/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/150127.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, January 27, 2015, Vol. 19, No. 27 Headlines AKBARI-SHAHMIRZADI: Court Won't Stay Order Approving Rival Plan ALEXZA PHARMACEUTICALS: Initiates Phase 2a Study of AZ-002 ALLIANT HOLDINGS: Moody's Retains B3 CFR Over Increased Borrowing ARS INVESTMENT: Case Summary & 7 Largest Unsecured Creditors ASSOCIATED WHOLESALERS: Judge Extends Deadline to Remove Suits ATLANTIC CITY: Moody's Lowers Water Revenue Debt Rating to B2 AWI DELAWARE: Has Until April 7 to Make Lease-Related Decisions AZIZ CONVENIENCE: GA Assigns Retention Agreement to Keen Summit BAPTIST HOME: Can File Chapter 11 Plan Until January 28 BROADVIEW NETWORKS: BlackRock Reports 8.6% Stake as of Dec. 31 C. WONDER: Meeting to Form Creditors' Panel Set for Jan. 30 CACHE INC: Hires Lawyers to Help Prepare Bankruptcy Filing CAESARS ENTERTAINMENT: Can Continue Surety Bond Program CAESARS ENTERTAINMENT: Creditors Debate Bankr. Court Choice CAESARS ENTERTAINMENT: Has Interim Authority to Pay PACA Claims CAESARS ENTERTAINMENT: Has Interim OK to Pay $10.7-Mil. to Vendors CD INTERNATIONAL: Files Late 2013 Report CLOUD MEDICAL: GHB CPAs PC Express Going Concern Doubt CRAFT INTERNATIONAL: Parties Agree to Shut Company CUBIC ENERGY: Amends Quarterly Report to Correct Accounting Error D J SIMPSON: Case Summary & 20 Largest Unsecured Creditors DCP MIDSTREAM: Moody's Lowers Jr. Subordinated Bond Rating to Ba1 DEB STORES: Creditors' Panel Hires Cooley LLP as Lead Counsel DEB STORES: Creditors' Panel Hires Drinker Biddle as Co-counsel DEB STORES: Creditors' Panel Taps Zolfo Cooper as Consultants DTE ENERGY: Fitch Affirms 'BB+' Rating on Jr. Subordinated Notes DUBLIN SQUARE: Case Summary & 17 Largest Unsecured Creditors DYNAVOX INC: Joint Plan of Liquidation Declared Effective ESP RESOURCES: Incurs $734,000 Net Loss in Third Quarter ETRADE FINANCIAL: Moody's Puts 'Ba3' CFR on Review for Upgrade EXIDE TECHNOLOGIES: Watchdog Says Plan Unfair to Jr. Bondholders FANNIE MAE & FREDDIE MAC: Government Balks at Alvarez & Marsal FL 6801: Completes Sale of Assets to Z Capital Partners FOREST CITY: Moody's Affirms 'B2' Sr. Unsecured Debt Rating FOUNDATION HEALTHCARE: Revises 3 Million Units Prospectus G&Y REALTY: Assignee Seeks Dismissal of Involuntary Case GENERAL MOTORS: M.D. Pa. Judge Stays Proceedings in "Bloom" Suit GLC LIMITED: Dist. Court to Hear Clawback Suit v. Barry Switzer GLOBAL CLEAN: Reports $795K Net Loss in June 30 Quarter GRIDWAY ENERGY: Authorized to Sell Ziphany's Assets to JKMV AGQ HALCON RESOURCES: Moody's Lowers Corporate Family Rating to Caa1 HEI INC: Asserts Bid to Employ All Three Professionals Necessary HEI INC: Court Okays Feb. 5 Auction of Assets HEI INC: Hearing on Cash Collateral Use Continued Until Feb. 25 HLSS SERVICER: BlueMountain Capital Delivers Notice of Default HOLY HILL: Court Denies Bid to Employ Jaenam Coe as Counsel IBAHN CORP: Feb. 3 Hearing on Bid to Dismiss Chapter 11 Cases JAMES RIVER COAL: Sale of Mining Assets to Revelation Has Closed LANDS' END: Fourth Quarter Results No Impact on Moody's B1 Rating LDK SOLAR: Filed Amendments to Form T-3s LDK SOLAR: Unveils Results of EGM Held in Hong Kong LEHMAN BROTHERS: Former Trader Continues Fight for Bonus LIFE PARTNERS: Receives NASDAQ Delisting Notice after Ch.11 Filing MINERAL PARK: Plan Filing Date Extended to April 22 MISSION NEWENERGY: Had A$1.2 Million in Cash at Dec. 31, 2014 MONROE HOSPITAL: Says Assignment of Doctors' Pacts Permitted MOSS FAMILY: Can Use Fannie Mae Cash Collateral Until Dec. 31 MOSS FAMILY: Can Use Fifth Third's Cash Collateral Until Feb. 20 MOSS FAMILY: Can Use Horizon Bank's Cash Collateral Until June 30 NII HOLDINGS: Agrees to Sell Mexican Operations to AT&T NII HOLDINGS: NIU Holding's Voluntary Chapter 11 Case Summary NNN SIENA OFFICE: Wants Court to Dismiss Chapter 11 Case PACIFIC GOLD: Recurring Losses Raise Going Concern Doubt PATTERSON PARK: Fitch Affirms 'BB+' Rating on $12.6MM Bonds PENNSYLVANIA ECONOMIC: Fitch Lowers Rating on $169MM Bonds to 'BB' PLASTIC2OIL INC: Letter to Stockholders from CEO PLUSFUNDS GROUP: 2nd Cir. Flips Order Denying Bid to Reopen Case PRECISION MEDICAL: Meeting of Creditors Set for Feb. 10 PRECISION MEDICAL: Powers of Trustee Defined PROSPECT HOLDING: Moody's Affirms 'B2' Corporate Family Rating PROSPECT PARK: Judge Extends Deadline to Remove Suits to Feb. 3 PROVIDENT FUNDING: Moody's Affirms 'Ba3' Corporate Family Rating R&J LIMITED: Case Summary & 2 Largest Unsecured Creditors RARITY MANAGEMENT: Receiver to Sell Assets; Bids Due Feb. 27 REDONDO CONSTRUCTION: Court Rejects Motion in Compliance RESTORGENEX CORP: Ally Bridge Reports 9.4% Stake as of Dec. 31 REVEL AC: District Court Won't Halt Sale to Polo North SCOOTER STORE: Bankruptcy Case Transferred to Judge Silverstein SCRUB ISLAND: Judge Caryl E. Delano Appointed as Mediator SCRUB ISLAND: Vehicle Acquisition Financing Gets Interim Approval SHASTA ENTERPRISES: Brady Debunks Potential Conflict SHASTA ENTERPRISES: Jacobs Says It Shouldn't Be Disqualified SIGA TECHNOLOGIES: Has Until May 14 to Propose Chapter 11 Plan SIGA TECHNOLOGIES: Lease Decision Period Extended Until April 15 SOURCE HOME: Asks Court to Extend Deadline to Remove Suits ST MARY'S HOSPITAL: Urena and Faltas-Fouad Suits Remanded ST. CHARLES PARISH: Moody's Puts Ba1 Rating on Review for Downgrade STEARNS HOLDINGS: Moody's Affirms 'B2' Corporate Family Rating STEPHEN YELVERTON: Case vs. Siblings Won't Proceed as Class Suit SUPPLEMENTWAREHOUSE.COM: Case Summary & 20 Top Unsec. Creditors TRAVELPORT WORLDWIDE: Hikes Revolving Credit Facility by $25MM TURNER GRAIN: U.S. Trustee Appoints Creditors' Committee U.S. CELLULAR: Fitch Rates $225-Mil. Sr. 7-Year Loan 'BB+' U.S. COAL: Premium Finance Deal With IPFC Corp. Okayed U.S. FARATHANE: Moody's Assigns 'B2' Corporate Family Rating VERMILLION INC: Matthew Strobeck Held 7.3% Stake at Dec. 23 WET SEAL: Final DIP Hearing Set for Feb. 5 YARWAY CORP: Modifies Disclosure Statement, PI Panel Supports Plan [^] Large Companies With Insolvent Balance Sheet ********* AKBARI-SHAHMIRZADI: Court Won't Stay Order Approving Rival Plan --------------------------------------------------------------- Magistrate Judge William P. Lynch denied the emergency request of Nancy Akbari-Shahmirzadi for a limited stay pending her pro se appeal from Bankruptcy Judge David Thuma's Oct. 27, 2014 order confirming the First Amended Plan of Liquidation filed by Charlotte Leff, Executrix of the Estate of Jacoby, for Akbari. Akbari filed the Motion at the expiration of the 14-day period following the Confirmation Order, and the Leff Plan already went into effect, Judge Lynch said in his Jan. 7, 2015 Order available at http://is.gd/1coJI3from Leagle.com. Akbari is also taking an appeal from Judge Thuma's Order denying confirmation of her own exit Plan. The Troubled Company Reporter ran a story on the Court's Confirmation Order on Oct. 29, 2014. ALEXZA PHARMACEUTICALS: Initiates Phase 2a Study of AZ-002 ---------------------------------------------------------- Alexza Pharmaceuticals, Inc., has initiated a Phase 2a study of AZ-002 (Staccato alprazolam), which is being developed for the management of epilepsy in patients with acute repetitive seizures. ARS occurs in a subset of patients with epilepsy who regularly experience breakthrough seizures, despite treatment with a regular regimen of anti-epileptic drugs. "Our team has been working with some of the leading opinion leaders in the field of epilepsy to finalize our development strategy for AZ-002," said James V. Cassella, PhD, executive vice president, Research and Development, and chief scientific officer of Alexza. "We believe that AZ-002, if approved, could greatly benefit epilepsy patients who experience seizure emergencies like ARS." Dr. Cassella continued, "In previous clinical studies where we have dosed more than 100 subjects, Staccato alprazolam demonstrated excellent dose-proportionality, exhibited a median Tmax (time to peak plasma concentration) of 2 minutes, and was safe and well-tolerated." About Alexza Mountain View, California-based Alexza Pharmaceuticals, Inc., was incorporated in the state of Delaware on Dec. 19, 2000, as FaxMed, Inc. In June 2001, the Company changed its name to Alexza Corporation and in December 2001 became Alexza Molecular Delivery Corporation. In July 2005, the Company changed its name to Alexza Pharmaceuticals, Inc. The Company is a pharmaceutical development company focused on the research, development, and commercialization of novel proprietary products for the acute treatment of central nervous system conditions. Alexza Pharmaceuticals reported a net loss of $39.6 million in 2013, a net loss of $28.0 million in 2012 and a net loss of $40.5 million in 2011. The Company's balance sheet at Sept. 30, 2014, showed $65.8 million in total assets, $115 million in total liabilities and total stockholders' deficit of $48.8 million. ALLIANT HOLDINGS: Moody's Retains B3 CFR Over Increased Borrowing ----------------------------------------------------------------- Moody's Investors Service is maintaining the B3 corporate family rating and B3-PD probability of default rating of Alliant Holdings I, LLC (Alliant) following plans to borrow $85 million under a delayed draw term loan under its first-lien term loan credit facility. Net proceeds from the offering will be used to fund acquisitions. The transaction does not affect Alliant's corporate family rating or its debt ratings, which include a B2 rating on its first-lien revolver and term loan and a Caa2 rating on its senior unsecured notes. 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%. Giving effect to the delayed draw term loan, Alliant's ratings (and revised LGD assessments) include: Corporate family rating B3; Probability of default rating B3-PD. $100 million first-lien revolving credit facility rated B2 (to LGD3, 35% from LGD3, 34%); $1,045 million first-lien term loan rated B2 (to LGD3, 35% from LGD3, 34%); $450 million senior unsecured notes rated Caa2 (to LGD5, 88% from LGD5, 87%). Moody's has assigned the following rating (and LGD assessment): $85 million delayed draw term loan rated B2 (LGD3, 35%) The principal methodology used in these ratings was Moody's Global Rating Methodology for Insurance Brokers & Service Companies published in Februaury 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. ARS INVESTMENT: Case Summary & 7 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: ARS Investment Group, LLC 2967 Michelson Drive, Suite 625 Irvine, CA 92612 Case No.: 15-10329 Chapter 11 Petition Date: January 23, 2015 Court: United States Bankruptcy Court Central District of California (Santa Ana) Judge: Hon. Catherine E. Bauer Debtor's Counsel: Christopher C Barsness, Esq. BARTHCALDERON, LLP 333 City Boulevard West Ste 2050 Orange, CA 92868 Tel: 714-704-4828 Fax: 714-704-1513 Email: cbarsness@barthattorneys.com Total Assets: $1.34 million Total Liabilities: $978,384 The petition was signed by Alex Kodnegah, managing member. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb15-10329.pdf ASSOCIATED WHOLESALERS: Judge Extends Deadline to Remove Suits -------------------------------------------------------------- U.S. Bankruptcy Judge Kevin Carey has given Associated Wholesalers Inc. until April 7, 2015, to file notices of removal of lawsuits involving the company and its affiliates. About Associated Wholesalers Founded in 1962 and headquartered in Robesonia, Pennsylvania, Associated Wholesalers Inc. serviced 800 supermarkets, specialty stores, convenience stores and superettes with grocery, meat, produce, dairy, frozen foods and general merchandise/health and beauty care products. AWI, with distribution facilities in Robesonia, Pennsylvania, and York, Pennsylvania, served the mid- Atlantic United States. AWI is owned by its 500 retail members, who in turn operate supermarkets. AWI had 1,459 employees. White Rose Inc. is a food wholesaler and distributor serving the greater New York metropolitan area. The company traces its origins to 1886, when brothers Joseph and Sigel Seeman founded Seeman Brothers & Doremus to provide grocery deliveries throughout New York City. White Rose carries out its operations through three leased warehouse and distribution centers, two of which are located in Carteret, New Jersey, and one in Woodbridge, New Jersey. White Rose has 777 employees. Associated Wholesalers and its affiliates sought Chapter 11 bankruptcy protection on Sept. 9, 2014, to sell their assets under 11 U.S.C. Sec. 363 to C&S Wholesale Grocers, absent higher and better offers. The Debtors have sought joint administration of their Chapter 11 cases for procedural purposes, seeking to maintain all pleadings on the case docket for AWI Delaware, Inc., Bankr. D. Del. Case No. 14-12092. As of the Petition Date, the Debtors owe the Bank Group (consisting of lenders, Bank of America, N.A., Bank of American Securities LLC as sole lead arranger and joint book runner, Wells Fargo Capital Finance, LLC as joint book runner and syndication agent, and RBS Capita, as documentation agent) an aggregate principal amount of not less than $131,857,966 (inclusive of outstanding letters of credit), plus accrued interest. The Debtors estimate trade debt of $72 million. AWI Delaware disclosed $11,440 in assets and $125,112,386 in liabilities as of the Chapter 11 filing. Saul Ewing LLP and Rhoads & Sinon LLP are serving as legal advisors to the Debtors, Lazard Middle Market is serving as financial advisor, and Carl Marks Advisors is serving as restructuring advisor to AWI. Carl Marks' Douglas A. Booth has been tapped as chief restructuring officer. Epiq Systems serves as the claims agent. The Official Committee of Unsecured Creditors tapped to retain Hahn & Hessen LLP as its lead counsel; Pepper Hamilton LLP as its co-counsel; and Capstone Advisory Group, LLC, together with its wholly-owned subsidiary Capstone Valuation Services, LLC, as its financial advisors. The Troubled Company Reporter, on Nov. 5, 2014, reported that the Bankruptcy Court authorized Associated Wholesalers, which changed its name to AWI Delaware, Inc., prior to the approval of the sale, to sell substantially all of its assets, including their White Rose grocery distribution business, to C&S Wholesale Grocers, Inc. The C&S purchase price consists of the lesser of the amount of the bank debt, which totals about $18,100,000 and $152,110,000, plus other liabilities, which amount is valued at $193,900,000. C&S, according to Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, ended up paying $86.5 million more cash to be anointed as the winner at the auction. AWI Delaware notified the Bankruptcy Court on Nov. 12, 2014, that closing occurred in connection with the sale of their assets to C&S. AWI Delaware subsequently changed its name to ADI Liquidation, Inc., following the closing of the sale. ATLANTIC CITY: Moody's Lowers Water Revenue Debt Rating to B2 ------------------------------------------------------------- Moody's Investors Service has downgraded Atlantic City Municipal Utilities Authority's (NJ) water revenue debt to B2 from Ba1, and assigned a negative outlook. This action resolves the review for possible downgrade that Moody's initiated in December 2014. The authority currently has $18.4 million of outstanding. Summary Rating Rationale The downgrade to B2 reflects the authority's rapidly declining customer base from the contracting casino industry in Atlantic City, and the authority's governance relationship with the city of Atlantic City. These bonds are no longer rated at the same level as Atlantic City's GO bonds (now rated Caa1/negative) given the authority's separate revenue stream and low debt burden, and the city's more severe financial troubles. The B rating category indicates that the rated obligation is speculative and subject to high credit risk. The bonds are backed by a pledge of net water revenues and guaranteed by Atlantic City's GO. Outlook The negative outlook reflects continued, heightened risk to water revenue bondholders given recent signals that Atlantic City may pursue a sale of the water system, debt restructuring, and/or a bankruptcy filing. What Could Make The Rating Go Up -- An Atlantic City fiscal recovery plan that protects water revenue bondholders What Could Make The Rating Go Down -- Additional casino closures beyond Moody's projection of one to two within the next two years -- Further risk of the city filing for Chapter 9 bankruptcy -- Formal proposals or plans by the recently appointed Atlantic City Emergency Manager to sell or lease MUA assets without protecting water revenue bondholders Obligor Profile The authority is a relatively small system with $15.2 million of annual revenues. It collects 70% of its raw water from underground wells and the remainder from surface water at two reservoirs. Legal Security The bonds are secured by net water revenues and additionally by a general obligation guarantee pledge of the city, through a service contract. Principal Methodology The principal methodology used in this was US Municipal Utility Revenue Debt published in December 2014. AWI DELAWARE: Has Until April 7 to Make Lease-Related Decisions --------------------------------------------------------------- The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware extended the deadline by which ADI Liquidation, Inc., formerly known as AWI Delaware, Inc., et al. to assume or reject unexpired leases of nonresidential real property until April 7, 2015. As reported in the Troubled Company Reporter on Jan. 14, 2015, on Oct. 29, 2014, after an auction, the Court approved the sale of substantially all of the Debtors' assets to C&S Wholesale Grocers, Inc., or any one or more of its affiliates designated as a purchaser of any acquired asset at closing in accordance with an asset purchase agreement. Notably, the assets of Co-Op Agency, Inc. were excluded from the sale. The sale to the purchaser closed on Nov. 12, 2014. Co-Op is a party to two non-residential real property leases for leased property in Pennsylvania. The Debtors believe that other than the Co-Op Leases, they are not a party to any non-residential real property leases that have not already been rejected or assumed and assigned to the purchaser. Out of an abundance of caution, however, the motion seeks authority to extend the assumption/rejection deadline for any other unknown unexpired leases. About Associated Wholesalers Founded in 1962 and headquartered in Robesonia, Pennsylvania, Associated Wholesalers Inc. serviced 800 supermarkets, specialty stores, convenience stores and superettes with grocery, meat, produce, dairy, frozen foods and general merchandise/health and beauty care products. AWI, with distribution facilities in Robesonia, Pennsylvania, and York, Pennsylvania, served the mid-Atlantic United States. AWI is owned by its 500 retail members, who in turn operate supermarkets. AWI had 1,459 employees. White Rose Inc. is a food wholesaler and distributor serving the greater New York metropolitan area. The company traces its origins to 1886, when brothers Joseph and Sigel Seeman founded Seeman Brothers & Doremus to provide grocery deliveries throughout New York City. White Rose carries out its operations through three leased warehouse and distribution centers, two of which are located in Carteret, New Jersey, and one in Woodbridge, New Jersey. White Rose has 777 employees. Associated Wholesalers and its affiliates sought Chapter 11 bankruptcy protection on Sept. 9, 2014, to sell their assets under 11 U.S.C. Sec. 363 to C&S Wholesale Grocers, absent higher and better offers. The Debtors have sought joint administration of their Chapter 11 cases for procedural purposes, seeking to maintain all pleadings on the case docket for AWI Delaware, Inc., Bankr. D. Del. Case No. 14-12092. As of the Petition Date, the Debtors owe the Bank Group (consisting of lenders, Bank of America, N.A., Bank of American Securities LLC as sole lead arranger and joint book runner, Wells Fargo Capital Finance, LLC as joint book runner and syndication agent, and RBS Capita, as documentation agent) an aggregate principal amount of not less than $131,857,966 (inclusive of outstanding letters of credit), plus accrued interest. The Debtors estimate trade debt of $72 million. AWI Delaware disclosed $11,440 in assets and $125,112,386 in liabilities as of the Chapter 11 filing. Saul Ewing LLP and Rhoads & Sinon LLP are serving as legal advisors to the Debtors, Lazard Middle Market is serving as financial advisor, and Carl Marks Advisors is serving as restructuring advisor to AWI. Carl Marks' Douglas A. Booth has been tapped as chief restructuring officer. Epiq Systems serves as the claims agent. The Official Committee of Unsecured Creditors tapped to retain Hahn & Hessen LLP as its lead counsel; Pepper Hamilton LLP as its co-counsel; and Capstone Advisory Group, LLC, together with its wholly-owned subsidiary Capstone Valuation Services, LLC, as its financial advisors. The Troubled Company Reporter, on Nov. 5, 2014, reported that the Bankruptcy Court authorized Associated Wholesalers, which changed its name to AWI Delaware, Inc., prior to the approval of the sale, to sell substantially all of its assets, including their White Rose grocery distribution business, to C&S Wholesale Grocers, Inc. The C&S purchase price consists of the lesser of the amount of the bank debt, which totals about $18,100,000 and $152,110,000, plus other liabilities, which amount is valued at $193,900,000. C&S, according to Bill Rochelle and Sherri Toub, bankruptcy columnists for Bloomberg News, ended up paying $86.5 million more cash to be anointed as the winner at the auction. AWI Delaware notified the Bankruptcy Court on Nov. 12, 2014, that closing occurred in connection with the sale of their assets to C&S. AWI Delaware subsequently changed its name to ADI Liquidation, Inc., following the closing of the sale. AZIZ CONVENIENCE: GA Assigns Retention Agreement to Keen Summit --------------------------------------------------------------- GA Keen Realty Advisors, L.L.C., and Keen Summit Capital Partners LLC notified the Bankruptcy Court and interested parties that GA Keen has assigned to Keen Summit its rights and obligations under the retention agreement between Aziz Convenience Stores, L.L.C. and GA Keen. The retention agreement was approved on Dec. 18, 2014, pursuant to the Court's agreed order authorizing the employment of GA Keen Realty Advisors, L.L.C. as investment banker for the Debtor. In this relation, GA Keen and Keen Summit request that the Court approve the assignment of the retention agreement from GA Keen to Keen-Summit. The order also provides that the term of the agreement may be extended by mutual consent of the parties only if lender PlainsCapital Bank consents or by further order of the Court. Objection to the Retention Agreement Greenwich Investors XLV Trust 2013-1 has objected to the motion stating that retention agreement fail to state whether Keen is licensed to sell Texas real estate. The undersigned believes that Keen is not licensed as a broker or salesperson under Texas' Real Estate Licensing Act. As reported in the Troubled Company Reporter on Dec. 17, 2014, the Debtor filed a motion to employ GA Keen Realty Advisors, LLC, as its investment banker. The parties' retention agreement provides for Keen to have the sole and exclusive authority to act as the Debtor's advisor in connection with the solicitation and consummation of each "transaction" and to have the exclusive right to sell, market and respond to solicitations regarding the Debtor's properties. The agreement defines "transaction" as either a sale or a financing; provided, however, a transaction does not include (a) the acquisition of the property by lender Plains Capital Bank by means of a credit bid, (b) the foreclosure of any property or the properties by Plains, or (c) the restructure of the amounts owed to the Plains. If authorized, the agreement would be effective from the date of execution through the confirmation of the Debtor's reorganization plan, the closing of the last property transaction approved by the Court or May 31, 2015, whichever comes first. The Debtor proposes to pay Keen as follows: a. Engagement Fee: Keen will earn a non-refundable advisory and consulting fee of $50,000. Fifty percent of the engagement fee will be subject to set off against the final transactional fees due and owing to Keen. b. Sale Fee: Upon the consummation of a sale of all or a portion of the Debtor's property, Keen will be entitled to a fee, payable in cash from only the sale proceeds equal to 3 percent of gross proceeds. With respect to The 200 Acres3: i. In the event that The 200 Acres are sold by credit bid to the Secured Mortgagee, or for an amount that exceeds the credit bid of the Secured Mortgagee, but such excess is not at least $50,000, then GA Keen Realty will have earned a fee of $50,000 for marketing the 200 Acres, payable from the Secured Mortgagee. Such fee will be payable by the Secured Mortgagee upon the closing of the Transaction. ii. In the event that The 200 Acres are sold to a third party for an amount that exceeds the credit bid of the Secured Mortgagee plus the $50,000, but not for an amount that is enough for Debtor to pay Keen a full three-percent fee, then, in that limited circumstance, Keen will have earned and will be paid no less $50,000 dollars plus the remaining proceeds of sale up to a full 3 percent fee for a total fee of no more than 3 percent. c. Financing Fee. Upon the closing of a financing transaction, Keen will be entitled to a fee payable in cash from the financing proceeds equal to 3 percent of the gross proceeds. d. Restructuring Fee. Upon the Debtor confirming a plan of reorganization in which its indebtedness to the Lender is restructured, Keen will be entitled to a fee, payable in cash equal to $150,000. e. Foreclosure/Credit-Bid Fee. If Lender acquires all of the Properties by means of a credit bid or foreclosure, then Keen will be entitled to a fee equal to $150,000. f. Litigation Support: Keen will not charge hourly litigation support fees in support of a transaction. However, Keen will charge hourly litigation support fees in connection with time spent on any contested matter unrelated to a transaction. To the extent Keen bills the Debtor pursuant to this provision, Keen will file fee applications pursuant to Sec. 330 of the Bankruptcy Code. g. Expenses: The Debtor will be responsible for all of Keen's reasonable out-of-pocket expenses incurred by Keen in this engagement. A reasonable estimate of all such expenses will be included in a marketing budget that Keen will prepare prior to the hearing on the application and will be approved by the Lender and the Bankruptcy Court prior to entry of an order approving Keen's retention. The Debtor agrees to indemnify Keen from losses, claims, damages, expenses and liabilities as incurred, related to or arising out of activities performed. The Debtor requests that Keen's compensation and the fee structure be subject to the standard of review set forth in Sec. 328(a) of the Bankruptcy Code, and not any other section thereof, including the "reasonableness" standard set forth in Sec. 330 of the Bankruptcy Code. To the best of the Debtor's knowledge, neither Keen, nor any of its principals or employees has any connection with the Debtor, its creditors, the office of the United States Trustee for the Southern District of Texas or any other party with an interest in the instant Chapter 11 case. About Aziz Convenience Aziz Convenience Stores, L.L.C., owner of convenience stores with gas pumps in Texas, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Tex. Case No. 14-70427) in its hometown in McAllen, Texas, on Aug. 4, 2014, without stating a reason. The Debtor owns properties in Mission, San Juan, Pharr, McAllen, Sullivan City, Edinburg, La Joya, Donna, Alamo, Alton, Edinburg, all in Texas. It appears that none of the Debtor's convenience stores are on leased property as the schedule of unexpired leases only shows the contract with Valero LP. The Debtor is represented by William A Csabi, Esq., from Harlingen, Texas. BAPTIST HOME: Can File Chapter 11 Plan Until January 28 ------------------------------------------------------- The deadline for Baptist Home of Philadelphia dba Deer Meadows Retirement Community and its debtor-affiliates to file with the Bankruptcy Court a proposed plan of reorganization expires tomorrow, absent a Court-ordered extension. The U.S. Bankruptcy Court for the Eastern District of Pennsylvania had further extended the Debtor's exclusive periods to: a) file a Chapter 11 plan until Jan. 28, 2015; and b) solicit acceptances of that plan until March 27, 2015. The Debtors said they have made good faith progress toward reorganization, as reflected by the filed plan and disclosure statement. As a result of the consummated sale of the home, all creditors stand to receive payment in full, or substantially in full, of their allowed claims. Deer Meadows Property LP was named stalking-horse bidder for the Debtors' home. The sale closed on Dec. 1, 2014, after the home and Deer Meadows had obtained all of the necessary regulatory and licensing approvals. On the Closing date, the home ceased operations of its facility. The sale generated net sale proceeds in excess of $30 million, according to the Debtors. BROADVIEW NETWORKS: BlackRock Reports 8.6% Stake as of Dec. 31 -------------------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, BlackRock, Inc., disclosed that as of Dec. 31, 2014, it beneficially owned 883,150 shares of common stock of Broadview Networks Holdings Inc. representing 8.8 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/Tg6wv2 About Broadview Networks Rye Brook, N.Y.-based Broadview Networks Holdings, Inc., is a communications and IT solutions provider to small and medium sized business ("SMB") and large business, or enterprise, customers nationwide, with a historical focus on markets across 10 states throughout the Northeast and Mid-Atlantic United States, including the major metropolitan markets of New York, Boston, Philadelphia, Baltimore and Washington, D.C. Ernst & Young LLP, in New York, N.Y., issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2011. The independent auditors noted that the Company has in excess of $300 million of debt due on or before September 2012. "In addition, the Company has incurred net losses and has a net stockholders' deficiency." The Company reported a net loss of $11.9 million for 2011, compared with a net loss of $18.8 million for 2010. Broadview Networks' balance sheet at Sept. 30, 2014, showed $206.09 million in total assets, $204.44 million in total liabilities and $1.64 million in total stockholders' equity. * * * In the July 23, 2012, edition of the Troubled Company Reporter, Moody's Investors Service downgraded Broadview Networks Holdings, Inc. Corporate Family Rating (CFR) to Caa3 from Caa2 and the Probability of Default Rating (PDR) to Ca from Caa3 in response to the company's announcement that it has entered into a restructuring support agreement with holders of roughly 70% of its preferred stock and roughly 66-2/3% of its Senior Secured Notes. The company is expected to file a pre-packaged Chapter 11 Plan of Reorganization or complete an out of court exchange offer. As reported by the TCR on July 25, 2012, Standard & Poor's Ratings Services lowered its corporate credit rating on Broadview to 'D' from 'CC'. "This action follows the company's announced extension on its revolving credit facility. We expect to lower the issue- level rating on the notes to 'D' once the company files for bankruptcy, or if it misses the Sept. 1, 2012 maturity payment on the notes," S&P said. C. WONDER: Meeting to Form Creditors' Panel Set for Jan. 30 ----------------------------------------------------------- Andy Vara, Acting United States Trustee for Region 3, will hold an organizational meeting on Jan. 30, 2015, at 10:00 a.m. in the bankruptcy case of C. Wonder, LLC, et al. The meeting will be held at: United States Trustee's Office One Newark Center, 1085 Raymond Blvd. 21st Floor, Room 2106 Newark, NJ 07102 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. About C. Wonder C. Wonder LLC is a specialty retailer created by Tory Burch's ex-husband, Christopher Burch. The company and four of its affiliates filed for bankruptcy on January 22, 2015 (Lead Case No. 15-11127, Bankr. N.J.). The petition was signed by Stephen Marotta, chief restructuring officer. Cole, Schotz, Meisel Forman & Leonard, P.A.'s Michael D. Sirota, Esq., Warren A. Usatine, Esq., and Felice R. Yudkin, Esq. have been tapped as the Debtors' counsel. Marotta, Gund, Budd & Dzera, LLC serves as crisis management services provider to the Debtors. CACHE INC: Hires Lawyers to Help Prepare Bankruptcy Filing ---------------------------------------------------------- Stephanie Gleason and Lillian Rizzo, writing for Daily Bankruptcy Review, reported that women's dress and formal wear retailer Cache Inc. has hired restructuring lawyers to help the company prepare a bankruptcy filing, according to people familiar with the matter, adding to the growing list of mall retailers to eye Chapter 11 bankruptcy in the last two months. According to the DBR report, citing the people, Cache has hired Pachulski Stang Ziehl & Jones to help prepare a bankruptcy filing with the U.S. Bankruptcy Court in Wilmington, Del. The company has been negotiating with its lender, Salus Capital Partners , but has yet to reach any sort of agreement, one of these people said, the report related. Cache, Inc., operates 236 women's apparel specialty stores under the trade name "Cache." On December 4, 2014, New York-based Cache announced that it has received an inquiry from a third party regarding a potential sale of the Company. CAESARS ENTERTAINMENT: Can Continue Surety Bond Program ------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, authorized Caesars Entertainment Operating Company, Inc., et al., to continue, renew and supplement their surety bond program, including the maintenance and posting of collateral. 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. Appaloosa Investment Limited, et al., owed $41 million on account of 10 percent second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against Caesars Entertainment Operating Company, Inc. (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. 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. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Kirkland & Ellis serves as the Debtors' counsel. Alixpartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. CAESARS ENTERTAINMENT: Creditors Debate Bankr. Court Choice ----------------------------------------------------------- Peg Brickley, writing for Daily Bankruptcy Review, reported that creditors of Caesars Entertainment Corp.'s largest unit lined up to challenge the gambling company's bid to work through its $18.4 billion debt load in a bankruptcy court in Chicago. According to the DBR report, senior bondholders that are owed billions support the big casino operator's restructuring and its choice of a Chicago court; other creditors do not. From the banks at the top of the debt heap to unsecured creditors at the bottom, other creditors say Caesars was looking for a friendly court to sign off on its Chapter 11 restructuring, a product of an allegedly tainted process, the DBR report said. Bill Rochelle, bankruptcy columnist for Bloomberg News, reported that Caesars concedes that Delaware is not inconvenient, a significant concession because the federal statute says that selection of venue turns on the interest of justice or the convenience of the parties. Caesars, according to Mr. Rochelle, contends Illinois is preferable because law in the Seventh Circuit Court of Appeals in Chicago is more lenient in allowing a Chapter 11 plan to provide immunity from lawsuits for the non-bankrupt Caesars parent. Without releases for the parent, CEOC’s proposed reorganization plan won’t work. Most of Caesars' creditors, hoping for Delaware, believe it’s more convenient, Mr. Rochelle said. The creditors argue that CEOC’s proposed plan will preserve potentially billions in value for the owners while creditors go begging, Mr. Rochelle added. Mr. Rochelle further reported that U.S. Bankruptcy Judge Kevin Gross, who is the judge with the first-filed case, is given by bankruptcy rules the right to decide where the reorganization will be held. Judge Gross said he won’t rule on whether the involuntary petition was properly filed, the Bloomberg report added. Mr. Rochelle noted that even though Judge Gross won't initially decide the question, fixing the effective date of bankruptcy on Jan. 12 or Jan. 15 will be significant because the earlier date increases the possibility of setting aside a lien granted on casino cash. 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. Appaloosa Investment Limited, et al., owed $41 million on account of 10 percent second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against Caesars Entertainment Operating Company, Inc. (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. 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. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Kirkland & Ellis serves as the Debtors' counsel. Alixpartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. CAESARS ENTERTAINMENT: Has Interim Authority to Pay PACA Claims --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, gave Caesars Entertainment Operating Company, Inc., et al., interim authority to pay all claims arising under the Perishable Agricultural Commodities Act of 1930 to vendors. Any objections to entry of the final order must be filed on or before Feb. 9, 2015, at 4:00 p.m., prevailing Central Time. In the event no objections to the entry of a final order on the motion are timely received, the Court may enter a final order without need for a final hearing. 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. Appaloosa Investment Limited, et al., owed $41 million on account of 10 percent second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against Caesars Entertainment Operating Company, Inc. (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. 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. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Kirkland & Ellis serves as the Debtors' counsel. Alixpartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. CAESARS ENTERTAINMENT: Has Interim OK to Pay $10.7-Mil. to Vendors ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, gave Caesars Entertainment Operating Company, Inc., et al., interim authority to pay certain prepetition claims of critical vendors in an amount not to exceed $10,700,000, and establish procedures to address any vendor that repudiate or otherwise refuse to honor contractual obligations to the Debtors. Any objections or responses to entry of the final order must be filed on or before Feb. 9, 2015, at 4:00 p.m., prevailing Central Time. In the event no objections to entry of a final order on the motion are timely received, the Court may enter a final order without need for the final hearing. 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. Appaloosa Investment Limited, et al., owed $41 million on account of 10 percent second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against Caesars Entertainment Operating Company, Inc. (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. 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. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Kirkland & Ellis serves as the Debtors' counsel. Alixpartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. CD INTERNATIONAL: Files Late 2013 Report ---------------------------------------- CD International Enterprises, Inc., recently filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended Sept. 30, 2013. A copy of the Form 10-K is available at http://is.gd/iGmbJf MaloneBailey, LLP, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company suffered losses from operations and has a working capital deficiency. The Company reported a net loss of $26.9 million on $1.95 million of revenues for the year ended Sept. 30, 2013, compared with a net loss of $90.79 million on $5.92 million of revenues in 2012. The Company's balance sheet at Sept. 30, 2013, showed $12.5 million in total assets, $42.7 million in total liabilities, and a stockholders' deficit of $30.2 million. Based in Deerfield Beach, Florida, CD International sources, produces, and distributes industrial products in Asia, Europe, Australia, and the Americas. The company also provides business and financial consulting services to public and private companies in China and the U.S. CLOUD MEDICAL: GHB CPAs PC Express Going Concern Doubt ------------------------------------------------------ Cloud Medical Doctor Software Corporation filed with the U.S. Securities and Exchange Commission in early January its annual report on Form 10-K for the fiscal year ended Sept. 30, 2014. GBH CPAs, PC, expressed substantial doubt about the Company's ability to continue as a going concern, citing the Company has has suffered recurring losses from operations and has an accumulated deficit. The Company reported a net loss of $1.71 million on $1.34 million of revenues for the fiscal year ended Sept. 30, 2014, compared with a net loss of $631,000 on $517,000 of revenues in fiscal 2013. The Company's balance sheet at Sept. 30, 2014, showed $1.16 million in total assets, $710,000 in total liabilities, and stockholders' equity of $448,000. A copy of the Form 10-K is available at: http://is.gd/65iWfe About Cloud Medical Henderson, Nev.-based Cloud Medical Doctor Software Corporation, formerly National Scientific Corporation, provide the Cloud-MD Office, a Cloud Based, 5010 and ICD-10 compliant, suite of medical software and services, designed by healthcare analysts and programmers for healthcare providers, that produces Actionable Information to help Independent Physician Practices, New Care Delivery Models (ACO). Cloud-MD Acquisition Services provides medical supply acquisition services that are integrated with Cloud-MD Office’s Medical and Pharmaceutical Inventory Management software and offers a full range of medical, surgical, and laboratory supply products and equipment for medical offices and surgery centers. CRAFT INTERNATIONAL: Parties Agree to Shut Company -------------------------------------------------- Katy Stech, writing for The Wall Street Journal, reported that Taya Kyle, widow of "American Sniper" Chris Kyle, and creditors of Craft International LLC, the SWAT team training business Mr. Kyle founded, have reached a settlement under which the company will shut down. According to the Journal, the settlement also provides that the Kyle family can live rent-free until Oct. 30 in their Midlothian, Texas, home, and Ms. Kyle will get the rights to Craft's skull-shaped logo. The logo, imprinted on Craft apparel like T-shirts, patches and coffee mugs, drove the company's merchandise sales and is surrounded by these words: "Despite what your Momma told you. . . violence does solve problems." As previously reported by The Troubled Company Reporter, Ms. Kyle sued Craft International, saying that the company has been illegally using Mr. Kyle's image to sell merchandise and training services without her permission. According to the report, Mrs. Kyle asserted that she and her children "have the right to control the use of Chris Kyle's name, likeness and image." About Craft International Craft International LLC, dba The Craft, in Dallas, Texas, filed a voluntary Chapter 11 petition (Bankr. N.D. Tex. Case No. 14-32605) on May 30, 2014. Craft is a consulting and training company founded by the late U.S. Marine Chris Kyle. The Hon. Stacey G. Jernigan presides over the case. Seymour Roberts, Jr., at Neligan Foley LLP, serves as the Debtor's general counsel. Sumner, Schick & Pace, LLP, serves as the Debtor's litigation counsel. Craft estimated assets of $50,000 to $100,000 and liabilities of $1 million to $10 million. The petition was signed by Steven Young, Craft's chief executive officer and manager. CUBIC ENERGY: Amends Quarterly Report to Correct Accounting Error ----------------------------------------------------------------- Cubic Energy, Inc., filed an amended quarterly report with the U.S. Securities and Exchange Commission for the period ended Dec. 31, 2013, to give effect to a change in accounting for warrants at fair value. The warrants liability related to the warrants issued in connection with the issuance of the Notes and the previously outstanding warrants issued to Wells Fargo Energy Capital, Inc. These warrants include certain anti-dilution provisions, which provide for exercise price adjustments in the event that any common stock equivalents are issued at an effective price per share that is less than the exercise price of the warrants. The Company recorded the fair value of the WFEC warrants as of July 1, 2013, as an out of period adjustment to income and a corresponding liability. The warrants issued in connection with the issuance of the Notes were issued during the quarter ended Dec. 31, 2013, and are recorded as of the issuance date. In addition, the Company's asset retirement obligation has been restated, due to changes in estimates of the ARO related to the properties acquired by the Company during the quarter ended Dec. 31, 2013. As restated, the Company reported net income attributable to common stockholders of $15.4 million on $4.75 million of total revenues for the three months ended Dec. 31, 2013, compared with net income of $9.93 million on $5.04 million of total revenues as originally reported. Cubic Energy's restated balance sheet at Dec. 31, 2013, showed $136 million in total assets, $135 million in total liabilities, $988 in redeemable preferred stock and $412,000 in total stockholders' equity. The Company previously disclosed $141 million in total assets, $137 million in total liabilities and $3.66 million in total stockholders' equity. A full-text copy of the Form 10-Q/A is available for free at: http://is.gd/HtCBib About Cubic Energy Cubic Energy, Inc., headquartered in Dallas, Texas, is an independent upstream energy company engaged in the development and production of, and exploration for, crude oil and natural gas. Its oil and gas assets and activities are concentrated in Louisiana. BDO USA, LLP, expressed substantial doubt about the Company's ability to continue as a going concern, citing that the Company has suffered recurring losses from operations, has violated covenants of its debt agreements, has a working capital deficit and has a net capital deficiency. The Company reported net income of $9.11 million on $15.9 million of total revenues for the fiscal year ended June 30, 2014, compared with a net loss of $5.93 million on $3.84 million of total revenues last year. The Company's balance sheet at June 30, 2014, showed $125 million in total assets, $127 million in total liabilities, $988 in redeemable preferred stock and a stockholders' deficit of $1.68 million. D J SIMPSON: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: D J Simpson Company aka The Simpson Coatings Group, Inc. aka D.J. Simpson Company, Inc. aka D.J. Simpson Company 111 South Maple Ave. South San Francisco, CA 94080 Case No.: 15-30083 Chapter 11 Petition Date: January 23, 2015 Court: United States Bankruptcy Court Northern District of California (San Francisco) Judge: Hon. Hannah L. Blumenstiel Debtor's Counsel: Matthew D. Metzger, Esq. BELVEDERE LEGAL, PC 1777 Borel Pl. #314 San Mateo, CA 94402 Tel: (415)513-5980 Email: mmetzger@belvederelegal.com info@belvederelegal.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Timothy E. Simpson, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/canb15-30083.pdf DCP MIDSTREAM: Moody's Lowers Jr. Subordinated Bond Rating to Ba1 ----------------------------------------------------------------- Moody's Investors Service downgraded DCP Midstream, LLC's senior unsecured rating to Baa3 from Baa2, junior subordinate bond rating to Ba1 from Baa3 and its commercial paper rating to Prime-3 from Prime-2. The ratings were placed on review for further downgrade. Moody's affirmed DCP Midstream Operating LP (DPM) Baa3 senior unsecured and Prime-3 commercial paper ratings and changed its outlook to negative from stable. "The downgrade and review for further downgrade of DCP reflect the significant deterioration in natural gas liquids prices and resultant sharply higher leverage given the company's largely unprotected exposure to liquids prices," said Terry Marshall, Moody's Senior Vice President. "DPM's negative outlook reflects its increasing exposure to NGL prices in 2016 as its hedges roll off. The review for downgrade of DCP will consider measures that DCP may take to bolster its capital structure in the current environment and the level of support that DCP's owners, Phillips 66 (A3 stable) and Spectra Energy (Baa2 stable) may provide to DCP." Downgrades: Issuer: DCP Midstream, LLC Junior Subordinated Regular Bond/Debenture, Downgraded to Ba1 from Baa3 Senior Unsecured Commercial Paper, Downgraded to P-3 from P-2; Placed Under Review for further Possible Downgrade Senior Unsecured Regular Bond/Debenture, Downgraded to Baa3 from Baa2; Placed Under Review for further Possible Downgrade Outlook Actions: Issuer: DCP Midstream Operating LP Outlook, Changed To Negative From Stable Issuer: DCP Midstream, LLC Outlook, Changed To Rating Under Review From Stable Affirmations: Issuer: DCP Midstream Operating LP Senior Unsecured Commercial Paper, Affirmed P-3 Senior Unsecured Regular Bond/Debenture, Affirmed Baa3 Senior Unsecured Shelf, Affirmed (P)Baa3 Ratings Rationale DCP's Baa3 senior unsecured rating considers DCP's large and diverse, directly held asset base in the natural gas and NGL midstream space, as well as its ownership and control of DPM (1% GP, 22% LP and IDRs) and its midstream asset base, which provides DCP with about 40% of DPM's distributable cash flow. DCP takes considerable commodity price risk on both its directly generated cash flow and that of DPM, for which it acts as hedge counterparty on most of DPM's hedges and contract counterparty on a portion of DPM's fee-based contracts. Both companies are subject to volumetric risk, which is mitigated by their significant presence in the most active US resource plays. DCP's ratings reflect very high leverage (debt to EBITDA in excess of 7x in 2015 including Moody's adjustments) given the significant drop in NGL prices, and the structural subordination of distributions from DPM to debt of that entity. DCP pays substantial tax and regular distributions to its owners, although dividends have been curtailed from time-to-time when DCP's business conditions or financial requirements proved challenging. The owners have also bought assets (each owner bought one third of both the Southern and Sand Hills pipelines) from DCP in the face of worsening financial conditions at DCP. DCP sells about 35% of its NGL's to Phillips 66 and Chevron Phillips Chemical Company, LLC (A3 positive), which is 50%-owned by Phillip 66. DPM's Baa3 senior unsecured rating reflects its standalone credit profile of Ba1 and one notch of uplift from its coordinated relationship with DCP and DCP's owners. DPM's rating reflects its growing size and scale in the natural gas and NGL midstream space with significant assets in key resource plays including the Mid-Continent, Permian, Rockies and the Eagle Ford. DPM's cash flow will grow through 2016 as both recent and anticipated asset drop downs and organically grown assets ramp up. Cash flow stability benefits from a combination of fee-based and hedged revenues that total about 90% of anticipated 2015 volumes, but this coverage will decline to about 70% in 2016 when DPM becomes less hedged. A portion of DPM's fee-based contracts are with DCP, as are most of its hedges. DCP's liquidity is adequate primarily because of its $2.0 billion revolving credit facility that matures in May 2019 and acts as a backstop to the company's $2.0 billion commercial paper (CP) program, providing funding for working capital needs and short-term borrowing capacity for growth capital expenditures. As of September 30, 2014, $1.3 billion of the revolver was available, after deducting CP outstandings. Most of DCP's cash flow after maintenance capital of approximately $170 million is paid to its owners in the form of distributions. Moody's expect the proceeds of dropdowns to be used to reduce debt. The revolver has a leverage covenant of a maximum 5x debt/EBITDA, which at September 30, 2014 was 3.6x (typical of bank agreements, debt/EBITDA is adjusted for partial year EBITDA). However, Moody's expect the company will need to negotiate covenant relief with its banks in 2015, given NGL prices. DPM's liquidity is adequate primarily because of its $1.25 billion revolving credit facility that matures in May 2019 and acts as a backstop to the company's $1.25 billion commercial paper program Typical of most MLPs, all free cash flow after maintenance capital is distributed to LP unit holders and the GP, leaving the long-term funding of growth capital expenditures reliant on debt and equity capital markets. As of September 30, 2014 the revolver was fully available, but for $1 million of letters of credit. The revolver has a leverage covenant of a maximum 5x debt/EBITDA, which at September 30 registered 3.4x (debt/EBITDA is adjusted for partial year EBITDA). Moody's expect DPM to be in compliance with its financial covenant throughout 2015. DPM's negative outlook reflects an increasing exposure to NGL pricing in 2016 in a weak NGL market. A rating downgrade would be considered should DPM significantly debt finance its growth or materially deviate from its policy of owning and operating midstream assets with minimal cash flow volatility. The rating could be downgraded if debt/EBITDA appears unlikely to decline toward 4.5x as cash flow from organic capital expenditures and drop downs ramp up. A rating upgrade would be considered as further scale is achieved with a continued growth in fee-based midstream energy assets and it appears that debt/EBITDA is sustainable below 3.5x. DCP Midstream Partners, LP and DCP Midstream, LLC are affiliated midstream energy companies headquartered in Denver, Colorado. The principal methodology used in these ratings was Global Midstream Energy published in December 2010. DEB STORES: Creditors' Panel Hires Cooley LLP as Lead Counsel ------------------------------------------------------------- The Official Committee of Unsecured Creditors of Deb Stores Holding LLC and its debtor-affiliates seeks authorization from the Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware to retain Cooley LLP as lead counsel, nunc pro tunc to Dec. 12, 2014. The Committee requires Cooley LLP to: (a) attend the meetings of the Committee; (b) review financial and operational information furnished by the Debtors to the Committee; (c) investigate and determine the value of unencumbered assets; (d) analyze and negotiate the budget and the terms of the debtor-in-possession financing; (e) assist in the efforts to sell assets of the Debtors in a manner that maximizes the value for creditors; (f) analyze any proposed Chapter 11 plan; (g) review and investigate the liens of purported secured parties; (h) review and investigate prepetition transactions in which the Debtors and their insiders were involved; (i) in accordance with the Final DIP Order, investigate and pursue, on behalf of the Debtors' estates, the Debtors' (i) commercial tort claims and (ii) causes of action that may exist under chapter 5 of the Bankruptcy Code ("Avoidance Actions") against parties that are the direct or indirect beneficiaries of certain amended letters of credit that were issued on behalf of the Debtors on or about Oct. 7, 2011; (j) in accordance with the Final DIP Order, advise and represent the Committee designee appointed to the panel overseeing the pursuit of Avoidance Actions; (k) confer with the Debtors' management, counsel and financial advisors; (l) review the Debtors' schedules, statements of financial affairs and business plan; (m) advise the Committee as to the ramifications regarding all of the Debtors' activities and motions before this Court; (n) file appropriate pleadings on behalf of the Committee; (o) review and analyze the Debtors' investment banker's work product and report to the Committee; (p) provide the Committee with legal advice in relation to the Chapter 11 cases; (q) prepare various applications and memoranda of law submitted to the Court for consideration; and (r) perform such other legal services for the Committee as may be necessary or proper in these proceedings. Cooley LLP will be paid at these hourly rates: Jay R. Indyke, partner $990 Cathy Hershcopf, partner $895 Richard A. Kanowitz, partner $895 Michael Klein, associate $710 Robert B. Winning, associate $560 Jeremy Rothstein, associate $375 Rebecca Goldstein, paralegal $285 Cooley LLP will also be reimbursed for reasonable out-of-pocket expenses incurred. Cathy Hershcopf, partner of Cooley LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Pursuant to the Appendix B Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under United States Code by Attorneys in Larger Chapter 11 Cases (the "2013 UST Guidelines"), Cooley LLP disclosed: -- Cooley LLP did not represent the Committee in the 12 months prepetition. Cooley LLP has in the past represented, currently represents, and may represent in the future certain Committee members and their affiliates in their capacities as official committee members in other chapter 11 cases; and -- the Committee has approved Cooley's prospective budget and staffing plan for the period from Dec. 12, 2014 through May 2, 2015. The Court for the District of Delaware will hold a hearing on the application on Feb. 11, 2015, at 2:00 p.m. Objections, if any, are due Jan. 27, 2015, at 4:00 p.m. Cooley LLP can be reached at: Cathy Hershcopf, Esq. COOLEY LLP The Grace Building 1114 Avenue of the Americas New York, NY 10036-7798 Tel: +1 (212) 479-6138 Fax: +1 (212) 479-6275 E-mail: chershcopf@cooley.com 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. DEB STORES: Creditors' Panel Hires Drinker Biddle as Co-counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Deb Stores Holding LLC and its debtor-affiliates seeks authorization from the Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware to retain Drinker Biddle & Reath LLP as co-counsel, nunc pro tunc to Dec. 12, 2014. The Committee requires Drinker Biddle to: (a) attend the meetings of the Committee; (b) review financial and operational information furnished by the Debtors to the Committee; (c) investigate and determine the value of unencumbered assets; (d) analyze and negotiate the budget and the terms of the debtor-in-possession financing; (e) assist in the efforts to sell assets or equity of the Debtors in a manner that maximizes the value for creditors; (f) analyze the proposed chapter 11 plan ad negotiate a recovery for the holders of general unsecured claims; (g) review and investigate the liens of purported secured parties; (h) review and investigate prepetition transactions in which the Debtors and their insiders were involved; (i) in accordance with the Final DIP Order, investigate and pursue, on behalf of the Debtors' estates, the Debtors' (i) commercial tort claims and (ii) causes of action that may exist under chapter 5 of the Bankruptcy Code ("Avoidance Actions") against parties that are the direct or indirect beneficiaries of certain amended letters of credit that were issued on behalf of the Debtors on or about Oct. 7, 2011; (j) in accordance with the Final DIP Order, advise and represent the Committee designee appointed to the panel overseeing the pursuit of Avoidance Actions; (k) confer with the Debtors' management, counsel and financial advisors; (l) review the Debtors' schedules, statements of financial affairs and business plan; (m) advise the Committee as to the ramifications regarding all of the Debtors' activities and motions before this Court; (n) file appropriate pleadings on behalf of the Committee; (o) review and analyze the Debtors' financial professionals' work product and report to the Committee on that analysis; (p) provide the Committee with legal advice in relation to the chapter 11 cases; (q) prepare various applications and memoranda of law submitted to the Court for consideration; and (r) perform such other legal services for the Committee as may be necessary or proper in these proceedings. Drinker Biddle will be paid at these hourly rates: Robert K. Malone, partner $750 Frank F. Velocci, partner $635 Howard A. Cohen, partner $585 Marita S. Erbeck, associate $540 Brian P. Morgan, associate $485 Jennifer M. Roussil, associate $430 Andrew Groesch, paralegal $340 Drinker Biddle will also be reimbursed for reasonable out-of-pocket expenses incurred. Robert K. Malone, partner of Drinker Biddle, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Pursuant to the Appendix B Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed Under United States Code by Attorneys in Larger Chapter 11 Cases (the "2013 UST Guidelines"), Drinker Biddle disclosed that: -- Drinker Biddle has agreed to cap our firm's rates at $750 per hour, -- Drinker Biddle did not represent the Committee in the 12 months prepetition, -- Drinker Biddle may represent in the future certain Committee members and their affiliates in their capacities as official committee members in other chapter 11 cases, and -- the Committee has approved Drinker Biddle's prospective budget and staffing plan for the period from Dec. 12, 2014 through May 31, 2015. The Court for the District of Delaware will hold a hearing on the application on Feb. 11, 2015, at 2:00 p.m. Objections, if any, are due Jan. 27, 2015, at 4:00 p.m. Drinker Biddle can be reached at: Robert K. Malone, Esq. DRINKER BIDDLE & REATH LLP 600 Campus Dr. Florham Park, NJ 07932-1047 Tel: (973) 549-7080 Fax: (973) 360-9831 E-mail: Robert.Malone@dbr.com 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. DEB STORES: Creditors' Panel Taps Zolfo Cooper as Consultants ------------------------------------------------------------- The Official Committee of Unsecured Creditors of Deb Stores Holding LLC and its debtor-affiliates seeks authorization from the Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware to retain Zolfo Cooper, LLC as bankruptcy consultants and financial advisors, nunc pro tunc to Dec. 12, 2015. The Committee requires Zolfo Cooper to: (a) advise the Committee regarding the sale of the Debtors' business or assets, including communicating with potential bidders, evaluating bids and attending the sale auction and sale hearing; (b) monitor the Debtors' cash flow adn operating performance, including: - comparing actual financial and operating results to plans, - evaluating the adequacy of financial and operating controls, - tracking the status of the Debtors/Debtors professionals' progress relative to developing and implementing programs such as preparation of a business plan, identifying and disposing of non-productive assets, and other such activities, - preparing periodic presentations to the Committee summarizing findings and observations resulting from Zolfo Cooper's monitoring activities; (c) analyze and comment on operating and cash flow projections, business plans, operating results, financial statements, other documents and information provided by the Debtors/Debtors' professionals, and other information and data pursuant to the Committee's request; (d) advise the Committee concerning interfacing with the Debtors, other constituencies and their respective professionals; (e) prepare for an attend meetings of the Committee and subcommittees thereof; (f) analyze claims and perform investigations of potential preferential transfers, fraudulent conveyances, related- party transactions and such other transactions as may be requested by the Committee; (g) analyze and advise the Committee about the Debtors' proposed Plan of Reorganization, the underlying Business Plan, including the related assumptions and rationale, and the related Disclosure Statement; and (h) provide other services as requested by the Committee. Zolfo Cooper will be paid at these hourly rates: Managing Directors $795-$925 Professional Staff $265-$790 Support Personnel $60-$310 Zolfo Cooper will also be reimbursed for reasonable out-of-pocket expenses incurred. David MacGreevey, managing director of Zolfo Cooper, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The Court for the District of Delaware will hold a hearing on the application on Feb. 11, 2015, at 2:00 p.m. Objections, if any, are due Jan. 27, 2015, at 4:00 p.m. Zolfo Cooper can be reached at: David MacGreevey Zolfo Cooper, LLC The Grace Building 1114 Avenue of the Americas, 41st Floor New York, NY 10036-7798 Tel: +1 (212) 561-4187 Fax: +1 (212) 213 1749 E-mail: dmacgreevey@zolfocooper.com 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. DTE ENERGY: Fitch Affirms 'BB+' Rating on Jr. Subordinated Notes ---------------------------------------------------------------- Fitch Ratings has affirmed the long-term Issuer Default Rating (IDR) of DTE Energy Co. DTE) at 'BBB', and those of its regulated subsidiaries, DTE Electric Co. (DECo) and DTE Gas Co. (DTE Gas) at 'BBB+'. The Rating Outlook for all entities is Stable. More than $8 billion of consolidated long-term debt is affected by thee rating action. DTE's 'F2' short-term rating is largely derived from the stable cash flows from its higher rated utility subsidiaries. The Stable Outlook reflects the predictable earnings and cash flows of DTE's two regulated utility companies. DECo is the primary driver of consolidated cash flows and comprised approximately 79% of consolidated EBITDAR for the last 12 months (LTM) ending Sept. 30, 2014. DTE's current ratings reflect the low risk of its regulated operations, a large capex program focused on growing utility and pipeline investments, a constructive regulatory environment, and an improving economy. Current ratings assume a reasonable outcome in DECo's pending general rate case (GRC) and a timely return on invested capital. Credit concerns include a high level of parent-only debt (approximately $1.8 billion), moderate regulatory lag, and the future effects of more stringent environmental regulations on DECo's predominantly coal-fired power generation portfolio. The ratings also consider the solid operating performance of the company's regulated and non-regulated operations, and the expectation that the company will continue to effectively manage the risks associated with its growing pipeline investments. Fitch's considers DTE's increasing investments in the Gas Storage and Pipeline (GSP) business segment as favourable due to long-term contractual arrangements, low regulatory risk and higher returns on equity (ROE). Key Rating Drivers First GRC Filing in Over 4 Years: In December 2014, DECo filed its 2015 GRC with the Michigan Public Service Commission (MPSC) requesting a $370 million rate increase predicated on a 10.75% ROE and a 50% equity layer. The filing is based on a forward-looking test year and the rate increase primarily reflects $2.8 billion in new net plant additions. The new plant additions include the planned purchase of the 732MW natural gas-fired Renaissance Power Plant from LS Power Group for $240 million as well as the planned purchase of a 300MW Michigan-based simple-cycle natural gas-fired power plant. DECo plans to self-implement rates on or after July, 1, 2015, subject to refund, and a decision by the MPSC is expected by December. Fitch has conservatively modeled a 10% ROE for DECO which approximates recent industry averages. The expiration of securitization charges, renewable surcharge reductions and a continued low-commodity environment provides DECo sufficient headroom to seek base rate increases without significant pressure on retail rates. In DECo's GRC filing, net rates for residential customers are expected to increase modestly by 3% while rates for commercial and large industrial customers are expected to decrease by 7% and 18%, respectively. For the LTM period ending Sept. 30, 2014, DECo's earned ROE was approximately 10.7%, slightly above its current authorized ROE of 10.5%. New Infrastructure Recovery Mechanism (IRM) Filing at DTE Gas: In November, DTE Gas filed with the MPSC to double the pace of its pipe replacement program to 160 miles a year, resulting in an annual investment of $130 million per year beginning in January 2016, an annual increase of $50 million over current levels. Fitch expects a decision by the MPSC by the end of this year and DTE Gas expects new rates effective July 2016. Fitch views the adoption of the IRM by the MPSC as part of DTE Gas' 2012 GRC settlement as indicative of continued regulatory support. In Fitch's view, the IRM reduces future regulatory lag leading to timely rate base and earnings growth and obviates the need for GRC filings through 2016. Potential Elimination of Retail Open Access in MI: Recently, talks about customer choice have centered on eliminating retail open access and moving Michigan's electricity market to full regulation after a previous bill introduced in the U.S. House to raise the customer choice cap beyond 10% did not get any traction. If retail open access was eliminated it could result in customers coming back to DECo amid tightening capacity markets in MISO, necessitating the need for new generation investments such as the planned purchase of the 732MW gas fired Renaissance Power Plant. Fitch views the elimination of customer choice as positive for DECo. New MI Energy Legislation Expected in 2015: In December 2014, Michigan Governor Rick Snyder broadly outlined the state's future energy policy goals by 2025 and indicated he would like to have new energy legislation in place this year when current Renewable Portfolio Standards and Energy Efficiency targets end. The governor emphasized the increased use of cleaner natural gas and wind resources while reducing the state's reliance on less efficient coal generation and indicated he would seek to increase RPS and EE targets through 2025. DTE recovers its renewable investments under an annual renewable surcharge subject to MPSC approval. DTE expects natural gas-fired generation along with renewables to approximate up to 50% of total generating capacity by 2030, a material improvement from 10% in 2013 and in line with the governor's energy policy goals. Fitch views DTE's investments in renewable energy as favorable and, via the renewable energy surcharge, provides earnings growth in between GRC proceedings. Constructive Regulatory Environment: Fitch views the regulatory environment in Michigan as constructive. The current regulatory framework allows for full pass-through of fuel and purchased power costs, reasonable ROE, forward-looking test years and a timely resolution of rate proceedings. In addition, DECo and DTE Gas have the ability to file rate cases with self-implementation if the ROE dips below the authorized level (currently at 10.5%). Furthermore, a revenue-decoupling mechanism and IRM at DTE Gas helps to reduce exposure to regulatory lag. Growth in Diversified