cinco NRG, LLC, a private oil and gas company. CAPSTONE MINING: S&P Assigns 'B+' CCR & Rates $300MM Notes 'B+' --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term corporate credit rating and stable outlook to Vancouver-based copper producer Capstone Mining Corp. At the same time, Standard & Poor's assigned its 'B+' issue-level rating and '4' recovery rating to the company's proposed US$300 million senior unsecured notes. The '4' recovery rating indicates S&P's expectation of average (30%-50%) recovery in a default scenario. S&P assumes that the proceeds from the unsecured notes offering will repay debt that was incurred primarily to fund Capstone's Arizona-based Pinto Valley mine acquisition in late-2013. Along with the proposed notes, the company intends to establish a new US$300 million senior secured revolving credit facility due 2018. Capstone's mining operations are based exclusively in the U.S., Mexico, and Canada. "We expect the company to generate sharply higher production growth and improved operating diversity in 2014 following a full year contribution from its Pinto Valley mine acquisition," said Standard & Poor's credit analyst Jarrett Bilous. "In our view, counterbalancing these supportive factors are the company's relatively limited scope of operations that include three mines, cash costs that are modestly above the industry average, and exposure to unstable copper prices," Mr. Bilous added. The ratings on Capstone reflect Standard & Poor's view of the company's "weak" business risk profile and "aggressive" financial risk profile, which result in an anchor score of 'b+'. S&P do not apply modifiers to the anchor score, resulting in a 'B+' long-term corporate credit rating. The stable outlook reflects Standard & Poor's view that Capstone will likely maintain credit measures strong for the ratings and that liquidity will remain adequate. S&P estimates that, under its base-case assumptions, Capstone will generate a debt-to-EBITDA leverage ratio of about 2x and a funds from operations (FFO)-to- debt ratio of more than 40% through next year, and expect its core credit ratios will remain highly sensitive to volatility in copper prices. A positive rating action during S&P's two-year outlook horizon is unlikely unless Capstone adds a low-cost producing mine to its portfolio of assets in the near term, without a significant deterioration in its balance sheet from additional debt. S&P would revise the outlook to negative if FFO-to-debt declines below 20% and liquidity weakens, which could result from a rapid copper price decline or significant costs pressures that lead to a meaningful contraction in the company's operating margins or if debt increased because of acquisitions. CARDINAL ENERGY: Posts $1.19-Mil. Net Loss in June 30 Quarter ------------------------------------------------------------- Cardinal Energy Group, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $1.19 million on $59,920 of total revenues for the three months ended June 30, 2014, compared with a net loss of $262,664 on $5,471 of total revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $4.34 million in total assets, $5.2 million in total liabilities, and a stockholders' deficit of $867,190. A copy of the Form 10-Q is available at: http://is.gd/YVD6Uv Upper Arlington, Ohio-based Cardinal Energy Group, Inc., is engaged in the business of exploring, purchasing, developing and operating oil and gas leases. The Company currently owns interests in oil and gas leases located in the states of California and Ohio. Effective Sept. 23, 2012, Cardinal Energy Group, LLC, entered into a Share Exchange Agreement with Koko Ltd., a Nevada company, whereby the Cardinal Energy Group, LLC, agreed to issue 100 percent of its issued and outstanding shares of common stock in exchange for Koko issuing the shareholders of the Company 31,050,000 shares of Koko. The transaction was accounted for as a reverse-merger recapitalization with Koko the acquirer for legal purposes and the Company the acquirer for accounting purposes. Pursuant to this agreement the Company changed its corporate name from Cardinal Energy Group, LLC, to Cardinal Energy Group, Inc. The shareholders of Koko retained 3,450,000 common shares in the transaction. The number of authorized shares in the surviving entity remained at 100,000,000. CLEAR CHANNEL: Proposes to Offer $750 Million Guarantee Notes ------------------------------------------------------------- Clear Channel Communications, Inc., plans to offer, subject to market and customary conditions, $750 million in aggregate principal amount of Priority Guarantee Notes due 2022 in a private offering that is exempt from registration under the Securities Act of 1933, as amended. The Notes will be fully and unconditionally guaranteed on a senior secured basis by CCU's parent, Clear Channel Capital I, LLC, and all of CCU's existing and future material wholly-owned domestic restricted subsidiaries. The Notes and the related guarantees will be secured by (1) a lien on (a) the capital stock of CCU and (b) certain property and related assets that do not constitute "principal property", in each case equal in priority to the liens securing the obligations under CCU's senior secured credit facilities and existing priority guarantee notes and (2) a lien on the accounts receivable and related assets securing CCU's receivables based credit facility junior in priority to the lien securing CCU's obligations thereunder. CCU intends to use the gross proceeds from this offering to prepay at par $729 million of the loans outstanding under its term loan B facility and $12.1 million of the loans outstanding under its term loan C-asset sale facility, to pay accrued and unpaid interest with regard to such loans to, but not including, the date of prepayment, and to pay fees and expenses related to the offering and the prepayment. About Clear Channel Communications San Antonio, Texas-based Clear Channel Communications, Inc., an indirect subsidiary of CC Media Holdings, Inc. (OTCBB: CCMO), is one of the leading global media and entertainment companies specializing in radio, digital, outdoor, mobile, live events, and on-demand entertainment and information services for local communities and providing premier opportunities for advertisers. CC Media Holdings Inc. -- http://www.ccmediaholdings.com/-- is a global media and entertainment company. Its businesses include radio and outdoor displays. Clear Channel reported a net loss attributable to the Company of $606.88 million in 2013, a net loss attributable to the Company of $424.47 million in 2012 and a net loss attributable to the Company of $302.09 million in 2011. The Company's balance sheet at June 30, 2014, showed $14.75 billion in total assets, $24.06 billion in total liabilities and a $9.31 billion total shareholders' deficit. Bankruptcy Warning The Company said in its annual report for the year ended Dec. 31, 2013, "If our and our subsidiaries' cash flows from operations, refinancing sources and other liquidity-generating transactions are insufficient to fund our respective debt service obligations, we may be forced to reduce or delay capital expenditures, sell material assets or operations, or seek additional capital. We may not be able to take any of these actions, and these actions may not be successful or permit us or our subsidiaries to meet the scheduled debt service obligations. Furthermore, these actions may not be permitted under the terms of existing or future debt agreements." "The ability to refinance the debt will depend on the condition of the capital markets and our financial condition at such time. Any refinancing of the debt could be at higher interest rates and increase debt service obligations and may require us and our subsidiaries to comply with more onerous covenants, which could further restrict our business operations. The terms of existing or future debt instruments may restrict us from adopting some of these alternatives. These alternative measures may not be successful and may not permit us or our subsidiaries to meet scheduled debt service obligations. If we or our subsidiaries cannot make scheduled payments on indebtedness, we or our subsidiaries, as applicable, will be in default under one or more of the debt agreements and, as a result we could be forced into bankruptcy or liquidation." * * * In May 2013, Moody's Investors Service said that Clear Channel's upsize of the term loan D to $4 billion from $1.5 billion will not impact the Caa1 facility rating assigned. Clear Channel's Corporate Family Rating is unchanged at Caa2. The outlook remains stable. As reported by the TCR on May 21, 2013, Standard & Poor's Ratings Services also announced that its issue-level rating on San Antonio, Texas-based Clear Channel's senior secured term loan remains unchanged at 'CCC+' following the company's upsize of the loan to $4 billion from $1.5 billion. The rating on parent company CC Media Holdings remains at 'CCC+' with a negative outlook, which reflects the risks surrounding the long-term viability of the company's capital structure. CLEAR CHANNEL: Fitch Rates 2022 Priority Guarantee Notes CCC/RR4 ---------------------------------------------------------------- Fitch Ratings has assigned a 'CCC/RR4' rating to Clear Channel Communications, Inc. (Clear Channel) proposed Priority Guarantee notes due 2022. Proceeds from the offering are expected to be used to pay $729 million of Term Loan B due 2016 and $12.1 million of Term Loan C due 2016 and to pay fees and expenses related to the offering and prepayment. The Rating Outlook on Clear Channel is Negative. From Fitch's perspective, the proposed transaction is modestly positive to Clear Channel's credit profile as it extends the company's maturity profile. Following the redemption, Clear Channel will have remaining $1.16 billion and $19.2 million in Term Loan B and Term Loan C respectively and $1.4 billion in total maturing in 2016. The transaction is expected to increase total interest cost, but Fitch believes the company has adequate liquidity (including cash on hand, monetization of repurchased and outstanding notes, and asset sales) to meet its debt service obligations. Fitch expects free cash flow (FCF) to be negative over the next few years. The ratings and Negative Outlook reflect the limited room within the credit profile to endure any material deterioration in operations. Fitch calculates Clear Channel's interest coverage ratio (EBITDA/Gross Interest Expense) at 1x as of June 2014, and the company paid more than $1.5 billion in cash interest on an LTM basis. Fitch does not expect a material amount of absolute debt reduction over the next several years, given the expected negative FCF. Instead, Fitch expects the company to continue to focus on extending or repaying its term loans via issuance at Clear Channel and CCOH. Proforma for the aforementioned transaction, Clear Channel has approximately $21.1 billion in consolidated debt (includes debt held at CC Finco LLC). Debt held at Clear Channel is $18 billion and consist of: -- $7.5 billion secured term loans ($1.2 billion in 2016 and $6.3 billion in 2019); -- $5.1 billion secured PGNs, maturing 2019-2022; -- $2.1 billion in senior unsecured 12% cash pay / 2% PIK notes maturing in Feb. 2021 (includes CC Finco LLC position of $423 million); -- $1.6 billion senior unsecured notes (including $725 million in legacy notes), with maturities of 2016-2027. Debt held at Clear Channel Worldwide Holdings, Inc. (CCWH) is $4.9 billion and consist of: -- $2.7 billion in senior unsecured 6.5% notes due in 2022; -- $2.2 billion in subordinated 7.625% notes due 2020. Liquidity At June 30, 2014, Clear Channel had $572 million of cash, excluding $226 million of cash held at CCOH. Backup liquidity consists of an undrawn $535 million ABL facility (subject to an undisclosed borrowing base) that matures in December 2017 and is subject to springing maturities. Security and Guarantees The bank debt and PGNs are secured by the capital stock of Clear Channel, Clear Channel's non-broadcasting assets (non-principal property), and a second priority lien on the broadcasting receivables that securitize the ABL facility. The bank debt and secured notes are guaranteed on a senior basis by Clear Channel Capital I, LLC (holding company of Clear Channel), and by Clear Channel's wholly owned domestic subsidiaries. The exchange notes benefit from a guarantee from the same entities, although it is contractually subordinated to the secured debt guarantees. There is no guarantee from Clear Channel Outdoor Holdings, Inc (CCOH) or its subsidiaries. The legacy notes and the new 10% notes receive no guarantees. Recovery Ratings Clear Channel's Recovery Ratings reflect Fitch's expectation that the enterprise value of the company will be maximized in a restructuring scenario (going concern), rather than a liquidation. Fitch employs a 6x distressed enterprise value multiple reflecting the value of the company's radio broadcasting licenses in top U.S. markets. Fitch assumes going concern EBITDA at $832 million and that Clear Channel has maximized the debt-funded dividends from CCOH and used the proceeds to repay bank debt. Additionally, Fitch assumes that Clear Channel would receive 88% of the value of a sale of CCOH after the CCOH creditors had been repaid. Fitch estimates the adjusted distressed enterprise valuation in restructuring to be approximately $6.6 billion. The 'CCC/RR4' rating for the bank debt and secured notes reflect Fitch's estimate for a recovery range of 31%-50%. Fitch expects no recovery for the senior unsecured legacy notes, the 10% senior notes, and exchange notes due to their position below the secured debt in the capital structure, and they are assigned 'RR6'. However, Fitch rates the exchange notes 'CC' given the subordinated guarantee. CCOH's Recovery Ratings also reflect Fitch's expectation that enterprise value would be maximized as a going concern. Fitch stresses outdoor EBITDA by 15%, and applies a 7x valuation multiple. Fitch estimates the enterprise value would be $4 billion. This indicates 100% recovery for the unsecured notes. However, Fitch notches the debt up only two notches from the IDR given the unsecured nature of the debt. In Fitch's analysis, the subordinated notes recover in the 31% to 50% 'RR4' range, leading to no notching from the IDR. Key Rating Drivers: Fitch's ratings concerns center on the company's highly leveraged capital structure, with significant maturities in 2016; the considerable and growing interest burden that is expected to generate negative FCF in the near term; technological threats and secular pressures in radio broadcasting; and the company's exposure to cyclical advertising revenue. The ratings are supported by the company's leading position in both the outdoor and radio industries, as well as the positive fundamentals and digital opportunities in the outdoor advertising space. Rating Sensitivities: Negative: An inability to extend maturities would result in a downgrade. This inability may derive from a prolonged consolidated cash burn, whether driven by cyclical or secular pressures, reducing Clear Channel's ability to fund debt service and near-term maturities. Additionally, cyclical or secular pressures on operating results that further weaken credit metrics could result in negative rating pressure. Lastly, indications that a DDE is probable in the near term would also drive a downgrade. Positive: The current Rating Outlook is Negative. As a result, Fitch's sensitivities do not currently anticipate a rating upgrade. Fitch's ratings are as follows: Clear Channel -- Long-term IDR at 'CCC'; -- Senior secured term loans at 'CCC/RR4'; -- Senior secured priority guarantee notes at 'CCC/RR4'; -- Senior unsecured exchange notes due 2021 at 'CC/RR6'; -- Senior unsecured notes at 'C/RR6'. The Rating Outlook for Clear Channel is Negative. Clear Channel Worldwide Holdings, Inc. -- Long-term IDR at 'B'; -- Senior unsecured notes at 'BB-/RR2'; -- Senior subordinated notes at 'B/RR4'. The Rating Outlook for Clear Channel Worldwide Holdings, Inc. is Stable. CLEAR CHANNEL: S&P Assigns 'CCC+' Rating on $750MM Notes Due 2022 ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned San Antonio, Texas- based Clear Channel Communications Inc.'s proposed $750 million priority guarantee notes due 2022 an issue-level rating of 'CCC+', with a recovery rating of '3'. The '3' recovery rating indicates S&P's expectations for meaningful (50% to 70%) recovery in the event of a payment default. The proposed transaction reduces 2016 maturities to $1.4 billion. Leverage remains extremely high, at roughly 9x, as of June 30, 2014, and largely unchanged by the transaction. The transaction reduces maturities through 2016 ($1.4 billion) down to levels that are approaching the company's pro forma cash and asset-backed revolver capacity, of $575 million and roughly $300 million, respectively, or $875 million combined, based on S&P's estimation. However, the company's progress in refinancing debt at interest rates that are about 5% higher on average will cause EBITDA coverage of interest to remain in the low-1x area. S&P also expects discretionary cash flow deficits in the range of $125 million to $175 million in 2014 and 2015, under S&P's base- case scenario, which will keep liquidity extremely limited. RATINGS LIST Clear Channel Communications Inc. Corporate Credit Rating CCC+/Negative/-- New Rating Clear Channel Communications Inc. $750M priority guarantee notes due 2022 CCC+ Recovery Rating 3 CLEAREDGE POWER: Has Until Dec. 1 to Propose Chapter 11 Plan ------------------------------------------------------------ Bankruptcy Judge Charles Novack extended the exclusive periods within which Clearedge Power, Inc., or the Official Committee of Unsecured Creditors may: i) file a Chapter 11 Plan until Dec. 1, 2014; and ii) solicit acceptances of a plan until Jan. 28, 2015. As reported in the Troubled Company Reporter on Aug. 4, 2014, the Debtor filed its chapter 11 petition on May 1, 2014, and has since sold most of its assets to Doosan Corp. The Debtor contended that there is "cause" for the extension pursuant to Sec. 1121(d) of the Bankruptcy Code based on the factors enumerated in the case of In re Express One International, Inc. 194 B.R. 98 (Bankr. E.D. Tex. 1996). The Debtor pointed out that its case is large and complex with over 1,500 creditors, equity holders, and parties in interest; $67 million in liabilities; and offices both in the U.S. and abroad. The Debtor contended that the fact that less than three months have elapsed since the petition date and that this is its first request for an extension weigh in favor of an extension. Additionally, the Debtor argues that the consummation of the sale of its assets, its timely filing of statements and schedules, and its cooperation with the U.S. Trustee, all illustrate that good faith progress is being made in the case. The Debtor anticipates filing a Plan soon after the close of the sale to Doosan. The Debtor is also paying obligations as they become due, and has made progress in its negotiations with creditors. The Debtor argues that the existence of these factors necessitates an extension in this case. The Debtors are represented by: John Walshe Murray, Esq. Stephen T. O'Neill, Esq. Robert A. Franklin, Esq. Thomas T. Hwang, Esq. DORSEY & WHITNEY LLP 305 Lytton Avenue Palo Alto, CA 94301 Tel: (650) 857-1717 Fax: (650) 857-1288 E-mail: murray.john@dorsey.com oneill.stephen@dorsey.com franklin.robert@dorsey.com hwang.thomas@dorsey.com About ClearEdge Power Sunnyvale, California-based ClearEdge Power Inc. and two other affiliates filed for Chapter 11 bankruptcy protection (Bankr. N.D. Cal. Lead Case No. 14-51955) on May 1, 2014, in San Jose. Affiliates ClearEdge Power, LLC, and ClearEdge Power International Service, LLC, are based in South Windsor, Connecticut, where the manufacturing operations are located. Privately held ClearEdge designs, manufactures, sells and services distributed generation fuel cell systems for commercial, industrial, utility and residential applications. ClearEdge bought United Technologies Corp.'s UTC Power division in late 2012. ClearEdge sought bankruptcy protection just a week after shutting operations. John Walshe Murray, Esq., at Dorsey and Whitney LLP, serves as counsel to the Debtors. Insolvency Services Group, Inc., serves as noticing and claims agent. ClearEdge Power disclosed $31.3 million in assets and $67.4 million in liabilities as of the Chapter 11 filing. Power Inc. estimated $100 million to $500 million in both assets and debts. The petitions were signed by David B. Wright, chief executive officer. On May 22, 2014, the U.S. Trustee for Region 17 appointed five creditors to serve in the Committee. The Committee has hired Brown Rudnick as Counsel and Teneo Securities as financial advisors. CLOUDEEVA INC: Court Dismisses Chapter 11 Bankruptcy Case --------------------------------------------------------- The Hon. Kathryn C. Ferguson of the U.S. Bankruptcy Court for the District of New Jersey dismissed the Chapter 11 bankruptcy case of Cloudeeva, Inc., fdba Systems America, Inc., and its debtor- affiliates at the behest of Bartronics Asia PTE Ltd. claiming that the cases were not filed in good faith. As reported in the Troubled Company Reporter on Aug. 25, 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 that none of BAPL's allegations of fraud, dishonesty or mismanagement are supported by competent evidence and all of which are unrelated to the operation of the Debtors' business. The Debtors deny those 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 Debtors are seeking joint administration of their Chapter 11 cases for procedural purposes. 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. COASTLINE INVESTMENT: SCG America's $19.5MM Wins Bid for Hotels --------------------------------------------------------------- The Bankruptcy Court identified the $19.5 million bid of SCG America Group or its assignees as the successful bidder for the purchase of both hotels of the Debtors. SCG America will purchase the assets for $19.5 million plus a consulting agreement with Lucy Gao. SCG is ordered to deposit an additional sum of $2,000,000 into the current escrow which, when added to the existing $2,000,000 in escrow, will constitute a non-refundable deposit in the amount of $4,000,000 for purchase of the assets. Upon the Closing, after the payments required by the order, the balance of the funds will be transferred to Levene, Neale, Bender, Yoo & Brill L.L.P., Debtors' general bankruptcy counsel, to be held in trust pending further order of the Court. As reported in the Troubled Company Reporter on July 25, 2014, each of the Debtors owns and operates a hotel in the Pomona area. The Debtors believe that each of their hotels has a fair market value of approximately $12 million, for an aggregate value of approximately $24 million. Coastline is the owner the Hilltop Hotel consisting of 130 suites located on three acres of hilltop property by Interstates 10 and 57, Cal-Poly Tech University, and the Los Angeles County fairgrounds, Fairplex. Diamond is the owner of a 161-room hotel located in Pomona, California. Diamond believes that the fair market value of the Diamond Hotel is approximately $12 million. Each of the hotels is secured by a first priority lien in the principal amount of $5,250,000. In addition, the hotels jointly serve as collateral for a junior secured obligation in the principal amount of $2,500,000. Based on the foregoing, the principal aggregate amount of the secured debt is $13 million. In addition, the unsecured debt is under $500,000. Thus, the total debt of the Debtors' estates is approximately $13,500,000. Although several offers were received with respect to the hotels, a stalking horse bidder emerged for the Diamond Hotel only. No stalking horse bidder has been approved for the Hilltop Hotel. The best offer for the purchase of the Diamond Hotel was submitted by 3200 Temple Associates, LLC. At a hearing held on June 5, the Bankruptcy Court approved Temple Associates as stalking horse bidder with an opening bid of $8,275,000, and approved certain bid procedures in connection with the sale of the Diamond Hotel. In the event that Temple Associates is not the successful final bidder of the Diamond Hotel, it will receive a breakup fee equal to $248,250, subject to the terms of the sale agreement. About Coastline and Diamond Coastline Investments, doing business as Hilltop Suites Hotel, and Diamond Waterfalls LLC, doing business as Diamond Bar Inn & Suites, filed Chapter 11 bankruptcy petitions (Bankr. C.D. Cal. Case No. 14-13028 and 14-13030) in Los Angeles on Feb. 18, 2014. The cases are jointly administered under Lead Case No. 14-30328. Coastline Investments is the owner of a hotel located at the top of a prominent hill with sweeping views in Pamona, California. The Hilltop Hotel consists of 130 suites located on three acres of hilltop property by Interstates 10 and 57, Cal-Poly Tech University, and the Los Angeles County fairgrounds, Fairplex. The Hilltop Hotel has three hotel floors along with two levels of parking and features and outdoor pool, spa, exercise fitness center, sauna, steam room and a full service restaurant, lounge, meeting spaces and a banquet ballroom to accommodate 300 guests. Diamond is the owner of a 161-room hotel located in Pomona, California. The Diamond Hotel is a full-service hotel, which includes a business center, meeting facilities, pool, spa, fitness center, steam, sauna and offices. Debtor Coastline Investments disclosed $12,002,061 in asset and $8,164,554 in liabilities as of the Chapter 11 filing. The Debtors acquired both of the hotels through voluntary Chapter 11 bankruptcy court 11 U.S.C. Sec. 363 sales in February 2012. The Hilltop Hotel was acquired from Shilo Inn, Pamona Hilltop, LLC (Case No. 11-26270) and the Diamond Hotel was acquired from Shilo Inn, Diamond Bar LLC (Case No. 10-60884). The Debtors sought bankruptcy protection after the receiver appointed for the hotels scheduled a trustee sale for both hotels. The receiver was appointed at the behest of the investor group which provided a secured loan of $2,500,000, which the Debtors defaulted. The Debtors also have loans from First General Bank each in the amount of $5,250,000. Shin-Chung Liu is the 100% membership owner and managing member of both of the Debtors. The Debtors' affairs are managed by Liberty Capital Management Corporation. Judge Richard M. Neiter has been assigned to the cases. The Debtors are represented by David B. Golubchick, and J.P. Fritz, Esq., at Levene, Neale, Bender, Yoo & Brill L.L.P., in Los Angeles, California. No committee of unsecured creditors was appointed in the case. COMPLETE LANDSCAPING: Court Dismisses Salmeron Cross-Claim ---------------------------------------------------------- U.S. Bankruptcy Judge Dale L. Somers granted the Motion of Hodge Acquisitions, L.C. to Dismiss "Amended Cross Claim" of Defendant Peter Salmeron in the case, COMPLETE LANDSCAPING SYSTEMS, INC., PLAINTIFF, v. LAURA ACKERMAN, PETER SALMERON HODGE ACQUISITIONS, L.C., et al., DEFENDANTS, Adv. Proc. No. 14-5058 (Bankr. D. Kan.). The Amended Cross-Claim was filed by Salmeron against Laura Ackerman and Hodge Acquisitions. The primary claim is a breach of contract against Ackerman. One of the contracts alleged to have breached is that described in the Debtor's Complaint as follows: "As part of the Stock Sale [on December 30, 2009] Ackerman purchased 99% of Debtor's stock from Salmeron for $448,379.99, and paid the purchase price exclusively in the form of a promissory note to Salmeron." Salmeron alleges $400,000 remains due. The second contract which Salmeron seeks to enforce is Ackerman's alleged guaranty of over $1 million of obligations of the Debtor to Salmeron. In addition to the breach of contract claim, Salmeron states a state law fraudulent transfer claim alleging that Ackerman's transfer of her interest in real property to Hodge was fraudulent as to Salmeron, such that he is entitled to execute on the real property to satisfy his future judgment on the breach of contract claim. This is the same real property which the Trustee seeks to recover in this adversary case as fruits of the Debtor's fraudulent transfers to Ackerman. Hodge is a cross-claim defendant because of his alleged interest in the real property. Hodge moves to dismiss on the basis that the bankruptcy court generally has no jurisdiction over state law claims between non- debtors, that only the Trustee may bring a fraudulent transfer claim, and that the filing of the Amended Cross-Claim constitutes a breach of fiduciary duty of Salmeron to Debtor's estate, since upon information and belief Salmeron has obtained full stock ownership of the Debtor post-petition. Salmeron responds that the Court has related to jurisdiction of the Amended Cross-Claim. The Court finds it unnecessary to address these arguments. Since the Amended Cross-Claim was filed, Ackerman has sought Chapter 11 bankruptcy protection by filing a petition, case no. 14-11683, on July 22, 2014. That bankruptcy case is also before Judge Somers. The Court held that absent relief from stay, which has not been sought, Salmeron's breach of contract claim against Ackerman must be asserted in Ackerman's bankruptcy case. Likewise, Salmeron's claim of an interest in Ackerman's real property is a claim for adjudication in Ackerman's bankruptcy case. The Amended Cross- Claim filed in Complete Landscaping Systems' adversary proceeding must therefore be dismissed because the claims asserted are within the exclusive jurisdiction of this Court in Ackerman's bankruptcy case. A copy of the Court's September 4, 2014 Memorandum Opinion and Order is available at http://is.gd/GvU6FPfrom Leagle.com. Hodge is represented by: Michael Morris, Esq. KLENDA AUSTERMAN LLC 301 N Main St #1600 Wichita, KS 67202 Tel: 316-267-0331 E-mail: jmmorris@klendalaw.com Peter Salmeron is represented by: Kurt A. Harper, Esq. SHERWOOD, HARPER, DAKAN, UNRUH & PRATT, L.C. 833 N Waco Ave Wichita, KS 67203 Tel: 316-267-1281 Complete Landscaping Systems, Inc., based in Wichita, Kansas, filed for Chapter 11 (Bankr. D. Kan. Case No. 13-12530) on September 30, 2013. Judge Dale L. Somers oversees the case. David P Eron, Esq., at Eron Law, P.A., serves as the Debtor's counsel. In its petition, the Debtor listed total assets of $1.46 million and total liabilities of $6.14 million. The petition was signed by Laura Ackerman, authorized individual. CONNEAUT LAKE PARK: Trustees Hire Bankruptcy Attorney ----------------------------------------------------- The Associated Press reported that the trustees of Conneaut Lake Park, a 122-year-old amusement park in northwestern Pennsylvania, have hired an attorney to file Chapter 11 bankruptcy in hopes of preventing a sheriff's sale of the park to satisfy more than $910,000 in overdue county, school and municipal property taxes. According to the report, the bankruptcy filing is needed to freeze the park's assets and prevent the sheriff's sale while the park maps out a plan to repay creditors all or part of the $2.5 million owed to creditors in addition to the delinquent taxes. COSTA DORADA APARTMENT: Wins Dismissal of Chapter 11 Case --------------------------------------------------------- Costa Dorada Apartment sought the dismissal of the chapter 11 case which the court granted and ordered dismissed on July 24, 2014 through Judge Enrique S. Lamoutte. On May 10, 2011, Costa Dorada Apartment filed a voluntary petition for relief under chapter 11 of the bankruptcy code. The filing stemmed for the imminent execution of a judgment against Costa Dorada Apartment's properties which was obtained through a collection of money and foreclosure proceeding brought by Scotiabank. Scotiabank afforded Costa Dorada Apartment an attempt to sell certain real properties, the proceeds of which is to be applied to the Scotiabank's secured debt. Costa Dorada Apartment's efforts coincided with the general economic recession which severally impaired the real estate industry. Thus, the minimal offers received are not sufficient for the reorganization. On January 13, 2014, Scotiabank requested the lifting of the stay in favor of creditor, in as much as the claim was not paid. Hence, for the best interest of Costa Dorada Apartment, creditors and parties in interest, the dismissal of the chapter 11 case was sought for. Costa Dorada Apartment is represented by: WIGBERTO LUGO MENDER USCPR 212304 Centro Internacional de Mercadeo 100 Carr. 165 Torre I Suite 501 Guaynabo, PR 00968 Tel: 787-707-0404 Fax: 787-707-0412 E-mail: wlugo@lugomender.com About Costa Dorada Apartments Costa Dorada Apartments Corp., dba Villas De Costa Dorada, in Isabela, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D.P.R. Case No. 11-03960) on May 10, 2011. The Debtor disclosed $10.7 million in assets and $8.6 million in liabilities as of the Chapter 11 filing. The Hon. Enrique S. Lamoutte Inclan, presides over the case. The petition was signed by Carlos R. Fernandez Rodriguez, its president. Wigberto Lugo Mender, Esq., at Lugo Mender & Co., in Guaynabo, Puerto Rico, represents the Debtor as counsel. The project Villas de Costa Dorada, consisted of 48 units complex submitted to the horizontal property regime of Puerto Rico. The project and its operation evolved and encompassed within the complex apartments owned by private parties for residential purposes and apartments dedicated to operation of a business by the debtor. The remaining apartments which were not sold were mainly used as Condo-Hotel and time sharing facility. The project was chartered by the Puerto Rico tourism department as a condo hotel facility. CUMULUS MEDIA: Unveils New Organizational Leadership Structure -------------------------------------------------------------- Cumulus Media Inc. disclosed it is putting in place a new organizational leadership structure to enhance the Company's strategic and operational focus and leverage its business platform. The announcement follows the completion of the integration of Citadel and Westwood One. Lew Dickey, chairman, president and chief executive officer of Cumulus Media, said, "Our vision has been to build the radio company of the future and that is exactly what we are achieving. Towards that end, we have strategically broadened the Company's scope and now have in place differentiated distribution channels and multiple content development platforms. To accelerate our plans, we are putting in place a new organizational structure to reflect the Company's strategic evolution, bringing clarity, focus and accountability to key leadership roles in both our station and network groups." As part of the executive organizational changes, Cumulus will be eliminating its co-chief operating officer positions, previously held by Jon Pinch and John Dickey. Mr. Pinch will be retiring at the end of November, after more than 45 years in the broadcasting industry and 14 years with Cumulus. Mr. Pinch will receive a severance payment equal to the sum of his base salary and target bonus amount, each as currently in effect, together with a cash payment equal to any performance-based bonus to which he may become entitled for 2014, pro rated through the date of his retirement, and he will be entitled to the continuation of certain health and welfare benefits. In addition, fifty percent of any unvested equity awards held by Mr. Pinch will become immediately and fully vested, and the remaining amount will terminate and be forfeited, effective at such time as Mr. Pinch ceases to be an employee of the Company. The following newly-created leadership positions will report directly to Lew Dickey. -- Executive Vice President of Radio - Cumulus has engaged executive search firm Spencer Stuart to assist in identifying an exceptional candidate for the newly-created position of executive vice president of Radio. The executive that assumes this position will be focused on providing day-to-day operational and strategic leadership of Cumulus' radio station group consisting of 460 stations in 90 U.S. markets. -- Executive Vice President of Content and Programming - John Dickey, who served as Co-COO since 2006, was named to the newly-created position of executive vice president of Content and Programming. He will focus on developing and maximizing content and programming. Establishing this focused position recognizes the critical importance of Cumulus' development and promotion of content and programming across the Company's station group, Westwood One network and other media platforms including Nash and Rdio. -- President of Westwood One - Steve Shaw, who joined Cumulus in early 2013 and served as head of national spot sales for Cumulus' station group, will serve as president of Westwood One and oversee all national and digital sales for Westwood One, Cumulus' station group and Rdio. About Cumulus Media Cumulus Media Inc. (CMLS) combines high-quality local programming with iconic, nationally syndicated media, sports and entertainment brands in order to deliver premium choices for listeners, provide substantial reach for advertisers and create opportunities for shareholders. As the largest pure-play radio broadcaster in the United States, Cumulus provides exclusive content that is fully distributed through approximately 460 owned-and-operated stations in 90 U.S. media markets (including eight of the top 10), more than 10,000 broadcast radio affiliates and numerous digital channels. Cumulus is well-positioned in the widening digital audio space through a significant stake in the Rdio digital music service, featuring 30 million songs on-demand in addition to custom playlists and exclusive curated channels. Cumulus is also the leading provider of country music and lifestyle content through its NASH brand, which will serve country fans through radio programming, NASH magazine, concerts, licensed products and television/video. For more information, visit www.cumulus.com Cumulus Media put AR Broadcasting Holdings Inc. and three other units to Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-13674) in 2011 after struggling to pay off debts that topped $97 million as of June 30, 2011. Cumulus Media reported net income attributable to common shareholders of $165.40 million in 2013 following a net loss attributable to common shareholders of $54.16 million in 2012. As of June 30, 2014, the Company had $3.79 billion in total assets, $3.27 billion in total liabilities and $526.26 million in total stockholders' equity. Bankruptcy Warning "The lenders under the Credit Agreement have taken security interests in substantially all of our consolidated assets, and we have pledged the stock of certain of our subsidiaries to secure the debt under the Credit Agreement. If the lenders accelerate the required repayment of borrowings, we may be forced to liquidate certain assets to repay all or part of such borrowings, and we cannot assure you that sufficient assets will remain after we have paid all of the borrowings under such Credit Agreement. If we were unable to repay those amounts, the lenders could proceed against the collateral granted to them to secure that indebtedness and we could be forced into bankruptcy or liquidation," the Company said in the 2013 Annual Report. * * * Standard & Poor's Ratings Services, in September 2014, revised its rating outlook on Atlanta, Ga.