/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/141202.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, December 2, 2014, Vol. 18, No. 335 Headlines 7505 W. BRADLEY: Voluntary Chapter 11 Case Summary AC I INV: Has Until April 20, 2015 to Remove Actions AC I INV: Holliday Fenoglio OK'd as Exclusive Real Estate Broker AEREO INC: Seeks to Sell Assets, Proposes Feb. 17 Auction AEREO INC: Seeks to Employ Prime Clerk as Administrative Advisor AEREO INC: Can Hire Prime Clerk as Claims & Noticing Agent AEREO INC: Meeting to Form Creditors' Panel Set for Dec. 8 ALCO STORES: Closing to Affect Other Businesses in Maryville ALCO STORES: Obtains Final Approval of DIP Financing ALEXANDRA TRUST: Files Schedules of Assets and Liabilities ALSIP ACQUISITION: Hires Mintz Levin as Bankruptcy Counsel ALSIP ACQUISITION: Employs Pachulski as Local Delaware Counsel ALSIP ACQUISITION: Taps Sanabe as Investment Banker ALSIP ACQUISITION: Proposes DSI as Financial Advisor AMARILLO BIOSCIENCES: Reorganization Plan Effective ANTIOCH CO: McDermott Tries to Cut Scrapbooker's Malpractice Suit ARCHDIOCESE OF MILWAUKEE: Order Denying OneBeacon Relief Reversed ASLIP ACQUISITION: Dec. 4 Meeting Set to Form Creditors' Panel ASR 2401: Dec. 8 Hearing on Further Access to Cash Collateral AVELLINO LLC: Trustee to Auction Off Condo Units on Dec. 11 AXION INTERNATIONAL: CEO Issues Letter to Shareholders BERNARD L. MADOFF: Trustee Told to Tweak Mass Repleading Bid BERNARD L. MADOFF: Trustee, Investor Fight to Halt Class Actions CAESARS ENTERTAINMENT: Elliott Mgt. Wants Casino to Enter Ch. 11 CLOUDEEVA INC: Kaleta, Bartronics Object to Plan Disclosures CLOUDEEVA INC: Has Until Feb. 16 to Assume or Reject Leases CLOUDEEVA INC: Bartronics Asia's Bid for Case Dismissal Denied COCRYSTAL PHARMA: 2 Directors Quit Over Proposed RFS Merger COMMACK HOSPITALITY: Wins Confirmation of Reorganization Plan COUNTRY STONE: Files Schedules of Assets and Liabilities COUTURE HOTEL: Use of Lenders' Cash Collateral Has Final Approval CRUNCHIES FOOD: Taps Province Inc. & P. Kravitz as CRO DAHL'S FOOD: U.S. Trustee Forms Unsecured Creditors' Committee DALLAS ROADSTER: Hike of Roger Sanders Cap Facing Objections DBSI INC: Ex-President Faces SEC Admin Suit Over Ponzi Scheme DIGITAL DOMAIN: Access to Cash Collateral Expires Dec. 5 DYNAVOX INC: Ernst & Young to Provide Additional Services EAT AT JOE'S: Amends 2013 Fiscal Year Report EDUCATION MANAGEMENT: Grudge Brought Restructuring to Standstill ELBIT IMAGING: Unit's Shareholders Approve Restructuring Plan ENDEAVOUR INT'L: US Trustee to Continue '341 Meeting' Dec. 17 ENERGY DEVICES: Wants $950M Panel Antitrust Suit Revived ENERGY FUTURE: Tarrant Water Dist. Objects to Contract Rejection ERF WIRELESS: Issues 4.7 Million Common Shares EXIDE TECHNOLOGIES: Shareholders Seek Formation of Committee EXIDE TECHNOLOGIES: LA Says Vernon Plant Deal Moving Too Fast EYEWOOD DESIGN: Case Summary & 20 Largest Unsecured Creditors FFS DATA: IberiaBank Fights Release of Claims Over $10MM Loan FIRST CHICAGO BANK: Katten Settles Lowis & Gellen's Mal Claims FIRST MARINER: U.S. Trustee Objects to Liquidation Plan FL 6801: Associations Drop Support of Bid for Trustee FRED FULLER: Sale to Rymes Propane Has Court's Okay FRIENDLY ICE CREAM: Franchisee Closes Ohio Locations FUTURE HEALTHCARE: Has $194K Net Loss in Sept. 30 Quarter GARLOCK SEALING: Parent Says New Info Won't Alter Fibro Liability GENERAL MOTORS: Compens. Fund Claims Deadline Moved to Jan. 31 GENERAL MOTORS: Ignition Victims Can File Claims Until Jan. 31 GORDON WASHINGTON: Owns New Jersey House for Free HOUSTON REGIONAL: Plan Takes Effect as Appeal Proceeds IBI PALM BEACH: Island Breeze Cruise Boat Remain Idle at Port IMMUNOMEDICS INC: Incurs $12.4-Mil. Net Loss in Q3 INVERSIONES ALSACIA: Gets Court Approval to Hire Prime Clerk INVERCIONES ALSACIA: Assumes Plan Support Agreement IRISH BANK: Again Faces Opposition to Blackrock Loans Sale LIGHTSQUARED INC: Falcone Appealing Guaranty Claim Ruling MARION ENERGY: Secured Lender Urges Dismissal of Chapter 11 Case MILLER AUTO: Gets Final Approval of First Capital Financing MILLER AUTO: Sale of Assets to TPH, et al, Approved MINI MAXI: Public Auction Set for December 5 MONROE HOSPITAL: Wins Approval of Settlement Procedures NAUTILUS HOLDING: HSH, Citi Blast Ch. 11 Plan Disclosures NETWORK CN: Director Quits for Personal Reasons OPEN TEXT: S&P Affirms 'BB+' Corp. Credit Rating; Outlook Stable OVERLAND STORAGE: Shareholders OK Proposed Merger With Sphere 3D OW BUNKER: US Units Fight ING's Right to Collect on Bunker Bills PARADIGM EAST: Disclosure Statement Hearing Slated for Dec. 16 PELICAN CAY: Voluntary Chapter 11 Case Summary PHILLIPS INVESTMENT: Judge Approves Dec. 9 Auction for Property PHOENIX REALTY: Augusta Property to Be Sold at Dec. 5 Auction POLY PLANT PROJECT: U.S. Trustee Appoints Creditors' Committee QUEST SOLUTION: Appoints Scot Ross as Chief Financial Officer QUEST SOLUTION: Closes Deal With Bar Code Specialties RECYCLE SOLUTIONS: Can Use Cash Collateral to Make Payroll REICHHOLD HOLDINGS: Committee Balks at Kelly Garfinkle Hiring REVEL AC: Unsecured Creditors Say DIP Request Cheats Them REVEL AC: Owners Appeal Atlantic City Tax Sale RG STEEL: Forges Deal to Cut $84MM Linde Claim by Half SAMUEL WYLY: Church Says SEC, IRS Silencing Small Creditors SAMUEL WYLY: Family Members Decry Asset Freeze in 2nd Circuit SEEGRID CORP: Ch. 11 Confirmation Hearing Pushed to 2015 SEEGRID CORP: Creditors Sue Giant Eagle for Misconduct SHELDRAKE LOFTS: O'Connor Fraud Suit to Stay in Bankruptcy Court SPENDSMART NETWORKS: Discontinues Card Division STOCKTON, CA: Has Deal with Wells Fargo on Receivership SUMMIT STREET: Employs Wolfson Bolton as Counsel SUNRISE REAL ESTATE: Sold 20-Mil. Shares to Ace for $1.7MM T-L BRYWOOD: Has Access to RCG-KC's Cash Collateral Until Dec. 31 TESTA REALTY: Foreclosure Sale Set for December 18 THEOBLOCK SA: Queens Property to Be Sold at Dec. 5 Public Auction TREETOPS ACQUISITION: Files for Chapter 11 Bankruptcy Protection TROPICANA LAS VEGAS: Incurs $6.24-Mil. Net Loss for Third Quarter TRUMP ENTERTAINMENT: Donald Trump Wants to Get Back $147K Rent TRUMP ENTERTAINMENT: Taj Mahal May Run Out of Cash Mid-January TRUMP ENTERTAINMENT: City to Hold $24MM Tax Sale on Dec. 11 U.S. COAL: JAD Coal Seeks Approval of $2-Mil. Factoring Deal U.S. COAL: Extends Cash Collateral Order to Additional Debtors U.S. COAL: Affiliates Get Court Approval to Have Same Advisers VIGGLE INC: SIC III Buys 3,000 Preferred shares for $3 Million WEST TEXAS GUAR: Judge Approves Rejection of Toyota Motor Lease * DC Circ. Urged to Revive Challenges to Dodd-Frank, CFPB * Dangers Lurk for Investors in Health Care Turnarounds * Liner Picks Up 2 Bankruptcy Pros From Steptoe & Johnson * Robert Gerber to Retire from Southern District Bankruptcy Bench * Large Companies With Insolvent Balance Sheet ********* 7505 W. BRADLEY: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: 7505 W. Bradley Road, LLC 3287 N. Shepard Avenue Milwaukee, WI 53211 Case No.: 14-34387 Chapter 11 Petition Date: November 30, 2014 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Debtor's Counsel: Joseph W. Scherwenka, Esq. MARGERIE & SCHEWENKA 12970 W. Bluemound Road, Suite 105 Elm Grove, WI 53122 Tel: 414-254-5263 E-mail: joescherwenka@csowis.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Lidia Kolchinsky, member. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. AC I INV: Has Until April 20, 2015 to Remove Actions ---------------------------------------------------- U.S. Bankruptcy Judge Robert D. Drain extended until April 20, 2015, AC I INV Manahawkin LLC, et al.'s time to file notices to remove actions. About AC I Inv AC I Inv Manahawkin LLC, AC I Manahawkin Mezz LLC and AC I Manahawkin LLC filed separate Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Case Nos. 14-22791, 14-22792 and 14-22793) on June 4, 2014. The petitions were signed by David Goldwasser, of GC Realty Advisors LLC, managing member. The Debtors estimated assets of $50 million to $100 million and debts of $0 to $50 million. Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtors' counsel. Judge Robert D. Drain presides over the cases. Affiliates of AC I Inv., et al., have pending bankruptcy cases before Judge Drain. NY Affordable Housing Albany Assocs. LLC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 13-20007) on July 26, 2013. First Bronx LLC sought bankruptcy protection (Bankr. S.D.N.Y. Case NO. 14-22047) on Jan. 13, 2014. Ollie Allen Holding Company LLC sought bankruptcy (Case NO. 14-22204) on Feb. 18, 2014. U.S. Trustee was unable to form an official unsecured creditors' committee. AC I INV: Holliday Fenoglio OK'd as Exclusive Real Estate Broker ---------------------------------------------------------------- U.S. Bankruptcy Robert D. Drain authorized AC I Inv Manahawkin LLC, et al., to employ Holliday Fenoglio Fowler, L.P. as their exclusive real estate broker for the marketing and sale of the real property located at 601 Washington Avenue, Manahawkin, New Jersey. The Debtor agreed to pay Holliday a commission equal to 0.7% of the sale price for the property, with said commission to be paid in accordance with the agreement; provided, however, that Holliday's reasonable compensation will be fixed by the Court. About AC I Inv Manahawkin LLC AC I Inv Manahawkin LLC, AC I Manahawkin Mezz LLC and AC I Manahawkin LLC filed separate Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Case Nos. 14-22791, 14-22792 and 14-22793) on June 4, 2014. The petitions were signed by David Goldwasser, of GC Realty Advisors LLC, managing member. The Debtors estimated assets of $50 million to $100 million and debts of $0 to $50 million. Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtors' counsel. Judge Robert D. Drain presides over the cases. Affiliates of AC I Inv., et al., have pending bankruptcy cases before Judge Drain. NY Affordable Housing Albany Assocs. LLC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 13-20007) on July 26, 2013. First Bronx LLC sought bankruptcy protection (Bankr. S.D.N.Y. Case NO. 14-22047) on Jan. 13, 2014. Ollie Allen Holding Company LLC sought bankruptcy (Case NO. 14-22204) on Feb. 18, 2014. U.S. Trustee was unable to form an official unsecured creditors' committee. AEREO INC: Seeks to Sell Assets, Proposes Feb. 17 Auction --------------------------------------------------------- Aereo Inc. seeks authority from the U.S. Bankruptcy Court for the Southern District of New York to sell substantially all of its assets although no buyer is yet under contract. The Debtor states in court papers that it is in the midst of preliminary discussions with interested parties in connection with, among other opportunities, the sale of certain or substantially all of the estate's assets. To attain the highest and best value for the benefit of all of the Debtor's stakeholders, the Debtor proposes to establish a process and proposes the following timeline: Feb. 13, 2015 -- Final Bid Deadline Feb. 17, 2015 -- Auction, Transaction Objection Deadline Feb. 20, 2015 -- Sale Hearing The Debtor also proposes to select a stalking horse bidder and provide a breakup fee of up to 3.0% of the total value of the Stalking Horse Bid, plus an expense reimbursement to be determined in the Debtor's discretion, but in any event not to exceed $500,000. About Aereo, Inc. With headquarters in Boston, Massachusetts, Aereo, Inc., is a technology company that provided subscribers with the ability to watch live or "time-shifted" local over-the-air broadcast television on internet-connected devices, such as personal computers, tablet devices, and "smartphones." Aero provided to each subscriber access, via the internet, to individual remote or micro-antennas and a cloud-based DVR, which were maintained by the Debtor in facilities within the local market. Aereo, Inc., sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-13200) in Manhattan, New York, on Nov. 20, 2014. The Chapter 11 filing came five months after the U.S. Supreme Court ruled the Debtor, with respect to live or contemporaneous transmissions, was essentially performing as a traditional cable system under the Copyright Act, and thus was violating broadcasters' copyrights because it wasn't paying broadcasters any fees. The Debtor has tapped William R. Baldiga, Esq., at Brown Rudnick LLP, in New York, as counsel. The Debtors has also engaged Argus Management Corp. to provide the services of Lawton W. Bloom as CRO and Peter Sullivan and Scott Dicus as assistant restructuring officers. Prime Clerk LLC is the claims and notice agent. As of the Petition Date, the Debtor's reported total assets were $20.5 million, and its total undisputed liabilities (primarily trade debt) were $4.2 million. AEREO INC: Seeks to Employ Prime Clerk as Administrative Advisor ---------------------------------------------------------------- Aereo Inc. seeks authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Prime Clerk LLC as administrative advisor. The Debtor seeks to retain Prime Clerk to provide, among other things, the following bankruptcy administration services: (a) Assist with, among other things, solicitation, balloting and tabulation of votes, and prepare any related reports, as required in support of confirmation of a Chapter 11 plan, and in connection with such services, process requests for documents from parties in interest, including, if applicable, brokerage firms, bank back-offices and institutional holders; (b) Prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; (c) Provide a confidential data room, if requested; (d) Manage and coordinate any distributions pursuant to a Chapter 11 plan; and (e) Provide other processing, solicitation, balloting and other administrative services, as may be requested from time to time by the Debtor, the Court or the Office of the Clerk of the Bankruptcy Court. Michael J. Frishberg, Co-President and Chief Operating Officer of Prime Clerk, assures the Court that his 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. About Aereo, Inc. With headquarters in Boston, Massachusetts, Aereo, Inc., is a technology company that provided subscribers with the ability to watch live or "time-shifted" local over-the-air broadcast television on internet-connected devices, such as personal computers, tablet devices, and "smartphones." Aero provided to each subscriber access, via the internet, to individual remote or micro-antennas and a cloud-based DVR, which were maintained by the Debtor in facilities within the local market. Aereo, Inc., sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-13200) in Manhattan, New York, on Nov. 20, 2014. The Chapter 11 filing came five months after the U.S. Supreme Court ruled the Debtor, with respect to live or contemporaneous transmissions, was essentially performing as a traditional cable system under the Copyright Act, and thus was violating broadcasters' copyrights because it wasn't paying broadcasters any fees. The Debtor has tapped William R. Baldiga, Esq., at Brown Rudnick LLP, in New York, as counsel. The Debtors has also engaged Argus Management Corp. to provide the services of Lawton W. Bloom as CRO and Peter Sullivan and Scott Dicus as assistant restructuring officers. Prime Clerk LLC is the claims and notice agent. As of the Petition Date, the Debtor's reported total assets were $20.5 million, and its total undisputed liabilities (primarily trade debt) were $4.2 million. AEREO INC: Can Hire Prime Clerk as Claims & Noticing Agent ---------------------------------------------------------- Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York authorized Aereo Inc. to employ Prime Clerk LLC as claims and noticing agent to, among other things, (i) distribute required notices to parties in interest, (ii) receive, maintain, docket and otherwise administer the proofs of claim filed in the Debtor's Chapter 11 case and (iii) provide other administrative services -- as required by the Debtor -- that would fall within the purview of services to be provided by the Clerk's office. For its claims and noticing services, Prime Clerk will charge the Debtors at these hourly rates: Hourly Rate ----------- Analyst $30 to $50 Technology Consultant $70 to $95 Consultant $80 to $140 Senior Consultant $150 to $170 Director $180 to $195 For the firm's solicitation, balloting and tabulation services, the rates are: Hourly Rate ----------- Solicitation Consultant $190 to $200 Director of Solicitation $210 About Aereo, Inc. With headquarters in Boston, Massachusetts, Aereo, Inc., is a technology company that provided subscribers with the ability to watch live or "time-shifted" local over-the-air broadcast television on internet-connected devices, such as personal computers, tablet devices, and "smartphones." Aero provided to each subscriber access, via the internet, to individual remote or micro-antennas and a cloud-based DVR, which were maintained by the Debtor in facilities within the local market. Aereo, Inc., sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-13200) in Manhattan, New York, on Nov. 20, 2014. The Chapter 11 filing came five months after the U.S. Supreme Court ruled the Debtor, with respect to live or contemporaneous transmissions, was essentially performing as a traditional cable system under the Copyright Act, and thus was violating broadcasters' copyrights because it wasn't paying broadcasters any fees. The Debtor has tapped William R. Baldiga, Esq., at Brown Rudnick LLP, in New York, as counsel. The Debtors has also engaged Argus Management Corp. to provide the services of Lawton W. Bloom as CRO and Peter Sullivan and Scott Dicus as assistant restructuring officers. Prime Clerk LLC is the claims and notice agent. As of the Petition Date, the Debtor's reported total assets were $20.5 million, and its total undisputed liabilities (primarily trade debt) were $4.2 million. AEREO INC: Meeting to Form Creditors' Panel Set for Dec. 8 ---------------------------------------------------------- William K. Harrington, United States Trustee for Region 2, will hold an organizational meeting on Dec. 8, 2014, at 10:30 a.m. in the bankruptcy case of Aereo, Inc. The meeting will be held at: 80 Broad Street, 4th Floor New York, NY 10004 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. About Aereo, Inc. With headquarters in Boston, Massachusetts, Aereo, Inc., is a technology company that provided subscribers with the ability to watch live or "time-shifted" local over-the-air broadcast television on internet-connected devices, such as personal computers, tablet devices, and "smartphones." Aero provided to each subscriber access, via the internet, to individual remote or micro-antennas and a cloud-based DVR, which were maintained by the Debtor in facilities within the local market. Aereo, Inc., sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 14-13200) in Manhattan, New York, on Nov. 20, 2014. The Chapter 11 filing came five months after the U.S. Supreme Court ruled the Debtor, with respect to live or contemporaneous transmissions, was essentially performing as a traditional cable system under the Copyright Act, and thus was violating broadcasters' copyrights because it wasn't paying broadcasters any fees. The Debtor has tapped William R. Baldiga, Esq., at Brown Rudnick LLP, in New York, as counsel. The Debtors has also engaged Argus Management Corp. to provide the services of Lawton W. Bloom as CRO and Peter Sullivan and Scott Dicus as assistant restructuring officers. Prime Clerk LLC is the claims and notice agent. As of the Petition Date, the Debtor's reported total assets were $20.5 million, and its total undisputed liabilities (primarily trade debt) were $4.2 million. ALCO STORES: Closing to Affect Other Businesses in Maryville ------------------------------------------------------------ Alco Stores Inc.'s closing affects Maryville, North Dakota's other businesses, Dave Olson writing for Prairiebizmag.com, reports, citing Paula's Cafe owner Joe Bertrand. Prairiebizmag.com quoted Mr. Bertrand as saying, "People from Finley, Hatton, all around, go to Alco. But they come here [Paula's Cafe] first to eat. That's a pretty big impact." According to Prairiebizmag.com, Mayville Mayor Donald Moen agreed that the Alco Stores' closing would have a significant impact in the town, where Alco Stores is the main retailer. The report quoted Mayor Moen, who isn't fully convinced that the store is going away, as saying, "There is still some hope somebody may pick that up and continue to run that as a store. But there's no guarantee that's going to happen." Prairiebizmag.com relates that Gary Schnell, who owns a bulk fuel supply in Oakes and who is also president of Oakes Enhancement Inc., an economic development agency that works to draw new businesses to the area and support the ones already in town, has been working on getting another brand interested in the local Alco Stores, but there have been no takers. Prairiebizmag.com relates that the Alco chain of department stores will close its stores after the holiday shopping season. Jan Schultz at The Imperial Republican reports that the Bankruptcy Court approved an order from the Alco Stores' creditors to close all of its stores and that Tiger Capital Group, SB Capital Group, and Great American Group are conducting the "Going Out of Business" sales in each of Alco Stores' locations throughout the country. Imperial Alco Store Manager Nicki Sailors said that their location will shut down on Jan. 31, 2015, The Imperial Republican states. 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. Michael Moore has been named consultant to the Debtors. 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. The U.S. Trustee for Region 6 appointed seven creditors to serve in the official committee of unsecured creditors of ALCO Stores, Inc. The Law Office of Judith W. Ross serves as local counsel to the Committee. ALCO STORES: Obtains Final Approval of DIP Financing ---------------------------------------------------- BankruptcyData reported that the U.S. Bankruptcy Court approved, on a final basis, ALCO Stores' request to obtain postpetition financing from Wells Fargo Bank, National Association, as administrative agent and collateral agent. As previously reported by The Troubled Company Reporter, prepetition lender Wells Fargo has agreed to provide the Debtors with (i) a senior secured revolving credit facility in an aggregate principal amount not to exceed $110,000,000 and (ii) a senior secured term loan in the original principal amount of $12,675,000. 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. Michael Moore has been named consultant to the Debtors. 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. The U.S. Trustee for Region 6 appointed seven creditors to serve in the official committee of unsecured creditors of ALCO Stores, Inc. The Law Office of Judith W. Ross serves as local counsel to the Committee. ALEXANDRA TRUST: Files Schedules of Assets and Liabilities ---------------------------------------------------------- Alexandra Trust filed with the U.S. Bankruptcy Court for the Northern District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $193,270 B. Personal Property $861,105,940 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $0 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $4,739,000 ----------- ----------- TOTAL $861,299,210 $4,739,000 About Alexandra Trust Garland, Texas-based Alexandra Trust sought protection under Chapter 11 of the Bankruptcy Code on Oct. 20, 2014 (Case No. 14- 35049, Bankr. N.D. Tex.). The case is assigned to Judge Barbara J. Houser. The Debtor's counsel is Arthur I. Ungerman, Esq., in Dallas, Texas. The Debtor has estimated assets ranging from $100 million to $500 million and estimated debts ranging from $500,000 to $1 million. The petition was signed by Richard Dale Sterritt, Jr., trustee. ALSIP ACQUISITION: Hires Mintz Levin as Bankruptcy Counsel ---------------------------------------------------------- Alsip Acquisition, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., as bankruptcy counsel. The Debtors anticipate that Mintz Levin will render the following legal services: (a) Advise the Debtors with respect to their powers and duties as debtors in possession in the continued management and operation of their businesses and property; (b) Represent the Debtors at all hearings and matters pertaining to their affairs as Debtors and debtors in possession; (c) Attend meetings and negotiate with representatives of the Debtors' creditors and other parties-in-interest, as well as respond to creditor inquiries; (d) Take all necessary action to protect and preserve the Debtors' estates; (e) Prepare on behalf of the Debtors all necessary and appropriate motions, applications, answers, orders, reports and papers necessary to the administration of the Debtors' estates; (f) Review applications and motions filed in connection with the Chapter 11 cases; (g) Advise the Debtors in connection with the proposed sale of assets or their businesses; (h) Negotiate and prepare on the Debtors' behalf pleadings, asset purchase agreements, agency agreements, and all related agreements and/or documents, and take any necessary action on behalf of the Debtors in connection with a sale of the Debtors' assets or their businesses; (i) Review and evaluate the Debtors' executory contracts and unexpired leases and represent the Debtors in connection with the rejection, assumption or assignment of those leases; (j) Consult with and advise the Debtors regarding labor and employment matters; (k) Represent the Debtors in connection with any adversary proceedings or automatic stay litigation which may be commenced by or against the Debtors; (l) Review and analyze various claims of the Debtors' creditors and the treatment of those claims and the preparation, filing or prosecution of any objections thereto; and (m) Perform all other necessary legal services and provide all other necessary legal advice to the Debtors in connection with their Chapter 11 cases. During the one year prior to the Petition Date, Mintz Levin rendered services and incurred legal fees and expenses on behalf of the Debtors in the approximate amount of $491,890, inclusive of the fees and expenses incurred preparing the Chapter 11 cases. The Debtors have provided a retainer of $75,000 from which some of Mintz Levin's prepetition legal fees and expenses have been satisfied. The following are Mintz Levin's current hourly rates: Members $555 to $995 Associates $325 to $595 Paraprofessionals $195 to $295 Mintz Levin will seek reimbursement of actual necessary expenses incurred in providing professional services. Kevin J. Walsh, Esq., a member at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Mr. Walsh may be reached at: Kevin J. Walsh, Esq. MINTZ, LEVIN, COHN, FERRIS, GLOVSKY AND POPEO, P.C. One Financial Center Boston, MA 02111 Tel: (617) 348-1622 E-mail: KWalsh@mintz.com About Alsip Acquisition Alsip Acquisition, LLC and APCA, LLC were the leading North American provider of responsibly made recycled paper for books and magazines, as well as for commercial printing and packaging applications. The operational and manufacturing headquarters are located in Alsip, Illinois, and consist of a 40-year-old mill and a leased warehouse in Alsip, Illinois. The mill and warehouse were idled in September 2014 following cash losses. Most of Alsip's stock is owned by FutureMark Holdings, LLC. On Nov. 20, 2014, Alsip Acquisition and APCA each filed petitions seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Judge Kevin J. Carey (KJC). The cases have been jointly administered, with pleadings maintained on the case docket for Case No. 14-12596. The Debtors have tapped Mintz Levin Cohn Ferris Glovsky and Popeo PC as counsel and Pachulski Stang Ziehl & Jones as co-counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. As of the Oct. 31, 2014, the Debtors had approximately $7,742,972 of funded indebtedness and related obligations outstanding. The goal of the Debtors is to consummate the sale of the assets to Resolute FP Illinois LLC pursuant to an asset purchase agreement or another bidder pursuant to the bid procedures. In addition, the Debtors intend to vacate their leased locations in Connecticut and New Jersey, liquidate their other assets, and distribute any proceeds pursuant to the claims process established by the Bankruptcy Code. The 11 U.S.C. Sec. 341(a) meeting of creditors is slated for Dec. 15, 2014 at 1:00 p.m. prevailing Eastern time. A copy of the affidavit in support of the first-day motions is available for free at: http://bankrupt.com/misc/Alsip_1st_Day_Affidavit.pdf ALSIP ACQUISITION: Employs Pachulski as Local Delaware Counsel -------------------------------------------------------------- Alsip Acquisition, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Pachulski Stang Ziehl & Jones LLP as local Delaware counsel. The professional services that PSZ&J will provide include, but will not be limited to: (a) providing legal advice with respect to the Debtors' powers and duties as debtors in possession in the continued operation of their businesses and management of their property; (b) preparing on behalf of the Debtors any necessary applications, motions, answers, orders, reports, and other legal papers; (c) appearing in Court on behalf of the Debtors; (d) preparing and pursuing confirmation of a plan and approval of a disclosure statement; and (e) performing other legal services for the Debtors that may be necessary and proper in the bankruptcy proceedings. The principal attorneys and paralegals presently designated to represent the Debtors and their current standard hourly rates are: Laura Davis Jones, Esq. $995 Colin R. Robinson, Esq. $605 Peter J. Keane, Esq. $475 Kathe Finlayson $295 Beyond the hourly rates, it is PSZ&J's policy to charge for all other expenses incurred in connection with the client's cases. PSZ&J has received payments from the Debtors during the year prior to the Petition Date in the amount of $50,000, including the Debtors' aggregate filing fees for their Chapter 11 cases. Laura Davis Jones, Esq., a partner at Pachulski Stang Ziehl & Jones LLP, assures the Court that her 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. PSZ&J and its professionals can be reached at: Laura Davis Jones, Esq. Colin R. Robinson, Esq. Peter J. Keane, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 N. Market Street, 17th Floor Wilmington, DE 19801 Tel: 302 652-4100 Fax: 302-652-4400 E-mail: ljones@pszjlaw.com crobinson@pszjlaw.com pkeane@pszjlaw.com About Alsip Acquisition Alsip Acquisition, LLC and APCA, LLC were the leading North American provider of responsibly made recycled paper for books and magazines, as well as for commercial printing and packaging applications. The operational and manufacturing headquarters are located in Alsip, Illinois, and consist of a 40-year-old mill and a leased warehouse in Alsip, Illinois. The mill and warehouse were idled in September 2014 following cash losses. Most of Alsip's stock is owned by FutureMark Holdings, LLC. On Nov. 20, 2014, Alsip Acquisition and APCA each filed petitions seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Judge Kevin J. Carey (KJC). The cases have been jointly administered, with pleadings maintained on the case docket for Case No. 14-12596. The Debtors have tapped Mintz Levin Cohn Ferris Glovsky and Popeo PC as counsel and Pachulski Stang Ziehl & Jones as co-counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. As of the Oct. 31, 2014, the Debtors had approximately $7,742,972 of funded indebtedness and related obligations outstanding. The goal of the Debtors is to consummate the sale of the assets to Resolute FP Illinois LLC pursuant to an asset purchase agreement or another bidder pursuant to the bid procedures. In addition, the Debtors intend to vacate their leased locations in Connecticut and New Jersey, liquidate their other assets, and distribute any proceeds pursuant to the claims process established by the Bankruptcy Code. The 11 U.S.C. Sec. 341(a) meeting of creditors is slated for Dec. 15, 2014 at 1:00 p.m. prevailing Eastern time. ALSIP ACQUISITION: Taps Sanabe as Investment Banker --------------------------------------------------- Alsip Acquisition, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Sanabe & Associates, LLC, as investment banker. The Debtors initially employed Sanabe on May 20, 2014 to act as investment banker in connection with a potential sale transaction. Since that date, Sanabe has been providing the Debtors with financial and market-related advice and assistance in furtherance of the sale transaction. As part of its prepetition engagement, the Debtors paid an initial retaining payment of $50,000, with a monthly retainer of $25,000 per month thereafter, starting on Aug. 1, 2014. Collectively, these retainer payments have totaled $150,000. The Debtors seek to continue to employ Sanabe as their exclusive investment banker in conjunction with the possible sale transaction. Sanabe's advice would relate to the following: (a) working with the Debtors' management in developing a strategy with regard to the sale transaction; (b) preparing and presenting a list of potential purchasers to the Debtors for the Debtors' review; (c) contacting potential purchasers, both strategic and financial, to solicit their interest in a sale transaction; (d) coordinating the creation and maintenance of a data room of information provided by the Debtors, the costs of which will be charged directly to the Debtors; (e) preparing, with the assistance of the Debtors, management presentations to selected purchasers; (f) advising the Debtors in their negotiations regarding the sale transaction, including, if necessary, evaluating indications of interest and offers received and negotiating a definitive agreement; (g) coordinating with the Debtors' legal counsel regarding matters related to the closing of a transaction, and other advice as may be requested by the Debtors; and (h) taking all necessary steps and providing services appropriate to the Debtors' efforts to maximize the value of their assets and estates. Sanabe will be paid a non-refundable retainer of $25,000 per month, and a success fee equal to 4% of the transaction value at the closing of a sale transaction. The firm will also be paid a fee equal to 25% of the amount of the success fee, with respect to any fairness opinion requested in writing by the Debtors. The firm will also be reimbursed for its reasonable out-of-pocket expenses. Jonathan I. Mishkin, founder and manager partner of Sanabe & Associates, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Mr. Mishkin may be reached at: Jonathan I. Mishkin SANABE & ASSOCIATES, LLC E-mail: jonathan@sanabe.com About Alsip Acquisition Alsip Acquisition, LLC and APCA, LLC were the leading North American provider of responsibly made recycled paper for books and magazines, as well as for commercial printing and packaging applications. The operational and manufacturing headquarters are located in Alsip, Illinois, and consist of a 40-year-old mill and a leased warehouse in Alsip, Illinois. The mill and warehouse were idled in September 2014 following cash losses. Most of Alsip's stock is owned by FutureMark Holdings, LLC. On Nov. 20, 2014, Alsip Acquisition and APCA each filed petitions seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Judge Kevin J. Carey (KJC). The cases have been jointly administered, with pleadings maintained on the case docket for Case No. 14-12596. The Debtors have tapped Mintz Levin Cohn Ferris Glovsky and Popeo PC as counsel and Pachulski Stang Ziehl & Jones as co-counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. As of the