Businesses; GSP Segment Growing: Fitch expects a strong growth in DTE's non-utility businesses, which will be driven by the GSP and Power and Industrial (P&I) business segments. DTE plans to spend $1.2 billion through 2017 on new pipeline and gathering investments in the Marcellus and Utica Shale basins to meet growing shipper demand, levels approximately 61% higher than the preceding three-year period. DTE is currently moving forward with plans to build and increase capacity of its Nexus and Vector pipelines to move Utica and Southwest Marcellus shale gas to markets in the U.S. Midwest, including Chicago, Ohio and Michigan, and Ontario, Canada. DTE completed a FERC pre-filing for the Nexus pipeline in the fourth quarter of 2014 (4Q'14) and has an in-service target date during 4Q'17. Agreements with several local distribution companies (LDCs) and key shippers have been executed. DTE is also making investments to expand capacity on its Bluestone and Millennium pipelines in the Marcellus Shale basin. The Bluestone expansion is expected to be completed by the 2Q'16. Fitch view's DTE's increasing investments in the FERC-regulated GSP segment as favorable due to higher ROE, lower regulatory risk, and long-term contractual arrangements. The P&I segment is supported by long-term power purchase agreement contracts with limited commodity risk. DTE's GSP and P&I segments comprised 11% and 10% of consolidated net income for 2013, respectively, and Fitch expects these business segments may contribute up to 15% each of consolidated net income by 2019. High Capex: Capital investments are expected to total approximately $7.2 billion through 2017, levels approximately 20% higher than the preceding three year period. Of the total capex, DECo plans to spend $4.7 billion, primarily on new generation, distribution investments and environmental compliance. DTE Gas plans to spend $1 billion on distribution system enhancements including storage and transportation projects. Due to the large capex program, both the regulated utilities will need equity support from the parent through 2017 to help maintain their balanced capital structures. In addition, growing natural gas pipeline investments will render DTE to be FCF negative in the intermediate term, in Fitch's view. DTE will need to fund the deficit by a roughly 50% mix of debt and equity to maintain the present balanced capital structure. Fitch anticipates annual equity issuances at DTE totaling roughly $300 million per year through 2017 through its Dividend Reinvestment Programs (DRIP) and employee pension programs and approximately $300 million increase in parent only long-term debt per annum. Modest Weakness in Credit Metrics: Fitch forecasts DTE's credit metrics to remain commensurate with Fitch's 'BBB' IDR guidelines for utility companies but anticipates the large capital spending program to modestly pressure leverage metrics. Fitch calculates DTE's EBITDAR coverage ratio at 4.9x for the LTM period ending Sept. 30, 2014 and leverage as measured by debt-to-EBITDAR at 3.9x. Going forward, Fitch expects consolidated debt-to-EBITDAR to increase to 4.2x through 2017 due to investments associated with the large capex program and moderate regulatory lag. Fitch also expects funds from operations (FFO)/Debt metrics to average 23% through 2017, in line with management's FFO/Debt target of 20% to 22%. For the LTM ending Sept. 30, 2014, DECo's EBITDAR coverage was 6.7x and leverage, as measured by debt-to-EBITDAR, was 3.2x. Going forward, Fitch expects EBITDAR coverage ratios to remain above 6x and anticipates debt-to-EBITDAR to increase modestly to 3.4x through 2017 due to increased capital investments. For the LTM ending Sept. 30, 2014, DTE Gas' EBITDAR coverage ratio was 7x and debt-to-EBITDAR was 3x. Going forward, Fitch expects EBITDAR coverage measures to remain above 5x and anticipates debt-to-EBITDAR to weaken to approximate 4x through 2017 due to the large capex program. Sufficient Liquidity and Manageable Maturities: DTE has approximately $1.2 billion of total liquidity available under its respective credit agreements as of Sept. 30 2014, including $60 million of cash and cash equivalents. DTE's consolidated $1.8 billion five-year unsecured revolving credit facilities mature in 2018 and are composed of $1.2 billion at DTE, $300 million at DECo, and $300 million at DTE Gas. The facilities have a maximum debt-to-capitalization covenant of 65% and, as of Sept. 30, 2014, DTE was in compliance with consolidated debt-to-capitalization of 50.2% under its credit agreement. Debt maturities over the next four years are manageable and are as follows (excluding securitization maturities): $150 million in 2015, $451 million in 2016, no maturities in 2017, and $400 million in 2018. Maturing debt will be funded through a combination of internal cashflows and external debt refinancings. RATING SENSITIVITIES DTE Energy, Inc. Future developments that either individually or combined could lead to positive rating actions include: -- Sustained debt-to-EBITDAR in the 3.50x-3.75x range. Future developments that either individually or combined could lead to negative rating actions include: -- Sustained debt-to-EBITDAR above 4.25x. Fitch expects consolidated credit metrics to be pressured through 2017 as a result of high capex at the utilities. Persistently weak consolidated leverage metrics beyond Fitch's current forecast period could lead to negative rating action for DTE. DTE Electric Co. Future developments that either individually or combined could lead to positive rating actions include: -- The elimination of DECO's retail open-access program; -- Sustained Debt-to-EBITDAR at 3.5x or below. Future developments that either individually or combined could lead to negative rating actions include: -- An unexpected outcome in DECO's pending GRC that limits the utility's ability to recover cost of capital investments in a timely manner; -- An adverse change in Michigan's regulatory climate; -- Sustained debt-to-EBITDAR metrics in the 3.75x-4.00x range. DTE Gas Co. Future developments that either individually or combined could lead to positive rating actions include: -- A constructive outcome in DTE Gas' pending IRM filing; -- Sustained debt-to-EBITDAR metrics at 3.5x or below. Future developments that either individually or combined could lead to positive rating actions include: -- An unexpected adverse change in the regulatory environment that limits the utility's ability to recover cost of capital investments in a timely manner; -- Sustained debt-to-EBITDAR metrics in the 3.75x-4.00x range. Fitch has affirmed these ratings with a Stable Outlook: DTE -- Long-term IDR at 'BBB'; -- Senior unsecured notes at 'BBB'; -- Junior subordinated notes at 'BB+'; -- Short-term IDR at 'F2'; -- Commercial paper at 'F2'. DTE Gas Co. -- Long-term IDR at 'BBB+'; -- Senior secured at 'A'; -- Short-term IDR at 'F2'; -- Commercial paper at 'F2'. DECO -- Long-term IDR at 'BBB+'; -- Senior secured at 'A' '; -- Short-term IDR at 'F2'; -- Commercial paper at 'F2' DUBLIN SQUARE: Case Summary & 17 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Dublin Square Authentic Irish Pub & Grill, LLC 554 Fourth Avenue San Diego, CA 92101 Case No.: 15-00361 Chapter 11 Petition Date: January 25, 2015 Court: United States Bankruptcy Court Southern District of California (San Diego) Debtor's Counsel: John L. Smaha, Esq. SMAHA LAW GROUP, APC 2398 San Diego Avenue San Diego, CA 92110 Tel: (619) 688-1557 Fax: (619) 688-1558 Email: jsmaha@smaha.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Samme G. Ladckie, manager. A list of the Debtor's 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/casb15-00361.pdf DYNAVOX INC: Joint Plan of Liquidation Declared Effective --------------------------------------------------------- Dyna Vox Liquidating Estates notified the Bankruptcy Court that the effective date of its First Amended Joint Plan of Liquidation occurred on Jan. 16, 2015. The Debtors related that all conditions precedent to occurrence of the Effective Date of the Plan have been satisfied or waived. In this relation, these deadlines were set: 1. Feb. 15, 2015, for administrative claims arising between Aug. 1, 2014, and the Effective Date; and 2. March 17, 2015, for final fee application for professional fee claim; Judge Peter J. Walsh, on Dec. 22, 2014, entered an order confirming the First Amended Joint Plan Of Liquidation of Dynavox Inc., and its debtor affiliates. The confirmation order also constitutes a final decree closing the cases of DynaVox Systems Holdings LLC (Case No. 14-10790) and DynaVox Intermediate LLC (Case No. 14-10785) as of Dec. 22. Pursuant to the Plan, no distributions will be made to Vestar Capital Partners, Park Avenue Equity Partners, L.P., or the other parties to the Tax Receivable Agreement dated April 21, 2010, between Dynavox Inc., Systems Holdings, and members holding membership interests in Systems Holdings, and all of the Debtors' obligations, if any, under the TRA will be extinguished on the Effective Date. To resolve the Texas Comptroller's objection, the Confirmation Order provides that the Debtors and the Liquidating Estates will timely file any tax returns with, and will pay all taxes due, to the State of Texas, and will continue to timely file those returns and pay all those taxes due to the State of Texas until no longer required to do so pursuant to Texas law. The failure to make a payment when due under the Plan will constitute an event of default. As previously reported by The Troubled Company Reporter, the Debtors filed with the Bankruptcy Court a liquidating plan following the sale of substantially all of their assets to Tobii Technology AB for $18 million. All classes of claims under the Plan are unimpaired and holders of the claims are deemed to accept the treatment of their claims. A full-text copy of the First Amended Disclosure Statement dated Nov. 17, 2014, is available at: http://bankrupt.com/misc/DYNAVOXds1117.pdf About Dynavox Inc. DynaVox Intermediate LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 14-10785) on April 6, 2014. Two of its affiliates, DynaVox Inc. and DynaVox Systems Holdings LLC, also filed for bankruptcy (Case Nos. 14-10791 and 14-10790) the following day. The Debtors estimated assets and debts of at least $10 million. Cousins, Chipman & Brown, LLP, serves as the Debtors' counsel. Judge Peter J. Walsh presides over the case. DynaVox Inc. (OTC: DVOX) is a holding company with its headquarters in Pittsburgh, Pennsylvania, whose primary operating entities are DynaVox Systems LLC and Mayer-Johnson LLC. DynaVox provides speech generating devices and symbol-adapted special education software to assist individuals in overcoming their speech, language and learning challenges. The Court approved the sale of DynaVox's business for $18 million to Tobii Technology AB from Danderyd, Sweden. The price fully pays $14.5 million in secured debt owing to JEC-BR Partners LLC, a venture between FEC-BR Partners LLC and JEC Capital Partners LLC. In an order dated Jan. 7, 2015, Judge Brendan L. Shannon transferred the Chapter 11 cases to the Hon. Laurie Selber Silverstein for all proceedings and dispositions. ESP RESOURCES: Incurs $734,000 Net Loss in Third Quarter -------------------------------------------------------- ESP Resources, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $734,000 on $3.03 million of net sales for the three months ended Sept. 30, 2014, compared to a net loss of $1.32 million on $2.38 million of net sales for the same period in 2013. For the nine months ended Sept. 30, 2014, the Company reported a net loss of $2.15 million on $8.81 million of net sales compared to a net loss of $4.66 million on $7.90 million of net sales for the same period a year ago. As of Sept. 30, 2014, the Company had $5.04 million in total assets, $9.89 million in total liabilities and a $4.84 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/AVfMCw About ESP Resources The Woodlands, Texas-based ESP Resources, Inc., through its subsidiaries, manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry and also provides services for the upstream, midstream and downstream sectors of the energy industry, including new construction, major modifications to operational support for onshore and offshore production, gathering, refining facilities and pipelines designed to optimize performance and increase operators' return on investment. ESP Resources reported a net loss of $5.23 million on $10.6 million of net sales for the year ended Dec. 31, 2013, as compared with a net loss of $5.08 million on $17.0 million of net sales in 2012. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company has incurred net losses through Dec. 31, 2013, and has a working capital deficit as of Dec. 31, 2013. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ETRADE FINANCIAL: Moody's Puts 'Ba3' CFR on Review for Upgrade -------------------------------------------------------------- Moody's Investors Service has placed the ratings of E*TRADE Financial Corporation (ETFC) (Ba3 senior) on review for upgrade. At the same time, Moody's affirmed the ratings of E*TRADE Bank (Ba1 deposits) and changed the bank's rating outlook to stable from positive. The rating actions follow ETFC's announcement that it has received regulatory approval to operate E*TRADE Bank at a Tier 1 leverage ratio of 9.0% and to realign its organizational structure by moving its two broker-dealer subsidiaries (E*TRADE Securities and E*TRADE Clearing) out from under E*TRADE Bank, which will allow the broker-dealer subsidiaries to pay a dividend to the parent company of approximately $430 million in the first quarter of 2015. Moody's has taken the following rating actions: E*TRADE Financial Corporation (ETFC) Issuer rating, Ba3 on review for upgrade Senior unsecured rating, Ba3 on review for upgrade Senior unsecured shelf rating, (P)Ba3 on review for upgrade Subordinated shelf rating, (P)B1 on review for upgrade Preferred shelf rating, (P)B2 on review for upgrade Preferred shelf noncumulative rating, (P)B3 on review for upgrade E*TRADE Bank Long-term bank deposit rating, affirmed at Ba1 Short-term bank deposit rating, affirmed at non-prime Long-term bank other senior obligations (OSO) rating, affirmed at Ba2 Short-term bank other senior obligations (OSO) rating, affirmed at non-prime Bank financial strength rating, affirmed at D+ Issuer rating, affirmed at Ba2 Outlook, changed to Stable from Positive RATINGS RATIONALE Moody's said the transfer of the two broker-dealers is credit positive for holding company creditors of ETFC, since the broker-dealers' ownership by an intermediate holding company directly under ETFC will simplify and enhance the distribution of capital generated by those entities up to ETFC. Presently, the two broker-dealers are subsidiaries of E*TRADE Bank, and ETFC must obtain approval from its bank regulators in order to extract dividends from E*TRADE Bank in order to service its holding company debt. Under the revised corporate structure, ETFC plans to distribute approximately $430 million in excess capital from the two broker-dealers up to ETFC in the first quarter of 2015. ETFC also anticipates introducing quarterly distributions from the broker-dealers thereafter, as well as dividends from E*TRADE Bank equivalent to its net income from the previous quarter, subject to regulatory approval. Moody's said that in reviewing ETFC for upgrade, it will evaluate the potential magnitude and utilization of increased distributions up to ETFC, including the potential for ETFC to significantly reduce its corporate debt. During its review, Moody's will also assess the liquidity of the broker dealers, the prospects for further improvements in ETFC's financial performance and the maturation of its enterprise risk management framework. Moody's said that it considers the transfer of the two broker-dealers (which will reduce the bank's tier 1 leverage ratio close to the new 9.0% minimum stipulated by its regulators, from 10.6% at December 2014) to be credit negative for E*TRADE Bank since it will not retain direct ownership of their earnings capacity. As a result, the rating agency changed the ratings outlook for the bank to stable from positive. Moody's affirmed the bank's ratings despite this credit-negative event because of the underlying improvements in the bank's financial strength in recent years, and Moody's expectation that regulators will continue to closely monitor its capital adequacy, profitability and liquidity, and will intervene to enhance the level of support provided to it by ETFC if necessary. The methodologies used in these ratings were Global Banks published in July 2014, and Global Securities Industry Methodology published in May 2013. EXIDE TECHNOLOGIES: Watchdog Says Plan Unfair to Jr. Bondholders ---------------------------------------------------------------- Andrew R. Vara, Acting U.S. Trustee for Region 3, complained that Exide Technologies has not cured any of the deficiencies of its reorganization plan and disclosure statement and while failing to cure those deficiencies, the plan support agreement makes clear that "retail" holders of the Debtor's senior notes -- those who are neither accredited investors or qualified institutional buyers -- will be frozen out of (a) the distribution of New Exide Common Stock to be issued on the effective date of the plan, and (b) the Rights Offering for sale of (i) New First Lien High Yield Notes and (ii) New Second Lien Covertible Notes. Instead of receiving New Exide Common Stock and being permitted to participate in the Rights Offering, Retail Note holders will receive only the still-undetermined (or stillundisclosed) Senior Notes Alternative Distribution Property, which is of unknown and perhaps dubious value, the U.S. Trustee further complains. This disparate treatment within a class of creditors renders the Plan unconfirmable, the U.S. Trustee asserts. About Exide Technologies Headquartered in Princeton, New Jersey, Exide Technologies (NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and distributes lead acid batteries and other related electrical energy storage products. Exide first sought Chapter 11 protection (Bankr. Del. Case No. 02-11125) on April 14, 2002 and exited bankruptcy two years after. Matthew N. Kleiman, Esq., and Kirk A. Kennedy, Esq., at Kirkland & Ellis, and James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their successful restructuring. Exide returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-11482) on June 10, 2013. Exide disclosed $1.89 billion in assets and $1.14 billion in liabilities as of March 31, 2013. Exide's international operations were not included in the filing and will continue their business operations without supervision from the U.S. courts. For the new case, Exide has tapped Anthony W. Clark, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, and Pachulski Stang Ziehl & Jones LLP as counsel; Alvarez & Marsal as financial advisor; Sitrick and Company Inc. as public relations consultant and GCG as claims agent. Schnader Harrison Segal & Lewis LLP was tapped as special counsel. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler LLP and Morris, Nichols, Arsht & Tunnell LLP as co-counsel. Zolfo Cooper, LLC serves as its bankruptcy consultants and financial advisors. Geosyntec Consultants was tapped as environmental consultants to the Committee. Robert J. Keach of the law firm Bernstein Shur as fee examiner has been appointed as fee examiner. He has hired his own firm as counsel. * * * In November 2014, the Bankruptcy Court terminated Exide's exclusive period to propose a Chapter 11 plan. The Court ordered that any party-in-interest, including the Official Committee of Unsecured creditors may file and solicit acceptance of a Chapter 11 Plan. Exide already has a plan of reorganization in place. Under that Plan, (a) Reorganized Exide's debt at emergence will comprise: (i) an estimated $225 million Exit ABL Revolver Facility; (ii) $264.1 million of New First Lien High Yield Notes; (iii) $283.8 million of New Second Lien Convertible Notes. The Debtor's non-debtor European subsidiaries are also expected to have approximately $23 million; (b) The New Second Lien Convertible Notes will be convertible into 80% of the New Exide Common Stock on a fully diluted basis; and (c) New Exide Common Stock would be allocated as follows: 15.0% to Holders of Senior Secured Note Claims after conversion of the New Second Lien Convertible Notes into New Exide Common Stock; 3.0% on account of the DIP/Second Lien Conversion Funding Fee; and 2.0% on account of the DIP/Second Lien Backstop Commitment Fee. Exide has entered into an amended and restated plan support agreement with holders of a majority of the principal amount of its senior secured notes. A full-text copy of the Disclosure Statement dated Nov. 17, 2014, is available at http://bankrupt.com/misc/EXIDEds1117.pdf In December 2014, Judge Kevin Carey denied the request of Exide shareholders for appointment of an official equity holders' committee. The shareholders have objected to the Plan. FANNIE MAE & FREDDIE MAC: Government Balks at Alvarez & Marsal -------------------------------------------------------------- Charles J. Cooper, Esq., at Cooper & Kirk, PLLC, on behalf of Fairholme Funds, Inc., et al., delivered a Notice to the Honorable Margaret M. Sweeney this week to advise her that Fairhome has engaged Alvarez & Marsal as a financial advisor and wants these six A&M professionals: -- Robert Corso, -- Mark McMahon, -- Maria Nizza, -- Nikhil Rupani, -- Christo Tzankov, and -- John Campbell, to have access to confidential discovery materials in Fairholme v. U.S. (Ct. Fed. Cl. Case No. 13-465C). The Government, Mr. Cooper relates, has balked at these six Alvarez & Marsal professionals having access to confidential discovery materials. The details about the Government's objections are unknown at this time. Alvarez & Marsal is, of course, one of the world's leading financial advisory firms in corporate restructuring and forensic accounting matters. The competence and independence of its professionals is unquestioned -- except by the Government in this discrete matter. For more than a decade, editors for Turnarounds & Workouts, published by Beard Group, Inc., has recognized A&M as a premiere financial advisory firm. Professionals who follow Fairhome and others' litigation against Fannie Mae, Freddie Mac, the FHFA and Treasury will recall that A&M prepared a Liquidation Analysis for GSO Capital Partners, LP, in Mar. 2014 -- a copy is posted at http://is.gd/Iw6mWq-- opining based on Fannie and Freddie's public filings that the GSEs are solvent can can return value to shareholders in the event of a liquidation. If that's the basis of the Government's objection, it appears specious. In an earlier dispute about who shouldn't be granted access to confidential discovery materials, the Government supplied Judge Sweeney with (x) an Affidavit by Melvin Melvin L. Watt, the current Director of the Federal Housing Finance Agency, saying that disclosure of secret documents would set off a chain of volatile and unpredictable reactions . . . that could not be contained and (y) an affidavit by Dr. Michael Stegman, Counselor to the Secretary for Housing Finance Policy, saying that disclosure could set off a chain of volatile and unpredictable reactions in the markets. Hopefully, in response to the Government's objection A&M professionals obtaining access to confidential discovery materials, Fairholme will proffer affidavits or other evidence countering those statements. If Fairhome doesn't, Judge Sweeney has made it pretty clear that she accepts those uncontroverted statements as true at this juncture, and, unwilling to destabilize markets, she will again conclude that A&M's professionals shouldn't be granted access to the secret documents. Judge Sweeney has scheduled a Status Conference for 10:00 a.m. on Wed., Jan. 28 in Washington, D.C., and it appears that A&M's professional's access to confidential discovery materials is the substance of the Wednesday morning Status Conference. FL 6801: Completes Sale of Assets to Z Capital Partners ------------------------------------------------------- FL 6801 Spirits, LLC announced that the company and Z Capital Partners, the private-equity fund manager that acquired most of its assets, closed on the sale on Jan. 14, 2015. Z Capital bought the company's assets, including the Canyon Ranch Hotel & Spa in Miami Beach, for $21.6 million. It emerged as the winning bidder at an auction held in August last year, beating out rival bidders North Beach Development, LLC and 360 Vox LLC. 360 Vox LLC, owner of Enchantment Resort in Sedona, Arizona, was the stalking horse bidder, offering $12 million for the assets. Z Capital had said in December that the hotel, now known as Carillon Hotel & Spa will be the first project of its new venture to create "a premier, luxury flag with exclusive locations around the world." About FL 6801 Spirits FL 6801 Spirits LLC, a wholly owned subsidiary of Lehman Brothers Holdings Inc. and three of its wholly owned subsidiaries filed voluntary Chapter 11 petitions, seeking bankruptcy protection for their condominium hotel property in Miami Beach. The affiliates are FL 6801 Collins North LLC, FL 6801 Collins Central LLC, and FL 6801 Collins South LLC. FL Spirits' Canyon Ranch Living Hotel and Spa is a luxury full-service, ocean front condominium hotel located at the site of the old Carillon Hotel in Miami Beach, Florida. The current operator of the hotel, Canyon Ranch Living, is not a debtor, and operations at the property are expected to continue without interruption. FL Spirits and the three affiliates companies have sought joint administration, with pleadings to be maintained at FL 6801's case docket (Bankr. S.D.N.Y. Lead Case No. 14-11691). FL Spirits has tapped Togut, Segal & Segal LLP as general bankruptcy counsel, Shutts & Bowen LLP as special real estate counsel, CBRE, Inc., as real estate broker, and Prime Clerk as claims and notice agent. Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Lehman's Chapter 11 plan became effective on March 6, 2012. FOREST CITY: Moody's Affirms 'B2' Sr. Unsecured Debt Rating ----------------------------------------------------------- Moody's Investors Service revised Forest City Enterprises. Inc's rating outlook to positive from stable and affirmed its outstanding B2 senior unsecured debt rating following improvement in coverage ratio and a favorable trend in its leverage metrics. In the same rating action, Moody's assigned shelf ratings to Forest City's new debt securities registration. The following rating was affirmed with a positive outlook: Forest City Enterprises, Inc. senior unsecured rating at B2 The following ratings were assigned with a positive outlook: Senior unsecured shelf at (P) B2 Senior subordinate shelf at (P) B3 Junior Subordinate shelf at (P) B3 Preferred stock shelf at (P) Caa1 Preferred Stock Non-cumulative shelf at (P) Caa1 Ratings Rationale The positive rating outlook reflects improving trends in key credit metrics including fixed charge coverage, secured leverage and net debt/EBITDA. The company has announced its intention to convert to a REIT, expected by January 1st 2016. The transition plan includes additional non-core asset sales and proceeds will likely be used to pay down some of the outstanding debt. These measures, if successfully executed, would meaningfully improve Forest City's leverage and credit profile. The two most significant credit developments for Forest City in recent quarters have been its portfolio repositioning, changing the mix of assets, and the joint venture arrangements for some large ongoing projects. In 2014, Forest City's joint venture activity increased meaningfully, mainly due to transactions with Greenland USA and Arizona State Retirement System. The former will invest in the Pacific Park project (previously known as Atlantic Yards) and the latter will participate in multi-family projects. These initiatives reduce the firm's current and future exposure to large new development projects, but development as a proportion of gross assets is still high. Forest City's core asset portfolio mainly consists of high quality assets in high barrier to entry urban locations. Operational performance for the stabilized assets in the portfolio remains strong with high occupancy levels and steady rent growth. In the first nine months of 2014, office assets accounted for 34% of NOI, followed by retail and multifamily at about 27% each. Moody's expect the multi-family income contribution to increase as many of the projects under construction/in development are residential assets. Forest City's portfolio mix, in terms of geography, has changed over the last few quarters. New York assets accounted for almost 35% of net operating income (NOI) in the first nine months of 2014, relative to 30% in the 12 month period ended January 2013. In the same timeframe, the proportion of NOI from non-core markets declined to 13%from 17%. Forest City's outstanding debt, on a pro-rata basis, has declined to $6.7 billion at 3Q2014 from $8.3 billion at YE2012. Net Debt/EBITDA has improved to 11.4 x from 13.1x in the same period but is still meaningfully high than the 8.0-10.0x range expected for B-rated companies. The company's proposed deleveraging and lease up of new projects will have a favorable impact on its leverage ratio over the next few quarters. Fixed charge coverage, which improved to1.6x from 1.4x in the same period would also benefit from lower debt levels and the refinancing of upcoming maturities at lower rates. An upgrade of Forest City's ratings will be predicated upon i) net debt/EBITDA at or below 10.0x, ii) fixed charge coverage remaining above 1.6x on a consistent basis and iii) a continued reduction in development exposure. Moody's notes that Forest City's revolving line of credit matures in February 2016, not including the one year extension option. The company's ability to manage its liquidity sources will also be a key credit consideration. The rating outlook would be changed to stable from positive if there is a deterioration in the fixed charge coverage metric. A downgrade could also result from net debt/EBITDA remaining above 11.0x. A material rise in the development pipeline or any liquidity/leasing challenges would also put pressure on the ratings. The principal methodology used in this rating was Global Rating Methodology for REITs and Other Commercial Property Firms published in July 2010. Forest City Enterprises, Inc. [NYSE: FCE] is a national real estate company principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. At September 30, 2014 Forest City's assets totaled $9.8 billion and its equity was $1.7 billion, on a pro-rata basis. FOUNDATION HEALTHCARE: Revises 3 Million Units Prospectus --------------------------------------------------------- Foundation Healthcare, Inc., amended its preliminary prospectus on Form S-1 relating to the offering of 3,000,000 units at a price per Unit of $ [ ], with each Unit consisting of one share of the Company's common stock and one warrant to purchase 0.5 of one share of the Company's common stock at an exercise price of $[ ] per Warrant Share. Eighty-five percent of the Shares included in the Units and of the Warrant Shares acquirable upon exercise of the Warrants will be newly issued shares of the Company's common stock offered by the Company and 15% will be existing shares of its common stock offered by selling stockholders. The Company will not receive any of the proceeds from the sale of the Shares or Warrant Shares acquirable upon exercise of the Warrants being sold by the selling stockholders. The Warrants will expire on [ ], 2018. The Shares and the Warrants are immediately separable and will be issued separately. No fractional Warrants will be issued. The Company's common stock is quoted on the OTCQB marketplace under the symbol "FDNHD" until Jan. 29, 2015, as the result of the Company's Reverse Split. Beginning on Jan. 30, 2015, the Company's common stock will resume trading on the OTCQB marketplace under the symbol "FDNH." On Jan. 8, 2015, the Company effected a 1-for-10 reverse stock split of its outstanding common stock. The last reported sale price of the Company's common stock on the OTCQB on Jan. 21, 2015, was $3.65 per share. There is no established public trading market for the Warrants, and the Company does not expect a market to develop. In addition, the Company does not intend to apply for listing of the Warrants on any national securities exchange or other nationally recognized trading system. About Foundation Healthcare Oklahoma-based Foundation Healthcare is a healthcare services company primarily focused on owning controlling interests in surgical hospitals and the inclusion of ancillary service lines. The Company currently owns controlling and noncontrolling interests in surgical hospitals located in Texas. The Company also owns noncontrolling interests in ambulatory surgery centers ("ASCs") located in Texas, Oklahoma, Pennsylvania, New Jersey, Maryland and Ohio. Additionally, the Company provides sleep testing management services to various rural hospitals in Iowa, Minnesota, Missouri, Nebraska and South Dakota under management contracts with the hospitals. The Company provides management services to a majority of its Affiliates under the terms of various management agreements. Prior to Dec. 2, 2013, the Company's name was Graymark Healthcare, Inc. Foundation Healthcare reported a net loss attributable to Foundation Healthcare common stock of $20.4 million on $93.1 million of revenues for the year ended Dec. 31, 2013, as compared with net income attributable to Foundation Healthcare common stock of $2.45 million on $53 million of revenues in 2012. Hein & Associates LLP, in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that the Company had insufficient working capital as of Dec. 31, 2013, to fund anticipated working capital needs over the next twelve months. These conditions raise substantial doubt about the Company's ability to continue as a going concern. G&Y REALTY: Assignee Seeks Dismissal of Involuntary Case -------------------------------------------------------- Steven P. Mitnick, assignee for the benefit of creditors of G & Y Realty, LLC, requests entry of an order: a) dismissing, with prejudice, the involuntary petition without the imposition of damages, counsel fees, sanctions or costs against any party, including petitioning creditors; and b) authorizing the continuation of the assignment proceedings before the Superior Court of New Jersey. The parties in the Debtor's case had negotiated a settlement of the motion to dismiss the involuntary bankruptcy cases that was entered by the Court on April 30, 2014. Pursuant to the provisions of the dismissal stipulation, relief from the automatic stay was granted to allow the assignee to conclude the sale of the leasehold interests and personalty at the 18 locations. Six of the locations were sold to Sabir. The dismissal stipulation also provided that on the approval by the Superior Court of the assignee's sale of the Sabir lease locations to Sabir, the involuntary petition will be dismissed. About G & Y Realty An involuntary Chapter 11 petition was filed against G & Y Realty, LLC (Bankr. D.N.J. Case No. 14-16010) on March 28, 2014. The case is before Judge Rosemary Gambardella. The Petitioning Creditors are Sabir, Inc. (allegedly owed $4.13 million), S. N. Walz, LLC (owed $5,476) and Samia Ventor LLC (owed $16,900). GENERAL MOTORS: M.D. Pa. Judge Stays Proceedings in "Bloom" Suit ---------------------------------------------------------------- Pennsylvania District Judge A. Richard Caputo granted the request of General Motors LLC to stay proceedings in the case, KAREN BLOOM, Plaintiff, v. GENERAL MOTORS LLC, Defendant, CIVIL ACTION NO. 3:CV-14-1903 (M.D. Pa., Sept. 5, 2014). General Motors LLC or New GM acquired various assets of General Motors Corporation in a bankruptcy-approved sale process pursuant to 11 U.S.C. Section 363. Bloom filed the Complaint against New GM in the Court of Common Pleas of Luzerne County, Pennsylvania alleging violations of the Pennsylvania Lemon Law, the Magnuson-Moss Warranty Act, the Pennsylvania Uniform Commercial Code, and the Pennsylvania Unfair Trade Practices and Consumer Protection Act. New GM removed the action to the District Court for the Middle District of Pennsylvania. It also gave notice to the Judicial Panel on Multidistrict Litigation -- which established MDL 2543, In re: General Motors LLC Ignition Switch Litigation pending before the U.S. District Court for the Southern District of New York as the MDL court -- that the Bloom case is a tag-along action. The JPML subsequently issued an Order conditionally transferring the case to the MDL, and Bloom filed an opposition to the Conditional Transfer Order. Bloom filed a Motion to Remand her action to the Court of Common Pleas of Luzerne County. She filed a "No-Stay Pleading" with the Bankruptcy Court in Old GM's case. The Bankruptcy Court addressed Bloom's "No-Stay Pleading" in November 2014, holding that "Ms. Bloom's action remains stayed." However, the Bankruptcy Court deferred final determination on Bloom's pleading. New GM filed the motion to stay in October 2014, arguing that staying the action will promote judicial economy, that the balance of harms weighs in favor of a stay, and that the stay requested will be of a short duration and last no longer than is needed for the JPML to finalize its transfer determination. Bloom opposed. "Because the stay sought by New GM will be relatively short, will not prejudice the non-moving party, and will promote judicial economy, the motion to stay will be granted," Judge Caputo said. A copy of the Court's Jan. 12, 2015 Memorandum is available at http://is.gd/o4hmICfrom Leagle.com. Karen Bloom, Plaintiff, is represented by: David J Gorberg, Esq. DAVID J. GORBERG & ASSOC. 