/raid1/www/Hosts/bankrupt/TCR_Public/150728.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, July 28, 2015, Vol. 19, No. 209
Headlines
3073 EMMONS: Voluntary Chapter 11 Case Summary
ACME HOLDING: Ch 11 Case Converted to Ch 7, Properties Sold Off
ALAMOS GOLD: Moody's Affirms B2 CFR & Changes Outlook to Positive
ALBANY MOLECULAR: S&P Assigns 'B' CCR; Outlook Stable
ALLEGHENY TECHNOLOGIES: S&P Affirms BB+ CCR & Alters Outlook to Neg
ALLIED NEVADA: Aug. 20 Disclosure Statement Hearing
ATLANTIC & PACIFIC: Paying $28.3MM to Critical Vendors
ATLANTIC & PACIFIC: Proposes to Sell 120 Stores for $600-Mil.
ATLANTIC & PACIFIC: Seeks Approval of Store Closings Protocol
ATLANTIC & PACIFIC: UFCW Comments on Bankruptcy Developments
ATLANTIC & PACIFIC: Wants Until Aug. 18 to File Schedules
BAHA MAR: Court to Hear CCA's Ch 11 Suspension Bid on Aug. 17
BAXANO SURGICAL: Court Confirms Chapter 11 Plan
BINDER & BINDER: To Have Fewer Than 400 Workers Over Next 2 Years
BLACK PRESS: S&P Raises Corp Credit Rating to 'B', Outlook Stable
BRUSH CREEK: Buckhorn HOA Seeks to Exercise Rights on Col. Lots
BUCCANEER ENERGY: Asks Homer City, et al., to Return Payments
CAESARS ENT: Parent's Failure to Block Suits Might Lead to Bankr.
CANDAX ENERGY: Gets Additional Facility Agreement Waiver Extension
CAST & CREW: S&P Assigns 'B' Corp. Credit Rating, Outlook Stable
COVENANT TO CARE: Files for Chapter 11 Bankruptcy Protection
CURTIS JAMES JACKSON: Has $4.4 Million in Assets, Lawyer Says
CURTIS JAMES JACKSON: Has To Pay Add'l $2M to Lastonia Leviston
DANUBE APARTMENTS: Voluntary Chapter 11 Case Summary
DELTA AIR: S&P Raises Corp. Credit Rating to 'BB+', Outlook Stable
EDUCATIONAL MANAGEMENT: Files for Chapter 7 Liquidation
ENERGY FUTURE: Favors REIT Deal as Path to Ch. 11 Emergence
ENERGY FUTURE: Files Amended Chapter 11 Exit Plan
ESCO MARINE: Committee Challenges Validity of Callidus Liens
ESCO MARINE: Directed to Make $8K Monthly Payments to De Lange
ESCO MARINE: Judge Denies Bid to Reconsider Duff & Phelps' Hiring
ESCO MARINE: Komatsu Fin'l Seeks to Foreclose on Equipment
ESTATE FINANCIAL: M. Winn, FGI Held in Contempt for Stay Violations
EURAMAX INTERNATIONAL: S&P Puts 'CCC' CCR on CreditWatch Dev.
FAMILY CHRISTIAN: Creditors Withdraw Bid to Appoint Ch. 11 Trustee
GEORGETOWN MOBILE: Budget Now Covers Biz Operations for 12 Months
GEORGETOWN MOBILE: Disclosure Statement Scheduled for Aug. 26
GOLDEN COUNTY: Wants Nov. 12 as Governmental Unit Claims Bar Date
GREEN MOUNTAIN: Exclusive Right to File Plan Extended to Sept. 18
GROUP 1 AUTOMOTIVE: Moody's Hikes Corporate Family Rating to 'Ba1'
HAWAIIAN HOLDINGS: Moody's Raises CFR to B2, Outlook Stable
HELIA TEC: Court Confirms Second Amended Plan
HERCULES OFFSHORE: To File for Chapter 11 Bankruptcy Next Month
HOLY HILL: 1111 Sunset Is Back-Up Bidder for Sunset Blvd. Property
JAGUAR HOLDINGS: Moody's Affirms B2 CFR, Outlook Stable
LEHMAN BROTHERS: Owes $41.9-Mil. Damages, Spanish Broadcasting Says
LOMPOC RDA SUCESSOR: Moody's Hikes Rating on TABS From Ba1
MARINA DISTRICT: S&P Assigns 'BB' Rating on $650MM Loan Facility
MDC PARTNERS: CEO Departure Will Not Impact Moody's Ratings
MDC PARTNERS: S&P Raises CCR to 'B+', Outlook Stable
MF GLOBAL: Brokerage to Sell Litigation Rights to Parent
MF GLOBAL: SIPC Praises Trustee on Liquidation Milestone
MID-AMERICA DIESEL: Files for Chapter 7 Liquidation
OAKLAND PHYSICIANS: Files for Chapter 11 Bankruptcy Protection
ORLANDO GATEWAY: UST Opposes Bid to Hire Restructuring Adviser
PACIFIC RUBIALES: Moody's Lowers CFR to Ba3; Outlook Negative
PARK FLETCHER: Closes Sale of Marion County Assets
PETER WOJTKUN: Bid to Dismiss Suit vs. Wojtkun Partially Granted
PHARMACEUTICAL PRODUCT: S&P Affirms 'B' CCR, Outlook Stable
PREMIER ENVIRONMENTAL: Files for Chapter 11 Bankruptcy Protection
PROLAMPAC INTERMEDIATE: S&P Assigns 'B' CCR, Outlook Stable
REFCO GROUP: Bid to File Docs under Seal in Suit vs. Cantor Granted
RELATIVITY MEDIA: Weighs Filing for Chapter 11 Protection
RICHMOND CHRISTIAN: Files Plan, Eyes Ch 11 Exit in September
ROBERT DEMAURO: Johnson & Wales Battle to Keep Tuition Money
ROMAN SLEDZIEJOWSKI: TRO Extends to Habringer, Pojest, PPJ
ROSETTA RESOURCES: S&P Raises Corp. Credit Rating From 'BB-'
SAGICOR FINANCIAL: Fitch Assigns Initial 'B' IDR, Outlook Positive
SAMUEL MORTON: Bank of Camden Wins Conditional Stay Relief
SIGNAL INT'L: Has Interim OK to Obtain $2.5M in DIP Loans
SOUTHERN PAIN: Case Summary & 20 Largest Unsecured Creditors
SUNLAND INC: Saylor's Proof of Claim Disallowed
SUNWEST MANAGEMENT: Fraud Scheme Exceeds 2 Counts of Conviction
SWIFT ENERGY: Moody's Affirms Caa1 CFR & Changes Outlook to Neg.
TRANS COASTAL: Files for Chapter 11 Bankruptcy Protection
WANK ADAMS: Case Summary & 20 Largest Unsecured Creditors
WAR EAGLE: Voluntary Chapter 11 Case Summary
WINDLE FAMILY: Voluntary Chapter 11 Case Summary
Z'TEJAS SCOTTSDALE: Files for Ch. 11 to Sell to Cornbread
Z'TEJAS SCOTTSDALE: Has $725,000 in Financing From Buyer
Z'TEJAS SCOTTSDALE: Proposes Cornbread-Led Auction on Sept. 17
[] Gov. John Kasich Blames Dishonest Brokers for 2008 Fin'l Crisis
[^] Large Companies With Insolvent Balance Sheet
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3073 EMMONS: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: 3073 Emmons Avenue Corp.
3073 Emmons Avenue
Brooklyn, NY 11235
Case No.: 15-43358
Chapter 11 Petition Date: July 24, 2015
Court: United States Bankruptcy Court
Eastern District of New York (Brooklyn)
Judge: Hon. Elizabeth S. Stong
Debtor's Counsel: Daniel C Marotta, Esq.
GABOR & MAROTTA LLC
1878 Victory Blvd
Staten Island, NY 10314
Tel: 718-390-0555
Fax: 718-390-9886
Email: dan@gabormarottalaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jeffrey Brown, president.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
ACME HOLDING: Ch 11 Case Converted to Ch 7, Properties Sold Off
---------------------------------------------------------------
George Waldon, writing for Arkansas Business, reports that the Hon.
Ben T. Barry of the U.S. Bankruptcy Court for the Western District
of Arkansas converted on July 23, 2015, the Chapter 11
reorganization case of Acme Holding Co., the parent company of
Allied Bank of Mulberry, to one under Chapter 7 liquidation.
As reported by the Troubled Company Reporter on Jan. 21, 2015,
George Waldon at Arkansasbusiness.com reported that three of the
Company's largest creditors -- Chambers Bank, Hildene Asset
Management, and C Holdings -- sought the conversion of the case to
one under Chapter 7 or the dismissal of the case.
Allied Bank and the Company completed the sale of their properties
on July 24, 2015, David Smith at Arkansas Online relates, citing
Thomas Blackmon, president of auction company Blackmon Auctions of
Little Rock.
According to Arkansas Online, Blackmon Auctions offered these
properties of Allied Bank for sale from July 21, 2015, through July
24, 2015: (i) 440 acres on Interstate 40 near Altus that once
belonged to Wiederkehr Wine Cellars Inc.; (ii) buildings where
Allied has branches; (iii) residential lots in Shannon Hills,
Alexander, Hot Springs and Springdale; (iv) homes in Little Rock,
Benton, Malvern, Hot Springs and Mansfield; and (v) commercial
property in Alma and Fayetteville.
Arkansas Online says that Mr. Blackmon declined to indicate whether
all properties were sold, saying, "I'd rather stay silent and let
[Allied Bank President Alex Golden] and the bank speak for what
happened this week."
About Acme Holding Company
Headquartered in Mulberry, Arkansas, Acme Holding Company, Inc.,
filed for Chapter 11 bankruptcy protection (Bankr. W.D. Ark. Case
No. 14-71315) on April 29, 2014, estimating assets up to $50,000,
and liabilities between $1 million and $10 million. The petition
was signed by Alexander "Lex" P. Golden, III, chief executive
officer. Judge Ben T. Barry presides over the case. Stanley V
Bond, Esq., at Bond Law Office, serves as the Debtor's bankruptcy
counsel.
Another filing was made on April 29, 2014, for Acme Holding (Case
No. 14-71316).
ALAMOS GOLD: Moody's Affirms B2 CFR & Changes Outlook to Positive
-----------------------------------------------------------------
Moody's Investors Service affirmed Alamos Gold Inc.'s (formerly
AuRico Gold Inc.,) B2 corporate family rating (CFR), B2-PD
probability of default rating (PDR), and B3 second lien senior
secured rating. At the same time, Alamos' speculative grade
liquidity rating was upgraded to SGL-2 from SGL-3 and its rating
outlook was changed to positive from stable.
RATINGS RATIONALE
The outlook change is driven by improvements to Alamos' financial
position and business profile resulting from the amalgamation of
AuRico and Alamos Gold Inc. (Old Alamos) on July 2, 2015 to form
Alamos. This transaction adds approximately 160,000 ounces of
annual gold production from the Mulatos mine in Mexico and a
substantial amount of cash while having no meaningful impact on
AuRico's adjusted debt or operations.
Alamos 's B2 CFR is driven by its small scale (pro-forma production
of about 400,000 gold ounces in 2015), exposure to the volatile
price of gold, relatively high operating costs, concentration risks
(three operating mines), negative free cash flow and execution
risks associated with the continued development of Young-Davidson's
underground mine. Alamos however will have low pro-forma adjusted
leverage (Debt/ EBITDA) of less than 2.5x through 2016,
incorporating a $1,200/oz gold price sensitivity, while its mines
are located in stable operating jurisdictions (Canada and Mexico),
where costs are benefiting from the deprecation of local currencies
against the US dollar.
Alamos' liquidity is good (SGL-2), provided by pro-forma cash of
$403 million at Q1/15, which is ample to fund Moody's estimate of
up to $75 million of cash consumption through mid-2016. Alamos has
access to an unused $150 million senior secured revolver with
adequate covenant headroom, but this facility does not factor into
Moody's SGL analysis as it matures within the next year (April
2016). Most of Alamos' funded debt matures in 2020.
The positive ratings outlook reflects the potential that Alamos'
rating could move higher if the gold price recovers from its recent
weakness of below $1,100/oz and stabilizes near or above
$1,200/oz.
A higher rating would require a sustained improvement in the gold
price to near or above $1,200/oz and our expectation that Alamos
would maintain annual gold production of 400,000 ounces or more
while maintaining leverage below 3.5x.
A lower rating would result from operating challenges that
significantly impaired our cash flow expectations from the
Young-Davidson or Mulatos mines or if we expected higher costs or a
lower sustained gold price would cause Alamos leverage to be
sustained above 5x. Alamos rating could also be lowered if we had
concerns over the adequacy of its liquidity.
Issuer: Alamos Gold Inc.
Rating Changes:
Outlook Changed to Positive from Stable
Rating Affirmation:
Corporate Family Rating, affirmed at B2
Probability of Default Rating, affirmed at B2-PD
US$315 million 2nd lien senior secured notes
due Apr2020, affirmed at B3 (LGD4)
Rating Upgrade:
Speculative Grade Liquidity Rating, Changed to SGL-2 from SGL-3
Alamos Gold Inc. (formerly AuRico Gold Inc.) is headquartered in
Toronto, Ontario, with one mine in Ontario and two mines in Mexico
producing about 400,000 ounces of gold annually.
The principal methodology used in these ratings was Global Mining
Industry published in August 2014. Other methodologies used
include Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.
ALBANY MOLECULAR: S&P Assigns 'B' CCR; Outlook Stable
-----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Albany, N.Y.-based contract research and
manufacturing organization (CRMO) Albany Molecular Research Inc.
(AMRI). The outlook is stable.
At the same time, S&P assigned its 'B+' issue-level rating to
AMRI's senior secured first-lien credit facility, consisting of a
$30 million revolver due 2020 and $200 million senior secured term
loan B due 2021. The recovery rating on this debt is '2',
indicating expectations of substantial (70% to 90%, at the low end
of the range), recovery in the event of a default. S&P is
assigning a 'CCC+' rating to the company's senior subordinated $150
million convertible notes due 2018. The recovery rating on this
debt is '6', indicating expectations of negligible (0% to 10%)
recovery in the event of a default.
AMRI is a contract research and manufacturing organization that
provides pharmaceutical company clients drug discovery,
development, and manufacturing services. "We view AMRI's business
risk profile as 'weak,' given that it competes in a niche industry
and against larger players with greater size, scale, and breadth of
offerings, partially offset by the company's focus on more advanced
manufacturing processes," said Standard & Poor's credit analyst
Arthur Wong. AMRI has acquired a privately held Spain-based CRMO,
Gadea, for $174 million, including an assumption of $33 million of
debt. Gadea expands AMRI's active pharmaceutical ingredient (API)
and drug manufacturing capabilities and capacity as well as
geographic presence. AMRI funded the transaction with proceeds
from the debt offering as well as approximately $44 million in
equity. Adjusted leverage post transaction is over 5x and funds
from operation (FFO) to adjusted debt low teens, indicative of a
"highly leveraged" financial risk profile.