Oct. 31, 2014, the Debtors had approximately $7,742,972 of funded indebtedness and related obligations outstanding. The goal of the Debtors is to consummate the sale of the assets to Resolute FP Illinois LLC pursuant to an asset purchase agreement or another bidder pursuant to the bid procedures. In addition, the Debtors intend to vacate their leased locations in Connecticut and New Jersey, liquidate their other assets, and distribute any proceeds pursuant to the claims process established by the Bankruptcy Code. The 11 U.S.C. Sec. 341(a) meeting of creditors is slated for Dec. 15, 2014 at 1:00 p.m. prevailing Eastern time. ALSIP ACQUISITION: Proposes DSI as Financial Advisor ---------------------------------------------------- Alsip Acquisition, LLC, et al., seek authority from the U.S. Bankruptcy Court for the District of Delaware to employ Development Specialist, Inc., as the financial advisor. The Debtors require DSI's services for the following purposes: (a) to serve as financial advisor of the Debtors; (b) manage the ongoing operations of the Debtors; (c) support the ongoing sale process, including coordination of due diligence and negotiation of transaction documents; (d) participate in negotiations with various creditor constituencies; (e) develop a budget for the Debtors' operations while debtors in possession; (f) assist in the negotiation and preparation of necessary court documents; (g) testify in depositions and court if requested; and (h) perform other tasks as may be agreed to by DSI and the Debtors. The Debtors agree to pay DSI for the services of the following additional personnel at the following hourly rates: Senior Consultants $425 to $675 Consultants $175 to $325 In addition to compensation for professional services rendered by personnel, DSI also will be entitled to reimbursement for its reasonable costs and expenses. Prior to the Petition Date, DSI received an initial retainer of $50,000 from the Debtors. Patrick J. O'Malley, chief financial officer of Development Specialist, Inc., assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Mr. O'Malley may be reached at: Patrick J. O'Malley Development Specialist, Inc. Three First National Plaza 70 West Madison Street Suite 2300 Chicago, IL 60602-4250 Tel: (312) 263-4141 E-mail: pomalley@dsi.biz About Alsip Acquisition Alsip Acquisition, LLC and APCA, LLC were the leading North American provider of responsibly made recycled paper for books and magazines, as well as for commercial printing and packaging applications. The operational and manufacturing headquarters are located in Alsip, Illinois, and consist of a 40-year-old mill and a leased warehouse in Alsip, Illinois. The mill and warehouse were idled in September 2014 following cash losses. Most of Alsip's stock is owned by FutureMark Holdings, LLC. On Nov. 20, 2014, Alsip Acquisition and APCA each filed petitions seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Judge Kevin J. Carey (KJC). The cases have been jointly administered, with pleadings maintained on the case docket for Case No. 14-12596. The Debtors have tapped Mintz Levin Cohn Ferris Glovsky and Popeo PC as counsel and Pachulski Stang Ziehl & Jones as co-counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. As of the Oct. 31, 2014, the Debtors had approximately $7,742,972 of funded indebtedness and related obligations outstanding. The goal of the Debtors is to consummate the sale of the assets to Resolute FP Illinois LLC pursuant to an asset purchase agreement or another bidder pursuant to the bid procedures. In addition, the Debtors intend to vacate their leased locations in Connecticut and New Jersey, liquidate their other assets, and distribute any proceeds pursuant to the claims process established by the Bankruptcy Code. The 11 U.S.C. Sec. 341(a) meeting of creditors is slated for Dec. 15, 2014 at 1:00 p.m. prevailing Eastern time. AMARILLO BIOSCIENCES: Reorganization Plan Effective --------------------------------------------------- BankruptcyData reported on November 18 that Amarillo Biosciences' Plan of Reorganization, filed February 21, 2014, became effective; and the Company emerged from Chapter 11 protection. The Troubled Company Reporter, on June 3, 2014, citing BankruptcyData, reported that a bankruptcy court confirmed Amarillo Biosciences' Plan of Reorganization, filed Feb. 21, 2014. According to BData, under the court order, all property and assets of the Debtor will vest in the reorganized debtor, which may thereafter operate its business free of any restrictions imposed by the Code. The Debtor is authorized and directed to take all steps necessary and appropriate to implement the Plan without the need for further shareholder, director or other corporate approvals or action, including without limitation, the issuance of new equity securities to the Yang Group and the implementation of the reverse stock split specified in the Plan, BData added. Amarillo Biosciences, Inc., a developer of biologics for the treatment of human and animal diseases, filed for Chapter 11 protection (Bankr. N.D. Tex. Case No. 13-20393) on Oct. 31, 2013. Amarillo disclosed assets of $132,000 against $4.8 million in liabilities as of the bankruptcy filing. It is represented by Roger S. Cox, Esq., at Underwood Law Firm. ANTIOCH CO: McDermott Tries to Cut Scrapbooker's Malpractice Suit ----------------------------------------------------------------- Law360 reported that McDermott Will & Emery LLP urged an Ohio federal judge to crush a legal malpractice suit over the firm's alleged failure to advise now-bankrupt Antioch Co. LLC to sue its directors after an employee stock ownership plan takeover, saying holding the firm responsible "stands corporate law on its head." According to the report, in six briefs, the firm defended its bids for summary judgment of claims brought by the bankrupt scrapbooking company over a stock deal the trust later claimed was bound to fail. Antioch says its counsel, McDermott, should have advised it to launch a lawsuit over the bombed deal, the report related. The case is Antioch Litigation Trust, W. Timothy Miller, Trustee v. McDermott Will & Emery LLP et al., case number 3:09-cv-00218, in the U.S. District Court for the Southern District of Ohio. About The Antioch Company St. Cloud, Minn.-based scrapbook company The Antioch Company and six affiliates filed for Chapter 11 bankruptcy (Bankr. D. Minn. Case No. 13-41898) in Minneapolis on April 16, 2013. Antioch disclosed $10 million to $50 million in both assets and debts. The affiliates that separate filed for Chapter 11 are Antioch International-Canada LLC, Antioch International LLC, zeBlooms LLC, Antioch Framers Supply LLC, Antioch International-New Zealand LLC, and Creative Memories Puerto Rico, LLC. Founded in 1926, Antioch and its affiliates make up one of the world's preeminent suppliers of scrapbooks, related accessories, and photo solutions for memory preservation through the direct sales channel. The Debtors also go by business names Creative Memories, Antioch, Agenda, Antioch Publishing, Cottage Arts, Frame of Mind and Webway. Antioch has 200 employees and currently has operations through the Debtor companies and foreign subsidiaries in the United States, Canada, Japan, Australia, and New Zealand. In 2012, the Company's net revenue was approximately $93.8 million and it had a net loss of $3.7 million. Antioch previously sought bankruptcy protection in 2008 (Bankr. S.D. Ohio Case No. 08-35741). In the 2013 case, the U.S. Trustee appointed a seven-member creditors committee. Faegre Baker Daniels LLP serves as its counsel. Crowe Horwath LLP serves as its financial advisor. The Antioch Company, et al., and the Official Committee of Unsecured Creditors, obtained confirmation on Nov. 14, 2013, their Second Amended Joint Plan of Reorganization dated Nov. 13, 2013. ARCHDIOCESE OF MILWAUKEE: Order Denying OneBeacon Relief Reversed ----------------------------------------------------------------- The Bankruptcy Court reversed the order denying OneBeacon Insurance Company's motion to terminate the automatic stay in the bankruptcy proceedings involving the Archdiocese of Milwaukee. The matter is remanded to the Court for further proceedings consistent with the opinion. OneBeacon, in its appeal, argued that the Bankruptcy Court abused its discretion by denying its request for relief from the automatic stay in the case. OneBeacon has requested relief from the stay so the Wisconsin Supreme Court could consider whether to grant or deny the Archdiocese's petition for review from an appellate court ruling that certain sexual abuse claims filed in Wisconsin State Court were not covered by OneBeacon insurance policies. On June 5, 2014, the Court issued an order denying OneBeacon's motion to lift the stay. The Court expressed concern that if it lifted the stay and allowed the appeal to proceed, the Debtor would be "saddled with the time and expense of pursuing the appeal, at a critical juncture in this Chapter 11 case, when the Debtor would be focused on negotiating with the creditors to achieve confirmation of the plan." As reported in the Troubled Company Reporter on Feb. 11, 2014, the Debtors asked the Court to deny the request of OneBeacon to lift the automatic stay in connection with the petition for review it filed before the Wisconsin Supreme Court. OneBeacon wanted the legal injunction lifted to permit the archdiocese's petition as well as any subsequent review by the Supreme Court to proceed. The archdiocese filed the petition to review an opinion handed down by the Court of Appeals of Wisconsin in favor of clergy sex abuse victims who sued the archdiocese for negligent misrepresentation and fraud. Daryl Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin, said the archdiocese would be "negatively impacted" if OneBeacon were to succeed. "OneBeacon's refusal to pay defense costs would directly impact the amount of money that might otherwise be available to fund a plan of reorganization," the archdiocese's lawyer said in a court filing. He said it would limit the pool of money that would otherwise go to creditors. OneBeacon allegedly stopped making payments after the appeals court affirmed the decision by lower courts, which handled the cases filed by sex abuse victims, that the claims for negligent misrepresentation did not trigger insurance coverage. The appeals court's opinion concluded that the allegations underlying the victims' complaints constituted volitional acts, rather than accidents that would be covered under the policy provided by insurance firms including OneBeacon. The sex abuse victims alleged in their complaints that the archdiocese's agents continued to allow the priests with history of sexual abuse to have access to children through parishes and schools although they were already confronted by former sex abuse victims. The victims also alleged that despite the archdiocese's knowledge of the priests' history of sexual abuse, it represented that children were safe in their presence. Meanwhile, a group of claimants represented by Jeff Anderson & Associates P.A., said it doesn't oppose the termination of the automatic stay. The group said it should be permitted to pursue any potential claims it may have against OneBeacon in the Wisconsin Circuit Courts outside of the bankruptcy proceeding in case the bankruptcy court ruled in favor of the insurance company. 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. ASLIP ACQUISITION: Dec. 4 Meeting Set to Form Creditors' Panel -------------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on Dec. 4, 2014, at 10:00 a.m. in the bankruptcy case of Aslip Acquisition LLC. The meeting will be held at: J. Caleb Boggs Federal Building 844 King St., Room 2112 Wilmington, DE 19801 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. Alsip Acquisition, LLC filed a Chapter 11 petition (Bankr. D. Del. Case No. 14-12514) on Nov. 20, 2014, in Delaware, Laura Davis Jones, Esq., at Wilmington, Delaware, serves as counsel to the Debtor. The Debtor estimated up to $50 million in assets and up to $50 million in liabilities. ASR 2401: Dec. 8 Hearing on Further Access to Cash Collateral ------------------------------------------------------------- The Bank ruptcy Court presiding over ACR 2401 Fountainview, LP, et al.'s case entered an agreed second interim order approving the Debtors' use of cash collateral. A hearing on further use of cash collateral is scheduled for Dec. 8, 2014, at 10:00 a.m. In a previous order, the Court approved an agreed interim order between the Debtors and JPMCC 2006-LDP7 Office 2401, LLC, the noteholder, approving use of cash collateral until Nov. 18. As reported in the TCR on Nov. 19, 2014, the noteholder has a prepetition security interest in the Debtor's real property, related personal property, inventory, and proceeds therefrom, well as the revenues generated from the operation and leasing of the real property. The Debtor will use the cash collateral to continue the operation of its business and preserve its value as a going concern. As adequate protection from any diminution in value of the lender's collateral, the Debtor will grant the creditor replacement liens upon all categories of property of the Debtor and its estate, a superpriority administrative expense claim. Additionally, the Debtor will deliver payment to noteholder in the amount of at least $74,973 beginning within 3 days of the entry of the interim order, and monthly on the 20th day of each calendar month thereafter. About ASR 2401 ASR 2401 Fountainview, LP, and ASR 2401 Fountainview, LLC sought Chapter 11 bankruptcy protection in Houston (Bankr. S.D. Tex. Case Nos. 14-35322) on Sept. 30, 2014, without stating a reason. Each debtor, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), estimated assets and debt of $10 million to $50 million. Each debtor claims to have its principal assets located at 2401 Fountain View, Houston, Texas. ASR LP's Chapter 11 case is assigned to Judge Letitia Z. Paul while ASR LLC's Chapter 11 case is assigned to Judge Marvin Isgur The Debtors have tapped Christopher Adams, Esq., at Okin Adams & Kilmer LLP, in Houston, as counsel. The Debtor disclosed $19,348,658 in assets and $20,715,225 in liabilities as of the Chapter 11 filing. The U.S. Trustee has not yet appointed a creditors committee. AVELLINO LLC: Trustee to Auction Off Condo Units on Dec. 11 ----------------------------------------------------------- Ray W. King and Paris R. Sorrell, the appointed substitute trustee, will sell the property of Avellino LLC located at 8761 Virginia Meadows Drive Markey Business Center Condominiums - Bldg. #1 Manassas, Virginia, at a public auction to the highest bidder, for cash on Dec. 11, 2014, at 11:00 a.m., at Prince William County Circuit Court located at 9311 Lee Avenue in Manassas, Virginia. Property is conveyed by deed from Avellino dated July 22, 2009, and recorded July 23, 2009, in the Clerk's Office of the Circuit Court of Prince William County, Virginia as Instrument Number 200907230072722. The property will be sold "AS IS, WHERE IS" and "WITH ALL FAULTS" and subject to the rights of any parties in possession and to such covenants, conditions, easements, restrictions, reservations, encumbrances, deeds of trust, defects, delinquent assessments, adverse claims and liens, whether filed or inchoate, if any, superior to the lien of the deed of trust affecting the property, duly of record, and constituting constructive notice. A cash bidder's deposit equal to 10% of the successful bid will be required from the successful bidder at time of sale and must be in the form of cash, cashier's check or certified check; no personal checks will be accepted. Failure to close within 30 days of sale will result in purchaser's default. Upon purchaser's default, the bidder's deposit shall be forfeited and the property will be resold at the risk and costs of the defaulting purchaser. Taxes will be prorated as of the sale date. For questions concerning the information contained in this notice, please contact: Ray W. King LeClairRyan 999 Waterside Drive, Suite 2100 Norfolk, VA 23510 Tel: (757) 441-8929 E-mail: ray.king@leclairryan.com AXION INTERNATIONAL: CEO Issues Letter to Shareholders ------------------------------------------------------ Axion International Holdings, Inc., furnished a letter made available to its shareholders on Nov. 28, 2014. "Thus far, 2014 is our strongest year from a revenue and production capability perspective, and we look to accelerate that momentum," stated Claude Brown, Jr., president and chief executive officer. We are building a world-class manufacturing business for engineered products, serving the transportation, construction and building industries. We have a proprietary position in our technology and products with over a decade of documented, proven durability. This technology has been developed with leading scientists and engineers, and we continue to test and improve our engineered products to maintain our place as an industry leader that promotes an environmentally responsible range of products. We are excited by the opportunities in our construction mat business, receiving notable traction in the market with initial adoption progressing quickly from testing to sales." "I would like to thank our team of dedicated managers and employees for their hard work, as well as our shareholders for their continued support. Together we believe we are building something significant, and we are grateful to everyone who is making it possible." The text of the Letter to Shareholders is available for free at: http://is.gd/dALcQX 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. As of Sept. 30, 2014, the Company had $18.31 million in total assets, $32.77 million in total liabilities, $6.82 million 10% convertible preferred stock and a $21.29 million total stockholders' deficit. 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. BERNARD L. MADOFF: Trustee Told to Tweak Mass Repleading Bid ------------------------------------------------------------ Law360 reported that Irving H. Picard, the bankruptcy trustee for Bernard Madoff's investment fund, moved forward with his effort to replead dozens of cases against entities that purportedly benefited from the notorious Ponzi scheme, after a New York bankruptcy judge instructed the trustee to address the few objections to repleading. According to the report, the trustee and his team at BakerHostetler filed an omnibus motion for leave to replead, in the wake of two separate district court rulings that reset the standard for what the trustee would have to prove in his cases against the defendants, including Credit Suisse AG, Credit Agricole Corporate and Investment Bank, and the Royal Bank of Canada. The case is Securities Investor Protection Corp. v. Bernard L. Madoff Investment Securities LLC et al., case number 1:08-ap- 01789, in the U.S. Bankruptcy Court for the Southern District of New York. 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. BERNARD L. MADOFF: Trustee, Investor Fight to Halt Class Actions ---------------------------------------------------------------- Law360 reported that the SIPA trustee for Bernard Madoff's securities firm filed court documents seeking to block litigation against former Madoff investor Jeffry Picower that both the trustee and Picower's estate say rehashes claims put to bed in a $7.2 billion 2011 deal. According to the report, the estate of Picower, who died in 2009, paid the trustee $7.2 billion in January 2011 to settle all claims arising out of Picower's involvement with Bernard L. Madoff Investment Securities, but one persistent group of investors has still been trying to recover some money. 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. CAESARS ENTERTAINMENT: Elliott Mgt. Wants Casino to Enter Ch. 11 ---------------------------------------------------------------- Elliott Management asked a court in Delaware last week to put Caesars Entertainment Corp. into Chapter 11 bankruptcy in order to stop executives from the "outright looting" of assets, Josh Kosman at the New York Post reports, citing people familiar with the matter. The NY Post relates that the Company's management has allegedly undertaken "an epic and fraudulent scheme" to rob $4 billion from an entity by selling its assets cheaply to two related divisions. The Company calls the lawsuit an "attempt to derail constructive talks the Company is having with creditors regarding a restructuring of the Company," the report states. According to the NY Post, sources said that the Company is expected to put the division into Chapter 11 soon after Jan. 14, 2015. The NY Post says that by virtue of holdings, hedge fund mogul Paul Singer stands to make a fortune if the Company enters Chapter 11 before Dec. 19, 2014. According to the report, a pre-Dec. 19 filing will let Mr. Singer cash in on two investments, bonds and CDS. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. Caesars Entertainment reported a net loss of $2.93 billion in 2013, as compared with a net loss of $1.50 billion in 2012. The Company's balance sheet at Sept. 30, 2014, showed $24.5 billion in total assets, $28.20 billion in total liabilities and a $3.71 billion total deficit. * * * In the April 10, 2014, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit ratings on Las Vegas-based Caesars Entertainment Corp. (CEC) and wholly owned subsidiaries, Caesars Entertainment Operating Co. (CEOC) and Caesars Entertainment Resort Properties (CERP), as well as the indirectly majority-owned Chester Downs and Marina, to 'CCC-' from 'CCC+'. The downgrade reflects S&P's expectation that Caesars' capital structure is unsustainable, and the amount of cash the company will burn in 2014 and 2015 creates conditions under which S&P believes a restructuring of some form is increasingly likely over the near term absent an unanticipated significantly favorable change in operating performance. As reported by the TCR on May 1, 2014, Fitch Ratings had downgraded the Issuer Default Ratings (IDRs) of Caesars Entertainment Corp (CEC) and Caesars Entertainment Operating Company (CEOC) to 'CC' from 'CCC'. In May 2014, Moody's Investors Service affirmed the Caa3 corporate family rating and Caa3-PD probability of default ratings. The negative rating outlook reflects Moody's view that CEOC will pursue a debt restructuring in the next year. Ratings could be lowered if CEOC does not take steps to address it unsustainable capital structure. Ratings improvement is not expected unless there is a significant reduction in CEOC's $18 billion debt load. CLOUDEEVA INC: Kaleta, Bartronics Object to Plan Disclosures ------------------------------------------------------------ The disclosure statement explaining Cloudeeva, Inc.'s Plan of Reorganization is facing objections from creditors. Creditor Robert Kaleta, in his objection, said that under the Plan, the Debtors are essentially giving the company to chief executive officer Adesh Tyagi's father in India and forcing its creditors to extend the company what amounts to a five year interest free loan for their claims at 50 cents on a dollar. Bartronics Asia Pte. Ltd., majority shareholder of Cloudeeva Florida and a creditor of Cloudeeva Delaware, said that beginning with the filing of their bankruptcy petitions, the Debtors, under the exclusive direction of CEO Tyagi, have acted for the sole benefit of Mr. Tyagi and his affiliates, with complete disregard for the best interests of creditors, shareholders, and the Debtors' estates. Accordingly, the Debtors, Bartronics points out, propose a Plan that delivers full ownership and control of the reorganized entity to Mr. Tyagi and his affiliates, wipes out current equity interests, pays unsecured creditors less than 50% of the present value of their claims, and disposes of pending and future litigation and arbitration against Tyagi, other insiders, and the Debtors. Bartronics also points out that under the Plan, Cloudeeva India, Inc., a company owned by Mr. Tyagi's father, will receive 100% ownership of the reorganized entity. In exchange for the equity, Cloudeeva India will provide a new value contribution of $1,150,000 and will guarantee all other payments made under the Plan. Significantly, the Debtors have represented that they are Cloudeeva India's only customer, which implies that the Debtors are also Cloudeeva India's sole source of income. Mr. Kaleta is represented by: Paul B. Justi, Esq. LAW OFFICES OF PAUL B. JUSTI 1981 North Broadway Suite 250 Walnut Creek, CA 94596 Tel: (925) 256-7900 Fax: (925) 256-9204 E-mail: pbjusti@comcast.net Bartronics Asia is represented by: Richard M. Meth, Esq. 75 Eisenhower Parkway, Suite 200 Roseland, New Jersey 07068 Tel: (973) 992-4800 E-mail: rmeth@foxrothschild.com Daniel J. Saval, Esq. Mason C. Simpson, Esq. Shoshana B. Kaiser, Esq. BROWN RUDNICK LLP 7 Times Square New York, NY 10036 Tel: (212) 209-4800 The Plan As reported in the TCR on Nov. 3, 2014, the Debtors filed with the Court their Plan and Disclosure Statement dated Oct. 7, 2014. The Debtors seek to make payments in connection with certain debts they owed as of the Petition Date, along with satisfying Administrative Expense Claims in full on the Plan's effective date. The estimated amount of unpaid Administrative Expense Claims is $976,967. The Plan divides the Claims against and Interests in the Debtors into these Classes: * Class 1 - Prestige Capital Corporation Secured Claim; * Class 2 - Cloudeeva Delaware's General Unsecured Claim; * Class 3 - BAPL Claim; * Class 4 - Cloudeeva Florida's General Unsecured Claim; * Class 5 - Priority Non-Tax Wage Claims Under 11 U.S.C. Section 507(a)(4); * Class 6 - Cloudeeva Delaware Equity Interests; and * Class 7 - Cloudeeva Florida Equity Interests. Priority Tax Claims, the Secured Claim in Class 1, and Priority Non-Tax Claims in Class 5 will be paid in full over time. The estimated amount of unpaid Priority Tax Claims is $1,014,701. All holders of Allowed Unsecured Claims in Classes 2 and 4 will be paid 50% of their Allowed Claims over five years. Bartronics Asia Pte Ltd. (BAPL), whose Claim is in Class 3, will be paid 50% of its Allowed Claims over five years. BAPL, a Singapore corporation, owns 62% of Cloudeeva Florida. Equity Interests in Classes 6 and 7 will be extinguished. The Plan will be funded by cash on-hand on the Effective Date, cash revenues derived from the Debtors' continued operations, and investment of $1.15 million from Cloudeeva India Private Limited or their designee, along with their guarantee of all payments to be made under Plan, in exchange for the equity of the Reorganized Debtors, as agreed in the parties' Plan Support Agreement. The Reorganized Debtors will act as the Disbursing Agent for the purposes of making distributions provided for under the Plan. Copies of the Plan, the Disclosure Statement and the Plan Support Agreement are available for free at: * http://bankrupt.com/misc/Cloudeeva_Plan_10072014.pdf * http://bankrupt.com/misc/Cloudeeva_DS_10072014.pdf * http://bankrupt.com/misc/Cloudeeva_PlanSupportA.pdf About Cloudeeva Cloudeeva, Inc., a public company previously known as Systems America, Inc., is a global cloud services and technology solutions company specializing in cloud, big data and mobility solutions and services. The company provides information technology staffing services to major clients and third party vendors in the United States and India. The company headquarters are in East Windsor, New Jersey, with regional offices in California, Illinois and international offices in India. Cloudeeva, Inc., and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-24874) in Trenton, New Jersey, on July 21, 2014. The cases are assigned to Judge Kathryn C. Ferguson. Cloudeeva disclosed $4,989,375 in assets and $6,528,910 in liabilities as of the Chapter 11 filing. The company said only $209,000 is owing to its lender Prestige Capital Corp. and more than $5.2 million is owed for trade vendor payables. The Debtors originally tapped Lowenstein Sandler LLP as counsel. However, they are now seeking the retention of Trenk, DiPasquale, Della Fera & Sodono, P.C., to replace Lowenstein Sandler, who retention was not formally approved by order of the Court. The Debtors have also tapped Cole, Schotz, Meisel, Forman & Leonard, P.A. as appellate counsel. Kurtzman Carson Consultants LLC serves as claims and noticing agent. * * * On Aug. 22, 2014, Judge Ferguson entered an order dismissing the Debtors' Chapter 11 cases at the behest of Bartronics Asia PTE Ltd. BAPL asserted that the cases were not filed in good faith. The Debtors subsequently filed an appeal challenging the dismissal of their cases. Since then, District Judge Joel A. Pisano for the District of New Jersey entered an order staying the Case Dismissal Order pending further proceedings. Simultaneously, Judge Pisano reinstated the Debtors' bankruptcy cases and authorized the Debtors to be in possession of their assets and the management of their business as debtors-in-possession, subject to the continuing jurisdiction of the Bankruptcy Court and any further orders of the Bankruptcy Court or the District Court. According to the docket, the Debtors' exclusive right to file a plan expires on Nov. 18, 2014. CLOUDEEVA INC: Has Until Feb. 16 to Assume or Reject Leases ----------------------------------------------------------- The Bankruptcy Court extended until Feb. 16, 2015, Cloudeeva, Inc., et al.'s deadline to assume or reject their nonresidential real property leases. ML7 Windsor, LLC, landlord, objected to the Debtors' motion stating that the Court must deny the rejection of the lease because the Debtors have failed to establish that rejection of the lease will provide a benefit to the estate. The Debtors and ML7 Windsor entered into an agreement on Oct. 28, 2011, for the purpose of leasing certain premises located at 101 Windsor Center Drive, Suite 300, East Windsor, New Jersey. Those premises are the current corporate headquarters for Cloudeeva Delaware. The Debtors are represented by: Edward M. Bernstein, Esq. Bernstein & Manahan, LLC 3120 Princeton Pike, Suite 302 Lawrenceville, NJ 08648 Tel: (609) 895-9001 E-mail: emb41w@aol.com About Cloudeeva, Inc. Cloudeeva, Inc., a public company previously known as Systems America, Inc., is a global cloud services and technology solutions company specializing in cloud, big data and mobility solutions and services. The company provides information technology staffing services to major clients and third party vendors in the United States and India. The company headquarters are in East Windsor, New Jersey, with regional offices in California, Illinois and international offices in India. Cloudeeva, Inc., and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-24874) in Trenton, New Jersey, on July 21, 2014. The cases are assigned to Judge Kathryn C. Ferguson. Cloudeeva disclosed $4,989,375 in assets and $6,528,910 in liabilities as of the Chapter 11 filing. The company said only $209,000 is owing to its lender Prestige Capital Corp. and more than $5.2 million is owed for trade vendor payables. The Debtors originally tapped Lowenstein Sandler LLP as counsel. However, they are now seeking the retention of Trenk, DiPasquale, Della Fera & Sodono, P.C., to replace Lowenstein Sandler, who retention was not formally approved by order of the Court. The Debtors have also tapped Cole, Schotz, Meisel, Forman & Leonard, P.A. as appellate counsel. Kurtzman Carson Consultants LLC serves as claims and noticing agent. * * * On Aug. 22, 2014, Judge Ferguson entered an order dismissing the Debtors' Chapter 11 cases at the behest of Bartronics Asia PTE Ltd. BAPL asserted that the cases were not filed in good faith. The Debtors subsequently filed an appeal challenging the dismissal of their cases. Since then, District Judge Joel A. Pisano for the District of New Jersey entered an order staying the Case Dismissal Order pending further proceedings. Simultaneously, Judge Pisano reinstated the Debtors' bankruptcy cases and authorized the Debtors to be in possession of their assets and the management of their business as debtors-in-possession, subject to the continuing jurisdiction of the Bankruptcy Court and any further orders of the Bankruptcy Court or the District Court. According to the docket, the Debtors' exclusive right to file a plan expires on Nov. 18, 2014. CLOUDEEVA INC: Bartronics Asia's Bid for Case Dismissal Denied -------------------------------------------------------------- U.S. Bankruptcy Judge Kathryn C. Ferguson denied Bartronics Asia PTE. Ltd.'s motion to dismiss the Chapter 11 case of Cloudeeva, Inc., or appoint a chapter 11 trustee. According to the order, Cloudeeva's arguments in opposition to the motion to lift stay are both flawed as a matter of law and fundamentally inconsistent with Cloudeeva's conduct and representations in the cases to date. As reported in the Troubled Company Reporter on Oct. 21, 2014, the case dismissal was sought by Bartronics Asia, claiming that the cases were not filed in good faith. The Debtors denied the allegations. Judge Ferguson granted the case dismissal bid on Aug. 22, 2014. The Debtor subsequently filed an appeal from the Dismissal Order. At the Debtor's behest, District Judge Joel A. Pisano for the District of New Jersey stayed the dismissal order pending further proceedings before the District Court. About Cloudeeva, Inc. Cloudeeva, Inc., a public company previously known as Systems America, Inc., is a global cloud services and technology solutions company specializing in cloud, big data and mobility solutions and services. The company provides information technology staffing services to major clients and third party vendors in the United States and India. The company headquarters are in East Windsor, New Jersey, with regional offices in California, Illinois and international offices in India. Cloudeeva, Inc., and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-24874) in Trenton, New Jersey, on July 21, 2014. The cases are assigned to Judge Kathryn C. Ferguson. Cloudeeva disclosed $4,989,375 in assets and $6,528,910 in liabilities as of the Chapter 11 filing. The company said only $209,000 is owing to its lender Prestige Capital Corp. and more than $5.2 million is owed for trade vendor payables. The Debtors originally tapped Lowenstein Sandler LLP as counsel. However, they are now seeking the retention of Trenk, DiPasquale, Della Fera & Sodono, P.C., to replace Lowenstein Sandler, who retention was not formally approved by order of the Court. The Debtors have also tapped Cole, Schotz, Meisel, Forman & Leonard, P.A. as appellate counsel. Kurtzman Carson Consultants LLC serves as claims and noticing agent. * * * On Aug. 22, 2014, Judge Ferguson entered an order dismissing the Debtors' Chapter 11 cases at the behest of Bartronics Asia PTE Ltd. BAPL asserted that the cases were not filed in good faith. The Debtors subsequently filed an appeal challenging the dismissal of their cases. Since then, District Judge Joel A. Pisano for the District of New Jersey entered an order staying the Case Dismissal Order pending further proceedings. Simultaneously, Judge Pisano reinstated the Debtors' bankruptcy cases and authorized the Debtors to be in possession of their assets and the management of their business as debtors-in-possession, subject to the continuing jurisdiction of the Bankruptcy Court and any further orders of the Bankruptcy Court or the District Court. According to the docket, the Debtors' exclusive right to file a plan expires on Nov. 18, 2014. COCRYSTAL PHARMA: 2 Directors Quit Over Proposed RFS Merger ----------------------------------------------------------- Dr. Roger Kornberg and Dr. Sam Lee resigned from the Board of Directors of Cocrystal Pharma, Inc., in connection with the Company's entry into an agreement and plan of merger with RFS Pharma, LLC, on Nov. 25, 2014. Cocrystal Pharma closed its merger with RFS Pharma, LLC, a privately owned biotech company founded by renowned drug developer, Dr. Raymond Schinazi. Since 2004, RFS Pharma has been working on the development of innovative drugs to treat human viral diseases. The shareholders of Cocrystal and of RFS Pharma each own approximately 50% of the combined company on a fully diluted basis following the merger. Dr. Raymond F. Schinazi, Founder and Chairman of the Board of Directors at RFS Pharma said, "This merger will produce significant advances in innovation and research productivity. We are excited to join forces with Cocrystal to extend our product portfolio. The skill set and technology that the Cocrystal team brings to the combined company is highly synergistic with RFS Pharma's programs. Together, we will be able to flourish as an organization that can accelerate progress towards drug approval of novel treatments and cures for serious viral diseases." "We are enthusiastic about this merger, as the combined platform builds on both companies' technological strengths and will further enhance the opportunity to develop superior drugs to treat major viral infections," said Dr. Gary Wilcox, CEO and Co-Chairman of the Board of the combined company. "We believe the strategic benefits of the merger with RFS Pharma will greatly enhance the value of our product portfolio. Dr. Schinazi, a leader in nucleoside chemistry and biology, was the founder of several successful biotechnology companies including Pharmasset, Inc., (VRUS; acquired by Gilead for $11.4 B in 2012), Idenix Pharmaceuticals (IDIX; acquired by Merck for $3.85 B in 2014) and Triangle Pharmaceuticals (VIRS; acquired by Gilead in 2003)." The directors of the combined company are Phillip Frost, Gary Wilcox, Steven D. Rubin, Jane Hsiao, David Block, Jeffrey Meckler and Raymond F. Schinazi. Gary Wilcox and Raymond Schinazi will serve as Co-Chairmen of Cocrystal. The combined company intends to have a broad pipeline of products targeting hepatitis, influenza, rhinovirus, dengue fever and norovirus (with several classes of agents such as nucleoside prodrugs, NS5A inhibitors, non- nucleoside inhibitors, and helicase inhibitors) and will capitalize on RFS Pharma's innovative longstanding nucleoside experience merged with Cocrystal's unique drug design expertise. Dr. Roger Kornberg, one of the founders of Cocrystal, will serve as the Chief Scientific Officer for the combined company. Dr. Kornberg received the 2006 Nobel Prize in Chemistry and is Professor of Structural Biology at Stanford University School of Medicine. About Cocrystal Pharma Cocrystal Pharma, Inc., formerly known as Biozone Pharmaceuticals, Inc., is a pharmaceutical company with a mission to discover novel antiviral therapeutics as treatments for serious and/or chronic viral diseases. Cocrystal Pharma employs unique technologies and Nobel Prize winning expertise to create first- and best-in-class antiviral drugs. These technologies and the Company's market- focused approach to drug discovery are designed to efficiently deliver small molecule therapeutics that are safe, effective and convenient to administer. The Company's primary business going forward is to develop novel medicines for use in the treatment of human viral diseases. Cocrystal has been developing novel technologies and approaches to create first-in-class and best-in-class antiviral drug candidates since its initial funding in 2008. Subsequent funding was provided to Cocrystal Discovery, Inc., by Teva Pharmaceuticals Industries, Ltd., or Teva, in 2011. The Company's focus is to pursue the development and commercialization of broad-spectrum antiviral drug candidates that will transform the treatment and prophylaxis of viral diseases in humans. By concentrating the Company's research and development efforts on viral replication inhibitors, the Company plans to leverage its infrastructure and expertise in these areas. Biozone incurred a net loss of $7.96 million in 2012, as compared with a net loss of $5.45 million in 2011. As of Sept. 30, 2014, the Company had $11.63 million in total assets, $7.65 million in total liabilities and $3.97 million in total stockholders' equity. Paritz and Company. P.A., in Hackensack, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred operating losses for its last two fiscal years, has a working capital deficiency of $5,255,220, and an accumulated deficit of $14,128,079. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. COMMACK HOSPITALITY: Wins Confirmation of Reorganization Plan ------------------------------------------------------------- The U.S. Bankruptcy Court entered an order confirming the Revised Second Amended Plan of Reorganization for Commack Hospitality, LLC. The Court also ordered that all objections to confirmation of the Plan had been resolved or overruled. Stabilis Master Fund III, LLC, filed a limited objection to the revised Second Amended Plan dated Oct. 24, 2014, stating that under the Plan, the Debtor proposes to sell the property to Rover, LLC. The Plan further provides that on the Effective Date of the Plan, the Debtor will only pay $10,996,257 to Stabilis. Additionally, the asset purchase agreement with Rover provides that a closing will occur on Jan. 15, 2015. Stabilis is concerned that if the closing of the sale of the property to Rover does not occur, the Chapter 11 case will remain pending and confirmation of the Plan will not and cannot become effective. Stabilis is represented by: Michael V. Blumenthal, Esq. THOMPSON & KNIGHT LLP 900 Third Avenue, 20th Floor New York, NY 10022 Tel: (212) 751-3001 Fax: (212) 751-3113 E-mail: michael.blumenthal@tklaw.com About Commack Hospitality Commack Hospitality, LLC, filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y. Case No. 14-70931) on March 10, 2014. The petition was signed by Viral Patel as managing member. In its schedules and statements, the Debtor listed $17 million in assets and $13 million in liabilities. Laurence May, Esq., and Mark Tsukerman, Esq., of Cole Schotz Meisel Forman & Leonard PA serve as the Debtor's counsel. Judge Alan S. Trust presides over the case. COUNTRY STONE: Files Schedules of Assets and Liabilities -------------------------------------------------------- Country Stone Holdings, Inc., filed with the U.S. Bankruptcy Court for the Central District of Illinois its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $0 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $38,221,833 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $6,979,996 ----------- ----------- TOTAL $0 $45,201,829 About Country Stone Country Stone Holdings, Inc., and its affiliates are in the business of manufacturing, processing, and packaging lawn and garden products such as mulch, soil, fertilizer, plant food, organics, concrete and decorative stone. The corporate headquarters are located in Rock Island, Illinois and Milan, Illinois. Country Stone operates 17 plants throughout the United States, including in Illinois, Iowa, Indiana, Minnesota, Wisconsin, Missouri, and California. Country Stone Holdings and its affiliates sought bankruptcy protection (Bankr. C.D. Ill., Lead Case No. 14-81854) in Peoria, Illinois, on Oct. 23, 2014, with a deal to sell to Quikrete Holdings, Inc., for $23 million in cash plus the assumption of liabilities, subject to higher and better offers. The bankruptcy cases are assigned to Judge Thomas L. Perkins. The Debtors have tapped Katten Muchin Rosenman LLP as counsel; Silverman Consulting to provide the services of Steven Nerger as CRO and Michael Compton as cash and restructuring manager; and Epiq Bankruptcy Solutions, LLC as claims, noticing and balloting agent. Nancy J. Gargula, U.S. Trustee for the Central District of Illinois, has appointed five creditors to serve in the official unsecured creditors committee in the Debtors' cases. COUTURE HOTEL: Use of Lenders' Cash Collateral Has Final Approval ----------------------------------------------------------------- The U.S. Bankruptcy Court, in a final order, authorized Couture Hotel Corporation also known as Hugh Black-St Mary Enterprises, Inc., to use cash collateral of the secured lenders. The Debtor, in its amended motion, said that it will use the cash created from the use of the real property and other personal property related to the Corpus Hotel and the Dallas Hotel to pay the reasonable and necessary operating expenses, including, but not limited to, salaries and payroll, supplies, routine repair and maintenance expenses, taxes, and insurance. The Debtor will also use cash collateral for the payment of any U.S. Trustee fees and the approved expenses within a 10% variance of each item in the budgets, unless Ability Insurance Company and Mansa Capital LLC agree in writing to a greater variance, but in no event more than a 5% variance of the total amount set. The Court also ordered that in the event the Debtor has not confirmed a plan of reorganization in the case prior to March 30, 2015, the Debtor will provide proposed, supplemental six-month budgets. The Debtor must provide a copy of the proposed supplemental budgets to Ability and Mansa on or before March 1, and no later than 30 days prior to the expiration of any other subsequent budget period. The Court further ordered that the Debtor and any secured party has until Jan. 4, 2015, to investigate and examine whether all liens and security interests asserted by Ability, Mansa and any tax lender are properly perfected, valid, continuing, fully enforceable, unavoidable and indefeasible in this bankruptcy case or otherwise. A copy of the approved budget is available for free at: http://bankrupt.com/misc/CoutureHotel_88_finalCCorder.pdf Parties-in interest had objected to the Debtor's amended motion. Mansa specifically objected on certain inappropriate expenses that appear to be designed to grant payments to the equity holders and family members who are, at best, junior creditors. Mansa's interest continues to accrue on its loan to the Debtor at approximately $96,000 per month, well as other property taxes that are and will continue to accrue on the hotel. The Texas Comptroller of Public Accounts, in its objections, requested that it be granted adequate protection for its trust fund taxes pursuant to Section 363(e) of the Bankruptcy Code. The Debtor is represented by: Gerrit M. Pronske, Esq. Jason P. Kathman, Esq. PRONSKE GOOLSBY & KATHMAN, P.C. 2200 Ross Avenue, Suite 5350 Dallas, TX 75201 Tel: (214) 658-6500 Fax: (214) 658-6509 E-mail: gpronske@pgkpc.com jkathman@pgkpc.com Mansa is represented by: Charles S. Kelley, Esq. Quinncy N. McNeal, Esq. Joshua M. Grenard, Esq. MAYER, BROWN LLP 700 Louisiana Street, Suite 3400 Houston, TX 77002-2730 Tel: (713) 238-3000 Fax: (713) 238-4625 About Couture Hotel Couture Hotel Corporation owns and operates four hotels: a Wyndham Garden Inn in Dallas, Texas, consisting of 356 rooms and remodeled in 2013; a Howard Johnson in Corpus Christi, Texas, consisting of 140 rooms and remodeled in 2012; a Howard Johnson in Las Vegas, Nevada, consisting of 110 rooms and remodeled in 2012; and an independent hotel in Las Vegas, Nevada (formerly branded as a Value Place), consisting of 121 rooms and also remodeled in 2012. The Las Vegas hotels are located at one of the entrances to Nellis Air Force base in North Las Vegas. The Debtor owns the real property and improvements, as well as the franchise rights to the hotels (except for Las Vegas Value Place). The Company sought Chapter 11 protection (Bankr. N.D. Tex. Case No. 14-34874) in Dallas, Texas, on Oct. 7, 2014. The case is assigned to Judge Barbara J. Houser. The Debtor has tapped Mark Sean Toronjo, Esq., at Toronjo & Prosser Law, as counsel. The Debtor estimated assets and debt in the range of $10 million to $50 million as of the bankruptcy filing. No creditors' committee or other official committee been appointed in the case. CRUNCHIES FOOD: Taps Province Inc. & P. Kravitz as CRO ------------------------------------------------------ Crunchies Food Company seeks Bankruptcy Court permission to employ Peter S. Kravitz of Province, Inc., as its chief restructuring officer effective as of Oct. 6, 2013. As CRO, Mr. Kravitz, is expected to provide these services: (a) Direct the operation of the Debtor's business; (b) Oversee the preparation of all final information; and (c) Approve and disburse all cash disbursement, including capital expenditures in order to maximize, protect and preserve the assets of the Debtor. The Debtor will pay Province, Inc., a flat fee of $15,000 for the contemplated services of the chief restructuring officer through Oct. 14, 2014, and $2,000 per calendar day for services rendered thereafter. As of Oct. 23, 2014, the Debtor has paid the firm $25,000. Province Inc. has agreed to accept $5,000 as flat fee, without proration for services through Dec. 22, 2014, instead of the previously agreed upon rate of $2,000 per calendar day. The Debtor will also reimburse Province Inc. for expenses, at cost without mark up, for items such as postage, parking, photocopying, reproduction and biding, messenger fees, express mail, and other similar items. Peter S. Kravitz, a professional of Province Inc., assures the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm may be reached at: Peter S. Kravitz PROVINCE INC 5915 Edmond Street, Suite 102 Las Vegas, NV 89118 Tel: (702) 685-5555 Fax: (702) 685-5555 E-mail: pkravitz@provincefirm.com About Crunchies Food Crunchies Food Company filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-bk-11776) in Santa Barbara, California, on August 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. Silver Law Group, P.C. acts as special corporate counsel. The U.S. Trustee for Region 16 has appointed four creditors to serve in the official unsecured creditors committee in the Debtor's case. Sheppard, Mullin, Richter & Hampton LLP acts as the panel's counsel. DAHL'S FOOD: U.S. Trustee Forms Unsecured Creditors' Committee -------------------------------------------------------------- The U.S. Trustee for Region 12 appointed four creditors of Foods, Inc. to serve on the official committee of unsecured creditors: (1) Anderson Erickson Dairy Co, Inc. Attn: Warren Erickson 2420 E. University Avenue Des Moines, IA 50317 Phone: (515) 265-2521 Fax: (515) 471-7898 E-mail: warren@aedairy.com (2) Thrifty Drug Stores, Inc. Attn: Mark Basco 6055 Nathan Lane N, Suit 200 Plymouth, MN 55442 Phone: (763) 513-4345 Fax: (763) 513-4395 E-mail: mbasco@thriftywhite.com (3) Johnson Brothers Liquor Co. Dba Johnson Brothers of Iowa Attn: Fred Richards 2515 Dean Avenue Des Moines, IA 50317 Phone: (651) 637-3343 Fax: (651) 637-3240 E-mail: frichards2@johnsonbrothers.com (4) PepsiCo, Inc. Attn: Taylor Ricketts 1100 Reynolds Blvd Winston-Salem, NC 27105 Phone: (336) 896-5863 Fax: (336) 896-6003 E-mail: taylor.ricketts2@pepsico.com Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Dahl's Foods Dahl's Foods owns and operates 10 full-line grocery stores in and around the Des Moines, Iowa area. Since the 1970s, Dahl's has been employee owned pursuant to an ESOP with 97% of the ownership held by the ESOP. The remaining 3% is owned by certain past and present members of management and other former employees. Individual grocery store square footage ranges from 28,820 to 70,000 and averages 55,188. Dahl's employs over 950 people. For the 52 weeks ended June 28, 2014, Dahl's generated sales of $136.8 million. Foods, Inc. dba Dahl's Foods, Dahl's Food Mart, Inc., and Dahl's Holdings I, LLC, sought bankruptcy protection (Bankr. S.D. Iowa Lead Case No. 14-02689) in Des Moines, Iowa on Nov. 9, 2014, with a deal to sell to Associated Wholesale Grocers Inc. for $4.8 million. The Debtors have tapped Bradshaw, Fowler, Proctor & Fairgrave, P.C., as bankruptcy counsel, Crowe & Dunlevy, P.C., as special reorganization and conflicts counsel, and The Food Partners, LLC, as financial advisor and investment banker. Associated Wholesale Grocers, Inc., the Debtors' prepetition lender, committed to provide a senior secured, super-priority term credit facility of up to $6,649,623. As of the Petition Date, Debtors owe AWG the aggregate amount of approximately $3.2 million. AWG is represented by Christopher J. Rockers, Esq., at Husch Blackwell LLP, in Kansas City, Missouri. DALLAS ROADSTER: Hike of Roger Sanders Cap Facing Objections ------------------------------------------------------------ Objections have been raised to Dallas Roadster, Limited and IEDA Enterprise, Inc.'s motion to modify the order approving the hiring of Roger Sanders as special counsel in order to remove the $100,000 cap. Texas Capital Bank, N.A., says the Debtors failed to set forth a sufficient basis to modify the order. William T. Neary, the U.S. Trustee for Region 6, states that the motion does not address how the increase in expenses will affect Debtors' ability and timing of making payments under the Plan. The impact on creditors is not discussed in the motion, the U.S. Trustee points out. As reported in the TCR, the Court on June 18, 2013, approved the employment of Roger Sanders and his law firm as special counsel for Debtors. When the Court granted the Debtors' motion to employ Sanders, the Court modified the provision in the proposed employment contract for funding litigation expenses. The condition imposed by the Court was that the Debtors were limited to contributing $100,000 toward reimbursable expenses. According to the Debtors, cause exists for the Court to grant Sanders relief from that part of the employment order limiting the Debtors to a $100,000 cap on funding expenses. To date, Sanders had expended $140,744. Sanders also incurred $16,719 for the expenses, and Sanders will have advanced almost $60,000 more than the Debtors are currently permitted to reimburse. Sanders will have incurred approximately $200,000 in expenses, with only $100,000 reimbursed by the Debtors. The Debtors further submit that in order to demonstrate that there is a substantial reality to the request, it was necessary for Sanders to advance funds to reflect his belief in the merits of the case. Final Pretrial conference and trial scheduling is set for Dec. 1. All indications are that the trial will proceed absent a dispositive ruling or settlement between now and then. By the time this motion is addressed by the Court, it is quite likely more will be known about the additional expenses currently estimated. Texas Capital is represented by: Kenneth Stohner, Jr. JACKSON WALKER L.L.P. 901 Main Street, Suite 6000 Dallas, TX 75202 Tel: (214) 953-6000 Fax: (214) 953-5822 About Dallas Roadster and IEDA Enterprises Dallas Roadster, Limited, owns and operates an auto dealership with locations in both Richardson and Plano, Texas. IEDA Enterprises, Inc., is the general partner of Roadster. Dallas Roadster and IEDA Enterprises filed for Chapter 11 bankruptcy (Bankr. E.D. Tex. Case Nos. 11-43725 and 11-43726) on Dec. 12, 2011. Chief Judge Brenda T. Rhoades oversees both cases. J. Bennett White, P.C., replaced DeMarco Mitchell, PLLC, as the Debtors' bankruptcy counsel. Dallas Roadster disclosed $9,407,469 in assets and $4,554,517 in liabilities as of the Chapter 11 filing. The Debtors' assets were placed under the care of a receiver on Nov. 16, 2011, pursuant to a state court action by Texas Capital Bank, National Association. No trustee has been appointed in the Chapter 11 cases. DBSI INC: Ex-President Faces SEC Admin Suit Over Ponzi Scheme ------------------------------------------------------------- Law360 reported that the U.S. Securities and Exchange Commission suspended and filed an administrative complaint against the former president of DBSI Inc. following his August sentencing by an Idaho federal judge to 20 years in prison for his role in running a Ponzi-like scheme through the bankrupt real estate firm. According to the report, in an order instituting administrative proceedings, the SEC barred Douglas L. Swenson, who was convicted in April on 44 counts of securities fraud and 34 counts of wire fraud, from appearing or practicing before the commission. About DBSI Inc. Headquartered in Meridian, Idaho, DBSI Inc. and its affiliates were engaged in numerous commercial real estate and non-real estate projects and businesses. On Nov. 10, 2008, and other subsequent dates, DBSI and 180 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-12687). DBSI estimated assets and debts between $100 million and $500 million as of the Chapter 11 filing. Lawyers at Young Conaway Stargatt & Taylor LLP represent the Debtors as counsel. The Official Committee of Unsecured Creditors tapped Greenberg Traurig, LLP, as its bankruptcy counsel. Kurtzman Carson Consultants LLC is the Debtors' notice claims and balloting agent. Joshua Hochberg, a former head of the Justice Department fraud unit, served as an Examiner and called the seller and servicer of fractional interests in commercial real estate an "elaborate shell game" that "consistently operated at a loss" in his report released in October 2009. McKenna Long & Aldridge LLP was counsel to the Examiner. On Sept. 11, 2009, the Honorable Peter J. Walsh entered an Order appointing James R. Zazzali as Chapter 11 trustee for the Debtors' estates. On Oct. 26, 2010, the trustee won confirmation of the Second Amended Joint Chapter 11 Plan of Liquidation for DBSI, paving the way for it to pay creditors and avoid years of expensive litigation over its complex web of affiliates. The plan, which was declared effective Oct. 29, 2010, was co-proposed by DBSI's unsecured creditors committee. Pursuant to the confirmed Chapter 11 plan, the DBSI Real Estate Liquidating Trust was established as of the effective date and certain of the Debtors' assets, including the Debtors' ownership interest in Florissant Market Place was transferred to the RE Trust. Mr. Zazzali and Conrad Myers were appointed as the post- confirmation trustees. Messrs. Zazzali and Myers are represented by lawyers at Blank Rime LLP and Gibbons P.C. DIGITAL DOMAIN: Access to Cash Collateral Expires Dec. 5 -------------------------------------------------------- The U.S. Bankruptcy Court has authorized DDMG Estate, et al., to use cash collateral until Dec. 5, 2014, or on the occurrence of a termination date, according to a 17th amendment to the Final DIP and Cash Collateral Order. A copy of the approved budget is available for free at: http://bankrupt.com/misc/DigitalDomain_7thA_DIPorder.pdf About Digital Domain Port St. Lucie, Florida-based Digital Domain Media Group, Inc. -- http://www.digitaldomain.com/-- engaged in the creation of original content animation feature films, and development of computer-generated imagery for feature films and trans-media advertising primarily in the United States. Digital Domain Media Group, Inc. and 13 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-12568) on Sept. 11, 2012, to sell its business for $15 million to Searchlight Capital Partners LP, subject to higher and better offers. The Company disclosed assets of $205 million and liabilities totaling $214 million. The Debtors also have sought ancillary relief in Canada, pursuant to the Companies' Creditors Arrangement Act in the Supreme Court of British Columbia, Vancouver Registry. Attorneys at Pachulski Stang Ziehl & Jones serve as counsel to the Debtors. FTI Consulting, Inc.'s Michael Katzenstein is the chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. An official committee of unsecured creditors appointed in the case is represented by lawyers at Sullivan Hazeltine Allinson LLC and Brown Rudnick LLP. At a bankruptcy auction, the principal part of the business was purchased by a joint venture between Galloping Horse America LLC, an affiliate of Beijing Galloping Horse Co., and an affiliate of Reliance Capital Ltd., based in Mumbai. The $36.7 million total value of the contact includes $3.6 million to cure defaults on contracts and $2.9 million in reimbursement of payroll costs. As the result of a settlement negotiated by the unsecured creditors' committee with secured lenders, there will be some recovery for the committee's constituency. DYNAVOX INC: Ernst & Young to Provide Additional Services --------------------------------------------------------- The Bankruptcy Court will convene a hearing on Dec. 3, 2014, at 9:30 a.m., to consider Dynavox Inc., et al.'s supplemental application for an order expanding the scope of employment of Ernst & Young LLP. The Debtor requested to include additional tax compliance services nunc pro tunc to Oct. 30, 2014. As reported in the TCR on Oct. 15, 2014, the Debtor sought and obtained approval from the Court to employ EY LLP as its tax advisor. In the supplemental application, the Debtors said that EY LLP agreed to prepare each of Dyna Vox Inc., Systems Holdings, and Intermediate's respective U.S. federal income tax returns and state tax returns, for the tax year ending on June 30, 2014. The Debtors assure the Court that none of the tax compliance services are duplicative of any services being provided to the Debtors by other professionals in the chapter 11 cases. EY LLP will charge for the tax compliance services on an hourly basis at a rate of $160, with a cap on fees for the tax compliance services of $277,000. EY LLP will charge the same hourly rate for the additional tax compliance services as it does for the original tax compliance services pursuant to the engagement letter as approved in the original retention order. Based on the additional services, the cap on the overall tax compliance services will increase from $172,000 to $277,000. About Dynavox Inc. DynaVox Intermediate LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 14-10785) on April 6, 2014. Two of its affiliates, DynaVox Inc. and DynaVox Systems Holdings LLC, also filed for bankruptcy (Case Nos. 14-10791 and 14-10790) the following day. The Debtors estimated assets and debts of at least $10 million. Cousins, Chipman & Brown, LLP, serves as the Debtors' counsel. Judge Peter J. Walsh presides over the case. DynaVox Inc. (OTC: DVOX) is a holding Company with its headquarters in Pittsburgh, Pennsylvania, whose primary operating entities are DynaVox Systems LLC and Mayer-Johnson LLC. DynaVox provides speech generating devices and symbol-adapted special education software to assist individuals in overcoming their speech, language and learning challenges. The Troubled Company Reporter, on May 30, 2014, citing Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that the Bankruptcy Court approved the sale of DynaVox Inc.'s business for $18 million to Tobii Technology AB from Danderyd, Sweden. The price fully pays $14.5 million in secured debt owing to JEC-BR Partners LLC, a venture between FEC-BR Partners LLC and JEC Capital Partners LLC. No trustee, examiner, or committee has been appointed in any of the Debtors' chapter 11 cases. EAT AT JOE'S: Amends 2013 Fiscal Year Report -------------------------------------------- Eat at Joe's Ltd. filed with the U.S. Securities and Exchange Commission an amendment to its annual report on Form 10-K for the year ended Dec. 31, 2013. Robison, Hill & Co. expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has suffered recurring losses from operations and has a net capital deficiency. The Company reported a net loss of $1.38 million on $1.31 million of revenues for the year ended Dec. 31, 2013, compared to a net income of $2.85 million on $1.12 million of revenues in 2012. The Company's balance sheet at Dec. 31, 2013, showed $7.61 million in total assets, $10.48 million in total liabilities and total stockholders' deficit of $2.88 million. A copy of the Form 10-K/A is available at: http://is.gd/oB2z1n Amendments to Quarterly Financials Eat at Joe's filed an amendment to its quarterly report on Form 10-Q, for the quarter ended March 31, 2014. A copy of the Form 10-Q/A is available at http://is.gd/vNfTT8 Eat at Joe's filed an amendment to its quarterly report on Form 10-Q for the three months ended June 30, 2014. A copy of the Form 10-Q/A is available at http://is.gd/rykVKv About Eat at Joe's Scarsdale, N.Y.-based Eat at Joe's, Ltd., presently owns and operates one theme restaurant located in Philadelphia, Pennsylvania. Eat at Joe's reported a net loss of $1.38 million in 2013 following net income of $2.84 million on in 2012. Robison, Hill & Co., in Salt Lake City, Utah, 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 raising substantial doubt about its ability to continue as a going concern. EDUCATION MANAGEMENT: Grudge Brought Restructuring to Standstill ---------------------------------------------------------------- Law360 reported that an ad hoc committee of lenders to bankrupt college operator Education Management Corp. accused two noteholders of trying to stop the company's restructuring process out of a grudge against KKR Credit Advisors, one of EDMC's other lenders. According to the report, EDMC said in a motion that hedge fund Marblegate Asset Management and Magnolia Road Capital LP, which together owned $20 million in EDMC's debt, were driven not by financial responsibility but by revenge, after a perceived mistreatment by KKR in a different transaction. The case is Marblegate Asset Management LLC et al v. Education Management Corp. et al, case number 1:14-cv-08584-KPF in the U.S. District Court for the Southern District of New York. About Education Management Education Management LLC, an indirect subsidiary of Education Management Corporation based in Pittsburgh, Pennsylvania, is one of the largest providers of private post-secondary education in North America. The company's education systems (The Art Institutes, Argosy University, Brown Mackie Colleges and South University) offer associate through doctorate degrees with approximately 120,000 students. The company reported revenues of approximately $2.4 billion for the twelve months ended March 31, 2014. * * * As reported by the TCR on Nov. 19, 2014, Standard & Poor's Ratings Services said that it lowered its corporate credit rating on Pittsburgh-based for-profit post-secondary school operator Education Management LLC (EDMC) to 'D' from 'CC'. The rating actions follow the amendment to the company's credit facilities that waived all financial covenants and substituted the originally agreed upon cash interest and principal payments for a payment-in- kind (PIK structure). Moody's Investors Service has lowered the ratings of for-profit post-secondary education company Education Management LLC, including the Corporate Family Rating ("CFR") to Caa3 from Caa1, and changed the outlook to negative from stable, the TCR reported on May 6, 2014. The ratings were downgraded in consideration of a financial restructuring program that the company intends to undertake, which Moody's believes could entail a distressed exchange for debt. ELBIT IMAGING: Unit's Shareholders Approve Restructuring Plan ------------------------------------------------------------- Plaza Centers N.V., Elbit Imaging Ltd.'s subsidiary, announced that Plaza's shareholders have approved the proposed rights offering which forms part of Plaza's restructuring plan. As previously announced, the Rights Offering will be priced at Euro 0.0675 per share. Plaza also announced that the Rights Offering is open. Following the approval of Plaza's shareholders, and the subsequent opening of the Rights Offering, Elbit Ultrasound (Luxembourg) B.V. / S. a. r. l. , a wholly owned subsidiary of the Company, and Burlington Loan Management Limited, an affiliate of Davidson Kempner Capital Management LP, have made capital injections in the aggregate amount of EUR 20 million into Plaza, by way of depositing the funds, out of which Euro 12.5 million were deposited by EUL and Euro 7.5 million were deposited by BLML. EUL has taken up the required number of shares immediately following the opening of the Rights Offering and, as part of the capital injection, has, together with BLML, deposited an aggregate of Euro 20 million up front in order to ensure that the capital injection required under Plaza's restructuring plan takes place before Nov. 30, 2014. The funds have been received by Plaza and are currently held in the third party account of a Dutch civil-law notary, for the account of Plaza. The aggregate number of shares to be issued to EUL and BLML, and the aggregate price paid by them, may be reduced, as a result of the participation by other shareholders of Plaza in the Rights Offering. According to the provisions of the agreements between parties, EUL may require that a certain number of shares will be subscribed for by and issued to BLML. The determination of the number of shares to be issued to each of EUL and BLML and the issuance and settlement of the relevant shares to EUL and BLML will take place following the closing of the Rights Offering. EUL intends to subscribe for Plaza's shares in consideration for an aggregate purchase price which will not exceed Euro 10 million and to procure that BLML will subscribe for the remaining amount of Plaza's shares EUL has taken up or committed to take up pursuant to the Undertaking described in the abovementioned previous announcements. In addition, as part of Plaza's restructuring plan and following the filing of a listing document, Plaza's ordinary shares are tradable on the Tel-Aviv Stock Exchange with effect from 27 November 2014 under the English ticker "Plaz". About Elbit Imaging Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) hold investments in real estate and medical companies. The Company, through its subsidiaries, also develops shopping and entertainment centers in Central Europe and invests in and manages hotels. Since February 2013, Elbit has intensively endeavored to come to an arrangement with its creditors. Elbit has said it has been hanging by a thread for more than five months. It has encountered cash flow difficulties and this burdens its day to day activities, and it certainly cannot make the necessary investments to improve its assets. In light of the arrangement proceedings, and according to the demands of most of the bondholders, as well as an agreement that was signed on March 19, 2013, between Elbit and the Trustees of six out of eight series of bonds, Elbit is prohibited, inter alia, from paying off its debts to the financial creditors -- and as a result a petition to liquidate Elbit was filed, and Bank Hapoalim has declared its debts immediately payable, threatening to realize pledges that were given to the Bank on material assets of the Company -- and Elbit undertook not to sell material assets of the Company and not to perform any transaction that is not during its ordinary course of business without giving an advance notice to the trustees. Accountant Rony Elroy has been appointed as expert for examining the debt arrangement in the Company. In July 2013, Elbit Imaging's controlling shareholders, Europe- Israel MMS Ltd. and Mr. Mordechay Zisser, notified the Company that the Tel Aviv District Court has appointed Adv. Giroa Erdinast as a receiver with regards to the ordinary shares of the Company held by Europe Israel securing Europe Israel's obligations under its loan agreement with Bank Hapoalim B.M. The judgment stated that the Receiver is not authorized to sell the Company's shares at this stage. Following a request of Europe-Israel, the Court also delayed any action to be taken with regards to the sale of those shares for a period of 60 days. Europe Israel and Mr. Zisser have also notified the Company that they utterly reject the Bank's claims and intend to appeal the Court's ruling. Elbit Imaging reported a loss of NIS1.56 billion on NIS360.59 million of total revenues for the year ended Dec. 31, 2013, as compared with a loss of NIS483.98 million on NIS418.48 million of total revenues in 2012. As of June 30, 2014, the Company had NIS4.05 billion in total assets, NIS3.16 billion in total liabilities and NIS889.58 million shareholders' equity. Brightman Almagor Zohar & Co., a member firm of Deloitte Touche Tohmatsu, in Tel-Aviv, Israel, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. ENDEAVOUR INT'L: US Trustee to Continue '341 Meeting' Dec. 17 ------------------------------------------------------------- The U.S. Trustee, the Justice Department's bankruptcy watchdog, has continued the meeting of creditors of Endeavour International Corp. until Dec. 17, at 10:00 a.m., according to a filing with the U.S. Bankruptcy Court in Delaware. The meeting will be held at J. Caleb Boggs Federal Building, 844 King St., Room 2112, in Wilmington, Delaware. The court overseeing the bankruptcy case of a company schedules the meeting of creditors usually about 30 days after the bankruptcy petition is filed. The meeting is called the "341 meeting" after the section of the Bankruptcy Code that requires it. A representative of the company is required to appear at the meeting and answer questions under oath. The meeting is presided over by the U.S. trustee, the Justice Department's bankruptcy watchdog. About Endeavour International Houston, Texas-based Endeavour International Corporation (OTC: ENDRQ) (LSE: ENDV) is an oil and gas exploration and production company focused on the acquisition, exploration and development of energy reserves in the North Sea and the United States. On Oct. 10, 2014, Endeavour International and five affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code after reaching a restructuring deal with noteholders. The cases are pending joint administration under Endeavour Operating Corp.'s Case No. 14-12308 before the Honorable Kevin J. Carey (Bankr. D. Del.). As of June 30, 2014, the Company had $1.55 billion in total assets, $1.55 billion in total liabilities, $43.70 million in series c convertible preferred stock, and a $41.48 million stockholders' deficit. The Debtors have tapped Weil, Gotshal & Manges LLP as counsel; Richards, Layton & Finger, P.A., as co-counsel; The Blackstone Group L.P., as financial advisor; AlixPartners, LLP, as restructuring advisor; and Kurtzman Carson Consultants LLC, as claims and noticing agent. ENERGY DEVICES: Wants $950M Panel Antitrust Suit Revived -------------------------------------------------------- Law360 reported that the trustee for bankrupt Energy Conversion Devices Inc. urged a Michigan federal judge to reconsider his dismissal of ECD's $950 million antitrust suit accusing three Chinese solar panel producers -- Trina Solar Ltd., Yingli Green Energy Holding Co. Ltd. and Suntech Power Holdings Co. -- of conspiring to fix prices, arguing it had shown the trio had essentially prevented new competition. The case is Energy Conversion Devices Liquidation Trust v. Trina Solar Limited et al., Case No. 2:13-cv-14241 (E.D. Mic.). The case is assigned to Judge Robert H. Cleland. About Energy Conversion Energy Conversion Devices -- http://energyconversiondevices.com/ -- has a renowned 51 year history since its formation in Detroit, Michigan and has been a pioneer in materials science and renewable energy technology development. The company has been awarded over 500 U.S. patents and international counterparts for its achievements. ECD's United Solar wholly owned subsidiary has been a global leader in building-integrated and rooftop photovoltaics for over 25 years. The company manufactures, sells and installs thin-film solar laminates that convert sunlight to clean, renewable energy using proprietary technology. ECD filed for Chapter 11 protection (Bankr. E.D. Mich. Case No. 12-43166) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Aaron M. Silver, Esq., Judy B. Calton, Esq., and Robert B. Weiss, Esq., at Honigman Miller Schwartz & Cohn LLP, in Detroit, Michigan, represent the Debtor as counsel. The Debtor estimated assets and debts of between $100 million and $500 million as of the petition date. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. Affiliate United Solar Ovonic LLC filed a separate Chapter 11 petition on the same day (Bankr. E.D. Mich. Case No. 12-43167). Affiliate Solar Integrated Technologies, Inc., filed a petition for relief under Chapter 7 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 12-43169). An official committee of unsecured creditors has been appointed in the case. Foley and Lardner, LLP represents the Committee. Scouler & Company, LLC, serves as financial advisor. The company had estimated in court papers that it was worth $986 million, based on nearly $800 million of investment in the manufacturing unit. The Debtors canceled an auction to sell USO as a going concern and discontinued the court-approved sale process after failing to receive an acceptable qualified bid by the bid deadline. Quarton Partners served as the companies' investment banker. The Debtors also hired auction services provider Hilco Industrial to prepare for an orderly sale of the companies' assets. In August 2012, the Debtors won confirmation of their Second Amended Chapter 11 Plan of Liquidation. The Plan was declared effective in September 2012. Under the Plan, unsecured creditors owed up to $337 million in claims were to expect a recovery between 50.1% and 59.3%. The Plan creates a trust to sell remaining assets and distribute proceeds in the order of priority laid out in bankruptcy law. ENERGY FUTURE: Tarrant Water Dist. Objects to Contract Rejection ---------------------------------------------------------------- BankruptcyData reported that Tarrant Regional Water District objected to Energy Future Holdings' request authorizing Luminant Generation Company to reject a water contract with TRWD. According to the report, TRWD asserts that the motion should be denied as the Debtors have failed to show that an informed business judgment has been made. In any event, TRWD filed a motion to lift the automatic stay so that it can begin the state administrative process to reallocate the water back to TRWD. 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. ERF WIRELESS: Issues 4.7 Million Common Shares ---------------------------------------------- ERF Wireless Inc. issued 4,732,650 common stock shares pursuant to existing Convertible Promissory Notes from Nov. 20, 2014, through Nov. 28, 2014, according to a regulatory filing with the U.S. Securities and Exchange Commission. The Company receives no additional compensation at the time of the conversions beyond that previously received at the time the Convertible Promissory Notes were originally issued. The Shares were issued at an average of $0.007 per share. The issuance of the Shares constitutes 13% of the Company's issued and outstanding shares based on 36,320,832 shares issued and outstanding as of Nov. 19, 2014. As previously reported in ERF Wireless' public filings, the Company entered into a one-year Securities Purchase agreement with Union Capital LLC on Aug. 4, 2014, and received $50,000 at that time. The provisions of the original agreement allowed Union to provide an additional $50,000 under an eight-month back-end note. On Nov. 25, 2014, Union funded the back-end note and the Company completed an additional Securities Purchase Agreement with Union of $100,000 and also agreed to not object to Union acquiring $156,000 of our existing debt from a third party debt holder as part of the Company's overall debt consolidation efforts. About ERF Wireless Based in League City, Texas, ERF Wireless, Inc., provides secure, high-capacity wireless products and services to a broad spectrum of customers in primarily underserved, rural and suburban parts of the United States. ERF Wireless reported a net loss attributable to the Company of $7.26 million in 2013, a net loss attributable to the Company of $4.81 million in 2012 and a net loss attributable to the Company of $3.37 million in 2011. As of Sept. 30, 2014, the Company had $3.59 million in total assets, $10.43 million in total liabilities and a $6.84 million total shareholders' deficit. EXIDE TECHNOLOGIES: Shareholders Seek Formation of Committee ------------------------------------------------------------ BankruptcyData reported that Exide Technologies' ad hoc committee of equity security holders filed with the U.S. Bankruptcy Court a brief in support of the appointment of an official committee of equity security holders. According to the report, the Ad Hoc Committee members said they have retained Obsido to render a valuation report using generally accepted accounting principles and Obsido's valuation report shows that the Debtor is far from 'hopelessly insolvent,' but rather has an enterprise value that far exceeds its total debt, and therefore evidences a substantial likelihood that equity will receive a meaningful distribution under a strict application of the absolute priority rule. Specifically, Obsido's valuation report estimates a distributable value for equity security holders ranging between $440 million and $740 million, the Ad Hoc Committee members added, the report related. In support of their request for the formation of an official equity committee, the Ad Hoc Committee members stated that they are not well-organized, well-funded or adequate to the task of representing shareholders interests without 'official' status, the report further related. About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. Exide first sought Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002 and exited bankruptcy two years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-11482) on June 10, 2013. Exide disclosed $1.89 billion in assets and $1.14 billion in liabilities as of March 31, 2013. Exide's international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. For the new case, Exide has tapped Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial advisor; Sitrick and Company Inc. as public relations consultant and GCG as claims agent. Schnader Harrison Segal & Lewis LLP was tapped as special counsel. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as co-counsel. Zolfo Cooper, LLC serves as its bankruptcy consultants and financial advisors. Geosyntec Consultants was tapped as environmental consultants to the Committee. Robert J. Keach of the law firm Bernstein Shur as fee examiner has been appointed as fee examiner. He has hired his own firm as counsel. EXIDE TECHNOLOGIES: LA Says Vernon Plant Deal Moving Too Fast ------------------------------------------------------------- Law360 reported that both the city and county of Los Angeles balked at the speed of a nearly $50 million deal bankrupt Exide Technologies Inc. struck with California regulators over its troubled Vernon plant, arguing they need more time to evaluate how the settlement affects their environmental claims. According to the report, in a motion before the Delaware bankruptcy court, the city of Los Angeles asked U.S. Bankruptcy Judge Kevin J. Carey to postpone a scheduled hearing on the settlement. As previously reported by The Troubled Company Reporter, citing Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that Exide negotiated a settlement with California environmental regulators involving a shuttered lead recycling plant in Vernon, California. Exide said the deal "paves the way" to reopen the plant and gives "increased certainty" about future costs associated with environmental compliance at the plant. About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. Exide first sought Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002 and exited bankruptcy two years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-11482) on June 10, 2013. Exide disclosed $1.89 billion in assets and $1.14 billion in liabilities as of March 31, 2013. Exide's international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. For the new case, Exide has tapped Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial advisor; Sitrick and Company Inc. as public relations consultant and GCG as claims agent. Schnader Harrison Segal & Lewis LLP was tapped as special counsel. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as co-counsel. Zolfo Cooper, LLC serves as its bankruptcy consultants and financial advisors. Geosyntec Consultants was tapped as environmental consultants to the Committee. Robert J. Keach of the law firm Bernstein Shur as fee examiner has been appointed as fee examiner. He has hired his own firm as counsel. EYEWOOD DESIGN: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Eyewood Design Inc. 1954 N. Betsie River Road Interlochen, MI 49643 Case No.: 14-07439 Chapter 11 Petition Date: November 28, 2014 Court: United States Bankruptcy Court Western District of Michigan (Grand Rapids) Judge: Hon. James W. Boyd Debtor's Counsel: Keith A. Schofner, Esq. LAMBERT LESER, ATTORNEYS AT LAW 916 Washington Ave, Ste 309 Bay City, MI 48708 Tel: 989-893-3518 E-mail: kschofner@lambertleser.com Total Assets: $636,234 Total Liabilities: $2.60 million The petition was signed by Randal Stuart Howard, vice-president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/miwb14-07439.pdf FFS DATA: IberiaBank Fights Release of Claims Over $10MM Loan ------------------------------------------------------------- Law360 reported that IberiaBank Corp. asked the Eleventh Circuit to reinstate its suit over a $10 million real estate loan against the owner of formerly bankrupt FFS Data Inc., arguing that the releases in the company's reorganization plan do not extend to the owner's personal guaranty of the loan. According to the report, Mark Roher of Jones Walker LLP, who argued for IberiaBank before an Eleventh Circuit panel, said the bankruptcy court should not have ruled that the releases for FFS Data owner Brad Geisen in the company's confirmed plan eclipsed the bank's $5.3 million suit for the deficiency between what was owed on the loan and what was recouped in a short sale of the mortgaged property. The case is IberiaBank Corp. v. Geisen et al., case number 14- 11473, in the U.S. Court of Appeals for the Eleventh Circuit. Based in Boca Raton, Florida, FFS DATA Inc. aka Foreclosure.com filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 09-38395) on Dec. 23, 2009. Judge Erik P. Kimball presides over the case. Bradley S. Shraiberg, Esq., represents the Debtor. In its petition, the Debtor estimated assets between $1 million and $10 million, and debts between $10 million and $50 million. FIRST CHICAGO BANK: Katten Settles Lowis & Gellen's Mal Claims -------------------------------------------------------------- Law360, citing a filing in Illinois federal court, reported that Lowis & Gellen LLP has settled its third-party complaint claiming Katten Muchin Rosenman LLP shared malpractice liability in a suit accusing Lowis of negligently preparing loan information for now- defunct First Chicago Bank & Trust. According to the report, the parties submitted a stipulation of dismissal with prejudice that did not detail the terms of the settlement, although it did say each party would bear their own costs and fees. The case is Federal Deposit Insurance Corp. v. Lowis & Gellen LLP et al. v. Katten Muchin Rosenman LLP et al., case number 1:11:cv- 05902, in the U.S. District Court for the Northern District of Illinois, Eastern Division. The Troubled Company Reporter, on July 11, 2011, reported that First Chicago Bank & Trust of Chicago, Ill., was closed on July 8, 2011, by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Northbrook Bank & Trust Company of Northbrook, Ill., to assume all of the deposits of First Chicago Bank & Trust. FIRST MARINER: U.S. Trustee Objects to Liquidation Plan ------------------------------------------------------- BankruptcyData reported that the U.S. Trustee assigned to the First Mariner Bancorp case objected to the First Amended Chapter 11 Plan of Liquidation, complaining that the Plan provides broad immunity from liability for an assortment of non-debtors, such as Debtor's officers and directors, the Creditors' Committee, indenture trustees of certain bonds, and professionals who provided paid services to the Estate and the Fourth Circuit clearly disfavors these types of immunity provisions and permits them only in the most extraordinary and unusual circumstances, none of which exist in the case. As previously reported by The Troubled Company Reporter, citing Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, the U.S. Bankruptcy Court in Baltimore has approved the disclosure statement explaining First Mariner Bancorp's liquidating Chapter 11 plan and has scheduled a confirmation hearing on Dec. 8. The plan has support from the Official Committee of Unsecured Creditors, whose constituents are shown in the disclosure statement as recovering 20 percent to 21 percent. General unsecured creditors, estimated to be owed $62 million to $63 million, will receive their pro rata share of cash remaining after higher-ranking creditors are fully paid and specified reserves are funded. About First Mariner Bancorp First Mariner Bancorp, the holding company for Maryland community bank 1st Mariner, filed for Chapter 11 bankruptcy on Feb. 10, 2014, in order to sell its bank subsidiary, 1st Mariner Bank, to a new bank formed by investors. The case is In re First Mariner Bancorp, Case No. 14-11952 (D. Md.) before Judge David E. Rice. The Debtor's bankruptcy counsel is Kramer Levin Naftalis & Frankel LLP. The Debtor's local counsel is Lawrence Joseph Yumkas, Esq., at Yumkas, Vidmar & Sweeney, LLC, in Annapolis, Maryland. The Debtor's regulatory and corporate counsel is Kilpatrick Townsend & Stockton LLP. The Debtor's investment banker and financial adviser is Sandler O'Neill + Partners, L.P. The Debtor has total assets of $5.45 million and total debts of $60.52 million. FL 6801: Associations Drop Support of Bid for Trustee ------------------------------------------------------ Central Carillon Beach Condominium Association Inc. and South Carillon Beach Condominium Association Inc. had withdrawn without prejudice their support and concurrence with the motion to (I) appoint a trustee pursuant to Section 1104(A) of the Bankruptcy Code, or, alternatively, (II) appointing an examiner in the Chapter 11 cases of FL 6801 Spirits LLC, et al. As reported in the TCR on Sept. 30, 2014, creditors, Unit Holders at Canyon Ranch Hotel & Spa Miami beach, sought appointment of a Chapter 11 Trustee in the Debtors' cases. The creditors wanted to preserve the integrity of the cases by appointing an examiner or a trustee. The creditors have lost faith that the Debtors can conduct the proceedings in a manner that is not only fair, but appears fair. The Debtors lack independent management, the creditors argue. The Debtors are operated by their officers. To this end, they are incentivized to utilize the Debtors as a platform to increase the Debtors' bottom line. The Debtors have brazenly violated the bidding procedures order and continue to pursue a sale transaction that cannot close and lacks creditor support. The creditors also point to the Debtors' failure to address manifest construction defects and needed capital expenditures at the property and the Debtors' effort to exit its investment by fundamentally altering the nature of the significant life-style investment that the Creditors were induced into making the agreement. 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. The Associations are represented by: Alan F. Kaufman, Esq. HINSHAW & CULBERTSON LLP 800 Third Avenue, 13th Floor New York, NY 10022 Tel: (212) 471-6200 E-mail: akaufman@hinshawlaw.com - and - Charles M. Tatelbaum, Esq. TRIPP SCOTT PA 110 SE 6 th Street, 15 th Floor Fort Lauderdale, FL 33301 Tel: (954) 760-4902 E-mail: cmt@trippscott.com FRED FULLER: Sale to Rymes Propane Has Court's Okay --------------------------------------------------- Michael Brindley at New Hampshire Public Radio reports that the Bankruptcy Court has approved Fuller Oil & Propane Co., Inc.'s sale to Rymes Propane & Oil. Kathy Marchocki at Nashuatelegraph.com relates that Rymes Home purchased Fuller Oil on Tuesday for $12 million-$13 million in a deal that ensures the bankruptcy company's almost 100 workers stay on their jobs and its over 28,000 clients can still heat their homes. The sale is complete, says The Lowell Sun adds. The Bankruptcy Court, according to Nashuatelegraph.com, said that Fuller Oil likely didn't have funds to stay open through the weekend. Nashuatelegraph.com states a new prospective buyer attempted to make an eleventh-hour counteroffer. Nashuatelegraph.com recalls that a Fuller family member said that Fuller Oil was in talks with two other prospective buyers, in case its sale to Rymes Oil would collapse. Sarah Palermo at Concord Monitor reports that attorneys for Rymes Propane were also concerned about a potential Internal Revenue Service lien on some of Fred Fuller's personal property that would be part of the deal. According to Concord Monitor, William S. Gannon, Esq., the attorney for Fuller Oil, assured that the U.S. attorney said there is no lien on the property, but Rymes Propane wanted that documented. Other objections to the case, including one from Mr. Fuller's ex- wife, Sharon Fuller, were resolved, Concord Monitor states, citing Mr. Gannon. Ms. Fuller's request for time to remove several antique cars from her ex-husband's properties was granted, Concord Monitor reports. The Bankruptcy Court gave Fred Fuller a one-day extension of collateral so attorneys for the company could work out the final details of a sale to Rymes Propane, and the company was granted up to $170,000 in collateral to purchase oil for deliveries and for paying workers, Concord Monitor relates. About Fred Fuller Oil Hudson, New Hampshire-based Fred Fuller Oil & Propane Co., Inc., the largest heating oil company in the state, serving about 30,000 New Hampshire customers. It sought Chapter 11 protection (Bankr. D. N.H. Case No. 14-12188) in Manchester, New Hampshire, on Nov. 10, 2014, without stating a reason. It estimated $10 million to $50 million in assets and debt. The Nov. 10, 2014 court filing show that the Debtor has about $13.5 million in debts. Jeremy Blackman at Concord Monitor reports reports that the Debtor owes more than $276,000 to Harvard Pilgrim Health Care and nearly $94,000 to the city of Laconia and the towns of Hudson, Milford and Northfield. According to Concord Monitor, the bankruptcy case was initially filed on Nov. 10 under Chapter 7, but that has since been terminated and replaced with a Chapter 11 restructuring proposal. William S. Gannon, Esq., at William S. Gannon PLLC, in Manchester, serves as counsel to the Debtor. Fredrick J. Fuller, the president, signed the bankruptcy petition. FRIENDLY ICE CREAM: Franchisee Closes Ohio Locations ---------------------------------------------------- Christina McCune at IndeOnline.com reports that Friendly Ice Cream Corp. restaurants at 2030 Wales Avenue NW in Massillon and at 4490 Everhard Road NW in Jackson Township, in western Stark County, Ohio, closed two days before Thanksgiving. The Dayton Daily News adds that five Friendly's restaurants in the Dayton area already shut down. APEX Eagle Hospitality, Inc., a Friendly's franchisee that owns and operates the Stark County Friendly's restaurants, sent an e- mailed statement to The Independent, saying that all of its Friendly's locations in Ohio have been closed. "These closings are regrettable, however continuing operation was no longer viable. These restaurants will cease operations, effective immediately. Friendly's thanks its guests for their loyal patronage," APEX Eagle said in the e-mail. IndeOnline.com relates that other restaurants that closed were in Westlake (25600 Center Ridge Road), Parma Heights (6400 York Road), Akron (3921 Medina Road and 2934 South Arlington Road), and Middleburg Heights (17505 East Bagley Road). 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. FUTURE HEALTHCARE: Has $194K Net Loss in Sept. 30 Quarter --------------------------------------------------------- Future Healthcare of America filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $194,735 on $1.03 million of total revenue for the three months ended Sept. 30, 2014, compared with net income of $23,691 on $1.1 million of total revenue for the same period last year. The Company's balance sheet at Sept. 30, 2014, showed $1.91 million in total assets, $1.1 million in total liabilities and total stockholders' equity of $809,000. The Company has incurred losses and has a short-term note payable in excess of anticipated cash. These factors raise substantial doubt about the ability of the Company to continue as a going concern. There is no assurance that the Company will be successful in achieving profitable operations, according to the regulatory filing. A copy of the Form 10-Q is available at: http://is.gd/Bbmu6k Future Healthcare of America, through its subsidiary, Interim Healthcare of Wyoming, Inc., provides home healthcare and healthcare staffing services in Wyoming and Montana, the United States. The company offers home care services, including senior care and pediatric nursing; and physical, occupational, and speech therapy through registered nurses, therapists, LPN's, and certified home health aides. It also provides nurses, nurse aides, and management services to hospitals, prisons, schools, corporations, and other health care facilities. The company was founded in 1991 and is based in Palm Beach, Florida. GARLOCK SEALING: Parent Says New Info Won't Alter Fibro Liability ----------------------------------------------------------------- Law360 reported that reopening Garlock Sealing Technologies LLC's personal injury liability proceeding to allow asbestos claimants to introduce new evidence would be a waste of time, Garlock's parent company argued, saying it wouldn't change the fact a bankruptcy judge had already rejected the claimants' committee's liability theory. According to the report, fighting back against the official asbestos personal injury claimants' committee's argument that Garlock concealed its past settlement strategies and knowledge regarding other sources of exposure, Coltec Industries Inc. argued in North Carolina bankruptcy court that any evidence concerning the plaintiffs' alternative exposures to asbestos was irrelevant. About Garlock Sealing Headquartered in Palmyra, New York, Garlock Sealing Technologies LLC is a unit of EnPro Industries, Inc. (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, 2010, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D.N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in their Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for asbestos matters. The Official Committee of Asbestos Personal Injury Claimants in the Chapter 11 cases is represented by Travis W. Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC, Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and Jeanna Rickards Koski, Esq., in Washington, D.C. 20005. Joseph W. Grier, III, the Court-appointed legal representative for future asbestos claimants, has retained A. Cotten Wright, Esq., at Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co- counsel. Judge George Hodges of the United States Bankruptcy Court for the Western District of North Carolina on Jan. 10, 2014, entered an order estimating the liability for present and future mesothelioma claims against EnPro Industries' Garlock Sealing Technologies LLC subsidiary at $125 million, consistent with the positions GST put forth at trial. GENERAL MOTORS: Compens. Fund Claims Deadline Moved to Jan. 31 -------------------------------------------------------------- Jeff Bennett, writing for The Wall Street Journal, reported that Ken Feinberg, General Motors Co.'s compensation expert, extended by one month the deadline for death and injury claims linked to the auto maker's faulty ignition switches amid pressure from families, safety advocates, politicians and lawyers. According to the report, families of those killed or seriously injured in an accident involving the switches have until Jan. 31 to file their claims. About General Motors 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. * * * The Troubled Company Reporter, on Sep. 29, 2014, reported that Standard & Poor's Ratings Services raised its corporate credit rating on U.S. automaker General Motors Co. (GM) to 'BBB-' from 'BB+', and revised the outlook to stable from positive. At the same time, S&P raised its issue-level rating on GM's unsecured debt to 'BBB-' from 'BB+' and simultaneously withdrew its '4' recovery rating on that debt, because S&P do not assign recovery ratings to the issues of investment-grade companies. On Oct. 21, 2014, the TCR reported that Fitch Ratings has assigned a rating of 'BB+' to GM's amended unsecured credit facilities. Fitch currently rates GM's Issuer Default Rating (IDR) 'BB+'. The Rating Outlook is Positive. Fitch has also affirmed and withdrawn the 'BB+' IDR of GM's General Motors Holdings LLC (GM Holdings) subsidiary, as there is no longer any rated debt at the subsidiary, and Fitch does not expect the subsidiary to be an active issuer going forward. Fitch has also withdrawn GM Holdings' unsecured credit facility rating of 'BB+' as the subsidiary is no longer a borrower on the facilities. The TCR, on Nov. 6, 2014, reported that Fitch Ratings has assigned a rating of 'BB+' to GM's proposed issuance of senior unsecured notes. The existing Issuer Default Rating (IDR) for GM is 'BB+' and the Rating Outlook is Positive. GENERAL MOTORS: Ignition Victims Can File Claims Until Jan. 31 -------------------------------------------------------------- The deadline for the filing of claims for damages caused by faulty ignition system problem in many General Motors cars has been extended to Jan. 31, 2015, from Dec. 31, 2014, Jay Stapleton at The Connecticut Law Tribune reports, citing GM's compensation expert Kenneth Feinberg. The deadline, says Law Tribune, was extended at the behest of Robert Hilliard -- the attorney for the family Jean Averill, the first person in the U.S. to die due to the faulty ignition system problem -- and others. "We still have people contacting us with potential claims, so the deadline being pushed back could help. We still believe there may be many more people out there who may have been injured or killed in crashes who may not yet know if there was a connection [to the ignition systems]. This extra time might give an opportunity for some of these people," Law Tribune quoted Danbury lawyer Agostinho Ribeiro, who has a handful of clients that include families of a 20-year-old man who died in Michigan and a 76-year-old man who died in Arizona, as saying. Law Tribune relates that Connecticut U.S. Sen. Richard Blumenthal criticized the compensation fund when it was created and said that applications should be accepted until a U.S. bankruptcy judge decides whether other lawsuits against GM will be barred under the terms of its Chapter 11 bankruptcy reorganization. Sen. Blumenthal said in a statement released on Nov. 17, 2014, "Right now, injured parties do not know enough about their legal rights or facts to make an intelligent or informed decision. They will not know the full extent of their own rights until the bankruptcy court decides whether to lift the liability shield that GM unjustifiably hides behind." Law Tribune recalls that GM hired Mr. Feinberg to field claims from victims and their families. The report says that since Aug. 1, 2014, Mr. Feinberg has received a total of 217 death claims, rejected 31 of them and determined that 77 were "deficient" due to missing or incomplete paperwork. Mr. Feinberg, according to the report, has received 1,888 injury claims, and 72 have been deemed eligible so far. The report states that GM expects to pay out between $400 million and $600 million. According to Law Tribune, families of those injured or killed whose claims are rejected will be able to pursue individual lawsuits. Law Tribune relates that lawyers believe they could still pursue claims if they can establish that GM knew of the defects before the 2009 bankruptcy. GM has asked U.S. Bankruptcy Judge Robert Gerber to decide whether class actions against it can be barred entirely under a provision of its Chapter 11 reorganization in 2009, Law Tribune reports. About General Motors 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. * * * The Troubled Company Reporter, on Sep. 29, 2014, reported that Standard & Poor's Ratings Services raised its corporate credit rating on U.S. automaker General Motors Co. (GM) to 'BBB-' from 'BB+', and revised the outlook to stable from positive. At the same time, S&P raised its issue-level rating on GM's unsecured debt to 'BBB-' from 'BB+' and simultaneously withdrew its '4' recovery rating on that debt, because S&P do not assign recovery ratings to the issues of investment-grade companies. On Oct. 21, 2014, the TCR reported that Fitch Ratings has assigned a rating of 'BB+' to GM's amended unsecured credit facilities. Fitch currently rates GM's Issuer Default Rating (IDR) 'BB+'. The Rating Outlook is Positive. Fitch has also affirmed and withdrawn the 'BB+' IDR of GM's General Motors Holdings LLC (GM Holdings) subsidiary, as there is no longer any rated debt at the subsidiary, and Fitch does not expect the subsidiary to be an active issuer going forward. Fitch has also withdrawn GM Holdings' unsecured credit facility rating of 'BB+' as the subsidiary is no longer a borrower on the facilities. The TCR, on Nov. 6, 2014, reported that Fitch Ratings has assigned a rating of 'BB+' to GM's proposed issuance of senior unsecured notes. The existing Issuer Default Rating (IDR) for GM is 'BB+' and the Rating Outlook is Positive. GORDON WASHINGTON: Owns New Jersey House for Free ------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that U.S. Bankruptcy Judge Michael B. Kaplan, in a bankruptcy case involving an individual, issued an opinion giving the bankrupt ownership of a home even though he never paid a dime toward the mortgage. According to the report, under New Jersey law, suit on a debt must be initiated within six years from when the lender gave notice that the debt came due as the result of default and, in this case, the bank conceded that it could no longer hold the bankrupt liable for the mortgage debt because the six years had elapsed. The case is Washington v. Specialized Loan Servicing LLC (In re Washington), 14-01319, U.S. Bankruptcy Court, District of New Jersey. HOUSTON REGIONAL: Plan Takes Effect as Appeal Proceeds ------------------------------------------------------ Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that Houston Regional Sports Network LP, the broadcaster for the city's professional baseball and basketball teams, on Nov. 17 implemented a Chapter 11 plan that was approved when U.S. Bankruptcy Judge Marvin Isgur in Houston signed a confirmation order Oct. 30. According to the report, as the plan, which hands ownership of the network to AT&T Inc. and DirecTV, took effect, an appeal by Comcast Corp., filed almost immediately after approval, was moving forward in federal district court. If Comcast wins the appeal, on the value of its collateral, it stands to improve its recovery by about $75 million, the report related. The appeal is Comcast Claimants v. Houston Regional Sports Network, 14-3133, U.S. District Court, Southern District of Texas (Houston). About Houston Regional 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. The Troubled Company Reporter, on Nov. 4, 2014, citing Daily Bankruptcy Review, reported