/raid1/www/Hosts/bankrupt/TCR_Public/150116.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, January 16, 2015, Vol. 19, No. 16
Headlines
ACCESS CARDIOSYSTEMS: 1st Cir. Rules in "Fincke" Appeal
ACTIVECARE INC: Incurs $16.4 Million Net Loss in Fiscal 2014
ALCO STORE: Sale Process for Tioga, ND Property Approved
ALLIANT HOLDINGS: Moody's Affirms B3 Corporate Family Rating
AMC PROPERTY: Voluntary Chapter 11 Case Summary
ANDALAY SOLAR: Amends 85 Million Shares Resale Prospectus
ASR 2401: Inland Machinery Okayed to Sell Machinery and Equipment
AUBURN TRACE: Seeks to Employ SFL as Bankruptcy Counsel
BEACON POWER: Sues SolarEdge, ImagineSolar for Patent Infringement
BERGER PROPERTIES: Voluntary Chapter 11 Case Summary
BLUE DOOR OF ALBANY: Case Summary & 2 Top Unsecured Creditors
BLUE JACKET: Files for Ch 11 Bankruptcy, Intends to Stay Open
BUFFALO PARK: Lewises Seek to Close Case
CAESARS ENTERTAINMENT: Case Summary & 50 Top Unsecured Creditors
CAESARS ENTERTAINMENT: Del. Judge Won't Halt Chicago Bankruptcy
CAESARS ENTERTAINMENT: Fight Brews Over Bankruptcy Venue for Unit
CAESARS ENTERTAINMENT: U.S. Units File for Chapter 11
COMMUNITY HOME: Trustee Asserts Cash Collateral Use Reasonable
CREEKSIDE ASSOCIATES: Proposes Dilworth Paxson as Counsel
CREEKSIDE ASSOCIATES: Taps Kaufman Coren as Special Counsel
CRYOPORT INC: Names Richard Berman to its Board of Directors
CTI BIOPHARMA: Files Investor Presentation
DEB STORES: Sec. 341(a) Creditors Meeting Slated for Jan. 22
DERMA PEN: Barred From Selling Trademark & Domain Name
DIGERATI TECHNOLOGIES: Investment Banker Won't Get a Dime
DTS8 COFFEE: Secures $65,000 From Common Stock Offering
EASTERN DERRY FIRE DEPT: Relief Association Mulls Ch. 11 Filing
EMERALD INVESTMENTS: Meeting of Creditors Set for Feb. 12
GASFRAC ENERGY: Obtains Court Protection Under CCAA
GLOBAL PROTECTION: 2 Adversary Suits Stayed Pending Criminal Case
GORDIAN MEDICAL: To Seek Approval of 1st Amended Plan Feb. 18
GRUPO UNICOMER: Fitch Affirms 'BB-' IDR; Outlook Stable
HAAS ENVIRONMENTAL: Files Second Amended Plan
HD SUPPLY: Gregory Ledford Quits From Board
HEI INC: Inks Deal with Customer, Proposes Key Suppliers Payment
HORIZON LINES: HSR Act Waiting Period for Hawaii Sale Delayed
IG INVESTMENTS: Moody's Assigns B1 Rating on 1st Lien Loan Add-on
IG INVESTMENTS: S&P Affirms 'B' CCR; Outlook Stable
INDEX RECOVERY: Taps Deloitte Tax to Prepare and File Tax Returns
INTEGRITY FACILITIES: Files for Ch 7, Fails to Pay Durham Public
INTERNATIONAL RECTIFIER: Fitch Withdraws 'BB' IDR on Infineon Deal
INTERNATIONAL RECTIFIER: S&P Withdraws 'BB' CCR Over Infineon Deal
ISR GROUP: Confirms Liquidating Chapter 11 Plan
IVENS PROPERTIES: Case Summary & 2 Largest Unsecured Creditors
JO CLARK: BofA Sues Co. for Failure to Repay $2MM Loan
JOHNSON MEMORIAL: Connecticut Hospital Heads Back Into Chapter 11
JOHNSON MEMORIAL: Files for Ch. 11 to Be Part of Saint Francis Care
JOHNSON MEMORIAL: Voluntary Chapter 11 Case Summary
KIOR INC: Auction Cancelled, Amends Ch. 11 Plan
KIOR INC: Mississippi Sues Executives & Investors for Fraud
KIOR INC: Objects to Conversion Bid; Lender Seeks Receiver
KOPPERS HOLDINGS: Moody's Rates New $400MM Sr. Unsecured Notes B1
KOPPERS INC: S&P Lowers CCR to 'B+' & Rates $400MM Sr. Notes 'B+'
LEHMAN BROTHERS: To Sell Another $2.5 Billion of Unsecured Claims
LEVEL 3 FINANCING: Fitch Rates $500MM Sr. Unsecured Notes 'BB'
LEVEL 3 FINANCING: Moody's Rates New $500MM Sr. Unsecured Notes B3
LEVEL 3 FINANCING: S&P Assigns 'B' Rating on New $500MM Sr. Notes
LEXARIA CORP: MNP LLP Expresses Going Concern Doubt
LOCATION BASED TECH: Incurs $1-Mil. Net Loss in Nov. 30 Quarter
LONGVIEW POWER: Title Policy Trial Set to Begin Next Week
MARION ENERGY: Reaches Agreement on Key Issues with Secured Lender
MEDICURE INC: Issues 205,867 Shares Under Shares for Debt Pact
MGM RESORTS: Inks Employment Agreement with Chief Design Officer
MINERAL PARK: Court Approves Robert J. Keach as Fee Examiner
MOHNS INC: Wisconsin Judge Rules on Ch.7 Trustee Compensation
MP-TECH AMERICA: Wins Dismissal of Bankruptcy Case
NEW LOUISIANA HOLDINGS: Proposes March 16 Claims Bar Date
NII HOLDINGS: Ernst & Young to Provide Additional Services
NII HOLDINGS: Has Until April 13 to Decide on Headquarters Lease
NII HOLDINGS: Luxco Noteholders Object to Timing of Plan
NNN SIENA: Deadline for Amended Plan Extended to Jan. 22
OCWEN FINANCIAL: Moody's Lowers Corporate Family Rating to B3
ONE SOURCE INDUSTRIAL: Files List of Largest Unsecured Creditors
ONE SOURCE INDUSTRIAL: Has Interim Authority to Use Cash
ONE SOURCE INDUSTRIAL: Taps Forshey & Prostok as Ch. 11 Counsel
OPTIM ENERGY: Seeks June 9 Extension of Plan Filing Date
OVERLAND STORAGE: Terminates Registration of Securities
PATRIOT COAL: S&P Lowers Corp. Credit Rating to 'B-'; Outlook Neg.
PHOENIX PAYMENT: Lease Decision Deadline Extended to March 2
PLATINUM PROPERTIES: Estate Fully Administered; Ch. 11 Case Closed
PSL-NORTH AMERICA: Case Reassigned to Judge L. Silverstein
PVA APARTMENTS: Wants Case Converted to Chapter 7
R2D2 LLC: Removal of Bergstein as Manager Valid, 9th Cir. Says
RADIOSHACK CORP: Delays Some Rent Payments Amid Restructuring
RADIOSHACK CORP: Prepares Bankruptcy Filing
REVEL AC: Seeks More Exclusivity as Latest Sale Goes Before Judge
RITE AID: Moody's Affirms Ba3 Rating on Upsized Revolver Loan
ROCKWOOD SPECIALTIES: Moody's Withdraws B1 Corp. Family Rating
ROOMLINX INC: Depends on Credit Line to Fund Operations
SCRUB ISLAND: Persuaded Bankruptcy Judge to Approve Plan
SIGA TECHNOLOGIES: US Trustee to Hold Meeting of Creditors Today
SPECTRUM BRANDS: Fitch Affirms 'BB-' IDR; Outlook Stable
STANLEY K HOLDINGS: Voluntary Chapter 11 Case Summary
SUNTECH AMERICA: Proposes UpShot Services as Claims Agent
SUNTECH AMERICA: Seeks Joint Administration of Cases
SUNTECH AMERICA: To File Liquidating Plan in Near Term
SURGICAL SPECIALTY: Surgical Care Buys Assets for $40MM
SUYAPA CHRISTINA BANDY: Lien Ruling Reversed by District Court
SWANKE HAYDEN: Files for Ch. 11 After Russian Client Refuses to Pay
TARGET CORP: Canadian Unit Files for Bankruptcy, To Close Stores
TRAVELCLICK INC: S&P Assigns 'B-' CCR on Merger with TCH-2
TREETOPS ACQUISITION: Files Chapter 11 Plan
TTM TECHNOLOGIES: Moody's Assigns B2 Corporate Family Rating
TURNAROUND PIZZA: Case Summary & 20 Largest Unsecured Creditors
TWEETER HOME: Judge Grants Liquidating Trustee Bid to Close Cases
TYUS DEVELOPMENT: Case Summary & 5 Largest Unsecured Creditors
UNITEK GLOBAL: Chapter 11 Plan Declared Effective as of Jan. 13
UNITEK GLOBAL: Terminates Rights Deal With American Stock Transfer
VERMILLION INC: Appoints L. Miller SVP Sales/Customer Experience
VERSO PAPER: Moody's Ups CFR to B3 & Rates New $650MM Notes B3
VISUALANT INC: Reports $1 Million Net Loss for Fiscal 2014
WALDORF NEVENS: Files for Chapter 11 Bankruptcy Protection
WET SEAL: May File for Bankruptcy Due to Depletion of Cash
WET SEAL: To Incur Various Charges Related to Store Closures
WINDSOR FINANCING: S&P Lowers Rating to 'BB'; Outlook Stable
[*] ABI Would Slow Bankruptcy Sales, Trim Safe Harbors
[*] Lawyers Properly Stiffed for Fees When Ch. 13 Case Dismissed
[^] BOOK REVIEW: Transnational Mergers and Acquisitions
*********
ACCESS CARDIOSYSTEMS: 1st Cir. Rules in "Fincke" Appeal
-------------------------------------------------------
The U.S. Court of Appeals for the First Circuit tackled an appeal
concerning the construction and application of a section of the
Massachusetts Uniform Securities Act, Mass. Gen. Laws Ch. 110a,
Sec. 410(a)(2), both as to the materiality of a misrepresentation
and as to when an offer or sale has been made "by means of" such a
misrepresentation.
The appeal arose from the Chapter 11 case of Access Cardiosystems,
Inc., a small start-up company and purveyor of portable automated
external heart defibrillators or AED. Despite investments from
four investors of over $20 million from 2001 to 2005, the company
struggled and eventually filed for Chapter 11 in 2005. The founder,
director, and officer of Access was Randall Fincke. The four
investors, in a third amended complaint filed on April 5, 2007,
alleged that Fincke had violated Mass. Gen. Laws ch. 110A, Sec.
410(a)(2), and had committed fraud, negligent misrepresentations,
and numerous breaches of fiduciary duty. The bankruptcy court heard
many witnesses over the course of successive trials on liability
and then on damages. The bankruptcy court found as a matter of fact
that (i) Fincke had made a false statement of material fact to
investors in violation of the Massachusetts blue sky law, Mass Gen.
Laws ch. 110A, Sec. 410(a)(2), and (ii) that one investor, Joseph
Zimmel, was entitled to damages, totaling $1.5 million, for his
investments that Fincke solicited "by means of" that material
misstatement.
Fincke has appealed those two findings to the First Circuit, which
affirmed in a January 13, 2015 decision available at
http://is.gd/9PtiSzfrom Leagle.com.
"There is surprisingly little case law interpreting the statute's
phrase 'by means of.' we are mindful that this provision is to be
'construed as to . . . Make uniform' state securities laws and 'to
coordinate the interpretation and administration of this chapter
with the related federal regulation,'" the First Circuit said.
The appellate case is, RANDALL FINCKE, Appellant, v. ACCESS
CARDIOSYSTEMS, INC.; JOHN J. MORIARTY; RICHARD F. CONNOLLY, JR.;
JOSEPH R. ZIMMEL; NORTH AMERICAN ENTERPRISES, INC.; JOHN MORIARTY
AND ASSOCIATES, Appellees, No. 14-1276 (1st Cir.).
Fincke is represented by:
John J.E. Markham, II, Esq.
MARKHAM & READ
One Commercial Wharf West
Boston, MA 02110
Tel: 617-523-6329
Fax: 617-742-8604
The Appellees are represented by:
Barry C. Klickstein, Esq.
Sara A. Colb, Esq.
DAY PITNEY LLP
One International Place
Boston, MA 02110
Tel: (617) 345 4882
Fax: (617) 206 9330
E-mail: bklickstein@daypitney.com
scolb@daypitney.com
Headquartered in Concord, Massachusetts, Access CardioSystems,
Inc. -- http://www.accesscardiosystems.com/-- developed,
marketed, and sold portable automated external defibrillators.
The Company filed for Chapter 11 protection (Bankr. D. Mass. Case
No. 05-40809) on Feb. 18, 2005. Jeffrey D. Sternklar, Esq., at
Duane Morris LLP, represented the Debtor in its restructuring
efforts. When the Debtor filed for protection from its creditors,
it estimated assets and debts of $1 million to $10 million.
ACTIVECARE INC: Incurs $16.4 Million Net Loss in Fiscal 2014
------------------------------------------------------------
ActiveCare, Inc., filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K disclosing a net loss
attributable to common stockholders of $16.43 million on $6.10
million of chronic illness monitoring revenues for the year ended
Sept. 30, 2014, compared to a net loss attributable to common
stockholders of $27.45 million on $4.24 million of chronic illness
monitoring revenues during the prior fiscal year.
As of Sept. 30, 2014, ActiveCare had $5.42 million in total assets,
$10.56 million in total liabilities and a $5.14 million total
stockholders' deficit.
Tanner LLC, in Salt Lake City, Utah, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Sept. 30, 2014. The independent auditors noted that
the Company has recurring losses, negative cash flows from
operating activities, negative working capital, negative total
equity, and certain debt that is in default. These conditions, the
auditors said, among others, raise substantial doubt about the
Company's ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
http://is.gd/Q6PReZ
About ActiveCare
South West Valley City, Utah-based ActiveCare, Inc., is organized
into three business segments based primarily on the nature of the
Company's products. The Stains and Reagents segment is engaged in
the business of manufacturing and marketing medical diagnostic
stains, solutions and related equipment to hospitals and medical
testing labs. The CareServices segment is engaged in the business
of developing, distributing and marketing mobile health monitoring
and concierge services to distributors and customers. The Chronic
Illness Monitoring segment is primarily engaged in the monitoring
of diabetic patients on a real time basis.
The Company's business plan is to develop and market products for
monitoring the health of and providing assistance to mobile and
homebound seniors and the chronically ill, including those who may
require a personal assistant to check on them during the day to
ensure their safety and well being.
ALCO STORE: Sale Process for Tioga, ND Property Approved
--------------------------------------------------------
The U.S. Bankruptcy Court authorized ALCO Stores, Inc., to sell its
assets -- real property located at 6527 Highway 40, Tioga, North
Dakota -- in an auction led by Home of Economy, Inc.
The Court also approved the bidding procedures to govern the sale
of assets. The auction was scheduled for Dec. 17, 2014, at the
offices of DLA Piper LLP (US), 1717 Main Street, Suite 4600,
Dallas, Texas.
The Tioga Purchase Agreement provides for, among other things:
-- purchase price for the owned real property subject to the
dated as of Nov. 29, 2014, will be equal to $3,500,000;
-- the break-up fee with respect to the Tioga Purchase Agreement
will be equal to $50,000;
-- the Debtors are authorized to enter into that agreement for
assignment and assumption of lease dated as of Nov. 29, 2014,
between the Debtor and Home of Economy, relating to the assignment
and assumption of the Debtors' Leased Premises located at 113 6th
Avenue SE, Suite 5200, Watford City, North Dakota, and will be
authorized to take any and all actions necessary or appropriate to
implement or consummate the Watford City Agreement. The purchase
price for the assignment of the Leased Premises subject to Watford
City Agreement will be equal to $500,000, plus cure of monetary
defaults under the lease to the extent required under Section
365(b) of the Bankruptcy Code in an amount not to exceed $35,000.
There is no break-up fee with respect to the Watford City
Agreement.
Blackhawk Network, Inc., objected to the motion approving
comprehensive sale process relating to store closing sales and sale
to highest bidder, and to approve agency agreement.
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 $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.
ALLIANT HOLDINGS: Moody's Affirms B3 Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has affirmed the B3 corporate family
rating and B3-PD probability of default rating of Alliant Holdings
I, LLC (Alliant) following the announcement that Alliant will issue
an incremental $360 million first-lien term loan. Net proceeds from
the offering will be used for general corporate purposes, including
to fund future acquisitions and pay down revolving credit loans
that were drawn to fund prior acquisitions. The pending issuance
changes Alliant's overall funding mix, resulting in a one-notch
downgrade of Alliant's first-lien term loan to B2 from B1. The
group's senior unsecured notes were affirmed at Caa2. The outlook
for the ratings is stable.
Ratings Rationale
Alliant's ratings reflect its leading position in several niche
markets, steady organic revenue growth and strong operating
margins. A key strength is the company's emphasis on specialty
programs, where the broker offers distinct value both to insurance
buyers and insurance carriers. These strengths are tempered by the
company's aggressive financial leverage and moderate interest
coverage, along with its contingent/litigation risk related to
"leveraged hires" (recruiting seasoned producers with specialty
books of business). The company also faces potential liabilities
from errors and omissions, a risk inherent in professional
services.
Giving effect to the proposed financing, Alliant's debt-to-EBITDA
ratio will be over 10x, based on Moody's estimates. Moody's expects
that Alliant will reduce its debt-to-EBITDA ratio below 8x over the
next 12-18 months through a combination of organic growth and lower
costs associated with leveraged hires.
Factors that could lead to an upgrade of Alliant's ratings include:
(i) debt-to-EBITDA ratio below 5.5x; (ii) (EBITDA - capex) coverage
of interest exceeding 2x; and (iii) free-cash-flow-to-debt ratio
exceeding 5%.
Factors that could lead to a rating downgrade include: (i)
debt-to-EBITDA ratio above 8x adjusted; (ii) (EBITDA - capex)
coverage of interest below 1.2x; and (iii) free-cash-flow-to-debt
ratio below 2%.
Moody's has affirmed the following ratings (with revised loss given
default (LGD assessments):
Corporate family rating at B3;
Probability of default rating at B3-PD.
$450 million senior unsecured notes Caa2 (to LGD5, 87% from LGD5,
84%).
Moody's has downgraded the following ratings (with revised loss
given default (LGD) assessments):
$100 million first-lien revolving credit facility to B2 from B1 (to
LGD3, 34% from LGD2, 29%);
$1,045 million (including $360 pending issuance) first-lien term
loan to B2 from B1 (to LGD3, 34% from LGD2, 29%).
The principal methodology used in these ratings was Moody's Global
Rating Methodology for Insurance Brokers & Service Companies
published in February 2012. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.
Alliant, based in Newport Beach, California, is a specialty
oriented insurance broker providing property & casualty and
employee benefits products and services to middle-market clients
across the US. For the 12 months through September 2014, Alliant
generated revenues of approximately $597 million.
AMC PROPERTY: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: AMC Property Holdings, LLC
704 Nevada Way
Boulder City, NV 89005
Case No.: 15-10141
Chapter 11 Petition Date: January 14, 2015
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Hon. August B. Landis
Debtor's Counsel: Bart K. Larsen, Esq.
KOLESAR & LEATHAM, CHTD.
400 South Rampart Boulevard
Suite 400, Las Vegas, NV 89145
Tel: (702) 362-7800
Fax: (702) 362-9472
Email: blarsen@klnevada.com
info@klnevada.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Bret Caruso, manager.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
ANDALAY SOLAR: Amends 85 Million Shares Resale Prospectus
---------------------------------------------------------
Andalay Solar, Inc., filed with the U.S. Securities and Exchange
Commission an amended Form S-1 registration statement relating to
the offer and resale of up to 85,000,000 shares of the Company's
common stock, par value $0.001 per share, by the selling
stockholder, Southridge Partners II LP. The Company amended the
registration statement to delay its effective date.
All of those shares represent shares that Southridge has agreed to
purchase if put to it by the Company pursuant to, and subject to
the volume limitations and other limitation of, the terms of the
Equity Purchase Agreement the Company entered into with them on
Dec. 10, 2014, which superseded and replaced the Company's prior
Equity Purchase Agreement that they entered into on Jan 23, 2014,
and terminated on Dec. 9, 2014. Pursuant to the terms of the
December Equity Purchase Agreement the Company agreed to pay
Southridge a commitment fee of 1,000,000 shares of its common stock
(having a value of $17,900 based upon the closing price of our
common stock on Dec. 5, 2014) of which 500,000 shares of the
Company's common stock will be issued to Southridge on the date
that the registration statement of which this prospectus forms a
part is declared effective and the remaining 500,000 shares of
common stock will be issued on the date that the Company delivers
its first Draw Down Notice to Southridge. None of the commitment
fee shares are included in the 85,000,000 shares of common stock
being registered under the registration statement of which this
prospectus forms a part.
Subject to the terms and conditions of the December Equity Purchase
Agreement the Company has the right to "put," or sell, up to
$5,000,000 worth of shares of its common stock to Southridge. To
date, the Company has sold 35,000,000 shares of its common stock
for gross proceeds of $684,000 pursuant to the Prior Equity
Purchase Agreement that it entered into with Southridge on
Jan. 23, 2014.
The Company's common stock became eligible for trading on the OTCQB
on Sept. 6, 2012. The Company's common stock is quoted on the
OTCQB under the symbol "WEST". The closing price of the Company's
stock on Jan. 8, 2015, was $0.0179.
A full-text copy of the amended Form S-1 is available at:
http://is.gd/J2KkqB
About Andalay Solar
Founded in 2001, Andalay Solar, Inc., formerly Westinghouse Solar,
Inc., is a provider of innovative solar power systems. In 2007,
the Company pioneered the concept of integrating the racking,
wiring and grounding directly into the solar panel. This
revolutionary solar panel, branded "Andalay", quickly won industry
acclaim. In 2009, the Company again broke new ground with the
first integrated AC solar panel, reducing the number of components
for a rooftop solar installation by approximately 80 percent and
lowering labor costs by approximately 50 percent. This AC panel,
which won the 2009 Popular Mechanics Breakthrough Award, has
become the industry's most widely installed AC solar panel. A new
generation of products named "Instant Connect" was introduced in
2012 and is expected to achieve even greater market acceptance.
Andalay Solar reported a net loss attributable to common
stockholders of $3.85 million on $1.12 million of net revenue for
the year ended Dec. 31, 2013, as compared with a net loss
attributable to common stockholders of $9.15 million on $5.22
million of net revenue in 2012.
Burr Pilger Mayer, Inc., in San Francisco, California, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2013. The independent
auditors noted that the Company's significant operating losses and
negative cash flow from operations raise substantial doubt about
its ability to continue as a going concern.
ASR 2401: Inland Machinery Okayed to Sell Machinery and Equipment
-----------------------------------------------------------------
The U.S. Bankruptcy Court authorized Debtor Inland Machinery, Inc.,
to:
1) conduct an auction sale of the estate's machinery and
equipment; and
2) employ and pay Ritchie Bros. Auctioneers (America) Inc.
to coordinate and auction the sale of Inland's assets.
The assets are no longer needed in the operation of Inland's
machinery and equipment rental business.
Inland is also authorized to use the proceeds of the auction sale
to make Court approved disbursements to the auctioneer pursuant to
the terms of the auction contract. After payment of the
auctioneer's compensation, the net auction proceeds will be held by
the Debtor in a segregated account subject to the liens and cash
collateral agreements with Federal Insurance Company and Berkley
Regional Insurance Company.
The Debtor is represented by:
James C. Bastian, Jr., Esq.
Ryan D. O'Dea, Esq.
SHULMAN HODGES & BASTIAN LLP
8105 Irvine Center Drive, Suite 600
Irvine, CA 92618
Tel: (949) 340-3400
Fax: (949) 340-3000
E-mail: jbastian@shbllp.com
rodea@shbllp.com
About ASR Constructors
ASR Constructors, Inc., filed a Chapter 11 petition (Bankr. C.D.
Cal. Case No. 13-25794) on Sept. 20, 2013. The petition was
signed by Alan Regotti as president. ASR disclosed $17.6 million
in assets and $18.9 million in liabilities as of the Chapter 11
filing.
Judge Mark D. Houle presides over the case. James C. Bastian,
Jr., Esq., at Shulman Hodges & Bastian, LLP, serves as the
Debtor's counsel.
The Law Office of John D. Mannerino serves as corporate counsel to
the Debtor. Rodgers, Anderson, Malody & Scott LLP CPAs serves as
accountant to the Debtor.
Two affiliates -- Another Meridian Company, LLC and Inland
Machinery, Inc. -- also filed Chapter 11 petitions.
The U.S. Trustee notified the Bankruptcy Court of its inability to
appoint an official committee of unsecured creditors in the
Chapter 11 case of the Debtors.
AUBURN TRACE: Seeks to Employ SFL as Bankruptcy Counsel
-------------------------------------------------------
Auburn Trace, Ltd., seeks authority from the U.S. Bankruptcy Court
for the Southern District of Florida, West Palm Division, to employ
Bradley S. Shraiberg, Esq., of Shraiberg, Ferrara & Landau, P.A.,
as general bankruptcy counsel.
The professional services SFL will render are as follows:
(a) to advise the Debtor generally regarding matters of
bankruptcy law in connection with the Chapter 11 case;
(b) to advise the Debtor of the requirements of the Bankruptcy
Code, the Federal Rules of Bankruptcy Procedure, applicable
bankruptcy rules, including local rules, pertaining to the
administration of the case, and the U.S. Trustee guidelines
related to the daily operation of its business and
administration of the estate;
(c) to represent the Debtor in all proceedings before the
Court;
(d) to prepare and review motions, pleadings, orders,
applications, adversary proceedings, and other legal
documents arising from the case;
(e) to negotiate with creditors, prepare and seek confirmation
of a plan of reorganization and related documents, and
assist the Debtor with implementation of any plan; and
(f) to perform all other legal services for the Debtor.
SFL has agreed to perform the services at the following hourly
rates: $100 for legal assistants and $285 to $475 for attorneys.
The hourly rate for Mr. Shraiberg is $475. The Debtor also
proposes to reimburse SFL for expenses.
On Sept. 24, 2014, the Debtor paid SFL a retainer in the amount of
$3,500. Thereafter, the Debtor paid SFL a retainer in the amount
of $42,000, which includes the filing fee of $1,717. Of the
retainer, $10,000 was applied by SFL as an earned on receipt flat
fee for pre-bankruptcy matters, including the preparation of all
paperwork required to file the bankruptcy.
From May 7, 2014, through the beginning of December 2014, SFL
represented Brian J. Hinners, the president of Auburn Trace Joint
Venture, the general partner of the Debtor, in his father, Thomas
G. Hinner's Chapter 7 bankruptcy proceeding (Case No.
11-33802-PGH). For the services provided for Brian J. Hinners, SFL
received a retainer of $5,000, on May 14, 2014, paid by Auburn
Trace, Ltd. SFL no longer represents Brian J. Hinners as that
matter has concluded and is not owed any monies from Brian J.
Hinners.
Mr. Shraiberg assures the Court that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtors and
their estates.
Mr. Shraiberg may be reached at:
Bradley S Shraiberg, Esq.
SHRAIBERG, FERRARA, & LANDAU P.A.
2385 NW Executive Center Dr. #300
Boca Raton, FL 33431
Tel: (561) 443-0801
Fax: (561) 998-0047
E-mail: bshraiberg@sfl-pa.com
Auburn Trace filed a Chapter 11 bankruptcy petition (Bank. S.D.
Fla. Case No. 15-10317) on Jan. 7, 2015. The petition was signed
by Brian J. Hinners as president. The Debtor estimated assets of
$10 million to $50 million and liabilities of $1 million to $10
million. The case is assigned to Judge Paul G. Hyman, Jr. Bradley
S Shraiberg, Esq., at Shraiberg, Ferrara & Landau, P.A., serves as
the Debtor's counsel.
BEACON POWER: Sues SolarEdge, ImagineSolar for Patent Infringement
------------------------------------------------------------------
Mikal Watts, Esq., has filed on behalf of Beacon Power LLC a patent
infringement lawsuit in federal court in San Antonio, alleging that
SolarEdge Technologies Inc. and ImagineSolar LLC infringed upon the
Company's solar power technology patents, Sergio Chapa at San
Antonio Business Journal reports.
According to Business Journal, the Comopany claims that SolarEdge
Technologies tried to purchase one of the patents during the
Company's bankruptcy proceedings, although the deal never went
through. The Company, the report adds, alleges that SolarEdge
Technologies acquired and sold the technology in addition to giving
it to ImagineSolar for training purposes.
SolarEdge Technologies illegally appropriated the patented
technology, and is using the stolen technology to train students
and workers at four CPS Energy solar projects in the San Antonio
area on how to use that technology, Business Journal relates,
citing the Company. The report states that San Antonio College is
allegedly offering the training using Beacon's technology.
About Beacon Power
Beacon Power Corporation, along with affiliates, filed for Chapter
11 protection (Bankr. D. Del. Case No. 11-13450) on Oct. 30, 2011,
in Delaware, becoming the second cleantech company which has been
backed by the U.S. Department of Energy via loan guarantees --
after Solyndra LLC -- to fail in 2011. Solyndra declared Chapter
11 bankruptcy on Sept. 6, 2011.
Beacon built a $69 million facility with 20 megawatts of balancing
capacity in Stephentown, New York, funded mostly by the DoE loan.
Brown Rudnick and Potter Anderson & Corroon serve as the Debtors'
counsel. The Debtors tapped Miller Wachman, LLP as auditors,
Pluritas, LLC as intellectual property advisors, CRG Partners
Group LLC as financial advisors.
Beacon disclosed assets of $72 million and debt totaling
$47 million, including a $39.1 million loan guaranteed by the
Energy Department.
Roberta A. DeAngelis, the United States Trustee for Region 3,
appointed four unsecured creditors to serve on the Official
Committee of Unsecured Creditors of Beacon Power.
Affiliates that simultaneously sought Chapter 11 protection are
Stephentown Holding LLC (Bankr. D. Del. Case No. 11-13451) and
Stephentown Regulation Services LLC (Bankr. D. Del. Case No.
11-13452).
BERGER PROPERTIES: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Berger Properties of Texas, LLC 15-30313
416 Hawthorne Street
Houston, TX 77006
Berger Properties of Ohio, LLC 15-30314
15800 Detroit Road, Suite A
Lakewood, OH 44107
Berger Properties of Florida, LLC 15-30315
15800 Detroit Road, Suite A
Lakewood, OH 44107
Berger Properties of Maryland, LLC 15-30317
15800 Detroit Road, Suite A
Lakewood, OH 44107
S & D Unlimited, LLC 15-30318
15800 Detroit Road, Suite A
Lakewood, OH 44107
S & D Unlimited of Texas, LLC 15-30319
416 Hawthorne Street
Houston, TX 77006
The Unlimited Group, Inc. 15-30321
15800 Detroit Road, Suite A
Lakewood, OH 44107
Chapter 11 Petition Date: January 14, 2015
Court: United States Bankruptcy Court
Southern District of Texas (Houston)
Judge: Hon. Jeff Bohm
Debtors' Counsel: Christopher Adams, Esq.
OKIN ADAMS & KILMER LLP
1113 Vine Street, Suite 201
Houston, TX 77002
Tel: 713-228-4100
Fax: 888-865-2118
Email: cadams@oakllp.com
Estimated Estimated
Assets Liabilities
---------- -----------
Berger Properties of Texas $1MM-$10MM $1MM-$10MM
Berger Properties of Ohio $1MM-$10MM $1MM-$10MM
Berger Properties of Florida $1MM-$10MM $1MM-$10MM
Berger Properties of Maryland $1MM-$10MM $1MM-$10MM
S & D Unlimited, LLC $1MM-$10MM $1MM-$10MM
S & D Unlimited of Texas $0-$50K $1MM-$10MM
The Unlimited Group, Inc. $1MM-$10MM $1MM-$10MM
The petitions were signed by Stuart Berger, president.
The Debtors did not include a list of their largest unsecured
creditors when they filed the petition.
BLUE DOOR OF ALBANY: Case Summary & 2 Top Unsecured Creditors
-------------------------------------------------------------
Debtor: Blue Door of Albany, LLC
P.O. Box 6789
Albany, NY 12206
Case No.: 15-10058
Chapter 11 Petition Date: January 14, 2015
Court: United States Bankruptcy Court
Northern District of New York (Albany)
Debtor's Counsel: Brian H. Bronsther, Esq.
THE BRONSTHER LAW FIRM, P.C.
12 Century Hill Dr
Latham, NY 12110
Tel: (518)373-9000
Fax: 518-373-9042
Email: brian@bronstherlaw.com
Total Assets: $1.22 million
Total Liabilities: $738,000
The petition was signed by John Sweeter, member.
A list of the Debtor's two largest unsecured creditors is available
for free at http://bankrupt.com/misc/nynb15-10058.pdf
BLUE JACKET: Files for Ch 11 Bankruptcy, Intends to Stay Open
-------------------------------------------------------------
Carol Deptolla, writing for Journal Sentinel, reports that Blue
Jacket Bar & Restaurant has filed with the U.S. Bankruptcy Court
for the Eastern District of Wisconsin for Chapter 11 bankruptcy
protection this week.
According to a financial statement filed with the case, the Company
as of Sept. 30, 2014, had current assets totaling $20,491, most of
it in food and beverage inventory, and current liabilities totaling
$141,885.
Journal Sentinel relates that the Company's co-owner, Tom van
Heijningen, said he intends to keep the restaurant open "and come
through this alive and well."
Blue Jacket Bar & Restaurant -- http://bluejacketbar.com/-- is a
43-seat restaurant three blocks from Lake Michigan in Milwaukee,
Wisconsin's foodie hub, Walker's Point. Tom van Heijningen nd his
wife, Laura, opened the restaurant in June 2013.
BUFFALO PARK: Lewises Seek to Close Case
----------------------------------------
Reorganized Debtors Ronald P. Lewis and Carol J. Lewis filed a
motion close the bankruptcy case of their business, Buffalo Park
Development Properties, Inc. The Debtors won confirmation of their
Plan of Reorganization on Sept. 24, 2014. The deposits required by
the Plan, if any, have been distributed in accordance with the
provisions of the Plan. The Debtors have been making distributions
and payments to creditors and other interested parties pursuant to
the terms of the Plan.
About Buffalo Park & Lewises
Buffalo Park Development Properties, Inc., filed a Chapter 11
petition (Bankr. D. Colo. Case No. 13-17669) on May 7, 2013.
Ronald P. Lewis signed the petition as owner and CEO. Buffalo
Park disclosed $20,777,601 assets and $11,294,567 liabilities in
its schedules. Robert Padjen, Esq., at Laufer and Padjen LLC
serves as counsel to Buffalo Park. Judge Elizabeth E. Brown
presides over the case.
Formed in 1964, Buffalo Park is a real estate development,
construction, management and sales business. It has developed and
sold numerous subdivisions and currently has several land
developments in progress. Buffalo Park owns and operates
community water companies that require a licensed water works
operator and owns a commercial business center.
Owners of Buffalo Park -- Ronald P. Lewis and Carol J. Lewis --
filed for protection under Chapter 11 of the Bankruptcy Code on
March 21, 2012. The Lewises have been investing in, developing
and managing real property for more than 60 years. Aside from
Buffalo Park, the Lewises have interests in Evergreen Memorial
Park, Inc., Elf Creek Properties, LLC, and Mountain Land
Construction, Co. The Lewises are represented by attorneys at
Kutner Brinen Garber P.C.
The Bankruptcy Court granted joint administration of the two
estates on July 18, 2013.
On Aug. 30, 2013, the Lewises and Buffalo Park filed a Joint Plan
of Reorganization. Buffalo Park was unable to reach agreements
with its primary secured lenders CCB and Mutual of Omaha, and has
determined not to proceed with a reorganization Plan. Rather,
Buffalo Park is proceeding with a sale of its water companies
pursuant to 11 U.S.C. Sec. 363 and has agreed to relief from stay
as to Mutual and possibly CCB.
CAESARS ENTERTAINMENT: Case Summary & 50 Top Unsecured Creditors
----------------------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Caesars Entertainment Operating Company, Inc. 15-01145
fka Harrah's Operating Company, Inc.
fka Harrah's Casino Hotel Reno
One Caesars Palace Dr.