API (57.6% of 2014 revenues) and drug product (30.6%) manufacturing
account for the bulk of revenues, while the discovery and
development segment (11.8%) enables AMRI to offer an integrated
service and enter into contracts with clients at an earlier part of
a product lifecycle.
S&P's rating outlook on AMRI is stable, reflecting S&P's
expectation that the company will grow revenues mid- to
high-single-digit area, in line with the contract research and
manufacturing industries, and improve EBITDA margins to the 16% to
17% range.
S&P would consider a lower rating should the company experience
setbacks in its ability to continue to win new contracts or
experience a drop in EBITDA margins that would lead to negative
free cash flows. In S&P's view, it estimates a revenue drop of
over 10% may lead to free cash outflow.
S&P could consider raising the rating if the company reduces
leverage below 5x over the longer term, which would entail both
double-digit organic revenue growth, a significant increase in
margins, and minimal use of debt-financed acquisitions. Given
S&P's current expectations, it do not currently believe that an
upgrade is likely over the next year.
ALLEGHENY TECHNOLOGIES: S&P Affirms BB+ CCR & Alters Outlook to Neg
-------------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB+'
corporate credit rating on Allegheny Technologies Inc. (ATI). S&P
revised the outlook to negative from stable.
S&P also affirmed the 'BB+' issue-level rating on the company's
senior unsecured notes. The '3' recovery rating on the senior
unsecured debt remains unchanged, indicating S&P's expectation for
meaningful (lower half of the 50% to 70% range) recovery in the
event of payment default.
"The negative rating outlook reflects the risk that continued
weakness in the company's credit measures in 2015 and 2016 could
lead to a lower rating," said Standard & Poor's credit analyst
William Ferara. "Key considerations for our rating outlook will be
the company's operating performance and overall market conditions,
and its resulting cash flows and credit ratios."
S&P could lower the rating if it expects debt to EBITDA will be
sustained above 5x and FFO to debt will be below 12% through 2016.
This could occur if shipments to ATI's key aerospace, energy, or
other markets stall; competitive pressures weaken prices; the
company absorbs spikes in raw material prices; or it does not
achieve cost reductions and other anticipated benefits of the new
HRPF.
S&P could revise the outlook to stable if it believes ATI is on a
clear trajectory to improve its financial measures and its
operating performance is stabilized. Specifically, if S&P expects
financial measures to remain in the "aggressive" financial risk
range, with FFO to debt in the 12% to 20% range and debt to EBITDA
between 4x and 5x, on a sustained basis, S&P could consider an
outlook change to stable.
ALLIED NEVADA: Aug. 20 Disclosure Statement Hearing
---------------------------------------------------
A hearing will be held before the Honorable Mary F. Walrath of the
United States Bankruptcy Court for the District of Delaware on
August 20, 2015, at 11:30 a.m. (Prevailing Eastern Time), to
consider approval of the disclosure statement explaining Allied
Nevada Gold Corp., et al.'s Amended Joint Chapter 11 plan of
reorganization.
The Debtors' Plan, amended on July 23, provides that holders of
76.24% of the aggregate outstanding principal amount of the Note
Claims, 100% of the holders of Secured ABL Claims, and 100% of the
holders of Secured Swap Claims, executed the amended and restated
restructuring support agreement dated July 23, 2015. The July 23
Plan increases to 100% the recovery of holders of Allowed Unsecured
Claim from 75%.
Objections to the approval of the Disclosure Statement must be
filed on or before August 13.
A blacklined version of the July 23 Disclosure Statement is
available at http://bankrupt.com/misc/ANGCds0723.pdf
About Allied Nevada
Allied Nevada Gold Corp. ("ANV"), a Delaware corporation, is a
publicly traded U.S.-based gold and silver producer engaged in
mining, developing and exploring properties in the State of
Nevada.
ANV was spun off from Vista Gold Corp. in 2006 and began operations
in May 2007. Nevada-based mining properties acquired from Vista
include the Hycroft Mine, an open-pit heap leach operation located
54 miles west of Winnemucca, Nevada. ANV controls 75 exploration
properties throughout Nevada as of
Dec. 31, 2014.
On March 10, 2015, ANV and 13 affiliated debtors each filed a
voluntary petition for relief under Chapter 11 of the U.S.
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware. The Debtors have requested that their cases
be jointly administered under Case No. 15-10503. The cases are
assigned to Judge Mary F. Walrath.
The Debtors have tapped Blank Rome LLP and Akin Gump Strauss Hauer
& Feld LLP as attorneys; FTI Consulting Inc. as financial advisor;
Moelis & Company as financial advisor; and Prime Clerk LLC as
claims and noticing agent.
ANV disclosed $941 million in total assets and $664 million in
total debt as of Dec. 31, 2014.
* * *
Allied Nevada Gold Corp., et al.'s plan of reorganization
incorporates the terms of the prepetition plan support agreement
reached by the Debtors with holders of at least 67% of the
aggregate outstanding principal amount of the Notes and 100% of the
Holders of Secured ABL Claims and Secured Swap Claims.
Pursuant to the plan support agreement, each Holder of an Allowed
Secured ABL Claim will receive (i) its Pro Rata share of the
Secured ABL/Swap Cash Payments not made prior to the Effective Date
and (ii) an amount of New First Lien Term Loans in an aggregate
principal amount equal to (A) the amount of allowed claims pursuant
to Section 2.7(b) of the Plan minus (B) the amount paid in cash in
respect of the Secured ABL Claims pursuant to clause (i) of Section
2.7(c) of the Plan. In addition, for the avoidance of doubt, any
unpaid amounts owed to the holders of Secured ABL Claims pursuant
to Section 11 of the DIP Facility Order will be due and payable in
cash on the Effective Date.
A full-text copy of the Disclosure Statement dated April 24, 2015,
is available at http://bankrupt.com/misc/ALLIEDds0424.pdf
ATLANTIC & PACIFIC: Paying $28.3MM to Critical Vendors
------------------------------------------------------
The Great Atlantic & Pacific Tea Company, Inc., et al., asked the
U.S. Bankruptcy Court for the Southern District of New York for
approval to pay up to $28.3 million in prepetition claims of
certain vendors, suppliers, service providers, and other similar
entities that are essential to their ongoing business operations
and maximizing the value of their enterprise.
Garrett A. Fail, Esq., at Weil, Gotshal & Manges LLP, explains that
in recent months, the Debtors' relationships with some of their
vendors have grown increasingly strained. A number of vendors
demanded changes in payment and credit terms. Some even threatened
to stop shipments unless the Debtors complied with restricted
terms. To avoid a disruption in their supply chain, the Debtors
made certain concessions, which diminished their cash position by
approximately $25 million. The Debtors anticipate that this trade
contraction and downward pressure on their liquidity will only
accelerate if they cannot immediately implement their proposed
protocol for payment of critical vendors.
The proposed protocol provides, among other things, the Debtors
will establish a centralized, high-level team consisting of
executives and other employees of the Debtors and professionals
from FTI Consulting Inc. and Weil, Gotshal & Manges LLP to evaluate
whether a requesting vendor is eligible for critical vendor status.
As the quid pro quo for payment of critical vendor claims, the
Debtors will require critical vendors to continue to provide trade
terms in line with historical practice. All proposed payments in
excess of $100,000 require the express authorization of FTI, the
financial advisors for the Debtors.
The Debtors estimate that they owe the potential critical vendors
an aggregate amount of $28.3 million as of the Petition Date,
including claims totaling $27 million that may be entitled to
priority pursuant to Section 503(b)(9) of the Bankruptcy Code. The
$28.3 million cap is 22% of the Debtors' total accrued payables of
$131 million, and the Debtors anticipate that 95% of the cap will
be used to pay claims that may be entitled to priority pursuant to
503(b)(9) of the Bankruptcy Code.
About Atlantic & Pacific
Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea
Company, Inc., and its affiliates are one of the nation's oldest
leading supermarket and food retailers, operating approximately 300
supermarkets, beer, wine, and liquor stores, combination food and
drug stores, and limited assortment food stores across six
Northeastern states. The primary retail operations consist of
supermarkets operated under a variety of well known trade names, or
"banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food
Basics, The Food Emporium, Best Cellars, and A&P Liquors. The
Company employs approximately 28,500 employees, over 90% of whom
are members of one of twelve local unions whose members are
employed by the Debtors under the authority of 35 separate
collective bargaining agreements.
Then with 429 stores, A&P and its affiliates filed Chapter 11
petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and
in 2012 emerged from Chapter 11 bankruptcy as a privately held
company with 320 supermarkets.
On July, 19, 2015, with 300 stores, A&P and 20 affiliated debtors
each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching
deals for the going concern sales of 120 stores. The Debtors are
seeking joint administration under Case No. 15-23007.
As of Feb. 28, 2015, the Debtors reported total assets of
$1.6 billion and liabilities of $2.3 billion.
The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore
Group L.L.C., as investment banker, FTI Consulting, Inc., as
financial advisor, Hilco Real Estate, LLC, as real estate advisor,
and Prime Clerk LLC, as claims and noticing agent.
ATLANTIC & PACIFIC: Proposes to Sell 120 Stores for $600-Mil.
-------------------------------------------------------------
The Great Atlantic & Pacific Tea Company, Inc., et al., ask the
U.S. Bankruptcy Court for the Southern District of New York to
approve bidding and auction procedures for the sale of
substantially all of their stores and related assets.
The Debtors relate that they secured three separate stalking horse
agreements for the sale of a total of 120 of their 296 stores for a
total purchase price of nearly $600 million. The Stalking Horse
Bids were submitted by: Acme Markets, Inc.; The Stop & Shop
Supermarket Company, LLC; and Key Food Stores Co-Operative, Inc.
Acme offers $256 million, plus other consideration, for 76 stores
and other assets. The Debtors propose to pay Acme a break-up fee
of 1.5% of the Cash Purchase Price, plus reimbursement of up to
$4.5 million of reasonable and documented expenses in connection
with the Stalking Horse Bidder's purchase of IT equipment required
to consummate the transactions.
Stop and Shop offers more than $146 million, plus other
consideration, for 25 stores and other assets. The Debtors propose
to pay Stop & Shop a break-up fee of 3% of the Cash Purchase Price,
plus reimbursement of up to $1 million of reasonable and documented
expenses.
Key Food offers approximately $28 million, plus other
consideration, for 19 stores and other assets. The Debtors propose
to pay Key Food a break-up fee of 3% of the Cash Purchase Price,
plus reimbursement of up to $250,000 in reasonable and documented
expenses; provided that the Termination Payment is contingent upon
the Debtors' approval of the Stalking Horse Bidder's financing
commitment letter.
In order to maximize the value of the Stores, parties may submit
bids for (a) all of the stores in a particular stalking horse bid;
and (b) one or more of the Debtors' stores, in any combination,
whether or not those stores are included in a Stalking Horse Store
Package.
The Debtors request that one or more auctions for the Stores be
held on Sept. 24 and 25, 2015, and the hearing to consider aporoval
of the stalking horse packages be held on Sept. 22, if the stalking
horse bids are the only qualified bids received, or Oct. 1, if more
than one qualified bid is received and the auction is conducted.
Given the exigencies of the Debtors' financial condition and the
restrictions in their postpetition financing and the Stalking Horse
Bids themselves, the immediate sale of these stores and the
Debtors' other stores is the only means to avoid a fire-sale
liquidation of all of the Debtors' estates, which would result in
significantly less value for all stakeholders and likely the loss
of jobs for virtually all of the Debtors' 28,467 employees, Ray C.
Schrock, P.C., Esq., at Weil, Gotshal & Manges LLP, in New York,
tells the Court.
The Debtors are also represented by Garrett A. Fail, Esq., at Weil,
Gotshal & Manges LLP, in New York.
About Atlantic & Pacific
Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea
Company, Inc., and its affiliates are one of the nation's oldest
leading supermarket and food retailers, operating approximately 300
supermarkets, beer, wine, and liquor stores, combination food and
drug stores, and limited assortment food stores across six
Northeastern states. The primary retail operations consist of
supermarkets operated under a variety of well known trade names, or
"banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food
Basics, The Food Emporium, Best Cellars, and A&P Liquors. The
Company currently employs approximately 28,500 employees, over 90%
of whom are members of one of twelve local unions whose members are
employed by the Debtors under the authority of 35 separate
collective bargaining agreements (collectively, the "CBAs").
Then with 429 stores, A&P and its affiliates filed Chapter 11
petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and
in 2012 emerged from Chapter 11 bankruptcy as a privately held
company with 320 supermarkets.
On July 19, 2015, with 300 stores, A&P and 20 affiliated debtors
each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching
deals for the going concern sales of 120 stores. The Debtors are
seeking joint administration under Case No. 15-23007.
As of Feb. 28, 2015, the Debtors reported total assets of $1.6
billion and liabilities of $2.3 billion.
The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore
Group L.L.C., as investment banker, FTI Consulting, Inc., as
financial advisor, Hilco Real Estate, LLC, as real estate advisor,
and Prime Clerk LLC, as claims and noticing agent.
ATLANTIC & PACIFIC: Seeks Approval of Store Closings Protocol
-------------------------------------------------------------
The Great Atlantic & Pacific Tea Company, Inc., et al., ask the
U.S. Bankruptcy Court for the Southern District of New York to
approve procedures for store closings, abandonment of de minimis
assets, and rejection of unexpired non-residential real property
leases; and approve a liquidation consulting agreement between the
Debtors and Hilco Real Estate, LLC.
According to Ray C. Schrock, P.C., Esq., at Weil, Gotshal & Manges
LLP, in New York, the Debtors are pursuing a parallel track of
selling approximately 120 of their core stores, with the
possibility of additional stores added to the auction process, to
third party bidders, and selling the remaining 177 stores through a
marketing process conducted by Hilco. The remaining 177 stores are
stores or assets for which no third-party has acquired, or made or
is likely to make a firm offer.
Mr. Schrock tells the Court that currently, the Debtors and their
advisors have identified a subset of 25 Tier III Stores that are
underperforming and are seeking to reject the leases associated
with these stores. Given the significant operating losses
continuing in the Initial Closing Stores and the Debtors' liquidity
constraints, the Debtors need to immediately begin the closing
process, Mr. Schrock asserts. The Initial Closing Stores have an
aggregate daily negative cash flow rate of approximately $75,000
and approximately $2.5 million each month. The Debtors estimate
that closure of the Initial Closing Stores will generate
approximately $20 million in savings for the remainder of the 2015
fiscal year. Additionally, the sale of the Store Closing Assets
located in Initial Closing Stores will yield approximately $48
million in gross proceeds, providing the Debtors with a necessary
and significant cash infusion, Mr. Schrock says.
The Debtors propose, among other things, that the Store Closing
Sales will be conducted during normal business hours and will be
conducted in accordance with applicable state and local "Blue
Laws."