that U.S. Bankruptcy Judge Marvin Isgur in Houston has approved the restructuring plan that will hand control of Comcast SportsNet Houston. IBI PALM BEACH: Island Breeze Cruise Boat Remain Idle at Port ------------------------------------------------------------- Michael Buczyner at CBS12 NEWS reports that cruise boat Island Breeze Casino is tied up at the Port Of Palm Beach with a return to the high seas uncertain. An engine failure earlier this year and mandatory dry dock inspection required by the Coast Guard sidelined the ship and resulted in the lay-offs, CBS12 relates, citing the ship's CEO. CBS12 states that the port gave the floating casino financial incentives on office space and docking fees. The port, according to CBS12, is losing tens of thousands of dollars every other day with both of its passenger ships -- Island Breeze and competitor Bahamas Celebration, which struck something as it departed Freeport -- not sailing. The port's budget indicates that passenger cruise industry generates a quarter of its revenue, CBS12 relates. Susan Salisbury at Palm Beach Post reports that with Bahamas Celebration and Island Breeze idle, the port has canceled $60,000 a month in passenger-related police and security services. About IBI Palm Beach Riviera Beach, Florida-based IBI Palm Beach LLC, owner of Island Breeze Casino, a casino cruise boat operating from the Port of Palm Beach, Florida, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 14-34729) on Nov. 6, 2014. The case is assigned to Judge Erik P. Kimball. The Debtor's counsel is Dilworth Paxson LLP while its local Florida counsel is David L Rosendorf, Esq., at Kozyak Tropin & Throckmorton, P.A. IMMUNOMEDICS INC: Incurs $12.4-Mil. Net Loss in Q3 -------------------------------------------------- Immunomedics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $12.44 million on $1.07 million of total revenues for the three months ended Sept. 30, 2014, compared with a net loss of $5.23 million on $5.5 million of total revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2014, showed $37.8 million in total assets, $11.1 million in total liabilities and total stockholders' equity of $26.7 million. The Company incurred significant operating losses since its formation in 1982. As of Sept. 30, 2014, it had an accumulated deficit of approximately $273.9 million. The Company continues to spend its cash resources to fund its research and development programs and, subject to adequate funding, the Company expects these expenses to increase for the foreseeable future. Its only significant sources of revenue in recent years have been derived from its existing licensing agreement with UCB and the collaboration agreement with Bayer (Algeta). The timing of when it is able to record licensing fee revenue from such agreements has varied historically and may result in quarterly or annual profits or losses that are not necessarily reflective of its business operations or related cash flows. There can be no assurance that the Company will be profitable in future quarters or other periods. Additionally, the only product sales it has earned to date has come from the limited sales of its diagnostic imaging product. In addition, the Company has made the strategic decision to de-emphasize sales of its diagnostic product and focus on its therapeutic pipeline. The Company has never had product sales of any therapeutic product. Although it may have net income from time to time based on the timing and amount of proceeds received under collaborative agreements, it expects to experience significant operating losses as it invests further in its research and development activities while simultaneously attempting to develop and commercialize its other therapeutic product candidates. If the Company is unable to develop commercially viable therapeutic products or to license them to third parties, it is likely that it will never achieve significant revenues or become profitable, either of which would jeopardize its ability to continue as a going concern. A copy of the Form 10-Q is available at: http://is.gd/1wfVhK Immunomedics is a clinical-stage biopharmaceutical company developing monoclonal antibody-based products for the targeted treatment of cancer, autoimmune and other serious diseases. INVERSIONES ALSACIA: Gets Court Approval to Hire Prime Clerk ------------------------------------------------------------ U.S. Bankruptcy Judge Martin Glenn has given Inversiones Alsacia S.A. the green light to hire Prime Clerk LLC as its administrative adviser. As administrative adviser, Prime Clerk is tasked to provide these services: (1) assist in the solicitation, balloting and tabulation of votes, and prepare reports in support of confirmation of a Chapter 11 plan; (2) prepare an official ballot certification and, if necessary, testify in support of the ballot tabulation results; (3) assist in the preparation of the company's schedules of assets and liabilities, and statements of financial affairs; (4) assist with claims objections, exhibits, claims reconciliation and related matters, if necessary; (5) provide a confidential data room, if requested; and (6) manage and coordinate any distributions pursuant to a Chapter 11 plan. Inversiones Alsacia will pay Prime Clerk pursuant to the firm's rate structure, and will reimburse the firm for work-related expenses. The fees Prime Clerk will charge for its services are set forth in an agreement, which is available for free at http://is.gd/FnXmnW Prior to its bankruptcy filing, the company provided the firm a retainer in the amount of $40,000. Prime Clerk may apply its retainer to all pre-bankruptcy invoices, which will be replenished to the original retainer amount, and thereafter, the firm may hold its retainer as security for the payment of fees and expenses incurred under the agreement. Prime Clerk has agreed to indemnify the firm under certain circumstances specified in the agreement except in circumstances resulting solely from gross negligence, bad-faith or breach of fiduciary duty. The firm does not have an interest adverse to the interest of the company's estates or creditors, and is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, according to a declaration by Michael Frishberg, co-president and chief operating officer of Prime Clerk. About Alsacia Inversiones Alsacia, together with its affiliate, Express de Santiago Uno S.A., are collectively the largest operator in the Transantiago Transportation System, transporting approximately 800,000 passengers every day, throughout 35 communities in Santiago, Chile, which accounts for more than 30% of the passengers in Transantiago. Alsacia and Express have the right to provide the transportation services pursuant to concession agreements with Chile's Ministry of Transportation and Telecommunications, which agreements expire October 2018. Alsacia and Express belong to non-debtor Global Public Services S.A. ("GPS Group"), an international holding company with interests in public passenger transportation, environmental solutions, outsourcing services and real estate development in Chile, Colombia, Panama, Peru and the United States of America. The GPS Group is controlled by Carlos Mario Rios Velilla and Francisco Javier Rios Velilla and several of their affiliates. Alsacia and Express and three affiliates sought bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in Manhattan, New York (Bankr. S.D.N.Y.) on Oct. 16, 2014, with a prepackaged plan that would restructure $347.3 million in senior secured notes but leave other creditors and the owners unimpaired. The cases are pending before the Honorable Martin Glenn and the Debtors have requested that their cases be jointly administered under Case No. 14-12896. The Debtors have tapped Cleary Gottlieb Steen & Hamilton, LLP, as bankruptcy counsel, FTI Consulting as financial advisor, and Prime Clerk LLC as claims and balloting agent. The Court will consider adequacy of disclosure materials and approval of the prepackaged Chapter 11 plan at a hearing schedules for Dec. 4. The Plan contemplates that the companies can implement a planned exchange offer with holders of $347.3 million in senior secured notes. INVERCIONES ALSACIA: Assumes Plan Support Agreement --------------------------------------------------- U.S. Bankruptcy Judge Martin Glenn authorized Inversiones Alsacia S.A., et al., to assume the restructuring and plan support agreement dated as of Aug. 31, 2014, signed with holders of 63% of the outstanding senior secured notes and the Debtors' direct and indirect shareholders, Global Public Services, S.A., Carlos Mario Rios Velilla and Francisco Javier Rios Velilla. As reported in the Troubled Company Reporter on Oct. 21, 2014, according to the Debtors, the assumption of the RPSA will ensure that the agreement, which serves as the foundation for the Debtors' consensual restructuring, continues to be valid and enforceable against all signatories thereto and continues to provide the Debtors with the benefits they bargained for in the months prior to the Petition Date, including the restructuring of the Senior Secured Notes and the ability to maximize recoveries to the Debtors' creditors through expeditious chapter 11 proceedings. To evidence their support of the Plan, the Consenting Senior Secured Noteholders and the Alsacia Shareholders executed the RPSA, which provides for the implementation of the Restructuring through an expedited chapter 11 process and commits the RPSA Parties and the Debtors to support the Plan under the terms and conditions of the RPSA. The Debtors are scheduled to seek confirmation of the Plan at a hearing on Dec. 4. The RPSA provides that each Alsacia Shareholder will, among other things, (i) take all steps necessary (subject to any fiduciary duties applicable to such Alsacia Shareholder in such capacity) to cause the effective date of the Restructuring to occur on or before certain deadlines set forth in the RPSA and (ii) take no action to delay, impede or interfere with the confirmation or consummation of the Plan. The Debtors will reimburse the fees and expenses incurred by the Noteholders' advisors, namely Akin Gump Strauss Hauer & Feld LLP, Carey & Cia Ltda., Blackstone Advisory Partners L.P. and Mr. Pablo Rodriguez Olivares. The Debtors will also promptly pay or reimburse the indenture trustee or any collateral trustee under indenture governing the Secured Notes for fees and out-of-pocket expenses. Ms. Schweitzer notes that the Debtors' failure to assume the RPSA within 10 calendar days after the Petition Date constitutes a termination event in favor of the Requisite Consenting Senior Secured Noteholders under (i) the RPSA and (ii) the proposed Interim Cash Collateral Order. About Alsacia Inversiones Alsacia, together with its affiliate, Express de Santiago Uno S.A., are collectively the largest operator in the Transantiago Transportation System, transporting approximately 800,000 passengers every day, throughout 35 communities in Santiago, Chile, which accounts for more than 30% of the passengers in Transantiago. Alsacia and Express have the right to provide the transportation services pursuant to concession agreements with Chile's Ministry of Transportation and Telecommunications, which agreements expire October 2018. Alsacia and Express belong to non-debtor Global Public Services S.A. ("GPS Group"), an international holding company with interests in public passenger transportation, environmental solutions, outsourcing services and real estate development in Chile, Colombia, Panama, Peru and the United States of America. The GPS Group is controlled by Carlos Mario Rios Velilla and Francisco Javier Rios Velilla and several of their affiliates. Alsacia and Express and three affiliates sought bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in Manhattan, New York (Bankr. S.D.N.Y.) on Oct. 16, 2014, with a prepackaged plan that would restructure $347.3 million in senior secured notes but leave other creditors and the owners unimpaired. The cases are pending before the Honorable Martin Glenn and the Debtors have requested that their cases be jointly administered under Case No. 14-12896. The Debtors have tapped Cleary Gottlieb Steen & Hamilton, LLP, as bankruptcy counsel, FTI Consulting as financial advisor, and Prime Clerk LLC as claims and balloting agent. IRISH BANK: Again Faces Opposition to Blackrock Loans Sale ---------------------------------------------------------- Law360 reported that a shareholder of Ireland's Blackrock Clinic urged a Delaware bankruptcy judge to hold an open auction to replace Irish Bank Resolution Corp.'s "secretive" sale process of loans secured by equity in the hospital, and questioned the proposed purchaser's relationship with the accounting firm where the special liquidators are partners. According to the report, in a motion before Delaware bankruptcy court, Dr. Joseph Sheehan -- one of a group that opposed IBRC's Chapter 15 recognition on the grounds they were allegedly defrauded out of $11 million by its defunct predecessor Anglo Irish Bank -- claimed the deck was stacked against him on the second go-round for the sale, the purchase price for which has yet to be disclosed. About Irish Bank Resolution Irish Bank Resolution Corp., the liquidation vehicle for what was once one of Ireland's largest banks, filed a Chapter 15 petition (Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect U.S. assets of the former Anglo Irish Bank Corp. from being seized by creditors. Irish Bank Resolution sought assistance from the U.S. court in liquidating Anglo Irish Bank Corp. and Irish Nationwide Building Society. The two banks failed and were merged into IBRC in July 2011. IBRC is tasked with winding them down and liquidating their assets. In February, when Irish lawmakers adopted the Irish Bank Resolution Corp., IBRC was placed into a special liquidation in the Irish High Court to complete liquidation and distribution of the two banks' assets. IBRC's principal asset as of June 2012 was a loan portfolio valued at some EUR25 billion (US$33.5 billion). About 70 percent of the loans were to Irish borrowers. Some 5 percent of the portfolio was under U.S. law, according to a court filing. Total liabilities in June 2012 were about EUR50 billion, according to a court filing. Most assets in the U.S. have been sold already. IBRC is involved in lawsuits in the U.S. IBRC was granted protection under Chapter 15 of the U.S. Bankruptcy Code in December 2013. Kieran Wallace and Eamonn Richardson of KPMG have been named the special liquidators. LIGHTSQUARED INC: Falcone Appealing Guaranty Claim Ruling --------------------------------------------------------- Erik Larson, writing for Bloomberg News, reported that billionaire investor Philip Falcone is appealing a bankruptcy court ruling that derailed his proposal to reorganize bankrupt wireless technology developer LightSquared Inc. by canceling a $2.4 billion claim by a group of competing creditors and splitting the company in two. According to the report, Mr. Falcone's Harbinger Capital Partners, LLC, LightSquared's current controlling shareholder, filed a notice of appeal in U.S. Bankruptcy Court in Manhattan, indicating a district court judge in New York will be asked to review the Oct. 30 decision. About LightSquared Inc. LightSquared Inc. and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on May 14, 2012, to resolve regulatory issues that have prevented it from building its coast-to-coast integrated satellite 4G wireless network. LightSquared had invested more than $4 billion to deploy an integrated satellite-terrestrial network. In February 2012, however, the U.S. Federal Communications Commission told LightSquared the agency would revoke a license to build out the network as it would interfere with global positioning systems used by the military and various industries. In March 2012, the Company's partner, Sprint, canceled a master services agreement. LightSquared's lenders deemed the termination of the Sprint agreement would trigger cross-defaults under LightSquared's prepetition credit agreements. LightSquared and its prepetition lenders attempted to negotiate a global restructuring that would provide LightSquared with liquidity and runway necessary to resolve its issues with the FCC. Despite working diligently and in good faith, however, LightSquared and the lenders were not able to consummate a global restructuring on terms acceptable to all interested parties. Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to the Debtors. Alvarez & Marsal North America, LLC, is the financial advisor. Kurtzman Carson Consultants LLC serves as claims and notice agent. MARION ENERGY: Secured Lender Urges Dismissal of Chapter 11 Case ---------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that secured lender Castlelake LP argued that Marion Energy Inc., an exploration and production company whose core operation is the Clear Creek Field in Utah, should have its Chapter 11 case dismissed as a "bad faith bankruptcy filing." According to the report, Castlelake, along with TCS II Funding Solutions LLC, said Marion is using bankruptcy to frustrate its rights, having filed Chapter 11 for the express purpose of evading a receivership sale process that it had itself proposed. About Marion Energy Marion Energy Inc. is a Texas corporation engaged in exploration and production of natural gas in the State of Utah. Marion's core operation is a producing gas field located in Carbon and Emery Counties, Utah (the "Clear Creek Field"). The company also holds smaller, currently unproductive acreage positions in the Helper and Roan Cliffs area near Helper, Utah (the "Helper Field"). Its parent is Australia-based Marion Energy Limited (ASX:MAE). Marion Energy Limited -- http://www.marionenergy.com.au/--is principally engaged in investment in oil and gas projects and the identification and assessment of new opportunities in the oil and gas industry in Texas, Utah and Oklahoma in the United States of America. Marion Energy Inc. sought Chapter 11 bankruptcy protection (Bankr. D. Utah Case No. 14-31632) in Salt Lake City, Utah on Oct. 31, 2014. The Debtor estimated assets and debt of $100 million to $500 million. The Debtor has tapped Parsons Behle & Latimer as attorneys. MILLER AUTO: Gets Final Approval of First Capital Financing ----------------------------------------------------------- U.S. Bankruptcy Judge Mary Grace Diehl, in a final order, authorized Miller Auto Parts & Supply Company, Inc., et al., to (i) obtain postpetition financing from prepetition senior secured lender FCC, LLC doing business as First Capital; and (ii) use First Capital's cash collateral. As of the Petition Date, the Debtors are indebted to First Capital at least $12,995,703, inclusive of $2,500,000 in reimbursement obligations for undrawn letters of credit, and contract interest, default interest and charges, and certain fees and charges. First Capital holds a perfected first priority security interest in all of its DIP Facility collateral including but not limited to the Bedford Property, the vehicles, the rebates, and the causes of action, which will not be subject to further challenge from the i) the Official Committee of Unsecured Creditors or the Debtors. The Debtors would use the loan to operate their business operations until Nov. 28, 2014, if the asset sales have not closed, or on the occurrence of an event of default. The Debtors were unable to obtain unsecured credit allowable under Section 503(b)(1) of the Bankruptcy Code as an administrative expense. As adequate protection from any diminution in value of the lender's collateral, the Debtor will grant the lender replacement liens, a superpriority administrative expense claim status, subject to carve out on certain expenses. As reported in the TCR on Sept. 24, 2014, First Capital has agreed to provide DIP financing on these terms: * The Debtor will pay interest on the indebtedness at a rate equal to the sum of LIBOR (as published in WSJ) plus 4%, calculated on a 360 day per year basis, payable monthly in arrears. Upon an event of default, the Debtor will pay interest on the indebtedness at a rate equal to the sum of LIBOR (as published in WSJ) plus 7%, calculated on a 360 day per year basis, payable monthly in arrears. * The only additional fee is a one-time DIP facility loan origination fee of $45,000, which shall be fully earned upon entry of the Final DIP order. * The DIP Facility will mature on the occurrence of a "termination event". * The maximum loan limit under the DIP Facility is $18,000,000. * The DIP Lender is granted securities and liens, including a perfected first priority senior security interest in and lien upon all pre-and post-petition property of the Debtors, and the DIP indebtedness will have the highest administrative priority under Sec. 364(c)(1) of the Bankruptcy Code. About Miller Auto Parts Miller Auto Parts & Supply Company, Inc., and its affiliates are distributors of automotive parts and service equipment. The companies operate from the Johnson Industries Inc.'s headquarters in Atlanta, Georgia and have distribution operations in the southeast, northeast and on-line. The Southeastern distribution center is located in Norcross, Georgia and supports nine satellite centers across the state and supplies parts to key fleet customers across the country. Miller Auto Parts and its three subsidiaries sought Chapter 11 bankruptcy protection (Bankr. N.D. Ga.) on Sept. 15, 2014. The Debtors have sought joint administration under Lead Case No. 14- 68113. The cases are assigned to Judge Mary Grace Diehl. The Debtors have tapped Scroggins & Williamson as counsel and Logan & Co. as claims and noticing agent. The U.S. Trustee for Region 21 appointed three creditors of Miller Auto Parts & Supply Company Inc. to serve on the official committee of unsecured creditors. The Committee selected Kane Russell Coleman & Logan as its counsel, and McKenna Long & Aldridge LLP as its local counsel. MILLER AUTO: Sale of Assets to TPH, et al, Approved --------------------------------------------------- The Bankruptcy Court authorized Miller Auto Parts & Supply Company, Inc., et al., to sell certain of their assets to TPH Acquisition LLLP. At or prior to the sale hearing, the purchaser confirmed a bid submitted for certain assets of Johnson Industries, and certain of the Johnson Industries' executory contracts, pursuant to a proposed asset purchase agreement. The Court approved a separate sale of certain assets to Fisher Auto Parts, Inc., and Parts Authority, Inc. The Debtors, in consultation with First Capital, the Committee, and their financial and legal advisors determined that there were no eligible bidders competing for the same assets; therefore, the auction sale was canceled. The Debtors, in consultation with the Official Committee of Unsecured Creditors, First Capital, and their legal and financial advisors, determined that the offer made by purchaser was the highest and best offer for the assets. All objections to the sale motion were overruled on the merits. In connection with the payment of the indebtedness of prepetition senior secured lender FCC, LLC doing business as First Capital, these reserves will be established: a) 105% of the face amount of $2,500,000 in undrawn letters of credit, which will be held by First Capital as collateral security for the Debtors' Indebtedness owing to First Capital in respect of the Letters of Credit. b) an amount set aside as an expense reserve, which will be held by First Capital as collateral security for the Debtors' indebtedness owing to First Capital in respect of estimated bank charges, legal fees, recording charges for UCC terminations and satisfactions/releases, and other expenses. Judge Mary Grace Diehl approved the purchase agreements: (i) Asset Purchase Agreement dated as of Oct. 9, 2014, with Fisher Auto Parts, Inc.; (ii) Asset Purchase Agreement dated as of Oct. 15, 2014, with Automotive Distributors Co., Inc.; and (iii) Asset Purchase Agreement dated as of Oct. 16, 2014, with TPH Acquisition LLLP. About Miller Auto Parts Miller Auto Parts & Supply Company, Inc., and its affiliates are distributors of automotive parts and service equipment. The companies operate from the Johnson Industries Inc.'s headquarters in Atlanta, Georgia and have distribution operations in the southeast, northeast and on-line. The Southeastern distribution center is located in Norcross, Georgia and supports nine satellite centers across the state and supplies parts to key fleet customers across the country. Miller Auto Parts and its three subsidiaries sought Chapter 11 bankruptcy protection (Bankr. N.D. Ga.) on Sept. 15, 2014. The Debtors have sought joint administration under Lead Case No. 14- 68113. The cases are assigned to Judge Mary Grace Diehl. The Debtors have tapped Scroggins & Williamson as counsel and Logan & Co. as claims and noticing agent. The U.S. Trustee for Region 21 appointed three creditors of Miller Auto Parts & Supply Company Inc. to serve on the official committee of unsecured creditors. The Committee selected Kane Russell Coleman & Logan as its counsel, and McKenna Long & Aldridge LLP as its local counsel. MINI MAXI: Public Auction Set for December 5 -------------------------------------------- James B. Trachtman, substitute trustee, will sell at a public auction on Dec. 5, 2014 at 11:00 a.m. at the location designated for foreclosure sales at the Cumberland County Courthouse in Fayetteville, North Carolina, all real and personal property including any improvements owned by Mini Maxi Fayetteville LLC, a North Carolina limited liability company. The property shall be sold "AS IS, WHERE IS." The sale will be made subject to all deeds of trust, liens and encumbrances, unpaid taxes, restrictions, easements, assessments, leases and other matters, if any, which, as a matter of law, survive the foreclosure of the Deed of Trust. Any successful bidder may be required to deposit immediately upon the conclusion of the sale a cash deposit not to exceed the greater of 5% of the amount bid or $750. Any successful bidder will be required to tender the full balance of the purchase price so bid in cash or certified check at the time the substitute trustee tenders to him a deed for the interest to the property. The purchaser of the property will pay for the revenue stamps on the substitute trustee's Deed and the Clerk's Commissions in the amount of $0.45 per $100 of the purchase price (up to the maximum amount of $500.00). The Substitute Trustee can be reached at: James B. Trachtman 5905 Knollrock Drive Raleigh, NC 27612 Tel: 919 559-7500 Fax: 919 846-9000 E-mail: jtrachtman@trachtmanlawfirm.com MONROE HOSPITAL: Wins Approval of Settlement Procedures ------------------------------------------------------- U.S. Bankruptcy Judge James Carr authorized Monroe Hospital, LLC, to establish procedures to approve settlements of prepetition and postpetition claims. Judge Carr finds that absent the relief requested, the Debtor and its successor in interest would be required to seek Court approval to settle and compromise each individual dispute regarding a claim. Filing individual pleadings, sending notice of each proposed settlement to every creditor and interested party entitled to receive notice in the Chapter 11 Case, and holding hearings on the settlements would be an expensive, cumbersome, and highly inefficient way to obtain approval of settlements of disputes regarding a claim. The Debtor will implement the Settlement Procedures, under which the Debtor, its successor in interest, the impacted claimants and the Court will be relieved the time and delay associated with settlement motions being filed, and hearings being held, in connection with each prospective settlement. The Settlement Procedures will preserve an oversight function for key parties in interest to monitor and receive notice of any settlement of a disputed claim. The salient terms of the Settlement Procedures are: a. The Debtor or its successor-in-interest will file a certificate of counsel with the Court in connection with each settlement. b. The certificates of counsel and stipulations will be served via the Court's CM/ECF system to all parties that have filed an electronic appearance in the Chapter 11 Case. Further, the Debtor or its successor in interest will direct the Debtor's claims agent, UpShot Services, LLC, to serve the U.S. Trustee, Prime, MPT Bloomington, LLC ("MPT Bloomington"), MPT Development Services, Inc. ("MPT Development") and the parties to the settlements with the certificates of counsel and stipulations. c. If there is no objection within 10 days of filing the certificate of counsel and stipulation, without further order of Court, the stipulation and the prospective settlement it memorializes will be deemed approved and the Debtor or its successor in interest shall execute the stipulation to give effect to the prospective settlement. The relevant standards set forth in the Bankruptcy Code and the Bankruptcy Rules have been satisfied because the Settlement Procedures are reasonable and appropriate based on the size and complexity of the Chapter 11 Case and the types of disputes the Debtor and its successor in interest seek to resolve. The Settlement Procedures will streamline the claims resolution process, thereby eliminating unnecessary expenditures of time and money. The Settlement Procedures still provide for interested parties to receive notice of the prospective settlements and an opportunity to object. Moreover, seeking separate court approval to resolve numerous disputes that have and may still arise in connection to the claims would be unduly burdensome on the Debtor's bankruptcy estate, the Court and the Debtor's creditors. In a case of this size and complexity, the expense of seeking Court approval for every prospective settlement might significantly reduce the benefits otherwise incident to many of the prospective settlements. The Debtor submits Limiting notice will significantly reduce costs and expenses. Further, the parties most interested in any prospective settlement, the U.S. Trustee, MPT, Prime and the parties to the prospective settlement, will still receive notice of the prospective settlement. About Monroe Hospital Monroe Hospital, LLC, since 2006, has operated a 32 licensed bed private acute care medical surgical hospital in Bloomington, Indiana. It leases the land on which the hospital is located from MPT Bloomington, LLC. Monroe Hospital, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Ind. Case No. 14-07417) in Indianapolis, Indiana, on Aug. 8, 2014. Joseph Roche signed the petition as president and chief executive officer. In its schedules, the Debtor disclosed $14,327,739 in total assets and $136,386,925 in liabilities. The case is assigned to Judge James M. Carr. The Debtor is represented by attorneys at Bingham Greenebaum Doll LLP. Upshot Services LLC acts as the Debtor's noticing, claims and balloting agent. NAUTILUS HOLDING: HSH, Citi Blast Ch. 11 Plan Disclosures --------------------------------------------------------- Law360 reported that HSH Nordbank AG and Citibank International Ltd. urged a New York bankruptcy judge to reject Nautilus Holdings Ltd.'s disclosure statement, contending the document must fail because the shipper's underlying Chapter 11 plan is unworkable. According to the report, agents for distinct lending groups, HSH and Citibank argued in separate objections that Nautilus' disclosure statement should not be approved because the Chapter 11 plan it supports is patently unconfirmable. As previously reported by The Troubled Company Reporter, the Disclosure Statement dated Oct. 15, 2014, provides that the Plan is the product of negotiations between the Debtors and certain of the Debtors' prepetition secured lenders. The Plan addresses the Debtors' liabilities arising under the Debtors' prepetition secured credit facilities by either providing for a balance sheet restructuring or otherwise satisfying allowed secured claims pursuant to applicable provisions of the Bankruptcy Code, satisfies General Unsecured Claims in full within 90 days of the Effective Date, excluding accrued postpetition interest, and reinstates certain other claims and interests. A hearing to consider confirmation of the Plan is scheduled for Jan. 9, 2015, at 10:00 a.m. The Plan also provides that all cash necessary for the Reorganized Debtors to make payments required by the Plan will be obtained from (a) existing cash balances, including balances in the Debtors' accounts and (b) the operations of the Debtors or Reorganized Debtors. About Nautilus Holdings Limited 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. NETWORK CN: Director Quits for Personal Reasons ----------------------------------------------- Mr. Charles Liu, notified Network CN Inc. of his intention to resign from his position as a director of the Company for personal reasons, the Company disclosed in a regulatory filing with the U.S. Securities and Exchange Commission. Mr. Liu's resignation will become effective on Nov. 25, 2014. Mr. Liu's resignation was not the result of any disagreement with the Company on any matter relating to the Company's operations, policies or practices. The Board of Directors of the Company is currently reviewing candidates to fill the vacancy on the Board of Directors caused by Mr. Liu's resignation and will announce the appointment of a suitable candidate as soon as that determination is made. About Network CN Causeway Bay, Hong Kong-based Network CN Inc. provides out-of-home advertising in China, primarily serving the needs of branded corporate customers. Network CN recorded a net loss of $3.89 million on $891,000 of advertising revenues for the year ended Dec. 31, 2013, as compared with a net loss of $1.21 million on $1.83 million of advertising revenues in 2012. As of Sept. 30, 2014, the Company had $329,078 in total assets, $9.54 million in total liabilities and a $9.21 million total stockholders' deficit. Union Power Hong Kong CPA, Limited, in Hong Kong SAR, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred net losses of $3,883,493, $1,210,629 and $2,102,548 for the years ended December 31, 2013, 2012 and 2011 respectively. Additionally, the Company used net cash in operating activities of $680,424, $582,753 and $388,278 for the years ended December 31, 2013, 2012 and 2011 respectively. As of December 31, 2013 and 2012, the Company recorded stockholders' deficit of $7,656,871 and $4,032,289 respectively. These factors raise substantial doubt about the Company's ability to continue as a going concern. OPEN TEXT: S&P Affirms 'BB+' Corp. Credit Rating; Outlook Stable ---------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB+' long-term corporate credit rating, and stable outlook, on Waterloo, Ont.