/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/141223.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 23, 2014, Vol. 18, No. 356 Headlines ACADIA HEALTHCARE: S&P Retains 'B+' CCR on CreditWatch Negative ACR ENERGY: Revel Power Plant Operator Warns of Bankruptcy AETERNA ZENTARIS: Receives NASDAQ Listing Non-Compliance Notice ALCO STORES: Going-Out-Of-Business Sale Underway at 198 Stores ALSIP ACQUISITION: Heads to Auction in January AMERICAN APPAREL: Considering Buyout Offer AMFIN FINANCIAL: Fights FDIC Over Specific Trust for Tax Refund AP-LONG BEACH: Case Summary & 20 Largest Unsecured Creditors ASARCO LLC: US Asks High Court to Reverse Baker Botts Fee Ruling BAXANO SURGICAL: Gets Approval of Bid Procedures BAYONNE ENERGY: Moody's Cuts Rating on $555MM Secured Debt to B1 BERNARD L. MADOFF: Court Rebuffs Investor Who Skipped $410M Deal BERNARD L. MADOFF: 2 More Underlings Sentenced for Aiding Scheme BERNARD L. MADOFF: Account Manager Must Forfeit 2 Houses, Bentley BERNARD L. MADOFF: 'Tech Guy' Gets 2.5 Years for Ponzi Programming BERNARD L. MADOFF: Customers to Receive $322 Million from Trustee BINDER & BINDER: Seeks Joint Administration of Ch. 11 Cases BINDER & BINDER: Wants Schedules Deadline Extended to Feb. 2 BINDER & BINDER: Proposes BMC Group as Claims Agent BINDER & BINDER: Proposes Lease Rejection Procedures BINDER & BINDER: 1,000 Workers Not Impacted by Bankruptcy for Now CAESARS ENTERTAINMENT: Enters Into Restructuring Support Agreement CHRYSLER GROUP: JPMorgan Not Due $24M in Tax Money, Treasury Says CNO FINANCIAL: Fitch Affirms 'BB+' IDR; Outlook Positive CREEKSIDE ASSOCIATES: Case Summary & 20 Top Unsecured Creditors DELIA*S INC: Taps ICR to Guide Communications for Wind Down DENDREON CORP: U.S. Trustee Opposes Plan Support Agreements DETROIT, MI: Miller Canfield Counsels City in Closing $1.28B Bonds DURADRIL LLC: Case Summary & 20 Largest Unsecured Creditors EAST CLEVELAND, OH: To Decide on Bankruptcy Filing after Q1 2015 ENDEAVOUR INT'L: Disclosures OK'd, Plan Hearing Set for Feb. 9 ENTEGRA POWER: Entergy Pays $948MM for Arkansas Gas Plant ENERGY FUTURE: Kirkland Bankruptcy Fees Hit $20 Million EVERGREEN VINTAGE: Files for Chapter 11 Bankruptcy Protection EXIDE TECHNOLOGIES: Shareholders Lose Bid for Official Committee GENAERA CORP: 3rd Circ. Affirms Revival Of Investor Suit GLOBAL OUTREACH: Dentons Denies Playing Part in Botched Loan GT ADVANCED: Bid for Equity Committee Appointment Denied GULFCO HOLDING: Loses Bid to Overturn Ch. 11 Dismissal HEARUSA INC: Siemens' $3.6M Settlement With Stockholders OK'd HELLAS TELECOM: Noteholders' $333M Suit Against Sponsors Revived HENRY BUSHKIN: Johnny Carson's Atty Sues Counsel Over Book HOUSTON REGIONAL: Astros, Rockets to Pay $26MM for Collateral HUNTINGTON INGALLS: Fitch Raises IDR to 'BB+'; Outlook Stable IAMGOLD CORP: S&P Cuts Corp. Rating to 'B+', Off Watch Negative KCG HOLDINGS: S&P Raises Rating on $305MM Sr. Sec. Notes to 'BB-' LAKE LAS VEGAS: Highland Wins $40MM Verdict Against Credit Suisse LEHMAN BROTHERS: Barclays Fighting to Hold on to Trademark LEHMAN BROTHERS: Files 61st Status Report on Claims Settlement LEHMAN BROTHERS: FOGADE Wins Nod to Tap Diaz Reus as Agent LEHMAN BROTHERS: LBI & Athlion Settle $47.95-Million Claim LEHMAN BROTHERS: Files Suit to Disallow Ella E.M. Claim LEHMAN BROTHERS: Sues Olin College to Recover $2 Million LEHMAN BROTHERS: Sues Utah Housing Over Derivatives LOMBARD PUBLIC: S&P Lowers Series A-2 Bonds Rating to 'CC' LOUIS BULLARD: Justices Take Case Limiting Ch. 13 Appeals MARCUS ENTERPRISES: Case Summary & 9 Unsecured Creditors MARTIN MIDSTREAM: S&P Affirms 'B+' Corp. Credit Rating, Off Watch MAUDORE MINERALS: Creditor Gets Receiver for Aurbec Mines MEXX: Gordon Brothers, Hilco Commence Going-Out-of-Business Sales MIDWEST FAMILY: S&P Affirms 'B' Rating on 2006A Class IV Bonds MIG LLC: Litigation Amendment Approved NII HOLDINGS: Insider Incentive Plan Draws U.S. Trustee Objection O.W. BUNKER: Proposes Montgomery McCracken as Bankruptcy Counsel O.W. BUNKER: Taps Robinson & Cole as Connecticut Counsel O.W. BUNKER: Taps A&M as Restructuring Advisor OAKLEY AND SON: Case Summary & 5 Largest Unsecured Creditors OVERSEAS SHIPHOLDING: Unveils Mgt. Changes 4 Months After Exit PHOENIX PAYMENT: Plan Filing Period Extended to March 2 PORT AGGREGATES: Case Summary & 17 Largest Unsecured Creditors RADIAN GROUP: Assured Guaranty Nears Deal for Unit RADIOSHACK CORP: Lender Sends Mixed Signals About Bankruptcy REVEL AC: Sale to Runner-Up Polo North Set for Jan. 5 Hearing REVEL AC: Taps Slater Tenaglia to Handle Casino Collections Cases ROTHSTEIN ROSENFELDT: Trustee Seeks Clarification on Claims SEMGROUP LP: Ex-CEO Asks 3rd Circ. to Nix Investor Fraud Suit SENTINEL MANAGEMENT: Trustee Can't Wipe Out BNY Mellon's Debt SIGA TECHNOLOGIES: Seeks Approval to Hire PwC as Auditor SIMPLEXITY LLC: Bankruptcy Deal OK'd Over US Trustee Objection SIRRUB SERVICES: Voluntary Chapter 11 Case Summary STANFORD GROUP: BNY's Pershing Can't Escape Ponzi Suit STOCKTON, CA: Judge Denies Franklin Bid to Reduce Retiree Claims SUMMERFIELD AT SNOW HILL: Case Summary & 5 Top Unsec. Creditors TRUMP ENTERTAINMENT: CEO Says Union Killed Deal to Save Casino TRUMP ENTERTAINMENT: To Stay Open Into New Year, Lawyer Says TURF LLC: Case Summary & 7 Largest Unsecured Creditors ULTIMATE NUTRITION: Nutritional Supplements Seller Files Ch.11 ULTIMATE NUTRITION: Seeks to Use TD Bank's Cash Collateral ULTIMATE NUTRITION: Asks for Joint Administration of Cases * Jury Awards Highland Capital $40MM in Suit vs. Credit Suisse * Proposed Fixes Would Try to Make Bankruptcy Cheaper * Daniel J. Casamatta Appointed Acting U.S. Trustee for Region 13 * Andrew R. Vara Appointed Acting U.S. Trustee for Region 3 * Large Companies With Insolvent Balance Sheet ********* ACADIA HEALTHCARE: S&P Retains 'B+' CCR on CreditWatch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on Acadia Healthcare Co. Inc. are not affected by Acadia's announcement that it is upsizing its term loan A by $235 million in anticipation of its acquisition of CRC Health Group Inc., which S&P expects to close in early 2015. S&P's 'B+' corporate credit rating and all issue-level ratings (including the 'BB' issue-level rating on the company's upsized term loan A) remain on CreditWatch with negative implications, where S&P placed them on Oct. 31, 2014, following the company's announcement of its intention to acquire CRC. S&P intends to resolve its CreditWatch once the acquisition and associated financing are completed in early 2015. S&P believes any downgrade to the corporate credit rating would be limited to one notch. RATINGS LIST Acadia Healthcare Co. Inc. Corporate Credit Rating B+/Watch Neg Senior Secured BB/Watch Neg Recovery Rating 1 Senior Unsecured B/Watch Neg Recovery Rating 5 ACR ENERGY: Revel Power Plant Operator Warns of Bankruptcy ---------------------------------------------------------- Jacqueline Palank, writing for Daily Bankruptcy Review, reported that ACR Energy Partners LLC, the power plant custom built to light up the Atlantic City, N.J., boardwalk's now-shuttered Revel hotel and casino, is again warning that it, too, may have to file for bankruptcy protection as a result of Revel's troubles. As previously reported by The Troubled Company Reporter, citing Daily Bankruptcy Review, U.S. Bankruptcy Judge Gloria Burns in New Jersey has scrapped a $110 million deal to sell Revel Casino Hotel to Canadian private-equity firm Brookfield Property Partners LP, approving the casino operator's request to terminate the sale, placing a Florida-based real-estate developer in line to purchase the property. Revel AC has asked the bankruptcy court to approve the sale of its assets to backup bidder Polo North County Club Inc., which offered $95.4 million, after the winning bidder, Brookfield Property, backed out of the deal. A Brookfield representative has said in November that it wouldn't be moving forward with the $110 million sale because, according to sources, Brookfield was spooked by the situation involving ACR Energy, a joint venture between South Jersey Industries Inc. and DCO Energy LLC whose power plant provides Revel, its only customer, with air conditioning, hot water and electricity. ACR's bondholders, owed $118 million, have refused to renegotiate debt related to the JV's plant, casting doubt on its future operation, the report said. AETERNA ZENTARIS: Receives NASDAQ Listing Non-Compliance Notice --------------------------------------------------------------- Aeterna Zentaris Inc. on Dec. 19 disclosed that it has received a notice from The NASDAQ Listing Qualifications Department indicating that the Company's minimum bid price has fallen below $1.00 for 30 consecutive business days, and, therefore, was no longer in compliance with NASDAQ Marketplace Rule 5550(a)(2) - bid price. The Company has been provided 180 calendar days, or until June 16, 2015, to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Company's common stock must be at least $1.00 per share for a minimum of 10 consecutive business days. This notice does not impact the Company's listing on The NASDAQ Capital Market at this time. Under NASDAQ rule 5810(c)(3)(A) - compliance period, if the Company does not regain compliance within the initial 180-day period, but otherwise meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for The NASDAQ Capital Market (rule 5505 - Capital Market criteria) except for the bid price requirement, and the Company provides NASDAQ with notice of its intention to cure the bid price deficiency, the NASDAQ rules may permit an additional 180 calendar days to regain compliance. If the Company is not eligible for an additional compliance period, NASDAQ will notify the Company that its securities are subject to delisting. At that time, the Company may appeal this determination to delist its securities to a NASDAQ Hearings Panel. The Company intends to monitor the bid price for its securities between now and June 16, 2015 and will consider all available options to resolve the deficiency and regain compliance with the minimum bid price requirement. About Aeterna Zentaris Inc. Aeterna Zentaris -- http://www.aezsinc.com-- is a specialty biopharmaceutical company engaged in developing and commercializing novel treatments in oncology, endocrinology and women's health. ALCO STORES: Going-Out-Of-Business Sale Underway at 198 Stores -------------------------------------------------------------- Tiger Capital Group, LLC on Dec. 18 disclosed that last-minute holiday shoppers will now find even bigger bargains at the Going- Out-Of-Business sale underway at all 198 Alco stores located across 23 states in the Midwest, Southeast and Southwest. Effective Dec. 18, discounts of up to 50%-off the lowest ticketed price are being offered on all toys, as well as the stores' entire Christmas department, greeting cards and party supplies. Liquidation discounts are also being offered on Alco's remaining inventories of family apparel and footwear, housewares, electronics, seasonal products, sporting goods, food and snack items, health and beauty aids, hardware, and more. Some stores are closing soon, so consumers are urged to shop as soon possible to get the widest selection of merchandise. As previously reported, the U.S. Bankruptcy Court in Dallas approved an order on November 20 authorizing Tiger Capital Group LLC, SB Capital Group LLC and Great American Group LLC to begin liquidating all locations of Alco Stores. More than $260 million of inventory, fixtures and equipment are being liquidated during the sale, which began on November 21. Alco stores, which average 25,000 square feet in size, are located in Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, South Dakota, Texas, Utah, Wisconsin, and Wyoming. For a list of locations, go to: http://www.alcostores.com//about_us All stores are maintaining their normal business hours during this liquidation sale and continue to honor Alco's Rewards Program. Cash and major credit cards will be accepted. 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. ALSIP ACQUISITION: Heads to Auction in January ---------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that Alsip Acquisition LLC received court approval of procedures governing the sale of assets associated with its idled paper mill in Alsip, Illinois. According to the report, the bankruptcy was designed to sell real estate and equipment at the mill to Montreal-based Resolute Forest Products Inc. for $5 million, subject to competitive bidding. Competing bids are due Jan. 6, and Alsip, in consultation with lender Wells Fargo Bank NA and the official creditors' committee, may extend the bid deadline to Jan. 12, the report related. If Alsip receives more than one qualified bid by the Jan. 6 bid deadline, and the deadline hasn't been extended, the auction will be on Jan. 7, the report further related. If the bid deadline were extended to Jan. 12, the auction will take place Jan. 13, the report added. 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 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. AMERICAN APPAREL: Considering Buyout Offer ------------------------------------------ Chelsey Dulaney, writing for The Wall Street Journal, reported that American Apparel Inc. said that it is evaluating an offer to sell itself at a hefty premium, following its announcement that a new shareholder rights plan meant to defend the company from a hostile takeover. According to the Journal, the company, which officially ousted its chief executive and founder Dov Charney, was approached by Irving Place Capital about a possible takeover for a price of $1.30 to $1.40 a share. American Apparel confirmed that it has received an offer for $1.30 to $1.40 a share -- double the level shares were trading at before news of the offer sent shares soaring, the Journal related. The New York Times' DealBook reported that shares of American Apparel surged in early trading on Dec. 22 after the company said it had received an overture to buy the company for $1.30 to $1.40 share. The shares were up more than 7 percent before the market opening, the DealBook said. About American Apparel American Apparel is a vertically-integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of Sept. 30, 2014, American Apparel had approximately 10,000 employees and operated 245 retail stores in 20 countries including the United States and Canada. American Apparel also operates a global e-commerce site that serves over 60 countries worldwide at http://www.americanapparel.com. In addition, American Apparel operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. Amid liquidity problems and declining sales, American Apparel in early 2011 reportedly tapped law firm Skadden, Arps, Slate, Meagher & Flom and investment bank Rothschild Inc. for advice on a restructuring. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Under the deal, the investors were buying 15.8 million shares of common stock at 90 cents apiece. The deal allows the investors to purchase additional 27.4 million shares at the same price. American Apparel has been in the red as far back as 2010. The Company reported a net loss of $106.29 million on $633.94 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $37.27 million on $617.31 million of net sales for the year ended Dec. 31, 2012. American Apparel posted a net loss of $39.31 million on $547.33 million of net sales for the year ended Dec. 31, 2011, compared with a net loss of $86.31 million on $532.98 million of net sales during 2010. In 2011, American Apparel announced a restatement of its 2009 financial reports. The Company's balance sheet at Sept. 30, 2014, the Company had $307.18 million in total assets, $394.78 million in total liabilities and a $87.59 million total stockholders' deficit. * * * The TCR reported on Nov. 21, 2013, that Moody's Investors Service downgraded American Apparel Inc.'s corporate family rating to Caa2. The clothing retailer's probability of default was also lowered one level and the outlook is negative. As reported by the TCR on Sept. 2, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Los Angeles-based American Apparel Inc. to 'CCC-' from 'CCC'. The outlook is negative. "The downgrade reflects our assessment that a debt restructuring appears inevitable within six months, absent unanticipated significantly favorable changes in the company's circumstances," said Standard & Poor's credit analyst Ryan Ghose. AMFIN FINANCIAL: Fights FDIC Over Specific Trust for Tax Refund --------------------------------------------------------------- Law360 reported that AmFin Financial Corp. told an Ohio federal court that state law does not allow the Federal Deposit Insurance Corp. to establish a specific trust to turn over a $170 million tax refund that the FDIC says is its property. According to the report, the FDIC asked the Northern District of Ohio in a November amended complaint to declare the existence of a specific trust so the FDIC could obtain the 2008 tax refund of AmFin subsidiary AmTrust Bank even though a specific trust is a federal common law. About AmTrust Financial AmTrust Financial Corp. was the owner of the AmTrust Bank. AmTrust was the seventh-largest holder of deposits in South Florida, with $4.7 billion in deposits and 21 branches. In November 2008, the Office of Thrift Supervision issued a cease and desist order requiring AmTrust to improve its capital ratios. AmTrust Financial, together with affiliates that include AmTrust Management Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ohio Case No. 09-21323) on Nov. 30, 2009. The debtor subsidiaries include AmFin Real Estate Investments, Inc., formerly AmTrust Real Estate Investments, Inc. (Case No. 09-21328). G. Christopher Meyer, Esq., Christine M. Piepont, Esq., and Sherri L. Dahl, Esq., at Squire Sanders & Dempsey (US) LLP, in Cleveland, Ohio; and Stephen D. Lerner, Esq., at Squire Sanders & Dempsey (US) LLP, in Cincinnati, Ohio, served as counsel to the Debtors. Kurtzman Carson Consultants served as claims and notice agent. Attorneys at Hahn Loeser & Parks LLP serve as counsel to the Official Committee of Unsecured Creditors. AmTrust Management estimated $100 million to $500 million in assets and debts in its Chapter 11 petition. AmTrust Bank was not part of the Chapter 11 filings. On Dec. 4, 2009, AmTrust Bank was closed by regulators and the Federal Deposit Insurance Corporation was named receiver. New York Community Bank, in Westbury, New York, assumed all of the deposits of AmTrust Bank pursuant to a deal with the FDIC. AmTrust, nka AmFin Financial Corp., obtained confirmation of its Amended Joint Plan of Reorganization on Nov. 3, 2011. The plan was declared effective in December 2011. AP-LONG BEACH: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: AP-Long Beach Airport LLC 14770 Firestone Blvd., Suite 206 La Mirada, CA 90638 Case No.: 14-33372 Type of Business: Single Asset Real Estate Chapter 11 Petition Date: December 19, 2014 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Hon. Vincent P. Zurzolo Debtor's Counsel: Alan J Friedman, Esq. IRELL & MANELLA LLP 840 Newport Center Dr Ste 400 Newport Beach, CA 92660 Tel: 949-760-5107 Email: afriedman@irell.com - and - Kerri A Lyman, Esq. IRELL & MANELLA LLP 840 Newport Center Dr Ste 400 Newport Beach, CA 92660 Tel: 949-760-5224 Fax: 949-760-5200 Email: klyman@irell.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Donald G. Abbey, authorized individual. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Stapleton Group Vendor $45,080 City of Long Beach Vendor $24,746 Southern California Edison Vendor $11,010 Universal Building Maintenance LLC Vendor $10,318 Precision Landscape Vendor $5,022 EnviroBusiness, Inc. Vendor $4,400 City of Long Beach Vendor $2,962 Chem-Aqua, Inc. Vendor $2,953 Acco Engineered Systems Vendor $2,885 J.M. Carden Sprinkler Co, Inc., Vendor $1,821 Granite Telecommunications LLC Vendor $1,738 Elga Vendor $1,524 ADM Electrical Solutions, Inc. Vendor $1,434 South Coast A.Q.M.D. Vendor $1,333 Vortex Industires, Inc. Vendor $1,290 Terminix Processing Center Vendor $1,025 4 Seasons Roofing Inc. Vendor $1,023 DC Environmental Vendor $964 Coastal Maintenance Inc. Vendor $955 PL Hawn Company, Inc. Vendor $735 ASARCO LLC: US Asks High Court to Reverse Baker Botts Fee Ruling ---------------------------------------------------------------- Law360 reported that the federal government joined state bar associations from California, Florida, New York, Texas and others urging the U.S. Supreme Court to reverse a Fifth Circuit decision that overturned fees associated with Baker Botts LLP's $117 million fee award for defending Asarco LLC in the mining company's bankruptcy. According to the report, the Fifth Circuit found that $5.2 million in compensation for costs incurred in the defense of an application for professional fees were not necessary to the administration of a bankruptcy case. The case in the Supreme Court is Baker Botts LLP v. Asarco LLC, 14-103, U.S. Supreme Court (Washington). About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection (Bankr. S.D. Tex. Case No. 05-21207) on Aug. 9, 2005. Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On Dec. 9, 2009, Asarco Incorporated and Americas Mining Corporation's Seventh Amended Plan of Reorganization for the Debtors became effective and the ASARCO Asbestos Personal Injury Settlement Trust was created and funded with nearly $1 billion in assets, including more than $650 million in cash plus a $280 million secured note from Reorganized ASARCO. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated ASARCO LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. BAXANO SURGICAL: Gets Approval of Bid Procedures ------------------------------------------------ Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the U.S. Bankruptcy Court in Delaware has approved the procedures governing the bidding and sale of Baxano Surgical Inc.'s assets and has allowed the company to proceed with a Jan. 22 auction. According to the report, the bid procedures provide interested parties the opportunity to serve as so-called stalking horse, with a Dec. 22 deadline for designation, while competing bids are due Jan. 20. Baxano has no buyer under contract yet, the report noted. About Baxano Surgical Based in Raleigh, North Carolina, Baxano Surgical Inc. develops, manufactures and markets minimally invasive medical products designed to treat degenerative conditions of the spine affecting the lumbar region. As of March 31, 2013, over 13,500 fusion procedures and 7,000 decompression procedures have been performed globally using its products. Baxano Surgical filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 14-12545) on Nov. 12, 2014. The case is assigned to Judge Christopher S. Sontchi. The Debtor estimated $10 million to $50 million in assets and debt. The formal schedules of assets and liabilities and statement of financial affairs are due Dec. 1, 2014. The Debtor has tapped John D. Demmy, Esq., at Stevens & Lee, P.C., in Wilmington, Delaware, as bankruptcy counsel. The Debtor is also employing the law firm of Goodwin Proctor LLP as special counsel, and the law firm of Hogans Lovell as special healthcare regulatory counsel. The Debtor is engaging Tamarack Associates to, among other things, provide John L. Palmer as CRO. Houlihan Lokey is serving as the Debtor's investment banker. Rust Consulting Omni is the claims and noticing agent. The Chapter 11 plan and disclosure statement are due March 12, 2015. BAYONNE ENERGY: Moody's Cuts Rating on $555MM Secured Debt to B1 ---------------------------------------------------------------- Moody's Investors Service downgraded the rating of Bayonne Energy Center LLC's (BEC) $555 million senior secured first lien credit facilities to B1 from Ba3. The facilities consist of a $525 million term loan due 2021 (current outstanding is approximately $516 million) and a $30 million senior secured revolving credit facility due 2019. The rating outlook is stable. Ratings Rationale "The one notch downgrade is driven by an amendment to BEC's loan documentation that reduces debt repayment requirements and raises borrowing costs," said Moody's Senior Credit Officer Scott Solomon. Specifically, the amendment, which became effective December 1, 2014, reduces BEC's quarterly debt repayment requirement to 75% of excess cash flow from 100% thereby providing the sponsor with the ability to receive ongoing cash distributions, and increases the borrowing costs by 50 basis points. The amendment meaningfully increases the term loan balance expected due at or near maturity, which increases refinancing risk and reduces BEC's financial flexibility. Additionally, the expected high debt balances coupled with the higher interest costs weaken financial metrics over the life of the transaction, particularly when evaluated from a cash flow to debt perspective. These factors, combined with the uncertainty around medium-term pricing dynamics in the NY ISO Zone J market place, are critical drivers of the rating downgrade. Moody's previously expected a range of $275-300 million of the term loan to be outstanding near the 2021 maturity, equal to approximately 55% of BEC's initial term loan outstanding. However, following the execution of the amendment, Moody's calculate that the term loan balance expected at or near the 2021 maturity to be in the range of $340-360 million (67% of the original loan balance ), representing an substantive increase of at least 20%. Moreover, higher debt balances combined with a higher interest rate modestly weaken BEC's key credit statistics which were already weak for the Ba-rating category. BEC's B1 rating and stable outlook is supported by the predictable contracted cash flows that Moody's expect BEC to generate under existing tolling agreements with a financially sound counterparty as well as the attractive location of the project within NYISO Zone J. Moody's view BEC as being well positioned at the B1 rating and able to withstand a degree of unexpected operational problems or declines in capacity/energy prices without encountering rating pressure. The principal methodology used in these ratings was Power Generation Projects published in December 2012. Located in Bayonne, New Jersey, BEC is a 512 MW 8-unit dual-fuel simple-cycle power plant 100% owned by a subsidiary of ArcLight Energy Partners Fund III, L.P., a fund managed by ArcLight Capital Partners, LLC. BERNARD L. MADOFF: Court Rebuffs Investor Who Skipped $410M Deal ---------------------------------------------------------------- Law360 reported that a New York appeals court refused to allow an investor in a Bernard Madoff feeder fund get in on a $410 million settlement of litigation against hedge fund manager J. Ezra Merkin, finding Merkin's receiver had no duty to advise the investor to take the deal. According to the report, a five-judge panel for the mid-level New York Supreme Court Appellate Division, First Department, found that the receiver for Ascot Partners LP was under no obligation to advise investor Joshua M. Berman, who opted to arbitrate his claims. 