Garrett A. Fail, Esq., at Weil, Gotshal & Manges LLP, in New York,
also represents the Debtors.
About Atlantic & Pacific
Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea
Company, Inc., and its affiliates are one of the nation's oldest
leading supermarket and food retailers, operating approximately 300
supermarkets, beer, wine, and liquor stores, combination food and
drug stores, and limited assortment food stores across six
Northeastern states. The primary retail operations consist of
supermarkets operated under a variety of well known trade names, or
"banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food
Basics, The Food Emporium, Best Cellars, and A&P Liquors. The
Company currently employs approximately 28,500 employees, over 90%
of whom are members of one of twelve local unions whose members are
employed by the Debtors under the authority of 35 separate
collective bargaining agreements (collectively, the "CBAs").
Then with 429 stores, A&P and its affiliates filed Chapter 11
petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and
in 2012 emerged from Chapter 11 bankruptcy as a privately held
company with 320 supermarkets.
On July 19, 2015, with 300 stores, A&P and 20 affiliated debtors
each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching
deals for the going concern sales of 120 stores. The Debtors are
seeking joint administration under Case No. 15-23007.
As of Feb. 28, 2015, the Debtors reported total assets of $1.6
billion and liabilities of $2.3 billion.
The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore
Group L.L.C., as investment banker, FTI Consulting, Inc., as
financial advisor, Hilco Real Estate, LLC, as real estate advisor,
and Prime Clerk LLC, as claims and noticing agent.
ATLANTIC & PACIFIC: UFCW Comments on Bankruptcy Developments
------------------------------------------------------------
The United Food and Commercial Workers (UFCW) International Union
International President Marc Perrone on July 24 released the
following statement on behalf of UFCW Locals 27, 100R, 152, 342,
371, 400, 464-A, 1245, 1262, 1360, 1500, 1776 and RWDSU Locals 338
and 1034, after meeting with The Great Atlantic & Pacific Tea
Company, Inc. executives to discuss the future of A&P and its
proposed sale.
"For years, the hard-working men and women of A&P not only did
their jobs, they personally and financially sacrificed to invest in
A&P's success. These sacrifices were made for the sake of their
families, their co-workers, and the customers and communities that
they deeply care about. Now, at this critical time, after repeated
mismanagement and strategic mistakes made by company executives,
A&P is asking for even more. Enough is enough!
"Instead of asking for more sacrifices to pay-off a select group of
executives and corporate investors, A&P should be focusing on their
workers and their families during this challenging time.
"We want to be very clear, our members and their families
sacrificed. They invested financially and personally in the
success of these stores and they remain committed to working hard
to make these stores a success for any responsible buyers. But
make no mistake, we will not take part in any effort that asks them
to give up what they have earned and deserve.
"Looking ahead, we will work cooperatively and constructively with
anyone, but we will fight back with everything we have if A&P or
its financial backers attempt to further exploit our members. For
A&P to ask our members to give up their rights and benefits is
simply unacceptable. Moreover, it is an insult given that it is
our hard-working members who have and will make these stores a
success. In fact, what will make these stores a true financial
success is new and responsible management, not more sacrifices by
A&P's hard-working men and women.
"If A&P, its executive team, or its investors want to play the
blame game, they should all look in the mirror.
"Now is the time for A&P to do what is right and we fully expect
that they will honor their responsibilities to its employees, our
members, and their families."
About Atlantic & Pacific
Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea
Company, Inc., and its affiliates are one of the nation's oldest
leading supermarket and food retailers, operating approximately 300
supermarkets, beer, wine, and liquor stores, combination food and
drug stores, and limited assortment food stores across six
Northeastern states. The primary retail operations consist of
supermarkets operated under a variety of well known trade names, or
"banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food
Basics, The Food Emporium, Best Cellars, and A&P Liquors. The
Company currently employs approximately 28,500 employees, over 90%
of whom are members of one of twelve local unions whose members are
employed by the Debtors under the authority of 35 separate
collective bargaining agreements (collectively, the "CBAs").
Then with 429 stores, A&P and its affiliates filed Chapter 11
petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and
in 2012 emerged from Chapter 11 bankruptcy as a privately held
company with 320 supermarkets.
On July 19, 2015, with 300 stores, A&P and 20 affiliated debtors
each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching
deals for the going concern sales of 120 stores. The Debtors are
seeking joint administration under Case No. 15-23007.
As of Feb. 28, 2015, the Debtors reported total assets of $1.6
billion and liabilities of $2.3 billion.
The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore
Group L.L.C., as investment banker, FTI Consulting, Inc., as
financial advisor, Hilco Real Estate, LLC, as real estate advisor,
and Prime Clerk LLC, as claims and noticing agent.
ATLANTIC & PACIFIC: Wants Until Aug. 18 to File Schedules
---------------------------------------------------------
The Great Atlantic & Pacific Tea Company, Inc., et al., asked the
U.S. Bankruptcy Court for the Southern District of New York to
extend their deadline to file (a) schedules of assets and
liabilities, (b) schedules of executory contracts and unexpired
leases, and (c) statements of financial affairs, by an additional
30 days, through and including August 18, 2015 without prejudice to
the Debtors’ right to seek further extensions.
Garrett A. Fail, Esq., at Weil, Gotshal & Manges LLP, explains that
while the Debtors, with the assistance of their professional
advisors, are mobilizing their employees to work diligently and
expeditiously on preparing the Schedules, the Debtors’ resources
are strained. Given the amount of work entailed in completing the
Schedules, and the competing demands on the Debtors' employees and
professionals to stabilize business operations during the initial
postpetition period and provide continued support to the Debtors'
efforts to maximize value through a strategic sale process, the
Debtors likely will not be able to properly and accurately complete
the Schedules within the required 14-day time period.
About Atlantic & Pacific
Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea
Company, Inc., and its affiliates are one of the nation's oldest
leading supermarket and food retailers, operating approximately 300
supermarkets, beer, wine, and liquor stores, combination food and
drug stores, and limited assortment food stores across six
Northeastern states. The primary retail operations consist of
supermarkets operated under a variety of well known trade names, or
"banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food
Basics, The Food Emporium, Best Cellars, and A&P Liquors. The
Company employs approximately 28,500 employees, over 90% of whom
are members of one of twelve local unions whose members are
employed by the Debtors under the authority of 35 separate
collective bargaining agreements.
Then with 429 stores, A&P and its affiliates filed Chapter 11
petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and
in 2012 emerged from Chapter 11 bankruptcy as a privately held
company with 320 supermarkets.
On July, 19, 2015, with 300 stores, A&P and 20 affiliated debtors
each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching
deals for the going concern sales of 120 stores. The Debtors are
seeking joint administration under Case No. 15-23007.
As of Feb. 28, 2015, the Debtors reported total assets of
$1.6 billion and liabilities of $2.3 billion.
The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore
Group L.L.C., as investment banker, FTI Consulting, Inc., as
financial advisor, Hilco Real Estate, LLC, as real estate advisor,
and Prime Clerk LLC, as claims and noticing agent.
BAHA MAR: Court to Hear CCA's Ch 11 Suspension Bid on Aug. 17
-------------------------------------------------------------
Rashad Rolle at Tribune 242 reports that China Construction
America's deferral motion to suspend Baha Mar Ltd.'s Chapter 11
proceedings will be addressed on Aug. 17, 2015. Objections to the
motion must be filed by Aug. 10, 2015, the report states.
Tribune 242 relates that the U.S. Bankruptcy Court for the District
of Delaware rejected on July 22, 2015, CCA's request to have its
motion to suspend the Chapter 11 process addressed at an earlier
date than is currently scheduled, until its motion to dismiss the
process altogether is addressed. According to the report, CCA had
sought to have these dates changed to Aug. 3, 2015, and July 29,
2015, respectively.
The Company, Tribune 242 reports, called CCA's legal action an
attempt to divert attention "from its liability and culpability,"
noting that its alleged "repeated failures to perform as contractor
are the subject of a lawsuit . . . pending in the United Kingdom."
The report, citing the Company, states that CCA's attempt to have
an earlier date to address its suspension motion was "reckless,"
and it threatened to "undermine, disrupt and divert critical
resources from delicate negotiations currently taking place in
Beijing, China aimed at resolving the primary dispute in these
Chapter 11 cases and facilitating the opening of the resort. For
its own selfish motives and agenda, CCA urgently requests that the
court stay final consideration of normal, customary, and routine
motions necessary to effectuate the debtors' smooth transition into
Chapter 11."
According to Tribune 242, the Company claimed that CCA failed to
"establish any legitimate exigencies justifying the need" to have
its suspension motion heard sooner than scheduled.
Citing Prime Minister Perry Christie, Tribune 242 relates that the
Company and CCA are engaging in talks concerning the resort which,
according to the government, could lead to the Company negotiating
with the China Export-Import Bank on financial terms for the deal.
If that is successful, multilateral negotiations will take place
among all three sides, with the government serving as an observer,
the report adds.
Tribune 242 reports that the Court is expected to deal on Aug. 3,
2015, with matters relating to granting the Company further relief
through access to its debtor-in-possession financing, although the
orders would have no effect in the Bahamas.
The Company had waited too late to resolve its dispute with CCA, as
they should have gone to mediation months ago, Natario McKenzie at
Tribune 242 relates, citing Attorney Caryl Lashley, a member of
Alternative Dispute Resolution (ADR) Bahamas. The report quoted
her as saying, "We are now in July. They knew in November that the
resorts were not going to open on time. They had an opportunity
and obligation to look at that then . . . . Once they delayed,
other things got into the mix. The right mindset and good faith,
all that needs to be in place. Good faith is absolutely essential
in ADR."
About Baha Mar
Orlando, Florida-based Northshore Mainland Services Inc., Baha Mar
Enterprises Ltd., and their affiliates sought protection under
Chapter 11 of the Bankruptcy Code on June 29, 2015 (Bankr. D.Del.,
Case No. 15-11402). Baha Mar owns, and is in the final stages of
developing, a 3.3 million square foot resort complex located in
Cable Beach, Nassau, The Bahamas.
The case is assigned to Judge Kevin J. Carey.
The Debtors are represented by Paul S. Aronzon, Esq., and Mark
Shinderman, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Los
Angeles, California; and Gerard Uzzi, Esq., Thomas J. Matz, Esq.,
and Steven Z. Szanzer, Esq., at Milbank, Tweed, Hadley & McCloy
LLP, in New York. The Debtors' Delaware counsel are Laura Davis
Jones, Esq., James E. O'Neill, Esq., Colin R. Robinson, Esq., and
Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware. The Debtors' Bahamian counsel is Glinton
Sweeting O'Brien. The Debtors' special litigation counsel is Kobre
& Kim LLP. The Debtors' construction counsel is Glaser Weil Fink
Howard Avchen & Shapiro LLP.
The Debtors' investment banker and financial advisor is Moelis
Company LLC. The Debtors' claims and noticing agent is Prime Clerk
LLC.
BAXANO SURGICAL: Court Confirms Chapter 11 Plan
-----------------------------------------------
Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the
District of Delaware, on July 24, 2015, confirmed the second
amended Chapter 11 plan of reorganization of Baxano Surgical, Inc.,
pursuant to Section 1129 of the Bankruptcy Code.
The Debtors amended its Plan on July 22 to provide, among other
things, that the initial liquidation trustee will be John L. Palmer
and to provide additional language with respect to the Internal
Revenue Services' objection. Following the amendment of the Plan,
the IRS withdrew its objection to confirmation.
Prior to the Disclosure Statement hearing, the Debtor amended its
plan outline to provide that the only remaining assets of the
Debtor's estates are cash (approximately $15,000), account
receivable (approximately $672,000), rights to return of deposits
and refund of unearned insurance premiums (approximately $45,000),
escrows for professional fees (approximately $196,000), potential
causes of action to recover preferential transfers (approximately
$30,000), and certain other causes of action.
The Official Committee of Unsecured Creditors' professionals
conducted certain legal research regarding potential bases for D&O
Causes of Action and they concluded that there may be issues
surrounding the acts and omissions of the Debtor's directors and
officers at the time the Debtor was seeking to raise significant
amounts of capital in 2013 and 2014.
A blacklined version of the Second Amended Plan dated July 22,
2015, is available at http://is.gd/rB2cYo
About Baxano Surgical
Based in Raleigh, North Carolina, Baxano Surgical Inc. develops,
manufactures and markets minimally invasive medical products
designed to treat degenerative conditions of the spine affecting
the lumbar region. As of March 31, 2013, over 13,500 fusion
procedures and 7,000 decompression procedures have been performed
globally using its products.
Baxano Surgical filed a Chapter 11 bankruptcy petition (Bankr. D.
Del. Case No. 14-12545) on Nov. 12, 2014. The case is assigned to
Judge Christopher S. Sontchi.
The Debtor, in an amended schedules, disclosed $24,810,590 in
assets and $26,984,139 in liabilities as of the Chapter 11 filing.
The Debtor has tapped John D. Demmy, Esq., at Stevens & Lee, P.C.,
in Wilmington, Delaware, as bankruptcy counsel. The Debtor is also
employing the law firm of Goodwin Proctor LLP as special counsel,
and the law firm of Hogans Lovell as special healthcare regulatory
counsel. The Debtor is engaging Tamarack Associates to, among
other things, provide John L. Palmer as CRO. Houlihan Lokey is
serving as the Debtor's investment banker. Rust Consulting Omni is
the claims and noticing agent.
The Debtor filed with the Court a Chapter 11 liquidating plan
following the sale of all of its operating assets.
Following the Effective Date, a liquidation trustee will liquidate
the remaining accounts receivable, rights to return of deposits,
refunds of unearned insurance premiums and preference claims. In
addition, assuming a law firm can be identified that is willing to
undertake an investigation of the viability of any Causes of Action
against current and former directors and officers, on terms
acceptable to the Liquidation Trustee, the investigation will be
undertaken.
The Official Committee of Unsecured Creditors selected Pillsbury
Winthrop Shaw Pittman LLP and Morris, Nichols, Arsht & Tunnell LLP
as co-counsel. The Committee also tapped Urbanowicz Consulting,
LLC, as consultant.
BINDER & BINDER: To Have Fewer Than 400 Workers Over Next 2 Years
-----------------------------------------------------------------
Chad Halcom at Crain's Detroit Business writes that Binder & Binder
LLC said it would decrease the number of its employees to less than
400 over the next two years from more than 960 in 2014, to cope
with market changes and its own debts.
About Binder & Binder
Founded in 1979 by brothers Harry and Charles Binder, Binder &
Binder is the nation's largest provider of social security
disability and veterans' benefits advocacy services, with
operating scale and efficiencies unrivaled by its competitors in
the highly fragmented advocacy market. The Company has more than
950 employees in 35 offices across the United States. In 2010,
H.I.G. Capital, LLC, acquired a controlling equity interest in
the Company.
Binder & Binder - The National Social Security Disability
Advocates (NY), LLC, et al., sought Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 14-23728) in White
Plains, New York on Dec.18, 2014. The cases are assigned to
Judge Robert D. Drain.
