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/raid1/www/Hosts/bankrupt/TCR_Public/141023.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, October 23, 2014, Vol. 18, No. 295 Headlines A.M. CASTLE: Moody's Lowers Corporate Family Rating to Caa2 ACCREDITED HOME: Accredited REIT Trust Adopts Liquidation Plan ALCO STORES: Great American Touts Lead Bid for ALCO Liquidation AMERICAN ENERGY: Incurs $1.39-Mil. Net Loss in FY Ended June 30 AMERICAN RESOURCE: Shouldn't Sell to Daughter, Examiner Says ARCHDIOCESE OF MILWAUKEE: Returns to Bankruptcy Court ASARCO LLC: Sesa Sterlite Pays $82.75-Mil. for Failed Purchase ASSOCIATED WHOLESALERS: Buyers to Renegotiate With Teamsters AVIATION SERVICES: Sued by Ports Authority for Contract Breach AXION INTERNATIONAL: Stockholders OK Reverse Stock Split BERNARD L. MADOFF: JPMorgan Deal Won't Unravel Fund Settlement BIOFUEL ENERGY: Stockholders Approve JBGL Builder Acquisition BLOCK COMMUNICATIONS: Moody's Rates Proposed $225MM Term Loan B1 BLUE RIBBON: S&P Assigns 'B' Corp. Credit Rating, Outlook Stable CASTLE-ROSE INC: Case Summary & 20 Largest Unsecured Creditors CLUB AT SHENANDOAH: Western Golf Okayed as Bookkeeper COASTLINE INVESTMENT: Hearing on Dismissal Bid Moved to Nov. 4 CRUNCHIES FOOD: $250,000 DIP Financing from Delaski Approved CRUNCHIES FOOD: Cash Collateral Access Expires on Oct. 24 D.A.B. GROUP: Defends Hiring of Counsel and Real Estate Broker D.A.B. GROUP: Reorganization Plan Mulls Future Sale DARDEN RESTAURANTS: Fitch Rates Credit Protection in BB Territory DAYCO LLC: S&P Affirms 'B+' CCR & Revises Outlook to Stable DAYCO LLC: Moody's Affirms 'B2' Corporate Family Rating DOMARK INT'L: Posts $658K Net Loss in Aug. 31 Quarter EFUSION SERVICES: Court Dismisses Chapter 11 Bankruptcy Case ENERGY FUTURE: Wants to Tap Balch & Bingham as Special Counsel FL 6801 SPIRITS: Z Capital Jilted by Canyon Ranch Hotel FRIENDLY ICE CREAM: Friendly's Branch at Harrisburg, PA Closes GELTECH SOLUTIONS: Issues 598,002 Common Shares COO GENERAL MOTORS: Del High Court Interprets UCC Termination Rules GLOBAL GEOPHYSICAL: Can Proceed with Dec. 5 Auction GT ADVANCED: Court OKs Joint Administration of Bankruptcy Cases H & S CERT. AUTO: Case Summary & 13 Unsecured Creditors HOLLY HILL: Ch.11 Trustee Hires CBRE as Real Estate Broker HOUSTON REGIONAL: Comcast's Appeal Expected If Court OKs Plan HRK HOLDINGS: Can Access Additional Loan From Regions Bank INTELLICELL BIOSCIENCES: Taps Dinosaur as Placement Agent IHS INC: Moody's Assigns Ba1 Corp. Family Rating; Outlook Stable IHS INC: S&P Assigns 'BB+' CCR on Proposed Refinancing IHS INC: S&P Ratings Unaffected by Upsized Notes KENNY G: Owner Defeated in Emein Suit Appeal KID BRANDS: Gets Approval to Resolve Dispute With Disney Consumer KO-KAUA OHANA: Propsoes GlassRatner as Interest Rate Expert LEHMAN BROTHERS: Owes $38.6MM, Tobacco Settlement Fund Says LIBERATOR INC: Issues Letter to Shareholders LIQUIDMETAL TECHNOLOGIES: Stockholders Elected 6 Directors MAIN STREET HOLDINGS: Case Summary & 20 Top Unsecured Creditors MASON COPPELL: Has Nov. 24 Plan Confirmation Hearing MEDICAL PROPERTIES: Moody's Affirms 'Ba1' Corp. Family Rating MICHAEL GLYN BROWN: Court Limits Ex-Wife's Claim to $18,000 MVB HOLDING: Names Michael Cavanaugh as Gaming Commission Counsel NATROL INC: Has Until February 2015 to File Plan NAUTILUS HOLDINGS: Files Chapter 11 Plan NEPHROS INC: Files 5 Million Shares Prospectus with SEC NEW BERN RIVERFRONT: Weaver Can't Appeal Interlocutory Orders NEW LOUISIANA: Palm Terrace Debtors Win Final Okay on DIP Loan NEW LOUISIANA: Wants to Hire H. Kent Aguillard as Local Counsel NEXT 1 INTERACTIVE: Incurs $1.8 Million Net Loss in Aug. 31 Qtr. OCWEN FINANCIAL: Moody's Lowers Corporate Family Rating to B2 OCWEN FINANCIAL: S&P Lowers Issuer Credit Rating to 'B' PACIFIC GOLD: OKs Assignment of $37,500 Outstanding Notes PARTS HUB: Case Summary & 7 Unsecured Creditors PSL-NORTH AMERICA: Seeks Extension of Plan Filing Date PSM HOLDINGS: Reports $5.85-Mil. Net Loss for FY Ended June 30 RADNOR HOLDINGS: Suit v. Skadden, Tennenbaum Are Core Proceedings RESIDENTIAL CAPITAL: Judge Bars 'Scurrilous' Filings by Creditor RESIDENTIAL CAPITAL: Court Expunges Long Beach Claim RETAIL PROPERTIES: S&P Assigns 'BB' Rating on Series A Pref. Stock ROCK AIRPORT: Appeal Over MSA's Standing to File Plan Now Moot ROCK AIRPORT: Loses Appeal Over MSA Claim Dispute SAM ADAMS: Faces Eviction, Has Until Oct. 24 to Pay Landlord SAN BERNARDINO, CA: Police Want Deadline for Filing a Plan SCHWAB INDUSTRIES: Trust's Suit Against SS&G Parkland May Proceed SEARS HOLDINGS: To Sell $625-Mil. 8% Senior Notes to Stockholders SEARS HOLDINGS: S&P Assigns Preliminary 'B-' Rating SEEGRID CORPORATION: Case Summary & 20 Top Unsecured Creditors SENTINEL MANAGEMENT: BNY Mellon $312-Mil. Lawsuit Isn't Over SHALE-INLAND HOLDINGS: Moody's Cuts Secured Notes Rating to Caa1 SOURCE HOME: Seeks February Extension of Exclusive Filing Date SPECIALTY PRODUCTS: Nov. 14 Fixed as Proofs of Claim Deadline STHI HOLDINGS: Synergy Health Deal No Impact on Moody's 'B2' CFR TITAN INTERNATIONAL: Moody's Puts 'B1' CFR for Downgrade TLC HEALTH: Deadline to Challenge Lenders' Liens Moved to Oct. 27 TPC GROUP: S&P Retains 'B' Rating Over $50MM Secured Notes Add-On TRIKO LLC: Taps Snell & Wilmer as General Insolvency Counsel TRINITY INDUSTRIES: FHA Demands New Testing on Guardrails TRUMP ENTERTAINMENT: March 9 Set as Governmental Claims Bar Date TRUMP ENTERTAINMENT: Taj Mahal Casino Threatens to Close UNITEK GLOBAL: To File for Ch 11 Bankruptcy Before Nov. 11 UNIVISION NOTICIAS: Closing News Operation, To Lay Off 100 Staff VOYAGER FOUNDATION: S&P Assigns 'BB+' Rating on Revenue Bonds WILSON COUNTY MEMORIAL: S&P Raises Rating on 2003 GO Bonds to 'BB' YELLOWSTONE MOUNTAIN: Founder's Wife Sued Over Yacht 'Piano Bar' YOSHI'S SAN FRANCISCO: Jazz Club & Restaurant Renamed as Addition * Mintz Levin's Bae Discusses 3rd Party Protections in Tort Cases * Bingham McCutchen Law Firm Weighs Options * John Harms Joins Huron Consulting Group as Managing Director * Recent Small-Dollar & Individual Chapter 11 Filings ********* A.M. CASTLE: Moody's Lowers Corporate Family Rating to Caa2 ----------------------------------------------------------- Moody's Investors Service downgraded A.M. Castle & Co.'s corporate family rating to Caa2 from Caa1, its probability of default rating to Caa2-PD from Caa1-PD and the rating on Castle's $225 million senior secured notes to Caa2 from Caa1. The ratings outlook is negative. The ratings downgrade and negative outlook reflect Castle's recent weak operating results and deteriorating credit metrics and the possibility that Castle's liquidity could become stressed if it does not begin to produce positive free cash flow. Moody's affirmed Castle's Speculative Grade Liquidity Rating of SGL-3. The following actions were taken: Downgrades: Corporate family rating, lowered to Caa2 from Caa1; Probability of default rating, lowered to Caa2-PD from Caa1-PD; Senior secured notes, lowered to Caa2 (LGD 4) from Caa1 (LGD 4) Outlook Actions: Outlook, assigned negative Affirmations: Speculative grade liquidity rating, affirmed at SGL-3 Ratings Rationale A.M. Castle's Caa2 rating reflects its very high leverage, negative interest coverage, recent operating losses, weak competitive position and relatively small size versus other rated steel distributors. The rating is supported by Castle's adequate liquidity, which provides some flexibility to pursue operating efficiency and sales improvement initiatives while contending with volatile metals prices and uneven end market demand. Castle's recent operating results have been very weak driven by competitive market conditions, market share losses, severe winter weather, uneven demand across key end markets, and execution issues related to branch consolidations, systems conversions and inventory management. As a result, the company's revenues have declined by about 13.5% to $990 million and its adjusted EBITDA has plunged 77% to $12 million during the LTM period ended June 2014 versus the prior year period. This has led to a significant deterioration in Castle's credit metrics, with its adjusted leverage ratio (Debt/EBITDA) rising to 31.3x from 7.2x and its interest coverage ratio ((EBITDA-CapEx)/Interest Expense) declining to -0.2x from 0.6x. Moody's expects the company's operating results to remain under pressure in the second half of 2014 since demand remains uneven and nickel and aluminum prices have softened recently. In addition, Castle may face challenges in regaining market share which has been lost over the past few years as the company focused on cost cutting and efficiency improvement initiatives and appeared to have lost some of its commercial focus. Therefore, Castle will likely produce adjusted EBITDA of only about $15 million in 2014 versus $32 million last year and $81 million in 2012. This will result in Castle's leverage ratio (Debt/EBITDA) remaining elevated at about 27.0x and its interest coverage ratio (EBITDA-CapEx/Interest Expense) very weak at about -0.1x since capital expenditures will be roughly equal to adjusted EBITDA. The company's operating results should improve in 2015 as they move past the restructuring disruptions and execution issues experienced in the past two years and start to benefit from a lower cost structure and a shift in focus to commercial development initiatives. However, Castle's EBITDA generation will remain at historically depressed levels and its credit metrics very weak for the company's rating. Castle has an adequate liquidity profile. The company had about $17 million of cash and $92 million of availability on its $125 million asset based revolver as of the end of June 2014. However, the ABL revolver matures in December 2015 and the company has been reliant on this facility since it has produced negative funds from operations during the past six quarters and negative free cash flow in the first half of 2014. Castle also utilizes this facility to support seasonal and cyclical working capital fluctuations. The negative ratings outlook assumes the company's operating results and credit metrics will remain at historically depressed levels and reflects the possibility that Castle's liquidity could become stressed if it does not begin to produce positive free cash flow. The ratings are not likely to experience upward pressure in the near term. However, a ratings upgrade could occur if the company reduces its financial leverage below 6.0x and raises its interest coverage above 1.0x. A downgrade could occur if the leverage ratio remains above 7.0x and the interest coverage ratio below 0.75x. A significant reduction in borrowing availability or liquidity could also result in a downgrade. The principal methodology used in this rating was Global Distribution & Supply Chain Services published in November 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. A.M. Castle & Co. is a global distributor of specialty grade, high performance steel, alloy and plastic products. The company sells alloy and stainless steels, nickel alloys, aluminum, carbon and titanium products in the form of bars, tubing, extrusions, plate and sheet. Castle also performs a broad array of processing services, such as cutting, grinding, shearing and heat treating to meet specific customer requirements. End markets include aerospace, oil and gas, heavy equipment and infrastructure. The company generated revenues of $990 million for the twelve month period ended June 30, 2014. ACCREDITED HOME: Accredited REIT Trust Adopts Liquidation Plan -------------------------------------------------------------- Pursuant to the Plan of Liquidation approved by shareholders on January 17, 2013, the Board of Trustees of Accredited Mortgage Loan REIT Trust has declared a partial liquidating distribution to the holders of its 9.75% Series A Perpetual Cumulative Preferred Shares in the aggregate amount of $5,117,097.50, representing $1.25 per preferred share outstanding. The distribution from Accredited REIT will be paid on November 14, 2014, to holders of record of its preferred shares as of the close of business on November 3, 2014. Accredited REIT has received various payments from the Liquidating Trust and Consolidated Holdco estate in the matter styled In Re: Accredited Home Lenders Holding Co., et al., Case No. 09-11516 pursuant to the provisions of the Debtors' Fifth Amended Chapter 11 Plan of Liquidation approved on May 24, 2011, by the U.S. Bankruptcy Court for the District of Delaware. Accredited REIT also continues to collect in due course certain residual payments on its assets. Upon completion of this latest distribution, Accredited REIT will have distributed an aggregate of $70,615,945.50, or $17.25 per share, to its preferred shareholders since confirmation of the Fifth Amended Plan. Accredited REIT has received its final payment from the Liquidating Trust in the AHL Bankruptcy. Accredited REIT may receive additional payments from the Consolidated Holdco estate pursuant to the Fifth Amended Plan. However, the timing and amount of any such future payments are beyond the control of Accredited REIT. Copies of the Fifth Amended Plan, the Fifth Amended Disclosure Statement, the Bankruptcy Court's Order Confirming the Fifth Amended Plan and other information concerning the AHL Bankruptcy may be found at www.kccllc.com The Board of Trustees of Accredited REIT will declare additional liquidating distributions to the holders of its preferred shares if, as and to the extent determined in the sole discretion of its Board of Trustees, subject to the provisions of law, the Plan of Liquidation, and the Declaration of Trust of Accredited REIT, as amended and supplemented to date. Accredited Mortgage Loan REIT Trust, a subsidiary of Accredited Home Lenders Holding Co., is a Maryland real estate investment trust that was formed in May 2004 for the purpose of acquiring, holding and managing real estate assets. Statements regarding future events constitute forward-looking statements within the meaning of the federal securities laws. Such statements are based on current expectations, and the actual results and the timing of certain events could differ materially from those contemplated by these forward-looking statements due to a number of factors including, but not limited to, developments in the AHL Bankruptcy and the liquidity of Accredited REIT. About Accredited Home San Diego, California-based Accredited Home Lenders Holding Co. -- http://www.accredhome.com/-- was a mortgage banker servicing U.S. markets for conforming and non-prime residential mortgage loans operating throughout the U.S. and in Canada. Accredited sold its mortgage-servicing business in July 2009 as part of its bankruptcy. Accredited Home Lenders and its affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 09-11516) on May 1, 2009. Gregory G. Hesse, Esq., Lynnette R. Warman, Esq., and Jesse T. Moore, Esq., at Hunton & William LLP, serve as the Debtors' bankruptcy counsel. Laura Davis Jones, Esq., James E. O'Neill, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as Delaware counsel. Kurtzman Carson Consultants is the Debtors' claims agent. Andrew I Silfen, Esq., Schuyler G. Carroll, Esq., Robert M. Hirsch, Esq., at Arent Fox LLP in New York, and Jeffrey N. Rothleder, Esq., at Arent Fox LLP in Washington, DC, represent the official committee of unsecured creditors as co-counsel. Neil R. Lapinski, Esq., and Shelley A. Kinsella, Esq., at Elliott Greenleaf, represent the Committee as Delaware and conflicts counsel. Accredited Home Lenders estimated its assets at $10 million to $50 million and its debts at $100 million to $500 million in its Chapter 11 petition. ALCO STORES: Great American Touts Lead Bid for ALCO Liquidation --------------------------------------------------------------- Great American Group, Inc., has been selected as a stalking horse bidder in the potential liquidation of ALCO Stores, Inc. The Debtor is seeking to find a "going concern" buyer of the business. If ALCO is unsuccessful in securing a buyer of the business, a bankruptcy auction will take place in mid-November 2014 with Great American along with joint venture partners SB Capital and Tiger Capital selected as the stalking horse bidder. "Great American has extensive experience working with very large retailers and creditors in handling complicated and sensitive situations such as the ALCO assignment," said Scott Carpenter, President of GA Retail Solutions. Great American is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services. "Since the combination of Great American and B. Riley in June of this year, the two groups have been actively working together to identify new business opportunities," said Bryant Riley, Chairman of both the combined company and of broker dealer B. Riley & Co. LLC. "In addition to increased activity in the liquidation business, the synergies between Great American and B. Riley have presented opportunities in the auctions business, GA Capital, appraisals, real estate assignments and capital markets engagements." Two recently announced retail liquidation assignments include Naartjie Custom Kids, Inc., and Love Culture, Inc. In the Naartjie engagement, Great American was selected to handle the liquidation of all 56 Naartjie locations in the U.S. containing merchandise with an approximate retail value of $28 million. In the Love Culture engagement, Great American was selected to manage store closing sales at all 55 locations containing merchandise with a retail value of approximately $24 million. A recently announced auction assignment included Todd-Soundelux in which Great American's auction division, GA Global Partners, was one of two companies selected to handle the auction of 3,000 lots of equipment and assets at over $10 million of cost value for the famed post-production studio. In addition to U.S.-based auction assignments, GA Global Partners has expertise in handling international situations, including the recently announced auction of over $100 million of surplus mining and construction equipment from PT Asmin Koalindo Tuhup & PT Borneo Mining Services, located in Jakarta, Indonesia. "Great American and B. Riley combined have significant experience in the Retail and Consumer sectors," added Mr. Riley. "Our B. Riley capital markets group represents many name brand retailers in their financial advisory or capital raising needs. In September, B. Riley was selected to advise and lead the execution of Wet Seal's newly announced financing plan." About ALCO Stores ALCO Stores, Inc., operates 198 stores in 23 states throughout the central United States. Alco offers 35,000 items at its stores, which are located at smaller markets usually not served by other regional or national broad line retail chains. The company was founded in 1901 as a general merchandising operation in Abilene, Kansas. ALCO is a public company, and its common stock is quoted on the NASDAQ National Market tier of the NASDAQ Stock Market under the ticker symbol "ALCS." ALCO Stores and ALCO Holdings LLC sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Lead Case No. 14-34941) in Dallas, Texas, on Oct. 12, 2014, with plans to let liquidators conduct store closing sales or sell the business to a going-concern buyer. Judge Stacey G. Jernigan presides over the Chapter 11 cases. The Debtors have DLA Piper LLP (US) as counsel, Houlihan Lokey Capital, Inc., as financial advisor, and Prime Clerk LLC as claims and noticing agent. As of July 2014, ALCO Stores had assets totaling $222 million and liabilities totaling $162 million. The bulk of the liabilities was total debt outstanding under a credit facility with Wells Fargo Bank, National Association, of which the aggregate outstanding was $104.2 million as of the Petition Date. AMERICAN ENERGY: Incurs $1.39-Mil. Net Loss in FY Ended June 30 --------------------------------------------------------------- The American Energy Group, Ltd., filed with the U.S. Securities and Exchange Commission on Oct. 14, 2014, its annual report on Form 10-K for the fiscal year ended June 30, 2014. Pritchett, Siler & Hardy, P.C., expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has incurred losses and negative cash flows from operations. The Company reported a net loss of $1.39 million on $1.11 million of revenue for the fiscal year ended June 30, 2014, compared with a net loss of $79,419 on $1.22 million of revenue last year. The Company's balance sheet at June 30, 2014, showed $4.79 million in total assets, $1.1 million in total liabilities and stockholders' equity of $3.69 million. A copy of the Form 10-K is available at: http://is.gd/UC01na Westport, Connecticut-based The American Energy Group, Ltd., operates as an energy resource royalty company. It owns an interest in two oil and gas leases located in Southeast Texas; and holds 18% overriding royalty interest in the Yasin Concession located in Pakistan. The Company also holds a 2.5% working interest on oil and gas production acreage in Sanjawi Block located in Baluchistan Province and in Zamzama North Block located in Sindh Province, Pakistan. The Company was formerly known as Belize-American Corp. Internationale and changed its name to The American Energy Group, Ltd. in November 1994. AMERICAN RESOURCE: Shouldn't Sell to Daughter, Examiner Says ------------------------------------------------------------ Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that Jennifer Rood, the examiner appointed in the Chapter 11 case of American Resource Staffing Network Inc., recommended that the bankruptcy judge in New Hampshire deny approval of the sale of the temporary staffing company to the owner's daughter. According to the report, Ms. Rood pointed out that the sale contract, nominally for $2.4 million, has no fixed payments and the daughter would pay as much as $500,000 in installments from net income for years. Consequently, the business could continue even if the purchase price weren't paid, the examiner said, the report related. About American Resource American Resource Staffing Network, Inc., and American Resource Network, Inc., which places hundreds of workers into New England companies that need temporary help, sought protection under Chapter 11 of the Bankruptcy Code on July 31, 2014. The lead case is In re American Resource Staffing Network, Inc., Case No. 14- 11527 (Bankr. D.N.H.). The Debtors are represented by Deborah A. Notinger, Esq., at Cleveland, Waters & Bass, P.A., in Nashua, New Hampshire, and Steven M. Notinger, Esq., at Cleveland, Waters & Bass, P.A., in Concord, New Hampshire. ARCHDIOCESE OF MILWAUKEE: Returns to Bankruptcy Court ----------------------------------------------------- Tom Corrigan, writing for Daily Bankruptcy Review, reported that the Archdiocese of Milwaukee was back in bankruptcy court to discuss its progress after a judge insisted that the archdiocese and hundreds of sexual-abuse claimants work more quickly to resolve sticking points that for nearly four years have foiled attempts to produce a settlement. According to the report, during the hearing, lawyers updated Judge Susan Kelley of the U.S. Bankruptcy Court in Milwaukee on a key insurance settlement as well as the archdiocese's bid to have 11 abuse claims against it dismissed. About Archdiocese of Milwaukee The Diocese of Milwaukee was established on Nov. 28, 1843, and was elevated to an Archdiocese on Feb. 12, 1875, by Pope Pius IX. The region served by the Archdiocese consists of 4,758 square miles in southeast Wisconsin which includes counties Dodge, Fond du Lac, Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth, Washington and Waukesha. There are 657,519 registered Catholics in the Region. The Catholic Archdiocese of Milwaukee, in Wisconsin, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wis. Case No. 11-20059) on Jan. 4, 2011, to address claims over sexual abuse by priests on minors. The Archdiocese became at least the eighth Roman Catholic diocese in the U.S. to file for bankruptcy to settle claims from current and former parishioners who say they were sexually molested by priests. Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin, serves as the Archdiocese's counsel. The Official Committee of Unsecured Creditors in the bankruptcy case has retained Pachulski Stang Ziehl & Jones LLP as its counsel, and Howard, Solochek & Weber, S.C., as its local counsel. The Archdiocese estimated assets and debts of $10 million to $50 million in its Chapter 11 petition. ASARCO LLC: Sesa Sterlite Pays $82.75-Mil. for Failed Purchase -------------------------------------------------------------- Patrick Fitzgerald, writing for Daily Bankruptcy Review, reported that India's Sesa Sterlite Ltd. said that it has paid $82.75 million to Asarco LLC stemming from its failed attempt to acquire the U.S.-based copper miner in 2008. According to a press statement dated Oct. 22, 2014, Sesa said "it has received the necessary approval from Reserve Bank of India for remittance of US$82.75 million to Asarco LLC in order to satisfy the Judgment of the US Bankruptcy Court. Subsequently, pursuant to a settlement agreement entered on Oct 17, 2014, between the parties, the Company has paid the approved amount to Asarco LLC and the parties have settled all their claims against each other in this matter. Accordingly, all pending appeals have been withdrawn by the parties, all enforcement actions have been terminated by Asarco LLC and the Turnover Order has been vacated by the US Bankruptcy Court. The Company had already recognized the Judgment amount of US$82.75 million as expenses and as liability in FY2012." About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection (Bankr. S.D. Tex. Case No. 05-21207) on Aug. 9, 2005. Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On Dec. 9, 2009, Asarco Incorporated and Americas Mining Corporation's Seventh Amended Plan of Reorganization for the Debtors became effective and the ASARCO Asbestos Personal Injury Settlement Trust was created and funded with nearly $1 billion in assets, including more than $650 million in cash plus a $280 million secured note from Reorganized ASARCO. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated ASARCO LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. ASSOCIATED WHOLESALERS: Buyers to Renegotiate With Teamsters ------------------------------------------------------------ Leaders of the International Brotherhood of Teamsters recently met to organize their response to developments in the Chapter 11 case of Associated Warehousing Inc., Bruce Vail reported for inthesetimes.com. According to the report, Sandy Pope, President of Local 805 in Long Island City, New York, said the union had already filed documents with the court to encourage other potential buyers of AWI to come forward and bid against C&S Wholesale Grocers, which is seeking to buy AWI. According to the report, Ms. Pope said two other bidders have come forward. No firm agreements have been made with any of the potential bidders, but each, including C&S, has said they want to renegotiate existing Teamster contracts and offer jobs to "substantially all" of AWI?s current employees, the report added. "We've had extremely bad experiences with C&S. They have a pretty bad record," Ms. Pope said. She also said, "The reason AWI went to court in the first place, rather than just do[ing] a straight sale, is that they want to dump all the debt. . . . That includes more than $30 million in liability to four of our [Teamster] pension funds, which are hurting already." According to the report, Ms. Pope said a coalition of six Teamsters locals from Pennsylvania, New Jersey and New York are organized with legal and financial experts from union headquarters to fight for the members. As reported by the Troubled Company Reporter on Oct. 14, 2014, Delaware Bankruptcy Judge Kevin J. Carey approved the procedures governing the bidding and sale of the assets of Associated Wholesalers Inc. and its debtor-affiliates. A qualified bid for the assets must be submitted on or before Oct. 22 so an auction scheduled for Oct. 24 can proceed. The auction will be followed by a sale hearing on Oct. 29. If no other bid is timely received, Associated Wholesalers and its White Rose grocery distribution business will be sold to so-called stalking horse C&S Wholesale Grocers Inc. If a competing bid is declared the winning bid, C&S will be paid a break-up fee in the reduced amount of $3,750,000 and reimbursed for any necessary expenses in the amount of up to $1.5 million. As reported by the TCR, the C&S purchase price consists of the lesser of the amount of the bank debt, which totals about $18,100,000 and $152,110,000, plus other liabilities, which amount is valued at $193,900,000. Bill Rochelle, a bankruptcy columnist for Bloomberg News, previously reported that, aside from the C&S stalking horse bid, Supervalu Inc. and another yet unnamed company have also offered a bid for the assets. About Associated Wholesalers Founded in 1962 and headquartered in Robesonia, Pennsylvania, Associated Wholesalers Inc. services 800 supermarkets, specialty stores, convenience stores and superettes with grocery, meat, produce, dairy, frozen foods and general merchandise/health and beauty care products. AWI, which owns distribution facilities in Robesonia, Pennsylvania, and York, Pennsylvania, serves the mid- Atlantic United States. AWI is owned by its 500 retail members, who in turn operate supermarkets. AWI has 1,459 employees. White Rose Inc. is a food wholesaler and distributor serving the greater New York metropolitan area. The company traces its origins to 1886, when brothers Joseph and Sigel Seeman founded Seeman Brothers & Doremus to provide grocery deliveries throughout New York City. White Rose carries out its operations through three leased warehouse and distribution centers, two of which are located in Carteret, New Jersey, and one in Woodbridge, New Jersey. White Rose has 777 employees. Associated Wholesalers and its affiliates sought Chapter 11 bankruptcy protection on Sept. 9, 2014, to sell their assets under 11 U.S.C. Sec. 363 to C&S Wholesale Grocers, absent higher and better offers. The Debtors have sought joint administration of their Chapter 11 cases for procedural purposes, seeking to maintain all pleadings on the case docket for AWI Delaware, Inc., Bankr. D. Del. Case No. 14-12092. As of the Petition Date, the Debtors owe the Bank Group (consisting of lenders, Bank of America, N.A., Bank of American Securities LLC as sole lead arranger and joint book runner, Wells Fargo Capital Finance, LLC as joint book runner and syndication agent, and RBS Capita, as documentation agent) an aggregate principal amount of not less than $131,857,966 (inclusive of outstanding letters of credit), plus accrued interest. The Debtors estimate trade debt of $72 million. Saul Ewing LLP and Rhoads & Sinon LLP are serving as legal advisors to the Debtors, Lazard Middle Market is serving as financial advisor, and Carl Marks Advisors is serving as restructuring advisor to AWI. Carl Marks' Douglas A. Booth has been tapped as chief restructuring officer. Epiq Systems serves as the claims agent. AVIATION SERVICES: Sued by Ports Authority for Contract Breach -------------------------------------------------------------- Alexie Villegas Zotomayor at Marianas Variety reports that the Commonwealth Ports Authority has filed a lawsuit in the CNMI Superior Court against Aviation Services Ltd., dba Freedom Air, for four counts of breach of contract and three counts of trespass to land. Marianas Variety states that CPA is claiming that Freedom Air defaulted on its obligations: (i) a 15-year lease for two unsurveyed parcels of land on Saipan, wherein Freedom Air must pay $313.80 per month and "for each succeeding five-year term the rental rate will increase by 20 percent of the immediately preceding five-year term", but instead has defaulted since March 1, 2011; (ii) a 15-year lease for two unsurveyed parcels of land on Saipan, wherein Freedom Air must pay $313.80 per month and "for each succeeding five-year term the rental rate will increase by 20 percent of the immediately preceding five-year term"; (iii) 15- year lease of 27,136 square feet at the Saipan International Airport, wherein Freedom Air must pay CPA $1,000 per month; and (iv) a floor-space lease for $300 per month at the Rota International Airport, wherein CPA asked that the base monthly rental will increase by 20 percent every five years that the lease is renewed and that Freedom Air will pay for utility services used. CPA terminated the leases in July 2014, the report adds. Marianas Variety relates that CPA is claiming Freedom Air also knowingly and intentionally trespassed on both Parcels A and B, CPA's building, on its parcel of land at the Saipan International Airport, and on its property at the Rota International Airport. Matthew T. Gregory, Esq., represents CPA, Marianas Variety reports. Freedom Air filed for Chapter 11 bankruptcy on Sept. 27, 2014. The case is In re Aviation Services Ltd., 13-00113, U.S. Bankruptcy Court, District of Guam. As reported by the Troubled Company Reporter on Oct. 2, 2013, Bloomberg News bankruptcy columnist Bill Rochelle reported that Freedom Air listed assets and debt both less than $10 million in its petition. AXION INTERNATIONAL: Stockholders OK Reverse Stock Split -------------------------------------------------------- Axion International Holdings, Inc., disclosed with the U.S. Securities and Exchange Commission that these proposals were approved by its shareholders: (1) The proposal to amend the Company's current Articles of Incorporation to effect a reverse stock split of the Company's common stock by a ratio of not less than 1-for-8 and not more than 1-for-20 at any time prior to March 31, 2015, with the Board of Directors having the discretion as to whether or not the Reverse Stock Split is to be effected, and with the exact ratio of any Reverse Stock Split to be set at a whole number within the above range as determined by the Board in its discretion; (2) The proposal to, in the event the Company's Board effects the Reverse Stock Split, approve an amendment to the Company's current Articles of Incorporation to decrease the number of authorized shares of the Company's common stock from 250,000,000 shares to an amount equal to 250,000,000 divided by the number of shares being combined into one pursuant to the Reverse Stock Split; and (3) The proposal to amend the Company's current Articles of Incorporation to provide for the automatic conversion of the Company's preferred stock immediately upon the Company's shares of common stock being listed upon a U.S. based stock exchange. About Axion International New Providence, N.J.