700 Times Bldg, Suburban Square Ardmore, PA 19003 - and - David J. Cohen, Esq. KOLMAN ELY PC 1515 Market Street, Suite 1200 Philadelphia, PA 19102 Tel: 267-337-7338 General Motors LLC, Defendant, represented by: Francis J. Grey, Esq. RICCI TYRRELL JOHNSON & GREY 1515 Market Street, Suite 700 Philadelphia, PA 19102 Tel: 215-320-2079 Fax: 215-320-3261 E-mail: fgrey@rtjglaw.com About General Motors General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation Company was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. * * * The Troubled Company Reporter, on Sep. 29, 2014, reported that Standard & Poor's Ratings Services raised its corporate credit rating on U.S. automaker General Motors Co. (GM) to 'BBB-' from 'BB+', and revised the outlook to stable from positive. At the same time, S&P raised its issue-level rating on GM's unsecured debt to 'BBB-' from 'BB+' and simultaneously withdrew its '4' recovery rating on that debt, because S&P do not assign recovery ratings to the issues of investment-grade companies. On Oct. 21, 2014, the TCR reported that Fitch Ratings has assigned a rating of 'BB+' to GM's amended unsecured credit facilities. Fitch currently rates GM's Issuer Default Rating (IDR) 'BB+'. The Rating Outlook is Positive. Fitch has also affirmed and withdrawn the 'BB+' IDR of GM's General Motors Holdings LLC (GM Holdings) subsidiary, as there is no longer any rated debt at the subsidiary, and Fitch does not expect the subsidiary to be an active issuer going forward. Fitch has also withdrawn GM Holdings' unsecured credit facility rating of 'BB+' as the subsidiary is no longer a borrower on the facilities. The TCR, on Nov. 6, 2014, reported that Fitch Ratings has assigned a rating of 'BB+' to GM's proposed issuance of senior unsecured notes. The existing Issuer Default Rating (IDR) for GM is 'BB+' and the Rating Outlook is Positive. GLC LIMITED: Dist. Court to Hear Clawback Suit v. Barry Switzer --------------------------------------------------------------- District Judge Timothy S. Black for the Southern District of Ohio granted the request of Barry Switzer Family, LLC and Barry Switzer to withdraw the reference of the lawsuit commenced by debtor GLC Limited. GLC Limited seeks to avoid $100,000 in payments to the Defendants as allegedly fraudulent transfers pursuant to 11 U.S.C. Sec. 548(a)(1). The Defendants asserted an affirmative defense under Sec. 548(c) and demanded a jury trial, but did not file a claim against the bankruptcy estate. Judge Black set the case for a status conference by telephone on Feb. 4, 2015, at 11:00 a.m. The case is, GLC LIMITED, Plaintiff, v. BARRY SWITZER FAMILY, LLC, et al., Defendants, CASE NO. 1:15-CV-26 (S.D. Ohio). A copy of the District court's January 21, 2015 Order is available at http://is.gd/qIr3Mjfrom Leagle.com. GLC Limited represented by: James C Frooman, Esq. FROST BROWN TODD LLC 3300 Great American Tower 301 East Fourth Street Cincinnati, OH 45202 Tel: 513-651-6707 Fax: 513-651-6981 E-mail: jfrooman@fbtlaw.com Barry Switzer Family, LLC and Barry Switzer are represented by: Andrew Michael Simon, Esq. Stephen D Lerner, Esq. SQUIRE PATTON BOGGS (US) LLP 221 E. Fourth St., Suite 2900 Cincinnati, OH 45202 Tel: 513 361 1220 Fax: 212 407 0135 E-mail: stephen.lerner@squirepb.com About GLC Limited Proctorville, Ohio-based GLC Limited is a retail liquidation company in the wholesale/retail distribution industry. It offers large selections of name brand products in many categories. It distributes its goods through a network of wholesale distributors, retail chains and discount and surplus centers. It owns four warehouses for its goods which are located in Proctorville and Columbus, Ohio and Huntington, West Virginia. GLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ohio Case No. 11-11090) on Feb. 28, 2011. James R. Burritt, chief restructuring officer, signed the Chapter 11 petition. The Debtor disclosed $18,231,434 in assets and $28,095,356 in liabilities as of the Chapter 11 filing. Ronald E. Gold, Esq., and Joseph B. Wells, Esq., at Frost Brown Todd LLC, serve as the Debtor's bankruptcy counsel. James R. Burritt is the Chief Restructuring Officer and Leon C. Ebbert, PC, CPA, has been tapped as accountants. The Official Committee of Unsecured Creditors in GLC Limited's Chapter 11 bankruptcy case has tapped Morris, Manning & Martin, LLP, as counsel. On Oct. 29, 2011, the Bankruptcy Court entered an order confirming GLC Limited's First Amended Chapter 11 Plan of Liquidation. GLOBAL CLEAN: Reports $795K Net Loss in June 30 Quarter ------------------------------------------------------- Global Clean Energy Holdings, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $795,000 on $168,000 of total revenue for the quarter ended June 30, 2014, compared with a net loss of $1.1 million on $48,800 of total revenue for the same period in 2013. The Company's balance sheet at June 30, 2014, showed $20.2 million in total assets, $17.65 million in total liabilities, and a stockholders' deficit of $4.5 million. The Company incurred losses from operations applicable to its common shareholders of $676,000 and $976,000 for the six months ended June 30, 2014, and 2013, respectively, and has an accumulated deficit applicable to its common shareholders of $29.0 million at June 30, 2014. The Company also used cash in operating activities of $525,000 and $1.08 million during the years ended June 30, 2014 and 2013, respectively. At June 30, 2014, the Company has negative working capital of $6.40 million. A copy of the Form 10-Q is available at: http://is.gd/kEFRw8 Torrance, Calif.-based Global Clean Energy Holdings, Inc., is a multi-national, energy agri-business focused on the development of non-food based bio-feedstocks. GRIDWAY ENERGY: Authorized to Sell Ziphany's Assets to JKMV AGQ --------------------------------------------------------------- The U.S. Bankruptcy Court approved the asset purchase agreement dated Dec. 18, 2014, between debtor Ziphany L.L.C. and JKMV AGQ LLC, buyer. The Court also overruled the objections to the motion. The Debtors related that at the conclusion of the auction held Dec. 18, 2014, JKMV ACQ LLC was selected as the prevailing bidder. The buyer offered to purchase substantially all of the assets of Ziphany for $265,000. Demand Response Partners, Inc. was selected as the second highest bidder for its offer to purchase the assets for $260,000. A copy of the APA is available for free at: http://bankrupt.com/misc/GridwayEnergy_saleorder.pdf Pursuant to the initial sale motion, the Debtors proposed to sell substantially all of their assets to prepetition secured lender, Vantage Commodities Financial Services I, LLC, as the stalking horse bidder, pursuant to a credit bid up to the amount of the DIP Financing, or to such other purchaser who submits a higher and better offer. Vantage extended a financing in the aggregate principal amount of up to $122 million. About Gridway Energy Gridway Energy Holdings, Inc., and its affiliates, including Glacial Energy Holdings -- providers of electricity and natural gas in markets that have been restructured to permit retail competition -- sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10833) on April 10, 2014. The Debtors have 200,000 electric residential customers and 55,000 gash residential customers across the U.S. A large portion of the customers' energy consumption and revenue is generated in the northeast U.S., Ohio, Illinois and Texas (collectively accounting for 80% of revenue), with the remaining portion coming from California and other states. The Debtors blamed the bankruptcy due to lower revenue brought by increased market competition, which caused the Debtors to default on certain of their obligations. Gridway defaulted on $60 million of debt. Prepetition, the Debtors negotiated a stock purchase transaction with an interested buyer. But in March 2014, the purchaser withdrew from the transaction because of the large amount of debt that the purchaser would become liable through a stock transaction. The Debtors are represented by Michael R. Nestor, Esq., Joseph M. Barry, Esq., and Donald J. Bowman, Jr., Esq., at Young Conaway Stargatt & Taylor, LLP; and Alan M. Noskow, Esq., and Mark A. Salzberg, Esq., at Patton Boggs LLP. They employed Omni Management Group, LLC, as claims and notice agent. Gridway Energy estimated assets of $500 million to $1 billion and debt of more than $1 billion. The Creditors' Committee is represented by Sharon Levine, Esq., and Philip J. Gross, Esq., at Lowenstein Sandler LLP; and Frederick B. Rosner, Esq., and Julia B. Klein, Esq., at The Rosner Law Group LLC. Vantage is represented in the case by Ingrid Bagby, Esq., David E. Kronenberg, Esq., Kenneth Irvin, Esq., and Karen Dewis, Esq., at Cadwalader, Wickersham & Taft LLP, and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A. HALCON RESOURCES: Moody's Lowers Corporate Family Rating to Caa1 ---------------------------------------------------------------- Moody's Investors Service downgraded Halcon Resources Corporation's Corporate Family Rating (CFR) to Caa1 from B3 and the Probability of Default Rating to Caa1-PD from B3-PD. Moody's downgraded the senior unsecured note rating to Caa2 from Caa1. Moody's also downgraded the Speculative Grade Liquidity rating to SGL-4 from SGL-3 reflecting the company's significant reliance on external sources to fund capital spending, and the risk of reduced revolver availability over the next 12-18 months as Halcon's existing hedges roll-off. The ratings outlook is stable. Ratings downgraded: Corporate Family Rating, Downgraded to Caa1 from B3 Probability of Default Rating, Downgraded to Caa1-PD from B3-PD Speculative Grade Liquidity Rating, Lowered to SGL-4 from SGL-3 $400 million 9.750% sr unsecured notes due 2020, to Caa2 (LGD4) from Caa1 (LGD4) $750 million 9.750% sr unsecured notes due 2020, to Caa2 (LGD4) from Caa1 (LGD4) $1,350 million 8.875% sr unsecured notes due 2021, to Caa2 (LGD4) from Caa1 (LGD4) $400 million 9.250% sr unsecured notes due 2022, to Caa2 (LGD4) from Caa1 (LGD4) Outlook Action: Outlook, Remains Stable Ratings Rationale The downgrade reflects growing risk for Halcon's business profile because of high financial leverage and limited liquidity as its existing hedges roll-off and stop contributing to its borrowing base over the next 12-18 months. Moody's expects debt to average daily production to be over $90,000 per barrel of oil equivalent (boe) and debt to proved developed (PD) reserves to be over $50 per boe over the next 12-18 months. The downgrade also considers the elevated risk that Halcon will not have the ability to grow out of its weak leverage metrics, as capital expenditures are cut. Halcon's SGL-4 Speculative Grade Liquidity Rating reflects its weak liquidity profile over the next 12-18 months. At September 30, 2014, Halcon had approximately $95 million in cash and $704 million available under its $1,050 million borrowing base revolving credit facility. The credit facility matures in February 2017. However, as Halcon has continued to outspend cash flow, albeit at a reduced pace as crude oil prices have fallen, and as bank price decks begin to reflect a lower crude oil price and lower hedged production, Halcon's liquidity likely will shrink over the next 12-18 months. As EBITDA contracts, Moody's expect Halcon to have difficulty in complying with its financial covenants. Halcon's notes are rated Caa2, which is one notch below the Caa1 CFR. This notching reflects the priority claim given to the senior secured credit facility. The rating outlook is stable. A downgrade is possible if liquidity falls below $200 million, or if debt to average daily production is sustained over $100,000 per boe. An upgrade may not be considered until debt to average daily production is sustained below $65,000 per boe and debt to proved developed reserves falls below $45 per Boe. The principal methodology used in these ratings was Global Independent Exploration and Production Industry published in December 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. Halcon Resources Corporation is an independent exploration & production company based in Houston, Texas. HEI INC: Asserts Bid to Employ All Three Professionals Necessary ---------------------------------------------------------------- HEI, Inc., filed with the Bankruptcy Court a memorandum in support of its applications to employ these professionals: 1) Alliance Management as a business and financial consultant; 2) Fredrikson & Byron, P.A., as Chapter 11 counsel; and 3) Winthrop & Weinstine, P.A. as special counsel. The U.S. Trustee has filed recommendations against the employment of all three sets of professionals. The Debtor said that the Court should approve all three applications as the employment of these professionals are critical to the Debtor as it navigates the Chapter 11 process, and all of the proposed employment terms are reasonable. About HEI, Inc. HEI, Inc., 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. HEI INC: Court Okays Feb. 5 Auction of Assets --------------------------------------------- The Bankruptcy Court authorized HEI, Inc., to conduct an auction where HT Electronics, LLC, will serve as stalking horse bidder with a $2.81 million offer. The auction for the Debtor's assets will be held on Feb. 5, 2015, at 10:00 a.m., at the offices of Fredrikson & Byron, P.A., Suite 4000, 200 South Sixth Street, Minneapolis, Minnesota. Qualified bids are due Feb. 3. The Court will consider the sale of the assets to HT Electronics or the winning bidder at a hearing on Feb. 6, at 9:30 a.m. As reported in the TCR on Jan. 15, 2015, the Debtor has entered into an asset purchase agreement with HT Electronics, LLC, for the purchase of the Victoria Division assets, the Tempe Division assets, and all inventory for a combined purchase price of $2.81 million. The sale to HT does not include the Debtor's real estate located in Victoria, Minnesota, the Boulder Division machinery and equipment, or the Debtor's accounts receivable. The Debtor told the Court that although HT Electronics has offered to purchase the Victoria, Minnesota real estate and the accounts receivable, the Debtor has determined that it can obtain a greater value by selling and collecting such assets itself. The Boulder machine and equipment has been excluded from the transaction as the Debtor is working to complete a separate transaction with a subsidiary of a Tier 1 Medical Company that is a customer. Objection M & N Investments, LLC, reserved its rights to the sale motion. M & N is the landlord of certain premises leased by the Debtor and located at 2155-2157 E. Fifth Street, Tempe, Arizona pursuant to a lease agreement made and entered into as Dec. 6, 2011. M & N said that it is unclear whether the Debtor intends to assume and assign the Tempe Lease Agreement as part of the proposed sale transaction. The Debtor is currently in default under the Tempe Lease Agreement for failing to pay the January 2015 rent in the sum of $6,000. M & N asserted that the Debtor must cure the existing delinquency under the Tempe Lease Agreement and provide adequate assurance of future performance before the lease agreement may be assumed and assigned. 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. HEI, Inc., sought Chapter 11 protection (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 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 appointed three members to the Official Committee of Unsecured Creditors. HEI INC: Hearing on Cash Collateral Use Continued Until Feb. 25 --------------------------------------------------------------- The U.S. Bankruptcy Court continued until Feb. 25, 2015, at 10:30 a.m., the hearing to consider HEI, Inc.'s motion for authorization to use the cash collateral of Wells Fargo Bank, National Association. Objections, if any, are due Feb. 20. The Debtor has obtained an interim order authorizing it to use Wells Fargo's cash collateral until the end of the week beginning Feb. 23, in accordance with the budget. A copy of the budget is available for free at: http://bankrupt.com/misc/HeiInc_CC_budget.pdf Parties-in-interest had objected to the Debtor's motion for a final order authorizing the use of cash collateral. Wells Fargo Bank, acting through its Wells Fargo Business Credit operating division, objected to the motion and demanded adequate protection of its interest in the Debtor's assets. Wells Fargo primarily objected to the Debtor's revised weekly cashflow forecast. It points out the Debtor has not provided Wells Fargo with sufficient time to review the revised budget to determine whether it takes into account the significant developments in the case since the Petition Date. The Official Committee of Unsecured Creditors stated that it has not adequately analyze whether the proposed order or specific terms of the proposed order are objectionable. The Committee reserves the right to object to the budget, proposed order, or specific terms of the cash collateral order and to supplement the objection. As of Jan. 1, 2015, the outstanding amount of the Debtor's obligations to Wells Fargo totaled $2.99 million, plus accrued and unpaid interest, fees, expenses, and other costs. As reported in the Troubled Company Reporter on Jan. 15, 2015, as adequate protection, the Debtor proposes to grant Wells Fargo a replacement lien; make periodic payments of interest and, when realized, sale proceeds; maintain the equity cushion; maintain all insurance; utilize one or more bank accounts maintained at the Prepetition Lender's institution; and operate and sell assets so as to realize the highest possible value of the assets. 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. HLSS SERVICER: BlueMountain Capital Delivers Notice of Default -------------------------------------------------------------- BlueMountain Capital Management, LLC, the investment manager of funds that hold certain Series 2012-T2 and Series 2013-T3 Notes issued in connection with the HLSS Servicer Advance Receivables Trust (the "HSART Trust"), on Jan. 23 announced that it has sent the letter to the trustee of the HSART Trust. The letter is a notice of default on certain notes. A copy of the letter is available for free at http://is.gd/cpqWWB HOLY HILL: Court Denies Bid to Employ Jaenam Coe as Counsel ----------------------------------------------------------- The Bankruptcy Court denied Holy Hill Community Church's application to employ the Law Offices of Jaenam Coe PC as general bankruptcy counsel. As reported in the TCR on Jan. 15, 2015, Peter C. Anderson, the U.S. Trustee, asked the Hon. Julia Brand to deny the Debtor's motion stating that the Debtor's management is fractionalized, any proposed representation of the Debtor by Jaenam Coe presents an unavoidable conflict. The firm cannot be loyal to the interests of the "the Debtor" as a whole when it only purports to represent one faction of "the Debtor," the U.S. Trustee said. Parker Mills, LLP and the Law Offices of Carl Sohn, secured creditors of the Debtor and W. Dan Lee and Richard T. Baum, attorneys for the Debtor, also filed objections to the proposed employment of Jaenam Coe. They claimed that the Debtor is not entitled to employ counsel pursuant to 11 U.S.C. Sec. 327. This Debtor is no longer a debtor-in-possession, they argued, despite the claim in the application that it remains a debtor-in-possession. As a result of the Chapter 11 trustee's appointment, the Debtor has no right to employ counsel pursuant to Sec. 327(a) and 1107(a), and the counsel has no right to payment pursuant to Sec. 330. W. Dan Lee and Richard T. Baum stated that since the Debtor is not in possession of its estate, the Debtor is no longer a real party in interest which can seek the employment of counsel for the estate. They added that the Debtor has not substituted Lee and Baum out as its attorneys, and the parties seeking to do so are not authorized to act on behalf of the Debtor. The Debtor has tapped Jaenam Coe to provide these services: A. advise the Debtor concerning its rights and duties under Section 1107 of the Bankruptcy Code; B. represent the Debtor in any proceeding or hearing in bankruptcy court; and C. assist the Debtor in negotiation and confirmation of a plan of reorganization. The firm's standard rates for its services are: Billing Category Hourly Rate ---------------- ----------- Partners $400 Paralegals $200 Mr. Jaenam Coe ($400 per hour) is expected to have primary responsibility for providing services to the Debtor. The firm has not received from the Debtor a retainer to be applied to its representation of the Debtor. Jaenam Coe, a partner at Jaenam Coe PC, attested that the firm does not hold or represent any interest adverse to the Debtor, the bankruptcy estates, any insiders, any creditors or any other party. About Holy Hill Holly Hill Community Church, aka Holy Hill Community Church, a protestant church in Los Angeles, filed for Chapter 11 protection (Bankr. C.D. Cal. Case No. 14-21070) on June 5, 2014. In its Petition, Holly Hill, a California non-profit corporation incorporated for the purposes of conducting religious activities as a protestant Christian church, disclosed $35,390,787 in total assets and $16,727,290 in total liabilities. John Jenchun Suh, the pastor and CEO of the church, signed the bankruptcy petition. W. Dan Lee of the Lee Law Offices, in Los Angeles, is representing the Debtor as counsel. Judge Julia W. Brand presides over the case. Richard J. Laski has been appointed to serve as Chapter 11 trustee in the Debtor's case. The Trustee has tapped Arent Fox LLP to serve as his bankruptcy counsel, and Wilshire Partners of CA, LLC, as accountant. IBAHN CORP: Feb. 3 Hearing on Bid to Dismiss Chapter 11 Cases ------------------------------------------------------------- The U.S. Bankruptcy Court will convene a hearing on Feb. 3, 2015, at 10:00 a.m., to consider iBahn Corporation, et al.'s motion to dismiss their Chapter 11 cases, and provide relief in connection with the foregoing for Epiq Bankruptcy Solutions, LLC, the Debtors' claims agent. Objections, if any, are due Jan. 27. The Debtors, in their motion stated that on March 21 they closed on the Court approved sale of substantially all of their assets to Guest-Tek Interactive Entertainment, Ltd. After the sale, the Debtors no longer had any material assets and have conducted virtually no business operations since the closing of the sale other than winding down the business. About iBahn Corp. Salt Lake City, Utah-based IBahn Corp., a provider of Internet services to hotels, sought bankruptcy protection (Bankr. D. Del. Case No. 13-12285), citing a loss of contracts with largest customer Marriott International Inc. and patent litigation costs. IBahn Chief Financial Officer Ryan Jonson said the company had assets of $13.6 million and it listed liabilities of as much as $50 million in the Chapter 11 filing on Sept. 6, 2013. The petitions were signed by Ryan Jonson as chief financial officer. Judge Peter J. Walsh presides over the case. Laura Davis Jones, Esq., Davis M. Bertenthal, Esq., James E. O'Neill, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang, Ziehl Young & Jones, LLP, serve as the Debtors' counsel. The Debtors' claims and noticing agent is Epiq Bankruptcy Solutions. Epiq also serves as administrative agent. Houlihan Lokey Capital, Inc., serves as financial advisor and investment banker. JAMES RIVER COAL: Sale of Mining Assets to Revelation Has Closed ---------------------------------------------------------------- The United States Bankruptcy Court for the Eastern District of Virginia (Richmond Division) has approved the sale of the assets of James River Coal Company and certain of its subsidiaries pursuant to an Asset Purchase Agreement, dated Dec. 22, 2014, with the buyer, Revelation Energy, LLC. James River, pursuant to bankruptcy court-approved bidding procedures, selected Revelation Energy as a "stalking horse bidder" for the purchase of the Sellers' mining complexes commonly referred to as the Bell Complex and the Bledsoe Complex and certain of the assets of Laurel Mountain Resources LLC for an aggregate cash price of $2,000,000 in cash plus the assumption of certain liabilities and the retention by the Sellers of certain specified equipment and $3,000,000 of collateral, in each case. The Bankruptcy Court in Richmond entered an order in the Company's chapter 11 case approving the Asset Purchase Agreement on December 29, 2014. The sale closed on Dec. 31, 2014, and the Company has no remaining mining operations. A copy of the Court's Order approving the Sale is available at http://is.gd/53HKn5 A copy of the Asset Purchase Agreement is available at http://is.gd/crcbdz Revelation Energy, LLC, is represented in the deal by: M. Edward Cunningham, II, Esq. HUDDLESTON BOLEN LLP 611 Third Avenue Huntington, WV 25701 Facsimile: 304-522-4312 E-mail: ecunningham@huddlestonbolen.com James River Coal is represented by: Brian M. Resnick, Esq. Michael Davis, Esq. DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, NY 10017 Facsimile: (212) 701-5800 E-mail: brian.resnick@davispolk.com michael.davis@davispolk.com Davis Polk also serves as the Debtors' lead bankruptcy counsel. Their local bankruptcy counsel are: Tyler P. Brown, Esq. Henry P. (Toby) Long, III, Esq. Justin F. Paget, Esq. HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower 951 East Byrd Street Richmond, VA 23219 Telephone: (804) 788-8200 Facsimile: (804) 788-8218 About James River James River Coal Company is a producer and marketer of coal in the Central Appalachia ("CAPP") and the Midwest coal regions of the United States. James River's principal business is the mining, preparation and sale of metallurgical coal, thermal coal (which is also known as steam coal) and specialty coal. James River and 33 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. E.D. Va. Case Nos. 14-31848 to 14-31886) in Richmond, Virginia, on April 7, 2014. The petitions were signed by Peter T. Socha as president and chief executive officer. Judge Kevin R. Huennekens oversees the Chapter 11 cases. On the petition date, James River Coal disclosed total assets of $1.06 billion and total liabilities of $818.6 million. The Debtors are represented by Tyler P. Brown, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq. at Hunton & Williams LLP of Richmond, VA and Marwill S. Huebner, Esq, Brian M. Resnick, Esq., and Michelle M. McGreal, Esq. at Davis Polk & Wardwell LLP of New York, NY. Kilpatrick Townsend & Stockton LLP serves as the Debtors' special counsel. Perella Weinberg Partners L.P. is the Debtors' financial advisor. Deutsche Bank Securities Inc. serves as the Debtors' investment banker and M&G advisor. Epiq Bankruptcy Solutions, LLC, acts as the debtors' notice, claims and administrative agent. The U.S. Trustee for Region 4 has appointed five creditors to the Official Committee of Unsecured Creditors. Michael S. Stamer, Esq., Alexis Freeman, Esq., and Jack M. Tracy II, Esq., at Akin Gump Strauss Hauer & Feld LLP; and Jonathan L. Gold, Esq., Christopher L. Perkins, Esq., and Christian K. Vogel, Esq., at LeClairRyan. The Debtors, in August 2014, won authority to sell the Hampden Mining Complex (including the assets of Logan & Kanawha Coal Company, LLC), the Hazard Mining Complex (other than the assets of Laurel Mountain Resources LLC) and the Triad Mining Complex for $52 million plus the assumption of certain environmental and other liabilities, to a unit of Blackhawk Mining. The Buyer is represented by Mitchell A. Seider, Esq., and Charles E. Carpenter, Esq., at Latham & Watkins LLP. LANDS' END: Fourth Quarter Results No Impact on Moody's B1 Rating ----------------------------------------------------------------- Moody's Investors Service said that Lands' End, Inc.'s (B1/Stable) January 22, 2015 announcement of weaker-than-expected preliminary fourth quarter results are a credit negative, but have no ratings impact at this time. Headquartered in Dodgeville, Wisconsin, Lands' End Inc. is a multi-channel retailer of casual clothing, footwear and accessories for men, women and children with products sold through catalogs, online through websites in the US and overseas as well as through 236 Lands' End Shops at Sears and standalone Lands' End Inlet Stores. Fiscal 2014 revenues re expected to exceed $1.5 billion. The principal methodology used in this rating was the 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. LDK SOLAR: Filed Amendments to Form T-3s ---------------------------------------- LDK Solar Co., Ltd. on Jan. 21 filed with the U.S. Securities and Exchange Commission Amendment No. 1 to Form T-3s, initially filed with the Commission on Jan. 15, 2015, to supplement the disclosure made under Item 3 in the Original Applications. Item 3 in the Original Applications is to be deleted in its entirety and replaced with new information. Copies of Amendment No. 1 are available at http://is.gd/LmcUQGand http://is.gd/SEiLAp On Jan. 22, the Company filed with the Commission Amendment No. 2 to Form T-3s, solely for the purpose of adding the delaying amendment language to the cover page of the Application for Qualification of Indenture on Form T-3. Copies of Amendment No. 2 are available at http://is.gd/5tMKNwand http://is.gd/8FWU4y As reported by the Troubled Company Reporter, LDK Solar filed with Commission Form T-3 documents related to the planned issuance of 5.535% Convertible Senior Notes due 2016, in the aggregate principal amount of $358,743,400 plus amounts paid-in-kind as permitted by the indenture; and 5.535% Convertible Senior Notes due 2018 in the aggregate principal amount of $264 million plus amounts paid-in-kind as permitted by an indenture. About LDK Solar LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province, People's Republic of China, is a vertically integrated manufacturer of photovoltaic products, including high-quality and low-cost polysilicon, solar wafers, cells, modules, systems, power projects and solutions. LDK Solar was incorporated in the Cayman Islands on May 1, 2006, by LDK New Energy, a British Virgin Islands company wholly owned by Xiaofeng Peng, LDK's founder, chairman and chief executive officer, to acquire all of the equity interests in Jiangxi LDK Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin Industrial Limited. LDK Solar in February 2014 filed in the Cayman Islands for the appointment of provisional liquidators, four days before it was due to make a $197 million bond repayment. Its Joint Provisional Liquidators are Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman) Limited. In September 2014, LDK Solar, LDK Silicon and LDK Silicon Holding Co., Limited each applied to file an originating summons to commence their restructuring proceedings in the High Court of Hong Kong. On Oct. 21, 2014 three U.S. subsidiaries of LDK Solar, LDK Solar Systems, Inc., LDK Solar USA, Inc. and LDK Solar Tech USA, Inc. filed voluntary petitions to reorganize under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The lead case is In re LDK Solar Systems, Inc. (Bankr. D. Del., Case No. 14-12384). On Oct. 21, 2014, LDK Solar filed a petition in the same U.S. Bankruptcy Court for recognition of the provisional liquidation proceeding in the Grand Court of the Cayman Islands. The Chapter 15 case is In re LDK Solar CO., Ltd. (Bankr. D. Del., Case No. 14-12387). The U.S. Debtors' General Counsel is Jessica C.K. Boelter, Esq., at Sidley Austin LLP, in Chicago, Illinois. The U.S. Debtors' Delaware counsel is Robert S. Brady, Esq., Maris J. Kandestin, Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt & 73 Taylor, LLP, in Wilmington, Delaware. The U.S. Debtors' financial advisor is Jefferies LLC. The Debtors' voting and noticing agent is Epiq Bankruptcy Solutions, LLC. The U.S. Debtors commenced the Chapter 11 Cases in order to implement the prepackaged plan of reorganization, with respect to which the U.S. Debtors launched a solicitation of votes on Sept. 17, 2014 from the holders of LDK Solar's 10% Senior Notes due 2014, as guarantors of the Senior Notes, and required such holders of the Senior Notes to return their ballots by Oct. 15, 2014. Holders of the Senior Notes voted overwhelmingly in favor of accepting the Prepackaged Plan. Schemes of Arrangement Become Effective LDK Solar and its Joint Provisional Liquidators, Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman) Limited, said on Dec. 10, 2014, that the Cayman Islands schemes of arrangement in respect of LDK Solar and LDK Silicon & Chemical Technology Co., Ltd. and the Hong Kong schemes of arrangement in respect of LDK Solar, LDK Silicon and LDK Silicon Holding Co., Limited became effective as of that day. The Cayman Islands schemes of arrangement were previously sanctioned by the Grand Court of the Cayman Islands, and the Hong Kong schemes of arrangement were previously sanctioned by the High Court of Hong Kong. The U.S.