The Debtors have tapped Kenneth A. Rosen, Cassandra Porter, Esq.,
and Nicholas B. Vislocky, Esq., at Lowenstein Sandler as counsel.
The Debtors have engaged Development Specialists, Inc., as
financial advisor, and BMC Group Inc. as claims and notice agent.
The U.S. Trustee appointed an Official Committee of Unsecured
Creditors in the Debtors' cases. The Committee is now comprised
of (i) United Service Workers Union, Local 455 IUJAT & Related
Funds, (ii) T&G Industries, Inc., (iii) WB Mason Co., and (iv)
Teaktronics, Inc.
* * *
The Debtors currently have exclusivity through Dec. 14, 2015, to
file a Chapter 11 plan. They also have until Feb. 16, 2016 to
solicit acceptances of that plan.
BLACK PRESS: S&P Raises Corp Credit Rating to 'B', Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its long-term
corporate credit rating on Black Press Ltd. to 'B' from 'B-'. The
outlook is stable.
Standard & Poor's also raised its issue-level ratings on the senior
secured term loans issued by Black Press Group Ltd. and Sound
Publishing Holding, Inc. to 'BB-' from 'B+'. The '1' recovery
rating on these facilities is unchanged, reflecting S&P's
expectation of very high (90%-100%) recovery for lenders in the
event of a default.
"The upgrade reflects our expectation that Black Press will
maintain credit metrics generally consistent with or better than an
aggressive financial risk profile," said Standard & Poor's credit
analyst David Fisher.
Specifically, S&P expects adjusted debt-to-EBITDA of less than 4x
and funds from operations (FFO)-to-debt of about 20% or higher --
with the potential for credit metrics to weaken to the aggressive
category under stressed market conditions. Accordingly, S&P has
revised its financial risk profile assessment to "aggressive" from
"highly leveraged."
S&P's adjusted credit metrics now include the results of Black
Press' 99%-owned subsidiary, Oahu Publishing Inc. (OPI). This
subsidiary was previously deconsolidated in S&P's analysis;
however, given its increasing importance to the larger group S&P
has revised its scope of consolidation to include it. OPI
represents about one-third of consolidated EBITDA and should pay
increasing dividends to the larger group. Accordingly, S&P deems
it to be a core entity of Black Press and analyze the financial
results of Black Press (including OPI) on a consolidated basis
(deconsolidated for recovery; see recovery analysis section for
additional details).
Black Press competes against both larger media organizations and
smaller news outlets that have been empowered by the rapid news
dissemination capabilities of the Internet. The company's limited
scale results in a relatively fixed cost base; S&P believes further
material cost cuts could be challenging.
However, the company benefits from solid market positions in many
of the markets it serves. Black Press' publications are the
leading or sole newspaper in many of the regions in which the
company operates so competition is primarily from Internet-based
news sources or alternative publications. Recent consolidation in
certain regions of B.C. should improve the company's market
position.
The stable outlook reflects S&P's view that Black Press will
maintain its market position in key regions while using free
operating cash flow to aggressively repay debt, thereby supporting
adjusted debt-to-EBITDA at about 4x or below over the next 12
months. S&P also expects the company to maintain adequate
liquidity during this time.
S&P could lower the ratings should adjusted debt to EBITDA exceed
4x in 12 months from now. Given S&P's expectation that debt will
decline because of the company's aggressive debt amortization
schedule, S&P believes credit metric deterioration would most
likely stem from weakening operating performance. If this were to
occur, S&P believes the company could generate insufficient cash
flow to support its fixed charges (including mandatory debt
amortization), or lead to tightening covenant headroom, likely
leading to a downgrade. S&P could also lower the ratings if
liquidity appears insufficient to cover the company's aggressive
debt amortization.
Although not likely in the near term given challenging industry
conditions, S&P could raise the ratings if adjusted debt-to-EBITDA
declined to less than 3x due to revenue and earnings growth. Any
upgrade consideration would also take into account prevailing
newspaper industry conditions at the time.
BRUSH CREEK: Buckhorn HOA Seeks to Exercise Rights on Col. Lots
---------------------------------------------------------------
Buckhorn Ranch Association, Inc., asks the U.S. Bankruptcy Court
for the District of Colorado to lift the automatic stay imposed in
the Chapter 11 case of Brush Creek Airport, LLC, to allow it to
protect its secured lien positions and statutory rights.
The Debtor is a property development company which owns a 97-lots
subdivision known as Buckhorn Ranch near Crested Butte, Colorado.
Among other things, Buckhorn HOA is responsible for overseeing
within the Buckhorn Ranch Subdivision (i) the maintenance of open
spaces and roads; (ii) the allocation of irrigation water; and
(iii) the construction and maintenance of recreational facilities,
including employment of staff.
The failure of the Debtor to pay its past and on-going dues and
assessments has caused and continues to cause harm and injury to
the residents of the Subdivision whose property values are
negatively impacted by the inability of the Buckhorn HOA to
properly fulfill its duties due to lack of payment by the Debtor,
Michael J. Guyerson, Esq., at Onsager Guyerson Fletcher Johnson, in
Denver, Colorado, tells the Court.
Buckhorn HOA adds that the Debtor does not generate sufficient
revenues to make payments to Buckhorn HOA and is delinquent on its
post-petition HOA assessment on all of its owned lots. Moreover,
the Debtor's operating reports show that it does not generate
sufficient cash on a monthly basis to make payments, Mr. Guyerson
said.
Accordingly, Buckhorn HOA asks the Court to lift the automatic stay
and permit the Buckhorn HOA to exercise any and all of its state
law rights and remedies with respect to the 97 real estate lots the
Debtor owns in Gunnison County, Colorado.
Buckhorn Ranch Association, Inc. is represented by:
Michael J. Guyerson, Esq.
David M. Little, Esq.
ONSAGER GUYERSON FLETCHER JOHNSON
Broadway, Suite 900
Denver, CO 80202
Tel: (303) 512-1123
Fax: (303) 512-1129
Email: mguyerson@OGFJ-law.com
dlittle@OGFJ-law.com
About Brush Creek Airport
Brush Creek Airport, LLC, is the real estate developer of the
Buckhorn Ranch Subdivision in unincorporated Gunnison County, near
Crested Butte, Colorado. The Buckhorn Ranch Subdivision consists
of 249 lots and features a private airstrip and fishing and
recreational licenses for a portion of the Upper East River. It
owns 97 improved lots in the Buckhorn Ranch Subdivision that are
available for construction, but upon which no homes have been
built. It also owns the Upper East River Water Company, LLC, which
provides water taps for lots and water services for homes in the
subdivision.
Brush Creek Airport, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D. Col. Case No. 14-14630) in Denver on April 10, 2014.
The Debtor estimated assets of $10 million to $50 million and debt
of $1 million to $10 million.
The Debtor has employed Sender Wasserman Wadsworth, P.C. as counsel
and 5280 Accounting Services, LLC, as accountants and bookkeepers.
BUCCANEER ENERGY: Asks Homer City, et al., to Return Payments
-------------------------------------------------------------
Homer News reports that Buccaneer Oil's trustee sent letters to the
city of Homer, Homer Electric Association and several business,
asking that they return the preferential payments made to them in
the 90 days before the bankruptcy filing.
The letter, according to The Associated Press, goes on to explain
these preferential payments should be returned so that funds can be
distributed to creditors proportionately.
According to The AP, recipients of the letter claimed that payments
were not preferential but were made to them through the ordinary
course of business.
"This seems ridiculous. If you collect money from someone and 90
days later they go bankrupt, they can get money back?" The AP
quoted Homer council member David Lewis as saying during a city
council meeting.
About Buccaneer Energy
Buccaneer Resources, LLC, and eight affiliates, including
Buccaneer Energy Ltd., sought Chapter 11 bankruptcy protection in
Victoria, Texas (Bankr. S.D. Tex. Lead Case No. 14-60041) on
May 31, 2014.
Buccaneer Resources' primary business is the exploration for and
production of oil and natural gas in North America and their
operations are focused on both onshore and offshore activities in
the Cook Inlet of Alaska as well as the development of offshore
projects in the Gulf of Mexico and onshore oil opportunities in
Texas and Louisiana.
Founded in 2006, Buccaneer Energy, Ltd., is a publicly traded
independent oil and gas company listed on the Australian
Securities Exchange under the symbol "BCC". Although BCC is an
Australian listed entity, the company operates exclusively through
its eight U.S. subsidiary debtors, each of which are headquartered
in the U.S. and which maintain offices in Houston and Dallas,
Texas, and Kenai and Anchorage, Alaska.
CEO Curtis Burton was terminated in May 2014. Manning the
Debtors' operations is Conway MacKenzie senior managing director
John T. Young, who was appointed chief restructuring officer in
March 2014.
The bankruptcy cases are assigned to Judge David R Jones. The
Debtors have sought and obtained an order authorizing joint
administration of their Chapter 11 cases. The other debtors are
Buccaneer Energy Limited, Buccaneer Energy Holdings, Inc.,
Buccaneer Alaska Operations, LLC, Buccaneer Alaska, LLC, Kenai
Land Ventures, LLC, Buccaneer Alaska Drilling, LLC, Buccaneer
Royalties, LLC, and Kenai Drilling, LLC.
The Debtors have tapped Robert Andrew Black, Esq., Jason Lee
Boland, Esq., Robert Bernard Bruner, and William R Greendyke,
Esq., at Fulbright Jaworski LLP as counsel. Norton Rose Fulbright
Australia will render legal services related to cross-border
insolvency and general corporate and litigation matters to
Buccaneer Energy Ltd. Epiq Systems is the claims and notice
agent.
U.S. Bankruptcy Judge David R. Jones has conditionally approved
Buccaneer's First Amended Disclosure Statement and Plan of
Reorganization dated Nov. 5, 2014. The Debtors' assets are being
marketed for sale with the assistance of a sales agent based on
prior authorization from the Court. The Debtors anticipate that
the majority of their oil and gas properties and interests will be
sold at an auction to be held prior to the hearing on the Plan.
The Plan will not become effective until after the closing of this
sale.
The U.S. Trustee for Region 7 on June 10, 2014, appointed five
creditors to serve on the official committee of unsecured
creditors. The Committee retained Greenberg Traurig, LLP, as legal
counsel to the Committee, and Alvarez & Marsal North America, LLC,
as financial advisors.
As reported by the Troubled Company Reporter on March 23, 2015,
BankruptcyData reported that Buccaneer Energy Limited's First
Amended Joint Chapter 11 Plan, as modified, became effective; and
the Company emerged from Chapter 11 protection.
CAESARS ENT: Parent's Failure to Block Suits Might Lead to Bankr.
-----------------------------------------------------------------
Terry Davis, writing for Casinonewsdaily.com, reports that Caesars
Entertainment Corp. might file for bankruptcy.
As reported by the Troubled Company Reporter on July 23, 2015,
Joseph Checkler, writing for Dow Jones' Daily Bankruptcy Review,
reported that the judge ruled that four creditor lawsuits against
the Company can continue, saying the bankruptcy of the casino
giant's top operating subsidiary shouldn't delay the cases against
its parent.
According to Casinonewsdaily.com, the main operating unit owes
billions of dollars to those hedge fund creditors, which claimed
that the Company had guaranteed the debts. Kaycee James at
Pokersites.com states that Caesars had offered $400 million to
those financiers, a fraction of the $10 billion the bankruptcy
action is attempting to dispose.
Casinonewsdaily.com relates that the Company together with TPG
Capital and Apollo Global Management LLC, its private-equity
backers, had pointed out that stopping the cases was crucial to
their attempt to overhaul the operating unit's debt, which amounts
to $18 billion. The report says that if the rulings on the pending
lawsuits are not in favor of the Company, the Company is threatened
to join its unit in bankruptcy. The report adds that the Court's
decision led to the Company's stock plummeting more than 40% on
Wednesday.
About Caesars Entertainment
Caesars Entertainment Corp., formerly Harrah's Entertainment Inc.,
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.
In January 2015, Caesars Entertainment and subsidiary Caesars
Entertainment Operating Company, Inc., 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.
Appaloosa Investment Limited, et al., owed $41 million on account
of 10% second lien notes in the company, filed an involuntary
Chapter 11 bankruptcy petition against CEOC (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.
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.
Delaware Bankruptcy Judge Kevin Gross entered a ruling that the
bankruptcy proceedings will proceed in the U.S. Bankruptcy Court
for the Northern District of Illinois.
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.
The U.S. Trustee has appointed seven noteholders to serve in the
Official Committee of Second Priority Noteholders and nine members
to serve in the Official Unsecured Creditors' Committee.
The U.S. Trustee appointed Richard S. Davis as Chapter 11
examiner.
* * *
The Troubled Company Reporter, on April 27, 2015, reported that
Fitch Ratings has affirmed and withdrawn the Issuer Default Ratings
(IDR) and issue ratings of Caesars Entertainment Operating Company
(CEOC). These actions follow CEOC's Chapter 11 filing on Jan. 15,
2015. Accordingly, Fitch will no longer provide ratings or
analytical coverage for CEOC.
In addition, Fitch has affirmed the IDR and issue rating of Chester
Downs and Marina LLC (Chester Downs) and the ratings have been
simultaneously withdrawn for business reasons.
CANDAX ENERGY: Gets Additional Facility Agreement Waiver Extension
------------------------------------------------------------------
Candax Energy Inc., a company with mature oil & gas field
developments in Tunisia, on July 24 disclosed that it has obtained
from Geofinance NV, major debtholder and shareholder of the
Company, a further extension of 9 days on the waiver with respect
to terms of the facility agreement entered into by the parties.
The extension will extend the waiver until July 31, 2015. As a
result, Geofinance NV has agreed not to seek any remedy under the
facility agreement in respect of the $3.5 million unpaid amount
until July 31, 2015, except in case of specific circumstances. A
copy of the amendment and waiver letter will be filed publicly by
the Company and available on SEDAR.
The Company is in advanced discussions regarding financial
alternatives and needs more time to continue these discussions.
"The support of our lender and majority shareholder is key during
this period of discussions," commented Candax CFO and interim CEO,
Pierre-Henri Boutant.
About Candax
Candax is an international energy company with offices in Toronto
and Tunis. The Candax group is engaged in exploration and the
production of oil and gas in Tunisia and holds a royalty interest
in an exploration permit in Madagascar.
CAST & CREW: S&P Assigns 'B' Corp. Credit Rating, Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B'
corporate credit rating to Burbank, Calif.-based Cast & Crew
Payroll LLC. The outlook is stable.
At the same time, S&P assigned its 'B+' issue-level rating and '2'
recovery rating to the company's proposed first-lien credit
facilities, including a $65 million revolving facility due 2020 and
$270 million term loan due 2022. The '2' recovery rating indicates
S&P's expectation for lenders to receive meaningful (70% to 90%, at
the high end of the range) recovery in the event of a payment
default.