-based Axion International Holdings, Inc. (OTC BB: AXIH) - http://www.axionintl.com/-- is the exclusive licensee of patented and patent-pending technologies developed for the production of structural plastic products such as railroad crossties, pilings, I-beams, T-Beams, and various size boards including a tongue and groove design that are utilized in multiple engineered design solutions such as rail track, rail and tank bridges (heavy load), pedestrian/park and recreation bridges, marinas, boardwalks and bulk heading to name a few. AXION International reported a net loss of $24.19 million on $6.63 million of revenue in 2013, compared to a net loss of $5.43 million on $5.34 million of revenue in 2012. Following the 2013 results, BDO USA, LLP, expressed substantial doubt about the Company's ability to continue as a going concern, stating that the Company has suffered recurring losses from operations and has working capital and net capital deficiencies. BDO USA, LLP also issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. As of June 30, 2014, the Company had $16.40 million in total assets, $34.04 million in total liabilities, $6.94 million in 10% convertible preferred stock, and a $24.58 million total stockholders' deficit. BERNARD L. MADOFF: JPMorgan Deal Won't Unravel Fund Settlement -------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported U.S. Bankruptcy Judge Stuart Bernstein in Manhattan sided with Irving Picard, the trustee liquidating Bernard L. Madoff Investment Securities LLC, concluding that the settlement between the trustee and JPMorgan Chase & Co. is not similar with a June 2009 settlement between the trustee and two hedge funds. According to the report, Judge Bernstein said the agreement with the hedge funds, which contains a so-called most-favored-nation clause obligating the trustee to return a portion of his recovery if he made a similar settlement in another lawsuit for less than 85%, pertains only to claims that were "indefensible preferences." The JPMorgan settlement, under which the bank agreed to pay $2.24 billion, was different, because it was part of a global settlement that avoided criminal as well civil liability, according to Judge Bernstein, the report related. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has commenced distributions to victims, with the fourth and latest batch of distributions done in May 2014. Distributions to eligible claimants have totaled almost $6 billion, which includes $812.2 million in committed advances from the SIPC. More than 1,100 victims have already recovered the full principal they lost in the fraud. As of May 2014, Mr. Picard has recovered or reached agreements to recover $9.8 billion since his appointment in December 2008. BIOFUEL ENERGY: Stockholders Approve JBGL Builder Acquisition ------------------------------------------------------------- Biofuel Energy Corp. disclosed with the U.S. Securities and Exchange Commission that, at the annual meeting of stockholders held on Oct. 17, 2014, stockholders of the Company approved all the proposals set forth in the definitive proxy statement filed with the SEC on Sept. 18, 2014, including those proposals related to a transaction agreement, dated as of June 10, 2014, by and among the Company, certain affiliates of Greenlight Capital, Inc., Brickman Member Joint Venture, JBGL Builder Finance LLC and certain subsidiaries of JBGL Capital, LP. As reported by the TCR on June 24, 2014, Biofuel Energy had entered into a definitive agreement with certain affiliates of Greenlight Capital and James R. Brickman pursuant to which the Company will acquire the equity interests of JBGL Builder Finance LLC and certain subsidiaries of JBGL Capital, LP, from Greenlight and Brickman. JBGL is a series of real estate entities involved in the purchase and development of land for residential purposes, construction lending and home building operations. JBGL is currently owned and controlled by Greenlight and Brickman. The Company has received the requisite stockholder approvals to consummate the Transactions and, subject to the satisfaction or waiver of the remaining closing conditions (including the completion of a five business day period following the expiration of the rights offering described below as set forth in the Transaction Agreement), the Transactions are expected to close as promptly as practicable. The closing of the Transactions remains subject to customary closing conditions and the receipt of listing approval from NASDAQ for the continued listing of the Company's common stock on the Nasdaq Capital Market after the consummation of the Transactions. Expiration of $5.00 per Share Rights Offering The Company also announced that the subscription period of its rights offering expired at 5:00 p.m., New York City time, on October 17, 2014. Based on preliminary results, the Company received approximately $59.9 million through the exercise of basic subscription rights in the rights offering, including amounts committed to be purchased by Greenlight and its affiliates, which represents the exercise of approximately 85.6% of the rights issued by the Company in the rights offering. Holders who exercised their basic subscription rights (excluding Greenlight which agreed not to exercise its over-subscription right) also exercised approximately 49.1% of the over-subscription rights available to such exercising holders, including amounts committed to be purchased by affiliates of Third Point LLC through a priority over-subscription right. Based on preliminary results, the Company expects that Third Point will receive a full allocation of shares pursuant to its priority over- subscription right resulting in a purchase of approximately $9.3 million of additional shares and that other holders of subscription rights who properly exercised over-subscription rights will be allocated shares for an aggregate purchase price of approximately $800,000 on a pro-rata basis, which represents approximately 11.4% of the shares that they over-subscribed for. The total gross proceeds to be received by the Company in the rights offering will be $70 million. No shares will be issued to the parties that provided backstop commitments in connection with the rights offering (other than Third Point). All shares to be issued by the Company in the rights offering will be purchased by exercising holders at a price of $5.00 per share. Subscription rights that were not properly exercised by 5:00 p.m., New York City time, on Oct. 17, 2014, have expired and are no longer exercisable. The results of the rights offering are preliminary and subject to finalization and verification by the subscription agent, Broadridge Corporate Issuer Solutions, Inc. The stockholders also approved, among other things: -- an amendment to the Amended and Restated Certificate of Incorporation of the Company to increase the number of authorized shares of Common Stock; -- an amendment to the Charter to change the name of the Company to "Green Brick Partners, Inc."; -- an amendment to the Charter to eliminate all provisions in the Charter relating to the units of membership interests of BioFuel Energy, LLC, and the Class B Common Stock; -- an amendment to the Charter to preserve certain tax benefits; -- the compensation that may be paid or may become payable to the Company's named executive officers in connection with, or following, the consummation of the Transactions; -- the 382 Rights Agreement, dated as of March 27, 2014, between the Company and Broadridge Corporate Issuer Solutions, Inc.; and -- the compensation of the Company's executives and the holding of future advisory vote on executive compensation on an annual basis. Mark W. Wong, Scott H. Pearce, Elizabeth K. Blake, David Einhorn, Richard I. Jaffee, John D. March and Ernest J. Sampias were to the Board of Directors to hold office until the 2015 annual meeting of stockholders and the due election and qualification of their respective successors. About Biofuel Energy Denver, Colo.-based BioFuel Energy Corp. (Nasdaq: BIOF) -- http://www.bfenergy.com/-- aims to become a leading ethanol producer in the United States by acquiring, developing, owning and operating ethanol production facilities. It currently has two 115 million gallons per year ethanol plants in the Midwestern corn belt. Biofuel Energy incurred a net loss of $45.65 million in 2013, a net loss of $46.32 million in 2012 and a net loss of $10.36 million in 2011. The Company's balance sheet at June 30, 2014, showed $8.84 million in total assets, $1.40 million in total liabilities and $7.43 million in total equity. BLOCK COMMUNICATIONS: Moody's Rates Proposed $225MM Term Loan B1 ---------------------------------------------------------------- Moody's Investors Service assigned Ba1 to Block Communications, Inc.'s proposed $225 million 1st lien senior secured term loan. Proceeds from the new term loan along with roughly $6 million of balance sheet cash will be used to fund the $200 million acquisition of MetroCast cable television operations, including transaction related fees and expenses as well as repay an estimated $23 million of advances under the senior secured revolver. In addition, Moody's assigned Ba1 to the $100 million 1st lien senior secured revolver and downgraded the existing $250 million senior notes due 2020 to B1 from Ba3 reflecting the effective subordination of the senior notes to the increased senior secured credit facilities. Moody's also affirmed Block's Ba3 Corporate Family Rating (CFR) and Ba3-PD Probability of Default Rating (PDR). The rating outlook remains stable. Assignments: Issuer: Block Communications, Inc. NEW $225 million 1st Lien Senior Secured Term Loan: Assigned Ba1, LGD2 Existing $100 million 1st Lien Senior Secured Revolver: Assigned Ba1, LGD2 Downgraded: $250 million of 7.25% Senior Notes due 2020: Downgraded to B1, LGD5 from Ba3, LGD4 Affirmed: Issuer: Block Communications, Inc. Corporate Family Rating: Affirmed Ba3 Probability of Default Rating: Affirmed Ba3-PD Outlook Actions: Issuer: Block Communications, Inc. Outlook is Stable Ratings Rationale The Ba3 corporate family rating reflects Block's moderate debt-to- EBITDA of approximately 4.2x estimated for FYE2014 (including Moody's standard adjustments) and pro forma for announced transactions with mid-single digit percentage free cash flow-to- debt ratios. Consistent EBITDA generation from cable and telecom operations support the Ba3 CFR, despite EBITDA losses from the newspaper segment and EBITDA margins below industry peers for television broadcast operations. Block has a track record of maintaining acceptable leverage, and Moody's expect the company to apply free cash flow to reduce debt balances and position the company more strongly in the Ba3 rating. The pending acquisitions of cable (MetroCast for $200 million) and telecom businesses (Line System Inc. for $47.5 million) add scale as well as geographic diversity and reduces exposure to newspaper operations which continue to weigh on debt ratings. Newspaper revenue has declined in line with its peer group contributing to increasing annual EBITDA losses for the publishing segment since 2011. Looking forward, Moody's believe management will be able to meaningfully reduce losses from newspaper operations due to announced restructurings which will result in headcount reductions and to more efficient production from its new printing press. Secular changes negatively affecting traditional print media pressure the company's newspaper segment revenue and free cash flow. Liquidity is expected to be good with at least $65 million of revolver availability, and no significant debt maturities for at least two years. The stable outlook reflects Moody's expectation that, absent cable plant upgrades, debt funded acquisitions or sustained increases in unfunded pension liabilities, debt-to-EBITDA ratios will remain less than 4.5x (including Moody's standard adjustments) with mid- single digit percentage free cash flow-to-debt ratios as growth in combined EBITDA from cable, telecommunications, and broadcast segments offsets losses from newspaper operations. The outlook incorporates expectations for good execution of assimilating announced cable and telecom acquisitions, some progress in stabilizing recent subscriber losses in Toledo, and realization of substantially reduced costs for newspaper publishing operations. The outlook does not incorporate significant shareholder distributions or another significant debt financed acquisition. Ratings could be downgraded if Moody's believe the company would not be able to generate positive free cash flow in the absence of extraordinary capital spending or investment, or if there is deterioration in the performance of cable or telecommunications segments. Inability to realize expected cost reductions for the newspaper segment or debt-to-EBITDA ratios being sustained above 4.5x (including Moody's standard adjustments) could also lead to a downgrade. The company's lack of national or regional scale and newspaper exposure constrain ratings; however, ratings could be upgraded if newspaper revenue stabilizes and EBITDA losses are eliminated with total debt-to-EBITDA ratios being sustained comfortably below 3.0x (including Moody's standard adjustments) and free cash flow-to-debt ratios of 10% or more. Moody's would also need to be assured that the company will operate in a financially prudent manner consistent with a higher rating. A privately held diversified media company founded in 1900, Block Communications, Inc. has operations in cable television and telecommunications (roughly 68% of LTM June 2014 revenue pro forma for announced transactions), newspaper publishing (23%), and television broadcasting (9%). The company's cable operations serve the greater Toledo, OH metropolitan area including Michigan suburbs, the northern half of Mississippi through its pending MetroCast acquisition, and Erie County in Ohio. Block operates two daily metropolitan newspapers in Pittsburgh, PA and Toledo, OH, as well as television stations in Lima, OH, Louisville, KY, Boise, ID, and Decatur, IL. The company maintains its headquarters in Toledo with pro forma revenue of $566 million for LTM June 30, 2014. Block Communications, Inc.'s ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside Block Communications, Inc.'s core industry and believes Blocks Communications, Inc.'s ratings are comparable to those of other issuers with similar credit risk. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. BLUE RIBBON: S&P Assigns 'B' Corp. Credit Rating, Outlook Stable ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Los Angeles-based Blue Ribbon Intermediate Holdings LLC. The outlook is stable. At the same time, S&P assigned a 'B' issue-level rating to the company's proposed $75 million revolving credit facility due 2019 and $395 million first-lien term loan due 2021 with a '3' recovery rating. The '3' recovery rating indicates S&P's expectation of meaningful (50% to 70%) recovery in the event of payment default. S&P also assigned a 'CCC+' issue-level rating to the company's proposed $130 million second-lien facility due 2022. The '6' recovery rating indicates S&P's expectation of negligible (0% to 10%) recovery in the event of payment default. Blue Ribbon, through its operating company, Pabst, is a virtual brewer and benefits from a low cost structure arising from its agreement with a large U.S. brewer to contract, produce, and deliver essentially all of Pabst's ongoing volume. The company will use the proceeds from the debt offering, along with common equity from the Great American Brewing Company and TSG Consumer Partners LLC, to fund the purchase of Blue Ribbon, to refinance the company's existing debt outstanding, and to pay fees and expenses. "Our ratings on Blue Ribbon incorporate our expectation that the company will be highly leveraged, maintaining debt leverage above 6x, despite our expectation for some debt reduction," said Standard & Poor's credit analyst Bea Chiem. "Other factors considered include Pabst's relatively small size and narrow focus within the highly competitive U.S. beer industry, and its regional brand strength in the sub-premium or value-priced beer segment in the U.S., as well as its limited geographic diversification." The outlook is stable. S&P expects Blue Ribbon's operating performance will remain relatively stable over the near to intermediate term despite S&P's belief that the company will increase selling and marketing expenses under new management, that the company will maintain adequate liquidity, and that the company will apply free cash flow to debt reduction. S&P expects leverage will be in the 6.5x to 7x area and FFO to debt below 12% during the next 12 to 24 months. CASTLE-ROSE INC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Castle-Rose, Inc. 870 Woodpecker Dr. Kelso, WA 98626 Case No.: 14-45648 Chapter 11 Petition Date: October 21, 2014 Court: United States Bankruptcy Court Western District of Washington (Tacoma) Judge: Hon. Paul B. Snyder Debtor's Counsel: Richard S Ross, Esq. LAW OFFICE OF RICHARD S ROSS 1610 Columbia St Vancouver, WA 98660 Tel: 360-699-1400 Email: ecf@resolvedebt.net Total Assets: $501,595 Total Liabilities: $1.05 million The petition was signed by Andrew Masters, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/wawb14-45648.pdf CLUB AT SHENANDOAH: Western Golf Okayed as Bookkeeper ----------------------------------------------------- The Bankruptcy Court approved the consulting services agreement between The Club at Shenandoah Springs Village, Inc., and Western Golf Properties, LLC. Western Golf, the Debtor's former on-site management company, will perform these services for $4,000 per month: -- provide monthly bookkeeping and financial reporting services; -- prepare monthly operating reports; and -- meet monthly at Western Golf's corporate results and related financial issues. About The Club at Shenandoah Springs Village The Club at Shenandoah Springs Village, Inc., owns The Club At Shenandoah Springs Village, a golf and leisure resort in Thousand Palms, a desert region of central California. It filed for Chapter 11 protection (Bankr. C.D. Cal. Case No. 12-36723) on Dec. 3, 2012. The Debtor estimated both assets and liabilities of between $10 million and $50 million. Judge Mark D. Houle presides over the case. Daniel A. Lev, Esq., and Steven Worth, Esq., at SulmeyerKupetz, in Los Angeles, Calif., represent the Debtor as counsel. COASTLINE INVESTMENT: Hearing on Dismissal Bid Moved to Nov. 4 -------------------------------------------------------------- The hearing on the motion for an order authorizing disbursement of funds to creditors and dismissal of bankruptcy cases of Coastline Investments, doing business as Hilltop Suites Hotel, and Diamond Waterfalls LLC, doing business as Diamond Bar Inn & Suites, has been rescheduled to Nov. 4, 2013 at 10:00 a.m. The motion will be presented to Bankruptcy Judge Richard M. Neiter in the Courtroom 1645, the U.S. Bankruptcy Court, at 255 E. Temple Street, in Los Angeles, California. As reported in the Sept. 30, 2014 edition of The Troubled Company Reporter, The Debtors sought dismissal of their Chapter 11 cases after the Court authorized the sale of their properties and that transaction closed. The Court authorized the sale of the Debtors' hotels for the aggregate purchase price $19.5 million on Aug. 7, 2014, and the sale closed on Aug. 29, 2014. The Debtors submitted their memorandum on Sept. 12, 2014 for the dismissal of the cases. About Coastline Investments 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. As reported by the Troubled Company Reporter on Sept. 9, 2014, 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. CRUNCHIES FOOD: $250,000 DIP Financing from Delaski Approved ------------------------------------------------------------ The Bankruptcy Court authorized Crunchies Food Company, LLC, to incur postpetition additional $250,000 in financing from the Donald Delaski Revocable Trust dated Dec. 14, 2000. Delaski, the postpetition lender under the original financing order, advanced $80,000 to fund the Debtor's operations. The Debtor needs to incur postpetition debt in order to maximize the value of its estate. The Debtor is unable to obtain unsecured credit on terms more favorable than those offered by postpetition lender. The terms of postpetition debt include, among other things: i) The maximum principal amount of postpetition debt outstanding will not at any time exceed the sum of $330,000; provided however, as set forth in the loan and security agreement, the sum of $80,000 will be paid by postpetition lender directly to Delaski in satisfaction of the amounts loaned by Delaski to the Debtor postpetition, and, therefore, the maximum amount of new funds available to the Debtor on the terms and conditions of the order is $250,000; ii) All amounts outstanding under the DIP Facility will bear interest at 6% per annum compounded annually, payable at the maturity date, with default interest at 12%. iii) The postpetition debt will mature and be due and payable in full by Debtor on Oct. 24, 2014, subject to extension at the postpetition lender's sole and absolute discretion; As adequate protection from any diminution in value of the lender's collateral, the Debtor will grant the lender priming liens and superpriority administrative expense claim status. About Crunchies Food Crunchies filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-bk-11776) in Santa Barbara, California, on Aug. 15, 2014. The case is assigned to Judge Peter Carroll. The Debtor has tapped David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, serves as counsel. For its legal services, the firm has agreed to accept $50,000. The U.S. Trustee for Region 16 appointed four creditors of the Debtor to serve on the official committee of unsecured creditors. CRUNCHIES FOOD: Cash Collateral Access Expires on Oct. 24 --------------------------------------------------------- Bankruptcy Judge Peter H. Carroll in an order Oct. 17 authorized debtor Crunchies Food Company, LLC, to use cash collateral of (a) the Chung Family Trust; (b) the Provident Trust Group, LLC; (c) the Delaski Revocable Trust dated Dec. 14, 2000; and (d) the successor and assigns of the foregoing, until Oct. 24. The stipulation among the parties provides that, among other things: a) The Debtor may deviate from the line items in the budget by not more than 10% on a line item basis and not more than 10% on an aggregate basis; b) To the extent, if any, that the Debtor uses the proceeds of its postpetition loan for a line item in the budget, that line item will be reduced such that the combined amount of the Debtor's use of cash collateral and postpetition financing will not exceed such line item; c) The Debtor's authority to use cash collateral is conditioned upon: (i) the Debtor's retention of a chief restructuring officer; (ii) the Debtor's deposit of all cash collateral in a segregated account under the exclusive control of its CRO; and (iii) all expenditures of cash collateral being approved by the Debtor's CRO, subject to the budget. The Debtor said it has no ability to continue to operate its business and maintain and preserve the going-concern value of its business unless the Debtor has immediate access to and use of its cash to pay the Debtor's ordinary operating expenses. In December 2013, the Debtor received a loan for $1.5 million from Seung Chung, as Trustee of the Chung Family Trust, and then an additional $500,000 in February 2014, which loan is allegedly secured by all of the Debtor's assets. The Debtor also received two loans in the amounts of $300,000 and $500,000 in 2010 and a third loan in the amount of $4.2 million in October 2011 for a total loan amount of $5 million from the Donald Delaski Revocable trust, which loan is allegedly secured by all of the Debtor's assets. About Crunchies Food Crunchies filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-bk-11776) in Santa Barbara, California, on Aug. 15, 2014. The case is assigned to Judge Peter Carroll. The Debtor has tapped David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, serves as counsel. For its legal services, the firm has agreed to accept $50,000. The U.S. Trustee for Region 16 appointed four creditors of the Debtor to serve on the official committee of unsecured creditors. D.A.B. GROUP: Defends Hiring of Counsel and Real Estate Broker -------------------------------------------------------------- D.A.B. Group LLC responded to the objections of Orchard Hotel, LLC, lender, to the retention of Goldberg Weprin Finbkel Goldstain LLP as counsel, and Massel Knakal Realty Services as real estate broker. The Debtor asserts that the lender has a clear litigation agenda in objecting to the retentions of GWFG and Massey Knakal, assuming that potential conflicts could arise. According to the Debtor, the objections are logged as rhetoric and short in substance and must be overruled. As reported in the Troubled Company Reporter on Sept. 4, 2014, the Debtor has tapped Goldberg Weprin to serve as counsel at these hourly rates: Partner $495 Associates $250-$425 Paralegal $90-$120 The Debtor has arranged for the proposed retention of Massey Knakal to act as the exclusive real estate broker, to simultaneously market both the DAB Property located at 139-141 Orchard Street, New York, NY (Block 415, Lots 66 and 67), and lease the Rivington Property located at Block 415, Lots 61 and 62, owned by the Debtor's affiliate, 77-70 Rivington Street Realty LLC. The dual offering will permit the emergence of a possible single purchaser/lessee for both the DAB Property and the Rivington Property or for the sale of the DAB Property separately. About DAB Group D.A.B. Group LLC, owner of a stalled 16-story Allen Street Hotel project in Orchard Street, New York, sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-12057) in Manhattan on July 14, 2014, to pursue a prompt sale of the property. The case is assigned to Judge Shelley C. Chapman. The property has been in the hands of a receiver since July 18, 2011. Simon J.K. Miller, of Blank Rome LLP, serves as receiver. J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, in New York, serves as counsel to the Debtor. DAB Group said in a court filing that its property is continguous to the commercial property owned by its affiliate, 77-79 Rivington Street Realty LLC (Bankr. S.D.N.Y. Case No. 14-10339). Accordingly, DAB's Chapter 11 case is being filed as a related proceeding. The Debtor is required to file its Chapter 11 plan and disclosure statement by Nov. 12, 2014. D.A.B. GROUP: Reorganization Plan Mulls Future Sale --------------------------------------------------- D.A.B. Group LLC submitted a Plan of Reorganization that contemplates a future sale of the property at 139-141 Orchard Street, New York City. The Plan fundamentally serves as the mechanism for distributing the sale proceeds to the holders of allowed claims against the Debtor with a transfer tax exemption. Also, in conjunction with the confirmation process, the Debtor intends to pursue a formal adversary proceeding or objection to the mortgage claim of Orchard Hotel LLC, challenging Orchard's entitlement to interest, default interest, and other costs and legal fees after March 1, 2011, based upon, inter alia, the equitable defenses outlined in the Debtor's opposition to Orchard's pre-bankruptcy motion for summary judgment. Under the Plan, among other things, each holder of an Allowed Unsecured General Claim will receive, in full and final satisfaction of such claims, a pro rata share of the net excess Sale proceeds and recoveries from causes of action, if any, up to 100%, after the prior payment of Administrative Expense Claims, and allowed Class 1 and Class 2 claims in full. In the event the allowed claims of all senior and priority creditors are paid in full and there is sufficient cash on hand, Class 3 General Unsecured Claims will be entitled to postpetition interest at the Federal Judgment Rate, unless such holder consents to other treatment. The Plan will be implemented by the sale of the property and the establishment of the confirmation fund and related reserves on the closing date. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/DABGroup_43_DS.pdf About DAB Group D.A.B. Group LLC, owner of a stalled 16-story Allen Street Hotel project in Orchard Street, New York, sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-12057) in Manhattan on July 14, 2014, to pursue a prompt sale of the property. The case is assigned to Judge Shelley C. Chapman. The property has been in the hands of a receiver since July 18, 2011. Simon J.K. Miller, of Blank Rome LLP, serves as receiver. J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, in New York, serves as counsel to the Debtor. DAB Group said in a court filing that its property is continguous to the commercial property owned by its affiliate, 77-79 Rivington Street Realty LLC (Bankr. S.D.N.Y. Case No. 14-10339). Accordingly, DAB's Chapter 11 case is being filed as a related proceeding. The Debtor is required to file its Chapter 11 plan and disclosure statement by Nov. 12, 2014. DARDEN RESTAURANTS: Fitch Rates Credit Protection in BB Territory ----------------------------------------------------------------- Recent managerial changes at Darden Restaurants have sent the company's credit default swap (CDS) spreads to levels not seen in over a year, according to Fitch Solutions in its latest CDS case study snapshot. Five-year CDS on Darden have widened 47% over the past month. After pricing historically at 'BB+' levels, credit protection on Darden's debt is now pricing a notch lower in 'BB' territory. Increased market scrutiny for Darden is likely attributed at least partly to senior management turnover, according to Director Diana Allmendinger. 'Darden's replacement of its CEO and entire Board of Directors, driven by the company's shareholders, seems to be the primary catalyst behind the recent CDS widening,' said Ms. Allmendinger. In terms of credit quality, the verdict is still out given the tendency for activists to increase leverage and seek short-term gains over long-term value. Fitch Solutions case studies build on data from its CDS Pricing Service and proprietary quantitative models, including CDS Implied Ratings. These credit risk indicators are designed to provide real-time, market-based views of creditworthiness. As such, they can and often do reflect more short term market views on factors such as currencies, seasonal market effects and short-term technical influences. This is in contrast to Fitch Ratings' Issuer Default Ratings (IDRs), which are based on forward-looking fundamental credit analysis over an extended period of time. DAYCO LLC: S&P Affirms 'B+' CCR & Revises Outlook to Stable ----------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'B+' corporate credit rating on Troy, M.I.