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: 2 More Underlings Sentenced for Aiding Scheme ---------------------------------------------------------------- Law360 reported that a former account manager and a computer programmer at Bernard Madoff's defunct trading firm were sentenced to prison in New York federal court for their role in the historic Ponzi scheme, which caused an estimated $17.5 billion in investor losses. According to the report, Judge Laura Taylor Swain sentenced former Bernard L. Madoff Investment Securities LLC account manager Annette Bongiorno to six years in prison during a hearing in Manhattan court. The case is USA v. O'Hara et al., Case No. 1:10-cr-00228 (S.D.N.Y.). 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: Account Manager Must Forfeit 2 Houses, Bentley ----------------------------------------------------------------- Law360 reported that a convicted co-conspirator of Bernard Madoff was told to give up her Boca Raton and Long Island houses, a Bentley, two Benzes and four Rolexes, as part of an order that also puts her and her co-conspirators on the hook for a $155.1 billion forfeiture. According to the report, Annette Bongiorno was also ordered to give up at least $2.94 million in 36 accounts at Citibank NA, Morgan Stanley Smith Barney, E-Trade Financial Corp., TD Bank NA and TD Ameritrade, JPMorgan Chase & Co., Fidelity Investments and others. Ms. Bongiorno, a former account manager at Madoff's defunct trading firm, was sentenced to six years in prison for her role in the historic Ponzi scheme, which caused an estimated $17.5 billion in investor losses, the report related. The case is U.S. v. O'Hara et al., case number 1:10-cr-00228, in the U.S. District 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: 'Tech Guy' Gets 2.5 Years for Ponzi Programming ------------------------------------------------------------------ Law360 reported that a former computer programmer and self- described "tech guy" at Bernard Madoff's defunct investment firm was sentenced in New York federal court to 2-1/2 years in prison for his role in the notorious $17.5 billion Ponzi scheme. According to the report, during a hearing in Manhattan, U.S. District Judge Laura Taylor Swain also ordered George Perez to serve 200 hours of community service. The report said Mr. Perez and four other former Bernard L. Madoff Investment Securities LLC employees -- operations chief Daniel Bonventre, account managers Annette Bongiorno and JoAnn Crupi, and computer programmer Jerome O'Hara -- were convicted in March of aiding the fake-trading caper, which caused an estimated $17.5 billion in investor losses and earned Madoff a 150-year prison term. The case is U.S. v. O'Hara et al., case number 1:10-cr-00228, in the U.S. District 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: Customers to Receive $322 Million from Trustee ----------------------------------------------------------------- Jacqueline Palank, writing for The Wall Street Journal, reported that Bernard Madoff's cheated investors found out they could soon receive hundreds of millions of dollars from the liquidation of the Ponzi-scheme operator's investment firm. According to the report, Madoff liquidation trustee Irving Picard is asking the bankruptcy court to let him distribute $322 million to the former customers of Mr. Madoff's investment firm. The Journal reported that if the court approves Mr. Picard's request, his fifth proposal in the past six years, he'll have returned $7.2 billion to Mr. Madoff's customers. 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. BINDER & BINDER: Seeks Joint Administration of Ch. 11 Cases ----------------------------------------------------------- Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al., seek an order directing the joint administration of their Chapter 11 cases for procedural purposes only. The Debtors want parties in interest directed to use a consolidated caption, to indicate that any filed motion, application or other pleading relates to the jointly administered bankruptcy cases of "Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al." The docket in Chapter 11 Case No. 14-23728 should be consulted for all matters affecting the cases. Because the Chapter 11 cases involve thousands of creditors, the entry of an order of joint administration will: (a) significantly reduce the volume of pleadings that otherwise would be filed with the Clerk of the Court; (b) render the completion of various administrative tasks less costly; and (c) minimize the number of unnecessary delays associated with the administration of twenty- five separate chapter 11 cases. About Binder & Binder Founded in 1979 by brothers Harry and Charles Binder, Binder & Binder is the nation's largest provider of social security disability and veterans' benefits advocacy services, with operating scale and efficiencies unrivaled by its competitors in the highly fragmented advocacy market. The company has more than 950 employees in 35 offices across the United States. In 2010, H.I.G. Capital, LLC acquired a controlling equity interest in the company. Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al., sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-23728) in White Plains, New York, on Dec. 18, 2014. The cases are assigned to Judge Robert D. Drain. The Debtors have tapped Kenneth A. Rosen, Cassandra Porter, Esq., and Nicholas B. Vislocky, Esq., at Lowenstein Sandler as counsel. The Debtors have engaged Development Specialists, Inc., as financial advisor, and BMC Group Inc. as claims and notice agent. BINDER & BINDER: Wants Schedules Deadline Extended to Feb. 2 ------------------------------------------------------------ Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al., ask the Bankruptcy Court to extend by 32 days until Feb. 2, 2015, the time to file schedules of assets and liabilities, schedules of executory contracts and unexpired leases and statements of financial affairs and granting related relief. The Debtors submit that the large amount of information that must be assembled and compiled, the hundreds of employee and professional hours required for the completion of the Schedules and Statements and the lack of prejudice to creditors that would result in such an extension being granted all constitute good and sufficient cause for granting the relief requested. In addition, to ensure that the Debtors' businesses run smoothly through the Chapter 11 process and maximize the value of the Debtors' estates, the Debtors' creditors are better served by the Debtors' employees and principals focusing their efforts and attention upon business operations rather than burdensome tasks such as compilation of the Schedules and Statements. About Binder & Binder Founded in 1979 by brothers Harry and Charles Binder, Binder & Binder is the nation's largest provider of social security disability and veterans' benefits advocacy services, with operating scale and efficiencies unrivaled by its competitors in the highly fragmented advocacy market. The company has more than 950 employees in 35 offices across the United States. In 2010, H.I.G. Capital, LLC acquired a controlling equity interest in the company. Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al., sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-23728) in White Plains, New York on Dec. 18, 2014. The cases are assigned to Judge Robert D. Drain. The Debtors have tapped Kenneth A. Rosen, Cassandra Porter, Esq., and Nicholas B. Vislocky, Esq., at Lowenstein Sandler as counsel. The Debtors have engaged Development Specialists, Inc., as financial advisor, and BMC Group Inc. as claims and notice agent. BINDER & BINDER: Proposes BMC Group as Claims Agent --------------------------------------------------- Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al., seek approval from the Bankruptcy Court to hire BMC Group, Inc., as claims and noticing agent for their bankruptcy cases. Although the Debtors have not yet filed their schedules of assets and liabilities, they anticipate that there will be an extensive list of entities to be noticed. In view of the number of potential claimants, the Debtors submit that the appointment of a claims and noticing agent is both necessary and in the best interests of both the Debtors' estates and their creditors. The firm will charge the Debtors at these rates: * Noticing Management - Data Entry/Call Center/Admin Support $25/45/65 per hour - Analysts $85 per hour - Noticing Manager $100 per hour * Claims Management - Claim Receipt, Processing & Docketing $2.50 per claim - b-Linx Database & Systems Access $0.085 per month * Project Management - Analyst $85-$100 per hour - Consultant $125-$185 per hour - Principal/Director/Expert $200-$225 per hour * Print Mail and Noticing Services - Certified Electronic Noticing Service $40 per 1000 - Certified Fax Noticing Service $0.15 per image * Document and Information Management - Live Operator Call Center $45 per hour - Public Case Website Hosting $250 per month - Secure Virtual Data Room Setup+$0.15/per/month Prior to the Petition Date, the Debtors provided BMC a retainer of $25,000. About Binder & Binder Founded in 1979 by brothers Harry and Charles Binder, Binder & Binder is the nation's largest provider of social security disability and veterans' benefits advocacy services, with operating scale and efficiencies unrivaled by its competitors in the highly fragmented advocacy market. The company has more than 950 employees in 35 offices across the United States. In 2010, H.I.G. Capital, LLC acquired a controlling equity interest in the company. Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al., sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-23728) in White Plains, New York on Dec. 18, 2014. The cases are assigned to Judge Robert D. Drain. The Debtors have tapped Kenneth A. Rosen, Cassandra Porter, Esq., and Nicholas B. Vislocky, Esq., at Lowenstein Sandler as counsel. The Debtors have engaged Development Specialists, Inc., as financial advisor, and BMC Group Inc. as claims and notice agent. BINDER & BINDER: Proposes Lease Rejection Procedures ---------------------------------------------------- Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al., seek approval of streamlined procedures for the rejection of contracts and abandonment of de minimis property. As of the Petition Date, the Debtors are, collectively, a party to a substantial number of executory contracts and unexpired leases, including, without limitation, certain personal property leases, unexpired leases of nonresidential real property, including any amendments, modifications, guaranties, or other agreements related thereto, property and facilities management agreements, and agreements for the provision of goods and services. The Debtors believe that the proposed rejection procedures will save substantial legal expenses and Court time that would otherwise be dedicated to litigating and adjudicating multiple hearings held on separate motions. Moreover, the rejection procedures provide parties-in-interest with at least 21 days to file an objection, which is longer than typically sought in the District. A copy of the Motion is available for free at: http://bankrupt.com/misc/Binder_Lease_Protocol_Motion.pdf About Binder & Binder Founded in 1979 by brothers Harry and Charles Binder, Binder & Binder is the nation's largest provider of social security disability and veterans' benefits advocacy services, with operating scale and efficiencies unrivaled by its competitors in the highly fragmented advocacy market. The company has more than 950 employees in 35 offices across the United States. In 2010, H.I.G. Capital, LLC acquired a controlling equity interest in the company. Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al., sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-23728) in White Plains, New York on Dec. 18, 2014. The cases are assigned to Judge Robert D. Drain. The Debtors have tapped Kenneth A. Rosen, Cassandra Porter, Esq., and Nicholas B. Vislocky, Esq., at Lowenstein Sandler as counsel. The Debtors have engaged Development Specialists, Inc., as financial advisor, and BMC Group Inc. as claims and notice agent. BINDER & BINDER: 1,000 Workers Not Impacted by Bankruptcy for Now ----------------------------------------------------------------- Sara Randazzo, writing for Daily Bankruptcy Review, reported that Social Security disability firm Binder & Binder won a bankruptcy court's permission to continue conducting business as usual while it restructures its debt, a step that ensures its nearly 1,000 employees and more than 57,000 clients won't immediately feel the effects of the company's bankruptcy. About Binder & Binder Founded in 1979 by brothers Harry and Charles Binder, Binder & Binder is the nation's largest provider of social security disability and veterans' benefits advocacy services, with operating scale and efficiencies unrivaled by its competitors in the highly fragmented advocacy market. The company has more than 950 employees in 35 offices across the United States. In 2010, H.I.G. Capital, LLC acquired a controlling equity interest in the company. Binder & Binder - The National Social Security Disability Advocates (NY), LLC, et al., sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-23728) in White Plains, New York on Dec. 18, 2014. The cases are assigned to Judge Robert D. Drain. The Debtors have tapped Kenneth A. Rosen, Cassandra Porter, Esq., and Nicholas B. Vislocky, Esq., at Lowenstein Sandler as counsel. The Debtors have engaged Development Specialists, Inc., as financial advisor, and BMC Group Inc. as claims and notice agent. CAESARS ENTERTAINMENT: Enters Into Restructuring Support Agreement ------------------------------------------------------------------ Caesars Entertainment Operating Company, Inc. ("CEOC"), a subsidiary of Caesars Entertainment Corporation ("Caesars Entertainment") and Caesars Entertainment have reached an agreement with CEOC's first lien noteholder steering committee regarding terms of a financial restructuring plan. The proposed plan will significantly reduce long-term debt and annual interest payments, and result in a stronger balance sheet for CEOC. The restructuring support agreement has been signed by all members of the first lien noteholder steering committee. "The planned restructuring of CEOC will allow us to establish a strong and sustainable capital structure for CEOC and maximize value for our stakeholders," said Gary Loveman, Chairman of CEOC. "I want to thank this creditor group for its support of the restructuring. We believe the financial restructuring plan we are announcing is in the best interests of all of CEOC's stakeholders. We look forward to continuing to welcome guests across our network throughout this process. Business operations at all properties and the Total Rewards program will continue as usual throughout the balance sheet restructuring process." To implement the balance sheet deleveraging, CEOC expects to voluntarily commence a reorganization under Chapter 11 of the U.S. Bankruptcy Code in mid-January 2015. CEOC and its properties will continue to operate in the ordinary course throughout the restructuring process. Caesars Entertainment, Caesars Entertainment Resort Properties and Caesars Growth Partners, which are separate entities with independent debt capital structures, will not be part of the court-supervised process. Under the terms of the proposed financial restructuring, CEOC will convert its corporate structure by separating virtually all of its US-based gaming operating assets and real property assets into two companies, including an operating entity ("OpCo") and a newly formed, publicly traded real estate investment trust ("REIT") that will directly or indirectly own a newly formed property company ("PropCo"). The proposed transactions would reduce CEOC's debt by approximately $10 billion, providing for the exchange of approximately $18.4 billion of outstanding debt for $8.6 billion of new debt. Annual interest expense would be reduced by approximately 75%, from approximately $1.7 billion to approximately $450 million. PropCo would lease its real property assets to OpCo in exchange for annual lease payments of $635 million, with the lease payments guaranteed by CEC. "The highly efficient REIT structure would enable CEOC to maximize its value and provide the most financial recovery to each of CEOC's creditor groups," Mr. Loveman said. "The formation of a publicly traded REIT would also allow CEOC to significantly reduce its leverage by creating two better capitalized companies with vastly improved cash flow generation. The transaction provides for the continued integration of CEOC's existing properties with Caesars Entertainment's multi-channel distribution network and industry-leading Total Rewards loyalty program. Combined, these actions will result in a stronger, more competitive and sustainable CEOC and will better position Caesars Entertainment for future growth, investment and success." Terms & Capital Structure The proposed restructuring plan has the support of all members of the first lien bondholder steering committee. CEOC is continuing to work to obtain additional support from its other creditors. The specifics of the plan are consistent with the plan disclosed via 8-K on December 12, 2014, however, to further reduce the leverage of CEOC beyond the previously published plan, first lien note holders will have the right to backstop the issuance of $300 million convertible preferred equity securities to be issued by PropCo. First lien holders who agree to backstop the purchase will be paid a commitment fee. The preferred shares will be convertible into PropCo common stock at plan value. First lien holders who sign the restructuring support by December 24, 2014 can join the backstop. Under the plan, Caesars Entertainment will contribute up to $1.45 billion in cash to CEOC in support of the restructuring: $700 million to offer to purchase up to 100% of the equity in OpCo from creditors, $269 million to offer to purchase up to 15% of the equity in PropCo, $406 million to fund liquidity and cash recoveries to creditors and a guarantee of up to an additional $75 million of cash, which can be drawn by CEOC under certain circumstances. In addition, Caesars Entertainment has agreed to guarantee OpCo's monetary obligations under the lease to help facilitate the creation of the valuable REIT structure. The restructuring is conditioned upon the release of all pending and potential litigation claims against Caesars Entertainment, Caesars Acquisition and related parties. The proposed restructuring plan is subject to approval by the bankruptcy court and the receipt of required gaming regulatory approvals. There are no assurances that the restructuring support agreement will become effective or that the proposed restructuring plan will be completed on the terms contemplated or at all. About Caesars Entertainment Operating Company Inc. Caesars Entertainment Operating Company, Inc., a majority owned subsidiary of Caesars Entertainment Corporation, provides casino entertainment services and owns, operates or manages 44 gaming and resort properties in 13 states of the United States and in five countries primarily under the Caesars, Harrah's and Horseshoe brand names. * * * The all-stock deal, according to David Gelles, writing for The New York Times' DealBook, will leave Caesars Entertainment with $1.7 billion in cash, much of which will be used to fund the bankruptcy. The DealBook said that the move, for creditors, is good news, bringing several of the best Caesars properties back into the parent company and avoiding the assumption of more debt. Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that a steering committee representing holders of 38 percent of first-lien creditors of Caesars Entertainment Operating Co. Inc. has signed an agreement laying out the terms of a Caesars Entertainment Operating Chapter 11 reorganization to start around mid-January. According to the Bloomberg report, the restructuring is contingent on signing up a total of 60 percent of first-lien bondholders by Jan. 5. To be effective, the deal also requires that holders of two-thirds of the senior bonds must sign up before the bankruptcy filing on Jan. 15 or not later than Jan. 30, the Bloomberg report related. 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. CHRYSLER GROUP: JPMorgan Not Due $24M in Tax Money, Treasury Says ----------------------------------------------------------------- Law360 reported that the U.S. Treasury Department told a New York bankruptcy judge that JPMorgan Chase Bank NA has no right to $24 million in Chrysler Group LLC's old bankruptcy trustee's 2008- 09 tax refunds, overpayments and deposits, because the bank lacks a perfected security interest in the tax receipts. According to the report, the department challenged JPMorgan's attempts to force Chrysler's trustee, Old Carco LLC, to pay it and other first-lien lenders the tax receipts the government said were owed to Chrysler's debtor-in-possession lenders, per agreements JPMorgan itself had signed. About Chrysler Group Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. Chrysler LLC and 24 affiliates on April 30, 2009, sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). The U.S. and Canadian governments provided Chrysler LLC with $4.5 billion to finance its bankruptcy case. In connection with the bankruptcy filing, Chrysler reached an agreement to sell all assets to an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC in June 2009, formally sold substantially all of its assets to the new company, named Chrysler Group LLC. In January 2014, the American car manufacturer officially became 100% Italian when Fiat Spa completed its deal to purchase the 40% it did not already own of Chrysler. Fiat has shared ownership of Chrysler with the health care fund of the United Automobile Workers unions since Chrysler emerged from bankruptcy in 209. * * * Standard & Poor's Ratings Services raised its ratings on U.S.