In addition, S&P assigned its 'CCC+' issue-level rating and '6'
recovery rating to Cast & Crew's proposed $95 million second-lien
term loan due 2023. The '6' recovery rating indicates S&P's
expectation for lenders to receive negligible (0% to 10%) recovery
in the event of a payment default.
S&P's ratings assume the transactions close on substantially the
same terms presented to S&P.
"The ratings reflect Cast & Crew's highly leveraged financial
condition, financial sponsor ownership, narrow business focus, and
concentration in the technology-enabled payroll processing vertical
serving the entertainment production industry," said Standard &
Poor's credit analyst Peter Deluca.
"We have also factored into the rating the company's good market
position, diversified client base, and high client retention
rates," he added.
The stable rating outlook reflects S&P's expectation that Cast &
Crew's credit metrics will strengthen modestly over the next year,
including leverage in the low-5x area, primarily through EBITDA
growth. S&P also believes it will maintain its current customer
base because of its high quality service delivery and strong
relationships.
Although unlikely, S&P would consider an upgrade if the company
improves credit metrics (perhaps from stronger revenue growth) such
that leverage decreases to below 5x on a sustained basis. S&P
estimates this could occur if the company pays down approximately
$80 million in debt or EBITDA increases by about 25% (assuming
current debt and EBITDA levels). This would likely be predicated
on a change in ownership or prolonged EBITDA expansion.
S&P could lower its ratings if leverage increases to above 7x on a
sustained basis, perhaps from a security breach that damages the
company's reputation, resulting in client attrition and cash flow
and profit declines. S&P estimates this could occur if EBITDA
declines by approximately 15% (assuming current debt levels.)
COVENANT TO CARE: Files for Chapter 11 Bankruptcy Protection
------------------------------------------------------------
Covenant to Care, Inc., filed for Chapter 11 bankruptcy protection
(Bankr. E.D. Mich. Case No. 15-50936) on July 21, 2015, estimating
its assets and liabilities at between $100,001 and $500,000 each.
Judge Mark A Randon presides over the case.
Yuliy Osipov, Esq., at Osipov Bigelman, P.C., is the Company's
bankruptcy counsel.
The Sec. 341(a) meeting will be held on Aug. 18, 2015, at 1:30 p.m.
at room 315 E, 211 W. Fort Street Building Detroit 341.
Proofs of claim must be filed by Nov. 16, 2015.
The schedules of assets and liabilities and statement of financial
affairs are due Aug. 4, 2015.
The Company must file a Chapter 11 plan by Jan. 19, 2016.
The Company is headquartered in Westland, Michigan.
CURTIS JAMES JACKSON: Has $4.4 Million in Assets, Lawyer Says
-------------------------------------------------------------
Aly Weisman at Business Insider Australia reports that the attorney
for Curtis James Jackson, III, aka 50 Cent told the Manhattan
Supreme Court that his client's worth is $4.4 million, almost a
million dollars short of the $5 million he is required to pay
Lastonia Leviston, rival Rick Ross' ex-girlfriend whose sex tape he
leaked.
As reported by the Troubled Company Reporter reported on July 20,
2015, Ben Westhoff at Theguardian.com reported that before Mr.
Jackson filed for bankruptcy, he was ordered by a Manhattan jury to
pay $5 million to Ms. Leviston.
"It's almost laughable for Mr. Jackson to think anyone believes
he's broke and that everything is smoke and mirrors. His business
entities show otherwise," The Wrap quoted Ms. Leviston's attorney,
Hunter Shkolnik, Esq., as saying.
Forbes estimated Mr. Jackson's fortune to be about $155 million in
May 2015.
According to Business Insider, Mr. Jackson explained in court that:
(i) while his social-media accounts may be filled with flashy
photos, "I take the jewelry and the cars back to the stores"; (ii)
he only made "10 cents a record" from his 38 million album sales,
and $100,000 for "Spy" and "Southpaw", the two movies he's
currently in; (iii) for his hit Straz series "Power," on which he
is also an executive producer, he's pocketed only $150,000 from
each of its first two seasons.
New York Daily News relates that Mr. Jackson admitted that he
recently threw cash around at a Florida strip club and bought a
Rolls Royce on July 4, 2015, but said, "I took two others back" to
buy it.
Curtis James Jackson, III, aka 50 Cent filed for Chapter 11
bankruptcy protection (Bankr. D. Conn. Case No. 15-21233) on July
13, 2015.
As reported by the Troubled Company Reporter on July 15, 2015, Katy
Stech, writing for The Wall Street Journal, reported that Mr.
Jackson filed for bankruptcy protection, halting a dispute over a
sex tape.
CURTIS JAMES JACKSON: Has To Pay Add'l $2M to Lastonia Leviston
---------------------------------------------------------------
Mike Tuttle at Webpronews.com writes that the jury has added $2
million to the $5 million Curtis James Jackson III has to pay
Lastonia Leviston, a woman whose sex tape he leaked.
"Although we appreciate the jury's service, we are disappointed in
the result. Our client intends to file post-verdict, pre-judgment
motions which we believe should reduce the size of the award.
Ultimately, the fate of any obligation to pay a final judgment will
be determined by the bankruptcy court," Webpronews quoted Mr.
Jackson's attorney as saying.
Jonathan Marino at Business Insider Australia reports that if Mr.
Jackson can't come up with the cash, he might have to start selling
his assets off to pay his creditors.
According to Business Insider, the jury wouldn't buy the idea that
Mr. Jackson was broke.
Mr. Jackson is only about a half-million dollars in the hole
besides the two lawsuits totaling nearly $25 million in judgments
against him, Business Insider relates, citing Hunter Shkolnik, a
lawyer for one of the parties suing Mr. Jackson. The report says
that Mr. Jackson has also kept current on his bills.
Mr. Shkolnik, according to Business Insider, said that Mr. Jackson
cut a $29 million loan to his production company G-Unit in 2014,
which the legal team brought to the judge's attention as it was
not included in his initial filing. The report quoted Mr. Shkolnik
as saying, "We called him out on it and the judge agreed. It's
going to show up in bankruptcy court. He's not bankrupt; he's not
broke. Chapter 11 isn't made to protect rich people from having to
pay their debts."
Business Insider states that Mr. Jackson's own accountant wasn't
aware of the $29 million loan and couldn't recall who purchased
rights to $3 million worth of Mr. Jackson's songs.
Mr. Jackson will be back in court in late July as bankruptcy
hearings continue to determine the state of his finances, Business
Insider reports, citing Mr. Shkolnik.
Curtis James Jackson, III, aka 50 Cent filed for Chapter 11
bankruptcy protection (Bankr. D. Conn. Case No. 15-21233) on July
13, 2015.
As reported by the Troubled Company Reporter on July 15, 2015, Katy
Stech, writing for The Wall Street Journal, reported that Mr.
Jackson filed for bankruptcy protection, halting a dispute over a
sex tape.
DANUBE APARTMENTS: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: 388028 British Columbia Ltd., Inc.
dba Danube Apartments
c/o Strong Management, Inc.
Attn: David C. Strong
1201 S. Orlando Ave., Ste 203
Winter Park, FL 32789
Case No.: 15-06408
Chapter 11 Petition Date: July 24, 2015
Court: United States Bankruptcy Court
Middle District of Florida (Orlando)
Debtor's Counsel: Frank M Wolff, Esq.
WOLFF HILL MCFARLIN & HERRON PA
1851 West Colonial Drive
Orlando, FL 32804
Tel: (407) 648-0058
Fax: (407) 648-0681
Email: fwolff@whmh.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sushil Batra, president.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
DELTA AIR: S&P Raises Corp. Credit Rating to 'BB+', Outlook Stable
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it has raised its
ratings on Delta Air Lines Inc., including S&P's corporate credit
rating on the company, to 'BB+' from 'BB'. The outlook is stable.
At the same time, S&P raised many of its issue-level ratings on the
company's debt, but affirmed certain pass-through certificates
whose particular circumstances did not support an upgrade under
S&P's criteria. In particular, S&P did not raise its ratings on
certain Class A certificates because the rating on the related
liquidity facility provider, which caps the certificate rating
under S&P's counterparty criteria, was already at the same level as
the existing ratings on the certificates. S&P did not revise any
recovery ratings.
"The upgrade is based on our expectation that Delta's credit
measures will continue to strengthen in 2015 and 2016," said
Standard & Poor's credit analyst Philip Baggaley. Delta reported
second-quarter 2015 adjusted pretax income of $1.64 billion,
compared with $1.44 billion for the same period a year earlier.
This is after deducting $720 million of mark-to-market fuel hedge
losses that the company reported under generally accepted
accounting principles (GAAP) in 2014, but which were settled in
second-quarter 2015. Without those (and other minor) adjustments,
Delta's GAAP pretax income was an impressive $2.37 billion
(compared with $1.44 billion in 2014). Passenger revenue per
available seat mile (PRASM; an airline industry measure of revenue
generation) declined by 5%, but the company's fuel expense was much
lower (even including hedge losses) and its nonfuel cost per
available seat mile (CASM) declined by 1%. The pressure on Delta's
revenue generation is similar to the trends at other airlines and
reflects a combination of translating revenues from
foreign-currency ticket sales at a lower rate against the strong
dollar and some increased domestic and overseas pricing
competition. In response, Delta and some other U.S. airlines are
scaling-back the number of flights they will have on selected
international routes in the fourth quarter relative to their
previous plans.
The stable outlook reflects S&P's expectation that Delta's credit
ratios will improve in 2015, but that further gains will be more
gradual because of increased share repurchases. S&P is also
mindful that 2015 and 2016 will likely be peak years for the U.S.
airline industry, and changes in either the relatively favorable
economic conditions or low fuel prices could pressure the company's
earnings at some point in the future.
S&P believes that a downgrade is unlikely; however, S&P could lower
its ratings on Delta if the company's earnings and cash flow weaken
because of softer demand or an increase in fuel prices such that
its funds flow-to-debt ratio remained below 30% with little
prospect of improvement. Such an outcome could occur also if Delta
adopted a more aggressive financial policy involving debt-funded
share repurchases.
While unlikely, S&P could raise its ratings on Delta if the
company's credit measures improve more rapidly than S&P expects,
with a funds flow-to-debt ratio consistently in excess of 45% and a
free cash flow-to-debt ratio of more than 25%. This could occur
because of a combination of stronger-than-expected earnings, debt
paydowns, and a material shrinkage of the airline's retiree
liabilities due to higher interest rates, excess funding of
employee pensions, and strong pension fund asset performance. In
such a scenario, S&P would also focus on the sustainability of such
gains, given the industry outlook at that time.
EDUCATIONAL MANAGEMENT: Files for Chapter 7 Liquidation
-------------------------------------------------------
Educational Management Group & Associates L.L.C., filed for Chapter
7 bankruptcy protection (Bankr. E.D. Mich. Case No. 15-50953) on
July 22, 2015. Judge Walter ShaperoDetroit presides over the
case.
The Company is represented by Joseph L. Grima, Esq.
A Sec. 341(a) meeting meeting will be held on Aug. 27, 2015, at
11:00 a.m. at Room 315, 211 W. Fort Street Building, Detroit 341.
Gene R. Kohut is appointed as interim trustee.
Educational Management Group & Associates L.L.C. is headquartered
in White Lake, Michigan.
ENERGY FUTURE: Favors REIT Deal as Path to Ch. 11 Emergence
-----------------------------------------------------------
Energy Future Holdings Corp., Energy Future Intermediate Holding
Company LLC, Texas Competitive Electric Holdings Company LLC, and
other debtors filed on July 23, 2015, a revised plan of
reorganization and accompanying disclosure statement that reflects
two potential paths to emergence:
(1) a transaction under which $12.1 billion of new debt and
equity arranged by the ad hoc group of TCEH unsecured
noteholders and Hunt Consolidated, Inc., including a fully
backstopped $5.1 billion rights offering to the unsecured
creditors of TCEH and its subsidiaries, would be used to
pay all allowed claims against EFH Corp. and EFIH in cash
in full and EFH Corp. would be converted into a real estate
investment trust; and
(2) a standalone plan pursuant to which the creditors of EFH
Corp. and EFIH would convert their debt into equity of
reorganized EFH Corp.
The Debtors propose that TCEH would be spun off through a tax-free
transaction to the TCEH first lien lenders under either of the
Transactions. Subject to the resolution of certain critical
issues, which the Debtors believe can be resolved, the Debtors view
the REIT Transaction as the superior path to exit because it would
resolve the vast majority of contested issues in this case, has the
support of substantially all of the creditors of the TCEH Debtors,
and, if consummated, will pay all creditors of EFH Corp. and EFIH
in full in cash.
According to the Debtors, since the last hearing, the TCEH
Unsecured/Hunt Consortium, the TCEH first lien creditors, the TCEH
creditors' committee, and the Debtors have made tremendous progress
in negotiations on the terms of the REIT Transaction. As a result
of this progress, the REIT Transaction is in a more advanced state
than the Standalone Transaction. The negotiations regarding both
Transactions, however, are still ongoing, the Debtors said.
The Debtors add that they are currently working to reach rapid
closure on the open issues regarding the REIT Transaction and, upon
doing so, would amend the plan to delete all references to the
Standalone Transaction. In the event that the negotiations
regarding the REIT Transaction reach an impasse, then the Debtors
reserve their rights to pursue the Standalone Transaction and the
creditors of the TCEH Debtors have informed the Debtors that they
reserve all of their rights as well.
A blacklined version of the Amended Disclosure Statement dated July
23, 2015, is available at http://is.gd/yvDteM
The Debtors are represented by Mark D. Collins, Esq., Daniel J.
DeFranceschi, Esq., and Jason M. Madron, Esq., at Richards, Layton
& Finger, P.A., in Wilmington, Delaware; Edward O. Sassower, P.C.,
Esq., and Stephen E. Hessler, Esq., at Kirkland & Ellis LLP, in New
York; James H.M. Sprayregen, P.C., Esq., and Brian E. Schartz,
Esq., at Kirkland & Ellis International LLP, in New York; and Marc
Kieselstein, P.C., Esq., Chad J. Husnick, Esq., and Steven N.
Serajeddini, Esq., at Kirkland & Ellis International LLP, in
Chicago, Illinois.
About Energy Future
Energy Future Holdings Corp., formerly known as TXU Corp., is a
privately held diversified energy holding company with a portfolio
of competitive and regulated energy businesses in Texas. Oncor,
an 80 percent-owned entity within the EFH group, is the largest
regulated transmission and distribution utility in Texas.
The Company delivers electricity to roughly three million delivery
points in and around Dallas-Fort Worth. EFH Corp. was created in
October 2007 in a $45 billion leverage buyout of Texas power
company TXU in a deal led by private-equity companies Kohlberg
Kravis Roberts & Co. and TPG Inc.
On April 29, 2014, Energy Future Holdings and 70 affiliated
companies sought Chapter 11 bankruptcy protection (Bankr. D. Del.
Lead Case No. 14-10979) after reaching a deal with some key
financial stakeholders to keep its businesses operating while
reducing its roughly $40 billion in debt.