-based Cumulus Media Inc. to stable from positive. S&P also affirmed its 'B' corporate credit and existing debt ratings on the company. As reported by the TCR on April 3, 2013, Moody's Investors Service downgraded Cumulus Media, Inc.'s Corporate Family Rating to B2 from B1 and Probability of Default Rating to B2-PD from B1-PD. The downgrades reflect Moody's view that the pace of debt repayment and delevering will be slower than expected. Although EBITDA for 4Q2012 reflects growth over the same period in the prior year, results fell short of Moody's expectations. CYPRESS COVE: Fitch Rates $66MM Series 2012 Revenue Bonds 'BB+' --------------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to the expected issuance of $20.0 million Lee County Florida Industrial Development Authority (IDA) healthcare facilities revenue bonds series 2014 issued on behalf of Cypress Cove at HealthPark Florida, Inc. (Cypress Cove). In addition, Fitch assigns a 'BB+' rating to the following revenue bonds issued by the Lee County IDA on behalf of Cypress Cove: -- $66.0 million series 2012. The Rating Outlook is Stable. The series 2014 bonds are expected to be issued as fixed rate. Proceeds will be used to pay a portion of the costs to construct and equip a 44-unit memory care assisted living facility to be located on the existing campus, fund 14-months of capitalized interest and a debt service reserve fund and pay costs of issuance. The series 2014 bonds are expected to price the week of Sept. 15, 2014 via negotiated sale. SECURITY The bonds will be secured by a pledge of gross revenues, an assignment of the obligor's interest in a ground lease on land which the Community is located and a debt service reserve fund. KEY RATING DRIVERS IMPROVED OCCUPANCY AND ENTRANCE FEE RECEIPTS: The assignment of the 'BB+' rating reflects Cypress Cove's sharp improvement in occupancy and cash flow. Cypress Cove's net entrance fee receipts have increased significantly over the last three audited years reflecting drastically improved independent living unit (ILU) occupancy. Net entrance fee receipts increased from $4.7 million in fiscal 2011 to $13.4 million in fiscal 2013, and were $12 million through the nine-month interim period of 2014 (ended June 30, 2014). From 2011 through the nine month interim period, occupancy in Cypress Cove's 363 ILUs improved to 93.7% from a low of 75.4%. Management is expecting occupancy to be maintained at 95% over the medium term. LEE MEMORIAL HEALTH SYSTEM AFFILIATION: The sole corporate member of Cypress Cove is Lee Healthcare Resources, a support organization for both Cypress Cove and Lee Memorial Health System (LMHS), a four hospital system located in Lee County, FL. While Cypress Cove is not part of LMHS nor is LMHS in anyway obligated on Cypress Cove's debt, Fitch believes the two organizations have a close working relationship that benefits Cypress Cove both strategically and financially. Cypress Cove is located on land owned by Lee Healthcare Resources for which it pays an annual ground lease payment that is subordinate to debt service payments. Ground Lease payments were deferred when Cypress Cove was facing occupancy challenges and in a weaker financial position. Management expects lease payments to become current by 2022 and the ground lease cannot be terminated as long as Cypress Cove's debt is outstanding. HIGH PRO-FORMA DEBT BURDEN: Cypress Cove's pro forma total debt outstanding will equal approximately $86 million upon closing of the series 2014 issue. Pro-forma maximum annual debt service (MADS) is estimated at $5.7 million which equates to a high 17.2% of 2014 total annualized revenues based on the nine-month interim results. Historical pro-forma coverage of MADS has been strong at 2.0x and 2.5x in fiscal 2012 and 2013 reflecting the sharp increase in occupancy and entrance fee receipts. Fitch expects coverage to normalize around 2.0x over the medium term. WEAK LIQUIDITY METRICS: Since fiscal year end 2011, Cypress Cove has grown its unrestricted cash and investments position from $10.4 million to $22.1 million at June 30th, 2014. Cypress Cove's key liquidity indicators (including days cash on hand of 293.7, pro-forma cushion ratio of 3.8x and cash-to-pro-forma debt of 25.7%) although improved are weak for the rating level. Further, management projects the absolute level of cash and investment to remain steady at approximately $20.0 million over the next four years as cash flow is used to reinvest in capital improvements to the community. Thus, while cushion and cash to debt ratios should be maintained, days cash hand is expected to decline to 207 in 2018. COMPETITIVE SERVICE AREA: Cypress Cove is located approximately seven miles away from Shell Point Retirement Communities, a 1,204 ILU continuing care retirement community. While Shell Point is Cypress Cove's largest competitor it does not offer a dedicated Memory Care facility, which should help Cypress Cove's marketing and sales efforts going forward. RATING SENSITIVITIES SUSTAINED OPERATING PERFORMANCE: Management intends to use cash flow from operations to reinvest in the community over the next 3- 4 years. As a result, Cypress Cove does not expect to grow its unrestricted cash and investment position from current levels. Upward movement of the rating is unlikely and would be predicated on strengthening its liquidity position and metrics which are more consistent with 'BBB' category medians as well as a moderation in its debt burden. Any erosion in occupancy or compression in profitability that would weaken debt service coverage from projections would likely pressure the rating. SUCCESSFUL COMPLETION OF CAPITAL PROJECT: Fitch expects Cypress Cove to complete their Memory Care project on time and on budget. Any material deviations from the proposed project scope that materially impacts Cypress Cove's financial position may lead to negative rating pressure. CREDIT PROFILE Located in Fort Myers, FL Cypress Cove is primarily a type-A continuing care retirement community consisting of 333 ILU apartments, 30 ILU villas, 44 ALU apartments and a 64 bed skilled nursing facility. The Community opened in 1999 and is situated on a 48-acre parcel of land that is part of 402-acre master development called HealthPark Florida which also features the HealthPark Medical Center (a 368-bed acute care hospital), part of LMHS. In fiscal 2013 Cypress Cove generated total revenues of $25.4 million. IMPROVED OCCUPANCY AND ENTRANCE FEE RECEIPTS Cypress Cove has experienced a sharp increase in net entrance fee receipts over the last three audited years as the community has benefited from an improving real estate market combined with more effective marketing strategies. Net entrance fee receipts increased from $4.7 million in fiscal 2011 to $13.4 million in fiscal 2013, and were $12 million through the nine-month interim period of 2014 (ended June 30, 2014). From 2011 through the nine month interim period, occupancy in Cypress Cove's 363 ILUs improved to 93.7% from a low of 75.4%. Cypress Cove maintains a waitlist which totaled 61 interested parties that have paid a $5,000 deposit. Turnover in the ILUs has averaged between 36-40 units per year over the last four years or roughly 11-13%. Management expects ILU occupancy to stabilize at 95% over the medium term. Occupancy in the ALUs and SNFs has been solid over the last three fiscal years ranging between 90%-95% in each year, respectively. The Memory Care Project consists of a 38,000 square foot two story building containing 44 all-private assisted living memory care units. The facility's design will be based on the neighborhood care model and will feature four distinct households consisting of 11 residential units each. Cypress Cove has signed a Guaranteed Maximum Price contract with the construction manager for the project which also includes payment and performance bonds and provision for liquidated damages. According to management, Cypress Cove's main competitors do not offer separate memory care services and there is a growing demand for that service line. Fitch believes that the project will be accretive to Cypress Cove over the medium to long term, as the community demand for memory care services continues to increase. Moreover, upon opening of the project Cypress Cove should be able to transfer certain residents from within the community which should allow for additional turnover of existing ILUs. HIGH PRO-FORMA DEBT BURDEN Cypress Cove's pro forma total debt outstanding will equal approximately $86 million upon closing of the series 2014 issue. Pro-forma maximum annual debt service (MADS) is estimated at $5.7 million which equates to a high 17.2% of 2014 total annualized revenues based on the nine-month interim results. The Ground Lease expense was $914,000 in fiscal 2012 and $1.05 million in fiscal 2013. Given the subordination of the ground lease payment to debt service, Fitch has added back the lease expense to revenues available for debt service in calculating historical pro- forma MADS coverage. Historical pro-forma coverage of MADS has been strong at 2.0x and 2.5x in fiscal 20112 and 2013 reflecting the sharp increase in occupancy and entrance fee receipts. Through the nine month interim period, coverage of pro-forma MADS coverage improved to 3.9x. Historical operating profitability excluding turnover entrance fee receipts has been weak as measured by operating ratio and net operating margin. In fiscal 2013, Cypress Cove posted an operating ratio of 120.9% and a net operating margin (NOM) of - 3.0% which are weak compared a 'BB' category peer group. Through the nine month interim period, operating ratio and NOM improved to 114% 3% and 0.4%, respectively. Fitch notes that operating ratio and NOM reflect the impact of Cypress Cove's fully amortizing lifecare contracts, higher expenses related to improving occupancy of the ILUs and the expenses related to the ground lease and management fees paid. Net operating margin-adjusted of 37.3% in 2013 and 40.8% through the nine-month interim period reflect the strong entrance fee receipts collected. Given Cypress Cove's current ILU occupancy, Fitch expects NOM-adjusted to normalize at around 25% going forward which should generate coverage of around 2.0x over the medium term. WEAK LIQUIDITY POSITION Since fiscal year end 2011, Cypress Cove has grown its unrestricted cash and investments position from $10.4 million to $22.1 million at June 30th, 2014. Cypress' key liquidity indicators (including days cash on hand of 293.7, pro-forma cushion ratio of 3.8x and cash-to-pro-forma debt of 25.7%) although improved are weak for the rating level. However, further liquidity growth was inhibited in 2013 by management's decision to make a $4.0 million payment towards deferred ground lease payable and a $750,000 repayment of an outstanding line of credit. As of June 30, Cypress had a $6.4 million deferred ground lease payable liability and $0 outstanding under a $2.0 million line of credit. Management projects the absolute level of cash and investment to remain steady at approximately $20.0 million over the next four years as cash flow is used to reinvest in capital improvements to the community. In addition, management expects to make annual payments of the ground lease as well as pay down the outstanding amounts under the deferred ground lease payable by fiscal 2022. Thus, while cushion and cash to debt ratios should be maintained, days cash on hand is expected to decline to 207 in 2018. ONGOING DISCLOSURE Cypress Cove is expected to provide audited financials within [120] days of its fiscal year end and quarterly unaudited financials within [45] days of its fiscal quarter end to the EMMA system, which includes balance sheet, income statement and statement of cash flow, covenant performance, and occupancy statistics. DETROIT, MI: Judge Puts Off Decision on Water Shut Offs ------------------------------------------------------- Karen Pierog, writing for Reuters, reported that U.S. Bankruptcy Judge Steven Rhodes has ordered the city of Detroit and civil rights attorneys into two weeks of confidential mediation over the city's practice of shutting off water to residents with unpaid bills. According to the report, Judge Rhodes will announce on Sept. 17 whether he will issue a temporary restraining order on Detroit's controversial attempt to reduce its $90 million backlog of unpaid water bills. 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. DETROIT, MI: Files 6th Amended Plan for Adjustment of Debts ----------------------------------------------------------- The City of Detroit, Michigan filed on Aug. 20, 2014, its Sixth Amended Plan for the Adjustment of Debts. The Plan contemplates, as part of its implementation, that the city will obtain exit financing through the insurance of financial recovery bonds. On Aug. 27, 2014, the City executed a commitment letter with Barclays Capital Inc., which, among other items, includes a commitment from Barclays to provide up to $275 million in exit financing. A copy of a document showing the terms of the exit facility is available for free at: http://bankrupt.com/misc/CDETROIT_7167_exitfacility.pdf Postpetition Financing Meanwhile, the City filed a notice amended order in connection with motion for an order approving postpetition financing. The amended order provides for, among other things: i) authorization for the City and the Detroit Water and Sewer Department (DWSD), a department of the City, to: a) enter into and perform under: (1) a Bond Purchase Agreement for water supply system bonds by and among the Michigan Finance Authority and Citigroup Global Markets, Inc., acting on behalf of itself and as representative of the other underwriters named therein to be underwritten and publicly offered by the Underwriter, the proceeds of which will be used by the MFA solely to purchase the 2014 DWSD Revenue and Revenue Refunding Bonds; (2) a Bond Purchase Agreement for sewage disposal system bonds by and among the MFA and the Underwriter; (3) a purchase contract for water supply system bonds between the MFA and the City; (4) a purchase contract for sewage disposal system bonds between the MFA and the City; (5) a bond purchase and supplemental agreement for water supply system bonds by and among the MFA, DWSD, Citibank, N.A. and certain other banks to be named, together with one or more purchasers; (6) a bond purchase and supplemental agreement for sewage disposal system bonds by and among the MFA, DWSD, Citibank, N.A. and certain other banks to be named, together with one or more purchasers; (7) the Assured Insurance Commitment provided by Assured Guaranty Municipal Corp., formerly known as Financial Security Assurance Inc.; (8) the 2014 DWSD Refunding Bonds Insurance Policies in an amount not less than the principal amount of the outstanding Assured-insured Tendered Bonds, substantially on the terms set forth in the Motion and the Assured Insurance Commitment; (9) the 2014 DWSD Refunding Bonds Surety Policies as to reserve accounts that secure exclusively the Assured-insured 2014 DWSD Revenue and Revenue Refunding Bonds in a principal amount equal to the DSRF requirement substantially on the terms set forth in the Assured Insurance Commitment; and (10) a commitment provided by National Public Finance Guarantee Corporation to insure certain of the 2014 DWSD Revenue and Revenue Refunding Bonds; b) issue, via a public offering or a private placement, one or more series of Sewage Disposal System Revenue Bonds, Sewage Disposal System Revenue Refunding Bonds and Water Supply System Revenue Refunding Bonds. A copy of the Amended Order is available for free at http://bankrupt.com/misc/CDETROIT_7016_financing_Aord.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. DETROIT, MI: S&P Hikes Rating on 5 CUSIPs of Rev. Bonds From 'D' ---------------------------------------------------------------- Standard & Poor's Ratings Services, on Sept. 5, 2014, raised its ratings on five bond CUSIPs of Detroit's outstanding sewerage disposal and water supply revenue bonds to 'BBB+' from 'D' as S&P indicated it would do in its report dated Aug. 28, 2014. The outlook is stable. "We assigned our 'BBB+' rating to these specific bond CUSIPs after closing of the Michigan Finance Authority (MFA) series 2014C and D bonds because now, the only outstanding portion of the bond CUSIPs are the untendered portion not considered subject to a distressed exchange," explained Standard & Poor's credit analyst Scott Garrigan. S&P also has a 'BBB+' rating on both the MFA series 2014C and D bonds and other sewer and water revenue bonds issued by Detroit. These bond CUSIPs were previously considered subject to a distressed exchange, because some portion of each bond CUSIP was purchased below par pursuant to a tender offer, which was financed by the MFA series 2014C and D bonds, and the bond CUSIPs were considered impaired for most of the duration of the tender invitation period that ended on Aug. 21, 2014. ECOSPHERE TECHNOLOGIES: Has $2.43-Mil. Net Loss for 2nd Quarter --------------------------------------------------------------- Ecosphere Technologies, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $2.43 million on $3,571 of total revenues for the three months ended June 30, 2014, compared with a net income of $27.29 million on $976,118 of total revenues for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $16.73 million in total assets, $2.96 million in total liabilities, total redeemable convertible cumulative preferred stock of $3.76 million and total stockholders' equity of $10 million. A copy of the Form 10-Q is available at: http://is.gd/mBaoHq About Ecosphere Technologies Stuart, Florida-based Ecosphere Technologies (OTC BB: ESPH) -- http://www.ecospheretech.com/-- is a water engineering, technology licensing and environmental services company that designs, develops and manufactures wastewater treatment solutions for industrial markets. Ecosphere, through its majority-owned subsidiary Ecosphere Energy Services, LLC, provides energy exploration companies with an onsite, chemical free method to kill bacteria and reduce scaling during fracturing and flowback operations. Ecosphere Technologies reported net income of $19.16 million in 2013 following net income of $1.05 million in 2012. Salberg & Company, P.A., in Boca Raton, 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 loss from operations and cash used in operations along with an accumulated deficit. These matters raise substantial doubt about the Company's ability to continue as a going concern. ELEPHANT TALK: Posts $4.61-Mil. Net Loss in Q2 Ended June 30 ------------------------------------------------------------ Elephant Talk Communications Corp. filed its quarterly report on Form 10-Q, disclosing a net loss of $4.61 million on $6.91 million of revenues for the three months ended June 30, 2014, compared with a net loss of $7.69 million on $4.99 million of revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $44.7 million in total assets, $23.2 million in total liabilities and total stockholders' equity of $21.5 million. A copy of the Form 10-Q is available at: http://is.gd/Flz6tu Elephant Talk Communications Corp. designs and supplies Software Defined Network Architecture platforms to the telecommunication providers. The Oklahoma City-based Company serves a wide range of Mobile Network Operators, including Vodafone, Zain, and T-Mobile. ELTRON SUPPLY: Schneider Liable to Philips Lighting for $240,000 ---------------------------------------------------------------- The U.S. District Court for the Eastern District of New York on July 2, 2014, issued a memorandum and order denying Barry A. Schneider's second motion, pursuant to Rule 60 of the Federal Rules of Civil Procedure, to vacate the District Court's earlier order granting Philips Lighting Company summary judgment and stay execution of judgment in connection with a 1985 agreement in which Schneider agreed to personally guarantee certain debts of debtor Eltron Supply, Ltd. The Court reserved decision as to the amount of damages and requested further briefing because it appeared that Philips pursued an inflated damages figure and the Court had not been fully apprised of amounts Philips received from Eltron's bankruptcy estate in satisfaction of the debt. In its earlier ruling, the District Court concluded that Schneider is liable on half of the debt owed by Eltron. In its Aug. 1, 2014 letter to the Court, Philips maintains that Eltron's debt to it is $578,635. However, the evidence before the Court shows that on July 19, 2004, Philips stipulated with Eltron's bankruptcy trustee that Eltron owed it $468,635. Although Philips has omitted any mention of this stipulation from its August 1, 2014 statement on damages, the stipulation itself is in the record. The Court holds Philips to its stipulation. In its Aug. 1, 2014 letter, Philips admits that it received distributions in the amount of $46,864 and $9,373 from the Eltron bankruptcy estate, in satisfaction of Eltron's debt. According to District Judge Sandra L. Townes, $56,236 is subtracted from the initial $468,635 debt, leaving a total of $412,399. Judge Townes ruled that Schneider is liable to Philips for half of that amount: $206,199 plus $35,782 in attorney's fees, plus 9% interest per annum from Feb. 2, 2007 until the date of entry of judgment, Oct. 10, 2008. A copy of Judge Townes' Aug. 28, 2014 Memorandum and Order is available at http://tinyurl.com/mfd889vfrom Leagle.com. The case is, PHILIPS LIGHTING COMPANY, a division of Philips Electronics North America Corporation, Plaintiff, v. BARRY A. SCHNEIDER, Defendant, NO. 05-CV-4820 (SLT) (MDG) (E.D.N.Y.). Philips Lighting Company is represented by: Brian D. Spector, Esq. Douglas A. Goldstein, Esq. SPECTOR & EHRENWORTH, P.C. 30 Columbia Turnpike, Suite 202 Florham Park, NJ 07932-2261 Tel: 973-593-4800 x116 Fax: 973-593-4848 E-mail: bspector@selawfirm.com dgoldstein@selawfirm.com Barry A. Schneider is represented by: Alan M. Lebensfeld, Esq. LEBENSFELD BORKER SUSSMAN & SHARON LLP 140 Broad StreetRed Bank, NJ, 07701 Tel: (732) 530-4600 Fax: (732) 530-4601 Eltron filed for Chapter 11 bankruptcy on Dec. 16, 2002. EDGENET INC: Seeks Until Nov. 13 to File Ch. 11 Plan ---------------------------------------------------- El Wind Down, Inc., f/k/a Edgenet Inc., and EHC Holding Wind Down Corp., f/k/a Edgenet Holding Corporation, ask the U.S. Bankruptcy Court for the District of Delaware to extend until Nov. 13, 2014, their exclusive right to file a Chapter 11 plan, and until Jan. 9, 2015, their exclusive right to solicit acceptances of that plan. The Debtors said in court papers that the additional time will allow for the resolution of the issue of Ernest Han-ping Wu's alleged security interest and address other pressing issues. The Debtors initiated an adversary proceeding against Mr. Wu, the representative of certain owners as defined the an acquisition agreement and plan of merger among Edgenet Holding Corporation, Edgenet Acquisition Corp., Edgenet, Inc., and certain owners of Edgenet Inc., seeking avoidance of a preferential transfer and avoidance of a security interest. The Debtors add that during the additional time, they are hopeful the outcome of the Wu Adversary will be decided, thereby providing them with the necessary information as to how to structure any plan it may file. A hearing on the Debtors' extension request is scheduled for Sept. 29, 2014, at 9:30 a.m. Objections are due Sept. 18. The Debtors are represented by Raymond H. Lemisch, Esq., Domenic E. Pacitti, Esq., and Margaret M. Manning, Esq., at Klehr Harrison Harvey Branzburg LLP, in Wilmington, Delaware; and Morton R. Branzburg, Esq., at Klehr Harrison Harvey Branzburg LLP, in Philadelphia, Pennsylvania. About Edgenet Inc. Edgenet, Inc., and Edgenet Holding Corp. are providers of cloud- based content and applications that enable companies to sell more products and services with greater ease across multiple channels and devices. Edgenet has three business locations: Waukesha, WI, Brentwood, TN, and its main office in Atlanta, GA. Edgenet Inc. and Edgenet Holding filed for Chapter 11 bankruptcy protection in Delaware (Lead Case No. 14-10066) on Jan. 14, 2014. Edgenet Inc. estimated assets of at least $10 million and liabilities of $100 million to $500 million. Raymond Howard Lemisch, Esq., at Klehr Harrison Harvey Branzburg LLP, in Wilmington, Delaware, serves as counsel to the Debtors; Glass Ratner Advisory & Capital Group LLC is the financial advisor; JMP Securities, LLC, is the investment banker, and Phase Eleven Consultants, LLC, is the claims and noticing agent. The U.S. Trustee did not form an official unsecured creditors committee as no sufficient interest has been generated from creditors. Fred Marxer, Timothy Choate and Davis Carr, individuals and holders of a segment of the promissory notes issued in 2004 that have been referred to by Edgenet, Inc., et al., requested that the Court issue an order appointing an official committee of Seller Noteholders, or in the alternative, an official committee of unsecured creditors, with members appointed from the Seller Noteholders who agree to waive any continued security interest arising from the Seller Notes. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed on March 13, 2014, five noteholders to serve on the Official Committee of Note Holders. In May, Bankruptcy Judge Brendan L. Shannon denied Edgenet Inc., et al.'s motion to disband the Noteholders Committee. The Noteholders Committee has retained Morris James LLP's Jeffrey R. Waxman, Esq.; and Cooley LLP's Cathey Hershcopf, Esq., and Jeffrey L. Cohen, Esq., as co-counsel to the Committee. An auction of the Debtors' assets was held on June 6, 2014, and EdgeAQ, L.L.C., was declared the successful bidder. The Bankruptcy Court approved the sale on June 12, and the sale closed on June 16. Edgenet Inc. changed its name to El Wind Down, Inc., and Edgenet Holding Corporation to EHC Holding Wind Down Corp. ENDEAVOUR INT'L: Misses Interest Payments, Cut by S&P to 'D' ------------------------------------------------------------ Standard & Poor's Rating Services lowered its corporate credit on Endeavour International Corp. to 'D' from 'CCC' and the issue- level ratings on the company's first-priority notes and second- priority notes to 'D' from 'CCC-' and 'CC', respectively. The 'D' ratings reflect missed interest payments and S&P's expectation that payments will not be made on the company's 12% first-priority notes due March 2018 and 12% second-priority notes due June 2018. At the same time, S&P revised the recovery rating on the first- priority notes to '4' from '5'. S&P also revised its recovery rating on the second-priority notes to '5' from '6'. The downgrade is a result of the company's decision not to pay approximately $33.5 million in interest that was due on Sept. 2, 2014, on its 12% first priority notes due March 2018, 12% second priority notes due June 2018, and 6.5% convertible senior notes due November 2017. S&P do not rate the convertible notes. The company has entered into a 30-day grace period during which it could make the interest payments. The company is engaged with representatives of certain holders of its various classes of debt regarding the potential terms under which its debt could be restructured to deleverage the company. If the company decides not to make the payments by the end of the grace period, the requisite holders of the notes could accelerate the repayment of the principal due. This would result in cross- defaults to other debt of the company and its subsidiaries. ERNIE HAIRE FORD: 11th Cir. Affirms 2nd Amended Plan Modification ----------------------------------------------------------------- The U.S. Court of Appeals, Eleventh Circuit tossed Benjamin Atkinson's appeal from the district court's affirmance of the bankruptcy court's orders granting Ernie Haire Ford, Inc.'s motion to modify its Second Amended and Restated Chapter 11 Plan and confirming the Debtor's Third Amended Plan of Reorganization. "Because Atkinson's interest in avoiding liability is not an interest protected or regulated by the Bankruptcy Code, he has failed to satisfy our person aggrieved standard. Accordingly, we affirm," the Eleventh Circuit said. The Debtor, a licensed Ford dealer operating in Hillsborough County, Florida, filed for Chapter 11 bankruptcy on November 24, 2008. The Debtor's Second Plan was confirmed by the bankruptcy court on October 14, 2009. Among other things, the Second Plan empowered a liquidating agent, at its discretion, to sue third parties alleged to owe money to the bankruptcy estate. The Second Plan also provided that "[a]ll Litigation not already pending at the time of the Effective Date shall be brought prior to the Litigation Bar Date or shall be conclusively deemed waived or abandoned." Additionally, the Second Plan allowed the bankruptcy court to "enjoin any Person from commencing, instituting, or pursuing a suit, action, or claim . . . that is barred pursuant to the Plan" upon the request of "any defendant." Atkinson is a former creditor who was employed by the Debtor from 1999 through 2005. In 2006 a jury awarded Atkinson a judgment against the Debtor, but Atkinson was unable to recover because the Debtor filed for bankruptcy while an appeal was still pending. Atkinson originally filed a proof of claim with the bankruptcy court and spent a period of time serving on the Creditor's Committee that appointed the liquidating agent. However, he withdrew his proof of claim on October 27, 2011 and resigned from the Committee in January 2012. On December 30, 2011, well after the passage of the Litigation Bar Date, the liquidating agent named Atkinson as a defendant in 16 adversary proceedings alleging claims of fraud and misappropriation related to Atkinson's employment. Atkinson moved to enjoin the liquidating agent from proceeding with these claims on the grounds that they were filed after the Litigation Bar Date. In response, the Debtor filed a motion to modify the Second Plan that sought to amend the definition of the Litigation Bar Date to allow the adversary proceedings against Atkinson to go forward. The bankruptcy court heard the Debtor's motion during a hearing held on March 6, 2012 and announced its ruling three days later on March 9. The bankruptcy court determined that a modification could occur based on its finding that the Second Plan had not been substantially consummated because the Debtor still controlled a number of assets -- valued between $2 million and $3 million -- that were required to be sold under the Second Plan. The Debtor subsequently filed its Third Plan, which modified the Litigation Bar Date to allow the adversary proceedings against Atkinson to go forward. The bankruptcy court confirmed the Third Plan at a hearing on June 5, 2012 and entered an order on June 21, 2012. On appeal, the district court affirmed the bankruptcy court's grant of the motion to modify and subsequent confirmation of the Third Plan. Atkinson elevated the matter to the Appeals Court. The case is, BENJAMIN ATKINSON, Plaintiff-Appellant, v. ERNIE HAIRE FORD, INC., Defendant-Appellee, No. 13-11810 (11th Cir.). A copy of the Eleventh Circuit's September 4, 2014 decision is available at http://is.gd/ea4KDMfrom Leagle.com Headquartered in Tampa, Florida, Ernie Haire Ford, Inc. -- http://ernie-haireford.dealerconnection.com-- has been a Ford dealer for about 38 years. The Company also sells used and new automobiles. Ernie Haire Ford does business as Ernie Harie Megavolume Superstore, BigDog Motorcycles of Tampa, Quicklane Tire & Auto Center, Ernie Haire Used Car Supercenter of Tampa, Ernie Haire Used Car Auto Mall, and Indian Motorcycle of Tampa. The Company filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 08-18672) on Nov. 24, 2008. Attorneys at G. T. Hodges, P.A., represented the Debtor in its restructuring effort. When the Debtor filed for protection from its creditors, it listed assets and debts of $10 million to $50 million each. Elder Automotive Group won the right to acquire the Company in an auction in August 2009. Elder Automotive paid $6.5 million for Ernie Haire, including a $3.5 million payment to the bankruptcy estate. EVOLUCIA INC: Has $854K Net Loss in Second Quarter -------------------------------------------------- Evolucia, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $854,034 on $180,076 of sales for the three months ended June 30, 2014, compared with a net loss of $3.29 million on $406,776 of sales for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $1.32 million in total assets, $11.56 million in total liabilities, and a stockholders' deficit of $10.24 million. A copy of the Form 10-Q is available at: http://is.gd/bB3efA Evolucia, Inc., engages in the business of designing, manufacturing, marketing and distributing light emitting diode lighting fixtures. It also produces and sells several products that provide LED lighting solutions for roadways and walkways, parking lots and garages and other area lighting solutions. The company was founded in 2007 and is headquartered in Sarasota, Florida. FL 6801 SPIRITS: General Claims Bar Date Set for September 12 ------------------------------------------------------------- In the Chapter 11 case of FL 6801 Spirits, Judge Shelley C. Chapman entered an order setting the general claim bar date on September 12, 2014 at 5:00 pm Eastern Time. In addition, December 1, 2014 is set as the government unit bar date. On June 1, 2014, the debtors filed a voluntary petition for relief under chapter 11 of the bankruptcy code. The debtors continue to manage and operate their businesses with no committee appointed for unsecured creditors. On the same day the debtors filed their petition, the debtors sought approval of the sale of substantially all of their assets to 360 Miami Hotel and Spa LLC. The court, on July 1, 2014, approved the bidding procedures and bid protections in connection with the sale. Thus, in order to complete the chapter 11 process and make distributions to creditors, the complete and accurate information regarding the nature, validity, classification and amount of claims is required. Hence, Togut, Segal & Segal, attorneys for the debtor, filed the motion to set bar dates on July 9, 2014. FL 6801 Spirits is represented by: TOGUT, SEGAL & SEGAL LLP Frank A. Oswald, Esq. One Penn Plaza, Suite 3335 New York, NY 10119 Tel: 212-594-5000 About FL 6801 Spirits FL 6801 Spirits LLC, a wholly owned subsidiary of Lehman Brothers Holdings Inc. and three of its wholly owned subsidiaries filed voluntary Chapter 11 petitions, seeking bankruptcy protection for their condominium hotel property in Miami Beach. The affiliates are FL 6801 Collins North LLC, FL 6801 Collins Central LLC, and FL 6801 Collins South LLC. FL Spirits' Canyon Ranch Living Hotel and Spa is a luxury full- service, ocean front condominium hotel located at the site of the old Carillon Hotel in Miami Beach, Florida. The current operator of the hotel, Canyon Ranch Living, is not a debtor, and operations at the property are expected to continue without interruption. FL Spirits and the three affiliates companies have sought joint administration, with pleadings to be maintained at FL 6801's case docket (Bankr. S.D.N.Y. Lead Case No. 14-11691). FL Spirits has tapped Togut, Segal & Segal LLP as general bankruptcy counsel, Shutts & Bowen LLP as special real estate counsel, CBRE, Inc., as real estate broker, and Prime Clerk as claims and notice agent. Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Lehman's Chapter 11 plan became effective on March 6, 2012. * * * FL Spirits is pursuing a sale process for the hotel property under 11 U.S.C. Sec. 363 where 360 Miami Hotel & Spa LLC will be the stalking horse bidder. The purchaser will acquire the hotel lot (including the spa) and 13 condominium units for $12 million, absent higher and better offers. Upon a successful closing of the transaction, the project will be managed by the Enchantment Group, an operator of award-winning resorts and destination spas, including Mii amo, a destination spa at Enchantment Resort. FL 6801 SPIRITS: Files Schedules of Assets and Liabilities ---------------------------------------------------------- FL 6801 Spirits LLC filed with the U.S. Bankruptcy Court for the Southern District of New York its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $0 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $1,684,221 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $1,369,635 ----------- ----------- TOTAL $0 $3,053,856 The Debtor filed its Schedules on July 30, 2014. The Debtor previously sought and obtained an extension of the deadline to file its Schedules as well as Statements of Affairs. About FL 6801 Spirits FL 6801 Spirits LLC, a wholly owned subsidiary of Lehman Brothers Holdings Inc. and three of its wholly owned subsidiaries filed voluntary Chapter 11 petitions, seeking bankruptcy protection for their condominium hotel property in Miami Beach. The affiliates are FL 6801 Collins North LLC, FL 6801 Collins Central LLC, and FL 6801 Collins South LLC. FL Spirits' Canyon Ranch Living Hotel and Spa is a luxury full- service, ocean front condominium hotel located at the site of the old Carillon Hotel in Miami Beach, Florida. The current operator of the hotel, Canyon Ranch Living, is not a debtor, and operations at the property are expected to continue without interruption. FL Spirits and the three affiliates companies have sought joint administration, with pleadings to be maintained at FL 6801's case docket (Bankr. S.D.N.Y. Lead Case No. 14-11691). FL Spirits has tapped Togut, Segal & Segal LLP as general bankruptcy counsel, Shutts & Bowen LLP as special real estate counsel, CBRE, Inc., as real estate broker, and Prime Clerk as claims and notice agent. Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Lehman's Chapter 11 plan became effective on March 6, 2012. FLORIDA GAMING: Creditor Trustee Hires Salazar Jackson as Counsel ----------------------------------------------------------------- Soneet R. Kapila, the Creditor Trustee of the Florida Gaming Creditor Trust, seeks authorization from the U.S. Bankruptcy for the Southern District of Florida to employ Salazar Jackson, LLP as general counsel for the Creditor Trustee, nunc pro tunc to Aug. 6, 2014. The Creditor Trustee requires Salazar Jackson to: (a) give advice to the Creditor Trustee with respect to the management of the Creditor Trust; (b) prepare motions, pleadings, orders, applications, and other legal documents necessary in the administration of the Creditor Trust; (c) protect the interests of the Creditor Trust in all matters pending before the Court and before other Courts; and (d) advise the Creditor Trustee regarding the orderly administration of the Creditor Trust, to, among other things, maximize distributions to beneficiaries. Salazar Jackson will be paid at these hourly rates: Luis Salazar $450 Linda Jackson $450 Jesse R. Cloyd $350 Celi S. Aguilar $285 Ali-Marcelle Lee-Sin $140 Partners $450 Of Counsel $350-$425 Associates $285-$375 Law Clerks $210-$270 Paralegals $120-$185 Salazar Jackson will also be reimbursed for reasonable out-of- pocket expenses incurred. Luis Salazar, co-founder and partner of Salazar Jackson, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Salazar Jackson can be reached at: Luis Salazar, Esq. SALAZAR JACKSON LLP Two S. Biscayne Blvd., Ste. 3760 Miami, FL 33131 Tel: (305) 374-4848 Fax: (305) 397-1021 E-mail: Salazar@SalazarJackson.com About Florida Gaming Florida Gaming Centers Inc. filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 13-29597) in Miami on Aug. 19, 2013. Florida Gaming Centers operates a casino and jai-alai frontons in Miami. The Company disclosed debt of $138.3 million and assets of $180 million in its petition. Its parent, Florida Gaming Corp. (FGMG:US), and two other affiliates also sought court protection. Bankruptcy Judge Robert A. Mark oversees the case. The Debtors are represented by Luis Salazar, Esq. and Jesse R. Cloyd, Esq. at Salazar Jackson, LLP of Miami, Florida. ABC Funding, LLC, as Administrative Agent for a consortium of prepetition lenders, and the prepetition lenders are represented by Dennis Twomey, Esq., and Andrew F. O'Neill, Esq., at SIDLEY AUSTIN LLP, in Chicago, Illinois; and Drew M. Dillworth, Esq., and Marissa D. Kelley, Esq., at Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A., in Miami, Florida. The Prepetition Lenders are Summit Partners Subordinated Debt Fund IV-A, L.P., Summit Partners Subordinated Debt Fund IV-B, L.P., JPMorgan Chase Bank, N.A., Locust Street Funding LLC, Canyon Value Realization Fund, L.P., Canyon Value Realization Master Fund, L.P., Canyon Distressed Opportunity Master Fund, L.P., and Canyon-GRF Master Fund II, L.P. Counsel to the Official Joint Committee of Unsecured Creditors are Glenn D. Moses, Esq., and Paul J. Battista, Esq., at Genovese Joblove & Battista, P.A., in Miami, Florida. * * * The Debtors have sold their assets to Fronton Holdings, LLC, an entity established by ABC Funding. The $140,000,000 purchase price consisted of a credit bid of $99,907,336 on account of the Loan Claim and cash in the amount of $40,092,664. The Bankruptcy Court approved the sale on April 7, 2014. The parties consummated the 363 Sale on April 30. The Debtors have submitted to the Bankruptcy Court a Disclosure Statement explaining their Second Amended Joint Plan of Liquidation dated June 16, 2014. The Plan serves as a separate plan of liquidation for each of the Debtors. The Plan does not seek to effect a substantive consolidation or other combination of the separate estates of each Debtor but instead provides that creditors of each Debtor will be permitted to assert their claims only against the Debtor(s) which they hold Allowed Claims. The Bankruptcy Court on July 23, 2014, entered an order confirming Florida Gaming Corporation and its subsidiary, Florida Gaming Centers, Inc.'s Second Amended Joint Chapter 11 Plan of Liquidation dated July 16, 2014. FLORIDA GAMING: Creditor Trustee Taps KapilaMukamal as Advisors --------------------------------------------------------------- Soneet R. Kapila, the Creditor Trustee of the Florida Gaming Creditor Trust, seeks authorization from the U.S. Bankruptcy for the Southern District of Florida to employ KapilaMukamal, LLP as financial consultants and accountants to the Creditor Trustee, nunc pro tunc to Aug. 6, 2014. The Creditor Trustee seeks to retain KapilaMukamal in connection with this case because he believes the firm is well qualified to act as its financial consultant and accountant. The professional services that KapilaMukamal is expected to render to the Creditor Trustee include, but are not limited to, the following: (a) provide financial consulting and accounting services and oversee the financial operating and other reports required by the Bankruptcy Court, the Office of the United States Trustee, and other parties in interest in these Chapter 11 cases; (b) evaluate and analyze tax issues, including, without limitation, compliance and reporting requirements and related issues; (c) provide litigation support and testimony, as necessary, with respect to the matters on which KapilaMukamal is to be engaged; and (d) provide such other financial consulting and accounting services as may from time to time, be reasonable and necessary, as requested by the Creditor Trust. KapilaMukamal will be paid at these hourly rates: Partners $380-$530 Professionals $120-$314 Para Professionals $120-$160 KapilaMukamal will also be reimbursed for reasonable out-of-pocket expenses incurred. Melissa Davis, partner of KapilaMukamal, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. KapilaMukamal can be reached at: Melissa Davis KAPILAMUKAMAL, LLP 1000 South Federal Hwy., Ste. 200 Fort Lauderdale, FL 33316 Tel: (954) 761-1011 Fax: (954) 761-1033 E-mail: mdavis@kapilaco.com About Florida Gaming Florida Gaming Centers Inc. filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 13-29597) in Miami on Aug. 19, 2013. Florida Gaming Centers operates a casino and jai-alai frontons in Miami. The Company disclosed debt of $138.3 million and assets of $180 million in its petition. Its parent, Florida Gaming Corp. (FGMG:US), and two other affiliates also sought court protection. Bankruptcy Judge Robert A. Mark oversees the case. The Debtors are represented by Luis Salazar, Esq. and Jesse R. Cloyd, Esq. at Salazar Jackson, LLP of Miami, Florida. ABC Funding, LLC, as Administrative Agent for a consortium of prepetition lenders, and the prepetition lenders are represented by Dennis Twomey, Esq., and Andrew F. O'Neill, Esq., at SIDLEY AUSTIN LLP, in Chicago, Illinois; and Drew M. Dillworth, Esq., and Marissa D. Kelley, Esq., at Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A., in Miami, Florida. The Prepetition Lenders are Summit Partners Subordinated Debt Fund IV-A, L.P., Summit Partners Subordinated Debt Fund IV-B, L.P., JPMorgan Chase Bank, N.A., Locust Street Funding LLC, Canyon Value Realization Fund, L.P., Canyon Value Realization Master Fund, L.P., Canyon Distressed Opportunity Master Fund, L.P., and Canyon-GRF Master Fund II, L.P. Counsel to the Official Joint Committee of Unsecured Creditors are Glenn D. Moses, Esq., and Paul J. Battista, Esq., at Genovese Joblove & Battista, P.A., in Miami, Florida. * * * The Debtors have sold their assets to Fronton Holdings, LLC, an entity established by ABC Funding. The $140,000,000 purchase price consisted of a credit bid of $99,907,336 on account of the Loan Claim and cash in the amount of $40,092,664. The Bankruptcy Court approved the sale on April 7, 2014. The parties consummated the 363 Sale on April 30. The Debtors have submitted to the Bankruptcy Court a Disclosure Statement explaining their Second Amended Joint Plan of Liquidation dated June 16, 2014. The Plan serves as a separate plan of liquidation for each of the Debtors. The Plan does not seek to effect a substantive consolidation or other combination of the separate estates of each Debtor but instead provides that creditors of each Debtor will be permitted to assert their claims only against the Debtor(s) which they hold Allowed Claims. The Bankruptcy Court on July 23, 2014, entered an order confirming Florida Gaming Corporation and its subsidiary, Florida Gaming Centers, Inc.'s Second Amended Joint Chapter 11 Plan of Liquidation dated July 16, 2014. FOCUS CAPITAL: Insurance Proceeds Belong to Bankruptcy Estate ------------------------------------------------------------- District Judge Paul Barbadoro in New Hampshire affirmed a bankruptcy court ruling that Focus Capital Inc.'s insurance policy and its proceeds are property of the estate. A copy of the District Court's Sept. 2 Memorandum and Order Opinion is available at http://is.gd/00cXqMfrom Leagle.com. Bedford, NH-based Focus Capital is an investment company for which Nicholas Rowe served as president and majority owner. Focus Capital purchased an errors and omissions liability insurance policy from Twin City Fire Insurance Company. The policy obligates Twin City to "pay Loss[es] on behalf of the Insureds resulting from a Claim . . . against the Insureds . . . for a Wrongful Act in the Performance of Investment Advisor Professional Services. . . ." "Loss" is defined as damages, settlements, or judgments against Focus Capital or its officers when acting as an Investment Adviser. The "Insureds" include both the "Insured Entity" and "Insured Persons," meaning that the policy covers claims brought against both Focus Capital and its officers. The policy includes coverage limitations of $1 million per occurrence and $2 million aggregate. It is a so-called "wasting policy," meaning that the coverage limit is reduced by any costs paid in defense of Focus Capital or its officers when disputing claims covered by the policy. Beginning in 2011, several clients of Focus Capital became aware of significant losses to their portfolios. Believing that Rowe's mismanagement caused the losses, a group of investors filed an arbitration claim against Focus Capital and Rowe and later obtained a substantial award against both respondents. On Nov. 27, 2012, a FINRA arbitration panel awarded the Investors over $1.8 million in damages. The next day, the Investors filed a motion to confirm the award and for entry of individual judgments in the state court action. Facing liabilities vastly outstripping its assets, Focus Capital on Dec. 4, 2012, filed a voluntary petition for Chapter 11 bankruptcy (Bankr. D. N.H. Case No. 12-13683), listing the Investors' award among its liabilities. Judge J. Michael Deasy presided over the case. Peter N. Tamposi, Esq., at The Tamposi Law Group, P.C., served as the Debtor's counsel. In its petition, the Debtor estimated under $50,000 in assets and under $10 million in liabilities. A list of the Company's 20 largest unsecured creditors filed with the petition is available for free at http://bankrupt.com/misc/nhb12-13683.pdf The Investors responded on Dec. 11, 2012, by filing an emergency motion seeking a determination that the arbitration proceeding and the declaratory judgment action were not subject to the automatic stay. The trustees, the New Hampshire Secretary of State, and Focus Capital's creditors all objected to the motion, and the bankruptcy court denied it as premature due to questions regarding which creditors were entitled to proceeds under the policy. In March 2013, the U.S. Trustee filed a motion to convert Focus Capital's Chapter 11 petition into a Chapter 7 proceeding. The Investors opposed the motion, requesting instead that the petition be dismissed outright. On April 25, 2013, the bankruptcy court granted the U.S. Trustee's motion because it deemed liquidation and the distribution of Focus Capital's assets to be in the best interest of creditors and the estate. On July 26, 2013, the Investors filed a motion to dismiss Focus Capital's bankruptcy petition claiming bad faith, personal animus, and the lack of any legitimate bankruptcy purpose. On Aug. 9, the Investors again filed a motion seeking a determination that the automatic stay did not apply to the declaratory judgment action and the arbitration proceeding. The Investors based their challenge to the applicability of the automatic stay principally on their contention that the proceeds of the Twin City policy did not qualify as property of the bankruptcy estate. On Jan. 10, 2014, the bankruptcy court denied both of the motions of the Investors. The Investors -- now creditors in the bankruptcy proceeding -- seek appellate review of the bankruptcy court's ruling that their attempt to enforce the award against Focus Capital's insurer is subject to the automatic stay. The case is, Frances Straccia, et al. v. Joshua E. Menard, Chapter 7 Trustee of the Estate of Focus Capital, Inc., et al., CIVIL NO. 14-CV-80-PB (D. N.H.). Focus Capital, Inc., is represented by: Peter N. Tamposi, Esq. THE TAMPOSI LAW GROUP, P.C. 159 Main St Nashua, NH 03060 Tel: 603-204-5513 E-mail: peter@thetamposilawgroup.com Investors Frances Straccia et al. are represented by: William S. Gannon, Esq. WILLIAM S. GANNON PLLC 889 Elm St # 401 Manchester, NH 03101 Tel: 603-769-4756 Joshua E. Menard, the Chapter 7 trustee, is represented by: Gregory A. Moffett, Esq. Patricia M. Jeray, Esq. PRETI FLAHERTY BELIVEAU PACHIOS LLP 57 North Main Street Concord, NH 03301 E-mail: gmoffett@preti.com pjeray@preti.com GILES-JORDAN: Taps Stephen G. Schulz to Obtain Various Permits -------------------------------------------------------------- Giles-Jordan, Inc., in an amended application, asks the Bankruptcy Court for permission to employ Stephen G. Schulz and Greer, Herz & Adams, LLP, as special counsel to assist with applications to obtain various permits. Mr. Schulz charges a rate of $350 per hour for his services. According to the Debtor, the firm and Mr. Schulz have represented the Debtor previously relating to the development of the property and permits. The firm has an unsecured claim for $22,837. To the best of Debtor's knowledge, Mr. Schulz and the firm are "not adverse persons" within the meaning of Section 101(14) of the Bankruptcy Code. The Debtor is represented by: Jeffrey Wells Oppel, Esq. OPPEL & GOLDBERG, P.L.L.C 1010 Lamar, Suite 1420 Houston, TX 77002 Tel: (713) 659-9200 Fax: (713) 659-9300 E-mail: joppel@ogs-law.com About Giles-Jordan, Inc. Giles-Jordan, Inc., filed a Chapter 11 bankruptcy petition in its hometown in Galveston, Texas (Bankr. S.D. Tex. Case No. 14-80173) on May 5, 2014. The Debtor disclosed $12 million in total assets and $4.81 million in liabilities, including $3.72 million of secured debt. Its lone asset is a 39.16-acre property at 230 East Beach Drive, in Galveston, Texas. Galveston Shores, LP, of Carlsbad, California, is the holder of the secured debt. The case is assigned to Judge Letitia Z. Paul. The Debtor is represented by Jeffrey Wells Oppel, Esq., at Oppel & Goldberg, PLLC, in Houston, Texas. GM FINANCIAL: S&P Puts 'BB' ICR on CreditWatch Positive ------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' issuer credit ratings and 'BB-' unsecured debt rating on General Motors Financial Co. Inc. (GMF) on CreditWatch with positive implications. General Motors Co. (GM) announced that it has put in place a support agreement for its wholly owned captive finance subsidiary GMF. "We view the support agreement as a more concrete commitment of support from GM for GMF in both good times and stressful conditions," said Standard & Poor's credit analyst Kevin Cole. In and of itself, the support agreement does not warrant S&P to change GMF's group status from "highly strategic" (as S&P's criteria describe the term; capping GMF's rating one notch below the parent) to "core" (which would result in the alignment of S&P's issuer credit ratings on GM and GMF). However, S&P do considers the support agreement as a positive because it indicates improving linkages between GMF and its financially stronger parent company GM since GMF's acquisition by GM in Oct. 2010. In assessing the group status of GMF, S&P will also consider key factors such as GMF's increasing domestic scope and scale of global operations and how close it is to reaching its goals in regional market share. S&P will also review the level of commitment from GM's senior management to GMF, which has increased over the last several years. More importantly, S&P views the agreement as another sign of the increased likelihood that GMF will become a full captive finance subsidiary from its initial role as a source of incremental funding to subprime GM-vehicle buyers. S&P will also consider GMF's improving funding profile and its importance to the consolidated organization as it originates a greater proportion of GM's domestic business. A potential negative consideration will be the U.S. Department of Justice subpoena served to GMF in early August. S&P intends to resolve the CreditWatch listing in the next 90 days. In considering whether to revise the group status of GMF from highly strategic to core, S&P will assess if a combination of the above factors have led S&P to conclude that GMF is integral to GM's current identity and future strategy. "We would need to believe that GM is likely to support GMF under any foreseeable circumstances," said Mr. Cole. GUANWEI RECYCLING: Gets NASDAQ Listing Non-Compliance Notice ------------------------------------------------------------ Guanwei Recycling Corp. on Sept. 8 disclosed that the Company received notice from The NASDAQ Stock Market LLC on August 25, 2014 that the Company was not in compliance with the Listing Rules of NASDAQ since the Company had not filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2014. As described in more detail in a Form 8-K filed by the Company on August 26, 2014, the Company is afforded 30 calendar days to prepare and submit a plan of compliance. However, there can be no assurance that the Company will develop a plan to regain compliance, or that Nasdaq will accept such plan. About Guanwei Recycling Corp. Guanwei Recycling Corp. -- http://www.guanweirecycling.com-- is clean tech manufacturer of recycled low density polyethylene in China. The Company has generated rapid growth producing recycled LDPE from plastic waste procured mostly in Europe. The Company sells the recycled LDPE to more than 300 customers (including over 150 active recurring customers) in more than ten different industries in China. The Company is licensed by Chinese authorities and also has been issued a Compliance Certificate by TšV Rheinland, which issues certificates of approval for certain plastics manufacturers that meet Germany's strict environmental standards. This enables the Company to procure high quality plastic waste directly from Germany and other European countries with no middlemen, and permits highly economic production of the highest grades of LDPE. KID BRANDS: Gets Court OK to Tap University Management Associates ----------------------------------------------------------------- Kid Brands, Inc., et al., sought and obtained Bankruptcy Court permission to hire University Management Associates & Consultants Corporation (UMAC) in connection with the recovery of certain of their accounts receivables, effective as of July 29, 2014. UMAC will be paid a contingency fee as follows: (i) 3% when an invoice is paid within 100 days of the invoice date; (ii) 6% when an invoice is paid over 100 days from the invoice date; and (iii) 18% on monies collected on deductions/chargebacks where the payment is obtained repaying the deduction previously taken, unless the deduction or chargeback was based on a "buyers hold" in which case the 3% to 6% rate will apply. In addition, UMAC will be indemnified and held harmless by the Debtors from and against any and all actions, claims, losses and damages as a result of any actions or claims brought by the Debtors' customers against UMAC. Paul Rome, chief executive officer of UMAC, assures the Court that UMAC is a "disinterested person" as the term is defined in Sec. 101(14) of the Bankruptcy Code. About Kid Brands Based in Rutherford, New Jersey, Kid Brands, Inc., is a designer, importer, marketer, and distributor of infant and juvenile consumer products. Its operating subsidiaries consist of Kids Line, LLC, CoCaLo, Inc., Sassy, Inc., and LaJobi, Inc. Providing "everything but the baby" for a child's nursery, the company sells infant bedding and accessories under the Kids Line and CoCaLo brands; nursery furniture under the LaJobi brand; and baby care items under the Kokopax and Sassy brands. Citing their inability to raise capital due to contingent liabilities and operational issues, Kid Brands and six of its U.S. subsidiaries each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 14-22582) on June 18, 2014. To preserve the value of their assets, the Debtors are pursuing a sale of the assets pursuant to section 363 of the Bankruptcy Code. As of April 30, 2014, the Debtors had $32.40 million in total assets and $109.1 million in total liabilities. As of the Petition Date, unsecured debts totaled $54 million. Judge Donald H. Steckroth oversees the cases. The Debtors have sought and obtained an order directing joint administration of their Chapter 11 cases. Lowenstein Sandler LLP serves as the Debtors' counsel. PricewaterhouseCoopers LLP is the Debtors' financial advisor. GRL Capital Advisors acts as the Debtors' restructuring advisors. GRL's Glenn Langberg served as the Debtors' chief restructuring officer. Mr. Langberg also oversaw the bankruptcy and sales of Big M Inc., operator of the Mandee and Annie Sez stores. Rust Consulting/Omni Bankruptcy is the Debtors' claims and noticing agent. In August 2014, Bonnie Glantz Fatell, Esq., was appointed as consumer privacy ombudsman as per the behest of the U.S. Trustee. Salus Capital Partners LLC and Sterling National Bank have committed to provide up to $49 million in DIP financing to the Debtors. On July 2, 2014, 5he U.S. Trustee for Region 3 appointed a 3-member panel consisting of (1) Disney Consumer Products, Inc., (2) Markup Corp. dba Kids Basics, and Structure Tone, Inc., to serve as the official unsecured creditors' committee. KID BRANDS: Committee Gets Nod to Tap Kelley Drye as Counsel ------------------------------------------------------------ The Official Committee of Unsecured Creditors of Kid Brands, Inc., et al., sought and obtained Bankruptcy Court authority to retain Kelley Drye & Warren LLP as its counsel nunc pro tunc to July 2, 2014. Kelley Drye will render, among other things, these legal services to the Committee: (a) Advise the Committee with respect to its rights, duties and powers in these chapter 11 cases; (b) Assist/advise the Committee in its consultations with the Debtors in connection with the administration of these chapter 11 cases; (c) Assist the Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors, operation of the Debtors' businesses and the desirability of continuing or selling such businesses and/or assets under 11 U.S.C. Sec. 363, the formulation of a chapter 11 plan, and any other matter relevant to these chapter 11 cases; (d) Assist the Committee in analyzing the claims of the Debtors' creditors and the Debtors' capital structure and in negotiating with holders of claims and other interests, including analysis of possible objections to the priority, amount, subordination, or avoidance of claims and/or transfers of property in consideration of those claims; (e) Advise/represent the Committee in connection with matters generally arising in these cases, including the sale of assets, Debtors' postpetition financing, the use of cash collateral, and the rejection or assumption of executory contracts and unexpired leases; (f) Appear before the Bankruptcy Court, and any other federal, state or appellate court; and (g) Prepare, on behalf of the Committee, any pleadings. Kelley Drye's standard hourly rates are: Partners $535 to $950 Counsel $440 to $670 Associates $330 to $645 Paraprofessionals $170 to $345 By agreement with the Committee, Kelley Drye has agreed to limit the hourly rate of each attorney to the lesser of (a) $625 per hour, and (b) the individual attorney's standard hourly rate discounted by 10%. This agreement is subject to the firm's standard annual adjustment in January of each year. Kelley Drye professionals that will be working on the Debtors' cases, and their business addresses, are: Eric R. Wilson, Esq. (admitted pro hac vice ) Kristin S. Elliott, Esq. Timothy B. Martin, Esq. (admitted pro hac vice ) KELLEY DRYE & WARREN LLP 101 Park Avenue New York, New York 10178 Tel No: (212)808-7800 Fax No: (212)808-7897 Email: ewilson@kelleydrye.com kelliott@kelleydrye.com -- and -- 200 Kimball Drive Parsippany, New Jersey 07054 Tel No: (973)503-5900 Fax No: (973)503-5950 Eric Wilson, Esq., a Kelley Drye professional, assures the Court that his Firm does not represent nor hold any interest adverse to the Debtors or their estates and is a "disinterested person" as that term is defined in Sec. 101(14) of the Bankruptcy Code. Mr. Wilson further asserts that Kelley Drye intends to make a reasonable effort to comply with the U.S. Trustee requests for information and additional disclosures as set in its New Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under 11 Sec. 330 by Attorneys in Large Chap. 11 cases. About Kid Brands Based in Rutherford, New Jersey, Kid Brands, Inc., is a designer, importer, marketer, and distributor of infant and juvenile consumer products. Its operating subsidiaries consist of Kids Line, LLC, CoCaLo, Inc., Sassy, Inc., and LaJobi, Inc. Providing "everything but the baby" for a child's nursery, the company sells infant bedding and accessories under the Kids Line and CoCaLo brands; nursery furniture under the LaJobi brand; and baby care items under the Kokopax and Sassy brands. Citing their inability to raise capital due to contingent liabilities and operational issues, Kid Brands and six of its U.S. subsidiaries each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 14-22582) on June 18, 2014. To preserve the value of their assets, the Debtors are pursuing a sale of the assets pursuant to section 363 of the Bankruptcy Code. As of April 30, 2014, the Debtors had $32.40 million in total assets and $109.1 million in total liabilities. As of the Petition Date, unsecured debts totaled $54 million. Judge Donald H. Steckroth oversees the cases. The Debtors have sought and obtained an order directing joint administration of their Chapter 11 cases. Lowenstein Sandler LLP serves as the Debtors' counsel. PricewaterhouseCoopers LLP is the Debtors' financial advisor. GRL Capital Advisors acts as the Debtors' restructuring advisors. GRL's Glenn Langberg served as the Debtors' chief restructuring officer. Mr. Langberg also oversaw the bankruptcy and sales of Big M Inc., operator of the Mandee and Annie Sez stores. Rust Consulting/Omni Bankruptcy is the Debtors' claims and noticing agent. In August 2014, Bonnie Glantz Fatell, Esq., was appointed as consumer privacy ombudsman as per the behest of the U.S. Trustee. Salus Capital Partners LLC and Sterling National Bank have committed to provide up to $49 million in DIP financing to the Debtors. On July 2, 2014, 5he U.S. Trustee for Region 3 appointed a 3-member panel consisting of (1) Disney Consumer Products, Inc., (2) Markup Corp. dba Kids Basics, and Structure Tone, Inc., to serve as the official unsecured creditors' committee. KID BRANDS: Committee Can Hire Emerald Capital as Finc'l Advisors ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of Kid Brands, Inc., et al., sought and obtained Bankruptcy Court authority to hire Emerald Capital Advisors Corp. as its financial advisors, nunc pro tunc to July 7, 2014. As financial advisors, Emerald Capital will render these services: (a) Review/analyze the Debtors' operations, financial condition, business plan, strategy, and operating forecasts; (b) Assist the Committee in evaluating any proposed debtor-in- possession financing; (c) Assist in the determination of an appropriate capital structure for the Debtors; (d) Assist the Committee in its review of various financial reports prepared for submission to the Court; (e) Advise the Committee as it assesses the Debtors' executory contracts; (f) Assist/advise the Committee in connection with its identification, development, and implementation of strategies related to the potential recoveries for the unsecured creditors as it relates to any plan of reorganization or liquidation of the Debtors; (g) Assist the Committee in understanding the business and financial impact of various restructuring and/or liquidation alternatives of the Debtors; (h) Assist the Committee in its analysis of the Debtors' financial restructuring process; (i) Assist the Committee in evaluating, structuring and negotiating the terms and conditions of any proposed transactions, including the value of the securities, if any; (j) Assist in the evaluation of any asset sale processes, including the identification of potential buyers; (k) Assist in evaluating the terms, conditions, and impact of any proposed asset sale transactions; (l) Assist the Committee in evaluation any proposed merger, divestiture, joint-venture, or investment transaction; (k) Assist the Committee in evaluating the terms, conditions, and impact of any proposed asset sale transactions; (l) Assist the Committee in evaluating any proposed merger, divestiture, joint-venture, or investment transaction; and (m) Assist the Committee to value the consideration offered by the Debtors to unsecured creditors in connection with the sale(s) of the Debtors' assets or a restructuring. The range of billing rates for Emerald professionals who may be involved in rendering services to the Committee are: Hourly Rate John P. Madden, senior managing director $600 Joseph R. Scopo, vice president $450 Associates $300 Senior Analysts $250 Analysts $200 The total monthly fees will be capped at $65,000 for the first month and $50,000 for every month thereafter. Should the total monthly fees for any of the first 3 months not reach the applicable Monthly Fee Cap, Emerald will be permitted to charge hours to the preceding and/or successive months until the Monthly Fee Cap is reached. Emerald will also be seeking reimbursement for out-of-pocket expenses and other charges incurred in connection with its services in the case. John P. Madden, Senior Managing Director of Emerald Capital Advisors, assures the Court that his Firm is a "disinterested person" as the term is defined under Sec. 101(14) of the Bankruptcy Code. About Kid Brands Based in Rutherford, New Jersey, Kid Brands, Inc., is a designer, importer, marketer, and distributor of infant and juvenile consumer products. Its operating subsidiaries consist of Kids Line, LLC, CoCaLo, Inc., Sassy, Inc., and LaJobi, Inc. Providing "everything but the baby" for a child's nursery, the company sells infant bedding and accessories under the Kids Line and CoCaLo brands; nursery furniture under the LaJobi brand; and baby care items under the Kokopax and Sassy brands. Citing their inability to raise capital due to contingent liabilities and operational issues, Kid Brands and six of its U.S. subsidiaries each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 14-22582) on June 18, 2014. To preserve the value of their assets, the Debtors are pursuing a sale of the assets pursuant to section 363 of the Bankruptcy Code. As of April 30, 2014, the Debtors had $32.40 million in total assets and $109.1 million in total liabilities. As of the Petition Date, unsecured debts totaled $54 million. Judge Donald H. Steckroth oversees the cases. The Debtors have sought and obtained an order directing joint administration of their Chapter 11 cases. Lowenstein Sandler LLP serves as the Debtors' counsel. PricewaterhouseCoopers LLP is the Debtors' financial advisor. GRL Capital Advisors acts as the Debtors' restructuring advisors. GRL's Glenn Langberg served as the Debtors' chief restructuring officer. Mr. Langberg also oversaw the bankruptcy and sales of Big M Inc., operator of the Mandee and Annie Sez stores. Rust Consulting/Omni Bankruptcy is the Debtors' claims and noticing agent. In August 2014, Bonnie Glantz Fatell, Esq., was appointed as consumer privacy ombudsman as per the behest of the U.S. Trustee. Salus Capital Partners LLC and Sterling National Bank have committed to provide up to $49 million in DIP financing to the Debtors. On July 2, 2014, 5he U.S. Trustee for Region 3 appointed a 3-member panel consisting of (1) Disney Consumer Products, Inc., (2) Markup Corp. dba Kids Basics, and Structure Tone, Inc., to serve as the official unsecured creditors' committee. HANSEN MEDICAL: Reports $12.29-Mil. Net Loss for June 30 Quarter ---------------------------------------------------------------- Hansen Medical, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $12.29 million on $6.89 million of total revenues for the three months ended June 30, 2014, compared with a net loss of $13.45 million on $3.34 million of total revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $53.9 million in total assets, $46.09 million in total liabilities and total stockholders' equity of $7.79 million. A copy of the Form 10-Q is available at: http://is.gd/ZgLaOf Hansen Medical, Inc., develops, manufactures and markets a generation of medical robotics designed for accurate positioning, manipulation and stable control of catheters and catheter-based technologies. The Company's products include Sensei Robotic Catheter System, or Sensei system, Magellan Robotic System, Artisan Control Catheter, or Artisan catheter, Lynx Robotic Ablation Catheter, or Lynx catheter and CoHesion 3D Visualization Module, or CoHesion Module. During the year ended December 31, 2011, the Company had shipped a total of 109 Sensei systems, of which 63 were shipped in the United States and 46 were shipped to the rest of the world. During 2011, it had recognized revenue on a total of 103 of these Sensei systems. As of December 31, 2011, it had shipped one Magellan Robotic System in Europe and one vascular research system in the United States. As of December 31, 2011, 76 Sensei systems the Company had shipped were configured with the CoHesion Module. HAROLD OSTENSON: Dismissal of Derivative Lawsuit Affirmed --------------------------------------------------------- The Court of Appeals of Washington, Division Three, affirms the trial court's dismissal of Harold and Shirley Ostenson's derivative action brought on behalf of Pac Organic Fruit, LLC, against Greg Holzman, Greg Holzman, Inc., and Total Organic. The case revolves around business disputes, between local orchardists Harold and Shirley Ostenson, husband and wife, and San Francisco businessman Greg Holzman, concerning the operation of a Grant County orchard packing facility. Although the Ostensons and Holzman were ostensibly partners, the parties jointly established a limited liability company, Pac Organic, through which they conducted business with one another. Greg Holzman formed additional companies to shield himself from individual liability and inserted those companies into his business relationships with the Ostensons. Greg Holzman, Inc., (GHI) was the company that became a member of Pac Organic. Both Greg Holzman and the Ostensons blame the other for the deterioration of the packing business. The Ostensons eventually filed a Chapter 11 bankruptcy petition that complicates and controls the outcome of this case. The Ostensons sued Pac Organic, claiming the limited liability company breached a lease for a fruit packing facility, failed to pay for orchard crops, owes them unpaid wages, undercompensated them, owes reimbursement for expenses incurred on behalf of the company, failed to distribute profits, and breached fiduciary duties. Shirley and Harold Ostenson also bring a derivative action, on behalf of Pac Organic against Greg Holzman and his companies, GHI, and Total