- based auto manufacturer Chrysler Group LLC, including the corporate credit rating to 'BB-' from 'B+' in mid-January 2014. The outlook is stable. CNO FINANCIAL: Fitch Affirms 'BB+' IDR; Outlook Positive -------------------------------------------------------- Fitch Ratings has affirmed CNO Financial Group Inc.'s (CNO) 'BB+' Issuer Default Rating (IDR) and Insurer Financial Strength (IFS) ratings for CNO's core insurance subsidiaries at 'BBB'. The Rating Outlook is Positive for all ratings. KEY RATING DRIVERS The affirmation CNO's ratings reflect the company's strong balance sheet fundamentals, improved financial flexibility and liability profile and recent financial performance that remains in line with expectations. The Positive Outlook reflects Fitch's view that CNO's ratings could be upgraded over the next 12 - 18 months based on the company's ability to sustain recent improvements in earnings profile and balance sheet fundamentals. Fitch's primary concern is CNO's large, albeit reduced, exposure to the individual long-term care (LTC) insurance business. The company has actively managed down the exposure to its LTC exposure through disposals, reinsurance, product design and systematic price increases over the last several years. In addition, CNO's sale of Conseco Life Insurance Company freed up capital that could be used to fund potential LTC reserve strengthening tied to sustained low interest rates and adverse claims experience. Fitch views CNO's statutory capitalization as strong and financial leverage as moderate. Consolidated RBC ratio improved to 425% at Sept. 30, 2014, from 410% at yearend 2013. The company's financial leverage remains moderate at 17% at September 30, 2014 and flat with yearend 2013. Fitch expects both metrics to remain supportive of the rating in 2015. CNO's business segments reported a 21% increase in pre-tax, operating earnings in the third quarter 2014 versus third quarter 2013 driven by favorable fixed annuity, Medicare supplement and long term care (LTC) margins at Bankers Life & Casualty Insurance Company. All three operating life insurers reported profitable operating results in the third quarter despite slower total sales at CNO. Nine month, net operating income after tax increased 9.9% to $200 million versus prior year results, but net income comparisons are unfavorable due to the $278 million loss on the sale of Conseco Life reported in the first quarter of 2014. The low interest rate environment has pressured earnings at CNO, but the impact has been lessened through management actions to lower crediting rates on interest-sensitive products. CNO's debt service capabilities measured by nine month GAAP based fixed charge coverage declined to 3.9x from 6.3x for full year 2013. Operating interest coverage was strong at 10.3x for the first nine months of 2014. Fitch expects fixed charge coverage to range from 6-8x excluding unusual items for 2014. CNO's overall investment credit quality is good at September 30, 2014. The company takes credit risk primarily through its bond portfolio with 7% of bonds rated below investment grade on a NAIC statutory basis. The investment-grade bond portfolio is dominated by 'BBB' level rated securities at 45% of the portfolio making it potentially more vulnerable in a declining economic scenario to downgrade risk. However, CNO Financial has low exposure to directly placed commercial mortgages and alternative assets. Credit related impairments continue to be minimal through nine months of 2014 and gross unrealized losses were very low. RATING SENSITIVITIES Key rating triggers that could lead to an upgrade for all ratings include: -- Continued generation of stable earnings free of significant special charges; -- GAAP interest coverage ratio above 6x; -- NAIC risk based capital (RBC) ratio above 350% Key rating triggers that could lead to a return to stable outlook or downgrade include: -- Combined NAIC RBC ratio less than 300% and operating leverage above 20x; -- Deterioration in operating results; -- Decline in fixed charge coverage to below 3x; -- Significant increase in credit-related impairments; -- Financial leverage above 30% Fitch expects that over the next few years, CNO will attempt to migrate its capital structure away from secured senior debt to unsecured senior debt. CNO currently has no unsecured debt outstanding. However, during this transition, the mix of secured versus unsecured debt may fluctuate. Currently, the rating for any CNO senior unsecured debt would be one notch lower than standard due to the large level of secured debt in the capital structure. Fitch would expect to narrow the notching of CNO's unsecured debt relative to the IDR as the mix in secured debt declines below 25%. Fitch has affirmed these ratings: CNO Financial Group, Inc. -- IDR at 'BB+'; -- Senior secured bank credit facility (tranches of $250 million and $425 million due Sept. 30, 2016 and 2018, respectively) at 'BB+'; -- $275 million senior secured note 6.375% due Oct. 1, 2020 at 'BB+'. Bankers Life and Casualty Company Bankers Conseco Life Insurance Company Colonial Penn Life Insurance Company Washington National Insurance Company --IFS at 'BBB'. The Rating Outlook is Positive. CREEKSIDE ASSOCIATES: Case Summary & 20 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Creekside Associates, Ltd. 2500 Knights Road Bensalem, PA 19020 Case No.: 14-19952 Type of Business: Single Asset Real Estate Chapter 11 Petition Date: December 19, 2014 Court: United States Bankruptcy Court Eastern District of Pennsylvania (Philadelphia) Judge: Hon. Stephen Raslavich Debtor's Counsel: Jennifer L. Maleski, Esq. DILWORTH PAXSON LLP 1500 Market Street, Suite 3500E Philadelphia, PA 19102 Tel: 215-575-7000 Fax: 215-575-7200 Email: jmaleski@dilworthlaw.com Debtor's KAUFMAN, COREN & RESS, P.C. Special Counsel: Estimated Assets: $50 million to $100 million Estimated Liabilities: $50 million to $100 million The petition was signed by Israel Feit, president of managing member of G.P. of Debtor. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bucks County Water & Utility $4,102,018 Sewer Authority 1275 Almhouse Road Warrington, PA 18976 Aqua Pennsylvania Utility $38,580 Direct Energy Business Utility $20,641 Peco Energy Utility $18,572 Central Wholesalers Inc. Trade $9,108 Powell, Tractman, Logan, Carrie $6,983 & Lombardo, PC Bensalem Township Trade $5,000 Primavera Landscape Services, Inc. $4,350 Home Depot (Credit Services) Trade $4,003 Atlantic Floor Covering Inc. Trade $3,438 Federal Security Services, Inc. Trade $2,412 Home Depot (Supply) Trade $2,191 Consumer Source, Inc. Trade $1,302 Newtown Answering Service Trade $1,003 Lowe's (Business Account) Trade $682 J. Lorber Company Trade $680 Expel Exterminating Experts, Inc. Trade $667 Platinum Trade $636 For Rent Magazine Trade $599 Ascension Services, Inc. Trade $585 DELIA*S INC: Taps ICR to Guide Communications for Wind Down ----------------------------------------------------------- Greg Hazley at Odwyerpr.com reports that Jean Fontana, ICR managing director and a retail sector specialist, is guiding communications for DELIA*S INC. as it winds down. The Company, according to Odwyerpr.com, is relying on ICR for PR support as it navigates Chapter 11 bankruptcy. About DELIA*S INC. Launched in 1993, dELiA*s Inc., is a retailer which sells apparel, accessories, footwear, and cosmetics marketed primarily to teenage girls and young women. The dELiA*s brand products are sold through the Company's mall-based retail stores, direct mail catalogs and e-commerce Web sites. On Dec. 7, 2014, dELiA*s and eight of its subsidiaries each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y.). The Debtors have requested that their cases be jointly administered under Case No. 14-23678. As of the bankruptcy filing, dELiA*s owns and operates 92 stores in 29 states. The Debtors have tapped Piper LLP (US) as counsel, Clear Thinking Group LLC, as restructuring advisor, Janney Montgomery Scott LLC, as investment banker, and Prime Clerk LLC as claims agent. As of the Petition Date, the Debtors had $47 million in total assets and $50.5 million in liabilities. The Debtors have sought court approval of a deal for Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC, to launch going-out-of-business sales. DENDREON CORP: U.S. Trustee Opposes Plan Support Agreements ----------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the U.S. Trustee opposed Dendreon Corp.'s plan support agreement, asserting that the PSA with noteholders who hold approximately 84% of its convertible senior notes due 2016 are the result of a non-transparent process and improperly favor a selected handful of creditors over all others. According to the report, the U.S. Trustee said in a Dec. 10 court filing that the PSAs represent an attempt to elevate the rights of selected unsecured claimants into rights somewhat akin to those of a secured creditor, such as the right to be a qualified bidder and have professional fees paid without oversight. The PSAs provide that if the proposed sale process doesn't yield a transaction in excess of $275 million, the noteholders who are party to the agreements will support a reorganization plan under which their claims will be converted to equity in the reorganized company, the Bloomberg report related, citing court papers. About Dendreon With corporate headquarters in Seattle, Washington, Dendreon Corporation -- http://www.dendreon.com/-- a biotechnology company focused on the development of novel cellular immunotherapies to significantly improve treatment options for cancer patients. Dendreon's first product, PROVENGE (sipuleucel-T), was approved by the U.S. Food and Drug Administration (FDA) and became commercially available for the treatment of men with asymptomatic or minimally symptomatic castrate-resistant (hormone-refractory) prostate cancer in April 2010. Dendreon is traded on the NASDAQ Global Market under the symbol DNDN. Dendreon and its U.S. subsidiaries filed for Chapter 11 bankruptcy protection (Bankr. D. Del.) on Nov. 10, 2014. The Debtors have requested that their cases be jointly administered under Case No. 14-12515. Judge Peter J. Walsh presides over the cases. The petitions were signed by Gregory R. Cox, interim chief financial officer and treasurer. Dendreon sought bankruptcy protection after it reached agreements on the terms of a financial restructuring with certain holders of the Company's 2.875% Convertible Senior Notes due 2016 representing 84% of the $620 million aggregate principal amount of the 2016 Notes. The financial restructuring may take the form of a stand-alone recapitalization or a sale of the Company or its assets. The Debtors have engaged Skadden, Arps, Slate, Meagher & Flom LLP, as counsel; Lazard Freres & Co. LLC, as investment banker; AlixPartners, as restructuring advisors; and Prime Clerk LLC as claims and noticing agent. The Debtors disclosed $365 million in total assets and $664 million in total liabilities as of June 30, 2014. The U.S. Trustee for Region 3 has appointed five members to the Official Committee of Unsecured Creditors. DETROIT, MI: Miller Canfield Counsels City in Closing $1.28B Bonds ------------------------------------------------------------------ Law360 reported that Detroit closed sales on four bond issues totaling $1.28 billion, aimed at shoring up city finances and resolving outstanding legal issues as it emerged from an historic municipal bankruptcy, the city's bond counsel, Miller Canfield, said. According to the report, the firm said the bonds, broadly aimed at refinancing debt, paying settlements, and funding Detroit's retirement system as well as city projects, are a first-of-their kind issue designed to execute the city's Chapter 9 reorganization. About the City of Detroit The City of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit estimated more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The City's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. The Hon. Steven Rhodes oversees the bankruptcy case. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. A nine-member official committee of retired workers was appointed in the case. The Retirees' Committee is represented by Dentons US LLP. Lazard Freres & Co. LLC serves as the Retiree Committee's financial advisor. The TCR, on Dec. 18, 2014, reported that Detroit has filed a notice that the effective date of its bankruptcy-exit plan occurred on Dec. 10, 2014. U.S. Bankruptcy Judge Steven Rhodes on Nov. 12, 2014, entered an order confirming the Eighth Amended Plan for the Adjustment of Debts of the City of Detroit. DURADRIL LLC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Duradril, LLC 26009 Budde Rd, Suite D The Woodlands, TX 77381 Case No.: 14-36942 Chapter 11 Petition Date: December 19, 2014 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Hon. Karen K. Brown Debtor's Counsel: Miriam Trubek Goott, Esq. WALKER & PATTERSON, PC PO Box 61301 Houston, TX 77208 Tel: 713-956-5577 Fax: 713-956-5570 Email: mgoott@walkerandpatterson.com Total Assets: $958,904 Total Liabilities: $1.72 million The petition was signed by Gregory A. Ward, CEO. A list of the Debtor's 18 largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb14-36942.pdf EAST CLEVELAND, OH: To Decide on Bankruptcy Filing after Q1 2015 ---------------------------------------------------------------- Reuters reported that East Cleveland, Ohio, will wait until after the first quarter of 2015 to decide whether to seek bankruptcy protection, the city's finance director said, noting the filing is only one of several options under consideration. According to the report, the assessment was less dire than comments in November by Ohio's state auditor, Dave Yost, who said the small suburb of its much bigger neighbor Cleveland was on the "verge of collapse". ENDEAVOUR INT'L: Disclosures OK'd, Plan Hearing Set for Feb. 9 -------------------------------------------------------------- Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware, on Dec. 22, 2014, approved the disclosure statement explaining Endeavour Operating Corporation, et al.'s joint plan of reorganization and scheduled the confirmation hearing for Feb. 9, 2015, at 10:00 a.m. (prevailing Eastern time). Objections to the confirmation hearing are due Jan. 27, 2015. The Debtors filed with the Court an amended plan of reorganization modifying, among other things, the dates governing the solicitation of the plan and the estimated recovery for holders of general unsecured claims. The Amended Plan, dated Dec. 19, 2014, provides that it is supported by creditors who collectively hold 82.99% of the March 2018 Notes Claims (Class 3), 70.88% of the June 2018 Notes Claims (Class 4), 99.75% of the 7.5% Convertible Bonds Claims (Class 5), and 69.08% of the Convertible Notes Claims (Class 6). The Amended Plan also provides that holders of general unsecured claims will recover an estimated 15% of the total claims amount, which is estimated to be $6,000,000. The Debtors propose that a hearing to consider confirmation of the Plan be scheduled for Feb. 9, 2015, at 10:00 a.m. (Prevailing Eastern Time). In addition, the Debtors propose that the Court set the deadline to object to the confirmation of the Plan on Jan. 27, 2015 at 4:00 p.m. (Prevailing Eastern Time). A full-text copy of the Disclosure Statement is available at http://bankrupt.com/misc/ENDEAVOURds1219.pdf 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. ENTEGRA POWER: Entergy Pays $948MM for Arkansas Gas Plant --------------------------------------------------------- Law360 reported that Entergy Corp. said that its utility units in Arkansas, Louisiana and Texas will buy a 1,980-megawatt gas-fired power plant in Arkansas from bankrupt Entegra Power Group LLC for $948 million as the company looks to modernize its generation fleet in its southeastern U.S. service territory. According to the report, Entergy Arkansas Inc., Entergy Gulf States Louisiana LLC and Entergy Texas Inc. will buy the Union Power Station in El Dorado, Arkansas, which consists of four combined-cycle gas fired units each generating up to 495 megawatts of electricity. About Entergy Corp. New Orleans, La.-based Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including more than 10,000 megawatts of nuclear power, making it one of the nation's leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. About Entegra Power Group Entegra Power Group LLC and its affiliates operate an independent power company that owns one of the largest gas-fueled power plants in the United States, located in El Dorado, Arkansas. In addition, affiliate Gila River Energy Holdco LLC indirectly owns one-half of another of the country's largest gas-fueled power plants, in Gila Bend, Arizona. The Entegra entities market electric power from the two facilities to wholesale customers in the southeastern and southwestern United States. Entegra, Gila, and 10 other affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-11859) on Aug. 4, 2014. The cases are pending before the Honorable Peter J. Walsh, and the Debtors have requested that their cases be jointly administered. The Debtors have tapped Richards, Layton & Finger, P.A., as counsel, and Prime Clerk LLC as claims and notice agent. The Gila facility's direct owners are not debtors in the Chapter 11 cases, and the Gila Facility will not become property of the Debtors' estates. The Debtors notified that the effective date of the plan of reorganization for the parent debtor occurred on Sept. 30, 2014, and for subsidiaries took place on Oct. 2, 2014. ENERGY FUTURE: Kirkland Bankruptcy Fees Hit $20 Million ------------------------------------------------------- Ellen Rosen, writing for Bloomberg News, reported that Kirkland & Ellis LLP is already benefiting from being bankruptcy counsel to Energy Future Holdings Corp., the Texas power company that filed for bankruptcy in April. According to the report, the debtor listed fees of $20.5 million and $1.25 million in expenses paid to Kirkland from April 29 to Aug. 31. Gibson, Dunn & Crutcher LLP, Energy Future's special counsel for "certain corporate and litigation matters," was paid about $630,000 during the same period, and Godfrey & Kahn SC, which is acting as counsel to the fee committee, got about $580,000 from Aug. 21 to Oct. 31, the report related. 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. EVERGREEN VINTAGE: Files for Chapter 11 Bankruptcy Protection ------------------------------------------------------------- Mike Francis at Oregonlive.com reports that Evergreen Vintage Aircraft, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. Ore. Case No. 14-36770) on Dec. 11, 2014, less than a year after the dissolution of the Evergreen Aviation museum's for- profit affiliate, Evergreen International Aviation, and a month after the death of both entities' founder, Delford Smith. The Evergreen Aviation & Space Museum said in a statement on Monday that Evergreen Vintage Aircraft is a "for-profit company," separate from the non-profit museum, and that "most of our Museum's collection of over 180 aircraft and artifacts are owned by the museum or are on loan from federal government agencies. Our museum does have 25 aircraft and vehicles on loan from Evergreen Vintage Aircraft, LLC. These remain on loan. We are continuing to lease the Theater building, which is owned by Evergreen Vintage Aircraft LLC. Our Museum continues to operate as before. We have no other comment to make at this time." The Debtor estimated its assets at between $50 million and $100 million and its liabilities at between $100 million and $500 million. The petition was signed by Lisa Anderson, president and secretary. The Debtor said in court filings that it owes Canada's IMAX Corp. $50,000. In the the filings, the Debtor listed smaller amounts for other creditors and also acknowledged owing money to Umpqua Bank. Oregonlive.com relates that the museum was under state scrutiny over concerns that its finances were illegally commingled with those of the for-profit companies. According to Oregonlive.com, the attorney general dropped that probe when it was rendered moot by the collapse of Evergreen's for-profit aviation businesses, but asked the Internal Revenue Service to consider whether the museums and water park were legitimate not-for-profit organizations that merited a tax exemption. Nicholas J Henderson, Esq., at Motschenbacher & Blattner, LLP, serves as the Debtor's bankruptcy counsel. Judge Randall L. Dunn presides over the case. McMinnville, Oregon-based Evergreen Vintage Aircraft, Inc., owns some aircraft and property at the Evergreen Aviation & Space Museum and Wings and Waves Waterpark. EXIDE TECHNOLOGIES: Shareholders Lose Bid for Official Committee ---------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that U.S. Bankruptcy Judge Kevin Carey in Delaware has issued an order saying shareholders of Exide Technologies shouldn't be given an official committee because they didn't present evidence that the company is worth enough to pay all of its debts and still have something left for shareholders. 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. GENAERA CORP: 3rd Circ. Affirms Revival Of Investor Suit -------------------------------------------------------- Law360 reported that the Third Circuit stood behind its decision to revive a class action alleging that biotech company Genaera Corp. jettisoned assets at "fire sale" prices, despite claims that the litigation was time-barred and ran afoul of basic pleading standards. According to the report, in a brief order with little elaboration, the appeals court refused a rehearing bid from the company's officers over its October decision siding with shareholders of now-defunct Genaera. As previously reported by The Troubled Company Reporter, a group of officers of the defunct biotech company Genaera have urged the Third Circuit to reconsider a recent ruling finding a judge wrongly tossed a putative class action claiming the company undervalued assets sold through a liquidating trust, saying it contradicts U.S. Supreme Court precedent. The group argues that the majority 2-1 precedential opinion conflicts with Supreme Court authority established in Bell Atlantic Corp. v. Twombly and Ashcroft v. Iqbal, which requires a plaintiff to plead facts sufficient to "state a claim for relief that is plausible on its face." The case is Schmidt v. Skolas et al., case number 13-3750, in the U.S. Court of Appeals for the Third Circuit. GLOBAL OUTREACH: Dentons Denies Playing Part in Botched Loan ------------------------------------------------------------ Law360 reported that Dentons urged a New Jersey federal court to toss a third-party complaint filed by Mandelbaum Salsburg Lazris & Discenza PC seeking malpractice indemnification in a dispute over a $41 million loan for a failed resort, arguing the underlying suit doesn't accuse Dentons of playing a part in the alleged negligence. According to the Law360 report, the firm slammed West Orange, New Jersey-based law firm Mandelbaum Salsburg's claim that Dentons breached its duty of care to YA Global Investments LP during closing for a loan. As previously reported by The Troubled Company Reporter, Greenbaum, Rowe, Smith & Davis, has filed on behalf of Mandelbaum Salsburg Lazris & Discenza a third-party complaint against Dentons and three of its attorneys -- John Cleary II, James Jasaitis and David Papier -- in a legal malpractice suit brought by the lender, hedge fund YA Global Investments, over a $41 million construction loan to Global Outreach, S.A., in 2007 that went into default. The case is YA GLOBAL INVESTMENTS, L.P. et al v. MANDELBAUM, SALSBURG, GOLD, LAZRIS & DISCENZA, P.C. et al., Case No. 2:12-cv- 00219 (D.N.J.). Headquartered in Morristown, New Jersey, Global Outreach, S.A. -- dba Global Outreach, Sociedad Anonima -- filed for Chapter 11 protection (Bankr. D.N.J. Case No. 09-15985) on March 12, 2009. Kasen & Kasen represents the Debtor in its restructuring effort. The Debtor estimated assets of $100 million to $500 million and debts of $50 million to $100 million. The U.S. Trustee for Region 3 appointed six creditors to serve on an official committee of unsecured creditors. GT ADVANCED: Bid for Equity Committee Appointment Denied -------------------------------------------------------- BankruptcyData reported that the U.S. Bankruptcy Court denied the motion filed on behalf of investors seeking the appointment of an official committee of equity security holders in the GT Advanced Technologies case. According to BData, the notice states, "Denied on the grounds that (1) in the first instance, such requests should be made to the United States Trustee; and (2) the deadline for objecting to the proposed settlement with apple has already passed." About GT Advanced Technologies Headquartered in Merrimack, New Hampshire, GT Advanced Technologies Inc. -- http://www.gtat.com/-- produces materials and equipment for the electronics industry. On Nov. 4, 2013, GTAT announced a multiyear supply deal with Apple Inc. to produce sapphire glass material for use in consumer electronics products. Under the deal, Apple would provide GTAT with a prepayment of approximately $578 million paid in four installments and, starting in 2015, GTAT would reimburse Apple for the prepayment over a five-year period. GT is a publicly held corporation whose stock was traded on NASDAQ under the ticker symbol "GTAT." GTAT was de-listed from the NASDAQ stock exchange in October 2014. As of June 28, 2014, the GTAT Group's unaudited and consolidated financial statements reflected assets totaling $1.5 billion and liabilities totaling $1.3 billion. As of Sept. 29, 2014, GTAT had $85 million in cash, $84 million of which is unencumbered. On Oct. 6, 2014, GT Advanced Technologies and eight affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.H. Lead Case No. 14- 11916). GT says that it has sought bankruptcy protection due to a severe liquidity crisis brought about by its issues with Apple. The Debtors have tapped Nixon Peabody LLP and Paul Hastings LLP as attorneys and Kurtzman Carson Consultants LLC as claims and noticing agent. The U.S. Trustee has named seven members to the Official Committee of Unsecured Creditors. The Committee' professionals are Kelley Drye as its bankruptcy counsel; Devine, Millimet & Branch, Professional Association as local counsel; EisnerAmper LLP as financial advisors; and Houlihan Lokey Capital, Inc. as investment banker. GTAT has reached a settlement with Apple. The settlement gives Apple an approved claim for $439 million secured by more than 2,000 sapphire furnaces that GT Advanced owns and has four years to sell, with proceeds going to Apple. In addition, Apple gets royalty-free, non-exclusive licenses for GTAT's technology. GULFCO HOLDING: Loses Bid to Overturn Ch. 11 Dismissal ------------------------------------------------------ Law360 reported that a Delaware federal judge rejected an appellate bid by Gulfco Holding Corp. aimed at reviving its bankruptcy case, finding no grounds to overturn a decision that sided with major creditor Prospect Capital Corp. and ended the oil drilling equipment holding company's stay in Chapter 11. According to the report, at a hearing in Wilmington, U.S. District Judge Richard G. Andrews found that the bankruptcy court did not abuse its discretion or commit any error in granting the motion to dismiss sought by private equity firm Prospect Capital, Gulfco's primary creditor. Ruling from the bench, Judge Andrews said the lower court properly applied the Third