The Debtors' cases have been assigned to Judge Christopher S.
Sontchi (CSS). The Debtors are seeking to have their cases
jointly administered for procedural purposes.
As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in
book value and liabilities of $49.7 billion. The Debtors have $42
billion of funded indebtedness.
EFH's legal advisor for the Chapter 11 proceedings is Kirkland &
Ellis LLP, its financial advisor is Evercore Partners and its
restructuring advisor is Alvarez & Marsal. The TCEH first lien
lenders supporting the restructuring agreement are represented by
Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor,
and Millstein & Co., LLC, as financial advisor.
The EFIH unsecured creditors supporting the restructuring
agreement are represented by Akin Gump Strauss Hauer & Feld LLP,
as legal advisor, and Centerview Partners, as financial advisor.
The EFH equity holders supporting the restructuring agreement are
represented by Wachtell, Lipton, Rosen & Katz, as legal advisor,
and Blackstone Advisory Partners LP, as financial advisor. Epiq
Systems is the claims agent.
Wilmington Savings Fund Society, FSB, the successor trustee for
the second-lien noteholders owed about $1.6 billion, is
represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and
Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S.
Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq.,
Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee represents the interests of the unsecured
creditors of ONLY of Energy Future Competitive Holdings Company
LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings
Company LLC; and EFH Corporate Services Company, and of no other
debtors. The Committee has selected Morrison & Foerster LLP and
Polsinelli PC for representation in this high-profile energy
restructuring. The lawyers working on the case are James M. Peck,
Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at
Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K.
Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at
Polsinelli PC.
ENERGY FUTURE: Files Amended Chapter 11 Exit Plan
-------------------------------------------------
Energy Future Holdings Corp. and the substantial majority of its
direct and indirect subsidiaries, including Energy Future
Intermediate Holding Company LLC, Energy Future Competitive
Holdings Company LLC and Texas Competitive Electric Holdings
Company LLC filed on July 23, 2015, an Amended Joint Plan of
Reorganization pursuant to Chapter 11 of the Bankruptcy Code and a
related amended Disclosure Statement.
The Amended Plan and the Amended Disclosure Statement contain or
discuss certain projections of Texas Competitive Electric Holdings
Company LLC's financial performance for fiscal years 2015 through
2020, the same projections that were included in the disclosure
statement filed with the Bankruptcy Court in April 2015 by the
Debtors. The Debtors do not, as a matter of course, publish their
business plans, budgets or strategies, or distribute external
projections or forecasts of their anticipated financial position or
results of operations. The Debtors recommend that holders of
claims against the Debtors refer to the limitations and
qualifications included in the Amended Plan and the Amended
Disclosure Statement, as applicable, with respect to the
Projections.
The Bankruptcy Code does not permit solicitation of acceptances of
the Amended Plan until the Bankruptcy Court approves the applicable
Disclosure Statement relating to the Amended Plan.
Peg Brickley, writing for The Wall Street Journal, reported that
the Amended Chapter 11 plan documents say the company is still
weighing two options. But headed into a crucial phase in its
hard-fought Chapter 11 case, Energy Future believes a buyout offer
for Oncor from junior bondholders, in an alliance with Hunt
Consolidated Inc., is "the superior path" to the exit.
A copy of the Amended Plan is available at http://is.gd/JLbuGr
A copy of the Amended Disclosure Statement is available at
http://is.gd/UCsK2Z
About Energy Future
Energy Future Holdings Corp., formerly known as TXU Corp., is a
privately held diversified energy holding company with a portfolio
of competitive and regulated energy businesses in Texas. Oncor,
an
80 percent-owned entity within the EFH group, is the largest
regulated transmission and distribution utility in Texas.
The Company delivers electricity to roughly three million delivery
points in and around Dallas-Fort Worth. EFH Corp. was created in
October 2007 in a $45 billion leverage buyout of Texas power
company TXU in a deal led by private-equity companies Kohlberg
Kravis Roberts & Co. and TPG Inc.
On April 29, 2014, Energy Future Holdings and 70 affiliated
companies sought Chapter 11 bankruptcy protection (Bankr. D. Del.
Lead Case No. 14-10979) after reaching a deal with some key
financial stakeholders to keep its businesses operating while
reducing its roughly $40 billion in debt.
The Debtors' cases have been assigned to Judge Christopher S.
Sontchi (CSS). The Debtors are seeking to have their cases
jointly
administered for procedural purposes.
As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in
book value and liabilities of $49.7 billion. The Debtors have $42
billion of funded indebtedness.
EFH's legal advisor for the Chapter 11 proceedings is Kirkland &
Ellis LLP, its financial advisor is Evercore Partners and its
restructuring advisor is Alvarez & Marsal. The TCEH first lien
lenders supporting the restructuring agreement are represented by
Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor,
and
Millstein & Co., LLC, as financial advisor.
The EFIH unsecured creditors supporting the restructuring
agreement are represented by Akin Gump Strauss Hauer & Feld LLP,
as
legal advisor, and Centerview Partners, as financial advisor. The
EFH equity holders supporting the restructuring agreement are
represented by Wachtell, Lipton, Rosen & Katz, as legal advisor,
and Blackstone Advisory Partners LP, as financial advisor. Epiq
Systems is the claims agent.
Wilmington Savings Fund Society, FSB, the successor trustee for
the
second-lien noteholders owed about $1.6 billion, is
represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and
Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S.
Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq.,
Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq.
An Official Committee of Unsecured Creditors has been appointed in
the case. The Committee represents the interests of the unsecured
creditors of ONLY of Energy Future Competitive Holdings Company
LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings
Company LLC; and EFH Corporate Services Company, and of no other
debtors. The Committee has selected Morrison & Foerster LLP and
Polsinelli PC for representation in this high-profile energy
restructuring. The lawyers working on the case are James M. Peck,
Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at
Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K.
Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at
Polsinelli PC.
ESCO MARINE: Committee Challenges Validity of Callidus Liens
------------------------------------------------------------
ESCO Marine Inc.'s official committee of unsecured creditors has
filed a complaint against the company's Toronto-based lender
Callidus Capital Corp.
In its complaint, the committee asked Judge Richard Schmidt of U.S.
Bankruptcy for the Southern District of Texas for declaratory
relief determining the "extent, priority and validity" of liens of
Callidus on certain properties owned by ESCO Marine and its
affiliates.
The committee questioned the validity of liens granted to Callidus
in return for the loan it committed to provide to finance the sale
of assets of the companies.
One of the assets on which the lender reportedly holds a lien is a
real property owned by Esco Metals LLC located in Donna, Texas.
Another is a vessel called Miss Angie, which is owned by ESCO
Marine, according to court filings.
According to the committee, Callidus will be the primary
beneficiary of the sale since most, if not all, of the proceeds
will be used to satisfy its liens.
About ESCO Marine
ESCO Marine, Inc., and four affiliates sought Chapter 11 Bankruptcy
protection in Corpus Christi, Texas (Bankr. S.D. Tex.) on March 7,
2015.
ESCO Marine disclosed $28.8 million in assets and $35.5 million in
debt as of Jan. 31, 2015.
The cases are assigned to Judge Richard S. Schmidt. The Debtors
filed an emergency motion seeking joint administration of their
Chapter 11 cases, requesting to designate as the "main case" the
proceedings of ESCO Marine, Inc., Case No. 15-20107.
ESCO Metals, LLC, ESCO Shredding, LLC, Texas Best Recycling, LLC,
and Texas Best Equipment LLC are affiliates of ESCO Marine. ESCO
Marine is the operating parent company.
The Debtors have tapped Roderick Glen Ayers, Jr., Esq., at Langley
Banack Inc., in San Antonio, as counsel.
On May 29, the Debtors appointed CC Distributors Inc., K2 Castings
Inc., and Time Insurance Agency to serve on the official committee
of unsecured creditors.
In April 2015, the U.S. trustee, the Justice Department's
bankruptcy watchdog, held a meeting of creditors.
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.
ESCO MARINE: Directed to Make $8K Monthly Payments to De Lange
--------------------------------------------------------------
Judge Richard Schmidt of the U.S. Bankruptcy Court for the Southern
District of Texas, Corpus Christi Division, granted in part De Lage
Landen Financial Services, Inc.'s motion for relief from stay
imposed in the Chapter 11 cases of ESCO Marine, Inc., et al.
Judge Schmidt ordered that because the Debtors desire to retain the
Collateral, they must make monthly payments to De Lage in the
amount of $8,624 per month from March 7, 2015 forward.
If the Debtors fail to timely pay any of the Monthly Payments, De
Lange may file a notice of default and if the default is not cured
by the Debtors, the automatic stay will be lifted immediately and
without need for further order of the Court so that De Lage may
exercise any and all of its remedies to regain possession of the
Collateral and otherwise dispose of the same as allowable under
applicable nonbankruptcy law.
Judge Schmidt also prohibited the Debtors from using the Collateral
absent agreement from De Lange or further order of the Court. In
the event the Collateral is used in the future, the amount of the
Monthly Payment will increase to an amount agreed upon by De Lange,
the Debtors, and Callidus Capital Corporation, or as determined by
future order of the Court.
Cameron County sought leave from the Court to intervene in the
hearing on De Lage's motion, saying that all or part of its claim
against the Debtor is secured by a first and superior lien on the
property which is the subject of the De Lage's motion.
Cameron County is represented by:
Diane w. Sanders State Bar No. 16415500
LINEBARGER GOGGAN BLAIR & SAMPSON, LLP
P.O. Box 17428
Austin, Texas 78760
Telephone (512) 447-6675
Facsimile (512) 443-5114
Email: austin.bankruptcy@publicans.com
About ESCO Marine
ESCO Marine, Inc., and four affiliates sought Chapter 11
Bankruptcy protection in Corpus Christi, Texas (Bankr. S.D. Tex.)
on March 7, 2015.
ESCO Marine disclosed $28.8 million in assets and $35.5 million in
debt as of Jan. 31, 2015.
The cases are assigned to Judge Richard S. Schmidt. The Debtors
filed an emergency motion seeking joint administration of their
Chapter 11 cases, requesting to designate as the "main case" the
proceedings of ESCO Marine, Inc., Case No. 15-20107.
ESCO Metals, LLC, ESCO Shredding, LLC, Texas Best Recycling, LLC,
and Texas Best Equipment LLC are affiliates of ESCO Marine. ESCO
Marine is the operating parent company.
The Debtors have tapped Roderick Glen Ayers, Jr., Esq., at Langley
Banack Inc., in San Antonio, as counsel.
ESCO MARINE: Judge Denies Bid to Reconsider Duff & Phelps' Hiring
-----------------------------------------------------------------
A federal judge overseeing ESCO Marine Inc.'s Chapter 11 case
denied a request by the unsecured creditors' committee to
reconsider his earlier decision that approved the hiring of Duff &
Phelps Canada Restructuring Inc.
U.S. Bankruptcy Judge Richard Schmidt on June 8 allowed the company
to hire Duff & Phelps as its financial adviser in connection with
its bankruptcy filing.
On June 17, the unsecured creditors' committee filed a motion in
which it asked the bankruptcy judge to reconsider his decision,
arguing the firm is not a "disinterested person."
According to the committee, the firm has an agreement with Callidus
Capital Corp. to act as the company's receiver in connection with a
lawsuit it filed against ESCO Marine.
Duff & Phelps did not disclose the agreement when ESCO Marine
sought court approval to hire the firm, the committee said.
The committee also questioned the services to be provided by the
firm, saying they "appear to duplicate" the services to be provided
by ESCO Marine's investment banker.
In a court filing, ESCO Marine defended its move to hire the firm,
saying the latter has not yet been appointed as a receiver.
"Duff & Phelps did not incur or otherwise obtain an interest
adverse to the debtor or its estates as a result of being proposed
as a receiver," the company said in the filing.
About ESCO Marine
ESCO Marine, Inc., and four affiliates sought Chapter 11 Bankruptcy
protection in Corpus Christi, Texas (Bankr. S.D. Tex.) on March 7,
2015.
ESCO Marine disclosed $28.8 million in assets and $35.5 million in
debt as of Jan. 31, 2015.
The cases are assigned to Judge Richard S. Schmidt. The Debtors
filed an emergency motion seeking joint administration of their
Chapter 11 cases, requesting to designate as the "main case" the
proceedings of ESCO Marine, Inc., Case No. 15-20107.
ESCO Metals, LLC, ESCO Shredding, LLC, Texas Best Recycling, LLC,
and Texas Best Equipment LLC are affiliates of ESCO Marine. ESCO
Marine is the operating parent company.
The Debtors have tapped Roderick Glen Ayers, Jr., Esq., at Langley
Banack Inc., in San Antonio, as counsel.
On May 29, the Debtors appointed CC Distributors Inc., K2 Castings
Inc., and Time Insurance Agency to serve on the official committee
of unsecured creditors.
In April 2015, the U.S. trustee, the Justice Department's
bankruptcy watchdog, held a meeting of creditors.
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.
ESCO MARINE: Komatsu Fin'l Seeks to Foreclose on Equipment
----------------------------------------------------------
Komatsu Financial Limited Partnership asks the U.S. Bankruptcy
Court for the Southern District of Texas, Corpus Christi Division,
to lift the automatic stay imposed in the Chapter 11 cases of ESCO
Marine, Inc., et al., to foreclose its security interests in
certain equipment.
The Debtor was a guarantor for the purchase equipment from Komatsu.
The value is believed to be $680,000 if it is in ordinary
condition. The Komatsu Equipment remains in the possession of
Debtor or Debtor's agent at this time at-an unknown location.
Komatsu asserts that the Debtors have no equity in the Equipment
and the equipment is not necessary for an effective reorganization
and has no reasonable prospect for payment therefor, even if it
could retain said assets.
Komatsu, accordingly, asks that the stay be modified to direct or
permit the Equipment to be delivered to Komatsu or to permit it to
foreclose its security interests herein, and alternatively grant it
adequate protection in an order continuing the stay pending certain
payments of principal, time price differential, and insurance.
Callidus Capital Corporation asks the Court to deny Komatsu's
motion and asserted that the Equipment allegedly subject to
Komatsu's lien is fully insured and no default has occurred due to
lack of insurance. Callidus further asserted that the Equipment
subject to Komatsu's lien is not currently being used so
depreciation is minimal. Assuming Komatsu is actually secured in
the Equipment, the Debtors are expected to provide Komatsu with
adequate protection commensurate with the depreciation of value of
the Equipment, adds Callidus.
Cameron County, a creditor, sought leave to intervene in Komatsu's
motion, saying the it is an interested party in relation to the
collection of ad valorem taxes owed to it by the Debtor on the
property.
Komatsu objected to Cameron County's motion, saying the county does
not have a tax lien upon the Komatsu equipment because the alleged
taxes are believed to be owed by the Debtor, who also has never
owned the said equipment. Thus, Komatsu asserts, its interest is
free of any tax lien. Komatsu, however, withdrew its objection,
saying the parties have reached an understanding.