-based enterprise software and service provider Open Text Corp. At the same time, Standard & Poor's affirmed its 'BBB' issue-level rating, with a'1' recovery rating, on Open Text's senior secured revolver and term loans. "We are revising our liquidity assessment on Open Text to strong from adequate based on our view that the company's sources of liquidity will exceed its uses by more than 1.5x in the next two years and will remain positive even if forecasted EBITDA were to decline by 30% with no covenant breach under such a circumstance," said Standard & Poor's credit analyst David Fisher. In S&P's view, the company meets the qualitative factors, as defined by S&P's criteria, for a "strong" liquidity assessment. The change to this modifier is neutral to the rating. S&P's view of Open Text's business risk profile as "fair" reflects the company's solid market position as a leading provider of enterprise content management (ECM) and enterprise information management (EIM) solutions. Open Text benefits from a large base of high-margin maintenance revenues and a growing cloud-based business that generates recurring billings, a portion of which is derived from its key partners. S&P expects these two areas to contribute more than 65% of revenues in each of the next few years, providing a highly predictable revenue stream. S&P views the company's customer, end-market, and geographic diversity as favorable. S&P believes Open Text also has solid partner relationships with large enterprise software vendors, including SAP AG, Microsoft Corp., and Oracle Corp., as well as a number of value-added resellers. These partners have historically generated more than 40% of Open Text's license revenue. S&P notes that there is some concentration risk with these key partners. The company has modest scale and limited scope relative to its much larger and more diversified peers. In addition, Open Text operates in an intensely competitive operating environment, with rivals that include large software and IT infrastructure companies (such as Microsoft, IBM, Oracle, and EMC Corp.), as well as smaller software vendors focused on the ECM and EIM markets (such as Pegasystems Inc. and j2 Global Inc.) The stable outlook reflects S&P's expectation that Open Text will continue to generate solid revenue and earnings growth, supported by its large base of recurring maintenance revenue and acquisitive growth strategy. This should enable the company to maintain credit metrics commensurate with an intermediate financial risk profile -- specifically, adjusted debt-to-EBITDA in the 2x to 3x range. S&P could consider raising the ratings if Open Text continues to expand into the broader EIM market while developing an integrated set of product suites that resonate with customers, which materially improve the company's market position and scale. S&P would also expect Open Text to achieve a sustained mid-single- digit organic growth rate, at a minimum, while maintaining adjusted debt-to-EBITDA below 3x. S&P could lower the ratings on Open Text if the company adopts a more aggressive financial policy, including debt-financed acquisitions that push adjusted debt-to-EBITDA above 3x on a sustained basis or if the competitive environment intensifies to such an extent that the company loses market share to its rivals over a sustained period. OVERLAND STORAGE: Shareholders OK Proposed Merger With Sphere 3D ---------------------------------------------------------------- Overland Storage, Inc., announced that the proposed merger between Overland and Sphere 3D Corporation has been approved by the shareholders of Overland at the special meeting of Overland's shareholders held on Nov. 28, 2014. Over 99% of Overland's shares voted at the meeting were voted in favor of approving the merger. Overland and Sphere 3D publicly announced their proposed merger on May 15, 2014. Upon consummation of the merger, following regulatory approval and the satisfaction of other conditions of the Merger Agreement, each outstanding share of Overland common stock will be exchanged for 0.46385 common shares of Sphere 3D, subject to certain potential adjustments as set forth in the agreement. After completion of the merger, it is expected that current holders of Overland Shares will own approximately 28.8% of Sphere 3D on a fully diluted basis as a result of the exchange of shares in the merger. The merger is due to be completed early next week. About Overland Storage San Diego, Cal.-based Overland Storage, Inc. (Nasdaq: OVRL) -- http://www.overlandstorage.com/-- is a global provider of unified data management and data protection solutions designed to enable small and medium enterprises (SMEs), corporate departments and small and medium businesses (SMBs) to anticipate and respond to change. Overland Storage reported a net loss of $22.92 million for the year ended June 30, 2014, compared to a net loss of $19.64 million for the year ended June 30, 2013. As of Sept. 30, 2014, the Company had $88.74 million in total assets, $61.30 million in total liabilities and $27.43 million in total shareholders' equity. Moss Adams LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2014. The independent auditors noted that the Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. OW BUNKER: US Units Fight ING's Right to Collect on Bunker Bills ---------------------------------------------------------------- Eric Martin Stamford at TradeWinds reports that OW Bunker North America, OW Bunker USA and OW Bunker Holding North America have filed a complaint against OW Bunker & Trading's largest secured lender, ING Bank, challenging the bank's efforts to collect on bunker bills due to the U.S. entities. According to TradeWinds, the OW affiliates are estimated to have up to $100 million in accounts receivables. TradeWinds says that the affiliates incurred financial obligations in the U.S. but accounts receivables were sent to Denmark. TradeWinds relates that the Bank registered its liens on accounts receivable in the U.S. just as parent OW Bunker & Trading filed for liquidation in Denmark. Craig Lifland, Esq., at Zeisler & Zeisler, the attorney for the Bank, said that his client wants to maintain the status quo, TradeWinds states. The report says that the Bank insists OW's customers pay their bills into accounts at the Bank. TradeWinds quoted Mr. Lifland as saying, "They are out of business. They are trying to come up with solutions that figure out how to pay pre-petition unsecured vendors with our collateral." The most likely resolution of the Chapter 11 case is an ordered liquidation of the U.S. entities, TradeWinds reports, citing Natalie Ramsey, Esq., at Montgomery McCracken, the attorney for the OW affiliates. Ms. Ramsey told TradeWinds that one of the reasons the affiliates filed for a restructuring case in Connecticut was because of interest by suitors to buy the U.S. business, along with its employee group. According to the report, Ms. Ramsey said that the affiliates are actively working to sell assets, including the sale of oil in California thought to be worth at least $6 million, under bankruptcy rules that allow sales free and clear of liens. "We are also engaged in communications with other entities that are interested in purchasing the business" and both sale efforts are moving quickly, the report quoted Ms. Ramsey as saying. Ms. Ramsey said that her clients are "literally operating in an information void, TradeWinds reports. TradeWinds shares that the U.S. affiliates have been constructing a picture of their finances from what information is available, like e-mail and other local records, due to lack of access to financial information in the Copenhagen headquarters. About OW Bunker OW Bunker A/S is a Danish shipping fuel provider. On Nov. 7, 2014, OW Bunker A/S, which went public in March, declared bankruptcy and reported two employees at its Singapore unit to the police following allegations of fraud. It owes 15 banks a total of about US$750 million. OW Bunker said on Nov. 5 it had lost US$275 million through a combination of fraud committed by senior executives at its Singapore office and poor risk management. Trading in its shares was suspended on Nov. 5 and the company said its banks had refused to provide more credit. OW Bunker's U.S. businesses, which opened in 2012 as part of its global expansion, filed for Chapter 11 bankrutpcy protection on Nov. 13, 2014, in theh U.S. Bankruptcy Court for the District of Connecticut. The U.S. subsidiaries have assets worth as much as US$50 million and debt of as much as US$100 million. PARADIGM EAST: Disclosure Statement Hearing Slated for Dec. 16 -------------------------------------------------------------- Paradigm East Hanover, LLC, is proposing a Reorganization Plan that will be funded from: a. A secured loan from JABE Management, an affiliate of the Debtor, which will bear interest at 5% per annum and be satisfied from the sale of Lot 4, Lot 4.02 and Lot 5.01, as the case may be; b. the sale proceeds from the disposition of the properties; c. in the event the Debtor chooses not to sell any or all of the properties, the revenues generated by the Debtor developing the properties. The Debtor will seek approval of the Disclosure Statement at a hearing on Dec. 16, 2014, at 2:00 p.m. Under the Plan, existing equity interests will be retained while allowed general unsecured claims will be paid a pro rata share of the net sale proceeds from the sale of Lt 4, Lot 4.02 and/or Lot 5.01. In the event that the Debtor does not sell the lots within the 3-year plan term, general unsecured claims will receive a 2- year unsecured note aggregating 50% of the allowed general unsecured claims which will bear interest at prime rate commencing on the third anniversary of the Effective Date. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/ParadigmEast_22_DS.pdf Creditors Object EHMP, LLC, a secured creditor, has filed an objection to the Disclosure Statement and Plan. EHMP states that the Debtor's Disclosure Statement fails to provide EHMP with adequate information from which to adequately evaluate the feasibility of Debtor's proposed Chapter 11 Plan or to base its decision on whether or not to object to the Debtor's proposed Chapter 11 Plan. Although the Disclosure Statement and Plan provide for the Debtor to obtain a secured loan from JABE Management to fund the plan, the Debtor has not attached a copy of the loan commitment and/or any other documentation which would indicate that the Debtor has approval for the loan. In addition, the Debtor has not included any financial data or analysis to demonstrate that JABE, which is an "affiliate" of the Debtor or one of its members, has the ability to finance the Debtor's Plan. The Debtor must provide financial projections for JABE to determine whether it will be able to continue to fund the plan for the three years in the event the Debtor does not sell the Property. Even a guarantee from JABE is not reassuring absent documentation of the financial security of JABE. Thus, the mere suggestion that JABE, a non-debtor entity, will provide financing sufficient to satisfy the Debtor's Chapter 11 Plan is too speculative, nebulous and uninformative. In addition, one has to question, if the Debtor could have so easily obtained financing from JABE, why they would have needed to file bankruptcy at all, since they could have obtained a loan from JABE to redeem the Tax Lien. The Debtor has also not provided an appraisal or other reliable source to substantiate the value of the Property in order to demonstrate and assure the secured status of EHMP's Tax Lien and the other secured creditors. On its schedules, the Debtor claims to own 80% of the Property as tenants in common with 77 Charters, Inc. However, there is no indication from the plan or schedules that 77 Charters, Inc. agrees to the sale of the Property to fund the Chapter 11 Plan. EHMP is represented by: GARY C. ZEITZ, L.L.C. Linsa S. Fossi, Esq. Robin I. London-Zeitz, Esq. 1105 Laurel Oak Road, Suite 136 Voorhees, NJ 08043 Tel: (856) 857-1222 The U.S. Bank Custodian for Empire Tax Lien Fund II, LLC, has joined the objection of EHMP. Creditor Gustave Dotoli also filed an objection to the Disclosure Statement saying the Debtor propose to make few modest payments for a three-year period after confirmation with a large balloon payment after the third year. However, there is no indication how the Debtor would make such a large balloon payment. Mr. Dotoli states that the Debtor is attempting to kick the can down the road. The Debtor, according to him, will almost certainly end up having to re-file another Chapter 11 in three years. About Paradigm East Paradigm East Hanover, LLC, sought Chapter 11 bankruptcy petition (Bankr. D.N.J. Case No. 14-25017) in Newark, New Jersey, on July 23, 2014. The Debtor, a Single Asset Real Estate as defined in 11 U.S.C. Secf. 101(51B), disclosed assets of between $10 million and $50 million, and debt of less than $10 million. The company is owned by entities held by Paradigm Capital Funding, LLC. The case is assigned to Judge Donald H. Steckroth. Morris S. Bauer, Esq., at Norris McLaughlin & Marcus, PA, in Bridgewater, New Jersey, serves as counsel. PELICAN CAY: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Pelican Cay Harbor LLC 299 Morris Avenue Key Largo, FL 33037 Case No.: 14-36294 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: November 28, 2014 Court: United States Bankruptcy Court Southern District of Florida (Miami) Judge: Hon. Laurel M Isicoff Debtor's Counsel: Richard B Pyles, Esq. RICHARD B PYLES 15888 SW 95 Ave #126 Miami, FL 33157 Tel: 786-286-5271 E-mail: richardbpyles@bellsouth.net Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The Debtor did not file a list of its largest unsecured creditors when it filed the petition. PHILLIPS INVESTMENT: Judge Approves Dec. 9 Auction for Property --------------------------------------------------------------- U.S. Bankruptcy Judge Mary Grace Dieh entered an order approving the procedures to govern the sale of Phillips Investments, LLC's real property -- certain improved real property and related assets of the Debtor. The Debtor scheduled a Dec. 9 auction for the assets commencing at 10:00 a.m., in the offices of Scroggins & Williamson, P.C., 127 Peachtree Street, N.E., Suite 1500, Atlanta, Georgia. Competing bids were due Dec. 5, at 5:00 p.m. The Court will consider the sale of the assets to the winning bidder at a hearing on Dec. 12. Objections, if any are due Dec. 5, 2014, at 5:00 p.m. As reported in the TCR on Nov. 19, 2014, the Debtor owns various parcels of real property located in Gwinnett County, Georgia and operates shopping center on its property commonly known as Gwinnett Station and Gwinnett Prado. The Debtor has been in discussions with a number of entities with respect to a potential sale of Gwinnett Station, Gwinnett Prado or both. On Oct. 14, 2014, the Debtor entered into a real estate purchase agreement with Shang Hei, LLC (stalking horse bidder) to acquire the Debtor's rights, title and interest in Gwinnett Station and the leases for $7.5 million. The agreement provides for, among other things, 1. $25,000 will be paid from the sale proceeds to ChangHei's real estate broker, Regent Group Realty LLC; 2. inspection period will 30 days from the date of execution of the Shang Hei purchase agreement, it is expected that the inspection period will have expired prior to the auction and the sale hearing; and 3. closing is to occur on a date on or before 15 days after the Court enters the sale order, Shang Hei may extend the closing date for an additional 45 days upon payment of a non-refundable $300,000 payment to the Debtor. The Debtor believes that lender East West Bank will consent to the sale. The Debtor owes $17.6 million aggregate amount to East West Bank. About Phillips Investments Phillips Investments, LLC, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ga. Case No. 14-61444) on June 11, 2014. Ly Phillips signed the petition as managing member. Phillips Investments owns several parcels of improved commercial real estate from which it operates two retail shopping centers. The Debtor disclosed $29,558,424 in assets and $28,667,234 in liabilities as of the Chapter 11 filing. Scroggins & Williamson, P.C., serves as the Debtor's counsel. Judge Mary Grace Diehl presides over the case. PHOENIX REALTY: Augusta Property to Be Sold at Dec. 5 Auction ------------------------------------------------------------- Keenan Auction Company will conduct a public auction at 3:00 p.m., on Dec. 5, 2014, to sell Phoenix Realty Holdings LLC's property located at 49 Kamich Drive Augusta, Maine. Any bidder wishing to bid must, prior to the start of the auction, make a deposit of $10,000 to bid in cash or certified U.S. funds made payable to Keenan Auction. Unsuccessful bidders will receive a refund of their deposit. As to the successful bidder, the deposit will be nonrefundable, and will be credited to the purchase price. The successful bidder will be required to sign a purchase and sale agreement. The balance of the purchase price shall be due and payable on or before Jan. 5, 2015. The Real Estate will be conveyed by a quitclaim deed without covenant and Personal Property, if any, by release bill of sale. Androscoggin Savings Bank, mortgagee, reserves the right to bid without making the required deposit. Additional terms and conditions pertaining to the sale may be obtained prior to the sale from Keenan Auction. Mortgagee reserves the right to waive or modify the terms of sale and the right to postpone or adjourn the sale as necessary for any reason. Other terms and conditions pertaining to the sale may be announced at the time of the sale. Interested bidders are urged to contact: Keenan Auction Company One Runway Road South Portland, ME 04106 Tel: (207) 885-5100 E-mail: info@keenanauction.com POLY PLANT PROJECT: U.S. Trustee Appoints Creditors' Committee -------------------------------------------------------------- The U.S. Trustee for Region 16 appointed three creditors of Poly Plant Project to serve on the official committee of unsecured creditors: (1) Stephen Karp Aspen Technology Inc. 200 Wheeler Road Burlington, MA 01803 Phone: 781-221-4282 Fax: 781-221-5241 E-mail: Stephen.karp@aspentech.com (2) Fabrizio Carnelli Friem SpA Via Thomas Alva Edison 1 20090 Segrate Milan Italy Phone: +39 02 87235351 Fax: +39 02 26923036 E-mail: fabrizio.carnelli@friem.com (3) Luca Pierfelice Walter Tosto SpA Via Ermaso Piaggo, 72 66100 Chieti Scalo Italy Phone: +39 0871 580254 Fax: +39 0871 564101 E-mail: l.pierfelice@waltertosto.it Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Poly Plant Project Poly Plant Project filed a Chapter 11 bankruptcy petition in its hometown in Los Angeles (Bankr. C.D. Cal. Case No. 14-17109) on April 14, 2014. Tetsunori T. Kunimune signed the petition as chief executive officer. The Debtor disclosed total assets of $16.75 million and total liabilities of $22.29 million. Donahoe & Young LLP serves as the Debtor's counsel. Judge Thomas B. Donovan oversees the case. QUEST SOLUTION: Appoints Scot Ross as Chief Financial Officer ------------------------------------------------------------- Quest Solution, Inc., has named Scot Ross as its new chief financial officer, effective on the closing of the transaction with Bar Code Specialties, Inc., which was previously announced. Mr. Ross presently serves as executive vice-president and CFO for BCS. Mr. Ross will also be joining the Board of Directors for The Company. In addition to his service to BCS during a period of remarkable growth, he has previously served in an executive and CFO capacity for 4 venture backed growth companies in a variety of industries, both domestic and international. Mr. Ross has significant expertise in a number of Quest Solution's core verticals. Mr. Ross began his career in public accounting as a CPA and was an Audit Manager with Arthur Andersen in Orange County, California, and left the firm in 1989 to join The Severin Group (the worldwide manufacturer and distributor of Gucci Timepieces) as the Worldwide Corporate Controller. In 1992, he joined a venture capital financed technology company, CDB Infotek, as its vice president, chief financial officer, and director before engineering the sale of the business to a division of Equifax Corporation in 1996. From 1997 to 2000, Mr. Ross worked as the vice president and CFO with Fresh Start Bakeries, Inc. (an international contract bakery supplier to McDonald's Corporation) and co-engineered a MBO/LBO from Campbell's Soup Company. From 2000-2002, he served as president and CEO of E- Commerce Exchange and later sold this business to iPMT Technologies. From 2002-2007 he was the CFO of M-Audio, a digital audio and music recording company that was sold to Avid Technologies in 2004. From 2007-2010 he served as contract CFO to a variety of companies and has worked with BCS from 2011-present. During his 25+ year career, Mr. Ross has been involved in 20 merger, acquisition and financing transactions with a cumulative value of over $500 million. He holds a B.S. degree from the University of Southern California. "Quest Solution is excited to add an executive of Mr. Ross's talent and experience to our growing Company and management team," stated Jason Griffith, CEO, Quest Solution, Inc. "His knowledge of BCS and experience with high growth technology companies will be a tremendous asset as we integrate BCS with the Company. We fully expect Mr. Ross to assist us greatly through this period of growth and expansion and to maintain the integrity of our financial reporting." "I am very pleased to join Quest Solution as their Chief Financial Officer and to serve on the Board of Directors," said Ross. "Quest Solution is uniquely positioned to capitalize on a tremendous market opportunity with its acquisition strategy and I am thrilled to be able to leverage my knowledge of both BCS and the Quest Solution business model, as well as in performing my obligations to the Company and its shareholders." In connection with his appointment as the CFO, on Nov. 20, 2014, Mr. Ross entered into an employment agreement with the Company. The CFO Employment Agreement has an initial term of five years and can be renewed automatically thereafter for one year until ten years after the date of the CFO Employment Agreement, unless terminated early by the Company or Mr. Ross. Concurrently, on Nov. 20, 2014, Mr. Jason Griffith, the chief executive officer of the Company, entered into an employment agreement with the Company. Both will receive an annual base salary of $180,000, which will be increased at least by 5% per year. They may be eligible to receive discretionary bonuses or acquisition bonuses at the sole discretion of the Board of its Compensation Committee. About Quest Solution Quest Solution (formerly known as Amerigo Energy, Inc.) is a national mobility systems integrator with a focus on design, delivery, deployment and support of fully integrated mobile solutions. The Company takes a consultative approach by offering end to end solutions that include hardware, software, communications and full lifecycle management services. The highly tenured team of professionals simplifies the integration process and delivers proven problem solving solutions backed by numerous customer references. Motorola, Intermec, Honeywell, Panasonic, AirWatch, Wavelink, SOTI and Zebra are major suppliers which Quest Solution uses in its systems. Amerigo Energy reported a net loss of $1.12 million in 2013 following a net loss of $191,364 in 2012. L.L. Bradford & Company, LLC, Las Vegas, NV, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern. QUEST SOLUTION: Closes Deal With Bar Code Specialties ----------------------------------------------------- Quest Solution, Inc., has completed the transaction previously announced with privately held Bar Code Specialties, Inc. The accretive transaction was announced last week, but final paperwork and closing conditions were completed last Friday. As previously disclosed by Quest Solution in a Form 8-K filed on Nov. 19, 2014, the Company entered into a Stock Purchase Agreement on Nov. 17, 2014, with Bar Code Specialties, Inc., and David Marin, the sole stockholder of BCS, pursuant to which the Company agreed to purchase all outstanding shares of common stock of BCS held by the BCS Stockholder for an aggregate purchase price of $11 million. The Purchase Price is payable in the form of a five-year secured subordinated convertible promissory note. The Purchase Price is subject to certain adjustments after the closing of the Transaction based on the amount of working capital of the Company on the date of the closing. The Stockholder Note is convertible any time at the election of the holder into shares of common stock of the Company at a conversion price of $2.00 per share. In addition, the Agreement provides that the BCS Stockholder will be employed as Western Director of Sales following the closing of the Transaction. As previously announced, the BCS shareholder will receive a subordinated promissory note, which may be converted into QUES common stock at $2 per share. David Marin, the sole shareholder and founder of BCS, will remain with the Company. No shares are being issued in conjunction with this transaction, but the Company will issue stock options to purchase up to 2,500,000 shares of the Company's common stock to Mr. Marin, which options will vest upon reaching certain milestones based on the duration of his continued service with the Company and revenue achievements. "I am pleased this transaction has now been completed. Ever since we started discussing the potential synergies, we have mapped out the strategies we believe will maximize shareholder value, earnings per share, and synergies for both of our companies," stated Scot Ross, chief financial officer, Quest Solutions. "With the robust suite of products that BCS offers in addition to the normal AIDC services, we anticipate this will be a great value added addition for the Quest Solution, Inc. sales team." About Quest Solution Quest Solution (formerly known as Amerigo Energy, Inc.) is a national mobility systems integrator with a focus on design, delivery, deployment and support of fully integrated mobile solutions. The Company takes a consultative approach by offering end to end solutions that include hardware, software, communications and full lifecycle management services. The highly tenured team of professionals simplifies the integration process and delivers proven problem solving solutions backed by numerous customer references. Motorola, Intermec, Honeywell, Panasonic, AirWatch, Wavelink, SOTI and Zebra are major suppliers which Quest Solution uses in its systems. Amerigo Energy reported a net loss of $1.12 million in 2013 following a net loss of $191,364 in 2012. L.L. Bradford & Company, LLC, Las Vegas, NV, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern. RECYCLE SOLUTIONS: Can Use Cash Collateral to Make Payroll ---------------------------------------------------------- U.S. Bankruptcy Judge Paulette J. Delk has signed off on an order granting Recycle Solutions, Inc., to use cash collateral on an interim basis. The Debtor is authorized to use cash collateral not to exceed $99,865 in its ordinary course of business to make its payroll and to pay those expenses. Regions Bank agrees to this limited and specific use of cash collateral in return for the granting to Regions Bank of a replacement lien on all pre- and post-petition property of the estate up to the amount of cash collateral used to pay such expenses. The liens will be in the same priority as they existed pre-petition. Regions Bank reserves its rights to object to further use of cash collateral. As reported in the TCR on Nov. 12, 2014, Recycle Solutions, Inc., seeks authority from the U.S. Bankruptcy Court for the Western District of Tennessee, Western Division, to use the cash collateral consisting of personal property, tangible and intangible, including inventory, accounts receivable and general intangibles, and their proceeds, that secure its prepetition indebtedness from Regions Bank. The Debtor seeks authority to use cash collateral on an interim basis to meet operational needs and to pay debts incurred in the ordinary course of its business. In return, the Debtor proposes to grant replacement liens on said cash collateral on an ongoing basis until a final hearing can be held. About Recycle Solutions Recycle Solutions, Inc., a Tennessee-based company that makes $10 million a year from recycling plastic bottles, paper and cans in the Southeast, sought Chapter 11 bankruptcy protection in its home-town in Memphis (Bankr. W.D. Tenn. Case No. 14-31338) on Nov. 4, 2014, disclosing assets of $11.5 million against liabilities of $6.4 million. The case is assigned to Judge George W. Emerson Jr. The Debtor is represented by Steven N. Douglass, Esq., at Harris Shelton Hanover Walsh, PLLC, in Memphis. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due March 4, 2015. Recycle Solutions, founded in 2002 in Memphis, TN, is in the business of recycling and reusing plastic, wood and packaging for film rolls. The company claims to be a pioneer in helping leading corporations develop and implement innovative programs to reduce their environmental impact. James Downing, of Arlington, Tennessee, founder and president, owns 100% of the stock. REICHHOLD HOLDINGS: Committee Balks at Kelly Garfinkle Hiring ------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Reichhold Acquisitions Holdings LLC, asks that the Bankruptcy Court deny approval of Reichhold's application to employ Kelly Garfinkle Strategic Restructuring LLC as pension advisor to the Debtors, nunc pro tunc to Sept. 30, 2014. According to the Committee, at this stage of the cases, the Debtors should not be spending the estates' limited resources to retain professionals whose services do not appear to be necessary or appropriate. Additionally, the Debtors, the Committee alleges, have failed to establish that the retention of KGSR as pension advisor is necessary or appropriate, or that the proposed compensation is reasonable. The Committee is represented by: Josef W. Mintz, Esq. Bonnie Glantz Fatell, Esq. BLANK ROME LLP 1201 N. Market Street Wilmington, DE 19801 Tel: (302) 425-6400 Fax: (302)-425-6464 Mark S. Indelicato, Esq. Mark T. Power, Esq. Janine Figueiredo, Esq. HAHN & HESSEN LLP 488 Madison Avenue New York, NY 10022 Tel: (212) 478-7200 Fax: (212) 478-7400 The Application As reported in the TCR on Nov. 10, 2014, the Debtors have tapped KGSR to provide pension advisory services to the Debtors in connection with the chapter 11 cases, and provide related advisory services to the Debtors and their counsel, advisors and consultants relating to the pension-related liabilities and obligations of the Debtors, including these, as requested: -- Development of the strategy and tactics for negotiating a final resolution with respect to the Debtors' unfunded pension liability and current funding requirements with the Pension Benefit Guaranty Corporation ("PBGC"), including: * developing strategy for approaching PBGC with respect to the particular structural reorganization selected by the Debtors; * working with the various current Debtors' stakeholders and prospective equity sponsors to educate them about PBGC and its process and to ensure that the alignment of their interests is consistent with the Debtors obtaining the maximum available relief from the PBGC; * working with the Debtors and its various stakeholders and prospective stakeholders with respect to all PBGC mattes, including voluntary, distress and involuntary pension plan termination scenarios and all other matters concerning the PBGC; * providing guidance and support to the Debtors when responding to all requests from the PBGC for additional data; * arranging necessary political support documentation for the Debtors; * arranging necessary meeting with appropriate PBGC staff; * negotiating on the Debtors' behalf terms of any agreement with the PBGC; * supporting the Debtors in responding and negotiating a settlement with the PBGC, including strategy development, preparing responses, leading meetings and negotiations, and following up with the staff to move the process; and * providing other support as needed. The firm's Fee Structure provides that the Debtors are obligated to pay the following compensation to KGSR: (a) A monthly cash fee of $30,000 for the duration of the Engagement. (b) A "Contingent Completion Fee", depending on the outcome of certain negotiations with certain stakeholders. KGSR will also be reimbursed for reasonable out-of-pocket expenses incurred. About Reichhold Founded in 1927, Reichhold, with its world headquarters and technology center in Durham, North Carolina, USA, is one of the world's largest manufacturer of unsaturated polyester resins and a leading supplier of coating resins for the industrial, transportation, building and construction, marine, consumer and graphic arts markets. Reichhold -- http://www.Reichhold.com/-- has manufacturing operations throughout North America, Latin America, the Middle East, Europe and Asia. As of June 30, 2014, the Reichhold companies had consolidated assets of $538 million and liabilities of $631 million. In 2013, the companies generated $1.08 billion in net revenue, and as of the year-to-date August 2014, $750 million in net revenues. Reichhold Holdings US, Inc., Reichhold, Inc., and two U.S. affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-12237) on Sept. 30, 2014. The Reichhold Companies are pursuing a sale transaction that has two elements: (i) a consensual foreclosure by the holders of senior secured notes on their security interests in the common and preferred stock in Reichhold Holdings Luxembourg, S.a.r.l. ("RHL"), the ultimate holding company of all of the non-debtor affiliates that operate outside the U.S., and (ii) a purchase of certain assets of the Debtors by Reichhold Holdings International B.V. through a credit bid pursuant to Section 363 of the Bankruptcy Code. Cole, Schotz, Meisel, Forman & Leonard, P.A. (legal advisor) and CDG Group LLC (financial advisor) are representing Reichhold, Inc. Latham & Watkins LLP (legal advisor) and Moelis & Company (investment banker) are serving Reichhold Industries, Inc. Logan & Company is the company's claims and noticing agent. The cases are assigned to Judge Mary F. Walrath. The U.S. Trustee for Region 3 appointed seven creditors of Reichhold Holdings US, Inc. to serve on the official committee of unsecured creditors. The Creditors' Committee retains Hahn & Hessen LLP as lead counsel, Blank Rome LLP as co-counsel, and Capstone Advisory Group, LLC and Capstone Valuation Services, LLC, as financial advisor. An Ad Hoc Committee of Asbestos Claimants also appears in the case. The Ad Hoc Committee consists of three plaintiff law firms, Cooney & Conway, Gori Julian & Associates, P.C., and Simmons Hanly Conroy LLC, each in their capacity as tort counsel for clients of their firms who have asbestos-related personal injury or wrongful death claims against the Debtors. The Committee is represented by Mark T. Hurford, Esq., at Campbell & Levine, LLC; and Caplin & Drysdale, Chartered's James P. Wehner, Esq. and Jeffrey A. Liesemer, Esq. REVEL AC: Unsecured Creditors Say DIP Request Cheats Them --------------------------------------------------------- Law360 reported that the unsecured creditors in the Revel Casino Hotel's bankruptcy blasted the debtors in a New Jersey bankruptcy court filing, saying the estate will be insolvent if the court allows Revel to prioritize repayment of a $125 million debtor-in- possession loan from Wells Fargo NA. According to the report, citing the court filing, the committee of unsecured creditors has objected to a motion seeking U.S. Bankruptcy Judge Gloria M. Burns' approval on senior priming liens and superpriority claims to roll up $125 million in pre-petition financing provided by Wells Fargo. About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13- 16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. REVEL AC: Owners Appeal Atlantic City Tax Sale ---------------------------------------------- Wayne Parry at the Associated Press reports that Revel AC, which closed on Sept. 2, 2014, sought to stop Atlantic City from collecting $32 million in unpaid property taxes. According to the report, the owners of Revel filed an appeal of a bankruptcy court order letting Atlantic City hold a tax sale of the unpaid debt. The AP relates that a deal to sell the property to a Canadian firm for $110 million fell apart this month. The report says that proceeds from that sale would have been used to pay off the back taxes. About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases are assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13- 16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. RG STEEL: Forges Deal to Cut $84MM Linde Claim by Half ------------------------------------------------------ Law360 reported that RG Steel LLC asked a Delaware bankruptcy judge to approve a deal it struck with industrial gas supplier Linde LLC that cuts its $83.7 million in claims nearly in half and reduces the debtor's administrative liabilities in an attempt to provide some recovery for unsecured creditors. According to the report, RG Steel said the deal would slash the total amount of Linde's 17 claims to $42.2 million and bring down the gas supplier's administrative claims -- liabilities paid before most others in Chapter 11 cases -- from $1.2 million to $320,000. Besides the $320,000 administrative liability, the rest of Linde's claim would be in the general unsecured bucket, the report related. About RG Steel RG Steel LLC -- http://www.rg-steel.com/-- is the United States' fourth-largest flat-rolled steel producer with annual steelmaking capacity of 7.5 million tons. It was formed in March 2011 following the purchase of three steel facilities located in Sparrows Point, Maryland; Wheeling, West Virginia and Warren, Ohio, from entities related to Severstal US Holdings LLC. RG Steel also owns finishing facilities in Yorkville and Martins Ferry, Ohio. It also owned Wheeling Corrugating Company and has a 50% ownership in Mountain State Carbon and Ohio Coatings Company. RG Steel along with affiliates, including WP Steel Venture LLC, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12- 11661) on May 31, 2012. Bankruptcy was precipitated by liquidity shortfall and a dispute with Mountain State Carbon, LLC, and a Severstal affiliate, that restricted the shipment of coke used in the steel production process. The Debtors estimated assets and debts in excess of $1 billion. As of the bankruptcy filing, the Debtors owe (i) $440 million, including $16.9 million in outstanding letters of credit, to senior lenders led by Wells Fargo Capital Finance, LLC, as administrative agent, (ii) $218.7 million to junior lenders, led by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million on account of a subordinated promissory note issued by majority owner The Renco Group, Inc., and (iv) $100 million on a secured promissory note issued by Severstal. Judge Kevin J. Carey presides over the case. The Debtors are represented in the case by Robert J. Dehney, Esq., and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP, and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T. Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors. Conway MacKenzie, Inc., serves as the Debtors' financial advisor and The Seaport Group serves as lead investment banker. Donald MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman Carson Consultants LLC is the claims and notice agent. Wells Fargo Capital Finance LLC, as Administrative Agent, is represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang Ziehi & Jones LLP. Renco Group is represented by lawyers at Cadwalader, Wickersham & Taft LLP. Kramer Levin Naftalis & Frankel LLP represents the Official Committee of Unsecured Creditors. Huron Consulting Services LLC serves as the Committee's financial advisor. The Debtor has sold off the principal plants. The sale of the Wheeling Corrugating division to Nucor Corp. brought in $7 million. That plant in Sparrows Point, Maryland, fetched the highest price, $72.5 million. CJ Betters Enterprises Inc. paid $16 million for the Ohio plant. RG Steel Sparrows Point LLC has received the green light to sell some of its assets to Siemens Industry, Inc., which include equipment and related spare parts, for $400,000. SAMUEL WYLY: Church Says SEC, IRS Silencing Small Creditors ----------------------------------------------------------- Erik Larson, writing for Bloomberg News, reported that the Third Church of Christ, Scientist, to whom former billionaire Samuel Wyly owes $20,000, complained in a court filing that the U.S. Securities and Exchange Commission and the Internal Revenue Service as trying to silence smaller creditors that can't match the government's "unlimited" legal resources. According to the report, Mr. Wyly owes the $20,000 to the church under a 2010 pledge to donate $100,000 over five years, the religious organization said. As previously reported by The Troubled Company Reporter, the church, as well as Thanks-Giving Foundation, sought to have a seat in an official committee of unsecured creditors in the billionaire's Chapter 11 case. About Samuel Wyly Samuel Wyly filed for Chapter 11 bankruptcy protection on Oct. 19, 2014, weeks after a judge ordered him to pay several hundred million dollars in a civil fraud case. In September, a federal judge ordered Mr. Wyly and the estate of his deceased brother to pay more than $300 million in sanctions after they were found guilty of committing civil fraud to hide stock sales and nab millions of dollars in profits. The case is In re Samuel E. Wyly, 14-35043, U.S. Bankruptcy Court, Northern District of Texas (Dallas). SAMUEL WYLY: Family Members Decry Asset Freeze in 2nd Circuit ------------------------------------------------------------- Law360 reported that family members of bankrupt Sam Wyly and his late brother Charles Wyly Jr. have asked the Second Circuit to overturn a ruling freezing their assets as the U.S. Securities and Exchange Commission seeks to collect a massive fraud judgment from the former corporate titans. According to the report, in a motion to expedite the appeal, 15 Wyly family members argued that they were unfairly subjected to an asset freeze on Nov. 3 after being added as relief defendants in the SEC case. As previously reported by The Troubled Company Reporter, the Wyly family members argued that the SEC could end up violating the constitutional rights of the extended family of the Texas tycoon and his late brother if the agency's proposed order to freeze their assets goes through. About Samuel Wyly Samuel Wyly filed for Chapter 11 bankruptcy protection on Oct. 19, 2014, weeks after a judge ordered him to pay several hundred million dollars in a civil fraud case. In September, a federal judge ordered Mr. Wyly and the estate of his deceased brother to pay more than $300 million in sanctions after they were found guilty of committing civil fraud to hide stock sales and nab millions of dollars in profits. The case is In re Samuel E. Wyly, 14-35043, U.S. Bankruptcy Court, Northern District of Texas (Dallas). SEEGRID CORP: Ch. 11 Confirmation Hearing Pushed to 2015 -------------------------------------------------------- Law360 reported that a Delaware bankruptcy judge pushed back robotics developer Seegrid Corp.'s scheduled Chapter 11 plan confirmation hearing from Dec. 10 to early January, saying the court's schedule cannot accommodate what promises to be a highly contested multiday trial on the original requested date. According to the report, U.S. Bankruptcy Judge Brendan L. Shannon made the move hours into a hearing in Wilmington, Delaware, noting that the amount of time already expended on what was essentially a scheduling dispute and said it was clear the more substantial issue of confirmation couldn't be completed on the debtor's target date of Dec. 10. About Seegrid Corporation Pittsburgh-based Seegrid Corporation is a developer of robotic vision-guided automated vehicles. It was founded in 2003 by two Carnegie Mellon University robotic scientists, Hans Moravec and Scott Friedman. Seegrid Corporation filed for Chapter 11 bankruptcy protection (Bank. D. Del. Case No. 14-12391) on Oct. 21, 2014, estimating its assets at $1 million to $10 million and its debt at $50 million to $100 million. The Hon. Brendan Linehan Shannon presides over the case. The petition was signed by David Hellman, president. SEEGRID CORP: Creditors Sue Giant Eagle for Misconduct ------------------------------------------------------ Sherri Toub, a bankruptcy columnist for Bloomberg News, reported that some creditors and minority shareholders of robotics developer Seegrid Corp. sued Giant Eagle Inc., claiming it's using its position as controlling shareholder and creditor to seize valuable assets while leaving them with almost nothing. According to the report, HERC Management Services LLC, Screaming Eagle Air Inc., and Great American Health Plans Inc., affiliated with former chief executive Anthony Horbal, accused Giant Eagle in a 37-page complaint filed Nov. 17 in Delaware bankruptcy court of breach of fiduciary duty and mismanagement. The group sought to have Giant Eagle's claims against Seegrid subordinated, the report related. About Seegrid Corporation Pittsburgh-based Seegrid Corporation is a developer of robotic vision-guided automated vehicles. It was founded in 2003 by two Carnegie Mellon University robotic scientists, Hans Moravec and Scott Friedman. Seegrid Corporation filed for Chapter 11 bankruptcy protection (Bank. D. Del. Case No. 14-12391) on Oct. 21, 2014, estimating its assets at $1 million to $10 million and its debt at $50 million to $100 million. The Hon. Brendan Linehan Shannon presides over the case. The petition was signed by David Hellman, president. SHELDRAKE LOFTS: O'Connor Fraud Suit to Stay in Bankruptcy Court ---------------------------------------------------------------- Law360 reported that a New York federal judge denied Cozen O'Connor's bid to move to federal court an adversary suit alleging the firm committed fraud and breached its fiduciary duties, causing a residential community developer to file for bankruptcy, saying the bankruptcy court was better suited to handle the case. According to the report, Cozen O'Connor had argued that each of the claims in Sheldrake Lofts LLC's case against the firm are noncore state law claims over which the bankruptcy court lacks jurisdiction and which are scheduled for trial. The case is Sheldrake Lofts LLC et al v. Remediation Capital Funding LLC et al., Case No. 7:14-cv-04274 (Bankr. S.D.N.Y.). About Sheldrake Lofts New Rochelle, New York-based Sheldrake Lofts LLC owns several contiguous parcels of real property in the Village of Mamaroneck situated along the Sheldrake River: 270 Waverly Avenue, 206-208 Waverly Avenue, 188 Waverly Avenue. It filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-23650) on Aug. 10, 2010. David H. Wander, Esq., at Davidoff, Malito & Hutcher, LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $50 million to $100 million and its debts at $10 million to $50 million as of the Petition Date. SPENDSMART NETWORKS: Discontinues Card Division ----------------------------------------------- As part of SpendSmart Networks, Inc.'s efforts to reduce expenses as well as focus its resources on its Mobile and Loyalty Marketing Division, the Company decided to begin a wind down of the operations of its Card Division on Nov. 26, 2014. All Card Division related operations will cease on or about Jan. 26, 2015. The Company will be corresponding with its customers to effect an orderly wind down of its operations, the Company said in a regulatory filing with the U.S. Securities and Exchange Commission. In connection with the wind down of the Card Division, the Company expects to incur approximately $1.2 million in expenses and charges, consisting of: (i) approximately $730,000 in personnel related expenses; (ii) approximately $405,000 in operating expenses; and (iii) approximately $20,000 in professional expenses. Following the transition, the Company expects to realize annualized net savings of approximately $2.1 million. Beginning on Nov. 26, 2014, the Company began notifying its customers of its plan to wind down the Card Division and cease all Card Division related operations on or about Jan. 26, 2015. About SpendSmart Networks SpendSmart Networks, Inc., provides proprietary loyalty systems and a suite of digital engagement and marketing services that help local merchants build relationships with consumers and drive revenues. These services are implemented and supported by a vast network of certified digital marketing specialists, aka "Certified Masterminds," who drive revenue and consumer relationships for merchants via loyalty programs, mobile marketing, mobile commerce and financial tools, such as prepaid card and reward systems. We enter into licensing agreements for our proprietary loyalty marketing solution with "Certified Masterminds" which sell and support the technology in their respective markets. The Company's products aim to make Consumers' dollars go further when they spend it with merchants in the SpendSmart network of merchants, as they receive exclusive deals, earn rewards and ultimately build a connection with their favorite merchants. For the 12 months ended Sept. 30, 2013, the Company reported a net loss and comprehensive loss of $12.58 million on $1.02 million of revenues compared with a net loss and comprehensive loss of $21.09 million on $1 million of revenues for the same period in 2012. As of Sept. 30, 2014, the Company had $12.02 million in total assets, $1.92 million in total liabilities and $10.10 million in total stockholders' equity. EisnerAmper LLP, in Iselin, New Jersey, issued a "going concern" qualification on the consolidated statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred net losses since inception and has an accumulated deficit at Dec. 31, 2013. These factors among others raise substantial doubt about the ability of the Company to continue as a going concern. STOCKTON, CA: Has Deal with Wells Fargo on Receivership ------------------------------------------------------- The Bankruptcy Court approved a stipulation between the City of Stockton and Wells Fargo Bank, National Association, as indenture Trustee for Stockton Public Financing Authoring Lease Revenue Bonds Series 2004, in relation to Wells Fargo's request for relief from the automatic stay. The stipulation provides that the automatic stay will terminate as to the settlement parties to permit such entity or entities to seek and obtain approval of the stipulated receivership order. The stipulation between the City and Wells Fargo provides that the City will make commercially reasonable efforts to seek appointment of a receiver prior to the Effective Date of its Plan, and any order the parties seek from the California State Court will be conditioned upon the occurrence of the Effective Date of the Plan. Relief from stay thus allows nothing more than putting the issue of appointing a receiver over certain of the City's parking assets before the California State Court and permitting that Court to enter an order contingent on this Court's confirmation of the Plan and the Effective Date of the Plan. In accordance with the terms of the settlement, the City has activated its parking authority to which it will transfer ownership and control of the Leased Parking Facilities and other downtown parking structures and parking assets. Revenues of the Parking Authority's operation of the assets will be pledged to the trustee in support of a new schedule of installment payments to be made by the Parking Authority, which the Trustee will apply towards debt service on the Bonds. The Debtor is represented by: Marc A. Levinson, Esq. Norman C. Hile, Esq. Patrick B. Bocash, Esq. ORRICK, HERRINGTON & SUTCLIFFE LLP 400 Capitol Mall, Suite 3000 Sacramento, CA 95814-4497 Tel: (916) 447-9200 Fax: (916) 329-4900 E-mail: malevinson@orrick.com nhile@orrick.com pbocash@orrick.com About Stockton, Calif. The City of Stockton, California, filed a Chapter 9 petition (Bankr. E.D. Cal. Case No. 12-32118) in Sacramento on June 28, 2012, becoming the largest city to seek creditor protection in U.S. history. The city was forced to file for bankruptcy after talks with bondholders and labor unions failed. Stockton estimated more than $1 billion in assets and in excess of $500 million in liabilities. The city, with a population of about 300,000, identified the California Public Employees Retirement System as the largest unsecured creditor with a claim of $147.5 million for unfunded pension costs. In second place is Wells Fargo Bank NA as trustee for $124.3 million in pension obligation bonds. The list of largest creditors includes $119.2 million owing on four other series of bonds. The city is being represented by Marc A. Levinson, Esq., and John W. Killeen, Esq., at Orrick, Herrington & Sutcliffe LLP. The petition was signed by Robert Deis, city manager. Mr. Levinson also represented the city of Vallejo, Cal. in its 2008 bankruptcy. Vallejo filed for protection under Chapter 9 (Bankr. E.D. Cal. Case No. 08-26813) on May 23, 2008, estimating $500 million to $1 billion in assets and $100 million to $500 million in debts in its petition. In August 2011, Vallejo was given green light to exit the municipal reorganization. The Vallejo Chapter 9 plan restructures $50 million of publicly held debt secured by leases on public buildings. Although the Plan doesn't affect pensions, it adjusts the claims and benefits of current and former city employees. Bankruptcy Judge Michael McManus released Vallejo from bankruptcy on Nov. 1, 2011. The bankruptcy judge on April 1, 2013, ruled that the city of Stockton is eligible for municipal bankruptcy in Chapter 9. The Troubled Company Reporter, on Oct. 31, 2014, reported that Judge Christopher Klein confirmed the debt-adjustment plan by the city of Stockton, California, rejecting arguments that it unfairly discriminated among creditors by chopping a mutual fund's recovery to near zero while shielding city retirees from any impairment at all. * * * The Troubled Company Reporter, on Sep. 26, 2014, reported that Moody's Investors Service has affirmed the long-term ratings of the city of Stockton's (CA) water and sewer enterprises' debts at Ba1. Moody's have also changed the outlook on the city's water bond rating to developing from stable, while the developing outlook on the sewer system's rating remains the same. The TCR, on Nov. 10, 2014, reported that Moody's Investors Service has upgraded to Ba3 from Caa3 the City of Stockton's (CA) series 2006 lease revenue bonds and affirmed the city's 2007 pension obligation at Ca. Moody's have removed the developing outlook from the Series 2006 bonds and Moody's have removed the negative outlook from the Series 2007 bonds. The TCR, on Nov. 14, 2014, reported that Standard & Poor's Ratings Services raised its long-term rating and underlying rating (SPUR) to 'B-' from 'CCC' on the Stockton Public Financing Authority, Calif.'s series 2003A and 2003B certificates of participation (COPs) and its SPUR to 'B-' from 'CCC' on the authority's series 2006A lease revenue refunding bonds. Standard & Poor's also affirmed its 'CC' SPUR on Stockton Redevelopment Agency's series 2004 (arena project) revenue bonds. All series are appropriation obligations of Stockton. The outlook on the series 2003A and 2003B COP long-term rating and SPUR and on the 2006A lease revenue refunding bond SPUR is stable, and the outlook on the series 2004 revenue bond rating (arena project) is negative. SUMMIT STREET: Employs Wolfson Bolton as Counsel ------------------------------------------------ Summit Street Development Company, LLC, seeks authority from the U.S. Bankruptcy Court for the Western District of Michigan to employ Wolfson Bolton PLC as its counsel. It is expected that WB's services will include, without limitation, assisting, advising, and representing Debtor with respect to: (a) Advising Debtor with respect to its powers and duties as debtor and debtor-in-possession in the continued management and operation of its business and property; (b) Administering the case and the exercise of oversight with respect to Debtor's affairs, including all issues arising from or impacting Debtor or the Chapter 11 case; (c) Preparing necessary applications, motions, memoranda, orders, reports, and other legal papers; (d) Appearing in Court and at meetings to represent the interests of Debtor; (e) Negotiating with individual creditors and any creditors' committees appointed in this case; (f) Preparing and prosecuting a Chapter 11 plan of reorganization and disclosure statement; (g) Communicating with creditors; and (h) Performing all other legal services for Debtor in connection with the Chapter 11. Prior to the Petition Date, WB received an initial retainer from Debtor in the amount of $20,000. WB applied the retainer to prepetition fees and expenses, and has placed the remaining amount of the retainer in WB's client trust account. Accordingly, WB has a postpetition retainer for the Chapter 11 case, after deducting all prepetition fees, expenses, and filing costs, in the amount of $15,093. Summit Street filed a bare-bones Chapter 11 bankruptcy petition (Bankr. W.D. Mich. Case No. 14-07339) in Grand Rapids, Michigan, on Nov. 21, 2014. The case is assigned to Judge John T. Gregg. Ryan D. Heilman, Esq., at Wolfson Bolton PLLC, in Troy, Michigan, serves as counsel. Harry H. Hepler, the managing member and holder of 86.699 of the membership interests, signed the petition. SUNRISE REAL ESTATE: Sold 20-Mil. Shares to Ace for $1.7MM ---------------------------------------------------------- Sunrise Real Estate Group, Inc., disclosed that effective on Nov. 27, 2014, the Company closed the Share Purchase Agreement entered on Nov. 10, 2014, and issued 20 million shares to Ace Develop Properties Limited for RMB 10,460,000 (US $1,700,000 equivalent). Ace is wholly-owned by Lin Chi-Jung, the Company's chief executive officer, president and Chairman of the Board. About Sunrise Real Estate Headquartered in Shanghai, the People's Republic of China, Sunrise Real Estate Group, Inc. was initially incorporated in Texas on Oct. 10, 1996, under the name of Parallax Entertainment, Inc. On Dec. 12, 2003, Parallax changed its name to Sunrise Real Estate Development Group, Inc. On April 25, 2006, Sunrise Estate Development Group, Inc., filed Articles of Amendment with the Texas Secretary of State, changing the name of Sunrise Real Estate Development Group, Inc. to Sunrise Real Estate Group, Inc., effective from May 23, 2006. The Company and its subsidiaries are engaged in the property brokerage services, real estate marketing services, property leasing services and property management services in China. Sunrise Real Estate incurred a net loss of US$3.47 million on US$8.52 million of net revenues for the year ended Dec. 31, 2012, as compared with a net loss of US$1.15 million on US$8.97 million of net revenues for the year ended Dec. 31, 2011. The Company's balance sheet at Sept. 30, 2013, showed $60.33 million in total assets, $55.82 million in total liabilities and $4.50 million in total shareholders' equity. Finesse CPA, P.C., in Chicago, Illinois, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has a working capital deficiency, accumulated deficit from recurring net losses for the current and prior years, and significant short-term debt obligations currently in default or maturing in less than one year. These conditions raise substantial doubt about the Company's ability to continue as a going concern. T-L BRYWOOD: Has Access to RCG-KC's Cash Collateral Until Dec. 31 ----------------------------------------------------------------- The Bankruptcy Court authorized T-L Brywood LLC's continued interim use of cash Dec. 31, 2014. A telephonic hearing on further access to cash collateral is scheduled for Dec. 15. As reported in the Troubled Company Reporter on Oct. 13, 2014, the Debtor will use the cash collateral in which RCG-KC Brywood LLC, successor to lender Private Bank and Trust Company, asserts an interest, to properly maintain its property. As adequate protection from any diminution, in value of the lender's collateral, the Debtor will maintain premiums for insurance to cover all of its assets from fire, theft and water damage. The Debtor will also reserve sufficient funds for the payment of current real estate taxes relating to the property commonly known as Brywood Centre. About T-L Brywood T-L Brywood LLC filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 12-09582) on March 12, 2012. The case was transferred to the U.S. Bankruptcy Court for the Northern District of Indiana (Case. 13-21804) on May 14, 2013. T-L Brywood owns and operates a commercial shopping center known as the "Brywood Centre" -- http://www.brywoodcentre.com/-- in Kansas City, Missouri. The Property encompasses roughly 25.6 acres and comprises 183,159 square feet of retail space that is occupied by 12 operating tenants. The occupancy rate for the Property is approximately 80%. The Debtor and lender The PrivateBank and Trust Company reached an impasse over the terms and conditions of another extension of a mortgage loan on the Property. As a result, the Debtor filed the Chapter 11 case to protect the Property from foreclosure while the Debtor formulates an exit strategy from the reorganization case. As of the Petition Date, no foreclosure relating to the Property had been filed by the Lender. Judge Donald R. Cassling oversees the case. The Debtor is represented by David K. Welch, Esq., Arthur G. Simon, Esq., and Jeffrey C. Dan. Esq., at Crane, Heyman, Simon, Welch & Clar, in Chicago. The Debtor disclosed total assets of $16,666,257 and total liabilities of $13,970,622 in its schedules. The petition was signed by Richard Dube, president of Tri-Land Properties, Inc., manager. PrivateBank is represented by William J. Connelly, Esq., at Hinshaw & Culbertson LLP. No committee of creditors was appointed by the U.S. Trustee. TESTA REALTY: Foreclosure Sale Set for December 18 -------------------------------------------------- People's United Bank will sell at public auction on December 18, 2014 at 11:00 a.m., local time all the real premises commonly known as 144 Main Street, Plaistow, Rockingham County, New Hampshire. The property is owned by Testa Realty LLC, based at Audubon Road, Wakefield, Massachusetts 01880. The mortgage was originally held for the benefit of Danversbank, and was later assigned to People's United Bank, as successor by merger to Danversbank. The sale will include all fixtures and personal property associated with the Mortgaged Premises. People's obtained relief from the automatic stay in case #14-11477 on August 14, 2014 in the United States Bankruptcy Court for the District of Massachusetts being a Chapter 7 proceeding filed by Steven D. Testa. To qualify to bid, bidders must place $50,000 to bid on deposit with the attorney for the mortgagee in pre-endorsed certified check, cashier's check or other form of payment acceptable to the Mortgagee or his agent or attorney prior to the commencement of the auction sale. The deposit shall be waived in the case of the Mortgagee. The balance of the purchase price must be paid in full by the highest bidder in cash or by certified check on or before the 30th day after the sale. For further information regarding the Sale or Mortgaged Premises, contact: John L. Allen, Esq. Allen-Fuller, PA 40 Stark Street Manchester, NH 03101 Tel: (603) 666-9966 - or - Office of James R. St Jean Auctioneer Tel: (603) 734-4348 THEOBLOCK SA: Queens Property to Be Sold at Dec. 5 Public Auction ----------------------------------------------------------------- Nora Constance Marino, Esq., at Rosenberg & Estis, P.C., attorney for Theoblock S.A. Ltd., et al., will sell at public auction the property known as No. # 149th Avenue, Queens, New York, at the Queens County Supreme Courthouse, 88-11 Sutphin Blvd., in Courtroom #25 in Jamaica, New York, at 10:00 a.m., on Dec. 5, 2014. The property has an approximate amount of liens of $8,761 plus interest and costs. TREETOPS ACQUISITION: Files for Chapter 11 Bankruptcy Protection ---------------------------------------------------------------- Treetops Acquisition Company, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Mich. Case No. 14-22602) on Nov. 25, 2014, estimating its assets at $1 million to $10 million and its liabilities at $10 million to $50 million. The petition was signed by Richard B. Owens, general manager. The Debtor said that despite an improving operating performance it has been unable to make interest or principal payments on $7 million in long-term debt and still owes back property taxes, David Shepardson at The Detroit News reports. The Debtor's general manager Richard Owens said in a court filing that the resort has suffered substantial operating losses and cash flow deficits, and that the financial problems were due in part to the declining economy (and the golf resort business generally in Michigan) and poor management. Citing Mr. Owens, The Detroit News relates that it is critical the Bankruptcy Court allow the Debtor to secure debtor-in-possession financing "to provide a safety valve against adverse seasonal weather conditions depleting its revenues and to assure the general public that (Treetops) will remain open for business and will expeditiously complete its Chapter 11 reorganization in early 2015." According to the Debtor's court filing, the Debtor plans to operate the resort while it restructures under bankruptcy protection and hopes to exit by early 2015. Daily Journal relates that the Debtor said it expects to be able to continue to be viable once its finances go through the reorganization and that it expects current managers to remain in place. The Detroit News states that Judge Daniel S. Opperman, who presides over the case, has set a Dec. 4, 2014 hearing. Jason W. Bank, Esq., at Kerr, Russell And Weber, PLC, serves as the Debtor's bankruptcy counsel. Headquartered in Gaylord, Michigan, Treetops Acquisition Company, LLC -- dba Treetops Land Company, LLC; Treetops Enterprises, LLC; Treetops; Treetops South Village Property Management; Association, INc.; Treetops Sylvan Resort; Treetops Jones Estates Property Owners Association, Inc.; Treetops Resort; Treetops Holding Company; Treetops Realty, Inc.; Treetops Land Development Company, LLC; Treetops Tradition Condominium Association, Inc.; Treetops North Estates Condominium Association, Inc.; and Sylvan Resort -- owns Treetops Resort and Spa, a northern Michigan golf and ski destination, and features prominent auto industry investors. TROPICANA LAS VEGAS: Incurs $6.24-Mil. Net Loss for Third Quarter ----------------------------------------------------------------- Tropicana Las Vegas Hotel and Casino, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $6.24 million on $26.39 million of net revenues for the three months ended Sept. 30, 2014, compared with a net loss of $5.9 million on $24.73 million of net revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2014, showed $346.7 million in total assets, $88.84 million in total liabilities and total stockholders' equity of $257.85 million. A copy of the Form 10-Q is available at: http://is.gd/0hHoPT Las Vegas-based Tropicana Las Vegas Hotel and Casino, Inc., is a Delaware corporation formed in June 2009 for the primary purpose of owning and operating Tropicana Las Vegas Intermediate Holdings, Inc., and its wholly owned subsidiary Tropicana Las Vegas, Inc. Tropicana Las Vegas offers casino gaming, hotel accommodations, dining, entertainment, retail shopping and other resort amenities. TRUMP ENTERTAINMENT: Donald Trump Wants to Get Back $147K Rent -------------------------------------------------------------- Wayne Parry at The Associated Press reports that Donald Trump is pressing a claim against a division of Trump Entertainment Resorts Inc., et al., seeking to get back more than $147,000 in rent he paid to R&R Associates, the landlord of the driveway leading to the now closed Trump Plaza casino. Mr. Trump said in a court filing that he paid the rent the division owed the landlord "in order to avoid litigation for the moment" and that he "is entitled to be reimbursed by the debtor," Trump Entertainment. 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. The U.S. Trustee for Region 3 on Sept. 23 appointed seven creditors of Trump Entertainment Resorts, Inc., to serve on the official committee of unsecured creditors. The Committee tapped Gibbons P.C. as its co-counsel, the Law Office of Nathan A. Schultz, P.C., as co-counsel, and PricewaterhouseCoopers LLP as its financial advisor. TRUMP ENTERTAINMENT: Taj Mahal May Run Out of Cash Mid-January -------------------------------------------------------------- Wayne Parry at The Associated Press reports that Trump Taj Mahal casino expects to run out of cash by mid-January next year. The AP relates that Trump Entertainment Resorts shuts down Trump Taj Mahal on Dec. 12, 2014, unless its union drops an appeal of a court order that ended workers' health care and pension plans. According to the AP, Trump Entertainment said it expects to burn through all its remaining cash by Jan. 16, 2015, which is a month later than a previous estimate. The report states that Trump Entertainment asked the Bankruptcy Court on Wednesday to approve $5 million in debtor-in-possession financing from Carl Icahn to keep it afloat during the case. 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. The U.S. Trustee for Region 3 on Sept. 23 appointed seven creditors of Trump Entertainment Resorts, Inc., to serve on the official committee of unsecured creditors. The Committee tapped Gibbons P.C. as its co-counsel, the Law Office of Nathan A. Schultz, P.C., as co-counsel, and PricewaterhouseCoopers LLP as its financial advisor. TRUMP ENTERTAINMENT: City to Hold $24MM Tax Sale on Dec. 11 ----------------------------------------------------------- Wayne Parry at The Associated Press reports that the Bankruptcy Court approved on Tuesday an agreement Trump Entertainment Resorts Inc., et al., reached with Atlantic City, which permits the city to hold on Dec. 11, 2014, a tax sale of the $24 million in unpaid taxes the Company owes. According to The AP, the deal explicitly preserves the Company's right to appeal the amount of its unpaid 2014 taxes. 