Circuit's factors that can form a basis for dismissal of a bankruptcy, the report related. The appeal is Gulfco Holding Corp. v. Prospect Capital Corp., case number 1:14-cv-00678, in the U.S. District Court for the District of Delaware. About Gulfco Holding Headquartered in Wilton, Connecticut, Gulfco Holding Corp. filed a bare-bones Chapter 11 petition (Bankr. D. Del. Case No. 13-13113) on Nov. 27, 2013. The Hon. Brendan Linehan Shannon presides over the case. Michael Jason Barrie, Esq., at Benesch Friedlander Coplan & Aronoff LLP represents the Debtor in its restructuring effort. The Debtor disclosed $23,000,576 in assets and $46,375,863 in liabilities as of the Chapter 11 filing. According to the list of top unsecured creditors, PNC Bank, National Association is owed $5.4 million and Prospect Capital Corp. has a disputed claim of $40.95 million on account of its shares of stock in Gulf Coast Machine & Supply Company. Altus Capital Partners II, L.P. and its affiliates, Franklin Park Co-Investment Fund, L.P., David LeBlanc, and Steven Tidwell own shares in the company. Elizabeth A. Burgess, as president and CEO, signed the Chapter 11 petition. No creditors' committee has been appointed in the case. HEARUSA INC: Siemens' $3.6M Settlement With Stockholders OK'd ------------------------------------------------------------- Law360 reported that a New Jersey federal judge has granted final approval to a $3.6 million settlement between Siemens Hearing Instruments Inc. and former HearUSA stockholders who filed a putative class action accusing Siemens of artificially deflating HearUSA's stock price, forcing its bankruptcy to acquire it more cheaply. According to a Dec. 5 order, U.S. District Court Judge Madeline Cox Arleo signed off on the deal between Siemens Hearing and MTB Investment Partners LP, a New York-based investment fund that was the lead plaintiff in the class action, which alleged Siemens sunk HearUSA's stock price by claiming in public filings that it had no intent to acquire the company, the Law360 report related. The case is MTB Investment Partners LP, et al., v. Siemens Hearing Instruments Inc., case number 2:12-cv-00340, in the U.S. District Court for the District of New Jersey. About HearUSA Inc. HearUSA, Inc., which sold hearing aids in 10 states, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 11-23341) on May 16, 2011, to sell the business for $80 million to William Demant Holdings A/S, absent higher and better offers. As a result of competitive bidding and auction, HearUSA's business was sold to Siemens Hearing Instruments Inc., the principal supplier and primary secured lender, for a price calculated at the time to produce $39.7 million for common shareholders. HearUSA said the Siemens acquisition was worth $129 million, plus the waiver of a distribution on the 6.4 million shares of HearUSA stock that Siemens owned. The liquidating Chapter 11 plan was confirmed in May 2012 and implemented in June. Following the sale, the Debtor changed its name to "HUSA Liquidating Corporation". The Debtor said that assets are $65.6 million against debt of $64.7 million as of March 31, 2010. HearUSA owed $31.3 million to Siemens. Judge Erik P. Kimball presides over the case. Brian K. Gart, Esq., Paul Steven Singerman, Esq., and Debi Evans Galler, Esq., at Berger Singerman, P.A., represent the Debtor. The Debtor has tapped Bryan Cave LLP as special counsel; Sonenshine Partners LLC, investment banker; Development Specialist Inc., restructuring advisor and Joseph J. Luzinski as chief restructuring officer; and AlixPartners LLC, as communications consultant. Trustee Services, Inc., serves as claims and notice agent. The Official Committee of Unsecured Creditors has been appointed in the case. Robert Paul Charbonneau, Esq., and Daniel L. Gold, Esq., at Ehrenstein Charbonneau Calderin, represent the Creditors Committee. An Official Committee of Equity Security Holders has also been appointed. Mark D. Bloom, Esq., at Greenberg Traurig P.A., in Miami, Fla., represents the Equity committee as counsel. HELLAS TELECOM: Noteholders' $333M Suit Against Sponsors Revived ---------------------------------------------------------------- Law360 reported that a New York federal judge reinstated a bond trustee's lawsuit targeting the private equity owners of defunct Hellas Telecommunications II SCA for EUR268 million ($333 million) in defaulted debt following their perpetration of an alleged scheme to enrich themselves while driving the company into insolvency. According to the report, U.S. District Judge J. Paul Oetken reversed an earlier decision tossing a suit brought by indenture trustee Wilmington Trust Co. and Cortland Street Recovery Corp., a special-purpose vehicle set up by unhappy Hellas noteholders for pursuing litigation over the Greek telecom's 2009 collapse. The case had been dismissed on jurisdictional grounds when Judge Oetken questioned whether WTC was a "naked trustee" without the authority to act on the underlying noteholders' behalf, the report related. In response, the plaintiffs submitted a revamped version that also dropped claims against two foreign investment funds, the report further related. The case is Cortland Street Recovery Corp. et al. v. Aliberti et al., case number 1:12-cv-08686, in the U.S. District Court for the Southern District of New York. About Hellas Telecommunications In February 2007, Hellas Telecommunications was purchased from TPG Capital LP and Apax Partners by the Italian telecommunications giant Weather Group. The Company later suffered liquidity problems and commenced administration proceedings in the U.K. in November 2009. The administrators sold 100% of the shares of Wind Hellas to the existing owners, the Weather Group. An order placing the Company into liquidation was entered on Dec. 1, 2011. Andrew Lawrence Hosking and Carl Jackson, as Joint Liquidators petitioned for the Chapter 15 protection for the Company (Bankr. S.D.N.Y. Case No. 12-10631) on Feb. 16, 2012. Mr. Jackson was later succeeded by Simon James Bonney, and then recently by Bruce Mackay. Bankruptcy Judge Martin Glenn presides over the Chapter 15 case. The Debtor estimated assets and debts of more than $100,000,000. The Debtor did not file a list of creditors together with its petition. The Foreign Representatives commenced the lawsuit against various entities, captioned as, Hosking v. TPG Capital Management, L.P., et al., No. 14-01848 (MG) (Bankr. S.D.N.Y. March 13, 2014). TPG is represented by Paul M. O'Connor, III, Esq., and Andrew K. Glenn, Esq., at Kasowitz, Benson, Torres, & Friedman, LLP of New York, NY. APAX is represented by Robert S. Fischler, Esq., and Stephen Moeller-Sally, Esq., at Ropes & Gray LLP of New York, NY. TCW is presented by Wayne S. Flick, Esq., and Amy C. Quartarolo, Esq., at Latham & Watkins LLP of Los Angeles, CA. Nikesh Aurora is represented by William F. Gray, Jr., Esq., and Alison D. Bauer, Esq., at Torys LLP of New York, NY and Michael A. Sherman, Esq., at Stubbs Alderton & Markiles, LLP of Sherman Oaks, CA. U.S. counsel to the Foreign Representatives as against all Defendants except Deutsch Bank AG and Nikesh Arora are Howard Seife, Esq., Thomas J. McCormack, Esq., Andrew Rosenblatt, Esq., and Marc D. Ashley, Esq., at CHADBOURNE & PARKE LLP. U.S. counsel to the Foreign Representatives as against Deutsch Bank AG and Nikesh Arora are Alexander H. Schmidt, Esq., Alan McDowell, Esq., and Jeremy Cohen, Esq., at WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP. HENRY BUSHKIN: Johnny Carson's Atty Sues Counsel Over Book ---------------------------------------------------------- Law360 reported that onetime Johnny Carson lawyer Henry "Bombastic" Bushkin is suing the attorneys that handled his Chapter 7 bankruptcy, alleging Wednesday in a California state court complaint that they failed to list Bushkin's best-selling Carson biography as an asset in the bankruptcy, an omission that got Bushkin sued. According to the report, Bushkin accused Leslie A. Cohen and her firm, Leslie Cohen Law PC, of legal malpractice for her alleged failure to address the value of royalties from the book, "Johnny Carson," when Bushkin was discharged from bankruptcy in 2012. HOUSTON REGIONAL: Astros, Rockets to Pay $26MM for Collateral ------------------------------------------------------------- Law360 reported that the Houston Rockets and Houston Astros will pay more than $26 million to Comcast Corp. to cover cash collateral and furniture, fixtures and equipment, the companies said, part of a bankruptcy plan for a now-defunct Houston sports network. According to the report, as part of the Chapter 11 plan that allowed DirecTV and AT&T to relaunch the Houston Regional Sports Network as ROOT Sports Southwest, the two teams agreed to make a stalking horse bid of $26.2 million to purchase Comcast's sale collateral after the collateral went through auction. Of the bid, $18.7 million went toward paying Comcast for its lender collateral, and $7.5 million went toward the FF&E collateral, the report said, citing court documents. 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. HUNTINGTON INGALLS: Fitch Raises IDR to 'BB+'; Outlook Stable ------------------------------------------------------------- Fitch Ratings has upgraded Huntington Ingalls Industries, Inc.'s (HII) Issuer Default Rating (IDR) and senior unsecured debt ratings to 'BB+' from 'BB'. Fitch has also affirmed HII's senior secured facilities at 'BBB-'. The Rating Outlook is Stable. The ratings cover approximately $1.7 billion of outstanding debt. KEY RATING DRIVERS The upgrade is supported by HII's improved operating performance which resulted in higher than expected margins, stronger free cash flow generation (FCF - operating cash flows less CapEx and dividends), lower leverage (Debt to EBITDA) and lower FFO adjusted leverage. For the last twelve months (LTM) ending Sept. 30, 2014, the company had gross leverage of 1.7x, down from 2.3x and 3.2x at the end of 2013 and 2012, respectively. Fitch expects the company's leverage will decline further by the end of 2015 due to improving EBITDA margins and anticipated amortization of the senior secured term loan. The ratings are also supported by Fitch's expectation of continued improvement of operating results driven by cost reduction initiatives and improved execution, solid liquidity, expected de- levering over the next two years and medium-sized acquisitions which are expected to diversify HII's revenues from nearly 100% exposure to the U.S. government's military spending. Additionally, the company has a significant role in the U.S. Navy's 30 year shipbuilding plan released in July 2014. HII is a sole source manufacturer of more than 70% of its revenues. HII's credit metrics are solid for the new rating level. The company has the financial strength to withstand pressure on its revenues and profits, but Fitch believes a non-investment grade rating is still appropriate given concerns about low customer and product diversification of the company. Additionally, HII has a significant exposure to program execution risk as evidenced by the underperformance of its Ingalls segment within the past few years due to troubles with LPD and LHA ships. Fitch's other rating concerns include large annual net working capital swings, increased dividends, and the company's exposure to risks to core defense spending after fiscal 2015. HII generates nearly all of its revenues from the U.S. government, exposing the company to changes in plans regarding the fleet needs of the Department of Defense (DoD) and the Department of Homeland Security. In addition, Fitch is concerned with future cash deployment actions as the company continues refining its cash deployment strategy. The notching up of the senior secured credit facility by one rating level from the IDR of 'BB+' to 'BBB-' is supported by the coverage provided by HII's tangible assets and operating EBITDA compared to the fully drawn facility. The collateral for the facility includes substantially all of HII's assets with the exception of the Avondale shipyard and a few other exclusions. HII's EBITDA margins have increased significantly and reached 14.3% during the first three quarters of 2014, up from 11.3% and 8.4% in 2013 and 2012, respectively. HII generated approximately $606 million of cash flow from operating activities during the last 12 months ended (LTM) Sept. 30, 2014, up significantly from $236 million at the end of 2013. HII's FCF totaled $421 million during the LTM ended Sept. 30, 2014, up from $72 million at the end of 2013 primarily due to better operating results and lower working capital requirements. Fitch expects HII will continue to generate more than $250 million FCF annually. HII focuses its cash deployment on bolt-on acquisitions, capital expenditures, dividends, share repurchases to offset dilutions and pension contributions. As of Sept. 30, 2014, HII had liquidity of $1.4 billion, including $769 million in cash and $619 million availability under its $650 million domestic credit revolving facility, after giving effect to $31 million of outstanding letters of credit. Fitch expects HII's liquidity will likely decline as the company continues refining its cash deployment strategies. At the end of 2013, HII's pension plans were underfunded by approximately $420 million (91% funded), a significant improvement over the $1.3 billion (74% funded) deficit at the end of 2012. The improvement is largely due to an increase in interest rates, positive asset returns, and contributions. The pension benefit obligation (PBO) was $4.3 billion at the end of 2013, while the other postretirement benefit obligation was $616 million. Fitch expects HII's funded status for year end 2014 to deteriorate slightly due to a decline in interest rates and new mortality tables, offset by a strong year of asset gains and $123 million in discretionary contributions. The pension deficit and required contributions are mitigated by expected reimbursements from the U.S. government which treats a part of pension costs as allowable and reimbursable costs under some government contracts. Fitch expects HII's CAS reimbursements will fully offset its funding requirements over the next several years resulting in net cash inflows. INDUSTRY OVERVIEW HII generates almost all of its revenues from the U.S. government, primarily the DoD. As a result, defense spending is a driver of HII's financial performance and credit quality. U.S. defense spending is stabilizing and Fitch expects it could increase modestly, though there are still risks to the downside from high federal debt levels, delays in passing defense budgets, or changes in overall defense strategy. On the other hand, the change in control of Congress and a rising global threat environment could be catalysts for increases in global defense budgets. The sequester remains incorporated into Fitch's defense forecasts, so changes in timing or amounts could affect the outlook in the positive direction. Despite spending cuts and ambiguity in long-term defense spending, Fitch believes HII is in a better position than most contractors to withstand changes in defense spending. The length of HII's contracts offset much of the impact from potential budget cuts. Fitch believes that it is difficult to implement partial budget cuts to many, if not all, of HII's programs. HII's performance in 2012 and 2013 demonstrated its ability to withstand pressures from changes in U.S. government defense spending. HII is exposed to the changes of U.S. Navy's shipbuilding plans; however, such changes are long term in nature. RATING SENSITIVITIES Fitch may consider a positive rating action if HII's overall credit metrics continue to strengthen, including if its leverage and FFO adjusted leverage decline and remain in the range of 1.25x - 1.5x and 2x - 2.5x, respectively. Fitch is not likely to take a positive rating action until U.S. defense spending trends stabilize; the company has a defined cash deployment strategy; and it completes the Avondale shipyard closure. Given the company's low diversification and its exposure to project execution risks, Fitch expects HII would need to maintain stronger than average credit metrics and financial flexibility in order to obtain investment grade ratings. A negative rating action is not likely in the near future; however, it would be considered should the company's leverage and FFO adjusted leverage increase and remain above 2.5x and 3.5x, respectively. Other metrics in addition to leverage would also be considered in determining negative rating actions. Fitch has taken these rating actions: -- IDR upgraded to 'BB+'; -- Senior secured bank facilities affirmed at 'BBB-'; -- Senior unsecured debt upgraded to 'BB+'. The Rating Outlook is Stable. IAMGOLD CORP: S&P Cuts Corp. Rating to 'B+', Off Watch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its long-term corporate and issue-level ratings on Toronto-based gold producer IAMGOLD Corp. to 'B+' from 'BB-', and removed the ratings from CreditWatch, where they were placed with negative implications Oct. 3. The '4' recovery rating on the company's unsecured notes is unchanged. The recovery rating, which is based on Standard & Poor's updated recovery analysis that excludes Niobec, reflects S&P's view of average (30%-50%) recovery in a simulated default scenario. "The downgrade primarily reflects our expectation that IAMGOLD's core credit ratios and operating efficiency will weaken following the sale of the company's Niobec Inc. subsidiary," said Standard & Poor's credit analyst Jarrett Bilous. S&P estimates that the subsequent decline in earnings and cash flow will increase the volatility of the company's profitability, and result in estimated adjusted debt-to-EBITDA and funds from operations (FFO)-to-debt ratios that fall within the range commensurate with an "aggressive" financial risk assessment. Standard & Poor's now views IAMGOLD's business risk profile as "vulnerable" and its financial risk profile as "aggressive," which results in a 'b' anchor score. S&P revised its financial risk assessment to "aggressive" from "significant" primarily to reflect the expected deterioration in the company's core credit ratios that primarily result from the Niobec sale, and are calculated on a gross debt basis. The company's business risk profile was also revised to "vulnerable" from "weak," based mainly on S&P's view of the company's weaker operating efficiency and increase in the volatility of its profitability. S&P also considers IAMGOLD's liquidity position as "strong," which benefits from the US$500 million in proceeds expected from the Niobec sale, and has a positive one-notch impact on the anchor score. This results in a final rating of 'B+'. IAMGOLD is contemplating a range of strategic options following the Niobec sale that are most likely to include investments in its existing gold portfolio, a gold-focused acquisition that improves the company's cost profile, and debt repayment. The company has not provided a timeline but S&P expects it to make a decision within the next 12 months. However, a change to S&P's business risk assessment is unlikely over this period, regardless of how the sale proceeds are deployed. In S&P's view, a higher assessment would require IAMGOLD to own several more operating mines or achieve significant improvement in its operating efficiency, which S&P views as unlikely in the next two years based on the aforementioned options. The stable outlook reflects S&P's view that IAMGOLD will maintain core credit ratios consistent with an aggressive financial risk profile, with strong liquidity. S&P estimates that the company will generate an adjusted debt-to-EBITDA ratio in the mid-to-high 4x area and FFO-to-debt below 20% over the next two years, based on an average gold price of US$1,200 per ounce. S&P's stable outlook also takes into account the potential for modest improvement in estimated core ratios, which will depend on the allocation of Niobec sale proceeds. A negative rating action could result from higher-than-expected cost pressure or modestly lower average gold prices that lead to adjusted debt-to-EBITDA above 5x. In S&P's view, this could result from an average gold prices approaching US$1,100 per ounce in 2015. In addition, S&P would expect to downgrade the company with the erosion of IAMGOLD's currently strong liquidity. Although unlikely over the next 12 months, S&P would consider an upgrade if the company generated an adjusted debt-to-EBITDA ratio below 3x on a sustained basis, or added several producing assets via acquisitions. In S&P's view, a sustained improvement in adjusted debt-to-EBITDA would require significant debt reduction (likely well above US$100 million) with an improvement in gold margins. KCG HOLDINGS: S&P Raises Rating on $305MM Sr. Sec. Notes to 'BB-' ----------------------------------------------------------------- As previously announced, on Dec. 11, 2014, Standard & Poor's Ratings Services raised its issue rating on KCG Holdings Inc.'s $305 million senior secured second-lien notes due 2018 by one notch to 'BB-' from 'B+'. Standard & Poor's published its revised nonbank financial institutions (NBFI) rating methodology and revised issue rating methodology for NBFIs and nonbank financial services companies on Dec. 9, 2014. S&P also affirmed its 'BB-' issuer credit rating on the company. The outlook is stable. In April 2014, KCG repaid its entire $535 million first-lien senior-secured term loan, which it issued at the time of the Knight and GETCO merger, less than one year after the close of the merger in July 2013. S&P believes KCG's management does not plan to raise additional debt that will rank ahead of the second-lien notes. Additionally, there is no revolver at the holding company level that ranks as priority debt. Accordingly, given the lack of higher priority debt obligations and based on our revised issue rating criteria, S&P raised its issue rating on the company's senior secured second-lien notes to the same level as the issuer credit rating. RATINGS SCORE SNAPSHOT Issuer Credit Rating BB-/Stable/-- SACP bb+ Anchor bbb- Entity-Specific Anchor Adjustment 0 Business Position Moderate (-1) Capital, Leverage, and Earnings Very Strong (2) Risk Position Moderate (-1) Funding and Liquidity Moderate and Adequate-High (-1) Comparable Ratings Analysis 0 External Influence 0 Government Influence 0 Group Influence 0 Rating Above The Sovereign 0 LAKE LAS VEGAS: Highland Wins $40MM Verdict Against Credit Suisse ----------------------------------------------------------------- Highland Capital Management L.P. on Dec. 19 disclosed that a Highland-managed entity, Claymore Holdings LLC, won a $40 million verdict against Credit Suisse after a Texas State Court jury found the Swiss firm concealed key information in order to fraudulently induce Highland to participate in a 2007 refinancing of the Lake Las Vegas development, including primarily concealing relevant facts and conspiring with appraisers to inflate valuation. "The avarice and reckless disregard displayed by Credit Suisse for lenders to Lake Las Vegas and in other, similar deals, such as Yellowstone, Promontory, Tamarack, Ginn, Turtle Bay, Rhodes Homes, Flag (Anguilla), and North Las Vegas, was the most egregious behavior we had seen in 30 years," said James Dondero, Highland's Co-Founder and President. "We are proud to have recovered damages for our funds and investors." The 12-member jury found Credit Suisse liable for fraud after a three-week trial in Dallas. Claymore Holdings accused Credit Suisse of fraudulently manipulating the property's appraisal, artificially inflating the value of the Lake Las Vegas Development. According to the 2013 lawsuit, Claymore Holdings believes the appraisal methodology was concocted by David Miller, Credit Suisse's Co-Head of Global Credit, and promoted by Dana Klein, Managing Director at Credit Suisse, after prior appraisals failed to place sufficient value on the Lake Las Vegas collateral to warrant the $540 million refinancing. "We pursued this litigation only after repeated attempts to reach a settlement with Credit Suisse. We simply wanted Credit Suisse to take responsibility for contriving and manipulating the appraisal process," said Scott Ellington, Chief Legal Officer and General Counsel for Highland. "We want to thank the jury for their service and are pleased they held Credit Suisse accountable for its actions." During trial, the evidence showed that Credit Suisse increased the value of the collateral by more than $230 million over a single weekend. Credit Suisse, as agent lender for the refinancing, never disclosed the change in the value to the lender group, Claymore Holdings said in the lawsuit. Despite telling investors that Credit Suisse also was putting its own money into the investment, Credit Suisse began taking steps to exit its own position on the very day the loan refinancing closed. Months later, Lake Las Vegas filed for bankruptcy protection and the property ultimately sold for less than 2% of the original appraised value. As detailed in recent media reports, the appraisal firms and the deal sponsor settled for approximately $150 million in aggregate. Claymore Holdings was represented by William T. Reid IV, Lisa S. Tsai, and Nathaniel J. Palmer of Reid Collins & Tsai LLP. Credit Suisse was represented by T. Ray Guy and David J. Lender of Weil, Gotshal & Manges LLP and Jeffrey M. Tillotson of Lynn, Tillotson, Pinker & Cox LLP. About Highland Capital Management Highland Capital Management is an SEC-registered investment adviser which, together with its affiliates, has approximately $19 billion of assets under management. Founded in 1993 by Jim Dondero and Mark Okada, Highland is one of the largest and most experienced global alternative credit managers. Highland's strategies include collateralized loan obligations (CLOs), high yield bonds, distressed credit, public and private equities, structured products and natural resources. About Lake Las Vegas Headquartered in Henderson, Nevada, Lake at Las Vegas Joint Venture, LLC and 14 of its debtor-affiliates -- http://www.lakelasvegas.com/-- are owners and developers of 3,592-acre residential and resort destination Lake Las Vegas Resort in Las Vegas, Nevada. Centered around a 320-acre man-made lake, Lake Las Vegas contains more than 9,000 residential units, and also includes two luxury resort hotels (a Loews and a Ritz- Carlton), a casino, a specialty retail village shopping area, marinas, three signature golf courses and related clubhouses, and other real property. The Debtors filed separate petitions for Chapter 11 relief (Bankr. D. Nev. Lead Case No. 08-17814) on July 17, 2008. When Lake at Las Vegas Joint Venture, LLC, filed for protection from its creditors, it estimated assets of $100 million to $500 million, and debts of $500 million to $1.0 billion. Courtney E. Pozmantier, Esq., Martin R. Barash, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, Jason D. Smith, Esq., at Santoro, Driggs, Walch, Kearney, Holley & Thompson, Jeanette E. McPherson, Esq., Lenard E. Schwartzer, Esq., at Schwartzer & McPherson Law Firm, represent the Debtors as counsel. Kaaran E. Thomas, Esq., Ryan J. Works, Esq., at McDonald Carano Wilson LLP, represent the Official Committee of Unsecured Creditors as counsel. LEHMAN BROTHERS: Barclays Fighting to Hold on to Trademark ---------------------------------------------------------- Law360 reported that Barclays PLC has largely discarded the "Lehman Brothers" brand since it acquired much of the bankrupt investment firm during the 2008 financial crisis, but court records show that it's now fighting at the trademark office to prove that it still controls the rights to the infamous name. According to the report, it's hard to find Barclays making much mention these days of Lehman -- the storied American investment bank whose dramatic collapse under the weight of toxic mortgage- backed securities drove the global financial crisis into overdrive. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). 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. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. As of Oct. 2, 2014, Lehman's total distributions to unsecured creditors have amounted to $92.0 billion. As of Sept. 30, 2014, the brokerage trustee has substantially completed customer claims distributions, distributing more than $106 billion to 111,000 customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. LEHMAN BROTHERS: Files 61st Status Report on Claims Settlement -------------------------------------------------------------- Weil Gotshal & Manges LLP, Lehman's legal counsel, filed its 61st status report on the settlement of claims it negotiated through the so-called alternative dispute resolution process. The report noted that Lehman entered into settlements with counterparties in three ADR matters as a result of mediation. Upon closing of those settlements, the company will recover a total of $2,766,409,216. Settlements have now been reached in 381 ADR matters involving 497 counterparties, the report further said. As of Dec. 10, 195 of the 209 ADR matters that reached the mediation stage and concluded were settled through mediation, according to the report. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). 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. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. As of Oct. 2, 2014, Lehman's total distributions to unsecured creditors have amounted to $92.0 billion. As of Sept. 30, 2014, the brokerage trustee has substantially completed customer claims distributions, distributing more than $106 billion to 111,000 customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. LEHMAN BROTHERS: FOGADE Wins Nod to Tap Diaz Reus as Agent ---------------------------------------------------------- Judge Shelley Chapman signed off on an order authorizing Fondo de Proteccion Social de los Depositos Bancarios (FOGADE) to designate Diaz Reus & Targ, LLP as its agent in connection with the distributions it will receive from Lehman Brothers Holdings Inc. and its brokerage arm. The bankruptcy judge ordered that all distributions FOGADE will receive on account of the claims of Banco Canarias De Venezuela, C.A. and Credican, C.A. be paid to the trust account of the Miami- based law firm. Diaz Reus serves as legal counsel of FOGADE, the agency appointed by a Venezuelan regulator to liquidate Banco Canarias and Credican. Credican asserts a claim against Lehman in the amount of $64.4 million. Meanwhile, Banco Canarias asserts two claims against the company aggregating about $17.56 million and another claim against its brokerage unit. FOGADE is represented by: Diaz Reus & Targ, LLP 100 S.E. 2nd Street 3400 Miami Tower Miami, FL 33131 Tel: (305) 375-9220 Fax: (305) 375-8050 E-mail: cgonzalez@diazreus.com About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). 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. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. As of Oct. 2, 2014, Lehman's total distributions to unsecured creditors have amounted to $92.0 billion. As of Sept. 30, 2014, the brokerage trustee has substantially completed customer claims distributions, distributing more than $106 billion to 111,000 customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. LEHMAN BROTHERS: LBI & Athlion Settle $47.95-Million Claim ---------------------------------------------------------- The official liquidating Lehman Brothers Holdings Inc.'s brokerage sought and obtained court approval of an agreement that would resolve Athilon Capital Corp.'s $47.95 million claim. Under the agreement, approved on Dec. 17 by U.S. Bankruptcy Judge Shelley Chapman, Athilon will get a general unsecured creditor claim of $5.5 million against the brokerage. The agreement can be accessed for free at http://is.gd/jQaiBe Athilon can be reached at: Patrick B. Gonzalez Chief Executive Officer Athilon Structured Investment Advisors LLC Two Grand Central Tower, 32nd Floor New York, NY 10017 Telephone: (212) 457-3157 Facsimile: (212) 457-3158 Email: Patrick.Gonzalez@athilon.com About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). 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. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. As of Oct. 2, 2014, Lehman's total distributions to unsecured creditors have amounted to $92.0 billion. As of Sept. 30, 2014, the brokerage trustee has substantially completed customer claims distributions, distributing more than $106 billion to 111,000 customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. LEHMAN BROTHERS: Files Suit to Disallow Ella E.M. Claim ------------------------------------------------------- Lehman Brothers Holdings Inc. has filed a lawsuit seeking to disallow Ella E.M. Brown Charitable Circle's $6.12 million claim against the investment bank. The claim stemmed from the early termination of Ella E.M.'s swap agreement with Woodlands Commercial Corp., a Lehman subsidiary, following the bankruptcy filing of its parent company in 2008. Lehman said Ella E.M. violated the swap agreement when it sought payment from the investment bank when in fact it should be the one paying Woodlands. Woodlands was "in the money" by as much as $11 million when Ella E.M. terminated the swap agreement, which means the latter was required to calculate and then pay the amount it owes Woodlands in accordance with the terms of the agreement, Lehman said in a complaint filed with the U.S. Bankruptcy Court in Manhattan. In its complaint, Lehman also seeks payment of not less than $11 million, plus interest and legal costs. The case is Lehman Brothers Holdings Inc., Woodlands Commercial Corp. vs. Ella E.M. Brown Charitable Circle, Case No. 14-02390 (Bankr. S.D.N.Y.). About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). 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. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. As of Oct. 2, 2014, Lehman's total distributions to unsecured creditors have amounted to $92.0 billion. As of Sept. 30, 2014, the brokerage trustee has substantially completed customer claims distributions, distributing more than $106 billion to 111,000 customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. LEHMAN BROTHERS: Sues Olin College to Recover $2 Million -------------------------------------------------------- Lehman Brothers Holdings Inc. has sued Franklin W. Olin College of Engineering, Inc., over amounts owed on swap agreements with the company's special financing unit. Lehman seeks to recover more than $2 million in connection with the early termination of the swap agreements triggered by the bankruptcy filing of the company and Lehman Brothers Special Financing Inc. "Had Olin College so calculated its loss, as it was contractually obligated to do, it would have determined that it owed LBSF millions of dollars more than what it paid," the company said in a complaint filed with the U.S. Bankruptcy Court in Manhattan. Olin College only paid about $6 million, according to Lehman, which is seeking to recover more than $2 million, plus interest. The case is Lehman Brothers Holdings Inc. vs. Franklin W. Olin College of Engineering, Inc., Case No. 14-02391 (Bankr. S.D.N.Y.). About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). 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. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. As of Oct. 2, 2014, Lehman's total distributions to unsecured creditors have amounted to $92.0 billion. As of Sept. 30, 2014, the brokerage trustee has substantially completed customer claims distributions, distributing more than $106 billion to 111,000 customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. LEHMAN BROTHERS: Sues Utah Housing Over Derivatives --------------------------------------------------- Lehman Brothers Holdings Inc. has sued Utah Housing Corp. over amounts owed on derivatives contracts with two Lehman subsidiaries. In a complaint filed with the U.S. Bankruptcy Court in Manhattan, the company said Utah Housing "failed to calculate properly and in good faith" the amounts it owes Lehman Brothers Special Financing Inc. and Lehman Brothers Financial Products Inc. when it terminated the contracts early. According to the complaint, Utah Housing only paid $32.35 million to Lehman's special financing unit, which was owed about $54.3 million as of the termination dates. Meanwhile, the other Lehman subsidiary, which was owed $21.4 million, only received more than $15.9 million. "Utah Housing improperly retained a gain of many millions of dollars in excess of the amounts it paid to LBSF and LBFP," Lehman said in the complaint. The lawsuit is the latest legal move in the fight between Lehman and those derivatives counterparties that allegedly took advantage of its bankruptcy to reap improper windfalls. Swaps, options and other derivatives still represent a significant source of cash for Lehman creditors waiting to get paid back more than six years after the company's bankruptcy filing. The case is Lehman Brothers Holdings Inc. vs. Utah Housing Corporation, and Does 1-10, Case No. 14-02409 (Bankr. S.D.N.Y.). About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). 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. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. As of Oct. 2, 2014, Lehman's total distributions to unsecured creditors have amounted to $92.0 billion. As of Sept. 30, 2014, the brokerage trustee has substantially completed customer claims distributions, distributing more than $106 billion to 111,000 customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. LOMBARD PUBLIC: S&P Lowers Series A-2 Bonds Rating to 'CC' ---------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its issue credit rating on the Lombard Public Facilities Corp. series 2005A- 2 bonds to 'CC' from 'CCC-'. The outlook on the bond rating is negative. S&P also withdrew the '4' recovery rating on the bonds. "The rating action reflects our view of the convention center and hotel project's liquidity as "less than adequate" given that it has exhausted its cash balances and our view that without a debt restructuring, a payment default is inevitable on or about the Jan. 1, 2015 payment on the bonds. Even if the Village had appropriated the requested funds, it would not have been sufficient to cover the entire shortfall," said Standard & Poor's credit analyst Jayne Ross. Because of a weak economy and the hotel's slow ramp-up since commercial operations began in 2007, the project initially drew on cash in available reserve accounts, including the operating reserve and capitalized interest accounts, to fund operating shortfalls until it exhausted them. The project has been drawing on its remaining liquidity reserves to cover shortfalls in debt service payments and has been accruing payments on the series C bonds (not rated). Although the Village of Lombard agreed to pay as much as $2 million annually (subject to appropriation) to cover shortfalls in series A debt service, it chose not to appropriate requested funds each time it has been called on to do so since December 2011. As a result, the project had drawn the needed amounts from the series A debt service reserve fund (DSRF) to make the January 2012 payment and subsequent debt service payments in July and January of each year until now. The series A DSRF is now exhausted and cash flow from operations is not sufficient to make the full debt service payment. Even if the Village had appropriated the requested funds, there still would have been a shortfall. Therefore, in S&P's view, payment default is inevitable on or about the January 2015 series 2005A-2 debt service payment date. The negative outlook reflects S&P's view that the payment default is inevitable on or about the Jan. 1, 2015 debt service payment date on the series 2005A-2 bonds. LOUIS BULLARD: Justices Take Case Limiting Ch. 13 Appeals --------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the U.S. Supreme Court took a case to decide whether an individual in Chapter 13 can appeal when the bankruptcy court refuses to approve a plan. According to the report, the federal circuit courts of appeal are divided on the question as six say there's no right of appeal, while three permit an appeal when a judge denies approval of a plan. In the Bullard case, the Supreme Court will decide whether the flexible approach is applicable in bankruptcy and whether the more liberal rule allows an appeal from denial of Chapter 13 plan approval, the report related. The case is Bullard v. Hyde Park Savings Bank, 14-116, U.S. Supreme Court (Washington). MARCUS ENTERPRISES: Case Summary & 9 Unsecured Creditors -------------------------------------------------------- Debtor: Marcus Enterprises LLC 741 E Washington St Charles Town, WV 25414 Case No.: 14-01362 Nature of Business: Real Estate Development Chapter 11 Petition Date: December 19, 2014 Court: United States Bankruptcy Court Northern District of West Virginia (Martinsburg) Debtor's Counsel: John F. Wiley, Esq. J. FREDERICK WILEY, PLLC 180 Chancery Row Morgantown, WV 26505 Tel: (304) 906-7929 Fax: 304-296-6761 Email: JohnFWiley@aol.com Total Assets: $0 Total Liabilities: $$6,989,368 The petition was signed by Ronald E. Marcus, managing member, Marcus Enterprises LLC. A list of the Debtor's nine largest unsecured creditors is available for free at http://bankrupt.com/misc/wvnb14-01362.pdf MARTIN MIDSTREAM: S&P Affirms 'B+' Corp. Credit Rating, Off Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' corporate credit and 'B-' senior unsecured debt ratings on U.S. midstream energy partnership Martin Midstream Partners L.P. (Martin). S&P removed the ratings from CreditWatch with negative implications, where it placed them on Aug. 11, 2014. The rating outlook is negative. "The negative outlook reflects our view that weak commodity prices will place incremental pressure on Martin's already elevated financial leverage," said Standard & Poor's credit analyst Michael Grande. "While cash flows have no direct commodity price exposure, we expect low crude oil prices to reduce volumes related to Martin's marine terminal and transportation businesses, both of which rely on upstream drilling to spur demand," said Mr. Grande. S&P currently forecasts debt to EBITDA of 5.0x in 2015, but recognizes that results will be influenced by industry conditions and the partnership's ability to successfully execute its strategy. Martin's main business lines consist of terminalling and storage (50% of estimated 2015 EBITDA), natural gas services (25%), sulfur services (15%), and marine transportation (10%). While S&P believes Martin's Gulf Coast terminalling and storage assets provide relatively stable cash flows from a mostly fee-based contract mix, volume risk is present and S&P expects weaker oil prices in 2015 will soften demand in this segment. The partnership's specialized inland terminals, which handle products such as molten sulfur and asphalt, should partially offset this dynamic. The "aggressive" financial risk profile reflects Martin's adjusted cash flow and leverage measures, "adequate" liquidity, and master limited partnership structure, which gives it incentive to distribute virtually all free cash flow to unitholders each quarter. The negative outlook reflects S&P's view that low commodity prices could lead to weak financial measures for a sustained period. S&P currently forecasts debt to EBITDA of 5x in 2014, but recognizes that results will be influenced by industry conditions and the partnership's ability to successfully execute its strategy. Apart from a deterioration of MRMC's credit quality, S&P could lower the rating if it believes that Martin appears unlikely to lower debt to EBITDA to below 5x on a sustained basis. S&P could revise the outlook to stable if it gains greater visibility on the partnership's ability to maintain stand-alone financial leverage in the range of 4.5x to 5x. MAUDORE MINERALS: Creditor Gets Receiver for Aurbec Mines --------------------------------------------------------- Maudore Minerals Ltd. on Dec. 18 disclosed that pursuant to an application brought by its principal secured creditor, FBC Holdings S.a.r.l, under section 243 of the Bankruptcy and Insolvency Act (Canada), Samson Belair/Deloitte & Touche Inc. has been appointed as receiver of all of the assets, undertakings and properties of Aurbec Mines Inc., with the exception of the Vezza Project which is subject to a prior-ranking hypothec. As a result of the appointment of the Receiver, all of the directors and officers of Aurbec have resigned. However, members of management of Aurbec have agreed to remain available to assist the Receiver to the extent possible in the circumstances. As regards Maudore, the Superior Court of Quebec has granted an extension to January 14, 2015 of the deadline for Maudore to make a proposal to its creditors. About Maudore Minerals Ltd. Maudore is a Quebec-based junior gold company with mining and milling assets as well as more than 22 exploration projects. Five of these projects are at an advanced stage of development with reported current and historical resources and mining. Currently, all the Corporation's operating assets are on care and maintenance awaiting a significant change in the gold market. The Corporation's exploration projects span some 120 km, east-west, of the underexplored Northern Volcanic Zone of the Abitibi Greenstone Belt and cover a total area of 1,285 km2, with the Sleeping Giant Processing Facility within trucking distance of key development projects. MEXX: Gordon Brothers, Hilco Commence Going-Out-of-Business Sales ----------------------------------------------------------------- Gordon Brothers Group and Hilco Merchant Resources on Dec. 19 disclosed that they will begin going-out-of-business sales at all Mexx retail locations throughout Canada beginning Friday, December 19th. The Company filed a Notice of Intention to Make a Proposal under the Bankruptcy Insolvency Act on December 3, 2014 after struggling against competition from both online and other brick and mortar retailers. Richter is acting as Trustee. Mexx currently operates 95 retail locations across Canada. Discounts of 30% to 50% off original prices on all merchandise will be offered on the entire inventory of men's, women's and children's apparel, accessories and room furnishings. Furniture, fixtures and equipment from the stores, warehouse and corporate offices will also be available for sale. Substantial reductions off original prices will be taken on every item in stores, including new arrival tops, sweaters, jeans, shoes, handbags, jewelry and room decor. "This international retailer is known for its high quality fashion and on trend merchandise assortment. We encourage customers to visit their local stores to take advantage of the great savings that will be available throughout the sale, just in time for the holidays," Rick Edwards, Co-President of Gordon Brothers Group's Retail Division stated. Mike Keefe, President and CEO of Hilco Merchant Resources, said "Mexx is a very popular international brand and consumers are encouraged to save while the selection is best. Because of the compelling discounts and spectacular assortment of merchandise, we expect this will be a short sale." Mexx gift cards will be honored throughout the sale. About Gordon Brothers Group Founded in 1903, Gordon Brothers Group -- http://www.gordonbrothers.com-- is a global advisory, restructuring and investment firm specializing in the retail, consumer products, industrial and real estate sectors. Gordon Brothers Group maximizes value for both healthy and distressed companies by purchasing or selling all categories of assets, mitigating leases, appraising assets and operating businesses for extended periods. Gordon Brothers Group conducts over $50 billion worth of transactions and appraisals annually. As of November 2014, debt financing is provided by Gordon Brothers Finance Company. About Hilco Merchant Resources, LLC Hilco Merchant Resources -- http://www.hilcomerchantresources.com -- provides a wide range of analytical, advisory, asset monetization, and capital investment services to help you define and execute a retailer's strategic initiatives. Hilco Merchant Resources' activities fall into several principal categories including acquisitions; disposition of underperforming stores; retail company or division wind downs; event sales to convert unwanted assets into working capital; facilitation of mergers and acquisitions; interim company, division or store management teams; loss prevention; and, the monetization of furniture, fixtures and equipment. Hilco Merchant Resources is part of Northbrook, Illinois based Hilco Global, the world's leading authority on maximizing the value of business assets by delivering valuation, monetization and advisory solutions to an international marketplace. Hilco Global -- http://www.hilcoglobal.com-- operates twenty specialized business units offering services that include asset appraisal, retail and industrial inventory acquisition and disposition, real estate repositioning and renegotiation, strategic advisory and operational consulting and strategic capital equity investments. About Mexx Founded in Amsterdam, Netherlands, Mexx is an international retail chain that sells men's, women's and children's clothing and accessories as well as home furnishings. Mexx is headquartered in Amsterdam and operates over 800 retail stores across 55 countries. MIDWEST FAMILY: S&P Affirms 'B' Rating on 2006A Class IV Bonds -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term rating and underlying rating (SPUR) to 'BBB' (sf) from 'BBB+' (sf) on Midwest Family Housing LLC, Ill.'s (Navy Midwest Housing privatization project) series 2006A class II military housing taxable revenue bonds. At the same time, Standard & Poor's affirmed its: -- 'AA-' (sf) long-term rating and SPUR on the project's series 2006A class I military housing revenue bonds; -- 'BB' (sf) long-term rating and SPUR on the project's series 2006A class III military housing revenue bonds; and -- 'B' (sf) long-term rating and SPUR on the project's series 2006A class IV military housing revenue bonds. Finally, Standard & Poor's removed the above ratings from CreditWatch. The outlook on the class I bonds is stable. The outlook on the class II, III, and IV bonds is negative. "The bonds had been placed on CreditWatch due to the pending application of our revised criteria published June 19, 2014," said Standard & Poor's credit analyst Andrew Fong. "The negative outlook on class II, III, and IV bonds reflects our view of the transaction's slim coverage levels for each of these classes of debt," Mr. Fong added. MIG LLC: Litigation Amendment Approved -------------------------------------- BankruptcyData reported that the U.S. Bankruptcy Court issued an order approving Bank of New York Mellon's motion for a consensual amendment of MIG's litigation trust agreement, pursuant to Sections 105(A) and 363(B) of the Bankruptcy Code. According to BData, "the primary responsibility of the Litigation Trustee was to pursue the Change of Control Litigation. That litigation has ended and the Litigation Trustee has delivered notice of its intent to resign....The Litigation Trust Agreement by its terms already contemplates the continued existence of the Litigation Trust without the need for a Litigation Trustee. The Trust Agreement Amendment fills in the gap that exists in the Collateral Documents and the Litigation Trust Agreement whereby the Litigation Trust could be left without a Litigation Trustee and the Indenture Trustee unable to directly exercise remedies. Such result clearly was not the intent of the documents. The Trust Agreement Amendment advances the purpose of the Litigation Trust Agreement by expressly recognizing the implicit, practical reality that all enforcement actions, if any, will be taken only at the direction of the majority of Noteholders." About MIG LLC Formerly operating under the name "Metromedia International Group, Inc.," MIG LLC -- http://www.migllc-group.com/-- owned and operated and sold dozens of companies in diverse industries, including entertainment, photo finishing, garden equipment and sporting goods, until the late 1990s. In 1997 and 1998, MIG consummated the sale of substantially all of its U.S.