* * *
The Court directed the Debtors to pay to Komatsu as an allowed
secured creditor, according to the contracts between the parties
the sum of $10,792 per month commencing on July 1, 2015. The Court
also ordered that the automatic stay is continued pending
confirmation of a Plan under Chapter 11 or Discharge, or the
further order of the Court. The Debtor is directed to continue to
maintain and pay for an insurance policy insuring the collateral of
Komatsu, which is cross collateralized, upon which its liens are
retained, against loss or damage in the amount of the ordinary
market value of said collateral, showing Komatsu as the loss payee
whereby property damage, fire, and theft coverage having a
deductible of $1,000 per unit is carried upon each of the said
units; and promptly deliver proof of such coverage to Komatsu.
Komatsu Financial Limited Partnership is represented by:
Ben L. Aderholt, Esq.
Clay E. Babers, Esq.
COATS ROSE
9 Greenway Plaza, Suite 1100
Houston, TX 77046
Tel: (713) 651-0111
Fax: (713) 651-0220
Email: baderholt@coatsrose.com
cbabers@coatsrose.com
ESCO MARINE is represented by:
R. Glen Ayers, Jr. Texas Bar No. 01467500
Natalie F. Wilson Texas Bar No. 24076779
LANGLEY BANACK
745 E. Mulberry, Suite 900
San Antonio, Texas 78212
Telephone (210) 736-6600
Facsimile (210) 735-6889
Email: gayers@langleybanack.com
nwilson@langleybanack.com
Callidus Capital Corporation is represented by:
Shelby A. Jordan, Esq.
Nathaniel Peter Holzer, Esq.
JORDAN, HYDEN, WOMBLE, CULBRETH & HOLZER, P.C.
500 North Shoreline Blvd., Suite 900
Corpus Christi, TX 78401-0341
Telephone: (361) 884-5678
Facsimile: (361) 888-5555
Email: sjordan@jhwclaw.com
pholzer@jhwclaw.com
-- and --
Michael C. Hammer, Esq.
DICKINSON WRIGHT PLLC
350 S. Main Street, Suite 300
Ann Arbor, MI 48104
Tel: (734) 623-1696
Fax: (734) 623-1625
Email: MHammer@dickinsonwright.com
-- and --
Kristi A. Katsma
DICKINSON WRIGHT PLLC
500 Woodward, Suite 4000
Detroit, MI 48226
Tel: (313) 223-3180
Fax: (313) 223-3598
Email: KKatsma@dickinsonwright.com
Cameron County is represented by:
Diane W. Sanders, Esq.
LINEBARGER GOGGAN BLAIR & SAMPSON, LLP
P.O. Box 17428
Austin, Texas 78760
Tel: 512) 447-6675
Fax: (512) 443-5114
About ESCO Marine
ESCO Marine, Inc., and four affiliates sought Chapter 11
Bankruptcy protection in Corpus Christi, Texas (Bankr. S.D. Tex.)
on March 7, 2015.
ESCO Marine disclosed $28.8 million in assets and $35.5 million in
debt as of Jan. 31, 2015.
The cases are assigned to Judge Richard S. Schmidt. The Debtors
filed an emergency motion seeking joint administration of their
Chapter 11 cases, requesting to designate as the "main case" the
proceedings of ESCO Marine, Inc., Case No. 15-20107.
ESCO Metals, LLC, ESCO Shredding, LLC, Texas Best Recycling, LLC,
and Texas Best Equipment LLC are affiliates of ESCO Marine. ESCO
Marine is the operating parent company.
The Debtors have tapped Roderick Glen Ayers, Jr., Esq., at Langley
Banack Inc., in San Antonio, as counsel.
ESTATE FINANCIAL: M. Winn, FGI Held in Contempt for Stay Violations
-------------------------------------------------------------------
Thomas P. Jeremiassen, the duly appointed Chapter 11 trustee for
Estate Financial, Inc., asks the U.S. Bankruptcy Court for the
Central District of California, Northern Division, to hold
Madeleine Winn and Foley-Gannon, Inc., in contempt for violations
of the automatic stay.
The Trustee relates that Ms. Winn's statements during a hearing
could jeopardize the pending sale of the Property and tells the
Court that Ms. Winn has intention to extract money from the estate
or the purchaser in connection with her discredited claims.
* * *
The Court, after due deliberation, ordered that Ms. Winn and FGI
are in civil contempt for committing the acts in willful violation
of the automatic stay.
The Court ordered that Ms. Winn and FGI will be fined $500 per day,
payable to the Estate, for which Winn and FGI will be jointly and
severally liable.
A hearing will be convened on September 9, 2015, to consider
sanctioning Ms. Winn and FGI in connection with the Stay Violations
and requiring them to pay the Estate, the amount of fees, costs
and/or other damages incurred by the EFI Trustee.
The Trustee is represented by:
Robert B. Orgel, Esq.
Samuel R. Maizel, Esq.
Jeffrey L. Kandel, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
10100 Santa Monica Blvd., 13th Floor
Los Angeles, CA 90067-4100
Tel: (310) 300-2027
Fax: (310) 201-0760
Email: jkandel@pszjlaw.com
About Estate Financial
Estate Financial, Inc., was a license real estate brokerage firm
since the later 1980's. EFI solicited funding for, and arranged
and made, loans secured by various real property. EFI also was the
sole manager of Estate Financial Mortgage Fund LLC, which was
organized for the purpose of investing in and funding loans
originated by EFI which were secured by first deeds of trust
encumbering commercial and real estate located primarily in
California and has been funding such mortgage loans since 2002.
Five creditors of EFI filed an involuntary Chapter 11 petition
against the real estate broker (Bankr. C.D. Cal. Case No.
08-11457)
on June 25, 2008. EFI consented to the bankruptcy petition on
July
16, 2008.
Robert B. Orgel, Esq., at Pachulski Stang Ziehl & Jones LLP, and
William C. Beall, Esq., at Beall and Burkhardt, represented the
Debtor as counsel. A Chapter 11 trustee, Thomas P. Jeremiassen,
was appointed by the Court on July 23, 2008. Robyn B. Sokol,
Esq., and Steven T. Gubner, Esq., at Ezra Brutzkus & Gubner,
represent the official committee of unsecured creditors as
counsel. In its schedules, Estate Financial disclosed total
assets of $27.4 million, and total debt of $7.32 million.
EURAMAX INTERNATIONAL: S&P Puts 'CCC' CCR on CreditWatch Dev.
-------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'CCC'
corporate credit rating on Norcross, Ga.-based Euramax
International Inc. on CreditWatch with developing implications,
pending the launch of the company's proposed $385 million five-year
senior secured notes.
At the same time, S&P assigned its preliminary 'B-' issue-level
rating to the proposed senior secured notes. The recovery rating
on the existing and proposed senior secured debt is '4', indicating
S&P's expectation for average (30% to 50%; at the low end of the
range) recovery in the event of a payment default.
"Assuming the proposed transaction is completed according to terms
and conditions, we will resolve our CreditWatch listing and raise
our corporate credit rating on Euramax to 'B-' from 'CCC'," said
Standard & Poor's credit analyst Thomas O'Toole. "The outlook
would be stable, reflecting our view that Euramax's liquidity would
remain "adequate" and that operations would continue to modestly
improve over the next 12 to 24 months."
However, if Euramax does not refinance its existing $375 million
notes due 2016, S&P will reassess its ratings on the company, with
a high likelihood that ratings could be lowered to 'CCC-' from
'CCC' if the company's existing debt maturity structure is not
extended.
FAMILY CHRISTIAN: Creditors Withdraw Bid to Appoint Ch. 11 Trustee
------------------------------------------------------------------
The contractual joint venture of Gordon Brothers Retail Partners,
LLC and Hilco Merchant Resources, LLC, as a creditor and
party-in-interest, had withdrawn their motion for appointment of a
Chapter 11 trustee in the Chapter 11 cases of Family Christian,
LLC, et al.
The Debtors objected to the bid for a Chapter 11 trustee, stating
that "cause" does not exist pursuant to Section 1104(a)(1) of the
Bankruptcy Code nor is the appointment of a Chapter 11 trustee "in
the best interests of creditors, any equity security holders, and
other interests of the estate" as required by Section 1104(a)(2).
GBH, in its trustee motion, stated that the Debtors had pointed out
repeatedly at the sale hearing that -- we have here the proverbial
melting ice cube. According to GBH, immediate action is necessary
to preserve value for the Debtors' estates and their creditors.
GBH also related the Debtors and their management are under
irreconcilable conflicts of interest that prevent the Debtors from
carrying out their fiduciary duties as a debtors-in-possession.
The manifestations of that conflict are apparent in the Debtors'
failure to conduct a fair, unbiased and open auction process, their
effort to provide improper releases to their own insiders, and
their attempt to confirm a sub rosa plan disguised as a Section 363
sale.
About Family Christian
Family Christian Holding, LLC, is the sole owner and member of
Family Christian, LLC, which operates and runs Family Christian
stores, one of the largest retail sellers of Christian books,
music, DVDs, church supplies, and other faith based merchandise.
Family Christian, LLC, Family Christian Holding, LLC, and
FCS Giftco, LLC, filed Chapter 11 bankruptcy petitions (Bankr.
W.D. Mich. Lead Case No. 15-00643) on Feb. 11, 2015. The petition
was signed by Chuck Bengochea as president and CEO. The Debtors
estimated assets and liabilities of $50 million to $100 million.
The Debtors are being represented by Todd Almassian, Esq., at
Keller & Almassian PLC, and Erich Durlacher, Esq., Brad Baldwin,
Esq., Bryan Glover, Esq., at Burr & Forman LLP as counsel.
The U.S. Trustee for Region 9 appointed seven creditors of Family
Christian LLC to serve on the official committee of unsecured
creditors.
GEORGETOWN MOBILE: Budget Now Covers Biz Operations for 12 Months
-----------------------------------------------------------------
Georgetown Mobile Estates, LLC, filed with the U.S. Bankruptcy
Court for the Eastern District of Kentucky a proposed amended
budget of income and expenses for the time period of June 1, 2015,
through 12 months thereafter for the Debtor's business operations.
The Debtor filed a proposed budget for the time period of May 11,
2015, through Dec. 31, 2015, for the Debtor's business operations.
A copy of the amended budget is available for free at:
http://bankrupt.com/misc/GeorgetownMobile_58_amendedbudget.pdf
About Georgetown Mobile Estates
Georgetown Mobile Estates, LLC, is a Kentucky corporation with
headquarters in Georgetown, Scott County, Kentucky. Originally
incorporated on Jan. 23, 2006, the Company operates a mobile home
park in three areas on the county line of Scott and Fayette,
Kentucky. The park can take up to 504 customers and, historically,
had an occupancy rate of 92%.
Georgetown Mobile Estates filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Ky. Case No. 15-50945) in Lexington, Kentucky, on May
11, 2015, to take back control of the mobile home park from a
receiver. Daniel E. Sexton, the present owner, signed the
petition.
The bankruptcy case is assigned to Judge Tracey N. Wise. The
Debtor disclosed $16,014,000 in assets and $19,457,609 in
liabilities as of the Chapter 11 filing.
The Debtor tapped Bunch & Brock of Lexington, Kentucky, as counsel;
Randy Reynolds of Magnum Capital Consultants, LLC, as financial
advisor; Bradford Burgess of The Thayer Group as financial advisor;
and Glen Dellavalle of Dellavalle Management Group as manager of
business operations.
The U.S. trustee overseeing the Chapter 11 case of Georgetown
Mobile Estates LLC appointed three creditors of the company to
serve on the official committee of unsecured creditors.
GEORGETOWN MOBILE: Disclosure Statement Scheduled for Aug. 26
-------------------------------------------------------------
Georgetown Mobile Estates, LLC, on Aug. 26, 2015, at 9:30 a.m., is
slated to seek approval of the Disclosure Statement in support of
its Reorganization Plan dated July 1, 2015.
The Court set Aug. 19, 2015, as the last day for filing and serving
written objections to the Disclosure Statement.
Under the Plan, the Debtor proposes to refinance the U.S. Bank debt
of approximately $13,500,000 with a cash down stroke of $1,000,000
of accrued interest plus $250,000 in attorney fees incurred in the
foreclosure action within 30 days from the Effective Date with
funds from a new Equity Investor with a refinance of the balance,
less defeasance fee, within two years of the Confirmation Date with
monthly payments of approximately $60,000 beginning on Jan. 1, 2016
until such refinance. Until such time as the U.S. Bank note is
satisfied, the Debtor will pay adequate protection payments to U.S.
bank at an annualized 4.76%. If the Debtor defaults on making any
payments or fails to refinance within the two-year period, then the
Debtor irrevocably consents to a voluntary sale of the real estate
of the Debtor according to the terms imposed by U.S. Bank.
A judgment lien in favor of Greg and Heather Scheller comprises
Class 2 whose claim of $155,934.42 plus accrued interest of $5,682
from December 30, 2014 through the Petition Date, for a total of
$161,616.42, to be repaid with regular monthly payments of
$1,714.19 as amortized over 10 years at 5%, or such other terms as
the parties herein agree.
The Equity Investor's cash injection will also include sufficient
funds to finish the capital improvement projects to complete the
installation of water meters to the remaining 130 lots and to
connect the properties to the municipal sewer system and city water
meters. These capital improvements should generate approximately
$17,000 per month in savings; it is estimated that these
improvements will be in place approximately 13 months after the
Effective Date.
Beginning in the month following the Effective Date, proposed by
January 1, 2016, the Debtor proposes to make monthly payments equal
to all of its Disposable Income. This Disposable Income will first
be used to satisfy Unclassified Claims with the remaining
Disposable Income being utilized to pay Tax Claims, if any, and the
Unsecured Claims through the end of the Term which is defined to
last for the lesser of 5 years (60 payments of Disposable Income)
or until such time as all Allowed Unsecured Claims are paid in
full.
A copy of the Disclosure Statement is available for free at:
http://is.gd/dFUwvn
About Georgetown Mobile Estates
Georgetown Mobile Estates, LLC, is a Kentucky corporation with
headquarters in Georgetown, Scott County, Kentucky. Originally
incorporated on Jan. 23, 2006, the Company operates a mobile home
park in three areas on the county line of Scott and Fayette,
Kentucky. The park can take up to 504 customers and, historically,
had an occupancy rate of 92%.
Georgetown Mobile Estates filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Ky. Case No. 15-50945) in Lexington, Kentucky, on May
11, 2015, to take back control of the mobile home park from a
receiver. Daniel E. Sexton, the present owner, signed the
petition.
The bankruptcy case is assigned to Judge Tracey N. Wise. The
Debtor estimated $10 million to $50 million in assets and debt.
The Debtor tapped Bunch & Brock of Lexington, Kentucky, as counsel;
Randy Reynolds of Magnum Capital Consultants, LLC, as financial
advisor; Bradford Burgess of The Thayer Group as financial advisor;
and Glen Dellavalle of Dellavalle Management Group as manager of
business operations.