-based companies also officially emerged from Chapter 11 protection on Dec. 11. On Dec. 18, 2014, LDK stated that, pursuant to the terms of the Cayman Islands schemes of arrangement in respect of LDK Solar and LDK Silicon & Chemical Technology Co., Ltd. and the Hong Kong schemes of arrangement in respect of LDK Solar, LDK Silicon and LDK Silicon Holding Co., Limited, the closing date for the restructuring transactions in respect of LDK Solar's senior noteholders and preferred shareholders, as contemplated in the Schemes, occurred on Dec. 17, 2014. LDK SOLAR: Unveils Results of EGM Held in Hong Kong --------------------------------------------------- LDK Solar CO., Ltd., in provisional liquidation, announced on January 22, 2015, the results of its Extraordinary General Meeting held on the same day in Hong Kong. "At the EGM, the shareholders in attendance approved all of the resolutions proposed in our EGM notice, including: the adoption of the 2013 annual report; the confirmation and re-election of directors, Maurice Wai-fung Ngai (independent director), Ceng Wang (independent director) and Shi Chen (non-executive director). The total number of members of our board of directors remains at seven. KPMG was re-appointed as our outside auditors for fiscal year 2014. The EGM also approved an amendment to our memorandum of association to increase our authorized share capital to US$500,000,000," the Company said. "On the record date set for our EGM, we had an aggregate of 235,523,289 shares issued and outstanding. An aggregate of 114,678,386 shares were represented in person or by proxy throughout the duration of the EGM, including shares underlying our American depositary shares. The adoption of our 2013 annual report was approved by 114,327,671 shares; the confirmation and re-election of Maurice Wai-fung Ngai as an independent director by 114,089,920 shares; the confirmation and re-election of Ceng Wang as an independent director by 114,098,141 shares; the confirmation and re-election of Shi Chen as a non-executive director by 114,071,452 shares; and the re-appointment of KPMG by 114,372,647 shares. The amendment to our existing memorandum of association was approved by 114,151,178 shares in a special resolution." Schemes of Arrangement Become Effective LDK Solar and its Joint Provisional Liquidators, Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman) Limited, said on Dec. 10, 2014, that the Cayman Islands schemes of arrangement in respect of LDK Solar and LDK Silicon & Chemical Technology Co., Ltd. and the Hong Kong schemes of arrangement in respect of LDK Solar, LDK Silicon and LDK Silicon Holding Co., Limited became effective as of that day. The Cayman Islands schemes of arrangement were previously sanctioned by the Grand Court of the Cayman Islands, and the Hong Kong schemes of arrangement were previously sanctioned by the High Court of Hong Kong. LDK Solar and the JPLs also confirmed that pursuant to an order of the Cayman Court dated Dec. 10, 2014, the powers of the JPLs were suspended (except for certain residual powers required to finalize the provisional liquidation) and the powers of the directors of LDK Solar were restored. With effect from December 10, the directors may exercise all their powers as such, subject to the powers granted to the scheme supervisors in respect of the Schemes. Pursuant to the terms of the Schemes, the consummation of the restructuring transactions as contemplated in the Schemes was to occur on Dec. 17, 2014. On Dec. 18, 2014, LDK stated that, pursuant to the terms of the Cayman Islands schemes of arrangement in respect of LDK Solar and LDK Silicon & Chemical Technology Co., Ltd. and the Hong Kong schemes of arrangement in respect of LDK Solar, LDK Silicon and LDK Silicon Holding Co., Limited, the closing date for the restructuring transactions in respect of LDK Solar's senior noteholders and preferred shareholders, as contemplated in the Schemes, occurred on Dec. 17, 2014. About LDK Solar LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province, People's Republic of China, is a vertically integrated manufacturer of photovoltaic products, including high-quality and low-cost polysilicon, solar wafers, cells, modules, systems, power projects and solutions. LDK Solar was incorporated in the Cayman Islands on May 1, 2006, by LDK New Energy, a British Virgin Islands company wholly owned by Xiaofeng Peng, LDK's founder, chairman and chief executive officer, to acquire all of the equity interests in Jiangxi LDK Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin Industrial Limited. LDK Solar in February 2014 filed in the Cayman Islands for the appointment of provisional liquidators, four days before it was due to make a $197 million bond repayment. Its Joint Provisional Liquidators are Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman) Limited. In September 2014, LDK Solar, LDK Silicon and LDK Silicon Holding Co., Limited each applied to file an originating summons to commence their restructuring proceedings in the High Court of Hong Kong. On Oct. 21, 2014 three U.S. subsidiaries of LDK Solar, LDK Solar Systems, Inc., LDK Solar USA, Inc. and LDK Solar Tech USA, Inc. filed voluntary petitions to reorganize under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The lead case is In re LDK Solar Systems, Inc. (Bankr. D. Del., Case No. 14-12384). On Oct. 21, 2014, LDK Solar filed a petition in the same U.S. Bankruptcy Court for recognition of the provisional liquidation proceeding in the Grand Court of the Cayman Islands. The Chapter 15 case is In re LDK Solar CO., Ltd. (Bankr. D. Del., Case No. 14-12387). The U.S. Debtors' General Counsel is Jessica C.K. Boelter, Esq., at Sidley Austin LLP, in Chicago, Illinois. The U.S. Debtors' Delaware counsel is Robert S. Brady, Esq., Maris J. Kandestin, Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt & 73 Taylor, LLP, in Wilmington, Delaware. The U.S. Debtors' financial advisor is Jefferies LLC. The Debtors' voting and noticing agent is Epiq Bankruptcy Solutions, LLC. The U.S. Debtors commenced the Chapter 11 Cases in order to implement the prepackaged plan of reorganization, with respect to which the U.S. Debtors launched a solicitation of votes on Sept. 17, 2014 from the holders of LDK Solar's 10% Senior Notes due 2014, as guarantors of the Senior Notes, and required such holders of the Senior Notes to return their ballots by Oct. 15, 2014. Holders of the Senior Notes voted overwhelmingly in favor of accepting the Prepackaged Plan. LEHMAN BROTHERS: Former Trader Continues Fight for Bonus -------------------------------------------------------- Joseph Checkler, writing for Daily Bankruptcy Review, reported that Jonathan Hoffman, a former Lehman Brothers trader, is still fighting for bonus money he says is owed him from 2008. According to the report, in a filing with U.S. Bankruptcy Court in Manhattan, Mr. Hoffman, a global rates trader, denies an assertion by the trustee unwinding Lehman's brokerage that he was "fully paid" $84.8 million in bonus money he was owed. Mr. Hoffman, who at the time of Lehman's collapse was the bank's third-highest paid rank-and-file employee, also denies Lehman's assertion that he is asking to be paid twice for the bonus and says his bonus package with Lehman was separate from the one he negotiated with Barclays PLC after Barclays bought the brokerage, the report related. 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. LIFE PARTNERS: Receives NASDAQ Delisting Notice after Ch.11 Filing ------------------------------------------------------------------ Life Partners Holdings, Inc. on Jan. 26 disclosed that on January 20, 2014, the Company received a letter from the staff of NASDAQ advising that, because the Company filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the Company's securities will be delisted from the NASDAQ Stock Market pursuant to the discretionary authority of NASDAQ under Listing Rules 5101 and 5110(b) and IM-5101-1. The letter further provided that the Company may request a hearing to appeal the Staff's determination and that such hearing request will stay the suspension of Company's securities pending a decision on the appeal. In addition, quotation information for the Company's common stock will include an indicator of the Company's non-compliance, and the Company will continue to be included in a list of non-compliant companies on the NASDAQ website. Unless the Company requests an appeal of this determination, trading of the Company's common stock will be suspended at the opening of business on January 29, 2015. The Company intends to request a hearing to appeal the delisting determination and address the concerns of NASDAQ arising out of the Company's filing for Chapter 11 protection. No assurance can be given that the appeal will be successful. If the appeal is not successful, the Company's securities may be immediately eligible to be quoted on the OTC Bulletin Board (the "OTCBB") or the Pink Sheets if a market maker makes application to register in and quote such securities in accordance with SEC Rule 15c2-11 (a "Form 211") and the application is cleared. Only a market maker, not the Company, may file a Form 211. Life Partners Holdings, Inc. is the parent company of the world's oldest company engaged in the secondary market for life insurance, commonly called "life settlements." Since its incorporation in 1991, Life Partners, Inc. has completed over 162,000 transactions for its worldwide client base of over 30,000 high net worth individuals and institutions in connection with the purchase of over 6,500 policies totaling over $3.2 billion in face value. Headquartered in Waco, Texas, Life Partners Holdings,Inc. -- http://www.lphi.com/-- is a financial services company. The Company is engaged in the secondary market for life insurance known as life settlements. It provide purchasing services for life settlements to client base. It categorizes purchasers of life settlements as either institutional or retail. Life settlement transactions involve the sale of an existing life insurance policy or interest in the policy to another party. It made significant investments in proprietary software and processes that enable to facilitate a higher volume of transactions while maintaining quality controls. The Company rely upon brokers to refer potential sellers of policies and upon financial professionals. It facilitates transactions by identifying, examining, and purchasing the policies as agent for the purchasers. MINERAL PARK: Plan Filing Date Extended to April 22 --------------------------------------------------- Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware signed an order ruling that no party other than Mineral Park, Inc., et al., or the Official Committee of Unsecured Creditors may file any plan of reorganization during the period from Jan. 23, 2015, through and including April 22, 2015. The Debtors or the Committee may solicit votes to accept a proposed plan from Jan. 23 through and including June 21. Prior to the entry of the order, the Committee asked the Court to terminate any periods of exclusivity the day immediately following the Court's approval of any sale of substantially all of the Debtors' assets, saying that cause does not exist to extend the exclusivity periods. The Committee argued that, among other things, the requested extensions will prejudice the rights of creditors, the Debtors are not paying all debts as they come due, and the Debtors cannot demonstrate reasonable prospects for filing a viable plan. To resolve the Committee's objection, the Debtors and the panel reached an agreement under which the exclusivity periods are terminated for the Committee only as of Jan. 23, 2015. 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 $286,362,131 in total assets and $266,035,508 in total liabilities. MISSION NEWENERGY: Had A$1.2 Million in Cash at Dec. 31, 2014 ------------------------------------------------------------- Mission New Energy Limited filed with the U.S. Securities and Exchange Commission its quarterly report for the period ended Dec. 31, 2014. The Company disclosed receipts from customers of A$3.17 millionfor the period. At the beginning of the quarter, the Company had A$809,000 in cash. The Company reported net increase in cash of A$206,000. As a result, the Company had A$1.18 million in cash at Dec. 31, 2014. A copy of the Quarterly Report is available for free at: http://is.gd/ZBn5TY About Mission NewEnergy Based in Subiaco, Western Australia, Mission NewEnergy Limited is a producer of biodiesel that integrates sustainable biodiesel feedstock cultivation, biodiesel production and wholesale biodiesel distribution focused on the government mandated markets of the United States and Europe. The Company is not operating its biodiesel refining segment. The refineries are being held in care and maintenance either awaiting a return to positive operating conditions or the sale of assets. The Company has materially diminished its Jatropha contract farming operation and the company is now focused on divesting the remaining Indian assets. The Company intends to cease all Indian operations. Mission NewEnergy reported a net loss of $1.09 million on $9.68 million of total revenue for the year ended June 30, 2014, compared to net income of $10.05 million on $8.41 million of total revenue during the prior year. The Company's balance sheet at June 30, 2014, showed $4.04 million in total assets, $15.40 million in total liabilities and a $11.35 million total deficiency. BDO Audit (WA) Pty Ltd, in Perth, Western Australia, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2013. The independent auditors noted that the Company incurred operating cash outflows of $3.7 million during the year ended 30 June 2013 and, as of that date the consolidated entity's total liability exceeded its total assets by $12.5 million. These conditions, along with other matters, raise substantial doubt the Company's ability to continue as a going concern. MONROE HOSPITAL: Says Assignment of Doctors' Pacts Permitted ------------------------------------------------------------ Monroe Hospital, LLC, responded to the objections filed by Drs. William Rusche, William J. Schmalz, and Matthew J. Parmenter; and Theresa Woodard to the assumption and assignment of their contracts to Prime Healthcare Services Monroe, LLC In their objections, the Doctors said their employment agreements with the Debtor cannot be assumed and assigned to Prime Healthcare. They added that even if their employment agreements can be assumed and assigned to Prime, the objecting parties are owed significant amounts of cash as "cure payments" on account of paid-time-off and vacation time. In response, the Debtor explained that, among other things: I. Section 365 of the Bankruptcy Code and applicable State Law permit the Debtor's assumption and assignment of the employment agreements to Prime. II. The Debtor does not owe the objecting party any cure amounts. III. The Debtor is entitled to attorneys' fees and costs. Ms. Woodard, Drs. Parmenter, Dr. Schmalz and Dr. Rusche are represented by: C. Daniel Motsinger, Esq. Kay Dee Baird, Esq. KRIEG DeVAULT LLP One Indiana Square, Suite 2800 Indianapolis, IN 462042079 Tel: (317) 636-4341 Fax: (317) 636-1507 E-mail: cmotsinger@kdlegal.com kbaird@kdlegal.com About Monroe Hospital Monroe Hospital, LLC, since 2006, has operated a 32 licensed bed private acute care medical surgical hospital in Bloomington, Indiana. It leases the land on which the hospital is located from MPT Bloomington, LLC. Monroe Hospital, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Ind. Case No. 14-07417) in Indianapolis, Indiana, on Aug. 8, 2014. Joseph Roche signed the petition as president and chief executive officer. In its schedules, the Debtor disclosed $14,327,739 in total assets and $136,386,925 in liabilities. The case is assigned to Judge James M. Carr. The Debtor is represented by attorneys at Bingham Greenebaum Doll LLP. Upshot Services LLC acts as the Debtor's noticing, claims and balloting agent. The Court scheduled a Feb. 11 hearing on the confirmation of the Debtor's plan of liquidation. Under the plan, the secured portion of the claim of hospital lessor MPT Bloomington LLC and affiliated lender MPT Development Services Inc., which are collectively owed about $121.8 million, would be paid by the buyer as part of the purchase price. Recovery on general unsecured claims is "unknown." MOSS FAMILY: Can Use Fannie Mae Cash Collateral Until Dec. 31 ------------------------------------------------------------- The Hon. Harry Dees Jr. of the U.S. Bankruptcy Court for the Northern District of Indiana signed off on an order allowing Moss Family Limited Partnership and Beachwalk, L.P. to use the cash collateral of Federal National Mortgage Association/Bank of America until December 31, 2015, at 11:59 p.m. A further hearing on the use of cash collateral will take place on Dec. 15, 2015, at 1:30 p.m., at Room 201, Robert K. Rodibaugh United States Bankruptcy Courthouse, 401 S. Michigan Street in South Bend, Indiana. Fannie Mae is represented by: Jennifer Renee Watkins, Esq. MERCER BELANGER One Indiana Square, Suite 1500 Indianapolis, IN 46204 Tel: 317-636-3551 About Moss Family Moss Family Limited Partnership and Beachwalk, L.P., filed Chapter 11 petitions (Bankr. N.D. Ind. Case Nos. 12-32540 and 12-32541) on July 17, 2012. Judge Harry C. Dees, Jr., presides over the case. Daniel Freeland, Esq., at Daniel L. Freeland & Associates, P.C., represents the Debtors. Moss Family disclosed $6,609,576 in assets and $6,299,851 in liabilities as of the Chapter 11 filing. The Debtors' Amended Joint Chapter 11 Plan dated Dec. 3, 2013, provides that unsecured claims will be fully paid and satisfied by use of the proceeds from the sale of LaPorte Judgment Lien Property. MOSS FAMILY: Can Use Fifth Third's Cash Collateral Until Feb. 20 ---------------------------------------------------------------- The Hon. Harry Dees Jr. of the U.S. Bankruptcy Court for the Northern District of Indiana signed off on an order allowing Moss Family Limited Partnership and Beachwalk, L.P. to use the cash collateral of Fifth Third Bank until Feb. 20, 2015, at 11:59 p.m. A further hearing on the use of cash collateral will take place Feb. 19, 2015, at 3:00 p.m. Court documents indicate that the extension of the Debtor's authority to use cash collateral pursuant to an interim court order is with the understanding that the lender has not yet approved both the proposed 2014 and 2015 budgets the Debtor proposed. The lender, however, has agreed to allow the Debtor to operate under the 2013, 2014 and 2015 budgets while they discuss their issues. Fifth Third Bank is represented by: Mark J. Adey, Esq. BARNES & THORNBURG LLP 700 1st Source Bank Center 100 North Michigan South Bend, IN 46601 Tel: 574-233-1171 E-mail: mark.adey@btlaw.com About Moss Family Moss Family Limited Partnership and Beachwalk, L.P., filed Chapter 11 petitions (Bankr. N.D. Ind. Case Nos. 12-32540 and 12-32541) on July 17, 2012. Judge Harry C. Dees, Jr., presides over the case. Daniel Freeland, Esq., at Daniel L. Freeland & Associates, P.C., represents the Debtors. Moss Family disclosed $6,609,576 in assets and $6,299,851 in liabilities as of the Chapter 11 filing. The Debtors' Amended Joint Chapter 11 Plan dated Dec. 3, 2013, provides that unsecured claims will be fully paid and satisfied by use of the proceeds from the sale of LaPorte Judgment Lien Property. MOSS FAMILY: Can Use Horizon Bank's Cash Collateral Until June 30 ----------------------------------------------------------------- The Hon. Harry Dees Jr. of the U.S. Bankruptcy Court for the Northern District of Indiana signed off on an order allowing Moss Family Limited Partnership and Beachwalk, L.P. to use the cash collateral of Horizon Bank until June 30, 2015, at 11:59 p.m. A further hearing on the use of cash collateral will take place on June 16, 2015, at 1:30 p.m., at Room 201, Robert K. Rodibaugh United States Bankruptcy Courthouse, 401 S. Michigan Street in South Bend, Indiana. The bank is represented by: Rebecca Fisher, Esq. LADERER & FISCHER P.C. 401 E. Colfax Avenue, Suite 305 South Bend, IN 46617 Tel: 574-284-2354 Fax: 574-284-2356 E-mail: rebecca@ladfislaw.com About Moss Family Moss Family Limited Partnership and Beachwalk, L.P., filed Chapter 11 petitions (Bankr. N.D. Ind. Case Nos. 12-32540 and 12-32541) on July 17, 2012. Judge Harry C. Dees, Jr., presides over the case. Daniel Freeland, Esq., Sheila A. Ramacci, Esq., and Frederick L. Carpenter, Esq., at Daniel L. Freeland & Associates, P.C., represents the Debtors. Moss Family disclosed $6,609,576 in assets and $6,299,851 in liabilities as of the Chapter 11 filing. The Debtors' Amended Joint Chapter 11 Plan dated Dec. 3, 2013, provides that unsecured claims will be fully paid and satisfied by use of the proceeds from the sale of LaPorte Judgment Lien Property. NII HOLDINGS: Agrees to Sell Mexican Operations to AT&T ------------------------------------------------------- NII Holdings, Inc. on Jan. 26 disclosed that it has agreed to sell its Mexican operations operated by its indirect subsidiary, Nextel de Mexico, S.A. de C.V. to AT&T for $1.875 billion, less the outstanding net debt of the business at closing. The transaction, which is subject to the approval of the U.S. Bankruptcy Court for the Southern District of New York, regulatory approvals in Mexico and a competitive bidding process to be conducted under the supervision of the U.S. Bankruptcy Court, is expected to close by mid-2015. "The transaction with AT&T ensures that customers of Nextel Mexico will continue to be served by a high quality telecommunications company committed to providing innovative products, services and solutions to the market," said Steve Shindler, chief executive officer of NII Holdings. "We believe that the sale of Nextel Mexico represents an opportunity to reduce our operational risk, deliver value to our stakeholders and provide the liquidity that will position us to emerge from Chapter 11 reorganization with a healthy balance sheet and fund our business plan in Brazil. The sale also allows our Mexico team to continue to grow and thrive, capitalizing on the opportunities in the Mexican telecom market with the support of one of the largest telecom companies in the world," Mr. Shindler added. On November 24th, 2014, the Company and twelve of its wholly-owned subsidiaries, which previously sought bankruptcy protection, filed a plan of reorganization and related disclosure materials with the U.S. Bankruptcy Court based on an agreement that had been reached with certain of their major stakeholders, including their two largest creditors and the official committee of unsecured creditors. The Company expects to engage with its stakeholders in an effort to gain support for modifications to the Plan that will allow it and its subsidiaries to emerge from Chapter 11 reorganization. The Company's operations in Mexico, Brazil and Argentina are not included in the pending bankruptcy proceedings and continue to operate in the ordinary course outside of Chapter 11. About NII Holdings, Inc. NII Holdings Inc. through its subsidiaries provides wireless communication services for businesses and consumers in Brazil, Mexico and Argentina. NII Holdings has the exclusive right to use the Nextel brand in its markets pursuant to a trademark license agreement with Sprint Corporation and offers unique push-to-talk ("PTT") services associated with the Nextel brand in Latin America. NII Holdings' shares of common stock, par value $0.001, are publicly traded under the symbol NIHD on the NASDAQ Global Select Market. NII Holdings and its affiliated debtors sought bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-12611) in Manhattan on Sept. 15, 2014. The Debtors' cases are jointly administered and are assigned to Judge Shelley C. Chapman. The Debtors have tapped Jones Day as counsel and Prime Clerk LLC as claims and noticing agent. NII Holdings disclosed $1,216,071,340 in assets and $3,068,103,749 in liabilities as of the Chapter 11 filing. The U.S. Trustee for Region 2 on Sept. 29 appointed five creditors of NII Holdings to serve on the official committee of unsecured creditors. NII HOLDINGS: NIU Holding's Voluntary Chapter 11 Case Summary ------------------------------------------------------------- Debtor: NIU Holdings LLC 1875 Explorer Street, Suite 800 Reston, VA 20190 Case No.: 15-10155 Chapter 11 Petition Date: January 25, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Scott Greenberg, Esq. JONES DAY 222 East 41st Street New York, NY 10017 Tel: (212) 326-3939 Fax: (212) 755-7306 Email: sgreenberg@jonesday.com Debtor's ALVAREZ & MARSAL NORTH AMERICA, LLC Restructuring Advisors: Debtor's ROTHSCHILD, INC. Financial Advisors: Debtor's MCKINSEY RECOVERY & TRANSFORMATION SERVICES Management U.S., LLC Consultants: Debtor's PRIME CLERK LLC Claims and Noticing Agent: Estimated Assets: $500 million to $1 billion Estimated Liabilities: $0 to $50,000 The petition was signed by Shana Smith, manager. NIU Holdings intends to file a motion for an order directing that certain orders in the jointly administered Chapter 11 cases of NII Holdings, Inc., Case No. 14-12611 (SCC), be made applicable to NIU's own Chapter 11 case. On Sept. 15, 2014, NII Holdings, Inc., and certain of its affiliates filed a motion requesting a waiver of the requirement for filing a list of creditors pursuant to Sections 342, and 521(a) of title 11 of the United States Code, Rules 1007(a) and 2002(a) and 2002(f) of the Federal Rules of Bankruptcy Procedure, and Rule 1007-1 of the Local Bankruptcy Rules for the Southern District of New York. On Oct. 8, 2014, certain affiliates of the Debtor filed petitions in this Court for relief under Chapter 11 of the Bankruptcy Code and a motion for an order directing that certain orders in the jointly administered chapter 11 cases of NII Holdings, Inc., Case No. 14-12611 (SCC), be made applicable to their Chapter 11 cases. Upon entry of the order approving the Second Applicability Motion, NIU Holdings proposes to furnish its list of creditors to the claims and noticing agent engaged by the Affiliate Debtors. NNN SIENA OFFICE: Wants Court to Dismiss Chapter 11 Case -------------------------------------------------------- NNN Siena Office Park I 41 LLC and its debtor-affiliates ask the Hon. M. Elaine Hammond of the U.S. Bankruptcy Court for the Northern District of California to dismiss their joint administered Chapter 11 proceedings because the cases no long serves the purpose of the Bankruptcy Code in that continuation will only result in loss or diminution of the estates and there is no reasonable likelihood of rehabilitation within a reasonable amount of time. The Debtors tell the Court they are unable to file a confirmable plan within the time fixed. The Debtors say they have investigated obtaining third party financing. The Debtors disclose that their present intended third party lender, whose commitment is dependent upon confirmation of a bankruptcy plan, would not commit to the funding required with a plan debt including a total claim to the lender in excess of $34,000,000, and their principals do not have other assets that they will commit to provide the infusion of new value necessary to confirm a plan for that amount of debt. A hearing is set for Feb. 12, 2015 at 10:30 a.m. at San Jose Courtroom 3070, to consider the Debtors' request. 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. PACIFIC GOLD: Recurring Losses Raise Going Concern Doubt -------------------------------------------------------- Pacific Gold Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, disclosing a net loss of $362,000 on $nil of total revenue for the three months ended Sept. 30, 2014, compared to a net income of $789,000 on $nil of total revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2014, showed $1.1 million in total assets, $3.81 million in total liabilities and a stockholders' deficit of $2.71 million. As of Sept. 30, 2014, the Company had an accumulated deficit of $45.9 million, negative working capital of $1.11 million, and negative cash flows from the nine months ended Sept. 30, 2014 of $586,000, raising substantial doubt about its ability to continue as a going concern. The Company's independent auditors, in their report on the consolidated financial statements, also indicated that the Company has experienced recurring losses from operations and may not have enough cash and working capital to fund its operations beyond the very near term. A copy of the Form 10-Q is available at: http://is.gd/AuyPBU Las Vegas, Nev.-based Pacific Gold Corp. is engaged in the identification, acquisition, and development of prospects believed to have gold mineralization. Pacific Gold through its subsidiaries currently owns claims, property and leases in Nevada and Colorado. The Company reported a net loss of $696,000 on $0 of revenue for the three months ended June 30, 2014, compared with a net loss of $515,000 on $0 of revenue for the same period in 2013. For the six months ended June 30, 2014, the Company reported a net loss of $986,000 on $0 of revenue compared to a net loss of $736,000 on $0 of revenue for the same period during the prior year. As of June 30, 2014, the Company had $1.09 million in total assets, $3.80 million in total liabilities and a $2.71 million total stockholders' deficit. The Company had an accumulated deficit of $45.6 million and a working capital deficit of $1.22 million at June 30, 2014. During the six months ended June 30, 2014, the company financed its operations through the sale of securities, proceeds received from sale of mining claims, and issuance of debt. PATTERSON PARK: Fitch Affirms 'BB+' Rating on $12.6MM Bonds ----------------------------------------------------------- Fitch Ratings affirms the 'BB+' rating on $12.6 million outstanding series 2010A and B bonds issued by the Maryland Health and Higher Educational Facilities Authority (MHHEFA) on behalf of the Patterson Park Public Charter School (PPPCS). The Rating Outlook is Stable. SECURITY The bonds are a general obligation of PPPCS, secured by a first mortgage on the school's facilities. A cash-funded debt service reserve (DSR) provides further security. KEY RATING DRIVERS FINANCIAL METRICS DRIVE RATING: Operating and liquidity metrics for PPPCS are considered speculative grade per Fitch's charter school rating criteria. PPPCS' operating results are typically below or close to break-even on a GAAP basis. EXPECTED ADEQUATE DEBT SERVICE COVERAGE: PPPCS has demonstrated consistent coverage of transaction maximum annual debt service (TMADS) at or above the covenanted 1.1x. Fiscal 2014 coverage was 1.2x. PPPCS benefits from strong demand and stable enrollment, which supports the school's primary revenue-driver, per pupil funding. LIMITED BALANCE SHEET FLEXIBILITY: PPPCS has weak balance sheet ratios, consistent with the rating category and typical of the sector, that limit flexibility to manage budget fluctuations. An additional factor is union contracts for its teachers. Though operations may allow for modest growth in PPPCS' balance sheet metrics, flexibility will likely remain narrow. RATING SENSITIVITIES MARGIN DETERIORATION: A decline in PPPCS' operating margin that causes TMADS coverage to fall below 1.1x, or causes significant depletion of available funds (defined by Fitch as cash and investments not permanently restricted), would result in a negative rating action. STANDARD SECTOR CONCERNS: A limited financial cushion; substantial reliance on enrollment-driven, per pupil funding; and charter renewal risk are credit concerns common among all charter school transactions that, if pressured, could negatively impact the rating. CREDIT PROFILE PPPCS opened in 2005 in a former Catholic school located just north of Patterson Park in Baltimore, MD. PPPCS expanded its facilities in fall 2011. Since receiving an initial three-year charter in 2005, PPPCS has received two five-year charter renewals from Baltimore City Public Schools (BCPS). The most recent five-year renewal was February 2013, which extends the charter to June, 2018. Enrollment in this PreK-8 charter school for fall 2014 was 682 students, slightly up from 673 in fall 2013. About 20% of students were K or Pre-K. The school is located in southeastern Baltimore and has a curriculum that emphasizes diversity and a thematic, experiential learning approach. Fitch notes positively that the school remains in good standing under its charter and has a positive working relationship with the authorizer, BCPS. SPECULATIVE GRADE OPERATIONS AND BALANCE SHEET METRICS The 'BB+' rating reflects weak balance sheet ratios, which are consistent with the rating category. Available funds (AF), defined by Fitch as cash and investments not permanently restricted, was $1.46 million at June 30, 2014, an increase from $1.1 million in fiscal 2013 and fiscal 2012. This resource level represented only 17% of fiscal 2014 operating expenses and 12% of outstanding debt ($12.6 million). While AF provides some budgetary cushion, it is inadequate to fund debt service for any length of time. Operating margins on a full accrual basis have been break-even or slightly negative in recent years. The fiscal 2014 net operating deficit was $208,000, an operating margin of negative 2.5%. After averaging a positive 9.8% between fiscal 2008 and fiscal 2011, PPPCS' operating margin in fiscal 2013 was ($26,000), essentially at break-even (negative 0.3%), and in fiscal 2012 was ($240,000), or negative 3.1%. The primary driver of the weaker operating performance was increased depreciation and interest expense associated with the series 2010 bond-financed facility expansion. The school reports that the fiscal 2015 budget is balanced, and operating results should be comparable to fiscal 2014. Management does not fully budget for depreciation expense, but does budget to meet the 1.1x coverage covenant. As a result, performance is expected to remain below break-even for the near term. Fitch notes that PPPCS has limited control on increases in operating expenses (mainly salaries and benefits), which are mandated by BCPS union contracts. ADEQUATE DEBT SERVICE COVERAGE PPPCS' budgets typically generate adequate coverage of the school's TMADS obligation. TMADS is MADS excluding a planned double payment in the final amortization year ($941,000 for the series 2010 bonds). The fixed rate debt service structure is level. PPPCS generated 1.2x TMADS coverage in fiscal 2014, lower than the 1.37x coverage in fiscal 2013, and more comparable to 1.1x in fiscal 2012. Management reports that coverage increased in fiscal 2013 due to program and expense reductions and higher than budgeted per-pupil funding. The TMADS obligation represented a high 11.5% of fiscal 2014 operating revenues. Bond covenants include a 1.1x minimum MADS coverage ratio and a requirement for cash and investments to be at least 7% of total operating expenses. Per the school's fiscal 2013 and 2014 disclosure, both of these covenants were met. Bond documents also require quarterly funding of a renewal and replacement fund up to $200,000 over time; at June 30, 2014, the R&R fund held $86,000. SOLID ENROLLMENT Like most charter schools, PPPCS is heavily reliant on per pupil funding to support its annual operating budget. In fiscal 2014, student-generated revenues provided about 92% of operating revenues. Given the concentrated revenue stream, maintaining stable enrollment and balance sheet reserves over time are important credit factors. PPPCS has gradually increased enrollment in recent years, well past the originally anticipated 585 students. Enrollment was 682 in fall 2014, up from 673 in fall 2013 and 622 in fall 2011. Management indicates that about 39 additional K-8 students could be added under the existing charter cap, which allows enrollment of up to 675 K-8 students. This gap provides some demand and budget flexibility, as the school has no facility constraints. School management has no plans to request a higher enrollment cap from its authorizer. BUDGET CONSTRAINTS Per pupil funding (PPF) is the school's largest revenue source. Actual PPF for fiscal 2014 was $9,450, an approximate 