Organic Fruit, LLC. The derivative action alleges Holzman and his companies mismanaged Pac Organic. This appeal concerns only the derivative action. The trial court granted Greg Holzman's, GHI's, and Total Organic's (collectively the Holzman defendants) CR 41(b)(3) motion to dismiss, ruling that the Ostensons' bankruptcy dissociated them as members from Pac Organic. According to the trial court, because they were dissociated, RCW 25.15.370 precludes the Ostensons from bringing a derivative action. The Ostensons' nonderivative claims against Pac Organic survive the trial court's ruling, but presumably are worthless because of the financial condition of Pac Organic. The trial court directed a final judgment be entered, under CR 54(b), in favor of the Holzman defendants, because there was no just reason to delay entry of final judgment. The Ostensons appeal the ruling dismissing the Holzman defendants. They argue their bankruptcy filing did not remove them from membership in Pac Organic and does not disqualify them from asserting a derivative action on behalf of the limited liability company. They also argue that, in the bankruptcy proceeding, the Holzman defendants consented to their membership in Pac Organic and this derivative action. Finally, the Ostensons argue that the Holzman defendants are judicially and collaterally estopped and res judicata bars them from denying the Ostensons' standing to bring the derivative action. "We affirm the trial court's grant of the Holzman defendants' motion to dismiss, because the Ostensons' bankruptcy filing rendered them ineligible to maintain a derivative action," the Court said. "The Ostensons' story presents a primer on how not to conduct business," the Court added. A copy of the Court's Sept. 4 Opinion is available at http://is.gd/OKdZOCfrom Leagle.com. The case is, HAROLD OSTENSON and SHIRLEY OSTENSON, Appellants, v. GREG HOLZMAN, INC., a foreign corporation authorized to do business in the State of Washington, GREG HOLZMAN, an individual, and TOTAL ORGANIC, LLC, a Washington limited liability company, Respondents, Court of Appeals of Washington, Division Three. The Ostensons are represented by: Maris Baltins, Esq. LAW OFFICES OF MARIS BALTINS, P.S. 7 S. Howard St. Ste. 220 Spokane, WA, 99201-3816 Holzman et al. are represented by: Daniel J. Appel, Esq. Attorney at Law 124 N. Wenatchee Ave. Ste. A. Wenatchee, WA, 98801-2239 Harold T. Ostenson and Shirley M. Ostenson, in Wenatchee, Washington, filed for Chapter 11 bankruptcy (Bankr. E.D. Wash. Case No. 07-00058) on Jan. 9, 2007. Judge Frank L. Kurtz presided over the case. Dan O'Rourke, Esq., at Southwell & O'Rourke, served as counsel. In their petition, the Ostensons estimated $1 million to $100 million in both assets and debt. HDGM ADVISORY: Hearing on Chapter 7 Conversion Set for Sept. 16 --------------------------------------------------------------- In the chapter 11 case of HDGM Advisory Services, the Bankruptcy Court denied a request to continue hearing on the motion for appointment of a chapter 11 trustee and second amended motion to convert the case to chapter 7. A hearing on the matters is set for September 16, 2014. Creditors KFH Capital Investment Company, K.S.C.C., formerly known as Al-Muthanna Investment Company and Kuwait Finance House Real Estate Company K.S.C.C., formerly known as Nakheel United Real Estate, on August 13, 2014, filed a motion to appoint a chapter 11 trustee. The following day, August 14, 2014, KFH filed its second amended motion to convert cases to chapter 7. KFH asserted that the debtors have no business operations and few choate assets. Further, KFH asserted that the debtors have no reasonable prospect of reorganization. On August 21, 2014, Martha R. Lehman, on behalf of KFH, submitted a notice of hearing with certificate of service regarding the motion to convert and requested that hearing on the motion be held on September 16, 2014. Creditor State Bank of Lizton through a motion supports the appointment of a chapter 11 trustee or, in the alternative, conversion of the case to chapter 7. State Bank of Lizton joins the argument of KFH that the debtors have no business operations and owns few real assets. KFH is represented by: Mark R. Wenzel, Esq. Martha R. Lehman, Esq. KRIEG DEVAULT LLP One Indiana Square, Suite 2800 Indianapolis, IN 46204-2079 Tel: (317) 238-6277 Fax: (317) 636-1507 Email: mwenzel@kdlegal.com - and - Jonathan W. Jordan, Esq. KING & SPALDING LLP 1180 Peachtree Street, 31st Floor Atlanta, GA 30309 Telephone: (404) 572-3100 State Bank of Lizton is represented by: Mark R. Wenzel, Esq. KRIEG DEVAULT LLP One Indiana Square, Suite 2800 Indianapolis, IN 46204-2079 Tel: (317) 238-6277 Fax: (317) 636-1507 Email: mwenzel@kdlegal.com About HDGM Advisory Services HDGM Advisory Services, LLC, and HDG Mansur Investment Services, Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D. Ind. Case No. 14-04797 and 14-04798) in Indianapolis, Indiana, on May 21, 2014. On May 28, 2014, the Hon. James M. Carr directed the joint administration the cases of HDGM Advisory Services, LLC, and HDG Mansur Investment Services, Inc., under the lead case -- HDGM Advisory, Case No. 14-04797. HDGH Advisory disclosed $20,257,001 in assets and $7,991, 590 in liabilities as of the Chapter 11 filing. HDG Mansur disclosed $20,454,819 in assets and $12,377,542 in liabilities. According to a court filing, the Debtors don't have any secured creditors. The cases are assigned to Judge James M. Carr. The Debtors have tapped Michael W. Hile, Esq., Christine K. Jacobson, Esq., and Henry Mestetsky, Esq., at Katz & Korin PC, as counsel. An affiliate of the Debtors, Hamilton Proper Partners Golf Partnership, L.P., sought bankruptcy protection (Bankr. S.D. Ind. Case No. 14-00461) on Jan. 24, 2014. HELIA TEC: Plan Disclosures Hearing Moved Due to Amendment ---------------------------------------------------------- The Bankruptcy Court has continued until Oct. 1, 2014, at 2:30 p.m., the hearing to consider adequacy of information in Helia Tec Resources, Inc.'s First Amended Disclosure Statement accompanying its Plan of Reorganization, according to the courtroom minutes. Counsel for the Debtor has announced amendment to the Disclosure Statement which resolved Rockwell Management's objection to the First Amended Disclosure Statement. The Court said that the hearing is continued to allow the remaining parties to draft any supplements or changes. As reported in the Troubled Company Reporter on Sept. 2, 2014, Rockwell Management, as property manager for 1770 St. James, L.P., and HSC Holdings Co., Ltd., formerly known as GE&F Co. and substantial shareholder in debtor Helia Tec Resources, Inc., each objected to the First Amended Disclosure Statement. Rockwell is the property manager with respect to the Debtor's primary operating facility located at 1770 St. James, Suite 205, Houston, Texas. In June 2011, the Debtor entered into a 51-month lease agreement with 1770 St. James Limited Partnership for the lease of the Leased Premises. Rockwell says in its Aug. 20, 2014 objection that there is no reference to the Lease in the Plan. According to Rockwell, the only reference in the Disclosure Statement pertaining to the Lease is a cryptic provision that reads: "3.1.11 Since engaging new counsel, the Debtor has dedicated significant time evaluating its real property leases and exchanging information and ideas with its landlords and their representatives. At this point in the case, the leasehold interest at 1770 St. James Place, Suite 205, Houston, Harris County, Texas 77056 remains in place." In a court filing dated Aug. 21, 2014, HSC objected to the Disclosure Statement, claiming that the Plan is not confirmable and that the Disclosure Statement does not contain adequate information. The Plan, says HSC, is not confirmable as it fails to provide for the treatment of allowed equity interests and improperly provides for no payment to HSC on account of its equity interest in the Debtor by seeking to subordinate HSC's equity interest to payment of all creditors and other equity interest holders. The Disclosure Statement should not be approved when the Proposed Plan is patently unconfirmable, HSC states. According to HSC, the Disclosure Statement also lacked adequate information that would enable holders of claims and equity interests to make an informed judgment about the Plan. The Disclosure Statement fails to provide adequate information regarding the likelihood and amount of distributions to holders of claims and equity interests. HSC claims that in the Disclosure Statement, the Debtor: a. does not fully or accurately disclose the terms or current status of the IPI Agreement, the IPI Interest, and the purported PIA Deposit; b. does not disclose or propose a plan to adjudicate HTR's alleged ownership in the IPI Interest with the necessary participation of current holders of title to that interest; c. fails to disclose that arbitration may be the only means of adjudicating ownership of the IPI Interest; d. mischaracterizes the shareholder derivative suit and seeks to obfuscate its value to the bankruptcy estate; e. does not disclose that the proposed plan agent lacks the requisite experience to execute the Plan. About Helia Tec Resources Helia Tec Resources, Inc. filed a Chapter 11 petition (Bankr. S. D. Tex. Case No. 13-36251) on Oct. 3, 2013 in Houston, Texas, represented by Richard L. Fuqua, II, Esq., at Fuqua & Associates, PC, in Houston, as counsel to the Debtor. The Debtor listed $16.15 million in assets and $2.24 million in liabilities. The petition was signed by Cary E. Hughes, president. Judy A. Robbins, U.S. Trustee for Region 7, was unable to appoint an official committee of unsecured creditors in the Debtor's case. HOVNANIAN ENTERPRISES: Files Q3 Form 10Q, Posts $17MM Net Income ---------------------------------------------------------------- Hovnanian Enterprises, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended July 31, 2014. Net income for the three months ended July 31, 2014, was $17.10 million compared to net income of $8.46 million for the same period a year ago. For the three months ended July 31, 2014, the Company had total revenues of $551 million compared to total revenues of $478.35 million for the same period in 2013. For the nine months ended July 31, 2014, the Company reported a net loss of $15.32 million on $1.36 billion of total revenues compared to a net loss of $1.52 million on $1.25 billion of total revenues for the same period in 2013. The Company's balance sheet at July 31, 2014, showed $1.89 billion in total assets, $2.33 billion in total liabilities and a $443.12 million total deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/rsyg3c About Hovnanian Enterprises Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV) -- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian, is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes. Hovnanian Enterprises posted net income of $31.29 million on $1.85 billion of total revenues for the year ended Oct. 31, 2013, as compared with a net loss of $66.19 million on $1.48 billion of total revenues during the prior year. * * * As reported by the Troubled Company Reporter on April 25, 2013, Standard & Poor's Ratings Services said it raised its corporate credit rating on Hovnanian Enterprises Inc. to 'B-' from 'CCC+'. "The upgrade reflects strengthening operating performance supported by the broader recovery in the housing market that, we believe, should support modest profitability in 2013," said Standard & Poor's credit analyst George Skoufis. In the Dec. 9, 2013, edition of the TCR, Fitch Ratings upgraded the Issuer Default Rating (IDR) of Hovnanian Enterprises to 'B-' from 'CCC'. The upgrade and the Stable Outlook reflects HOV's operating performance year-to-date (YTD), adequate liquidity position, and moderately better prospects for the housing sector during the remainder of this year and in 2014. As reported by the TCR on Jan. 9, 2014, Moody's Investors Service raised the Corporate Family Rating of Hovnanian Enterprises, Inc., to B3 from Caa1. The upgrade of the Corporate Family Rating to B3 reflects Hovnanian's improved financial performance including improvement in interest coverage to slightly above 1x and finally turning net income positive for the fiscal year 2013. IMPRINT TECHNOLOGIES: Ex-Bankr. Lawyer Loses Reinstatement Bid -------------------------------------------------------------- Minnesota District Judge John R. Tunheim denied the petition of Donald Fuller for reinstatement as attorney. Mr. Fuller was suspended from the practice of law in Minnesota in 2001 by the Minnesota Supreme Court, and subsequently suspended from the practice of law in the United States District Court for the District of Minnesota as a result of reciprocal automatic suspension. He has sought reinstatement from the Minnesota Supreme Court twice -- the first time his petition for reinstatement was denied and the second time he withdrew -- so he remains ineligible to practice law in the state of Minnesota. In 2013, Mr. Fuller petitioned the District Court for reinstatement to practice in federal court pursuant to Local Rule 83.6(g). Because the Court concludes that none of the circumstances under which the Court may reinstate an attorney subject to suspension in a reciprocal jurisdiction are present, the Court denied the petition for reinstatement. Mr. Fuller graduated from law school in 1971 and was admitted to practice law in Illinois. After over a decade of practice in Illinois and service in the Marine Corps, he moved to Minnesota in 1987 and was admitted to the practice of law in Minnesota in 1990. In 1995, Mr. Fuller prepared a Chapter 11 bankruptcy filing for and represented in bankruptcy proceedings a business called Imprint Technologies, Inc., which belonged to his client Brett Hanson. After discovering several practices and certain conduct by Hanson, Mr. Fuller sent Mr. Hanson a letter dated June 3, 1996 stating that he was withdrawing from representing Imprint on all matters and stating that Mr. Hanson's refusal to seek chemical dependency treatment was the reason. Mr. Fuller then did not attend a hearing on behalf of Imprint the next day and did not file a motion to withdraw from another action in which he represented Imprint. He later testified that he did not do so because Mr. Hanson threatened him and told him not to do anything and that he was afraid of Hanson. Mr. Fuller later wrote letters about Mr. Hanson to more than 25 individuals and government entities, including Al Gore, Janet Reno, the FBI, the IRS, the Minnesota Attorney General's office, the Minnesota Office of Lawyers Professional Responsibility ("OLPR"), judges, and creditors of Imprint. The letters accused Hanson of, among other things, chemical dependency, fraud, intimidation, and murder. Mr. Hanson filed a disciplinary complaint against Mr. Fuller with the OLPR. At the suggestion of the OLPR, Mr. Fuller submitted to psychological and psychiatric evaluations, both of which determined that Fuller exhibited signs of paranoia. In May 1999, the OLPR requested that a panel of the LPRB find that probable cause existed either for public discipline of Fuller or placing him on disability inactive status. On Nov. 4, 1999, the LPRB panel found probable cause for public discipline (although not for transfer to disability inactive status) and the OLPR filed a petition for disciplinary action on December 2, 1999. The Minnesota Supreme Court referred the petition to a referee for a hearing, and the referee recommended that the court suspend Mr. Fuller indefinitely with a one-year minimum for suspension and that the court require Fuller to successfully complete a mental health evaluation. The Minnesota Supreme Court found that the referee did not err in finding that Mr. Fuller had violated the Rules of Professional Responsibility in several ways. A copy of the District Court's Sept. 3, 2014 Order is available at http://is.gd/419ohGfrom Leagle.com. INVENT VENTURES: Has $722K Net Loss in Second Quarter ----------------------------------------------------- INVENT Ventures, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $722,689 on $74,641 of total revenues for the three months ended June 30, 2014, compared with a net loss of $242,508 on $38,642 of total revenues for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $6.3 million in total assets, $1.28 million in total liabilities, and stockholders' equity of $5.02 million. "The Company incurred a loss from operations of $216,102 during the six months ended June 30, 2014. The Company's only sources of cash flow have been from investments in the Company's common stock, borrowing on the company?s line of credit, issuances of convertible notes, management fees from portfolio companies, and loans from its CEO. If the Company is unable to continue to raise sufficient capital to meet its operating needs or generate cash flow from operations, substantial doubt exists regarding 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/yBGwYk About INVENT Ventures Las Vegas, Nevada-based INVENT Ventures, Inc., formerly known as Los Angeles Syndicate of Technology, Inc., is a technology venture fund that creates, builds, and invests in web and mobile technology companies. The Company develops businesses in the consumer Internet, mobile and biotechnology markets, and owns six companies at different stages of development. INVENTIV HEALTH: S&P Corrects Rating on $507MM PIK Notes to 'CCC' ----------------------------------------------------------------- Standard & Poor's Ratings Services corrected its rating on inVentiv Health's $507 million second-lien pay-in-kind (PIK) toggle notes due 2018 to 'CCC' from 'CCC+'. The recovery rating on this debt is unaffected at '6', indicating S&P's expectations for negligible (0%-10%) recovery in the event of payment default. In accordance with S&P's notching criteria, the issue-level rating on these notes should be two notches below the company's 'B-' corporate credit rating. In applying S&P's notching methodology, it incorrectly rated the notes one notch below the corporate credit rating. All other ratings on inVentiv, including the 'B-' corporate credit rating, are not affected. The outlook remains stable. RATINGS LIST inVentiv Health Inc. Corporate Credit Rating B-/Stable/-- To From inVentiv Health Inc. $507M Second-lien notes CCC CCC+ Recovery Rating 6 6 KID BRANDS: Taps Hilco IP as Consultant and Sales Agent ------------------------------------------------------- Kid Brands, Inc., et al., filed a motion with the U.S. Bankruptcy Court for the District of New Jersey seeking to employ Hilco IP Services, LLC, as their consultant and sales agent in connection with the sale of certain of their Intellectual Property. The Firm will, among other things, provide these services: (a) Collect and secure all of the available information and data concerning the Intellectual Property; (b) Prepare marketing materials designed to inform potential purchasers of the availability of the Intellectual Property for sale, assignment, license, or other disposition; and (c) Develop and execute a sales and marketing program designed to elicit proposals to acquire the Intellectual Property from qualified acquirers with a view toward completing one or more sales, assignments, licenses, or other dispositions of the Intellectual Property. Hilco will be paid a commission for its services as follows: (i) 10% of the amount of aggregate Net Proceeds for up to $250,000; plus (ii) 12.5% of the amount by which the aggregate Net Proceeds exceed $250,000 up to $500,000; plus (iii) 15% of the amount by which the aggregate Net Proceeds exceed $500,000 up to $1,000,000; plus (iv) 20% of the amount by which the aggregate Net Proceeds exceed $1,000,000. Hilco IP attests that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Kid Brands Based in Rutherford, New Jersey, Kid Brands, Inc., is a designer, importer, marketer, and distributor of infant and juvenile consumer products. Its operating subsidiaries consist of Kids Line, LLC, CoCaLo, Inc., Sassy, Inc., and LaJobi, Inc. Providing "everything but the baby" for a child's nursery, the company sells infant bedding and accessories under the Kids Line and CoCaLo brands; nursery furniture under the LaJobi brand; and baby care items under the Kokopax and Sassy brands. Citing their inability to raise capital due to contingent liabilities and operational issues, Kid Brands and six of its U.S. subsidiaries each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 14-22582) on June 18, 2014. To preserve the value of their assets, the Debtors are pursuing a sale of the assets pursuant to section 363 of the Bankruptcy Code. As of April 30, 2014, the Debtors had $32.40 million in total assets and $109.1 million in total liabilities. As of the Petition Date, unsecured debts totaled $54 million. Judge Donald H. Steckroth oversees the cases. The Debtors have sought and obtained an order directing joint administration of their Chapter 11 cases. Lowenstein Sandler LLP serves as the Debtors' counsel. PricewaterhouseCoopers LLP is the Debtors' financial advisor. GRL Capital Advisors acts as the Debtors' restructuring advisors. GRL's Glenn Langberg served as the Debtors' chief restructuring officer. Mr. Langberg also oversaw the bankruptcy and sales of Big M Inc., operator of the Mandee and Annie Sez stores. Rust Consulting/Omni Bankruptcy is the Debtors' claims and noticing agent. Salus Capital Partners LLC and Sterling National Bank have committed to provide up to $49 million in DIP financing to the Debtors. KID BRANDS: Files Schedules of Assets and Liabilities ----------------------------------------------------- Kid Brands, Inc., filed with the U.S. Bankruptcy Court for the District of New Jersey its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $921,358 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $44,437,238 E. Creditors Holding Unsecured Priority Claims $3,558 F. Creditors Holding Unsecured Non-priority Claims $3,506,792 ----------- ----------- TOTAL $921,358 $47,947,589 About Kid Brands Based in Rutherford, New Jersey, Kid Brands, Inc., is a designer, importer, marketer, and distributor of infant and juvenile consumer products. Its operating subsidiaries consist of Kids Line, LLC, CoCaLo, Inc., Sassy, Inc., and LaJobi, Inc. Providing "everything but the baby" for a child's nursery, the company sells infant bedding and accessories under the Kids Line and CoCaLo brands; nursery furniture under the LaJobi brand; and baby care items under the Kokopax and Sassy brands. Citing their inability to raise capital due to contingent liabilities and operational issues, Kid Brands and six of its U.S. subsidiaries each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 14-22582) on June 18, 2014. To preserve the value of their assets, the Debtors are pursuing a sale of the assets pursuant to section 363 of the Bankruptcy Code. As of April 30, 2014, the Debtors had $32.40 million in total assets and $109.1 million in total liabilities. As of the Petition Date, unsecured debts totaled $54 million. Judge Donald H. Steckroth oversees the cases. The Debtors have sought and obtained an order directing joint administration of their Chapter 11 cases. Lowenstein Sandler LLP serves as the Debtors' counsel. PricewaterhouseCoopers LLP is the Debtors' financial advisor. GRL Capital Advisors acts as the Debtors' restructuring advisors. GRL's Glenn Langberg served as the Debtors' chief restructuring officer. Mr. Langberg also oversaw the bankruptcy and sales of Big M Inc., operator of the Mandee and Annie Sez stores. Rust Consulting/Omni Bankruptcy is the Debtors' claims and noticing agent. Salus Capital Partners LLC and Sterling National Bank have committed to provide up to $49 million in DIP financing to the Debtors. LABOR SMART: Posts $932K Net Loss for Second Quarter ---------------------------------------------------- Labor Smart, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $932,846 on $6.44 million of revenues for the three months ended June 27, 2014, compared with a net loss of $761,593 on $4.04 million of revenues for the three months ended June 30, 2013. The Company's balance sheet at June 27, 2014, showed $4.1 million in total assets, $6.22 million in total liabilities, and a stockholders' deficit of $2.12 million. A copy of the Form 10-Q is available at: http://is.gd/Ilt2HZ Hiram, Ga.-based Labor Smart, Inc., was incorporated in the State of Nevada on May 31, 2011. The Company is a provider of temporary employees to the construction, manufacturing, hospitality, restoration and retail industries. At June 30, 2013, the Company was operating 14 branches located in 9 states. LADYWOOD APARTMENTS: Case Summary & 7 Top Unsecured Creditors ------------------------------------------------------------- Debtor: Ladywood Apartments, LLC c/o Lee & Associates-Indianapolis, Inc. 500 E. 96th St., Ste. 400 Indianapolis, IN 46240 Case No.: 14-08312 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: September 5, 2014 Court: United States Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: Hon. James K. Coachys Debtor's Counsel: Edward R Cardoza, Esq. RUBIN & LEVIN, P.C. 342 Massachusetts Ave Ste 500 Indianapolis, IN 46204 Tel: (317) 860-2931 Fax: (317) 453-8617 Email: ecardoza@rubin-levin.net - and - Elliott D. Levin, Esq. RUBIN & LEVIN, P.C. 342 Massachusetts Ave Suite 500 Indianapolis, IN 46204-2161 Tel: 317-634-0300 Fax: 317-453-8601 Email: edl@rubin-levin.net - and - John M. Rogers, Esq. RUBIN & LEVIN, P.C. 500 Marott Center 342 Massachusetts Avenue Indianapolis, IN 46204 Tel: 317-634-0300 Email: johnr@rubin-levin.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Carolyn Shadle, member. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/insb14-08312.pdf LAKSHMI HOSPITALITY: Case Summary & 20 Top Unsecured Creditors -------------------------------------------------------------- Debtor: Lakshmi Hospitality Group, LLC 445 Hotel Circle South San Diego, CA 92108 Case No.: 14-07199 Nature of Business: Hotel Group Chapter 11 Petition Date: September 5, 2014 Court: United States Bankruptcy Court Southern District of California (San Diego) Judge: Hon. Margaret M. Mann Debtor's Counsel: J. Bennett Friedman, Esq. FRIEDMAN LAW GROUP, P.C. 1900 Avenue of the Stars, 11th Floor Los Angeles, CA 90067-2534 Tel: 310-552-8210 Fax: 310-733-5442 Email: jfriedman@flg-law.com Total Assets: $12.7 million Total Liabilities: $8.1 million The petition was signed by Plyush Mehta, authorized signatory. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Mitesh Kalthia Loan $125,000 US Foodservice, Allen Division Food and $7,405 Beverage Supplies American Hotel Maintenance $5,995 and Supplies Dimension Development Management fees $4,413 Anthem Blue Cross Insurance $3,371 Kelly Galloway Wages, salaries $3,192 and commissions Kelly Galloway Wages, salaries $3,192 and commissions National Litigation Law Professional $2,446 Group services Hilda Richardson Wages, Salaries $1,511 and commissions Tracy Kossman Wages, salaries $1,339 and commissions Patsy Brown Wages, salaries $1,278 and commissions Mid America Lawn Maintenance Landscaping $1,235 Rhoda Harris Wages, salaries $1,220 and commissions Windstream-Buffalo Services $1,093 Maurice Irving Wages, salaries $1,090 and commissions Rochelle Freeze Wages, salaries $1,066 and commissions Stephen Mertz Wages, salaries $1,051 and commissions Tammy Benton Wages, salaries $1,049 and commissions Joseph Williams Wages, salaries $1,015 and commissions US Foodservice Complimentary $999 Breakfast LEHMAN BROTHERS: Bank Argues $63.5MM Claim Should be Paid in Full ----------------------------------------------------------------- Joseph Checkler, writing for The Wall Street Journal, reported that First BanCorp Puerto Rico wants a quick win in a fight with Lehman Brothers Inc., arguing its $63.5 million claim relating to an old swap agreement should be paid in full as a "customer" claim against the Lehman brokerage. According to the report, lawyers for First BanCorp pressed their case that because Lehman's brokerage maintained a "securities account" for First BanCorp, the swap agreement technically makes the bank a Lehman customer. 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) LENCO MOBILE: Files Chapter 11 Bankruptcy Petition -------------------------------------------------- Lenco Mobile Inc. on Sept. 8 disclosed that it has filed to reorganize its business operations under Chapter 11 of the federal Bankruptcy Code. Lenco's wholly owned subsidiary, Archer USA Inc., has also filed for reorganization under Chapter 11. Lenco and Archer have multiple objectives for pursuing reorganization under Chapter 11, including restructuring and strengthening their balance sheets and simplifying Lenco's capital structure. Lenco and Archer intend to continue to operate their current businesses in the ordinary course during the reorganization process. About Lenco Mobile Inc. Lenco Mobile Inc. provides consulting and technical services, together with proprietary technology, for the fast-growing market for mobile marketing and mobile customer engagement applications. The company provides customers, including leading wireless carriers, consumer brands and enterprises, with turnkey solutions to attract, retain and monetize relationships with customers. Lenco Mobile offers brand owners the ability to design, manage, and execute mobile-based marketing campaigns through a variety of technologies, including MMS messaging with improved messaging throughput, better quality, and reduced bandwidth usage on a per message basis. LIBERATOR INC: Amends HCI Convertible Notes ------------------------------------------- Liberator, Inc., amended and restated its outstanding 3% Convertible Note in the original principal amount of $375,000 issued by the Company to Hope Capital, Inc., on June 24, 2009, as amended, and the 3% Convertible Note in the original principal amount of $250,000 issued by the Company to the HCI on Sept. 2, 2009, as amended, to provide for a 3% unsecured promissory note in the principal amount of $700,000 to HCI. The Note is due on or before Aug. 31, 2019, and bears interest at the rate of 3% per annum. Principal and interest payments under the Note will be made on a monthly basis, starting on Oct. 1, 2014, and continuing on the first day of each month thereafter for 60 monthly payments. In the event the Company fails to make a monthly payment under the Note or the Company is subject to an bankruptcy event, subject to the Company's ability to cure such default, HCI may convert all or any portion of the outstanding principal, accrued and unpaid interest, and any other sums due and payable under the Note into shares of the Company's common stock at a conversion price equal to $0.10 per share. Conversion is subject to HCI not being able to beneficially own more than 9.99% of our outstanding common stock upon any conversion, subject to waiver by HCI. The Company has the right to prepay the Note, in whole or in part, subject to notice to HCI, without penalty. The Note satisfies any and all payments, fees, and penalties under the Original Notes. About Liberator Inc. Atlanta, Georgia-based Liberator is a vertically integrated manufacturer that designs, develops and markets products and accessories that enhance intimacy. Liberator is also a nationally recognized brand trademark, brand category and a patented line of products commonly referred to as sexual positioning shapes and sex furniture. Liberator, Inc., incurred a net loss of $288,485 on $13.84 million of net sales for the year ended June 30, 2013, as compared with a net loss of $782,417 on $14.47 million of net sales during the prior year. The Company's balance sheet at March 31, 2014, showed $3.37 million in total assets, $4.94 million in total liabilities and a $1.56 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 June 30, 2013. The independent auditors noted that the Company has a net loss of $288,485, a working capital deficiency of $1,233,352, an accumulated deficit of $8,047,685 and a negative cash flow from continuing operations of $103,765. These factors raise substantial doubt about the Company's ability to continue as a going concern. LIVINGVENTURES INC: Posts $84K Net Loss in June 30 Quarter ---------------------------------------------------------- LivingVentures Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $84,865 on $477,842 of revenue for the three months ended June 30, 2014, compared with a net loss of $501,922 on $154,089 of revenue for the same period last year. The Company's balance sheet at June 30, 2014, showed $1.8 million in total assets, $2.14 million in total liabilities, and a stockholders' deficit of $341,888. The Company sustained an accumulated net loss of $5.05 million for the period from Dec. 17, 1999 (inception) to June 30, 2014. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to raise additional capital and implement its business plan, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/jmq7kb LivingVentures is a proven leader in the Management of Senior Living Communities and is focused on providing Management and Related Services to owners of Assisted Living (AL) and Memory Care (MC) Facilities. LivingVentures is able to acquire and develop its own facilities and enter into Master Lease Agreements with Financial Partners. LOFINO PROPERTIES: Glicny Wants Trustee to Abandon Cub Food II -------------------------------------------------------------- Glicny Real Estate Holding LLC asks the Bankruptcy Court to compel Henry E. Menninger, Jr., Trustee for Lofino Properties, LLC and Southland 75, LLC, to abandon the real property and improvements located at 6134-6140 Wilmington Pike, Sugarcreek Township, Ohio 45459, known as "Cub Foods II", or, in the alternative, dismiss the chapter 11 case. Glincy asserts that Cub Food II does not generate any revenue. The continued operation of the store requires the payment of on-going expenses, including substantial unpaid, post-petition real property taxes and penalties. In addition, Glincy alleges that if Cub Foods II remains to be the property of the estate, the estate is obliged to pay all post-petition expenses associated with Cub Foods II. Thus, abandonment of the property or dismissal of the chapter 11 case is sought. However, on August 19, 2014, the debtors, Lofino Properties and Southland 75, LLC, objected to the motion filed by Glincy. The Debtors, on August 5, 2014, filed a motion to enforce the settlement agreement reached between the parties on June 16, 2014. The parties reached a settlement agreement regarding the Cub Foods II property which if consummated would allow for the transfer of the property. Thus, transfer of Cub Foods II property will render the motion by Glincy moot and academic. The trustee, Henry E. Menninger, Jr., also filed its objection to Glicny's motion. While Trustee admits that the amount owed to Glincy is greater than the value of Glincy's collateral, that alone is not sufficient cause to compel him to abandon Cub Foods II. Trustee contends that until the parties reach an agreement concerning the sale of Cub Foods II or the sale motion is resolved by final, non-appealable order, the proposed sale of Cub Foods II substantially benefits the estate. Therefore Cub Foods II is neither burdensome nor of inconsequential value and benefit to the estate. Glincy Real Estate Holding is represented by: BLOMGREN & BOBKA, CO., L.P.A. Gilbert E. Blomgren, Esq. Todd A. Bobka, Esq. 1370 Ontario Street, Suite 600 Cleveland, OH 44113 Tel: (216) 622-1234 Fax: (216) 622-1233 Email: gblomgren@blomgren-bobka.com tbobka@blomgren-bobka.com - and - Brian Sirower, Esq. Isaac M. Gabriel, Esq. QUARLES & BRADY LLP One Renaissance Square Two North Central Avenue Phoenix, AZ 85004-2391 Tel: (602) 229-5200 Fax: (602) 229-5960 Email: brian.sirower@quarles.com isaac.gabriel@quarles.com Lofino Properties is represented by: Paul H. Shaneyfelt, Esq. 315 Public Square, Suite 204 Troy, OH 45373 Email: paulshaneyfeltlaw@gmail.com Tel: (937) 216-7727 Southland 75 is represented by: Joshua M. Kin, Esq. 2700 Kettering Tower Dayton, OH 45423 Telephone: (937) 223-1130 Facsimile: (937) 223-0339 Email: jkin@pselaw.com Trustee Henry E. Menninger, Jr. is represented by: Raymond J. Pikna, Jr., Esq. WOOD & LAMPING LLP 600 Vine Street, Suite 2500 Cincinnati, OH 45202 Tel: (513) 852-6033 Fax: (513) 852-6087 E-mail: rjpikna@woodlamping.com About Lofino Properties & Southland 75 Dayton, Ohio-based Lofino Properties, LLC, which owns retail stores, sought bankruptcy protection (Bankr. S.D. Ohio Case No. 13-34099) on Oct. 4, 2013. Lofino Properties listed assets of $19.91 million and liabilities of about $13.15 million. A sister company, Southland 75 LLC, which owns a strip shopping center, sought bankruptcy protection (Bankr. S.D. Ohio Case No. 13-34100) on the same day. Southland 75 listed assets of $8.09 million and liabilities of $5.62 million. The Hon. Judge Lawrence S. Walter presides over the cases. According to the petitions, attorneys at Pickrel, Schaeffer, and Ebeling, in Dayton, Ohio, represent the Debtors as counsel. The petitions were signed by Michael D. Lofino, managing member. In re Southland 75, LLC, case no. 13-34100, has been substantively consolidated on lead case no. 13-34099. Henry E. Menninger, Jr., has been appointed the chapter 11 trustee, and is represented by Raymond J. Pikna, Jr., Esq., at Wood & Lamping LLP. Attorneys for lender, First Financial Bank, N.A., can be reached at Robert G. Sanker, Esq., and Jason V. Stitt, Esq., at Keating Muething & Klekamp PLL. Maria Mariano Guthrie, Esq., and Leon Friedberg, Esq., at Carlile Patchen & Murphy, represent Jamie Hadac at Foresite Realty, as Receiver. Larry J. McClatchey, Esq., at Kegler Brown Hill + Ritter, represents LCM Investments Management LLC. GLICNY Real Estate Holding, LLC, is represented by Isaac M. Gabriel, Esq., at Quarles & Brady LLP; and Gilbert E. Blomgren, Esq., at Blomgren & Bobka Co., L.P.A. LONG BEACH MEDICAL: Court OKs VCI as Medical Operations Advisor --------------------------------------------------------------- The Hon. Alan S. Trust of the U.S. Bankruptcy Court for the Eastern District of New York approved the application of Laura W. Patt, the patient care ombudsman of Long Beach Memorial Nursing Home, Inc., dba The Komanoff Center for Geriatric and Rehabilitative Medicine, to employ Vernon Consulting, Inc., as her medical operations advisor nunc pro tunc to March 17, 2014. As reported in the Troubled Company Reporter, VCI will, among other things: a) conduct interviews of patients and facility staff; b) review license and governmental permits; c) review adequacy of staffing, supplies and equipment; and d) review safety standards. VCI has agreed to reduce its rates by 15%. The ombudsman has been advised by VCI that the current hourly rates, which will be charged in respect of the primary members of the VCI engagement team for the ombudsman, are: Position Customary Rate Discounted Rate -------- -------------- --------------- Patient Care Ombudsman $425 $361 Medical Operations: Managing Director $400 $340 Director $375 $318 Sr. Managing Consultant $325 $276 Analyst $150 $127 From time to time, other VCI professionals may be involved in the cases as needed. Hourly discounted rates for the professionals range as: $127 to $340. Reasonable travel time will be charged at one-half of the applicable hourly rate unless actual work is performed during such travel time, in which case the full hourly rate will be charged. To the best of the ombudsman's knowledge, VCI is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Long Beach Medical Center Long Beach Medical Center, formerly Long Beach Memorial Hospital, was a 162-bed, community-based hospital offering primary, acute, emergency and long-term health care to residents of Long Beach, New York. Founded in 1922, LBMC was a teaching facility for the New York College of Osteopathic Medicine. LBMC was shut down after superstorm Sandy devastated the hospital in October 2012. Long Beach Memorial Nursing Home Inc, runs the The Komanoff Center for Geriatric and Rehabilitative Medicine, a 200-bed skilled nursing facility affiliated with LBMC. It provides services for residents requiring long term nursing home care and short term post-acute (sub-acute) care. Currently there are 127 residents of Komanoff. Long Beach Medical Center and Long Beach Memorial Nursing Home d/b/a The Komanoff Center for Geriatric and Rehabilitative Medicine, sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case Nos. 14-70593 and 14-70597) on Feb. 19, 2014. Long Beach Medical Center scheduled $17,400,606 in total assets and $84,512,298 in total liabilities. Garfunkel Wild P.C. serves as the Debtors' counsel. GCG, Inc., is the Debtors' claims and noticing agent. The Hon. Alan S. Trust presides over the cases. The U.S. Trustee has appointed three members to the official committee of unsecured creditors. The panel retained Klestadt & Winters, LLP, led by Sean C. Southard, Esq., as counsel. LONGVIEW POWER: Plan Exclusivity Period Extended Until Sept. 30 --------------------------------------------------------------- Judge Brendan L. Shannon extended Longview Power LLC's exclusivity period to file a plan of reorganization through and including September 30, 2014. The Debtors' soliciting exclusivity period is extended also through and including December 1, 2014. This is the Debtors' third request for extension of the exclusivity periods. Kvaerner filed a response to the Debtors' third extension motion. Kvaerner sought to object the first and second exclusivity motion of the debtor. However, during the hearing on the second exclusivity motion, Kvaerner expressed that if the amended plan is not filed by September, it will reserve it rights as to its position on the Debtors' retention of the exclusivity period. Kvaerner believes there is viable path for reorganization through an alternative plan that could get the Debtors out of the bankruptcy proceeding quickly. Thus, the extension of the exclusivity period is not objected by Kvaerner. Kvaerner North American Construction Inc. is represented by: DORSEY & WHITNEY (DELAWARE) LLP Eric Lopez Schnabel, Esq. Robert W. Mallard, Esq. Alessandra Glorioso, Esq. 300 Delaware Avenue, Suite 1010 Wilmington, DE 19801 Telephone: (302) 425-7171 Facsimile: (302) 425-7177 - and - DORSEY & WHITNEY LLP William G. Primps, Esq. 51 West 52nd Street New York, NY 10019 Telephone: (212) 415-9200 Facsimile: (212) 953-7201 - and - Jocelyn L. Knoll, Esq. Eric Ruzicka, Esq. 50 South Sixth Street Minneapolis, MN 55402 Telephone: (612) 492-6622 Facsimile: (212) 953-7201 About Longview Power LLC Longview Power LLC is a special purpose entity created to construct, own, and operate a 695 MW supercritical pulverized coal-fired power plant located in Maidsville, West Virginia, just south of the Pennsylvania border and approximately 70 miles south of Pittsburgh. The project is owned 92% by First Reserve Corporation (First Reserve or sponsor), a private equity firm specializing in energy industry investments, through its affiliate GenPower Holdings (Delaware), L.P., and 8% by minority interests. Longview Power, LLC, filed a Chapter 11 (Bank. D. Del. Lead Case 13-12211) on Aug. 30, 2013. The petitions were signed by Jeffery L. Keffer, the Company's chief executive officer, president, treasurer and secretary. The Debtor estimated assets and debts of more than $1 billion. Judge Brendan Linehan Shannon presides over the case. Kirkland & Ellis LLP and Richards, Layton & Finger, P.A., serve as the Debtors' counsel. Lazard Freres & Company LLC acts as the Debtors' investment bankers. Alvarez & Marsal North America, LLC, is the Debtors' restructuring advisors. Ernst & Young serves as the Debtors' accountants. The Debtors' claims agent is Donlin, Recano & Co. Inc. The Debtor disclosed assets of $1,717,906,595 plus undisclosed amounts and liabilities of $1,075,748,155 plus undisclosed amounts. Roberta A. DeAngelis, U.S. Trustee for Region 3, disclosed that as of September 11, 2013, a committee of unsecured creditors has not been appointed in the case due to insufficient response to the U.S. Trustee's communication/contact for service on the committee. MAUDORE MINERALS: Files Notice of Intention to Make BIA Proposal ---------------------------------------------------------------- Greg Struble, President and Chief Executive Officer of Maudore Minerals Ltd. on Sept. 8 disclosed that Maudore, together with its subsidiary Aurbec Mines Inc., have each filed a Notice of Intention to make a proposal under the Bankruptcy and Insolvency Act (Canada). At a meeting of the Board of Directors of Maudore held on September 7, 2014, the directors of Maudore passed a resolution to file a NOI in respect of Maudore. Immediately following that meeting, Board of Directors of Aurbec held a meeting at which they passed a similar resolution to file a NOI in respect of Aurbec. A NOI is the first stage of a process under the BIA which allows for a financial restructuring through a formal proposal (a "Proposal") made to creditors for the settlement of the indebtedness owing to them. Once the NOI has been filed, Maudore and Aurbec will each be granted up to an initial 30 days of protection from their creditors in order to enable them to pursue the option of a Proposal. During this period, the two companies will continue in their efforts to preserve value for all stakeholders. There can be no guarantee that either Maudore or Aurbec will be successful in their restructuring efforts. The failure of either of them to achieve their restructuring goals could result in them becoming bankrupt. Pursuant to the NOI filings, Samson Belair/Deloitte & Touche Inc. has been appointed as the trustee in the Proposal proceedings of Maudore and Aurbec, and in that capacity will monitor and assist the companies in their restructuring efforts. About Maudore Minerals Ltd. Maudore is a Quebec-based junior gold company in production, with mining and milling operations as well as more than 22 exploration projects. Five of these projects are at an advanced stage of development with reported current and historical resources and mining. Currently, all gold production is coming from the Sleeping Giant mine. The Corporation's projects span some 120 km, east-west, of the underexplored Northern Volcanic Zone of the Abitibi Greenstone Belt and cover a total area of 1,285 km2, with the Sleeping Giant Processing Facility within trucking distance of key development projects. MARTIFER AURORA: Can Extend Plan Filing Deadline Until October 3 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada granted Martifer Solar USA, Inc., and Martifer Aurora Solar LLC an extension of the periods during which only the Debtors may file a plan of reorganization through Oct. 3, 2014, and only they may solicit acceptances on that plan through Dec. 3, 2014. About Martifer 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. MF GLOBAL: SIPA Trustee's 72nd & 73rd Claim Objections Sustained ---------------------------------------------------------------- In the Chapter 11 case of MF Global Inc., Bankruptcy Judge Martin Glenn issued a "MEMORANDUM OPINION AND ORDER SUSTAINING THE TRUSTEE'S SEVENTY-SECOND AND SEVENTY-THIRD OMNIBUS OBJECTIONS TO CERTAIN CLAIMS" dated Sept. 4. The Opinion and Order addresses responses filed by certain claimants to the SIPA Trustee's Seventy-Second and Seventy-Third Omnibus Objections to General Creditor Claims (Post-Petition Loss Claims). The Court previously entered an order sustaining the Objections to claims as to which the Objections were uncontested. The Claimants are: (1) Frank Buckley; (2) Douglas Bry; and (3) a group of claimants referred to as the Calatrava Claimants. The Court heard oral argument on the Objection on Aug. 21, 2014. According to Judge Glenn, while each of the responses raises a different theory of recovery, each argument fails for substantially the same reason: Customers of a failed brokerage firm cannot recover in a SIPA proceeding for market losses that occur between the date the SIPA proceeding is commenced and the date on which their securities or commodities are returned to them. For that reason, the Court sustains the Objections. A copy of the Court's ruling is available at http://is.gd/QQTef0 from Leagle.com. About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. Bloomberg News reported that the court-approved disclosure statement initially told creditors with $1.134 billion in unsecured claims against the parent holding company why they could expect a recovery of 13.4% to 39.1% from the plan. As a consequence of a settlement with JPMorgan, supplemental materials informed unsecured creditors their recovery was reduced to the range of 11.4% to 34.4%. Bank lenders will have the same recovery on their $1.174 billion claim against the holding company. As a consequence of the settlement, the predicted recovery became 18% to 41.5% for holders of $1.19 billion in unsecured claims against the finance subsidiary, one of the companies under the umbrella of the holding company trustee. Previously, the predicted recovery was 14.7% to 34% on bank lenders' claims against the finance subsidiary. MID-WILSHIRE PROPERTY: Case Summary & Unsecured Creditor -------------------------------------------------------- Debtor: Mid-Wilshire Property LP 250 Fairview Road Westlake Village, CA 91361 Case No.: 14-bk-11960 Chapter 11 Petition Date: September 7, 2014 Court: United States Bankruptcy Court Central District of California (Santa Barbara) Judge: Hon. Deborah J. Saltzman Debtor's Counsel: Leslie A Cohen, Esq. LESLIE COHEN LAW PC 506 Santa Monica Bl Ste 200 Santa Monica, CA 90401 Tel: 310-394-5900 Fax: 310-394-9280 Email: leslie@lesliecohenlaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jeoung Lee, managing partner. The Debtor listed Dr. Leevil, LLC, as its largest unsecured creditor holding an unknown amount of claim. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/cacb14-11960.pdf MIDTOWN SCOUTS: Plan Confirmation Hearing Moved to Sept. 11 ----------------------------------------------------------- The hearing to consider confirmation of the approval of Midtown Scouts Square, LLC, et al.'s Joint Plan of Reorganization is continued to Sept. 11, at 10:00 a.m., in Courtroom 403, 4th Floor, 5151 Rusk, Houston, Texas. Judge Karen Brown entered the ruling in connection with the Debtors' continued hearing request. The confirmation hearing was previously set for Aug. 28, 2014. Furthermore, the exclusivity periods for the Debtors to confirm the Plan is also extended until Sept. 11, 2014, at 5:00 p.m. The deadline for the Richey Family Limited Partnership to file an objection to the Plan is also extended. As reported in the July 1, 2014 edition of The Troubled Company Reporter, the Debtors' Disclosure Statement revealed that the Reorganization Plan provides for these terms: (1) Allowed Administrative Claims and Priority Non-Tax Claims will be paid in cash in full; (2) Allowed Ad Valorem Claims of Taxing Authorities will be paid in cash full within 30 days of the Effective Date; (3) Allowed Non-Tax Priority Claims, if any, will be paid in cash in full within 30 days of the Effective Date; (4) Allowed Priority Tax Claims, if any, will be paid in full within 30 days of the Effective Date including interest at the statutory rate; (5) Allowed Secured Claim of Bank of Houston secured by liens on the Office Building will be paid by pursuant to the terms of the prepetition promissory note, with the unpaid prepetition amount due added on to the end of the respective note; (6) Allowed Secured Claim of Bank of Houston secured by liens on the Parking Garage will be paid by pursuant to the terms of the prepetition promissory note, with the exception that the term of the note will be extended by 60 months with the unpaid prepetition amount due added on to the end of the respective note; (7) Allowed Secured Claim of the Debtors' second lien lender (Mercantile Capital Corporation) will be converted to the permanent SBA Debenture (504 loan) and will be paid pursuant to terms of the pre-approved SBA note; (8) Allowed Non-Insider Unsecured Claims will be paid in full with interest at 5% over 60 months beginning on the Effective Date with quarterly distributions thereafter; (9) The Allowed Claims of Insiders, including any Allowed Claim of Richey Family Limited Partnership, Todd Richey and L.E. Richey, will be paid in full with interest at 5% over 60 months, or in the event the Court determines that the Richey's hold an equity interest in the Debtors, such claim will be converted to equity; (10) In exchange for converting the postpetition financing claim entitled to priority under Section 503(b)(l), his prepetition claim of $260,624, and the Equity Infusion, Atul Lucky Chopra will retain his 100% equity interest in the Reorganized Debtors, or a reduced equity percentage if the Court determines that the Richeys hold an equity interest in the Debtors. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/MIDTOWNSCOUTS_148_ds.pdf About Midtown Scouts Square Midtown Scouts Square Property, LP, and affiliate Midtown Scouts Square, LLC, own two commercial properties located in Midtown Houston, Texas. The first property is a mixed use 36,000-square- foot two-storey office/restaurant building originally constructed in 1975, while the second property is a 104,000-square foot eight- storey parking garage with ground floor retail space, both in Bagby Street, in Houston. The two entities sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13-32920) on May 9, 2013. The petitions were signed by Erich Mundinger as president of general partner. Judge Karen K. Brown presides over the case. In its schedules, MSS Property disclosed $17,408,328 in assets and $16,666,325 in liabilities. Edward L. Rothberg, Esq. at Hoover Slovacek, LLP, serves as the Debtor's counsel. Hawash Meade Gaston Neese & Cicack, LLP, serves as special litigation counsel. The U.S. Trustee has not appointed an official committee of unsecured creditors in the Debtors' bankruptcy cases. MIDTOWN SCOUTS: Gets Overwhelming Creditor Support for Plan ----------------------------------------------------------- Counsel to Debtors Midtown Scouts Square Property, LP, and Midtown Scouts Square, LLC, T. Josh Judd of Hoover Slovacek LLP submitted to the Bankruptcy Court a tabulation of balloting on the Debtors' Joint Chapter 11 Plan. The tabulation shows that for each of the voting classes, the Debtors got 89% to 100% acceptance of the Plan. A copy of the Balloting Tabulation is available for free at: http://bankrupt.com/misc/MIDTOWNSCOUTS_ballotrpt.PDF About Midtown Scouts Square Midtown Scouts Square Property, LP, and affiliate Midtown Scouts Square, LLC, own two commercial properties located in Midtown Houston, Texas. The first property is a mixed use 36,000-square- foot two-storey office/restaurant building originally constructed in 1975, while the second property is a 104,000-square foot eight- storey parking garage with ground floor retail space, both in Bagby Street, in Houston. The two entities sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13-32920) on May 9, 2013. The petitions were signed by Erich Mundinger as president of general partner. Judge Karen K. Brown presides over the case. In its schedules, MSS Property disclosed $17,408,328 in assets and $16,666,325 in liabilities. Edward L. Rothberg, Esq. at Hoover Slovacek, LLP, serves as the Debtor's counsel. Hawash Meade Gaston Neese & Cicack, LLP, serves as special litigation counsel. The U.S. Trustee has not appointed an official committee of unsecured creditors in the Debtors' bankruptcy cases. NATIONAL CONSUMER MORTGAGE: Suit v. Rio Properties Dismissed ------------------------------------------------------------ District Judge Philip M. Pro signed off on a stipulation dismissing the action, JOHN P. BRINCKO, as Chapter 11 Trustee of Debtor National Consumer Mortgage, LLC, Plaintiff, v. RIO PROPERTIES INC., Defendant, NO. 2:10-CV-00930-PMP-PAL (D. Nev.). A copy of the Aug. 28 Stipulation is available at http://tinyurl.com/qxb7b2hfrom Leagle.com. As reported by the Troubled Company Reporter on Feb. 20, 2014, a jury in Nevada found that the Rio Casino, owned by Caesars unit Rio Properties Inc., had received property of National Consumer Mortgage Inc., a residential mortgage company used as a front by the company's president Salvatore Favata when he used cashier's checks to gamble. The casino must surrender $1.48 million to the trustee after the jury ruled that the gambling money collected by the Rio Casino was raised through a $32 million Ponzi scheme. On June 3, 2014, the parties executed a settlement agreement resolving the disputes between them. On Aug. 26, 2014, the Bankruptcy Court entered an Order approving the Settlement. Terms of the Settlement were not disclosed in the Stipulation dismissing the lawsuit. Headquartered in Orange, California, National Consumer Mortgage LLC -- http://www.nationalconsumermortgage.com/-- is an independent mortgage brokerage that creates and processes home loans. National filed for chapter 11 protection on Apr. 3, 2006 (Bankr. C.D. Cal. Case No. 06-10429). Lorraine L. Loder, in Los Angeles, California, represented the Debtor. David L. Neale, Esq., at Levene, Neale, Bender, Rankin & Brill L.L.P., represented the Official Committee of Unsecured Creditors. The Debtor disclosed total assets of $1,102,135 and total debt of $32,846,858 as of the bankruptcy filing. On June 22, 2006, John P. Brinco was appointed as the Debtor's Chapter 11 trustee. He is represented by the lawyers at Baker & McKenzie LLP. NETWORK CN: OZ Management Reports 9.9% Equity Stake --------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, OZ Management LP and its affiliates disclosed that as of Dec. 31, 2013, they beneficially owned 12,865,631 shares of common stock of Network CN Inc. representing 9.99 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/s2GY5c About Network CN Causeway Bay, Hong Kong-based Network CN Inc. provides out-of-home advertising in China, primarily serving the needs of branded corporate customers. Network CN recorded a net loss of $3.89 million on $891,366 of advertising revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.21 million on $1.83 million of advertising revenues in 2012. The Company's balance sheet at March 31, 2014, the Company had $1.43 million in total assets, $9.82 million in total liabilities and a $8.38 million total stockholders' deficit. Union Power Hong Kong CPA, Limited, in Hong Kong SAR, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred net losses of $3,883,493, $1,210,629 and $2,102,548 for the years ended December 31, 2013, 2012 and 2011 respectively. Additionally, the Company used net cash in operating activities of $680,424, $582,753 and $388,278 for the years ended December 31, 2013, 2012 and 2011 respectively. As of December 31, 2013 and 2012, the Company recorded stockholders' deficit of $7,656,871 and $4,032,289 respectively. These factors raise substantial doubt about the Company's ability to continue as a going concern. NEW BREED HOLDING: S&P Withdraws 'B' CCR Following Acquisition -------------------------------------------------------------- Standard & Poor's Ratings Services said that it removed its ratings on New Breed Holding Co. from CreditWatch, where it had placed them with developing implications on July 30, 2014. At the same time, S&P withdrew the ratings on the company, including the 'B' corporate credit rating. On Sept. 2, 2014, XPO Logistics announced that it had completed its acquisition of New Breed Holding for a cash price of $615 million. Following XPO Logistics' announcement of its acquisition of New Breed in July, S&P placed its ratings on New Breeds on CreditWatch with developing implications and indicated that S&P would likely withdraw the ratings upon the transaction's closing because it expected New Breed's rated debt to be repaid in conjunction with the closing of the deal. NII HOLDINGS: Has $623.31-Mil. Net Loss in June 30 Quarter ---------------------------------------------------------- NII Holdings Inc. filed its quarterly report on Form 10-Q, disclosing a net loss of $623.31 million on $968.75 million of operating revenues for the three months ended June 30, 2014, compared to a net loss of $396.35 million on $1.26 billion of operating revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $7.44 billion in total assets, $8.02 billion in total liabilities and a stockholders' deficit of $583.55 million. A copy of the Form 10-Q is available at: http://is.gd/Pe074m About NII Holdings With headquarters in Reston, Virginia, NII Holdings is an international wireless operator with more than 7 million largely post-pay, business subscribers. * * * As reported by the TCR on March 5, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Reston, Va.-based wireless carrier NII Holdings Inc. (NII) to 'CCC' from 'CCC+'. "The downgrade follows the company's poor fourth-quarter 2013 results that were below our expectations, and its disclosure that its auditors have uncertainty about the company's ability to continue as a going concern," said Standard & Poor's credit analyst Allyn Arden. The TCR also reported on March 5, 2014, that Moody's Investors Service downgraded the corporate family rating (CFR) of NII Holdings Inc. ("NII" or "the company") to Caa1 from B3. The downgrade reflects the company's poor 2013 operating performance and the risk that the company will violate the covenants governing its Mexican and Brazilian subsidiary debt, which could trigger an event of default for up to $4.4 billion of debt issued by intermediate holding companies NII Capital Corp. and NII International Telecom S.C.A. NORALTA LODGE: S&P Assigns 'B' CCR & Rates C$150MM Notes 'B' ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to Nisku, Alta.-based private remote accommodations and catering services provider Noralta Lodge Ltd. The outlook is stable. At the same time, Standard & Poor's assigned its 'B' issue-level rating and '3' recovery rating to the company's proposed C$150 million senior secured second-lien notes. The '3' recovery rating on the notes indicates S&P's expectation of meaningful (50%-70%) recovery under its default scenario. "We have incorporated our general industry view for oilfield services' providers in assessing Noralta Lodge's credit profile. As such, we believe oilfield services companies need to focus on cost management, as exploration and production companies are increasingly focused on containing cost inflation," said Standard & Poor's credit analyst Michelle Dathorne. "Noralta Lodge has been able to generate fairly strong profitability, as its camp and catering services are a key component of its customers' remote operations. We expect the company should be able to maintain strong EBITDA margins on its core operations; however, we believe it will be challenged to generate the same returns on new ancillary businesses, as it expands its operations into managing third-party facilities," Ms. Dathorne added. The rating on Noralta Lodge reflects the company's narrow scope of operations as a niche service provider to Canadian oil and gas producers, the potential volatility of its profitability due to unanticipated contract delays or cancellations, and its limited competitive advantage. These weaknesses, which hamper the rating, are somewhat offset by the company's strong EBITDA margin performance and low balance-sheet leverage. Noralta Lodge is a private oilfield services company, founded in 1997, which owns and operates remote industrial lodging to exploration and production Canadian companies. Noralta Lodge's customer base is concentrated in Alberta's oil sands sector. The stable outlook reflects S&P's view that Noralta Lodge will be able to maintain its profitability metrics, specifically its EBITDA margins, fairly stable throughout S&P's rating forecast period. Based on its existing customer base, and some anticipated revenue growth in fiscal years 2015 and 2016, S&P believes its calculated EBITDA margin for the company should remain at about 40%. In addition, its reduced customer concentration should temper future volatility of its profitability metrics, as unanticipated contract cancellations should have less of an adverse effect on operating cash flow and margins than in the past. S&P could lower the rating if either the company's business risk or financial risk profiles weakened. If Noralta Lodge's EBITDA margin fell below 30%, due to either rising costs or falling revenues, S&P believes this would signal a weakening of its operating efficiency and overall business risk profile. In addition, if the company's spending accelerated, such that its weighted average debt to EBITDA and FFO to debt metrics deteriorated due to negative FOCF generation, S&P could lower the rating. Specifically, if S&P's estimated three-year weighted average FFO to debt ratio fell below 30%, it would lower the rating to 'B-'. As the rating already anticipates the company's debt metrics improving throughout S&P's outlook period, an upgrade would be contingent on the company strengthening its business risk profile. To accomplish this, S&P believes Noralta Lodge would have to broaden the scale and scope of its operations. S&P do not believe this would be possible without a major transformative acquisition. NORTHERN BLIZZARD: S&P Alters Outlook & Hikes Debt Rating to 'B' ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Calgary, Alta.-based oil and gas company Northern Blizzard Resources Inc. (NBRI) to positive from stable. At the same time, Standard & Poor's raised its senior unsecured debt rating on the company to 'B' from 'B-'. Standard & Poor's revised its recovery rating on the debt to '3' from '5', indicating its expectation of average (50%-70%) recovery in a default scenario. Standard & Poor's also affirmed its 'B' long-term corporate credit rating on NBRI. "The outlook revision reflects our view that NBRI's credit measures have improved significantly following the redemption of its notes," said Standard & Poor's credit analyst Aniki Saha- Yannopoulos. The company recently completed its IPO and received about C$330 million in proceeds. It used part of the proceeds to redeem US$148.75 million of its US$425 million unsecured notes it issued in Jan. 2014. Following the redemption, NBRI's credit measures have improved; S&P expects the company to exit 2014 with 1.5-2.0x debt to EBITDA instead of our original expectation of 2.5x-3.0x. "If NBRI continues to meet its production targets, we expect the company to maintain its debt-to-EBITDA at 1.5x-2.0x for the next 24 months," Ms. Saha-Yannopoulos added. NBRI is a small exploration and production company. It had about 88 million barrels of oil equivalent of gross proved reserves as of Dec. 31, 2014, and about 19,890 barrels per day production for 2014 to date. Almost all the company's production is from the Lloydminster Heavy Oil and Kerrobert Bakken area in southern Saskatchewan; it uses waterfloods for most of its production. Pro forma the debt redemption, NBRI will have about C$550 million in adjusted debt (S&P's adjustments include asset retirement obligations [about C$131 million] and stock-based compensation liabilities [about C$79 million]). The positive outlook reflects S&P's view that NBRI's credit profile will remain strong as it focuses on increasing its production from its assets. Given its higher production, S&P foresees the company maintaining credit protection measures that are strong for the ratings, with leverage projected at below 2x in the next two years. At current EBITDA and debt levels, NBRI has sufficient debt capacity to borrow the full commitment under its revolving credit facility without negatively affecting the ratings. S&P will likely raise the ratings in the next 12 months if NBRI continues its positive production growth (10%-15% annually) and maintain its competitive cost profile. This would lead to higher cash flow and S&P expects the company's debt-to-EBITDA to remain below 3x, in line with a "significant" financial risk profile. S&P could also raise the ratings if NBRI's financial sponsors continue to relinquish control while the company maintains its credit measures at current levels. S&P could revise the outlook to stable if NBRI cannot achieve the expected production growth (10%-15% annually), halting its growth momentum. Although unlikely in the near term, S&P might also revise the outlook to stable if debt-to-EBITDA deteriorates and stays above 3x, which could occur if the company undertakes a significant debt-financed acquisition or additional dividend payouts to shareholders. OCULUS INNOVATIVE: Incurs $70,000 Net Loss in Second Quarter ------------------------------------------------------------ Oculus Innovative Sciences, Inc., filed its quarterly report on Form 10-Q, disclosing a net loss of $70,000 on $3.39 million of total revenues for the three months ended June 30, 2014, compared with a net loss of $1.71 million on $3.37 million of total revenues for the same period in last year. The Company's balance sheet at June 30, 2014, showed $19.9 million in total assets, $6.47 million in total liabilities, and stockholders' equity of $13.4 million. The Company reported a loss of $70,000 for the three months ended June 30, 2014. At June 30, 2014 and March 31, 2014, the Company's accumulated deficit amounted to $134.08 million and $134.01 million, respectively. The Company had working capital of $2.98 million and $1.97 million as of June 30, 2014 and March 31, 2014, respectively. The Company expects the need to raise additional capital from external sources in order to continue the longer term efforts contemplated under its business plan. The Company expects to continue incurring losses for the foreseeable future and may need to raise additional capital to pursue its product development initiatives, penetrate markets for the sale of its products and continue as a going concern, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/gLtKwL About Oculus Innovative Sciences Oculus Innovative Sciences, Inc. -- http://www.oculusis.com/-- develops, manufactures and markets a family of products intended to significantly reduce the need for antibiotics as it prevents and treats infections in chronic and acute wounds while simultaneously enhancing wound healing through modes of action unrelated to the treatment of infection. Oculus Innovative Sciences has two principal subsidiaries -- Oculus Technologies of Mexico, S.A. de C.V., organized in Mexico, and Oculus Innovative Sciences Netherlands, B.V., organized in the Netherlands. On January 20, 2009, the Company dissolved its subsidiary, Oculus Innovative Sciences Japan, KK, organized under Japanese law. PENINSULA HOSPITAL: Has Access to Cash Collateral Until Dec. 31 --------------------------------------------------------------- The Bankruptcy Court authorized, in a 19th interim order, Lori Lapin Jones, as Chapter 11 trustee for Peninsula Hospital Center, et al., to use the cash collateral of the 1199 Funds and Revival Funding Co., LLC, until Dec. 31, 2014. The Trustee is authorized to use the cash collateral in connection with the wind down of the estate of the Debtor. The 1199 Funds agreed that there will be continued carved out from the proceeds payable to the 1199 Funds on account of the lien and secured claim it asserts against PGN an amount of up to $800,000 for the exclusive use of paying the commissions, fees and expenses of the Trustee, and the trustee's professionals. The trustee additional fee carveout will be segregated from the proceeds of the sale of the assets and properties of the Debtors and will be maintained by the trustee in a segregated account. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody served as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. In April 2013, the bankruptcy court discharged Daniel T. McMurray from his duties and responsibilities as patient care ombudsman. Richard J. McCord, Esq., was appointed by the Court as examiner in the Debtors' cases. His task was to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. Mr. McCord's own firm, Certilman Balin, & Hyman, LLP, served as the Examiner's counsel. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. Robert M. Hirsh, Esq., at Arent Fox LLP, in New York, N.Y., represents the Committee as counsel. At the behest of the U.S. Trustee, Lori Lapin Jones, Esq. was named Chapter 11 Trustee in March 2012, replacing Todd Miller, the Debtors' Chief Executive Officer. The Chapter 11 trustee is represented by LaMonica Herbst & Maniscalco LLP as her counsel. Storch Amini & Munves, PC, serves as the Chapter 11 Trustee's special counsel in connection with her investigation of the Debtors. She obtained approval to employ Garfunkel Wild, P.C., as her special health care, regulatory, corporate, finance and litigation counsel; and Foy Advisors LLC as consultant. PHILADELPHIA ENTERTAINMENT: Liquidating Plan Declared Effective --------------------------------------------------------------- Philadelphia Entertainment and Development Partners, L.P., notified the Bankruptcy Court that the Effective Date of its First Modified Chapter 11 Plan of Liquidation occurred on Aug. 18, 2014. As reported in the TCR on Sept. 2, 2014, the bankruptcy judge confirmed the Plan dated as of March 10, 2014; as modified on May 27. At the hearing, the judge also approved the adequacy of the information in the Disclosure Statement. The Debtor filed with the Court a plan of liquidation, which revolves around the sale of the Debtor's assets to repay claims. The Plan is the result of negotiations by and among the Debtor, RBS Citizens, National Association, the City of Philadelphia, and various of the Debtor's other creditors. RBS Citizens is a holder of a secured claim. RBS Citizens has agreed to allow holders of general unsecured claims to receive a specified percentage recovery on their claims before RBS Citizen will have any right to receive a distribution on account of its unsecured deficiency claim. The General Partner and Limited Partners of the Debtor are making a cash contribution to the Debtor in the aggregate amount of $750,000 and RBS Citizens will contribute to the Debtor $150,000 from the proceeds of the sale of certain real property of the Debtor, which amount is to be used by the Debtor or the Liquidation Trustee, as applicable, to (i) fund the costs and expenses of the Debtor for preparing for the Chapter 11 Case, (ii) fund the costs and expenses of administering the Chapter 11 Case, and (iii) pay in full all Allowed Administrative Expense Claims, Allowed Compensation and Reimbursement Claims, and Allowed Priority Claims. A full-text copy of the Disclosure Statement explaining the Plan is available at http://bankrupt.com/misc/PHILADELPHIAds0402.pdf Restructuring Support Agreement The Court authorized the Debtor to assume the restructuring, lockup and plan support agreement, dated Feb. 21, 2014, with RBS Citizens, National Association, successor by merger to Citizens Bank of Connecticut, as senior lender. No default exists under the RSA and, therefore, the Debtor is not required to (a) cure, or provide adequate assurance that the Debtor will promptly cure, any default under the RSA, (b) compensate, or provide adequate assurance that the Debtor will promptly compensate, RBS Citizens for any actual peeimiary loss resulting from any default, or (c) provide adequate assurance of future performance of the RSA. The RSA provided that the parties are granted all rights and remedies, including, without limitation, the right to specifically enforce the RSA in accordance with its terms. About Philadelphia Entertainment Philadelphia Entertainment and Development Partners, L.P., filed a Chapter 11 bankruptcy petition (Bankr. E.D. Pa. Case No. 14-12482) on March 31, 2014. Brian R. Ford signed the petition as authorized signatory. The Debtor estimated assets of at least $10 million and liabilities of at least $50 million. DLA Piper LLP (US) serves as the Debtor's counsel. Judge Magdeline D. Coleman oversees the case. PLUG POWER: Names Chris Hutter as Chief Financial Officer --------------------------------------------------------- Plug Power Inc. has appointed Chris Hutter as chief financial officer effective Nov. 6, 2014. Mr. Hutter will take over responsibilities of Mr. Dave Waldek who has served at Plug Power as interim CFO since April of 2013. Mr. Hutter, age 47, served as chief financial officer and executive vice president of PowerSecure International, Inc., an energy products and services company, from 2007 to 2014. Previously, Mr. Hutter served as national vice president of finance, treasurer, investors relations and assistant secretary of ADVO, Inc., an advertising and marketing firm, from 1993 to 2007. The Company said Mr. Hutter has extensive experience growing businesses profitably, and comes to Plug Power with the skills needed to guide and propel Plug Power's sales and financial momentum. "Chris has displayed the proven qualifications to positively expedite Plug Power's growth," said Andy Marsh, CEO of Plug Power. "The addition of Chris to Plug Power's developing management team adds an additional level of strength as we invest in prepping the business to handle larger levels of success. On behalf of the whole Plug Power team, I'd like to welcome Chris to Plug Power." "The energy industry is very dynamic and I'm excited by the unique growth opportunities that lie ahead for Plug Power. Plug Power has clearly established itself as the leader in the hydrogen fuel cell space, proving itself as the frontrunner in the material handling power market," Mr. Hutter said. "I look forward to being a significant contributor to helping Plug Power become a global powerhouse in the fuel cell industry." Mr. Hutter graduated magna cum laude graduate from Case Western Reserve University. Additionally, he holds an MBA from Duke University's Fuqua School of Business. The Company and Mr. Hutter entered into an executive employment agreement, dated Sept. 3, 2014, with a one year term which commences on Nov. 6, 2014, and which renews automatically. Pursuant to the terms of the Employment Agreement, Mr. Hutter receives an annual base salary of $400,000, is eligible to receive incentive compensation and is entitled to participate in and receive benefits under all of the Company's employee benefit plans. A full-text copy of the Employment Agreement is available at: http://is.gd/cZwgfV About Plug Power Plug Power Inc. is a provider of alternative energy technology focused on the design, development, commercialization and manufacture of fuel cell systems for the industrial off-road (forklift or material handling) market. Plug Power reported a net loss attributable to common shareholders of $62.79 million in 2013, a net loss of $31.86 million in 2012 and a net loss of $27.45 million in 2011. The Company's balance sheet at June 30, 2014, showed $221.10 million in total assets, $47.85 million in total liabilities, $2.37 million in series C redeemable convertible preferred stock, and $170.88 million in total stockholders' equity. Bankruptcy Warning "Our cash requirements relate primarily to working capital needed to operate and grow our business, including funding operating expenses, growth in inventory to support both shipments of new units and servicing the installed base, funding the growth in our GenKey "turn-key" solution which also includes the installation of our customer's hydrogen infrastructure as well as delivery of the hydrogen molecule, and continued development and expansion of our products. Our ability to achieve profitability and meet future liquidity needs and capital requirements will depend upon numerous factors, including the timing and quantity of product orders and shipments; the timing and amount of our operating expenses; the timing and costs of working capital needs; the timing and costs of building a sales base; the timing and costs of developing marketing and distribution channels; the timing and costs of product service requirements; the timing and costs of hiring and training product staff; the extent to which our products gain market acceptance; the timing and costs of product development and introductions; the extent of our ongoing and any new research and development programs; and changes in our strategy or our planned activities. If we are unable to fund our operations, we may be required to delay, reduce and/or cease our operations and/or seek bankruptcy protection," the Company said in the quarterly report for the period ended June 30, 2014. POLONIA TOWERS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Polonia Towers LLC 45-02 Ditmars Blvd, #1008 Astoria, NY 11105 Case No.: 14-44562 Chapter 11 Petition Date: September 5, 2014 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Hon. Carla E. Craig Debtor's Counsel: Barry D Haberman, Esq. 254 South Main Street, #404 New City, NY 10956 Tel: 845-638-4294 Fax: 845-638-6080 Email: bdhlaw@aol.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Gerardo Sanchez, managing member. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nyeb14-44562.pdf PORTNEUF ELECTRIC: Funds' Summary Judgment Motion Denied -------------------------------------------------------- In the case, THE TRUSTEES OF THE EIGHTH DISTRICT ELECTRICAL PENSION AND BENEFITS FUNDS, Plaintiff, v. JP MORGAN CHASE BANK, a Delaware Corporation, Defendant, CASE NO. 1:13-CV-00117-CWD (D. Idaho), Magistrate Judge Candy W. Dale granted the Funds' motion for summary judgment; denied Chase's motion to dismiss, and denied The Bank of Commerce's motion to intervene. A copy of the Court's Aug. 29, 2014 Memorandum Decision and Order is available at http://tinyurl.com/mx6twwhfrom Leagle.com. The lawsuit arises from the alleged conversion of a check presented for deposit at Chase. The Funds seek damages for conversion of a check meant for endorsement of the Funds. Portneuf Electric, LLC, an electrical contractor, entered into a Collective Bargaining Agreement with the International Brotherhood of Electrical Workers Local Union 449. As a result, Portneuf agreed to the terms and conditions of the Trust Agreements of the Plaintiff Benefit Trust Funds. The Agreement required Portneuf to contribute to the Funds for the benefit of its workers. In 2010, Portneuf became delinquent on its obligations to the Funds, and later filed for bankruptcy under Chapter 11 of the Bankruptcy Code on Sept. 9, 2011. Schedule B identified accounts receivables of $1,205,490, and personal property and equipment with an aggregate value of $481,013. The bankruptcy schedules indicated the Bank held a secured claim in Portneuf's accounts receivables, vehicles, and equipment, while the Funds held a $525,000.00 unsecured nonpriority claim. The Bank filed a proof of claim on Sept. 26, 2011, in the amount of $2,343,907, claiming a secured claim in Portneuf's inventory, equipment, and accounts receivables. On Oct. 18, 2011, Portneuf moved to dismiss its Chapter 11 case. The reason Portneuf provided in support of its motion was that it would be unable to formulate a Chapter 11 Plan, and it could no longer operate given its accounts receivables were owed to materialmen and suppliers who had filed claims and liens on its projects. Further, Portneuf could not liquidate given the Bank's secured claim in all of its equipment, thus leaving nothing for unsecured creditors. The bankruptcy court granted the motion on Dec. 1, 2011, and Portneuf's bankruptcy case was closed on Dec. 29, 2011. In June 2012, the Funds negotiated the issuance of a check from Battelle Energy payable jointly to Porneuf and the Funds for maintenance work performed by Portneuf for the Idaho National Laboratories. In exchange for the check, the Funds waived any right to pursue liens on Battelle Energy's real property. On June 29, 2012, Battelle Energy issued Check No. 0864149 in the amount of $75,636.74 drawn on its account with U.S. Bank and made payable to "PORTNEUF ELEC & EIGHTH DISTRICT ELECT PENSION AND BENEFITS F". The check was mailed to Portneuf. Battelle Energy intended that the Check was payable jointly to Portneuf Electric, Inc. and the Eighth District Electrical Pension and Benefits Fund. The parties to the agreement -- Battelle Energy, the Funds, and Portneuf -- intended for the amount to be paid to the Funds as payment for Portneuf's delinquent employee pension contributions. On or before July 15, 2012, Portneuf tendered the Check at Chase and the proceeds of the Check were deposited into Portneuf's account at Chase. The rubber stamp indorsement on the back of the check noted "FOR DEPOSIT ONLY PORTNEUF ELECTRICAL INC.," and designated an account number. The Funds did not indorse the check, and did not receive any benefit from the Check. The Funds filed a one count complaint for damages against Chase for conversion under Article 3 of the Uniform Commercial Code, Idaho Code Sec. 28-3-420, in the amount of the check plus interest. The Funds argue that summary judgment is appropriate, because it was clear from the ampersand sign that the check was payable to two joint payees, and Chase wrongfully negotiated the check without the required two party indorsement. By accepting the check for deposit into Portneuf's account without the required indorsements from both payees, the Funds argue Chase is liable for damages. Chase asserts that the payee name on the face of the Check was ambiguous, because a bank employee reviewing the Check would not know that Battelle Energy intended the Check to be jointly negotiated by Portneuf and the Funds. Chase argues that the Check appears to name one payee with a compound name. Accordingly, Chase argues it is not liable to the Funds for paying the Check to Portneuf, because the ambiguity in the name could have been avoided had Battelle provided the full names of the alleged payees. Chase contends that its deposit agreement with Portneuf insulates it from liability. Chase argues its deposit agreement with Portneuf contains a disclaimer that it has no duty to prevent a check from being deposited that may have missing or erroneous information. Chase accepted the Check via remote online deposit, which it explains is highly automated, and that it pays millions of checks every day. Accordingly, Chase argues that reasonable commercial standards do not require Chase or other deposit institutions to verify the accuracy of any particular check at the time of deposit. Chase's procedures for processing checks, including those remotely deposited, is to inspect some, but not all, of the checks. Chase contends that Portneuf and the Bank are necessary parties to the proceeding and that joinder is required because they may claim the proceeds of the Check. The Bank has moved to intervene, and alternatively, Chase has moved to dismiss for failing to join indispensable parties. Portneuf Electric, LLC, based in Ammon, Idaho, filed for Chapter 11 bankruptcy (Bankr. D. Idaho Case No. 11-41502) on Sept. 9, 2011. Aaron J. Tolson, Esq., at Aaron J Tolson Law Offices, serves as the Debtor's counsel. In its petition, the Debtor estimated $1 million to $10 million in both assets and debt. The petition was signed by Brett Harris, president. A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/idb11-41502.pdf POSITIVEID CORP: Obtains $111,250 Financing From JMJ Financial -------------------------------------------------------------- PositiveID Corporation received a funding of $111,250 pursuant to a $445,000 Promissory Note, as amended, dated Feb. 20, 2014, with JMJ Financial, the Company disclosed in a Form 8-K filed with the U.S. Securities and Exchange Commission. The Company received $100,000 of proceeds, net of original issue discount. The Company had previously received proceeds of $175,000 pursuant to two funding instalments in February and April, 2014, in the aggregate amount of $194,688. In August, 2014, the Lender converted $17,304 of principal and interest related to the February, 2014 financing, into 700,000 shares of the Company's common stock. The Note matures 24 months from the date funded, has a one-time 10% interest charge if not paid within 90 days, and is convertible at the option of the Lender into shares of the Company's common stock at the lesser of $0.042 per share or 60% of the average of the two lowest closing prices in the 25 trading days prior to conversion. The Note might be accelerated if an event of default occurs under the terms of the Note, including the Company's failure to pay principal and interest when due, certain bankruptcy events or if the Company is delinquent in its SEC filings. About PositiveID Delray Beach, Fla.-based PositiveID Corporation has historically developed, marketed and sold RFID systems used for the identification of people in the healthcare market. Beginning in early 2011, the Company has focused its strategy on the growth of its HealthID business, including the continued development of its GlucoChip, its Easy Check breath glucose detection device, its iglucose wireless communication system, and potential strategic acquisition opportunities of businesses that are complementary to its HealthID business. PositiveID reported a net loss attributable to common stockholders of $13.33 million on $0 of revenue for the year ended Dec. 31, 2013, as compared with a net loss attributable to common stockholders of $25.30 million on $0 of revenue in 2012. As of June 30, 2014, the Company had $1.19 million in total assets, $6.98 million in total liabilities, all current, $1.21 million in mandatorily redeemable preferred stock and a $6.99 million total stockholders' deficit. EisnerAmper LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has a working capital deficiency and an accumulated deficit. Additionally, the Company has incurred operating losses since its inception and expects operating losses to continue during 2014. These conditions raise substantial doubt about its ability to continue as a going concern. PWK TIMBERLAND: Mediation Held With Withdrawing Members ------------------------------------------------------- Mediation was held in the Chapter 11 case of PWK Timberland in August. Judge Robert Summerhays, on July 24, 2014, ordered that the proceeding involving the objections to claims and motion to determine impaired status relating to the Debtor and seven withdrawing members are assigned to mediation before Gerald H. Schiff. The mediation was set August 20, 2014. The movants agreed to commit funding to Gerald H. Schiff with an hourly fee of $350.00 which is to be shared equally by the debtor and the seven withdrawing members. PWK Timberland is represented by: Gerald J. Casey, Esq. Attorney at Law 613 Alano St. Lake Charles, LA 70601 Tel: (337)474-5005 The seven withdrawing members are represented by: Ronald J. Bertrand, Esq. 714 Kirby Street Lake Charles, LA 70601 Tel: (337) 436-2541 About PWK Timberland Lake Charles, Louisiana-based PWK Timberland LLC sought Chapter 11 protection (Bankr. W.D. La. Case No. 13-20242) on March 22, 2013. Gerald J. Casey, Esq., serves as counsel to the Debtor. The Debtor disclosed $15,038,448 in assets and $1,792,957 in liabilities as of the Chapter 11 filing. The Debtor has filed a first amended plan of reorganization and explanatory disclosure statement. A copy of the First Amended Disclosure Statement dated April 30, 2014, is available for free at http://bankrupt.com/misc/PWKTIMBERLAND_1stAmdDS.PDF As reported in the Dec. 11, 2013 edition of the Troubled Company Reporter, PWK Timberland's Plan provides that all allowed claims will be satisfied in full. The Plan contemplates (i) that the unsecured claims of former members are unimpaired; (ii) the Debtor does not believe there are any general unsecured creditors but if there are, they will be paid in full on the Effective Date; and (iii) equity holders agreed to forgo any payments under the plan until all impaired creditors have been paid in according to the terms of the Plan. QUARTZ HILL MINING: Appeals From Chapter 11 Dismissal Order ----------------------------------------------------------- Quartz Hill Mining appealed from an order of dismissal entered on August 4, 2014, dismissing its chapter 11 bankruptcy case with prejudice. Certificate of service was served on August 27, 2014 on all the parties therein. Quartz Hill Mining is represented by: MOFFA & BONACQUISTI, P.A. 1776 N. Pine Island Road #102 Plantation, FL 33322 Tel: 954-634-4733 Fax: 954-337-0637 E-mail: John@MBPA-Law.com About Quartz Hill Quartz Hill Mining, LLC sought protection under Chapter 11 of the Bankruptcy Code (Case No. 14-15419, Bankr. S.D.Fla.) on March 7, 2014. The case was initially assigned to Judge Robert A. Mark, but later transferred to Judge A. Jay Cristol's chambers. The Debtor is represented by Robert P. Charbonneau, Esq., and Jacqueline Calderin, Esq., at Ehrenstein Charbonneau Calderin, in Miami, Florida. The Debtor's special counsel is John A. Moffa, Esq., at Moffa & Bonacquisti, P.A., in Plantation, Florida. The Debtor said it has $58 million in assets and $7.5 million in debts. Affiliate Superior Gold, LLC, also sought Chapter 11 protection. The judge approved the joint administration of the two cases. RANCHER ENERGY: Reports $175K Net Loss for Q2 Ended June 30 ----------------------------------------------------------- Rancher Energy Corp. filed its quarterly report on Form 10-Q, disclosing a net loss of $175,360 on $nil of revenue for the three months ended June 30, 2014, compared with a net loss of $148,299 on $nil of revenue for the same period last year. The Company's balance sheet at June 30, 2014, showed $1.61 million in total assets, $102,165 in total liabilities and total stockholders' equity of $1.51 million. A copy of the Form 10-Q is available at: http://is.gd/LPG5wZ About Rancher Energy Denver, Colorado-based Rancher Energy Corp. (OTC BB: RNCHQ) -- http://www.rancherenergy.com/-- is an independent energy company that explores for and develops produces, and markets oil and gas in North America. Through March 2011, the Company operated four oil fields in the Powder River Basin, Wyoming. Effective March 1, 2011, the Company sold all of its oil and gas properties, which has allowed it to eliminate the majority of its debt and also provide financial resources during its continuing reorganization. The Company was formerly known as Metalex Resources, Inc., and changed its name to Rancher Energy Corp. in 2006. Rancher Energy Corp. was incorporated in the State of Nevada on Feb. 4, 2004. Rancher Energy filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case No. 09-32943) on Oct. 28, 2009. In its petition, the Company estimated assets and debts of between $10 million and $50 million each. The Debtor is represented by lawyers at Onsager, Staelin & Guyerson, LLC. The Company sold substantially all of its assets effective March 1, 2011, to Linc Energy Petroleum (Wyoming), Inc. in exchange for cash of $20 million plus other potential future consideration up to $825,000, and subject to other adjustments. The deal was approved Feb. 24, 2011. As reported in the Troubled Company Reporter on March 25, 2011, the Company delivered to the Bankruptcy Court a first amended Chapter 11 plan of reorganization, and first amended disclosure statement explaining that plan. The Bankruptcy Court approved the Second Amended Plan of Reorganization and accompanying Disclosure Statement of Rancher Energy Corporation on Sept. 10, 2012. The Plan became effective on Oct. 10, 2012. Rancher Energy reported of $148,299 on $0 of revenue for the three months ended June 30, 2013, as compared with a net loss of $79,217 on $0 of revenue for the same period during the prior year. The report of Rancher Energy's independent registered public accounting firm on the financial statements for the years ended March 31, 2013, and 2012, includes an explanatory paragraph relating to the uncertainty of the Company's ability to continue as a going concern. The Company has incurred a cumulative net loss of approximately $91 million for the period from incorporation, Feb. 4, 2004, to Sept. 30, 2013. REGAL ONE: Incurs $166K Net Loss for Q2 Ended June 30 ----------------------------------------------------- Regal One Corporation filed its quarterly report on Form 10-Q, disclosing a net decrease in net assets resulting from operations of $166,199 on $nil of investment income for the three months ended June 30, 2014, compared with a net increase in net assets resulting from operations of $115,853 on $nil of investment income for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $1.63 million in total assets, $16,707 in total liabilities and stockholders' equity of $1.61 million. A copy of the Form 10-Q is available at: http://is.gd/iVAzVb Los Angeles, Calif.-based Regal One Corporation is a financial services company which coaches and assists biomedical companies, through its network of professionals, in listing their securities on the over-the-counter bulletin board (OTC BB) market. REGIONAL CARE: Court Transfer Chapter 11 Case to Judge Whinery -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona transferred the Chapter 11 bankruptcy case of Regional Care Services Corporation and its debtor-affiliates to the Honorable Brenda Moody Whinery. About Casa Grande Community Hospital and Regional Care Services Regional Care Services Corp., Casa Grande Community Hospital d/b/a Casa Grande Regional Medical Center, Regional Care Physician's Group, Inc., and Casa Grande Regional Retirement Community sought Chapter 11 protection (Bankr. D. Ariz. Lead Case No. 14-01383) in Tucson, Arizona, on Feb. 4, 2014. The Debtors, one of the largest employers in Pinal County, operate an award winning, full service non-profit community hospital serving more than 65,000 patients each year from the largely rural communities of Casa Grande, Sacaton, Eloy, Florence and surrounding communities. CGRMC is a 177-licensed bed, general acute care hospital located in Casa Grande, Arizona. RCSC is the sole member and sponsor of CGRMC, RCPG and CGRRC. As of the Petition Date, CGRRC's management consists of Rona Curphy as President, Cherie McGlynn as Chairman, David Fitzgibbons as Vice Chairman, and John Robert McEvoy as Secretary/Treasurer. Michael McGrath, Esq., and Kasey C. Nye, Esq., at Mesch, Clark & Rothschild, P.C., in Tucson, Arizona; and Michael J. Pankow, Esq., and Joshua M. Hantman, Esq., at Brownstein Hyatt Farber Schreck, LLP, in Denver, Colorado, serve as counsel to the Debtor. Casa Grande Hospital estimated $50 million to $100 million in assets and liabilities. The Debtors have filed a Plan of Reorganization to effectuate the sale of substantially all of their assets to Phoenix-based Banner Health pursuant to a binding Asset Purchase Agreement dated Feb. 4, 2014. Banner Health is also providing $6.2 million of DIP financing. Banner Health is represented in the case by Robert M. Charles, Jr., Esq., and Susan M. Freeman, Esq., at Lewis Roca Rothgerber LLP, as counsel. ROBERT N. MORAN: No Quick Ruling in Suit Against U.S. Bank ---------------------------------------------------------- In the adversary proceeding, ROBERT N. MORAN, et al., Plaintiffs, v. U.S. BANK, N.A., AS CUSTODIAN, et al., Defendant, Adv. Proc. No. 13-90073 (Bankr. D. Hawaii), the debtor and his wife challenge a claim secured by a first mortgage on their residence. They seek partial summary judgment on their contentions that the promissory note and mortgage are void because an unlicensed mortgage broker originated the loan. Genuine disputes of material fact preclude summary judgment at this juncture, Bankruptcy Judge Robert J. Faris in Hawaii said in a Sept. 4 Memorandum of Decision available at http://is.gd/zpipm9from Leagle.com. In 1995, Mr. and Mrs. Moran signed a promissory note and a mortgage in favor of Applied Capital Mortgage, Inc., a California corporation ("ACM"). The loan was "table funded." Although ACM is the payee under the note and the mortgagee under the mortgage, ACM did not actually fund the loan. Instead, Countrywide Financial Corporation or one of its affiliates did. Many documents pertaining to the loan refer to Countrywide as the lender and "Applied Capital," "Applied Capital Mortgage," "Applied Capital Mortgage Inc.," or "Applied Capital Group" as the loan broker. Eventually, the ACM note and mortgage ended up in the hands of defendant U.S. Bank, as custodian for a securitization trust. After Mr. Moran filed a chapter 11 bankruptcy case, Mr. and Mrs. Moran filed an objection to the claim and a counterclaim seeking various relief. The Morans rely on the then-applicable Hawaii statute which provided that contracts with unlicensed mortgage brokers are "void and unenforceable." Before the legislature repealed the statute, the Hawaii Supreme Court held that it applied to "table funded" loans like the Morans' and that it rendered such loans largely unenforceable (absent equitable relief). According to Judge Faris, two uncertainties in the record preclude summary judgment at this point: 1. The Morans must show that an unlicensed mortgage broker was involved in the transaction. ACM has never had a mortgage brokers license under Hawaii law. But TM Hogan, Inc., a Hawaii corporation, did have a mortgage brokers license during 1995, and it was the registrant of the trade name "Applied Capital Mortgage Inc." during almost all of 1995. There is no information in the record about the relationship, if any, between ACM and the duly licensed Hawaii mortgage broker that used ACM's name as its trade name. 2. The Morans must show that ACM was compensated or expected compensation. Under the statute that was in effect in 1995, a "'[m]ortgage broker' means a person not exempt under section 454-2 who for compensation or gain, or in the expectation of compensation or gain, either directly or indirectly makes, negotiates, acquires, or offers to make, negotiate, or acquire a mortgage loan on behalf of a borrower seeking a mortgage loan." The record indicates that a check was issued at the loan closing to "Applied Capital Mortgage," with a California address. The record does not exclude the possibility that these funds were actually paid, not to the unlicensed California corporation, but rather to the duly licensed Hawaii entity that used "Applied Capital Mortgage, Inc." as its trade name. Robert Norton Moran, aka Bob Moran, filed a Chapter 11 petition (Bankr. D. Hawaii Case No. 10-03696) on Dec. 6, 2010. He estimated $1 million to $10 million in both assets and liabilities. A list of the Debtor's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/hib10-03696.pdf RESIDENTIAL CAPITAL: Court Tosses Suit by Deswal and Singh ---------------------------------------------------------- In the case, SUNITA DESWAL and PARS SINGH, Plaintiffs, v. U.S. NATIONAL ASSOCIATION, as TRUSTEE for MORGAN STANLEY MORTGAGE LOAN THROUGH CERTIFICATES, SERIES 2006-16AX, IDEAL MORTGAGE BANKERS LTD. d/b/a LEND AMERICA, GENERAL MOTORS ACCEPTANCE CORPORATION a/k/a GMAC MORTGAGE, SAXON MORTGAGE SERVICES, INC., and OCWEN FINANCIAL CORP., Defendants, NO. 13 CV 03354 (RJD) (MDG)(E.D.N.Y.), District Judge Raymond J. Dearie denied Plaintiffs' motion for permission to file a default judgment, and dismissed Plaintiffs' claims against all of the parties, including Lend America and GMAC. Plaintiffs Sunita Deswal and Pars Singh brought the action against multiple defendants for violating federal and state laws in connection with two mortgages for residential property they purchased in 2006. A copy of the Court's Memorandum and Order dated Aug. 28 is available at http://tinyurl.com/nwpmmmofrom Leagle.com. About Residential Capital Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities at March 31, 2012. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. ResCap sold most of the businesses for a combined $4.5 billion. The Bankruptcy Court in November 2012 approved ResCap's sale of its mortgage servicing and origination platform assets to Ocwen Loan Servicing, LLC and Walter Investment Management Corporation for $3 billion; and its portfolio of roughly 50,000 whole loans to Berkshire Hathaway for $1.5 billion. Judge Martin Glenn in December 2013 confirmed the Joint Chapter 11 Plan co-proposed by Residential Capital and the Official Committee of Unsecured Creditors. REVEL AC: Wants Until January 2015 to Removal Actions ----------------------------------------------------- The Bankruptcy Court will convene a hearing on Sept. 15, 2014, at 10:00 a.m., to consider the Revel AC, Inc., et al.'s request to file notices to remove actions until Jan. 15, 2015. In the Debtors' motion, the Debtors also requested that the removal extension will be 30 days after the entry of an order terminating the automatic stay with respect to any particular action, to file notices to remove actions. The period to remove actions will expire Sept. 17, 2014, absent an extension. About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13- 16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. RIVER CITY: Oct. 1 Hearing on Continued Use of Cash Collateral -------------------------------------------------------------- The Bankruptcy Court will convene a final hearing on Oct. 1, 2014, at 9:00 a.m., to consider River City Renaissance, LC, et al.'s motion for continued use of cash collateral. The Court held a hearing on the matter on Sept. 3. As reported in the Troubled Company Reporter on Aug. 8, 2014, Judge Kevin R. Huennekens gave the Debtors interim authority to use the cash collateral of U.S. Bank National Association, as trustee for the registered holders of Wachovia Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-C22, and U.S. Bank National Association, as trustee for the registered holders of Wachovia Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2006- C23. U.S. Bank asserts that the original principal indebtedness due under the RCR Note, as of October 2005, was approximately $30,350,000, and, as of April 2014, RCR owed to U.S. Bank approximately $29,622,593. U.S. Bank also asserts that the original principal indebtedness due under the RCR III Note, as of January 2006, was $6,300,000, and, as of April 2014, RCR III owed to U.S. Bank approximately $6,354,245. The Debtors said they have a vital need to use the cash collateral because without access or use of the cash collateral, they may not be able to provide the regular services to the tenants and occupants of their properties and pay utilities, vendors, and insurers. The Debtors said their inability to do any of these would cause immediate and irreparable harm to the estate. About River City River City Renaissance, LC, and River City Renaissance III, LC, sought Chapter 11 protection (Bankr. E.D. Va. Case Nos. 14-34080 and 14-34081) in Richmond, Virginia, on July 30, 2014. The cases are assigned to Judge Keith L. Phillips. Richmond, Virginia-based River City Renaissance estimated $10 million to $50 million in assets and debts. Renaissance III estimated less than $10 million in assets and debts. The Debtors have tapped Spotts Fain PC as counsel. * * * The Debtor filed an amended list of its largest unsecured creditors. A copy of the document is available for free at http://bankrupt.com/misc/RIVERCITY_57_amendedcreditorslist.pdf ROCKDALE RESOURCES: Posts $672K Net Loss in Q2 Ended June 30 ------------------------------------------------------------ Rockdale Resources Corporation filed its quarterly report on Form 10-Q, disclosing a net loss of $672,838 on $235,775 of oil and gas sales for the three months ended June 30, 2014, compared with a net loss of $236,630 on $38,572 of oil and gas sales for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $3.64 million in total assets, $340,840 in total liabilities, and stockholders' equity of $3.3 million. The Company has suffered recurring losses from operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company plans to generate profits by drilling productive oil or gas wells. However, the Company will need to raise the funds required to drill new wells through the sale of its securities, through loans from third parties or from third parties willing to pay the Company's share of drilling and completing the wells. The Company does not have any commitments or arrangements from any person to provide the Company with any additional capital. If additional financing is not available when needed, the Company may need to cease operations. The Company may not be successful in raising the capital needed to drill oil or gas wells. Any wells which the Company may drill may not be productive of oil or gas. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/wpyLSY Austin, Tex.