-based entertainment assets and began focusing on expanding into emerging communications and media businesses. By 2005, all of MIG's operating businesses were located in the Republic of Georgia and operated through its subsidiaries. MIG LLC and affiliate ITC Cellular, LLC, filed for Chapter 11 bankruptcy protection on June 30, 2014. The cases are currently jointly administered under Bankr. D. Del. Lead Case No. 14-11605. As of the bankruptcy filing, MIG's sole valuable asset, beyond its existing cash, is its indirect interest in Magticom Ltd. The cases are assigned to Judge Kevin Gross. MIG LLC disclosed $15,939,125 in assets and $253,713,467 in liabilities. Headquartered in Tbilisi, Georgia, Magticom is the leading mobile telephony operator in Georgia and is also the largest telephone operator in Georgia. Magticom serves 2.4 million subscribers with a network that covers 97% of the populated regions in Georgia. Magticom is owned by International Telcell Cellular, LLC, which is 46% owned by MIG unit ITC Cellular, 51% owned by Dr. George Jokhtaberidze, and 3% owned by Gemstone Management Ltd. Formerly known as MIG, Inc., MIG was a debtor in a previous case (Bankr. D. Del. Case NO. 09-12118). It obtained approval of its reorganization plan in November 2010. The Debtors have tapped Greenberg Traurig LLP as counsel, Fox Rothschild Inc. as financial advisor; Cousins Chipman and Brown, LLP as conflicts counsel; and Prime Clerk LLC as claims and notice agent and administrative advisor. The Debtors have retained Natalia Alexeeva as chief restructuring officer. A three-member panel has been appointed in these cases to serve as the official committee of unsecured creditors, consisting of Walter M. Grant, Paul N. Kiel, and Lawrence P. Klamon. NII HOLDINGS: Insider Incentive Plan Draws U.S. Trustee Objection ----------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the U.S. Trustee opposes NII Holdings Inc.'s request to pay performance bonuses to eight of its senior management employees, contending that the bonuses to insiders are "primarily retentive" and failed to meet the Bankruptcy Code requirements. According to the report, the proposed plan consists of NII's cash bonus incentive plan, under which all employees are eligible to participate, as well as a "restructuring metric," the achievement of which provides an additional cash payment for the senior managers tied to either confirmation of a Chapter 11 plan, a sale of assets, or both. NII said in that the total cost of the proposed plan, assuming achievement of target performance, would be about $8.9 million, the report related. About NII Holdings NII Holdings Inc. through its subsidiaries provides wireless communication services for businesses and consumers in Brazil, Mexico and Argentina. NII Holdings has the exclusive right to use the Nextel brand in its markets pursuant to a trademark license agreement with Sprint Corporation and offers unique push-to-talk ("PTT") services associated with the Nextel brand in Latin America. NII Holdings' shares of common stock, par value $0.001, are publicly traded under the symbol NIHD on the NASDAQ Global Select Market. NII Holdings and its affiliated debtors sought bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-12611) in Manhattan on Sept. 15, 2014. The Debtors' cases are jointly administered and are assigned to Judge Shelley C. Chapman. The Debtors have tapped Jones Day as counsel and Prime Clerk LLC as claims and noticing agent. NII Holdings disclosed $1,216,071,340 in assets and $3,068,103,749 in liabilities as of the Chapter 11 filing. The U.S. Trustee for Region 2 on Sept. 29 appointed five creditors of NII Holdings to serve on the official committee of unsecured creditors. O.W. BUNKER: Proposes Montgomery McCracken as Bankruptcy Counsel ---------------------------------------------------------------- O.W. Bunker Holding North America Inc., et al., ask the U.S. Bankruptcy Court for permission to employ Montgomery, McCracken, Walker & Rhoads, LLP as their bankruptcy counsel, nunc pro tunc to the Petition Date. Since the firm's initial engagement on Nov. 13, 2014 as detailed in the engagement letter among the Debtors and MMWR, the MMWR professionals providing services to the Debtors have worked closely with the Debtors' management and other professionals in assisting with the myriad requirements of the Chapter 11 cases. Consequently, the Debtors believe that MMWR has developed significant relevant experience and expertise regarding the Debtors and the unique circumstances of these cases. The Debtors propose to pay MMWR its customary hourly rates in effect from time to time. The current ranges of rates of MMWR's professionals are: Professional Hourly Rate ------------ ----------- Partners $330 to $690 Of Counsel $385 to $630 Associates $280 to $440 Paralegals $140 to $240 In the 90 days prior to the Petition Date, the Debtors paid MMWR a retainer of $100,000 in connection with and in contemplation of filing their Chapter 11 cases. The Debtors say at this time, it is not possible to estimate the number of professional hours that will be required to perform the services contemplated by the Engagement Letter. Natalie D. Ramsey, Esq., a MMWR professional, attests that the Firm is a "disinterested person" under Section 101(14) of the Bankruptcy Code. About O.W. Bunker OW Bunker AS is a global marine fuel (bunker) company founded in Denmark. On Nov. 6, 2014, OW Bunker A/S placed OWB Trading and O.W. Bunker Supply & Trading A/S in an in-court restructuring procedure with the probate court in Aalborg, Denmark. By Nov. 7, 2014, the Danish entities (plus O.W. Bunker Supply & Trading A/S, O.W. Cargo Denmark A/S, and Dynamic Oil Trading A/S) were placed under formal Danish bankruptcy (liquidation) proceedings in the Aalborg probate court. The company declared bankruptcy following its admission that it had lost US$275 million through a combination of fraud committed by senior executives at its Singaporean unit. The Danish company placed its U.S. subsidiaries -- O.W. Bunker Holding North America Inc., O.W. Bunker North America Inc. and O.W. Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn. Case Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13, 2014. The U.S. cases are assigned to Judge Alan H.W. Shiff. The U.S. Debtors have tapped Patrick M. Birney, Esq., and Michael R. Enright, Esq., at Robinson & Cole LLP, as counsel. McCracken, Walker & Rhoads LLP is serving as co-counsel. Alvarez & Marsal is the financial advisor. The Office of the United States Trustee formed an official committee of unsecured creditors of the Debtors on Nov. 26, 2014. O.W. BUNKER: Taps Robinson & Cole as Connecticut Counsel -------------------------------------------------------- O.W. Bunker Holding North America Inc., et al., ask the U.S. Bankruptcy Court for permission to employ Robinson & Cole LLP as their Connecticut counsel in connection with their Chapter 11 cases, nunc pro tunc to Nov. 13, 2014. Robinson & Cole will assist the Debtors' lead bankruptcy counsel, Montgomery McCracken Walker & Rhoads LLP. Robinson & Cole will coordinate its efforts and services with those rendered by Montgomery McCracken to avoid unnecessary duplication of services or other inefficiencies. Robinson & Cole will charge the Debtors for services rendered on an hourly basis in accordance with its ordinary and customary hourly rates, except that the services of Michael R. Enright will be charged at a discounted rate of $425 per hour. The firm will be entitled to an award of its necessary expenses incurred on behalf of the Debtors, in accordance with the provisions of Sections 328, 330 and 331 of the Bankruptcy Code, or as otherwise ordered by the Court. Mr. Enright attests that Robinson & Cole is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Robinson & Cole disclosed that it represents affiliates of Chevron Marine Products LLC, a member of the official committee of unsecured creditors, in matters unrelated to the Debtors' Chapter 11 cases. About O.W. Bunker OW Bunker AS is a global marine fuel (bunker) company founded in Denmark. On Nov. 6, 2014, OW Bunker A/S placed OWB Trading and O.W. Bunker Supply & Trading A/S in an in-court restructuring procedure with the probate court in Aalborg, Denmark. By Nov. 7, 2014, the Danish entities (plus O.W. Bunker Supply & Trading A/S, O.W. Cargo Denmark A/S, and Dynamic Oil Trading A/S) were placed under formal Danish bankruptcy (liquidation) proceedings in the Aalborg probate court. The company declared bankruptcy following its admission that it had lost US$275 million through a combination of fraud committed by senior executives at its Singaporean unit. The Danish company placed its U.S. subsidiaries -- O.W. Bunker Holding North America Inc., O.W. Bunker North America Inc. and O.W. Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn. Case Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13, 2014. The U.S. cases are assigned to Judge Alan H.W. Shiff. The U.S. Debtors have tapped Patrick M. Birney, Esq., and Michael R. Enright, Esq., at Robinson & Cole LLP, as counsel. McCracken, Walker & Rhoads LLP is serving as co-counsel. Alvarez & Marsal is the financial advisor. The Office of the United States Trustee formed an official committee of unsecured creditors of the Debtors on Nov. 26, 2014. O.W. BUNKER: Taps A&M as Restructuring Advisor ---------------------------------------------- O.W. Bunker Holding North America Inc., et al., asks the U.S. Bankruptcy Court for permission to employ Alvarez & Marsal North America, LLC, to serve as restructuring advisor, nunc pro tunc to the Petition Date. The Debtors have determined that the services of an experienced restructuring advisor will substantially enhance their attempts to maximize the value of their estates. Since the firm's initial engagement on Nov. 10, 2014, the A&M personnel providing services to the Debtors have worked closely with the Debtors' management and other professionals in assisting with the myriad requirements of the Chapter 11 cases. Postpetition, A&M will, among other things, provide assistance to the Debtors with respect to management of the overall restructuring process, the development of a process for selling substantially all of the Debtors' assets, and supporting restructuring negotiations among the Debtors, their advisors, and their creditors with respect to an overall exit strategy for the Chapter 11 cases. The fee structure provides that A&M will be paid by the Debtors at the customary billing rates of A&M professionals: Professional Hourly Rate ------------ ----------- Managing Directors $725 to $925 Directors $500 to $725 Analysts/Associates $325 to $525 In addition, A&M will seek reimbursement for the reasonable and necessary out-of-pocket expenses. As part of the overall compensation payable to A&M, the Debtors have agreed to certain indemnification obligations. A&M received $50,000 as initial retainer in connection with preparing for and conducting the filing of the Debtors' Chapter 11 cases. The Debtors believe that A&M is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. About O.W. Bunker OW Bunker AS is a global marine fuel (bunker) company founded in Denmark. On Nov. 6, 2014, OW Bunker A/S placed OWB Trading and O.W. Bunker Supply & Trading A/S in an in-court restructuring procedure with the probate court in Aalborg, Denmark. By Nov. 7, 2014, the Danish entities (plus O.W. Bunker Supply & Trading A/S, O.W. Cargo Denmark A/S, and Dynamic Oil Trading A/S) were placed under formal Danish bankruptcy (liquidation) proceedings in the Aalborg probate court. The company declared bankruptcy following its admission that it had lost US$275 million through a combination of fraud committed by senior executives at its Singaporean unit. The Danish company placed its U.S. subsidiaries -- O.W. Bunker Holding North America Inc., O.W. Bunker North America Inc. and O.W. Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn. Case Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13, 2014. The U.S. cases are assigned to Judge Alan H.W. Shiff. The U.S. Debtors have tapped Patrick M. Birney, Esq., and Michael R. Enright, Esq., at Robinson & Cole LLP, as counsel. McCracken, Walker & Rhoads LLP is serving as co-counsel. Alvarez & Marsal is the financial advisor. The Office of the United States Trustee formed an official committee of unsecured creditors of the Debtors on Nov. 26, 2014. OAKLEY AND SON: Case Summary & 5 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Oakley and Son, Inc. 387 Nora Poole Road Roxboro, NC 27573 Case No.: 14-81411 Chapter 11 Petition Date: December 19, 2014 Court: United States Bankruptcy Court Middle District of North Carolina (Durham) Debtor's Counsel: John Paul H. Cournoyer, Esq. NORTHEN BLUE, LLP Suite 435, 1414 Raleigh Road Chapel Hill, NC 27517 Tel: 919-968-4441 Fax: 919-942-6603 Email: jpc@nbfirm.com Total Assets: $1.33 million Total Liabilities: $414,815 The petition was signed by Kevin N. Oakley, president. A list of the Debtor's five largest unsecured creditors is available for free at http://bankrupt.com/misc/ncmb14-81411.pdf OVERSEAS SHIPHOLDING: Unveils Mgt. Changes 4 Months After Exit -------------------------------------------------------------- Overseas Shipholding Group, Inc. on Dec. 19 announced several key management changes as the Company continues to execute its strategy following emergence from bankruptcy in August 2014. The Board of Directors of the Company has appointed Douglas Wheat as Chairman of the Board. Mr. Wheat, who has served as a Director of the Company since August 2014, currently also serves as Chairman of AMN Healthcare Services Inc. and as Vice Chairman of Dex Media, Inc. He previously served as Chairman of SuperMedia, Inc. and Playtex Products Inc. Since 2008, he has served as Managing Partner of Southlake Equity Group, a private investment firm. Mr. Wheat assumes the position of Chairman from John Ray. Mr. Ray, Managing Director of Greylock Partners, LLC, a restructuring advisory firm, was formerly Chief Restructuring Officer of the Company during its Chapter 11 proceeding. He had agreed to serve as Chairman of the Board of Directors following confirmation of the Plan of Reorganization to assist with the transition and development of the Company during the period immediately after the emergence. Mr. Wheat commented, "John Ray and his team at Greylock Partners have done a tremendous service to the Company and the Board by completing the important transition during our emergence from Chapter 11 and readying the Company for the next stage of its development. The entire board thanks him for his service and looks forward to working with him to complete the transition." Mr. Ray has decided not to stand for re-election at the 2015 annual meeting. Additionally, the Company disclosed it has appointed Rick Oricchio as Senior Vice President and Chief Financial Officer effective as of January 12, 2015. Mr. Oricchio joins the Company after a 30-year career with Deloitte, LLP. As a partner at Deloitte, Mr. Oricchio provided tax services to the Company during the Chapter 11 proceedings and has extensive knowledge about the Company and its management. Mr. Wheat stated that Mr. Oricchio's experience and knowledge of the Company will be an immediate asset to the Company and provide additional strength to the Company's financial team, which the Board has supplemented since the emergence date. Mr. Oricchio will assume the Chief Financial Officer role from Captain Ian Blackley. Captain Blackley, a 43-year veteran of the shipping industry, has been with the Company since 1991 and has served as Chief Financial Officer since shortly after the Chapter 11 filing in 2012. Captain Blackley has been appointed to the newly created role of Executive Vice President and Chief Operating Officer. In this capacity, Captain Blackley will play a key role in OSG's operations and in the development and execution of its strategy. Lois K. Zabrocky and Henry Flinter will continue in their current roles as co-Presidents of the Company. About Overseas Shipholding Overseas Shipholding Group, Inc. (OTC: OSGIQ), headquartered in New York, is one of the largest publicly traded tanker companies in the world, engaged primarily in the ocean transportation of crude oil and petroleum products. OSG owns or operates 111 vessels that transport oil and petroleum products throughout the world. Overseas Shipholding Group and 180 affiliates filed voluntary Chapter 11 petitions (Bankr. D. Del. Lead Case No. 12-20000) on Nov. 14, 2012, disclosing $4.15 billion in assets and $2.67 billion in liabilities. Greylock Partners LLC Chief Executive John Ray serves as chief reorganization officer. James L. Bromley, Esq., and Luke A. Barefoot, Esq., at Cleary Gottlieb Steen & Hamilton LLP serve as OSG's Chapter 11 counsel. Derek C. Abbott, Esq., Daniel B. Butz, Esq., and William M. Alleman, Jr., at Morris, Nichols, Arsht & Tunnell LLP, serve as local counsel. Chilmark Partners LLC serves as financial adviser. Kurtzman Carson Consultants LLC is the claims and notice agent. The Export-Import Bank of China, owed $312 million used for the construction of five tankers, is represented by Louis R. Strubeck, Jr., Esq., and Kristian W. Gluck, Esq., at Fulbright & Jaworski LLP in Dallas; David L. Barrack, Esq., and Beret Flom, Esq., at Fulbright & Jaworski in New York; and John Knight, Esq., and Christopher Samis, Esq., at Richards Layton & Finger PA. Chilmark Partners, LLC serves as financial and restructuring advisor. Akin Gump Strauss Hauer & Feld LLP, and Pepper Hamilton LLP, serve as co-counsel to the official committee of unsecured creditors. FTI Consulting, Inc., is the financial advisor and Houlihan Lokey Capital, Inc., is the investment banker. U.S. Bank National Association is the successor administrative agent under the $1.5 billion credit agreement, dated as of February 9, 2006 by and among (a) OSG, OSG Bulk Ships, Inc., and OSG International, Inc., as joint and several borrowers, (b) the Administrative Agent and (c) various lenders party thereto. Counsel to the Administrative Agent are Milbank, Tweed, Hadley & McCloy LLP; Holland & Knight LLP; and Drinker Biddle & Reath LLP. Lazard Freres & Co. LLC serves as advisor to the Administrative Agent. An official committee of Equity Security Holders has been appointed in the case. It is represented by Brown Rudnick LLP's Steven D. Pohl, Esq., James W. Stoll, Esq. and Jesse N. Garfinkle, Esq.; Fox Rothschild LLP's Jeffrey M. Schlerf, Esq., John H. Strock, Esq. and L. John Bird, Esq. Judge Walsh signed on July 18, 2014, a findings of fact, conclusions of law, and order confirming the First Amended Joint Plan of Reorganization of OSG and its debtor-affiliates. A blacklined version of the Plan dated July 17, 2014, is available at http://bankrupt.com/misc/OSGplan0716.pdf A full-text copy of Judge Walsh's Confirmation Order is available at http://bankrupt.com/misc/OSGplanord0718.pdf * * * The Troubled Company Reporter, on Aug. 14, 2014, reported that Moody's Investors Service assigned Caa1 ratings to the unsecured notes of Overseas Shipholding Group, Inc. ("OSG") that are being reinstated pursuant to its plan of reorganization which becomes effective. Moody's also affirmed the B2 Corporate Family Rating and all of the other debt ratings it assigned to OSG on June 12, 2014 in anticipation of the conclusion of the Chapter 11 reorganization. The rating outlook is stable. The TCR, on Aug. 19, 2014, also reported that Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Overseas Shipholding Group Inc. (OSG). The outlook is stable. PHOENIX PAYMENT: Plan Filing Period Extended to March 2 ------------------------------------------------------- Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware extended Phoenix Payment Systems, Inc.'s plan filing period through and including March 2, 2015, and their solicitation period through and including May 4, 2015. As previously reported by The Troubled Company Reporter, in support of its extension request, the Debtor states: "The Debtor believes that maintaining the exclusive right to file and solicit votes on its plan of reorganization is critical to its ability to complete this process and achieve its remaining goals as efficiently and expeditiously as possible. The Debtor expects its remaining restructuring initiatives to be completed in the near future, and therefore, the requested extension of the Exclusivity Periods will afford the Debtor the time to complete the initiatives and consummate the restructuring transactions already in progress. Accordingly, the Debtor requests an extension of the Exclusivity Periods to allow the Debtor to continue focusing on finalizing, filing and obtaining confirmation of its plan of reorganization and to preclude the costly disruption that would occur if competing plans were to be proposed." About Phoenix Payment Founded in 2004, Phoenix Payment Systems, Inc., aka Electronic Payment Systems, aka EPX, is an international payment processor with corporate headquarters in Wilmington, Delaware, and technology headquarters in Phoenix, Arizona. It provides acceptance, processing, support, authorization and settlement services for credit card, debit card and e-check payments. Providing processing services at more than 8,700 locations worldwide, PPS processed, in multiple currencies, 280 million transactions in 2013 and expects to process 400 million in 2014. Phoenix Payment Systems sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 14-11848) on Aug. 4, 2014, to quickly sell its assets. As of the Petition Date, the Debtor had total outstanding liabilities and other obligations of $16.6 million and 9.8 million shares of outstanding preferred and common stock. Debt to secured creditor The Bancorp Bank is estimated at $6.2 million. The Debtor disclosed $7,230,399 in assets and $14,083,645 in liabilities as of the Chapter 11 filing. Judge Mary F. Walrath presides over the case. The Debtor's attorneys are Richard J. Bernard, Esq., at Foley & Lardner LLP, in New York; and Mark D. Collins, Esq., Russell Siberglied, Esq., Zachary I Shapiro, Esq., and Marisa A. Terranova, Esq., at Richards Layton & Finger, P.A., in Wilmington, Delaware. The Debtor's banker and financial advisor is Raymond James & Associates, Inc., while Bederson, LLC, is the Debtor's accountant. PMCM, LLC, provides advisory services and executive leadership to the Debtor. The Debtor's claims and noticing agent is Omni Management Group, LLC. The U.S. Trustee for Region 3 has appointed three members to the Official Committee of Unsecured Creditors. The Committee tapped to retain Lowenstein Sandler LLP, and White and Williams LLP as its co-counsel; Alvarez & Marsal North America, LLC as its financial consultant. PORT AGGREGATES: Case Summary & 17 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Port Aggregates, Inc. 2620 SW Evangeline Thruway Lafayette, LA 70508 Case No.: 14-51580 Type of Business: Chapter 11 Petition Date: December 19, 2014 Court: United States Bankruptcy Court Western District of Louisiana (Lafayette) Judge: Hon. Robert Summerhays Debtor's Counsel: Louis M. Phillips, Esq. GORDON ARATA MCCOLLAM DUPLANTIS & EAGAN LLC One American Place 301 Main Street, Suite 1600 Baton Rouge, LA 70825-0004 Tel: (225) 381-9643 Fax: (225) 336-9763 Email: lphillips@gordonarata.