-based automotive supplier Dayco LLC and revised its outlook on the company to stable from negative. S&P also assigned its 'B+' issue-level and '4' recovery rating to the proposed $70 million senior secured add-on term loan, to be issued by Dayco Products LLC, a subsidiary of Dayco LLC. The '4' recovery rating indicates S&P's expectation for average recovery (30%-50%) in the event of a payment default. "Although the proposed debt-financed dividend will be the second in one year, we revised our outlook to stable from negative and affirmed our 'B+' rating because of improving operating trends for Dayco," said Standard & Poor's credit analyst Robyn Shapiro. "Improving demand in the North American and European automotive aftermarket, along with new program launches and sales growth in South America and China, have sparked sales and EBITDA margin growth." The company has also successfully completed bolt-on acquisitions and continues to make progress on its cost-savings initiatives. The improvement in operating performance offsets the additional debt to fund the proposed $125 million dividend to owners, allowing the company to keep adjusted debt to EBITDA below 5x. The outlook on Dayco is stable, reflecting the company's improved EBITDA margins and S&P's expectation of debt to EBITDA remaining below 5x, despite the current proposed debt-financed dividend. S&P could consider a downgrade in the coming year if it believes Dayco's debt leverage will remain higher than 5x on a sustained basis or if free operating cash flow generation is negative for several quarters -- excluding temporary fluctuations caused by any change in accounts receivables sold through factoring programs. Although S&P don't assume this in its base-case scenario, Dayco could begin using cash -- even if not at the same levels that contributed to Mark IV LLC's bankruptcy filing -- if auto production levels drop suddenly (as they did in late 2008 and early 2009) amid the economic uncertainties in the U.S. and Europe and a slower-than-anticipated ramp-up in the company's new facilities in China and Poland. S&P could also lower the rating if it forecasts a decline in headroom under the company's net leverage covenant in the credit agreement to less than 15%. Although unlikely in the next year, S&P could raise the rating if it comes to believe that ownership interest by private equity investors would decline over time, reducing the likelihood of additional debt-financed distributions. S&P would also look for Dayco to successfully maintain or improve its EBITDA margins, generate free operating cash flow to debt greater than 10%, and maintain adjusted debt to EBITDA to less than 4x. S&P would also look for an "adequate" liquidity assessment, with headroom under the financial maintenance covenant in the credit agreement. DAYCO LLC: Moody's Affirms 'B2' Corporate Family Rating ----------------------------------------------------- Moody's Investors Service affirmed Dayco LLC's B2 Corporate Family Rating and B2-PD Probability of Default Rating. In a related action, Moody's affirmed the B1 rating on the upsized $445 million (upsized $70 million from $375 million) guaranteed senior secured term loan B issued by Dayco Products, LLC. Dayco Products, LLC is Dayco's U.S. primary operating subsidiary. The rating outlook is stable. Proceeds from the add-on of $70 million to the existing senior secured term loan, along with a $15 million draw on the company's European ABL revolver and cash on hand, will be used to fund a $125 million dividend to shareholders. The following rating actions were taken: Dayco LLC Corporate Family Rating, affirmed at B2; Probability of Default, affirmed at B2-PD; Dayco Products, LLC $445 million (upsized $70 million) guaranteed senior secured term loan due 2019, affirmed B1 (LGD3) Ratings Rationale Dayco's B2 Corporate Family Rating reflects the incremental leverage and interest cost associated with the additional debt burden used to fund the shareholder distribution transaction. As a result of the transaction, Dayco's Moody's adjusted Debt/EBITDA is expected to increase to 4.4x on a pro forma basis for the LTM period ending May 31, 2014. This dividend follows a $108 million debt financed dividend taken in December 2013 and results in funded debt levels now over $500 million on a pro-forma basis. Dayco's ratings continue to benefit from the company's position as a leading supplier of belts, tensioners and pulleys in the automotive and industrial markets, and balanced revenue profile through exposure to the original equipment market and the aftermarket. Dayco has a longstanding history in the automotive industry and through the disposition of non-core businesses over the past several years is now focused on automotive and industrial power transmission products. Moody's expects the company's credit metrics to benefit from the continuing positive demand trends in the North American automotive market and stabilizing macroeconomic conditions in Europe. The stable outlook is supported by the expectation of continued positive automobile demand trends in the company's regional markets and the company's strong cash balances. Future events that have the potential to drive Dayco's rating or outlook lower include deteriorating conditions in global automotive and commercial vehicle production which are not offset by successful cost management. EBITA/Interest below 1.5x or Debt/EBITDA approaching 6.5x, or a deteriorating liquidity profile could result in a downgrade of the rating. Future events that have the potential to drive Dayco's outlook or ratings higher include: EBITA margins approaching 10% leading to consistent free cash flow generation and reduced leverage such that Debt/EBITDA is sustained below 3.5x, and EBITA/Interest coverage sustained above 2.5x. The principal methodology used in these ratings was Global Automotive Supplier Industry published in May 2013. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Dayco, LLC (formerly known as Mark IV, LLC), headquartered in Troy, MI, is a global manufacturer of engine technology solutions targeted at primary and accessory drive systems for the worldwide aftermarket, automotive, and industrial markets. Revenue for the last twelve month period ended May 2014 was approximately $1 billion. DOMARK INT'L: Posts $658K Net Loss in Aug. 31 Quarter ----------------------------------------------------- DoMark International, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $658,976 on $nil of sales for the three months ended Aug. 31, 2014, compared with a net loss of $763,610 on $nil of sales for the same period in 2013. The Company's balance sheet at Aug. 31, 2014, showed $1.45 million in total assets, $2.6 million in total liabilities, and a stockholders' deficit of $1.15 million. The Company has inadequate working capital to maintain or develop its operations, and is dependent upon funds from private investors and the support of certain stockholders which raises substantial doubt about the ability of the Company to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/Hi0U6P About Domark International Based in Lake Mary, Florida, DoMark International, Inc., was incorporated under the laws of the State of Nevada on March 30, 2006. The Company was formed to engage in the acquisition and refinishing of aged furniture using exotic materials and then reselling it through interior decorators, high-end consignment shops and online sales. The Company abandoned its original business of exotic furniture sales in May of 2008 and pursued the acquisition of entities to best bring value to the company and its shareholders. EFUSION SERVICES: Court Dismisses Chapter 11 Bankruptcy Case ------------------------------------------------------------ The Hon. Michael E. Romero of the U.S. Bankruptcy Court for the District of Colorado dismissed the Chapter 11 bankruptcy case of eFusion Services LLC. As reported in the Troubled Company Reporter on Feb. 17, 2014, John Dorsey, Thomas McCann, and Anthony Maley, creditors of Efusion Services LLC, asked the U.S. Bankruptcy Court for the District of Colorado to dismiss the Debtor's Chapter 11 case because the Debtor has no debts to reorganize and no business to rehabilitate. According to the creditors, the Debtor is a holding company with no cash, no income, no ability to generate income, nine creditors, no money to pay its counsel only one month into this case. This case was filed in bad faith for the benefit of the Debtor's majority owner, eFusion Management and its principal Paul Lufkin so that they could attempt to salvage a deal they failed to close for almost a year. Daniel J. Garfield, Esq., at Foster Graham Milstein & Calisher LLP, counsel of the creditors, said the creditors and the Debtor agreed in December 2012 that the Debtor would purchase companies for $35 million and pay Messrs. Dorsey and McCann $27 million by February 2013. Despite multiple extensions of the payment deadline, the Debtor failed to raise any funds, and Messrs. Dorsey and McCann exercised their right to terminate the purchase, says Mr. Garfield. Mr. Garfield noted that the Debtor has claimed no termination occurred and asserted that Messrs. Dorsey and McCann were not truthful concerning the finances of the companies. This dispute, above all other facts, explains the Debtor's bad faith petition, he added. About eFusion Services LLC eFusion Services LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Colo. Case No. 13-30740) on Dec. 20, 2013. The petition was signed by Paul Lufkin, Manager of eFusion Management LLC. The Debtor disclosed total assets of $39 million and total liabilities of $32.6 million, according to amended schedules filed with the Court. The Hon. Michael E. Romero presides over the case. The Debtor employed Powell Theune PC as its counsel. Richard A. Weiland, the U.S. Trustee for Region 19, was not able to form an Official Committee of Unsecured Creditors in the bankruptcy case of eFusion Services LLC because there were too few unsecured creditors who are willing to serve on the Committee. ENERGY FUTURE: Wants to Tap Balch & Bingham as Special Counsel -------------------------------------------------------------- Energy Future Holdings Corp., formerly known as TXU Corp., seeks to employ Balch & Bingham LLP as its special counsel. As special counsel to the Debtor, the firm is expected to provide these services: (a) Litigate against entities, including government and non- governmental entities, who seek civil penalties or injunctive relief related to the Debtors' coal-fueled and other generation units; (b) Provide environmental and regulatory compliance counseling, permitting, and other guidance; and (c) Represent the Debtors in administrative proceedings on environmental matters. P. Stephen Gidiere III, a partner at Balch & Bingham LLP, assures the Court that his Firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The Debtors paid $500,000 to Balch as a classic retainer before the Petition Date. Statement Regarding U.S. Trustee Guidelines In a declaration filed with the Court, Mr. Gidiere related that the Firm intends to make a reasonable effort to comply with the U.S. Trustee's requests for information and additional disclosures as set forth in the Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under 11 U.S.C. Sec. 330 by Attorneys in Larger Chapter 11 Cases Effective As of November 1, 2013, both in connection with this application and the interim and final fee applications to be filed by Balch in these chapter 11 cases. Attorney Statement Pursuant to Revised U.S. Trustee Guidelines The Firm has responded to the request for additional information set for in Paragraph D.1 of the Revised U.S. Trustee Guidelines: a. Question: Did Balch agree to any variations from, or alternatives to, Balch's standard billing arrangements for this engagement? Answer: No. Balch and the Debtors have not agreed to any variations from, or alternatives to, Balch's standard billing arrangements for this engagement. b. Question: Do any of the professionals in this engagement vary their rate based on the geographic location of the Debtors' chapter 11 cases? Answer: No. The hourly rates used by Balch in representing the Debtors are consistent with the rates that Balch charges other comparable chapter 11 clients, regardless of the location of the chapter 11 case. c. Question: If Balch has represented the Debtors in the 12 months prepetition, disclose Balch's billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If Balch's billing rates and material financial terms have changed postpetition, explain the difference and the reasons for the difference. Answer: Balch's current hourly rates for services rendered on behalf of the Debtors range as follows: Billing Category Range ---------------- ----- Partners $340 to $655 Associates $230 to $310 Staff Attorneys $230 Paraprofessionals $175 to $195 Balch represented the Debtors during the twelve-month period before the Petition Date, using the hourly rates listed above. d. Question: Have the Debtors approved Balch's budget and staffing plan, and, if so, for what budget period? Answer: For the Debtors' environmental matters on which Balch advises the Debtors, the Debtors and Balch routinely discuss the scope of Balch's work and the requisite staffing and budgetary needs. As a result, Balch regularly reevaluates its budgetary and staffing needs in connection with its work for the Debtors. To that end, the Debtors and Balch are finalizing a formal budget and staffing plan for the period from Oct. 1, 2014 to December 31, 2014, which Balch intends to submit with its first interim fee application. Mr. Gidiere added that Balch's hourly rates and billing policies are based on market conditions of firms of a size, location, and practice comparable to Balch's. Further, Balch's hourly billing rates are comparable to the rates Balch charges other comparable chapter 11 clients, regardless of location of the debtors. Consistent with past practice and its staffing policies, Balch expects that a number of attorneys will provide services to the Debtors from time to time. Balch's policy is to charge each client for all expenses and disbursements incurred in connection with the client's case, including, among other things, word processing, telephone and telecopier usage, photocopying charges, travel expenses, expenses for "working meals," as well as non-ordinary overhead expenses such as secretarial overtime. Balch believes that allocating these expenses to the client that incurs them is more equitable than distributing such expenses among all clients through higher hourly billing rates. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80 percent-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their cases jointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported total assets of $36.4 billion in book value and total liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee represents the interests of the unsecured creditors of ONLY of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energy restructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. FL 6801 SPIRITS: Z Capital Jilted by Canyon Ranch Hotel ------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that Canyon Ranch Hotel & Spa in Miami Beach, which is indirectly owned by Lehman Brothers Holdings Inc., said that it would propose a Chapter 11 plan with 6801 Collins Hotel LLC as the buyer of its assets although Z Capital Partners LLC has been announced the winner at an auction. According to the report, Z Capital told U.S. Bankruptcy Judge Shelley C. Chapman in Manhattan that she must enforce the auction results and bar a sale to 6801 Collins under a plan or otherwise. 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. FRIENDLY ICE CREAM: Friendly's Branch at Harrisburg, PA Closes -------------------------------------------------------------- Sue Gleiter at Pennlive.com reports that the Friendly's restaurant at 4010 Jonestown Road, in Harrisburg, Pennsylvania, has closed. Regan Communications Group, which handles Friendly's public relations, said in a statement that the restaurant closed on Oct. 20 in anticipation of the expiration of its lease. The restaurant is one of Friendly's restaurants owned by AKZ Delaware Valley Hospitality Inc. AKZ owns seven other Friendly's restaurants in Pennsylvania, Pennlive.com says, citing Regan Communications. A report by Gary Puleo, which was posted at Pottsmerc.com in July 2012, stated that AKZ Delaware purchased 13 Friendly's restaurants in the Philadelphia-Harrisburg region. According to Pennlive.com, Friendly Ice Cream LLC closed down 63 restaurants in 2011 and in recent weeks, these Friendly's outlets were also shut down: (i) South Royalton, Vermont; (ii) Darien, Connecticut; and (iii) Yorktown, New York. About Friendly Ice Cream Friendly Ice Cream Corp. -- http://www.friendlys.com/-- the owner and franchiser of 490 full-service, family-oriented restaurants and provider of ice cream products in the Eastern United States, filed for Chapter 11 reorganization together with four affiliates (Bankr. D. Del. Lead Case No. 11-13167) on Oct. 5, 2011, to sell the business mostly in exchange for debt to Sundae Group Holdings II LLC, a unit of Sun Capital Partners Inc. The existing owner and holder of the Debtors' second-lien debt are also affiliates of Sun Capital. Friendly's, based in Wilbraham, Massachusetts, also announced the closing of 63 stores, leaving about 424 operating. Franchise operators have about 230 of the locations. Judge Kevin Gross oversees the case. James A. Stempel, Esq., Ross M. Kwasteniet, Esq., and Jeffrey D. Pawlitz, Esq., at Kirkland & Ellis LLP; and Laura Davis Jones, Esq., Timothy P. Cairns, Esq., and Kathleen P. Makowski, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. Zolfo Cooper serves as the Debtors' financial advisors. In its petition, Friendly Ice Cream Corp. estimated $100 million to $500 million in assets and debts. The petitions were signed by Steven C. Sanchioni, executive vice president, chief financial officer, treasurer, and assistant secretary. Friendly's is one of two companies under Sun Capital's portfolio to file for bankruptcy in a span of two days. Mexican-food chain Real Mex, which operates restaurants such as Chevys, filed in Delaware bankruptcy court on Oct. 3, 2011. On Oct. 12, 2011, the U.S. Trustee appointed the Committee. The Committee currently consists of seven members. The Committee selected Akin Gump Straus Hauer & Feld LLP and Blank Rome LLP to serve as co-counsel to the Committee, and FTI Consulting to serve as the Committee's financial advisor. A Sun Capital affiliate, Sundae Group Holdings, offered to pay about $120 million for the business. The price includes enough cash to pay first-lien debt and an amount of cash for unsecured creditors to be negotiated with the official creditors' committee. Aside from cash, Sun Capital made a credit bid from the $267.7 million in second-lien, pay-in-kind notes. On Dec. 29, 2011, the Bankruptcy Court entered an order approving the sale to Sundae Group. The sale closed on Jan. 9, 2012. Friendly Ice Cream Corp. was renamed to Amicus Wind Down Corporation following the sale. Friendly's was one of two companies under Sun Capital's portfolio to file for bankruptcy in a span of two days. Mexican-food chain Real Mex, which operates restaurants such as Chevys, filed in Delaware bankruptcy court on Oct. 3, 2011. In early June 2012, the Debtor won approval of its liquidating Chapter 11 plan where unsecured creditors were told to expect a recovery between 1.6% and 3.2%. The plan is partly based on a settlement where existing owner Sun Capital receives releases of claims in return for reducing its $279 million second-lien claim to $50 million and subordinating the remaining secured claim. GELTECH SOLUTIONS: Issues 598,002 Common Shares COO --------------------------------------------------- GelTech Solutions, Inc., disclosed with the U.S. Securities and Exchange Commission that it received $150,000 from Michael Reger, the Company's chief operating officer and principal shareholder, in exchange for 598,002 shares of the Company's common stock and 299,001 two-year warrants exercisable at $2.00 per share. The shares of common stock and warrants were issued without registration under the Securities Act of 1933 in reliance upon the exemption provided in Section 4(a)(2) and Rule 506(b) thereunder. About GelTech Jupiter, Fla.-based GelTech Solutions. Inc., is a Delaware corporation organized in 2006. The Company markets four products: (1) FireIce(R), a water soluble fire retardant used to protect firefighters, structures and wildlands; (2) Soil2O(R) 'Dust Control', its new application which is used for dust mitigation in the aggregate, road construction, mining, as well as, other industries that deal with daily dust control issues; (3) Soil2O(R), a product which reduces the use of water and is primarily marketed to golf courses, commercial landscapers and the agriculture market; and (4) FireIce(R) Home Defense Unit, a system for applying FireIce(R) to structures to protect them from wildfires. Salberg & Company, P.A., expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has net cash used in operating activities in 2014 of $5.13 million and has an accumulated deficit of $35.13 million at June 30, 2014. The Company reported a net loss of $7.11 million for the fiscal year ended June 30, 2014, following a net loss of $5.22 million for the fiscal year ended June 30, 2013. The Company's balance sheet at June 30, 2014, showed $1.24 million in total assets, $3.14 million in total liabilities and a stockholders' deficit of $1.9 million. GENERAL MOTORS: Del High Court Interprets UCC Termination Rules --------------------------------------------------------------- The Delaware Supreme Court held that for a termination statement to become effective under Sec. 9-509 of Delaware's version of the Uniform Commercial Code and thus to have the effect specified in Sec. 9-513 of the Delaware UCC, it is enough that the secured party authorizes the filing to be made, which is all that Sec. 9-510 requires. The Delaware UCC contains no requirement that a secured party that authorizes a filing subjectively intends or otherwise understands the effect of the plain terms of its own filing. The U.S. Court of Appeals for the Second Circuit certified to the Delaware Supreme Court this question of law important to a dispute pending before it: "Under UCC Article 9, as adopted into Delaware law by Del. Code Ann. tit. 6, art. 9, for a UCC-3 termination statement to effectively extinguish the perfected nature of a UCC-1 financing statement, is it enough that the secured lender review and knowingly approve for filing a UCC-3 purporting to extinguish the perfected security interest, or must the secured lender intend to terminate the particular security interest that is listed on the UCC-3?" The dispute pending before the Second Circuit turns on the effect of a UCC termination statement -- a "UCC-3 termination statement" -- filed with the Delaware Secretary of State on behalf of General Motors Corporation. That termination statement, by its plain terms, purported to extinguish a security interest on the assets of General Motors -- term loan security interest -- held by a syndicate of lenders, including JPMorgan Chase Bank, N.A. But neither JPMorgan nor General Motors subjectively intended to terminate the term loan security interest when General Motors filed the termination statement. General Motors' counsel for a separate "synthetic lease" financing transaction, Mayer Brown LLP, had inadvertently included the term loan security interest on the termination statement that it filed in the process of unwinding the synthetic lease. According to JPMorgan, no one at General Motors, Mayer Brown, or Simpson Thatcher Bartlett LLP (JPMorgan's counsel for the synthetic lease transaction) noticed this error, even though individuals at each organization reviewed the filing statement before the termination statement was filed on October 30, 2008. It is assumed that JPMorgan itself reviewed the termination statement and knowingly approved its filing. After General Motors filed for reorganization under Chapter 11 of the Bankruptcy Code, JPMorgan informed the unofficial committee of unsecured creditors -- Creditors Committee -- that a UCC-3 termination statement relating to the term loan had been inadvertently filed. On July 31, 2009, the Creditors Committee commenced a proceeding against JPMorgan in the United States Bankruptcy Court for the Southern District of New York, seeking, among other things, a determination that the filing of the UCC-3 termination statement was effective to terminate the term loan security interest and thus render JPMorgan an unsecured creditor on par with the other General Motors unsecured creditors. JPMorgan contested that argument, asserting that it had not authorized the termination statement releasing the term loan security interest, and that the statement was erroneously filed because no one at General Motors, JPMorgan, or the law firms working on the synthetic lease transaction recognized that the unrelated term loan security interest had been included on the statement. On cross-motions for summary judgment, the Bankruptcy Court found for JPMorgan on various grounds, including that JPMorgan had not empowered Mayer Brown to act as its agent in releasing the term loan security interest in the sense that it had only authorized Mayer Brown to file an accurate termination statement that released security interests properly related to the synthetic lease transaction. Because neither JPMorgan nor General Motors intended the legal consequences of the UCC-3 termination statement, the Bankruptcy Court found that the UCC-3 filing was not authorized and therefore was not effective to terminate the term loan security interest. The Creditors Committee appealed to the Second Circuit, arguing, among other things, that Mayer Brown was authorized as JPMorgan's agent to file the UCC-3 termination statement. The Creditors Committee argued that the only issue is whether JPMorgan had authorized the filing of the UCC-3 termination statement. So long as JPMorgan had authorized the statement to be filed, the termination of all identified security interests, including the term loan security interest, would be effective. The Creditors Committee also contended that JPMorgan's argument that a party can authorize a filing and then later claim that it had not authorized the filing because it failed to catch an error in the statement is inconsistent with the plain language of Sec. 9-513 of Delaware's UCC. That language states in pertinent part that "upon the filing of a termination statement with the filing office, the financing statement to which the termination statement relates ceases to be effective." By contrast, JPMorgan took the position that a party may authorize a specific document to be filed on its behalf, but that such authorization does not cause the termination statement to be effective if errors in the statement resulted in the release of a security interest that the party did not subjectively intend to release. The Second Circuit has indicated that it would be helpful to have an answer from the Delaware Supreme Court regarding this aspect of the parties' dispute. That answer may avoid any need for the Second Circuit to address the parties' disagreement as to whether Mayer Brown was authorized to act as JPMorgan's agent to file the UCC-3 termination statement, or provide some useful clarity if the agency issue must be addressed. The case is, OFFICIAL COMMITTEE OF UNSECURED CREDITORS OF MOTORS LIQUIDATION COMPANY, Plaintiff-Appellant, v. JPMORGAN CHASE BANK, N.A., Individually and as Administrative Agent for various lenders party to the Term Loan Agreement described herein, Defendant- Appellee, No. 325, 2014 (Del.). A copy of the Supreme Court's October 17, 2014 decision is available at http://is.gd/Y9lUQZfrom Leagle.com. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation Company was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. GLOBAL GEOPHYSICAL: Can Proceed with Dec. 5 Auction --------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that U.S. Bankruptcy Judge Richard S. Schmidt in Corpus Christi, Texas, signed an order approving the procedures governing the bidding and sale of Global Geophysical Services Inc.'s assets and scheduling an auction for Dec. 5. According to the report, competing bids are due Dec. 1. The $200 million in 10.5 percent senior unsecured notes due 2017 last traded on Oct. 15 for 8.5 cents on the dollar, the Bloomberg report said, citing Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. About Global Geophysical, Autoseis et al. Global Geophysical Services Inc., a provider of seismic data for the oil and gas drilling industry, sought bankruptcy protection, intending to reorganize on its own with additional capital or explore a sale or other transaction. Based in Missouri City, Texas, Global Geophysical disclosed assets of $468.7 million and liabilities totaling $407.3 million as of Sept. 30, 2013. Liabilities include $81.8 million on a secured term loan owing to TPG Specialty Lending Inc. and Tennenbaum Capital Partners LLC. TPG is the lenders' agent. Global also owes $250 million on two issues of 10.5 percent senior unsecured notes, with Bank of New York Mellon Trust Co. as indenture trustee. Global Geophysical and five affiliates, including Autoseis, Inc. (lead debtor), filed Chapter 11 petitions in Corpus Christi, Texas (Bankr. S.D. Tex. Lead Case No. 14-20130) on March 25, 2014. The Debtors are represented by C. Luckey McDowell, Esq., Omar Alaniz, Esq., and Ian E. Roberts, Esq., at Baker Botts, LLP, in Dallas, Texas; and Shelby A. Jordan, Esq., and Nathanial Peter Holzer, Esq., at Jordan, Hyden, Womble, Culbreth, & Holzer, PC in Corpus Christi, Texas. Alvarez & Marsal serves as the Debtors' restructuring advisors, Fox Rothschild Inc. as financial advisor, and Prime Clerk as claims and noticing agent. The U.S. Trustee for Region 7, has selected seven creditors to the Official Committee of Unsecured Creditors. The Committee tapped Greenberg Traurig, LLP as counsel; and Lazard Freres & Co. LLC and Lazard Middle Market LLC, as financial advisors and investment bankers. The Ad Hoc Group of Noteholders and the DIP Lenders are represented by Marty L. Brimmage, Jr., Esq., Charles R. Gibbs, Esq., Michael S. Haynes, Esq., and Lacy M. Lawrence, Esq., at Akin Gump Strauss Hauer & Feld LLP. Prepetition secured lender TPG is represented by David M. Bennett, Esq., Tye C. Hancock, Esq., and Joseph E. Bain, Esq., at Thompson & Knight LLP; and Adam C. Harris, Esq., Lawrence V. Gelber, Esq., David M. Hillman, Esq., and Brian C. Tong, Esq., at Schulte Roth & Zabel LLP. GT ADVANCED: Court OKs Joint Administration of Bankruptcy Cases --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Hampshire authorized the joint administration of the Chapter 11 cases of GT Advanced Technologies Inc., et al. The Court ordered that the lead case will be that of GT Advanced Technologies Inc., Case No. 14-11916. About GT Advanced Technologies GT Advanced Technologies Inc. -- http://www.gtat.com/-- is a diversified technology company producing advanced materials and innovative crystal growth equipment for the global consumer electronics, power electronics, solar and LED industries. Headquartered in Merrimack, New Hampshire, GT is a publicly held corporation whose stock is traded on NASDAQ under the ticker symbol "GTAT." As of June 28, 2014, the GTAT Group's unaudited and consolidated financial statements reflected assets totaling $1.5 billion and liabilities totaling $1.3 billion. As of Sept. 29, 2014, GTAT had $85 million in cash, $84 million of which is unencumbered. On Oct. 6, 2014, GT Advanced Technologies and 8 affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D. N.H. Lead Case No. 14-11916). GT says that it has sought bankruptcy protection due to a "severe liquidity crisis." The Debtors have tapped Nixon Peabody LLP and Paul Hastings LLP as attorneys and Kurtzman Carson Consultants LLC as claims and noticing agent. H & S CERT. AUTO: Case Summary & 13 Unsecured Creditors ------------------------------------------------------- Debtor: H & S Cert. Auto, Inc. 9111 Falcon Ridge Drive Bridgeview, IL 60455 Case No.: 14-38111 Chapter 11 Petition Date: October 21, 2014 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Hon. Carol A. Doyle Debtor's Counsel: David P Lloyd, Esq. DAVID P. LLOYD, LTD. 615B S. LaGrange Rd. LaGrange, IL 60525 Tel: 708 937-1264 Fax: 708 937-1265 Email: courtdocs@davidlloydlaw.com info@davidlloydlaw.com Total Assets: $929,036 Total Liabilities: $1.76 million The petition was signed by Mohammed Hussein, president. A list of the Debtor's 13 largest unsecured creditors is available for free at http://bankrupt.com/misc/ilnb14-38111.pdf HOLLY HILL: Ch.11 Trustee Hires CBRE as Real Estate Broker ---------------------------------------------------------- Richard J. Laski, the Chapter 11 Trustee of Holly Hill Community Church, aka Holy Hill Community Church, seeks authorization from the Hon. Julia W. Brand of the U.S. Bankruptcy Court for the Central District of California to employ CBRE, Inc. as his real estate broker for the sale of the estate's interest in a commercial real property commonly known as 1111 Sunset Blvd., Los Angeles, CA 90012. CBRE will receive a commission equal to 3% of the Property's sale price that is either actually received by escrow upon closing of the sale or the total sale proceeds received by the Debtor's bankruptcy estate from the Sale of the Property or 4% if the successful buyer is represented by an outside broker without further application to or order of the Court. Phillip Sample, senior vice president of CBRE, 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. CBRE can be reached at: Phillip Sample CBRE, INC. 400 S. Hope Street, Suite 2500 Los Angeles, CA 90071 Tel: +1 (213) 613-3301 E-mail: phillip.sample@cbre.com About Holy Hill Holly Hill Community Church, aka Holy Hill Community Church, a protestant church in Los Angeles, filed for Chapter 11 protection (Bankr. C.D. Cal. Case No. 14-21070) on June 5, 2014. Holly Hill, a California non-profit corporation incorporated for the purposes of conducting religious activities as a protestant Christian church, disclosed $20 million in assets and $12 million in debt. John Jenchun Suh, the pastor and CEO of the church, signed the bankruptcy petition. W. Dan Lee of the Lee Law Offices, in Los Angeles, is representing the Debtor as counsel. Judge Julia W. Brand presides over the case. Richard J. Laski has been appointed to serve as Chapter 11 trustee in the Debtor's case. The Trustee has tapped Arent Fox LLP to serve as his bankruptcy counsel, and Wilshire Partners of CA, LLC, as accountant. HOUSTON REGIONAL: Comcast's Appeal Expected If Court OKs Plan ------------------------------------------------------------- David Barron, writing for Chron.com, reports that Comcast has said it will make an appeal to the 5th U.S. Circuit Court of Appeals if the Hon. Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas approves of Houston Regional Sports Network's plan of reorganization, which will bring CSN Houston to an end and result in layoffs for at least 96 of 141 workers. Accroding to Chron.com, Judge Isgur said earlier this month that he would delay the effective takeover of the network by DirecTV and AT&T to provide Comcast time to appeal. Chron.com relates that if the Plan is approved, Root Sports Houston could be launched on Oct. 29, 2014, the first day a Rockets regular-season game will be available for local broadcast. About Houston Regional Sports Network An involuntary Chapter 11 bankruptcy petition was filed against Houston Regional Sports Network, L.P. d/b/a Comcast SportsNet Houston (Bankr. S.D. Tex. Case No. 13-35998) on Sept. 27, 2013. The involuntary filing was launched by three units of Comcast/NBC Universal and a television-related company. The petitioners are: Houston SportsNet Finance LLC, Comcast Sports Management Services LLC, National Digital Television Center LLC, and Comcast SportsNet California, LLC. The petitioning creditors have filed papers asking the Bankruptcy Judge to appoint an independent Chapter 11 trustee "to conduct a fair and open auction process for the Network's business assets on a going concern basis." Houston Regional Sports Network is a joint enterprise among affiliates of the Houston Astros baseball team, the Houston Rockets basketball team, and Houston SportsNet Holdings, LLC -- "Comcast Owner" -- an affiliate of Comcast Corporation. The Network has three limited partners -- Comcast Owner, Rockets Partner, L.P., and Astros HRSN LP Holdings LLC. The primary purpose of Houston Regional Sports Network is to create and operate a regional sports programming service that produces, exhibits, and distributes sports programming on a full-time basis, including live Astros and Rockets games within the league- permitted local territories. Counsel for the petitioning creditors are Howard M. Shapiro, Esq., at Wilmer Cutler Pickering Hale and Dorr LLP; George W. Shuster, Jr., Esq., at Wilmer Cutler Pickering Hale and Dorr LLP; Vincent P. Slusher, Esq., at DLA Piper; and Arthur J. Burke, Esq., at Davis Polk & Wardwell LLP. Judge Marvin Isgur presides over the case. The Network was officially placed into Chapter 11 bankruptcy pursuant to a Feb. 7 Order for Relief. It has won approval to hire Haynes and Boone, Charles A. Beckham, Jr., Esq., Henry Flores, Esq., Abigail Ottmers, Esq., and Christopher L. Castillo, Esq., as counsel. It also hired Conway MacKenzie, Inc., as financial advisor. Harry Perrin, Esq., represents Astros owner Jim Crane. Alan Gover, Esq., represents the Rockets. The Astros are represented by Richard B. Drubel, Esq., Colleen A. Harrison, Esq., and Jonathan R. Voegele, Esq., at Boies, Schiller & Flexner LLP, in Hanover, NH; and Scott E. Gant, Esq., at Boies, Schiller & Flexner in Washington, DC. Comcast Corporation and NBCUniversal Media, LLC, are represented by Vincent P. Slusher, Esq., Eli Burriss, Esq., Andrew Mayo, Esq., and Andrew Zollinger, Esq., at DLA Piper; Arthur J. Burke, Esq., Timothy Graulich, Esq., and Dana M. Seshens, Esq., at Davis Polk & Wardwell LLP; and Howard M. Shapiro, Esq., and Craig Goldblatt, Esq., at Wilmer Cutler Pickering Hale and Dorr LLP. Attorney for McLane Champions, LLC and R. Drayton McLane, Jr., are Wayne Fisher, Esq., at Fisher Boyd & Huguenard, LLP. HRK HOLDINGS: Can Access Additional Loan From Regions Bank ---------------------------------------------------------- HRK Holdings, LLC and HRK Industries, LLC received court approval to get additional loan from Regions Bank N.A. Judge K. Rodney May of the U.S. Bankruptcy Court for the Middle District of Florida signed off on an order allowing the companies to borrow $228,254 from the bank under an operating line of credit. The bankruptcy judge also extended to Nov. 30 the maturity date under two loan facilities provided by Regions Bank. A copy of the court order is available for free at http://is.gd/3m2xgP About HRK Holdings HRK Holdings and HRK Industries LLC filed for Chapter 11 protection (Bankr. M.D. Fla. Case Nos. 12-09868 and 12-09869) on June 27, 2012. Judge K. Rodney May oversees the case. Barbara A. Hart, Esq., and Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Prosser, P.A., represents the Debtors. HRK Holdings disclosed $33,366,529 in assets and $26,092,559 in liabilities in its revised schedules. According to the Debtors, the bankruptcy filing was necessitated by the immediate need to sell a portion of the remaining property to create liquidity for (a) funding the urgent management of the site-related environmental concerns; the benefit of creditors; funding a litigation filed by the Debtors; and funding of expenses related to additional sales of the remaining property. HRK Holdings is selling real property assets to Allied Universal Corp. and Mayo Fertilizer, Inc. The Court allowed HRK and the purchasers to enter into any modifications to the agreements without need of further Court approval, provided that no amendments will occur without prior consent of Regions Bank. INTELLICELL BIOSCIENCES: Taps Dinosaur as Placement Agent --------------------------------------------------------- Intellicell Biosciences, Inc., executed a letter agreement having an effective date of Oct. 10, 2014, with Dinosaur Securities, LLC, pursuant to which Dinosaur and its subsidiaries, affiliates, successors and assigns, will act as the Company's advisor and placement agent of investment capital through a private placement transaction, according to a regulatory filing with the U.S. Securities and Exchange Commission. The Agreement provides that Dinosaur will be entitled to receive a cash fee equal to 10% of the amount of capital raised from Dinosaur Contacts. In addition, at closing, the Company will sell to Dinosaur, and Dinosaur will purchase from the Company, for $0.001 per each share covered by the warrants, warrants, to purchase 10% of the number of shares of common stock obtained and obtainable by Dinosaur Contacts. The Warrants will be exercisable on a "cashless exercise" basis over a five year term. In the event Dinosaur Contacts exercise warrants included in the financing contemplated by the Agreement, Dinosaur will be entitled to receive a cash fee of 5% on the amount of capital raised by the Company on each such occasion from the Dinosaur Contacts. The Agreement further provides that the Company will sell to Dinosaur, and Dinosaur will purchase from the Company, for $0.0001 each, a number of warrants equal to 5% of the fully diluted shares issued and outstanding for a total consideration of $1,000. Each such warrant will have a term of five years and will be exercisable for one share at an exercise price of $0.001. Dinosaur will have the right of first refusal in the event the Company, within the period of 18 months following the closing of the private placement, intends effectuate any public offering of the Company's securities. The Agreement provides that the Company will indemnify and hold harmless Dinosaur and any Indemnified Party against certain liabilities incurred. The Agreement may be terminated by the Company at any time upon 30 days prior written notice. About Intellicell Biosciences Intellicell BioSciences, Inc., headquartered in New York, N.Y., was formed on Aug. 13, 2010, under the name "Regen Biosciences, Inc." as a pioneering regenerative medicine company to develop and commercialize regenerative medical technologies in large markets with unmet clinical needs. On Feb. 17, 2011, the company changed its name from "Regen Biosciences, Inc." to "IntelliCell BioSciences Inc". To date, IntelliCell has developed proprietary technologies that allow for the efficient and reproducible separation of stromal vascular fraction (branded "IntelliCell(TM)") containing adipose stem cells that can be performed in tissue processing centers and in doctors' offices. Intellicell Biosciences reported a net loss of $11.14 million on $0 of total net revenues for the year ended Dec. 31, 2013, as compared with a net loss of $4.15 million on $534,942 of total net revenues during the prior year. The Company's balance sheet at June 30, 2014, showed $3.34 million in total assets, $15.64 million in total liabilities and a stockholders' deficit of $12.3 million. Going Concern "The condensed consolidated financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses since inception resulting in an accumulated deficit of $61,421,672 and a working capital deficit of $23,780,066 as of March 31, 2014, respectively. Further losses are anticipated in the continued development of its business, raising substantial doubt about the Company's ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and a private placement of common stock or other debt or equity securities. There can be no assurance that we will be able to obtain further financing, do so on reasonable terms, or do so on terms that would not substantially dilute our current stockholders' equity interests in us. If we are unable to raise additional funds on a timely basis, or at all, we probably will not be able to continue as a going concern," the Company said in the quarterly report for the period ended March 31, 2014. IHS INC: Moody's Assigns Ba1 Corp. Family Rating; Outlook Stable ---------------------------------------------------------------- Moody's Investors Service assigned a first-time Ba1 Corporate Family Rating (CFR) and a Ba1-PD Probability of Default Rating to IHS Inc (IHS) in connection with the company's proposed $500 million senior notes offering. The senior notes due in 2022 are also rated Ba1. Moody's also assigned a speculative grade liquidity rating of SGL-1 to IHS. The ratings outlook is stable. The net proceeds from the new notes will be used to refinance existing debt. Ratings Rationale The Ba1 rating reflects IHS' strong revenue growth prospects, including Moody's expectations of about 6% to 8% organic growth that will be augmented by acquired revenues, high EBITDA margins of approximately 25% (incorporating Moody's standard analytical adjustments, mainly stock-based compensation expense) and good EBITDA to free cash flow conversion. Moody's expects IHS to generate approximately $500 million in free cash flow in 2015 (nearly 20% of total adjusted debt). IHS' credit profile is further supported by its high proportion of recurring revenues (77% of revenues) with high renewal rates, especially with the larger customers that comprise the bulk of the company's revenues and profitability. The company's subscription products are embedded in its customers' core operations and capital planning workflows, leading to high client renewal rates. However, Moody's expects the company to remain acquisitive and despite its strong growth, leverage will likely remain in the 3.5x to 4.0x range over the next 12 to 18 months as free cash flow will be deployed primarily toward acquisitions. Pro forma for the refinancing, IHS' leverage will be 4.2x (total debt to LTM 3Q 2014 EBITDA, incorporating Moody's adjustments, notably, stock-based compensation which adds about 1.1x to leverage). The stable ratings outlook reflects Moody's expectations that organic revenue growth should exceed 6% and total debt to EBITDA should gradually decline to less than 4.0x over the next 12 months. IHS' SGL-1 speculative grade liquidity rating is supported by the company's solid free cash flow, good cash balances and approximately $700 million availability under the new $1.3 billion revolving credit facility at the close of the refinancing. Given the expectations of high leverage over the intermediate term, a ratings upgrade is not expected. However, Moody's could raise IHS' ratings if earnings increase and the company demonstrates a commitment to more conservative financial policies. IHS' ratings could be upgraded if Moody's expects IHS' total debt to EBITDA (Moody's adjusted) will be sustained below 3.0x and if the company maintains good revenue growth rates and EBITDA margins. Conversely, the ratings could be downgraded if financial policies become more aggressive, organic revenue growth rates decline to the low single digit rates for an extended period of time or EBITDA margins decline such that Moody's believes that total debt to EBITDA and free cash flow-to-debt are unlikely to be sustained below 4x (Moody's adjusted) and in excess of 10%, respectively. The following ratings (assessments) were assigned: Corporate Family Rating, Ba1 Probability of Default Rating, Ba1-PD Senior Unsecured Notes due 2022, Ba1(LGD 4) Speculative Liquidity Grade, SGL-1 The principal methodology used in this rating was Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. IHS is a global provider of research, analytics and information to customers primarily in the energy, chemicals, electronics and transportation industries. IHS generated $2.2 billion in revenues in the twelve months ended August 2014. IHS INC: S&P Assigns 'BB+' CCR on Proposed Refinancing ------------------------------------------------------ Standard & Poor's Ratings Services said on Oct. 21, 2014, it assigned its 'BB+' corporate credit rating to Englewood, Colo.- based IHS Inc. The outlook is stable. At the same time, S&P assigned its 'BB+' issue-level rating to IHS' $1.3 billion senior unsecured revolving credit facility due 2019, $700 million senior unsecured term loan due 2019, and proposed $500 million senior unsecured notes due 2022. The '3' recovery rating on these instruments indicates S&P's anticipation for meaningful recovery (50% to 70%) in the event of payment default. The recovery rating for these instruments is capped at '3'; recovery ratings on unsecured debt issued by companies rated 'BB-' or higher are capped at '3' to account for the risk of incremental debt issuance prior to default. The proceeds from the new notes will be used to repay IHS' term loan due 2015 and a portion of the balance on its revolving credit facility. IHS Global Inc. is the borrower of the $700 million term loan. "The ratings reflect our view of IHS' acquisitive growth strategy, which we believe could result in re-leveraging to the 4x area, and its good market positions, high recurring revenue, and good track record of operating performance," said Standard & Poor's credit analyst Christian Frank. IHS' business risk profile incorporates S&P's view of its leading position in the markets for energy and automotive data and analytics, high recurring revenue (above 75% of total), unique data sources particularly in the automotive area, and good track record of operating performance with mid-single-digit average annual organic revenue growth during the past several years a increasing profit margins. Partly offsetting the above strengths, in S&P's view, are IHS' integration risks associated with acquisitions that have grown in size over time (although to date, these risks have not had materially negative effects on operating performance) and the use of publicly available data sources particularly in its energy products (although value-added analytics transform such data into unique offerings). IHS' financial risk profile reflects S&P's view of its leverage of 2.8x as of Aug. 31, 2014, down from a peak in the high 3x area one year ago, pro forma for its acquisition of R.L. Polk, on a combination of pro forma EBITDA growth and debt repayment. The company generated $586 million in free operating cash flow (FOCF) for the 12 months ended Aug. 31, 2014, partly benefiting from high working capital cash sources. The rating reflects S&P's view that the company's acquisitive growth strategy could result in transactions that would re-leverage the company to the 3x-4x range. IHS provides data and analytics products for the energy, automotive, and other adjacent industries on a global scale. The company has targeted capital-intensive industries that use its products to inform decisions on investment spending. The industry is fragmented but differentiated with market participants offering niche products, and pricing has thus been stable. IHS competes against a large number of players in its various segments but no single competitor across its entire business. As a result of this fragmentation, S&P sees significant opportunity for IHS to continue its acquisitive growth strategy. The stable outlook reflects S&P's view that IHS' good market position and recurring revenue base are likely to result in consistent operating performance over the next 12 months. S&P could lower the rating if the company pursues debt-financed acquisitions or implements more aggressive shareholder return programs resulting in sustained leverage of more than 4x. S&P could raise the rating if IHS restores debt capacity such that S&P believes it can achieve its growth and shareholder return objectives while generally maintaining leverage in the high 2x area or lower. IHS INC: S&P Ratings Unaffected by Upsized Notes ------------------------------------------------ In an Oct. 21, 2014 release, Standard & Poor's Ratings Services said that its corporate credit rating on IHS Inc. (BB+/Stable/--) remains unchanged following the upsizing of the company's proposed senior unsecured notes to $750 million from $500 million. The company will use the incremental proceeds to pay down borrowings on its revolving credit facility. Also unchanged are the 'BB+' issue-level and '3' recovery ratings on the company's revolving credit facility, term loan, and proposed notes, all of which are unsecured. The '3' recovery rating indicates S&P's expectation for meaningful recovery (50% to 70%) in the event of payment default. S&P's recovery expectations fall in the upper half of the 50% to 70% range. KENNY G: Owner Defeated in Emein Suit Appeal -------------------------------------------- In a court trial, Shadi Emein, individually and in her capacity as trustee of the EM Trust, and her husband Kami Emein obtained a judgment of $1,796,625.50 against Kenneth Gharib for breach of a settlement agreement and mutual release arising from prior litigation between the Emeins and Gharib and a corporation Gharib controlled, Kenny G. Enterprises, LLC. The settlement agreement called for installment and other payments to the Emeins totaling $1.5 million. At trial, the parties introduced different documents that they purported to be the settlement agreement. Under the document the Emeins introduced, both Gharib and KGE were liable for the $1.5 million. The Emeins' document bore the parties' original signatures. Under the document Gharib introduced, only KGE, and not Gharib, was liable for the $1.5 million. Gharib's document bore copied signatures. The trial court found that Exhibit 1 was the operative settlement agreement. After the trial court rendered its verdict but before it entered judgment, Gharib moved to reopen his case-in-chief, claiming that he had found his signed original copy of the settlement agreement under which only KGE, and not Gharib, was liable. The trial court denied the motion. On appeal, Gharib contends that the trial court abused its discretion in denying his motion to reopen his case-in-chief. Alternatively, he contends that the trial court erred in accelerating the payments due under the settlement agreement. In an October 20 decision available at http://is.gd/zMp9uhfrom Leagle.com, the Court of Appeals of California, Second District, Division Five, affirmed the trial court's denial of Gharib's motion to reopen his case-in-chief, reversed the trial court's damages award, and remanded the matter to the trial court for a recalculation of damages, including interest. The case is, SHADI EMEIN et al., Plaintiffs and Respondents, v. KENNETH GHARIB, Defendant and Appellant, No. B248352 (Cal. App.). Kenny G Enterprises, LLC, based in Irvine, Calif., filed for Chapter 11 bankruptcy (Bankr. C.D. Cal. Case No. 11-24750) in Santa Ana on Oct. 24, 2011. Perry Roshan-Zamir, Esq., at the Law Offices Of Perry Roshan-Zamir, served as counsel. In its petition, the Debtor did not declare estimated assets but said debts are between $1 million to $10 million. The petition was signed by Kenneth Gharib, managing member. At that time of the bankruptcy filing, the bankruptcy estate's property included the residence located at 10 Horseshoe Court, Hillsborough, California. On Nov. 14, 2012, the Debtor filed a reorganization plan. The Bankruptcy Court confirmed the plan on Jan. 3, 2013. Paragraph VII(a) of the plan, consistent with bankruptcy law, revested the Hillsborough property in the Debtor. KID BRANDS: Gets Approval to Resolve Dispute With Disney Consumer ----------------------------------------------------------------- Kid Brands, Inc. received court approval for a deal that would resolve its dispute with Disney Consumer Products Inc. over the sale of its assets that include Disney-branded inventory and tooling. The settlement allows Kid Brands, the East Rutherford-based maker of baby bedding, furniture and toys, to sell the assets in exchange for a release of any claim it may have against Disney. Meanwhile, Disney agreed to waive any claim tied to the licenses it previously provided to the company. 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. KO-KAUA OHANA: Propsoes GlassRatner as Interest Rate Expert ----------------------------------------------------------- Ohana Group LLC is seeking approval to employ GlassRatner Advisory & Capital Group, LLC as its interest rate expert. Bankruptcy Judge Marc Barreca has scheduled a hearing on Oct. 31, 2014, 9:30 a.m. Objections, if any, are due Oct. 24. GlassRatner will assist the Debtor in demonstrating to the Court that the proposed interest rate in its First Amended Plan is reasonable and appropriate under the applicable standards. The Debtor and its former bankruptcy counsel, Bush Strout & Kornfeld LLP, engaged J. Michael Issa of GlassRatner as its interest rate expert to prepare a written expert report and testify, as necessary, at the evidentiary hearing on the Debtor's First Amended Plan of Reorganization, which was set for Dec. 9 and 10, 2013. The Debtor intended to seek approval of GlassRatner's engagement but the application was not filed. To the best of the Debtor's knowledge, GlassRatner is a "disinterested person" as that term is defined in Section 101(14), of the Bankruptcy Code. The Trustee previously objected to the Debtor's ex parte motion for approval, nun pro tunc, of GlassRatner's employment, arguing that the motion must be on a notice basis, and a further showing of "exceptional circumstances" be made. The Debtor submitted that "exceptional circumstances" are met, and that the services rendered by GlasRather did have a direct benefit to the estate in a significant manner. In this relation, the Debtor requested that the Court authorize the engagement of GlassRatner. About Ohana Group LLC Ohana Group LLC, in Seattle, Washington, filed for Chapter 11 bankruptcy (Bankr. W.D. Wash. Case No. 12-21904) on Nov. 30, 2012. Judge Marc Barreca oversees the case. James L. Day, Esq., at Bush Strout & Kornfeld LLP, serves as bankruptcy counsel. In its petition, the Debtor scheduled $16,000,000 in assets and $11,696,131 in liabilities. LEHMAN BROTHERS: Owes $38.6MM, Tobacco Settlement Fund Says ----------------------------------------------------------- Joseph Checkler, writing for Daily Bankruptcy Review, reported that the state of Washington's tobacco settlement authority says Lehman Brothers Holdings Inc. owes it nearly $40 million for a terminated swap agreement tied to money Lehman invested for it. According to the report, in a filing with U.S. Bankruptcy Court in Manhattan, lawyers for the tobacco authority say Lehman's expert witness's contention that Lehman is actually the one owed money is "absurd." 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 Sept. 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) LIBERATOR INC: Issues Letter to Shareholders -------------------------------------------- Liberator Inc. filed with the U.S. Securities and Exchange Commission a copy of a letter to shareholders dated Oct. 20, 2014, to give an update on its significant progress across a number of fronts and its vision for the future of the business. Louis Friedman, CEO, said the Company is moving forward with additional products and business lines. He added, "Looking back to the changes in our industry and in our business has led us to the evolution of our vision statement. It now reads: We are not just a company; we are a global brand category that not only enhances a life of intimacy, but helps create it." A copy of the Letter is available for free at: http://is.gd/M9ZTRm 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 disclosed a net loss of $376,056 on $14.71 million of net sales for the year ended June 30, 2014, compared to a net loss of $288,485 on $13.84 million of net sales for the year ended June 30, 2013. The Company's balance sheet at June 30, 2014, showed $3.31 million in total assets, $5.20 million in total liabilities and a $1.89 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, 2014. The independent auditors noted that the Company has a net loss of $376,056, a working capital deficiency of $1,685,712, an accumulated deficit of $8,423,741 and a negative cash flow from continuing operations of $199,396. These factors raise substantial doubt about the Company's ability to continue as a going concern. LIQUIDMETAL TECHNOLOGIES: Stockholders Elected 6 Directors ---------------------------------------------------------- Liquidmetal Technologies, Inc., held its annual meeting of stockholders on Oct. 16, 2014, at which the stockholders: (i) elected Thomas Steipp, Scott Gillis, Abdi Mahamedi, Ricardo Salas, Bob Howard-Anderson and Richard Sevcik to the Company's board of directors; (ii) voted against the amendment to the Company's 2012 Equity Incentive Plan to (a) increase the aggregate number of shares of common stock authorized for issuance under the plan by 30,000,000 shares, and (b) increase the aggregate number of shares of common stock that may be issued or transferred upon the exercise of incentive stock options by 30,000,000 shares; (iii) granted advisory approval of the compensation of the Company's named executive officers; and (iv) ratified the appointment of SingerLewak LLP as the Company's independent registered public accounting firm for fiscal year 2014. About Liquidmetal Technologies Based in Rancho Santa Margarita, Cal., Liquidmetal Technologies, Inc., and its subsidiaries are in the business of developing, manufacturing, and marketing products made from amorphous alloys. Liquidmetal Technologies markets and sells Liquidmetal(R) alloy industrial coatings and also manufactures, markets and sells products and components from bulk Liquidmetal alloys that can be incorporated into the finished goods of its customers across a variety of industries. The Company also partners with third- party licensees and distributors to develop and commercialize Liquidmetal alloy products. Liquidmetal reported a net loss and comprehensive loss of $14.24 million on $1.02 million of total revenue for the year ended Dec. 31, 2013, as compared with a net loss and comprehensive loss of $14.02 million on $650,000 of total revenue for the year ended Dec. 31, 2012. The Company's balance sheet at June 30, 2014, showed $16.01 million in total assets, $8.45 million in total liabilities, and stockholders' equity of $7.56 million. SingerLewak LLP, in Los Angeles, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit. This raises substantial doubt about the Company's ability to continue as a going concern. MAIN STREET HOLDINGS: Case Summary & 20 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Main Street Holdings, LLC PO Box 709 Waukesha, WI 53187-0709 Case No.: 14-33043 Chapter 11 Petition Date: October 21, 2014 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Debtor's Counsel: William H. Green, Esq. GREEN & KAPSOS LAW OFFICES, LLC 3216 South 92nd Street, Ste. 201 Milwaukee, WI 53227 Tel: 414-543-5369 Fax: 414-543-1164 Email: greenkapsos@gmail.com Total Assets: $4.22 million Total Liabilities: $3.99 million The petition was signed by J. A. Fuller, manager. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/wieb14-33043.pdf MASON COPPELL: Has Nov. 24 Plan Confirmation Hearing ---------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the U.S. Bankruptcy Court in Texas has approved the disclosure statement explaining the liquidating Chapter 11 plan filed by the Official Committee of Unsecured Creditors for Mason Coppell OP LLC and scheduled a Nov. 24 hearing to consider confirmation of the plan. As previously reported by The Troubled Company Reporter, under the Plan, the Creditors Committee proposes to administer the bankruptcy assets through a Liquidating Trust and appoint a Liquidating Trustee to, among other things, (i) allocate the sale proceeds; (ii) pay all secured claims, administrative expenses and priority claims; (iii) liquidate all remaining assets, converting the assets to cash; and (iv) distribute the cash to unsecured creditors pursuant to the terms of the Plan. Secured claims of Oxford Finance LLC will only be paid out of the assets of the Debtors obligated to Oxford Finance LLC. Mason Mesquite's estate will pay 20% of the Chapter 11 Administrative Claims incurred during the administration of the Bankruptcy Cases and 100% of any tax, secured or other priority claims asserted against its estate. The remaining cash will be allocated to a Liquidation Reserve established for the Oxford Debtors (the "Oxford Debtor Reserve" as defined in the Plan) and used to pay the Oxford Secured Claim, the remaining 80% of the Chapter 11 Administrative Claims, and all other tax, secured or priority claims asserted against the Oxford Debtors. To ensure a fair balancing of the Oxford Debtors' assets, the Plan uses a formula to divide the remaining cash among the Oxford Debtors. Creditors will also have the opportunity to participate in future litigation of estate causes of action. The Plan gives the unsecured creditors an option to "opt in" or "opt out" of future litigation. The Creditors Committee believes this opt-in/opt-out approach gives creditors the flexibility to decide how best to use the available funds -- distribute them faster, or hold some back in an effort to maximum recoveries through litigation. Based on these proposed allocations and divisions, the Creditors Committee anticipates that general unsecured creditors of each estate will receive distributions of 14% to 17% for creditors of the Oxford Debtors, or approximately 25% for creditors of Mason Mesquite. About Mason Coppell Mason Coppell OP, LLC, Mason Georgetown OP, LLC, Mason Mesquite OP, LLC, and Mason Round Rock OP, LLC operate five skilled nursing homes in Texas. Mason Georgetown RealCo, LLC, owns the real estate and building for the operations of Mason Georgetown. They initiated the Chapter 11 cases to effectuate a prompt transfer of their assets and operations to preserve patient safety and any potential value for creditors. Mason Coppell OP, LLC, et al., filed Chapter 11 bankruptcy petitions (Bankr. N.D. Tex. Case Nos. 14-31327 to 14-14-31334) on March 18, 2014. Judge Stacey Jernigan presides over the cases. The Debtors estimated assets of at least $10 million and debts of at least $10 million. The Debtors, except Mason Georgetown Realco, are represented by Joe E. Marshall, Esq., Thomas D. Berghman, Esq., and Timothy A. Million, Esq., at Munsch Hardt Kopf & Harr, P.C. Georgetown Realco is represented by Jonathan S. Covin, Esq., and Shayla L. Friesen, Esq., at Wick Phillips Gould & Martin, LLP. Deloitte Transactions and Business Analytics, LLP, acts as the Debtors' restructuring advisor with Louis Robichaux serving as chief restructuring officer. On March 28, 2014, the U.S. Trustee appointed an Unsecured Creditors' Committee in the cases. To date there has been no request made for the appointment of a trustee or examiner. Counsel for the Committee is Cox Smith Mathews Incorporated's Mark Andrews, Esq. Counsel for Oxford Finance, LLC, which is owed almost $16 million on a term loan and revolving credit, is Vedder Price P.C.'s Jon Aberman, Esq. Mason Coppell OP, LLC, et al., obtained Court authority to sell substantially all of their assets for a total of $16.1 million, consisting of $4.0 million for so-called facility assets and $12.1 million for the 142-bed nursing home facility commonly known as Estrella Oaks Rehabilitation Care Center, in Georgetown, Texas. At the closing of the sale, proceeds of the sale of the real property in the amount of $12.1 million, less adjustments, required U.S. Trustee fees, and required administrative expenses, will be paid to Oxford. Debtor Mason Friendswood OP, LLC, has separately sought authority to sell the Friendship Haven Health and Rehabilitation Center to ensure uninterrupted and continued care at the Facility. The Official Committee of Unsecured Creditors filed a Plan of Liquidation and accompanying Disclosure Statement on August 29, 2014. MEDICAL PROPERTIES: Moody's Affirms 'Ba1' Corp. Family Rating ------------------------------------------------------------- Moody's Investors Service has affirmed the Ba1 senior unsecured debt rating and Ba1 corporate family rating of Medical Properties Trust, Inc. The rating outlook is stable. These rating affirmations follow the REIT's announcement that it has agreed to acquire and lease back substantially all of the real estate assets of MEDIAN Kliniken Group, the largest private provider of post- acute and acute rehabilitation services in Germany. The purchase price for the real estate is about 705 million euros, or $900 million based on current exchange rates. MPT also announced $155 million of additonal previously undisclosed investments and commitments, consisting of a mix of US acute care hosptials and German rehab facilities that will be leased to RHM - a current tenant of MPT's assets in Germany. The following ratings were affirmed with a stable outlook: MPT Operating Partnership, L.P. -- senior unsecured debt at Ba1; senior unsecured debt shelf at (P)Ba1 MPT Finance Corporation -- senior unsecured debt shelf at (P)Ba1 Medical Properties Trust, Inc. -- corporate family rating at Ba1 Ratings Rationale Moody's notes that the MEDIAN acquisition offers MPT enhanced size (gross assets increasing about 26%), with a broader and deeper platform of healthcare real estate investments. This is the REIT's second investment in Germany, as it acquired a smaller portfolio of rehabilitation facilities leased to RHM in 2013. Moody's view the REIT's international strategy positively as it is enhancing its geographic diversification in a market with stable payment dynamics and positive demographic trends similar to those that prevail in the U.S. MPT is also expanding its future growth opportunities, as it is establishing relationships with leading operators in the German healthcare market, which is highly fragmented and ripe for consolidation. Moody's believes the largest credit risks associated with this acquisition include execution risk associated with the REIT's continued rapid growth trajectory, particularly as it is now entering new markets and moving to a global platform. Furthermore, it is also gaining a new top tenant exposure with Median, who will comprise 20% of the pro forma portfolio. Persistent tenant concentration remains a key credit challenge for MPT. The REIT does have strong EBITDAR coverage ratios throughout most of its portfolio, which provides cushion, but risks remain. Moody's