2.8% increase from $9,192 per student in fiscal 2013. For the current fiscal 2015, there was no increase. The fiscal 2016 funding level is not yet available. Fitch notes that over time PPF tends to be flat or increase modestly. Fitch notes that PPPCS' operational flexibility is more limited than many charter schools because its instructional faculty, employed by BCPS, is unionized. PPPCS does not have teacher pension expense (that is a liability and expense of the city), but it must fund any Baltimore City Public School union contract increases. Management reports that a new three-year contract was negotiated effective for fiscal 2014 that included annual teacher bonus, wage increases and step increases that effectively result in a 4% annual benefits increase. As salaries and benefits typically comprise the majority of operating expenses, Fitch views this as a significant limitation. Additionally, Baltimore charter schools, including PPPCS, are required to pay a portion of BCPS debt service, even if they are not located in BCPS facilities. For PPPCS, who has its own facility, management reports this is about $200,000 per year. PPPCS' relative budgetary stability benefits from strong demand. For fall 2014, PPPCS received 180 applications for 46 pre-kindergarten openings (expanded from 21 slots in fall 2012) and 162 applications for 92 kindergarten openings. Management reports that attrition was about 5% for the 2013/2014 academic year, and is expected to be similar for the current 2014/2015 year. The school does not carry or draw from wait lists during the academic year. Fitch views high retention favorably as it indicates satisfaction with the academic program and limits reliance on a potentially seasonal wait list. PENNSYLVANIA ECONOMIC: Fitch Lowers Rating on $169MM Bonds to 'BB' ------------------------------------------------------------------ Fitch Ratings has downgraded the ratings on Pennsylvania Economic Development Financing Authority's (the Colver Project) $169 million aggregate series F resource recovery revenue refunding bonds due 2018 to 'BB' from 'BB+'. The Rating Outlook is Stable. The downgrade reflects projected near-term breakeven debt service coverage levels and reduced cash flow due to a significant cost increase at the Colver Project. This aging waste coal facility will continue to face increased maintenance, reduced output and low revenue growth tied to lower than expected GDP growth over the remaining project life. The near-term maturity of the debt combined with significant liquidity help to support the rating at the 'BB' level. KEY RATING DRIVERS Contractual Revenues Reliant on Strong Operations - Revenue Risk: Midrange The project relies on the ability of the operator to maintain high availability and capacity factors in order to maximize payments under the power purchase agreement (PPA), capture the benefit of excess energy sold at the locational marginal price (LMP) and provide revenue stability. LMP sales, despite their variability in price and small percentage relative to total revenues, help to add cushion to the cash flow profile. Operating Margin Subject to Cost Control - Operating Risk: Weaker The project remains exposed to price fluctuations in commodities, uncertain emissions compliance costs and major maintenance. The recent reduction in diesel pricing could help to offset fluctuations in other commodity costs going forward; however, the project remains exposed to increased emissions costs as well as maintenance on an aging facility. In order to meet the Cross State Air Pollution Rule (CSAPR) and the impending Mercury Air Toxic Standards (MATS) rule in 2016, the project will face incremental limestone costs for emissions control. Adequate Coal Supply - Supply Risk: Midrange Despite 75% of waste coal under contract through debt maturity, the project is susceptible to potential price swings in the remaining 25% of spot coal supply. The relative liquidity and depth of the waste coal market helps to mitigate this risk over the remaining debt tenor. Debt Structure Supports Cash Flow - Debt Structure: Midrange The short tenor remaining on the debt combined with significant liquidity helps to bolster cash flows against periods of production shortfalls or increased operating costs over the next five years. Further, the additional two years of unlevered cash flow under the PPA following debt maturity in 2018 help to offset relatively high leverage. Uncertain Financial Profile Under a modest stress scenario which combines flat revenues and a 10% operating expense increase, Fitch projects near-term debt service coverage ratios (DSCR) to average 0.91x with a minimum of 0.70x. While these coverage levels may suggest a lower rating under Fitch's criteria for fully contracted thermal power projects, the stable operating history, limited horizon for debt maturity and considerable liquidity support the rating at the current level. Projections Below Peers The coverage profile of the Colver project is below its closest peer, AES Puerto Rico;, which has an average rating case DSCR of 1.34x with a minimum of 1.00x. Colver benefits from additional liquidity and a short remaining debt tenor, which help to offset potentially lower cash flows. RATING SENSITIVITIES Negative - Operating Costs: Increased operating costs above the $1.8 million incremental limestone cost for 2016 and projected increased maintenance costs could result in a downgrade; Negative - Increased Downtime: Any extended outage resulting in decreased availability and reduced cash flow could result in a downgrade. UPDATE During 2014, the project began to experience an increase in forced outages as a result of tube leaks. By year end, the leaks were uncovered at a rate of one to two times per month and included leaks in areas of the plant that had been historically uncommon. These leaks are typical of an aging coal facility; however, combined with a major overhaul, the repairs reduced dispatch at the project to roughly 96.6%. Further, the sponsor expects the project to experience downtime related to a partial discharge issue on the generator in the near term. The timing of the tube leaks and the need for additional maintenance in 2015 is expected to push dispatch to roughly 96% compared to 98% average dispatch since 2007. In addition to lower dispatch, revenues have been dampened by year-over-year slow GDP growth, as the escalation factor under the PPA is indexed to half of annual GDP growth. The Q3'14 GDP growth rate of 5% could help to bolster revenues going forward; however, the impact on the annual escalator for Colver remains uncertain. Operating costs at the Colver Project increased by roughly 6% during 2014 due largely to an increase in fuel and ash trucking costs. This cost is expected to continue going forward due to limited space at the existing site; however, the recent decreases in oil prices could temper the impact. Fitch notes that budget 2015 estimates are based off of a higher oil price environment, providing some level of conservatism with regard to fuel costs. In addition to fuel expenses, the need for increased limestone volumes to comply with CSAPR will negatively impact cash flows during 2015. While MATS has received a one-year extension, the cost of compliance has been utilized for projections beginning in 2016. Overall, roughly $1.8 million in total limestone purchasing and transportation costs will need to be added to the 2016-2018 period in order to capture emissions and comply with the MATS regulation. The project is also susceptible to increased limestone expenses in order to deal with the variability in sulfur content for the fuel supply, which could compound the effect of the supply cost going forward. The current 2015 sponsor budget indicates a Fitch calculated DSCR of 1.10x due to reduced dispatch, increased fuel and ash costs as well as the CSAPR emissions rule compliance. Fitch has used this budget as the basis for the remaining 2016-2018 period. While coverage levels of 0.91x on average with a minimum of 0.71x under rating case conditions are not indicative of a 'BB' rating, the short remaining tenor and available liquidity of $24 million help to significantly reduce the probability of default and support the rating at the current level. Fitch views the probability of a scenario under which liquidity is inadequate as low given that the project is able to withstand a 10% reduction to revenues in combination with a 10% increase to operating costs using the $24 million cash balance. Further, while sponsor support is not considered under the current projections, Fitch views the sponsor to be adequately incentivized to prevent a default given the near-term maturity of the debt and remaining two-year tenor on the PPA post debt maturity. The Colver Project consists of a nominal 111.15MW waste coal-fired qualifying facility located on a 62-acre site in Cambria, Pennsylvania. The project also includes a 9.6-mile, 115-kilovolt transmission line interconnecting with the Pennsylvania Electric Company Glory Substation. The Colver facility began commercial operations on May 16, 1995. The senior bonds were issued on behalf of an owner-participant as part of a leveraged-lease transaction. Colver's sponsor is a limited partnership, Inter-Power/AhlCon Partners, which is held by subsidiaries of Northern Star Generation. Under the terms of the PPA, Pennsylvania Electric Company(Penelec) pays flat rates on annual energy up to 278 gigawatt-hours (GWh) of on-peak production and 501 GWh/year off-peak production. Penelec purchases excess energy, produced in excess of caps above, at the posted hourly LMP or day-ahead price of PJM Interconnection, LLC. PLASTIC2OIL INC: Letter to Stockholders from CEO ------------------------------------------------ Plastic2Oil, Inc., issued a letter to stockholders from Richard Heddle, its Chairman and chief executive officer, which provided an update on certain operational and financial matters. To our valued stockholders: Many of you have inquired about our recent press release and our recent 8-K filing with the SEC, regarding the sale of processors to EcoNavigation, LLC (EcoNavigation). More information will be released as it is appropriate, but I wanted to provide some clarity on the pilot and on the anticipated sale of processors. First, as was indicated, a pilot production run would take place within a 120 day period for evaluation by EcoNavigation. That period began January 2, 2015 and will end May 1, 2015. The 120 day period includes pre-pilot production activities, the start-up, run, and required maintenance of the processor during the pilot. The Niagara Falls, New York processor #3 will be used in the pilot. In the past year that processor, and the rest of the Niagara Falls facility, has undergone extensive scrutiny and review by a national engineering firm. The facility requires minimal preparation to be ready for the pilot to begin. The beginning date will be determined by EcoNavigation. Former Plastic2Oil Chief of Technology John Bordynuik, now acting as a consultant for PTOI will provide guidance as required. The national engineering firm will supervise the pilot for EcoNavigation. The current plan is for the pilot to be completed within the 120 period and EcoNavigation will be responsible for costs associated with the pilot. Plastic2Oil will bear none of the costs associated with the pilot. The tonnage to be processed during the pilot will be determined by and provided by EcoNavigation. While EcoNavigation is a privately held start-up company, it has strong financial and business relationships. During our negotiations with EcoNavigation we have become familiar with their management team and have concluded EcoNavigation has access to both sufficient capital and plastic waste generators to complete the pilot. We are confident the pilot will reach a successful conclusion. Upon the successful completion of the pilot, expected on or before May 1, 2015, we are equally confident EcoNavigation has the financial capability to complete the initial purchase of processors for sites to be located in the state of New York, or elsewhere. We currently have two processors in inventory that are 75% complete. Additional processors and other equipment will be fabricated by outside suppliers, selected by Plastic2Oil, as demand for processors by customers develops. Our contract with EcoNavigation is for a minimum of six processors over a three year period. We continue in negotiations with other purchasers. Plastic2Oil is a lean company with few employees and nominal associated overhead costs. We believe our technology is our most valuable asset and the company will begin realizing that value upon the sale of our first processor. The strategy of our founder, John Bordynuik has been to bring the technology to market with minimum dilution to our loyal shareholders. That continues to be a core objective of our current management team. We will issue further updates on the pilot and the sale of processors as circumstances warrant. About Plastic2Oil Plastic2Oil, Inc., formerly JBI Inc., is a North American fuel company that transforms unsorted, unwashed waste plastic into ultra-clean, ultra-low sulphur fuel without the need for refinement. The Company's Plastic2Oil (P2O) is a process designed to provide immediate economic benefit for industry, communities and government organizations with waste plastic recycling challenges. It is also focused on the creation of green employment opportunities and a reduction in the cost of plastic recycling programs for municipalities and business. The Company's fuel products include No. 6 Fuel, No. 2 Fuel (diesel, petroleum distillate), Naphtha, Petcoke (carbon black) and Off-Gases. No. 6 Fuel is heavy fuel used in industrial boilers and ships. No. 2 Fuel is a mid-range fuel known as furnace oil or diesel. Naphtha is a light fuel that is used as a cut feedstock for ethanol or as white gasoline in high and regular grade road certified fuels. JBI reported a net loss of $13.2 million in 2013 following a net loss of $13.3 million in 2012. As of Sept. 30, 2014, the Company had $8.19 million in total assets, $6.99 million in total liabilities, and $1.19 million of stockholders' equity. MNP LLP, in Toronto, Canada, included a "going concern" qualification in its report on the consolidated financial statements for the year ended Dec. 31, 2013. The independent accounting firm noted that the Company has experienced negative cash flows from operations since inception and has accumulated a significant deficit which raises substantial doubt about its ability to continue as a going concern. PLUSFUNDS GROUP: 2nd Cir. Flips Order Denying Bid to Reopen Case ---------------------------------------------------------------- Harbour Trust Co. Ltd. appeals from the Feb. 13, 2014 judgment of the District Court affirming the May 13, 2013 decision of the United States Bankruptcy Court for the Southern District of New York (James M. Peck, Bankruptcy Judge) denying the Trustee's motion to reopen the Chapter 11 case of Plusfunds Group, Inc. In a Jan. 21, 2015 decision available at http://is.gd/nOLvMIfrom Leagle.com, Circuit Judges Ralph K. Winter, Jose A. Cabranes and Reena Raggi of the U.S. Court of Appeals for the Second Circuit vacated the District Court's judgment, and the cause is remanded for the Bankruptcy Court to explain what prejudice, if any, would result from reopening the bankruptcy case. Headquartered in New York, New York, PlusFunds Group, Inc. -- http://www.plusfunds.com/-- provided hedge funds and other financial services for individual and corporate investors. The Debtor filed for chapter 11 protection on March 6, 2006 (Bankr. S.D.N.Y. Case No. 06-10402). James David Leamon, Esq., and Steven J. Reisman, Esq., at Curtis, Mallet-Prevost, Colt & Mosle represented the Debtor. When the Debtor filed for protection from its creditors, it estimated assets and debt between $1 million and $10 million. PRECISION MEDICAL: Meeting of Creditors Set for Feb. 10 ------------------------------------------------------- The meeting of creditors of Precision Medical Holdings, Inc. is set to be held on Feb. 10, at 9:00 a.m., according to a filing with the U.S. Bankruptcy Court for the Southern District of California. The meeting will be held at the Office of the U.S. Trustee, Suite 660, Hearing Room B, 402 W. Broadway, in San Diego, California. 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 PMH Torrey Pines Precision Medical, LLC, Nikolay Savchuk, and American Medical Wholesale, which are collectively owed $3.7 million, filed an involuntary Chapter 11 petition against Precision Medical Holding, Inc., aka Precision Repair Network (Bankr. S.D. Cal. Case No. 14-09522) on Dec. 8, 2014. The Petitioning Creditors are represented by Jeffry A. Davis, Esq., Mintz Levin Cohn Ferris Glovsky & Popeo, in San Diego, California. PRECISION MEDICAL: Powers of Trustee Defined -------------------------------------------- The Bankruptcy Court entered an order supplementing and clarifying the order on the motion for appointment of a Chapter 11 trustee for Precision Medical Holdings, Inc. Pursuant to the Dec. 15, 2014 order, the Court approved the appointment of Richard Kipperman as Chapter 11 interim trustee for the Debtor. The Court anticipated that another hearing might be necessary to better define the powers and authorities of the trustee in light of the complexity of the business of the Debtor which is carried out through various subsidiaries under the name of Precision Repair Network. The additional hearing was held on Dec. 18. In the supplement order, the Court said that, among other things: 1. The Trustee will have all the powers that the Debtor would have under Section 303(f) of the Bankruptcy Code had a trustee not been appointed. 2. The Trustee will have all the power of a trustee appointed under Section 1104 of the Bankruptcy Code. 3. Specifically, and for the avoidance of doubt, the Trustee is authorized (but not required) to pay or to cause to be paid in the ordinary course of business of the Debtor or its wholly owned subsidiaries (a) wages and payments to full-time independent contractors, including prepetition wages due; (b) prepetition rent due; and (c) other prepetition obligations critical and necessary in the judgment of the Trustee for the continued operations of the Precision Repair Network enterprise. 4. Further, the trustee will have all the protections afforded to a trustee appointed under Section 1104 of the Bankruptcy Code. 5. Further, and pursuant to the authority granted under Section 105 of the Bankruptcy Code, the Court hereby enjoins the commencement of any action or proceeding against the Listed Subs and enjoins the enforcement of any order, judgment, debt, liability, or decree or the taking of any act against the Listed Subs or property of the Listed Subs based on any prepetition debt or liability. As reported in the TCR on Dec. 16, 2014, petitioning creditors Nikolay Savchuk and Torrey Pines Precision Medical, LLC, ask the Bankruptcy Court to issue an order directing the appointment of a Chapter 11 trustee. On or about Dec. 12, 2013, Torrey Pines Investment, LLC, of which Mr. Savchuk is president, purchased 4,000,000 shares of the stock of Precision Medical Holding, Inc., a Nevada corporation, and the Debtor. Those shares amounted to 40% of the shares of PMH. Samvel Saribekian held the remaining 60% of the shares of PMH. Mr. Savchuk tells the Court that, as of Dec. 8, 2014, he has lent $1,150,000 of his own funds to PMH and TPPM has lent an additional $1,950,000 to PMH. About PMH Torrey Pines Precision Medical, LLC, Nikolay Savchuk, and American Medical Wholesale, which are collectively owed $3.7 million, filed an involuntary Chapter 11 petition against Precision Medical Holding, Inc., aka Precision Repair Network, on Dec. 8, 2014 (Bankr. S.D. Calif., Case No. 14-09522). The Petitioning Creditors are represented by Jeffry A. Davis, Esq., Mintz Levin Cohn Ferris Glovsky & Popeo, in San Diego, California. PROSPECT HOLDING: Moody's Affirms 'B2' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service affirmed the Prospect Holding Company, LLC's B2 corporate family and senior unsecured ratings and changed the outlook to negative from stable. Ratings Rationale The ratings affirmations reflect Moody's expectation that the company will return to profitability in 2015 along with its adequate capital of 10.2% as of Q3 2014 as measured by tangible common equity (TCE) to tangible assets. In addition, the ratings reflect the company's solid management team and developing retail origination franchise; Moody's believe the company was approximately the 20th largest retail residential mortgage originator during the first nine months of 2014. The rating is constrained by Prospect's limited franchise positioning, risks embedded in its growth plans, relatively short operating history and limited financial flexibility as a result of its reliance on short-term secured bank warehouse facilities. The negative outlook reflects the company's weak 2014 financial performance which has resulted in a significant decline in the company previously strong capital levels with TCE to tangible assets dropping from 19.0% as of year-end 2013 to 10.2% as of Q3 2014. In the first nine months of 2014, the company reported a net loss of $70.3 million compared with net income of $60.6 million for the same period in 2013 mainly due to decreased net revenues reflecting lower year over year origination volume as well as narrowing loan production margins. Moody's expect the company to regain profitability in Q2 2015. The outlook could return to stable if the company is able to consistently achieve pre-tax, pre-provision core income to assets above 2.5% while maintaining its adequate capital levels (i.e. tangible common equity to total assets above 10%) and strong asset quality along with adequate funding profile. Given the negative outlook, an upgrade is unlikely. Prospect's ratings could be downgraded in the event 1) the company is unable to achieve consistent profitability by Q2 2015 with net income to assets of more than 2%, 2) of a further increase in leverage (i.e. if TCE to tangible assets drops below 7.5%), or 3) of a material decrease in liquidity or available warehouse funding facilities. The principal methodology used in these ratings was Finance Company Global Rating Methodology published in March 2012. PROSPECT PARK: Judge Extends Deadline to Remove Suits to Feb. 3 --------------------------------------------------------------- U.S. Bankruptcy Judge Mary Walrath has given Prospect Park Networks, LLC until Feb. 3, 2015, to file notices of removal of lawsuits involving the company. About Prospect Park Networks Prospect Park Networks, LLC, a Los Angeles, Calif.-based talent and management company, filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-10520) in Wilmington, on March 10, 2014, estimating $50 million to $100 million in assets, and $10 million to $50 million in debts. The petition was signed by Jeffrey Kwatinetz, president. William E. Chipman, Jr., Esq., and Mark D. Olivere, Esq., at Cousins Chipman & Brown LLP, in Wilmington, Delaware; and John H. Genovese, Esq., Michael Schuster, Esq., and Heather L. Harmon, Esq., at Genovese Joblove & Battista, P.A., serve as the Debtor's bankruptcy counsel. The Debtor also hired Cohn Reznick LLP as an ordinary course professional. The U.S. Trustee for Region 3 selected three creditors to serve on the Official Committee of Unsecured Creditors. Cole, Schotz, Meisel, Forman & Leonard, P.A., serves as the Committee's counsel. PROVIDENT FUNDING: Moody's Affirms 'Ba3' Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service, affirmed Provident Funding Associates, L.P.'s Ba3 corporate family and senior unsecured ratings and changed the outlook to negative from stable. Ratings Rationale The affirmation of Provident's Ba3 ratings reflect the company's 1) conservative credit risk appetite; even pre-crisis Provident maintained its focus on very-high quality prime loans, 2) strong capital, 3) historically solid profitability, 4) long, stable operating history, 5) adequate liquidity profile, and 6) small, yet well-established franchise in the highly competitive US residential mortgage banking market. The negative outlook reflects the company's constrained profitability and weaker franchise strength in the current US residential mortgage market. Due to rising interest rates and increased competition, industry wide origination volumes and gain on sale margins have declined. This decline has severely affected Provident's ability to produce loans that meet Provident's conservative lending guidelines, with loan production volume in the first nine months of 2014 falling to just $4.3 billion from $17.6 billion for the same period last year, a 75.6% decline versus industry volume dropping by 44.2%. In addition, loan production margins declined to 0.24% in the first nine months of 2014 from 0.82% in the same period in 2013. The decline in loan originations and margins resulted in a 92% decline in the company's loan production revenue. The outlook could return to stable if the company is able to consistently achieve pre-tax, pre-provision core income to assets above 5.0% while maintaining its strong capital levels (i.e. tangible common equity to total assets above 20%) and strong asset quality along with adequate funding profile. Given the negative outlook, an upgrade is unlikely at this time. Provident's ratings could be downgraded if the company is unable to achieve adequate profitability in the first half of 2015 with pre-tax, pre-provision core income to assets above 2.5%. In addition, Provident's ratings could be downgraded if the company's leverage increases (i.e. tangible common equity to total assets below 15%) or its asset quality or funding profile deteriorate. The principal methodology used in these ratings was Finance Company Global Rating Methodology published in March 2012. R&J LIMITED: Case Summary & 2 Largest Unsecured Creditors --------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- R&J Limited Partnership 15-11029 640 E. Wardlow Rd. Long Beach, CA 90807 JRJ Limited Partnership 15-11040 640 E. Wardlow Rd. Long Beach, CA 90807 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: January 23, 2015 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Hon. Neil W. Bason (15-11029) Hon. Hon. Sandra R. Klein (15-11040) Debtors' Counsel: Vanessa M Haberbush, Esq. HABERBUSH & ASSOCIATES, LLP 444 W Ocean Blvd STe 1400 Long Beach, CA 90802 Tel: 562-435-3456 Fax: 562-435-6335 Email: vhaberbush@lbinsolvency.com Estimated Estimated Assets Liabilities ---------- ----------- R&J Limited Partnership $1MM-$10MM $1MM-$10MM JRJ Limited Partnership $1MM-$10MM $1MM-$10MM The petition was signed by James W. Foasberg, president of R&J Investment Management Inc., general partner of Debtor. A list of R&J Limited's two largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb15-11029.pdf A list of JRJ Limited's two largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb15-11040.pdf RARITY MANAGEMENT: Receiver to Sell Assets; Bids Due Feb. 27 ------------------------------------------------------------ The United States District Court for the Eastern District of Tennessee at Knoxville entered an order in the case, Stooksbury v. Ross, et al. (Case No. 3:09-CV-498-TAV-HBG), directing Sterling P. Owen, IV, in his capacity as receiver, to conduct a private sale of certain assets of Rarity Management Company LLC. The Rarity Bay property that is the subject of the order are: a) Property owned by judgment Debtor Rarity Management Company in Loudon County, Tennessee: -- certain Rarity Bay golf court tracts -- acreage on Rarity Bay Pkwy. -- certain Rarity Bay lot b) Property owned by judgment Debtor Rarity Management Company LLC in Monroe County, Tennessee: -- Rarity Bay declarant rights -- certain Rarity Bay golf course tracts and the Rarity Bay clubhouse -- acreage on Rarity Bay Pkwy. -- certain Rarity Bay lots and undeveloped tracts c) Property owned by judgment Debtor Tellico Lake Properties LP in Loudon County, Tennessee: -- certain Rarity Bay lots d) Property owned by judgment Debtor Tellico Properties LP in Monroe County, Tennessee: -- certain Rarity Bay lots -- certain Rarity Bay golf course tracts and the car path -- Rarity Bay common area e) Property owned by judgment Debtor LTR Properties Inc in Monroe County, Tennessee: -- 11 condominiums units on Rarity Bay pkwy. The receiver will accept private offers to purchase the Rarity Bay Receivership Assets until 5:00 p.m. EST on Feb. 27, 2015. Offers should be submitted to: Sterling P. Owen, IV P.O. Box 2692 Knoxville, TN 37901 The Receiver will have complete discretion over the criteria by which an offer is selected. The offers selected by the Receiver will be presented to the Court subject to a confirmation process. A hearing is set for April 15, 2015, at 1:30 p.m. to confirm the winning offer. REDONDO CONSTRUCTION: Court Rejects Motion in Compliance -------------------------------------------------------- Bankruptcy Judge Enrique S. Lamoutte denied the Motion in Compliance with Opinion and Order filed by Redondo Construction Corp. in its adversary proceedings against the Puerto Rico Highway and Transportation Authority. Each adversary proceeding corresponds to a different project where Redondo intervened as a contractor: Adv. Proc. No. 03-00192 corresponds to project Desvio Sur de Patillas, Adv. Proc. No. 03-00194 corresponds to PR 2 Mayaguez, and Adv. Proc. No. 03-00195 corresponds to Dorado-Toa Alta. On January 13, 2014, the Court entered an Opinion and Order in the adversary proceedings granting Redondo pre-judgment interest at 6% under Article 1061 of the Civil Code of Puerto Rico, 31 L.P.R.A. Sec. 3025, with an accrual period starting from the stipulated dates of substantial completion until PRHTA's final payment on the principal of the principal amounts for each project. In the Motion in Compliance, Redondo argued it is entitled to extended home-office overhead damages for each of the three projects. For the PR-2 Mayaguez project, Redondo argues it is entitled to damages for extended home-office overhead under the percentage-of-direct-costs approach, whereas for the remaining two projects, to wit, Desvio Sur de Patillas and Dorado-Toa Alta, Redondo contends that PRHTA has conceded the claim for extended home-office overhead damages because it forfeited the opportunity granted by the court to file its brief on Redondo's overhead damages5 and thus the overhead damages for those two projects are uncontested. PRHTA filed a Motion to Vacate Overhead Damages, contending that: (a) "Redondo has already received payments for all extended overhead damages for all claims per the Bankruptcy Court Judgment for all adversary proceedings at issue"; (b) Redondo's "only proof in support of the home office overhead is the application of the Eichleay Formula" because it made "no reference whatsoever to proof regarding the way [its] operational expenses were affected"; and (c) "Redondo is not entitled to any extended home office overhead damages, and the profit awards must be proportionately reduced". A copy of the Court's Jan. 21, 2015 Opinion and Order is available at http://is.gd/arCgtJfrom Leagle.com. Redondo Construction Corporation has been in the construction business for 30 years, and worked on many public and government projects. Redondo filed for chapter 11 protection (Bankr. D.P.R. Case No. 02-02887) on March 19, 2002, and the Bankruptcy Court confirmed the Debtor's chapter 11 plan on Oct. 6, 2005. RESTORGENEX CORP: Ally Bridge Reports 9.4% Stake as of Dec. 31 -------------------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, Ally Bridge Group Capital Partners II, L.P., and ABG II-USL1 Limited disclosed that as of Dec. 31, 2014, they beneficially owned 1,775,000 shares of common stock of Restorgenex Corporation representing 9.4 percent of the shares outstanding. A copy of the regulatory filing is available at http://is.gd/E28aPe About RestorGenex RestorGenex Corporation operates as a biopharmaceutical company. It focuses on dermatology, ocular disease, and women's health areas. The company was formerly known as Stratus Media Group, Inc., and changed its name to RestorGenex Corporation in March 2014. RestorGenex Corporation is based in Los Angeles, California. Restorgenex reported a net loss of $2.45 million in 2013 following a net loss of $6.85 million in 2012. The Company's balance sheet at Sept. 30, 2014, showed $50.5 million in total assets, $7.74 million in total liabilities and $42.8 million in total stockholders' equity. Goldman Kurland and Mohidin LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2013. The independent auditors noted that RestorGenex Corporation has suffered recurring losses and has negative cash flow from operations. These conditions, the auditors said, raise substantial doubt as to the ability of RestorGenex Corporation to continue as a going concern. REVEL AC: District Court Won't Halt Sale to Polo North ------------------------------------------------------ Chief District Judge Jerome B. Simandle in New Jersey denied requests for a stay pending appeals of the Jan. 8, 2015 Order of Bankruptcy Judge Gloria M. Burns, approving the sale and purchase of the assets of Revel AC, Inc., et al., free and clear of liens, claims, and encumbrances pursuant to 11 U.S.C. Sec. 363(f). The Appellants are comprised of four groups, with both related and distinct property interests in the Debtors' assets: 1. IDEA Boardwalk, LLC, the Appellant in IDEA Boardwalk, LLC v. Revel AC, Inc., Civil Action No. 15-299 (JBS), operated 3 nightlife venues within the Debtors' casino pursuant to an agreement entered into on May 12, 2012. 2. American Cut AC Marc Forgione, LLC, Azure AC Allegretti, LLC, GRGAC1, LLC, GRGAC2, LLC, GRGAC3, LLC, Lugo AC, LLC, Mussel Bar AC, LLC, PM Atlantic City, LLC, RJ Atlantic City, LLC, and The Marshall Retail Group, LLC -- Amenity Tenants -- the Appellants in American Cut AC Morgione LLC, et al. v Revel AC, Inc., Civil Action No. 15xxx (JBS), similarly operated an array of food, liquor, and retail establishments within the Debtors' casino, in connection with multiple "Lease" Agreements. 3. ACR Energy Partners, LLC -- the 365(h) Appellants -- the Appellant in ACR Energy Partners, LLC v. Revel AC, Inc., Civil Action No. 15-302 (JBS), acted as the Debtor's exclusive provider of hot and chilled water, electric, and other power pursuant to an Energy Sales Agreement dated April 11, 2011. In addition, ACR agreed to construct and operate a central utility plant on property leased by ACR from the Debtors pursuant to a Lease Agreement dated April 8, 2011, in which ACR agreed to pay an annual rental rate of approximately $198,000, payable in monthly installments of approximately $16,500. 