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Andrew L. Guinn, Sr., president. List of Debtor's 17 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Airgas USA, LLC $55 All Serve Industrial LLC $160 Automatic Data Processing Inc. $214 Bank of the West $3,781 Cameron Telephone Company $652 Canon Financial Services Inc. $352 Canon Solutions America, Inc. $274 Cintas Corporation $32 CLM Equipment Co Inc. $2,126 Community Coffee Company LLC $146 Crow Burlingame Co $273 Grimes Industrial Supply LLC $875 Parker's Industrial Uniforms $210 Trico Construction Co. Inc. 167,702 Vulcan Const Materials LP $1,399,239 PO Box 11407 Drawer 0344 Birmingham, Al 35246-0344 Vulcan Const Materials LP $65,185 Zee Medical Service $19 RADIAN GROUP: Assured Guaranty Nears Deal for Unit -------------------------------------------------- Mike Stone, writing for Reuters, reported that the biggest U.S. private mortgage insurer, Radian Group Inc., is close to a sale of its financial guaranty business to Assured Guaranty Ltd for around $800 million. According to the report, citing people familiar with the matter, a deal could be announced in the next few days. Radian's financial guaranty business provides insurance and reinsurance of municipal bonds, structured finance transactions and other credit-based risks, the report related. Radian Group Inc. is a US-based holding company that owns a mortgage insurance platform comprised of Radian Guaranty, Radian Mortgage Assurance, and Radian Insurance. In addition, it owns Radian Asset Assurance, a financial guaranty insurance company. The group also has investments in other financial services entities. As of March 31, 2014, Radian Group had $5.5 billion in total assets and $1.1 billion in shareholder's equity. * * * The Troubled Company Reporter, on June 19, 2014, reported that Moody's Investors Service has assigned provisional ratings to Radian Group Inc. under a multi-seniority shelf registration statement that was filed by Radian on May 6, 2014. This shelf registration statement replaced Radian's previous shelf registration statement filed on August 9, 2012. Moody's currently rates Radian Group's senior debt at B3, and Radian's principal mortgage insurance operating subsidiaries Ba2 for insurance financial strength. The outlook for the ratings is positive. RADIOSHACK CORP: Lender Sends Mixed Signals About Bankruptcy ------------------------------------------------------------ Josh Kosman and James Covert, writing for The New York Post, reported that RadioShack Corp. is confused by the mixed signals of a lender that flip-flopped to push the troubled retailer into bankruptcy. According to the report, Salus Capital -- which joined Cerberus Capital Management -- now claims RadioShack is in default after making a public presentation explaining why it was not. RadioShack term lenders Cerberus and now Salus on Dec. 2 claimed the company had defaulted, the report noted. About Radioshack Corporation RadioShack (NYSE: RSH) -- http://www.radioshackcorporation.com/-- is a national retailer of innovative mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack's retail network includes more than 4,300 company-operated stores in the United States, 270 company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide. Radioshack reported a net loss of $400.2 million in 2013, a net loss of $139.4 million in 2012, and net income of $72.2 million in 2011. The Company's balance sheet at Aug. 2, 2014, showed $1.14 billion in total assets, $1.21 billion in total liabilities and a $63 million total shareholders' deficit. * * * As reported by the TCR on Sept. 15, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Fort Worth, Texas-based RadioShack Corp. to 'CCC-' from 'CCC'. "The downgrade comes as the company announced it will seek capital, and that such a transaction could include a debt restructuring in addition to store closures and other measures," said Standard & Poor's credit analyst Charles Pinson-Rose. In the Sept. 16, 2014, edition of the TCR, the TCR reported that Fitch Ratings had downgraded the Long-term Issuer Default Rating (IDR) for RadioShack Corporation (RadioShack) to 'C' from 'CC'. The downgrade reflects the high likelihood that RadioShack will need to restructure its debt in the next couple of months. The TCR reported on March 13, 2014, that Moody's Investors Service downgraded RadioShack Corporation's corporate family rating to Caa2 from Caa1. "The continuing negative trend in RadioShack's sales and margins has resulted in a precipitous drop in profitability causing continued deterioration in credit metrics and liquidity," Mickey Chadha, Senior Analyst at Moody's said. REVEL AC: Sale to Runner-Up Polo North Set for Jan. 5 Hearing ------------------------------------------------------------- Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that a bankruptcy judge in Camden, New Jersey, will convene a hearing on Jan. 5 to consider approval of the sale of Revel AC Inc.'s assets to Glenn Straub's Polo North Country Club Inc. As previously reported by The Troubled Company Reporter, citing The Deal, Revel has asked the bankruptcy court to approve the sale of its assets to Polo North County, which was the runner up at the auction, after the winning bidder, Brookfield Property Partners LP, backed out of the deal. Mr. Staub's company offered $95.4 million for the assets. A Brookfield representative has said in November that it wouldn't be moving forward with the $110 million sale because Brookfield was spooked by the situation involving ACR Energy Partners LLC, a joint venture between South Jersey Industries Inc. (SJI) and DCO Energy LLC whose power plant provides Revel, its only customer, with air conditioning, hot water and electricity. ACR's bondholders, owed $118 million, have refused to renegotiate debt related to the JV's plant, casting doubt on its future operation. 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: Taps Slater Tenaglia to Handle Casino Collections Cases ----------------------------------------------------------------- Revel AC, Inc., et al., seek approval from the Bankruptcy Court to employ Slater, Tenaglia, Fritz & Hunt, P.A.., as attorneys to handle continued collections cases. The firm has over 30 years of experience handling casino collections. Since the filing date of June 19, 2014, the Firm has collected a total of $111,000 and been paid contingency fees out of that amount which total $19,800. The Debtors has agreed to provide the Firm a 17 percent contingency fee on any recovered monies, and a $150 per hour fee for files as designated by client and for defense of counterclaims. James T. Hunt, Jr., a Slater Tenaglia professionals, attests that the Firm has conducted a conflict search and believes that it is a "disinterested person" under 11 U.S.C. Sec. 101(14). 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. ROTHSTEIN ROSENFELDT: Trustee Seeks Clarification on Claims ----------------------------------------------------------- Law360 reported that the Michael Goldberg, the liquidation trustee for the estate of convicted Ponzi schemer Scott Rothstein's defunct law firm, filed an adversary case in Florida bankruptcy court seeking clarification on possible recovery reductions for more than $43 million worth of claims. According to the report, Mr. Goldberg asked the court for declaratory judgment regarding distributions of two classes of claims held by various funds after a group of investors said recovery reductions should be made because the funds had already recovered money from settlements with TD Bank NA. Mr. Goldberg said that a group of investors led by Razorback Funding LLC, known as the Razorback plaintiffs, asserted that reductions should be made to distributions of the funds' class 3 and class 6 claims. The adversary case is Goldberg v. Platinum Partners Value Arbitrage Fund LP in the U.S. Bankruptcy Court for the Southern District of Florida. The case number was unavailable. About Rothstein Rosenfeldt Scott Rothstein, co-founder of law firm Rothstein Rosenfeldt Adler PA -- http://www.rra-law.com/-- was suspected of running a $1.2 billion Ponzi scheme. U.S. authorities claimed in a civil forfeiture lawsuit filed Nov. 9, 2009, that Mr. Rothstein, the firm's former chief executive officer, sold investments in non- existent legal settlements. Mr. Rothstein pleaded guilty to five counts of conspiracy and wire fraud on Jan. 27, 2010. Creditors of Rothstein Rosenfeldt Adler signed a petition sending the Florida law firm to bankruptcy (Bankr. S.D. Fla. Case No. 09-34791). The petitioners include Bonnie Barnett, who says she lost $500,000 in legal settlement investments; Aran Development, Inc., which said it lost $345,000 in investments; and trade creditor Universal Legal, identified as a recruitment firm, which said it is owed $7,800. The creditors alleged being owed money invested in lawsuit settlements. Herbert M. Stettin, the state-court appointed receiver for Rothstein Rosenfeldt, was officially carried over as the Chapter 11 trustee in the involuntary bankruptcy case. On June 10, 2010, Mr. Rothstein was sentenced to 50 years in prison. The official committee of unsecured creditors appointed in the case is represented by Michael Goldberg, Esq., at Akerman Senterfitt. RRA won approval of an amended liquidating Chapter 11 plan pursuant to the Court's July 17, 2013 confirmation order. The revised plan, filed in May, is centered around a $72.4 million settlement payment from TD Bank NA. SEMGROUP LP: Ex-CEO Asks 3rd Circ. to Nix Investor Fraud Suit ------------------------------------------------------------- Law360 reported that an attorney for the former CEO of oil distributor SemGroup LP urged the Third Circuit to block a fraud suit brought by investors, arguing that a Delaware bankruptcy judge properly dismissed the fraud claims as derivative of SemGroup's Chapter 11 reorganization. According to the report, Paul R. Bessette of King & Spalding LLP, an attorney for former SemGroup President and CEO Thomas L. Kivisto, asked a three-judge panel to nix a suit by several SemGroup investors accusing Kivisto of negligent misrepresentation, fraud and breach of fiduciary duty. They also say his irresponsible conduct is to blame for SemGroup's bankruptcy, the report related. The case is In re: SemCrude LP et al., Thomas L. Kivisto v. Cottonwood Partnership LLP et al., case number 14-1204, in the U.S. Court of Appeals for the Third Circuit. About SemGroup, L.P. SemGroup, L.P. -- http://www.semgrouplp.com/-- is a midstream service company that provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids and refined products. Services include purchasing, selling, processing, transporting, terminalling and storing energy. SemGroup serves customers in the United States, Canada, Mexico and Wales. SemGroup L.P. and its debtor-affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 08-11525) on July 22, 2008. John H. Knight, Esq., L. Katherine Good, Esq. and Mark D. Collins, Esq., at Richards Layton & Finger; Harvey R. Miller, Esq., Michael P. Kessler, Esq., and Sherri L. Toub, Esq., at Weil, Gotshal & Manges LLP; and Martin A. Sosland, Esq., and Sylvia A. Mayer, Esq., at Weil Gotshal & Manges LLP, represented the Debtors in their restructuring efforts. Kurtzman Carson Consultants L.L.C. served as the Debtors' claims agent. The Blackstone Group L.P. and A.P. Services LLC acted as the Debtors' financial advisors. Margot B. Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber Silverstein, Esq., at Potter Anderson & Corroon LLP, represented the Debtors' prepetition lenders. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc., is the appointed monitor of SemCanada Crude Company and its affiliates' reorganization proceedings before the Canadian Companies' Creditors Arrangement Act. SemGroup LP won confirmation from the Bankruptcy Court of its Fourth Amended Plan of Reorganization on Oct. 28, 2008. The Plan, which distributed more than $2.5 billion in value to stakeholders, was declared effective on Nov. 30, 2008. As part of the Plan, the Reorganized Debtors entered into two new credit facilities aggregating $625 million in financing; entered into a $300 million Second Lien Term Facility; created a new corporate structure, including issuing shares of common stock and warrants; and distributed approximately $500 million of cash and approximately $1 billion in value of new common stock and warrants to thousands of creditors in accordance with the Plan. SENTINEL MANAGEMENT: Trustee Can't Wipe Out BNY Mellon's Debt ------------------------------------------------------------- Law360 reported that a federal judge again absolved Bank of New York Mellon Corp. of knowingly aiding the criminal fraud that brought down investment manager Sentinel Management Group Inc., thwarting the Sentinel bankruptcy trustee's bid to avoid repaying $312 million in loans. According to the report, U.S. District Judge James B. Zagel upheld BNYM's secured claim against the Sentinel bankruptcy estate, finding that the bank did not deserve to be wiped out based on loans it extended that were improperly collateralized by Sentinel customers' segregated assets instead of by the firm's own money. Bank of New York Mellon "could and should" have done a better job at monitoring Sentinel's loans, but it did not act recklessly by failing to take a closer look at its client's operations and records, according to the opinion, the report cited. The case is Grede v. The Bank of New York Mellon Corp. et al., case number 1:08-cv-02582, in the U.S. District Court for the Northern District of Illinois. About Sentinel Management Based in Northbrook, Illinois, Sentinel Management Group Inc. -- http://www.sentinelmgi.com/-- was a full service firm offering a variety of security solutions. The Company filed a voluntary Chapter 11 petition (Bankr. N.D. Ill. Case No. 07-14987) on Aug. 17, 2007. Ronald Barliant, Esq., Randall Klein, Esq., and Kathryn A. Pamenter, Esq., at Goldberg, Kohn, Bell & Black Rosenbloom & Moritz, Ltd., represented the Debtor. Lawyers at Quinn, Emanuel Urquhart Oliver & Hedges, LLP, represented the Official Committee of Unsecured Creditors. When the Debtor sought bankruptcy protection, it estimated assets and debts of more than $100 million. On Aug. 28, 2007, the Court approved Frederick Grede as the Debtor's Chapter 11 Trustee. Marc I. Fenton, Esq., at DLA Piper US LLP, and Vincent E. Lazar, Esq., at Jenner & Block LLP, represent the Chapter 11 Trustee. The Court confirmed the Fourth Amended Chapter 11 Plan of Liquidation for Sentinel on Dec. 15, 2008, which created a Liquidation Trust. The Plan became effective Dec. 17, 2008, and Mr. Grede was appointed Liquidation Trustee. SIGA TECHNOLOGIES: Seeks Approval to Hire PwC as Auditor -------------------------------------------------------- SIGA Technologies, Inc., asks for approval from the Bankruptcy Court to employ PricewaterhouseCoopers LLP as its auditor. PwC has provided a multitude of auditing and other consulting services to the Debtor since 1997. PwC has assisted the Debtor with the filing of its unaudited quarterly financial statement for the third quarter of 2014. In addition, PwC has been reviewing the Debtor's 2014 unaudited quarterly financial statements in anticipation of PwC's review and audit of the Debtor's consolidated financial statements for the year ending Dec. 31, 2014. In the 90 days prior to the Petition Date, the Debtor paid PwC $171,700 for services rendered in connection with the Engagement Letter and with respect to SIGA's contractual commitments and related matters. PwC holds a prepetition claim against the Debtor for amounts owed for services rendered. To the extent the application is granted, PwC has agreed to waive any amounts that may be owed for services rendered prior to the Petition Date. PwC intends to apply for (a) compensation for the services set forth in the Engagement Letter on a fixed-fee basis, with the monthly fixed-fee amount varying from $30,000 to $55,000 during the early months and $70,000 to $90,000 in the peak audit months, and (b) compensation for the incremental services on an hourly basis in accordance with PwC's ordinary and customary rates in effect on the date such services are rendered. Hourly rates, subject to periodic adjustments, that PwC professionals will charge for the incremental services are as follows: Engagement Team Specialist Hourly Staff Class Hourly Billing Rate Billing Rate ----------- ------------------- ----------------- Partner $650 to $775 $896 to $957 Managing Director/Director $500 to $600 $668 to $767 Senior Manager N/A $668 to $694 Manager $350 to $410 $519 to $545 Senior Associate $230 to $275 $420 to $440 Associate $150 to $185 $357 to $365 Chris Pierce, a member of PwC, attests that the Firm is a "disinterested person" as the term is defined in section 101(14) of the Bankruptcy Code, as modified by Section 1107(b) of the Bankruptcy Code. About SIGA Technologies Publicly held SIGA Technologies, Inc., with headquarters in Madison Avenue, New York, is a biotech/pharmaceutical company that specializes in the development and commercialization of solutions for serious unmet medical needs and biothreats. SIGA's lead product is Tecovirimat, also known as ST-246, an orally administered antiviral drug that targets orthopoxviruses. SIGA sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 14-12623) on Sept. 16, 2014, in Manhattan. The case is assigned to Judge Sean H. Lane. The Debtor has tapped Weil, Gotshal & Manges LLP, as counsel, and Prime Clerk LLC as claims agent. The Debtor's Chapter 11 plan and disclosure statement are due Jan. 14, 2015. The initial case conference is due by Oct. 16, 2014. The Debtor disclosed total assets of $131,669,746 and $7,954,645 in liabilities as of the Chapter 11 filing. SIMPLEXITY LLC: Bankruptcy Deal OK'd Over US Trustee Objection -------------------------------------------------------------- Sherri Toub, a bankruptcy columnist for Bloomberg News, reported that Simplexity LLC and the official creditors' committee received court approval of a settlement with lender Fifth Third Bank that resolves the claims among the parties and provides for a consensual conversion of the Chapter 11 case to a liquidation in Chapter 7. Law360 reported that the U.S. Trustee's office took issue with the settlement, arguing it violates the Chapter 11 payment priority and urging the court to immediately convert the case to a Chapter 7 proceeding. According to the Law360 report, in a motion before the Delaware bankruptcy court, the U.S. Trustee's Office argued that the deal -- which does contemplate a Chapter 7 conversion after a payment scheme for creditors is laid out -- amounts to a "cafeteria-style" path out of bankruptcy that improperly mashes together some of the Chapter 11 plan process with other facets of Chapter 7 liquidation. As previously reported by The Troubled Company Reporter, the settlement also provides for: (a) increased funding of the administrative expenses incurred in the prosecution of the Chapter 11 cases and the sale under Section 363 of the Bankruptcy Code; (b) additional priority recoveries (the first $1 million) from future claims recoveries in order to further reimburse the estates' administrative creditors; and (c) a significant compromise of rights to recover future distributions after the first $1 million, so that general unsecured creditors will obtain distributions at the same time as Fifth Third under an agreed sharing formula. Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the proposed settlement provides for a release of the company's causes of action against Fifth Third and allowance of the bank's claims, in exchange for the estate's immediate access to an additional $1.65 million of post-bankruptcy cash, with $1.5 million designated to cover unpaid Chapter 11 administrative expenses. The Bloomberg report related that, according to the committee chair, the split on the remainder of litigation recoveries -- with 65 percent for Fifth Third and 35 percent for unsecured creditors -- is reasonable because it eliminates litigation risk with the bank and provides a "clean platform" for general unsecured creditors to obtain a distribution. About Simplexity Simplexity, LLC, a defunct cellphone activator, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 14-10569) on March 16, 2014. The case is before Judge Kevin Gross. The Debtors' counsel is Kenneth J. Enos, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in Wilmington, Delaware. Prime Clerk LLC serves as claims and noticing agent. Simplexity hired Rutberg & Co. as investment banker. Simplexity LLC and Simplexity Services LLC both estimated $10 million to $50 million in assets, and $50 million to $100 million in liabilities. The U.S. Trustee for Region 3 appointed five members to an official committee of unsecured creditors. Peter S. Partee, Sr., Esq., and Michael P. Richman, Esq., at Hunton & Williams LLP, in New York; and Christopher A. Ward, Esq., and Shanti M. Katona, Esq., at Polsinelli PC, in Wilmington, Delaware, represent the Committee. SIRRUB SERVICES: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Sirrub Services Inc. D/B/A Golden Krust Caribbean Bakery & Grill 9421 Foster Avenue Brooklyn, NY 11236 Case No.: 14-46370 Chapter 11 Petition Date: December 19, 2014 Court: United States Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Hon. Elizabeth S. Stong Debtor's Counsel: Arlene Gordon-Oliver, Esq. ARLENE GORDON-OLIVER PC 50 Main Street, Suite 1000 White Plains, NY 10606 Tel: 914-682-2113 Fax: 914-682-2114 Email: ago@gordonoliverlaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Donald Burris, president. The Debtor did not file a list of its largest unsecured creditors when it filed the petition. STANFORD GROUP: BNY's Pershing Can't Escape Ponzi Suit ------------------------------------------------------ Law360 reported that Bank of New York Mellon Corp. subsidiary Pershing LLC failed to beat back most of a putative class action over its role as clearing broker in Allen Stanford's alleged $7 billion Ponzi scheme, as a Texas federal judge rejected Pershing's argument that it was too distant from the alleged crime to be held liable. According to the report, the plaintiffs, alleged victims of Stanford's historic Ponzi scheme, launched the suit in 2009, accusing Pershing of aiding the massive fraud perpetrated through Stanford Group Co. The case is Turk et al v. Pershing LLC, Case No. 3:09-cv-02199 (N.D. Tex.). About Stanford Group The Stanford Financial Group was a privately held international group of financial services companies controlled by Allen Stanford, until it was seized by United States (U.S.) authorities in early 2009. Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management served more than 70,000 clients in 140 countries. On Feb. 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The case in district court was Securities and Exchange Commission v. Securities Investor Protection Corp., 11-mc-00678, U.S. District Court, District of Columbia (Washington). The U.S. Securities and Exchange Commission, on Feb. 17, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money- laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. STOCKTON, CA: Judge Denies Franklin Bid to Reduce Retiree Claims ---------------------------------------------------------------- Law360 reported that a California bankruptcy judge rebuffed Franklin Templeton Investments' request to trim retiree health benefit claims under the city of Stockton's Chapter 9 plan by more than $280 million, a move that would have slightly boosted the investment firm's recovery. According to the report, U.S. Bankruptcy Judge Christopher Klein Franklin denied Franklin's motion to amend, which asked the court to reduce the amount of allowed retiree claims from approximately $545 million to a present value of $261.9 million, saying it was a "close question" but that he wasn't convinced it was necessary under the Bankruptcy Code. As previously reported by The Troubled Company Reporter, citing Law360, Stockton urged Judge Klein to reject a call from creditor Franklin to trim retiree health benefits claims allowed under the city's Chapter 9 exit plan by more than $280 million, saying that there is no legal basis for a reduction. Law360 recalled that Franklin has asked the court to revise the amount of allowed retiree claims from approximately $545 million to the present value of $261.9 million, a move the city contends is not required under the Bankruptcy Code. 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. SUMMERFIELD AT SNOW HILL: Case Summary & 5 Top Unsec. Creditors --------------------------------------------------------------- Debtor: Summerfield at Snow Hill Community Partnership, LLC 4938 Hampden Lane, Suite 326 Bethesda, MD 20814 Case No.: 14-29290 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: December 19, 2014 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Judge: Hon. Thomas J. Catliota Debtor's Counsel: Augustus T Curtis, Esq. COHEN, BALDINGER & GREENFELD, LLC 2600 Tower Oaks Blvd., Suite 103 Rockville, MD 20852 Tel: (301) 881-8300 Fax: (301) 881-8350 Email: augie.curtis@cohenbaldinger.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Richard Cantor, manager. A list of the Debtor's five largest unsecured creditors is available for free at http://bankrupt.com/misc/mdb14-29290.pdf TRUMP ENTERTAINMENT: CEO Says Union Killed Deal to Save Casino -------------------------------------------------------------- Law360 reported that Robert F. Griffin, the CEO of bankrupt Trump Entertainment Resorts Inc., claimed that the union representing workers at the Taj Mahal backed out of what he thought was a deal to keep the casino open, and said the gaming property could close unless Unite Here Local 54 changes its mind. 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: To Stay Open Into New Year, Lawyer Says ------------------------------------------------------------ Peg Brickley, writing for The Wall Street Journal, reported that the Trump Taj Mahal will remain in operation through Christmas and into the New Year, due to a $20 million loan from secured lender Carl Icahn, a lawyer for the casino operator said. According to the report, Erez Gilad, attorney for Trump Entertainment Resorts Inc., told U.S. Bankruptcy Judge Kevin Gross the new financing from Mr. Icahn will avert a shutdown of the Atlantic City Boardwalk casino while efforts continue to preserve it over the long term. Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, reported that the Official Committee of Unsecured Creditors, for the time being, is keeping its powder dry, saying the loan agreement now on file is unrealistic because it has several plan- confirmation deadlines that already passed. Not knowing the contours of financing, the committee is reserving its right to object, the Bloomberg report related. 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. TURF LLC: Case Summary & 7 Largest Unsecured Creditors ------------------------------------------------------ Debtor: Turf LLC 741 East Washington Street Charles Town, wv 25414-1082 Case No.: 14-01361 Chapter 11 Petition Date: December 19, 2014 Court: United states Bankruptcy Court Northern District of West Virginia (Martinsburg) Debtor's Counsel: John F. Wiley, Esq. J. FREDERICK WILEY, PLLC 180 Chancery Row Morgantown, WV 26505 Tel: (304) 906-7929 Fax: 304-296-6761 Email: JohnFWiley@aol.com Total Assets: $3.61 million Total Liabilities: $3.26 million The petition was signed by Ronald E. Marcus, member. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/wvnb14-01361.pdf ULTIMATE NUTRITION: Nutritional Supplements Seller Files Ch.11 -------------------------------------------------------------- Ultimate Nutrition, Inc., and Prostar, Inc., the distributor of nutritional supplements that are being sold in more than 100 countries, have sought bankruptcy protection due to a dispute with the bank providing the financing. Ultimate Nutrition says the business is operationally sound and over the years, it has sponsored many well-known athletes and celebrities and, from 2009 to the present, has been the title sponsor of the Mr. Olympia bodybuilding contest, which became prominent after helping launch the career of Arnold Schwarzenegger. As of the bankruptcy filing, the Debtors owe T.D. Bank, N.A., $8 million on a revolving loan, $2.42 million on a term loan, $1.66 million on an export revolving line of credit, and $1.08 million on an equipment loan, and $1.25 million on a guarantee of obligations of VHR Development, LLC. Road to Bankruptcy Irve J. Goldman, Esq., at Pullman & Comley, in Bridgeport, Connecticut, counsel to the Debtors, recounts that in early 2012, the Debtors expanded their lending relationship with TD by taking out an equipment loan, terming out a portion of the debt on their line of credit, and increasing the availability on the line of credit. Prior to expanding their debt structure with TD, the Debtors explained to TD that due to increased regulatory enforcement activity and labor strife experienced in 2011, 2012 would be a rebuilding year for the Debtors and that TD should not expect the same financial results from the Debtors as in the past. TD went along with the 2012 debt expansion nonetheless. The Debtors first experienced strife with TD after they hired a Chief Financial Officer who was highly recommended for them by their loan officer at TD. Shortly thereafter, it was discovered that the individual hired was grossly incompetent and engaged in sexual harassment and other inappropriate behavior. As a result, he was terminated. Since that time, the Debtors' relationship with TD deteriorated. In 2013, TD placed the Debtors in default due to non-compliance with certain financial covenants in the loan documents (even though the Debtors had not missed a single payment to TD on any of their loan facilities) and transferred the lending relationship to the workout division of the bank. Since being transferred to loan workout, the Debtors have been subjected to onerous financial, reporting and other demands by TD, including the demand that the Debtors arrange for a refinancing of TD's entire indebtedness in the approximate amount of $13 million, under threat of enforcement action by TD. Although the parties entered into several forbearance agreements, at a substantial cost to the Debtors, while the Debtors were searching for refinancing sources, the latest one expired on Dec. 15, 2014. During that entire period of time, the Debtors made all loan and other payments that were required by TD. The loan workout process and refinancing search imposed upon the Debtors by TD, as it has progressed, has created substantial instability, uncertainty and financial strain for the Debtor's business and, as a result, the Debtors filed for protection under Chapter 11 of the Bankruptcy Code. $45 Mil. in Sales The Debtors say they are operationally sound and historically, have operated at a profit. More recently, the Debtors, on a consolidated basis, generated net income of $500,000 on gross sales of $44.6 million in 2013, net income of $2.6 million on gross sales of $51.5 million in 2011 and net income of $1.4 million on gross sales of $48 million in 2010. In the year 2012, which was an aberration, the Debtors suffered a loss of $1 million on gross sales of $47 million, primarily as a result of millions of dollars of one-time temporary labor charges incurred due to labor strife and onerous regulatory requirements. First Day Motions The Debtors on the Petition Date filed motions to: -- jointly administer their Chapter 11 cases; -- use cash collateral; and -- pay prepetition payroll. The Debtors are seeking expedited consideration of the first day motions. About Ultimate Nutrition Ultimate Nutrition, Inc., develops and distributes nutritional supplements for body building, enhanced athletic performance and fitness. The products are sold worldwide in over 100 countries. The business was founded in 1979 by the late Victor H. Rubino, one of the top amateur power lifters in the United States at that time. The company has two facilities located in Farmington, Connecticut, one product distribution center in New Britain, Connecticut and a research and development center in West Palm Beach, Florida. Ultimate Nutrition and affiliate Prostar, Inc., sought Chapter 11 bankruptcy protection (Bankr. D. Conn. Case Nos. 14-22402 and 14-22403) on Dec. 17, 2014. The Debtors have tapped Pullman & Comley, in Bridgeport, Connecticut, as counsel; LaQuerre Michaud & Company, LLC, as accountant; and Marcum LLP, as financial advisor. Ultimate Nutrition estimated $10 million to $50 million in assets and debt. The schedules of assets and liabilities and statement of financial affairs are due Dec. 31, 2014. The 11 U.S.C. Sec. 341(a) meeting of creditors is slated for Jan. 14, 2015. The deadline to file claims is April 14, 2015. ULTIMATE NUTRITION: Seeks to Use TD Bank's Cash Collateral ---------------------------------------------------------- Ultimate Nutrition, Inc., and Prostar, Inc., ask the Bankruptcy Court to enter interim and final orders authorizing the use of cash collateral ion which T.D. Bank N.A. has a perfected security interest. As of the bankruptcy filing, the Debtors owe T.D. Bank $8 million on a revolving loan, $2.42 million on a term loan, $1.66 million on an export revolving line of credit, and $1.08 million on an equipment loan, and $1.25 million on a guarantee of obligations of VHR Development, LLC. Irve J Goldman, Esq., at Pullman & Comley, in Bridgeport, Connecticut, counsel to the Debtors, tells the Court that given the purported encumbrances upon substantially all of the Debtors' assets, the Debtors will be unable to continue their business operations absent some form of immediate relief from the Court. Without immediate relief, the Debtors will be unable to fund the day-today operations that are essential to the Debtors' continued existence as a going concern to the detriment of their estates, To meet their ongoing financing needs, the Debtors seek Court authority to use their cash collateral. According to Mr. Goldman, if the Debtors are unable to pay in the ordinary course, among other things, their employees, suppliers, utilities and landlords, the Debtors will be forced to cease operations and convert their cases to Chapter 7. The Debtors' business is profitable. In 2013, the Debtors generated in excess of $2 million in EBITDA and, the Debtors expect to continue to operate on a cash positive basis. While the constituencies' disputes are resolved in the Chapter 11 cases, it is in all parties' best interest to preserve the Debtors' business as a going concern. The Debtors seek entry of an interim order authorizing disbursement of cash collateral through January 2015, subject to a budget. As adequate protection, the Debtors propose to grant TD with replacement liens and an allowed administrative expense claim. The replacement liens and the administrative claim are subordinate to payment of (i) up to $100,000 in fees owed to retained professionals postpetition, (ii) quarterly fees owed to the U.S. Trustee, and (c) any unpaid wages owed by the Debtors. ULTIMATE NUTRITION: Asks for Joint Administration of Cases ---------------------------------------------------------- Ultimate Nutrition, Inc., and Prostar, Inc., move for entry of an order by the Bankruptcy Court pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, directing joint administration of their Chapter 11 cases. In light of the ownership and operational interrelationship between the Debtors, joint administration of the Debtors cases is appropriate, counsel to the Debtors state in court papers. The Court will be relieved of the burden of entering duplicate orders and keeping duplicate files, they added. About Ultimate Nutrition Ultimate Nutrition, Inc., develops and distributes nutritional supplements for body building, enhanced athletic performance and fitness. The products are sold worldwide in over 100 countries. The business was founded in 1979 by the late Victor H. Rubino, one of the top amateur power lifters in the United States at that time. The company has two facilities located in Farmington, Connecticut, one product distribution center in New Britain, Connecticut and a research and development center in West Palm Beach, Florida. Ultimate Nutrition and affiliate Prostar, Inc., sought Chapter 11 bankruptcy protection (Bankr. D. Conn. Case Nos. 14-22402 and 14-22403) on Dec. 17, 2014. The Debtors have tapped Pullman & Comley, in Bridgeport, Connecticut, as counsel; LaQuerre Michaud & Company, LLC, as accountant; and Marcum LLP, as financial advisor. Ultimate Nutrition estimated $10 million to $50 million in assets and debt. The schedules of assets and liabilities and statement of financial affairs are due Dec. 31, 2014. The 11 U.S.C. Sec. 341(a) meeting of creditors is slated for Jan. 14, 2015. The deadline to file claims is April 14, 2015. * Jury Awards Highland Capital $40MM in Suit vs. Credit Suisse -------------------------------------------------------------- Patrick Fitzgerald, writing for The Wall Street Journal, reported that a Texas jury awarded hedge-fund firm Highland Capital Management $40 million in its lawsuit against Credit Suisse over inflated appraisals of a dozen luxury properties like golf communities and ski resorts during the mid-2000s. According to the report, Highland sued Credit Suisse in July 2013 in state district court in Dallas, alleging the bank improperly inflated the value of the communities to entice investors. Highland's Claymore Holdings LLC also is seeking another $300 million in connection with the jury's finding that Credit Suisse committed fraud, the Journal said. That case is slated for trial next year, the Journal added. * Proposed Fixes Would Try to Make Bankruptcy Cheaper ----------------------------------------------------- Katy Stech, writing for The Wall Street Journal, reported that experts who want to fix the nation's bankruptcy laws so that more struggling companies survive kept an important question in mind during their two-year project on reform: What's the point of fixing bankruptcy law if companies can't afford to use it? According to the report, some of the country's top restructuring lawyers, professors and advisers who released a nearly-400-page report earlier this month made it clear that, aside from strengthening tools for a bankrupt company, they want to make the process cheaper. * Daniel J. Casamatta Appointed Acting U.S. Trustee for Region 13 ----------------------------------------------------------------- Daniel J. Casamatta has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for Arkansas, Missouri and Nebraska (Region 13), effective on January 1, 2015, the Executive Office for U.S. Trustees announced. Mr. Casamatta replaces Nancy J. Gargula, the U.S. Trustee for Region 10 (Indiana and Central and Southern Illinois), who concurrently has served as the U.S. Trustee for Region 13 since 2006. Mr. Casamatta has served as the Assistant U.S. Trustee in the Kansas City, Mo., office of the U.S. Trustee Program (USTP) since 2008. Prior to that appointment, he served as Assistant U.S. Trustee in Grand Rapids, Mich., for 18 years, and for periods of time was also the Acting Assistant U.S. Trustee in Indianapolis and the Acting Chief of the USTP's National Bankruptcy Training Institute located in the National Advocacy Center in Columbia, S.C. Mr. Casamatta currently leads the USTP's Data Integrity Group to ensure the accuracy and completeness of data in the Program's enforcement reporting systems. Before joining the USTP more than 26 years ago, Mr. Casamatta engaged in the private practice of law in Cleveland, specializing in commercial litigation and bankruptcy matters. He received his law degree from Case Western Reserve University Law School in Cleveland, and his undergraduate degree from Cleveland State University. The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 93 field office locations. Region 13 is headquartered in Kansas City, Mo., with additional offices in Little Rock, Ark., and Omaha, Neb. * Andrew R. Vara Appointed Acting U.S. Trustee for Region 3 ----------------------------------------------------------- Andrew R. Vara has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for Delaware, New Jersey and Pennsylvania (Region 3), effective on January 1, 2015, the Executive Office for U.S. Trustees announced. Mr. Vara replaces Roberta A. DeAngelis, who is retiring after more than 15 years with the U.S. Trustee Program (USTP), including more than eight years as Region 3 U.S. Trustee or Acting U.S. Trustee. Mr. Vara has served as the Assistant U.S. Trustee in the USTP's Cleveland office since 2008. He also previously has headed the USTP's offices in Wilmington, Del., and Manhattan, as Assistant U.S. Trustee and Acting Assistant U.S. Trustee, respectively. He frequently serves as a faculty member and lecturer at the USTP's National Bankruptcy Training Institute located in the National Advocacy Center in Columbia, S.C. Mr. Vara serves as co-chair of education for the American Bankruptcy Institute's (ABI) Ethics and Professional Compensation Committee and recently served as a member of the ABI's Ethics Task Force. Before joining the USTP more than 20 years ago, he clerked for Hon. Laurence Howard, Chief Judge of the U.S. Bankruptcy Court in the Western District of Michigan. Mr. Vara received his law degree with honors from Ohio State University Moritz College of Law in Columbus, Ohio, where he was awarded membership in the Order of the Coif, and his undergraduate degree magna cum laude from Duke University in Durham, N.C. The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 93 field office locations. Region 3 is headquartered in Philadelphia, with additional offices in Wilmington, Del.; Newark, New Jersey; and Harrisburg and Pittsburgh, Pa. * 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 ALSWF US 138.4 (12.0) 2.2 ABSOLUTE SOFTWRE ABT CN 138.4 (12.0) 2.2 ABSOLUTE SOFTWRE OU1 GR 138.4 (12.0) 2.2 ADVANCED EMISSIO ADES US 106.4 (46.1) (15.3) ADVANCED EMISSIO OXQ1 GR 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 ADH2 TH 10,545.0 (1,400.0) 164.0 AIR CANADA ADH2 GR 10,545.0 (1,400.0) 164.0 AIR CANADA AIDEF US 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-CL A AIDIF US 10,545.0 (1,400.0) 164.0 ALLIANCE HEALTHC AIQ US 473.5 (127.3) 62.8 AMC NETWORKS-A 9AC GR 3,663.3 (388.0) 659.4 AMC NETWORKS-A AMCX US 3,663.3 (388.0) 659.4 AMC NETWORKS-A AMCX* MM 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 ANGI US 161.0 (39.4) (22.7) ANGIE'S LIST INC 8AL GR 161.0 (39.4) (22.7) ANGIE'S LIST INC 8AL TH 161.0 (39.4) (22.7) ARRAY BIOPHARMA AR2 TH 135.3 (37.6) 66.2 ARRAY BIOPHARMA ARRY US 135.3 (37.6) 66.2 ARRAY BIOPHARMA AR2 GR 135.3 (37.6) 66.2 AUTOZONE INC AZ5 GR 7,717.1 (1,662.8) (1,383.4) AUTOZONE INC AZ5 TH 7,717.1 (1,662.8) (1,383.4) AUTOZONE INC AZOEUR EU 7,717.1 (1,662.8) (1,383.4) AUTOZONE INC AZO US 7,717.1 (1,662.8) (1,383.4) AUTOZONE INC AZ5 QT 7,717.1 (1,662.8) (1,383.4) AVALANCHE BIOTEC AVU GR 167.2 155.7 161.9 AVALANCHE BIOTEC AAVL US 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 B15A GR 2,115.5 (9.5) 184.7 BRP INC/CA-SUB V BRPIF US 2,115.5 (9.5) 184.7 BRP INC/CA-SUB V DOO CN 2,115.5 (9.5) 184.7 BURLINGTON STORE BUI GR 2,796.9 (167.9) 77.6 BURLINGTON STORE BURL US 2,796.9 (167.9) 77.6 CABLEVISION SY-A CVC US 6,563.7 (5,068.0) 158.9 CABLEVISION SY-A CVY GR 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 CDZI US 56.0 (49.7) 3.0 CADIZ INC 2ZC GR 56.0 (49.7) 3.0 CAESARS ENTERTAI CZR US 24,491.5 (3,714.4) 1,363.3 CAESARS ENTERTAI C08 GR 24,491.5 (3,714.4) 1,363.3 CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - 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 QT 2,072.6 (69.6) 912.1 CIENA CORP CIE1 TH 2,072.6 (69.6) 912.1 CIENA CORP CIEN US 2,072.6 (69.6) 912.1 CIENA CORP CIEN TE 2,072.6 (69.6) 912.1 CIENA CORP CIE1 GR 2,072.6 (69.6) 912.1 CINCINNATI BELL CBB US 1,952.6 (584.4) 50.1 CIVITAS SOLUTION CIVI US 1,031.5 (62.0) 66.1 CIVITAS SOLUTION 1CI GR 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 GR 4,811.2 (177.3) 242.3 CLIFFS NATURAL R CVA TH 4,811.2 (177.3) 242.3 CLIFFS NATURAL R CLF* MM 4,811.2 (177.3) 242.3 CLIFFS NATURAL R CLF US 4,811.2 (177.3) 242.3 COMVERSE INC CNSI US 649.6 (2.8) 4.3 COMVERSE INC CM1 GR 649.6 (2.8) 4.3 CONNECTURE INC 2U7 GR 85.8 (67.7) (55.8) CONNECTURE INC CNXR US 85.8 (67.7) (55.8) 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 DPLO US 338.9 30.1 (43.4) DIPLOMAT PHARMAC 7DP TH 338.9 30.1 (43.4) DIPLOMAT PHARMAC 7DP GR 338.9 30.1 (43.4) DIRECTV DTVEUR EU 22,594.0 (5,557.0) 43.0 DIRECTV DIG1 GR 22,594.0 (5,557.0) 43.0 DIRECTV DTV US 22,594.0 (5,557.0) 43.0 DIRECTV DTV CI 22,594.0 (5,557.0) 43.0 DOMINO'S PIZZA EZV GR 510.9 (1,281.7) 112.9 DOMINO'S PIZZA EZV QT 510.9 (1,281.7) 112.9 DOMINO'S PIZZA EZV TH 510.9 (1,281.7) 112.9 DOMINO'S PIZZA DPZ US 510.9 (1,281.7) 112.9 DUN & BRADSTREET DB5 GR 1,789.2 (1,083.4) (0.3) DUN & BRADSTREET DB5 TH 1,789.2 (1,083.4) (0.3) DUN & BRADSTREET DNB US 1,789.2 (1,083.4) (0.3) DURATA THERAPEUT DRTX US 82.1 (16.1) 11.7 DURATA THERAPEUT DTA GR 82.1 (16.1) 11.7 DURATA THERAPEUT DRTXEUR EU 82.1 (16.1) 11.7 EDGEN GROUP INC EDG US 883.8 (0.8) 409.2 EMPIRE RESORTS I NYNY US 42.4 (14.3) (9.9) EMPIRE RESORTS I LHC1 GR 42.4 (14.3) (9.9) EOS PETRO INC EOPT US 1.3 (28.4) (29.5) EXTENDICARE INC EXETF US 1,885.0 (7.2) 77.0 EXTENDICARE INC EXE CN 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 FERRELLGAS-LP FEG GR 1,680.4 (138.8) (37.1) FERRELLGAS-LP FGP US 1,680.4 (138.8) (37.1) FMSA HOLDINGS IN FM1 GR 1,447.5 (21.7) 271.3 FMSA HOLDINGS IN FMSAEUR EU 1,447.5 (21.7) 271.3 FMSA HOLDINGS IN FMSA US 1,447.5 (21.7) 271.3 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 FREESCALE SEMICO FSL US 3,306.0 (3,593.0) 1,333.0 FRESHPET INC FRPT US 74.5 (34.2) 1.2 FRESHPET INC 7FP GR 74.5 (34.2) 1.2 FRESHPET INC FRPTEUR EU 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 GCY GR 1,749.7 (48.5) 70.2 GENCORP INC GY US 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 GLOBALSTAR INC GSAT US 1,320.0 (14.5) (9.8) 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 GYMBOREE CORP/TH GYMB US 1,284.0 (321.3) 39.5 HCA HOLDINGS INC HCA US 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 2BH GR 29,825.0 (6,018.0) 2,895.0 HD SUPPLY HOLDIN HDS US 6,523.0 (657.0) 1,396.0 HD SUPPLY HOLDIN 5HD GR 6,523.0 (657.0) 1,396.0 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 2,289.9 (117.8) 1,403.7 HOVNANIAN ENT-A HO3 GR 2,289.9 (117.8) 1,403.7 HOVNANIAN ENT-B HOVVB US 2,289.9 (117.8) 1,403.7 HOVNANIAN-A-WI HOV-W US 2,289.9 (117.8) 1,403.7 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 14,306.0 (9,506.2) 1,003.2 INCYTE CORP ICY TH 785.3 (89.6) 538.0 INCYTE CORP ICY GR 785.3 (89.6) 538.0 INCYTE CORP INCY US 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 CN 1,570.4 (311.6) 159.7 JUST ENERGY GROU JE US 1,570.4 (311.6) 159.7 L BRANDS INC LTD GR 7,149.0 (433.0) 1,050.0 L BRANDS INC LBEUR EU 7,149.0 (433.0) 1,050.0 L BRANDS INC LTD TH 7,149.0 (433.0) 1,050.0 L BRANDS INC LB US 7,149.0 (433.0) 1,050.0 LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9 LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9 LEE ENTERPRISES LEE US 811.3 (177.5) (22.6) LORILLARD INC LO US 3,275.0 (2,155.0) 918.0 LORILLARD INC LLV TH 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 MNKD US 386.8 (40.7) (100.3) MANNKIND CORP NNF1 GR 386.8 (40.7) (100.3) MARRIOTT INTL-A MAQ GR 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 MAR US 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 MD7A GR 1,707.3 (86.7) (256.5) MDC PARTNERS-A MDCA US 1,707.3 (86.7) (256.5) MDC PARTNERS-A MDZ/A CN 1,707.3 (86.7) (256.5) MDC PARTNERS-EXC MDZ/N CN 1,707.3 (86.7) (256.5) MERITOR INC AID1 GR 2,502.0 (585.0) 254.0 MERITOR INC MTOR US 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 MIM GR 2,030.0 (2,269.0) 409.0 MICHAELS COS INC MIK US 2,030.0 (2,269.0) 409.0 MONEYGRAM INTERN MGI US 4,600.2 (157.2) 87.1 MORGANS HOTEL GR MHGC US 632.3 (221.3) 89.3 MORGANS HOTEL GR M1U GR 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 7,443.0 (4,618.0) 782.0 NAVISTAR INTL IHR GR 7,443.0 (4,618.0) 782.0 NAVISTAR INTL NAV US 7,443.0 (4,618.0) 782.0 NEFF CORP-CL A NEFF US 612.1 (343.7) (1.5) NEW ENG RLTY-LP NEN US 178.9 (25.9) - NORTHWEST BIO NWBO US 29.4 (31.2) (41.7) NORTHWEST BIO NBYA GR 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 PM1CHF EU 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN 4I1 TH 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM1 TE 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM US 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM1EUR EU 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM FP 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 GR 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 QTS GR 3,106.7 (536.2) 511.8 QUINTILES TRANSN Q US 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 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTPATH INC PRM US 208.0 (91.7) 3.6 RETROPHIN INC RTRX US 145.9 (10.2) (3.7) RETROPHIN INC 17R GR 145.9 (10.2) (3.7) REVLON INC-A RVL1 GR 1,912.6 (570.6) 300.9 REVLON INC-A REV US 1,912.6 (570.6) 300.9 RITE AID CORP RTA GR 7,186.0 (1,792.7) 1,895.3 RITE AID CORP RTA TH 7,186.0 (1,792.7) 1,895.3 RITE AID CORP RAD US 7,186.0 (1,792.7) 1,895.3 ROCKWELL MEDICAL RWM GR 23.9 (5.5) 2.6 ROCKWELL MEDICAL RWM TH 23.9 (5.5) 2.6 ROCKWELL MEDICAL RMTI US 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 RYI US 2,006.2 (38.2) 749.5 RYERSON HOLDING 7RY TH 2,006.2 (38.2) 749.5 RYERSON HOLDING 7RY GR 2,006.2 (38.2) 749.5 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 SBAC US 7,809.0 (297.6) (671.8) 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) SECOND SIGHT MED EYES US 9.6 (19.5) 4.4 SECOND SIGHT MED 24P GR 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 GR 552.9 (139.0) 82.8 SILVER SPRING NE 9SI TH 552.9 (139.0) 82.8 SIRIUS XM CANADA XSR CN 329.4 (87.2) (161.7) SIRIUS XM CANADA SIICF US 329.4 (87.2) (161.7) SPARK ENERGY-A SPKE US 86.5 (0.9) (9.4) SPORTSMAN'S WARE SPWH US 315.7 (35.0) 83.3 SPORTSMAN'S WARE 06S GR 315.7 (35.0) 83.3 SUPERVALU INC SVU US 4,486.0 (634.0) 92.0 SUPERVALU INC SJ1 GR 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 THERAVANCE HVE GR 553.7 (193.1) 237.4 THERAVANCE THRX US 553.7 (193.1) 237.4 THRESHOLD PHARMA THLD US 76.7 (21.0) 49.1 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 1TW GR 2,992.0 (210.0) (161.0) TRAVELPORT WORLD TVPTEUR EU 2,992.0 (210.0) (161.0) TRAVELPORT WORLD TVPT US 2,992.0 (210.0) (161.0) TRINET GROUP INC TNETEUR EU 1,393.3 (48.9) 17.3 TRINET GROUP INC TN3 GR 1,393.3 (48.9) 17.3 TRINET GROUP INC TNET US 1,393.3 (48.9) 17.3 UNILIFE CORP UNIS US 80.7 (2.7) 0.4 UNISYS CORP UIS US 2,279.4 (521.2) 343.9 UNISYS CORP UIS1 SW 2,279.4 (521.2) 343.9 UNISYS CORP UISCHF EU 2,279.4 (521.2) 343.9 UNISYS CORP USY1 GR 2,279.4 (521.2) 343.9 UNISYS CORP USY1 TH 2,279.4 (521.2) 343.9 UNISYS CORP UISEUR EU 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 TH 2,207.4 (748.8) (326.3) VERISIGN INC VRS GR 2,207.4 (748.8) (326.3) VERISIGN INC VRSN US 2,207.4 (748.8) (326.3) VERIZON TELEMATI HUTC US 110.2 (101.6) (113.8) VIRGIN AMERICA I VA US 876.0 (313.0) 19.0 VIRGIN AMERICA I 2VA1 TH 876.0 (313.0) 19.0 VIRGIN AMERICA I 2VA1 GR 876.0 (313.0) 19.0 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WW6 GR 1,558.3 (1,357.7) 60.6 WEIGHT WATCHERS WTWEUR EU 1,558.3 (1,357.7) 60.6 WEIGHT WATCHERS WW6 TH 1,558.3 (1,357.7) 60.6 WEIGHT WATCHERS WTW US 1,558.3 (1,357.7) 60.6 WEST CORP WSTC US 3,929.2 (684.9) 284.7 WEST CORP WT2 GR 3,929.2 (684.9) 284.7 WESTMORELAND COA WME GR 1,578.5 (264.3) 101.2 WESTMORELAND COA WLB US 1,578.5 (264.3) 101.2 WORKIVA INC 0WKA GR 82.6 (23.4) (23.4) WORKIVA INC WK US 82.6 (23.4) (23.4) XERIUM TECHNOLOG XRM US 611.2 (51.2) 102.1 XERIUM TECHNOLOG TXRN GR 611.2 (51.2) 102.1 XOMA CORP XOMA GR 70.9 (18.1) 28.5 XOMA CORP XOMA TH 70.9 (18.1) 28.5 XOMA CORP XOMA US 70.9 (18.1) 28.5 YRC WORLDWIDE IN YEL1 GR 2,046.6 (361.2) 195.9 YRC WORLDWIDE IN YEL1 TH 2,046.6 (361.2) 195.9 YRC WORLDWIDE IN YRCW US 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 ***