expects that this transaction will be financed with a mix of long-term capital that allows the REIT to adhere to its stated financial policies (approximately 40%-45% debt/gross assets). The REIT has a history of maintaining relatively strong credit metrics for its rating category and Moody's does not expect this to change. MPT's stable outlook reflects Moody's expectation that the REIT will successfully integrate recent acquisitions and continue to grow and diversify its portfolio, while maintain relatively conservative credit metrics for its rating category and sound liquidity. Upward ratings movement would likely reflect increased size (gross assets above $5 billion), while reducing tenant concentration (top two operators below 30% of revenues). Maintenance of Net Debt/EBITDA below 5.5x on average and fixed charge coverage closer to 3.5x, as well as stable tenant operating performance (as reflected by EBITDAR coverage ratios) would also be needed. Downward ratings movement would be likely should MPT's fixed charge coverage fall below 2.5x on a sustained basis or leverage rise above 50% of gross assets. In addition, should one of MPT's larger operators experience a reduced capacity to meet rental obligations, the REIT's ratings could be downgraded. The principal methodology used in this rating was Global Rating Methodology for REITs and Other Commercial Property Firms published in July 2010. The last rating action with respect to Medical Properties Trust was on March 1, 2012 when Moody's upgraded the ratings with a stable outlook. Medical Properties Trust (NYSE: MPW) is a real estate investment trust that acquires, develops, leases and makes investments in healthcare facilities, including acute care hospitals, inpatient rehabilitation hospitals, and long-term acute care hospitals. MICHAEL GLYN BROWN: Court Limits Ex-Wife's Claim to $18,000 ----------------------------------------------------------- Bankruptcy Judge Jeff Bohm in Houston, Florida, junked a $571,080 claim filed by Rachel Brown, the widow of debtor Michael Glyn Brown, against the Debtor's bankruptcy estate. Judge Bohm said he can only recommend awarding her the "paltry" sum of $18,000 from the Debtor's probate estate -- the maximum allowable amount under Florida law. "The Court is not enamored with this result, as the Applicant has undergone several years of hostile divorce proceedings with the Debtor while raising three minor children. . . . But, this Court will not disregard the applicable Florida statute," the judge explained. "The Florida Legislature has passed a statute that unambiguously places a ceiling of $18,000 on the family allowance, and provides for no allowance in lieu of homestead or exempt personal property; and this Court cannot "use its remedial powers to circumvent the intent of the legislature." . . . The only consolation that this Court can take in issuing this harsh ruling is that the Applicant has recently remarried, and hopefully her new husband can assist her, both emotionally and financially, in raising her children and leading a more peaceful life herself." Michael Glyn Brown, who was trained as a physician, owned a successful group of hand surgery centers utilizing his patented hand surgery technique. These centers generated annual revenues in the millions of dollars for many years. In August 2010, the Debtor and Rachel Brown separated. Rachel Brown thereafter filed for divorce in Texas state court. On Jan. 23, 2013, the Debtor filed a Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Florida. On September 24, 2013, venue of the Chapter 11 case was transferred to the Southern District of Texas. On November 10, 2013, the Debtor died in Florida. The divorce proceedings were extremely acrimonious and protracted. The Debtor and Rachel Brown had still not obtained a decree of divorce by the time that the Debtor died in November 2013. The bankruptcy cases are In Re MICHAEL GLYN BROWN, In Re LIONHEART COMPANY, INC., In Re CASTLEMANE, INC., In Re PRORENTALS, INC., In Re SUPERIOR VEHICLE LEASING CO., INC., and In Re MG BROWN COMPANY, LLC, Case Nos. 13-35892-H4-7, 13-36390-H4-7, 13-36407-H4-7, 13- 36408-H4-7, 13-36410-H4-7, 13-36411-H4-7, Jointly Administered under Case No. 13-35892-H4 (Bankr. S.D. Tex.). A copy of Judge Bohm's October 17, 2014 Memorandum Opinion is available at http://is.gd/rbZih4from Leagle.com. MVB HOLDING: Names Michael Cavanaugh as Gaming Commission Counsel ----------------------------------------------------------------- MVB Holding, LLC seeks authorization from the U.S. Bankruptcy Court for the Southern District of Mississippi to employ Michael Cavanaugh as special counsel. Mr. Cavanaugh will represent the Debtor with respect to Gaming matters and matters pending before or related to the Mississippi Gaming Commission for and on behalf of the debtor-in-possession. The Debtor will pay Mr. Cavanaugh $350 per hour. The Debtor assured the Court Mr. Cavanaugh 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. MVB Holding, LLC, in Biloxi, Mississippi, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Miss. Case No. 14-51430) on Sept. 16, 2014. MVB owns the Margaritaville casino in Biloxi. Judge Katharine M. Samson presides over the case. Robert Alan Byrd, Esq., at Byrd & Wiser, serves as the Debtor's counsel. In its petition, MVB estimated $10 million to $50 million in assets and liabilities. The petition was signed by Doug Shipley as president/CEO. NATROL INC: Has Until February 2015 to File Plan ------------------------------------------------ Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware extended the period by which Natrol, Inc., et al., have exclusive right to file a plan until Feb. 6, 2015, and the period by which the Debtors have exclusive right to solicit acceptances of that plan until April 7, 2015. About Natrol, Inc. Headquartered in Chatsworth, Calif., Natrol, Inc. -- http://www.natrol.com-- is a wholly owned subsidiary of Plethico Pharmaceuticals Limited. Plethico Pharmaceuticals Limited (BSE: 532739. BO: PLETHICO) engages in the manufacturing, marketing and distribution of pharmaceutical and allied healthcare products around the world. Natrol products are made in the U.S. Established in 1980, Natrol, Inc. has been a global leader in the nutrition industry, and a trusted manufacturer and marketer of a superior quality of herbs and botanicals, multivitamins, specialty and sports nutrition supplements made to support health and wellness throughout all ages and stages of life. Natrol products are available in health food stores, drug and grocery stores, and mass-market retailers, and through Natrol.com and other online retailers. Natrol distributes products nationally through more than 54,000 retailers as well as internationally in over 40 other countries through distribution partners. Natrol, Inc., and its six affiliates sought bankruptcy protection on June 11, 2014 (Case No. 14-11446, Bankr. D. Del.). The case is assigned to Judge Brendan Linehan Shannon. The Debtors are represented by Robert A. Klyman, Esq., and Samuel A. Newman, Esq., at Gibson, Dunn & Crutcher LLP, in Los Angeles, California; and Michael R. Nestor, Esq., Maris J. Kandestin, Esq., and Ian J. Bambrick, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors' Claims and Noticing Agent is Epiq Systems Inc. The Debtors requested that the Court approve the employment of (i) Jeffrey C. Perea of the firm Conway MacKenzie Management Services, LLC as chief financial officer and for CMS to provide temporary employees to assist Mr. Perea in carrying out his duties; (ii) Stephen P. Milner of the firm Squar, Milner, Peterson, Miranda & Williamson LLP as chief restructuring officer and for CMS to provide temporary employees to assist Mr. Milner in carrying out his duties; (iv) BDO USA, LLP as auditor; (v) TaxGroup Partners as tax services provider. The U.S. Trustee for Region 3 on June 19 appointed five creditors of Natrol, Inc. to serve on the official committee of unsecured creditors. The Committee tapped to retain Otterbourg P.C. as lead counsel; (ii) Pepper Hamilton LLP as Delaware counsel; and (iii) CMAG as financial advisors. NAUTILUS HOLDINGS: Files Chapter 11 Plan ---------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that Nautilus Holdings Ltd., the owner of 16 container ships, filed a proposed reorganization plan and explanatory disclosure statement that would implement changes in $144.4 million of financing for the vessels M/V Texas and M/V Washington provided by lender DVB Bank SE. According to the report, the bankruptcy court will hold a hearing on Nov. 14 to consider approval of the disclosure statement, required before creditors can vote. The agreement with DVB requires approval of the disclosure statement by Dec. 1 and court approval of the plan with a confirmation order signed by the bankruptcy judge by Jan. 15, the report related. About Nautilus Holdings Nautilus Holdings Limited and 20 affiliated companies, including Nautilus Holdings No. 2 Limited, filed bare-bones Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 14-22885) in White Plains, New York, on June 23, 2014. The affiliates are Nautilus Holdings No. 2 Limited; Nautilus Shipholdings No. 1 Limited; Nautilus Shipholdings No. 2 Limited; Nautilus Shipholdings No. 3 Limited; Able Challenger Limited; Charming Energetic Limited; Dynamic Continental Limited; Earlstown Limited; Findhorn Osprey Limited; Floral Peninsula Limited; Golden Knighthead Limited; Magic Peninsula Limited; Metropolitan Harbour Limited; Metropolitan Vitality Limited; Miltons' Way Limited; Perpetual Joy Limited; Regal Stone Limited; Resplendent Spirit Limited; Superior Integrity Limited; and Vivid Mind Limited. The Debtors' cases have been assigned to Judge Robert D. Drain, and are being jointly administered for procedural purposes. Hamilton, Bermuda-based Nautilus estimated $100 million to $500 million in assets and debt. Monrovia, Liberia-based Reminiscent Ventures S.A. owns 100% of the stock. Nautilus has tapped Jay Goffman, Esq., Mark A. McDermott, Esq., Shana A. Elberg, Esq., and Suzanne D.T. Lovett, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, as counsel; and AP Services, LLC, as financial advisor. Epiq Bankruptcy Solutions LLC serves as the claims and noticing agent. NEPHROS INC: Files 5 Million Shares Prospectus with SEC ------------------------------------------------------- Nephros, Inc., filed with the U.S. Securities and Exchange Commission a Form S-1 registration statement relating to the distribution, at no charge, to holders of its common stock of up to 5,000,000 Shares of common stock issuable Upon the exercise of non-transferable rights to subscribe for those Shares. The Company will not issue any fractional shares. Instead the Company will round up any fractional shares to the nearest whole share. Shares of the Company's common stock are quoted on the OTCQB Marketplace operated by the OTC Markets Group, Inc., or OTCQB, under the ticker symbol "NEPH." The shares of common stock issued in the rights offering will also be quoted on the OTCQB under the same ticker symbol. The subscription rights will not be listed for trading on any stock exchange or market or quoted on the OTCQB. A copy of the Form S-1 prospectus is available for free at: http://is.gd/CuIWsp About Nephros River Edge, N.J.-based Nephros, Inc., is a commercial stage medical device company that develops and sells high performance liquid purification filters. Its filters, which it calls ultrafilters, are primarily used in dialysis centers and healthcare facilities for the production of ultrapure water and bicarbonate. Nephros, Inc., reported a net loss of $3.69 million in 2013 following a net loss of $3.26 million in 2012. As of June 30, 2014, the Company had $2.35 million in total assets, $2.13 million in total liabilities and $216,000 in total stockholders' equity. Rothstein Kass, in Roseland, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred negative cash flow from operations and net losses since inception. These conditions, among others, raise substantial doubt about its ability to continue as a going concern. NEW BERN RIVERFRONT: Weaver Can't Appeal Interlocutory Orders ------------------------------------------------------------- District Judge W. Earl Britt, denied Weaver Cooke Construction, LLC's motions for leave to appeal interlocutory orders issued by U.S. Bankruptcy Judge Stephani W. Humrickhouse in disputes related to the alleged defective construction of the SkySail Luxury Condominiums located in New Bern, North Carolina. In March 2009, the project developer commenced an action against Weaver Cooke, along with several other defendants, in Wake County Superior Court to recover for the alleged construction deficiencies. In November 2009, the developer filed for chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of North Carolina. The state action was subsequently removed to the U.S. District Court for the Eastern District of North Carolina, then transferred to the bankruptcy court. Weaver Cooke filed an answer and third-party complaint in May 2010, but did not name any subcontractors as third-party defendants. In June 2012, Weaver Cooke filed a second third-party complaint, this time naming Stock Building Supply, LLC; Curenton Concrete Works, Inc.; and Waterproof Specialties, Inc., among others, as third-party defendants, asserting claims of negligence, breach of express warranty, and contractual indemnity. Stock, Curenton, and WSI filed motions for summary judgment as to all three of Weaver Cooke's causes of action. In separate orders, the bankruptcy court granted Stock's, Curenton's, and WSI's motions as to the negligence and breach of warranty claims based on the statute of limitations, but it reserved ruling on the contractual indemnity claims. Subsequently, the bankruptcy court granted Stock's motion for summary judgment on the contractual indemnity claims, dismissing Stock completely from the underlying adversary proceeding in the bankruptcy court. A copy of the District Court's Oct. 16, 2014 Order is available at http://is.gd/vgVzEwfrom Leagle.com. About New Bern Riverfront Cary, North Carolina-based New Bern Riverfront Development, LLC, is the developer of SkySail Condominium, consisting of 121 residential condominiums (plus 1 commercial/non-residential unit) located on Middle Street on the waterfront in historic downtown New Bern, North Carolina, and sells the SkySail Condominiums in the ordinary course of business. New Bern Riverfront filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 09-10340) on Nov. 30, 2009. John A. Northen, Esq., at Northen Blue, LLP, represents the Debtor. The Company disclosed $31,515,040 in assets and $25,676,781 in liabilities as of the Chapter 11 filing. New Bern Riverfront has filed an Amended Plan of Reorganization, which represents a consensual plan negotiated with the Debtor's secured creditor, Wells Fargo Bank, N.A. The Debtor contemplates selling properties. NEW LOUISIANA: Palm Terrace Debtors Win Final Okay on DIP Loan -------------------------------------------------------------- The Hon. Robert Summerhays of the U.S. Bankruptcy Court for the Western District of Louisiana issued a final order authorizing CHC-CLP Operator Holding, LLC, CHC-SPC Operator, Inc., SA- Lakeland, LLC, SA-Clewiston, LLC and SA-St. Petersburg, LLC -- collectively, the "Palm Terrace" Debtors -- to obtain senior secured, postpetition financing from SA Mezz Holdings LLC. Judge Summerhays also authorized the "Palm Terrace" Debtors to use cash collateral securing their indebtedness owing to pre- bankruptcy lender Pacific Western Bank from Oct. 6, 2014, to Nov. 28, 2014, pursuant to the budget. The "Palm Terrace" Debtors told the Court that they will use the proceeds of advances, subject to a cash collateral budget, solely to pay: a) payroll and related expenses approved by lender in its reasonable discretion and by the Bankruptcy Court; b) deposits to utilities approved by lender in its reasonable discretion and by the Bankruptcy Court c) critical vendors approved by lender in its reasonable discretion and by the Bankruptcy Court; d) working capital reasonable and necessary for operation of the "Palm Terrace" Debtors' business and preservation and enhancement of the Collateral and meeting the "Palm Terrace" Debtors' obligations and responsibilities under Bankruptcy Court orders and contracts; e) amounts necessary to cure executory contracts assumed with the written consent of lender; f) with respect to final borrowing advances only, payment of the PacWest loan; g) the Carve-Out; h) principal, interest and fees on the DIP facility; i) payment of Bankruptcy fees; and j) subject to the limitations set forth in the agreement and the DIP facility Orders, expenses of the administration of the Chapter 11 Cases -- including the payment of professional fees and costs, and United States Trustee fees. Under the agreement, the "Palm Terrace" Debtors unconditionally promised to pay the lender the DIP obligations, including the outstanding principal amount of all advances, accrued and unpaid interest and fees thereon, costs and expenses, and bankruptcy fees as and when due. The lender will make advances to borrowers up to: i) upon entry of the interim order: a) in the aggregate amount not to exceed $600,000; b) the additional amount as may be agreed to by the lender in writing; or c) the other sum as is approved by the Bankruptcy Court on an interim basis with the written consent of the lender; and ii) upon entry of the final order: a) in the aggregate amount not to exceed $2,400,000; b) such additional amount as may be agreed to by the lender in writing; or c) such other sum as is approved by the Bankruptcy Court with the written consent of the lender on a final basis. The agreement stated that the DIP facility is not a revolving loan, and any advances made by lender will reduce the remaining amount available for interim borrowing advances and final borrowing advances, as applicable, by the amount of such advances. As reported in the Troubled Company Reporter on Sept. 25, 2014, the final advances will be used to: a) supplement the Debtor's use of cash collateral and solely be used to pay payroll and related expenses, make critical vendor payments, fund working capital requirements and fund deposits to utilities; and b) pay in full all obligations due to Pacific Western Bank on account of any prepetition loans and other extension of credit under the certain revolving credit and security agreement as of Nov. 25, 2008 between the borrowers and Pacific Western, successor by merger to Capital Source Bank: i) in the aggregate amount not to exceed $2,400,000; ii) additional amount may be agreed to by the lender in writing; or iii) other sum as approved by the Court on an interim basis with the written consent of the lender. Pursuant to a prepetition credit agreement, PacWest agreed to provide the Debtors with a revolving credit facility in a maximum principal amount at any time outstanding of up to $3,000,000. According to the TCR, as of the bankruptcy filing date, the Debtors were indebted to Pacific Western in the approximate aggregate principal amount of $2,028,985. Interest on the DIP facility will be payable in cash at the end of each month in arrears at 4.5% per annum. During the continuance of an even of default, the interest rates applicable to all advances under the DIP facility will be increased by 2% per annum, but such increased rate will not be considered compensation for or prevent the exercise by lender of any remedies. The lender's liens on the collateral and the lender's administrative claims provided for herein shall be subject to a carve-out in an amount not to exceed: i) fees and any fees payable to the clerk of the Bankruptcy Court that are due upon the occurrence of an event of default; ii) fees and expenses due to professionals employed by the "Palm Terrace" Debtors, for services rendered as Borrowers and Chapter 11 debtors in possession that are due upon the occurrence of an event of default in an amount not to exceed $100,000; and iii) fees and expenses to professionals employed by the Committee for services rendered while the "Palm Terrace" Debtors, are Chapter 11 debtors in possession that are due upon the occurrence of an event of default in an amount not to exceed $25,000. The Debtors said the lender will receive a fully perfected security interest in all prepetition and postpetition assets of all the Debtors. A full-text copy of the DIP loan and security agreement is available for free at http://is.gd/TuL4l8 A full-text copy of the cash collateral budget is available for free at http://is.gd/mdHxx1 About New Louisiana New Louisiana Holdings LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case No. 14-50756), on June 25, 2014. Ten affiliates of New Louisiana -- Acadian 4005 Tenant, LLC (Case No. 14-50850), Atrium 6555 Tenant, LLC, dba The Atrium at Lafreniere Assisted Living (Case No. 14-50851), Citiscape 5010 Tenant, LLC, dba Citiscape Apartments (Case No. 14-50853), Lakewood Quarters Assisted 8585 Tenant, LLC (Case No. 14-50854), Lakewood Quarters Rehab 8225 Tenant, LLC (Case No. 14-50855), Panola 501 Partners, LP (Case No. 14-50862), Regency 14333 Tenant, LLC (Case No. 14-50861), Retirement Center 14686 Tenant, LLC (Case No. 14-50856), Sherwood 2828 Tenant, LLC (Case No. 14-50857), St. Charles 1539 Tenant, LLC (Case No. 14-50858) and Woodland Village 5301 Tenant, LLC (Case No. 14-50859) filed Chapter 11 bankruptcy petitions on July 16, 2014. Fifteen additional affiliates of New Louisiana -- SA-PG Ocala LLC (Case No. 14-50909), SA-PG Operator Holdings LLC (Case No. 14- 50912), SA-PG Clearwater LLC (Case No. 14-50913), SA-PG Gainesville LLC (Case No. 14-50914), SA-PG Jacksonville LLC (Case No. 14-50915), SA-PG Largo LLC (Case No. 14-50916), SA-PG North Miami LLC (Case No. 14-50917), SA-PG Orlando LLC (Case No. 14- 50918), SA-PG Pinellas LLC (Case No. 14-50919), SA-PG Port St. Lucie LLC (Case No. 14-50920), SA-PG Sun City Center LLC (Case No. 14-50921), SA-PG Tampa LLC (Case No. 14-50922), SA-PG Vero Beach LLC (Case No. 14-50923), SA-PG West Palm Beach LLC (Case No. 14- 50924) and SA-PG Winterhaven LLC (Case No. 14-50925) filed separate Chapter 11 bankruptcy petitions on July 28, 2014. Four more affiliates of New Louisiana -- CHC-CLP Operator Holding LLC (Case No. 14-51104), SA-St. Petersburg LLC (Case No. 14- 51101), SA-Clewiston LLC (Case No. 14-51102) and SA-Lakeland LLC (Case No. 14-51103) -- that operate skilled nursing facilities located in Lakeland, Clewiston and St. Peterburg, Florida, sought protection under Chapter 11 of the Bankruptcy Code on Sept. 3, 2014. The Chapter 11 cases are jointly consolidated with New Louisiana's Chapter 11 case at Case No. 14-50756 before Judge Robert Summerhays of the United States Bankruptcy Court for the Western District of Louisiana (Lafayette). The Debtors are represented by Patrick J. Neligan, Jr., Esq., at Neligan Foley LLP, in Dallas, Texas. The U.S. Trustee for Region 5 on Oct. 3 appointed three creditors of New Louisiana Holdings, LLC to serve on the official committee of unsecured creditors. NEW LOUISIANA: Wants to Hire H. Kent Aguillard as Local Counsel --------------------------------------------------------------- New Louisiana Holdings LLC asks the U.S. Bankruptcy Court for the Western District of Louisiana for permission to employ H. Kent Aguillard, Esq., as its local counsel. Mr. Aguillard is expected to: a) provide, when requested, legal advice to the debtors-in- possession with respect to Debtors' powers and duties as debtors-in-possession in the continued operation of the Debtors' businesses, operation of the Debtors' properties; and b) perform certain legal services for the debtors-in-possession which may be necessary in these joined Chapter 11 cases: -- SA-St. Petersburg LLC dba Palm Terrace of St. Petersburg -- SA-Clewiston LLC dba Palm Terrace of Clewiston -- SA-Lakeland LLC dba Palm Terrace of Lakeland -- CHC-CLP Operator Holding LLC -- CHC-SPC Operator Inc. The Debtor says Mr. Aguillard will not, and does not, render any advice concerning taxation or tax related issues or matters. Mr. Aguillard charges the Debtor at his hourly rate at $350. The Debtor adds he received a retainer of $20,000. The Debtor assures the Court the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Mr. Aguillard can be reached at: H. Kent Aguillard, Esq. 141 S. 6th Street P. O. Drawer 391 Eunice, LA 70535 Tel: (337) 457-933 Fax: (337) 457-2917 Email: kaguillard@yhalaw.com About New Louisiana New Louisiana Holdings LLC, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case No. 14-50756), on June 25, 2014. Ten affiliates of New Louisiana -- Acadian 4005 Tenant, LLC (Case No. 14-50850), Atrium 6555 Tenant, LLC, dba The Atrium at Lafreniere Assisted Living (Case No. 14-50851), Citiscape 5010 Tenant, LLC, dba Citiscape Apartments (Case No. 14-50853), Lakewood Quarters Assisted 8585 Tenant, LLC (Case No. 14-50854), Lakewood Quarters Rehab 8225 Tenant, LLC (Case No. 14-50855), Panola 501 Partners, LP (Case No. 14-50862), Regency 14333 Tenant, LLC (Case No. 14-50861), Retirement Center 14686 Tenant, LLC (Case No. 14-50856), Sherwood 2828 Tenant, LLC (Case No. 14-50857), St. Charles 1539 Tenant, LLC (Case No. 14-50858) and Woodland Village 5301 Tenant, LLC (Case No. 14-50859) filed Chapter 11 bankruptcy petitions on July 16, 2014. Fifteen additional affiliates of New Louisiana -- SA-PG Ocala LLC (Case No. 14-50909), SA-PG Operator Holdings LLC (Case No. 14- 50912), SA-PG Clearwater LLC (Case No. 14-50913), SA-PG Gainesville LLC (Case No. 14-50914), SA-PG Jacksonville LLC (Case No. 14-50915), SA-PG Largo LLC (Case No. 14-50916), SA-PG North Miami LLC (Case No. 14-50917), SA-PG Orlando LLC (Case No. 14- 50918), SA-PG Pinellas LLC (Case No. 14-50919), SA-PG Port St. Lucie LLC (Case No. 14-50920), SA-PG Sun City Center LLC (Case No. 14-50921), SA-PG Tampa LLC (Case No. 14-50922), SA-PG Vero Beach LLC (Case No. 14-50923), SA-PG West Palm Beach LLC (Case No. 14- 50924) and SA-PG Winterhaven LLC (Case No. 14-50925) filed separate Chapter 11 bankruptcy petitions on July 28, 2014. Four more affiliates of New Louisiana -- CHC-CLP Operator Holding LLC (Case No. 14-51104), SA-St. Petersburg LLC (Case No. 14- 51101), SA-Clewiston LLC (Case No. 14-51102) and SA-Lakeland LLC (Case No. 14-51103) -- that operate skilled nursing facilities located in Lakeland, Clewiston and St. Peterburg, Florida, sought protection under Chapter 11 of the Bankruptcy Code on Sept. 3, 2014. The Chapter 11 cases are jointly consolidated with New Louisiana's Chapter 11 case at Case No. 14-50756 before Judge Robert Summerhays of the United States Bankruptcy Court for the Western District of Louisiana (Lafayette). The Debtors are represented by Patrick J. Neligan, Jr., Esq., at Neligan Foley LLP, in Dallas, Texas. The U.S. Trustee for Region 5 on Oct. 3 appointed three creditors of New Louisiana Holdings, LLC to serve on the official committee of unsecured creditors. NEXT 1 INTERACTIVE: Incurs $1.8 Million Net Loss in Aug. 31 Qtr. ---------------------------------------------------------------- Next 1 Interactive, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.88 million on $406,345 of total revenues for the three months ended Aug. 31, 2014, compared to a net loss of $5.37 million on $383,851 of total revenues for the same period in 2013. For the six months ended Aug. 31, 2014, the Company reported a net loss of $2.42 million on $751,302 of total revenues compared to a net loss of $6.78 million on $879,292 of total revenues for the same period a year ago. The Company's balance sheet at Aug. 31, 2014, showed $4.43 million in total assets, $13 million in total liabilities and a $8.56 million total stockholders' deficit. At Aug. 31, 2014, the Company had $72,977 cash on-hand, a decrease of $44,841 from $117,818 at the start of fiscal 2015. The decrease in cash was due primarily to operating expenses and advances to affiliates. A copy of the Form 10-Q is available for free at: http://is.gd/8lBgQm About Next 1 Interactive Weston, Fla.-based Next 1 Interactive, Inc., is the parent company of RRTV Network (formerly Resort & Residence TV), Next Trip -- its travel division, and Next One Realty -- its real estate division. The Company is positioning itself to emerge as a multi revenue stream "Next Generation" media-company, representing the convergence of TV, mobile devices and the Internet by providing multiple platform dynamics for interactivity on TV, Video On Demand (VOD) and web solutions. The Company has worked with multiple distributors beta testing its platforms as part of its roll out of TV programming and VOD Networks. The list of multi- system operators the Company has worked with includes Comcast, Cox, Time Warner and Direct TV. At present the Company operates the Home Tour Network through its minority owned/joint venture real estate partner -- RealBiz Media. As of July 17, 2012, the Home Tour Network features over 4,300 home listings in four cities on the Cox Communications network. The Company incurred a net loss of $18.29 million on $1.56 million of total revenues for the year ended Feb. 28, 2014, as compared with a net loss of $4.23 million on $987,115 of total revenues for the year ended Feb. 28, 2013. D'Arelli Pruzansky, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Feb. 28, 2014. The independent auditors noted that the Company has incurred net losses of $18,295,802 and net cash used in operations of $4,590,428 for the year ended Feb. 28, 2014, and the Company had an accumulated deficit of $87,625,076 and a working capital deficit of $13,549,796 at Feb. 28, 2014. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "If we continue to experience liquidity issues and are unable to generate revenue, we may be unable to repay our outstanding debt when due and may be forced to seek protection under the federal bankruptcy laws," the Company said in its fiscal 2013 Annual Report. OCWEN FINANCIAL: Moody's Lowers Corporate Family Rating to B2 ------------------------------------------------------------- Moody's Investors Service has downgraded the following ratings; all ratings remain on review for possible downgrade: Ocwen Financial Corporation (Ocwen) Corporate Family Rating downgraded to B2 from B1 Senior Secured Bank Credit Facility downgraded to B2 from B1 Senior Unsecured Debt downgraded to B3 from B2 Altisource Solutions S.a.r.l. (Altisource) Corporate Family Rating downgraded to B2 from B1 Senior Secured Bank Credit Facility downgraded to B2 from B1 Home Loan Servicing Solutions Ltd (HLSS) Corporate Family Rating downgraded to B2 from Ba3 Senior Secured Bank Credit Facility downgraded to B2 from Ba3 Ratings Rationale The rating actions follow the New York Department of Financial Services' (DFS) allegations, set forth in a letter to Ocwen, raising serious issues with Ocwen's servicing systems and processes. These allegations raise the risk of actions that restrict Ocwen's activities, the levying of monetary fines against Ocwen, or additional actions that negatively affect Ocwen's credit strength. In addition, the continued regulatory scrutiny further damages Ocwen's franchise position. HLSS and Altisource's ratings are driven in large part by their reliance on Ocwen whereby any changes to Ocwen's ratings would likely result in changes to their ratings. The two notch downgrade of HLSS rating to the same level as Ocwen is due to the expectation that HLSS' will accelerate its diversification into other asset classes beyond non-prime servicing assets such as non- performing loans which have a higher risk profile along with the increased possibility that the servicing contracts could be terminated without compensation. While HLSS has contractual protections in its agreements with Ocwen, there is no guarantee that HLSS will be able to successfully assert its rights, including its right to full indemnification, thereunder. On October 21, 2014, the DFS issued a letter to Ocwen that alleges material deficiencies with Ocwen's servicing systems and processes, including Ocwen's backdating of an unknown number of letters to borrowers. In addition, the letter questions Ocwen's ability to properly service loans, alleging that Ocwen has not resolved the issues nearly a year after its initial discovery, as well as failing to devote the proper urgency to the problem. The latest letter follows the August 4, 2014 letter from the DFS to Ocwen raising concerns about potential conflicts of interest and potentially inconsistent statements and representations regarding corporate governance. In addition, in August 2014, Ocwen and HLSS restated their financial statements for several periods. During the review, Moody's will assess (1) the impact of the regulatory scrutiny and possible regulatory actions on the financial strength and franchise position of all three companies and (2) the long-term impact of an eventual shift in the companies' business models, possibly to areas with even greater operating risk, that may be accelerated as a result of regulatory action. Ocwen's ratings could be downgraded further in the event that regulatory action materially restricts the company's business activities, management or governance, or further harms its franchise and reputation. In addition, the ratings could be downgraded if (a) its business model is expected to shift to areas with even greater operating risk, or (b) if the company's servicing performance or financial fundamentals weaken. In the event that Ocwen's ratings are downgraded, the ratings of HLSS and Altisource would likely also be downgraded. In addition, negative ratings pressure on HLSS' ratings could result if the company's financial fundamentals weaken, with particular focus on: a) adequate funding availability and b) financial leverage. In addition, negative ratings pressure on Altisource's ratings could result if it loses its contract with Ocwen or if the company's financial metrics materially deteriorate for an extended period of time. Given the review for possible downgrade, an upgrade to Ocwen, HLSS, or Altisource's ratings are unlikely at this time. The principal methodology used in this rating was Finance Company Global Rating Methodology published in March 2012. OCWEN FINANCIAL: S&P Lowers Issuer Credit Rating to 'B' ------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term issuer credit rating to 'B' from 'B+' on OCWEN Financial Corp. The outlook is negative. In addition, S&P lowered its ratings to 'B' from 'B+' on OCWEN's senior secured debt and to 'B-' from 'B' on its senior unsecured debt. "The rating action reflects our view of increasing regulatory scrutiny over the company's servicing practices and today's announcement that the company erroneously dated correspondence to some borrowers who were facing foreclosure," said Standard & Poor's credit analyst Stephen Lynch. "We believe the culmination of events and ongoing investigations will limit the company's ability to acquire servicing assets," Mr. Lynch added. PACIFIC GOLD: OKs Assignment of $37,500 Outstanding Notes --------------------------------------------------------- Pacific Gold Corp. agreed to the assignment of $20,000, in principal amount of outstanding notes, according to a regulatory filing with the U.S. Securities and Exchange Commission. The assignment was to a third party that is not affiliated with the Company. In connection with the assignment, the Company agreed to various modifications of the note for the benefit of the new holder, which enhance and reset the conversion features of the note and change certain other basic terms of the note. As a result of the amendments, the note now (i) has a conversion rate of a 50% discount to the lowest daily VWAP price of the common stock based on the ten day period prior to the date of conversion, which rate will be subject to certain adjustments, (ii) is interest free, (iii) has a new maturity date of June 25, 2015, and (iv) has additional default provisions, including a default penalty of 50% of outstanding principal and interest at the time of default. The assigned portion of the principal note had a conversion rate at an approximate 50% discount to market and was converted into 400,000,000 shares of common stock of the Company. On Oct. 16, 2014, Pacific Gold also agreed to the assignment of $17,500, in principal amount of outstanding notes. The assignment was to a third party that is not affiliated with the Company. In connection with the assignment, the Company agreed to various modifications of the note for the benefit of the new holder, which enhance and reset the conversion features of the note and change certain other basic terms of the note. The assigned portion of the principal note had a conversion rate at an approximate 50% discount to market and was converted into 350,000,000 shares of common stock of the Company. About Pacific Gold Las Vegas, Nev.