Las Vegas, NV 89109
190 Flamingo, LLC 15-01263
3535 LV Corp. 15-01146
AJP Holdings, LLC 15-01297
AJP Parent, LLC 15-01264
B I Gaming Corporation 15-01147
Bally's Midwest Casino, Inc. 15-01315
Bally's Park Place, Inc. 15-01148
Benco, Inc. 15-01152
Biloxi Hammond, LLC 15-01156
Biloxi Village Walk Development, LLC 15-01208
BL Development Corp. 15-01150
Boardwalk Regency Corporation 15-01151
Caesars Entertainment Canada Holding, Inc. 15-01158
Caesars Entertainment Finance Corp 15-01153
Caesars Entertainment Golf, Inc. 15-01154
Caesars Entertainment Retail, Inc. 15-01157
Caesars India Sponsor Company, LLC 15-01194
Caesars License Company, LLC 15-01199
Caesars Marketing Services Corporation 15-01203
Caesars New Jersey, Inc. 15-01159
Caesars Palace Corporation 15-01161
Caesars Palace Realty Corp. 15-01164
Caesars Palace Sports Promotions, Inc. 15-01169
Caesars Riverboat Casino, LLC 15-01172
Caesars Trex, Inc. 15-01171
Caesars United Kingdom, Inc. 15-01174
Caesars World Marketing Corporation 15-01176
Caesars World Merchandising, Inc. 15-01160
Caesars World, Inc. 15-01173
California Clearing Corporation 15-01177
Casino Computer Programming, Inc. 15-01162
Chester Facility Holding Company, LLC 15-01313
Consolidated Supplies, Services and Systems 15-01163
DCH Exchange, LLC 15-01281
DCH Lender, LLC 15-01282
Desert Palace, Inc. 15-01167
Durante Holdings, LLC 15-01209
East Beach Development Corporation 15-01175
FHR Corporation 15-01178
Flamingo-Laughlin, Inc. 15-01219
GCA Acquisition Subsidiary, Inc. 15-01181
GNOC, Corp. 15-01184
Grand Casinos of Biloxi, LLC 15-01221
Grand Casinos of Mississippi, LLC - Gulfport 15-01223
Grand Casinos, Inc. 15-01186
Grand Media Buying, Inc. 15-01187
Harrah South Shore Corporation 15-01224
Harrah's Arizona Corporation 15-01213
Harrah's Bossier City Investment Company, L.L.C. 15-01218
Harrah's Bossier City Management Company, LLC 15-01220
Harrah's Chester Downs Management Company, LLC 15-01314
Harrah's Illinois Corporation 15-01182
Harrah's Interactive Investment Company 15-01189
Harrah's International Holding Company, Inc. 15-01192
Harrah's Investments, Inc. 15-01193
Harrah's Management Company 15-01195
Harrah's MH Project, LLC 15-01288
Harrah's NC Casino Company, LLC 15-01280
Harrah's New Orleans Management Company 15-01222
Harrah's North Kansas City LLC 15-01266
Harrah's Operating Company Memphis, LLC 15-01269
Harrah's Pittsburgh Management Company 15-01197
Harrah's Reno Holding Company, Inc. 15-01198
Harrah's Shreveport Investment Company, LLC 15-01225
Harrah's Shreveport Management Company, LLC 15-01185
Harrah's Shreveport/Bossier City Holding Co., LLC 15-01188
Harrah's Shreveport/Bossier City Investment Co, LLC 15-01262
Harrah's Southwest Michigan Casino Corporation 15-01201
Harrah's Travel, Inc. 15-01202
Harrah's West Warwick Gaming Company, LLC 15-01271
Harveys BR Management Company, Inc. 15-01204
Harveys C.C. Management Company, Inc. 15-01205
Harveys Iowa Management Company, Inc. 15-01206
Harveys Tahoe Management Company, Inc. 15-01191
H-BAY, LLC 15-01273
HBR Realty Company, Inc. 15-01207
HCAL, LLC 15-01196
HCR Services Company, Inc. 15-01210
HEI Holding Company One, Inc. 15-01211
HEI Holding Company Two, Inc. 15-01214
HHLV Management Company, LLC 15-01277
Hole in the Wall, LLC 15-01285
Horseshoe Entertainment 15-01200
Horseshoe Gaming Holding, LLC 15-01227
Horseshoe GP, LLC 15-01230
Horseshoe Hammond, LLC 15-01232
Horseshoe Shreveport, L.L.C. 15-01233
HTM Holding, Inc. 15-01217
Koval Holdings Company, LLC 15-01289
Koval Investment Company, LLC 15-01235
Las Vegas Golf Management, LLC 15-01237
Las Vegas Resort Development, Inc. 15-01231
LVH Corporation 15-01234
Martial Development Corp. 15-01236
Nevada Marketing, LLC 15-01290
New Gaming Capital Partnership, a Nevada LP 15-01244
Ocean Showboat, Inc. 15-01238
Parball Corporation 15-01240
Players Bluegrass Downs, Inc. 15-01242
Players Development, Inc. 15-01253
Players Holding, LLC 15-01255
Players International, LLC 15-01292
Players LC, LLC 15-01307
Players Maryland Heights Nevada, LLC 15-01257
Players Resources, Inc. 15-01243
Players Riverboat II, LLC 15-01309
Players Riverboat Management, LLC 15-01226
Players Riverboat, LLC 15-01228
Players Services, Inc. 15-01229
Reno Crossroads LLC 15-01293
Reno Projects, Inc. 15-01245
Rio Development Company, Inc. 15-01247
Robinson Property Group Corp. 15-01250
Roman Entertainment Corporation of Indiana 15-01252
Roman Holding Corporation of Indiana 15-01254
Showboat Atlantic City Mezz 1, LLC 15-01295
Showboat Atlantic City Mezz 2, LLC 15-01296
Showboat Atlantic City Mezz 3, LLC 15-01298
Showboat Atlantic City Mezz 4, LLC 15-01300
Showboat Atlantic City Mezz 5, LLC 15-01302
Showboat Atlantic City Mezz 6, LLC 15-01303
Showboat Atlantic City Mezz 7, LLC 15-01305
Showboat Atlantic City Mezz 8, LLC 15-01306
Showboat Atlantic City Mezz 9, LLC 15-01308
Showboat Atlantic City Operating Company, LLC 15-01256
Showboat Atlantic City Propco, LLC 15-01258
Showboat Holding, Inc. 15-01261
Southern Illinois Riverboat/Casino Cruises, Inc. 15-01143
Tahoe Garage Propco, LLC 15-01310
TRB Flamingo, LLC 15-01299
Trigger Real Estate Corporation 15-01259
Tunica Roadhouse Corporation 15-01260
Village Walk Construction, LLC 15-01304
Winnick Holdings, LLC 15-01311
Winnick Parent, LLC 15-01301
Harrah's Chester Downs Investment Company, LLC 15-01283
Harrah's Iowa Arena Management, LLC 15-01284
PHW Manager, LLC 15-01312
Harrah's Maryland Heights Operating Company 15-01286
Caesars Entertainment Windsor Limited 15-01190
Caesars Escrow Corporation 15-01155
Caesars Operating Escrow LLC 15-01272
Des Plaines Development Limited Partnership 15-01144
PHW Las Vegas, LLC 15-01251
3535 LV Parent, LLC 15-01149
Bally's Las Vegas Manager, LLC 15-01265
Caesars Baltimore Acquisition Company, LLC 15-01268
Caesars Baltimore Management Company, LLC 15-01165
Corner Investment Company Newco, LLC 15-01275
Cromwell Manager, LLC 15-01276
FHR Parent, LLC 15-01212
Flamingo-Laughlin Parent, LLC 15-01216
JCC Holding Company II Newco, LLC 15-01287
Laundry Parent, LLC 15-01239
LVH Parent, LLC 15-01241
Octavius Linq Holding Co., LLC 15-01246
Parball Parent, LLC 15-01249
The Quad Manager, LLC 15-01294
CZL Development Company, LLC 15-01278
BPP Providence Acquisition Company, LLC 15-01180
Caesars Air, LLC 15-01267
Caesars Baltimore Development Company, LLC 15-01183
Caesars Massachusetts Acquisition Company, LLC 15-01270
Caesars Massachusetts Development Company, LLC 15-01166
Caesars Massachusetts Investment Company, LLC 15-01168
Caesars Massachusetts Management Company, LLC 15-01170
CG Services, LLC 15-01179
Christian County Land Acquisition Company, LLC 15-01274
CZL Management Company, LLC 15-01279
HIE Holdings Topco, Inc. 15-01215
PH Employees Parent, LLC 15-01248
PHW Investments, LLC 15-01291
Type of Business: CEOC, together with its Debtor and non-Debtor
subsidiaries, provides casino entertainment
services and owns, operates, or manages 38
gaming and resort properties in 14 states and
five countries, operating primarily under the
Caesars , Harrahs, and Horseshoe brand names.
Chapter 11 Petition Date: January 15, 2015
Court: United States Bankruptcy Court
Northern District of Illinois (Chicago)
Judge: Hon. Benjamin Goldgar
Debtors' Counsel: James H.M. Sprayregen, Esq.
David R. Seligman, Esq.
KIRKLAND & ELLIS LLP
300 North LaSalle
Chicago, IL 60654
Tel: 312.862.2000
Fax: 312.862.2200
Email: david.seligman@kirkland.com
james.sprayregen@kirkland.com
- and -
Paul M. Basta, Esq..
Nicole L. Greenblatt, Esq.
KIRKLAND & ELLIS LLP
601 Lexington Avenue
New York, NY 10022
Tel: 212.446.4800
Fax: 212.446.4900
Email: paul.basta@kirkland.com
nicole.greenblatt@kirkland.com
Debtors' Randall S. Eisenberg
Restructuring ALIXPARTNERS
Advisors: 40 West 57th Street
New York, NY 10019
Tel: 212.490.2500
Fax: 212.490.1344
Email: reisenberg@alixpartners.com
Debtors' PRIME CLERK LLC
Notice and
Claims Agent:
CEOC's Total Assets: $12.3 billion as of Sept. 30, 2014
CEOC's Total Debts: $19.8 billion as of Sept. 30, 2014
The petitions were signed by Mary E. Higgins, authorized
individual.
Consolidated List of Debtors' 50 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
LAW DEBENTURE TRUST COMPANY Unsecured Notes $530,000,000
OF NEW YORK
Attn: Kevin O'Brien, CEO
400 Madison Ave., 4th Floor
New York, NY 10017
Email: N/A
Fax: (212) 750 1361
Tel: (212) 750 6474
CLARK COUNTY Special $46,900,000
Attn: Steve Sisolak, Chair Improvement
500 S Grand Central Pkwy Bonds
1st Floor
Las Vegas, NV 89155
Email:
kevin.gullette@clarkcountynv.gov;
dainfo@clarkcountyda.com;
Fax: N/A
Tel:: (702) 455-6000
IOWA GAMING COMMISSION Dog Racing $42,625,055
Attn: Brian J. Ohorilko, Admin. Exist Costs
Capitol Medical Office Building
1300 Des Moines Street, Ste. 100
Des Moines, IA 50309-5508
Email: irgc@iowa.gov
Fax: (515) 242-6560
Tel: (515) 281-7352
IGT Trade Payable $28,544,568
Attn: Patti S. Hart, CEO and Slot
6355 South Buffalo Drive Financing
Las Vegas, NV 89113-2133
Email: pr@igt.com
Fax: (702) 896-8686
Tel: (702) 669-7777
HILTON HOTELS CORPORATION Pension Plan $25,000,000
Attn: Kristin Campbell, G. Counsel Litigation
7930 Jones Branch Drive
McLean, VA 22102
Email: kristin.campbell@hilton.com
Fax: N/A
Tel: (703) 883-1000
HOUSE OF BLUES Lease $13,792,438
Attn: Ron Benison, CEO
7060 Hollywood Blvd.
Hollywood, CA 90028
Email: legalhob@livenation.com
Fax: N/A
Tel: (323) 769-4600
BOARD OF LEVEE COMMISSIONERS Lease $10,539,916
FOR THE YAZOO-MISSISSIPPI
DELTA
Attn: Willie Gregory, President
140 Delta Avenue
Clarksdale, MS 38614
Email: N/A
Fax: (662) 624-2450
Tel: (662) 624-4397
SIMON GROUP Deferred $4,578,082
Attn: James M. Barkley, Gen. Counsel Income/
225 West Washington Street Signing
Indianapolis, IN 46204 Bonus
Email: jbarkley@simon.com;
rtucker@simon.com
Fax: (317) 263-7901
Tel: (317) 636-1600
EARL OF SANDWICH Lease $4,500,000
Attn: Steve Heeley, CEO
4700 Millenia Blvd. Suite 400
Orlando, FL 32839
Email: info@earlofsandwichusa.com
Fax: (407) 992-2987
Tel: (877) 426-3275
VISA Deferred $3,431,469
Attn: Kelly Mahon Tullier, General Income/
Counsel Signing
900 Metro Center Blvd Bonus
(at Vintage Park Dr.)
Foster City, CA 94404
Email: ktullier@visa.com
Fax: N/A
Tel: (650) 432-7644
EXPRESS SCRIPTS INC Trade $3,257,277
Attn: Time Wentworth, President Payable
One Express Way
St Louis, MO 63121
Email: twentworth@express-scripts.com
Fax: (800) 417-8163
Tel: N/A
NORTH KANSAS CITY Lease $2,416,944
Attn: Don Stielow, Mayor
City Hall
2010 Howell
N. Kansas City, MO 64116
Email: dstielow@nkc.org
Fax: N/A
Tel: (816) 274-6000
JOHNNY ROCKETS Lease $1,975,455
Attn: John Fuller, CEO
20 Enterprise, Suite 300
Aliso Viejo, CA 92656
Email: N/A
Fax: (866) 209-9523
Tel: (949) 643-6100
ENCORE EVENT TECHNOLOGIES Deferred $1,472,293
Attn: Phil Cooper, CEO Income/
5150 South Decatur Blvd Signing
Las Vegas, NV 89118 Bonus
Email: N/A
Fax: (702) 739-8831
Tel: (702) 739-8803
BRAND INTERACTION Cancellation $1,454,000
Attn: Eric Simon Fee
45 West 21st Street
Floor 2
New York, NY 10010
Email: info@brandinteractiongroup.com
Fax: (917) 591-9437
Tel: (212) 699-1885
WMS GAMING Trade Payable $1,231,090
Attn: Katie Lever, General Counsel and Slot
c/o Scientific Games Corporation Financing
750 Lexington Avenue
New York, NY 10022
Email: N/A
Fax: (702) 257-7750
Tel: (212) 754-2233
STANDARD TEXTILE CO INC. Trade Payable $1,096,053
Attn: Gary Heiman, CEO
One Knollcrest Drive
Cincinnati, OH 45237
Email: info@standardtextile.com
Fax: 513.761.0467
Tel: 800.999.0400
SOUTHERN WINE & SPIRITS Trade Payable $968,192
Attn: Wayne Chaplin, CEO
300 E. Crossroads Parkway
Bolingbrook Corporate Center
Bolingbrook, IL 60440-3516
Email: N/A
Fax: 630-685-3700
Tel: 630-685-3000
HALIFAX SECURITY INC. Trade Payable $920,266
Attn: Jason Oakley, CEO
301 Drum Point Road
Brick, NJ 08723
Email: info@navcctv.com
Fax: 732-477-0886
Tel: 732-477-0686
MICROSTRATEGY SERVICES CORP Trade Payable $865,061
Attn: Jonathan Klein, Gen. Counsel
1850 Towers Crescent Plaza
Tysons Corner, VA 22182
Email: info@microstrategy.com
Fax: 703-848-8610
Tel: 703-848-8600
GRAVITY MEDIA LLC Trade Payable $817,178
Attn: Yuriy Boykiv, CEO
114 West 26th Street 8th Floor
New York, NY 10001
Email: hello@mediagravity.com
Fax: 646-486-0030
Tel: 646-486-0000
DCR WORKFORCE Trade Payable $812,121
Attn: Naveen Dua, Chief Executive
Officer
7815 NW Beacon Square Boulevard
Suite 224
Boca Raton, FL 33487
Email: info@dcrworkforce.com
Fax: 888-880-1584
Tel: 888-327-4867
A J BROWN INC. Trade Payable $776,960
Attn: Daniel B. Steuber
635 Trade Center Blvd.
Chesterfield, MO 63005-1247
Email: dan@ajbrown.com
Fax: (636) 537-3335
Tel: (636) 537-3636
BALLY GAMING INC. Trade Payable $757,241
Attn: Richard Haddrill, CEO
6601 South Bermuda Road
Las Vegas , NV 89119
Email: N/A
Fax: 702-584-7710
Tel: 702-584-7700
IBS SOFTWARE SERVICES Trade Payable $693,560
Attn: Rajiv Shah, CEO
900 Circle 75 Parkway
Suite 550
Atlanta, GA 30339
Email: ibsusa@ibsplc.com
Fax: (678) 391 6099
Tel: (678) 391 6080
THE PRINTER INC. Trade Payable $656,038
Attn: Bill Benskin, President
1220 Thomas Beck Road
Des Moines, IA 50315
Email: Info@the-printer.com
Fax: 515-288-9234
Tel: 515-288-7241
PEPSI BOTTLING GROUP Trade Payable $592,378
Attn: Eric J. Foss, Pres. and CEO
One Pepsi Way
Somers, NY 10589-2201
Email: N/A
Fax: 914-767-7761
Tel: 914-767-6000
AETNA LIFE INSURANCE COMPANY Trade Payable $550,368
Attn: Scott Snyder, Sales V.P.
151 Farmington Avenue
Hartford, CT 06156
Email: snydersa@aetna.com
Fax: N/A
Tel: (800) 872-3862
AGILYSYS NV Trade Payable $546,524
Attn: Kyle C. Badger, Gen. Counsel
1000 Windward Concourse, Suite 250
Alpharetta, GA 30005
Email: sales@agilysys.com;
kyle.badger@agilysys.com
Fax: 770.810.7892
Tel: 770.810.7800
ARISTOCRAT TECHNOLOGIES INC. Trade Payable $521,932
Attn: Atul Bali, President
7230 Amigo Street
Las Vegas, NV 89119
Email: atul.bali@aristocrat-inc.com;
mark.dunn@aristocrat-inc.com
Fax: (702) 270-1001
Tel: (702) 599-8000
LLTQ ENTERPRISES LLC Trade Payable $506,412
Attn: Rowen Seibel
c/o Certilman Balin Attorneys
Paul B. Sweeney
90 Merrick Avenue
East Meadow, NY 11554
Email: psweeney@certilmanbalin.com
Fax: (516) 296-7111
Tel: (516) 296-7000
NOBU HOSPITALITY LLC Trade Payable $459,963
c/o Berdon LLP
Attn: Struan McKenzie
360 Madison Avenue
New York, NY 10017
Email: N/A
Fax: 212-371-1159
Tel: 212-832-0400
HOSPITALITY NETWORK INC. Trade Payable $430,625
Attn: Chief Legal Officer
1700 Vegas Drive
Las Vegas, NV 89106
Email: Rob.Nickels@cox.com;
Charlotte.Barnett@cox.com
Fax: 702-435-4009
Tel: 702-435-4600
HORNETS BASKETBALL LLC Trade Payable $393,750
Attn: Fred Whitfield, Pres. and COO
333 E Trade St
Charlotte, NC 28202-2331
Email: info@hornets.com
Fax: 704-688-8727
Tel: 704-688-8600
FISHNET SECURITY INC. Trade Payable $388,369
Attn: Rich Fennessy, CEO
6130 Sprint Pkwy Suite 400
Overland Park, KS 66211-1155
Email: N/A
Fax: 816.421.6677
Tel: 816.421.6611
SIMPLEX GRINNELL LP Trade Payable $386,742
Attn: Robert Chauvin, President
50 Technology Dr
Westminster, MA 01441
Email: N/A
Fax: 978-731-7839
Tel: 978-731-8519
WIRTZ BEVERAGE NEVADA Trade Payable $385,181
Attn: Kevin Roberts, Senior Vice
President
1849 West Cheyenne Avenue
North Las Vegas, NV 89032
Email: N/A
Fax: N/A
Tel: (702) 735-9141
TELEPERFORMANCE USA Trade Payable $383,039
Attn: Chief Legal Officer
6510 South Millrock Drive Suite 150
Holladay, UT 84121
Email: unitedstates@teleperformance.com
Fax: (801) 257-6246
Tel: (801) 257-5800
INTERNATIONAL BUSINESS Trade Payable $370,498
MACHINE (IBM)
Attn: Regional Counsel
425 Market Street, 21st Floor
San Francisco, CA 94105-2406
Email: N/A
Fax: (415) 545-4899
Tel: N/A
GET FRESH Trade Payable $367,243
Attn: Jim Palladino, CEO
1548 18th Street
Santa Monica, CA 90404
Email: customerservice@getfresh.net
Fax: 310-315-2644
Tel: 310-315-0020
AON CONSULTING Trade Payable $362,616
Attn: Michael Mahoney
199 Fremont St Suite 1500
San Francisco, CA 94105
Email: michael.mahoney@aon.com
Fax: N/A
Tel: 415-486-7351
CARTUS CORPORATION Trade Payable $359,931
Attn: Kevin Kelleher, Pres. & CEO
40 APPLE RIDGE ROAD
Danbury, CT 08610
Email: officeofthepresident@cartus.com
Fax: (888) 767-9358
Tel: (888) 767-9358
CHAOTIC MOON LLC Trade Payable $351,406
Attn: Ben Lamm, CEO
319 Congress Ave., Suite 200
Austin, TX 78701
Email: hello@chaoticmoon.com
Fax: 512-420-8801
Tel: 512-420-8800
INSIGHT Trade Payable $347,047
Attn: Steve Dodenhoff, President
6820 South Harl Avenue
Tempe, AZ 85283
Email: steve.dodenhoff@insight.com
Fax: N/A
Tel: (800) 467-4448
G & G SYSTEMS Trade Payable $316,250
Attn: Robert Lisowski, President
4340 W. Hacienda Ave.
Las Vegas , NV 89118
Email: info@ggsystems.net
Fax: (702) 798-6584
Tel: (702) 798-0995
GLOBAL CASH ACCESS Deferred $312,500
Juliet A. Lim, General Counsel Income/
7250 S Tenaya Way Signing
Suite 100 Bonus
Las Vegas, NV 89113
Email: corpinfo@gcamail.com
Fax: 702-364-8260
Tel: (702) 855-3000
GORDON RAMSAY HOLDINGS Trade Payable $307,479
LIMITED
Attn: Gordon Ramsay
1 Catherine Place
London, SW1E 6X
UK
Email: mthomas@sheridans.co.uk
Fax: +44 (0) 20 7079 0200
Tel: N/A
QUADRILLION TECHNOLOGY Trade Payable $295,927
PARTNERS LLC
Attn: George Stelling, Managing Partner
Park Seventeen Center
1717 MCKINNEY AVE SUITE 700
DALLAS, TX 75202
Email: gstelling@quadrillionpartners.com
Fax: N/A
Tel: (214) 301-5000
OBJECT SYSTEMS GROUP INC. Trade Payable $289,387
Attn: President and/or General Counsel
8600 Freeport Pkwy Suite 400
Irving, TX 75063
Email: N/A
Fax: (972) 650-2020
Tel: (972) 650-2026
MAVAR, INC. Lease Undetermined
Attn: Ronald G. Peresich, Esquire
Page, Mannino & Peresich
PO Drawer 289
Biloxi, MS 39533
Email: ron.peresich@pmp.org
Fax: (228) 432-5539
Tel: (228) 374-2100
CAESARS ENTERTAINMENT: Del. Judge Won't Halt Chicago Bankruptcy
---------------------------------------------------------------
Peg Brickley, writing for Daily Bankruptcy Review, reported that a
Delaware judge refused to stay early bankruptcy action in Chicago
for the main operating unit of Caesars Entertainment Corp. as the
gambling company's clashes with creditors heat up.
According to the report, Judge Kevin Gross cleared the way for a
session on Jan. 15 in a Chicago bankruptcy court, where the Las
Vegas gambling company filed a voluntary Chapter 11 case to tackle
its $18.4 billion debt load.
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
assets against $28.2 billion in liabilities.
Hedge funds holding roughly $14 million in claims, on Jan. 12,
2015, filed an involuntary Chapter 11 bankruptcy petition against
Caesars Entertainment Operating Company, Inc., in U.S. Bankruptcy
Court in Wilmington, Delaware. CEOC operates hotel and casino
properties that are part of the "Caesars" resort and gaming empire.
The hedge funds -- holder of the 10% second lien notes in the
company -- are Appaloosa Investment Limited Partnership I, owed
$13.1 million; OCM Opportunities Fund VI, L.P., owed $18.2 million;
and Special Value Expansion Fund, owed $9.73 million. The
bondholders are represented by Robert S. Brady, Esq., at Young,
Conaway, Stargatt & Taylor, LLP.
* * *
In December 2014, Fitch Ratings downgraded the issuer default
rating of CEOC to 'C' from 'CC'; Moody's cut the ratings of CEOC,
including the corporate family rating, to 'Ca' from 'Caa3'; and
Standard & Poor's lowered its corporate credit rating to 'D' from
'CCC-' on CEOC. The downgrades reflect CEOC's missed $223 million
interest payment to the holders of the 10% second lien notes that
was due Dec. 15, 2014.
CAESARS ENTERTAINMENT: Fight Brews Over Bankruptcy Venue for Unit
-----------------------------------------------------------------
Peg Brickley and Joseph Checkler, writing for The Wall Street
Journal, reported that investors attempting to push the largest
operating unit of Caesars Entertainment Corp. into bankruptcy have
challenged the company to a court fight over where the $18.4
billion restructuring should take place.
According to the report, the unit, Caesars Entertainment Operating
Co., said in court papers it plans to file for bankruptcy in
Chicago. Bondholders who filed an involuntary Chapter 11 case for
the unit want to keep the case in Wilmington, Del., where they
filed papers, the 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
assets against $28.2 billion in liabilities.
Hedge funds holding roughly $14 million in claims, on Jan. 12,
2015, filed an involuntary Chapter 11 bankruptcy petition against
Caesars Entertainment Operating Company, Inc., in U.S. Bankruptcy
Court in Wilmington, Delaware. CEOC operates hotel and casino
properties that are part of the "Caesars" resort and gaming empire.
The hedge funds -- holder of the 10% second lien notes in the
company -- are Appaloosa Investment Limited Partnership I, owed
$13.1 million; OCM Opportunities Fund VI, L.P., owed $18.2 million;
and Special Value Expansion Fund, owed $9.73 million. The
bondholders are represented by Robert S. Brady, Esq., at Young,
Conaway, Stargatt & Taylor, LLP.
* * *
In December 2014, Fitch Ratings downgraded the issuer default
rating of CEOC to 'C' from 'CC'; Moody's cut the ratings of CEOC,
including the corporate family rating, to 'Ca' from 'Caa3'; and
Standard & Poor's lowered its corporate credit rating to 'D' from
'CCC-' on CEOC. The downgrades reflect CEOC's missed $223 million
interest payment to the holders of the 10% second lien notes that
was due Dec. 15, 2014.
CAESARS ENTERTAINMENT: U.S. Units File for Chapter 11
-----------------------------------------------------
Caesars Entertainment Operating Company, Inc. ("CEOC"), a
subsidiary of Caesars Entertainment Corporation ("Caesars
Entertainment") on Jan. 15 disclosed announced that it is moving
forward to implement its previously announced financial
restructuring plan. The plan, which has received support from more
than 80% of first-lien noteholders, is intended to significantly
reduce long-term debt and annual interest payments, while providing
for significant recoveries for creditors and ensuring no
interruption of operations across the company's network of
properties.
To implement the balance sheet deleveraging, CEOC and certain of
its U.S. subsidiaries have voluntarily filed for reorganization
under Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Northern District of Illinois in
Chicago. All Caesars Entertainment properties, including those
owned by CEOC, are open for business and are continuing to operate
in the ordinary course. All properties are continuing to host
meetings and events and provide the facilities, amenities and
experiences that guests expect. The entertainers who perform at
Caesars properties will continue to do so on their ordinary
schedule. Caesars Entertainment, Caesars Entertainment Resort
Properties and Caesars Growth Partners, which are separate entities
with independent capital structures, have not filed for bankruptcy
relief.
"Today, with the overwhelming support of our first-lien
bondholders, we are moving forward to implement our previously
announced restructuring plan, which is intended to strengthen
CEOC's financial condition and significantly reduce debt," said
Gary Loveman, Chairman of CEOC. "We believe this restructuring is
in the best interests of all of CEOC's stakeholders and will result
in a sustainable capital structure for CEOC and value creation for
all stakeholders. The restructuring of CEOC is the culmination of
a years-long effort to improve the health of CEOC's balance sheet,
which has included substantial investment in new and upgraded
assets, especially in Las Vegas. I am very confident in the future
prospects of our enterprise, which will combine an improved capital
structure with a network of profitable properties."
Mr. Loveman added: "The properties across the entire Caesars
Entertainment network are open and will operate without
interruption throughout CEOC's reorganization process. Our guests
will continue to earn benefits through the Total Rewards loyalty
program, and our team remains entirely focused on delivering the
same outstanding service and unforgettable entertainment
experiences guests have come to expect from Caesars Entertainment.
Going forward, we will continue to develop and deliver new,
innovative hospitality experiences to our guests."
CEOC has filed, and expects to obtain approval for, various
customary First Day Motions in the bankruptcy court in support of
its financial restructuring. CEOC intends to pay suppliers in full
under normal terms for goods and services provided on or after the
filing date of January 15, 2015. Vendors and suppliers who work
with affiliated entities that have not filed Chapter 11 petitions,
including Caesars Entertainment, Caesars Growth Partners and
Caesars Entertainment Resort Properties, will not be impacted.
Restructuring Details
As previously disclosed, under the terms of the proposed financial
restructuring, CEOC will convert its corporate structure by
separating virtually all of its U.S.-based gaming operating assets
and real property assets into two companies: 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, subject to certain adjustments,
with the lease payments guaranteed by Caesars Entertainment.
Under the proposed plan, Caesars Entertainment will make
substantial cash and other contributions to support the
restructuring. The completion of the previously announced merger
of Caesars Entertainment and Caesars Acquisition Company will allow
Caesars Entertainment to make these contributions without the need
for any significant outside financing. The merged company will be
in a strong position to serve as a guarantor for the lease payments
OpCo will make to PropCo. Following the merger and the
restructuring, OpCo will have sufficient cash to support its
operations and obligations.
The restructuring is conditioned upon the release of all pending
and potential litigation claims against Caesars Entertainment,
Caesars Acquisition Company and related parties. The proposed
restructuring plan remains subject to approval by the Bankruptcy
Court and the receipt of required gaming regulatory approvals.
Chief Restructuring Officer Appointed
Randall S. Eisenberg, a managing director at AlixPartners, has been
named Chief Restructuring Officer of CEOC. In this role, Eisenberg
will oversee the Chapter 11 cases and implementation of the
restructuring transactions at the operational level.
CEOC's legal advisor for the Chapter 11 proceedings is Kirkland &
Ellis LLP. Perella Weinberg Partners serves as financial advisor
to CEOC and AlixPartners is restructuring advisor. Paul, Weiss,
Rifkind, Wharton & Garrison LLP is counsel to Caesars Entertainment
and Blackstone Advisory Partners, LP is financial advisor to
Caesars Entertainment.
CEOC has established a dedicated website, www.ceocrestructuring.com
for stakeholders to access current information about the
restructuring. Court documents pertaining to the Chapter 11
proceedings can be accessed directly through the Claims Agent
website, http://cases.primeclerk.com/ceoc
Suppliers with inquiries can call 844-762-0752 (weekdays, from
6:00 a.m. to 6:00 p.m. Pacific Time) for assistance.
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, $28.2 billion in total liabilities and a $3.71
billion total deficit.
Hedge funds holding roughly $14 million in claims, filed an
involuntary Chapter 11 bankruptcy petition against Caesars
Entertainment Operating Company, Inc. (Bankr. D. Del. Case No.
15-10047G) on Jan. 12, 2015. CEOC operates hotel and casino
properties that are part of the "Caesars" resort and gaming
empire.
The hedge funds hold 10% second lien notes in the company.
Appaloosa Investment Limited Partnership I holds $13,109,250 of the
notes; OCM Opportunities Fund VI, L.P., holds $18,239,186 of the
notes; and Special Value Expansion Fund holds $9,734,458 of the
notes.
The bondholders are represented by Robert S. Brady, Esq., at Young,
Conaway, Stargatt & Taylor, LLP.
In January 2015, Caesars Entertainment and subsidiary CEOC
announced that holders of more than 60% of claims in respect of
CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior
secured notes due 2020 and CEOC's 9% senior secured notes due 2020
have signed the Amended and Restated Restructuring Support and
Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars
Entertainment, CEOC and the Consenting Creditors. As a result, the
RSA became effective pursuant to its terms as of Jan. 9, 2015.
COMMUNITY HOME: Trustee Asserts Cash Collateral Use Reasonable
--------------------------------------------------------------
Kristina M. Johnson, trustee of the estate of Community Home
Financial Services, Inc., debunked objections filed by Edwards
Family Partnership and Beher Holdings Trust to her motion to access
cash collateral.
The Trustee avers that no basis exists for striking statements in
her cash motion. According to the Trustee, what she considered to
be unreasonable is EFP/BHT's:
1) refusal to recognize the difficulties and complexities of the
case that were not of the Trustee's making;
2) refusal to recognize the remarkable results achieved thus
far (most of which will likely accrue to the benefit of EFP/BHT);
3) insistence on their own timetable ("now") when the Trustee
has already made a proposal that could result in confirmation of a
liquidating plan early as the first quarter of 2015 that gives them
substantially what they are seeking, including the dismissal of
Adversary Proceeding 12-00091; and
4) attempt to use aggressive tactics to prevent the Trustee from
using cash to pursue the interests of the estate.
EFP and BHT, in their response stated that the Trustee's motion
painted the false impression that EFP and BHT are being
unreasonable. EFP and BHT are creditors and want to be repaid the
millions of dollars they are owed.
EFP and BHT have 99% of the claims in the case. EFP and BHT assert
that the overwhelming majority of the cash collected in the case is
either their cash collateral or cash in which the estate has no
interest.
The Trustee objected to the third motion to prohibit use of cash
collateral until the court rules in Adversary Proceeding 12-00091
filed by EFP and BHT. The Trustee reiterated from the trustee's
cash motion and the reply that: (a) the relief requested in the
motion exceeds the relief that can be granted under Section 363 of
the Bankruptcy Code; and (b) EFP/BHT's interest (if any) in cash is
adequately protected.
The Trustee has requested for authorization nunc pro tunc to
Jan. 16, 2014, to use cash to maintain operations of the estate in
the ordinary course of business for 6 months in order to maximize
value for the estate and to give the Trustee time to file and
obtain confirmation of a plan of liquidation.
The Trustee asserted that the interests of EFP/BHT are adequately
protected by, among other things, these:
a) repatriation of approximately $4.9 million wrongfully removed
from the Estate and the trustee's on-going efforts to repatriate
additional funds removed from the estate;
b) the monthly accumulation of cash through the servicing of
loans by a professional servicer;
c) numerous orders preserving all rights, claims and defenses of
EFP/BHT with regard to estate assets;
d) estate funds being safeguarded in the Trustee's accounts
subject to her sole access;
e) the monthly operating reports are current and, per an agreed
order, EFP/BHT have "view only" access to the professional
servicer's reports.
About Community Home
Community Home Financial Services, Inc., filed a Chapter 11
petition (Bankr. S.D. Miss. Case No. 12-01703) on May 23, 2012.
Community Home Financial is a specialty finance company located in
Jackson, Mississippi, providing contractors with financing for
their customers. CHFS operates from one central location
providing financing through its dealer network throughout 25
states, Alabama, Delaware, and Tennessee. The Debtor scheduled
$44.9 million in assets and $30.3 million in liabilities. Judge
Edward Ellington presides over the case.
The Debtor was first represented by Roy H. Liddell, Esq., and
Jonathan Bissette, Esq., at Wells, Marble, & Hurst, PPLC as
Chapter 11 counsel. Wells Marble was terminated Nov. 13, 2013.
The Debtor is now being represented by Derek A. Henderson, Esq.,
in Jackson, Miss. In 2013, the Debtor sought to employ David
Mullin, Esq., at Mullin Hoard & Brown LLP, as special counsel.
On Jan. 9, 2014, Kristina M. Johnson was appointed as Chapter 11
Trustee for the Debtor. Jones Walker LLP serves as counsel to the
Chapter 11 trustee, while Stephen Smith, C.P.A., acts as
accountant.
* * *
On Aug. 8, 2013, the Court approved the Disclosure Statement
explaining the Debtor's Plan of Reorganization dated Jan. 29,
2013. In the first quarter of 2014, the Court entered an order
holding in abeyance the (i) confirmation of the Debtor's Chapter
11 Plan; and (ii) the objection and amended objection to the
confirmation of Plan pending further Court order.
CREEKSIDE ASSOCIATES: Proposes Dilworth Paxson as Counsel
---------------------------------------------------------
Creekside Associates seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania to hire Dilworth Paxson
LLP as bankruptcy counsel.
Dilworth will provide its expertise with respect to
bankruptcy-related issues and will act as general bankruptcy
counsel to the Debtor. Additionally, Dilworth will provide
services to the Debtor in other areas of its expertise, such as
litigation and corporate matters, as necessary.
The standard hourly rates of the attorneys that will be primarily
responsible for this representation as follows:
Hourly Rate
-----------
Lawrence G. McMichael $850
Jennifer L. Maleski $415
Jesse N. Silverman $380
Eric L. Coccia $265
In addition, Dilworth anticipates utilizing additional attorneys
and paraprofessionals, as appropriate. The range of hourly rates
for the attorneys and paraprofessionals are as follows:
Hourly Rate
-----------
Partners $325 to $850
Associates $225 to $345
Paralegals $150 to $170
To the best of the Debtor's knowledge, Dilworth does not have any
connection with or interest adverse to the Debtor, the Debtor's
creditors, any other party-in-interest, or the Office of the United
States Trustee.
Lawrence G. McMichael, a partner in the law firm, disclosed that
the Debtor was first introduced to Dilworth on Dec. 5, 2014, and
executed an engagement letter on or about Dec. 8, 2014. On Dec.9,
2014, Dilworth received a fee advancement in the amount of $50,000
from an entity called Kerridge Equities Corp. Kerridge is
affiliated with the Debtor through its principal, Israel Feit. In
addition, in Dec. 18, 2014, Dilworth received an additional fee
advancement of $25,000 from Kerridge. Notwithstanding the fact
that part of its fees were paid prepetition by a non-debtor entity,
Dilworth has made clear to Kerridge and other affiliates that
Dilwroth will represent only the Debtor in this bankruptcy case.
About Creekside Associates
Creekside Associates, Ltd., owns and operates the Creekside
Apartments, a 1000+ unit apartment complex located at 2500 Knights
Road, Bensalem, Pennsylvania.
Secured creditor Creekside JV Owner, LP, a joint venture between
Davidson Kempner Capital Management, a New York hedge fund, and
Morgan Properties, a multi-state owner and operator of apartment
buildings, commenced a foreclosure action in state court. The suit
alleges monetary defaults under a non-recourse loan in the original
principal amount of $68 million.
Creekside Associates filed a Chapter 11 bankruptcy petition (Bankr.
E.D. Pa. Case No. 14-19952) in Philadelphia on Dec. 19, 2014. The
case is assigned to Judge Stephen Raslavich. The Debtor estimated
$50 million to $100 million in assets and debt.
The Debtor has tapped Dilworth Paxson LLP as bankruptcy attorneys
and Kaufman, Coren & Ress, P.C., as special counsel.
CREEKSIDE ASSOCIATES: Taps Kaufman Coren as Special Counsel
-----------------------------------------------------------
Creekside Associates seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania to hire Kaufman, Coren &
Ress, P.C. ("KC&R") as special counsel.
The Debtor expects that its litigation with Creekside JV Owner, LP
will be resolved in this bankruptcy case -- either through an
objection to Creekside JV Owner's claim or through the filing of an
Adversary Proceeding to assert the Debtor's claims against
Creekside JV Owner (which were previously asserted as counterclaims
in state court). The dispute with the Bucks County Water & Sewer
Authority will also be resolved as part of this bankruptcy case
through a likely objection to the Authority's claim.
KC&R, founded in 1989, is a litigation boutique that handles a wide
variety of complex litigation including bankruptcy matters for
trustees, debtors and creditors and virtually all types of civil
litigation: lender liability, unfair competition, employment law
and discrimination claims, successor liability, trade secrets,
securities fraud, antitrust, construction, insurance coverage,
business valuation, real estate, real estate taxes, commercial
collections and business divorce of professional groups or closely
held companies.
Steven M. Coren is the lead partner handling both the litigation
with Creekside JV Owner and with the Authority. Practicing for
more than 30 years, Mr. Coren has handled diverse and complex civil
litigation in both federal and state courts.
The standard hourly rates of the attorneys responsible in the
engagement are:
Through 12-31-14 Effective 1-1-15
---------------- ----------------
Seven M. Coren $650 $700
David Dormont $350 $375
In addition, KC&R anticipates utilizing additional attorneys and
paraprofessionals, as appropriate. The range of hourly rates for
the attorneys and paraprofessionals are:
Hourly Rate
-----------
Shareholders $425 to $700
Associates $225 to $375
Paralegals None at present
Litigation with Secured Lender
On Jan. 13, 2012, Creekside JV Owner, LP ("Successor Lender"),
confessed two judgments in the Court of Common Pleas for Bucks
County against the Debtor: a money judgment in the amount of
$68,413,348; and a judgment for possession of the Property. Later
that same day, the Successor Lender commenced a mortgage
foreclosure action against the Debtor in the State Court.
The Successor Lender is a joint venture between Davidson Kempner
Capital Management, a New York hedge fund, and Morgan Properties, a
multi-state owner and operator of apartment buildings.
The Confessed Judgments and Mortgage Foreclosure Action were based
on alleged monetary defaults under a certain non-recourse loan in
the original principal amount of $68 million, by and between the
Debtor and Eurohypo AG, New York Branch (the “Original
Lender”). In 2007, the Loan was transferred by the Original
Lender to a securitization trust, which subsequently sold the Loan
at a discount to the Successor Lender.
On Feb. 2, 2012, KC&R filed petitions on behalf of the Debtor to
open/strike the Confessed Judgments, which included emergency
requests to restore possession of the Property in the Debtor and to
stay execution pending disposition of the petitions. The Debtor
argued, inter alia, that it was not in default of its payment
obligations under the Loan, because the Trust and the Debtor had
reached an agreement in July 2010 to modify the Debtor's payment
obligations and the Borrower had timely made each payment required
of it from that point forward.
On March 19, 2013, the State Court opened the Confessed Judgments.
Thereafter, the Successor Lender amended its complaint to allege a
variety of non-payment defaults, all of which are disputed by the
Debtor. The Confessed Judgment Action and the Mortgage Foreclosure
Action are currently in the Jan. 5, 2015 trial pool, and KC&R
attorneys are attached as trial counsel.
Water & Sewer Authority
In addition to representing the Debtor in connection with the
Confessed Judgments and the Mortgage Foreclosure Action, KC&R has
also acted as counsel to the Debtor since 2012 in connection with
an ongoing dispute with the Bucks County Water & Sewer Authority.
The Debtor receives sewer services from the Authority, and has
disputed approximately $4 million of charges billed by the
Authority over the past eight years. The sewer lines run under the
Debtor's property and the Authority has an easement for the lines.
It is the Debtor's position -- which the Authority disputes -- that
the Authority took dedication of the sewer lines in the early
1970s, and that any alleged infiltration of water into the sewer
system (which the Debtor denies) is the Authority's responsibility
as owner of the sewer lines. Until sometime in or around 2007, the
Authority had billed the Debtor for sewage usage based on the
Property's actual water usage (the procedure used to bill most or
perhaps all other properties in the County).
Beginning in or around 2007, the Authority installed two meters in
manholes located on the property and thereafter billed the Debtor
based upon meter readings, rather than on the Debtor's water usage.
These new bills reflected sewer usage that was two to three times
higher than the actual water usage. The Debtor believes that these
readings are incorrect, unreliable and improper and has disputed
them with the Authority. The litigation is currently pending in
the Court of Common Pleas of Bucks County in which the Debtor is
the plaintiff and is represented by KC&R.