4. International Game Technology, the Appellant in IGT v Revel AC, Inc., Civil Action No. 15-317 (JBS), by contrast, sold gaming machine to the Debtors, and provided the financing in connection with such sale. As a result, IGT purports to hold a perfected purchase money security interest in the provided equipment. All argue that the Bankruptcy Court erred in entering a Sale Order that dispossessed them of their purportedly protected property right in the Debtor's Assets, without appropriately accounting for and protecting such rights. The 365(h) Appellants also argue that the Bankruptcy Court erred in three, alternative respects: -- the 365(h) Appellants argue that the Bankruptcy Court erred in permitting a sale of the Debtors' Assets free and clear of the Appellants' leaseholds under section 363(f), despite their purported right to possess under section 365(h); -- even if section 363(f) trumps the possessory interests provided under section 365(h), the 365(h) Appellants, joined by IGT, insist that the Bankruptcy Court erred in finding that the Debtors met their burden to demonstrate the statutory prerequisites for a sale free and clear of claims, liens, and/or encumbrances under section 363(f)(1)-(5); and -- Appellants assert that the Bankruptcy Court permitted a sale free and clear under section 363(f), without providing the Appellants' adequate protection, as required under section 363(e). As reported by the Troubled Company Reporter on January 6, 2015, Judge Burns approved the the sale of Revel Casino Hotel to Florida real-estate developer Glenn Straub -- through his Polo North Country Club, Inc. -- for $95.4 million. A report by Tom Corrigan, writing for The Wall Street Journal, noted that Mr. Straub took the unusual step of objecting to a deal with himself. Judge Burns overruled the objection from Mr. Straub, who sought to reduce the price of the resort to $87 million or void the auction that ended with his $95.4 million offer being named the backup bid. In mid-2014, the Debtors moved for (i) authorization to implement certain bid procedures in connection with the proposed sale of the Debtors' assets, (ii) to schedule an auction and sale hearing, (iii) approval of assignment procedures, and (v) authorization and approval of the sale of the Debtors' assets free and clear of liens, claims, encumbrances, and interests. Despite receiving several bids prior to the initial auction date, none constituted "Qualifying Bids" under the bidding procedures approved by the Bankruptcy Court. Nevertheless, the Debtors continued to market the Debtors' assets, and ultimately reached an agreement with Polo North Country Club, Inc. to act as the stalking horse bidder in connection with a new auction of the Debtors' assets. Following the Bankruptcy Court's approval of modified bid procedures and of the stalking horse agreement with Polo North, the Debtors conducted additional auctions on September 24, 2014, September 30, 2014, and October 1, 2014. Thereafter, the Debtors announced the selection of Brookfield US Holdings, LLC as the successful bidder, with a bid of $110 million, thereby placing Polo North's $94.5 million cash bid in the position of back-up winning bidder. About six weeks later, however, on November 19, 2014, Brookfield repudiated its agreement to purchase the Debtors' assets, and forfeited its $11 million deposit. The Bankruptcy Court thereafter approved the Debtors' decision to terminate the Brookfield sale. The Termination Order, however, preserved all objections requiring further hearing under the Brookfield Sale Order, and scheduled a hearing to approve a sale to Polo North for January 5, 2015. In advance of the hearing, Polo North filed an unusual objection to the Debtors' motion to approve the Polo North sale. In addition, Polo North submitted a proposed order, providing, in accordance with the APA, that the Debtors' assets be transferred to Polo North free and clear of liens, claims, encumbrances and interests, other than Permitted Encumbrances and Assumed Liabilities. The proposed order also provided, however, that that any existing lease, other than those that constitute an Assumed Contract, be "deemed rejected by the Debtors and the Assets shall be transferred to Polo North free and clear of any interest of such non-Debtor party pursuant to section 365(h)." In the wake of Polo North's objection (and proposed order), the section 365(h) Appellants similarly filed limited objections to the Debtors' proposed sale to Polo North. The section 365(h) Appellants specifically argued that section 365(h) forbade the Debtors from selling the Debtors' assets free and clear of the their interests, and alternatively argued that, in any event, the Debtors failed to satisfy any of the necessary preconditions to a section 363(f) sale. As a final alternative objection, the section 365(h) Appellants argued that, in the event the Bankruptcy Court approves a section 363(f) sale, they must receive adequate protection of their interest pursuant to section 363(e). No present party objected to the sale price as being insufficient, nor did they object to the selection of the Awardee, Polo North. The Debtors filed an omnibus reply to all of Appellants' objections, arguing, in accordance with Polo North's proposed order, that section 363(f) permits a sale free and clear of leasehold interests despite section 365(h). In addition, the Debtors argued that "bona fide disputes exist with respect to the validity of the leasehold interests" asserted by the Appellants, and therefore insisted that the Debtors met their burden to demonstrate one of the qualifying conditions for a free and clear sale under section 363(f), namely, that the disputed interests remain "in bona fide dispute," 11 U.S.C. section 363(f) -- arguments purportedly never before raised in connection with the bankruptcy proceeding. The Bankruptcy Court conducted a Polo North Sale Hearing over two days, on January 5 and January 8, 2015. 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. SCOOTER STORE: Bankruptcy Case Transferred to Judge Silverstein --------------------------------------------------------------- The Hon. Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware reassigned the Chapter 11 case of The Scooter Store Holdings Inc. to the Hon. Laurie Selber Silverstein. About The Scooter Store The Scooter Store is a supplier of power mobility solutions, including power wheelchairs, scooters, lifts, ramps, and accessories. The Scooter Store's products and services provide today's seniors and disabled persons potential alternatives to living in nursing homes or other care facilities. Headquartered in New Braunfels, Texas, the Scooter Store has a nationwide network of distribution centers that service products owned or leased by the Company's customers. It has 57 distribution centers in 41 states. Scooter Store Holdings Inc., and 71 affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-10904) in Wilmington. The closely held company listed assets of less than $10 million and debt of more than $50 million. Affiliates of private equity firm Sun Capital Partners, based in Boca Raton, Florida, purchased a majority voting interest in the debtors in 2011. Scooter Store is 66.8 percent owned by Sun Capital Partners Inc., owed $40 million on a third lien. In addition to Sun's debt and $25 million on a second lien owing to Crystal Financial LLC, there is a $25 million first-lien revolving credit owing to CIT Healthcare LLC as agent. Crystal is providing $10 million in financing for bankruptcy. SCRUB ISLAND: Judge Caryl E. Delano Appointed as Mediator --------------------------------------------------------- The Bankruptcy Court entered an order appointing the Hon. Caryl E. Delano as a judicial mediator in the Chapter 11 proceeding of Scrub Island Development Group Limited, et al. The mediation was to commenced on Dec. 9, 2014. The parties are ordered to comply with the requirements with respect to the mediation as may be imposed by Judge Delano regarding a pre-mediation conference, mediation submissions, or otherwise. Each party are required to attend the mediation with counsel and with the individual client or with a corporate client representative with full and absolute authority to agree to a mediated settlement. If an impasse is reached with respect to the mediation as a result of the failure of a party to comply with this requirement, the party will be liable for sanctions to include payment of all fees incurred by the other parties in connection with the mediation. Judge Delano will file a mediation report indicating whether all required parties were present and had authority to settle the contested matter. The report will also indicate whether the matter settled, was continued with the consent of the parties, or whether the mediator declared an impasse. As reported in the TCR on Dec. 9, 2014, the Debtors filed a motion asking Court to consolidate consideration of evidence presented in support of confirmation of the Chapter 11 Plan and the Lender Liability Action with the Declaratory Action with respect to the SIDG and FirstBank Puerto Rico. On Oct. 31, 2014, FirstBank sought a declaration related to rights of FirstBank and SIDG under that certain agreement for purchase and sale dated Dec. 24, 2012, among FirstBank, SIDG, and Scrub Island Utility (BVI) Ltd. FirstBank sought a declaration that the FirstBank Option Agreement is not executory. The Court is hearing evidence related to confirmation of the First Amended Joint Plan of Reorganization of the Debtors, and related to Adversary Proceeding Number 8:14-ap-534 MGW. The Debtors explained that the relief would avert a waste of judicial resources, unnecessary costs and delay, and the potential for inconsistent results in connection with confirmation and the adversaries. 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. SCRUB ISLAND: Vehicle Acquisition Financing Gets Interim Approval ----------------------------------------------------------------- U.S. Bankruptcy Judge Michael G. Williamson authorized, on an interim basis, Scrub Island Development Group Limited, to obtain financing amounting to $75,000, plus an advance for interest and fees with RCB Equities #1, LLC on purchase money lien basis. The Debtors would use the financing to fund the acquisition of the vehicle. The loan will be senior to all existing liens, including any liens of FirstBank Puerto Rico. The vehicle acquisition financing will bear interest at the rate of 2.0% per month on any outstanding advances under the vehicle acquisition financing. The Debtor, in its motion stated that it has previously borrowed funds from RCB on a non-priming basis. The Debtor also stated that because the vehicles will be newly purchased using funds other than the proceeds of FirstBank's collateral, the vehicles will not be subject to liens of FirstBank, and adequate protection within the meaning of 11 U.S.C. Sec. 364(c) is not at issue. The Debtors are represented by: Harley E. Riedel, Esq. Charles A. Postler, Esq. Daniel R. Fogarty, Esq. STICHTER, RIEDEL, BLAIN & PROSSER, P.A. 110 East Madison Street, Suite 200 Tampa, FL 33602 Tel: (813) 229-0144 Fax: (813) 229-1811 E-mail: hriedel@srbp.com cpostler@srbp.com dfogarty@srbp.com 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 scheduled $126 million in assets and $131 million in 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. SHASTA ENTERPRISES: Brady Debunks Potential Conflict ---------------------------------------------------- Davis M. Brady of Cowan & Brady, Shasta Enterprises' proposed bankruptcy co-counsel, responded objections to the Debtors' application to employ Mr. Brady as counsel. Mr. Brady said that a potential conflict does not automatically require disqualification of the attorney. The U.S. Trustee, in its objection, stated that, among other things, the attorney represents JSR Properties, a separate entity that owes money to the Debtor, making Mr. Brady a not "disinterested person." As reported in the Troubled Company Reporter on Jan. 5, 2015, secured creditor Redding Bank of Commerce filed an objection to the Debtor's application to employ Mr. Brady as bankruptcy co-counsel. Redding Bank said that Mr. Brady's declaration of "disinterestedness" became inaccurate when on Nov. 26, 2014, he filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code for JSR Properties. The JSR Properties has listed Shasta Enterprises as an unsecured creditor holding a promissory note with a claim amount of $438,000. As counsel for JSR Properties, Mr. Brady does indeed "hold or represent an interest adverse to the estate" of Shasta Enterprises, and thus fails one of the two preconditions to employment pursuant to Bankruptcy Code Section 327(a). The U.S. Trustee pointed out that the application does not appear to address counsel's concurrent representation of JSR. JSR and the Debtor appear to be related entities. They share the same principal -- Antonio Rodriguez. It further appears that JSR owes money ($438,000) to the Debtor. The Application As reported in the TCR on Nov. 27, 2014, the Debtor is asking the Bankruptcy Court for permission to employ Mr. Brady as bankruptcy co-counsel. Mr. Brady will work with Douglas B. Jacobs of Jacobs, Anderson, Potter and Chaplin LLP to pursue the Chapter 11 matter. The firms will avoid any duplication in efforts. The Debtor agreed that Brady will be paid its normal actual time charges and disbursements, with all fees and costs. Brady's current hourly rate is $325. Prior to the Petition Date, Brady received $30,000. After application of fees, the retainer has a balance of $23,000. To the best of the Debtor's knowledge, Brady is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Shasta Enterprises Redding, California-based Shasta Enterprises, dba Vidal Vineyards, dba Silverado Knolls, dba Villa Vidal Vineyards, sought bankruptcy protection (Bankr. E.D. Cal. Case No. 14-30833) on Oct. 31, 2014. The case is before Judge Michael S. McManus. The Debtor's counsel is David M. Brady, Esq., at Law Office of Cowan & Brady, in Redding, California. The Debtor lists total assets of $33.4 million and total debt of $21.5 million. The petition was signed by Antonio Rodriguez, general partner. Hank Spacone was appointed as Chapter 11 trustee for the Debtor. SHASTA ENTERPRISES: Jacobs Says It Shouldn't Be Disqualified ------------------------------------------------------------ Douglas B. Jacobs, Shasta Enterprises' proposed bankruptcy counsel, responded to objections to the Debtor's application to employ Mr. Jacobs. The objections were filed by the U.S. Trustee and Redding Bank of Commerce. According to Mr. Jacobs, the general rule is that the Court has wide latitude to determine if an attorney should or should not be disqualified. In this relation, a potential conflict does not automatically disqualify an attorney to represent two associate Chapter 11 debtors where one rented property to the other. Mr. Jacobs added that he consents to filing a notice of potential conflict be provided to all of the Debtor's creditors with sufficient information to fully advise then of the possible conflict of interest in the matter As reported in the TCR on Jan. 5, 2015, Redding Bank, a secured creditor, said that Mr. Jacobs' declaration of disinterestedness became inaccurate when on Nov. 26, 2014, he filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code for JSR Properties. Shasta Enterprises was identified on Schedule F filed in the JSR Properties case as an unsecured creditor holding a promissory note with a claim amount of $438,000. As counsel for JSR Properties, Mr. Jacobs does indeed "hold or represent an interest adverse to the estate" of Shasta Enterprises, and thus fails one of the two preconditions to employment pursuant to 11 U.S.C. Sec. 327(a). The Application As reported in the TCR on Nov. 27, 2014, the Debtor is seeking permission to employ Mr. Jacobs of Jacobs, Anderson, Potter & Chaplin, LLP. The Debtor has agreed to pay the firm's $325 hourly rate in exchange for the services. Prior to the Petition Date, the firm received $5,557 for prepetition professional fees. There remains a $24,442 balance of the retainer after application of expenses. To the best of the Debtor's knowledge, Jacobs is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Shasta Enterprises Redding, California-based Shasta Enterprises, dba Vidal Vineyards, dba Silverado Knolls, dba Villa Vidal Vineyards, sought bankruptcy protection (Bankr. E.D. Cal. Case No. 14-30833) on Oct. 31, 2014. The case is before Judge Michael S. McManus. The Debtor's counsel is David M. Brady, Esq., at Law Office of Cowan & Brady, in Redding, California. The Debtor lists total assets of $33.4 million and total debts of $21.5 million. The petition was signed by Antonio Rodriguez, general partner. Hank Spacone was appointed as Chapter 11 trustee for the Debtor. SIGA TECHNOLOGIES: Has Until May 14 to Propose Chapter 11 Plan -------------------------------------------------------------- Bankruptcy Judge Sean H. Lane extended Siga Technologies, Inc.'s exclusive periods to file a chapter 11 plan until May 14, 2015, and solicit acceptances for that plan until July 13. The Court has considered the Debtor's motion at a hearing held Jan. 13. The Debtor, in its reply to the objection of the Statutory Creditors' Committee to its motion, stated that the Committee retained professionals, and filed the objection to the motion for exclusivity extension in an attempt to usurp control of the case for the sole benefit of PharmAthene, Inc. The Debtor also said that the facts show that the Debtor's requested extensions of the exclusive periods are warranted and appropriate to protect the viability of SIGA's business enterprise, its value, and the interests of all economic stakeholders, including its public shareholders. The Committee opposed the exclusivity motion because SIGA's contentions are demonstrably incorrect, and its position—stalling—is unfair and prejudicial to creditors and the enterprise. About SIGA Technologies Publicly held SIGA Technologies, Inc., with headquarters in Madison Avenue, New York, is a biotech/pharmaceutical company that specializes in the development and commercialization of solutions for serious unmet medical needs and biothreats. SIGA's lead product is Tecovirimat, also known as ST-246, an orally administered antiviral drug that targets orthopoxviruses. SIGA sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 14-12623) on Sept. 16, 2014, in Manhattan. The case is assigned to Judge Sean H. Lane. The Debtor has tapped Weil, Gotshal & Manges LLP, as counsel, and Prime Clerk LLC as claims agent. The Debtor's Chapter 11 plan and disclosure statement are due May 14, 2015. The Debtor disclosed total assets of $132 million and $7.95 million in liabilities as of the Chapter 11 filing. The Statutory Creditors' Committee is represented by Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Ehud Barak, Esq., at PROSKAUER ROSE LLP. The Committee tapped to retain Guggenheim Securities, LLC, as its financial advisor and investment banker. SIGA TECHNOLOGIES: Lease Decision Period Extended Until April 15 ---------------------------------------------------------------- Bankruptcy Judge Sean H. Lane extended until April 14, 2015, Siga Technologies, Inc.'s time to assume or reject unexpired leases of nonresidential real property. About SIGA Technologies Publicly held SIGA Technologies, Inc., with headquarters in Madison Avenue, New York, is a biotech/pharmaceutical company that specializes in the development and commercialization of solutions for serious unmet medical needs and biothreats. SIGA's lead product is Tecovirimat, also known as ST-246, an orally administered antiviral drug that targets orthopoxviruses. SIGA sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 14-12623) on Sept. 16, 2014, in Manhattan. The case is assigned to Judge Sean H. Lane. The Debtor has tapped Weil, Gotshal & Manges LLP, as counsel, and Prime Clerk LLC as claims agent. The Debtor's Chapter 11 plan and disclosure statement are due May 14, 2015. The Debtor disclosed total assets of $131.7 million and $7.95 million in liabilities as of the Chapter 11 filing. The Statutory Creditors' Committee is represented by Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Ehud Barak, Esq., at PROSKAUER ROSE LLP. The Committee tapped to retain Guggenheim Securities, LLC, as its financial advisor and investment banker. SOURCE HOME: Asks Court to Extend Deadline to Remove Suits ---------------------------------------------------------- Source Home Entertainment LLC has filed a motion seeking additional time to remove lawsuits involving the company and its affiliates. In its motion, the company asked the U.S. Bankruptcy Court in Delaware to move the deadline for filing notices of removal of the lawsuits to May 19, 2015. Some of the lawsuits involving the companies are subject to removal pursuant to section 1452 of the U.S. Bankruptcy Code, which applies to claims related to bankruptcy cases, according to the court filing. A court hearing to consider the motion is scheduled for Feb. 20. Objections are due by Jan. 30. About Source Home Entertainment and Source Interlink Headquartered in Bonita Springs, Florida, Source Home Entertainment, LLC, manufactures front-end retail checkout displays and is a leading distributor of books, periodicals, and other printed material. Its distribution network spans over 32,500 retail locations in the U.S. and abroad. In the twelve months ended April 30, 2014, Source Home generated revenues totaling approximately $600 million on a consolidated basis. As of March 31, 2014, Source Home had assets (not including goodwill or intangibles) of $205 million and liabilities of approximately $290 million. Source Interlink Distribution, LLC disclosed $82,729,238 in assets and $104,521,951 in liabilities. Source Home, Source Interlink Manufacturing, LLC, and other affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-11553) on June 23, 2014, to sell their front-end retail display fixtures business to lenders, absent higher and better offers. The Debtors are winding down their books distribution business. The Debtors have tapped Kirkland & Ellis LLP as general bankruptcy and corporate counsel; Young Conaway Stargatt & Taylor, LLP, as co-counsel, FTI Consulting, Inc., as crisis and turnaround advisor; and Kurtzman Carson Consultants, LLC, as claims agent. Stephen Dube has been designated by the Debtors to act as chief restructuring officer and Joshua Korsower to act as chief financial officer. The United States Trustee for Region 3 appointed seven creditors to serve on the Official Committee of Unsecured Creditors. The Committee is represented by Lowenstein Sandler LLP, and Duane Morris LLP. The Committee tapped PricewaterhouseCoopers LLP as its financial advisor. ST MARY'S HOSPITAL: Urena and Faltas-Fouad Suits Remanded --------------------------------------------------------- Eunise Urena and Dr. Faltas-Fouad seek to hold Princeton Insurance Company; St. Mary's Hospital, Passaic, N.J., et al., responsible for providing Dr. Faltas-Fouad with malpractice insurance that would cover costs and liabilities she may incur in a separate medical malpractice action pending in state court. Plaintiffs originally filed their lawsuits in state court and Defendant St. Mary's Hospital timely removed. St. Mary's contends that the New Jersey District Court possesses federal bankruptcy jurisdiction under 28 U.S.C. Sec. 1334(b) because the contracts Plaintiffs seek to enforce were rejected in a St. Mary's plan of reorganization that the bankruptcy court confirmed in 2010. New Jersey District Judge William J. Martini concludes that while Plaintiffs' actions 'relate to' St. Mary's bankruptcy, thereby creating jurisdiction under Sec. 1334(b), they nonetheless must be remanded pursuant to the doctrine of mandatory abstention. Judge Martini granted Plaintiffs' motions to remand. A copy of the Court's January 20, 2015 Opinion is available at http://is.gd/2OVXtNfrom Leagle.com. The cases are, SUZAN FALTAS-FOUAD, M.D., Plaintiff, v. ST MARY'S HOSPITAL, PASSAIC, N.J., A New Jersey Non-Profit Corporation Defendant. EUNISE URENA, As Guardian and Proposed Administratrix of the Estate of Nativad Abreu, Plaintiff, v. PRINCETON INSURANCE COMPANY; ST. MARY'S HOSPITAL, PASSAIC, N.J., et al., Defendants, CIV. NOS. 2:14-5228 (WJM), 2:14-06021 (WJM)(D. N.J.). About St. Mary's Hospital, Passaic, N.J. St. Mary's Hospital, Passaic, N.J., filed for Chapter 11 protection (Bankr. D.N.J. Case No. 09-15619) on March 9, 2009. Joseph Lubertazzi, Jr., Esq., at McCarter & English assists the hospital in its restructuring effort. St. Mary's listed assets of $70.8 million and debts of $128 million. St. Mary's plan of reorganization was approved by the Hon. Morris Stern of the U.S. Bankruptcy Court in Newark in February 2010. ST. CHARLES PARISH: Moody's Puts Ba1 Rating on Review for Downgrade ------------------------------------------------------------------- Moody's Investors Service has placed under review for possible downgrade the rating of St. Charles Parish Hospital Service District 1's, LA, General Obligation debt outstanding affecting $22.3 million in rated debt. The outlook takes into consideration an additional $26.1 million in outstanding parity debt that is not rated by Moody's. The bonds are secured by and payable from unlimited ad valorem taxation. Summary Rating Rationale The Ba1 rating primarily reflects the hospital's exceptionally narrow liquidity position, very weak operating performance driven by declining inpatient admissions, and a high debt load for this small sized hospital. The current rating is bolstered by the strength of the Louisiana unlimited tax pledge securing the outstanding bonds, a relatively stable economy that has concentration in the oil and gas sector, and a recent management agreement with Ochsner Health System. The rating also takes into consideration the lock-box nature of the pledge as property tax collections are sent directly to a trustee for debt service requirements prior to flowing to the district. Outlook Moody's places under review the current Ba1 rating for possible downgrade as there is uncertainty regarding the district's fiscal 2014 financial performance, liquidity position, and impact of the recent management agreement signed with Oschner Health System. What Could Make The Rating Go Up -- Trend of positive operating cash flow generation that lead to building and maintaining cash reserves at adequate levels -- Continued growth and diversification of the district's tax base -- Decline in the district's debt profile What Could Make The Rating Go Down -- Continued weakness in the district operating performance -- Any further decline in liquidity -- Contraction of the tax base -- Significant debt issuance that increases district's debt profile Obligor Profile The district is a parish-wide hospital service district located in the Parish of St. Charles, LA. The parish is located in the southern portion of Louisiana and is considered a part of the New Orleans Metropolitan area. The district has an area of roughly 295 square miles and an estimated population of 52,681. Legal Security The bonds are payable from the annual levy and collection of unlimited ad valorem taxes on all the taxable property within the boundaries of the district sufficient to pay the bonds in principal and interest as they mature. Use Of Proceeds Not Applicable. Principal Methodology The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. STEARNS HOLDINGS: Moody's Affirms 'B2' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service, affirmed Stearns Holdings, Inc's B2 corporate family and senior secured ratings. The outlook is stable. Ratings Rationale The affirmation reflects Stearns' adequate profitability as reflected by the company's 1.96% net income to average managed assets for the nine months ended 30 September 2014 resulting from its prompt rightsizing of operating costs amid a decline in industry origination volume. Moody's believe Stearns' capital level is adequate while the company's leverage has increased (i.e. tangible common equity to tangible assets declined to 12.9% as of September 30, 2014 from 19.8% as of yearend) as the assets growth outpaced growth in equity capital. The stable outlook reflects Moody's expectation that Stearns will be able to profitably grow while employing modest leverage. The company's B2 ratings are constrained by its transitioning strategic direction (retaining MSRs, growth aspirations, new management team), limited franchise positioning in the highly competitive residential mortgage originations market, and confined financial flexibility due to reliance on short-term secured bank warehouse facilities to finance the company's mortgage originations. Given the company's transitioning strategic direction, an upgrade is unlikely at this time. Negative ratings pressure could develop 1) if the company is unable to achieve sustained net income to average assets above 2.0%, 2) if leverage increased materially (i.e. if tangible common equity to tangible assets drops below 7.5%), or 3) if liquidity and available warehouse funding facilities materially decline. The principal methodology used in these ratings was Finance Company Global Rating Methodology published in March 2012. STEPHEN YELVERTON: Case vs. Siblings Won't Proceed as Class Suit ---------------------------------------------------------------- Bankruptcy Judge S. Martin Teel, Jr. denied a motion by Yelverton for the certification of an adversary proceeding -- he filed against his sisters, Deborah Marm and Phyllis Edmundson, asserting various business law and tort causes of action -- as a class action on behalf of all creditors and to amend the amended complaint to bring class allegations. "Because the amended complaint fails to state a claim upon which relief can be granted, there is no point in making such a certification. Moreover, Yelverton is not an attorney who is a member of the bar of the district court of which this court is a unit under 28 U.S.C. Sec. 151 and thus he is not authorized to represent any such creditors in this adversary proceeding," the judge held. The decision was handed down in In re STEPHEN THOMAS YELVERTON, Chapter 7 Debtor. STEPHEN THOMAS YELVERTON, Plaintiff, v. DEBORAH MARM and PHYLLIS EDMUNDSON, Defendants, CASE NO. 09-00414, ADVERSARY PROCEEDING NO. 14-10024, (Bankr. Columbia). A copy of the judge's Dec. 11, 2014 Memorandum Decision is available at http://is.gd/elDubefrom Leagle.com. SUPPLEMENTWAREHOUSE.COM: Case Summary & 20 Top Unsec. Creditors --------------------------------------------------------------- Debtor: SupplementWarehouse.com Inc. 2440 Corporate Preserve Drive, Suite 100 Oak Creek, WI 53154 Case No.: 15-20569 Chapter 11 Petition Date: January 24, 2015 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Debtor's Counsel: Forrest B. Lammiman, Esq. MELTZER, PURTILL & STELLE LLC 300 S. Wacker Drive, Suite 350 Chicago, IL 60606-6704 Tel: 312-987-9900 Email: flammiman@mpslaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Robert Lauby, CEO. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/wieb15-20569.pdf TRAVELPORT WORLDWIDE: Hikes Revolving Credit Facility by $25MM -------------------------------------------------------------- Travelport Worldwide Limited, on Jan. 16, 2015, entered into an incremental amendment among Travelport Finance (Luxembourg) S.a.r.l., Travelport Limited, UBS AG, Stamford Branch, Deutsche Bank AG New York Branch, and consented and agreed to by Deutsche Bank AG New York Branch, Credit Suisse AG, Cayman Islands Branch and Morgan Stanley Senior Funding, Inc., to the Company's credit agreement, dated as of Sept. 2, 2014. The Amendment, among other things, (i) increases the amount of revolving credit commitments by $25 million for total revolving credit commitments of $125 million under the Credit Agreement and (ii) designates UBS as an additional letter of credit issuer under the Credit Agreement and reallocates the letter of credit sub-limit among the letter of credit issuers. Certain of the agents and lenders party to the Amendment, and their respective affiliates, have performed, and may in the future perform, various commercial banking, investment banking and other financial advisory services for the Company and its subsidiaries for which they have received, and will receive, customary fees and expenses. About Travelport Worldwide Travelport Worldwide Limited is a travel commerce platform providing distribution, technology, payment and other solutions for the global travel and tourism industry. The Company's balance sheet at Sept. 30, 2014, showed $2.99 billion in total assets, $3.20 billion in total liabilities and a $210 million total deficit. * * * As reported by the TCR on Sept. 8, 2014, Standard & Poor's Ratings Services raised to 'B-' from 'CCC+' its long-term corporate credit ratings on U.K.