-based Rockdale Resources Corporation (formerly Art Design, Inc.) was incorporated in the State of Colorado on Jan. 16, 2002. In April 2012 the Company discontinued its prior operations and became involved in the exploration and development of oil and gas. On May 4, 2012, the Company amended its articles of incorporation to change its name to Rockdale Resources Corporation. ROGERS BANCSHARES: Confirms Modified Joint Plan of Liquidation -------------------------------------------------------------- A bankruptcy judge confirmed the Modified Joint Plan of Liquidation, as proposed by Rogers Bancshares, Inc., and the Official Committee of Unsecured Creditors. The court authorized the proponents to modify the Plan. As reported in the Troubled Company Reporter on Sept. 1, 2014, the Debtors requested for the Plan revision after Bankruptcy Judge Richard Taylor expressed concerns regarding the indemnification and release provisions in the plan at the July 17 status conference. The original plan granted a release of claims held by third parties, which would have released anyone who held a right of indemnity against the company. In the revised plan, however, only those listed in section 11.05(a), a new provision, would grant each other a release. The revision also divides section 11.05 of the original plan into four sections: 11.05, 11.06, 11.07 and 11.08. Sections 11.06 and 11.07 clarify that creditors and equity holders cannot pursue claims or equity interests against the company or its assets outside the scope of the plan. Meanwhile, section 11.08 clarifies that the plan agent may seek to enforce these provisions. As reported by the TCR on Feb. 28, 2014, the plan designates and provides for the treatment of five claim classes and interests -- Class 1 senior debt, Class 2 indenture claims, Class 3 pari passu claims, Class 4 preferred stock, and Class 5 equity interest holders. All the claim classes are impaired. The chief liquidation officer will become the plan agent to assist Rogers Bancshares in performing its duties and obligations under the liquidation plan. About Rogers Bancshares Little Rock, Arkansas-based Rogers Bancshares Inc., filed for Chapter 11 relief (Bankr. E.D. Ark. Case No. 13-13838) on July 5, 2013. Bankruptcy Judge James G. Mixon presides over the case. Samuel M. Stricklin, Esq., and Lauren C. Kessler, Esq., at Bracewell & Giuliani, LLP, as well as W. Jackson Williams, Esq., at Williams & Anderson, PLC, represent the Debtor in its restructuring efforts. The Debtor estimated $10 million to $50 million in assets and debts. Rogers owes $41.3 million on three issues of junior subordinated debentures and $39.6 million on four issues of preferred stock. The petition was signed by Susan F. Smith, secretary. The Official Committee of Unsecured Creditors has hired Tyler P. Brown, Esq., and Jason W. Harbour, Esq., at Hunton & Williams LLP and James F. Downden, Esq., of the James F. Dowden PA firm as counsel; and Carl Marks Advisory Group LLC as financial advisors. On Nov. 25, 2013, the retention of Cheryl F. Shuffield as chief liquidation officer was approved by the Court. RONALD REAGAN ACADEMY: S&P Cuts Rating on 2007A Rev. Bonds to BB+ ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term rating to 'BB+' from 'BBB-' on Utah County, Utah's series 2007A charter school revenue bonds issued on behalf of Ronald Wilson Reagan Academy (RWRA). The outlook is stable. "The lower rating reflects our view of RWRA's consecutive years of operating deficits on a full-accrual basis, resulting in successive years of maximum annual debt service coverage of 1x, which is a level we consider very thin," said Standard & Poor's credit analyst Kenneth Gacka. "However, the stable outlook reflects the school's adequate cash levels and steady enrollment, which has been at full capacity over the last several years and provides some credit stability," continued Mr. Gacka. The rating reflects S&P's view of: -- The school's slim maximum annual debt service coverage of 1x in the last two audited fiscal years, and S&P's expectation that coverage will be similar in fiscal 2014, based on unaudited financials; -- The school's limited future revenue growth because it is currently at its enrollment cap according to its charter contract; and -- The potential that the school could lose its charter (as with all charter schools) prior to the bonds' final maturity. As of the fiscal 2013 audit, the school had $10.3 million of long- term debt outstanding, consisting of the series 2007A bonds. S.B. RESTAURANT: Court Extends Lease Decision Deadline to Jan. 12 ----------------------------------------------------------------- Bankruptcy Judge Erithe Smith on August 26, 2014, upon the motion by debtor S.B. Restaurant Co., extended the time for the Debtor to assume, assign or reject non-residential property leases through and including the earlier of January 12, 2015. The Debtors operate restaurants known as Elephant Bar. The debtors currently operate 29 restaurants that are each subject to the leases. On August 6, 2014, the Debtors entered into an asset purchase agreement with CM7 capital partners. The court, on August 22, 2014, approved the asset purchase agreement. Under the asset purchase agreement, the buyer has the ability to designate leases for assumption by the debtors and assignment to the buyer at a later time. Hence, the buyer designates the leases until the liquor license transfer process is completed. The restaurants' related lease obligations are naturally of critical importance to the debtors' post-closing obligations under the sale to the buyer under the asset purchase agreement. For the debtors to comply with this requirement under the asset purchase agreement and assume and assign the subject leases, the debtors need to extend the period during which they may assume or reject the leases. The denial of the request will, in effect, force the debtor to prematurely assume the leases which is to the prejudice of the debtors, creditors, and estates. S.B. Restaurant is represented by: Jeffrey N. Pomerantz, Esq. John W. Lucas, Esq. PACHULSKI STANG ZIEHL & JONES LLP 10100 Santa Monica Blvd., Suite 1300 Los Angeles, CA 90067-4114 Telephone: 310/277-6910 Facsimile: 310/201-0760 E-mail: jpomerantz@pszjlaw.com jlucas@pszjlaw.com About S.B. Restaurant Co. S.B. Restaurant Co. dba Elephant Bar Global Grill/Wok Kitchen, now a chain of 29 restaurants in seven states, filed a petition for Chapter 11 protection (Bankr. C.D. Cal. Case No. 14-13778) on June 17, 2014, in Santa Ana, California. The case is assigned to Judge Erithe A. Smith. The Debtors' counsel is Jeffrey N. Pomerantz, Esq., and John W. Lucas, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, California. The Debtors' chief restructuring officers are from Deloitte Transactions & Business Analytics LLP, while their investment banker is Mastodon Ventures, Inc. The Debtors' noticing claims and balloting agent is Rust Consulting Omni Bankruptcy. An official committee of unsecured creditors was appointed in the case of S.B. Restaurant Co. Debtors' cases. The panel comprises of (1) General Growth Properties Inc., c/o Julie Minnick Bowden of Chicago, IL; (2) The Macerich Company, c/o Bill Palmer of Pittsford, NY; and (3) Global Media Group c/o Mark Torres of Rancho Santa Margarita, CA. The Committee retained Cooley LP as its counsel. SCHROEDER INVESTMENT: Case Summary & 9 Top Unsecured Creditors -------------------------------------------------------------- Debtor: Schroeder Investment Partners, LLC dba The Friendly Buffalo 758 Independent DR Big Lake, MN 55309 Case No.: 14-43660 Nature of Business: Event Center, Bar and Restaurant Chapter 11 Petition Date: September 5, 2014 Court: United States Bankruptcy Court District of Minnesota (Minneapolis) Judge: Hon. Katherine A. Constantine Debtor's Counsel: Robert Kalenda, Esq. KALENDA LAW OFFICE 919 W St Germain St Ste 2000 St. Cloud, MN 56301 Tel: 320-255-8840 Email: dana@kalendalaw.com Total Assets: $11,732 Total Liabilities: $1.11 million The petition was signed by Patti Schroeder, member. A list of the Debtor's nine largest unsecured creditors is available for free at http://bankrupt.com/misc/mnb14-43660.pdf SCOTTSDALE VENETIAN: Confirmation Hearing Resumes Tomorrow ---------------------------------------------------------- The Bankruptcy Court continued until Sept. 10, 2014, at 11:00 a.m., the hearing to consider the confirmation of Scottsdale Venetian Village LLC's Fourth Amended Plan of Reorganization dated Feb. 14, 2014. As reported in the TCR on April 30, 2014, First National Bank of Hutchinson objected to the Plan. According to the Bank, the Debtor's Plan should not be confirmed for these reasons: (1) The Debtor cannot establish that the Plan is feasible because its projections are completely unrealistic and unsupported by any evidence to justify the drastic turnaround that this Plan projects; (2) The Debtor's treatment of the Bank's claim, with a 4.5% interest rate and 12-year term, does not reflect a market rate of interest or term given the high risks associated with the Loans; (3) The Plan is proposed in bad faith as the sole objective of this Plan is to cash out an insider, Perez Holdings II, LLC, years before the rest of the creditors, including over a decade before paying off the secured creditor; and (4) Glacier Development Companies LLC has not presented any sort of business plan or evidence that it can perform under the terms of the Membership Interest Purchase Agreement with Perez Holdings or the Plan that it would inherit. Bank of Hutchinson says the proposed cash infusions from Glacier Development in the amounts of $500,000 and $1,000,000 are inadequate, and the Debtors' projections are unobtainable. The Bank says that based on the fact that the Debtor's projections are unobtainable, the $1,000,000 reserve will evaporate almost immediately just to meet its debt service (even at the Debtor's proposed 4.5% interest rate) and/or the Debtor's ongoing expenses. According to the Bank, if there are any unexpected or unanticipated expenses, the cash infusion will be gone and thus the Debtor will not be able to cover those expenses. ADOR Agreement State of Arizona ex rel. Arizona Department of Revenue -- which asserts a secured claim of $237,000, a priority claim of $54,000 and a general unsecured claim of $3,777 -- says it has reached with the Debtor basic terms upon which to resolve its objection to confirmation of the Plan, and the Debtor's objection to its claims. While a stipulation is in preparation, ADOR filed a limited objection to preserve its rights and remedies in the event the agreement is not finalized. The Chapter 11 Plan As reported in the March 12, 2014 edition of the TCR, Scottsdale Venetian Village LLC has won approval of the disclosure statement explaining its proposed Chapter 11 plan. The bankruptcy judge approved the disclosure statement after the Debtor resolved the objection made by First National Bank of Hutchinson. Scottsdale Venetian Village amended the Plan documents on Feb. 27, 2014, to incorporate terms reached with the buyer for the Debtor's interests in the Days Hotel in Scottsdale, Arizona. According to the Fourth Amended Disclosure Statement, after arm's- length negotiations, Glacier Development Companies, LLC, entered into a membership interest purchase agreement with the Debtor and Perez Holdings. Glacier has already deposited $200,000 in escrow to serve as an earnest deposit. Pursuant to the Purchase Agreement, Glacier has a 30-day period in which to conduct its due diligence. During that time, Glacier can walk away from the sale for any reason. However, if Glacier does not walk away, the sale is due to close within approximately 30 days of the entry of a final order confirming the Plan. Glacier has a right to approve the terms of the Plan before confirmation. If the Purchase Agreement is consummated, several integrated transactions will occur. Upon closing, Glacier will receive 100% of the equity interests in the Debtor in exchange for a promissory note in the amount of $1,500,000 executed in favor of Perez Holdings. Glacier will deposit in a joint account in the name of Glacier and the Debtor, an additional $300,000, which when combined with the current earnest deposit, will make $500,000 available to be used by the Debtor to deal with claims, such as administrative and priority claims, as well as allowing the Debtor to offer discounts for cash to those with allowed claims. In addition, Glacier will deposit in an account an additional $1,000,000 as additional financial resources to provide further assurance of the Debtor's financial capability to meet its operational and Plan obligations post confirmation. Pursuant to a promissory note executed at closing, one year after confirmation of the Plan, Glacier will pay Perez Holdings $1,500,000. In the event that Glacier fails to make the payment due to Perez Holdings under its promissory note, the Purchase Agreement provides Perez Holdings the ability to foreclose upon, and regain, the equity interests in the Debtor. Additionally, pursuant to the Purchase Agreement, the Reorganized Debtor will provide bonuses of $115,000 and $30,000, respectively, to Shahram Sodiefi and Sara Stevens for their key roles in the operation, and subsequent transition, of the Property. The Plan proposes to treat claims and interests as follows: -- First National Bank of Hutchinson will receive full payment with interest in the form of a promissory note that will mature and become fully due and payable on the 12th anniversary of the effective date of the Plan. -- Maricopa County's secured claims will be paid in full in installments. If Maricopa County votes in favor of the Plan, it will receive a cash payment of $5,000 on the Effective Date that will be applied to outstanding real property taxes, with the balance to be paid in installments. -- Holders of allowed unsecured claims will be paid in full, with interest, in equal quarterly installments commencing on the Effective Date and concluding on the eight anniversary of the Effective Date. -- With respect to equity, if the purchase agreement is not consummated, the current interest holder(s) will retain their equity interests. If the purchase agreement is consummated, the buyer will own all of the equity interests in the Reorganized Debtor. A copy of the Fourth Amended Disclosure Statement dated Feb. 27, 2014, is available for free at: http://bankrupt.com/misc/Scottsdale_Ven_4th_Am_DS.pdf About Scottsdale Venetian Scottsdale Venetian Village, LLC, operates the Days Hotel located at 5101 N. Scottsdale Road, in Scottsdale, Arizona. The Company also operates Papi Chulo's Mexican Grill & Cantina, located immediately adjacent to the hotel. The hotel consists of 211 guest rooms and, among other things, facilities for meetings and banquets. Scottsdale Venetian Village filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 13-02150) on Feb. 19, 2013, in Phoenix, estimating at least $10 million in assets and less than $10 million in liabilities. The Debtor is represented by John J. Hebert, Esq., and Wesley D. Ray at Polsinelli Shughart, P.C., in Phoenix. Charles B. Foley, CPA, PLLC serves as the Debtor's accountant. As reported in the March 12, 2014 edition of the TCR, Scottsdale Venetian Village LLC has won approval of the disclosure statement explaining its proposed Chapter 11 plan. The bankruptcy judge approved the disclosure statement after the Debtor resolved the objection made by First National Bank of Hutchinson. Scottsdale Venetian Village amended the Plan documents on Feb. 27, 2014, to incorporate terms reached with the buyer for the Debtor's interests in the Days Hotel in Scottsdale, Arizona. SHOTWELL LANDFILL: Supplementary Ch.11 Trustee Order Entered ------------------------------------------------------------ Bankruptcy Judge Stephani W. Humrickhouse on Sept. 4 issued a supplementary order setting out bases for the Court's denial of the motion to appoint a Chapter 11 trustee in the cases of Shotwell Landfill, Inc., Capital Waste Transfer, LLC, Capital Recycling, LLC, Debris Removal Partners, LLC, Shotwell Transfer Station II, Inc., and King's Grading, Inc. A copy of the Court's Sept. 4, 2014 Supplementary Order is available at http://is.gd/MGB9Asfrom Leagle.com. On June 13, 2014, the court entered a summary order denying the emergency motion of David A. Cook and LSCG Fund 18, LLC to appoint a chapter 11 trustee in these consolidated cases. The Movants having appealed that order, and the Bankruptcy Court's supplementary order details the bases for the court's decision. About Shotwell Landfill, Inc. Raleigh, North Carolina-based Shotwell Landfill, Inc., filed a Chapter 11 petition (Bankr. E.D.N.C. Case No. 13-02590) in Wilson on April 19, 2013. Blake P. Barnard, Esq., William P. Janvier, Esq., and Samantha Y. Moore, Esq., at the Janvier Law Firm, PLLC, in Raleigh, N.C., represent the Debtor as counsel. William W. Pollock, Esq., at Ragsdale Liggett PLLC, in Raleigh, N.C., represents the Debtor as special counsel. The Debtor, in its amended schedules, disclosed $23,235,236 in assets and $10,049,020 in liabilities. Shotwell Landfill appointed Doug Gurkins as restructuring officer. * * * Judge Stephani W. Humrickhouse has terminated the exclusivity period within which the affiliate debtors of Shotwell Landfill Inc., may file a chapter 11 plan and disclosure statement. On August 25, 2014, secured creditor LSCG Fund 18, LLC, filed with the Bankruptcy Court a Second Amended Consolidated Chapter 11 Plan of Liquidation for Shotwell Landfill et al. The Plan states that the Debtors' creditors are best served if the landfill located at 4724 Smithfield Road, Wendell, North Carolina 27591, and all of the Debtors' property are managed, marketed, and liquidated. Within six months of the confirmation date (or at a later time as a liquidation trustee will determine only after consultation and approval by LSCG and the Unsecured Creditors' Committee), the Liquidation Trustee will conduct an auction of the property, including the Landfill. SOCKET MOBILE: Accumulated Deficit at $61.1-Mil. as of June 30 -------------------------------------------------------------- Socket Mobile, Inc., filed its quarterly report on Form 10-Q, disclosing that it was profitable in the quarter and six months ended June 30, 2014, but unprofitable in the quarter ended March 31, 2014. The Company was profitable in each of the first two quarters in 2013, but unprofitable in the third and fourth quarters, and unprofitable in total for fiscal 2013 in the amount of $620,493. As of June 30, 2014, the Company has an accumulated deficit of $61,101,284. The Company's cash balances at June 30, 2014 were $702,465, including $814,575 advanced on its bank lines of credit. At June 30, 2014, the Company had additional unused borrowing capacity of approximately $494,000 on its bank lines of credit. The Company's balance sheet at June 30, 2014 has a current ratio (current assets divided by current liabilities) of 0.5 to 1.0, and a working capital deficit of $3,492,700 (current assets less current liabilities). These circumstances raise substantial doubt about the Company's ability to continue as a going concern, according to the regulatory filing. The Company reported net income of $92,814 on $4.39 million of revenues for the three months ended June 30, 2014, compared with net income of $43,509 on $4.43 million of revenues for the same period last year. The Company's balance sheet at June 30, 2014, showed $8.62 million in total assets, $8.27 million in total liabilities and total stockholders' equity of $351,553. A copy of the Form 10-Q is available at: http://is.gd/MWDJKL Socket Mobile, Inc., manufactures mobile cordless barcode scanners and handheld computers for the business mobility markets. The Eureka Drive, Newark-based Company caters to clients in the retail, commercial services and healthcare. SPECIALTY PRODUCTS: Republic and NMBFiL Seek Joint Administration ----------------------------------------------------------------- Republic Powder Metals and NMBFiL, as new debtors, asked the bankruptcy court to direct the joint administration of their chapter 11 cases together with the cases of Specialty Products Holdings and Bondex, as initial debtors. The joint administration is for procedural purpose only. The new debtors are, likewise, seeking before the court that certain relief be extended to them as a result of the joint administration. On May 31, 2010 the initial debtors commenced reorganization by filing a chapter 11 case. On August 15, 2014, the new debtors filed before the court a chapter 11 case. The new debtors are affiliates of the initial debtors. On July 26, 2014, Republic, the initial debtors and International entered into a settlement term sheet setting forth the parties' agreement in principle to resolve all present and future asbestos personal injury claims related to the initial debtors and Republic. On the same date, NMBFiL and International entered into a settlement term sheet setting forth, likewise, the parties' agreement in principle to resolve all present and future asbestos personal injury claims related to NMBFiL. The term sheets contemplate the filing of a consolidated plan of reorganization for the debtors that will provide for the creation and funding of a trust or trusts for the benefit of current and future asbestos personal injury claimants of the debtors. In line with the request of joint administration, the new debtors request that certain relief granted to the initial debtors pursuant to the filing of a) consolidated list of creditors and b) consolidated list of the 30 asbestos plaintiff firms with the largest number of asbestos cases against the debtor be applied to them. Republic Powdered Metal and NMBFiL are represented by: Daniel J. DeFranceschi, Esq. Paul N. Heath, Esq. Zachary I. Shapiro, Esq. Tyler D. Semmelman, Esq. RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 North King Street Wilmington, DE 19801 Telephone: (302) 651-7700 Facsimile: (302) 651-7701 - and - Gregory M. Gordon, Esq. Dan B. Prieto, Esq. Paul M. Green, Esq. JONES DAY 2727 N. Harwood Street Dallas, TX 75201 Telephone: (214) 220-3939 Facsimile: (214) 969-5100 Republic powdered metal is a leader in the roof coating and restoration industry which provides exclusive products for roof and wall restoration, including an extensive line of roof coatings. NMBFiL is formerly known as Bondo Corporation. It is a manufacturer of auto body repair products for the automotive aftermarket and various other professional and consumer applications. In November 2007, NMBFiL sold substantially all of its assets and no longer has business operation. About Republic Powdered Metals Republic Powdered Metals, Inc., and affiliate NMBFiL, Inc. sought Chapter 11 protection (Bankr. D. Del. Case No. 14-12028) on Aug. 31, 2014. Republic provides exclusive products for roof and wall restoration, including an extensive line of roof coatings. It estimated assets of $10 million to $50 million and debt of less than $10 million as of the bankruptcy filing. The Debtors have sought joint administration of their Chapter 11 cases for procedural purposes only, with the chapter 11 cases of Specialty Products Holding Corp. and Bondex International, Inc. Specialty Products, a unit of RPM International Inc., is a manufacturer, distributor and seller of various specialty chemical product lines, including exterior insulating finishing systems, powder coatings, fluorescent colorants and pigments, cleaning and protection products, fuel additives, wood treatments and coatings and sealants, in both the industrial and consumer markets. Specialty and affiliate Bondex International filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 10-11780) on May 31, 2010. The Debtors have tapped Jones Day as counsel, Richards Layton & Finger, as co-counsel, and Logan and Company as the claims and notice agent. Specialty estimated assets and debts of $100 million to $500 million as of the bankruptcy filing. SRKO FAMILY: Lienholder Committee Proposes Second Amended Plan -------------------------------------------------------------- The Informal Mechanics Lienholder Committee in the Chapter 11 case of SRKO Family Limited Partnership filed on Aug. 28, 2014, a proposed Second Amended Plan and an explanatory disclosure statement. A copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/SRKOFAMILY_1157_ds.pdf The Lienholders Plan calls for the vesting of the Colorado Crossing project (or the unsold portions of Colorado Crossing). The existing limited and general partnership interests in SRKO will be canceled; and Reorganized SRKO will be owned by certain classes of creditors of SRKO and the Jannie Richardson bankruptcy estate. The Plan leaves open the prospect that all or any portion of Colorado Crossing may be sold prior to the Plan Effective Date. If all of Colorado Crossing remains unsold as of the Plan Effective Date, Reorganized SRKO will sell Filing 1 pursuant to the Star Mesa Contract; or, if that sale fails to close, will sell Filing 1 expeditiously as possible in the exercise of its reasonable business judgment. Reorganized SRKO will proceed with the development of the Vacant Land. Net proceeds from the development will be distributed to the creditors. Reorganized SRKO will be capitalized with an Exit Loan in the amount of $4 million, and Preferred Equity of an additional $5 million. Certain creditors will be given the opportunity to subscribe to additional Preferred Equity in Reorganized SRKO. The Informal Mechanics Lienholder Committee consists of G.E. Johnson Construction Company, Inc., Stresscon Corp., Mech-One, Inc., Olson Plumbing and Heating Company, Rial Heating and Air Conditioning, Inc., E Light Electric Services, Inc., and Bible Electric, Inc. Competing Plans As reported in the Troubled Company Reporter on Sept. 2, 2014, Jannie Richardson and Webelievetomorrow, LLC, submitted a proposed Plan of Reorganization for the Debtor. The proposed Plan provides that prior to the confirmation hearing, SRKO will conduct an auction of Colorado Crossing. If the auction results in one or more contracts for the sale of all of Colorado Crossing that are approved by the Bankruptcy Court by final order, then the Plan will provide for the consummation of any such contracts, to the extent the sales have not closed by the Plan Effective Date, and for the distribution of the net proceeds from the sales to the creditors of SRKO pursuant to the terms of the Plan through the Liquidation Trust. To the extent that the auction does not result in the Court- approved sale of all of Colorado Crossing, the Plan calls for the vesting of the Colorado Crossing project (or the unsold portions of Colorado Crossing), together with related contracts and leases, permits, licenses, and development rights, and any other assets, in WBT. WBT will have Class A and Class B members. Class A will be owned by Allen Richardson, Jeffrey Stinson and J Stinson and will hold either 100% or 95% of the voting power of the members. Although Class A will share in 100% of the profits or losses, the required payments under the Plan are calculated such that the virtually all of the profits are paid to the creditors through the Liquidation Trust. Class B will be owned by the Liquidation Trust and will hold either none or 5% of the voting power of all members. Class B interests will convert automatically to 99% of the Class A membership interests in the event of an uncured material default under the Plan, thus assuring that the Liquidation Trust will control WBT in the event of such a default. The beneficiaries of the Liquidation Trust will be the unsecured creditors of SRKO, including the Richardson Estate. On the Effective Date, WBT will receive $3.0 million in equity funding and will borrow $10.0 million secured by a first lien on all the property. From the funds, WBT will pay all administrative expenses including all DIP loans, all tax claims, all mechanic's liens against the Vacant Land and $1.5 million to the holders of the priority mechanic's liens against Filing 1. In addition, WBT will pay $3.0 million to the Liquidation Trust, the majority of which will be immediately distributable to the general unsecured creditors. A continued final hearing on the Disclosure Statement explaining the Richardson Plan is scheduled for Sept. 24, 2014, at 10:30 a.m. A copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/SRKOFAMILY_1131_ds.pdf About The SRKO Family LP The SRKO Family Limited Partnership, dba Colorado Crossing, is based in Colorado Springs, Colorado. SRKO Family is the owner of the financially troubled Colorado Crossing project. The Company was run by Colorado Springs developer Jannie Richardson. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case No. 10-13186) on Feb. 19, 2010. The Debtor disclosed $34,421,448 in assets and $80,619,854 in liabilities as of the Petition Date. Lee M. Kutner at Kutner Miller Brinen, P.C. represents the Debtor. On March 25, 2010, Jannie Richardson filed a Chapter 11 petition in the Court commencing the Richardson bankruptcy case. C. Randel Lewis was appointed as the Chapter 11 trustee in the Richardson case on Jan. 28, 2011. On March 11, 2011, the Bankruptcy Court entered an order approving a stipulation pursuant to which the Chapter 11 trustee in the affiliated Richardson Chapter 11 case was named as the manager of the Debtor's general partner. Craig A. Christensen, Esq., at Lindquist & Vennum LLP, represents C. Randel Lewis, the Chapter 11 trustee of the Jannie Richardson bankruptcy estate. SYNARC-BIOCORE HOLDINGS: S&P Affirms 'B-' Corp. Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating on Synarc-BioCore Holdings LLC and revised the outlook to stable from positive. "We revised our outlook on the company to stable from positive based on our expectation that the company will not generate meaningfully positive discretionary cash flow over the near term," said credit analyst Tulip Lim. "We expect margins will rise next year as the company realizes synergies from the merger and integration and transaction costs roll-off. However, given year- to-date revenue declines and higher merger, transaction, and integration costs this year than what we originally anticipated, we expect the company will incur discretionary cash flow deficits in 2014 and will not generate meaningfully positive discretionary cash flow in 2015." The outlook is stable and based on S&P's expectation that revenue trends will improve, that merger and integration costs will wind down, and that the company will achieve some synergies over the next couple of years. It also reflects S&P's expectation that liquidity will remain adequate over the near term. Upside scenario S&P could raise the rating if Synarc-BioCore manages the integration better than it currently expects and if the company's organic revenue grows at a mid-single-digit pace or more. In such a scenario S&P thinks the company would generate annual positive discretionary cash flow of about $10 million. Downside scenario S&P could lower the rating if contract signing remains depressed, integration challenges arise, and anticipated synergies are not achieved, leading to persistent discretionary cash flow deficits. This could occur if revenue continues to decline and EBITDA margins remain 500 basis points or more below S&P's expected normalized range of high teens to low 20%. In this case, S&P sees meaningful risk that the company will not be able to cover its interest costs and maintenance capital expenditure requirements. At this point, S&P would deem the capital structure to be unsustainable. TEM ENTERPRISES: Oct. 8 Hearing on Final Approval of Plan Outline ----------------------------------------------------------------- The Bankruptcy Court will convene a hearing on Oct. 8, 2014, at 1:30 p.m., to consider (i) final approval of adequacy of information in the Disclosure Statement; and (ii) confirmation of the Tem Enterprises Plan of Reorganization. The Court conditionally approved the Disclosure Statement and further ordered that the deadlines in relation to the Plan are: Sept. 24 ballot deadline Sept. 25 tabulation of ballots Sept. 26 objection deadline Oct. 1 replied deadline The Debtor has requested that the Court hold a combined hearing for its Plan and Disclosure Statement, stating that the Plan contemplates full payment to all administrative claimants, priority claimants and priority tax claimants and a 5-10% payment to all general unsecured creditors. The treatment will change in the event that this Chapter 11 is delayed further. Secured creditor AerLine Holdings LLC, is ready, willing and able to close pursuant to the Plan and conditional approval assists in the process. According to the Disclosure Statement, the Plan proposes that AerLine makes a New Capital Contribution in exchange for the New Equity in the Reorganized Debtor. The Reorganized Debtor will make distributions from the New Capital Contribution to pay all Allowed Unclassified Claims, Class 1 Claims and Class 2 Claims in full. Class 3 claims will be paid from the remaining Cash left in the New Capital Contribution and the Holders of such Allowed General Unsecured Claims in Class 3 will receive their Pro Rata portion of the Allowed amount of their Claims on the Effective Date of the Plan or when such Claim becomes Allowed, whichever is later. The interests of Holders of Old Equity Interests in Class 4 will be forever extinguished, canceled and terminated under the Plan. A copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/TemEnterprises_205_DS.pdf About Tem Enterprises Tem Enterprises dba Xtra Airways filed a Chapter 11 bankruptcy petition (Bankr. D. Nev. Case No. 14-13955) on June 4, 2014. Judge August B. Landis oversees the case. The Debtor disclosed $6,129,714 in assets and $18,386,432 in liabilities as of the Chapter 11 filing. Lisa Dunn signed the petition as president. McDonald Carano Wilson LLP serves as the Debtor's counsel. TLC HEALTH: Hearing on Sale of Assets Continued Until Sept 29 ------------------------------------------------------------- The Bankruptcy Court continued until Sept. 29, 2014, at 1:00 p.m., the hearing to consider results of auction and sale of substantially all of TLC Health Network's assets. Previous hearings were scheduled for July 17, July 23, and Aug. 25. At the Sept. 29 hearing, the Court will also consider the objections filed against the motion. On July 15, William K. Harrington, U.S. Trustee for Region 2, objected on a limited basis, stating that the Debtor did not state in the motion whether it has or had a policy prohibiting the transfer of personally identifiable information and if so whether such policy was in effect at the time it commenced the case. According to the U.S. Trustee, the Debtor sought authorization to sell substantially all of its assets, which would include its acute care hospital, a home health agency and a skilled nursing facility. On June 10, the Bankruptcy Court approved a sale and bidding process relating to the sale of substantially all assets of the Debtor. The Court authorized the secured lenders to credit bid at the auction, provided however, the secured lenders will satisfy any cure obligations associated with the assumption and assignment of an executory contract or unexpired lease with cash, and will be required to satisfy the claims and obligations of any secured lender in cash. As reported in the Troubled Company Reporter on Aug. 7, 2014, Stephen T. Watson, writing for The Buffalo News, reported that Lake Shore Health Care Center received another month to market itself to prospective buyers. According to the report, Lake Shore attorney Jeffrey A. Dove said at a hearing before U.S. Bankruptcy Court Chief Judge Carl L. Bucki that the hospital received three bids for pieces of its operations during a recent planned auction of its assets that later was canceled. The hospital sought, and received from Judge Bucki, permission to reject the two bids for its home health care network -- the highest was $1.3 million -- as insufficient, the report related. The Trustee is represented by: Joseph W. Allen, Esq., Assistant U.S. Trustee Olympic Towers 300 Pearl Street, Suite 401 Buffalo, NY 14202 Tel: (716) 551-5541 About TLC Health Network TLC Health Network filed a Chapter 11 petition (Bankr. W.D.N.Y. Case No. 13-13294) on Dec. 16, 2013. The petition was signed by Timothy Cooper as Chairman of the Board. The Debtor estimated assets of at least $10 million and debts of at least $1 million. Jeffrey A. Dove, Esq., at Menter, Rudin & Trivelpiece, P.C., serves as the Debtor's counsel. Damon & Morey LLP is the Debtor's Special Health Care Law and Corporate Counsel. The Bonadio Group is the Debtor's accountants. Howard P. Schultz & Associates, LLC is the Debtor's appraiser. The case is assigned to the Hon. Carl L. Bucki. A three-member panel composed of Cannon Design, Chautauqua Opportunities, Inc., and Jamestown Rehab Services has been appointed as the official unsecured creditors committee. Bond, Schoeneck & King, PLLC is the counsel to the Committee. The Committee has tapped NextPoint LLC as financial advisor. Gleichenhaus, Marchese & Weishaar, PC is the general counsel for Linda Scharf, the Patient Care Ombudsman of TLC Health. TRUMP INT'L GOLF COURSE: Defaults on $20-Mil. Loan -------------------------------------------------- Katy Stech, writing for Daily Bankruptcy Review, reported that a golf course in Puerto Rico that uses celebrity developer Donald Trump's name has defaulted on its borrowing agreement with municipal bondholders who extended more than $20 million to build the 36-hole luxury course. According to the report, in an Aug. 29 letter filed to public bond disclosures, the owner of The Trump International Golf Club Puerto Rico blamed its failure to pay $119,814.17 in August on "financial difficulties." TRUMP TAJ MAHAL: Atlantic City Casino Could Head for Bankruptcy --------------------------------------------------------------- Josh Kosman, writing for The New York Post, reported that the Trump Taj Mahal, the 24-year-old Boardwalk casino, has recently broken some of its loan covenants, and without a quick deal with its creditors could be headed for a Chapter 11 reorganization within days. According to the report, talks between Trump Entertainment Resorts -- which owns the Taj and its neighbor, the soon-to-close Trump Plaza -- and its creditors have not found an out-of-court solution. TRANSPERFECT INT'L: Kramer Levin's Dissolution Petition Tossed -------------------------------------------------------------- TransPerfect Global, the world's largest privately-held provider of language services and related technology solutions, on Sept. 8 disclosed that its largest operating subsidiary, TransPerfect Translations International, has successfully defeated a shareholder bid to dissolve the company. This loss culminates a series of losses endured by counsel Kramer Levin Naftalis & Frankel LLP (Kramer Levin) related to litigation brought to dissolve TransPerfect. At the hearing on June 26th, the Honorable Justice Melvin Schweitzer remarked, "This is the fullest house we've had, so [TransPerfect has] set a record," while presiding over proceedings in which approximately 100 TransPerfect employees appeared to support the company and oppose the dissolution bid. Kramer Levin partner Ron Greenberg went as far as alleging TransPerfect's corporate environment was "a war zone." The Court, however, rejected Greenberg's argument. "I am hearing an awful lot of things that have to do with squabbles . . . for my purposes, that's not enough," Justice Schweitzer stated during the proceedings, which resulted in multiple denials and included the dismissal of Kramer Levin's dissolution petition. TransPerfect's victory on the dissolution issue in New York Supreme Court was decisive. In a joint public statement prior to the hearing, TransPerfect Co-CEOs Phil Shawe and Liz Elting stated, "TransPerfect today is a global leader that has taken 22 years of hard work to build, and we can tell you unequivocally: the business is the strongest it has ever been . . . Revenues are up over 15 percent this year, and our clients, our employees, our vendors, and all stakeholders in our business are completely secure." Kramer Levin, after expending vast resources to litigate these unsuccessful claims against TransPerfect in New York, has now sought the Court's permission to withdraw all remaining claims against TransPerfect and its management. Justice Schweitzer summed it up best at the June 26th hearing when he compellingly stated, "The Court is of the view that anything which will contribute to keeping this company as successful as it has been outweighs the interests of any individual . . . [TransPerfect] appears to be a marvelous success and that should not be threatened in any way." Appreciative of the Court's conclusions and comments from the bench, immediately following the hearing, Co-CEOs Phil Shawe and Liz Elting stated, "We're both extremely pleased with the Court's decision; we view this as a fresh start, and major step forward for the company." About Kramer Levin Naftalis & Frankel LLP Kramer Levin is a full-service law firm with extensive capabilities and substantial experience. From offices in New York, Silicon Valley and Paris, they represent clients from Global 1000 companies to emerging growth entities across a wide range of industries. In addition to litigation and corporate capabilities, they have top tier practices in many other areas including corporate restructuring & bankruptcy, intellectual property, real estate, land use, mutual funds, tax, employment law, individual clients, employee benefits and business immigration. About TransPerfect Translations International, Inc. TransPerfect is a family of companies providing global business services in over 170 languages, from over 85 offices on 6 continents. TransPerfect Translations International is the company's largest operating subsidiary and is headquartered in New York City. TransPerfect provides a full range of language and business services including translation, interpretation, website globalization, subtitling/voiceovers, multicultural marketing, diversity and inclusion consulting, deposition services, and litigation support to multinational companies. UNIVERSAL COOPERATIVE: Court Sets September 30 as Claims Bar Date ----------------------------------------------------------------- The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware set September 30, 2014 at 4:00 