In light of the dispute, the Debtor has continued to pay for sewage
usage based upon water usage, rather than the defective sewage
meter readings. In connection with an agreement to remove liens
placed by the Authority on the Property while the parties continue
to negotiate a resolution to the dispute, the Debtor deposited
$825,000 into interest bearing escrow accounts, which are
maintained in the names of KC&R and counsel for the Authority.
About Creekside Associates
Creekside Associates, Ltd., owns and operates the Creekside
Apartments, a 1000+ unit apartment complex located at 2500 Knights
Road, Bensalem, Pennsylvania.
Secured creditor Creekside JV Owner, LP, a joint venture between
Davidson Kempner Capital Management, a New York hedge fund, and
Morgan Properties, a multi-state owner and operator of apartment
buildings, commenced a foreclosure action in state court. The suit
alleges monetary defaults under a non-recourse loan in the original
principal amount of $68 million.
Creekside Associates filed a Chapter 11 bankruptcy petition (Bankr.
E.D. Pa. Case No. 14-19952) in Philadelphia on Dec. 19, 2014. The
case is assigned to Judge Stephen Raslavich. The Debtor estimated
$50 million to $100 million in assets and debt.
The Debtor has tapped Dilworth Paxson LLP as bankruptcy attorneys
and Kaufman, Coren & Ress, P.C., as special counsel.
CRYOPORT INC: Names Richard Berman to its Board of Directors
------------------------------------------------------------
Cryoport, Inc., has appointed Richard J. Berman to its Board of
Directors. Mr. Berman will also serve as Chairman of the Audit
Committee and Compensation Committee.
Mr. Berman is a seasoned senior executive and public company board
member with extensive experience across industries but more
specifically with biotechnology and life sciences companies. His
business career consists of more than 35 years of venture capital,
management, and merger and acquisitions experience. He has served
as a director or officer of more than a dozen public and private
companies.
Mr. Berman currently serves as a director of four public companies
including NeoStem, Inc., a leader in cellular therapy with a
melanoma therapy entering Phase II clinical trials. He is also a
director at Advaxis, Inc., which is in various stages of clinical
trials for cervical cancer, prostate cancer and breast cancer
having recently raised $40M. Mr. Berman is Chairman of the Board
of MetaStat, Inc., which is developing a medical technology for
predicting cancer mestasis and he serves as a board member of
Lustros, Inc., which is the leading manufacturer of food quality
copper sulfate manufactured under a patented process and used to
control bacterial and fungal diseases in crops, and as an appetite
stimulant for animals.
He currently serves as vice chairman of Energy Smart Resources,
Inc., a privately held company, and was Chairman of National
Investment Managers, with $12 billion in pension administration
assets, from 2006 to 2011. From 2004 to 2010, Mr. Berman served as
a Director of NexMed Inc., a public biotech company and as its
Chairman and CEO from 2008 to 2010 when the company was merged with
Apricus Biosciences.
Mr. Berman was Chairman and CEO of Internet Commerce Corporation,
currently Easylink Services, from 1998 to 2000, and thereafter,
Chairman until 2001. In 2012, he served as CEO of Prestolite
Battery Company of Canada from 1984 through 1992, where he was
responsible for creating the largest battery company in the world
by merging with General Battery and Exide to form Exide
Technologies, with $800 million in revenues. Prior to that, Mr.
Berman held executive positions at Goldman Sachs and Bankers Trust
Company.
Mr. Berman is a past director of the Stern School of Business of
NYU, where he received his B.S. and M.B.A. He also holds a J.D.
from Boston College and a Special Certificate from The Hague
Academy of International Law.
"For such an experienced life sciences industry expert to join our
board is a strong validation of Cryoport's position in the industry
as a premier service provider for the life sciences. It is also a
testament to Cryoport's business strategy, which combines our
state-of-the-art cryogenic packaging and advanced information
technology with logistics expertise to provide reliable cryogenic
logistics solutions to support our clients' needs in the advancing
pipeline of life science products," said Jerrell Shelton, CEO of
Cryoport.
Mr. Berman stated, "I look forward to sharing my experience in
finance and the life sciences to help Cryoport execute on its
financing plans and corporate strategy. In addition, I think I can
assist in the identification and evaluation of new business
opportunities. Cryoport provides a vital and enabling service to
the development of the life sciences industry with a management
team that is dedicated to execution. I feel privileged to be a
part of this dynamic company's future and will endeavor to actively
support it in every aspect."
Richard Rathmann, Chairman of the Board of Cryoport, said, "We are
fortunate to have Richard join our Board. He brings new insights
into the financing of microcap companies and valuable knowledge of
the life sciences that will help our company move forward."
As non-employee director, he will participate in the Company's
director compensation plan governed by the Compensation Committee
and will receive an initial grant to purchase 200,000 shares of the
Company's common stock upon joining the Board. In addition, Mr.
Berman elected to receive shares of unregistered common stock of
the Company in lieu of cash compensation for his services as a
director and chairman of the audit and compensation committees of
the Company. Under the director compensation plan, Mr. Berman will
be issued shares of common stock for his services calculated by
dividing the quarterly cash compensation of $17,500 by the volume
weighted average price of the Company's common stock for the last
five days of the trading month ending each quarter multiplied by
1.15.
About Cryoport
Lake Forest, Calif.-based CryoPort, Inc. (OTC BB: CYRX) provides
comprehensive solutions for frozen cold chain logistics, primarily
in the life science industries. Its solutions afford new and
reliable alternatives to currently existing products and services
utilized for bio-pharmaceuticals and biologics, including in-vitro
fertilization, cell lines, vaccines, tissue and other commodities
requiring a reliable frozen solution.
Cryoport reported a net loss of $19.56 million on $2.65 million of
revenues for the year ended March 31, 2014, as compared with a net
loss of $6.38 million on $1.10 million of revenues for the year
ended March 31, 2013.
The Company's balance sheet at Sept. 30, 2014, showed $1.20
million in total assets, $2.57 million in total liabilities, all
current, and a $1.37 million total stockholders' deficit.
KMJ Corbin & Company LLP, in Costa Mesa, California, issued a
"going concern" qualification on the consolidated financial
statements for the year ended March 31, 2014. The independent
auditors noted that the Company has incurred recurring operating
losses and has had negative cash flows from operations since
inception. Although the Company has cash and cash equivalents of
$369,581 at March 31, 2014, management has estimated that cash on
hand, which include proceeds from convertible bridge notes
received in the fourth quarter of fiscal 2014, will only be
sufficient to allow the Company to continue its operations into
the second quarter of fiscal 2015. These matters raise
substantial doubt about the Company's ability to continue as a
going concern, the auditors maintained.
CTI BIOPHARMA: Files Investor Presentation
------------------------------------------
Members of management at CTI BioPharma Corp. will be providing a
corporate update, including preliminary, unaudited estimates of its
revenues for the year ended Dec. 31, 2014, and revenue projections
for 2015, to analysts and investors through a series of one-on-one
meetings, according to a regulatory filing with the U.S. Securities
and Exchange Commission.
The Investor Presentation also discusses accomplishments in 2014
and 215 key objectives.
The Company estimated revenues of $55 million to $72 million for
2015. As of Dec. 15, 2014, the Company had 177 million in
oustanding shares. The Company had $82 million in cash as of
Nov. 30, 2014.
A copy of the Investor Presentation is available for free at:
http://is.gd/BI2bqR
About CTI BioPharma
CTI BioPharma Corp. (NASDAQ and MTA: CTIC) --
http://www.ctibiopharma.com/-- formerly known as Cell
Therapeutics, Inc., is a biopharmaceutical company focused on
the acquisition, development and commercialization of novel
targeted therapies covering a spectrum of blood-related cancers
that offer a unique benefit to patients and healthcare providers.
The Company has a commercial presence in Europe and a late-stage
development pipeline, including pacritinib, CTI's lead product
candidate that is currently being studied in a Phase 3 program for
the treatment of patients with myelofibrosis. CTI BioPharma is
headquartered in Seattle, Washington, with offices in London and
Milan under the name CTI Life Sciences Limited.
Cell Therapeutics reported a net loss attributable to common
shareholders of $49.6 million in 2013, a net loss attributable to
common shareholders of $115 million in 2012, and a net loss
attributable to common shareholders of $121 million in 2011.
"We believe that our present financial resources (including the
$17.8 million we received in October 2014 under the Servier
Agreement), together with additional milestone payments projected
to be received under certain of our contractual agreements, our
ability to control costs and expected net contribution from
commercial operations in connection with PIXUVRI, will only be
sufficient to fund our operations into the third quarter of 2015.
This raises substantial doubt about our ability to continue as a
going concern," the Company disclosed in its quarterly report on
Form 10-Q for the period ended Sept. 30, 2014.
DEB STORES: Sec. 341(a) Creditors Meeting Slated for Jan. 22
------------------------------------------------------------
A meeting of creditors of Deb Stores Holding LLC and its affiliates
is slated for Jan. 22, 2015, at 1:00 p.m. in Wilmington, Delaware.
This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
meeting of creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
About Deb Stores
Headquartered in Philadelphia, Pennsylvania, Deb Stores is a
mall-based retailer in the juniors "fast-fashion" specialty sector
that operates under the name "DEB" and offers moderately priced,
fashionable, coordinated women's sportswear, dresses, coats,
lingerie, accessories and shoes for junior and plus sizes. The
company, founded by Philip Rounick and Emma Weiner, opened its
first store under the name JOY Hosiery in Philadelphia,
Pennsylvania in 1932. As of Sept. 30, 2014, the company operated
a total of 295 retail store locations (primarily in the East and
Midwest, especially Pennsylvania, Ohio and Michigan) as well as an
e-commerce channel.
On June 26, 2011, Deb Stores' predecessors -- DSI Holdings Inc. and
its subsidiaries -- sought Chapter 11 protection (Bankr. D. Del.
Lead Case No. 11-11941) and closed the sale of the assets three
months later to Ableco Finance, LLC, the agent for the first lien
lenders.
Deb Stores Holding LLC and eight affiliated companies commenced
Chapter 11 bankruptcy cases in Delaware on Dec. 4, 2014. The
Debtors are seeking to have their cases jointly administered, with
pleadings maintained on the case docket for Deb Stores Holding
(Case No. 14-12676). The cases are assigned to Judge Mary F.
Walrath.
Laura Davis Jones, Esq., Colin R. Robinson, Esq., at and Peter J.
Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington,
Delaware, serve as counsel to the Debtors. Epiq Bankruptcy
Solutions, LLC, is the claims and noticing agent.
As of Dec. 31, 2014, the Debtors' most recent audited consolidated
financial statements reflected assets totaling $90.5 million and
liabilities totaling $120.1 million.
DERMA PEN: Barred From Selling Trademark & Domain Name
------------------------------------------------------
Utah District Judge David Nuffer granted 4EverYoung Limited's
motion for temporary restraining order and preliminary injunction.
In that request, 4EY seeks, among other things, an order requiring
Derma Pen LLC to specifically perform on its post-termination
obligations under the parties' Sales Distribution Agreement,
including its obligation to offer to 4EverYoung for purchase the
Dermapen trademark in the United States and the www.dermapen.com
domain name.
In his Jan. 12, 2015 Memorandum Decision and Order available at
http://is.gd/FaxfJYfrom Leagle.com, Judge Nuffer ruled that:
a. Derma Pen, its officers, agents, servants, employees, and
attorneys, and those acting in concert, with them must not transfer
the trademark and domain name to anyone other than 4EverYoung;
b. the preliminary injunction will remain in effect until
otherwise ordered by the Court; and
c. 4EverYoung is not required to post additional security for
the issuance of this preliminary injunction.
The Court's order also provides that Derma Pen and 4EverYoung are
to exchange their valuations of the Trademark and Domain Name on or
before January 13, 2015. The Court vacated a jury and bench trial
set to begin February 2. The Court will had an evidentiary hearing
to determine the value of the Trademark and Domain Name, which
hearing is set for February 2-13, 2015, beginning each day at 9:00
a.m.
On or before January 20, 2015, the parties are to submit briefs
regarding the Court's ability to order specific performance that
would require Anderer to surrender or make conveyance of the
Trademark and Domain Name.
About Derma Pen
Derma Pen, LLC, filed a Chapter 11 petition (Bankr. D. Del. Case
No. 14-11894) on Aug. 8, 2014, estimating under $1 million in both
assets and debts. A copy of the petition is available at no extra
charge at http://bankrupt.com/misc/deb14-11894.pdf The Debtor is
represented by Gregory A. Taylor, Esq., at Ashby & Geddes.
Derma Pen sought bankruptcy protection, on the eve of a jury trial
in the lawsuit it had filed in the United States District Court for
the District of Utah against 4Ever Young Limited; Stene Marshall
d/b/a Dermapen World; and others regarding disputes related to a
Distribution Agreement executed by Derma Pen and 4EY.
Derma Pen is a provider of Class 1 FDA registered micro needling
and skin treatment devices and systems. Derma Pen sold micro
needling devices and related products under the DERMAPEN(R)
trademark.
In December 2014, 4EY and Marshall obtained dismissal of the
Chapter 11 case, which they called a "litigation tactic" by the
Debtor. The United States Trustee also filed a motion to convert
the case to Chapter 7 or dismiss it outright.
DIGERATI TECHNOLOGIES: Investment Banker Won't Get a Dime
---------------------------------------------------------
Chief Bankruptcy Judge Jeff Bohm in Houston, Texas, denied the
final fee application filed by Gilbert A. Herrera and Herrera
Partners, the investment banker for debtor Digerati Technologies,
Inc. Judge Bohm cited four reasons:
(1) Herrera Partners' failure to keep detailed,
contemporaneous records of each individual activity;
(2) Herrera Partners' failure to establish that its services
resulted in "an identifiable, tangible, and material benefit to the
bankruptcy estate" required by Pro-Snax (Matter of Pro-Snax
Distributors, Inc., 157 F.3d 414, 426 (5th Cir. 1998));
(3) Herrera Partners' failure to establish that its services
were reasonably likely to benefit the estate at the time they were
performed; and
(4) Herrera Partners' failure to comply with the disclosure
requirements of Bankruptcy Rule 2014.
Judge Bohm, among others, noted that the U.S. Trustee Guidelines
for Reviewing Applications for Compensation provide guidance on the
level of detail required for a sufficient fee application,
instructing that "[t]ime entries should be kept contemporaneously
with the services rendered in time periods of tenths of an hour."
He pointed out that Herrera Partners' time entries are not
contemporaneous, and for that reason are not reliable and have very
limited evidentiary value in proving that the firm's services were
actual, necessary, and reasonable.
The Court directed the firm to disgorge all monies previously
received for its services.
Herrera Partners was hired in connection with the Debtor's attempt
to sell the Debtor's two companies -- Hurley Enterprises, Inc.; and
Dishon Disposal, Inc. Herrera Partners seeks $476,245 in fees and
reimbursement of expenses in the amount of $7,726.81.
The Debtor's secured creditors Terry Dishon, Hurley Fairview, LLC
and Sheyenne Rae Nelson Hurley, objected to the fee request.
A copy of the Court's January 12, 2015 Memorandum Opinion is
available at http://is.gd/xD9xaYfrom Leagle.com.
The firm may be reached at:
Gilbert A. Herrera
HERRERA PARTNERS
(Formerly G.A.Herrera & Co.)
1010 Lamar, Suite 600
Houston, TX 77002-6318
Tel: 713-978-6590
Fax: 713-978-6599
About Digerati Technologies
Digerati Technologies, Inc., filed a Chapter 11 petition (Bankr.
S.D. Tex. Case No. 13-33264) in Houston, on May 30, 2013. At the
time of its Chapter 11 filing, Digerati --
http://www.digerati-inc.com-- was a publicly held company whose
primary assets were 100% stock ownership of two oilfield services
companies that the Debtor valued at $30 million each: Hurley
Enterprises, Inc.; and Dishon Disposal, Inc. The Debtor also owned
Shift 8 Networks, a cloud communication service. The Debtor has no
independent operations apart from its subsidiaries.
Digerati disclosed $60 million in assets and $62.5 million in
liabilities as of May 29, 2013.
Bankruptcy Judge Jeff Bohm oversees the Chapter 11 case. Deirdre
Carey Brown, Esq., Annie E. Catmull, Esq., Melissa Anne Haselden,
Esq., Mazelle Sara Krasoff, Esq., and Edward L Rothberg, at Hoover
Slovacek, LLP, in Houston, represent the Debtor as counsel. The
Debtor tapped Gilbert A. Herrera and Herrera Partners as the
investment banker.
Earlier in the case, Rhode Holdings, LLC, sought the transfer of
venue of Digerati's Chapter 11 case to the U.S. Bankruptcy Court
for the Western District of Texas, San Antonio Division. The
case, however, remained in the Houston Bankruptcy Court.
* * *
Hurley Enterprises and Dishon Disposal sold for approximately $41
million. Dishon was sold to Buckhorn Disposal, LLC at auction on
June 19, 2014 for $27 million. The only other bidder was Terry
Dishon with a credit bid of $12.3 million. The Hurleys submitted
the winning bid for Hurley at auction, with a credit bid of $14
million.
DTS8 COFFEE: Secures $65,000 From Common Stock Offering
-------------------------------------------------------
DTS8 Coffee Company, Ltd., sold 433,333 shares of common stock at a
price of $0.15 per share in exchange for total proceeds of $65,000.
No commissions or underwriting discounts were paid in connection
with the sale of the stock, according to a regulatory filing with
the U.S. Securities and Exchange Commission.
The shares were sold in reliance on an exemption from registration
provided by Section 4(2) and Rule 506(b) of Regulation D under the
Securities Act of 1933, as amended. The Company's reliance on Rule
506(b) is based on the fact that there was no solicitation, and the
shares were sold in a private offering to four persons known by
management or a representative of the management.
The Company plans to use the proceeds of the offering for working
capital purposes and to pay general operating expenses.
About DTS8 Coffee
DTS8 Coffee Company, Ltd. (previously Berkeley Coffee & Tea, Inc.)
was incorporated in the State of Nevada on March 27, 2009.
Effective Jan. 22, 2013, the Company changed its name from
Berkeley Coffee & Tea, Inc., to DTS8 Coffee Company, Ltd. On
April 30, 2012, the Company acquired 100 percent of the issued and
outstanding capital stock of DTS8 Holdings Co., Ltd., a
corporation organized and existing since June 2008 under the laws
of Hong Kong and which owns DTS8 Coffee (Shanghai) Co., Ltd.
DTS8 Holdings, through its subsidiary DTS8 Coffee, is a gourmet
coffee roasting company established in June 2008. DTS8 Coffee's
office and roasting factory is located in Shanghai, China. DTS8
Coffee is in the business of roasting, marketing and selling
gourmet roasted coffee to its customers in Shanghai, and other
parts of China. It sells gourmet roasted coffee under the "DTS8
Coffee" label through distribution channels that reach consumers
at restaurants, multi-location coffee shops, and offices.
DTS8 Coffee incurred a net loss of $2.31 million on $310,003 of
sales for the year ended April 30, 2014, as compared with a net
loss of $1.11 million on $253,790 of sales during the prior year.
As of Oct. 31, 2014, the Company had $3.44 million in total
assets, $1.02 million in total liabilities, all current, and $2.42
million in total stockholders' equity.
MaloneBailey, LLP, in Houston, Texas, issued a "going concern"
qualification in its report on the Company's financial statements
for the year ended April 30, 2014, citing that the Company has
suffered recurring losses from operations, which raises
substantial doubt about its ability to continue as a going
concern.
EASTERN DERRY FIRE DEPT: Relief Association Mulls Ch. 11 Filing
---------------------------------------------------------------
Greg Reinbold at Triblive.com reports that a group seeking to
reopen the shuttered Eastern Derry Township Volunteer Fire
Department are considering putting the Fire Department into Chapter
11 bankruptcy to save it from its financial troubles or starting it
as a newly chartered nonprofit.
Triblive.com recalls that the Fire Department defaulted on its
vehicle insurance and was removed from the Westmoreland County
Public Safety call list. According to Triblive.com, Justin Titel,
vice president of the Fire Department's relief association, said
that three of the four trucks have been repossessed, and two
creditors are moving to foreclose on the defunct Fire Department's
fire hall and equipment. Triblive.com says that the two creditors
are:
a. First Government Lease Co., which claims in court
documents it filed in November 2014 that Eastern Derry
had failed to pay its mortgage on the property along
state Route 217 for more than two months. As of Oct. 29,
2014, the Fire Department owed $106,670 in principal,
interest and late charges on a second mortgage; and
b. First Commonwealth Bank, which sought on Dec. 31, 2014,
to foreclose, claiming the Fire Department had fallen
behind on payments for its first mortgage. The Fire
Department owes more than $169,000 on that mortgage, but
could reach a deal to stop the foreclosure by paying
about $12,000 in arrears, Mr. Titel said.
Citing Mr. Titel, Triblive.com relates that the group seeking to
reopen the Fire Department has consulted with an attorney in
Greensburg, but has not obtained legal representation. According
to the report, Mr. Titel said that the remaining members of the
association have met monthly since October 2014, trying to
formulate a plan to get the Fire Department back on track. "As a
total of about 15 people, we've been in talks with each other,
having some meetings and all that, trying to figure out the right
way to go to get this company back open and to show the township
that we're not the same people that were in there before," the
report quoted Mr. Titel as saying.
According to Triblive.com, relief association officers said that
state police are conducting a probe on how equipment from the Fire
Department ended up in several pawn shops throughout the region
after Eastern Derry was taken off the 911 call list. The Bureau of
Firefighters' Relief Association Audits is conducting a performance
audit on the Eastern Derry relief association, which should be
completed in late spring or early summer, the report states, citing
a spokesperson from the Auditor General's office.
Triblive.com reports that members of the Fire Department are trying
to gather funds for its relief association to help get the station
open again. The report says that Eastern Derry members conducted a
boot drive and sold lottery-style strip tickets.
Eastern Derry Township Volunteer Fire Department in Pennsylvania
started operations in 1972 and has been defunct since July 2014.
EMERALD INVESTMENTS: Meeting of Creditors Set for Feb. 12
---------------------------------------------------------
The meeting of creditors of Emerald Investments, LLC is set to be
held on Feb. 12, at 3:00 p.m., according to a filing with the U.S.
Bankruptcy Court for the Southern District of New York.
The meeting will be held at the Office of the U.S. Trustee, 80
Broad Street, Fourth Floor, in New York.
The court overseeing the bankruptcy case of a company schedules the
meeting of creditors usually about 30 days after the bankruptcy
petition is filed. The meeting is called the "341 meeting" after
the section of the Bankruptcy Code that requires it.
A representative of the company is required to appear at the
meeting and answer questions under oath. The meeting is presided
over by the U.S. trustee, the Justice Department's bankruptcy
watchdog.
About Emerald Investments
Emerald Investments, LLC, sought Chapter 11 protection (Bankr.
S.D.N.Y. Case No. 14-13407) in Manhattan on Dec. 15, 2014.
The case is assigned to Judge Martin Glenn.
Norwalk, Connecticut-based Emerald Investments estimated $10
million to $50 million in assets and less than $10 million in debt.
The formal schedules of assets and liabilities, as well as the
statement of financial affairs, are due Dec. 29, 2014.
The Debtor has tapped David Y. Wolnerman, Esq., at White &
Wolnerman, PLLC, in New York, as counsel.
GASFRAC ENERGY: Obtains Court Protection Under CCAA
---------------------------------------------------
GASFRAC Energy Services Inc. on Jan. 15 disclosed that the
Corporation has commenced proceedings and obtained court protection
under the Companies' Creditors Arrangement Act ("CCAA") pursuant to
an initial order granted by the Court of Queen's Bench, in the
Province of Alberta, on January 15, 2015. Pursuant to the Initial
Order the Corporation and all of its operating subsidiaries have
obtained protection from its creditors under CCAA, other than in
respect of the Corporation's primary secured lender, PNC Bank
Canada Branch ("PNC"), for a period expiring February 9, 2015, as
the Corporation attempts to restructure and reorganize its assets,
business and financial affairs, subject to possible extension from
time to time pursuant to further court order. The application for
the Initial Order was not opposed by PNC and the Corporation is
currently attempting to negotiate a forbearance agreement with PNC
related to its secured indebtedness, although there is no assurance
such an agreement will be reached or what the terms thereof will
include.
As a result of a combination of continuing negative operating
results, limited access at the present time to capital markets for
junior issuers such as the Corporation, reduced industry activity
resulting from depressed petroleum and natural gas commodity prices
and the inability of the Corporation to obtain a suitable offer for
the purchase of the Corporation or its assets after a strategic
alternative process, which commenced on November 13, 2014, that
would satisfy all of the Corporation's existing financial
obligations, both secured and unsecured, the Corporation was unable
to restructure its affairs in an adequate manner, and after careful
consideration of all other available alternatives, the board of
directors of the Corporation determined that it was in the best
interests of the Corporation and all of its stakeholders to file
for an application for creditor protection under the CCAA.
Under the CCAA proceedings, it is expected that the Corporation's
operations will continue uninterrupted in the ordinary course of
business and obligations to employees, key suppliers of goods and
services and obligations to the Corporation's customers, after the
filing date, will continue to be met on an ongoing basis. Under
the Initial Order the Corporation's management will remain
responsible for the day-to-day operations of the Corporation and to
the best of the knowledge, information and belief of the
Corporation there are no intended material changes to the
management team or the composition of the board of directors and
that the continuity thereof is anticipated to continue throughout
the CCAA process.
To enable the Corporation and its operating subsidiaries to
maintain normal business operations, the Initial Order provides a
stay of certain creditor claims and the exercise of contractual
rights arising out of the CCAA process, as well as, provides the
necessary protection to continue a strategic alternative process
under the oversight of the board of directors and with the advice
of the Corporation's professional advisors. In this regard the
Corporation anticipates that it will make an application in the
near future for a further court order to create a sale and
investments solicitation process ("SISP") to be conducted in
conjunction with the CCAA proceedings, intended to generate
interest in either the business or the assets of the Corporation,
with the goal of maximizing return in respect of the Corporation's
assets and creating the foundation of a plan of compromise or
arrangement for all stakeholders of the Corporation.
Subject to further court approval, it is anticipated that the
Corporation will continue to retain CIBC World Markets Inc., as
sales agent, investment banker and financial advisor to the
Corporation in connection with any proposed financing or sale
transaction that may arise under the CCAA proceedings or any future
SISP. A further court application related to approval of this
engagement is anticipated to proceed in the near future.
Ernst & Young Inc. has been appointed Monitor of the Corporation
for the CCAA proceedings. A copy of the CCAA Initial Order will be
made available and details relating to this case may be accessed on
the Monitor's website at www.ey.com/ca/gasfracenergy The Monitor
has also established the following information hotline related to
enquiries regarding the CCAA process, at 403-206-5060.
Trading in the common shares of the Corporation on the Toronto
Stock Exchange ("TSX") have been halted and it is anticipated that
the trading thereof will continue to be halted until a review is
undertaken by the TSX regarding the suitability of the Corporation
for listing on the TSX.
Further news releases will be provided on an ongoing basis
throughout the CCAA process as may be determined necessary.
Headquartered in Calgary, Canada, GASFRAC Energy Services Inc.
(GASFRAC) -- http://www.gasfrac.com-- is an oil and gas service
company, whose business is to provide liquid petroleum gas (LPG)
fracturing services to oil and gas companies in Canada and the
United States of America. As of December 31, 2011, GASFRAC had
three 32 tons and nine 100 tons sand storage vessels, 47 fracturing
pumpers, 150 LPG storage tanks and related equipment. GASFRAC's
services are marketed and operated under the name of its wholly
owned subsidiary GASFRAC Energy Services Limited Partnership. The
Company has commercialized the use of LPG as the fracturing fluid.
The Company's subsidiaries include GASFRAC Services GP Inc.,
GASFRAC US Holdings Inc., GASFRAC Inc., GASFRAC Energy Services
(US) Inc. and GASFRAC Luxembourg S.a.r.l. In March 2014, GASFRAC
Energy Services Inc sold its certain of parked equipment.
GLOBAL PROTECTION: 2 Adversary Suits Stayed Pending Criminal Case
-----------------------------------------------------------------
Judge Andrew B. Altenburg, Jr., stayed until April 28, 2015, two
different adversary proceedings within the Global Protection USA,
Inc. bankruptcy case. These adversary proceedings are:
-- The Official Committee of Unsecured Creditors of Global
Protection USA, Inc. v. Susquehanna Bank, Case No.
12-01879 (Bankr. D.N.J.); and
-- Andrew Sklar, Chapter 7 Trustee of the Bankruptcy Estate
of Global Protection USA, Inc. v. Guarino et al., Case
No. 14-01299 (Bankr. D.N.J.).
In the Bank Adversary, Stephen Guarino was subpoenaed as a witness
to testify on behalf of Defendant Susquehanna Bank. Mr. Guarino
filed a Motion for a Protective Order by Staying the Adversary
Proceeding on November 4, 2014 by and through his counsel:
Harold G. Cohen, Esq.
DILWORTH PAXSON LLP
457 Haddonfield Rd., Suite 700
Cherry Hill, NJ 08002
Tel: (856) 675-1950
Fax: (856) 663-8855
E-mail: hcohen@dilworthlaw.com
Mr. Guarino seeks the relief requested because of a pending
criminal action against him in Los Angeles County Superior Court,
Case No. BA425235. Mr. Guarino seeks a stay of the entire case
until the conclusion of the Criminal Proceeding.
Susquehanna Bank filed a Statement of Non-Opposition to the Motion
for a Protective Order by Staying the Adversary Proceeding, by and
through its counsel:
William G. Wright, Esq.
CAPEHART & SCATCHARD, P.A.
8000 Midlantic Dr., Ste 300S
P.O. Box 5016
Mt. Laurel, NJ 08054-5016
Tel: 856-234-6800
Fax: 856-235-2786
The Chapter 7 Trustee filed an Objection to the Motion for
Protective Order, by and through his counsel:
John S. Mairo, Esq.
Kelly D. Curtin, Esq.
PORZIO BROMBERG & NEWMAN, P.C.
PO Box 1997 100 Southgate Parkway
Morristown, NJ 07962-1997 USA
Tel: (973) 889-4107
Fax: (973) 538-5146
E-mail: jsmairo@pbnlaw.com
kdcurtin@pbnlaw.com
In the Guarino Adversary, Mr. Guarino, Kathleen Guarino, ASKAT LLC,
Global Safety, LLC, Rhino Pet Series 6 LLC, Rhino Pet Series 7 LLC,
Rhino Pet Series 24 LLC, SKYE-NZAPT Trust, Loveladies Nevada Asset
Protection Trust (LNVAPT) and Cherry NVAPT -- "Guarino Defendants"
-- in light of the Criminal Proceeding, likewise filed a Motion for
a Stay of Adversary Proceeding. They seek a stay of the entire
case until the conclusion of the Criminal Proceeding.
The Chapter 7 Trustee also filed an Objection to the Motion.
The Criminal Proceeding relates to the Debtor's warehousing and
disposition of respirator masks purchased by the California
Department of Public Health. Mr. Guarino is personally named in
the Criminal Proceeding as an officer of the Debtor. Mr. Guarino
and the Guarino Defendants request a stay of the cases on the
grounds that Mr. Guarino will be unable to testify effectively in
either the Bank Adversary or the Guarino Adversary prior to the
conclusion of the Criminal Proceeding alleging that any testimony
Mr. Guarino would be required to give before the bankruptcy court
could be used against him in the Criminal Proceeding and therefore
infringe upon his Fifth Amendment rights. His criminal defense
attorney has advised Mr. Guarino not to provide affidavits,
certifications, testimony, or discovery in either case to safeguard
his Fifth Amendment right against self-incrimination.
The Chapter 7 Trustee argues that the factual allegations in the
adversary proceedings bear no significant relationship to the
allegations in the Criminal Proceedings. Moreover, the Trustee
alleges that it is he, and not the Guarino Defendants, who would be
prejudiced by a stay of the cases.
"The court will grant the Motions in the Bank Adversary and the
Guarino Adversary for a stay. Mr. Guarino's counsel has averred how
absurd the Criminal Proceeding is, suggesting that the matter may
be resolved rather quickly. To that end, the court will grant the
stay until April 28, 2015," Judge Altenburg said.
Until then, the court shall require Mr. Guarino to submit monthly
status reports of the Criminal Proceeding by the 20th day of each
month starting Jan. 20, 2015. The failure to do so may result in a
lifting of the stay. The court will conduct a status conference on
April 28, 2015 at 2:00 p.m. to determine whether the stay should
continue beyond that date. The parties may submit comments by April
14, 2015.
A copy of Judge Altenburg's Jan. 13, 2015 Memorandum Decision is
available at http://is.gd/i4O6eBfrom Leagle.com.
About Global Protection
Global Protection USA, Inc., filed a Chapter 11 petition
(Bankr. D.N.J. Case No. 12-16322) on March 12, 2012 in Camden,
New Jersey. Ira Deiches, Esq., at Haddonfield, in New Jersey,
serves as counsel to the Debtor. The Debtor disclosed $3,252,901
in assets and $5,440,617 in liabilities. The petition was signed
by Stephen Guarino, president.
The case was later converted to Chapter 7 and Andrew Sklar was
named as Chapter 7 Trustee.
GORDIAN MEDICAL: To Seek Approval of 1st Amended Plan Feb. 18
-------------------------------------------------------------
Gordian Medical, Inc., is scheduled to seek confirmation of its
First Amended Plan of Reorganization dated Jan. 13, 2015, on Feb.
18, 2015, at 2:00 p.m.
Feb. 4, 2015 is the last day to file and serve written objections,
comments or responses to the confirmation of the Plan.
The Plan provides for the payment of all allowed claims in full on
the later of the Effective Date and the date upon which a Claim
becomes and allowed claim and the continued operation of the
Debtor's business. The Debtor intends to fund payments required
under the Plan from the Debtor's cash on hand as of the Effective
Date and a contribution already made by Gerald Del Signore, the
President of the Debtor.
The Reorganized Debtor will pay all persons and entities holding
administrative claims that have not previously been paid 100% of
the allowed amount of the claims, plus interest, fees and costs on
the Effective Date or when the claim becomes an Allowed Claim,
whichever is later.
The Debtor intends to fund payments required under the Amended Plan
from the Debtor's cash on hand as of the Effective Date along with
a $15 million contribution previously made by Gerald Del Signore,
the President of the Debtor. Of the $15 million, Mr. Del Signore
used approximately $1.5 million to pay all general non-governmental
unsecured claims.
The motion demonstrating the adequacy of the Plan and the Debtor's
memorandum in support of confirmation of the Plan will be filed on
Jan. 28, 2015 and will be available for review at that time.
A copy of the First Amended Plan is available for free at:
http://bankrupt.com/misc/Gordian_1st_Am_Plan.pdf
About Gordian Medical
Gordian Medical, Inc., dba American Medical Technologies, filed a
Chapter 11 petition (Bankr. C.D. Cal. Case No. 12-12339) in Santa
Ana, California, on Feb. 24, 2012, after Medicare refunds were
halted. Irvine, California-based Gordian Medical provides supplies
and services to treat serious wounds. The Debtor has active
relationships with and serves patients in more than 4,000 nursing
facilities in 49 states with the heaviest concentration of the
nursing homes being in the south and southeast sections of the
United States.
In its schedules, the Debtor disclosed $37.9 million in assets and
$7.59 million in liabilities as of the Petition Date.
Judge Mark S. Wallace oversees the case. Jeffrey L Kandel, Esq.,
Teddy M Kapur, Esq., Samuel R. Maizel, Esq., and Scotta E.
McFarland, Esq., at Pachulski Stang Ziehl & Jones LLP, represent
the Debtor as counsel. Fulbright & Jaworski LLP serves as the
Debtor's special regulatory counsel. Loeb & Loeb LLP serves as
the Debtor's special tax counsel.
GlassRatner Advisory & Capital Group LLC serves as the Debtor's
financial advisor.
The U.S. Trustee appointed five members to the Official Committee
of Unsecured Creditors. The Committee is represented by Landau
Gottfried & Berger LLP.
GRUPO UNICOMER: Fitch Affirms 'BB-' IDR; Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed Regal Forest Holding Co. Ltd ratings
(Grupo Unicomer):
-- Local currency Issuer Default Rating (IDR) at 'BB-';
-- Foreign currency IDR at 'BB-';
The Rating Outlook is Stable.
The ratings reflect the company's leading business position in most
of the 18 countries in Central America and the Caribbean and in two
countries in South America, where it has presence, through 857
units with 13 different store brands that sell consumer durable
products. The ratings incorporate Grupo Unicomer's track record of
stable operational results based on a business model that targets
low-income to middle-income segments, which represent the majority
of the population in those countries where the company operates,
through several retail formats. The ratings consider the support
and solid financial position of its shareholders Milady Group
(Milady) from El Salvador and El Puerto de Liverpool (Liverpool)
from Mexico (rated 'BBB+'/Outlook Stable). Supporting the ratings
is the company's historic performance of positive cash flow from
operations throughout the business cycle.
Grupo Unicomer's ratings are constrained by its growth strategy
through acquisitions, which has resulted in about USD300.6 million
of working capital and USD121 million of Capex investments since
year-end 2011 and adjusted leverage levels above 4.0x. The ratings
also factor in the company's credit risk exposure from its consumer
finance business model with around 35% overdue accounts receivable
as of LTM Sept. 30, 2014 (past due accounts for 90 days or more
were 6.8%); this risk is mitigated somehow by the company's track
record of its collection procedures and the portfolio yield
strategies.
Fitch's previous expectation on adjusted debt to EBITDAR of around
4.0x was not met this year, due to weaker than expected economic
environment in some of the markets where the company operates. The
company's credit metrics are still within the rating category. The
Stable Outlook incorporates the view that Grupo Unicomer's credit
profile will be stable in the medium term. Adjusted debt to
EBITDAR is expected to be in the 4.0-4.5 times (x) range in the
following years, absent additional acquisitions, in addition to
stable portfolio credit quality.
KEY RATING DRIVERS
Geographic & Format Diversification Support Predictable Results
Grupo Unicomer's business model provides important integration and
synergies among its retail division through a purchasing and
logistic company that allows the company to be an efficient
operator in many countries and having a competitive advantage in
small territories such as those in the Caribbean through ownership
or long term leases of prime spots in the islands. Geographic
diversification allows the company to have a diverse revenue base
due to different dynamics in each of the countries where Grupo
Unicomer has presence. Different sources of revenue through
product sales, extended warranties, consumer finance, and insurance
products provide stability along with the wide array of products
that the company offers (electronics, motorcycles, furniture,
eyewear, etc.)
Moderate 2015 Revenue Growth Expected
The company's operations have maintained a growing trend, with
consolidated revenues of USD1.4 billion as of Sept. 30, 2014,
representing a compound annual growth rate (CAGR) of 23.7% in the
2011-2014 period, most of it coming from acquired operations. Fitch
expects that the company will continue benefiting from positive
demand trends in discretionary products in the markets where it
operates. During fiscal year ended 2015, Fitch projects the
company's revenues will grow by approximately 2.3%. Fitch expects
consolidated EBITDAR margin will range between 11% and 12%.
Shareholders' Solid Position Incorporated
The ratings consider the support and solid financial position of
its shareholders Milady (50%) and Liverpool ( rated 'BBB+'/Outlook
Stable) (50%) with proven track record in retail since 1847.
Milady's Portfolio includes department store chains and all
Inditex's franchises in Central America. Liverpool, a department
store with 101 units and 24 shopping malls in Mexico had USD5.9
billion in total revenues in the last 12 months (LTM) ended in
September 2014 with USD1 billion of EBITDAR in the same period.
Total assets were USD7.1 billion with USD4.3 billion in equity.
Liverpool's Total adjusted debt/EBITDAR was 1.3x for the LTM ended
in September 2014.
Positive CFO provide Financial Strength
The ratings incorporate Grupo Unicomer's positive FFO and CFO
generated throughout the business cycles. The company's cash flow
is supported by its profitability and cost controls. Historically,
CFO has been sufficient to fund capex and dividend payments;
acquisitions of retail chains in Central and South America and the
Caribbean have been financed mostly with debt. In 2010 and 2006,
Grupo Unicomer received equity injections of USD109 million and
USD35 million, respectively, which were used to strengthen the
company's financial position.