-based travel services provider Travelport Worldwide Limited and its new wholly owned financing entity, Travelport Finance (Luxembourg) S.a.r.l. (Travelport Finance). The outlook is stable. TURNER GRAIN: U.S. Trustee Appoints Creditors' Committee -------------------------------------------------------- The U.S. Trustee for Region 13 appointed three creditors of Turner Grain Merchandising, Inc., to serve on the official committee of unsecured creditors: (1) Southern Rice & Cotton, LLC c/o Lyndsey D. Dilks P.O. Box 26426 Little Rock, AR 72221 Tel: 501-312-0010 Email: ldilks@luekendilkslaw.com (2) Delta Grain Marketing, LLC c/o Bryant Marshall P.O. Box 4034 Jonesboro, AR 72403 Tel: 870-932-8137 Email: Bryant@marshallattorney.net (3) Reid and Lynn Grizzle Partnership 8189 Highway 302 Brinkley, AR 72021 c/o Kimberly Wood Tucker and Seth Jewell 200 W. Capitol Ave., Suite 2300 Little Rock, AR 72201 Tel: 501-371-0808 Email: ktucker@wlj.com Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About Turner Grain Turner Grain Merchandising, Inc., sought bankruptcy protection (Bankr. E.D. Ark. Case No. 14-bk-15687) in Helena, Arkansas, on Oct. 23, 2014. Kevin P. Keech, the court-appointed receiver of the Debtor, sought and obtained permission to employ Keech Law Firm, P.A. as attorneys. U.S. CELLULAR: Fitch Rates $225-Mil. Sr. 7-Year Loan 'BB+' ---------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to United States Cellular Corp.'s (USM) senior unsecured, seven-year term loan for up to $225 million. Proceeds will be used for general corporate purposes, including capital expenditures and potential spectrum purchases. USM's Issuer Default Rating (IDR) is 'BB+' with a Stable Outlook. USM's ratings consider the consolidated ratings at its parent Telephone and Data Systems, Inc. (TDS), which also has an IDR of 'BB+' and a Stable Rating Outlook. KEY RATING DRIVERS The 'BB+' IDR reflects the challenges USM's wireless operations face in the highly competitive wireless environment, which has led to weak EBITDA margins and lower EBITDA. While subscriber trends in core markets have begun to stabilize in the second half of 2014 (2H'14), operating profitability in 2014 is expected to be suppressed due to billing system issues early in the year as well as higher losses on equipment driven by strong smartphone sales. Postpaid subscriber additions at USM have been under material pressure for several years. In 4Q'13, USM began selling the iPhone which Fitch believes may reduce voluntary churn over time, and should the company succeed in improving gross additions, may eventually lead to subscriber growth. As results stabilize and potentially improve, increased losses on equipment are expected as USM loads more costly 4G LTE smartphones onto its network, with the impact being offset by increased service revenue over time. Losses on equipment could come down if there is a strong uptake of equipment installment plans. The ratings at TDS and USM reflect the current strong liquidity position owing to substantial cash balances, conservative balance sheet, undrawn revolving credit facilities and long-dated maturities. The consolidated company does not have any material maturities until 2033. Fitch expects TDS's gross leverage to rise to approximately 3x-3.1x at year-end 2014, up from 2.1x at year-end 2013. Fitch has included a portion of partnership distributions (at a level which Fitch views is sustainable) received from entities it does not control in its calculations. Assuming participation in upcoming wireless spectrum auctions, the sale of its non-core tower business and continued wireless network investment, Fitch expects leverage to remain around the 3x-3.1x level in the intermediate term. Fitch expects free cash flow (FCF) levels in 2014 and 2015 to be negative due to the continued high level of capital investment and weaker wireless performance. The sale of noncore assets has mitigated the effect of negative FCF on USM and TDS. USM is in the process of selling the wireless towers located in the Chicago and St. Louis markets that were sold to Sprint. This follows the sale of certain wireless spectrum licenses in 2013 and 2014 for more than $400 million. In relation to its total outstanding debt of $1.72 billion at Sept. 30, 2014, TDS has relatively high balances of cash and short-term investments, which amounted to $573 million and $40 million, respectively. Per policy, the company's maturities are very long. The earliest notes at TDS are due in 2045 ($116 million) and at USM the earliest maturity is in 2033 ($532 million). At TDS, the $400 million, undrawn revolving credit facility matures in December 2017, and at USM, the $300 million undrawn revolving credit facility matures in December 2017 as well. RATING SENSITIVITIES Negative Rating Action: Longer term, Fitch believes TDS's and USM's ability to grow revenues and cash flows while competing effectively against much larger national operators is key to maintaining their 'BB+' IDRs. In addition, if gross leverage--calculated including partial credit for material wireless partnership distributions in EBITDA--approaches 3.5x, a negative action could be contemplated. Positive Rating Action: Fitch believes that competitive factors, current subscriber trends and the company's relative position in the wireless industry would not likely allow a positive rating action at this time. U.S. COAL: Premium Finance Deal With IPFC Corp. Okayed ------------------------------------------------------ The Hon. Tracey N. Wise of the U.S. Bankruptcy Court for the Eastern District of Kentucky authorized Licking River Resources, Inc., and its debtor-affiliates to enter into and perform under a Premium Finance Agreement with IPFS Corporation. The Court also authorized the Debtors to make all the required payments and grant first-priority liens and security interests. As reported in the Troubled Company Reporter on Jan. 19, 2015, in the ordinary course of their businesses, the Debtors maintain multiple types of insurance. As the parent entity, U.S. Coal has historically obtained policies providing coverage for certain of the related Debtors as applicable and necessary. When larger policies are required, U.S. Coal has historically financed the premiums. The Debtors' automobile, general liability, and umbrella policies were set to expire on Dec. 31, 2014, if they were not renewed. The Debtors have worked diligently with their insurance broker to obtain the requisite insurance policies and to obtain financing for the related premiums. After considering all potential options, the Debtors have determined in the exercise of their business judgment that it is in the best interests of their estates, creditors, and all other parties in interest to obtain the requisite automobile, general liability, and umbrella insurance policies identified in the Agreement from Great Midwest Insurance Co. / HIIG Underwriters Agency Inc. and to finance the related premiums under the Agreement with the Lender. Under the terms of the Agreement, the financed premiums for the Policies total $242,000. Debtor U.S. Coal is required by the Agreement to make a required cash down payment of $72,600, leaving a balance of $169,000 to be financed by the Lender. Following the Down Payment, the Agreement requires U.S. Coal to pay eight monthly installments of $21,800 to the Lender beginning on Feb. 1, 2015. The installments will accrue interest at a rate of 7.40%, which will yield a total financing charge of $4,730. To secure payment of all amounts due under the Agreement, the Lender will be granted a security interest in all right, title, and interest to the Policies, including: (a) all money that is or may be due insured because of a loss under such policy that reduces the unearned premiums (subject to the interest of any applicable mortgagee or loss payee); (b) any unearned premium under each such policy; and (c) interests arising under a state guarantee fund. To ensure there would be no lapse in coverage while the Agreement and insurance premium financing contemplated thereunder were presented to this Court, the Debtors renewed the Polices in December and will pay the Lender $24,200 by Dec. 30, 2014 to confirm that renewal, both in the ordinary course of their business. This payment amount will be credited against the Down Payment of $72,600 required by the Agreement if the Agreement is approved. The Lender has specifically conditioned its consent to enter into the Agreement upon the Debtors' agreement to the following terms contemplated in the proposed order tendered herewith, which are acceptable to the Debtors: a) The Agreement grants the Lender a lien and security interest in any unearned premium under the Policies identified in the Agreement. Prior to its entry into the Agreement, the Lender requires that the Court shall have ordered that the Lender's lien and security interest in all unearned premiums under the Policies identified in the Agreement shall be senior to any security interests and/or liens on those assets granted to any other secured creditors in the Debtors' cases. b) The Agreement grants the Lender a lien and security interest in all loss payments under the Policies that reduce unearned premiums. Prior to its entry into the Agreement, the Lender requires that the Court shall have ordered that the Lender's lien and security interest in any loss payments under the Policies shall be senior to any security interests and/or liens on those assets granted to any other secured creditors in the Debtors' cases, but shall be subject to the interest of any mortgagees or other payees. c) Prior to its entry into the Agreement, the Lender requires that the Court will have ordered that the Lender's liens and security interests shall be deemed fully perfected without further action by the Lender after entry of an order granting the Motion. d) In the event of a default by the Debtors in making the monthly payments under the Agreement, but subject to a 10- day notice and cure period, the Agreement allows the Lender to cancel the insurance Policies identified in the Agreement and apply to the Debtors' account the unearned premiums and, subject to the rights of mortgagees or other loss payees, any loss payments which reduce the unearned premiums. Prior to its entry into the Agreement, the Lender requires that the Court shall have ordered that the Lender may exercise its rights under the Agreement in the event of such default without moving for relief from the automatic stay of 11 U.S.C. Sec. 362 and without further order of the Court. e) Prior to its entry into the Agreement, the Lender requires that the Court shall have ordered that, in the event that unearned premiums or other amounts due under the Policies are insufficient to pay the total amount owing by the Debtors to the Lender, any remaining amount owing to the Lender, including reasonable attorneys' fees and costs, will be deemed an administrative expense of these Estates entitled to priority over any and all administrative expenses of the kind specified in 11 U.S.C. Sec. 503(b) or 507(b), pursuant to 11 U.S.C. Sec. 364(c)(1), whether incurred in the Debtors' Chapter 11 cases or after conversion of the cases to cases under Chapter 7 of the Bankruptcy Code. f) Prior to its entry into the Agreement, the Lender requires that the Court shall have ordered that any monies due under the Agreement not otherwise satisfied through unearned premiums or through payment of an allowed administrative claim filed by the Lender will not be subject to discharge or release in the Chapter 11 proceedings or any corresponding Chapter 7 proceedings, notwithstanding any provision to the contrary set forth in any Chapter 11 Plan or Confirmation Order entered in the Chapter 11 cases. The Debtors believe that the terms are commercially fair reasonable and appropriate under the circumstances and that the Lender is extending financing under the Agreement in good faith. About U.S. Coal and Licking River On May 22, 2014, an involuntary Chapter 11 petition was filed against Licking River Mining, LLC, before the United States Bankruptcy Court for the Eastern District of Kentucky. On May 23, 2014, an involuntary Chapter 11 petition was filed against Licking River Resources, Inc. and Fox Knob Coal., Inc. On June 3, 2014, an involuntary Chapter 11 petition was filed against S.M. & J., Inc. On June 4, 2014, an involuntary Chapter 11 petition was filed against J.A.D. Coal Company, Inc. On June 12, 2014, the Court entered an order for relief in each of the bankruptcy cases. On June 10, 2014, an involuntary Chapter 11 petition was filed against U.S. Coal Corporation. On June 27, 2014, the Court entered an order for relief in U.S. Coal's bankruptcy case. On Nov. 4, 2014, Harlan County Mining, LLC, Oak Hill Coal, Inc., Sandlick Coal Company, LLC, and U.S. Coal Marketing, LLC, filed petitions in the United States Bankruptcy Court for the Eastern District of Kentucky seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors' cases have been assigned to Chief Judge Tracey N. Wise. The Debtors are seeking to have their cases jointly administered for procedural purposes, meaning that upon entry of such an order all pleadings will be maintained on the case docket for Licking River Mining, LLC, Case No. 14-10201. U.S. Coal produces and sells thermal coal purchased primarily by utilities and trading companies and specialty coal purchased by various industrial customers and trading companies (known as "stoker" coal). U.S. Coal operates through two divisions: (1) the Licking River Division that was formed through the acquisition of LR Mining, LRR, and S.M. & J., and Oak Hill Coal, Inc. in January 2007 for $33 million., and (2) the J.A.D. Division that was formed through the acquisition of JAD and Fox Knob, and Sandlick Coal Company, LLC and Harlan County Mining, LLC in April 2008 for $41 million. Both the LRR Division and the JAD Division are located in the Central Appalachia region of eastern Kentucky. The LRR Division has approximately 26.3 million tons of surface reserves under lease. The JAD Division has 24.4 million tons of surface reserves, both leased and owned real property. At present, U.S. Coal has three surface mines in operation between the LRR Division and JAD Division. The Official Committee of Unsecured Creditors has tapped Barber Law PLLC and Foley & Lardner as attorneys. The Debtors are represented by Amelia Martin Adams, Esq., and Laura Day DelCotto, Esq. of Delcotto Law Group PLLC; and Dennis J. Drebsky, Esq., and Christopher M. Desiderio, Esq., of Nixon Peabody LLP. U.S. FARATHANE: Moody's Assigns 'B2' Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service assigned U.S. Farathane, LLC (USF) first-time ratings including a B2 Corporate Family Rating (CFR) and B2-PD Probability of Default Rating. Moody's also assigned a B2 rating to the company's new $390 million senior secured first lien term loan. USF utilized the proceeds from the term loan, a $20 million drawdown on its new $80 million asset-based revolver and an equity contribution to fund the approximate $700 million acquisition of the company by the Gores Group (Gores). The rating outlook is stable. Moody's assigned the following ratings to U.S. Farathane, LLC : Corporate Family Rating, B2 Probability of Default Rating, B2-PD Senior Secured First Lien Term Loan, B2, LGD4 Rating outlook is Stable Ratings Rationale USF's B2 CFR incorporates its rapid growth into a leading supplier of functional black molded plastic products to the major US automotive Original Equipment Manufacturers (OEMs), tempered by the company's high leverage, significant customer concentration, and exposure to cyclical auto sales. USF's design and development of highly customized solutions is driving new platform wins and increasing market share, although Moody's believes the company's expansion will taper substantially. Customer relationships are enhanced by product offerings that reduce labor and part costs while diminishing noise, vibration and rattle (NVH), lowering vehicle weight and enhancing aerodynamics. USF's multiple processes (high tonnage and single-and multi-shot injection) provide broad product capabilities. Revenue visibility is good for the next three years and supports modest growth given existing booked platform contracts and third party production estimates. The rating is constrained due to exposure to the automotive cycle and the company's modest scale, with 2014 revenues expected to be near $500 million and no meaningful overseas business. USF's low leverage leading into the prior downturn, and good cost discipline allowed it to manage through the recession better than some competitors even though its sales dropped by approximately 17-18% in both 2008 and 2009. The company was able to pick up business from suppliers that shut down, and this along with key platform wins drove significant growth as vehicle sales recovered. Moody's believes that the company's higher debt-to-EBITDA leverage of approximately 4x (projected 2014 incorporating Moody's standard adjustments) provides less flexibility to manage future downturns. Event risk related to debt-funded acquisitions or potential shareholder distributions is also elevated under private equity ownership. USF generates roughly 90% of its revenue from General Motors, Ford and Chrysler and the significant customer concentration is a credit risk as production cutbacks, platform losses, or pricing pressure would cause a disproportionate impact on USFs revenues and earnings. Moody's views the company's liquidity as good. Cash flow from operations should exceed total capex in 2015, and maintenance capex is projected to be less than 2% of annual revenue. Moody's projects USF's approximate $7-10 million of free cash flow in 2015, and grow thereafter, will be sufficient to fund the 1% required annual term loan amortization. Working capital will consume some cash, but is potentially volatile. USF will have availability of $60 million at closing under its $80 million five-year ABL revolver, and will be used primarily for modest working capital needs as well as growth capex and modestly sized acquisitions. The borrowing base comfortably exceeds the revolver commitment. The term loan has a maximum leverage covenant, under which USF will have a reasonable initial cushion. Finally, with all wholly owned domestic assets pledged to the ABL there is little alternative sources for liquidity. The term loan has a second lien on receivables, inventory and tooling and a first lien on substantially all other assets. Moody's believes the ABL security package is stronger, and ranks the term loan behind the revolver in Moody's loss given default framework. Because the term loan represents the bulk of the debt, the B2 instrument rating is the same as the CFR. The stable rating outlook incorporates Moody's expectation that USF will generate positive free cash flow while growing modestly and maintaining solid relationships with its OEM clients. Moody's also anticipates debt-to-EBITDA leverage will decline to approximately 3.8x in 2015 through earnings growth and modest required term loan payments. Moody's would likely adjust the rating lower should USF's free cash flow were to weaken, liquidity deteriorates, or debt-to-EBITDA leverage increased above 5x due to operating weakness, merger or acquisition activity, or payments to equity owners. Customer or platform losses, production cuts, or pricing pressure would also increase downward pressure on the rating. A higher rating is unlikely given the company's modest scale and high customer concentration. However, Moody's would consider an upgrade if USF continues to profitably increase its scale, improves customer and platform diversity, sustains and grow free cash flow, and reduces debt-to-EBITDA leverage. US Farathane is headquartered in Auburn Hills, Michigan and operates ten manufacturing facilities throughout the United States. The company is a solutions partner to the North American automotive OEM's providing functional black plastic, and interior and exterior plastic components. US Farathane customers include Chrysler, Ford, General Motors, Honda, Toyota and several other large global OEM's. Moody's forecasts annual revenue of about $510 million in 2015. The principal methodology used in these ratings was Global Automotive Supplier Industry published in May 2013. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. VERMILLION INC: Matthew Strobeck Held 7.3% Stake at Dec. 23 ----------------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission, Matthew Strobeck disclosed that as of Dec. 23, 2014, he beneficially owned 3,165,180 shares of common stock of Vermillion, Inc., representing 7.3 percent of the shares outstanding. Birchview Capital, LP, also owned 3,134,180 shares as of that date. A copy of the regulatory filing is available for free at http://is.gd/thmU8y 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. WET SEAL: Final DIP Hearing Set for Feb. 5 ------------------------------------------ Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware gave The Wet Seal, Inc., et al., interim authority to obtain postpetition loans from B. Riley Financial, Inc., and Bank of America, N.A., and scheduled a final hearing on the DIP requests for Feb. 5, 2015, at 2:00 p.m. (prevailing Eastern time). The Debtors were given interim authority to obtain (i) from B. Riley up to $1 million; and (ii) from BofA, as DIP L/C Issuer up to $18.3 million. As previously reported by The Troubled Company Reporter, B. Riley serves as DIP Lender under the Senior Secured, Super-Priority Debtor-in-Possession Credit Agreement, dated as of Jan. 15, 2015. The DIP Financing Agreement provides for a senior secured, super-priority credit facility of up to $20.0 million on the closing date of the DIP Financing, and the availability of which is reduced by an $5.0 million availability block, which Availability Block is subject to reduction at the sole discretion of the Lender. BofA is the L/C Issuer under the Senior Secured, Super-Priority Debtor-in-Possession Letter of Credit Agreement, dated as of Jan. 15, 2015. The DIP L/C Agreement provides for a senior secured, super-priority debtor-in-possession letter of credit facility of up to approximately $18.3 million on the closing date of the DIP LC Financing. The Debtors are also given interim authority to use cash collateral securing their prepetition indebtedness from B. Riley and BofA. Objections to the entry of the proposed final order must be submitted no later than Jan. 29. If no objections are filed and served on or before the deadline, no final hearing may be held and a separate final order may be presented jointly by the Debtors and by the DIP L/C Issuer and entered by the Court. Versa Capital Management, LLC, which submitted to the Debtors a proposal for an alternative DIP Term Loan and plan sponsorhip, asks the Court to either deny the DIP Motion or approve the DIP Motion substituting Versa as the DIP Lender and plan sponsor. Versa complains that the prepetition connections between the Debtors and B. Riley must be scrutinized before B. Riley's comprehensive scheme for acquiring the Debtors' assets is permitted to proceed. Versa points out that it appears that B. Riley acted as the Debtors' financial advisor and agent, and as recently as Sept. 30, 2014, held more than 125,000 shares of the Debtors. Counsel for the DIP Lender: Van C. Durrer, II, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP 300 South Grand Avenue, Suite 3400 Los Angeles, CA 90071 E-mail: van.durrer@skadden.com Counsel for the Prepetition Secured Parties: Steven E. Fox, Esq. RIEMER & BRAUNSTEIN LLP Times Square Tower Seven Times Square, Suite 2506 E-mail: sfox@riemerlaw.com -- and -- Steven K. Kortanek, Esq. WOMBLE CARLYLE SANDRIDGE & RICE, LLP 222 Delaware Avenue, Suite 1501 Wilmington, DE 19801 E-mail: skortanek@wcsr.com Counsel for Versa Capital: Domenic E. Pacitti, Esq. KLEHR HARRISON HARVEY BRANZBURG LLP 919 N. Market Street, Suite 1000 Wilmington, DE 19801 Tel: (302) 426-1189 Fax: (302) 426-9193 E-mail: dpacitti@klehr.com -- and -- Morton Branzburg, Esq. KLEHR HARRISON HARVEY BRANZBURG LLP 1835 Market Street, Suite 1400 Philadelphia, PA 19103 Tel: (215) 569-2700 Fax: (215) 568-6603 E-mail: mbranzburg@klehr.com -- and -- Nancy A. Peterman, Esq. GREENBERG TRAURIG, LLP 77 West Wacker Drive, Suite 3100 Chicago, IL 60601 Tel: (312) 456-8400 Fax: (312) 456-8435 E-mail: petermann@gtlaw.com About Wet Seal The Wet Seal, Inc., and three affiliates -- The Wet Seal Retail, Inc., Wet Seal Catalog, Inc., and Wet Seal GC, LLC -- filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 15-10081 to 15-10084) on Jan. 15, 2015. The Debtors are a national multi-channel retailer selling fashion apparel and accessory items designed for female customers aged 13 to 24 years old. Wet Seal listed total assets of $92.8 million and total liabilities of $103.4 million as of Nov. 1, 2014. The Hon. Christopher S. Sontchi presides over the jointly administered cases. Maris J. Kandestin, Esq., and Michael R. Nestor, Esq., at Young Conaway Stargatt & Taylor, LLP; Lee R. Bogdanoff, Esq., Michael L. Tuchin, Esq., David M. Guess, Esq., and Jonathan M. Weiss, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP; and Paul Hastings LLP, serve as the Debtors' Chapter 11 counsel. FTI Consulting serves as the Debtors' restructuring advisor. The Debtors' investment banker is Houlihan Lokey. The Debtors tapped Donlin, Recano & Co., Inc. as claims and noticing agent. The petitions were signed by Thomas R. Hillebrandt, interim chief financial officer. YARWAY CORP: Modifies Disclosure Statement, PI Panel Supports Plan ------------------------------------------------------------------ Yarway Corporation and its parent Tyco International plc modified the disclosure statement explaining the Chapter 11 plan of reorganization for Yarway on the eve of the Jan. 26 hearing on the approval of the disclosure statement. The centerpiece of the Plan is the establishment of a trust under Section 524(g) of the Bankruptcy Code that will channel all current asbestos-related claims and future asbestos-related demands to the Asbestos Personal Injury Trust. The scope of the injunction will, among other things, cover all current and future asbestos-related personal injury and wrongful death claims, demands and causes of action based in whole or in part on actual or alleged conduct or products of Yarway or Gimpel Corporation. The Asbestos Personal Injury Trust will be funded primarily with $325 million in cash contributed by Yarway and by Tyco on behalf of themselves and certain other Protected Parties pursuant to the Settlement, and with 100% of Reorganized Yarway's equity. The Official Committee of Asbestos Personal Injury Claimants, which consists solely of asbestos personal injury claimants, and the legal representative for future asbestos-related claimants, notified the Bankruptcy Court that they wholeheartedly support of the Chapter 11 Plan. On Jan. 13, the Debtor filed exhibits to its Chapter 11 Plan, including the list of settling asbestos insurers, a full-text copy of which is available at: http://bankrupt.com/misc/YARWAYplansupp0113.pdf A blacklined version of the Disclosure Statement dated Jan. 22, 2015, is available at http://bankrupt.com/misc/YARWAYds0122.pdf About Yarway Corporation Yarway Corporation sought Chapter 11 protection (Bankr. D. Del. Case No. 13-11025) on April 22, 2013, to deal with claims arising from asbestos containing products it allegedly sold as early as the 1920s. Yarway was founded in 1908 by Robert Yarnall and Bernard Waring as the Simplex Engineering Company and originally manufactured pipe clamps, steam traps, valves and controls. Based in Pennsylvania, Yarway was a privately-owned company until 1986 when KeyStone International, Inc. bought equity in the company. Yarway became a unit of Tyco International Ltd. when Tyco purchased KeyStone in 1997. Yarway's asbestos-related liabilities derive from Yarway's (i) purported use of asbestos-containing gaskets and packing, manufactured by others, in its production of steam valves and traps from the 1920s to 1970s, and (ii) alleged manufacture of expansion joint packing that was allegedly made up of a compound of Teflon and asbestos from the 1940s to the 1970s. Over the past five years, about 10,021 new asbestos claims have been asserted against Yarway, including 1,014 in Yarway's 2013 fiscal year ending March 31, 2013. The Debtor estimated assets and debts in excess of $100 million as of the Chapter 11 filing. Attorneys at Cole, Schotz P.C. and Sidley Austin LLP serve as the Debtor's counsel in the Chapter 11 case. Logan and Co. is the claims and notice agent. On May 6, 2013, the U.S. Trustee for Region 3, appointed an official committee of asbestos personal injury claimants. The Committee tapped Elihu Inselbuch, Esq. at Caplin & Drysdale, Chartered, as lead bankruptcy counsel. [^] Large Companies With Insolvent Balance Sheet ------------------------------------------------ Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------- -------- ------- ABSOLUTE SOFTWRE ABT CN 138.4 (12.0) 2.2 ABSOLUTE SOFTWRE ALSWF US 138.4 (12.0) 2.2 ABSOLUTE SOFTWRE OU1 GR 138.4 (12.0) 2.2 ACCRETIVE HEALTH ACHI US 510.0 (85.6) (17.7) ACCRETIVE HEALTH 6HL GR 510.0 (85.6) (17.7) ADVANCED EMISSIO OXQ1 GR 106.4 (46.1) (15.3) ADVANCED EMISSIO ADES US 106.4 (46.1) (15.3) ADVENT SOFTWARE AXQ GR 432.9 (76.3) (106.9) ADVENT SOFTWARE ADVS US 432.9 (76.3) (106.9) AIR CANADA AC CN 10,545.0 (1,400.0) 164.0 ALLIANCE HEALTHC AIQ US 473.5 (127.3) 62.8 AMC NETWORKS-A AMCX* MM 3,663.3 (388.0) 659.4 AMC NETWORKS-A AMCX US 3,663.3 (388.0) 659.4 AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2) AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 ANGIE'S LIST INC ANGI US 161.0 (39.4) (22.7) ANGIE'S LIST INC 8AL GR 161.0 (39.4) (22.7) ANGIE'S LIST INC 8AL TH 161.0 (39.4) (22.7) ARRAY BIOPHARMA ARRY US 135.3 (37.6) 66.2 ARRAY BIOPHARMA AR2 TH 135.3 (37.6) 66.2 ARRAY BIOPHARMA AR2 GR 135.3 (37.6) 66.2 AUTOZONE INC AZ5 GR 7,717.1 (1,662.8) (1,383.4) AUTOZONE INC AZ5 TH 7,717.1 (1,662.8) (1,383.4) AUTOZONE INC AZO US 7,717.1 (1,662.8) (1,383.4) AVID TECHNOLOGY AVID US 197.2 (341.2) (173.2) AXIM BIOTECHNOLO AXIM US 1.1 (0.2) (0.2) BERRY PLASTICS G BERY US 5,268.0 (101.0) 665.0 BRP INC/CA-SUB V DOO CN 2,115.5 (9.5) 184.7 CABLEVISION SY-A CVY GR 6,563.7 (5,068.0) 158.9 CABLEVISION SY-A CVC US 6,563.7 (5,068.0) 158.9 CABLEVISION-W/I CVC-W US 6,563.7 (5,068.0) 158.9 CABLEVISION-W/I 8441293Q US 6,563.7 (5,068.0) 158.9 CADIZ INC CDZI US 56.0 (49.7) 3.0 CAESARS ENTERTAI C08 GR 24,491.5 (3,714.4) 1,363.3 CAESARS ENTERTAI CZR US 24,491.5 (3,714.4) 1,363.3 CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CASELLA WASTE CWST US 661.8 (6.7) (0.5) CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CHOICE HOTELS CZH GR 664.2 (397.0) 206.0 CHOICE HOTELS CHH US 664.2 (397.0) 206.0 CIENA CORP CIE1 GR 2,072.6 (69.6) 912.1 CIENA CORP CIE1 TH 2,072.6 (69.6) 912.1 CIENA CORP CIEN TE 2,072.6 (69.6) 912.1 CIENA CORP CIEN US 2,072.6 (69.6) 912.1 CINCINNATI BELL CBB US 1,952.6 (584.4) 50.1 CLEAR CHANNEL-A CCO US 6,383.9 (132.6) 376.9 CLEAR CHANNEL-A C7C GR 6,383.9 (132.6) 376.9 CLIFFS NATURAL R CLF* MM 4,811.2 (177.3) 242.3 CLIFFS NATURAL R CVA GR 4,811.2 (177.3) 242.3 CLIFFS NATURAL R CVA TH 4,811.2 (177.3) 242.3 CLIFFS NATURAL R CLF US 4,811.2 (177.3) 242.3 COMVERSE INC CNSI US 649.6 (2.8) 4.3 CONNECTURE INC CNXR US 85.8 (67.7) (55.8) CORINDUS VASCULA CVRS US 0.0 (0.0) (0.0) CVSL INC CVSL US 66.0 (4.7) 2.8 DIRECTV DIG1 GR 22,594.0 (5,557.0) 43.0 DIRECTV DTV US 22,594.0 (5,557.0) 43.0 DOMINO'S PIZZA EZV GR 510.9 (1,281.7) 112.9 DOMINO'S PIZZA EZV TH 510.9 (1,281.7) 112.9 DOMINO'S PIZZA DPZ US 510.9 (1,281.7) 112.9 DUN & BRADSTREET DNB US 1,789.2 (1,083.4) (0.3) DUN & BRADSTREET DB5 GR 1,789.2 (1,083.4) (0.3) DURATA THERAPEUT DRTX US 82.1 (16.1) 11.7 EDGEN GROUP INC EDG US 883.8 (0.8) 409.2 EMPIRE RESORTS I NYNY US 42.4 (14.3) (9.9) EOS PETRO INC EOPT US 1.3 (28.4) (29.5) EXTENDICARE INC EXE CN 1,885.0 (7.2) 77.0 EXTENDICARE INC EXETF US 1,885.0 (7.2) 77.0 FAIRPOINT COMMUN FRP US 1,488.5 (395.7) 9.4 FERRELLGAS-LP FEG GR 1,680.4 (138.8) (37.1) FERRELLGAS-LP FGP US 1,680.4 (138.8) (37.1) FREESCALE SEMICO 1FS GR 3,306.0 (3,593.0) 1,333.0 FREESCALE SEMICO 1FS TH 3,306.0 (3,593.0) 1,333.0 FREESCALE SEMICO FSL US 3,306.0 (3,593.0) 1,333.0 FRESHPET INC FRPT US 74.5 (34.2) 1.2 GARDA WRLD -CL A GW CN 1,356.8 (243.8) 57.4 GENCORP INC GCY GR 1,749.7 (48.5) 70.2 GENCORP INC GY US 1,749.7 (48.5) 70.2 GENTIVA HEALTH GTIV US 1,225.2 (285.2) 130.0 GENTIVA HEALTH GHT GR 1,225.2 (285.2) 130.0 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 GYMBOREE CORP/TH GYMB US 1,284.0 (321.3) 39.5 HCA HOLDINGS INC HCA US 29,825.0 (6,018.0) 2,895.0 HCA HOLDINGS INC 2BH TH 29,825.0 (6,018.0) 2,895.0 HCA HOLDINGS INC 2BH GR 29,825.0 (6,018.0) 2,895.0 HD SUPPLY HOLDIN HDS US 6,523.0 (657.0) 1,396.0 HERBALIFE LTD HOO GR 2,364.5 (420.6) 508.8 HERBALIFE LTD HLF US 2,364.5 (420.6) 508.8 HOVNANIAN ENT-A HOV US 2,289.9 (117.8) 1,403.7 HOVNANIAN ENT-A HO3 GR 2,289.9 (117.8) 1,403.7 HOVNANIAN ENT-B HOVVB US 2,289.9 (117.8) 1,403.7 HOVNANIAN-A-WI HOV-W US 2,289.9 (117.8) 1,403.7 HUBSPOT INC HUBS US 58.9 (13.7) (17.9) HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) IHEARTMEDIA INC IHRT US 14,306.0 (9,506.2) 1,003.2 INCYTE CORP INCY US 785.3 (89.6) 538.0 INCYTE CORP ICY GR 785.3 (89.6) 538.0 INFOR US INC LWSN US 6,778.1 (460.0) (305.9) IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU JE CN 1,570.4 (311.6) 159.7 JUST ENERGY GROU 1JE GR 1,570.4 (311.6) 159.7 JUST ENERGY GROU JE US 1,570.4 (311.6) 159.7 L BRANDS INC LTD GR 7,149.0 (433.0) 1,050.0 L BRANDS INC LTD TH 7,149.0 (433.0) 1,050.0 L BRANDS INC LB US 7,149.0 (433.0) 1,050.0 LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9 LEE ENTERPRISES LEE US 811.3 (177.5) (22.6) LORILLARD INC LLV GR 3,275.0 (2,155.0) 918.0 LORILLARD INC LO US 3,275.0 (2,155.0) 918.0 LORILLARD INC LLV TH 3,275.0 (2,155.0) 918.0 MANNKIND CORP NNF1 TH 386.8 (40.7) (100.3) MANNKIND CORP NNF1 GR 386.8 (40.7) (100.3) MANNKIND CORP MNKD US 386.8 (40.7) (100.3) MARRIOTT INTL-A MAQ TH 6,847.0 (1,842.0) (1,186.0) MARRIOTT INTL-A MAQ GR 6,847.0 (1,842.0) (1,186.0) MARRIOTT INTL-A MAR US 6,847.0 (1,842.0) (1,186.0) MDC COMM-W/I MDZ/W CN 1,707.3 (86.7) (256.5) MDC PARTNERS-A MD7A GR 1,707.3 (86.7) (256.5) MDC PARTNERS-A MDZ/A CN 1,707.3 (86.7) (256.5) MDC PARTNERS-A MDCA US 1,707.3 (86.7) (256.5) MDC PARTNERS-EXC MDZ/N CN 1,707.3 (86.7) (256.5) MERITOR INC MTOR US 2,502.0 (585.0) 254.0 MERITOR INC AID1 GR 2,502.0 (585.0) 254.0 MERRIMACK PHARMA MACK US 188.6 (99.9) 40.9 MONEYGRAM INTERN MGI US 4,600.2 (157.2) 87.1 MORGANS HOTEL GR MHGC US 632.3 (221.3) 89.3 MORGANS HOTEL GR M1U GR 632.3 (221.3) 89.3 MOXIAN CHINA INC MOXC US 4.9 (1.2) (4.0) MPG OFFICE TRUST 1052394D US 1,280.0 (437.3) - NATIONAL CINEMED XWM GR 993.6 (200.2) 51.8 NATIONAL CINEMED NCMI US 993.6 (200.2) 51.8 NAVISTAR INTL NAV US 7,443.0 (4,618.0) 782.0 NAVISTAR INTL IHR TH 7,443.0 (4,618.0) 782.0 NAVISTAR INTL IHR GR 7,443.0 (4,618.0) 782.0 NEFF CORP-CL A NEFF US 612.1 (343.7) (1.5) NEW ENG RLTY-LP NEN US 178.9 (25.9) - NORTHWEST BIO NBYA GR 29.4 (31.2) (41.7) NORTHWEST BIO NWBO US 29.4 (31.2) (41.7) OMEROS CORP 3O8 GR 25.3 (26.6) 9.0 OMEROS CORP OMER US 25.3 (26.6) 9.0 OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) PALM INC PALM US 1,007.2 (6.2) 141.7 PHILIP MORRIS IN 4I1 TH 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN 4I1 GR 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM1CHF EU 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM1 TE 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM1EUR EU 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM FP 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PM US 35,401.0 (8,677.0) (356.0) PHILIP MORRIS IN PMI SW 35,401.0 (8,677.0) (356.0) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLY GEM HOLDINGS PGEM US 1,304.9 (73.5) 238.9 PROTALEX INC PRTX US 0.8 (10.3) (0.0) PROTECTION ONE PONE US 562.9 (61.8) (7.6) PROTEON THERAPEU PRTO US 24.2 9.6 19.3 QUALITY DISTRIBU QLTY US 439.6 (30.4) 105.2 QUALITY DISTRIBU QDZ GR 439.6 (30.4) 105.2 QUINTILES TRANSN Q US 3,106.7 (536.2) 511.8 REGAL ENTERTAI-A RETA GR 2,553.5 (755.1) 6.5 REGAL ENTERTAI-A RGC US 2,553.5 (755.1) 6.5 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTPATH INC PRM US 208.0 (91.7) 3.6 RETROPHIN INC RTRX US 145.9 (10.2) (3.7) REVLON INC-A REV US 1,912.6 (570.6) 300.9 REVLON INC-A RVL1 GR 1,912.6 (570.6) 300.9 RITE AID CORP RAD US 7,186.0 (1,792.7) 1,895.3 RITE AID CORP RTA GR 7,186.0 (1,792.7) 1,895.3 ROCKWELL MEDICAL RMTI US 23.9 (5.5) 2.6 ROCKWELL MEDICAL RWM GR 23.9 (5.5) 2.6 ROUNDY'S INC RNDY US 1,089.7 (66.8) 71.8 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 RYERSON HOLDING RYI US 2,006.2 (38.2) 749.5 SALLY BEAUTY HOL S7V GR 2,030.0 (347.1) 640.6 SALLY BEAUTY HOL SBH US 2,030.0 (347.1) 640.6 SBA COMM CORP-A SBJ GR 7,809.0 (297.6) (671.8) SBA COMM CORP-A SBAC US 7,809.0 (297.6) (671.8) SECOND SIGHT MED EYES US 9.6 (19.5) 4.4 SEQUENOM INC SQNM US 134.6 (51.9) 36.5 SEQUENOM INC QNMA GR 134.6 (51.9) 36.5 SEQUENOM INC QNMA TH 134.6 (51.9) 36.5 SILVER SPRING NE SSNI US 552.9 (139.0) 82.8 SIRIUS XM CANADA XSR CN 336.0 (91.2) (159.5) SPORTSMAN'S WARE SPWH US 315.7 (35.0) 83.3 SUPERVALU INC SJ1 TH 5,078.0 (647.0) 277.0 SUPERVALU INC SJ1 GR 5,078.0 (647.0) 277.0 SUPERVALU INC SVU* MM 5,078.0 (647.0) 277.0 SUPERVALU INC SVU US 5,078.0 (647.0) 277.0 THERAVANCE HVE GR 553.7 (193.1) 237.4 THERAVANCE THRX US 553.7 (193.1) 237.4 THRESHOLD PHARMA THLD US 76.7 (21.0) 49.1 THRESHOLD PHARMA NZW1 GR 76.7 (21.0) 49.1 TOWN SPORTS INTE CLUB US 482.6 (53.8) 69.7 TRANSDIGM GROUP T7D GR 6,756.8 (1,556.1) 1,103.7 TRANSDIGM GROUP TDG US 6,756.8 (1,556.1) 1,103.7 TRINET GROUP INC TN3 GR 1,393.3 (48.9) 17.3 TRINET GROUP INC TNET US 1,393.3 (48.9) 17.3 UNILIFE CORP UNIS US 80.7 (2.7) 0.4 UNISYS CORP UIS1 SW 2,279.4 (521.2) 343.9 UNISYS CORP UISCHF EU 2,279.4 (521.2) 343.9 UNISYS CORP USY1 GR 2,279.4 (521.2) 343.9 UNISYS CORP USY1 TH 2,279.4 (521.2) 343.9 UNISYS CORP UISEUR EU 2,279.4 (521.2) 343.9 UNISYS CORP UIS US 2,279.4 (521.2) 343.9 VECTOR GROUP LTD VGR GR 1,643.4 (7.9) 561.5 VECTOR GROUP LTD VGR US 1,643.4 (7.9) 561.5 VENOCO INC VQ US 756.5 (100.0) (762.9) VERISIGN INC VRS TH 2,207.4 (748.8) (326.3) VERISIGN INC VRS GR 2,207.4 (748.8) (326.3) VERISIGN INC VRSN US 2,207.4 (748.8) (326.3) VERIZON TELEMATI HUTC US 110.2 (101.6) (113.8) VIRGIN AMERICA I VA US 876.0 (313.0) 19.0 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WTW US 1,558.3 (1,357.7) 60.6 WEIGHT WATCHERS WW6 TH 1,558.3 (1,357.7) 60.6 WEIGHT WATCHERS WW6 GR 1,558.3 (1,357.7) 60.6 WEST CORP WSTC US 3,929.2 (684.9) 284.7 WESTMORELAND COA WME GR 1,578.5 (264.3) 101.2 WESTMORELAND COA WLB US 1,578.5 (264.3) 101.2 WESTMORELAND RES 2OR1 GR 204.0 (14.2) (57.7) WESTMORELAND RES WMLP US 204.0 (14.2) (57.7) WORKIVA INC WK US 82.6 (23.4) (23.4) XERIUM TECHNOLOG TXRN GR 611.2 (51.2) 102.1 XERIUM TECHNOLOG XRM US 611.2 (51.2) 102.1 XOMA CORP XOMA US 70.9 (18.1) 28.5 XOMA CORP XOMA TH 70.9 (18.1) 28.5 YRC WORLDWIDE IN YRCW US 2,046.6 (361.2) 195.9 YRC WORLDWIDE IN YEL1 GR 2,046.6 (361.2) 195.9 ********* 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 by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2015. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***