p.m. (prevailing Eastern Time) as deadline for creditors of Universal Cooperatives Inc. and its debtor-affiliates to file their proofs of claim. Governmental units have until Nov. 7, 2014 at 4:00 p.m. (prevailing Eastern Time) to file their claims. Proofs of Claim can be sent by first-class mail, overnight courier, or hand-delivery to: Universal Cooperatives, Inc. Claims Processing Center c/o Prime Clerk, LLC 830 3rd Avenue, 9th Floor New York, NY 10022 About Universal Cooperatives As an inter-regional farm supply cooperative, Universal Cooperatives, Inc. consolidates the purchasing power of its members to procure, and/or manufacture, and distribute high quality products at competitive prices. Universal has 14 voting members and over 50 associate members. Eagan, Minnesota-based Universal Cooperatives and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14- 11187) on May 11, 2014. The debtor-affiliates are Heritage Trading Company, LLC; Bridon Cordage LLC; Universal Crop Protection Alliance, LLC; Agrilon International, LLC; and Pavalon, Inc. UCI do Brasil, a majority-owned subsidiary located in Brazil, is not a debtor in the Chapter 11 cases The cases are assigned to Judge Mary F. Walrath. Universal estimated $1 million to $10 million in assets and $10 million to $50 million in debt. Heritage estimated less than $10 million in assets and debt. The Debtors have tapped Travis G. Buchanan, Esq., Robert S. Brady, Esq., Andrew L. Magaziner, Esq., and Travis G. Buchanan, Esq., at Young Conaway Stargatt & Taylor, LLP; and Mark L. Prager, Esq., Michael J. Small, Esq., and Emil P. Khatchatourian, Esq., at Foley & Lardner LLP, as counsel; The Keystone Group, as financial advisor and Prime Clerk as notice and claims agent. Bank of America, N.A., as agent for the DIP Lenders, is represented by Daniel J. McGuire, Edward Kosmowski, Esq., and Gregory M. Gartland, Esq., at Winston & Strawn, LLP. The United States Trustee for Region 3 has appointed seven members to the Official Committee of Unsecured Creditors, which is represented by Sharon Levine, Esq., Bruce S. Nathan, Esq., and Timothy R. Wheeler, Esq., at LOWENSTEIN SANDLER LLP, in Roseland, New Jersey; and Jamie L. Edmonson, Esq., and Daniel A. O'Brien, Esq., at VENABLE LLP, in Wilmington, Delaware. UNIVERSAL COOPERATIVE: Has Until Dec. 7 to Make Lease Decisions --------------------------------------------------------------- The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware extended the deadline Universal Cooperatives Inc. and its debtor-affiliates to assume or reject unexpired leases of nonresidential real property until Dec. 7, 2014. The Debtors told the Judge Walrath that they are seeking authority to sell certain assets to BCHU Acquisition LLC and planning to assume and assign certain unexpired leases of nonresidential real property in connection with the ongoing sale Process. To the extent an unexpired lease is not assumed and assigned to the eventual purchaser of the assets, the Debtors' estates must determine whether to reject the unexpired leases or assume and assign such leases to another party. About Universal Cooperatives As an inter-regional farm supply cooperative, Universal Cooperatives, Inc. consolidates the purchasing power of its members to procure, and/or manufacture, and distribute high quality products at competitive prices. Universal has 14 voting members and over 50 associate members. Eagan, Minnesota-based Universal Cooperatives and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14- 11187) on May 11, 2014. The debtor-affiliates are Heritage Trading Company, LLC; Bridon Cordage LLC; Universal Crop Protection Alliance, LLC; Agrilon International, LLC; and Pavalon, Inc. UCI do Brasil, a majority-owned subsidiary located in Brazil, is not a debtor in the Chapter 11 cases The cases are assigned to Judge Mary F. Walrath. Universal estimated $1 million to $10 million in assets and $10 million to $50 million in debt. Heritage estimated less than $10 million in assets and debt. The Debtors have tapped Travis G. Buchanan, Esq., Robert S. Brady, Esq., Andrew L. Magaziner, Esq., and Travis G. Buchanan, Esq., at Young Conaway Stargatt & Taylor, LLP; and Mark L. Prager, Esq., Michael J. Small, Esq., and Emil P. Khatchatourian, Esq., at Foley & Lardner LLP, as counsel; The Keystone Group, as financial advisor and Prime Clerk as notice and claims agent. Bank of America, N.A., as agent for the DIP Lenders, is represented by Daniel J. McGuire, Edward Kosmowski, Esq., and Gregory M. Gartland, Esq., at Winston & Strawn, LLP. The United States Trustee for Region 3 has appointed seven members to the Official Committee of Unsecured Creditors, which is represented by Sharon Levine, Esq., Bruce S. Nathan, Esq., and Timothy R. Wheeler, Esq., at LOWENSTEIN SANDLER LLP, in Roseland, New Jersey; and Jamie L. Edmonson, Esq., and Daniel A. O'Brien, Esq., at VENABLE LLP, in Wilmington, Delaware. UPH HOLDINGS: Court Won't Nix Suit v. Leap, T-Mobile & Sprint ------------------------------------------------------------- Bankruptcy Judge Tony M. Davis in Austin, Texas, declined the requests of Leap Wireless International, Inc., Cricket Communications, Inc., Sprint Nextel Corp., Sprint Communications Company L.P. and T-Mobile USA, Inc., for the dismissal of the adversary proceedings filed against them by Lowell Feldman, Liquidating Trustee of the UPH Liquidating Trust. The defendants argue that the complaints failed to state a claim under Rule 12(b)(6) of the Federal Rules of Civil Procedure. The case is, LOWELL FELDMAN LIQUIDATING TRUSTEE OF UPH LIQUIDATING TRUST, Plaintiff, v. LEAP WIRELESS INTERNATIONAL, INC. et al., Defendants, Adv. Proc. No. 13-01102-TMD (Bankr. W.D. Tex.). A copy of the Court's Aug. 28, 2014 Memorandum Opinion is available at http://tinyurl.com/lv2zocufrom Leagle.com. The adversary proceedings were initially filed by Pac-West Telcomm, Inc., Tex-Link Communications, Inc., UniPoint Holdings, Inc., UniPoint Enhanced Services, Inc., UniPoint Services, Inc., nWire, LLC, and Peering Partners Communications, LLC. On Aug. 6, 2014, the Court entered an order substituting Lowell Feldman, Liquidating Trustee of the UPH Liquidating Trust as Plaintiff in adversary proceeding numbers 13-1102 and 13-1094. Presumably, a Motion to Substitute Mr. Feldman will be filed in adversary proceeding number 13-1096 as well. The Plaintiff seeks almost $19 million from Leap, $19 million from T-Mobile, and $5.4 million from Sprint. The Defendants are commercial mobile radio service ("CMRS") providers. Pac-West Telecomm, Inc. ("Pac-West") is a CLEC, or competitive local exchange carrier. When a cell phone customer places a call to someone served by Pac- West's network, Pac-West has no choice but to complete (terminate) the call by connecting it to the called party. When that call is placed within a defined geographic area called a "major trading area" or MTA, it is called an intraMTA call, and Plaintiff believes Pac-West is entitled to "reasonable compensation" for terminating that call under 47 C.F.R. Sec. 20.11(b) ("Rule 20.11"). When that call is made from one MTA to another MTA, it is called an interMTA call, and in that situation, the Plaintiff believes Pac-West is entitled to collect a tariffed charge for terminating the call. In the alternative, contends the Plaintiff, if the tariff that would otherwise apply to the interMTA call is invalid, as the Defendants have alleged, Pac-West can recover under quasi-contract or under state law equitable remedies such as quantum meruit or unjust enrichment. The Defendants argue that Pac-West is not entitled to any payment because "reasonable compensation" should be construed as, literally, nothing, and also say that this court should defer to the Federal Communications Commission ("FCC") or state regulators through a primary jurisdiction referral. Further, the Defendants contend that the state law theories under which the Plaintiff seeks to recover are preempted by federal telecommunication laws and regulations. The Court noted that should the Defendants succeed in terminating these suits, the Plaintiff's prospects for a material distribution to creditors in this bankruptcy case may be terminated, as these are the largest suits the Plaintiff has on file to recover money for creditors of UPH. About UPH Holdings UPH Holdings Inc. and several affiliates filed Chapter 11 petitions (Bankr. W.D. Tex. Lead Case No. 13-10570) on March 28, 2013. Judge Tony M. Davis oversees the case. Jennifer Francine Wertz, Esq., and Patricia Baron Tomasco, Esq., at Jackson Walker, L.L.P., serve as the Debtors' counsel. Q Advisors, LLC serves as financial advisors. UPH Holdings disclosed $26,917,341 in assets and $19,705,805 in liabilities as of the Chapter 11 filing. Other affiliates that sought Chapter 11 protection are: Pac-West Telecomm, Inc.; Tex-Link Communications, Inc.; Unipoint Holdings, Inc.; Unipoint Enhanced Services, Inc.; Unipoint Services, Inc.; Nwire LLC; and Peering Partners Communications LLC (Case Nos. 13-10571 to 13-10577). The five-member Official Committee of Unsecured Creditors in the Chapter 11 cases of UPH Holdings, Inc., Pac-West Telecomm Inc., and their affiliated debtors tapped Kelley Drye & Warren LLP as its counsel, and QSI Consulting, Inc. as its financial advisor. * * * UPH Holdings Inc. and its affiliated debtors said in a court filing that their Chapter 11 plan of reorganization officially took effect on July 1, 2014, three months after the U.S. Bankruptcy Court for the Western District of Texas confirmed the plan. The plan, which was confirmed on March 27, implements a settlement between UPH's official committee of unsecured creditors and its secured lender, Hercules Technology II, L.P. by establishing a liquidating trust to be funded or vested with all of UPH's assets. US RENAL CARE: S&P Keeps 'B' CCR Over Proposed $75MM Loan Add-On ---------------------------------------------------------------- Standard & Poor's Ratings Services said its 'B' corporate credit rating on Plano-based U.S. Renal Care Inc. is unchanged by the proposed $75 million add-on to its first-lien term loan. The company will use proceeds of the add-on coupled with some balance sheet cash to fund two acquisitions. The 'B' rating on the first-lien senior debt and 'CCC+' rating on the second-lien secured debt are unchanged. The recovery rating on the first-lien debt remains '3', reflecting S&P's expectation for meaningful (50%-70%) recovery in the event of a default, and the recovery rating on the second-lien debt remains '6', reflecting S&P's expectation for negligible (0%-10%) recovery in the event of a default. The ratings on U.S. Renal Care reflect S&P's view of the company's narrow business focus and reimbursement risk. The ratings also reflect the company's financial risk profile with leverage (adjusted debt to EBITDAR less net income attributable to non- controlling interests) expected to remain above 6x over the next year. RATINGS LIST U.S. Renal Care Inc. Corporate Credit Rating B/Stable/-- First-lien term loan B Recovery rating 3 Second-lien CCC+ Recovery rating 6 VESTCOM INT'L: S&P Assigns 'B' Credit Rating; Outlook Stable ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Little Rock, Ark.-based Vestcom International Inc. The outlook is stable. At the same time, S&P assigned a 'B' issue-level rating to the company's proposed $240 million senior secured credit facilities consisting of a $25 million revolver due 2019 and a $215 million first-lien term loan due 2021. The recovery rating is '3' indicating that lenders could expect meaningful (50% to 70%) recovery in the event of payment default. S&P assigned a 'CCC+' issue-level rating to the company's proposed $95 million second- lien term loan due 2022. The recovery rating is '6' indicating that second-lien lenders could expect negligible (0% to 10%) recovery in the event of a payment default. All ratings are subject to review upon receipt of final documentation. "The ratings reflect our view of Vestcom's significant debt burden, aggressive financial policy, and narrow business and channel focus," said Standard & Poor's credit analyst Bea Chiem. Proceeds from the issuance will refinance approximately $217 million of existing debt, pay an estimated $95 million dividend to existing shareholders, and cover other fees and expenses. Pro forma for the transaction, S&P estimates Vestcom will have about $320 million of lease-adjusted total debt outstanding. VIGGLE INC: Launches New Fantasy Football Game ---------------------------------------------- Viggle Inc. has partnered with STATS LLC, the world's leading sports technology, information and content provider, for the company's latest fantasy sports game. STATS recently built Vigoooal, Viggle's real-time game that allowed users to predict winners and answer trivia questions during the World Cup, and will manage development, web hosting and technical operations for Viggle's fantasy football offering. Viggle's decision to extend their relationship with STATS comes on the heels of a very successful World Cup collaboration. Forty-two percent of all Viggle users who watched and checked into World Cup matches played along with Viggle's companion games, which included Vigoooal and Viggle LIVE. Throughout the tournament, Vigoooal participants played 6.5 games on average, exemplifying the high level of active consumer engagement Viggle's companion games can drive. Prior to Vigoooal, STATS provided the data feed for Viggle's MYGUY NBA game. Now for the 2014 football season, Viggle is excited to announce the launch of Viggle Football. Starting 9/7, the new games for the upcoming NFL and college football seasons will allow users to score Viggle Points by: * Correctly predicting the final score, winning team and point difference * correctly predicting player and team performance stats during the game while watching. * Engaging with sponsored ads throughout the game "We are really excited to be expanding our relationship with an innovative company like STATS to provide our users an exciting game experience around both pro and college football," said Greg Consiglio, president and chief operating officer of Viggle. "Their unique gaming capabilities will enable significant reach and engagement among our users and help us deliver results for our advertising partners." "Viggle continues to pioneer innovation in real-time, second screen engagement while building the leading entertainment rewards and marketing platform, and STATS is proud to be their partner for sports content and gaming," said Eric Kutzin, associate vice president, Sales at STATS. "After the success of the Vigoooal World Cup game, our team is looking forward to a successful launch of the new and innovative games." The introduction of Viggle Football this September follows another record setting month in terms of Monthly Active Users (MAUs) and New Registered Users (NRUs) to the Viggle Platform. August marked the second consecutive month wherein Viggle established record highs for both these key metrics. For the month ending Aug. 31, 2014, Viggle had 1,027,690 monthly active users the first time the Viggle Platform broke 1 million active users in a given month -- and obtained more than 653,000 new registered users. About Viggle New York City-based Viggle Inc. is a loyalty marketing company. The Company has developed a loyalty program for television that gives people real rewards for checking into the television shows they are watching on most mobile operating system. Viggle users can redeem their points in the app's rewards catalog for items such as movie tickets, music, or gift cards. Viggle incurred a net loss of $91.40 million on $13.90 million of revenues for the year ended June 30, 2013, as compared with a net loss of $96.51 million on $1.73 million of revenues during the prior year. The Company's balance sheet at March 31, 2014, showed $68.09 million in total assets, $62.79 million in total liabilities, $37.54 million in series A convertible redeemable preferred stock, and a $32.23 million total stockholders' deficit. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and at June 30, 2013, has deficiencies in working capital and equity that raise substantial doubt about its ability to continue as a going concern. WESTMORELAND COAL: Amends 700,000 Shares Resale Prospectus ---------------------------------------------------------- Westmoreland Coal Company amended its registration statement with the U.S. Securities and Exchange Commission relating to the resale by the Westmoreland Retirement Plan Trust, The Kemmerer Coal Company Elkol-Sorensen Mine Pension Plan Trust and the Beulah & Savage Mines Hourly EES Pension Plan Trust of up to 700,000 shares of Westmoreland Coal Company common stock. The Company amended the Registration Statement to delay its effective date. The shares are being contributed and issued by the Company to the Trusts to fund certain obligations to the Company's pension plans. The shares of common stock will be sold by the trustees for the accounts of each of the Trusts. The Company will not receive proceeds from the sale of the securities. The Company has agreed to bear the expenses of registering the securities covered by this prospectus and any prospectus supplements. The Company's common stock is listed on NASDAQ Global Market under the symbol "WLB." On Sept. 3, 2014, the last reported sale price of the Company's common stock on the NASDAQ Global Market was $42.64 per share. A copy of the amended Form S-3 is available for free at: http://is.gd/tVaFoz 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 June 30, 2014, the Company had $1.58 billion in total assets, $1.84 billion in total liabilities and a $260.64 million total shareholders' 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. 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. XTREME POWER: Can Hire Spivey & Grigg as Litigation Counsel ----------------------------------------------------------- The Hon. Christopher Mott of the U.S. Bankruptcy Court for the Western District of Texas authorized Xtreme Power Systems LLC fka Xtreme Power Solutions LLC and its debtor-affiliates to employ Spivey & Grigg LLP as their special litigation counsel. Xtreme Power seeks to employ the law firm of Sprivey & Grigg as its special litigation counsel to represent them on a contingent fee basis in connection with a pending litigation against Electronic Concepts. Spivey & Grigg is an experienced civil-litigation firm and specializes in the preparation and the trial of civil disputes. Spivey does not represent any creditor or party in interest on matters for which they are to be retained. Further, Spivey and its attorneys have no material connections with the debtors, their creditors or any other party in interest or their respective attorneys. Xtreme Power is represented by: Shelby A. Jordan, Esq. Nathaniel Peter Holzer, Esq. Antonio Ortiz, Esq. JORDAN, HYDEN, WOMBLE, CULBERTH & HOLZER, P.C. 500 North Shoreline Blvd., Suite 900 Corpus Christi, TX 78401-0341 Telephone: (361) 884-5678 Facsimile: (361) 888-5555 E-mail: sjordan@jhwclaw.com pholzer@jhwclaw.com aortiz@jhwclaw.com 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- YOUNG INVESTMENTS: Case Summary & 4 Unsecured Creditors ------------------------------------------------------- Debtor: Young Investments Company c/o Robert C. Sorgini 300 North Federal Highway Lake Worth, FL 33460 Case No.: 14-30023 Chapter 11 Petition Date: September 5, 2014 Court: United States Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Hon. Paul G. Hyman, Jr. Debtor's Counsel: Alan R Crane, Esq. FURR & COHEN 2255 Glades Rd #337W Boca Raton, FL 33431 Tel: (561) 395-0500 Fax: (561) 338-7532 Email: acrane@furrcohen.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $10 million to $50 million The petition was signed by Robert C. Sorgini, president of Young Investments, Inc., general partner. A list of the Debtor's four largest unsecured creditors is available for free at http://bankrupt.com/misc/flsb14-30023.pdf ZAZA ENERGY: Regains Compliance with NASDAQ Listing Standards ------------------------------------------------------------- ZaZa Energy Corporation on Sept. 8 disclosed that it received a letter from the NASDAQ Stock Market on September 5, 2014 advising that the Company has regained compliance with Listing Rule 5550(a)(2), which requires the Company to maintain a minimum closing bid price of $1.00 per share. NASDAQ made this determination of compliance after the Company's bid price closed above $1.00 per share for 10 consecutive business days following the Company?s reverse stock split. "This is another positive step for the Company that eliminates uncertainty and distractions as ZaZa moves forward with its development program in East Texas." CFO Paul F. Jansen commented "This is another positive step for the Company that eliminates uncertainty and distractions as ZaZa moves forward with its development program in East Texas." About ZaZa Energy Corporation Headquartered in Houston, Texas, ZaZa Energy Corporation -- http://www.ZaZaEnergy.com-- is a publicly traded exploration and production company with primary assets in the Eagle Ford and Eagle Ford East resource plays in Texas. * Adrian to Head KCC's Strategic Communications Services Business ----------------------------------------------------------------- KCC, a Computershare company and premier provider of administrative-support services for the legal and financial industries, announced the launch of KCC's Strategic Communications Services, a new business offering that will provide communications guidance to companies during critical stages of transactional and sensitive situations. KCC has extensive experience with bankruptcy and class action matters and has seen the communication issues that companies face while undergoing these complex situations. The firm will now provide its clients communications support to ensure successful outcomes for a myriad of communication challenges that can arise as part of a restructuring, crisis or reputation management concern. "We've established a specialized solution that offers a new approach to communications for corporate situations such as bankruptcy, class action and litigation matters," said Bryan Butvick, KCC's President. "The new Strategic Communications Services team will complement the existing services in addition to bringing an entirely new option to clients." KCC's Strategic Communications Services will offer clients the opportunity to address communication issues as they arise and will feature scalable solutions to fit the needs of any size of restructuring, class action or corporate communication challenge. The new service offering, led by industry expert, Brenda Adrian, will assist clients in the development and implementation of communication plans and media strategies to ensure intended outcomes in restructurings, mergers, class action, litigation, management changes and time-sensitive transactions. The team specializes in creative strategies and execution to achieve intended results. Ms. Adrian joins KCC as a Managing Director and leads a dedicated team of consultants, with more than 35 years of combined experience. Previously, she served as the head of Sitrick and Company's East Coast Restructuring Practice where she led crisis planning, reputation management and litigation cases. About KCC KCC -- http://www.kccllc.com-- a Computershare company, provides administrative-support services that help legal professionals realize time and cost efficiencies. With an integrated suite of corporate restructuring, class action, legal document management and strategic communications solutions, KCC alleviates the administrative challenges of today's legal processes and procedures. KCC has gained client and industry recognition for its industry expertise, professional-level client service and proprietary technologies. About Computershare Limited (CPU) Computershare (ASX:CPU) -- http://www.computershare.com-- is a global market leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications. It also specializes in corporate trust, mortgage, bankruptcy, class action, utility and tax voucher administration, and a range of other diversified financial and governance services. Founded in 1978, Computershare is renowned for its expertise in high integrity data management, high volume transaction processing and reconciliations, payments and stakeholder engagement. Many of the world's leading organizations use us to streamline and maximize the value of relationships with their investors, employees, creditors and customers. Computershare is represented in all major financial markets and has over 14,000 employees worldwide. * Large Companies With Insolvent Balance Sheet ---------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 129.2 (9.4) 0.4 ABSOLUTE SOFTWRE ALSWF US 129.2 (9.4) 0.4 ABSOLUTE SOFTWRE OU1 GR 129.2 (9.4) 0.4 ADVANCED CELL TE T2N1 GR 5.6 (20.7) (19.6) ADVANCED CELL TE ACTCD US 5.6 (20.7) (19.6) ADVANCED EMISSIO ADES US 106.4 (46.1) (15.3) ADVANCED EMISSIO OXQ1 GR 106.4 (46.1) (15.3) ADVENT SOFTWARE ADVS US 452.2 (86.0) (99.3) ADVENT SOFTWARE AXQ GR 452.2 (86.0) (99.3) AEMETIS INC AMTX US 95.4 (1.1) (18.1) AGILE THERAPEUTI AGRX US 66.3 48.3 48.9 AIR CANADA-CL A AIDIF US 10,522.0 (1,822.0) (226.0) AIR CANADA-CL A ADH TH 10,522.0 (1,822.0) (226.0) AIR CANADA-CL A ADH GR 10,522.0 (1,822.0) (226.0) AIR CANADA-CL A AC/A CN 10,522.0 (1,822.0) (226.0) AIR CANADA-CL B AC/B CN 10,522.0 (1,822.0) (226.0) AIR CANADA-CL B AIDEF US 10,522.0 (1,822.0) (226.0) ALLIANCE HEALTHC AIQ US 468.1 (131.0) 59.7 AMC NETWORKS-A AMCX US 3,685.9 (396.1) 689.3 AMC NETWORKS-A 9AC GR 3,685.9 (396.1) 689.3 AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2) AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 AMYRIS INC AMRS US 236.8 (112.5) 33.5 AMYRIS INC 3A0 GR 236.8 (112.5) 33.5 AMYRIS INC 3A0 TH 236.8 (112.5) 33.5 ANGIE'S LIST INC ANGI US 128.4 (36.6) (54.9) ANGIE'S LIST INC 8AL TH 128.4 (36.6) (54.9) ANGIE'S LIST INC 8AL GR 128.4 (36.6) (54.9) ARRAY BIOPHARMA ARRY US 139.1 (25.7) 68.9 ASPEN AEROGELS I AP1 GR 88.2 (80.7) (5.2) ASPEN AEROGELS I ASPN US 88.2 (80.7) (5.2) ASTERIAS BIO ASTY US 1.9 (5.1) (6.7) AUTOZONE INC AZ5 TH 7,371.8 (1,808.2) (1,016.1) AUTOZONE INC AZOEUR EU 7,371.8 (1,808.2) (1,016.1) AUTOZONE INC AZO US 7,371.8 (1,808.2) (1,016.1) AUTOZONE INC AZ5 GR 7,371.8 (1,808.2) (1,016.1) AVALANCHE BIOTEC AAVL US 1.1 (0.7) (0.9) AVALANCHE BIOTEC AVU GR 1.1 (0.7) (0.9) AXIM BIOTECHNOLO AXIM US 0.1 (0.1) (0.1) BENEFITFOCUS INC BNFT US 141.0 (14.6) 52.3 BENEFITFOCUS INC BTF GR 141.0 (14.6) 52.3 BERRY PLASTICS G BERY US 5,419.0 (118.0) 654.0 BERRY PLASTICS G BP0 GR 5,419.0 (118.0) 654.0 BRP INC/CA-SUB V BRPIF US 2,019.7 (17.0) 172.7 BRP INC/CA-SUB V DOO CN 2,019.7 (17.0) 172.7 BRP INC/CA-SUB V B15A GR 2,019.7 (17.0) 172.7 BURLINGTON STORE BURL US 2,547.8 (136.3) 124.8 BURLINGTON STORE BUI GR 2,547.8 (136.3) 124.8 CABLEVISION SY-A CVC US 6,701.1 (5,133.2) 338.4 CABLEVISION SY-A CVY GR 6,701.1 (5,133.2) 338.4 CABLEVISION-W/I 8441293Q US 6,701.1 (5,133.2) 338.4 CABLEVISION-W/I CVC-W US 6,701.1 (5,133.2) 338.4 CADIZ INC CDZI US 57.9 (45.6) 4.7 CADIZ INC 2ZC GR 57.9 (45.6) 4.7 CAESARS ENTERTAI CZR US 27,069.4 (2,578.4) 1,716.6 CAESARS ENTERTAI C08 GR 27,069.4 (2,578.4) 1,716.6 CALLIDUS CAPITAL CBL CN 444.5 (4.3) - CALLIDUS CAPITAL 28K GR 444.5 (4.3) - CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CASELLA WASTE CWST US 656.6 (7.6) (11.6) CATALENT INC CTLT US 3,041.6 (387.0) 268.2 CATALENT INC 0C8 GR 3,041.6 (387.0) 268.2 CATALENT INC 0C8 TH 3,041.6 (387.0) 268.2 CC MEDIA-A CCMO US 14,752.2 (9,315.2) 1,225.6 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CENVEO INC CVO US 1,202.6 (548.6) 162.3 CHOICE HOTELS CHH US 628.4 (412.5) 184.3 CHOICE HOTELS CZH GR 628.4 (412.5) 184.3 CIENA CORP CIEN US 2,100.4 (45.2) 889.3 CIENA CORP CIE1 GR 2,100.4 (45.2) 889.3 CIENA CORP CIE1 TH 2,100.4 (45.2) 889.3 CIENA CORP CIEN TE 2,100.4 (45.2) 889.3 CINCINNATI BELL CBB US 2,176.9 (556.0) 337.7 CORINDUS VASCULA CVRS US 0.0 (0.0) (0.0) CROWN BAUS CAPIT CBCAE US 0.0 (0.0) (0.0) DENNY'S CORP DE8 GR 284.2 (0.0) (21.5) DENNY'S CORP DENN US 284.2 (0.0) (21.5) DEX MEDIA INC 9DX GR 2,084.0 (864.0) 139.0 DEX MEDIA INC DXM US 2,084.0 (864.0) 139.0 DIRECTV DTV CI 22,126.0 (6,127.0) (624.0) DIRECTV DTV US 22,126.0 (6,127.0) (624.0) DIRECTV DTVEUR EU 22,126.0 (6,127.0) (624.0) DIRECTV DIG1 GR 22,126.0 (6,127.0) (624.0) DOMINO'S PIZZA EZV TH 495.7 (1,289.7) 105.0 DOMINO'S PIZZA EZV GR 495.7 (1,289.7) 105.0 DOMINO'S PIZZA DPZ US 495.7 (1,289.7) 105.0 DUN & BRADSTREET DNB US 1,773.4 (1,077.1) (60.3) DUN & BRADSTREET DB5 GR 1,773.4 (1,077.1) (60.3) EDGEN GROUP INC EDG US 883.8 (0.8) 409.2 EMPIRE RESORTS I NYNY US 46.1 (9.5) (7.2) EMPIRE STATE -ES ESBA US 1,122.2 (31.6) (925.9) EMPIRE STATE-S60 OGCP US 1,122.2 (31.6) (925.9) FAIRPOINT COMMUN FONN GR 1,524.8 (360.6) 20.9 FAIRPOINT COMMUN FRP US 1,524.8 (360.6) 20.9 FERRELLGAS-LP FEG GR 1,589.9 (88.9) 89.0 FERRELLGAS-LP FGP US 1,589.9 (88.9) 89.0 FREESCALE SEMICO 1FS GR 3,265.0 (3,728.0) 1,334.0 FREESCALE SEMICO FSL US 3,265.0 (3,728.0) 1,334.0 FREESCALE SEMICO 1FS TH 3,265.0 (3,728.0) 1,334.0 GAMING AND LEISU 2GL GR 2,581.7 (72.9) (41.1) GAMING AND LEISU GLPI US 2,581.7 (72.9) (41.1) GENCORP INC GCY GR 1,675.6 (49.0) 86.7 GENCORP INC GY US 1,675.6 (49.0) 86.7 GENTIVA HEALTH GHT GR 1,250.6 (285.7) 112.2 GENTIVA HEALTH GTIV US 1,250.6 (285.7) 112.2 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GLOBALSTAR INC GSAT US 1,327.4 (204.5) (8.9) GLORI ENERGY INC GLRI US 0.1 (0.0) (0.1) GOLD RESERVE INC GRZ CN 29.9 (4.2) 9.9 GOLD RESERVE INC GOD GR 29.9 (4.2) 9.9 GOLD RESERVE INC GDRZF US 29.9 (4.2) 9.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 HCA HOLDINGS INC HCA US 29,822.0 (6,588.0) 2,877.0 HCA HOLDINGS INC 2BH GR 29,822.0 (6,588.0) 2,877.0 HCA HOLDINGS INC 2BH TH 29,822.0 (6,588.0) 2,877.0 HD SUPPLY HOLDIN 5HD GR 6,552.0 (750.0) 1,446.0 HD SUPPLY HOLDIN HDS US 6,552.0 (750.0) 1,446.0 HERBALIFE LTD HLF US 2,435.7 (404.1) 552.4 HERBALIFE LTD HLFEUR EU 2,435.7 (404.1) 552.4 HERBALIFE LTD HOO GR 2,435.7 (404.1) 552.4 HOVNANIAN ENT-A HO3 GR 1,838.8 (462.5) 1,122.1 HOVNANIAN ENT-A HOV US 1,838.8 (462.5) 1,122.1 HOVNANIAN ENT-B HOVVB US 1,838.8 (462.5) 1,122.1 HOVNANIAN-A-WI HOV-W US 1,838.8 (462.5) 1,122.1 HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) HUGHES TELEMATIC HUTC US 110.2 (101.6) (113.8) IMPRIVATA INC I62 GR 35.6 (4.3) (10.8) IMPRIVATA INC IMPR US 35.6 (4.3) (10.8) INCYTE CORP INCY US 679.1 (171.0) 464.6 INCYTE CORP ICY GR 679.1 (171.0) 464.6 INCYTE CORP ICY TH 679.1 (171.0) 464.6 INFOR US INC LWSN US 6,688.8 (492.2) (346.7) INTERTAIN GROUP IT CN 0.0 (0.3) (0.3) IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU 1JE GR 1,511.6 (169.0) 230.1 JUST ENERGY GROU JE CN 1,511.6 (169.0) 230.1 JUST ENERGY GROU JE US 1,511.6 (169.0) 230.1 KINAXIS INC KXS CN 44.6 (70.4) (6.4) KINAXIS INC 9KX GR 44.6 (70.4) (6.4) KINAXIS INC KXSCF US 44.6 (70.4) (6.4) L BRANDS INC LTD TH 6,663.0 (609.0) 1,070.0 L BRANDS INC LB US 6,663.0 (609.0) 1,070.0 L BRANDS INC LTD GR 6,663.0 (609.0) 1,070.0 LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9 LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9 LEE ENTERPRISES LEE US 828.2 (165.0) (26.0) LORILLARD INC LO US 2,893.0 (2,228.0) 900.0 LORILLARD INC LLV GR 2,893.0 (2,228.0) 900.0 LORILLARD INC LLV TH 2,893.0 (2,228.0) 900.0 LUMENPULSE INC LMP CN 29.4 (38.4) 3.5 LUMENPULSE INC 0L6 GR 29.4 (38.4) 3.5 LUMENPULSE INC LMPLF US 29.4 (38.4) 3.5 MANNKIND CORP MNKD US 236.3 (46.4) (74.3) MANNKIND CORP NNF1 TH 236.3 (46.4) (74.3) MANNKIND CORP NNF1 GR 236.3 (46.4) (74.3) MARRIOTT INTL-A MAR US 6,830.0 (1,720.0) (1,153.0) MARRIOTT INTL-A MAQ GR 6,830.0 (1,720.0) (1,153.0) MARRIOTT INTL-A MAQ TH 6,830.0 (1,720.0) (1,153.0) MDC PARTNERS-A MDZ/A CN 1,685.0 (87.5) (228.9) MDC PARTNERS-A MDCA US 1,685.0 (87.5) (228.9) MDC PARTNERS-A MD7A GR 1,685.0 (87.5) (228.9) MERITOR INC MTOR US 2,810.0 (527.0) 373.0 MERITOR INC AID1 GR 2,810.0 (527.0) 373.0 MERRIMACK PHARMA MP6 GR 129.8 (77.1) 13.0 MERRIMACK PHARMA MACK US 129.8 (77.1) 13.0 MICHAELS COS INC MIK US 1,716.0 (2,734.0) 493.0 MICHAELS COS INC MIM GR 1,716.0 (2,734.0) 493.0 MONEYGRAM INTERN MGI US 4,784.5 (142.0) 119.2 MORGANS HOTEL GR M1U GR 684.8 (211.2) 124.9 MORGANS HOTEL GR MHGC US 684.8 (211.2) 124.9 MOXIAN CHINA INC MOXC US 4.1 (0.4) (3.2) MPG OFFICE TRUST 1052394D US 1,280.0 (437.3) - NATIONAL CINEMED XWM GR 1,005.2 (188.3) 79.1 NATIONAL CINEMED NCMI US 1,005.2 (188.3) 79.1 NAVISTAR INTL IHR TH 7,702.0 (4,046.0) 1,126.0 NAVISTAR INTL IHR GR 7,702.0 (4,046.0) 1,126.0 NAVISTAR INTL NAV US 7,702.0 (4,046.0) 1,126.0 NEKTAR THERAPEUT ITH GR 478.1 (35.4) 213.9 NEKTAR THERAPEUT NKTR US 478.1 (35.4) 213.9 NEW ENG RLTY-LP NEN US 179.7 (24.5) - NORTHWEST BIO NBYA GR 12.6 (29.9) (30.0) NORTHWEST BIO NWBO US 12.6 (29.9) (30.0) NYMOX PHARMACEUT NYMX US 0.8 (5.8) (4.0) OMEGA COMMERCIAL OCFN US 0.3 (2.7) (3.0) OMEROS CORP OMER US 41.0 (10.6) 26.8 OMEROS CORP 3O8 GR 41.0 (10.6) 26.8 OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) PALM INC PALM US 1,007.2 (6.2) 141.7 PHIBRO ANIMAL HE PAHC LN 473.3 (78.7) 177.3 PHIBRO ANIMAL HE PAO EU 473.3 (78.7) 177.3 PHIBRO ANIMAL HE PAO GR 473.3 (78.7) 177.3 PHIBRO ANIMAL-A PB8 GR 473.3 (78.7) 177.3 PHIBRO ANIMAL-A PAHC US 473.3 (78.7) 177.3 PHILIP MORRIS IN PM FP 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM1 TE 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN 4I1 GR 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM1EUR EU 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN 4I1 TH 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM US 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PMI SW 36,325.0 (7,847.0) 1,130.0 PHILIP MORRIS IN PM1CHF EU 36,325.0 (7,847.0) 1,130.0 PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLY GEM HOLDINGS PG6 GR 1,096.8 (91.4) 217.3 PLY GEM HOLDINGS PGEM US 1,096.8 (91.4) 217.3 PROTALEX INC PRTX US 1.7 (8.2) 1.2 PROTECTION ONE PONE US 562.9 (61.8) (7.6) QUALITY DISTRIBU QDZ GR 445.6 (35.6) 115.6 QUALITY DISTRIBU QLTY US 445.6 (35.6) 115.6 QUINTILES TRANSN QTS GR 2,978.6 (621.6) 511.6 QUINTILES TRANSN Q US 2,978.6 (621.6) 511.6 RADNET INC PQI GR 737.2 (9.3) 61.4 RADNET INC RDNT US 737.2 (9.3) 61.4 RAYONIER ADV RYAM US 1,225.0 (38.8) 136.3 RAYONIER ADV RYQ GR 1,225.0 (38.8) 136.3 REGAL ENTERTAI-A RETA GR 2,675.7 (750.5) 26.2 REGAL ENTERTAI-A RGC US 2,675.7 (750.5) 26.2 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTPATH INC PRM US 208.0 (91.7) 3.6 REVLON INC-A REV US 1,938.7 (571.8) 275.3 REVLON INC-A RVL1 GR 1,938.7 (571.8) 275.3 RITE AID CORP RTA TH 6,946.5 (2,046.4) 1,643.0 RITE AID CORP RTA GR 6,946.5 (2,046.4) 1,643.0 RITE AID CORP RAD US 6,946.5 (2,046.4) 1,643.0 ROCKWELL MEDICAL RWM GR 25.9 (3.9) 6.4 ROCKWELL MEDICAL RMTI US 25.9 (3.9) 6.4 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 RYERSON HOLDING RYI US 1,989.5 (114.5) 754.6 RYERSON HOLDING 7RY TH 1,989.5 (114.5) 754.6 RYERSON HOLDING 7RY GR 1,989.5 (114.5) 754.6 SALLY BEAUTY HOL S7V GR 1,983.6 (362.8) 616.8 SALLY BEAUTY HOL SBH US 1,983.6 (362.8) 616.8 SEQUENOM INC SQNM US 131.6 (49.3) 51.4 SILVER SPRING NE 9SI TH 534.3 (111.7) 83.2 SILVER SPRING NE 9SI GR 534.3 (111.7) 83.2 SILVER SPRING NE SSNI US 534.3 (111.7) 83.2 SIRIUS XM CANADA SIICF US 409.2 (78.8) (157.0) SIRIUS XM CANADA XSR CN 409.2 (78.8) (157.0) SPORTSMAN'S WARE 06S GR 272.7 (52.1) 75.1 SPORTSMAN'S WARE SPWH US 272.7 (52.1) 75.1 SUNGAME CORP SGMZE US 2.2 (3.6) (3.9) SUPERVALU INC SVU* MM 4,354.0 (682.0) 106.0 SUPERVALU INC SJ1 GR 4,354.0 (682.0) 106.0 SUPERVALU INC SJ1 TH 4,354.0 (682.0) 106.0 SUPERVALU INC SVU US 4,354.0 (682.0) 106.0 THERAVANCE HVE GR 605.6 (187.5) 303.2 THERAVANCE THRX US 605.6 (187.5) 303.2 THRESHOLD PHARMA NZW1 GR 84.2 (28.3) 42.8 THRESHOLD PHARMA THLD US 84.2 (28.3) 42.8 TRANSDIGM GROUP TDG US 6,711.0 (1,591.5) 1,073.0 TRANSDIGM GROUP T7D GR 6,711.0 (1,591.5) 1,073.0 TRINET GROUP INC TN3 GR 1,333.0 (36.7) 70.3 TRINET GROUP INC TNET US 1,333.0 (36.7) 70.3 TRINET GROUP INC TNETEUR EU 1,333.0 (36.7) 70.3 TRUPANION INC TPW GR 49.0 (5.5) 7.2 TRUPANION INC TRUP US 49.0 (5.5) 7.2 ULTRA PETROLEUM UPM GR 2,958.1 (123.5) (352.9) ULTRA PETROLEUM UPL US 2,958.1 (123.5) (352.9) UNISYS CORP USY1 GR 2,336.1 (628.5) 369.7 UNISYS CORP UISEUR EU 2,336.1 (628.5) 369.7 UNISYS CORP USY1 TH 2,336.1 (628.5) 369.7 UNISYS CORP UIS US 2,336.1 (628.5) 369.7 UNISYS CORP UISCHF EU 2,336.1 (628.5) 369.7 UNISYS CORP UIS1 SW 2,336.1 (628.5) 369.7 VECTOR GROUP LTD VGR GR 1,642.7 (31.1) 560.0 VECTOR GROUP LTD VGR US 1,642.7 (31.1) 560.0 VENOCO INC VQ US 736.8 (139.5) (777.3) VERISIGN INC VRSN US 2,322.6 (632.9) (246.0) VERISIGN INC VRS GR 2,322.6 (632.9) (246.0) VERISIGN INC VRS TH 2,322.6 (632.9) (246.0) VERSO PAPER CORP VRS US 1,037.1 (549.4) 28.0 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WTW US 1,526.4 (1,397.9) 13.8 WEIGHT WATCHERS WW6 GR 1,526.4 (1,397.9) 13.8 WEIGHT WATCHERS WTWEUR EU 1,526.4 (1,397.9) 13.8 WEIGHT WATCHERS WW6 TH 1,526.4 (1,397.9) 13.8 WEST CORP WSTC US 3,876.0 (672.7) 264.3 WEST CORP WT2 GR 3,876.0 (672.7) 264.3 WESTMORELAND COA WME GR 1,583.7 (260.6) 50.8 WESTMORELAND COA WLB US 1,583.7 (260.6) 50.8 XERIUM TECHNOLOG XRM US 633.4 (8.9) 104.5 XERIUM TECHNOLOG TXRN GR 633.4 (8.9) 104.5 XOMA CORP XOMA GR 89.9 (7.6) 45.9 XOMA CORP XOMA US 89.9 (7.6) 45.9 XOMA CORP XOMA TH 89.9 (7.6) 45.9 YRC WORLDWIDE IN YEL1 TH 2,179.5 (362.4) 201.2 YRC WORLDWIDE IN YEL1 GR 2,179.5 (362.4) 201.2 YRC WORLDWIDE IN YRCW US 2,179.5 (362.4) 201.2 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com by e-mail. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to the nation's bankruptcy courts. The list includes links to freely downloadable of these small-dollar petitions in Acrobat PDF documents. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Psyche A. Castillon, 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 ***