Limited Inorganic Growth in the Short Term
Historically, Grupo Unicomer has grown through acquisitions. It
started in 2000 with the acquisition of Dutch Group CETECO's
Central America operations, La Curacao and Tropigas; in 2006 Regal
acquired Courts Plc's Caribbean operations. In 2011, the company
acquired Artefacta in Ecuador and in 2012 Gollo in Costa Rica. This
growth resulted in about USD300.6 million of working capital and
USD121 million of Capex investments since year-end 2011. This
situation of rapid growth constrains the ratings, given that it has
been financed mostly with debt, in conjunction with shareholders'
equity contributions of USD109 million in 2010. Total lease
adjusted debt to EBITDAR (EBITDA including operating leases) was
4.7x in last 12 months (LTM) ended Sept. 30, 2014; at the end of
fiscal year (FY) ended March 2014, 2013, 2012 and 2011 were 4.5x,
4.6x, 3.8x, and 3.5x, respectively.
Neutral Free Cash Flow
The company has recorded positive FCF during this year, due to the
slowdown of its expansion strategy. Grupo Unicomer generated
positive FCF of approximately USD4 million in LTM ended in
September, 2014 and negative FCF of USD10.4 million in fiscal year
ended March 2014. Fitch's calculation of FCF considers cash flow
from operations less capital expenditures less distributed
dividends. The company's FCF generation is anticipated to be
neutral or slightly negative during the 2015-2016 period. The
company's capital expenditures plan during the next two years is
expected to reach annual levels of around USD33 million.
Distributed dividends are estimated to be 25% of previous year's
net profit for the following years.
Moderate Level of Overdue Accounts Offset by Financial Spread
Grupo Unicomer's ratings factor in the credit risk inherent to its
consumer finance business model. At Sept. 30, 2014, the company's
portfolio had an average of 35% of overdue (balance) accounts
compared to 35.1%, 36% and 34.5% at the end of fiscal year at March
2014, 2013 and 2012, respectively. This risk is partially
mitigated by the company's efficient collections program and the
track record of its portfolio yield. The company's past due
accounts for 90 days or more were 6.8% as of Sept. 30, 2014 and
6.2% and 4.8%, during fiscal years ended in March 2014 and 2013
respectively; during the financial crisis period (2009-2010) this
ratio increased to similar levels as current ratios which Fitch
considers manageable. The company's uncollectable reserves policy
is based on a Roll Rate methodology, which predicts losses based on
delinquency. The Roll Rate method measures the percentage of
dollars that 'roll' historically from one range of delinquency to
the next. At Sept. 30, 2014, the total reserves to +90 days past
due balance was 0.87x.
Grupo Unicomer's commercial strategy considers a financial spread
sufficient to cover credit risks associated to the portfolio.
During the fiscal years ended at March 2014, 2013, 2012 and 2011
the portfolio yield after deducting uncollectable expenses and
write offs was around 39.2%, 42.2%, 41.7% and 41.7%, respectively,
and LTM as of Sept. 30, 2014 it was 39%.
RATING SENSITIVITIES
Positive Rating Actions: Grupo Unicomer's ratings could be
positively affected by significant and sustained improvement (above
expectations already incorporated) in its positive cash flow
generation, leverage and liquidity metrics.
Negative Rating Actions: A negative rating action could result from
some combination of the following factors: significant
deterioration in the credit quality of the company's consumer
finance business, lower cash flow generation, measured as EBITDAR;
and/or incremental debt associated with acquisition activity
resulting in the adjusted debt/EBITDAR ratios consistently above
5x.
HAAS ENVIRONMENTAL: Files Second Amended Plan
---------------------------------------------
Haas Environmental, Inc., filed its Second Amended Plan of
Reorganization, which provides that unsecured creditors will
recover 50 cents on the dollar pursuant to a settlement, and for
the owner to retain control of the company.
The Debtor on Sept. 22, 2014, reached agreement with the Official
Committee of Unsecured Creditors regarding the treatment of holders
of allowed unsecured claims. The Debtor has agreed to make
payments for distributions to holders of allowed unsecured claims
equal to 50% of the total amount of allowed unsecured claims.
Payment of the settlement payment will begin with a minimum initial
payment of $300,000. The source of the plan settlement payment
will include, among other things, proceeds from Eugene Haas's
leasing of mineral rights at his property located in Bradford,
Pennsylvania, sales of real estate owned by the Debtor, Haas or
other insiders. Until such time as the plan settlement payment is
satisfied in full, Haas' and other insider's yearly salary and
benefits will be capped at $575,000.
Eugene Haas, holder of 100% of the equity interests of the Debtor,
will retain his interest in exchange for his new value
contribution. Haas will continue to be responsible for the
Debtor's operations after confirmation of the Plan.
A copy of the Second Amended Disclosure Statement is available for
free at http://bankrupt.com/misc/Haas_2nd_Am_DS.pdf
About Haas Environmental
With corporate offices located at Vincentown, New Jersey, Haas
Environmental, Inc., performs industrial cleaning and maintenance
at steel mills, and provides support services to companies involved
in "fracking" operations. The company's steel mill operations are
located in Trinity, Alabama; Armorel, Arkansas; and Burns Harbor,
Indiana.
Haas Environmental filed a Chapter 11 petition (Bankr. D.N.J. Case
No. 13-27297) on Aug. 6, 2013. Judge Kathryn C. Ferguson presides
over the case. The Debtor disclosed $10.1 million in assets and
$11.6 million in liabilities as of the Chapter 11 filing.
The Debtor tapped Cozen O'Conner as counsel from the Petition Date
through Dec. 8, 2013, and Sherman Silverstein from Dec.9, 2013 to
the present. Woodworth & St. John is the Debtor's accountant;
Guida Realty is the realtor to assist with the sale of the
Seubenville, Ohio property; and Kennen & Kennen, Inc. as realtor
for the sale of the Glen Dale property.
Mary E. Seymour, Esq., at Lowenstein Sandler LLP, serves as counsel
for the Official Committee of Unsecured Creditors. EisnerAmper LLP
serves as the Committee's financial advisor.
HD SUPPLY: Gregory Ledford Quits From Board
-------------------------------------------
In connection with the sale by Carlyle Partners V., L.P., and
related funds of its remaining stock investment in HD Supply
Holdings, Inc., the board of directors of Holdings and HD Supply,
Inc., accepted the offer of resignation of Gregory S. Ledford from
the Board, and his related responsibilities on the Nominating and
Corporate Governance and Executive Committees. Effective Jan. 2,
2015, the Board's size had been reduced from eleven to ten members,
according to a regulatory filing with the U.S. Securities and
Exchange Commission.
About HD Supply
HD Supply, Inc., headquartered in Atlanta, Georgia, is one of the
largest North American wholesale distributors supporting
residential and non-residential construction and to a lesser
extent electrical consumption and repair and remodeling. HDS also
provides maintenance, repair and operations services. Its
businesses are organized around three segments: Infrastructure and
Energy; Maintenance, Repair & Improvement; and, Specialty
Construction. HDS operates through approximately 800 locations
throughout the U.S. and Canada serving contractors, government
entities, maintenance professionals, home builders and
professional businesses.
HD Supply reported a net loss of $218 million for the fiscal year
ended Feb. 2, 2014, a net loss of $1.17 billion for the fiscal
year ended Feb. 3, 2013, and a net loss of $543 million for the
year ended Jan. 29, 2012.
As of Nov. 2, 2014, the Company had $6.52 billion in total assets,
$7.18 billion in total liabilities, and a $657 million
stockholders' deficit.
* * *
As reported by the TCR on Jan. 11, 2013, Moody's Investors Service
upgraded HD Supply, Inc.'s ("HDS") corporate family rating to B3
from Caa1 and its probability of default rating to B3 from Caa1.
"This rating action results from our expectations that HDS will
refinance a significant portion of its senior subordinated notes
due 2015, effectively extending the remainder of its maturities by
at least two years to 2017," Moody's said.
HD Supply carries a 'B' corporate credit rating, with
negative outlook, from Standard & Poor's Ratings Services.
HEI INC: Inks Deal with Customer, Proposes Key Suppliers Payment
----------------------------------------------------------------
HEI, Inc., seeks authority from the U.S. Bankruptcy Court for the
District of Minnesota to enter into an agreement with Biosense
Webster, Inc., and similar agreements with some of its other
customers.
Under the agreements with BWI and the potential agreements with
other customers, the Debtor would sell either inventory on hand or
finished products to the customers, in exchange for all related
expenses, plus a premium, being paid by the customers. The items
that would be sold, along with any further operations required to
finish the items, would be of the same type as the items regularly
sold and operations regularly conducted by the Debtor prior to
the Petition Date. The Purchase Order with BWI requires BWI to pay
the Debtor a total of $500,000 as a premium payment.
The Debtor also seeks authority to pay certain key suppliers'
prepetition amounts in an amount to total no more than $250,000, so
that these suppliers would continue to provide raw materials,
related goods and other services to be used by the Debtor in
manufacturing products for BWI and other customers. If the key
suppliers stop supplying the raw materials and related goods needed
to manufacture the products, the Debtor will not be able to comply
with its purchase orders, Sarah M. Olson, Esq., at Fredrikson &
Byron, P.A., in Minneapolis, Minnesota, tells the Court.
About HEI, Inc.
Headquartered in Victoria, Minnesota, HEI, Inc., develops and
manufactures microelectronics, substrates, electromechanical
hardware and embedded software for the medical, telecommunications,
military, aerospace and industrial markets. It has operations in
Arizona, Colorado and Minnesota.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. D. Minn.
Case No. 15-40009) in Minneapolis, Minnesota, on Jan. 4, 2015. The
case is assigned to Judge Kathleen H. Sanberg.
The Debtor estimated $10 million to $50 million in assets and
debt.
The deadline for governmental entities to file claims is July 6,
2015.
The Debtor has tapped James L. Baillie, Esq., James C. Brand, Esq.,
and Sarah M Olson, Esq., at Fredrikson & Byron P.A., as counsel;
Alliance Management as business and financial consultant; and
Winthrop & Weinstine, P.A., as special counsel.
The U.S. Trustee has appointed three members to the Official
Committee of Unsecured Creditors.
HORIZON LINES: HSR Act Waiting Period for Hawaii Sale Delayed
-------------------------------------------------------------
Horizon Lines, Inc., previously announced its entry into a
definitive agreement with The Pasha Group and SR Holdings LLC, a
wholly-owned subsidiary of Pasha, pursuant to which the Company has
agreed to sell its Jones Act container shipping business serving
the market of Hawaii from the continental United States to Pasha
and certain of its affiliates. The consummation of the Hawaii sale
is subject to various customary closing conditions, including,
among others, the expiration of the waiting period applicable to
the Hawaii sale under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended.
Horizon Lines disclosed in a regulatory filing with the U.S.
Securities and Exchange Commission that on Dec. 11, 2014, each of
the Company and Pasha filed a Notification and Report Form under
the HSR Act, which filings started the 30-day waiting period
required by the HSR Act. On Jan. 12, 2015, each of the Company and
Pasha received a request for additional information and documentary
material, commonly known as a "second request," from the Antitrust
Division of the U.S. Department of Justice, which requests have the
effect of extending the waiting period applicable to the Hawaii
Sale under the HSR Act until 30 days after both the Company and
Pasha have substantially complied with the second request. The
Company is preparing its response to the second request and intends
to comply with the second request as promptly as practicable.
The Company has also entered into an Agreement and Plan of Merger
with Matson Navigation Company, Inc., a wholly-owned subsidiary of
Matson, Inc., and Hogan Acquisition Inc., a wholly-owned subsidiary
of Matson ("Merger Sub"). The Merger Agreement provides for the
merger of Merger Sub with and into the Company, with the Company
surviving the Merger and becoming a wholly-owned subsidiary of
Matson. The consummation of the Hawaii sale is one of the
conditions to the completion of the Merger.
About Horizon Lines
Horizon Lines, Inc., is a domestic ocean shipping company and the
only ocean cargo carrier serving all three noncontiguous domestic
markets of Alaska, Hawaii and Puerto Rico from the continental
United States. The company owns a fleet of 13 fully Jones Act
qualified vessels and operates five port terminals in Alaska,
Hawaii and Puerto Rico. A trusted partner for many of the
nation's leading retailers, manufacturers and U.S. government
agencies, Horizon Lines provides reliable transportation services
that leverage its unique combination of ocean transportation and
inland distribution capabilities to deliver goods that are vital
to the prosperity of the markets it serves. The company is based
in Charlotte, NC, and its stock trades on the over-the-counter
market under the symbol HRZL.
For the year ended Dec. 22, 2013, the Company reported a net loss
of $31.9 million following a net loss of $94.7 million for the
year ended Dec. 23, 2012.
The Company's balance sheet at Sept. 21, 2014, showed $628 million
in total assets, $690.5 million in total liabilities and a
$62.2 million total stockholders' deficit.
* * *
In June 2012, Moody's Investors Service affirmed Horizon Lines,
Inc.'s Corporate Family Rating (CFR) and Probability of Default
Rating ("PDR") at Caa2 and removed the LD ("Limited Default")
designation from the rating in recognition of the conversion to
equity of the $228 million of Series A and Series B Convertible
Senior Secured notes due in October 2017 ("Notes").
Moody's said the affirmation of the Corporate Family and
Probability of Default ratings considers that total debt has been
reduced by the conversion of the Notes, but also recognizes the
significant operating challenges that the company continues to
face.
IG INVESTMENTS: Moody's Assigns B1 Rating on 1st Lien Loan Add-on
-----------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to IG Investments
Holdings, LLC's (the entity that indirectly owns Insight Global,
LLC - collectively referred to as "Insight Global") proposed
amended and extended first lien senior secured credit facilities,
consisting of an upsized $751 million term loan due 2021 (which
includes a $210 million tack-on) and a $60 million revolving credit
facility due 2019. In the same rating action, Moody's affirmed the
company's B1 Corporate Family Rating ("CFR") and B1-PD Probability
of Default Rating ("PDR"). The rating outlook is stable.
The proceeds from the proposed $210 million tack-on term loan will
be used to fund a $197 million distribution to the company's
sponsors and other investors. The amendment of the existing credit
agreement includes an upsize of the term loan to $751 million, an
extension of the term loan maturity to 2021 from 2019 and the
revolving credit facility maturity to 2019 from 2017, and a
revision of springing net leverage financial covenant ratios with
step downs to prior levels.
Insight Global's planned use of incremental debt to fund a sizeable
distribution will result in a material increase in leverage. With
total debt increasing by approximately 40%, Moody's estimates that
the company's leverage will increase to 5.8x pro forma
debt-to-EBITDA (including Moody's standard adjustments) as of
December 31, 2014 from 4.8x prior to this transaction as of
September 30, 2014. Other credit metrics will be similarly
affected, such as pro forma EBITA-to-interest coverage, which is
estimated to decline to 2.8x from 3.5x. However, Moody's has
affirmed Insight Global's ratings based on expectations for
continued revenue growth at steady margins amidst a relatively
strong operating environment. Moody's estimates that this will
allow the company to de-lever through EBITDA growth during 2015 to
levels that are more firmly supportive of the B1 rating.
The following summarizes the rating activity for IG Investments
Holding, LLC:
Proposed upsized $751 million (including $210 million tack-on)
first lien senior secured term loan due 2021, assigned a B1
(LGD3);
Proposed $60 million first lien senior secured revolving credit
facility due 2019, assigned a B1 (LGD3);
Corporate Family Rating, affirmed at B1;
Probability of Default Rating, affirmed at B1-PD;
The rating outlook is stable.
The ratings on the company's existing $541 million first lien
senior secured term loan due 2019 and $60 million revolving credit
facility due 2017 have not been changed, and will be withdrawn upon
close of the transaction.
Ratings Rationale
The B1 corporate family rating reflects Moody's expectations that
over the next 12 months the company will de-lever through revenue
and earnings growth comfortably below 5.0x Moody's-adjusted
debt-to-EBITDA and will sustain this level of leverage, which is
consistent with the B1 rating. EBITA to interest coverage is
expected to increase above 3.0x over the same time period. Moody's
expects operating performance improvement to be driven by the
continuation of favorable demand trends in the information
technology segment of the temporary staffing industry. The rating
also considers the company's demonstrated ability to meaningfully
grow sales/earnings, including during the periods of macroeconomic
weakness, good execution in expanding its office locations, and
potential growth opportunities with new and existing clients.
Nevertheless, Insight Global's ratings are constrained by its
aggressive financial policies favoring equity holders and its
willingness to incur debt to fund distributions, which results in
high leverage and reduced financial flexibility. Moody's notes that
the proposed transaction is a second distribution since the Ares
Management LBO in October 2012. The ratings also reflect the
company's relatively modest scale within the highly fragmented
staffing industry, a degree of customer concentration, exposure to
cyclical temporary staffing trends, and working capital needs that
constrain cash flow generation.
Moody's expect Insight Global to maintain an adequate liquidity
profile. The company is estimated to have only a minimal level of
cash on hand on close of the proposed transaction, with modest free
cash flows that are constrained by high working capital
requirements as business activity grows. Moody's expects that the
company will have the majority of its $60 million revolving credit
facility available to support operations over the near term, and
will have an ample cushion to its springing financial covenant
prescribed under terms of the credit agreement.
The stable rating outlook reflects Moody's expectations that over
the next 12 months the company will continue to demonstrate solid
revenue and earnings growth, while maintaining operating margins,
and will de-lever comfortably below 5.0x on a sustainable basis.
Moody's could downgrade the ratings if the company continues to
exercise aggressive financial policies that result in recurring
re-leveraging to fund distributions. The ratings could also be
downgraded if over the next 12 months Insight Global's revenue and
earnings do not grow as expected such that leverage remains above
5.0x, if EBITA to interest falls below 2.0x, or if retained cash
flow to net debt remains below 12%.
Given Insight Global's current aggressive financial policies, an
upgrade is unlikely in the intermediate term. However, over the
long term, higher ratings could be considered if the company were
to demonstrate a commitment to more conservative financial
policies, sustain revenue growth at strong operating margins, while
substantially repaying debt through application of free cash flow.
Sustaining credit metrics such as debt to EBITDA of below 3.5x,
EBITA to interest materially over 3.0x and retained cash flow to
net debt over 15% could support higher rating consideration.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014. Other
methodologies used include Loss Given Default for Speculative-Grade
Non-Financial Companies in the U.S., Canada and EMEA published in
June 2009.
Insight Global, headquartered in Atlanta, Georgia, is a specialized
provider of temporary and project professionals in the field of
information technology. The company operates through 38 offices
that are largely located in major cities across the U.S. Insight
Global is private and is sponsored by affiliates of Ares
Management. In the last twelve month period ending September 30,
2014, the company generated approximately $1.2 billion in
revenues.
IG INVESTMENTS: S&P Affirms 'B' CCR; Outlook Stable
---------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'B'
corporate credit rating on Atlanta, Ga.-based IG Investments
Holdings LLC. The rating outlook remains stable.
At the same time, S&P affirmed its 'B' issue-level rating on IG
Investments' senior secured first-lien term loan following the
company's proposed $210 million add-on. S&P's '3' recovery rating
on the term loan and revolving credit facility remains unchanged
following the company's proposed amendment to the term loan and
revolving credit facility's credit agreement to extend their
maturity to 2021 from 2019 and to 2019 from 2017, respectively. The
'3' recovery rating indicates S&P's expectation for meaningful
recovery (50%-70%; lower end of the range) for lenders in the event
of a payment default.
The company will use net proceeds from the $210 million add-on to
pay up to $197 million in shareholder distributions. Pro forma
debt leverage is roughly 5.6x.
"The corporate credit rating on IG Investments reflects our
expectation that leverage will remain above 5x in 2015, despite
favorable organic revenue growth prospects, reflecting the
company's aggressive financial policy and history of debt-financed
shareholder distributions," said Standard & Poor's credit analyst
Elton Cerda.
"The stable rating outlook incorporates our expectation that IG
Investments' operating performance will remain strong and its
liquidity will remain adequate, even though debt leverage will
remain relatively high, reflecting the company's aggressive
financial policies," said Mr. Cerda. "We consider a downgrade as
more likely than an upgrade over the next two to three years."
S&P could lower the rating over the next two to three years if debt
leverage rises above 7x. This could result from another
shareholder distribution combined with underperformance due to
competitive force, major client losses, or significant pricing
deterioration.
Although less likely, S&P could consider raising the rating to 'B'
over the next two to three years if it become convinced that the
company will be able to reduce and maintain lease-adjusted leverage
below 5x, and if it demonstrates consistently good revenue and
EBITDA growth, while generating meaningful positive discretionary
cash flow. S&P will also consider the track record that management
establishes with respect to repaying debt and returning cash to
shareholders.
INDEX RECOVERY: Taps Deloitte Tax to Prepare and File Tax Returns
-----------------------------------------------------------------
Index Recovery Company, LP, asks the U.S. Bankruptcy Court for
permission to employ Deloitte Tax LLP as tax services provider,
nunc pro tunc to Oct. 6, 2014.
Deloitte Tax will prepare and file tax returns necessary to enable
the Debtor to determine the claims against its estate and to be
able to satisfy its legal and regulatory obligations.
To the best of the Debtor's knowledge, Deloitte Tax is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
About Index Recovery Group
Index Recovery Group, LP, a managed futures investor formerly
known as SPhinX Managed Futures Index Fund, LP, sought Chapter 11
protection (Bankr. N.D.N.Y. Case No. 14-61434) in Utica, New York,
on Sept. 2, 2014. The Debtor disclosed total assets of $13.8
million and total liabilities of $35.5 million. Judge Diane
Davis presides over the case. The Debtor is represented by
Jeffrey A. Dove, Esq., at Menter, Rudin & Trivelpiece, P.C.
The Debtor notified the Bankruptcy Court that the effective date of
the Plan of Liquidation was deemed to have occurred on Dec. 11,
2014. The Plan of Liquidation dated Sept. 24, 2014, was approved
by U.S. Bankruptcy Judge Diane Davis on the same date.
INTEGRITY FACILITIES: Files for Ch 7, Fails to Pay Durham Public
----------------------------------------------------------------
Emma Loewe at Indyweek.com reports that Integrity Facilities
Management Inc. filed for Chapter 7 in December 2014, and listed
$204,689 worth of assets, about $150,000 of which is janitorial
equipment.
Integrity Facilities filed for Chapter 11 bankruptcy protection
(Bankr. M.D.N.C. Case No. 14-80617) on June 6, 2014, and disclosed
more than $642,000 in total debts, which included $237,828 to the
Internal Revenue Service and another $57,000 in other taxes.
Florence A. Bowens, Esq., serves as the Debtor's bankruptcy
counsel.
Indyweek.com relates that Integrity Facilities hasn't paid the
Durham Public Schools system for its services from Oct. 16 to Nov.
5, 2014. According to Indyweek.com, Durham Public has been
contracting custodial workers from Durham, North Carolina's SSC
Service Solutions, which, in turn, subcontracted from Integrity
Facilities. The report says that custodial workers didn't learn
that their missing paychecks were a result of Integrity Facilities'
bankruptcy until Nov. 20, 2014. Durham Public, the report states,
will reimburse 130 custodial workers for almost $200,000 in back
wages.
According to court documents, Integrity Facilities was able to
drastically cut expenses from Oct. 14 to Nov. 14, 2014, due in
large part to a $97,864 drop in payroll payments.
Integrity Facilities Management Inc. is a maintenance service
company based in Durham, North Carolina.
INTERNATIONAL RECTIFIER: Fitch Withdraws 'BB' IDR on Infineon Deal
------------------------------------------------------------------
Fitch Ratings has withdrawn the ratings for International Rectifier
Corp.'s (IR) (NYSE: IRF) following the company's acquisition by
Infineon Technologies AG. Fitch withdraws these ratings:
-- 'BB' long-term Issuer Default Rating
-- 'BB' senior unsecured revolving credit facility
INTERNATIONAL RECTIFIER: S&P Withdraws 'BB' CCR Over Infineon Deal
------------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'BB' corporate
credit rating on International Rectifier Corp. upon Infineon
Technologies AG's announcement that it had completed its
acquisition of International Rectifier Corp. As a result, S&P has
withdrawn the corporate credit rating on International Rectifier.
ISR GROUP: Confirms Liquidating Chapter 11 Plan
-----------------------------------------------
Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg
News, reported that ISR Group Inc., received court approval on Dec.
29 for a Chapter 11 plan of liquidation.
According to the report, as a result of a settlement with the
company and the Official Committee of Unsecured Creditors, Trive
Capital, whose affiliate purchased the assets of the company,
agreed to make specified contributions for distribution under the
plan, including a $100,000 settlement payment, about $375,000 to
cover priority wage claims, and funds contributed to a trust to
satisfy general unsecured creditors.
About ISR Group
ISR Group, Incorporated, filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Tenn. Case No. 14-11077) on April 29, 2014. John
Stuecheli signed the petition as chief restructuring officer. In
its schedules, the Debtor disclosed $13,339,836 in total assets
and $19,465,911 in total liabilities. Franklin Childress, Jr.,
Esq., at Baker Donelson Bearman, serves as the Debtor's counsel.
Judge Jimmy L Croom presides over the case.
ISR Group Inc., a provider of services for military and civilian
users of drones, obtained Court permission to sell the business to
an affiliate of lender Trive Capital, mostly in exchange for $18.4
million in secured debt. Following the sale, the company changed
its name to Old Drone Co. Under a global settlement among the
company, the creditors' committee and the buyer, Trive is
providing $375,000 in cash exclusively for payment to creditors
with unsecured claims. The bankruptcy judge approved the
settlement on June 17, together with an agreement among
constituents supporting a Chapter 11 plan.
IVENS PROPERTIES: Case Summary & 2 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Ivens Properties, Inc.
521 W. Lamar Alexander Parkway
Maryville, TN 37801
Case No.: 15-30094
Chapter 11 Petition Date: January 14, 2015
Court: United States Bankruptcy Court
Eastern District of Tennessee (Knoxville)
Judge: Hon. Suzanne H. Bauknight
Debtor's Counsel: Richard M. Mayer, Esq.
LAW OFFICES OF MAYER & NEWTON
1111 Northshore Drive, Suite S-570
Knoxville, TN 37919
Tel: 865-588-5111
Fax: 865-588-6143
Email: mayerandnewton@richardmayer.com
- and -
John P. Newton, Jr., Esq.
LAW OFFICES OF MAYER & NEWTON
1111 Northshore Drive, Suite S-570
Knoxville, TN 37919
Tel: 865-588-5111
Fax: 865-588-6143
Email: mayerandnewton@richardmayer.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mark Ivens, president.
A list of the Debtor's two largest unsecured creditors is available
for free at http://bankrupt.com/misc/tneb15-30094.pdf
JO CLARK: BofA Sues Co. for Failure to Repay $2MM Loan
------------------------------------------------------
Bank of America filed on Jan. 13, 2015, a lawsuit against defunct
J.O. Clark Building Group and former owner Mark Clark claiming the
builder failed to fully repay a $2 million loan from 2005 that
matured on Feb. 1, 2009, Michelle Willard at The Daily News Journal
reports.
BofA says in its court filng that it suffered damages of
$701,904.67, plus interest, fees and costs, including attorney's
fees. The Daily News relates that Ronald Steen, Esq., the attorney
for BofA, asked the federal court to award the amount still owed,
interest and any "further relief as the court deems just and
proper." Mr. Steen says in the court filing, "BOA demanded
immediate payment of the full outstanding amount of the
indebtedness . . . by letter to Mr. Clark on Dec. 8, 2014 . . . .
Neither J.O. Clark or Mr. Clark have paid any part of the amounts
demanded in the demand letter."
Murfreesboro, Tennessee-based J.O. Clark Building Group was former
luxury home builder in the Nashville area with more than 1,000
homes built since it was founded in 1994 by Mark Clark. The
Company filed for bankruptcy in May 2009, listing less than $50,00
in assets, according to The Daily News Journal. The Company, The
Daily News recalls, said it owed $10 million to $50 million to
various companies, from banks to subcontractors. Its bankruptcy
filing stated that it owed almost $1 million to various banks,
contractors and suppliers including Bank of America, Regions
Financial Corp., Renasant Bank and First Bank in Lexington,
Tennessee.
JOHNSON MEMORIAL: Connecticut Hospital Heads Back Into Chapter 11
-----------------------------------------------------------------
Sara Randazzo, writing for Daily Bankruptcy Review, reported that a
Connecticut hospital put itself under Chapter 11 protection with
plans to sell itself to a nearby healthcare system, five years
after an unsuccessful bankruptcy reorganization left it saddled
with $40 million in debt.
According to the report, Johnson Memorial Medical Center Inc. and
five affiliates filed for bankruptcy in U.S. Bankruptcy Court in
Hartford, Conn. with a sale agreement in hand to turn over its
entire operation -- including a 92-bed hospital, 180-bed skilled
nursing facility, and hospice-care services arm -- to Saint Francis
Care Inc.
JOHNSON MEMORIAL: Files for Ch. 11 to Be Part of Saint Francis Care
-------------------------------------------------------------------
Matthew Sturdevant and Brian Dowling at Courant.com report that
Johnson Memorial Medical Center filed for Chapter 11 bankruptcy
protection on Jan. 14, 2015, to clear the path for acquisition by
Saint Francis Care in Hartford.
Courant.com relates that after discussing the issue with lenders,
government agencies and "multiple advisors," Johnson Memorial's
board of directors approved the bankruptcy in a special meeting on
Dec. 30, 2014, and placed Johnson Memorial CEO Stuart E. Rosenberg
in charge of the bankruptcy process. Johnson Memorial said in a
Jan. 14, 2015 press release that the parties determined that a
pre-planned and voluntary reorganization under a Chapter 11
bankruptcy filing was collectively determined as the most efficient
and expedient process to proceed with the business transaction
under the terms negotiated, which includes a debt restructuring.
The terms of the transaction will let Johonson Memorial emerge from
this process with less debt and the deepened relationship with
Saint Francis will help achieve the goal of becoming a stronger,
more financially sound hospital, well-positioned for the future,
the press release states.
According to Courant.com, Johnson Memorial's director of business
development, Amy DuBois-Zwaan, said that the hospital is using the
bankruptcy process to bring about the sale to Saint Francis
Hospital and Medical Center parent, Saint Francis Care, "under the
terms to which have already been agreed by all parties."
Johnson Memorial said in the Jan. 14 press release that its asset
purchase agreement with Saint Francis has been approved. Under the
terms of the APA, Johnson Memorial would become a wholly-owned
subsidiary of Saint Francis.
Courant.com relates that the sale includes these affiliates: (i)
nursing care facility Evergreen Health Care Center; (ii) Home &
Community Health Services, which used to be Enfield Visiting Nurse
Association and includes hospice; and (iii) Johnson Health Care.
Johnson Memorial, in bankruptcy filings for each of its major
affiliates, outlined about $29.3 million in unsecured debt, mostly
owed to: (i) People's United Bank; (ii) Saint Francis Hospital; and
(ii) McKesson Technologies Inc.
Johnson Memorial said in court documents that financial
difficulties at Johnson Memorial continued even after the system
emerged from an earlier bankruptcy in 2010, which shaved away
millions of dollars in debt from the hospital's balance sheet.
Courant.com recalls that Johnson Memorial had net losses of $2.8
million in 2012 and $7.5 million in 2013, which the hospital said
in its court filing had "accumulated and threatened [its]
viability."
Johnson Memorial Medical Center is the parent company of Johnson
Memorial Hospital in Stafford, Connecticut.
JOHNSON MEMORIAL: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Johnson Memorial Medical Center, Inc. 15-20056
fdba Johnson Memorial Corporation, Inc.
201 Chestnut Hill Road
Stafford Springs, CT 06076
Johnson Memorial Hospital, Inc. 15-20057
201 Chestnut Hill Road
Stafford Springs, CT 06076
Home & Community Health Services, Inc. 15-20060
Johnson Health Care, Inc. 15-20061
The Johnson Evergreen Corporation 15-20062
Johnson Professional Associates, P.C. 15-20063
Nature of Business: Health Care
Chapter 11 Petition Date: January 14, 2015
Court: United States Bankruptcy Court
District of Connecticut (Hartford)
Judge: Hon. Albert S. Dabrowski
Debtors' Counsel: Eric A. Henzy, Esq.
John P. Newton, Esq.
REID AND RIEGE, P.C.
1 Financial Plaza
Hartford, CT, CT 06103
Tel: 860-278-1150
Fax: 860-240-1002
Email: ehenzy@reidandriege.com
jnewton@rrlawpc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petitions were signed by Patrick Mahon, chairperson of the
Board.
The Debtors did not include a list of their largest unsecured
creditors when they filed the petitions.
KIOR INC: Auction Cancelled, Amends Ch. 11 Plan
-----------------------------------------------
Kior, Inc., filed with the U.S. Bankruptcy Court for the District
of Delaware a first amended Chapter 11 plan of reorganization and
accompanying disclosure statement, which contemplate the
reorganization of the Debtor with it emerging from bankruptcy and
continuing to operate its business as a reorganized debtor.
General Unsecured Claims will receive ratable rights to the
Liquidating Trust Assets. A liquidating trust will be created
under the Plan. The Liquidating Trust will be irrevocably vested
with (i) the funding designated for Class 8 (Convenience Claims),
(ii) cash in the amount of $100,000, and (iii) the Vested Causes of
Action and their proceeds.
The Plan revolved around an auction of the Debtor's assets. The
Debtor, however, notified the Bankruptcy Court that it did not
receive any qualified bids, other than the qualified bid from Vinod
Khosla, which served as the stalking horse bidder, prior to the
Jan. 7 bid deadline. Accordingly, the Debtor has cancelled the
Jan. 9 auction and the Debtor will not conduct an auction. The
Debtor also notified the Court that, after discussions with the
stalking horse bidder, the Debtor will not seek assumption of the
purchase sale agreement, and, accordingly, withdrew its request for
authority to assume the PSA.
Instead, the Stalking Horse Bidder entered into a Plan Support
Commitment, pursuant to which it has unilaterally agreed to support
the Debtor's Plan. Under the plan support commitment, the stalking
horse bidder agreed to provide funding for the Chapter 11 case
provided that the final order authorizing such funding must have
been obtained by the Debtor on or before Jan. 16, 2015. A
full-text copy of the Plan Support Commitment, dated Jan. 14, 2015,
is available at:
http://bankrupt.com/misc/KIORplansupport0114.pdf
A blacklined version of the dated Jan. 14, 2015, is available
at http://bankrupt.com/misc/KIORds0114.pdf
About Kior Inc.
KiOR, Inc., and wholly owned subsidiary KiOR Columbus, LLC, are
development stage, renewable fuels companies based in Pasadena,
Texas and Columbus, Mississippi, respectively. KiOR, Inc., was
founded in 2007 as a joint venture between Khosla Ventures, LLC,
and BIOeCon B.V. KiOR Inc.'s primary business is the development
and commercialization of a ground-breaking proprietary technology
designed to generate a renewable crude oil from non-food
cellulosic biomass.
KiOR, Inc. filed a Chapter 11 petition (Bankr. D. Del. Case No.
14-12514) on Nov. 9, 2014, in Delaware. Through the chapter 11
case, the Debtor intends to reorganize its business or sell
substantially all of its assets so that it can continue its core
research and development activities. KiOR Columbus did not seek
bankruptcy protection.
The Debtor disclosed $58.3 million in assets and $261.3 million
in liabilities as of June 30, 2014.
The Debtor is represented by Mark W. Wege, Esq., Edward L. Ripley,
Esq., and Eric M. English, Esq., at King & Spalding, LLP, in
Houston, Texas; and John Henry Knight, Esq., Michael Joseph
Merchant, Esq., and Amanda R. Steele, Esq., at Richards, Layton &
Finger, P.A., in Wilmington, Delaware. The Debtor's financial
advisor is Alvarez & Marsal. Guggenheim Securities, LLC, is the
Debtor's investment banker. Epiq Bankruptcy Solutions, LLC, is the
Debtor's claims and noticing agent.
Pasadena Investments, LLC, as administrative agent for a consortium
of lenders, committed to provide up to $15 million in postpetition
financing. The DIP Agent is represented by Thomas E. Patterson,
Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los Angeles,
California, and Michael R. Nestor, Esq., at Young Conaway Stargatt
& Taylor, LLP, in Wilmington, Delaware.
KIOR INC: Mississippi Sues Executives & Investors for Fraud
-----------------------------------------------------------
Clay Chandler at The Clarion-Ledger reports that the state of
Mississippi filed on Jan. 13, 2015, with the Hinds County Circuit
Court a lawsuit against KiOR, Inc. CEO Fred Cannon, board of
directors member Gary Whitlock, venture capital firm Khosla
Ventures, firm founder Vinod Khosla and managing partner Samir Kaul
claiming that they intentionally misrepresented the capability of
technology that would use biomass to produce crude oil in order to
secure a loan from the Mississippi Development Authority.
According to The Clarion-Ledger, the state seeks compensatory and
punitive damages.
The Clarion-Ledger recalls that the Company executed in November
2010 a memorandum of understanding with the MDA that let the agency
lend the Company up to $75 million to get the facility in Columbus
operational. The Company, in return, had to spend a minimum of
$500 million on land, equipment and buildings related to the
project by the end of 2015, and create a minimum of 1,000 jobs, but
that never happened because the Company stopped operations in
Columbus in 2014, the report states. "KiOR had not reached this
stage of development when the MOU and 1oan agreement were executed.
And to this day, KiOR is still not commercially viable," William
Quinn, Esq., the attorney for the state, said in court documents.
The Clarion-Ledger relates that the state claims the Company said
in a 2011 filing with the U.S. Securities and Exchange Commission
that it was able to produce 67 gallons of crude oil with one bone
dry ton of wood. The Company could have produced gasoline and
diesel blendstocks for $1.80 per gallon, the report states.
According to the state's court filing, Company relayed those
figures to former Gov. Haley Barbour, even though Messrs. Khosla
and Kaul knew the claims were "materially false and misleading,"
and the true yields were between 30 and 40 gallons of blendstocks
per bone dry ton of wood, which did not make the technology viable
on a commercial scale. The states says in its court filing that
MDA would not have made the loan to KiOR based on those figures.
About Kior Inc.
KiOR, Inc., and wholly owned subsidiary KiOR Columbus, LLC, are
development stage, renewable fuels companies based in Pasadena,
Texas and Columbus, Mississippi, respectively. KiOR, Inc., was
founded in 2007 as a joint venture between Khosla Ventures, LLC,
and BIOeCon B.V. KiOR Inc.'s primary business is the development
and commercialization of a ground-breaking proprietary technology
designed to generate a renewable crude oil from non-food
cellulosic biomass.
KiOR, Inc., filed a Chapter 11 petition (Bankr. D. Del. Case No.
14-12514) on Nov. 9, 2014, in Delaware. Through the Chapter 11
case, the Debtor intends to reorganize its business or sell
substantially all of its assets so that it can continue its core
research and development activities. KiOR Columbus did not seek
bankruptcy protection.
The Debtor disclosed $58.3 million in assets and $261 million
in liabilities as of June 30, 2014.
The Debtor is represented by Mark W. Wege, Esq., Edward L. Ripley,
Esq., and Eric M. English, Esq., at King & Spalding, LLP, in
Houston, Texas; and John Henry Knight, Esq., Michael Joseph
Merchant, Esq., and Amanda R. Steele, Esq., at Richards, Layton &
Finger, P.A., in Wilmington, Delaware. The Debtor's financial
advisor is Alvarez & Marsal. Guggenheim Securities, LLC, is the
Debtor's investment banker. Epiq Bankruptcy Solutions, LLC, is
the Debtor's claims and noticing agent.
Pasadena Investments, LLC, as administrative agent for a
consortium of lenders, committed to provide up to $15,000,000 in
postpetition financing. The DIP Agent is represented by Thomas E.
Patterson, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los
Angeles, California, and Michael R. Nestor, Esq., at Young Conaway
Stargatt & Taylor, LLP, in Wilmington, Delaware.
KIOR INC: Objects to Conversion Bid; Lender Seeks Receiver
----------------------------------------------------------
Kior, Inc., and the companies led by its lender, Vinod Khosla,
asked the U.S. Bankruptcy Court for the District of Delaware to
deny the Mississippi Development Authority's motion to convert the
Chapter 11 case to Chapter 7, or, in the alternative, to dismiss
the case.
According to the Debtor, the sole motivation of the state of
Mississippi, through the MDA, is to destroy any going concern value
for the Debtor by terminating the employment of more than 70 people
in Houston, Texas, destroying valuable business relationships and
transactions, and forcing the abandonment of promising bio-fuel,
alternative energy technology that can deliver real hydrocarbon
transportation fuels from cellulosic feedstock.