-based Pacific Gold Corp. is engaged in the identification, acquisition, and development of prospects believed to have gold mineralization. Pacific Gold through its subsidiaries currently owns claims, property and leases in Nevada and Colorado. Pacific Gold reported a net loss of $463,422 in 2013 following a net loss of $16.62 million in 2012. As of June 30, 2014, the Company had $1.09 million in total assets, $3.80 million in total liabilities and a $2.71 million total stockholders' deficit. Silberstein Ungar, PLLC, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred losses from operations, has negative working capital, and is in need of additional capital to grow its operations so that it can become profitable. These factors raise substantial doubt about the Company's ability to continue as a going concern. PARTS HUB: Case Summary & 7 Unsecured Creditors ----------------------------------------------- Debtor: Parts Hub, Inc. dba R & R Mobile, Inc., d/b/a ProTech Chip Performance fka Omnicore Automotive Solutions, Inc., 128 Rolling Meadow Drive Holliston, MA 01746 Case No.: 14-42297 Chapter 11 Petition Date: October 21, 2014 Court: United States Bankruptcy Court District of Massachusetts (Worcester) Judge: Hon. Melvin S. Hoffman Debtor's Counsel: Jordan L. Shapiro, Esq. SHAPIRO & HENDER 105 Salem Street Malden, MA 02148 Tel: (781) 324-5200 Fax: (781) 322 4712 Email: JSLAWMA@aol.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Stuart C. Reid, president and secretary. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/mab14-42297.pdf PSL-NORTH AMERICA: Seeks Extension of Plan Filing Date ------------------------------------------------------ Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that PSL - North America LLC, once a producer of large-diameter pipe for the water and gas-transmission industries, asks the U.S. Bankruptcy Court in Wilmington, Del., to extend until Jan. 12, 2015, its exclusive plan filing period, saying it needs more time to analyze the best wind-down path. According to the report, PSL intends to file a liquidating Chapter 11 plan in the "near future" following the $100 million sale in August of its business to India's Jindal Tubular USA LLC. About PSL-North America Founded in 2006, PSL-North America LLC is a manufacturer and coater of large diameter steel pipes. The company has a state-of- the-art facility located in Bay St. Louis, Mississippi, with the land leased for 99 years. The company is an American-based partially owned subsidiary of India's largest producer and manufacturer of steel piping, PSL Limited. On June 16, 2014, PSL-North America LLC and PSL USA Inc., filed voluntary petitions in Delaware (Lead Case No. 14-11477) seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Judge Peter J. Walsh. The Debtors seek to have their cases jointly administered for procedural purposes. PSL-North America LL disclosed $93,343,085 in assets and $204,025,409 in liabilities as of the Chapter 11 filing. As of the Petition Date, the company had total outstanding debt obligations of $130 million, according to a court filing. Proposed counsel for the Debtor are John H. Knight, Esq., Paul N. Heath, Esq., Tyler D. Semmelman, Esq., Amanda R. Steele, Esq. and William A. Romanowicz, Esq. at Richards, Layton & Finger, P.A. of Wilmington, Delaware. Epiq Bankruptcy Solutions serves as claims agent. PSM HOLDINGS: Reports $5.85-Mil. Net Loss for FY Ended June 30 -------------------------------------------------------------- PSM Holdings, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended June 30, 2014. Accounting & Consulting Group, LLP, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company will not be able to pay the preferred dividends due Oct. 15, 2014, is unable to remain current with certain expenses of the Company, and the operating company is experiencing significant industry and operational risks, including sustained operating losses. The Company reported a net loss of $5.85 million on $12.54 million of total revenue for the fiscal year ended June 30, 2014, compared with a net loss of $1.8 million on $21.87 million of total revenue in the prior year. The Company's balance sheet at June 30, 2014, showed $21.7 million in total assets, $16.83 million in total liabilities and stockholders' equity of $4.83 million. A copy of the Form 10-K is available at: http://is.gd/G0dGQp PSM Holdings, Inc., originates mortgage loans funded either directly off its warehouse lines of credit or through brokering transactions to other third parties. The Oklahoma City-based Company has retail offices located across the United States, deriving revenues from the loan origination volume from those offices. RADNOR HOLDINGS: Suit v. Skadden, Tennenbaum Are Core Proceedings ----------------------------------------------------------------- Bankruptcy Judge Peter J. Walsh ruled that the lawsuit filed by Radnor Holdings Corporation and certain entities against Skadden Arps Meager & Flom LLP, Tennenbaum Capital Partners, LLC, and Special Value Opportunities Fund, LLC, among other defendants, contain causes of action that are core proceedings. The Complaint is 327 paragraphs long and covers 10 separate counts. These counts are: breach of fiduciary duties, fraud, conspiracy to commit fraud, malpractice, perjury, unjust enrichment, obstruction of justice, breach of contract, tortuous interference, and theft by deception. According to the Complaint, "this cause of action arises from false testimony, misrepresentation, non-disclosure, willful misconduct, gross negligence and deception committed by Defendants individually and in concert with each other and before the Honorable Peter J. Walsh for the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") to the detriment of Radnor and Kennedy." The case is, RADNOR HOLDINGS CORPORATION, MICHAEL T. KENNEDY, MTK TRUST FBO RYAN KENNEDY, MTK TRUST FBO SEAN M. KENNEDY, MTK TRUST FBO MICHAELA C. KENNEDY, MTK TRUST FBO CONOR R. KENNEDY, Chapter 11, Plaintiffs, v. SKADDEN ARPS MEAGER & FLOM LLP; SK PRIVATE INVESTMENT FUND 1998 LLC; RICHARD T. PRINS, ESQUIRE; GREGG M. GALARDI, ESQUIRE; TENNENBAUM & CO LLC; TENNENBAUM CAPITAL PARTNERS, LLC; BABSON & CO. LLC; SPECIAL VALUE EXPANSION FUND, LLC; SPECIAL VALUE OPPORTUNITIES FUND, LLC; MICHAEL E. TENNENBAUM; SUZANNE S. TENNENBAUM; DAVID A. HOLLANDER; MARK K. HOLDSWORTH; HOWARD M. LEVKOWITZ; RICHARD E. SPENCER; JOSE FELICIANO; ALVAREZ & MARSAL, INC. and STANFORD M. SPRINGEL, Defendants, Adv. Proc. No. 12-51308(PJW)(Bankr. D. Del.). A copy of the Court's October 14, 2014 Memorandum Opinion is available at http://is.gd/gOTdh4from Leagle.com. Russell C. Silberglied, Esq., and Cory D. Kandestin, Esq., at RICHARDS, LAYTON & FINGER, P.A., represent Tennenbaum Capital Partners, LLC, Tennenbaum & Co., LLC, Special Value Expansion Fund, LLC, Special Value Opportunities Fund, LLC, Michael E. Tennenbaum, Suzanne S. Tennenbaum, David A. Hollander, Mark K. Holdsworth, and Howard M. Levkowitz. About Radnor Holdings Based in Radnor, Pennsylvania, Radnor Holdings Corporation -- http://www.radnorholdings.com/-- manufactured and distributed a broad line of disposable food service products in the United States, and specialty chemicals worldwide. The Debtor and its affiliates filed for chapter 11 protection on August 21, 2006 (Bankr. D. Del. Lead Case No. 06-10894). Gregg M. Galardi, Esq., and Sarah E. Pierce, Esq., at Skadden, Arps, Slate, Meagher &Flom, LLP, in Wilmington, Del.; and Timothy R. Pohl, Esq., Patrick J. Nash, Jr., Esq., and Rena M. Samole, Esq., at Skadden, Arps, Slate, Meagher &Flom, LLP, in Chicago, Ill., serve as the Debtors' bankruptcy counsel. When the Debtors filed for protection from their creditors, they disclosed total assets of $361,454,000 and total debts of $325,300,000. RESIDENTIAL CAPITAL: Judge Bars 'Scurrilous' Filings by Creditor ---------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that U.S. Bankruptcy Judge Martin Glenn summarily denied a motion for rehearing filed by a Residential Capital LLC creditor who called himself "state sovereign national." The report recalled that in September, Judge Glenn threw out every claim made by the creditor and placed some of the man's court filings under seal because they contained ?outrageous invective completely unrelated to the ResCap bankruptcy.? The filed a motion for rehearing, the report said. Short of imposing sanctions, Judge Glenn directed the court clerk to reject any more pleadings the erstwhile creditor tries to file, the report related. 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. RESIDENTIAL CAPITAL: Court Expunges Long Beach Claim ---------------------------------------------------- Suzanne Koegler and Edward Tobias filed claim number 1466 against Debtor GMAC Mortgage, LLC, asserting a general unsecured claim in the amount of $1,000,000. The Claim stems from alleged damage caused by Hurricane Sandy to real property located at 93 Wisconsin Street, Long Beach, NY 11561. The Claimants assert that GMACM (1) manipulated the national housing market, which resulted in a loss on the Long Beach Property, and (2) failed to adequately compensate Claimants for Hurricane Sandy-related damages. In a previous Memorandum Opinion and Order Sustaining Objection to Claim No. 1467 of Suzanne Koegler and Edward Tobias, Bankruptcy Judge Martin Glenn has already ruled on, sustained, and expunged claim number 1467 filed by Claimants with an identical stated basis, which claim related to real property located at 75 Princeton Oval, Freehold, NJ 07728. The Claimants now seek damages related to an entirely different property, but the Long Beach Claim suffers from the same infirmities as the now-expunged Freehold Claim. In a Memorandum Opinion and Order dated Oct. 20, available at http://is.gd/rKynWLfrom Leagle.com, the Court held that the Claimants fail to adequately state a claim against GMACM. For that reason, the Objection is sustained and the Long Beach Claim is expunged. 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. RETAIL PROPERTIES: S&P Assigns 'BB' Rating on Series A Pref. Stock ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'BBB-' corporate credit rating to U.S.-based real estate investment trust company Retail Properties of America Inc. (RPAI). The rating outlook is stable. S&P also assigned a 'BB' issue-level rating to RPAI's 7% series A preferred stock. "The rating on RPAI reflects our view of the company's measured investment and operating strategy, and strengthening portfolio fundamentals," said Standard & Poor's credit analyst George Skoufis. Partly offsetting these credit strengths are the risks associated with the company's capital recycling program, exposure to cyclical consumer and tenant demand, and the need to maintain sufficient sources of liquidity to fund the company's acquisitions pipeline. "We view RPAI's business risk profile as "satisfactory". Our rating incorporates the scale and diversity of RPAI's portfolio and the progress RPAI's management has made in implementing the company's repositioning strategy since its initial public offering (IPO) in April 2012. This strategy emphasizes consolidating its geographic footprint to 10 to 15 core markets of 3 million to 5 million square feet, as well as reducing its exposure to noncore assets. RPAI has made progress on its portfolio repositioning strategy, disposing of roughly $1 billion of assets since the end of 2011, although we note the track record is limited. While management has made significant inroads, there remains a large repositioning task ahead of them to achieve its targeted portfolio (quality and footprint). Indeed, RPAI's competitive position is weighed down by the meaningful execution risk associated with this repositioning strategy. Nevertheless, we view RPAI's strategy as credible and fundamentals should remain supportive of its repositioning strategy, at least over the next one to two years, and expect it to result in a simpler operating and investment strategy as well as incrementally stronger asset quality over time," S&P said. The stable outlook reflects S&P's view that RPAI will maintain credit metrics consistent with an "intermediate" financial risk profile while executing the company's repositioning strategy. This includes strategies such as asset recycling that allow the group to pursue its investment objectives while limiting pressure on its balance sheet. Over the longer term, S&P expects that the asset quality of RPAI's portfolio fundamentals will improve as the group executes its repositioning strategy. A downward rating trend could result if RPAI adopts a more- aggressive growth strategy or its operating performance worsens such that it exhibits weaker-than-expected credit metrics. This would be evidenced by debt to EBITDA of above 7x or fixed-charge coverage of less than 2.1x. S&P is not likely to raise the rating in the next two years. However, S&P would consider an upgrade if the company exhibits successful progress executing its asset recycling program and is committed to operating with more-conservative credit metrics. ROCK AIRPORT: Appeal Over MSA's Standing to File Plan Now Moot -------------------------------------------------------------- District Judge Arthur J. Schwab for the Western District of Pennsylvania tossed the appeal taken by Rock Airport of Pittsburgh LLC from the bankruptcy court's order that allowed Management Science Associates Inc. to file a plan of reorganization for the Debtor. Rock Airport contends MSA did not have standing to file a plan. MSA counters that Rock Airport's appeal has been rendered moot by two subsequent Bankruptcy Court Orders, both entered on Sept. 16, 2014, the first of which confirmed the Chapter 11 Trustee's plan of liquidation, and the second which approved the sale of Rock Airport's assets free and clear of all liens, claims, and encumbrances. Rock Airport and MSA filed competing Chapter 11 Plans in the case. MSA acquired the claim of "Priscilla Grdn Living Trust" and thereby established standing to file its Plan. Rock Airport objected to MSA's standing. "It is clear to this Court that the Bankruptcy Court had three reorganization plans to choose from: the Trustee's Plan, Rock Airport's Plan, and MSA's Plan. The Bankruptcy Court chose the Trustee's plan, and upon executing that Plan, sold Rock Airport's assets for nine million dollars. The Court finds that the sale of the assets (including the real property) and the Court's decision to implement the Trustee's Plan, not MSA's Plan, renders this appeal filed by Rock Airport moot," the District Judge said. The district court case is, ROCK AIRPORT OF PITTSBURGH, LLC, Appellant, v. MANAGEMENT SCIENCE ASSOCIATES, INC., Chapter 11, Appellees, No. 14cv1195 (W.D. Pa.). A copy of the District Court's October 16, 2014 Memorandum Opinion is available at http://is.gd/q93OC9from Leagle.com Rock Airport of Pittsburgh, LLC, based in Pittsburgh, Pennsylvania, filed for Chapter 11 bankruptcy (Bankr. W.D. Pa. Case No. 09-23155) on April 30, 2009. Robert O. Lampl, Esq., serves as Rock Airport's counsel. In its petition, Rock Airport estimated $1 million to $10 million in both assets and debts. A full-text copy of the petition, including the Debtor's list of 16 largest unsecured creditors, is available for free at http://bankrupt.com/misc/pawb09-23155.pdf The petition was signed by Rock Ferrone, president of the Company. Its affiliate, Pittsburgh-based RPP LLC, filed for Chapter 11 bankruptcy (Bankr. W.D. Pa. Case No. 13-20868) on Feb. 28, 2013, disclosing $6,710,000 in assets and $6,200,000 in liabilities. Elliott J. Schuchardt, Esq., at Schuchardt Law Firm, serves as RPP's counsel. The petition was signed by Rock Ferrone, managing member. ROCK AIRPORT: Loses Appeal Over MSA Claim Dispute ------------------------------------------------- District Judge Arthur J. Schwab dismissed the appeal by Rock Airport of Pittsburgh, LLC, from the Bankruptcy Court's Order dated August 8, 2014. Rock Airport contends that the Bankruptcy Court erred in overruling its Objection to the claim of Management Science Associates, Inc. purchased. Rock Airport contends that MSA did not establish the merits of its claim by a preponderance of the evidence. MSA disagrees with Rock Airport, and counters that: (1) this Appeal is now moot due to subsequent developments that transpired in September through the Bankruptcy Court proceedings; and (2) even if the District Court were to consider the substantive arguments raised by Rock Airport in this Appeal, the Court would have to conclude that the findings of the Bankruptcy Court were not clearly erroneous, but to the contrary, were well supported by the record. A copy of the District Court's Oct. 16 Memorandum Opinion available at http://is.gd/P4Hl7lfrom Leagle.com. Rock Airport of Pittsburgh, LLC, based in Pittsburgh, Pennsylvania, filed for Chapter 11 bankruptcy (Bankr. W.D. Pa. Case No. 09-23155) on April 30, 2009. Robert O. Lampl, Esq., serves as Rock Airport's counsel. In its petition, Rock Airport estimated $1 million to $10 million in both assets and debts. A full-text copy of the petition, including the Debtor's list of 16 largest unsecured creditors, is available for free at http://bankrupt.com/misc/pawb09-23155.pdf The petition was signed by Rock Ferrone, president of the Company. Its affiliate, Pittsburgh-based RPP LLC, filed for Chapter 11 bankruptcy (Bankr. W.D. Pa. Case No. 13-20868) on Feb. 28, 2013, disclosing $6,710,000 in assets and $6,200,000 in liabilities. Elliott J. Schuchardt, Esq., at Schuchardt Law Firm, serves as RPP's counsel. The petition was signed by Rock Ferrone, managing member. SAM ADAMS: Faces Eviction, Has Until Oct. 24 to Pay Landlord ------------------------------------------------------------ Tracy Record, West Seattle Blog editor, reports that Sam Adams has until Oct. 24, 2014, to pay $1.1 million in payments to landlord John Pietromonaco, to hold off eviction. A "loan contract already executed by [Adams's company] Hollystone Holdings" was going to provide that money, according to court orders stipulating the Oct. 24 deadline. West Seattle Blog says it received a forwarded e-mail of a club employee to some club instructors saying that an ownership change is imminent as of next weekend. As reported by the Troubled Company Reporter on July 15, 2014, Connie Thompson, writing for Komo News, reported that former Seattle Seahawk Sam Adams and his wife filed for Chapter 11 bankruptcy on June 28, 2014, in the midst of legal action surrounding his athletic club, West Seattle Fitness. Mr. Adams is represented by Lawrence Engel, Esq., as bankruptcy counsel. SAN BERNARDINO, CA: Police Want Deadline for Filing a Plan ---------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the union representing police officers in San Bernardino, California, wants the judge handling the city's Chapter 9 case to establish a deadline for the city to file a plan. According to the report, San Bernardino had negotiated a tentative agreement with the police officers' union, but the union said the city revoked the agreement. About San Bernardino, Calif. San Bernardino, California, filed an emergency petition for municipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 12-28006) on Aug. 1, 2012. San Bernardino, a city of about 210,000 residents roughly 65 miles (104 km) east of Los Angeles, estimated assets and debts of more than $1 billion in the bare-bones bankruptcy petition. The city council voted on July 10, 2012, to file for bankruptcy. The move lets San Bernardino bypass state-required mediation with creditors and proceed directly to U.S. Bankruptcy Court. The city is represented that Paul R. Glassman, Esq., at Stradling Yocca Carlson & Rauth. San Bernardino joined two other California cities in bankruptcy: Stockton, an agricultural center of 292,000 east of San Francisco, and Mammoth Lakes, a mountain resort town of 8,200 south of Yosemite National Park. The City was granted Chapter 9 protection on Aug. 28, 2013. SCHWAB INDUSTRIES: Trust's Suit Against SS&G Parkland May Proceed ----------------------------------------------------------------- Bankruptcy Judge Russ Kendig in Ohio ruled that the creditor trust established pursuant to the confirmed liquidation plan of Schwab Industries, Inc., and its affiliated debtor-entities may have valid claims against Laurence V. Goddard and The Parkland Group, Inc. with respect to their role as restructuring advisors in the sale of certain assets to OldCastle Materials, Inc. and Resource Land Holdings, LLC. John B. Pidcock, as Creditor Trustee, filed the adversary complaint against the Defendants on April 11, 2014. He alleges that the Defendants worked on behalf of the Schwabs to the detriment of the estate in securing a nearly $8,000,000 earn-out from OldCastle. The counts against the Defendants include breach of fiduciary duties owed to the bankruptcy estates, aiding and abetting the Schwabs in the breach of their fiduciary duties, and disgorgement of fees. The Trust alleges that SS&G Parkland Consulting, LLC, is the successor to Parkland, which SS&G denies. The Court ruled that: -- the Creditor Trust has standing to bring claims against the Defendants; -- the claims were not sold to OldCastle but were retained by Debtors and transferred to the Creditor Trust through the confirmed liquidation plan; -- the Trust's contention that the Defendants breached their fiduciary duties is not barred by application of res judicata based on the court-approved fee applications for the Defendants; -- the sale order does not bar the claims; -- the exculpation bars only certain claims; and -- the allegations in the complaint, when taken in the light most favorable to the Trust, suggest the Defendants acted in a way which may subject them to liability. The Court further held that count two of the complaint will be dismissed. There is no indication that Ohio allows a tort for aiding and abetting. The Trust also appears to have abandoned any effort to save this claim. The case is, JOHN B. PIDCOCK, AS CREDITOR TRUSTEE, Plaintiff, v. LAURENCE V. GODDARD, et al., Defendants, Adv. Proc. No. 14-6016 (Bankr. N.D. Ohio). A copy of the Court's October 17, 2014 Memorandum of Opinion is available at http://is.gd/Lud2kqfrom Leagle.com. About Schwab Industries Dover, Ohio-based Schwab Industries, Inc., produced, supplied and distributed ready-mix concrete, concrete block, cement and related supplies to commercial, governmental and residential contractors throughout Northeast Ohio and Southwest Florida. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ohio Case No. 10-60702) on Feb. 28, 2010. Affiliates Medina Cartage Co.; Medina Supply Company; Quality Block & Supply, Inc.; O.I.S. Tire, Inc.; Twin Cities Concrete Company; Schwab Ready-Mix, Inc.; Schwab Materials, Inc.; and Eastern Cement Corp. also sought bankruptcy protection. The Parkland Group, Inc., provided restructuring services and designated Laurence V. Goddard as Chief Restructuring Officer. Hahn Loeser & Parks LLP served as bankruptcy counsel. Brouse McDowell, LPA, served as special counsel. Garden City Group, Inc., served as claims, noticing and balloting agent. The Company estimated its assets and liabilities at $50 million to $100 million. As part of the bankruptcy, substantially all of the Debtors' assets via auction. The Court entered a sale order on May 28, 2010. Subsequently, the Court confirmed a liquidation plan. Through the sale and plan, a creditor trust was established for the benefit of the unsecured creditors and John B. Pidcock was designated Creditor Trustee. The Debtor was later renamed SII Liquidation Company. SEARS HOLDINGS: To Sell $625-Mil. 8% Senior Notes to Stockholders ----------------------------------------------------------------- Sears Holdings Corporation's board of directors has approved a rights offering allowing its stockholders to purchase up to $625 million in aggregate principal amount of 8% senior unsecured notes due 2019 and warrants to purchase shares of its common stock. This rights offering will generate up to an additional $625 million in proceeds, if it is fully subscribed and closes as planned, with the proceeds to be used for general corporate purposes. Edward S. Lampert, chairman and chief executive officer of the Company and Chairman and chief executive officer of ESL Investments, Inc., and certain affiliated investment funds, have advised the Company that they intend to exercise their pro rata portion of the subscription rights in full, though they have not entered into any agreement to do so. Fairholme Capital Management, L.L.C., also has advised the Company that it expects that certain of its clients will participate in the rights offering at levels to be determined, subject to review of the terms and conditions of the rights offering and regulatory considerations. The subscription rights will be distributed to all stockholders of record of the Company, and every stockholder will have the right to participate on the same terms in accordance with its pro rata ownership of the Company's common stock, except that holders of the Company's restricted stock that is unvested as of the record date are expected to receive cash awards in lieu of subscription rights. In the rights offering, the Company anticipates that holders of its common stock, other than holders of restricted stock that is unvested, will receive subscription rights on a pro rata basis based on shares of common stock held at the close of business on Oct. 30, 2014, the record date for the rights offering. Each subscription right will entitle the holder thereof to purchase, at a subscription price equal to the principal amount of each note, one unit, consisting of (a) a 8% senior unsecured note due 2019 in a principal to be determined and (b) a number of warrants equal to that principal amount divided by the strike price for the warrants, with each warrant entitling the holder thereof to purchase one share of the Company's common stock at a strike price of $28.41, the closing market price on Oct. 17, 2014, the last trading day before the board approved the offering. The warrants will be exercisable for a period of five years following the offering. Upon the closing of the rights offering, the components of the units will immediately separate from one another such that the senior unsecured notes and warrants will constitute separate securities and will be transferable separately. The subscription rights will be transferable, subject to applicable securities laws, and are expected to be listed and traded on the NASDAQ. The senior unsecured notes will be transferable but will not be listed for trading on any exchange. The warrants will be transferable, and the Company intends to apply to list the warrants for trading on the NASDAQ. Holders of subscription rights who fully exercise all of their subscription rights may also make a request to purchase additional units through the exercise of an over-subscription privilege, although the Company cannot assure investors that any over-subscriptions will be filled. As soon as practicable after the record date, the Company expects to distribute subscription rights to the holders of its common stock as of the record date. However, the Company reserves the right to cancel or terminate the rights offering or amend the terms thereof. Sells 17.7 Million Shares to ESL Partner Sears Holdings Corporation, sold 17,741,508 common shares of Sears Canada Inc. to ESL Partners, L.P., and Edward S. Lampert, chairman and chief executive officer of Sears Holdings and chairman and chief executive officer of ESL Investments, Inc., and related entities, pursuant to the previously announced rights offering to effect the distribution of up to 40,000,000 common shares of Sears Canada. ESL exercised its pro rata portion of the subscription rights pursuant to the exercise of basic subscription rights. Accordingly, Holdings sold a total of 17,741,508 common shares of Sears Canada to ESL. Sears Holdings received aggregate proceeds from ESL in connection with the rights offering of approximately $169 million. Proceeds from the rights offering will provide additional liquidity to Holdings as it enters into the holiday period and will be used for general corporate purposes. After the sale of Sears Canada shares to ESL, Holdings was the beneficial holder of approximately 34 million shares, or 34% of the common shares of Sears Canada. As such, Holdings no longer maintains control of Sears Canada and will not continue to consolidate Sears Canada. If additional subscription rights are exercised during the rights offering, which is scheduled to expire on Nov. 7, 2014, Sears Holdings could distribute up to an additional 22,258,492 shares of Sears Canada for additional consideration of approximately $211 million. About Sears Sears Holdings Corporation (NASDAQ: SHLD) -- http://www.searsholdings.com/-- is an integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve members. Sears Holdings is home to Shop Your Waytm, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners across categories important to them. The company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with more than 2,000 full- line and specialty retail stores in the United States and Canada. Kmart Corporation and 37 of its U.S. subsidiaries filed voluntary Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 02-02474) on Jan. 22, 2002. Kmart emerged from chapter 11 protection on May 6, 2003, pursuant to the terms of an Amended Joint Plan of Reorganization. Skadden, Arps, Slate, Meagher & Flom, LLP, represented Kmart in its restructuring efforts. Its balance sheet showed $16,287,000,000 in assets and $10,348,000,000 in debts when it sought chapter 11 protection. Kmart bought Sears, Roebuck & Co., for $11 billion to create the third-largest U.S. retailer, behind Wal-Mart and Target, and generate $55 billion in annual revenues. Kmart completed its merger with Sears on March 24, 2005. Sears Holdings reported a net loss of $1.36 billion in 2013, a net loss of $930 million in 2012 and a net loss of $3.14 billion in 2011. As of Aug. 2, 2014, Sears Holdings had $16.43 billion in total assets, $15.51 billion in total liabilities and $919 million in total equity. * * * Moody's Investors Service in January 2014 downgraded Sears Holdings Corporate Family Rating to Caa1 from B3. The rating outlook is stable. The downgrade reflects the accelerating negative performance of Sears' domestic business with comparable sales falling 7.4% for the quarter to date ending January 6th, 2014 compared to the prior year. The company now expects domestic Adjusted EBITDA to decline to a range of ($80 million) to $20 million for the fourth fiscal quarter, compared with $365 million in the year prior period. For the full year, Sears expects domestic Adjusted EBITDA loss between $(308) million and $(408) million, as compared to $557 million last year. Moody's expects full year cash burn (after capital spending, interest and pension funding) to be around $1.2 billion in 2013 and we expect Sears' cash burn to remain well above $1 billion in 2014. "Operating performance for fiscal 2013 is meaningfully weaker than our previous expectations, and we expect negative trends in performance to persist into 2014" said Moody's Vice President Scott Tuhy. He added "While Sears noted improved engagement metrics for its "Shop Your Way" Rewards program, Moody's remains uncertain when these improved engagement metrics will lead to stabilization of operating performance." As reported by the TCR on March 26, 2014, Standard & Poor's Ratings Services affirmed its ratings on the Hoffman Estate, Ill.