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. The U.S. Trustee for Region 3 on Sept. 23 appointed seven creditors of Trump Entertainment Resorts, Inc., to serve on the official committee of unsecured creditors. The Committee tapped Gibbons P.C. as its co-counsel, the Law Office of Nathan A. Schultz, P.C., as co-counsel, and PricewaterhouseCoopers LLP as its financial advisor. U.S. COAL: JAD Coal Seeks Approval of $2-Mil. Factoring Deal ------------------------------------------------------------ Licking River Resources, Inc., and its affiliates ask the Court for the entry of an order authorizing the JAD Coal Company, Inc., and its affiliates to obtain first-priority, secured postpetition financing in the form $2 million factoring agreement with Porter Capital Corporation. The Debtors also seek to modify the automatic stay to allow Porter and the JAD Debtors to take such actions as necessary to finalize the Factoring Agreement transaction. In the years prior to the commencement of their bankruptcy cases, the Debtors had a $10,000,000 line of credit with the Commercial Bank, but the Debtors have been denied access to that line of credit since early 2014. As part of their overall strategy to reorganize and emerge from bankruptcy, the Debtors have determined in their business judgment that it is necessary to obtain a new line of credit that will assist the Debtors with operating expense needs and working capital. Porter has agreed to provide the JAD Debtors with a factoring agreement whereby Porter would pay the JAD Debtors eighty-five percent to of the value of accounts receivable sold under the Factoring Agreement up to a maximum amount of $2 million. Provided that there were no outstanding chargebacks or disputes, Porter will pay the reserve (i.e. 15%), less any sums due to Porter. The Debtors and Porter have entered into a commitment letter that sets forth the significant terms of the Factoring Agreement. The Commitment Letter specifically requires that the Debtors agree that the automatic stay will be deemed terminated without need for separate motion or order upon the Debtors' default and Porter's tender of Notice of Default to this Court. The Debtors are not aware of any other lender who would be willing to provide the required financing on an unsecured basis, as an administrative expense, or secured only by a junior lien on the Debtors' assets. The salient terms of the Factoring Agreement are: a) Total Dollar Amount Requested: $2,000,000 based on 85% of the accounts receivable sold pursuant to the Factoring Agreement; b) Use of Funds and Proposed Budget: Proceeds of the Factoring Agreement will be used to fund post-Relief Date operating expenses and working capital needs of the Debtor; c) Summary of Line of Credit Terms: The Factoring Agreement will bear interest at a fixed rate of 10.75% per annum. The origination fee for obtaining the Factoring Agreement is 1% of the line amount; d) Superpriority Administrative Expense Claim: Upon Court approval and upon the Debtors' execution of the Factoring Agreement Documents and the issuance of the Factoring Agreement, Porter will be granted a super priority administrative expense claim effective as of the date of the issuance of the Agreement. In light of the Debtors' current financial condition and the pending Chapter 11 cases, the Debtors believe that any sources of comparable credit, obtainable quickly and on reasonable terms, are extraordinarily limited. The Debtors have discussed the proposed Factoring Agreement terms with their financial advisors, who have considered alternative financing arrangements with the Debtors' management. Based on those discussions and considerations, and the knowledge of the Debtors' financial advisors and management with regard to the financial products available to businesses like the Debtors, the Debtors do not believe that they could obtain the requisite debtor-in-possession financing on terms better than those provided by the Factoring Agreement. Importantly, the Debtors contacted approximately a dozen potential financing sources of which only approximately six expressed even an initial interest. Of those six, only three (including Porter) provided a term sheet. All of the economic terms in Commitment Letter were better than those proposed in the competing term sheets. Against this background, the Debtors believe in their business judgment that they have made a good faith effort to obtain credit on an unsecured basis or secured only by a junior lien on their assets, but they were unable to do so under the circumstances. About U.S. Coal and Licking River On May 22, 2014, an involuntary Chapter 11 petition was filed against Licking River Mining, LLC, before the United States Bankruptcy Court for the Eastern District of Kentucky. On May 23, 2014, an involuntary Chapter 11 petition was filed against Licking River Resources, Inc. and Fox Knob Coal., Inc. On June 3, 2014, an involuntary Chapter 11 petition was filed against S.M. & J., Inc. On June 4, 2014, an involuntary Chapter 11 petition was filed against J.A.D. Coal Company, Inc. On June 12, 2014, the Court entered an order for relief in each of the bankruptcy cases. On June 10, 2014, an involuntary Chapter 11 petition was filed against U.S. Coal Corporation. On June 27, 2014, the Court entered an order for relief in U.S. Coal's bankruptcy case. On Nov. 4, 2014, Harlan County Mining, LLC, Oak Hill Coal, Inc., Sandlick Coal Company, LLC, and U.S. Coal Marketing, LLC, filed petitions in the United States Bankruptcy Court for the Eastern District of Kentucky seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Chief Judge Tracey N. Wise. The Debtors are seeking to have their cases jointly administered for procedural purposes, meaning that upon entry of such an order all pleadings will be maintained on the case docket for Licking River Mining, LLC, Case No. 14-10201. U.S. Coal produces and sells thermal coal purchased primarily by utilities and trading companies and specialty coal purchased by various industrial customers and trading companies (known as "stoker" coal). U.S. Coal operates through two divisions: (1) the Licking River Division that was formed through the acquisition of LR Mining, LRR, and S.M. & J., and Oak Hill Coal, Inc. in January 2007 for $33 million., and (2) the J.A.D. Division that was formed through the acquisition of JAD and Fox Knob, and Sandlick Coal Company, LLC and Harlan County Mining, LLC in April 2008 for $41 million. Both the LRR Division and the JAD Division are located in the Central Appalachia region of eastern Kentucky. The LRR Division has approximately 26.3 million tons of surface reserves under lease. The JAD Division has 24.4 million tons of surface reserves, both leased and owned real property. At present, U.S. Coal has three surface mines in operation between the LRR Division and JAD Division. The Official Committee of Unsecured Creditors has tapped Barber Law PLLC and Foley & Lardner as attorneys. U.S. COAL: Extends Cash Collateral Order to Additional Debtors -------------------------------------------------------------- U.S. Bankruptcy Judge Tracey N. Wise has order the extension of the effect of the Final Cash Collateral Order to the Additional Debtors, as if the Additional Debtors were debtors in these cases as of the date of that Final Cash Collateral Order. The Debtors, including the Additional Debtors, are authorized, to use Cash Collateral during the period from the Relief Dates through and including the Termination Date (as defined in the Final Cash Collateral Order) solely in accordance with the express provisions of such order and in accordance with the Budgets (as defined in the Final Cash Collateral Order). As reported in the Troubled Company Reporter on Nov. 6, 2014, Harlan County Mining, LLC, Oak Hill Coal, Inc., Sandlick Coal Company, LLC, and U.S. Coal Marketing, LLC (collectively, the "Additional Debtors"), and the other jointly-administered debtors ask the Bankruptcy Court to authorize the Additional Debtors' use of cash collateral. The Bankruptcy Court in September entered a final order authorizing Licking River Resources, Inc., Licking River Mining, LLC, S. M. & J., Inc., J.A.D. Coal Company, Inc., Fox Knob Coal Co., Inc., and U.S. Coal Corporation, to use cash collateral. The additional Debtors possess certain assets critical to the Debtors' reorganization and to the maximization of return for estate constituents. Similarly, the Additional Debtors share certain liabilities with the Debtors, and efficient administration of the estates argues in favor of the Additional Debtors' use of cash collateral under the terms of the Final Cash Collateral Order. Each of the Additional Debtors is wholly owned by U.S. Coal. All outstanding stock or other ownership interest in each of the Additional Debtors is property of U.S. Coal's estate under 11 U.S.C. Section 541. The Additional Debtors hold certain assets of significant value to the Debtors' estates. For example, Sandlick is the lawful holder of most if not all of the mining permits pursuant to which JAD and Fox Knob operate their coal mines. Sandlick exists specifically for this purpose and does not actually use the mines itself. If Sandlick loses its permits, those Debtors cannot continue their mining operations. About U.S. Coal and Licking River On May 22, 2014, an involuntary Chapter 11 petition was filed against Licking River Mining, LLC, before the United States Bankruptcy Court for the Eastern District of Kentucky. On May 23, 2014, an involuntary Chapter 11 petition was filed against Licking River Resources, Inc. and Fox Knob Coal., Inc. On June 3, 2014, an involuntary Chapter 11 petition was filed against S.M. & J., Inc. On June 4, 2014, an involuntary Chapter 11 petition was filed against J.A.D. Coal Company, Inc. On June 12, 2014, the Court entered an order for relief in each of the bankruptcy cases. On June 10, 2014, an involuntary Chapter 11 petition was filed against U.S. Coal Corporation. On June 27, 2014, the Court entered an order for relief in U.S. Coal's bankruptcy case. On Nov. 4, 2014, Harlan County Mining, LLC, Oak Hill Coal, Inc., Sandlick Coal Company, LLC, and U.S. Coal Marketing, LLC, filed petitions in the United States Bankruptcy Court for the Eastern District of Kentucky seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Chief Judge Tracey N. Wise. The Debtors are seeking to have their cases jointly administered for procedural purposes, meaning that upon entry of such an order all pleadings will be maintained on the case docket for Licking River Mining, LLC, Case No. 14-10201. U.S. Coal produces and sells thermal coal purchased primarily by utilities and trading companies and specialty coal purchased by various industrial customers and trading companies (known as "stoker" coal). U.S. Coal operates through two divisions: (1) the Licking River Division that was formed through the acquisition of LR Mining, LRR, and S.M. & J., and Oak Hill Coal, Inc. in January 2007 for $33 million., and (2) the J.A.D. Division that was formed through the acquisition of JAD and Fox Knob, and Sandlick Coal Company, LLC and Harlan County Mining, LLC in April 2008 for $41 million. Both the LRR Division and the JAD Division are located in the Central Appalachia region of eastern Kentucky. The LRR Division has approximately 26.3 million tons of surface reserves under lease. The JAD Division has 24.4 million tons of surface reserves, both leased and owned real property. At present, U.S. Coal has three surface mines in operation between the LRR Division and JAD Division. The Official Committee of Unsecured Creditors has tapped Barber Law PLLC and Foley & Lardner as attorneys. U.S. COAL: Affiliates Get Court Approval to Have Same Advisers -------------------------------------------------------------- A federal judge has authorized affiliates of U.S. Coal Corp. that recently filed for Chapter 11 protection to hire John Brogan and three U.S. firms as advisers in connection with their bankruptcy cases. Judge Tracey Wise of U.S. Bankruptcy Court for the Eastern District of Kentucky issued separate interim orders authorizing four affiliates of U.S. Coal to hire Mr. Brogan as tax consultant, DelCotto Law Group PLLC as general local counsel, Nixon Peabody as bankruptcy counsel, and GlassRatner Advisory & Capital Group as financial adviser. The four U.S. Coal affiliates are Harlan County Mining LLC, Oak Hill Coal Inc., Sandlick Coal Company LLC, and U.S. Coal Marketing LLC. The companies, which filed their own Chapter 11 cases on Nov. 4, are seeking to have their cases jointly administered. Any objections to the interim orders will be noticed for hearing on Dec. 17. If no objection is filed, the interim orders will become final orders. About U.S. Coal and Licking River On May 22, 2014, an involuntary Chapter 11 petition was filed against Licking River Mining, LLC, before the United States Bankruptcy Court for the Eastern District of Kentucky. On May 23, 2014, an involuntary Chapter 11 petition was filed against Licking River Resources, Inc. and Fox Knob Coal., Inc. On June 3, 2014, an involuntary Chapter 11 petition was filed against S.M. & J., Inc. On June 4, 2014, an involuntary Chapter 11 petition was filed against J.A.D. Coal Company, Inc. On June 12, 2014, the Court entered an order for relief in each of the bankruptcy cases. On June 10, 2014, an involuntary Chapter 11 petition was filed against U.S. Coal Corporation. On June 27, 2014, the Court entered an order for relief in U.S. Coal's bankruptcy case. On Nov. 4, 2014, Harlan County Mining, LLC, Oak Hill Coal, Inc., Sandlick Coal Company, LLC, and U.S. Coal Marketing, LLC, filed petitions in the United States Bankruptcy Court for the Eastern District of Kentucky seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Chief Judge Tracey N. Wise. The Debtors are seeking to have their cases jointly administered for procedural purposes, meaning that upon entry of such an order all pleadings will be maintained on the case docket for Licking River Mining, LLC, Case No. 14-10201. U.S. Coal produces and sells thermal coal purchased primarily by utilities and trading companies and specialty coal purchased by various industrial customers and trading companies (known as "stoker" coal). U.S. Coal operates through two divisions: (1) the Licking River Division that was formed through the acquisition of LR Mining, LRR, and S.M. & J., and Oak Hill Coal, Inc. in January 2007 for $33 million., and (2) the J.A.D. Division that was formed through the acquisition of JAD and Fox Knob, and Sandlick Coal Company, LLC and Harlan County Mining, LLC in April 2008 for $41 million. Both the LRR Division and the JAD Division are located in the Central Appalachia region of eastern Kentucky. The LRR Division has approximately 26.3 million tons of surface reserves under lease. The JAD Division has 24.4 million tons of surface reserves, both leased and owned real property. At present, U.S. Coal has three surface mines in operation between the LRR Division and JAD Division. The Official Committee of Unsecured Creditors has tapped Barber Law PLLC and Foley & Lardner as attorneys. VIGGLE INC: SIC III Buys 3,000 Preferred shares for $3 Million -------------------------------------------------------------- Viggle Inc. and Sillerman Investment Company III LLC entered into a Securities Purchase Agreement pursuant to which SIC III agreed to purchase certain securities issued by Viggle, according to an Oct. 27, 2014 regulatory filing by Viggle. Pursuant to the Securities Purchase Agreement, SIC III agreed to purchase, among other securities, 10,000 shares of Series C Convertible Preferred Stock for $1,000 per share. In addition, pursuant to the terms of the Securities Purchase Agreement, the Company also agreed to issue to SIC III warrants to purchase 50,000 shares of the Company's common stock for each $1,000,000 of Series C Preferred Stock purchased by SIC III. The Securities Purchase Agreement provides that the exercise price of the warrants will be 10% above the closing price of the Company's shares on the date prior to the issuance of the warrants. Exercise of the warrants will be subject to approval of the Company's stockholders. On Nov. 25, 2014, SIC III purchased 3,000 shares of Series C Convertible Preferred Stock for $3,000,000. In addition, in accordance with the Securities Purchase Agreement, the Company also issued to SIC III warrants to purchase 150,000 shares of the Company's Common Stock at an exercise price of $2.98, which is 10% above the closing price of the Company's shares on the date prior to issuance. Exercise of these warrants will be subject to approval of the Company's stockholders. Because the transactions described in the foregoing sections were between the Company and Robert F.X. Sillerman or an affiliate of Robert F.X. Sillerman, who is the executive chairman and chief executive officer of the Company, the Company formed a special committee of independent directors to review the proposed transactions. That special committee reviewed and unanimously approved those transactions. About Viggle New York City-based Viggle Inc. is a loyalty marketing company. The Company has developed a loyalty program for television that gives people real rewards for checking into the television shows they are watching on most mobile operating system. Viggle users can redeem their points in the app's rewards catalog for items such as movie tickets, music, or gift cards. Viggle reported a net loss of $68.4 million on $18.0 million of revenues for the year ended June 30, 2014, compared with a net loss of $91.4 million on $13.9 million of revenues for the year ended June 30, 2013. BDO USA, LLP, in New York, 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 suffered recurring losses from operations and at June 30, 2014, has a deficiency in working capital that raises substantial doubt about its ability to continue as a going concern. WEST TEXAS GUAR: Judge Approves Rejection of Toyota Motor Lease --------------------------------------------------------------- A federal judge has authorized West Texas Guar Inc. to reject a lease with Toyota Motor Credit Corp. for a 2014 Toyota Tundra vehicle. U.S. Bankruptcy Judge Robert Jones signed off on an order, which allowed West Texas Guar to reject the lease, and Toyota Motor to repossess the vehicle. The bankruptcy judge also allowed Toyota Motor to get all writs and other court orders necessary to repossess the vehicle in the event West Texas Guar does not voluntarily surrender it to the company. Any claim resulting from the rejection of the lease must be filed with the court within 90 days after Nov. 19, according to Judge Jones' order. Toyota Motor is represented by: Stephen G. Wilcox, Esq. Clare Russell, Esq. WILCOX LAW PLLC P.O. Box 11509 Fort Worth, Texas 76110-0509 Phone: (817) 870-1694 Fax: (817) 870-1181 E-mail: swilcox@wilcoxlaw.net About West Texas Guar Representatives of 24 farms filed an involuntary Chapter 11 bankruptcy petition (Bankr. N.D. Tex. Case No. 14-50056) on March 14, 2014, against West Texas Guar Inc. The farmers claim they are owed nearly $4 million for seed they've delivered on the 2013 harvest but haven't been paid for. Guar is a seed crop that has a variety of uses in human and animal food production, textiles and fracking for oil and gas wells. Judge Robert L. Jones oversees the case. The farmers are represented by R. Byrn Bass, Jr., Esq., Attorney at Law. WTG is represented by Samuel M. Stricklin, Esq., Tricia R. DeLeon, Esq., and Lauren C. Kessler, Esq., at Bracewell & Giuliani LLP, in Dallas, Texas. The Debtor disclosed in amended schedules $19,226,923 in assets and $29,331,352 in liabilities as of the Chapter 11 filing. * DC Circ. Urged to Revive Challenges to Dodd-Frank, CFPB --------------------------------------------------------- Law360 reported that a group of 11 states and several private plaintiffs urged the D.C. Circuit to revive their constitutional challenge to the Consumer Financial Protection Bureau and aspects of the Dodd-Frank Act, including its orderly liquidation process, arguing they had suffered concrete injuries that gave them standing to sue. According to the report, at oral argument, O'Melveny & Myers LLP attorney Gregory Jacob, Esq. -- gjacob@omm.com -- representing private plaintiffs State National Bank of Big Spring, Texas, the Competitive Enterprise Institute and the 60 Plus Association -- said that the bank had incurred unfair costs from having to comply with rules imposed by the allegedly unconstitutional CFPB, supporting its standing to sue. The cases are State National Bank of Big Spring, Texas et al. v. Lew et al., case number 13-5248; and Morgan Drexen Inc. v. CFPB, case number 13-5342, both in the U.S. Court of Appeals for the District of Columbia Circuit. * Dangers Lurk for Investors in Health Care Turnarounds ------------------------------------------------------- Law360 reported that midmarket health care providers, under pressure from Affordable Care Act changes to federal reimbursement practices, are expected to increasingly seek bankruptcy protection, where the power of regulators to dictate restructuring terms and block asset sales creates unique risks for investors, attorneys say. According to the report, the number of commercial bankruptcies has been dropping steadily for some time now, but bankruptcy professionals are expecting Chapter 11 filings to jump over the next few years among distressed hospitals, integrated systems and other providers that need to restructure their operations or find strategic buyers. * Liner Picks Up 2 Bankruptcy Pros From Steptoe & Johnson --------------------------------------------------------- Law360 reported that Liner LLP has hired two bankruptcy experts -- Robbin Itkin and Kelly Frazier -- away from Steptoe & Johnson LLP, one of whom will be Liner's new business solutions and financial restructuring group chair in Los Angeles. According to the report, Ms. and Frazier were with Steptoe for seven years, and before that they practiced together at Kirkland & Ellis LLP. Itkin, former head of Steptoe's business and financial restructuring group, will head the equivalent group at Liner, the report said. Ms. Itkin may be reached at: Robbin L. Itkin LINER LLP 1100 Glendon Avenue, 14th Floor Los Angeles, CA 90024-3518 Tel: (310) 500-3390 E-mail: ritkin@linerlaw.com Ms. Frazier may be reached at: Kelly K. Frazier LINER LLP 1100 Glendon Avenue, 14th Floor Los Angeles, CA 90024-3518 Tel: (310) 500-3550 E-mail: kfrazier@linerlaw.com * Robert Gerber to Retire from Southern District Bankruptcy Bench ----------------------------------------------------------------- Sherri Toub, a bankruptcy columnist for Bloomberg News, reported that U.S. Bankruptcy Judge Robert E. Gerber, on the bench in the Southern District of New York since 2000, will retire at year's end. According to the report, Judge Gerber, who presided over high-profile bankruptcy cases including General Motors, Global Crossing and Adelphia Communications, has been approved by the Second Circuit Judicial Council for extended service as a recall judge for a year starting on Jan. 1. * Large Companies With Insolvent Balance Sheet ---------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- 6D GLOBAL TECHNO SIXD US - (15.1) (15.1) ABSOLUTE SOFTWRE ABT CN 138.4 (12.0) 2.2 ABSOLUTE SOFTWRE ABT2EUR EU 138.4 (12.0) 2.2 ABSOLUTE SOFTWRE ALSWF US 138.4 (12.0) 2.2 ABSOLUTE SOFTWRE OU1 GR 138.4 (12.0) 2.2 ADVANCED EMISSIO OXQ1 GR 106.4 (46.1) (15.3) ADVANCED EMISSIO ADES US 106.4 (46.1) (15.3) ADVENT SOFTWARE ADVS US 432.9 (76.3) (106.9) ADVENT SOFTWARE AXQ GR 432.9 (76.3) (106.9) AIR CANADA ACEUR EU 10,545.0 (1,400.0) 164.0 AIR CANADA AIDEF US 10,545.0 (1,400.0) 164.0 AIR CANADA ADH2 GR 10,545.0 (1,400.0) 164.0 AIR CANADA ACDVF US 10,545.0 (1,400.0) 164.0 AIR CANADA AC CN 10,545.0 (1,400.0) 164.0 AIR CANADA ADH2 TH 10,545.0 (1,400.0) 164.0 AIR CANADA-CL A ADH TH 10,545.0 (1,400.0) 164.0 AIR CANADA-CL A ADH GR 10,545.0 (1,400.0) 164.0 AIR CANADA-CL A AC/A CN 10,545.0 (1,400.0) 164.0 AIR CANADA-CL A AIDIF US 10,545.0 (1,400.0) 164.0 AIR CANADA-CL B ADH1 GR 10,545.0 (1,400.0) 164.0 AIR CANADA-CL B ADH1 TH 10,545.0 (1,400.0) 164.0 ALLIANCE HEALTHC AIQ US 473.5 (127.3) 62.8 AMC NETWORKS-A AMCX* MM 3,663.3 (388.0) 659.4 AMC NETWORKS-A 9AC GR 3,663.3 (388.0) 659.4 AMC NETWORKS-A AMCX US 3,663.3 (388.0) 659.4 AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2) AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 ANGIE'S LIST INC 8AL TH 161.0 (39.4) (22.7) ANGIE'S LIST INC 8AL GR 161.0 (39.4) (22.7) ANGIE'S LIST INC ANGI US 161.0 (39.4) (22.7) ARRAY BIOPHARMA AR2 GR 135.3 (37.6) 66.2 ARRAY BIOPHARMA ARRY US 135.3 (37.6) 66.2 ARRAY BIOPHARMA AR2 TH 135.3 (37.6) 66.2 AUTOZONE INC AZO US 7,517.9 (1,621.9) (960.5) AUTOZONE INC AZOEUR EU 7,517.9 (1,621.9) (960.5) AUTOZONE INC AZ5 TH 7,517.9 (1,621.9) (960.5) AUTOZONE INC AZ5 GR 7,517.9 (1,621.9) (960.5) AVALANCHE BIOTEC AAVL US 167.2 155.7 161.9 AVALANCHE BIOTEC AVU GR 167.2 155.7 161.9 AVID TECHNOLOGY AVID US 197.2 (341.2) (173.2) BENEFITFOCUS INC BTF GR 131.7 (31.2) 34.2 BENEFITFOCUS INC BNFT US 131.7 (31.2) 34.2 BERRY PLASTICS G BP0 GR 5,268.0 (101.0) 665.0 BERRY PLASTICS G BERY US 5,268.0 (101.0) 665.0 BRP INC/CA-SUB V BRPIF US 1,895.9 (44.8) 133.6 BRP INC/CA-SUB V B15A GR 1,895.9 (44.8) 133.6 BRP INC/CA-SUB V DOO CN 1,895.9 (44.8) 133.6 BURLINGTON STORE BUI GR 2,555.3 (140.1) 102.3 BURLINGTON STORE BURL US 2,555.3 (140.1) 102.3 CABLEVISION SY-A CVY GR 6,563.7 (5,068.0) 158.9 CABLEVISION SY-A CVC US 6,563.7 (5,068.0) 158.9 CABLEVISION-W/I 8441293Q US 6,563.7 (5,068.0) 158.9 CABLEVISION-W/I CVC-W US 6,563.7 (5,068.0) 158.9 CADIZ INC 2ZC GR 56.0 (49.7) 3.0 CADIZ INC CDZI US 56.0 (49.7) 3.0 CAESARS ENTERTAI C08 GR 24,491.5 (3,714.4) 1,363.3 CAESARS ENTERTAI CZR US 24,491.5 (3,714.4) 1,363.3 CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CASELLA WASTE CWST US 656.6 (7.6) (11.6) CATALENT INC CTLT US 3,090.2 (367.3) 234.5 CATALENT INC 0C8 GR 3,090.2 (367.3) 234.5 CATALENT INC 0C8 TH 3,090.2 (367.3) 234.5 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CHOICE HOTELS CHH US 664.2 (397.0) 206.0 CHOICE HOTELS CZH GR 664.2 (397.0) 206.0 CIENA CORP CIE1 GR 2,100.4 (45.2) 889.3 CIENA CORP CIEN US 2,100.4 (45.2) 889.3 CIENA CORP CIE1 TH 2,100.4 (45.2) 889.3 CIENA CORP CIEN TE 2,100.4 (45.2) 889.3 CINCINNATI BELL CBB US 1,952.6 (584.4) 50.1 CIVITAS SOLUTION 1CI GR 1,031.5 (62.0) 66.1 CIVITAS SOLUTION CIVI US 1,031.5 (62.0) 66.1 CLEAR CHANNEL-A C7C GR 6,383.9 (132.6) 376.9 CLEAR CHANNEL-A CCO US 6,383.9 (132.6) 376.9 CLIFFS NATURAL R CVA TH 4,811.2 (177.3) 242.3 CLIFFS NATURAL R CLF US 4,811.2 (177.3) 242.3 CLIFFS NATURAL R CVA GR 4,811.2 (177.3) 242.3 CLIFFS NATURAL R CLF* MM 4,811.2 (177.3) 242.3 CORCEPT THERA CORT US 37.2 (1.3) 19.9 CORINDUS VASCULA CVRS US 0.0 (0.0) (0.0) CVSL INC CVSL US 66.0 (4.7) 2.8 DEX MEDIA INC DXM US 1,898.0 (918.0) 133.0 DIPLOMAT PHARMAC 7DP TH 338.9 30.1 (43.4) DIPLOMAT PHARMAC DPLO US 338.9 30.1 (43.4) DIPLOMAT PHARMAC 7DP GR 338.9 30.1 (43.4) DIRECTV DTV US 22,594.0 (5,557.0) 43.0 DIRECTV DTV CI 22,594.0 (5,557.0) 43.0 DIRECTV DTVEUR EU 22,594.0 (5,557.0) 43.0 DIRECTV DIG1 GR 22,594.0 (5,557.0) 43.0 DOMINO'S PIZZA DPZ US 510.9 (1,281.7) 112.9 DOMINO'S PIZZA EZV GR 510.9 (1,281.7) 112.9 DOMINO'S PIZZA EZV TH 510.9 (1,281.7) 112.9 DOMINO'S PIZZA EZV QT 510.9 (1,281.7) 112.9 DUN & BRADSTREET DNB US 1,789.2 (1,083.4) (0.3) DUN & BRADSTREET DB5 TH 1,789.2 (1,083.4) (0.3) DUN & BRADSTREET DB5 GR 1,789.2 (1,083.4) (0.3) DURATA THERAPEUT DRTX US 82.1 (16.1) 11.7 DURATA THERAPEUT DRTXEUR EU 82.1 (16.1) 11.7 DURATA THERAPEUT DTA GR 82.1 (16.1) 11.7 EDGEN GROUP INC EDG US 883.8 (0.8) 409.2 EMPIRE RESORTS I LHC1 GR 42.4 (14.3) (9.9) EMPIRE RESORTS I NYNY US 42.4 (14.3) (9.9) EOS PETRO INC EOPT US 1.3 (28.4) (29.5) EXTENDICARE INC EXE CN 1,885.0 (7.2) 77.0 EXTENDICARE INC EXETF US 1,885.0 (7.2) 77.0 FAIRPOINT COMMUN FRP US 1,488.5 (395.7) 9.4 FAIRPOINT COMMUN FONN GR 1,488.5 (395.7) 9.4 FAIRWAY GROUP HO FWM US 371.8 (8.6) 19.9 FERRELLGAS-LP FGP US 1,572.3 (111.6) 9.9 FERRELLGAS-LP FEG GR 1,572.3 (111.6) 9.9 FMSA HOLDINGS IN FMSAEUR EU 1,447.5 (21.7) 271.3 FMSA HOLDINGS IN FM1 GR 1,447.5 (21.7) 271.3 FMSA HOLDINGS IN FMSA US 1,447.5 (21.7) 271.3 FMSA HOLDINGS IN FM1 TH 1,447.5 (21.7) 271.3 FREESCALE SEMICO FSL US 3,306.0 (3,593.0) 1,333.0 FREESCALE SEMICO 1FS TH 3,306.0 (3,593.0) 1,333.0 FREESCALE SEMICO 1FS GR 3,306.0 (3,593.0) 1,333.0 FRESHPET INC FRPTEUR EU 74.5 (34.2) 1.2 FRESHPET INC 7FP GR 74.5 (34.2) 1.2 FRESHPET INC FRPT US 74.5 (34.2) 1.2 GAMING AND LEISU 2GL GR 2,595.4 (77.9) (44.2) GAMING AND LEISU GLPI US 2,595.4 (77.9) (44.2) GARDA WRLD -CL A GW CN 1,469.2 (59.0) 205.0 GENCORP INC GY US 1,749.7 (48.5) 70.2 GENCORP INC GCY GR 1,749.7 (48.5) 70.2 GENCORP INC GCY TH 1,749.7 (48.5) 70.2 GENTIVA HEALTH GHT GR 1,225.2 (285.2) 130.0 GENTIVA HEALTH GTIV US 1,225.2 (285.2) 130.0 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GOLD RESERVE INC GDRZF US 28.0 (10.5) 4.9 GOLD RESERVE INC GRZ CN 28.0 (10.5) 4.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 HCA HOLDINGS INC 2BH GR 29,825.0 (6,018.0) 2,895.0 HCA HOLDINGS INC 2BH TH 29,825.0 (6,018.0) 2,895.0 HCA HOLDINGS INC HCA US 29,825.0 (6,018.0) 2,895.0 HD SUPPLY HOLDIN 5HD GR 6,714.0 (701.0) 1,438.0 HD SUPPLY HOLDIN HDS US 6,714.0 (701.0) 1,438.0 HERBALIFE LTD HLF US 2,364.5 (420.6) 508.8 HERBALIFE LTD HOO GR 2,364.5 (420.6) 508.8 HERBALIFE LTD HLFEUR EU 2,364.5 (420.6) 508.8 HOVNANIAN ENT-A HOV US 1,893.7 (443.1) 1,107.3 HOVNANIAN ENT-A HO3 GR 1,893.7 (443.1) 1,107.3 HOVNANIAN ENT-B HOVVB US 1,893.7 (443.1) 1,107.3 HOVNANIAN-A-WI HOV-W US 1,893.7 (443.1) 1,107.3 HUBSPOT INC HUBS US 52.1 (5.3) (22.1) HUBSPOT INC 096 GR 52.1 (5.3) (22.1) HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) IHEARTMEDIA INC IHRT US 14,752.2 (9,315.2) 1,225.6 INCYTE CORP INCY US 785.3 (89.6) 538.0 INCYTE CORP ICY TH 785.3 (89.6) 538.0 INCYTE CORP ICY GR 785.3 (89.6) 538.0 INFOR US INC LWSN US 6,778.1 (460.0) (305.9) INTERCORE INC ICOR US 0.4 (1.7) (1.7) IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU 1JE GR 1,570.4 (311.6) 159.7 JUST ENERGY GROU JE US 1,570.4 (311.6) 159.7 JUST ENERGY GROU JE CN 1,570.4 (311.6) 159.7 L BRANDS INC LB US 6,870.0 (503.0) 1,119.0 L BRANDS INC LTD GR 6,870.0 (503.0) 1,119.0 L BRANDS INC LTD TH 6,870.0 (503.0) 1,119.0 LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9 LEE ENTERPRISES LEE US 828.2 (165.0) (26.0) LORILLARD INC LLV TH 3,275.0 (2,155.0) 918.0 LORILLARD INC LO US 3,275.0 (2,155.0) 918.0 LORILLARD INC LLV GR 3,275.0 (2,155.0) 918.0 MANNKIND CORP NNF1 TH 386.8 (40.7) (100.3) MANNKIND CORP NNF1 GR 386.8 (40.7) (100.3) MANNKIND CORP MNKD US 386.8 (40.7) (100.3) MARRIOTT INTL-A MAR US 6,847.0 (1,842.0) (1,186.0) MARRIOTT INTL-A MAQ TH 6,847.0 (1,842.0) (1,186.0) MARRIOTT INTL-A MAQ GR 6,847.0 (1,842.0) (1,186.0) MDC COMM-W/I MDZ/W CN 1,707.3 (86.7) (256.5) MDC PARTNERS-A MDZ/A CN 1,707.3 (86.7) (256.5) MDC PARTNERS-A MDCA US 1,707.3 (86.7) (256.5) MDC PARTNERS-A MD7A GR 1,707.3 (86.7) (256.5) MDC PARTNERS-EXC MDZ/N CN 1,707.3 (86.7) (256.5) MERITOR INC MTOR US 2,502.0 (585.0) 254.0 MERITOR INC AID1 GR 2,502.0 (585.0) 254.0 MERRIMACK PHARMA MP6 GR 188.6 (99.9) 40.9 MERRIMACK PHARMA MACK US 188.6 (99.9) 40.9 MICHAELS COS INC MIK US 1,716.0 (2,734.0) 493.0 MICHAELS COS INC MIM GR 1,716.0 (2,734.0) 493.0 MONEYGRAM INTERN MGI US 4,600.2 (157.2) 87.1 MORGANS HOTEL GR M1U GR 632.3 (221.3) 89.3 MORGANS HOTEL GR MHGC US 632.3 (221.3) 89.3 MOXIAN CHINA INC MOXC US 4.9 (1.2) (4.0) MPG OFFICE TRUST 1052394D US 1,280.0 (437.3) - NATIONAL CINEMED NCMI US 993.6 (200.2) 51.8 NATIONAL CINEMED XWM GR 993.6 (200.2) 51.8 NAVISTAR INTL IHR TH 7,702.0 (4,046.0) 1,126.0 NAVISTAR INTL NAV US 7,702.0 (4,046.0) 1,126.0 NAVISTAR INTL IHR GR 7,702.0 (4,046.0) 1,126.0 NEFF CORP-CL A NEFF US 612.1 (343.7) (1.5) NORTHWEST BIO NBYA GR 29.4 (31.2) (41.7) NORTHWEST BIO NWBO US 29.4 (31.2) (41.7) OMEROS CORP 3O8 GR 25.3 (26.6) 9.0 OMEROS CORP OMER US 25.3 (26.6) 9.0 OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) PALM INC PALM US 1,007.2 (6.2) 141.7 PBF LOGISTICS LP 11P GR 360.0 (47.3) 15.6 PBF LOGISTICS LP PBFX US 360.0 (47.3) 15.6 PHILIP MORRIS IN 4I1 TH 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM US 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN 4I1 GR 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM FP 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM1EUR EU 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM1 TE 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PMI SW 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN 4I1 QT 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM1CHF EU 35,401.0 (8,677.0) (356.0) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLY GEM HOLDINGS PG6 GR 1,304.9 (73.5) 238.9 PLY GEM HOLDINGS PGEM US 1,304.9 (73.5) 238.9 PROTALEX INC PRTX US 0.8 (9.1) 0.4 PROTECTION ONE PONE US 562.9 (61.8) (7.6) PROTEON THERAPEU PRTO US 24.2 9.6 19.3 QUALITY DISTRIBU QDZ GR 439.6 (30.4) 105.2 QUALITY DISTRIBU QLTY US 439.6 (30.4) 105.2 QUINTILES TRANSN Q US 3,106.7 (536.2) 511.8 QUINTILES TRANSN QTS GR 3,106.7 (536.2) 511.8 RAYONIER ADV RYAM US 1,246.3 (13.4) 167.3 RAYONIER ADV RYQ GR 1,246.3 (13.4) 167.3 REGAL ENTERTAI-A RGC* MM 2,553.5 (755.1) 6.5 REGAL ENTERTAI-A RGC US 2,553.5 (755.1) 6.5 REGAL ENTERTAI-A RETA GR 2,553.5 (755.1) 6.5 RELMADA THERAPEU RLMD US 0.0 (0.0) (0.0) RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTPATH INC PRM US 208.0 (91.7) 3.6 RETROPHIN INC 17R GR 145.9 (10.2) (3.7) RETROPHIN INC RTRX US 145.9 (10.2) (3.7) REVLON INC-A REV US 1,912.6 (570.6) 300.9 REVLON INC-A RVL1 GR 1,912.6 (570.6) 300.9 RITE AID CORP RTA GR 6,959.3 (1,906.5) 1,783.1 RITE AID CORP RAD US 6,959.3 (1,906.5) 1,783.1 RITE AID CORP RTA TH 6,959.3 (1,906.5) 1,783.1 ROCKWELL MEDICAL RWM TH 23.9 (5.5) 2.6 ROCKWELL MEDICAL RMTI US 23.9 (5.5) 2.6 ROCKWELL MEDICAL RWM GR 23.9 (5.5) 2.6 ROUNDY'S INC 4R1 GR 1,089.7 (66.8) 71.8 ROUNDY'S INC RNDY US 1,089.7 (66.8) 71.8 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 RYERSON HOLDING 7RY TH 2,001.1 (108.5) 734.8 RYERSON HOLDING RYI US 2,001.1 (108.5) 734.8 RYERSON HOLDING 7RY GR 2,001.1 (108.5) 734.8 SALLY BEAUTY HOL SBH US 2,030.0 (347.1) 640.6 SALLY BEAUTY HOL S7V GR 2,030.0 (347.1) 640.6 SBA COMM CORP-A SBJ TH 7,809.0 (297.6) (671.8) SBA COMM CORP-A SBJ GR 7,809.0 (297.6) (671.8) SBA COMM CORP-A SBAC US 7,809.0 (297.6) (671.8) SECOND SIGHT MED EYES US 9.6 (19.5) 4.4 SEQUENOM INC SQNM US 134.6 (51.9) 36.5 SILVER SPRING NE SSNI US 552.9 (139.0) 82.8 SILVER SPRING NE 9SI TH 552.9 (139.0) 82.8 SILVER SPRING NE 9SI GR 552.9 (139.0) 82.8 SIRIUS XM CANADA SIICF US 329.4 (87.2) (161.7) SIRIUS XM CANADA XSR CN 329.4 (87.2) (161.7) SPARK ENERGY-A SPKE US 86.5 (0.9) (9.4) SPORTSMAN'S WARE 06S GR 292.3 (44.5) 76.1 SPORTSMAN'S WARE SPWH US 292.3 (44.5) 76.1 SUPERVALU INC SVU US 4,486.0 (634.0) 92.0 SUPERVALU INC SJ1 TH 4,486.0 (634.0) 92.0 SUPERVALU INC SVU* MM 4,486.0 (634.0) 92.0 SUPERVALU INC SJ1 GR 4,486.0 (634.0) 92.0 THERAVANCE THRX US 553.7 (193.1) 237.4 THERAVANCE HVE GR 553.7 (193.1) 237.4 TOWN SPORTS INTE CLUB US 482.6 (53.8) 69.7 TRANSDIGM GROUP TDG US 6,756.8 (1,556.1) 1,103.7 TRANSDIGM GROUP T7D GR 6,756.8 (1,556.1) 1,103.7 TRAVELPORT WORLD TVPT US 2,992.0 (210.0) (161.0) TRAVELPORT WORLD 1TW GR 2,992.0 (210.0) (161.0) TRINET GROUP INC TNET US 1,393.3 (48.9) 17.3 TRINET GROUP INC TN3 GR 1,393.3 (48.9) 17.3 TRINET GROUP INC TNETEUR EU 1,393.3 (48.9) 17.3 UNILIFE CORP UNIS US 80.7 (2.7) 0.4 UNISYS CORP USY1 GR 2,279.4 (521.2) 343.9 UNISYS CORP UISEUR EU 2,279.4 (521.2) 343.9 UNISYS CORP USY1 TH 2,279.4 (521.2) 343.9 UNISYS CORP UISCHF EU 2,279.4 (521.2) 343.9 UNISYS CORP UIS1 SW 2,279.4 (521.2) 343.9 UNISYS CORP UIS US 2,279.4 (521.2) 343.9 VECTOR GROUP LTD VGR GR 1,643.4 (7.9) 561.5 VECTOR GROUP LTD VGR US 1,643.4 (7.9) 561.5 VENOCO INC VQ US 756.5 (100.0) (762.9) VERISIGN INC VRS GR 2,207.4 (748.8) (326.3) VERISIGN INC VRSN US 2,207.4 (748.8) (326.3) VERISIGN INC VRS TH 2,207.4 (748.8) (326.3) VERISIGN INC VRS QT 2,207.4 (748.8) (326.3) VERIZON TELEMATI HUTC US 110.2 (101.6) (113.8) VERSO PAPER CORP VRS US 1,019.7 (584.3) 9.4 VIRGIN AMERICA I 2VA1 TH 876.0 (313.0) 19.0 VIRGIN AMERICA I 2VA1 GR 876.0 (313.0) 19.0 VIRGIN AMERICA I VA US 876.0 (313.0) 19.0 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WW6 TH 1,558.3 (1,357.7) 60.6 WEIGHT WATCHERS WTWEUR EU 1,558.3 (1,357.7) 60.6 WEIGHT WATCHERS WW6 GR 1,558.3 (1,357.7) 60.6 WEIGHT WATCHERS WTW US 1,558.3 (1,357.7) 60.6 WEST CORP WT2 GR 3,929.2 (684.9) 284.7 WEST CORP WSTC US 3,929.2 (684.9) 284.7 WESTMORELAND COA WLB US 1,578.5 (264.3) 101.2 WESTMORELAND COA WME GR 1,578.5 (264.3) 101.2 XERIUM TECHNOLOG TXRN GR 611.2 (51.2) 102.1 XERIUM TECHNOLOG XRM US 611.2 (51.2) 102.1 XOMA CORP XOMA TH 70.9 (18.1) 28.5 XOMA CORP XOMA US 70.9 (18.1) 28.5 XOMA CORP XOMA GR 70.9 (18.1) 28.5 YRC WORLDWIDE IN YRCW US 2,046.6 (361.2) 195.9 YRC WORLDWIDE IN YEL1 GR 2,046.6 (361.2) 195.9 YRC WORLDWIDE IN YEL1 TH 2,046.6 (361.2) 195.9 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com by e-mail. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to the nation's bankruptcy courts. The list includes links to freely downloadable of these small-dollar petitions in Acrobat PDF documents. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2014. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***