The MDA, which said it is Kior's largest unsecured creditor, told
the Court that it wants the Chapter 11 case converted to
liquidation or dismissed entirely, saying the company has no
revenues, huge past and ongoing losses, relatively few tangible
assets, technology that doesn't work, and no viable business or
business plan, Bill Rochelle and Sherri Toub, bankruptcy columnists
for Bloomberg News, reported.
Meanwhile, the Khosla Parties have asked a judge in Lowndes County
Chancery Court to appoint a receiver for Kior's Columbus plant,
which isn't in bankruptcy, saying that a receiver is needed to
protect the interests of all creditors and that the plant can't pay
the $271,872 in property taxes due Feb. 1, the Associated Press
reported. The Khosla Parties also accused the MDA of scaring off a
potential buyer
About Kior Inc.
KiOR, Inc., and wholly owned subsidiary KiOR Columbus, LLC, are
development stage, renewable fuels companies based in Pasadena,
Texas and Columbus, Mississippi, respectively. KiOR, Inc., was
founded in 2007 as a joint venture between Khosla Ventures, LLC,
and BIOeCon B.V. KiOR Inc.'s primary business is the development
and commercialization of a ground-breaking proprietary technology
designed to generate a renewable crude oil from non-food
cellulosic biomass.
KiOR, Inc. filed a Chapter 11 petition (Bankr. D. Del. Case No.
14-12514) on Nov. 9, 2014, in Delaware. Through the chapter 11
case, the Debtor intends to reorganize its business or sell
substantially all of its assets so that it can continue its core
research and development activities. KiOR Columbus did not seek
bankruptcy protection.
The Debtor disclosed $58.3 million in assets and $261 million
in liabilities as of June 30, 2014.
The Debtor is represented by Mark W. Wege, Esq., Edward L. Ripley,
Esq., and Eric M. English, Esq., at King & Spalding, LLP, in
Houston, Texas; and John Henry Knight, Esq., Michael Joseph
Merchant, Esq., and Amanda R. Steele, Esq., at Richards, Layton &
Finger, P.A., in Wilmington, Delaware. The Debtor's financial
advisor is Alvarez & Marsal. Guggenheim Securities, LLC, is the
Debtor's investment banker. Epiq Bankruptcy Solutions, LLC, is the
Debtor's claims and noticing agent.
Pasadena Investments, LLC, as administrative agent for a consortium
of lenders, committed to provide up to $15 million in postpetition
financing. The DIP Agent is represented by Thomas E. Patterson,
Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, in Los Angeles,
California, and Michael R. Nestor, Esq., at Young Conaway
Stargatt & Taylor, LLP, in Wilmington, Delaware.
KOPPERS HOLDINGS: Moody's Rates New $400MM Sr. Unsecured Notes B1
-----------------------------------------------------------------
Moody's Investors Service affirmed Koppers Holdings, Inc.'s Ba3
Corporate Family Rating ("CFR") and revised the rating outlook to
negative from stable. Moody's assigned a B1 rating to the company's
proposed senior unsecured notes. Proceeds from the unsecured
offering will be used to redeem the existing $300 million Senior
Secured Notes due 2019, repay part of the company's unrated secured
term loan, and pay transaction-related fees and expenses.
"Unfavorable end market conditions, exacerbated by lower global oil
prices, will result in Koppers' credit metrics remaining weak for
the rating category for longer than expected," said Ben Nelson,
Moody's Assistant Vice President and lead analyst for Koppers
Holdings, Inc.
The actions:
Issuer: Koppers Holdings, Inc.
Corporate Family Rating, Affirmed Ba3;
Probability of Default Rating, Affirmed Ba3-PD;
Speculative Grade Liquidity Rating, Affirmed SGL-2;
Outlook, Changed to Negative from Stable.
Issuer: Koppers, Inc.
$400 million Senior Unsecured Notes due 2020; Assigned B1 (LGD5);
Outlook, Changed to Negative From Stable.
Following the completion of the transaction, Moody's expects to
withdraw the ratings on the company's existing unsecured notes.
Ratings Rationale
The Ba3 Corporate Family Rating is principally constrained by
industry-related risks that will make it difficult for the company
to return credit metrics to appropriate levels following the
debt-funded acquisition of certain businesses from Osmose in
mid-2014. The rating is also constrained by exposure to cyclical
end markets, volatile feedstocks, weakening competitive position in
several key products (competitors use an alternative feedstock),
legal and environmental risks, and high customer concentration. The
rating considers favorably solid operational and geographic
diversity, strong market shares in certain businesses, , stability
in demand over the cycle, a dearth of available substitutes for
some key products, and good liquidity.
Moody's expects continued weak operating performance in the
near-term with modest strengthening in Railroad & Utility Products
and Performance Chemicals more than offset by further weakening in
Carbon Materials & Chemicals. Carbon pitch and phthalic anhydride,
in particular, have been weak in recent quarters. Ongoing weakness
in the aluminum industry combined with heightened competitive
activity will make it difficult to achieve a supply/demand balance
supportive of higher pitch pricing in the near-term. The trend
toward greater use of non-phthalate plasticizers will also work
against otherwise improving fundamentals in construction-related
end markets -- important drivers for demand for phthalic anhydride.
More recently, the reduction in global oil prices will exert
additional pressure on phthalic anhydride, napthalene, and carbon
black feedstock because the pricing of these commodities tracks
with oil whereas Koppers' primary raw material, coal tar, is a
byproduct of coke produced for the steel industry. Credit metrics
will therefore remain weak for the rating for at least the next few
quarters. Moody's measures financial leverage in the low 5 times
(Debt/EBITDA) and interest coverage mid 3 times (EBITDA/Interest)
on a pro forma basis for the twelve months ended September 30,
2014.
The negative outlook reflects expectations for financial leverage
to remain above 4 times at least through the end of 2015. Moody's
could downgrade the rating if, over the next few quarters, the
company does not demonstrate clear progress towards getting back on
track to reduce leverage to below 4 times and raise retained cash
flow-to-debt in the low-to-mid teens. An upgrade is unlikely at the
current time given the company's weak metrics. But, Moody's could
upgrade the rating if the company's leverage is sustained below 3
times, generates free cash flow consistently in excess of 10% of
debt, and maintains solid liquidity to cover unforeseen expenses.
The principal methodology used in these ratings was Global Chemical
Industry Rating Methodology published in December 2013. Other
methodologies used include Loss Given Default for Speculative-Grade
Non-Financial Companies in the U.S., Canada and EMEA published in
June 2009.
Koppers Holdings, Inc. produces carbon compounds and treated wood
products used in the aluminum, chemical, railroad, and steel
industries. Headquartered in Pittsburgh, Pa., the company generated
$1.4 billion in revenue for the twelve months ended September 30,
2014, or about $1.8 billion on a pro forma basis considering the
acquisition of certain businesses from Osmose Holdings, Inc. in
August 2014.
KOPPERS INC: S&P Lowers CCR to 'B+' & Rates $400MM Sr. Notes 'B+'
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Standard & Poor's Ratings Services said it lowered its corporate
credit rating on Pittsburgh-based Koppers Inc. to 'B+' from 'BB-'.
The outlook is stable.
S&P also assigned its 'B+' issue-level rating to the company's
proposed $400 million senior unsecured notes maturing in 2020. The
recovery rating on the notes is '3', indicating S&P's expectations
for meaningful (50% to 70%) recovery in the event of a payment
default. In addition, S&P revised the recovery rating on the
company's existing $500 million senior secured revolving credit
facility and $300 million term loan A to '1' from '2'. The
issue-level ratings remain 'BB'. The '1' recovery rating indicated
S&P's expectations for very high (90% to 100%) recovery in the
event of a payment default.
S&P expects the company to use proceeds from the new senior
unsecured notes to repay the existing $300 million in senior notes,
partially repay the senior secured term loan A, pay breakage costs,
and fund transaction fees and expenses. S&P expects to withdraw
the ratings on the $300 million senior notes after they have been
repaid.
"We believe that the relatively steady earnings generated by the
Performance Chemicals and Railroad and Utility Products segments
will impart a degree of stability on the company's operating
results," said Standard & Poor's credit analyst Daniel Krauss.
S&P's base case projects that growth in these two segments should
help offset an anticipated drop in the more volatile Carbon
Materials & Chemicals (CM&C) segment. S&P anticipates that over
the next year the company will focus on using free cash flow
generation to reduce debt and maintain adequate liquidity, rather
than pursuing large acquisitions. At the current rating, S&P would
expect the company to maintain credit measures at the lower end of
the aggressive financial risk profile, including funds from
operations (FFO) to debt of between 12% and 15% (pro forma for
acquisitions).
S&P could lower the ratings if the CM&C segment witnesses a
larger-than-expected decline in 2015 EBITDA, partially due to
continually depressed oil prices. S&P could also consider a
downgrade if free cash flow turns negative for an extended period
zf time and the company is unable to maintain adequate liquidity
and sufficient headroom under its senior secured leverage covenant.
Based on S&P's scenario forecasts, it could consider a downgrade
if EBITDA margins decline by 100 basis points or more beyond
expected pro forma 2014 levels, combined with a moderate drop in
revenues. In such a scenario, S&P would expect FFO to debt to drop
below 12% (pro forma for acquisitions).
Although S&P considers it unlikely at this time, it could raise the
ratings if it gains comfort that the company will be able to
gradually improve EBITDA margins from levels that are somewhat
depressed currently. S&P could also consider a modest upgrade if
Koppers is able to generate significantly stronger free cash flow
than we project and moderately deleverages the balance sheet.
Specifically, S&P could consider a one notch upgrade if it
anticipates that the company will be able to maintain FFO to debt
in the higher end of the "aggressive" band, consistently at above
15%(pro forma for acquisitions). S&P would also need to gain
greater clarity behind the company's growth initiatives, before
considering an upgrade.
LEHMAN BROTHERS: To Sell Another $2.5 Billion of Unsecured Claims
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Chelsey Dulaney, writing for Daily Bankruptcy Review, reported that
Lehman Brothers Holdings Inc. said that it has agreed to sell
another $2.5 billion in bankruptcy claims that the failed
investment bank holds against its U.S. brokerage arm. According to
the report, Lehman has been selling off the unsecured creditor
claims in recent months as it continues to wind down its holdings,
a process that is expected to continue for several more years.
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.
LEVEL 3 FINANCING: Fitch Rates $500MM Sr. Unsecured Notes 'BB'
--------------------------------------------------------------
Fitch Ratings has assigned a 'BB/RR2' issue rating to Level 3
Financing, Inc.'s (Level 3 Financing) proposed issuance of $500
million senior unsecured notes due 2023. Level 3 Financing is a
wholly owned subsidiary of Level 3 Communications, Inc. (LVLT). The
Issuer Default Rating (IDR) for both LVLT and Level 3 Financing is
'B+' with a Positive Rating Outlook. LVLT had approximately $9.4
billion of consolidated debt outstanding on Sept. 30, 2014.
Proceeds from the senior note offering along with cash on hand are
expected to be used to redeem the entire principal amount
outstanding under Level 3 Financing's 9.375% senior notes due 2019.
The notes had approximately $500 million of principal outstanding
as of Sept. 30, 2014. The new notes will rank pari passu with
Level 3 Financing's existing senior unsecured indebtedness.
Outside of the extension of the company's maturity profile and an
expected reduction of interest expense related to this transaction,
LVLT's credit profile has not substantially changed. Pro forma for
the TW Telecom, Inc. (TWTC) acquisition including the redemption of
approximately $1.8 billion of TWTC outstanding consolidated debt
and the incurrence by Level 3 Financing of its $2 billion Tranche B
2022 Term, Fitch estimates LVLT had approximately $11.5 billion of
debt outstanding as of Sept. 30, 2014.
KEY RATING DRIVERS
-- The TW Telecom, Inc. (TWTC) acquisition increases LVLT's
scale and focus on high-margin enterprise account revenues
while increasing the company's overall competitive position
and ability to capture incremental market share;
-- The acquisition is clearly in line with LVLT's strategy to
shift its revenue and customer focus to become a
predominantly enterprise-focused entity.
-- LVLT remains committed to operate within its 3x to 5x net
leverage target. The enhanced scale and ability to generate
meaningful free cash flow (FCF) resulting from the
transaction reinforces Fitch's expectation for further
strengthening of LVLT's credit profile.
-- The company is poised to generate sustainable levels of FCF;
defined as cash flow from operations less capital
expenditures and dividends). Fitch anticipates LVLT FCF
generation during 2014 will range between 4% and 4.5% of
consolidated revenues on a stand-alone basis, growing to
early 10% of revenues by year-end 2016 on a pro forma basis.
-- The operating leverage inherent to LVLT's business model
positions the company to expand both gross and EBITDA
margins.
LVLT leverage strengthened to 4.5x as of the LTM ended Sept. 30,
2014 on a stand-alone basis (excluding the effect of acquisition
financing) and 5.1x on an actual basis. Fitch continues to expect
LVLT's credit profile will strengthen as the company benefits from
anticipated EBITDA growth, FCF generation and cost synergies
related to the TWTC acquisition. Consolidated leverage on a pro
forma basis is 5x before consideration of any operating cost
synergies and declines to 4.7x after factoring in $200 million of
anticipated operating cost synergies.
The TWTC acquisition improves LVLT's ability to generate consistent
levels of FCF. Fitch anticipates LVLT FCF generation during 2014
will range between 4% and 4.5% of consolidated revenues on a
stand-alone basis before growing to nearly 10% by year-end 2016 on
a pro forma basis. The company has generated approximately $354
million of FCF through the LTM ended Sept. 30, 2014. Fitch
believes the company's ability to grow high-margin core network
services (CNS) revenues coupled with the strong operating leverage
inherent in its operating profile position the company to generate
consistent levels of FCF.
The TWTC acquisition is in line with LVLT's strategy to shift its
revenue and customer focus to become a predominately
enterprise-focused entity. TWTC's strong metropolitan network
supports LVLT's overall strategy. Pro forma for the transaction,
LVLT's revenue from enterprise customers increases to 70% of total
CNS revenue from 66%. From a regional perspective North America
CNS revenue would increase to 78% of total CNS revenue, up from
approximately 71%.
LVLT's network capabilities, in particular its strong metropolitan
network, along with a broad product and service portfolio
emphasizing IP-based infrastructure and managed services provide
the company a solid base to grow its enterprise segment revenues.
Fitch believes revenue growth prospects within LVLT's CNS segment
stand to benefit from the transition among enterprise customers
from legacy time division multiplexing (TDM) communications
infrastructure to Ethernet or IP VPN infrastructure based on
Internet protocol.
Fitch believes that LVLT's liquidity position is adequate given the
rating, and that overall financial flexibility is enhanced with
positive FCF generation. The company's liquidity position is
primarily supported by cash carried on its balance sheet which as
of Sept. 30, 2014 totaled approximately $729 million, and expected
FCF generation. LVLT does not maintain a revolver, which limits
its financial flexibility in Fitch's opinion. LVLT's maturity
profile is manageable within the context of FCF generation
expectations and access to capital markets. Scheduled maturities
include $475 million in 2015 that is scheduled to mature or convert
into equity. The next scheduled maturity is not until 2018 when
approximately $300 million of debt is scheduled to mature.
RATING SENSITIVITIES
What Could Lead to a Positive Rating Action:
-- Consolidated leverage maintained at 4x or lower;
-- Consistent generation of positive FCF, with FCF-to-adjusted
debt of 5% or greater;
-- Positive operating momentum characterized by consistent core
network service revenue growth and gross margin expansion.
What Could Lead to a Negative Rating Action:
-- Weakening of LVLT's operating profile, as signaled by
deteriorating margins and revenue erosion brought on by
difficult economic conditions or competitive pressure;
-- Discretionary management decisions including but not limited
to execution of merger and acquisition activity that
increases leverage beyond 5.5x in the absence of a credible
de-leveraging plan.
LEVEL 3 FINANCING: Moody's Rates New $500MM Sr. Unsecured Notes B3
------------------------------------------------------------------
Moody's Investors Service rated Level 3 Financing, Inc.'s
(Financing) new $500 million senior unsecured notes B3. Financing
is a wholly-owned subsidiary of Level 3 Communications, Inc. (Level
3), the guarantor of the notes. Level 3's corporate family and
probability of default ratings remain unchanged at B2 and B2-PD,
respectively, and its speculative grade liquidity rating remains
unchanged at SGL-2 (good liquidity). In addition, the ratings
outlook remains stable.
Proceeds from the new issue, with cash on hand, will be used to
repay a similar amount of the company's senior unsecured 9.375%
notes that mature April 2019. As sources and uses are approximately
equal and the new issue is the same class of debt as that being
fully repaid (i.e. senior unsecured in the name of Financing, Inc.,
guaranteed by Level 3), the new notes are rated at the same level
as the debt they replace and there is no ratings impact.
The following summarizes the rating action as well as Level 3's
ratings:
Issuer: Level 3 Financing, Inc.
Senior Unsecured Bond/Debenture, assigned B3 (LGD5)
Ratings Rationale
Level 3's B2 CFR is based on the company's ability to generate
relatively modest free cash flow of between $250 million and $300
million in 2016 and, inclusive of debt which is presumed to be
converted to equity in 2015, to de-lever by approximately 0.5x to
4.8x (Moody's adjusted) by the end of 2016. With enhanced scale and
capabilities resulting from the TWT acquisition and from 2011's
acquisition of Global Crossing Limited, Level 3 has a sound
business proposition as a facilities-based provider of optical,
Internet protocol telecommunications services for business
enterprises. However, with no disclosed quantity or price metrics,
visibility of current and future activity is very limited, a credit
negative. In addition, in lieu of arranging a revolving bank credit
facility, the company's liquidity depends on maintaining
substantial cash balances, a matter which also constrains the
rating.
Rating Outlook
The rating outlook is stable, reflecting expectations of a stable
business platform and Moody's adjusted leverage of debt to EBITDA
improving to 4.8x from an estimated 5.3x at closing of the TWT
transaction.
What Could Change the Rating - Up
Presuming solid industry fundamentals and tangible progress
integrating TWT including strong sales growth and churn
performance, solid liquidity, leverage of debt to EBITDA
approaching 4.5x with free cash flow to debt approaching 5%,
positive ratings pressure may develop.
What Could Change the Rating - Down
Should industry fundamentals or liquidity deteriorate, or should
free cash flow be constrained, likely as a result of elevated churn
and TWT integration set-backs and with leverage of debt to EBITDA
remain near 5.5x, negative ratings pressure may develop.
The principal methodology used in this rating was Global
Telecommunications Industry published in December 2010. Other
methodologies used include Loss Given Default for Speculative-Grade
Non-Financial Companies in the U.S., Canada and EMEA published in
June 2009.
LEVEL 3 FINANCING: S&P Assigns 'B' Rating on New $500MM Sr. Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' issue-level
rating and '6' recovery rating to Broomfield, Colo.-based global
telecommunications provider Level 3 Communications Inc.'s proposed
$500 million senior unsecured notes due 2023. The '6' recovery
rating reflects S&P's expectation for negligible (0%-10%) recovery
in the event of a payment default. The notes will be issued by
wholly-owned subsidiary Level 3 Financing Inc. Proceeds from the
notes, along with cash on hand, will be used to redeem the
zompany's $500 million 9.375% senior notes due 2019.
The proposed transaction will not have an impact on key credit
measures, including adjusted leveraged, which S&P expects will be
in the low- to mid-4x area in 2015. However, the transaction
should improve free operating cash flow generation by about $20
million because of lower interest expense.
On Nov. 5, 2014, S&P raised its ratings on Level 3 to 'BB-' from
'B+' following its acquisition of TW Telecom Inc. The acquisition
extends Level 3's reach into metropolitan markets and should enable
it to carry more traffic on-network. The acquisition will also
boost the portion of Level 3 revenues that come from enterprise
network services, which S&P views as its most competitively
defensible and stable segment.
RATINGS LIST
Level 3 Communications Inc.
Corporate Credit Rating BB-/Stable/--
New Rating
Level 3 Financing Inc.
$500 mil. notes due 2023
Senior Unsecured B
Recovery Rating 6
LEXARIA CORP: MNP LLP Expresses Going Concern Doubt
---------------------------------------------------
Lexaria Corp. filed with the U.S. Securities and Exchange
Commission on Dec. 9, 2014, its annual report on Form 10-K for the
fiscal year ended Aug. 31, 2014.
MNP LLP expressed substantial doubt about the Company's ability to
continue as a going concern, citing that the Company had recurring
losses and requires additional funds to maintain its planned
operations.
Lexaria filed with the U.S. Securities and Exchange Commission its
annual report on Form 10-K, disclosing net loss of $3.26 million on
$nil of total revenue for the ten months ended Aug. 31, 2014,
compared with a net loss of $302,000 on $nil of total revenue for
the same period in the prior year.
The Company's balance sheet at Aug. 31, 2014, showed $2.64 million
in total assets, $918,000 in total liabilities and total
stockholders' equity of $1.72 million.
A copy of the Form 10-K is available at:
http://is.gd/ACWfyC
Lexaria Corp. was formed on Dec. 9, 2004, under the laws of the
State of Nevada and commenced operations on Dec. 9, 2004. The
Company is an independent natural gas and oil company engaged in
the exploration, development and acquisition of oil and gas
properties in the United States and Canada. The Company's entry
into the oil and gas business began on Feb. 3, 2005. The Company
has offices in Vancouver and Kelowna, BC, Canada. Lexaria's
shares are quoted in the USA under the symbol LXRP and in Canada
under the symbol LXX.
LOCATION BASED TECH: Incurs $1-Mil. Net Loss in Nov. 30 Quarter
---------------------------------------------------------------
Location Based Technologies, Inc., filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q
disclosing a net loss of $1.11 million on $526,000 of total net
revenue for the three months ended Nov. 30, 2014, compared to a net
loss of $1.04 million on $408,800 of total net revenue for the same
period in 2013.
As of Nov. 30, 2014, Location Based had $2.73 million in total
assets, $13.5 million in total liabilities and a $10.8 million
total stockholders' deficit.
The Company has incurred net losses since inception, and as of Nov.
30, 2014, had an accumulated deficit of $62.3 million and negative
working capital of $7.46 million. These conditions, the Company
said, raise substantial doubt as to its ability to continue as a
going concern.
Location Based had cash and cash equivalents of $632,028 as of Nov.
30, 2014, compared to $146,200 as of Aug. 31, 2014.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/hPPh54
About Location Based Technologies
Irvine, Calif.-based Location Based Technologies, Inc., designs,
develops, and sells leading-edge personal locator devices and
services.
Location Based reported a net loss of $5.14 million for the year
ended Aug. 31, 2014, compared to a net loss of $11.04 million for
the year ended Aug. 31, 2013.
Friedman LLP, in East Hanover, New Jersey, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Aug. 31, 2014, citing that the Company's
operating losses raise substantial doubt about its ability to
continue as a going concern.
Bankruptcy Warning
"[W]e remain obligated under a significant amount of notes
payable, and Silicon Valley Bank has been granted security
interests in our assets. If we are unable to pay these or other
obligations, the creditors could take action to enforce their
rights, including foreclosing on their security interests, and we
could be forced into liquidation and dissolution. We are also
delinquent on a number of our accounts payable. Our creditors may
be able to force us into involuntary bankruptcy," the Company
warned in the Fiscal 2014 Annual Report.
LONGVIEW POWER: Title Policy Trial Set to Begin Next Week
---------------------------------------------------------
Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg
News, reported that the trial on whether an $825 million policy
issued by First American Title Insurance Co. is property of
Longview Power LLC's bankrupt estate and whether this policy can be
used to pay claims of contractors will begin next week.
According to the report, the trial before U.S. Bankruptcy Judge
Brendan L. Shannon in Delaware will determine whether the title
policy is estate property that can be used to pay claims of
contractors, if their mechanics' liens are determined to come ahead
of secured debt.
About Longview Power
Longview Power LLC is a special purpose entity created to
construct, own, and operate a 695 MW supercritical pulverized
coal-fired power plant located in Maidsville, West Virginia, just
south of the Pennsylvania border and approximately 70 miles south
of Pittsburgh. The project is owned 92% by First Reserve
Corporation (First Reserve or sponsor), a private equity firm
specializing in energy industry investments, through its affiliate
GenPower Holdings (Delaware), L.P., and 8% by minority interests.
Longview Power, LLC, filed a Chapter 11 (Bank. D. Del. Lead Case
13-12211) on Aug. 30, 2013. The petitions were signed by Jeffery
L. Keffer, the Company's chief executive officer, president,
treasurer and secretary. The Debtor estimated assets and debts of
more than $1 billion. Judge Brendan Linehan Shannon presides over
the case. Kirkland & Ellis LLP and Richards, Layton & Finger,
P.A., serve as the Debtors' counsel. Lazard Freres & Company LLC
acts as the Debtors' investment bankers. Alvarez & Marsal North
America, LLC, is the Debtors' restructuring advisors. Ernst &
Young serves as the Debtors' accountants. The Debtors' claims
agent is Donlin, Recano & Co. Inc.
The Debtor disclosed assets of $1.72 billion plus undisclosed
amounts and liabilities of $1.08 billion plus undisclosed
amounts.
A committee of unsecured creditors has not been appointed in the
case due to insufficient response to the U.S. Trustee's
communication/contact for service on the committee.
MARION ENERGY: Reaches Agreement on Key Issues with Secured Lender
------------------------------------------------------------------
Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg
News, reported that Marion Energy Inc., an oil and gas exploration
and production company with operations in the Clear Creek Field in
Utah, agreed with secured lender Castlelake LP on bankruptcy
financing and a process to sell primary assets.
According to the report, under the agreement, TCS II Funding
Solutions LLC will provide Marion with bankruptcy financing in
exchange for Marion's hiring of professionals to oversee use of the
financing, management of the lender's collateral pending sale or
refinancing, and the sale itself.
An adviser will evaluate preliminary bids received by Feb. 25 for
Clear Creek and related assets, so that by March 2, the adviser is
to report on whether there's likely to be a credible all-cash bid
in excess of $40 million capable of being completed by June 1, the
report related. If a sale is viable, bidders will submit signed
contracts by April 30; the winning and back-up bidders will be
chosen by May 4; and the parties will seek a sale hearing on or
before May 27, the report added.
Marion can also pursue a refinancing of the Castlelake debt, the
report said.
About Marion Energy
Marion Energy Inc. is a Texas corporation engaged in exploration
and production of natural gas in the State of Utah. Marion's core
operation is a producing gas field located in Carbon and Emery
Counties, Utah (the "Clear Creek Field"). The company also holds
smaller, currently unproductive acreage positions in the Helper
and Roan Cliffs area near Helper, Utah (the "Helper Field").
Its parent is Australia-based Marion Energy Limited (ASX:MAE).
Marion Energy Limited -- http://www.marionenergy.com.au/--is
principally engaged in investment in oil and gas projects and the
identification and assessment of new opportunities in the oil and
gas industry in Texas, Utah and Oklahoma in the United States of
America.
Marion Energy Inc. sought Chapter 11 bankruptcy protection (Bankr.
D. Utah Case No. 14-31632) in Salt Lake City, Utah on Oct. 31,
2014. The Debtor estimated assets and debt of $100 million to
$500 million. The Debtor has tapped Parsons Behle & Latimer as
attorneys.
MEDICURE INC: Issues 205,867 Shares Under Shares for Debt Pact
--------------------------------------------------------------
Medicure Inc. has issued 205,867 of its common shares at a deemed
price of $1.98 per common share extinguishing $407,600 of amounts
owing to its chief executive officer, Dr. Albert Friesen and
certain members of the Board of Directors under shares for debt
agreements originally entered into and announced on July 11, 2014.
These shares will be subject to resale restrictions for a period of
four months from the date of issuance under applicable securities
legislation, according to a regulatory filing with the U.S.
Securities and Exchange Commission.
About Medicure Inc.
Based in Winnipeg, Manitoba, Canada, Medicure Inc. (TSX/NEX:
MPH.H) -- http://www.medicure.com/-- is a biopharmaceutical
company engaged in the research, development and commercialization
of human therapeutics. The Company has rights to the commercial
product, AGGRASTAT(R) Injection (tirofiban hydrochloride) in the
United States and its territories (Puerto Rico, U.S. Virgin
Islands, and Guam). AGGRASTAT(R), a glycoprotein GP IIb/IIIa
receptor antagonist, is used for the treatment of acute coronary
syndrome (ACS) including unstable angina, which is characterized
by chest pain when one is at rest, and non-Q-wave myocardial
infarction.
Medicure Inc. reported a net loss of C$1.63 million for the year
ended May 31, 2014, compared to a net loss of C$2.57 million for
the year ended May 31, 2013.
As of Aug. 31, 2014, the Company had C$5.60 million in total
assets, C$9.92 million in total liabilities and a C$4.32 million
total deficiency.
Ernst & Young LLP, issued a "going concern" qualification on the
consolidated financial statements for the year ended May 31, 2014.
The independent auditors noted that Medicure Inc. has experienced
losses and has accumulated a deficit of $127.5 million since
incorporation and has a working capital deficiency of $869,000 as
at May 31, 2014. These conditions, the auditors said, raise
substantial doubt about its ability to continue as a going concern.
MGM RESORTS: Inks Employment Agreement with Chief Design Officer
----------------------------------------------------------------
MGM Resorts International and Robert H. Baldwin entered into an
employment agreement pursuant to which Mr. Baldwin will serve as
chief design and construction officer of the Company, commencing
Dec. 13, 2014, and ending Dec. 12, 2018.
According to a regulatory filing with the U.S. Securities and
Exchange Commission, the Employment Agreement provides a minimum
annual base salary of $1,650,000. Per the Employment Agreement,
Mr. Baldwin's annual target bonus, as determined under the
Company's Second Amended and Restated Annual Performance-Based
Incentive Plan for Executive Officers, or any successor plan, will
be up to 150% of his base salary effective as of the 2015 plan
year. The Employment Agreement also provides Mr. Baldwin with
certain other benefits and perquisites.
In the event of a termination of Mr. Baldwin's employment as the
result of his death or a termination by the Company due to
disability, the Company will pay Mr. Baldwin six months' salary
payable at regular payroll intervals (less any payments received
from an employer-paid short term disability policy).
The Employment Agreement also contains a non-compete covenant
generally prohibiting Mr. Baldwin from providing services to a
competitor or soliciting employees or business contacts for 12
months following his termination of employment or for 12 months
following the term of the Employment Agreement. In addition, the
Employment Agreement mandates that Mr. Baldwin's confidentiality
obligations continue even after his termination of employment.
On Jan. 12, 2015, the Company and Mr. Baldwin also entered into a
Memorandum Agreement re: Changes to Severance and Change of Control
Policies, subject to approval by the Compensation Committee of the
Board of Directors of the Company. The COC Agreement provides that
Mr. Baldwin will be eligible for benefits under the Company's
Change of Control Policy for Executive Officers and the material
terms of the COC Agreement are consistent with the form agreement
previously filed by the Company with the SEC.
About MGM Resorts
MGM Resorts International (NYSE: MGM) a global hospitality
company, operating a portfolio of destination resort brands
including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The
Company also owns 51% of MGM China Holdings Limited, which owns
the MGM Macau resort and casino and is in the process of
developing a gaming resort in Cotai, and 50% of CityCenter in Las
Vegas, which features ARIA resort and casino. For more
information about MGM Resorts International, visit the Company's
Web site at www.mgmresorts.com.
MGM Resorts reported a net loss attributable to the Company of
$156.60 million in 2013 following a net loss attributable to the
Company of $1.76 billion in 2012.
Bankruptcy Warning
The Company stated in its 2013 Annual Report, "The agreements
governing our senior secured credit facility and other senior
indebtedness contain restrictions and limitations that could
significantly affect our ability to operate our business, as well
as significantly affect our liquidity, and therefore could
adversely affect our results of operations. Covenants governing
our senior secured credit facility and certain of our debt
securities restrict, among other things, our ability to:
* pay dividends or distributions, repurchase or issue equity,
prepay certain debt or make certain investments;
* incur additional debt;
* incur liens on assets;
* sell assets or consolidate with another company or sell all
or substantially all assets;
* enter into transactions with affiliates;
* allow certain subsidiaries to transfer assets; and
* enter into sale and lease-back transactions.
Our ability to comply with these provisions may be affected by
events beyond our control. The breach of any such covenants or
obligations not otherwise waived or cured could result in a
default under the applicable debt obligations and could trigger
acceleration of those obligations, which in turn could trigger
cross defaults under other agreements governing our long-term
indebtedness. Any default under our senior secured credit
facility or the indentures governing our other debt could
adversely affect our growth, our financial condition, our results
of operations and our ability to make payments on our debt, and
could force us to seek protection under the bankruptcy laws."
* * *
As reported by the TCR on Nov. 14, 2011, Standard & Poor's Ratings
Services raised its corporate credit rating on MGM Resorts
International to 'B-' from 'CCC+'. In March 2012, S&P revised
the outlook to positive from stable.
"The revision of our rating outlook to positive reflects strong
performance in 2011 and our expectation that MGM will continue to
benefit from the improving performance trends on the Las Vegas
Strip," S&P said.
In March 2012, Moody's Investors Service affirmed its B2 corporate
family rating and probability of default rating. The affirmation
of MGM's B2 Corporate Family Rating reflects Moody's view that
positive lodging trends in Las Vegas will continue through 2012
which will help improve MGM's leverage and coverage metrics,
albeit modestly. Additionally, the company's declaration of a $400
million dividend ($204 million to MGM) from its 51% owned Macau
joint venture due to be paid shortly will also improve the
company's liquidity profile. The ratings also consider MGM's
recent bank amendment that resulted in about 50% of its
$3.5 billion senior credit facility being extended one year from
2014 to 2015.
As reported by the TCR on Sept. 29, 2014, Fitch Ratings has
upgraded MGM Resorts International's (MGM) and MGM China Holdings
Ltd's (MGM China) IDRs to 'B+' from 'B' and 'BB' from 'BB-',
respectively. Fitch's upgrade of MGM's IDR to 'B+' and the
Positive Outlook reflect the company's strong performance on the
Las Vegas Strip and in Macau as well as Fitch's longer-term
positive outlooks for these markets.
MINERAL PARK: Court Approves Robert J. Keach as Fee Examiner
------------------------------------------------------------
The U.S. Bankruptcy Court authorized Mineral Park, Inc., et al., to
appoint
Robert J. Keach
Berstein Shur
100 Middle Street
P.O. Box 9729
Portland, ME 04104-5029
Fax: (207) 774-1127
E-mail: rkeach@bernsteinshur.com
as fee examiner to assist the Court in determining whether the
applications are compliant with the Bankruptcy Code.
The Court ordered that Mr. Keach will not evaluate or review any
compensation requests made pursuant to Section 503(b)(3) or (4).
About Mineral Park
Mineral Park, Inc., Bluefish Energy Corp. and two affiliates
commenced proceedings under Chapter 11 of the Bankruptcy Code in
Delaware on Aug. 25, 2014. The cases are pending before the
Honorable Kevin J. Carey and are jointly administered under Case
No. 14-11996.
Mineral Park and its affiliated debtors are subsidiaries of
Mercator Minerals Ltd. ("MML"), a mineral resource company engaged
through various subsidiaries in the mining, exploration,
development and operation of its mineral properties in Mohave
County, Arizona, and Sonora, Mexico.
Mineral Park's principal asset is the Mineral Park Mine, a
producing copper-molybdenum mine located near Kingman, Arizona.
Bluefish is the owner and operator of the industrial gas turbine
power generator at the Mine.
British Columbia, Canada-based MML, which has shares trading on
the Toronto Stock Exchange under the trading symbol "ML", is not
included in the bankruptcy filing.
The Debtors have tapped Pachulski Stang Ziehl & Jones LLP as
counsel, Evercore Group LLC as investment banker, FTI Consulting,
Inc., as financial advisor, FTI's David J. Beckman as CRO, and
FTI's Paul Hansen as assistant CRO. Prime Clerk LLC is the claims
and noticing agent.
The U.S. Trustee for Region 3 appointed three creditors of Mineral
Park, Inc. and its affiliates to serve on the official committee
of unsecured creditors. The Committee selected Stinson Leonard
Street LLP and Hiller & Arban LLC as its counsel.
Mineral Park reported $286 million in total assets and $266 million
in liabilities.
MOHNS INC: Wisconsin Judge Rules on Ch.7 Trustee Compensation
-------------------------------------------------------------
District Judge Lynn Adelman in Wisconsin tackled Chapter 7 trustee
compensation in her decision in the appellate case, MOHNS, INC.,
Appellant, v. BRUCE A. LANSER, Trustee, Appellee, Case No.
14-C-1280 (E.D. Wis.).
The bankruptcy appeal presents the question of how to interpret
certain provisions of the Bankruptcy Code governing the
compensation of Chapter 7 trustees, which is a question that many
courts have struggled with since the enactment of the Bankruptcy
Abuse Prevention and Consumer Protection Act of 2005, Judge Adelman
wrote in her January 12 Decision and Order available at
http://is.gd/YgdKOffrom Leagle.com.
Judge Adelman said she agrees with the courts that have concluded
that a Chapter 7 trustee is presumed to be entitled to a commission
calculated under the formula in 11 U.S.C. Sec. 326, and rejected
Mohns's invitation to apply the approach of the bankruptcy court in
the case, In re Phillips, 392 B.R. 378 (Bankr. N.D. Ill. 2008),
which requires the court to grade the trustee's performance and
adjust the commission in every case.
Mohns Inc. is represented by:
Eugene Bykhovsky, Esq.
John E Machulak, Esq.
MACHULAK ROBERTSON & SODOS
1733 North Farwell Avenue
Milwaukee, WI 53202
Tel: (414) 271-0760
Fax: (414) 271-6363
Bruce Lanser is represented by:
Bruce A Lanser, Esq.
LANSER LAW OFFICE
N14 W24200 Tower Place, Suite 201
Waukesha, WI 53188
Tel: (262) 522-2280
MP-TECH AMERICA: Wins Dismissal of Bankruptcy Case
--------------------------------------------------
MP-Tech America, LLC, obtained from the Bankruptcy Court an order
dismissing its Chapter 11 case and closing its proceedings
effective June 30, 2015.
As reported in the Oct. 22, 2014 edition of the Troubled Company
Reporter, the Debtor proposed to pay from available proceeds (i) a
portion of 70% of the unpaid administrative expenses of its counsel
in pursuing avoidance actions from May 15, 2013, through September
30, 2014 and the Unsecured Creditors Committee counsel and 100% of
their unpaid out-of-pocket expenses; (ii) 100% of their unpaid
balance of accrued fees from the beginning of the case until the
filing of the application; and (iii) retain the remaining funds as
the Debtor's counsel endeavors to collect the outstanding and
pending default judgments.
The Debtor also proposed a six-month period to collect existing
default judgments during which period the Court will retain
jurisdiction solely for the purpose of implementing the dismissal
order or resolving any issues with regard to collection of the
default judgments.
The Debtor proposes to make on March 31, 2015, a final distribution
of all remaining funds to pay outstanding administrative fees, and
out-of-pocket expenses and unsecured claims if funds are available
after all efforts have been exhausted seeking to collect the
default judgments.
About MP-Tech America
Cusseta, Alabama-based MP-Tech America, LLC, is the maker of parts
for Kia Motors Corp. and Hyundai Motor Co. at their plants in
Georgia and Alabama. It filed a Chapter 11 petition (Bankr. M.D.
Ala. Case No. 11-30895) on April 8, 2011. The Debtor estimated
assets and debts of $10 million to $50 million as of the Chapter
11 filing. The Debtor has a $15 million secured debt to Korea
Development Bank.
The Debtor is represented by Michael A. Fritz, Sr., Esq., at Fritz
Hughes & Hill, LLC, in Montgomery, Alabama, and Joseph J. Burton,
Jr., Esq., at Burton & Armstrong, LLP, in Atlanta, Georgia.
EXIM Bank, Venture Express, Woori Bank, Sunkyoung, ICS & M, Inc.,
and Midsouth Employee Services Corp. were appointed members to the
Official Committee of Unsecured Creditors. The Committee is
represented by Clark R. Hammond, Esq., and Lindan J. Hill, Esq.,
at Johnston Barton Proctor & Rose LLP, in Birmingham, Alabama.
NEW LOUISIANA HOLDINGS: Proposes March 16 Claims Bar Date
---------------------------------------------------------
New Louisiana Holdings LLC, et al., ask the Bankruptcy Court to
enter an order fixing March 16, 2015, as the bar date for filing
non-governmental proofs of claim and interests.
The Debtors' respective cases were filed between June 25, 2014 and
Oct. 17, 2014. Establishing March 16, 2015 as the general bar date
will give creditors and parties-in-interest a minimum of five
months, and substantially longer in many instances, within which to
assert a proof of claim against the Debtors.