- based Sears Holdings Corp., including the 'CCC+' corporate credit rating. Fitch Ratings had downgraded its long-term Issuer Default Ratings (IDR) on Sears Holdings Corporation (Holdings) and its various subsidiary entities (collectively, Sears) to 'CC' from 'CCC', according to a TCR report dated Sept. 12, 2014. SEARS HOLDINGS: S&P Assigns Preliminary 'B-' Rating --------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'B-' senior secured issue-level rating, preliminary 'CCC+' senior unsecured issue-level rating, preliminary 'CCC-' subordinated issue-level rating, and preliminary 'CCC-' preferred stock issue- level rating to Sears Holdings Corp.'s (CCC+/Negative/--) Rule 415 shelf registration. The new shelf has an indeterminate aggregate initial offering amount and number of debt securities. The company may sell a combination of common stock, preferred stock, debt securities, warrants, stock purchase contracts, units, and subscription rights. The company expects to use proceeds from the sales of the securities for general corporate purposes. The preliminary ratings are consistent with our issue-level ratings on Sears Holdings Corp.'s senior secured and Sears Roebuck Acceptance Corp.'s senior unsecured debt. Any final issue-level ratings would ultimately depend on the securities' final terms and conditions and S&P's view of recovery prospects for the existing and shelf drawdown issues. Sears announced on Oct. 20, 2014, that its board of directors had approved a rights offering allowing shareholders to purchase up to $625 million of 8% senior unsecured notes due 2019. The notes will be registered under the company's shelf registration statement. The potential raising of more cash is a positive for Sears' liquidity prospects. Based on completed and announced transactions, S&P believes Sears could raise approximately $2 billion of liquidity in 2014. However, S&P believes weak operating performance will persist over at least the next several quarters and a turnaround depends on the progress of its integrated retail strategy to reverse the substantial decline in profitability and cash use. S&P's ratings on Sears also reflect its participation in the highly competitive department store sector, substantial negative cash flow per our forecast for 2014 to 2015, and significant debt burden albeit with limited near-term maturities and a track record of asset sales. RATINGS LIST Sears Holdings Corp. Corporate Credit Rating CCC+/Negative/-- New Ratings Sears Holdings Corp. Senior Secured prelim B- Senior Unsecured prelim CCC+ Subordinated prelim CCC- Preferred stock prelim CCC- SEEGRID CORPORATION: Case Summary & 20 Top Unsecured Creditors -------------------------------------------------------------- Debtor: Seegrid Corporation 216 RIDC Park West Drive Pittsburgh, PA 15275 Case No.: 14-12391 Chapter 11 Petition Date: October 21, 2014 Court: United States Bankruptcy Court District of Delaware (Delaware) Judge: Hon. Brendan Linehan Shannon Debtor's Counsel: Daniel B. Butz, Esq. MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 N. Market Street, 18th Floor Wilmington, DE 19801 Tel: 302-575-7348 Fax: 302-658-3989 Email: dbutz@mnat.com - and - Robert J. Dehney, Esq. MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 N. Market Street P O. Box 1347 Wilmington, DE 19899-1347 Tel: (302) 658-9200 Fax: (302) 658-3989 Email: rdehney@mnat.com - and - Curtis S. Miller, Esq. MORRIS NICHOLS ARSHT & TUNNELL LLP 1201 N. Market St. Wilmington, DE 19801 Tel: 302-351-7412 Fax: 302-425-3080 Email: cmiller@mnat.com Debtor's BUCHANAN INGERSOLL & ROONEY PC Special Corporate Counsel: Debtors' LOGAN & COMPANY, INC. Claims and Noticing Agent: Debtor's SSG ADVISORS Financial Advisors: Estimated Assets: $1 million to $10 million Estimated Liabilities: $50 million to $100 million The petition was signed by David Hellman, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/deb14-12391.pdf SENTINEL MANAGEMENT: BNY Mellon $312-Mil. Lawsuit Isn't Over ------------------------------------------------------------ Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that U.S. District Judge James B. Zagel in Chicago who initially said he'd hand down a decision in June on the validity of Bank of New York Mellon Corp.'s $312 million secured claim against bankrupt money manager Sentinel Management Group Inc. said on the record last week that his ruling won't come until late November. According to the report, even if Judge Zagel does issue a decision in November, there will probably be another appeal to the federal circuit court in Chicago. The suit in district court is Grede v. Bank of New York, 08-cv- 02582, U.S. District Court, Northern District of Illinois (Chicago). About Sentinel Management Based in Northbrook, Illinois, Sentinel Management Group Inc. -- http://www.sentinelmgi.com/-- was a full service firm offering a variety of security solutions. The Company filed a voluntary Chapter 11 petition (Bankr. N.D. Ill. Case No. 07-14987) on Aug. 17, 2007. Ronald Barliant, Esq., Randall Klein, Esq., and Kathryn A. Pamenter, Esq., at Goldberg, Kohn, Bell & Black Rosenbloom & Moritz, Ltd., represented the Debtor. Lawyers at Quinn, Emanuel Urquhart Oliver & Hedges, LLP, represented the Official Committee of Unsecured Creditors. When the Debtor sought bankruptcy protection, it estimated assets and debts of more than $100 million. On Aug. 28, 2007, the Court approved Frederick Grede as the Debtor's Chapter 11 Trustee. Marc I. Fenton, Esq., at DLA Piper US LLP, and Vincent E. Lazar, Esq., at Jenner & Block LLP, represent the Chapter 11 Trustee. The Court confirmed the Fourth Amended Chapter 11 Plan of Liquidation for Sentinel on Dec. 15, 2008, which created a Liquidation Trust. The Plan became effective Dec. 17, 2008, and Mr. Grede was appointed Liquidation Trustee. SHALE-INLAND HOLDINGS: Moody's Cuts Secured Notes Rating to Caa1 ---------------------------------------------------------------- Moody's Investors Service changed Shale-Inland Holdings, LLC's outlook to negative from stable and downgraded the rating on the company's senior secured notes to Caa1 from B3. At the same time, Moody's affirmed the B3 corporate family rating and B3-PD probability of default rating. The change in outlook and the downgrade of the senior secured notes reflects Shale-Inland's recent weak operating results and weakened credit profile, which has increased the relative loss potential on the notes. The following ratings were affected in this rating action: Downgrades: $250 Million Senior Secured Notes due 2019, to Caa1(LGD4) from B3(LGD4) Outlook Actions: Changed To Negative From Stable Affirmations: Probability of Default Rating, Affirmed B3-PD Corporate Family Rating, Affirmed B3 Ratings Rationale Shale-Inland's B3 rating reflects its small size, elevated leverage, weak interest coverage, significant exposure to the cyclical downstream energy sector, the possibility of further debt financed acquisitions and the company's low profit margins, which are typical of the distribution industry. The ratings are supported by the company's exposure to MRO activity, long-term relationships with large and well-established customers as well as the countercyclical working capital needs and limited capital expenditure requirements of the distribution business model. The company also has an adequate liquidity profile with a low outstanding balance on its revolver and no near term debt maturities. Shale-Inland's recent operating results have been weak driven by competitive market conditions, severe winter weather, a reduced level of project activity, a less profitable sales mix and increased hiring and personnel costs as the company fills open executive management positions. As a result, Shale's revenues have declined by about 6.5% to $809 million and its adjusted EBITDA by approximately 47% to $26 million during the LTM period ended August 3, 2014 versus the prior year period. This has led to a significant deterioration in Shale-Inland's credit metrics, with its adjusted leverage ratio (Debt/EBITDA) rising to 11.8x from 6.5x and its interest coverage ratio ((EBITDA-CapEx)/Interest Expense) declining to 0.3x from 1.1x. Moody's expects the company's operating results to remain under pressure in the second half of the fiscal year (ending Feb. 1, 2015) since demand remains lackluster and stainless steel and aluminum prices have softened recently. However, the company is up against a very easy comparison versus the back half of last fiscal year when operating results were impacted by weak demand and severe winter weather. Therefore, Shale should produce improved second half operating results and adjusted EBITDA of about $35 million to $40 million for the fiscal year ended February 1, 2015 versus $32 million last fiscal year. This will enable Shale-Inland to substantially reduce its leverage ratio (Debt/EBITDA) to about 8.0x and modestly raise its interest coverage ratio (EBITDA- CapEx/Interest Expense) to about 0.4x. However, these metrics will remain weak for the company's rating. Shale-Inland's future pace of deleveraging will be dependent on its ability to grow EBITDA since the company had only $5 million of pre-payable debt in August 2014. The company should produce modestly improved operating results and credit metrics next fiscal year (ending January 31, 2016) as downstream and liquefied natural gas project activity begins to ramp up. Shale-Inland has an adequate liquidity profile with about $2 million of cash and $166 million of availability on its revolver, which had $5 million of borrowings and $2 million of letters of credit outstanding. The company has no debt maturities until March 2017. Moody's views the revolver size as sufficient relative to Shale's revenues and anticipate usage under the revolver to remain modest in the short term. The negative outlook reflects Shale's recent weak operating results and deteriorating credit metrics. The outlook could return to stable if operating results improve and result in substantially improved credit metrics. This would include the leverage ratio (Debt/EBITDA) declining to 4.5x and the interest coverage ratio (EBITDA-CapEx/Interest Expense) rising above1.5x. The ratings are not likely to experience upward pressure in the near term. However, Shale's ratings could experience upward pressure if the company reduces its financial leverage below 4.0x and consistently generates free cash flow of at least $50 million. Negative rating pressure could develop if Shale's leverage ratio remains above 4.5x or its interest coverage ratio is sustained below 1.5x, as measured by (EBITDA-CapEx)/Interest. A significant reduction in borrowing availability or liquidity could also result in a downgrade. The principal methodology used in this rating was Global Distribution & Supply Chain Services published in November 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Shale-Inland Holdings, LLC, headquartered in Houston, Texas, is a distributor and supplier of pipe, valves, fittings (PVF), related products and technical solutions to the energy and industrial sectors and a processor of stainless steel and aluminum products. The company operates in three segments: Pipe, Fitting, Flanges (PFF) (approximately 36% of LTM sales) is a distributor of pipe, fittings, flanges and other products primarily for the petrochemical, refining, mining and power generation industries; Valves and Automation (approximately 35% of LTM sales) is a distributor of manual and automated valve products and accessories for the petrochemical, refining, upstream and midstream oil & gas, power generation, mining, marine and other industrial end-markets; Fabrication & Distribution Services (F&DS) (approximately 29% of LTM sales) is a provider of processing, stamping, fabrication and distribution of stainless steel, aluminum and flat products serving the transportation, energy, petrochemical, food service and other industrial end-markets. The company operates out of approximately 46 branch locations throughout the United States and Canada and generated revenues of $809 million for the trailing twelve months ended August 3, 2014. SOURCE HOME: Seeks February Extension of Exclusive Filing Date -------------------------------------------------------------- Source Home Entertainment, LLC, et al., ask the U.S. Bankruptcy Court for the District of Delaware to extend the period by which they have exclusive right to file a Chapter 11 plan through and including Feb. 18, 2015, and the period by which they have exclusive right to solicit acceptances of that plan through and including April 21, 2015. The Debtors have filed a Chapter 11 plan of liquidation and an explanatory disclosure statement, which will allow the Debtors to wind down and distribute their assets to creditors in a timely manner. The Debtors, however, need more time to continue to work with their lenders and the Official Committee of Unsecured Creditors to reach a global agreement on the complex issues that are crucial to the confirmation of the Debtors' Plan, Ryan M. Bartley, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, tells the Court. Under the proposed plan, creditors holding priority claims will be paid in full. Also to receive full payments are bankruptcy professionals and creditors who have claims under a revolving credit agreement. Meanwhile, each general unsecured creditor will receive a beneficial interest in its pro rata share of the assets held in a liquidating trust. Interests in Source Home Entertainment will be canceled, according to the disclosure statement. The court will hold a hearing on Nov. 10 to consider approval of the disclosure statement. A hearing on the confirmation of the liquidating plan is scheduled for Dec. 18. A hearing to consider approval of the extension request is scheduled for Nov. 20, 2014, at 10:00 a.m. (ET). Objections are due Nov. 3. About Source Home Entertainment and Source Interlink Headquartered in Bonita Springs, Florida, Source Home Entertainment, LLC, manufactures front-end retail checkout displays and is a leading distributor of books, periodicals, and other printed material. Its distribution network spans over 32,500 retail locations in the U.S. and abroad. In the twelve months ended April 30, 2014, Source Home generated revenues totaling approximately $600 million on a consolidated basis. As of March 31, 2014, Source Home had assets (not including goodwill or intangibles) of $205 million and liabilities of approximately $290 million. Source Interlink Distribution, LLC disclosed $82,729,238 in assets and $104,521,951 in liabilities. Source Home, Source Interlink Manufacturing, LLC, and other affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-11553) on June 23, 2014, to sell their front-end retail display fixtures business to lenders, absent higher and better offers. The Debtors are winding down their books distribution business. The Debtors have tapped Kirkland & Ellis LLP as general bankruptcy and corporate counsel; Young Conaway Stargatt & Taylor, LLP, as co-counsel, FTI Consulting, Inc., as crisis and turnaround advisor; and Kurtzman Carson Consultants, LLC, as claims agent. Stephen Dube has been designated by the Debtors to act as chief restructuring officer and Joshua Korsower to act as chief financial officer. The United States Trustee for Region 3 appointed seven creditors to serve on the Official Committee of Unsecured Creditors. The Committee is represented by Lowenstein Sandler LLP, and Duane Morris LLP. The Committee tapped PricewaterhouseCoopers LLP as its financial advisor. SPECIALTY PRODUCTS: Nov. 14 Fixed as Proofs of Claim Deadline ------------------------------------------------------------- The U.S. Bankruptcy Court in Eastern District of Delaware has established Nov. 14, 2014, as the deadline for all persons and entities holding or asserting a claim against Specialty Products Holdings Corp., aka RPM, Inc., to file a formal proof of claim in the Debtor's case. Proofs of claim by governmental entities are due by Dec. 1, 2014. About Specialty Products Cleveland, Ohio-based Specialty Products Holdings Corp., aka RPM, Inc., is a wholly owned subsidiary of RPM International Inc. The Company is the holding company parent of Bondex International, Inc., and the direct or indirect parent of certain additional domestic and foreign subsidiaries. The Company claims to be a leading 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. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-11780) on May 31, 2010. Gregory M. Gordon, Esq., Dan B. Prieto, Esq., and Robert J. Jud, Esq., at Jones Day, serve as bankruptcy counsel. Daniel J. DeFranceschi, Esq., Zachary I. Shapiro, Esq., Paul N. Heath, Esq., and Tyler D. Semmelman, Esq., at Richards Layton & Finger, serve as co-counsel. Logan and Company is the Company's claims and notice agent. The Company estimated its assets and debts at $100 million to $500 million. The Company's affiliate, Bondex International, Inc., filed a separate Chapter 11 petition on May 31, 2010 (Case No. 10-11779), estimating its assets and debts at $100 million to $500 million. Specialty Products Holding Corp, together with Bondex International, Inc., are referred to as the Initial Debtors. Counsel to the Official Committee of Asbestos PI Claimants are Natalie D. Ramsey, Esq., and Mark A. Fink, Esq. of Montgomery, Mccracken, Walker & Rhoads, LLP, in Wilmington Delaware, and Mark B. Sheppard, Esq. of the firm's Philadelphia, Pennsylvania division. Counsel to the Future Claimants' Representative are James L. Patton, Jr., Esq., Edwin J. Harron, Esq., Edmon Morton, Esq., Sharon Zieg, Esq., and Erin Edwards, Esq. of Young Conaway Stargatt & Taylor LLP, in Wilmington, Delaware. Competing bankruptcy exit plans have been filed by the Initial Debtors, on one hand, and the Official Committee of Unsecured Creditors and the Future Claimants' Representative on the other. The Debtors' First Amended Joint Plan of Reorganization and the explanatory Disclosure Statement, dated Nov. 18, 2013, provides for an asbestos trust to be established and funded with cash to pay present and future asbestos-related claims. The trust will be funded by secured notes, issued by the Debtors and their ultimate parent, RPM International Inc. ("International"), and the amounts and terms of the notes will, with one exception, be determined by the final outcome or settlement of the litigation that will determine the asbestos claimants' rights in the chapter 11 cases. The one exception is that the notes will provide for an aggregate initial nonrefundable payment of $125 million to the asbestos trust irrespective of the outcome of any litigation. In short, the Debtors and International have committed to pay to asbestos claimants the maximum amount to which they are entitled based on the applicable judgments or rulings in the litigation that will determine the extent of the claimants' rights in the chapter 11 cases, and to make comparable payments to other similarly situated creditors. The PI Committee and the FCR's Third Amended Plan, filed Oct. 15, 2013, provides that: (i) SPHC will be separated from non-Debtor direct or indirect parent Bondex International; (ii) Reorganized SPHC will be managed and/or sold for the benefit of holders of all Claims that are not paid in Cash, subordinated, cancelled or otherwise treated pursuant to the Plan; (iii) all of SPHC's causes of action will survive; (iv) Asbestos PI Trust Claims against SPHC will be channeled to an Asbestos PI Trust; and (v) current SPHC equity interests will be canceled, annulled, and extinguished. On May 20, 2013, the Bankruptcy Court entered an order estimating the amount of the Debtors' asbestos liabilities, and a related memorandum opinion in support of the estimation order. The Bankruptcy Court estimated the current and future asbestos claims associated with Bondex International, Inc. and Specialty Products Holding at approximately $1.17 billion. The estimation hearing represents one step in the legal process in helping to determine the amount of potential funding for a 524(g) asbestos trust. On Aug. 31, 2014, Republic Powdered Metals, Inc., and affiliate NMBFiL, Inc. -- the New Debtors -- sought Chapter 11 protection (Bankr. D. Del. Case No. 14-12028). The New Debtors are indirect subsidiaries of Bondex International and affiliates of the Initial Debtors. 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. Republic estimated assets of $10 million to $50 million and debt of less than $10 million as of the bankruptcy filing. The New Debtors were granted, on Sept. 3, 2014, 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. STHI HOLDINGS: Synergy Health Deal No Impact on Moody's 'B2' CFR ---------------------------------------------------------------- Moody's Investors Service says contract sterilization service provider STHI Holdings Corporation, the parent company of Sterigenics Holdings, Inc. (collectively, "Sterigenics"), will face increasing competitive pressure over the medium to long term following the recently announced acquisition of UK-based Synergy Health (unrated) by US-based STERIS Corporation (unrated). STHI's ratings, including its B2 Corporate Family Rating and negative outlook are unaffected at this time. The principal methodology used in this rating was the Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Sterigenics, headquartered in Oak Brook, IL, is a provider of contract sterilization and ionization services for medical devices, food safety, and advanced materials applications. STHI acquired Nordion, Inc. in 2014 for approximately $826 million. Headquartered in Ottawa, Nordion is a leading supplier of radioactive isotope products and services used for the prevention, diagnosis and treatment of disease. On a combined basis, pro forma revenues totaled $552 million in 2013. TITAN INTERNATIONAL: Moody's Puts 'B1' CFR for Downgrade -------------------------------------------------------- Moody's Investors Service has placed Titan International, Inc.'s ratings, including its B1 corporate family rating, B1-PD probability of default rating and B1 senior secured notes rating under review for downgrade. The speculative grade liquidity rating is unchanged at SGL-2. The review for downgrade was prompted by Titan CEO's announcement that the cyclical downturn in its primary end-market industry segments will minimally last through 2015 and perhaps into 2016. The current negative outlook has been changed to under review for downgrade. Ratings placed under review for downgrade: Corporate Family Rating, Under Review for Downgrade, currently B1 Probability of Default Rating, Under Review for Downgrade, currently B1-PD $400 million senior secured notes due 2020, Under Review for Downgrade, currently B1 (LGD-3) Outlook, Under Review for Downgrade Ratings unchanged: Speculative Grade Liquidity Rating, SGL-2 Ratings Rationale The review for downgrade results from the expectation that Titan's operating performance and credit metrics over the next twelve to eighteen months will be weaker than anticipated. Titan's CEO attributed the company's current business outlook to a decline in demand for new equipment due to large agricultural machinery being in a cyclical downturn. More specifically, the company commented that "big" agriculture could be down 20 percent or more during 2015, the company's mining side of the business will be flat and the construction business will be slow to flat. Titan's debt/EBITDA for the last twelve months ended June 30, 2014, on a Moody's adjusted basis, stands at approximately 4.6x, within the B1 range but at risk of softening due to the aforementioned business outlook. During the company's outlook comments, 2015 revenue and EBITDA guidance was not provided but softness in its primary end-markets was cited. The review will focus on the company's operating performance during the next reported quarter including a reassessment of the company's short-term liquidity profile and expectations for the intermediate term. Moody's note that the company has taken actions to reduce costs and better align its business with current industry conditions. Nevertheless, the degree with which these process improvements and cost reductions can address the current cyclical downturn in the company's end-markets will be evaluated during the ratings review. The principal methodology used in this rating was Global Manufacturing Companies published in July 2014. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Titan, headquartered in Quincy, IL is a manufacturer of wheels, tires and assemblies for off-highway vehicles serving the agricultural, earthmoving/construction and consumer end markets. Last twelve months ended June 30, 2014 revenues totaled $2.1 billion. TLC HEALTH: Deadline to Challenge Lenders' Liens Moved to Oct. 27 ----------------------------------------------------------------- U.S. Bankruptcy Judge Carl Bucki approved an agreement to extend the deadline for the official committee of unsecured creditors to challenge the liens of TLC Health Network's secured lenders. The agreement allows the unsecured creditors' committee to file an action challenging the liens of Brooks Memorial Hospital and the University of Pittsburgh Medical Center until October 27. The committee will not conduct any further investigation until the Oct. 27 deadline but it may pursue pending requests for documents made during the examinations conducted in 2004. 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. TPC GROUP: S&P Retains 'B' Rating Over $50MM Secured Notes Add-On ----------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on Houston-based TPC Group Inc. are unchanged following TPC's proposed $50 million add-on to its existing $755 million senior secured notes. S&P has maintained its 'B' issue-level rating and '4' recovery rating on the senior secured notes, indicating S&P's expectation of average (30% to 50%) recovery in the event of a payment default. S&P expects that the company will use proceeds from the add-on offering to pay down outstanding revolver borrowings and for general corporate purposes. All of S&P's other existing ratings on the company, including the 'B' corporate credit rating, remain unchanged. The outlook is stable. The ratings on TPC Group reflect its narrow product range of commodity compounds, limited customer and geographic diversity, cyclicality in its key markets, modest EBITDA margins, and high level of debt leverage (adjusted debt to EBITDA was about 6x at June 2014). These risk factors are partially offset by the company's favorable competitive position and S&P's expectation that the on-purpose isobutylene plant (which is expected to come online in the next few months) will lead to a step change in the company's EBITDA. Standard & Poor's characterizes TPC Group's business risk profile as "weak" and its financial risk profile as "highly leveraged." Ratings List TPC Group Inc. Corporate Credit Rating B/Stable/-- Ratings Unchanged TPC Group Inc. $805 Mil. Senior Secured Notes B Recovery Rating 4 TRIKO LLC: Taps Snell & Wilmer as General Insolvency Counsel ------------------------------------------------------------ TriKo LLC asks the U.S. Bankruptcy Court for the Central District of California for permission to employ Snell & Wilmer LLP as its general insolvency counsel. The firm will: l) advise and assist the Debtor in evaluating this Chapter 11 case and complying with the requirements of the Bankruptcy Code and the Office of the United States Trustee; 2) advise the Debtor regarding matters of bankruptcy law, including the rights and remedies of the Debtor with regard to the estate, its assets and the claims of creditors; 3) consult with the Debtor concerning the administration of this case; 4) make any court appearances on behalf of and to represent the Debtor in any proceedings or hearings in the United States Bankruptcy Court for the Central District of California involving matters of bankruptcy law and in any other court where the rights of the Debtor may be litigated or affected; 5) conduct examinations of witnesses, claimants or adverse parties and to prepare and assist in the preparation of reports, accounts and pleadings related to this Chapter 11 case; 6) assist the Debtor in the final negotiation, formulation, confirmation and implementation of a Chapter 11 plan; 7) advise the Debtor concerning the requirements of the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the Local Bankruptcy Rules and all other applicable rules affecting this proceeding; and 8) take such other action and perform such other services as the Debtor may require of the Firm in connection with this chapter 11 case. The firm proposes to render services to the Debtor at its regular hourly rates. The firm's California bankruptcy group who are expected to render services in this matter and their billing rates: Attorneys 2014 Hourly Rates --------- ----------------- Michael B. Reynolds, Esq. $605 Brett H. Ramsaur, Esq. $335 The firm says it may utilize other professionals in its California or other offices as needed to expedite and facilitate the handling of matters on behalf of the Debtor. These professionals will bill at their standard rates, which range between $150 and $700 per hour. The Debtor will not be charged for intra-firm travel or accommodation expenses incurred by the firm in connection with the services rendered by these professionals. The firm's regular practice of billing in increments of one-tenth of an hour will be followed in this case. According to the firm, its initial engagement agreement with the Debtor called for a prepetition retainer of $30,000, which was funded by the Debtor on Aug. 22, 2014. After it became apparent that the Debtor would need more time to negotiate a consensual settlement with lienholders and the potential purchaser of the Property, the Debtor elected to seek protection under Chapter 11. Accordingly, the Debtor augmented the firm's retainer by $40,000 on Sept. 17, 2014, plus an additional $1,7l7 two days later, on Sept. 19, 2014. Also on Sept. 19, 2014, three of the Debtor's members, Deanna Ko, Landry Ko and Fiona Ko, each provided the firm with $10,000 on behalf of the Debtor. On or about Sept. 22, 2014, shortly before filing the Debtor's bankruptcy petition, the firm drew down on the initial retainer to cover pre-petition fees and costs in the amount of $27,475. This left a total retainer account balance of $74,241 as of time the petition was filed on the afternoon of Sept. 22, 2014. Thus, at the time the petition was filed, the Debtor owed nothing to the Firm on account of work performed or costs incurred. Michael B. Reynolds, partner of the firm, assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: Michael B. Reynolds, Esq. Brett H. Ramsaur, Esq. SNELL & WILMER LLP Two California Plaza 350 South Grand Avenue, Suite 2600 Los Angeles, CA 90071-3406 Tel: 213-929-2500 Fax: 213-929-2525 Email: mrevnolds@swlaw.com bramsaur@swlaw.com About Triko LLC Triko, LLC, commenced Chapter 11 bankruptcy proceedings (Bankr. C.D. Cal. Case No. 14-28008) in Los Angeles on Sept. 22, 2014, to stop foreclosure of its property in Fullerton, California. The Debtor estimated both assets and liabilities between $10 million and $50 million. TRINITY INDUSTRIES: FHA Demands New Testing on Guardrails --------------------------------------------------------- Katy Stech, writing for The Wall Street Journal, reported that officials of the Federal Highway Administration, a unit of the U.S. Transportation Department, are demanding that Trinity Industries Inc. conduct new crash tests for its ET-Plus guardrail system following a record-setting jury verdict in a lawsuit that questioned the product?s safety. According to the report, the FHA sent a letter that gives Trinity Industries an Oct. 31 deadline to explain how they plan to runs new tests on the ET-Plus model, which was redesigned in 2005 and is alleged to malfunction during collisions, spearing incoming vehicles. As previously reported by The Troubled Company Reporter, citing Daily Bankruptcy Review, a federal jury in Texas has awarded $175 million in a trial brought by a whistleblower who questioned the safety of thousands of highway guardrail end caps on the nation's roads. After deliberating for just several hours in U.S. District Court in Marshall, Texas, a jury sided with whistleblower Josh Harman, finding Trinity Industries Inc. defrauded the federal government when it submitted claims tied to a modified guardrail system. About Trinity Industries Headquartered in Dallas, Texas, Trinity Industries Inc. (NYSE:TRN) -- http://www.trin.net/-- is a holding company of diversified industrial companies. Trinity manufactures and sells railcars and railcar parts, inland barges, concrete and aggregates, highway products, beams and girders used in highway construction, tank containers and structural wind towers. In addition, it leases railcars to its customers through a captive leasing business, Trinity Industries Leasing Company. Trinity has five business groups: Rail Group, Railcar Leasing and Management Services Group, Construction Products Group, Inland Barge Group and the Energy Equipment Group. * * * The Troubled Company Reporter, on Sep. 24, 2014, reported that Moody's Investors Service affirmed all debt ratings of Trinity Industries, Inc., including the Ba1 Corporate Family Rating, and changed the rating outlook to positive from stable. Moody's also assigned a Ba1 (LGD4) rating to Trinity's new issue of $300 million of unsecured notes. The proceeds of the new notes will be used initially to bolster its cash reserves following the recent acquisition of Meyer Steel Structures for about $600 million, which Trinity funded from cash. Moody's anticipates that the company will continue to acquire