About New Louisiana Holdings
New Louisiana Holdings LLC, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. W.D. La. Case No. 14-50756), on
June 25, 2014.
Ten affiliates of New Louisiana -- Acadian 4005 Tenant, LLC (Case
No. 14-50850), Atrium 6555 Tenant, LLC, dba The Atrium at
Lafreniere Assisted Living (Case No. 14-50851), Citiscape 5010
Tenant, LLC, dba Citiscape Apartments (Case No. 14-50853),
Lakewood Quarters Assisted 8585 Tenant, LLC (Case No. 14-50854),
Lakewood Quarters Rehab 8225 Tenant, LLC (Case No. 14-50855),
Panola 501 Partners, LP (Case No. 14-50862), Regency 14333 Tenant,
LLC (Case No. 14-50861), Retirement Center 14686 Tenant, LLC (Case
No. 14-50856), Sherwood 2828 Tenant, LLC (Case No. 14-50857), St.
Charles 1539 Tenant, LLC (Case No. 14-50858) and Woodland Village
5301 Tenant, LLC (Case No. 14-50859) filed Chapter 11 bankruptcy
petitions on July 16, 2014.
Fifteen additional affiliates of New Louisiana -- SA-PG Ocala LLC
(Case No. 14-50909), SA-PG Operator Holdings LLC (Case No. 14-
50912), SA-PG Clearwater LLC (Case No. 14-50913), SA-PG
Gainesville LLC (Case No. 14-50914), SA-PG Jacksonville LLC (Case
No. 14-50915), SA-PG Largo LLC (Case No. 14-50916), SA-PG North
Miami LLC (Case No. 14-50917), SA-PG Orlando LLC (Case No. 14-
50918), SA-PG Pinellas LLC (Case No. 14-50919), SA-PG Port St.
Lucie LLC (Case No. 14-50920), SA-PG Sun City Center LLC (Case No.
14-50921), SA-PG Tampa LLC (Case No. 14-50922), SA-PG Vero Beach
LLC (Case No. 14-50923), SA-PG West Palm Beach LLC (Case No. 14-
50924) and SA-PG Winterhaven LLC (Case No. 14-50925) filed
separate Chapter 11 bankruptcy petitions on July 28, 2014.
Four more affiliates of New Louisiana -- CHC-CLP Operator Holding
LLC (Case No. 14-51104), SA-St. Petersburg LLC (Case No. 14-
51101), SA-Clewiston LLC (Case No. 14-51102) and SA-Lakeland LLC
(Case No. 14-51103) -- that operate skilled nursing facilities
located in Lakeland, Clewiston and St. Peterburg, Florida, sought
protection under Chapter 11 of the Bankruptcy Code on Sept. 3,
2014.
The Chapter 11 cases are jointly consolidated with New Louisiana's
Chapter 11 case at Case No. 14-50756 before Judge Robert
Summerhays of the United States Bankruptcy Court for the Western
District of Louisiana (Lafayette).
The Debtors are represented by Patrick J. Neligan, Jr., Esq., at
Neligan Foley LLP, in Dallas, Texas. Jan M. Hayden and Baker
Donelson Bearman Caldwell & Berkowitz, P.C. serves as local
counsel.
The U.S. Trustee for Region 5 on Oct. 3, 2014, appointed three
creditors of New Louisiana Holdings, LLC, to serve on the official
committee of unsecured creditors. Pepper Hamilton LLP and
McGlinchey Stafford PLLC serve as counsel to the Committee.
NII HOLDINGS: Ernst & Young to Provide Additional Services
----------------------------------------------------------
Ernst & Young LLP will be providing additional services to NII
Holdings Inc. subject to a bankruptcy court's approval, the company
disclosed in court papers.
According to a statement of work dated Dec. 26, 2014 prepared by
Ernst & Young, the audit firm will provide expatriate tax services
to the company starting January 1, 2015 and continuing through
December 31, 2016.
Ernst & Young will also provide tax provision assistance, according
to another statement of work dated Dec. 15, 2014 prepared by the
firm.
The new services are subject to approval by the U.S. Bankruptcy
Court for the Southern District of New York, which oversees NII
Holdings' bankruptcy case. Objections must be filed not later than
4:00 p.m. (Eastern Time) on Jan. 26.
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 Scott J. Greenberg, Esq., and Michael J.
Cohen, Esq., of Jones Day as counsel and Prime Clerk LLC as claims
and noticing agent. NII Holdings disclosed $1.22 billion in assets
and $3.068 billion in liabilities as of the Chapter 11 filing.
The U.S. Trustee for Region 2 appointed five creditors of NII
Holdings to serve on the official committee of unsecured creditors.
The Committee is represented by Kenneth H. Eckstein, Esq., and
Adam C. Rogoff, Esq., at KRAMER LEVIN NAFTALIS & FRANKEL LLP.
Capital Group, one of the Backstop Parties, is represented by
Andrew N. Rosenberg, Esq., Elizabeth R. McColm, Esq., and Lawrence
G. Wee, Esq., at PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP.
Aurelius, one of the Backstop Parties, is represented by Daniel H.
Golden, Esq., David H. Botter, Esq., and Brad M. Kahn, Esq., at
AKIN GUMP STRAUSS HAUER & FELD LLP.
* * *
A Jan. 28, 2015 hearing is currently scheduled to consider the
adequacy of the disclosure statement explaining NII Holdings, Inc.,
et al.'s joint plan of reorganization.
The Plan and Disclosure Statement, filed on Dec. 22, 2014, allow
the Debtors to strengthen their balance sheet by converting $4.35
billion of prepetition notes into new stock and provide the Debtors
with $500 million of new capital. The Plan also permits the
Debtors to avoid the incurrence of significant litigation costs and
delays in connection with potential litigation claims and exit
bankruptcy protection expeditiously and with sufficient liquidity
to execute their business plan.
NII HOLDINGS: Has Until April 13 to Decide on Headquarters Lease
----------------------------------------------------------------
U.S. Bankruptcy Judge Shelley Chapman has given NII Holdings, Inc.,
until April 13 to either assume or reject its 2006 lease contract
with South of Market, LLC.
The contract allows NII Holdings to lease a facility located in
Reston, Virginia, which has served as its headquarters.
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 Scott J. Greenberg, Esq., and Michael J.
Cohen, Esq., of Jones Day as counsel and Prime Clerk LLC as claims
and noticing agent. NII Holdings disclosed $1.22 billion in assets
and $3.068 billion in liabilities as of the Chapter 11 filing.
The U.S. Trustee for Region 2 appointed five creditors of NII
Holdings to serve on the official committee of unsecured creditors.
The Committee is represented by Kenneth H. Eckstein, Esq., and
Adam C. Rogoff, Esq., at KRAMER LEVIN NAFTALIS & FRANKEL LLP.
Capital Group, one of the Backstop Parties, is represented by
Andrew N. Rosenberg, Esq., Elizabeth R. McColm, Esq., and Lawrence
G. Wee, Esq., at PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP.
Aurelius, one of the Backstop Parties, is represented by Daniel H.
Golden, Esq., David H. Botter, Esq., and Brad M. Kahn, Esq., at
AKIN GUMP STRAUSS HAUER & FELD LLP.
* * *
A Jan. 28, 2015 hearing is currently scheduled to consider the
adequacy of the disclosure statement explaining NII Holdings, Inc.,
et al.'s joint plan of reorganization.
The Plan and Disclosure Statement, filed on Dec. 22, 2014, allow
the Debtors to strengthen their balance sheet by converting $4.35
billion of prepetition notes into new stock and provide the Debtors
with $500 million of new capital. The Plan also permits the
Debtors to avoid the incurrence of significant litigation costs and
delays in connection with potential litigation claims and exit
bankruptcy protection expeditiously and with sufficient liquidity
to execute their business plan.
NII HOLDINGS: Luxco Noteholders Object to Timing of Plan
--------------------------------------------------------
Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg
News, reported that an ad hoc committee of holders of senior
unsecured notes issued by NII International Telecom SA, known as
Luxco, complained that the Jan. 28 hearing on the approval of NII
Holdings Inc.'s disclosure statement should be postponed because
the Luxco independent manager isn't scheduled to file his report
until Jan. 26 and say whether he recommends joining or opposing the
plan.
As previously reported by the Troubled Company Reporter, holders of
about $1.69 billion on two issues of senior unsecured notes issued
by Luxco will have 63.5 percent of the new stock and 36.8 percent
of the rights offering. Their predicted recovery, 90.7 percent,
drops to 87.9 percent assuming participation in the rights
offering.
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 Scott J. Greenberg, Esq., and Michael J.
Cohen, Esq., of Jones Day as counsel and Prime Clerk LLC as claims
and noticing agent. NII Holdings disclosed $1.22 billion in assets
and $3.068 billion in liabilities as of the Chapter 11 filing.
The U.S. Trustee for Region 2 appointed five creditors of NII
Holdings to serve on the official committee of unsecured creditors.
The Committee is represented by Kenneth H. Eckstein, Esq., and
Adam C. Rogoff, Esq., at KRAMER LEVIN NAFTALIS & FRANKEL LLP.
Capital Group, one of the Backstop Parties, is represented by
Andrew N. Rosenberg, Esq., Elizabeth R. McColm, Esq., and Lawrence
G. Wee, Esq., at PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP.
Aurelius, one of the Backstop Parties, is represented by Daniel H.
Golden, Esq., David H. Botter, Esq., and Brad M. Kahn, Esq., at
AKIN GUMP STRAUSS HAUER & FELD LLP.
* * *
A Jan. 28, 2015 hearing is currently scheduled to consider the
adequacy of the disclosure statement explaining NII Holdings, et
al.'s joint plan of reorganization.
The Plan, filed on Dec. 22, 2014, allow the Debtors to strengthen
their balance sheet by converting $4.35 billion of prepetition
notes into new stock and provide the Debtors with $500 million of
new capital. The Plan also permits the Debtors to avoid the
incurrence of significant litigation costs and delays in connection
with potential litigation claims and exit bankruptcy protection
expeditiously and with sufficient liquidity to execute their
business plan.
NNN SIENA: Deadline for Amended Plan Extended to Jan. 22
--------------------------------------------------------
Bankruptcy Judge M. Elaine Hammond entered an order extending until
Jan. 22, 2015, the deadline for NNN Siena Office Park I 41, LLC,
and its debtor-affiliates to file an amended version of their
Chapter 11 plan and disclosure statement.
As reported in the Nov 13, 2014 edition of the Troubled Company
Reporter, the Debtors filed a proposed Reorganization Plan that
encompasses 28 voluntary bankruptcy petitions filed by tenants in
common (TIC) that own certain undivided interests in that certain
commercial real property situated at 861 Coronado Center Drive and
2850 W. Horizon Ridge Parkway, Henderson, Nevada.
The Debtors propose under the Plan the consolidation of all
interests in the property into a single limited liability company,
which company will own a 100% ownership interest in the property
and to contribute, or to cause to be contributed from a third party
investor, the sum of $3,294,850 in new value for the purpose of
paying administrative expenses and Plan obligations, including the
pay down of $1,000,000 against the allowed secured claim of lender,
and to recapitalize the property, thence to pay the postpetition
and post confirmation operating expenses of the property from the
gross rental income of the property.
A copy of the Plan is available for free at
http://bankrupt.com/misc/NNNSiena_plan.pdf
About NNN Siena Office Park I 41
NNN Siena Office Park I 41, LLC, together with 30 other
affiliates, filed a Chapter 11 bankruptcy petition (Bankr. N.D.
Cal. Case No. 14-40668) on Feb. 19, 2014. The Debtors are 28 of
31 tenants in common investors, each owning fractional, passive
investment interests in the bare legal title to a medical office
building located at 2850 West Horizon Ridge Parkway and 861
Coronado Center Drive, Henderson, Nevada. The Debtor disclosed
unknown assets and $28.8 million in liabilities as of the Chapter
11 filing.
Judge M. Elaine Hammond oversees the Debtor's Chapter 11 case.
The petition was signed by Mubeen Aliniazee, manager and
responsible individual.
The Court entered orders excusing the receiver from turnover of
the property until Dec. 9, 2014.
OCWEN FINANCIAL: Moody's Lowers Corporate Family Rating to B3
-------------------------------------------------------------
Moody's Investors Service has downgraded the following ratings; the
outlook is negative:
Ocwen Financial Corporation (Ocwen) -- Corporate Family Rating
to B3 from B2; Senior Secured Bank Credit Facility to B3 from B2;
Senior Unsecured Debt to Caa1 from B3
Altisource Solutions S.a.r.l. (Altisource) -- Corporate Family
Rating to B3 from B2; Senior Secured Bank Credit Facility to B3
from B2
Home Loan Servicing Solutions, Ltd (HLSS) -- Corporate Family
Rating to B3 from B2; Senior Secured Bank Credit Facility to
B3 from B2
Ratings Rationale
The rating actions reflect the continued regulatory scrutiny of
Ocwen that could lead to the loss of their license to service loans
in California along with the seriously impaired franchise value of
the three companies.
The California Department of Business Oversight (DBO) is
considering suspending Ocwen's California residential mortgage
lending and servicing license for up to one year. The DBO has
accused Ocwen of failing to provide documents that show compliance
with California's Homeowners Bill of Rights (HBR), a package of
amendments to the California Civil Code that became law in January
2013. If California revokes Ocwen's license, Ocwen would no longer
be allowed to service loans in California, forcing it to transfer
its mortgage-servicing rights on loans in the state. A large
percent of the loans that Ocwen services are located in California.
Even if Ocwen is successful in providing the required information
to the DBO, the DBO would still need to determine whether Ocwen is
complying with California's HBR.
The negative outlook reflects the uncertain outcome of the DBO
regulatory action and its effects on the Ocwen's ability to operate
in California. The negative outlook also reflects the uncertain
outcome of the National Mortgage Settlement Monitor investigation
of Ocwen launched in December 2014 as well as potential exposure to
other investigations or litigation that exist or could be prompted
by recent actions taken by other regulators.
The downgrades to HLSS' and Altisource's ratings were driven by
their businesses' reliance on Ocwen. Virtually all of HLSS' assets
were acquired from Ocwen and as of Q3 2014 approximately 60% of
Altisource's revenues were derived from its relationship with
Ocwen. These two firms' ratings continue to be strongly tied to
Ocwen's ratings.
Ocwen's ratings could be downgraded in the event that any of its
licenses to do business are suspended or revoked or if the company:
1) sells servicing at a material discount to fair value; 2)
transfers subservicing resulting in materially lower net income; or
3) is terminated as servicer without compensation. In addition,
negative ratings pressure on Ocwen's ratings could result if the
company's liquidity erodes or the company's financial fundamentals
weaken, for example, if TCE to tangible assets falls below 7.5%.
In the event that Ocwen's ratings are downgraded, the ratings of
HLSS and Altisource would likely also be downgraded. In addition,
negative ratings pressure on HLSS' ratings could result if the
company's financial fundamentals weaken, with particular focus on:
a) adequate funding availability and b) financial leverage. In
addition, negative ratings pressure on Altisource's ratings could
result if it loses its contract with Ocwen or if the company's
profitability materially deteriorates for an extended period of
time or leverage materially increases.
Given the negative outlook, upgrades to Ocwen's, HLSS', or
Altisource's ratings are unlikely at this time.
ONE SOURCE INDUSTRIAL: Files List of Largest Unsecured Creditors
----------------------------------------------------------------
One Source Industrial, LLC, filed with the U.S. Bankruptcy Court
for the Northern District of Texas, Fort Worth Division, a list of
creditors holding the largest unsecured claims:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Amegy Bank Equipment Financing $7,000,000
c/o Jason A. Medley
O'Donnell, Ferebee, et al.
450 Gears Rd., Suite 800
Houston, TX 77067
Texas Comptroller of
Public Accounts Sales Tax $1,056,598
PO Box 13528, Capitol Station
Austin, TX 78711-3528
GE Capital Equipment Financing $761,408
Account Modification S
1010 Thomas Edison Blvd., SW
Cedar Rapids, IA 52404
Caterpillar Financial
Services Equipment Financing $405,086
PO Box 730681
Dallas, TX 75373-0681
O'Rourke Petroleum Trade Debt $382,265
223 McCarty Dr.
Houston, Tx 77029
Premium Assignment Corp. Insurance Premiums $367,619
3522 Thomasville Rd.
Suite 400
Tallahassee, FL 32309
Summit Funding Group Equipment Financing $340,000
Wells Fargo Bank
Account x0623
260 North Charles Lindbergh Dr.
Salt Lake City, UT 84116
Ascentium Capital LLC Equipment Financing $294,569
Agreement #xxx7376
PO Box 301593
Dallas, TX 5303-1593
Texas Mutual Worker's Comp. Trade Debt $251,045
Audit (New Mexico)
PO Box 841843
Dallas, TX 75284-1843
Suncoast Trade Debt $208,903
PO Box 202603
Dallas, TX 75320
Western Petroleum Trade Debt $146,936
PO Box 677766
Dallas, TX 75267-7766
Mod Space Trade Debt $76,442
12603 Collection Center Dr.
Chicago, IL 60693-0126
Mack Financial Services Equipment Financing $66,000
PO Box 7247-0236
Philadelphia, PA 19170-0236
Briggs & Veselka Co. Trade Debt $64,390
Nine Greenway Plaza
Suite 1700
Houston, TX 77046
Lee Trans Trade Debt $60,183
1415 South First St.
Suite 200
Lufkin, TX 75901
F&W Industries Trade Debt $55,027
PO Box 12271
Odessa, TX 79768
Roper Trade Debt $43,836
PO Box 1683
Odessa, TX 79760-1683
Career Personnel Trade Debt $42,725
807 Bayou Dr.
Longview, TX 75601
ASAP Rentals Trade Debt $38,690
PO Box 444
Crane, TX 79731-0444
McWhorters Trade Debt $36,409
PO Box 2974
Lubbock, TX 79408-2974
About One Source Industrial
One Source Industrial Holdings, LLC, and One Source Industrial LLC
are both limited liability companies that are part of a corporate
family of affiliated companies.
One Source Industrial Holdings holds equipment utilized by various
related entities which provide rental equipment and industrial
services to businesses in the oil and gas, refining, manufacturing,
pipeline, shipping, and construction industries. The types of
equipment possessed by One Source include, e.g., hazardous material
transportation vehicles, frac tanks, tank trailers, barrel mix tank
and vacuum tankers, air machines, and waste and other industrial
boxes and tanks. Industrial provides executive management,
accounting, and overhead services for Holdings.
Holdings sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex.
Case No. 14-44996) in Ft. Worth, Texas, on Dec. 16, 2014. One
Industrial sought Chapter 11 bankruptcy protection (Bankr. N.D.
Tex. Case No. 15-400038) on Jan. 4, 2015.
Holdings' case is assigned to Judge Russell F. Nelms.
The Debtors each estimated $10 million to $50 million in assets and
debt.
The Debtors are represented by J. Robert Forshey, Esq., and Suzanne
K. Rosen, Esq., at Forshey & Prostok, LLP, in Ft. Worth, Texas.
No creditor's committee has been appointed in the cases. Further,
no trustee or examiner has been requested or appointed in the
Debtors' Chapter 11 cases.
ONE SOURCE INDUSTRIAL: Has Interim Authority to Use Cash
--------------------------------------------------------
Judge Russell F. Nelms of the U.S. Bankruptcy Court for the
Northern District of Texas, Fort Worth Division, gave One Source
Industrial, LLC, interim authority to use cash collateral securing
its prepetition indebtedness and extend its prepetition factoring
agreement on a postpetition basis.
To secure the Debtor's postpetition obligations under the factoring
agreement, Amegy Bank National Association will have a lien on the
Debtor's postpetition accounts, accounts receivable and their
proceeds pursuant to Section 364(c)(2) of the Bankruptcy Code.
With respect to equipment owned or leased by Holdings or
Industrial, and which is subject to a security interest, with the
exception of a few frac tanks, the equipment is being used by the
Operating Affiliates to generate true accounts receivables owed to
the Operating Affiliates, as opposed to proceeds from the sale,
lease or other disposition of the equipment.
About One Source Industrial
One Source Industrial Holdings, LLC, and One Source Industrial LLC
are both limited liability companies that are part of a corporate
family of affiliated companies.
One Source Industrial Holdings holds equipment utilized by various
related entities which provide rental equipment and industrial
services to businesses in the oil and gas, refining, manufacturing,
pipeline, shipping, and construction industries. The types of
equipment possessed by One Source include, e.g., hazardous material
transportation vehicles, frac tanks, tank trailers, barrel mix tank
and vacuum tankers, air machines, and waste and other industrial
boxes and tanks. Industrial provides executive management,
accounting, and overhead services for Holdings.
Holdings sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex.
Case No. 14-44996) in Ft. Worth, Texas, on Dec. 16, 2014. One
Industrial sought Chapter 11 bankruptcy protection (Bankr. N.D.
Tex. Case No. 15-400038) on Jan. 4, 2015.
Holdings' case is assigned to Judge Russell F. Nelms.
The Debtors each estimated $10 million to $50 million in assets and
debt.
The Debtors are represented by J. Robert Forshey, Esq., and Suzanne
K. Rosen, Esq., at Forshey & Prostok, LLP, in Ft. Worth, Texas.
No creditor's committee has been appointed in the cases. Further,
no trustee or examiner has been requested or appointed in the
Debtors' Chapter 11 cases.
ONE SOURCE INDUSTRIAL: Taps Forshey & Prostok as Ch. 11 Counsel
---------------------------------------------------------------
One Source Industrial, LLC, seeks authority from the U.S.
Bankruptcy Court for the Northern District of Texas, Fort Worth
Division, to employ Forshey & Prostok, LLP, as bankruptcy
attorneys.
F&P will render the following legal services:
(a) Advising Industrial of its rights, powers and duties as
debtor and debtor-in-possession continuing to operate and
manage its business and assets;
(b) Advising Industrial concerning, and assisting in the
negotiation and documentation of, agreements, debt
restructurings, and related transactions;
(c) Reviewing the nature and validity of liens asserted against
the property of Industrial and advising Industrial
concerning the enforceability of those liens;
(d) Advising Industrial concerning the actions that it might
take to collect and to recover property for the benefit of
Industrial's estate;
(e) Preparing on behalf of Industrial all necessary and
appropriate applications, motions, pleadings, proposed
orders, notices, schedules and other documents, and
reviewing all financial and other reports to be filed in
the Chapter 11 case;
(f) Advising Industrial concerning, and preparing responses to,
applications, motions, pleadings, notices and other papers
that may be filed and served in the Chapter 11 case;
(g) Counseling Industrial in connection with the formulation,
negotiation and promulgation of one or more plans of
reorganization and related documents;
(h) Performing all other legal services for and on behalf of
Industrial that may be necessary or appropriate in the
administration of the Chapter 11 case or in the conduct of
the bankruptcy case and Industrial's business, including
advising and assisting Industrial with respect to debt
restructurings, asset dispositions, and general business,
tax, finance, real estate and litigation matters; and
(i) All other legal services as may be necessary or appropriate
in connection with the bankruptcy case.
F&P will charge Industrial for its legal services on an hourly
basis the following rates:
Partners $500
Associates or Contract Attorneys $275 to $375
Paralegals $150 to $195
In addition, F&P will seek reimbursement of expenses advanced on
behalf of Industrial according to its customary and usual
practices.
One of Industrial's related entities, One Source Holdings, LLC,
commenced its own Chapter 11 bankruptcy case on Dec. 16, 2014,
which is styled as In re One Source Industrial Holdings, LLC, Case
No. 14-44996-frn-11 in the U.S. Bankruptcy Court for the Northern
District of Texas, Fort Worth Division. In connection with its
engagement on behalf of Industrial and other related entities, F&P
obtained a retainer from Industrial in the amount of $55,000
prepetition.
Robert J. Forshey, Esq., at Forshey & Prostok, LLP, in Fort Worth,
Texas, assures the Court that his firm is a "disinterested person"
as the term is defined in Section 101(14) of the Bankruptcy Code
and does not represent any interest adverse to the Debtors and
their estates
F&P may be reached at:
Robert J. Forshey, Esq.
Suzanne K. Rosen, Esq.
FORSHEY & PROSTOK, LLP
777 Main St. Ste. 1290
Fort Worth, TX 76102
Tel: (817) 878-2018
Fax: (817) 877-4151
E-mail: jrf@forsheyprostok.com
srosen@forsheyprostok.com
About One Source Industrial
One Source Industrial Holdings, LLC, and One Source Industrial LLC
are both limited liability companies that are part of a corporate
family of affiliated companies.
One Source Industrial Holdings holds equipment utilized by various
related entities which provide rental equipment and industrial
services to businesses in the oil and gas, refining, manufacturing,
pipeline, shipping, and construction industries. The types of
equipment possessed by One Source include, e.g., hazardous material
transportation vehicles, frac tanks, tank trailers, barrel mix tank
and vacuum tankers, air machines, and waste and other industrial
boxes and tanks. Industrial provides executive management,
accounting, and overhead services for Holdings.
Holdings sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex.
Case No. 14-44996) in Ft. Worth, Texas, on Dec. 16, 2014. One
Industrial sought Chapter 11 bankruptcy protection (Bankr. N.D.
Tex. Case No. 15-400038) on Jan. 4, 2015.
Holdings' case is assigned to Judge Russell F. Nelms.
The Debtors each estimated $10 million to $50 million in assets and
debt.
The Debtors are represented by J. Robert Forshey, Esq., and Suzanne
K. Rosen, Esq., at Forshey & Prostok, LLP, in Ft. Worth, Texas.
No creditor's committee has been appointed in the cases. Further,
no trustee or examiner has been requested or appointed in the
Debtors' Chapter 11 cases.
OPTIM ENERGY: Seeks June 9 Extension of Plan Filing Date
--------------------------------------------------------
About Optim Energy
Optim Energy, LLC, and its affiliates are power plant owners
principally engaged in the production of energy in Texas's
deregulated energy market. Optim owns and operates three power
plants in eastern Texas: the Twin Oaks plant in Robertson County,
Texas, the Altura Cogen plant in Harris County, Texas and the
Cedar Bayou plant in Chambers County, Texas. The Altura and Cedar
Bayou plants are fueled by natural gas, and the third is coal-
fired.
Optim Energy and its affiliates sought Chapter 11 protection from
creditors (Bankr. D. Del. Lead Case No. 14-10262) on Feb. 12,
2014.
The Debtors have tapped Bracewell & Giuliani LLP and Morris,
Nichols, Arsht & Tunnell LLP as attorneys; Protiviti Inc. as
restructuring advisors; and Prime Clerk LLC as claims agent.
Optim Energy, LLC scheduled $6.95 million in assets and $717
million in liabilities. Optim Energy Cedar Bayou 4, LLC, disclosed
$184 million in assets and $718 million in liabilities as of the
Chapter 11 filing.
On Feb. 27, 2014, Roberta A. DeAngelis, U.S. Trustee for Region 3,
notified the Bankruptcy Court that she was unable to appoint an
official committee of unsecured creditors in the Debtors' cases.
The U.S. Trustee explained that there were insufficient responses
to her communication/contact for service on the committee.
OVERLAND STORAGE: Terminates Registration of Securities
-------------------------------------------------------
Overland Storage, Inc., filed a Form 15 with the U.S. Securities
and Exchange Commission to terminate the registration of its common
stock under Section 12(g) of the Securities Exchange Act of 1934.
On Dec. 1, 2014, pursuant to the Agreement and Plan of Merger among
the Company, S3D Acquisition Company ("Merger Subsidiary"), and
Sphere 3D Corporation ("Parent"), dated as of May 15, 2014, the
Company merged with Merger Subsidiary, with the Company surviving
that merger as a wholly owned subsidiary of Parent. As a result of
the Merger, each issued and outstanding share of the Company's
common stock was converted into the right to receive 0.46385 shares
of Parent's common stock.
Also as a result of the Merger, the Company had filed
post-effective amendments to its registration statements with the
SEC to terminate their effectiveness and remove from registration
any and all securities of the Company previously registered but
unsold as of the effective time of the Merger.
About Overland Storage
San Diego, Cal.-based Overland Storage, Inc. (Nasdaq: OVRL) --
http://www.overlandstorage.com/-- is a global provider of unified
data management and data protection solutions designed to enable
small and medium enterprises (SMEs), corporate departments and
small and medium businesses (SMBs) to anticipate and respond to
change.
Overland Storage reported a net loss of $22.9 million for the
year ended June 30, 2014, compared to a net loss of $19.6 million
for the year ended June 30, 2013. As of Sept. 30, 2014, the
Company had $88.7 million in total assets, $61.3 million in
total liabilities and $27.4 million in total shareholders'
equity.
Moss Adams LLP, in San Diego, California, issued a "going concern"
qualification on the consolidated financial statements for the
year ended June 30, 2014. The independent auditors noted that
the Company's recurring losses and negative operating cash flows
raise substantial doubt about the Company's ability to continue as
a going concern.
PATRIOT COAL: S&P Lowers Corp. Credit Rating to 'B-'; Outlook Neg.
------------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its corporate
credit rating on Scott Depot, W.Va.-based coal producer Patriot
Coal Corp. to 'B-' from 'B'. The outlook is negative. At the same
time, S&P lowered its issue-level rating on the company's senior
secured debt to 'B' from 'B+'. The recovery rating remains '2',
indicating S&P's expectation of a substantial (70%-90%) recovery in
the event of a payment default.
Patriot's recently announced asset and coal supply agreement rights
sales to Alliance Resource Partners, L.P. support S&P's belief that
Patriot is reasonably likely to meet its financial commitments over
the next year and underpins the 'B-' rating. However, as indicated
by the negative outlook, the prospects for a sustainable cost
structure that supports positive free cash flow generation remain
unclear.
Patriot Coal is a producer of coal in the eastern U.S., with 8
active mining complexes in the Northern Appalachia and Central
Appalachia basins. The company controls approximately 1.4 billion
tons of proven and probable coal reserves.
"The negative outlook reflects our view that while Patriot has
taken significant steps to shore up liquidity for 2015, it remains
unclear whether the company's asset base and customer profile can
develop into a sustainable business--particularly given depressed
metallurgical and seaborne thermal coal prices," said Standard &
Poor's credit analyst Chiza Vitta.
S&P could lower the rating if Patriot's liquidity position
deteriorates such that sources of cash fall short of uses in 2015.
This could occur if an amendment for relief under existing
financial covenants results in an adverse change in the size or
terms of its revolving credit facility.
An outlook revision to stable would likely depend on achieving
positive free operating cash flow (cash flow from operations less
capital spending). This could happen if coal prices begin to
improve and gross margins (excluding depreciation and amortization)
approach 15%.
PHOENIX PAYMENT: Lease Decision Deadline Extended to March 2
------------------------------------------------------------
Judge Mary F. Walrath entered an order extending Phoenix Payment
Systems, Inc.'s period to assume or reject unexpired leases
pursuant to Section 365(d)(4) of the Bankruptcy Code for 90 days
through and including March 2, 2015.
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.
PLATINUM PROPERTIES: Estate Fully Administered; Ch. 11 Case Closed
------------------------------------------------------------------
Bankruptcy Judge Basil H. Lorch III entered a final decree closing
the Chapter 11 case of Platinum Properties, LLC.
The Court determined that the Debtor's estate has been fully
administered, and any deposit required by the plan has been
distributed.
As reported in the TCR on Sept. 16, 2014, the Bankruptcy Court has
confirmed Platinum Properties' Plan of Liquidation.
According to the disclosure statement, assets of Platinum and PPV
LLC, a joint venture between the company and Pittman Partners,
Inc., will be liquidated. The net proceeds realized from the sale
will be used to pay creditors. The liquidation plan also provides
for the treatment of creditors' claims. Under the plan,
administrative expense claims, secured claims and priority tax
claims will be paid in cash in full. General unsecured claims
will receive a pro rata distribution of Platinum's remaining
property. Meanwhile, holders of equity interests may not receive
payment "based upon reasonable projections," according to court
filings.
The plan will be funded by available cash on the effective date,
and funds available after the effective date from the liquidation
of Platinum's remaining assets.
Earlier, Platinum sought court approval of a private sale of its
personal property to Platinum Properties Management Company LLC as
part of the plan sale. The plan sale will close within 30 days
after court approval of the liquidation plan.
About Platinum Properties and PPV LLC
Indianapolis, Indiana-based Platinum Properties, LLC, is a
residential real estate developer. Platinum acquires land,
designs the projects, obtains zoning and other approvals, and
constructs roads, drainage, utilities, and other infrastructure of
residential subdivisions. Platinum then sells the finished,
platted lots. Platinum also has an ownership interest in several
special purpose entities that in turn own, operate and manage
individual projects.
PPV LLC is a joint venture between Platinum and a non-debtor
entity, Pittman Partners, Inc., each of whom hold an equity
interest in PPV. PPV owned four projects directly and owns 100%
of the membership interest of Sweet Charity Estates, LLC.
Platinum Properties and PPV LLC filed for Chapter 11 protection
(Bankr. S.D. Ind. Case Nos. 11-05140 and 11-05141) on April 25,
2011. Lawyers at Baker & Daniels LLP, in Indianapolis, Indiana,
serve as the Debtors' bankruptcy counsel. Platinum Properties
disclosed $14.6 million in assets and $182 million in liabilities
as of the Chapter 11 filing.
The U.S. Trustee has not appointed a creditors committee in the
Debtors' case. The U.S. Trustee reserves the right to appoint
such a committee should interest developed among the creditors.
PSL-NORTH AMERICA: Case Reassigned to Judge L. Silverstein
----------------------------------------------------------
Chief Judge Brendan Linehan Shannon entered an order transferring
the bankruptcy case of PSL-North America LLC to Judge Laurie Selber
Silverstein for all further proceedings and dispositions effective
as of Jan. 7, 2015.
About PSL-North America
Founded in 2006, PSL-North America LLC is a manufacturer and
coater of large diameter steel pipes. The company has a state-of-
the-art facility located in Bay St. Louis, Mississippi, with the
land leased for 99 years. The company is an American-based
partially owned subsidiary of India's largest producer and
manufacturer of steel piping, PSL Limited.
On June 16, 2014, PSL-North America LLC and PSL USA Inc., filed
voluntary petitions in Delaware (Lead Case No. 14-11477) seeking
relief under chapter 11 of the United States Bankruptcy Code. The
Debtors' cases have been assigned to Judge Peter J. Walsh.
The Debtors seek to have their cases jointly administered
for procedural purposes.
PSL-North America LL disclosed $93.3 million in assets and
$204 million in liabilities as of the Chapter 11 filing. As of
the Petition Date, the company had total outstanding debt
obligations of $130 million, according to a court filing.
Proposed counsel for the Debtor are John H. Knight, Esq., Paul N.
Heath, Esq., Tyler D. Semmelman, Esq., Amanda R. Steele, Esq. and
William A. Romanowicz, Esq. at Richards, Layton & Finger, P.A.
of Wilmington, Delaware. Epiq Bankruptcy Solutions serves as
claims agent.
PVA APARTMENTS: Wants Case Converted to Chapter 7
-------------------------------------------------
PVA Apartments, LLC, asks the Bankruptcy Court to convert its
Chapter 11 case to a case under Chapter 7 of the Bankruptcy Code.
The Debtor says it is eligible to be a debtor under Chapter 7.
About PVA Apartments
Oakland, California-based PVA Apartments, LLC filed Chapter 11
protection (Bankr. N.D. Cal. Case No. 14-44224) on Oct. 18, 2014.
Bankruptcy Judge Hon. Roger L. Efremsky presides over the case.
Sydney Jay Hall, Esq., at the Law Offices of Sydney Jay Hall,
represents the Debtor. The Debtor estimated its assets at
$10 million to $50 million and its debts at $1 million to
$10 million.
The petition was signed by Eric Terrell, shareholder. The Debtor
did not file a list of its largest unsecured creditors when it
filed the petition.
R2D2 LLC: Removal of Bergstein as Manager Valid, 9th Cir. Says
--------------------------------------------------------------
The United States Court of Appeals, Ninth Circuit, upheld a
district court ruling that affirmed the bankruptcy court's order
authorizing the Trustee of R2D2, LLC's bankruptcy estate, Ronald L.
Durkin, to use R2D2's 100% membership interest in non-debtor Pangea
Media Group, LLC, to adopt a resolution removing David Bergstein as
Pangea's manager, and authorizing the Trustee to place Pangea into
bankruptcy proceedings. The Ninth Circuit tossed an appeal from
the ruling by Ronald Tutor, Zelus, LLC, and Bergstein.
A copy of the Ninth Circuit's Jan. 13, 2015 Memorandum is available
at http://is.gd/Q2gc06from Leagle.com.
About Thinkfilm LLC
CapCo Group LLC and four other companies controlled by David
Bergstein are part of a wider network of entities that distribute
and finance films. Among the approximately 1,300 films they have
the rights to are "Boondock Saints" and "The Wedding Planner."
Several creditors filed for involuntary Chapter 11 bankruptcy
against the companies on March 17, 2010 -- CT-1 Holdings LLC
(Bankr. C.D. Cal. Case No. 10-19927); CapCo Group, LLC (Bankr.
C.D. Cal. Case No. 10-19929); Capitol Films Development LLC
(Bankr. C.D. Cal. Case No. 10-19938); R2D2, LLC (Bankr. C.D.
Calif. Case No. 10-19924); and ThinkFilm LLC (Bankr. C.D. Cal.
Case No. 10-19912). Judge Barry Russell presides over the cases.
The Petitioners are represented by David L. Neale, Esq., at Levene
Neale Bender Rankin & Brill LLP.
Judge Barry Russell formally declared David Bergstein's ThinkFilm
LLC and Capitol Films Development bankrupt on Oct. 5, 2010.
Mr. Bergstein is being sued for tens of millions of dollars by
nearly 30 creditors -- including advertisers, publicists and the
Writers Guild West. Five Bergstein controlled companies have been
named in the suit.
RADIOSHACK CORP: Delays Some Rent Payments Amid Restructuring
-------------------------------------------------------------
Matt Jarzemsky and Drew Fitzgerald, writing for The Wall Street
Journal, reported that RadioShack Corp. has delayed paying January
rent on some stores as it works to conserve cash during its
restructuring effort, according to people familiar with the
matter.
The Journal said the Fort Worth, Texas, consumer-electronics
retailer is preparing to file for bankruptcy protection next month
and has reached out to potential lenders that could fund its
operations during a Chapter 11 restructuring.
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 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.
RADIOSHACK CORP: Prepares Bankruptcy Filing
-------------------------------------------
Matt Jarzemsky, Mike Spector and Drew Fitzgerald, writing for The
Wall Street Journal, reported that RadioShack Corp. is preparing to
file for bankruptcy protection as early as next month, people
familiar with the matter said, following a sputtering turnaround
effort that left the electronics chain short on cash.
According to the report, a filing could come in the first week of
February, one of the people said. The Fort Worth, Texas, company
has reached out to potential lenders who could help fund its
operations during the process, another person said, the Journal
related.
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: Seeks More Exclusivity as Latest Sale Goes Before Judge
-----------------------------------------------------------------
Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg
News, reported that Revel AC Inc. filed a second request for
extension of its exclusive right to propose a Chapter 11 plan. If
U.S. Bankruptcy Judge Gloria Burns in approves the request, Revel
will have until March 31 to file a plan, according to the report.
The company said the sale of the casino warrants longer plan
exclusivity, the report related.
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.
RITE AID: Moody's Affirms Ba3 Rating on Upsized Revolver Loan
-------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 rating of Rite Aid
Corporation's asset-based revolving credit facility due January
2020, following its amendment and extension which including up to a
$1.9 billion add-on. At the same time, Moody's affirmed all other
existing ratings including Rite Aid's B2 Corporate Family Rating
and SGL-2 Speculative Grade Liquidity rating. The rating outlook
remains stable.
Rite Aid recently closed an amendment that increased the borrowing
capacity of its asset-based revolving credit facility from $1.795
billion to $3.0 billion or $3.7 billion when the company repays its
8% senior notes. The amendment also extended the maturity date to
January 2020 from February 2018. Rite Aid drew under the upsized
revolver to fund the repayment of its $1.15 billion tranche 7 term
loan. It may also draw under the revolver to repay the $650 million
8% senior secured notes at their first call date. Moody's views
this transaction positively as it will reduce Rite Aid's annual
interest expense by about $20 million to $50 million (after the
repayment of its 8% senior secured notes) and extends Rite Aid's
debt maturity profile. The rating outlook remains stable.
The following ratings are affirmed:
Corporate Family Rating at B2
Probability of Default Rating at B2-PD
Speculative Grade Liquidity rating at SGL-2
$3.7 billion asset based revolving credit facility (upsized from
$1.175 billion) at Ba3, LGD 2
$500 million second lien term loan due 2021 at B2,LGD 4
$470 million second lien term loan due 2020 at B2, LGD 4
Guaranteed senior unsecured notes at Caa1,LGD 5
Unguaranteed unsecured notes at Caa1, LGD 6
The following ratings is withdrawn :
$1.15 billion Tranche 7 first lien term loan due 2020 to Ba3, LGD
2
The following rating will be withdrawn upon its repayment in full:
$650 million senior secured first lien notes due 2020 at Ba3, LGD
2
Rating Rationale
Rite Aid's B2 Corporate Family Rating reflects its high leverage
with debt to EBITDA likely remaining around 6.5 times over the next
twelve months. Although leverage is high, interest coverage is
adequate with EBITA to interest expense of 1.7 times. The rating
incorporates Rite Aid's mid tier competitive position as the fourth
largest drug store chain in the US after Walgreen, CVS, and
Walmart. Positive ratings consideration is given to Rite Aid's good
liquidity, its large revenue base, and the solid opportunities of
the prescription drug industry.
The stable outlook acknowledges Rite Aid's high level of debt and
that Moody's expect Rite Aid's operating income to be modestly
constrained in fiscal 2016 due to reimbursement rate and generic
pricing pressures resulting in credit metrics remaining at levels
indicative of a B2 rating.
While not anticipated in the near term, ratings could be lowered if
Rite Aid experiences a decline in earnings such that debt to EBITDA
is likely to remain above 7.0 times and EBITA to interest expense
is likely to remain below 1.25 times or should free cash flow
become persistently negative.
An upgrade would require Rite Aid's operating performance to
further improve or absolute debt levels to fall such that it
demonstrates that it can maintain debt to EBITDA below 5.5 times
and EBITA to interest expense above 1.75 times. In addition, a
higher rating would require Rite Aid to continue maintain at least
an adequate liquidity profile.
Rite Aid Corporation, headquartered in Camp Hill, Pennsylvania,
operates nearly 4,600 drug stores in 31 states and the District of
Columbia. Revenues are about $26 billion.
The principal methodology used in these ratings was Global Retail
Industry published in June 2011. Other methodologies used include
Loss Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.
ROCKWOOD SPECIALTIES: Moody's Withdraws B1 Corp. Family Rating
--------------------------------------------------------------
Moody's Investors Service upgraded the rating on Rockwood
Specialties Group, Inc.'s (Rockwood) senior unsecured notes to Baa3
following the completion of the acquisition of Rockwood by
Albemarle Corporation (Albemarle, Baa3, stable) and the
establishment of Albemarle's guarantee of Rockwood's notes.
Rockwood's Ba1 Corporate Family Rating (CFR), Ba1-PD Probability of
Default Rating and SGL-1 Speculative Grade Liquidity Rating have
been withdrawn. This concludes the review of Rockwood's ratings
initiated 15 July 2014 after the acquisition was announced. The
outlook is stable.
The followings summarizes the ratings activity:
Rockwood Specialties Group, Inc.
Ratings upgraded:
Sr unsec notes due 2020 -- Baa3 from Ba1
Ratings withdrawn:
Corporate Family Rating -- Ba1
Probability of Default Rating -- Ba1-PD
Sr unsec shelf registration -- (P)Ba1
Speculative Grade Liquidity -- SGL-1
Outlook - Stable
Ratings Rationale
The Baa3 ratings on the Rockwood notes due 2020, reflect the
guarantee by Albemarle of Rockwood's obligations under the notes
indenture. The notes due 2020 remain outstanding following the
acquisition that closed January 12, 2015, and are expected to be
repaid at maturity. Following the pending merger of Rockwood
Specialties Group Inc. with Albemarle's subsidiary, Albemarle
Holdings II Corporation (Holdings II), the cross guarantees between
Albemarle and Holdings II will result in the notes due 2020 ranking
pari passu with debt issued by Albemarle Corporation, including the
acquisition financing.
Albemarle's long-term ratings were downgraded to Baa3 from Baa1 to
reflect the significant increase in leverage and deterioration in
Albemarle's credit metrics in connection with the Rockwood
acquisition. Pro forma for the transaction, Albemarle's
debt-to-EBITDA is approximately 4x, up from 2.1x as of September
30, 2014. Moody's expects the company to focus on debt reduction
such that its leverage will be below 3.0x within 24 months.
(Moody's analytical adjustments add approximately $390 million to
debt to account for operating leases and unfunded pension
liabilities.) The company stated its commitment to an investment
grade rating when it announced the acquisition and historically has
maintained a conservative financial philosophy. Moody's expect the
company to continue to refrain from repurchasing its share
repurchases, but maintain its current dividends and modest dividend
growth. The company expects to generate 2015 EBITDA in excess of
$500 million.
The Baa3 ratings are supported by Albemarle's strong market
positions in its key markets, geographic diversity, elevated
margins, significant diversity of end-markets and the ability to
generate meaningful positive free cash flow throughout the business
cycle. Albemarle's legacy businesses benefit from certain positive
long-term trends in the refining industry and polyolefin demand
(supporting greater use of catalysts), safety and environmental
regulatory requirements (mandating the use of flame retardants,
stricter emission standards for lower sulfur content in fuels and
lower mercury from coal fired plants), growth in offshore drilling
and expected shale gas driven ethylene capacity expansions. The
acquired Rockwood businesses will improve the company's revenue
growth rates and profit margins.
The stable outlook reflects Moody's expectations Albemarle will
successfully integrate the Rockwood acquisition, realize the
projected synergies ($30 million run rate on day one, $50 million
in 2015, $100 million run rate in 2016), grow its EBITDA, focus on
de-levering and maintain adequate liquidity. The rating could be
downgraded if Albemarle does not achieve leverage of 3.7x or lower
by year-end 2015 and show solid progress towards reducing leverage
to 3.0x within 18 months. There is no near-term upward pressure on
the rating, given the high leverage. Moody's would expect to see
leverage to decline below 2.7x before considering an upgrade.
The principal methodology used in these ratings was Global Chemical
Industry Rating Methodology published in December 2013.
Rockwood Specialties Group, Inc., headquartered in Princeton, New
Jersey, is a wholly owned subsidiary of Rockwood Holdings, Inc.,
which was purchased by Albemarle in a transaction that closed
January 12, 2015. The transaction was financed with $1.5 billion of
new debt financing, $2.2 billion of available cash and
approximately $2.1 billion of Albemarle stock (34.7 million new
shares). Rockwood operates two core specialty chemicals businesses,
surface treatment chemicals and lithium and lithium derivatives.
Revenues were approximately $1.4 billion for the twelve months
ended September 30, 2014.
Albemarle Corporation, headquartered in Baton Rouge, Louisiana, is
a global producer of catalysts (mostly for oil refining and
plastics manufacturing) and specialty chemicals including flame
retardants, stabilizers, catalysts, and fine chemicals for use in a
diverse set of end markets. Albemarle operates through the
following business segments: Catalyst Solutions and Performance
Chemicals. The company has strong market positions in catalysts and
in the production of bromine and bromine derivatives. Revenues were
approximately $2.7 billion for the twelve months ended September
30, 2014.
ROOMLINX INC: Depends on Credit Line to Fund Operations
-------------------------------------------------------
RoomLinX, Inc., filed its quarterly report on Form 10-Q, reporting
a net loss of $421,000 on $2.04 million of total revenue for the
quarter ended Sept. 30, 2014, compared with a net loss of $348,000
on $2.9 million of total revenue for the same period in 2013.
The Company's balance sheet at Sept. 30, 2014, showed $5.6 million
in total assets, $10.61 million in total liabilities, and a
stockholders' deficit of $5.01 million.
The Company has experienced recurring losses and negative cash
flows from operations. At Sept. 30, 2014, the Company had
approximate balances of cash and cash equivalents of $2.20 million,
working capital deficit of $2.087 million total deficit of $5.013
million and accumulated deficit of $43.0 million. To date the
Company has in large part relied on debt and equity financing to
fund its shortfall in cash generated from operations. As of Sept.
30, 2014, the Company has available approximately $20.2 million
under its line of credit, however, any borrowings under the line of
credit could be limited.
A copy of the Form 10-Q is available at:
http://is.gd/m31iWd
About RoomLinX
Headquartered in Bloomfield, Colorado, RoomLinX, Inc. (PINKSHEETS:
RMLX) -- http://www.roomlinx.com/-- is a pioneer in Broadband
High Speed Wireless Internet connectivity, specializing in
providing the most advanced Wi-Fi Wireless and Wired networking
solutions for High Speed Internet access to Hotel Guests,
Convention Center Exhibitors, Corporate Apartments, and Special
Event participants. Designing, deploying and servicing site-
specific wireless networks for the hospitality industry is
RoomLinX's core competency.
SCRUB ISLAND: Persuaded Bankruptcy Judge to Approve Plan
--------------------------------------------------------
Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg
News, reported that Scrub Island Resort, Spa & Marina in the
British Virgin Islands prevailed over lender FirstBank Puerto Rico
and persuaded a bankruptcy judge in Tampa, Florida, to approve its
Chapter 11 reorganization plan.
According to the report, after an eight-day trial, the judge
rejected the bank's objections to the plan and ruled that he can
trim the bank's treatment under the plan if Scrub Island wins the
lender-liability suit. Implementation of the plan will enable
Scrub Island to improve the property with an $18 million loan, the
Bloomberg report said, citing a statement from the resort.
About Scrub Island
Scrub Island Development Group Ltd., the owner of a British Virgin
Islands luxury resort, and its affiliate, Scrub Island
Construction Limited, sought bankruptcy protection (Bankr. M.D.
Fla. Case Nos. 13-15285 and 13-15286) on Nov. 19, 2013, to end a
receivership Scrub Island claims was secretly put in place by its
lender. The bankruptcy case is assigned to Judge Michael G.
Williamson.
The 230-acre resort operates as a Marriott Autograph Collection
property. It has 52 rooms and suites, a spa and a 55-slip marina.
Scrub Island Development Group scheduled $125,569,235 in total
assets and $130,695,731 in total liabilities.
The Debtors are represented by Charles A. Postler, Esq., and
Harley E. Riedel, Esq., at Stichter, Riedel, Blain & Prosser, in
Tampa, Florida.
FirstBank Puerto Rico, the prepetition secured lender, is
represented by W. Keith Fendrick, Esq., at Holland & Knight LLP,
in Tampa, Florida.
The Debtors are represented by Charles A. Postler, Esq., and
Harley E. Riedel, Esq., at Stichter, Riedel, Blain & Prosser, in
Tampa, Florida.
FirstBank Puerto Rico, the Debtor's prepetition secured lender, is
represented by W. Keith Fendrick, Esq., at Holland & Knight LLP,
in Tampa, Florida.
The Official Committee of Unsecured Creditors appointed in Scrub
Island's cases has retained Robert B. Glenn, Esq., Edwin G. Rice,
Esq., and Victoria D. Critchlow, Esq., at Glenn Rasmussen, P.A.,
as general counsel.
SIGA TECHNOLOGIES: US Trustee to Hold Meeting of Creditors Today
----------------------------------------------------------------
The U.S. Trustee for Region 2 will convene a meeting of creditors
of SIGA Technologies Inc. today, Jan. 16 at 11:00 a.m. (Eastern
Time).
The meeting will be held at the Office of the U.S. Trustee, 80
Broad Street, Fourth Floor, in New York.
The court overseeing the bankruptcy case of a company schedules the
meeting of creditors usually about 30 days after the bankruptcy
petition is filed. The meeting is called the "341 meeting" after
the section of the Bankruptcy Code that requires it.
A representative of the company is required to appear at the
meeting and answer questions under oath. The meeting is presided
over by the U.S. trustee, the Justice Department's bankruptcy
watchdog.
About SIGA Technologies, Inc.
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 disclosed total assets of $132 million and $7.95 million
in liabilities as of the Chapter 11 filing.
SPECTRUM BRANDS: Fitch Affirms 'BB-' IDR; Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed Spectrum Brands, Inc.'s (Spectrum)
Issuer Default Rating (IDR) at 'BB-' with a Stable Rating Outlook.
Fitch has affirmed Spectrum's secured facilities at 'BB+'
reflecting its priority in the capital debt structure and the
strength of the underlying security package. Fitch has also
affirmed Spectrum's senior unsecured notes at 'BB-'. The ratings
are similar for the company's guaranteed subsidiaries Spectrum
Brands Canada, Inc. and Spectrum Brands Europe GmbH.
Fitch also assigns a 'BB-' IDR to Spectrum Brands Europe GmbH.
Previously there was only a rating on the Euro 225 million senior
secured term loan at the issue level.
KEY RATING DRIVERS
Diversification and Marketing Strategy Leads to Solid Results
The firm's value-based market strategy and highly diversified
product portfolio across seven categories has resonated well with
retail customers and consumers. Organic growth rates have averaged
2% over the past five years, near the low- to mid-point of the
household and personal care sector. Modest sales growth, accretive
acquisitions, and cost controls have led to improving margins and
ample free cash flow (FCF). Much of the company's FCF has
historically been directed toward debt reduction that Fitch expects
to continue. However, improving profitability provided by EBITDA
growth will add flexibility for moderate discretionary activities.
Short-Term Increases in Leverage Expected
Spectrum is acquisitive likely resulting in periodic but temporary
increases in leverage. Generally, Fitch expects the company to
operate with leverage in the sub-4.5x range. The company's track
record on acquisitions has been positive. On the whole,
acquisitions have been accretive and well-integrated.
Spectrum's leverage increased to the mid-6x range at December 2012
after purchasing Stanley Black & Decker, Inc.'s Hardware & Home
Improvement Group (HHI) for $1.4 billion. Fitch's expectation for
sub-4.5x leverage at the fiscal year ended Sept. 30, 2014, was
comfortably met. The 4.1x result was due to better than expected
EBITDA growth and more than $200 million of FCF being directed
towards debt reduction. Leverage will once again increase
moderately at the end of the first quarter of 2015 to about 4.7x to
accommodate roughly $430 million in debt issued during December
2014 mainly to finance the acquisition of Tell Manufacturing, Inc.
(Tell) and Procter & Gamble's European pet food business (Pet).
However, gross leverage should easily trend to the sub-4.5x level
by year end as those profits and cash flows come on-stream. FFO
Interest coverage of 3.1x should remain in this range next year.
Improved FCF
Spectrum's FCF improved to the $300 million range in 2014 and
meeting Fitch's expectations after being below $200 million in each
of the previous five years. HHI, a large acquisition, added
roughly $1 billion in revenues and EBITDA margins that were higher
than Spectrum's. Efficient working capital management is also a
factor in the company's overall improvement although it is not
likely to be as strong contributor to cash flows going forward.
Fitch expects FCF to remain in the same $300 million to $400
million range next year.
Spectrum began recording residual U.S. and foreign taxes on
undistributed foreign earnings since 2012 in order to accelerate
pay down of U.S. debt, as well as fund distributions to
shareholders etc. As a result, Fitch views much of Spectrum's cash
balance as unrestricted and available to reduce debt.
Corporate Governance
Spectrum is a controlled company. Harbinger Group Inc. (HRG, Fitch
IDR 'B'/Outlook Positive) owns approximately 59% of Spectrum. HRG
has pledged a portion of its spectrum shares as collateral for its
own debt and is also dependent on its portfolio companies for cash
flow. However, restrictive and financial covenants in Spectrum's
debt facilities, as well as HRG's focus on maintaining moderate
debt levels at its portfolio companies, should preserve good credit
protection measures.
RATING SENSITIVITIES
Negative: Any change in financial strategy such that leverage is
consistently and materially higher than mid-4x levels would be of
concern and may have negative rating implications. This is likely
to be driven by transformative acquisitions, which may make
strategic sense, but could limit financial flexibility.
Positive: Spectrum's business momentum and credit protection
measures are improving, but potential for an upgrade is low. Fitch
thinks leverage may fall below 4.5x next year with FCF in the $300
million to $400 million range over the medium term. Additionally,
there is potential for leverage to trend to less than 3x given the
company's cash flow generation. However, recent history has shown
this likelihood to be low and perhaps not sustainable if achieved,
given the company's acquisitive posture.
Fitch affirms Spectrum's ratings:
Spectrum Brands, Inc.
-- Long-term IDR at 'BB-'; Outlook Stable;
-- $400 million senior secured asset backed revolver (ABL) due
May 24, 2017 at 'BB+';
-- $510 million senior secured term loan C due Sept. 4, 2019 at
'BB+';
-- $648 million senior secured term loan A due Sept. 4, 2017 at
'BB+';
-- Euro 150 million ($181 million) senior secured term loan due
Dec. 19, 2020 at 'BB+';
-- $520 million 6.375% senior unsecured notes due Nov. 15, 2020
at 'BB-';
-- $570 million 6.625% senior unsecured notes due Nov. 15, 2022
at 'BB-';
-- $300 million 6.75% senior unsecured notes due March 15, 2020
at 'BB-;
-- $250 million 6.125% senior unsecured notes due Dec 15, 2024
at BB-.'
Spectrum Brands Canada, Inc.
-- Long-term IDR at 'BB-';
-- $34 million senior secured term loan B due Dec. 17, 2019 at
'BB+'.
Spectrum Brands Europe GmbH:
-- Euro 225M (USD$283 million) senior secured term loan due
Sept. 4, 2019 at 'BB+'.
STANLEY K HOLDINGS: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Stanley K. Holdings, LLC
704 Nevada Way
Boulder City, NV 89005
Case No.: 15-10142
Chapter 11 Petition Date: January 14, 2015
Court: United States Bankruptcy Court
District of Nevada (Las Vegas)
Judge: Hon. August B. Landis
Debtor's Counsel: Bart K. Larsen, Esq.
KOLESAR & LEATHAM, CHTD.
400 South Rampart Boulevard
Suite 400, Las Vegas, NV 89145
Tel: (702) 362-7800
Fax: (702) 362-9472
Email: blarsen@klnevada.com
info@klnevada.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Bet Caruso, manager.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
SUNTECH AMERICA: Proposes UpShot Services as Claims Agent
---------------------------------------------------------
Suntech America, Inc., and Suntech Arizona, Inc., are asking the
U.S. Bankruptcy Court for the District of Delaware for an order
appointing UpShot Services LLC, as claims and noticing agent, nunc
pro tunc to Jan. 12, 2015.
UpShot will assume full responsibility for the distribution of
notices and the maintenance, processing and docketing of proofs of
claim filed in the Debtors' cases.
Although the Debtors have not yet filed their schedules of assets
and liabilities, they anticipate that there will be over 200
creditors in the Chapter 11 cases. Given the number of anticipated
claimants, the Debtors submit that the appointment of UpShot is in
the best interest of both the Debtors' estates and its creditors.
The Debtor will pay UpShot for its consulting services based on
this pricing schedule:
Hourly Rate
-----------
Clerical $25
Case Assistant $55
IT Manager $85
Case Consultant $125
Case Director $170
For its noticing services, the firm will waive fees for e-mail
noticing and $0.08 per image for facsimile noticing. For the
preparation of schedules and SOFAs, and solicitation balloting and
tabulation of votes for the plan, the firm will charge at its
discounted hourly rates. The firm's call center operator will
charge $45 per hour. For the case Web site creation and related
updates, the firm will also charge at its discounted hourly rates.
Prior to the Petition Date, the Debtors provided UpShot a retainer
in the amount of $10,000.
To the best of the Debtors' knowledge, UpShot is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The claims agent can be reached at:
UpShot Services, LLC
Attn: Travis K. Vandell
7808 Cherry Creek South Drive, Suite 112
Denver, CO 80231
E-mail: tvandell@upshotservices.com
About Suntech Power
Wuxi, China-based Suntech Power Holdings Co., Ltd. (OTC: STPFQ)
produces solar products for residential, commercial, industrial,
and utility applications. Suntech has delivered more than
25,000,000 photovoltaic panels to over a thousand customers in more
than 80
countries.
Suntech Power was unable to pay the principal amount of US$541
million that was due under its 3 percent Convertible Notes due
March 15, 2013. The trustee served a notice of default, and the
default triggered cross-defaults under Suntech's other outstanding
debt.
In March 2013, Chinese banks, allegedly owed $1.3 billion,
petitioned the Wuxi Municipal Intermediate People's Court in
Jiangsu Province, PRC for the reorganization of Wuxi Suntech Power
Co., Ltd. In November 2013, a creditor of Suntech Holdings filed a
petition in the Grand Court of the Cayman Islands and requested the
appointment of joint provisional liquidators in order to oversee
the Suntech Group's restructuring efforts. In November 2013,
Suntech Holdings passed a written resolution placing PSS into
voluntary liquidation in the British Virgin Islands. On April 8,
2013, Suntech Power International Ltd., an entity incorporated in
Switzerland, commenced an insolvency proceeding in the Cantonal
Court in Schaffhausen, Switzerland.
Suntech Power had involuntary Chapter 7 bankruptcy proceedings
initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in
White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by
holders of more than $1.5 million of defaulted securities under a
2008 $575 million indenture. The Chapter 7 Petitioners are
Trondheim Capital Partners, L.P., Michael Meixler, Longball
Holdings, LLC, and Jiangsu Liquidators, LLC. They are
represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP,
in White Plains, New York.
Suntech Power in January 2014 signed a Restructuring Support
Agreement relating to the involuntary Chapter 7 petition. The
parties agreed that Chapter 7 proceedings will be dismissed
following recognition of the provisional liquidation proceeding
previously filed by the Company in the Cayman Islands under Chapter
15 of the U.S. Bankruptcy Code.
On Feb. 21, 2014, David Walker and Ian Stokoe, the joint
provisional liquidators of Suntech Power Holdings Co., Ltd.,
appointed by the Grand Court of the Cayman Islands, commenced a
Chapter 15 proceeding (Bankr. S.D.N.Y. Case No. 14-10383). The
Chapter 15 Petitioners are represented by Jennifer Taylor, Esq.,
and Diana Perez, Esq., at O'Melveny & Myers LLP. According to the
Chapter 15 petition, Suntech has more than $1 billion in both
assets and debts.
About Suntech America
Suntech America, Inc., and Suntech Arizona, Inc. filed for Chapter
11 bankruptcy protection (Bankr. D. Del. Case Nos. 15-10054 and
15-10056) on Jan. 12, 2015. Judge Christopher S. Sontchi presides
over the case.
Mark D. Collins, Esq., Paul Noble Heath, Esq., William A.
Romanowicz, Esq., Zachary I Shapiro, Esq., at Richards, Layton &
Finger, P.A., serve as the Debtors' bankruptcy counsel. Upshot
Services LLC is the Debtors' claims and noticing agent.
The Debtors estimated their assets at between $100 million and $500
million, and their debts at between $100 million and $500 million.
Headquartered in San Francisco, California, Suntech America, aka
Suntech Power, an affiliate of Wuxi, China-based Suntech Power
Holdings Corp., was the main operating subsidiary of the Suntech
Group in the Americas and its primary business purpose was acting
as an intermediary for marketing, selling and distributing Suntech
Group manufactured products.
SUNTECH AMERICA: Seeks Joint Administration of Cases
----------------------------------------------------
Suntech America, Inc., and Suntech Arizona, Inc., are asking the
U.S. Bankruptcy Court for the District of Delaware to enter an
order authorizing the joint administration of their Chapter 11
cases for procedural purposes only.
The Debtors are 100% owned by Suntech ES Holdings Inc. As such,
the Debtors are "affiliates" as that term is defined in 11 U.S.C.
Sec. 101(2) of the Bankruptcy Code.
About Suntech Power
Wuxi, China-based Suntech Power Holdings Co., Ltd. (OTC: STPFQ)
produces solar products for residential, commercial, industrial,
and utility applications. Suntech has delivered more than
25,000,000 photovoltaic panels to over a thousand customers in more
than 80 countries.
Suntech Power was unable to pay the principal amount of US$541
million that was due under its 3 percent Convertible Notes due
March 15, 2013. The trustee served a notice of default, and the
default triggered cross-defaults under Suntech's other outstanding
debt.
In March 2013, Chinese banks, allegedly owed $1.3 billion,
petitioned the Wuxi Municipal Intermediate People's Court in
Jiangsu Province, PRC for the reorganization of Wuxi Suntech Power
Co., Ltd. In November 2013, a creditor of Suntech Holdings filed a
petition in the Grand Court of the Cayman Islands and requested the
appointment of joint provisional liquidators in order to oversee
the Suntech Group's restructuring efforts. In November 2013,
Suntech Holdings passed a written resolution placing PSS into
voluntary liquidation in the British Virgin Islands. On April 8,
2013, Suntech Power International Ltd., an entity incorporated in
Switzerland, commenced an insolvency proceeding in the Cantonal
Court in Schaffhausen, Switzerland.
Suntech Power had involuntary Chapter 7 bankruptcy proceedings
initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in
White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by
holders of more than $1.5 million of defaulted securities under a
2008 $575 million indenture. The Chapter 7 Petitioners are
Trondheim Capital Partners, L.P., Michael Meixler, Longball
Holdings, LLC, and Jiangsu Liquidators, LLC. They are
represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP,
in White Plains, New York.
Suntech Power in January 2014 signed a Restructuring Support
Agreement relating to the involuntary Chapter 7 petition. The
parties agreed that Chapter 7 proceedings will be dismissed
following recognition of the provisional liquidation proceeding
previously filed by the Company in the Cayman Islands under Chapter
15 of the U.S. Bankruptcy Code.
On Feb. 21, 2014, David Walker and Ian Stokoe, the joint
provisional liquidators of Suntech Power Holdings Co., Ltd.,
appointed by the Grand Court of the Cayman Islands, commenced a
Chapter 15 proceeding (Bankr. S.D.N.Y. Case No. 14-10383). The
Chapter 15 Petitioners are represented by Jennifer Taylor, Esq.,
and Diana Perez, Esq., at O'Melveny & Myers LLP. According to the
Chapter 15 petition, Suntech has more than $1 billion in both
assets and debts.
About Suntech America
Suntech America, Inc., and Suntech Arizona, Inc. filed for Chapter
11 bankruptcy protection (Bankr. D. Del. Case Nos. 15-10054 and
15-10056) on Jan. 12, 2015. Judge Christopher S. Sontchi presides
over the case.
Mark D. Collins, Esq., Paul Noble Heath, Esq., William A.
Romanowicz, Esq., Zachary I Shapiro, Esq., at Richards, Layton &
Finger, P.A., serve as the Debtors' bankruptcy counsel. Upshot
Services LLC is the Debtors' claims and noticing agent.
The Debtors estimated their assets at between $100 million and $500
million, and their debts at between $100 million and $500 million.
Headquartered in San Francisco, California, Suntech America, aka
Suntech Power, an affiliate of Wuxi, China-based Suntech Power
Holdings Corp., was the main operating subsidiary of the Suntech
Group in the Americas and its primary business purpose was acting
as an intermediary for marketing, selling and distributing Suntech
Group manufactured products.
SUNTECH AMERICA: To File Liquidating Plan in Near Term
------------------------------------------------------
The U.S. units of Chinese company Suntech Power Holdings Co. --
Suntech America, Inc., and Suntech Arizona, Inc. -- sought
bankruptcy protection and said they will file a plan of liquidation
in the near term.
"The Debtors' Chapter 11 cases were filed as part of a coordinated,
global effort in connection with the Suntech Group's complex
international restructuring," Robert Moon, the Chief Restructuring
Officer, said in a court filing.
According to Mr. Moon, the Chapter 11 cases are necessary at this
juncture for the Suntech Group to continue to progress towards
finalizing their international restructuring. The Suntech Group
already is, or has been, subject to insolvency proceedings in
China, Europe, the Cayman Islands and the British Virgin Islands,
and now is in a position to focus on expeditiously and efficiently
resolving its affairs in the United States.
The Chapter 11 cases will afford the Debtors and the Suntech Group
that opportunity by (i) providing the Debtors with a necessary
breathing spell from the various litigation and creditor matters
they face and (ii) allowing the Suntech Group to maximize the value
of its remaining U.S.-based assets in an efficient and
market-tested manner and, if sufficient funds exist following
satisfaction of allowed claims, to distribute any remaining funds
to members of the Suntech Group in their capacity as the Debtors'
equity holders.
"In an effort to finalize the Chapter 11 cases and to continue
progressing the Suntech Group's international restructuring efforts
as expeditiously as possible, the Debtors intend to file a
disclosure statement and plan of liquidation in the near term. In
my view, through the Chapter 11 cases, the Suntech Group will be
one step closer to finalizing its international restructuring," Mr.
Moon tells the Court.
Assets and Debt
Suntech America owns no real property and presently leases office
space in San Francisco. Suntech America's primary tangible assets
consist of unencumbered cash in the amount of $10 million, and
inventory, consisting of PV modules, with a book value of $6.5
million. Suntech America's books and records also reflect accounts
receivables in the amount of $110 million, which primarily consist
of recorded intercompany obligations due to Suntech America from
other members of the Suntech Group.
Suntech Arizona owns no real property and leases a manufacturing
facility in Goodyear. Other than manufacturing equipment, Suntech
Arizona owns no other significant tangible assets. Suntech
Arizona's books and records also reflect intercompany accounts
receivable in the amount of $52.3 million.
The Debtors' assets include intercompany obligations owing from
other members of the Suntech Group, including $65.3 million from
Suntech Holdings, $32.3 million from Power Solar System Co., Ltd.,
a British Virgin Islands company, which is a wholly owned
subsidiary of Suntech Holdings, and $5.1 million from Suntech ES
Holdings, Inc.
The Debtors have no secured debt. Suntech America's books and
records reflect approximately $112,000 being owed on account of
third party trade payables and $55.4 million being owed on account
of intercompany obligations to other members of the Suntech Group.
In addition, Suntech America's books and records reflect an
outstanding disputed obligation to Wuxi Suntech in the approximate
amount of $107.5 million, which was recorded while Wuxi Suntech was
an affiliate of the Debtors.
Suntech Arizona's books and records reflect $2 million being owed
on account of third party trade payables and approximately $16.1
million being owed on account of intercompany obligations to other
members of the Suntech Group. Suntech Arizona's books and records
also reflect an outstanding disputed obligation to Wuxi Suntech in
the approximate amount of $36.4 million, which was recorded while
Wuxi Suntech was an affiliate of the Debtors.
In addition, several parties, including Wuxi Suntech, have
commenced lawsuits against the Debtors asserting various claims
(e.g., antitrust, product liability and breach of contract claims)
in both finite and nonfinite amounts and, as of the day hereof,
such lawsuits are ongoing. The Debtors dispute the validity of the
claims asserted in these lawsuits.
First-Day Motions
The Debtors on the Petition Date filed motions to:
-- jointly administer their Chapter 11 cases;
-- pay prepetition shipping and warehousing claims;
-- maintain their bank accounts;
-- prohibit utilities from discontinuing service; and
-- pay employee wages and benefits.
A copy of the Mr. Moon's affidavit in support of the so-called
First-Day Motions is available for free at:
http://bankrupt.com/misc/Suntech_A_1st_Day_Affidavit.pdf
About Suntech Power
Wuxi, China-based Suntech Power Holdings Co., Ltd. (OTC: STPFQ)
produces solar products for residential, commercial, industrial,
and utility applications. Suntech has delivered more than
25,000,000 photovoltaic panels to over a thousand customers in more
than 80 countries.
Suntech Power was unable to pay the principal amount of US$541
million that was due under its 3 percent Convertible Notes due
March 15, 2013. The trustee served a notice of default, and the
default triggered cross-defaults under Suntech's other outstanding
debt.
In March 2013, Chinese banks, allegedly owed $1.3 billion,
petitioned the Wuxi Municipal Intermediate People's Court in
Jiangsu Province, PRC for the reorganization of Wuxi Suntech Power
Co., Ltd. In November 2013, a creditor of Suntech Holdings filed a
petition in the Grand Court of the Cayman Islands and requested the
appointment of joint provisional liquidators in order to oversee
the Suntech Group's restructuring efforts. In November 2013,
Suntech Holdings passed a written resolution placing PSS into
voluntary liquidation in the British Virgin Islands. On April 8,
2013, Suntech Power International Ltd., an entity incorporated in
Switzerland, commenced an insolvency proceeding in the Cantonal
Court in Schaffhausen, Switzerland.
Suntech Power had involuntary Chapter 7 bankruptcy proceedings
initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in
White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by
holders of more than $1.5 million of defaulted securities under a
2008 $575 million indenture. The Chapter 7 Petitioners are
Trondheim Capital Partners, L.P., Michael Meixler, Longball
Holdings, LLC, and Jiangsu Liquidators, LLC. They are
represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP,
in White Plains, New York.
Suntech Power in January 2014 signed a Restructuring Support
Agreement relating to the involuntary Chapter 7 petition. The
parties agreed that Chapter 7 proceedings will be dismissed
following recognition of the provisional liquidation proceeding
previously filed by the Company in the Cayman Islands under Chapter
15 of the U.S. Bankruptcy Code.
On Feb. 21, 2014, David Walker and Ian Stokoe, the joint
provisional liquidators of Suntech Power Holdings Co., Ltd.,
appointed by the Grand Court of the Cayman Islands, commenced a
Chapter 15 proceeding (Bankr. S.D.N.Y. Case No. 14-10383). The
Chapter 15 Petitioners are represented by Jennifer Taylor, Esq.,
and Diana Perez, Esq., at O'Melveny & Myers LLP. According to the
Chapter 15 petition, Suntech has more than $1 billion in both
assets and debts.
About Suntech America
Suntech America, Inc., and Suntech Arizona, Inc. filed for Chapter
11 bankruptcy protection (Bankr. D. Del. Case Nos. 15-10054 and
15-10056) on Jan. 12, 2015. Judge Christopher S. Sontchi presides
over the case.
Mark D. Collins, Esq., Paul Noble Heath, Esq., William A.
Romanowicz, Esq., Zachary I Shapiro, Esq., at Richards, Layton &
Finger, P.A., serve as the Debtors' bankruptcy counsel. Upshot
Services LLC is the Debtors' claims and noticing agent.
The Debtors estimated their assets at between $100 million and $500
million, and their debts at between $100 million and $500 million.
Headquartered in San Francisco, California, Suntech America, aka
Suntech Power, an affiliate of Wuxi, China-based Suntech Power
Holdings Corp., was the main operating subsidiary of the Suntech
Group in the Americas and its primary business purpose was acting
as an intermediary for marketing, selling and distributing Suntech
Group manufactured products.
SURGICAL SPECIALTY: Surgical Care Buys Assets for $40MM
-------------------------------------------------------
Angela Gonzales, senior reporter at Phoenix Business Journal,
reports that Surgical Care Affiliates Inc. has purchased Surgical
Hospital of Phoenix out of bankruptcy for $40 million.
Surgical Care acquired the facility, hospital assets, and a 15-year
lease, Business Journal relates, citing Dave Gonzales, managing
director of CKS Advisors, which was hired in February 2014 to
provide consulting and leadership and serve as chief restructuring
officer.
According to Business Journal, Mr. Gonzales said that five of the
15 physician owners of Surgical Hospital are staying on board.
Phoenix, Arizona-based Surgical Specialty Hospital of Arizona, LLC,
filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case
No. 13-20029) on Nov. 19, 2013, estimating its assets at between $1
million and $10 million, and its liabilities at between $10 million
and $50 million. The petition was signed by William Comer, chief
executive officer. Judge Daniel P. Collins presides over the case.
Kami M. Hoskins, Esq., and Carolyn J. Johnsen, Esq., at Jennings,
Strouss & Salmon, PLC, serve as the Debtor's bankruptcy counsel.
SUYAPA CHRISTINA BANDY: Lien Ruling Reversed by District Court
--------------------------------------------------------------
Judge Robin L. Rosenberg of the U.S. District Court for the
Southern District of Florida reversed a bankruptcy court's order
granting motion to value and determine secured status of lien on
real property held by La Paz at Boca Pointe Phase II Condominium
Association, Inc.
On Jan. 29, 2014, the bankruptcy trustee for Suyapa Christina Bandy
notified the bankruptcy court of abandonment that indicated the
real property at issue had been abandoned and was no longer part of
the bankruptcy estate. The Bankruptcy Court found that (i) the
abandonment of the real property by the trustee had no impact on
the court's jurisdiction and (ii) because the Appellant's liens
were unsecured, the Appellant's liens would become void at the time
of the Appellee's discharge -- April 7, 2014.
After reviewing the Eleventh Circuit's decision in McNeal v. GMAC
Mortgage, LLC, Judge Rosenberg found that the Bankruptcy Court's
application of that case was in error. According to Judge
Rosenberg, McNeal did not address abandonment and it did not
address jurisdiction in the context of abandonment. In the event
property remains within the jurisdiction of a bankruptcy court in
the Eleventh Circuit, McNeal is certainly binding authority that
stands for the proposition that unsecured liens may be stripped
off, Judge Rosenberg ruled.
According to Bill Rochelle and Sherri Toub, bankruptcy columnists
for Bloomberg News, in November, the U.S. Supreme Court agreed to
hear an appeal in two cases involving Bank of America NA to resolve
a split among federal courts and decide whether underwater
mortgages can be stripped off in Chapter 7, the same as in Chapter
13. If the Supreme Court sides with lenders in the Bank of America
cases and prohibits lien stripping in Chapter 7, Judge Rosenberg's
case won't matter because lien stripping will be impossible in
Florida and other states covered by the Atlanta appeals court, the
Bloomberg report said.
If the Supreme Court permits lien stripping in Chapter 7, Judge
Rosenberg's case will be important because, unless overruled by the
Atlanta court, a Chapter 7 trustee could eradicate a bankrupt's
right to lien strip by abandoning the property, the Bloomberg
report added.
The case is LA PAZ AT BOCA POINTE PHASE II CONDOMINIUM ASSOCIATION,
INC., Appellant, v. SUYAPA CHRISTINA BANDY, Appellee, NO.
9:14-CV-80783-RLR, BANKRUPTCY CASE NO. 13-40398-EPK (S.D. Fla.). A
full-text copy of Judge Rosenberg's opinion and order dated Dec. 5,
2014, is available at http://is.gd/Uoi3kVfrom Leagle.com.
SWANKE HAYDEN: Files for Ch. 11 After Russian Client Refuses to Pay
-------------------------------------------------------------------
Affiliates Swanke Hayden Connell Ltd. (Bankr. S.D.N.Y. Case No.
15-10009), Design 360 Inc. (Bankr. S.D.N.Y. Case No. 15-10010), and
Swanke Hayden Connell & Partners LLP (Bankr. S.D.N.Y. Case No.
15-10011) filed for Chapter 11 bankruptcy protection on Jan. 6,
2015). The petitions were signed by Richard Seth Hayden,
president.
Dezeen.com reports that Swanke Hayden Connell Architects filed for
bankruptcy after failing to receive $2,296,505 in fees from an
undisclosed Russian customer who refuses to pay and who claims to
have suffered damages as a result of alleged delays and omissions
from the architects.
Mr. Hayden, who owns two thirds of the business, cites in court
documents that a slowdown in the economy and new projects as the
reason the firm can no longer pay its creditors, and "there are
also unresolved political and economic issues which may play a role
in the outcome."
Dezeen.com says that the firm has no bank debt and no unsecured
loans.
Judge Shelley C. Chapman presides over the case. Leo Fox, Esq.,
who has an office in New York, serves as the Debtors' bankruptcy
counsel.
Swanke Hayden Connell Ltd. listed $6.51 million in assets and $6.99
million in liabilities. Design 360 Inc. listed $717,000 in assets
and $273,000 in liabilities. Swanke Hayden Connell & Partners LLP
listed up to $50,000 in total assets and up to $50,000 in total
liabilities. According to Dezeen.com, the main creditors are M-E
Engineers, owed $632,000; United Reprographic Services owed
$499,000; and consultant Hankins & Anderson, owed $294,000.
About Swanke Hayden
New York City-based Swanke Hayden Connell Architects --
http://www.shca.com/-- is the firm behind the Fifth Avenue Trump
Tower and the Statue of Liberty restoration. It operated under
different guises since 1906. Its portfolio includes the revival of
Central Park's Tavern on the Green and the City of London Academy.
It has also worked on several projects in Russia in recent years,
most notably the Eurasia Tower for the Russian Federation.
TARGET CORP: Canadian Unit Files for Bankruptcy, To Close Stores
----------------------------------------------------------------
Richard Collings, writing for The Deal, reported that after plowing
billions into its Canadian expansion, Target Corp. finally admitted
defeat, announcing that it is shuttering its operations there.