additional manufacturing companies to broaden the product offerings in its construction products and energy equipment groups to help reduce the still high concentration of its highly cyclical rail manufacturing segment. TRUMP ENTERTAINMENT: March 9 Set as Governmental Claims Bar Date ---------------------------------------------------------------- The U.S. Bankruptcy Court in Eastern District of Delaware has established March 9, 2014, as the deadline for all governmental entities to file proofs of claim in the bankruptcy case of Trump Entertainment Resorts Inc. Trump Entertainment Resorts Inc., owner of the Atlantic City Boardwalk casinos that bear the name of Donald Trump, returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-12103) on Sept. 9, 2014, with plans to shutter its casinos. TER and its affiliated debtors own and operate two casino hotels located in Atlantic City, New Jersey. TER said it will close the Trump Taj Mahal Casino Resort by Sept. 16, 2014, and, absent union concessions, the Trump Plaza Hotel and Casino by Nov. 13, 2104. The Debtors have sought an order authorizing the joint administration of their Chapter 11 cases and the consolidation thereof for procedural purposes only. Judge Kevin Gross presides over the Chapter 11 cases. The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as counsel; Stroock & Stroock & Lavan LLP, as co-counsel; Houlihan Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as noticing and claims agent. TER estimated $100 million to $500 million in assets as of the bankruptcy filing. The Debtors as of Sept. 9, 2014, owe $285.6 million in principal plus accrued but unpaid interest of $6.6 million under a first lien debt issued under their 2010 bankruptcy-exit plan. The Debtors also have trade debt in the amount of $13.5 million. TRUMP ENTERTAINMENT: Taj Mahal Casino Threatens to Close -------------------------------------------------------- Trump Entertainment Resorts Inc.'s Trump Taj Mahal has threatened to close on Nov. 13, 2014, if its demands wouldn't be met, Brian Pempus at Cardplayer.com reports. The Associated Press says that Trump Taj Mahal is seeking $175 million in state and local government assistance to help it stay afloat before billionaire Carl Icahn would agree to purchase the property and bail it out. Cardplayer.com relates that Trump Taj Mahal has also refused to take down the Trump from its name. As reported by the Troubled Company Reporter on Oct. 13, 2014, Wayne Parry at The Associated Press reported that Donald Trump and his daughter Ivanka, in a lawsuit against Trump Entertainment, are seeking to disassociate themselves from the Debtor and have their name stripped from the Trump Taj Mahal, and the Debtor itself, claiming that the Debtor let its two casinos fall into disrepair that it breached quality standards agreed to by both sides. A lawsuit from Donald Trump right now will hurt the bankruptcy process of Trump Entertainment, of which Mr. Trump reportedly still has a small percent, Cardplayer.com says, citing Trump Taj Mahal. About Trump Entertainment Resorts Trump Entertainment Resorts Inc., owner of the Atlantic City Boardwalk casinos that bear the name of Donald Trump, returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-12103) on Sept. 9, 2014, with plans to shutter its casinos. TER and its affiliated debtors own and operate two casino hotels located in Atlantic City, New Jersey. TER said it will close the Trump Taj Mahal Casino Resort by Sept. 16, 2014, and, absent union concessions, the Trump Plaza Hotel and Casino by Nov. 13, 2104. The Debtors have sought an order authorizing the joint administration of their Chapter 11 cases and the consolidation thereof for procedural purposes only. Judge Kevin Gross presides over the Chapter 11 cases. The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as counsel; Stroock & Stroock & Lavan LLP, as co-counsel; Houlihan Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as noticing and claims agent. TER estimated $100 million to $500 million in assets as of the bankruptcy filing. The Debtors as of Sept. 9, 2014, owe $285.6 million in principal plus accrued but unpaid interest of $6.6 million under a first lien debt issued under their 2010 bankruptcy-exit plan. The Debtors also have trade debt in the amount of $13.5 million. UNITEK GLOBAL: To File for Ch 11 Bankruptcy Before Nov. 11 ---------------------------------------------------------- UniTek Global Services, Inc., and its lenders, including affiliates of Littlejohn & Co. and New Mountain Capital have agreed to the terms of a comprehensive debt restructuring. The Restructuring will allow the Company to continue honoring its obligations and responsibilities to its employees, customers, and vendors in the ordinary course of business, while significantly reducing its debt, reorganizing other financial obligations, and creating a strong financial foundation for the Company's future. To implement the Restructuring, the Company intends to file before Nov. 11, 2014, a voluntary petition for a "Pre-Packaged" Chapter 11 Bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. In the filing, the Company plans to request a hearing to approve the Restructuring and to set an expedited schedule for the Company's emergence from Chapter 11. The terms of the Restructuring provide for a substantial reduction of secured debt through a debt-for-equity "swap" of over 40% as well as a substantial reduction in cash interest rate. In addition, the Lenders have agreed to advance up to $43 million of new capital to support the Company's recapitalization. All valid unsecured creditors' claims on UniTek and its subsidiaries will be assumed in the ordinary course of business and unimpaired. Concurrently, the Lenders, as well as UniTek's largest customer, DIRECTV, have entered into a Plan Support Agreement in support of the Restructuring. "We are pleased that the Company has taken steps to improve its financial profile. We value our relationship with UniTek and look forward to continuing our partnership," stated Dave Baker, Senior Vice President of DIRECTV. Upon completion of the Restructuring, UniTek will become a private company entirely owned by its Lenders, the largest of which have leading private equity practices, as well as deep relationships in the specialty contracting and fulfillment services industries. "We are very pleased to have the support of the Lenders in the steps we have taken to improve our balance sheet and, through it, the long-term health of our Company," said Rocky Romanella, Chief Executive Officer. "As a result of this Restructuring, we will be positioned as a financially sound competitor in the industries UniTek serves. We have taken steps to diminish the impact of this process on our vendors, customers and employees, and we intend to move forward as expeditiously as possible to complete the Restructuring." About UniTek Global Services UniTek Global Services, Inc., based in Blue Bell, Pennsylvania, provides fulfillment and infrastructure services to media and telecommunication companies in the United States and Canada. UniTek Global reported a net loss of $52.07 million on $471.93 million of revenues for the year ended Dec. 31, 2013, as compared with a net loss of $77.73 million on $437.59 million of revenues in 2012. The Company's balance sheet at March 29, 2014, showed $249.60 million in total assets, $257.33 million in total liabilities and a $7.72 million total stockholders' deficit. Bankruptcy Warning "An event of default under either of our credit facilities could result in, among other things, the acceleration and demand for payment of all the principal and interest due and the foreclosure on the collateral. As a result of such a default or action against collateral, we could be forced to enter into bankruptcy proceedings, which may result in a partial or complete loss of your investment," the Company said in its annual report for the year ended Dec. 31, 2013. * * * As reported by the TCR on Oct. 17, 2013, Standard & Poor's Ratings Services said it raised its corporate credit rating on Blue Bell, Pa.-based UniTek Global Services Inc. to 'B-' from 'CCC'. "The ratings upgrade to 'B-' reflects our belief that the company is no longer vulnerable and dependent on favorable developments to meet its financial commitments over the next few years," said Standard & Poor's credit analyst Michael Weinstein. The TCR reported on Oct. 10, 2014, that Moody's Investors Service downgraded UniTek Global Services, Inc.'s corporate family rating to Ca. The Ca corporate family rating reflects Moody's view that the forbearance agreement entered into with UniTek's lenders on August 8th would be considered a default under Moody's definition. UNIVISION NOTICIAS: Closing News Operation, To Lay Off 100 Staff ---------------------------------------------------------------- Frank Worley-Lopez at Panampost.com reports that Univision Noticias disclosed on Oct. 17, 2014, that it was closing its entire news operation at Channel 11, and letting go of roughly 100 workers. Panampost.com relates that Puerto Rico residents boycott Univision Noticias over the Channel 11 shutdown. According to the report, news of the decision to close went viral and there were calls for boycotts on all Univision products. VOYAGER FOUNDATION: S&P Assigns 'BB+' Rating on Revenue Bonds ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' rating to the Public Finance Authority, Wis.' charter school revenue bonds, tax-exempt series 2014A and taxable series 2014B, issued for the Voyager Foundation in Durham, N.C. In addition, S&P assigned its 'BB+' rating to the foundation's series 2012A bonds. The outlook is stable. "The rating reflects our view of the foundation and academy's below-average cash on hand for the rating category and negative operations, as well as the academy's good demand profile, with near-capacity enrollment and a wait list of more than 100% of enrollment," said Standard & Poor's credit analyst Carlotta Mills. The 2012A debt was used to purchase the elementary and high school and currently has an outstanding balance of $15.8 million. The series 2014 debt will refund $8.0 million in new market tax credits that were used to purchase the middle school, refund a $600,000 loan, fund a debt service reserve of $647,000, and pay for issuance costs. WILSON COUNTY MEMORIAL: S&P Raises Rating on 2003 GO Bonds to 'BB' ------------------------------------------------------------------ Standard & Poor's Ratings Services raised its underlying rating (SPUR) to 'BB' from 'B' on Wilson County Memorial Hospital, Texas' (doing business as Connally Memorial Medical Center) series 2003 general obligation (GO) bonds. The outlook is stable. "The raised rating reflects our view of the district's sustained improved financial metrics in fiscal 2013, through 11 months of fiscal 2014, and budgeted for fiscal 2015," said Standard & Poor's credit analyst Karl Propst. The rating remains speculative grade due to S&P's view of the district's historically volatile patient volumes coupled with the inherent vulnerabilities associated with the medical center's small revenue base and rural location. YELLOWSTONE MOUNTAIN: Founder's Wife Sued Over Yacht 'Piano Bar' ---------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that Timothy Blixseth's current wife, Jessica Blixseth, is the latest target of lawsuits by creditors of the bankrupt Yellowstone Mountain Club LLC after the creditors' trust sued Ms. Blixseth for being a recipient of the 156-foot yacht "Piano Bar," which, according to creditors, was a fraudulent transfer from Mr. Blixseth. The report said the complaint said the couple "reportedly continues to use and enjoy" the vessel to this day and asked the judge to enjoin Ms. Blixseth from transferring the yacht until the suit is resolved. The new suit is Glasser v. Blixseth, 14-cv-01576, U.S. District Court, Western District of Washington (Seattle). About Yellowstone Mountain Located near Big Sky, Montana, Yellowstone Mountain Club LLC -- http://www.theyellowstoneclub.com/-- is a private golf and ski community with more than 350 members, including Bill Gates and Dan Quayle. The Company was founded in 1999. Yellowstone Club and its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Montana, Case No. 08-61570) on Nov. 10, 2008. The Company's owner affiliate, Edra D. Blixseth, filed a separate Chapter 11 petition on March 27, 2009 (Case No. 09-60452). Attorneys at Bullivant Houser Bailey PC and Bekkedahl & Green PLLC represented Yellowstone. The Debtors hired FTI Consulting Inc. and Ronald Greenspan as CRO. The official committee of unsecured creditors were represented by Parsons, Behle and Latimer; and James H. Cossitt, Esq., as counsel. Credit Suisse, the prepetition first lien lender, was represented by Skadden, Arps, Slate, Meagher & Flom. In June 2009, the Bankruptcy Court entered an order confirming Yellowstone's Chapter 11 Plan. Pursuant to the Plan, CrossHarbor Capital Partners LLC acquired equity ownership in the reorganized Club for $115 million. Marc S. Kirschner, Esq., was appointed the Trustee of the Yellowstone Club Liquidating Trust created under the Plan. YOSHI'S SAN FRANCISCO: Jazz Club & Restaurant Renamed as Addition ----------------------------------------------------------------- Meredith May, staff writer at the San Francisco Chronicle, reports that the Yoshi's San Francisco, LLC the jazz club and Japanese restaurant has been renamed the Addition. The San Francisco Chronicle relates that Peter Williams, former director of Yoshi's Oakland who will handle music programming for the 28,000-square-foot venue, said that the Yoshi's sign will be replaced with a New Addition sign on Nov. 1, 2014. Emma Silvers at Sfweekly.com reports that six months after the Company filed for Chapter 11 bankruptcy, new owners Fillmore Live Entertainment Group, LLC, said that they had won talks to take over the venue. According to the San Francisco Chronicle, the new ownership group, which was created in June 2014 under the direction of managing partner Michael Johnson, took over on July 1, 2014. About Yoshi's San Francisco An involuntary Chapter 11 bankruptcy petition (Bankr. N.D. Calif. Case No. 12-49432) was filed on Nov. 28, 2012, against Yoshi's San Francisco, aka Yoshi's San Francisco LLC, an upscale nightclub, music venue, and Japanese restaurant located in Oakland. The alleged creditors are Yoshi's Japanese Restaurant, allegedly owed $1.28 million; Apex Refrigeration Corp., owed $504; and East Bay Restaurant Supply Inc., owed $2,707. Judge Roger L. Efremsky oversees the case, taking over from Judge M. Elaine Hammond. Scott H. McNutt, Esq., and Shane J. Moses, Esq., at McNutt Law Group, represent the Debtor as counsel. YSF opened its doors in December 2007. The project was part of a partnership involving the City and County of San Francisco and a real estate developer, Fillmore Development Commercial, LLC. YSF is a California limited liability company with two members, both of which are corporate entities. The majority member is Yoshi's Fillmore, LLC, of which Yoshi's Japanese Restaurant in Oakland is the principal member and manager. The minority member is Fillmore Jazz Club, LLC, a group of investors managed by Michael Johnson, who also manages the developer, FDC. There is a provision in the YSF operating agreement that requires unanimous agreement to take certain actions that have a permanent effect on the company such as the filing of a voluntary Chapter 11 restructuring. This predictably led to acrimony and gridlock, and prevented YSF management from taking what it believed were the those actions necessary in the face of the company's continued financial situation. On Oct. 29, 2012, FDC filed a lawsuit in state court seeking appointment of a receiver to take over control of YSF. YSF recognized that this would be ultimately unproductive, because it would be highly disruptive and potentially lead to loss of the Yoshi's name, as well as the manager who has been the driving force behind Yoshi's for 40 years. YSF determined that the only option to allow the continued operation of Yoshi's and protect the interests of all creditors was for creditors of Yoshi's to file an involuntary bankruptcy petition against YSF. Fillmore is represented by Sara L. Chenetz, Esq., at Blank Rome LLP. * Mintz Levin's Bae Discusses 3rd Party Protections in Tort Cases ----------------------------------------------------------------- John Bae, Esq., at Mintz Levin, discussed third-party protections in mass tort Chapter 11 cases in an article available at http://is.gd/ZpgQmf "A defendant facing thousands of mass tort lawsuits in federal and state courts throughout the country often will seek to address the litigation by seeking Chapter 11 relief under the Bankruptcy Code," Mr. Bae wrote. He also noted that the mass tort debtor's ability to propose a confirmable plan will largely be driven by its ability to provide meaningful distribution to the tort victims. The article was originally published in the New York Law Journal on October 1, 2014. * Bingham McCutchen Law Firm Weighs Options ------------------------------------------- Jennifer Smith, writing for The Wall Street Journal, reported that struggling Boston law firm Bingham McCutchen LLP is appealing to its partners to stick around and says its profitability is improving after a tough 18 months marked by lawyer exits and sliding revenue. According to the report, keeping more partners from leaving is crucial for the firm as Bingham is attempting to rebound from a 12.6% plunge in revenue last year, after some lucrative litigation work wound down, and it has been in discussions about a possible merger with larger rival Morgan, Lewis & Bockius LLP as a way out of its troubles. * John Harms Joins Huron Consulting Group as Managing Director -------------------------------------------------------------- Huron Consulting Group, a provider of business consulting services, on Oct. 22 disclosed that John D. Harms has joined the Company as a managing director within its Business Advisory practice. "Economic uncertainty and marketplace challenges continue to drive demand for business advisory services in a variety of industries," said John DiDonato, managing director and Huron Business Advisory leader. "John has a distinguished track record helping Fortune 500 and middle-market clients address issues involving strategic and operational planning, process excellence, reengineering and supply chain improvements. We are pleased to welcome John to Huron and are confident that he will bring value to our clients across industries." Mr. Harms has more than 25 years of experience and joins Huron from IBM Global Business Services where he was a Strategy and Transformation partner. He previously held senior management consulting roles with PricewaterhouseCoopers and Ernst & Young. At Huron, Mr. Harms will help clients optimize their operational and financial results across industries including manufacturing, aerospace, automotive, technology, electronics, retail, and consumer products and services. About Huron Business Advisory Huron Business Advisory resolves complex business issues and enhances value with a full suite of services for middle-market companies and larger businesses, including forensic investigations, transaction advisory, restructuring and turnaround, interim management, capital raising, operational improvement, and valuation. Its senior-level team members have vast experience in a range of industries, with many serving as C- level executives, who quickly analyze a business situation and apply our knowledge to finding a workable solution. About Huron Consulting Group Huron Consulting Group -- http://www.huronconsultinggroup.com-- helps clients in diverse industries improve performance, transform the enterprise, reduce costs, leverage technology, process and review large amounts of complex data, address regulatory changes, recover from distress and stimulate growth. The Company's professionals employ their expertise in finance, operations, strategy and technology to provide its clients with specialized analyses and customized advice and solutions that are tailored to address each client's particular challenges and opportunities to deliver sustainable and measurable results. The Company provides consulting services to a wide variety of both financially sound and distressed organizations, including healthcare organizations, leading academic institutions, Fortune 500 companies, governmental entities and law firms. Huron has worked with more than 425 health systems, hospitals, and academic medical centers; more than 400 corporate general counsel; and more than 350 universities and research institutions. * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In re Beef and Britchens II, LLC Bankr. D. Ariz. Case No. 14-15527 Chapter 11 Petition filed October 14, 2014 See http://bankrupt.com/misc/azb14-15527.pdf represented by: Dean M. Dinner, Esq. NUSSBAUM GILLIS & DINNER, P.C. E-mail: ddinner@ngdlaw.com In re Jimmy G. Fernandez and Susan W. Fernandez Bankr. D. Ariz. Case No. 14-15530 Chapter 11 Petition filed October 14, 2014 In re Erween Epino and Marjorie Miana Epino Bankr. C.D. Cal. Case No. 14-29453 Chapter 11 Petition filed October 14, 2014 In re Mario Silverio Granados and Emma Lazaro-Vanegas Bankr. D. Nev. Case No. 14-16872 Chapter 11 Petition filed October 14, 2014 In re Gale Ann Wallach Bankr. E.D.N.Y. Case No. 14-74650 Chapter 11 Petition filed October 14, 2014 In re Victoria Teodorescu Bankr. S.D.N.Y. Case No. 14-23450 Chapter 11 Petition filed October 14, 2014 In re Dimple, LLC Bankr. E.D.N.C. Case No. 14-05962 Chapter 11 Petition filed October 14, 2014 See http://bankrupt.com/misc/nceb14-05962.pdf represented by: John G. Rhyne, Esq. E-mail: johnrhyne@johnrhynelaw.com In re Annie's Bakery, Inc. Bankr. W.D.N.C. Case No. 14-10554 Chapter 11 Petition filed October 14, 2014 See http://bankrupt.com/misc/ncwb14-10554.pdf represented by: D. Rodney Kight, Jr., Esq. KIGHT LAW OFFICE PC E-mail: info@kightlaw.com In re Graphics 2000 Bankr. D. Nev. Case No. 14-16879 Chapter 11 Petition filed October 14, 2014 See http://bankrupt.com/misc/nvb14-16879.pdf represented by: Jonathan B. Goldsmith, Esq. E-mail: jonathan@vegaslawsite.com In re Vicente Calderon Rodriguez and Elizabeth Alicea Aponte Bankr. D.P.R. Case No. 14-08446 Chapter 11 Petition filed October 14, 2014 In re William G. Dickie andBarbara G. Dickie Bankr. E.D. Tex. Case No. 14-42197 Chapter 11 Petition filed October 14, 2014 In re Coucoon Signature Salon & Spa LLC Bankr. E.D. Va. Case No. 14-73726 Chapter 11 Petition filed October 14, 2014 See http://bankrupt.com/misc/vaeb14-73726.pdf represented by: Barry R. Koch, Esq. INMAN & STRICKLER, P.L.C. E-mail: bkoch@inmanstrickler.com In re S & L Printing and Mailing Inc. Bankr. D. Ariz. Case No. 14-15542 Chapter 11 Petition filed October 15, 2014 See http://bankrupt.com/misc/azb14-15542.pdf represented by: Don C. Fletcher, Esq. LAKE AND COBB E-mail: dfletcher@lakeandcobb.com In re Smith Heavy Industrial Transit Corp Bankr. C.D. Cal. Case No. 14-14690 Chapter 11 Petition filed October 15, 2014 See http://bankrupt.com/misc/cacb14-14690.pdf Filed Pro Se In re Susan Marie Glines-Thompson Bankr. E.D. Cal. Case No. 14-30248 Chapter 11 Petition filed October 15, 2014 In re Hossein Panagiotis Zavvari Bankr. N.D. Cal. Case No. 14-31496 Chapter 11 Petition filed October 15, 2014 In re Thanh Van Do Bankr. N.D. Cal. Case No. 14-54175 Chapter 11 Petition filed October 15, 2014 In re One Grace, LLC Bankr. S.D. Ind. Case No. 14-09568 Chapter 11 Petition filed October 15, 2014 See http://bankrupt.com/misc/insb14-09568.pdf represented by: KC Cohen, Esq. KC COHEN, LAWYER, P.C. E-mail: kc@esoft-legal.com In re Tri-State Health & Wellness Medical Care Center, P.C. Bankr. D.N.J. Case No. 14-31002 Chapter 11 Petition filed October 15, 2014 See http://bankrupt.com/misc/njb14-31002.pdf represented by: Alla Kachan, Esq. LAW OFFICES OF ALLA KACHAN, P.C. E-mail: alla@kachanlaw.com In re Valgir, Inc. Bankr. D.N.J. Case No. 14-31038 Chapter 11 Petition filed October 15, 2014 See http://bankrupt.com/misc/njb14-31038.pdf represented by: Kenneth J. Rosellini, Esq. E-mail: kennethrosellini@gmail.com In re David W. King, Jr. Bankr. E.D.N.C. Case No. 14-06010 Chapter 11 Petition filed October 15, 2014 In re Iglesia Cristiana Senderos De La Verdad Inc. Bankr. D.P.R. Case No. 14-08478 Chapter 11 Petition filed October 15, 2014 See http://bankrupt.com/misc/prb14-08478.pdf represented by: Alberto O. Lozada Colon, Esq. BUFETE LOZADA COLON E-mail: lozada1954@hotmail.com In re DWheeler, Inc. dba Moore's Hardware Bankr. S.D. W. Va. Case No. 14-30406 Chapter 11 Petition filed October 15, 2014 See http://bankrupt.com/misc/wvsb14-30406.pdf represented by: Mitchell Lee Klein, Esq. KLEIN LAW OFFICE E-mail: swhittington@kleinandsheridan.com In re Martin J. Baltazar Bankr. D. Nev. Case No. 14-16976 Chapter 11 Petition filed October 16, 2014 In re Francis Ohio Properties, LLC Bankr. N.D. Ohio Case No. 14-52734 Chapter 11 Petition filed October 16, 2014 See http://bankrupt.com/misc/ohnb14-52734.pdf represented by: David A Mucklow, Esq. E-mail: davidamucklow@yahoo.com In re 831 Chestnut, LLC Bankr. M.D. Pa. Case No. 14-04814 Chapter 11 Petition filed October 16, 2014 See http://bankrupt.com/misc/pamb14-04814.pdf represented by: Markian R. Slobodian, Esq. LAW OFFICES OF MARKIAN R. SLOBODIAN E-mail: law.ms@usa.net In re Benjamin Scott Coffey and Katy Elizabeth Coffey Bankr. E.D. Tenn. Case No. 14-14687 Chapter 11 Petition filed October 16, 2014 In re Osondu Ibom Bankr. S.D.N.Y. Case No. 14-12915 Chapter 11 Petition filed October 15, 2014 In re Consumer's Discount Wines and Liquors, Inc. Bankr. S.D.N.Y. Case No. 14-37085 Chapter 11 Petition filed October 15, 2014 See http://bankrupt.com/misc/nysb14-37085.pdf represented by: Thomas Genova, Esq. GENOVA & MALIN, ATTORNEYS E-mail: genmallaw@optonline.net In re Kellee Patricia Bergendahl Bankr. C.D. Cal. Case No. 14-16179 Chapter 11 Petition filed October 17, 2014 In re Ebrahim K Nakhjavani and Charlotte Nakhjavani Bankr. C.D. Cal. Case No. 14-16186 Chapter 11 Petition filed October 17, 2014 In re Martha J. Castro Bankr. C.D. Cal. Case No. 14-14734 Chapter 11 Petition filed October 17, 2014 In re Unghwan Choi Bankr. C.D. Cal. Case No. 14-29665 Chapter 11 Petition filed October 17, 2014 In re Linda K. Campbell Bankr. N.D. Cal. Case No. 14-54238 Chapter 11 Petition filed October 17, 2014 In re Steven Al Weil Bankr. D. Conn. Case No. 14-51591 Chapter 11 Petition filed October 17, 2014 In re Shirley Varghese Bankr. S.D. Fla. Case No. 14-33166 Chapter 11 Petition filed October 17, 2014 In re James Anthony Deal and Margaret V. Deal Bankr. S.D. Ga. Case No. 14-50778 Chapter 11 Petition filed October 17, 2014 In re Robert E Mayhew Bankr. E.D.N.C. Case No. 14-06053 Chapter 11 Petition filed October 17, 2014 In re Norman Edward McMahon Bankr. E.D. Pa. Case No. 14-18302 Chapter 11 Petition filed October 17, 2014 In re P. John Sopensky Bankr. M.D. Pa. Case No. 14-04823 Chapter 11 Petition filed October 17, 2014 In re 201-221 North 67th Street, LLC Bankr. M.D. Pa. Case No. 14-04828 Chapter 11 Petition filed October 17, 2014 See http://bankrupt.com/misc/pamb14-04828.pdf represented by: Markian R Slobodian, Esq. LAW OFFICES OF MARKIAN R. SLOBODIAN E-mail: law.ms@usa.net In re George Thomas Bikas Bankr. D. S.C. Case No. 14-05912 Chapter 11 Petition filed October 17, 2014 In re Bill V. Bill V. Way, D.O., PA, DO aka Dermatology Institute Bankr. N.D. Tex. Case No. 14-35023 Chapter 11 Petition filed October 17, 2014 See http://bankrupt.com/misc/txnb14-35023.pdf represented by: Areya Holder, Esq. HOLDER LAW E-mail: areya@holderlawpc.com In re BaseNet, LLC Bankr. C.D. Cal. Case No. 14-14742 Chapter 11 Petition filed October 18, 2014 See http://bankrupt.com/misc/cacb14-14742.pdf represented by: John D. Faucher, Esq. FAUCHER & ASSOCIATES E-mail: jdf@johndfaucher.com In re Urban Renaissance Management, LLC Bankr. D. Md. Case No. 14-26082 Chapter 11 Petition filed October 19, 2014 See http://bankrupt.com/misc/mdb14-26082.pdf represented by: James L. Wiggins, Esq. OFFICE OF JAMES L. WIGGINS E-mail: jlwigginsesq@verizon.net In re Samuel E. Wyly Bankr. N.D. Tex. Case No. 14-35043 Chapter 11 Petition filed October 19, 2014 In re Fosters Water Treatment, LLC Bankr. N.D. Ala. Case No. 14-71829 Chapter 11 Petition filed October 20, 2014 See http://bankrupt.com/misc/alnb14-71829.pdf represented by: Harry P. Long, Esq. LAW OFFICES OF HARRY P. LONG, LLC E-mail: hlonglegal@aol.com In re Sergio Antonucci Bankr. C.D. Cal. Case No. 14-16213 Chapter 11 Petition filed October 20, 2014 In re Jihad Albasha and Bouchra A Abdallah Bankr. N.D. Cal. Case No. 14-44232 Chapter 11 Petition filed October 20, 2014 In re 22 Saulsbury, LLC Bankr. D. Del. Case No. 14-12381 Chapter 11 Petition filed October 20, 2014 See http://bankrupt.com/misc/deb14-12381.pdf represented by: Ronald S. Gellert, Esq. GELLERT SCALI BUSENKELL & BROWN, LLC E-mail: rgellert@gsbblaw.com In re My Honey Enterprise, Inc. Bankr. M.D. Fla. Case No. 14-05164 Chapter 11 Petition filed October 20, 2014 See http://bankrupt.com/misc/flmb14-05164.pdf represented by: Taylor J. King, Esq. LAW OFFICES OF MICKLER & MICKLER E-mail: tjking@planlaw.com In re Bay Fabricare Cleaners & Laundry, Inc. Bankr. M.D. Fla. Case No. 14-12273 Chapter 11 Petition filed October 20, 2014 See http://bankrupt.com/misc/flmb14-12273.pdf represented by: John E. Kassos, Esq. JOHN E KASSOS, PA E-mail: jekpa@aol.com In re James E. Smallwood and Bobbi J. Smallwood Bankr. S.D. Ind. Case No. 14-92124 Chapter 11 Petition filed October 20, 2014 In re Ciao Italian Kitchen, LLC fdba Ciao Italian Kitchen 2, LLC Bankr. D. Kans. Case No. 14-12393 Chapter 11 Petition filed October 20, 2014 See http://bankrupt.com/misc/ksb14-12393.pdf represented by: J. Michael Morris, Esq. KLENDA AUSTERMAN, LLC E-mail: jmmorris@klendalaw.com In re Care Tec Specialty Nursing, LLC Bankr. W.D. La. Case No. 14-51308 Chapter 11 Petition filed October 20, 2014 See http://bankrupt.com/misc/lawb14-51308.pdf represented by: Thomas E. St. Germain, Esq. WEINSTEIN LAW FIRM E-mail: ecf@weinlaw.com In re So. Maryland Transmissions, LLC Bankr. D. Md. Case No. 14-26159 Chapter 11 Petition filed October 20, 2014 See http://bankrupt.com/misc/mdb14-26159.pdf represented by: Shawn D. Bartley, Esq. SHAWN D. BARTLEY AND ASSOCIATES, LLC E-mail: shawn@bartley-law.com In re Larry H. Moore and Nancy C. Moore Bankr. E.D. Mich. Case No. 14-56389 Chapter 11 Petition filed October 20, 2014 In re Everardo Maca Bankr. D. Nev. Case No. 14-17017 Chapter 11 Petition filed October 20, 2014 In re Specialty Vehicle Solutions, LLC Bankr. D.N.J. Case No. 14-31329 Chapter 11 Petition filed October 20, 2014 See http://bankrupt.com/misc/njb14-31329.pdf represented by: Laurence R. Sheller, Esq. E-mail: laurence.sheller@verizon.net In re 40 Street Baking Inc. Bankr. S.D.N.Y. Case No. 14-12925 Chapter 11 Petition filed October 20, 2014 See http://bankrupt.com/misc/nysb14-12925.pdf represented by: Khagendra Gharti Chhetry, Esq. CHHETRY & ASSOCIATES, P.C. E-mail: khunu@aol.com In re Marcia Avery Bankr. S.D.N.Y. Case No. 14-37093 Chapter 11 Petition filed October 20, 2014 In re Barbara R. Mitchell Bankr. E.D.N.C. Case No. 14-06101 Chapter 11 Petition filed October 20, 2014 In re Douglas Leo Herdt Bankr. D. Wyo. Case No. 14-20775 Chapter 11 Petition filed October 20, 2014 In re New Zealand Forest Products USA, LLC Bankr. W.D. Wash. Case No. 14-45616 Chapter 11 Petition filed October 20, 2014 See http://bankrupt.com/misc/wawb14-45616.pdf represented by: Michael P. Harris, Esq. E-mail: mph4@quidnunc.net In re Robert L. Norvell Bankr. M.D. Fla. Case No. 14-05180 Chapter 11 Petition filed October 21, 2014 In re Patric Neumann Bankr. M.D. Fla. Case No. 14-12343 Chapter 11 Petition filed October 21, 2014 In re Thomas J. Risalvato, CPA, as Receiver for Elvin Cor Bankr. N.D. Fla. Case No. 14-31153 Chapter 11 Petition filed October 21, 2014 In re Rory O'Keith Holley, Sr. Bankr. E.D. La. Case No. 14-12821 Chapter 11 Petition filed October 21, 2014 In re Gregory B. Burkhardt Bankr. D. Md. Case No. 14-26190 Chapter 11 Petition filed October 21, 2014 In re Kenneth J. Smondrowski Bankr. D. Md. Case No. 14-26217 Chapter 11 Petition filed October 21, 2014 In re Harold P. Cook, III Bankr. D.N.J. Case No. 14-31388 Chapter 11 Petition filed October 21, 2014 In re Adrian P. George Bankr. D.N.J. Case No. 14-31432 Chapter 11 Petition filed October 21, 2014 In re SIF Foods, Inc. Bankr. E.D.N.Y. Case No. 14-45285 Chapter 11 Petition filed October 21, 2014 See http://bankrupt.com/misc/nyeb14-45285.pdf represented by: Michael L. Hurwitz, Esq. THE HURWITZ LAW FIRM, P.C. E-mail: mlh@thehurwitzlawfirm.com In re Robert Litwin Bankr. S.D.N.Y. Case No. 14-12933 Chapter 11 Petition filed October 21, 2014 In re Richard J. Baldwin and Barbara A. Baldwin Bankr. N.D. Ohio Case No. 14-33840 Chapter 11 Petition filed October 21, 2014 In re Jay Sandford Bankr. E.D. Pa. Case No. 14-18364 Chapter 11 Petition filed October 21, 2014 In re Walter Sandford Bankr. E.D. Pa. Case No. 14-18365 Chapter 11 Petition filed October 21, 2014 In re Hamid A. Munoz Mendez Bankr. D.P.R. Case No. 14-08642 Chapter 11 Petition filed October 21, 2014 In re Nogal Energy, L.L.C. Bankr. S.D. Tex. Case No. 14-50226 Chapter 11 Petition filed October 21, 2014 See http://bankrupt.com/misc/txsb14-50226.pdf represented by: Adolfo Campero, Jr., Esq. CAMPERO & ASSOCIATES, P.C. E-mail: acampero@camperolaw.com In re Triple T Coil Tubing, L.L.C. Bankr. S.D. Tex. Case No. 14-50227 Chapter 11 Petition filed October 21, 2014 See http://bankrupt.com/misc/txsb14-50227.pdf represented by: Adolfo Campero, Jr., Esq. CAMPERO & ASSOCIATES, P.C. E-mail: acampero@camperolaw.com In re Holy Convent Christian Ministry Inc Bankr. E.D. Wis. Case No. 14-32987 Chapter 11 Petition filed October 21, 2014 See http://bankrupt.com/misc/wieb14-32987.pdf Filed Pro Se ********* 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. 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