According to the report, Target Canada Co., Target's division in
that country, has filed for bankruptcy protection under the
Companies' Creditors Arrangement Act with the Ontario Superior
Court of Justice in Toronto. The announcement comes only four
years after Target made headlines for acquiring the leases of 220
locations that essentially constituted the Canadian discounter
formerly known as Zellers, from Hudson's Bay Co. for $1.8 billion,
the report related.
TRAVELCLICK INC: S&P Assigns 'B-' CCR on Merger with TCH-2
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' corporate
credit rating to New York City-based TravelClick Inc. The outlook
is stable.
At the same time, S&P withdrew the 'B-' corporate credit rating on
TCH-2 Holdings LLC.
The ratings on the company's first- and second-lien debt remain
unchanged.
"The ratings on TravelClick reflect Standard & Poor's adjusted
leverage of 19x, including our treatment of the company's preferred
equity as debt (which adds about 8x to adjusted leverage), and
treating capitalized software development as an operating expense,"
said Standard & Poor's credit analyst Christian Frank.
The ratings also reflect the company's modest scale and
concentrated exposure to the lodging industry, which its good track
record of operating performance and cost reduction opportunities
partly offset. S&P expects the company to generate positive free
operating cash flow (FOCF) in 2015 and for liquidity to remain
adequate, although execution risk associated with its cost
reduction plan could result in the company underperforming S&P's
expectations.
The stable outlook reflects S&P's view that the company's good
market position will result in solid revenue growth, and that FOCF
will remain positive as planned cost reductions offset increased
interest expense.
S&P could lower the rating if business disruption from cost
reductions or a downturn in the global travel industry causes FOCF
to turn negative or total liquidity to fall below $15 million.
S&P could raise the rating if cost savings and revenue growth
result in Standard & Poor's adjusted EBITDA sustained in the $80
million area, assuming no change to the company's capital
structure.
TREETOPS ACQUISITION: Files Chapter 11 Plan
-------------------------------------------
Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg
News, reported that Treetops Resort, a golf, ski and spa resort in
Gaylord, Michigan, filed a reorganization plan that would allow a
purchaser of more than $13 million in senior secured debt to
convert the obligation into ownership of the reorganized project.
According to the report, under the proposed plan, tax claims would
be paid over five years while most secured creditors will keep
their liens and receive deferred cash payments until fully paid.
General unsecured creditors wouldn't get any distributions and
existing interests will be canceled.
About Treetops Acquisition
Headquartered in Gaylord, Michigan, Treetops Acquisition Company,
LLC -- dba Treetops Land Company, LLC; Treetops Enterprises, LLC;
Treetops; Treetops South Village Property Management; Association,
INc.; Treetops Sylvan Resort; Treetops Jones Estates Property
Owners Association, Inc.; Treetops Resort; Treetops Holding
Company; Treetops Realty, Inc.; Treetops Land Development Company,
LLC; Treetops Tradition Condominium Association, Inc.; Treetops
North Estates Condominium Association, Inc.; and Sylvan Resort --
owns Treetops Resort and Spa, a northern Michigan golf and ski
destination, and features prominent auto industry investors.
Treetops Acquisition filed for Chapter 11 bankruptcy protection
(Bankr. E.D. Mich. Case No. 14-22602) on Nov. 25, 2014,
estimating its assets at $1 million to $10 million and its
liabilities at $10 million to $50 million. The petition was
signed by Richard B. Owens, general manager.
Jason W. Bank, Esq., at Kerr, Russell And Weber, PLC, serves as
the Debtor's bankruptcy counsel.
TTM TECHNOLOGIES: Moody's Assigns B2 Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
(CFR) and a B2-PD probability of default rating to TTM
Technologies, Inc. (TTM) Moody's also assigned a Ba2, LGD1 rating
to the company's $150 million US asset-backed revolver and a B1,
LGD3 rating to the company's $765 million senior secured tem loan.
The term loan, in conjunction with additional junior debt will be
used to fund the roughly $900 million acquisition of Viasystems,
Inc. and refinance TTM's existing debt. Moody's also assigned a SGL
rating of SLG-2 indicating good liquidity. The outlook is stable.
At the completion of the acquisition, Moody's will withdraw all
existing Viasystems' ratings.
Ratings Rationale
The B2 CFR reflects TTM's elevated financial leverage (Moody's
adjusted total debt to EBITDA in the mid 4.0 times range following
acquisition) and the near-term challenges the company will face in
integrating the Viasystems operations, which suffered a series of
operating missteps in the past couple of years. Moreover, the
highly fragmented and competitive nature of the electronic printed
circuit board ("PCB") industry could limit the company's prospects
to grow revenues and achieve margin expansion to enable it to
rapidly delever.
The ratings are supported by the increased scale, greater customer
diversification, and a broad array of high end product offerings to
its customers. Viasystems' customer and product portfolio is
generally complementary to TTM, which will add meaningful
contributions in the automotive and communications infrastructure
industries. The combined resources of the two companies should
enable TTM to continue investing in R&D and state of the art
manufacturing facilities to stay on the leading edge of PCB
fabrication, which differentiates it from the Asian providers of
commoditized PCBs.
Moody's expects TTM to maintain good liquidity, with projected free
cash flow of up to $60 million in 2015. Moody's anticipate
post-acquisition cash balances to be over $150 million. As external
liquidity, TTM will have a $150 million senior secured ABL revolver
in the US and a $150 million senior secured ABL revolver in Asia.
The ABL credit facility will have a springing covenant, which is
not expected to be in effect over the next 12-18 months, as excess
availability should remain above the minimum levels.
The ratings assigned to the individual instruments are based on the
probability of default of the company, which is B2-PD, as well as
an average family recovery. The $150 million US senior secured ABL
revolver benefits from a superior collateral position relative to
the other classes of debt, while the $765 million senior secured
term loan has an asset pledge from the company's domestic
subsidiaries, but ranks below the collateral backing the ABL. Both
senior secured facilities benefit from the new and existing junior
debt at TTM.
The stable rating outlook reflects Moody's expectation that TTM
will make steady progress in integrating Viasystems' operations and
will achieve the targeted cost synergies.
What Could Change the Rating - Up
Given the increased debt taken on with the acquisition and time
required to successfully integrate Viasystems, a rating upgrade is
unlikely over the next 12 months. Ratings could be upgraded as a
result of significant revenue and EBITDA expansion which leads to
significantly reduced leverage to below 3.0 times and improvement
in operating margins above 13%. Ratings could also be raised if the
integration leads to better working capital management and drives
higher cash flow from operations and improved free cash flow
stability.
What Could Change the Rating - Down
Ratings could be downgraded if TTM's integration of Viasystems
results in deteriorating financial performance, revenue growth does
not materialize, or if the company experiences market share loss or
operational missteps. Ratings may also be downgraded if margins
erode further as a result of lower volumes, pricing pressures or
higher operating costs. Free cash flow deterioration would pressure
the rating. Financial leverage sustained above 5.0 times total
adjusted debt to EBITDA would also pressure ratings.
Rating Assignments:
Issuer: TTM Technologies, Inc.
Corporate Family Rating, Assigned B2
Probability of Default Rating, Assigned B2-PD
Speculative Grade Liquidity Rating, Assigned SGL-2
Senior Secured Term Loan B due 2022, Assigned B1 (LGD3)
Senior Secured US ABL Revolver due 2020, Assigned Ba2 (LGD1)
Outlook Actions:
Outlook, Assigned as Stable
Headquartered in Costa Mesa, CA, TTM is a provider of complex
multi-layer printed circuit boards (PCB), electro-mechanical
solutions. Proforma revenue for the Viassysems acquisition for the
twelve months ended September 30, 2014 was $2.3 billion.
The principal methodology used in these ratings was Global
Distribution & Supply Chain Services published in November 2011.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.
TURNAROUND PIZZA: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Turnaround Pizza, Inc.
dba Domino's Pizza
5473 4th St.
St. Augustine, FL 32080
Case No.: 15-00151
Nature of Business: Domino's Pizza Franchise
Chapter 11 Petition Date: January 14, 2015
Court: United States Bankruptcy Court
Middle District of Florida (Jacksonville)
Debtor's Counsel: Robert Altman, Esq.
ROBERT ALTMAN, P.A.
5256 Silver Lake Dr
Palatka, FL 32177-8524
Tel: 386-325-4691
Email: robertaltman@bellsouth.net
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Karim K. Amer, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/flmb15-00151.pdf
TWEETER HOME: Judge Grants Liquidating Trustee Bid to Close Cases
-----------------------------------------------------------------
U.S. Bankruptcy Judge Kevin Gross granted a bid from the trustee
liquidating Tweeter Home Entertainment Group Inc. to close the
Chapter 11 cases of the company's affiliates.
The affiliates are Hillcrest High Fidelity Inc., N.E.A. Delaware
Inc., New England Co. Inc., Sound Advice Inc., Sound Advice of
Arizona Inc., Sumarc Electronics Inc. and T.H.E.G. U.S.A., L.P.
The companies were merged with Tweeter Home, now known as TWTR
Inc., which continues to exist as a reorganized company for the
purpose of disposing assets of the estates.
Tweeter Home's bankruptcy case will remain open in connection with
the continuing implementation of its liquidation plan.
About Tweeter Home
Based in Canton, Mass., Tweeter Home Entertainment Group Inc. --
http://www.tweeter.com/-- sold mid-to high-end audio and video
consumer electronics products. Tweeter and seven of its affiliates
filed for chapter 11 Protection on June 11, 2007 (Bankr. D. Del.
Case Nos. 07-10787 through 07-10796).
As of Dec. 21, 2006, Tweeter had total assets of $259 million and
total debts of $190 million.
Gregg M. Galardi, Esq., Mark L. Desgrosseilliers, Esq., and Sarah
E. Pierce, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP,
represented the Debtors. The Debtors also 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.
Bruce Grohsgal, Esq., William P. Weintraub, Esq., and Rachel Lowy
Werkheiser, Esq., at Pachulski Stang Ziehl & Jones LLP; and Scott
L. Hazan, Esq., Lorenzo Marinuzzi, Esq., and Todd M. Goren, Esq.,
at Otterbourg, Steindler, Houston & Rosen, P.C., represented the
Official Committee of Unsecured Creditors.
The Debtors subsequently sold substantially all of their assets to
Tweeter Newco LLC, and the sale closed in July 2007. Tweeter Home
Entertainment Group, n/k/a TWTR, Inc., filed with the Bankruptcy
Court a Chapter 11 Plan of Liquidation and related Disclosure
Statement in October 2012. Judge Peter Walsh have since confirmed
the First Amended Joint Plan of Liquidation. The Amended Plan
provides for the orderly liquidation of the Debtors, and general
unsecured creditors are to get an estimated 0.28% to 0.76%
recovery. The Plan was declared effective Oct. 31, 2014.
TYUS DEVELOPMENT: Case Summary & 5 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Tyus Development L.P.
P.O. Box 711
Fairfield, TX 75840
Case No.: 15-60032
Chapter 11 Petition Date: January 14, 2015
Court: United States Bankruptcy Court
Western District of Texas (Waco)
Judge: Hon. Ronald B. King
Debtor's Counsel: John A. Montez, Esq.
MONTEZ & WILLIAMS, P.C.
3809 W. Waco Dr
Waco, TX 76710
Tel: (254) 759-8600
Fax: (254) 759-8700
Email: johna.montez@yahoo.com
Total Assets: $3.16 million
Total Liabilities: $691,265
The petition was signed by Donna Tyus Schaufert, managing member,
Haynie Tyus Land Dev.
A list of the Debtor's five largest unsecured creditors is
available for free at http://bankrupt.com/misc/txwb15-60032.pdf
UNITEK GLOBAL: Chapter 11 Plan Declared Effective as of Jan. 13
---------------------------------------------------------------
UniTek Global Services, Inc. said in a Form 15-12B filing with the
Securities and Exchange Commission that its Chapter 11 plan has
been declared effective as of Jan. 13, 2015.
The Bankruptcy Court on Jan. 5, 2015, confirmed the Joint
Prepackaged Plan of Reorganization of UniTek Global Services. The
Plan was originally filed with the Court on Nov. 3, 2014.
"All previously issued Common Stock was discharged, cancelled,
released and extinguished as of the January 13, 2015 effective date
of the Plan. All of the equity of the Registrant following the
effective date of the plan will be held by 15 lenders to the
Registrant," the Company said in the Form 15-12B filing.
The Company also has filed with the Commission several Form S-8 POS
documents to remove from registration all shares of the Company's
common stock. A copy of those filings are available at:
http://is.gd/Quw9HB
http://is.gd/npFFXB
http://is.gd/oRLnb1
About UniTek Global Services
UniTek Global Services, Inc., based in Blue Bell, Pennsylvania,
provides fulfillment and infrastructure services to media and
telecommunication companies in the United States and Canada.
On Nov. 3, 2014 UniTek Global and nine subsidiary companies filed
petitions in the United States Bankruptcy Court for the District
of Delaware seeking relief under chapter 11 of the United States
Bankruptcy Code. The Debtors are seeking to have their cases
jointly administered for procedural purposes, with pleadings to be
maintained on the case docket for UniTek Global Services, Inc.,
Case No. 14-12471.
The Debtors have tapped Morgan, Lewis & Bockius LLP as counsel;
Young, Conaway, Stargatt & Taylor, LLP, as co-counsel; Miller
Buckfire & Co. LLC, as financial advisor; Protiviti Inc., and Epiq
Bankruptcy Solutions, LLC, as claims and noticing agent.
As of Sept. 30, 2014, the Debtors have 2,500 employees,
substantially all of whom are full-time.
UniTek Global reported a net loss of $52.07 million on
$472 million of revenues for the year ended Dec. 31, 2013, as
compared with a net loss of $77.7 million on $438 million of
revenues in 2012.
The Company's balance sheet at March 29, 2014, showed $250 million
in total assets against $257 million in total liabilities.
UNITEK GLOBAL: Terminates Rights Deal With American Stock Transfer
------------------------------------------------------------------
UniTek Global Services, Inc., which recently emerged from Chapter
11 bankruptcy protection, said on January 12, 2015, that it entered
into an Amendment to the Section 382 Rights Agreement, dated as of
August 28, 2014 with American Stock Transfer & Trust Company, LLC,
as Rights Agent.
The Amendment amends the Rights Agreement to change the "Final
Expiration Date" of the Rights Agreement from August 28, 2015 to
January 12, 2015. The amendment had the effect of terminating the
Rights Agreement as of January 12, 2015.
A copy of the Amendment is available at http://is.gd/tEXz4g
About UniTek Global Services
UniTek Global Services, Inc., based in Blue Bell, Pennsylvania,
provides fulfillment and infrastructure services to media and
telecommunication companies in the United States and Canada.
On Nov. 3, 2014 UniTek Global and nine subsidiary companies filed
petitions in the United States Bankruptcy Court for the District
of Delaware seeking relief under chapter 11 of the United States
Bankruptcy Code. The Debtors are seeking to have their cases
jointly administered for procedural purposes, with pleadings to be
maintained on the case docket for UniTek Global Services, Inc.,
Case No. 14-12471.
The Debtors have tapped Morgan, Lewis & Bockius LLP as counsel;
Young, Conaway, Stargatt & Taylor, LLP, as co-counsel; Miller
Buckfire & Co. LLC, as financial advisor; Protiviti Inc., and Epiq
Bankruptcy Solutions, LLC, as claims and noticing agent.
As of Sept. 30, 2014, the Debtors have 2,500 employees,
substantially all of whom are full-time.
UniTek Global reported a net loss of $52.07 million on
$472 million of revenues for the year ended Dec. 31, 2013, as
compared with a net loss of $77.7 million on $438 million of
revenues in 2012.
The Company's balance sheet at March 29, 2014, showed $250 million
in total assets against $257 million in total liabilities.
The Bankruptcy Court on Jan. 5, 2015, confirmed the Joint
Prepackaged Plan of Reorganization of UniTek Global Services. The
Plan was originally filed with the Court on Nov. 3, 2014.
VERMILLION INC: Appoints L. Miller SVP Sales/Customer Experience
----------------------------------------------------------------
Vermillion, Inc., has appointed Laura Miller to the newly created
position of senior vice president of sales/customer experience. Ms.
Miller will report directly to Valerie Palmieri, president & chief
executive officer.
Holly Bauzon, previously vice president of Sales and Managed
Markets, will now be solely dedicated to leading managed markets.
The Company said this more focused position will better enable it
to build its managed care foundation.
Laura has spent 17 years in the diagnostics industries, serving in
numerous sales, operations and executive capacities for laboratory
service and capital equipment organizations. Prior to serving as
an independent healthcare consultant for the last four years, she
served as president, Laboratory Services, for HealthTronics
Laboratory, from 2008-2010. In addition, she served in several
senior leadership roles at PLUS Diagnostics, DIANON Systems, U.S.
Labs and Ventana Medical Systems.
"I have worked with Laura in several capacities, including previous
direct report relationships. She is a seasoned executive in our
industry and we are so pleased to add her to our management team,"
said Ms. Palmieri, president & chief executive officer. "We look
forward to leveraging her sales and customer centric expertise as
we continue to grow our business. As Vermillion/ASPiRA moves
forward with our goal of transforming from a diagnostic company to
a bio-analytic solutions provider, her skill set will be vital to
our sales strategy and delivering a world class customer
experience."
Before entering the diagnostics industry, Ms. Miller served in the
U.S. Army, where she achieved the rank of Captain -- Military
Intelligence. She received a Bachelor of Arts degree in
Geography/Anthropology from the University of Southern Maine.
Pursuant to the terms of an employment agreement, executed on
Jan. 7, 2015, between the Company and Ms. Miller, the Company will
pay Ms. Miller an annual base salary of $250,000.
About Vermillion
Vermillion, Inc., is dedicated to the discovery, development and
commercialization of novel high-value diagnostic tests that help
physicians diagnose, treat and improve outcomes for patients.
Vermillion, along with its prestigious scientific collaborators,
has diagnostic programs in oncology, hematology, cardiology and
women's health.
The Company filed for Chapter 11 bankruptcy protection (Bankr. D.
Del. Case No. 09-11091) on March 30, 2009. Vermillion's legal
advisor in connection with its successful reorganization efforts
wass Paul, Hastings, Janofsky & Walker LLP. Vermillion emerged
from bankruptcy in January 2010. The Plan called for the Company
to pay all claims in full and equity holders to retain control of
the Company.
Vermillion incurred a net loss of $8.81 million in 2013, a net
loss of $7.14 million in 2012 and a net loss of $17.8 million in
2011.
As of Sept. 30, 2014, Vermillion had $18.4 million in total
assets, $5.83 million in total liabilities and $12.6 million in
total stockholders' equity.
VERSO PAPER: Moody's Ups CFR to B3 & Rates New $650MM Notes B3
--------------------------------------------------------------
Moody's Investors Service upgraded Verso Paper Holdings LLC's
corporate family rating (CFR) to B3 from Caa3 and changed the
probability of default rating (PDR) to B3-PD/LD from Caa3-PD. At
the same time, Moody's assigned a B3 (LGD4) rating to the company's
new $650 million senior secured notes due 2019, Caa1 (LGD5) rating
to the company's $178 million second-lien notes due 2020 and Caa2
(LGD6) rating to the company's $63 million subordinated notes due
2020 that were issued in connection with the company's debt
exchange and consummation of the NewPage Corporation acquisition on
January 7, 2015. For Verso and NewPage's other debt ratings, refer
to the debt list below. Verso's PDR of B3-PD/LD reflects the
approximately $122 million and $39 million principal reduction on
the company's second-lien and subordinated notes, respectively, set
forth in the debt exchange. In approximately three days the LD
(limited default) designation will be removed and Verso's PDR will
be B3-PD. The company's rating outlook was changed to stable. The
rating action reflects Moody's view that the acquisition of NewPage
will improve Verso's credit profile and concludes the review for
Verso and NewPage that was initiated on January 8, 2014.
Upgrades:
Issuer: Verso Paper Holdings LLC
Probability of Default Rating, Upgraded to B3-PD /LD from Caa3-PD
Corporate Family Rating, Upgraded to B3 from Caa3
$143 million Senior Subordinated Regular Bond/Debenture due 2016,
Upgraded to Caa2(LGD6) from Ca(LGD6) (becomes $41 million
Surbordinated Notes)
$150 million Senior Secured Bank Credit Facility, due 2017,
Upgraded to Ba3(LGD1) from B2(LGD1)
$50 million Senior Secured Bank Credit Facility, due 2017,
Upgraded to B3(LGD4) from Caa1(LGD2)
$418 million Senior Secured Regular Bond/Debenture due 2019,
Upgraded to B3(LGD4) from Caa1(LGD2)
$396 million Senior Secured Regular Bond/Debenture, due 2019,
Upgraded to Caa2(LGD6) from Ca(LGD5) (becomes $97 million
Surbordinated Notes)
$272 million Senior Secured Regular Bond/Debenture, due 2019,
Upgraded to Caa1(LGD5) from Caa3(LGD4)
Assignments:
Issuer: Verso Paper Holdings LLC
$63 million Senior Subordinated Regular Bond/Debenture, due 2020,
Assigned Caa2(LGD6)
$650 million Senior Secured Regular Bond/Debenture, Assigned
B3(LGD4)
$178 million Senior Secured Regular Bond/Debenture, due 2020,
Assigned Caa1(LGD5)
Outlook Actions:
Issuer: Verso Paper Holdings LLC
Outlook, Changed To Stable From Rating Under Review
Assumptions:
Issuer: NewPage Corporation
$750 million Senior Secured Bank Credit Facility, due 2021,
B2(LGD3)-No Longer on Watch previously rated B2(LGD4), Assumed by
Verso Paper Holdings LLC
Withdrawals:
Issuer: Verso Paper Holdings LLC
Speculative Grade Liquidity Rating, Withdrawn , previously rated
SGL-4
Issuer: NewPage Corporation
Probability of Default Rating, Withdrawn , previously rated B1-PD
Speculative Grade Liquidity Rating, Withdrawn , previously rated
SGL-1
Corporate Family Rating, Withdrawn , previously rated B1
Ratings Rationale
Verso's B3 CFR primarily reflects Moody's expectation that initial
proforma leverage of about 9 times can be brought down to mid-6
times through synergy cost savings and cost improvements following
the acquisition of NewPage, despite a continuing structural decline
in demand for coated paper. Verso's rating also reflects the
execution risks in integrating NewPage's six paper mills with its
own two mills and the company's convoluted funding structure. The
combined company's leading market position in terms of market share
and cost position, primarily in the production of higher quality
coated paper grades (such as coated freesheet), will provide an
improved ability to anticipate and the operational flexibility to
address the evolving supply-demand dynamics in this challenging
industry.
Verso's liquidity has improved with its ability to access some cash
from NewPage, which has been structured as a non-guarantor
restricted subsidiary of Verso with a standalone capital structure.
At September 2014, Verso and NewPage together had about $365
million of liquidity to fund about $50 million of cash uses in
2015. Verso had approximately $12 million of cash and net
availability of approximately $18 million under the company's
combined $150 million asset based revolving credit facility (ABL)
and $50 million revolving credit facility (both maturing May 2017).
While NewPage had approximately $9 million of cash and net
availability of approximately $278 million under the company's $350
million asset based revolving credit facility that matures December
2017. The company has about $20 million of debt maturities over the
next year and Moody's estimate that Verso and NewPage combined will
burn approximately $30 million of cash during this period. The sale
of Verso's Bucksport paper mill and power plant, which is expected
to close early in 2015 for approximately $60 million, will improved
near term liquidity. Going forward, a shared services agreement
between Verso and NewPage will enable corporate costs and the cash
generated from synergies to be transferred between the companies on
a quarterly basis. In addition, NewPage's credit facilities will
allow about $40 million of cash to be dividend to Verso annually.
With most of the company's assets secured, Verso has limited
alternative liquidity. A minimum fixed charge coverage ratio in
both Verso and NewPage's ABLs are triggered when availability under
the facility falls below 10% of facility size.
The stable rating outlook reflects Moody's expectations that Verso
will be able to integrate NewPage and maintain adequate liquidity
through challenging industry conditions. Moody's expect that Verso
and other coated paper producers will continue to reduce its supply
base to offset declining demand. Verso's CFR could be upgraded if
is able to successfully integrate the operations of NewPage and
improve its ability to cope with the declining coated paper
industry through improved management of operating capacity. An
upgrade would also be contingent upon the maintenance of good
liquidity and debt to EBITDA below 5.5 times. The ratings could be
downgraded if liquidity deteriorates significantly or if the
company does not reduce normalized debt/EBITDA below 6.5 times and
(RCF- capex) to debt falls below 1%.
The principal methodology used in these ratings was Global Paper
and Forest Products Industry published in October 2013. Other
methodologies used include Loss Given Default for Speculative-Grade
Non-Financial Companies in the U.S., Canada and EMEA published in
June 2009.
Headquartered in Memphis, Tennessee, Verso is the largest coated
paper producer in North America with eight paper manufacturing
mills.
VISUALANT INC: Reports $1 Million Net Loss for Fiscal 2014
----------------------------------------------------------
Visualant, Inc., filed with the U.S. Securities and Exchange
Commission its annual report on Form 10-K disclosing a net loss of
$1 million on $7.98 million of revenue for the year ended
Sept. 30, 2014, compared to a net loss of $6.60 million on $8.57
million of revenue for the year ended Sept. 30, 2013.
As of Sept. 30, 2014, Visualant had $3.22 million in total assets,
$6.62 million in total liabilities, all current, and a $3.40
million total stockholders' deficit.
The Company had cash of $70,000 and net working capital deficit of
approximately $2,697,000 (excluding the derivative liability-
warrants of $2,579,000) as of Sept. 30, 2014. The Company expects
losses to continue as it commercializes its ChromaID technology.
The Company's cash used in operations for the year ended Sept. 30,
2014 was $(1,379,000).
PMB Helin Donovan, LLP, in Seattle, Washington, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Sept. 30, 2014. The independent auditors noted that
the Company has sustained a net loss from operations and has an
accumulated deficit since inception. These factors, according to
the auditors, raise substantial doubt about the Company's ability
to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
http://is.gd/ddx8jh
About Visualant Inc.
Seattle, Wash.-based Visualant, Inc., was incorporated under the
laws of the State of Nevada on Oct. 8, 1998. The Company
develops low-cost, high speed, light-based security and quality
control solutions for use in homeland security, anti-
counterfeiting, forgery/fraud prevention, brand protection and
process control applications.
WALDORF NEVENS: Files for Chapter 11 Bankruptcy Protection
----------------------------------------------------------
Waldorf Nevens Cleaners, Inc., filed for Chapter 11 bankruptcy
protection (Bankr. D. Minn. Case No. 15-40067) on Jan. 9, 2015,
estimating its assets at up to $50,000, and its liabilities at $1
million to $10 million. The petition was signed by John Zahhos,
president. Judge Michael E Ridgway presides over the case. Steven
B. Nosek, Esq., at Steven B. Nosek, P.A., serves as the Debtor's
bankruptcy counsel.
Nick Halter at Minneapolis / St. Paul Business Journal reports that
the Debtor's largest creditors with unsecured claims are: (i)
Associated Bank, $1.6 million; (ii) Minnesota Department of
Revenue, $435,000; (iii) E. Weinberg Supply & Equipment of St.
Louis Park, $375,000; (iv) Hennepin County, $274,000; and (v) Gac
Zahhos LLP of Rochester, Minnesota, $201,000.
A profit-and-loss statement shows that the Debtor lost $639,000 in
the first 11 months of 2014.
Waldorf Nevens Cleaners, Inc., headquartered in Edina, Minnesota,
is a long-running Twin Cities dry cleaning chain operates four
stores in downtown Minneapolis, Loring Park, St. Louis Park. The
business has been family-owned and operated since 1895.
WET SEAL: May File for Bankruptcy Due to Depletion of Cash
-----------------------------------------------------------
The Wet Seal, Inc., filed its quarterly report on Form 10-Q,
disclosing a net loss of $35.9 million on $104.3 million of revenue
for the 13 weeks ended Nov. 1, 2014, compared with a net loss of
$14.9 million on $115 million of revenue for the same period last
year.
The Company's balance sheet at Nov. 1, 2014, showed $92.9 million
in total assets, $103.4 million in total liabilities, and a
stockholders' deficit of $10.53 million.
The Company has experienced losses and there is substantial doubt
about the ability to continue as a going concern. If the Company
continues to experience negative cash flows from operations, it
will deplete cash reserves and working capital in the very near
term. If the Company is unsuccessful in the very near term in
efforts to address immediate liquidity requirements or it otherwise
experience delays and difficulties in such efforts, the Company's
business, liquidity and financial condition would be
materially and adversely affected and the Company may deem it
advisable to seek a restructuring or other relief under the
provisions of the U.S. Bankruptcy Code.
A copy of the Form 10-Q is available at:
http://is.gd/X561vr
About Wet Seal
The Wet Seal, Inc. -- http://www.wetsealinc.com/-- is a
specialty retailer of fashionable and contemporary apparel and
accessory items. The Company was incorporated in Delaware and is
headquartered in Foothill Ranch, California.
Dow Jones' Daily Bankruptcy Review, reported that Wet Seal has
hired Klee, Tuchin, Bogdanoff & Stern LLP, as restructuring counsel
to help the struggling teen retailer with a potential bankruptcy
filing.
The Company's board of directors approved closing 338 retail stores
effective on or about Jan. 7, 2015.
WET SEAL: To Incur Various Charges Related to Store Closures
------------------------------------------------------------
The Wet Seal, Inc., previously disclosed that it has discontinued
operations in 338 retail stores, and will not pay rent for the
month of January 2015 for those closed stores. As of Jan. 13,
2015, the Company continues to operate approximately 173 retail
stores and its e-commerce business. The Store Closures resulted in
the termination of approximately 3,695 full and part-time
employees. The Company estimates that the stores closed
represented approximately 48% of its net sales for the nine months
ended Nov. 1, 2014.
In connection with the Store Closures, the Company expects to incur
various charges and costs, including costs and charges associated
with inventory write off, asset impairments (consisting primarily
of write-offs of fixtures, furniture and equipment at the closed
stores) and employee terminations. The Company did not enter into
a separate plan or agreement in connection with the Store Closures
and possession of the closed stores was returned to the applicable
landlords.
About Wet Seal
The Wet Seal, Inc. -- http://www.wetsealinc.com/-- is a specialty
retailer of fashionable and contemporary apparel and accessory
items. The Company was incorporated in Delaware and is
headquartered in Foothill Ranch, California.
Stephanie Gleason and Lillian Rizzo, writing for Dow Jones' Daily
Bankruptcy Review, reported that Wet Seal has hired Klee, Tuchin,
Bogdanoff & Stern LLP, as restructuring counsel to help the
struggling teen retailer with a potential bankruptcy filing.
The Company's board of directors approved closing 338 retail stores
effective on or about Jan. 7, 2015.
As of Nov. 1, 2014, Wet Seal had $92.9 million in total assets,
$103.4 million in total liabilities and a $10.5 million total
stockholders' deficit.
Bankruptcy Warning
In fiscal 2013 and the 39 weeks ended Nov. 1, 2014, the Company
incurred net losses of $38.4 million and $79.7 million and negative
cash flow from operations of $17.6 million and $40 million,
respectively. As of Nov. 1, 2014, the Company had cash and cash
equivalents of $19.1 million compared to cash and cash equivalents
of $38.8 million at Feb. 1, 2014. For the three fiscal quarters
ended Nov. 1, 2014, the Company had experienced comparable store
sales and gross margin performance that were worse than expected
entering fiscal 2014, and a number of factors continue to
negatively impact us and the retail fashion apparel industry in
which the Company does business. The Company expects to report net
losses and negative cash flow from operations through at least the
fourth quarter of fiscal 2014, and may also incur significant net
losses and negative cash flows beyond the fourth quarter. The
Company's negative cash flows from operations have adversely
impacted its cash and liquidity reserves.
"Concerns about our financial condition have adversely impacted the
terms we can obtain from some of our vendors, and some of our
vendors and their factors are unwilling to continue to extend
credit to us or otherwise now require that we obtain letters of
credit or other forms of credit support," the Company stated in its
quarterly report for the period ended Nov. 1, 2014.
The Company has also received notice from The NASDAQ OMX Group
indicating that the bid price of its common stock for the 30
consecutive business days ended Aug. 15, 2014, had closed below the
minimum $1.00 per share required for continued listing under Nasdaq
listing rules, which could result in Nasdaq de-listing the
Company's common stock if not cured within a 180-day period,
subject to additional applicable grace periods for which the
Company may be eligible. If the Company's common stock is not
listed on the Nasdaq Global Select Market, the Nasdaq Global
Market, the Nasdaq Capital Market or other eligible market, it
would result in an event of default under the Company's senior
convertible note, which event of default would also result in a
default under the Company's senior revolving credit facility,
whereupon the holder under its senior convertible note and the
lender under its senior revolving credit facility could accelerate
the indebtedness under such note and facility.
In November 2014, the Company entered into a commitment letter with
the agent and the lender under its existing senior secured
revolving credit facility which would, among other things, extend
the maturity date of the facility to the fifth anniversary of the
closing date of the amendment and increase certain advance rates
used to determine the borrowing base under the revolving credit
facility. In addition, the Company entered into a commitment
letter with a third party lender, pursuant to which the potential
lender committed to provide the Company with a $10 million term
loan secured by all of the Company's assets, which loan would
constitute a use of the incremental facility included in the
Company's senior revolving credit facility.
"If we are unsuccessful in the very near term in our efforts to
address our immediate liquidity needs or otherwise experiences
delays and difficulties in such efforts, our business, liquidity
and financial condition would be materially and adversely affected
and we may deem it advisable to seek a restructuring or other
relief under the provisions of the U.S. Bankruptcy Code, which
could lead to a significant and possibly total loss of investment
for holders of our Class A common stock," the Company said in the
filing.
WINDSOR FINANCING: S&P Lowers Rating to 'BB'; Outlook Stable
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its project issue rating
on Windsor Financing LLC to 'BB' from 'BB+'. At the same time, S&P
left its recovery rating of '1' unchanged. The outlook is stable.
Windsor's three power plants -- Spruance I (110 megawatts [MW]) and
Spruance II (110 MW) in Richmond, Va., and Edgecombe (110 MW) in
Rocky Mount, N.C. -- began commercial operations in 1992 (both
Spruance plants) and 1990, respectively, and dispatch their power
into the PJM Interconnection region. The project benefits from
substantial capacity payments under the plants' power purchase
agreements (PPA) with public utility Virginia Electric & Power Co.
(VEPCO). These PPAs expire in 2015 and 2017 and, until those
dates, provide the vast majority of cash flow necessary to service
debt.
"The downgrade reflects weaker-than-expected performance throughout
2014, which has caused us to view the next two years, before the
Northern Virginia Electric Cooperative PPA begins, as being
somewhat more risky," said Standard & Poor's credit analyst Michael
Ferguson.
Several factors conspired to make this a weaker-than-expected
financial year. First, capacity factors increased dramatically to
nearly 60% at both Spruance and Edgecombe, a figure well in excess
of S&P's previous expectations. Although this would be beneficial
for many plants, this plant earns negative energy margins, and this
significantly affected cash flow. Accentuating the negative energy
margins were heat rates exceeding 16,000 Btu per kilowatt-hour
(kWh) at Spruance and 20,000 Btu per kWh at Edgecombe, though these
are less consequential because of the ability to use substitute
power. These, too, exceeded our expectations, while forced outage
rates were also somewhat high due to generator rewinds, though this
did not affect PPA availability. While S&P acknowledges that 2014
was an atypical year due to unique weather conditions, it believes
this demonstrates that downside risk is considerable through 2016.
Thereafter, new PPAs are likely to largely mitigate such risks.
The stable outlook on the debt rating reflects S&P's view that
contractual revenues will comfortably cover debt service throughout
the debt tenor, and will allow for only moderate refinancing risk
at maturity. S&P believes that operations will stay sufficiently
strong to earn all due revenues during the plant's contracted life,
and that the minimum DSCR should be about 1.7x during the term loan
B tenor and debt at refinancing of $462 per kW.
[*] ABI Would Slow Bankruptcy Sales, Trim Safe Harbors
------------------------------------------------------
Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg
News, reported that the American Bankruptcy Institute recommended
cutbacks in the sweeping effect of the so-called safe harbor for
securities transactions and suggested a minor slow-down in the
breakneck speed at which some entire businesses are sold in Chapter
11.
According to the report, the commission, composed of more than 20
distinguished law professors, judges and practitioners, recommended
that bankruptcy judges be precluded from approving loans at the
outset of bankruptcy that require selling the business in less than
60 days noting that sales before the early 2000s could "take at
least three months, if not more." Recently,
according to the ABI report, the "sale process has become much more
abbreviated," the Bloomberg report said.
[*] Lawyers Properly Stiffed for Fees When Ch. 13 Case Dismissed
----------------------------------------------------------------
Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg
News, reported that U.S. District Judge Joseph P. Stadtmueller in
Milwaukee ruled in a Dec. 29 opinion that when a Chapter 13 case
was dismissed before plan confirmation, the bankruptcy court didn't
commit error in declining to exercise jurisdiction after dismissal
to grant fee awards to the bankrupts' attorneys.
According to the report, Judge Stadtmueller said several provisions
in the Bankruptcy Code "cannot be read in harmony with one
another," and added that courts considering the same issue are "all
over the map in attempting to construe these phrases."
The case is In re Ward, 14-882, U.S. District Court, Eastern
District of Wisconsin (Milwaukee).
[^] BOOK REVIEW: Transnational Mergers and Acquisitions
-------------------------------------------------------
Author: Sarkis J. Khoury
Publisher: Beard Books
Softcover: 292 pages
List Price: $34.95
Review by Gail Owens Hoelscher
Order your personal copy today at http://is.gd/hl7cni
Transnational Mergers and Acquisitions in the United States will
appeal to a wide range of readers. Dr. Khoury's analysis is
valuable for managers involved in transnational acquisitions,
whether they are acquiring companies or being acquired themselves.
At the same time, he provides a comprehensive and large-scale look
at the industrial sector of the U.S. economy that proves very
useful for policy makers even today. With its nearly 100 tables
of data and numerous examples, Khoury provides a wealth of
information for business historians and researchers as well.
Until the late 1960s, we Americans were confident (some might say
smug) in our belief that U.S. direct investment abroad would
continue to grow as it had in the 1950s and 1960s, and that we
would dominate the other large world economies in foreign
investment for some time to come. And then came the 1970s, U.S.
investment abroad stood at $78 billion, in contrast to only $13
billion in foreign investment in the U.S. In 1978, however, only
eight years later, foreign investment in the U.S. had skyrocketed
to nearly #41 billion, about half of it in acquisition of U.S.
firms. Foreign acquisitions of U.S. companies grew from 20 in
1970 to 188 in 1978. The tables had turned an Americans were
worried. Acquisitions in the banking and insurance sectors were
increasing sharply, which in particular alarmed many analysts.
Thus, when it was first published in 1980, this book met a growing
need for analytical and empirical data on this rapidly increasing
flow of foreign investment money into the U.S., much of it in
acquisitions. Khoury answers many of the questions arising from
the situation as it stood in 1980, many of which are applicable
today: What are the motives for transnational acquisitions? How do
foreign firms plans, evaluate, and negotiate mergers in the U.S.?
What are the effects of these acquisitions on competition, money
and capital markets; relative technological position; balance of
payments and economic policy in the U.S.?
To begin to answer these questions, Khoury researched foreign
investment in the U.S. from 1790 to 1979. His historical review
includes foreign firms' industry preferences, choice of location
in the U.S., and methods for penetrating the U.S. market. He
notes the importance of foreign investment to growth in the U.S.,
particularly until the early 20th century, and that prior to the
1970s, foreign investment had grown steadily throughout U.S.
history, with lapses during and after the world wars.
Khoury found that rates of return to foreign companies were not
excessive. He determined that the effect on the U.S. economy was
generally positive and concluded that restricting the inflow of
direct and indirect foreign investment would hinder U.S. economic
growth both in the short term and long term. Further, he found no
compelling reason to restrict the activities of multinational
corporations in the U.S. from a policy perspective. Khoury's
research broke new ground and provided input for economic policy
at just the right time.
Sarkis J. Khoury holds a Ph.D. in International Finance from
Wharton. He teaches finance and international finance at the
University of California, Riverside, and serves as the Executive
Director of International Programs at the Anderson Graduate School
of Business.
*********
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.
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 nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
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
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Copyright 2015. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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