The U.S. trustee overseeing the Chapter 11 case of Georgetown
Mobile Estates LLC appointed three creditors of the company to
serve on the official committee of unsecured creditors.
GOLDEN COUNTY: Wants Nov. 12 as Governmental Unit Claims Bar Date
-----------------------------------------------------------------
Golden County Foods, Inc., et al., to facilitate the administration
of their estates and the distribution of the proceeds from the sale
of their assets, request the U.S. Bankruptcy Court for the District
of Delaware for entry of order establishing deadlines for filing
proofs of claim in their Chapter 11 cases.
The Debtors request that the Court set (i) the general bar date as
the first business day that is at least 45 days after the date of
service of the notice of bar dates. The Debtors want Nov. 12,
2015, as the deadline for each governmental unit holding a claim
against any of the Debtors, to file a proof of claim in the Chapter
11 cases.
Heinz Has Right of Recoupment
On July 2, 2015, the Court granted H.J. Heinz Company LP's motion
for order providing that Heinz may recoup certain obligations or,
alternatively, granting relief from the automatic stay imposed in
the Debtors' bankruptcy case, so that Heinz may exercise its right
of setoff.
Heinz sought to recoup, or, in the alternative, setoff, the net
balance of certain accounts receivable allegedly due from the
Debtors to Heinz, against the balance of certain accounts payable
due from Heinz to the Debtors pursuant to a co-pack agreement dated
April 24, 2014, with a first amendment dated Jan. 1, 2015.
On June 30, 2015, the Official Committee of Unsecured Creditors
filed a limited objection to Heinz's motion, saying that pursuant
to the stalking horse asset purchase agreement submitted by
Monogram Appetizers, LLC, the Debtors will be assuming and
assigning the co-pack agreement to Monogram and Monogram has agreed
to pay all cure costs associated with the assumption and
assignment of the co-pack agreement. The Committee, through its
counsel, claimed in the June 30 court filing that if Heinz is
permitted to offset any amounts the Debtors may owe Heinz under the
co-pack agreement, unsecured creditors will be harmed because the
amounts the estate will receive from Heinz will be diminished, and
Monogram will receive a windfall because the cure costs Monogram
would otherwise be required to pay will be unfairly reduced.
Heinz, the Committee stated, should look to Monogram under the
terms of the asset purchase agreement for payment of
sums due to Heinz under the co-pack agreement.
The Court found that Heinz has a right of recoupment as to amounts
owed between Heinz and debtor Golden County Foods, Inc., and the
automatic stay doesn't preclude Heinz's exercise of its right of
recoupment. Alternatively, Heinz has a right of setoff as to
amounts owed between Heinz and Golden County, and is entitled to
relief from the automatic stay.
The Committee's counsel can be reached at:
Gellert Scali Busenkell & Brown, LLC
Michael Busenkell, Esq.
913 N. Market Street, 10th Floor
Wilmington, Delaware 19801
Tel: (302) 425-5812
Fax: (302) 425-5814
E-mail: mbusenkell@gsbblaw.com
and
Lowenstein Sandler LLP
Kenneth A. Rosen, Esq.
Sharon L. Levine, Esq.
Jeffrey D. Prol, Esq.
65 Livingston Avenue
Roseland, New Jersey 07068
Tel: 973-597-2500
Fax: 973-597-2400
E-mail: slevine@lowenstein.com
About Golden County Foods
Golden County and its affiliates GCF Franchisee, Inc., and
GCF Holdings II, Inc., filed separate Chapter 11 bankruptcy
petitions (Bankr. D. Del. Case Nos. 15-11062 to 15-11064) on May
15, 2015.
Mark D. Collins, Esq., and Tyler D. Semmelman, Esq., at
Richards, Layton & Finger, P.A., represent the Debtor in their
restructuring effort. The Debtors also hired Neligan Foley LLP
as local counsel.
The Debtors estimated assets and debts at $10 million to
$50 million.
The U.S. Trustee for Region 3 appointed seven creditors to serve
on the Official Committee of Unsecured Creditors.
The Committee selected Lowenstein Sandler LLP and Gellert Scali
Busenkell & Brown, LLC, to serve as its co-counsel, and GlassRatner
Advisory & Capital Group to serve as its financial advisor.
GREEN MOUNTAIN: Exclusive Right to File Plan Extended to Sept. 18
-----------------------------------------------------------------
Green Mountain Management LLC's exclusive right to propose a
Chapter 11 plan has been extended to Sept. 18, 2015, according to
filings with the U.S. Bankruptcy Court for the Northern District of
Georgia.
Meanwhile, the company has until Nov. 17, 2015, to solicit votes on
the plan from its creditors.
The extension would prevent others from filing rival plans in court
and maintain the company's control over its bankruptcy case.
About Green Mountain
Green Mountain Management, LLC, filed a Chapter 11 bankruptcy
petition (Bankr. N.D. Ga. Case No. 14-64287) on July 25, 2014. The
petition was signed by Daniel B. Cowart, sole member of Georgia
Flattop Partners, LLC, and chairman of Green Mountain Management,
LLC. The Debtor estimated $10 million to $50 million in assets and
debt. Georgia Flattop Partners, LLC is the managing member and
holders of 93% of the stock.
The case is assigned to Judge Barbara Ellis-Monro.
No official committee of unsecured creditors has been appointed,
and UMB Bank, n.a.'s request for the appointment of a trustee was
resolved consensually pursuant to this Court's order entered on
Nov. 20, 2014.
On May 29, 2015, the Debtor filed an application to employ Nelson
Mullins Riley & Scarborough LLP as its bankruptcy counsel.
The filing came after the Debtor notified Alston & Bird LLP that
Green Mountain Aggregates LLC, Dan Cowart, Dan Cowart Inc. and the
Debtor intended to pursue claims against the law firm.
Alston & Bird was hired by the Debtor in 2014 to be its bankruptcy
counsel. On June 1, 2015, the firm withdrew as its counsel. On
June 2, 2015, Judge Ellis-Monro authorized the Debtor to hire
Atlanta-based Nelson Mullins to be its new bankruptcy counsel.
GROUP 1 AUTOMOTIVE: Moody's Hikes Corporate Family Rating to 'Ba1'
------------------------------------------------------------------
Moody's Investors Service upgraded all ratings of Group 1
Automotive, Inc., including the Corporate Family rating, which was
upgraded to Ba1 from Ba2. A stable outlook was assigned. This
concludes the review for upgrade that was initiated on June 16,
2015.
Issuer: Group 1 Automotive, Inc
Ratings Upgraded:
Corporate Family Rating to Ba1 from Ba2
Probability of Default Rating to Ba1-PD from Ba2-PD
$550 million senior unsecured notes to Ba2, LGD 6
From Rating Under Review B1, LGD 6
Outlook, Changed To Stable From Rating Under Review
RATINGS RATIONALE
"The upgrade largely reflects the reduction in adjusted debt due to
changes in Moody's approach for capitalizing operating leases,"
stated Moody's Vice President Charlie O'Shea. The updated approach
for standard adjustments for operating leases is explained in the
cross-sector rating methodology Financial Statement Adjustments in
the Analysis of Non-Financial Corporations, published on June 15,
2015. "As a result of this change, Group 1's leverage has improved
to around 4 times from around 4.7 times under the prior
methodology," O'Shea added. "In addition, Group1's operating
performance continues to benefit from positive macroeconomic
conditions for auto sales in the US and UK, and Brazil is beginning
to generate positive traction."
The Ba1 rating considers Group 1's market position and brand mix,
with over 80% import and premium luxury brands, diversification via
its UK operation, and positive trends in Brazil. Ratings also
consider the company's conservative financial policy. The stable
outlook reflects our belief that Group 1 will continue to manage
its cost structure such that its operating performance remains
resilient even in the event of a downturn and credit metrics remain
largely in balance. Given the upgrade, upward rating momentum is
presently tempered, though over time an upgrade could occur if the
company's debt/EBITDA was maintained at around 3.5 times and
EBITA/interest was maintained at greater than 5 times. A downgrade
could occur if the company's debt/EBITDA was sustained above 4.25
times or if EBITA/interest fell below 4 times.
The principal methodology used in these ratings was Global Retail
Industry published in June 2011. Other methodologies used include
Loss Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.
Headquartered in Houston, Texas, Group 1 Automotive, Inc. is a
leading retailer of new and used automobiles, with dealerships in
the US, UK, and Brazil. Annual revenues are around $10 billion.
HAWAIIAN HOLDINGS: Moody's Raises CFR to B2, Outlook Stable
-----------------------------------------------------------
Moody's Investors Service upgraded the debt ratings of Hawaiian
Holdings, Inc. including the Corporate Family to B2 from B3,
Probability of Default to B2-PD from B3-PD and the Class A and
Class B tranches of the company's Series 2013-1 Enhanced Equipment
Trust Certificate (EETC) to Baa2 from Baa3 and to Ba3 from B1.
Moody's also raised the Speculative Grade Liquidity Rating to SGL-2
from SGL-3. The outlook is stable. This action concludes the
review for upgrade initiated on June 16, 2015, following the
implementation of Moody's change to its approach for standard
adjustments for operating leases.
RATINGS RATIONALE
The B2 rating balances credit metrics that are strong for the
single B rating and free cash flow benefits of curtailed capital
expenditures through 2016 against the company's small size, limited
network and execution risk in the company's fleet plan. Lower fuel
expense, the sharp decline in capital expenditures because of
limited deliveries of new aircraft until 2017 and lower adjusted
debt given the reduction in Moody's lease multiple for passenger
airlines, to five times, strengthen current and forecasted credit
metrics. Moody's anticipates that free cash flow will decline from
2017 and thereafter, as capital expenditures increase to fund the
scheduled delivery of 22 new aircraft through 2022; 16 Airbus
A321neos and six Airbus A330-800neos. The order book compares to
the current long-haul fleet of 30 aircraft forecasted at Dec. 31,
2015, reflecting significant growth in capacity even with expected
retirements of some of the eight Boeing B767-300s currently in
service.
The B2 rating also considers the competitive nature of the
company's US and international networks. Although Hawaiian is the
leader in seat share in the US West Coast to Hawaii market, the
larger US airlines will remain significant competitors.
Additionally, Moody's believes that Southwest Airlines could also
enter the Hawaii market by 2018, when Hawaiian will be deploying
the A321s on these routes. Hawaiian will begin receiving the
A330-800neos from 2019 and will need to identify routes on which
they may be profitably deployed. Moody's believes that adjusted
debt will increase as the order book delivers since it does not
foresee cash flow from operations growing meaningfully above
Moody's forecast of about $350 million in 2015.
The upgrade of the Speculative Grade Liquidity rating to SGL-2
reflects the company's cash balance in excess of $500 million and
the $100 million increase in the revolver with the facility the
company arranged in November 2014.
The stable outlook reflects Moody's expectation that credit metrics
will remain near current levels through 2016. Moody's expects
passenger demand to remain about steady, limited upwards pressure
on the cost of jet fuel and modest pressure on unit revenues as
capacity in the Hawaii market, from the US West Coast and from the
Pacific, expands.
There will be little upwards rating pressure until the company
demonstrates the ability to maintain strong credit metrics while
inducting the aircraft from the order book into the fleet. A
positive rating action could follow if Hawaiian sustains EBITDA
margin above 19%, EBIT to Interest above 2.0 times and Retained
Cash Flow to Net Debt above 18% and should Debt to EBITDA approach
4.0 times. A downgrade of the ratings could follow if operating
margins and cash flows deteriorate such that Debt to EBITDA is
sustained above 5.5 times, EBIT to Interest approaches 1.5 times or
Retained Cash Flow to Net Debt approaches 10%.
Hawaiian Holdings, Inc., headquartered in Honolulu, HI, is the
holding company parent of Hawaiian Airlines, Inc. Hawaiian
Airlines is Hawaii's biggest and longest-serving airline, as well
as the largest provider of passenger air service to Hawaii from the
continental US. Hawaiian operates over 200 flights per day,
spanning services connecting mainly the U.S. west coast, Asia,
Australia and the South Pacific to Hawaii and flights connecting
the six major islands of Hawaii. The company reported revenue of
$2.3 billion in 2014.
The methodologies used in these ratings were Global Passenger
Airlines published in May 2012, and Enhanced Equipment Trust And
Equipment Trust Certificates published in December 2010.
HELIA TEC: Court Confirms Second Amended Plan
---------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas has
confirmed the Second Amended Plan of Reorganization of Helia Tec
Resources, Inc., on June 18, 2015, with non-material amendments
that do not adversely affect any class of creditors.
According to the Second Amended Plan, the Debtor will sell
substantially all of its assets. The Debtor will seek authority to
transfer the Debtor's 1.2% IPI Percentage, $7MM PIA Deposit, and
all other assets to the Liquidating Debtor. Then, pursuant to the
terms of the IPI Agreement the 1.2% IPI Percentage the Plan Agent
will then seek to either sell, liquidate, or convert the 1.2% IPI
Percentage to cash, in such manner as is deemed appropriate by the
Plan Agent.
Under the Second Amended Plan, the Plan Agent will use the proceeds
generated from liquidation of the Debtor's assets to satisfy
Allowed Claims and Interests in accordance with the Bankruptcy
Code.
The Debtor estimates that any sales funds will be distributed as
follows:
Est. Recovery
-------------
Cash Value of the Converted Stock, plus
Assumed Liabilities $8,800,000
Pacific LNG Operations Project Investment
Agreement Deposit $7,000,000
Other assets Unknown
Estimated Proceeds Available for Distribution $15,800,000
Total Estimated Assets Available for Distribution $15,800,000
Less Secured Claims:
Attorney Contingency Fee (35%) $5,530,000
Secured Claims $1,981,174
Total Secured Claims $7,511,174
Less Chapter 11 Administrative and Priority Claims:
Allowed Administrative Expense Claim $400,000
A Plan Agent Contingency Fee (7.5%) $1,185,000
Current Trade Payables 0
Priority tax claims $196,189
Chapter 11 professional fees $500,000
Total Administrative and Priority Claims $2,281,189
Total Estimated Liquidation Proceeds Available to
Unsecured Claims: $6,007,637
Estimated Distribution to Unsecureds 100%
About Helia Tec Resources
Helia Tec Resources, Inc., filed a Chapter 11 petition (Bankr. S.
D. Tex. Case No. 13-36251) on Oct. 3, 2013 in Houston, Texas,
represented by Richard L. Fuqua, II, Esq., at Fuqua & Associates,
PC, in Houston, as counsel to the Debtor. The Debtor listed $16.15
million in assets and $2.24 million in liabilities. The petition
was signed by Cary E. Hughes, president.
Judy A. Robbins, U.S. Trustee for Region 7, was unable to appoint
an official committee of unsecured creditors in the Debtor's case.
HERCULES OFFSHORE: To File for Chapter 11 Bankruptcy Next Month
---------------------------------------------------------------
Sneha Banerjee and Narottam Medhora at Reuters reports that
Hercules Offshore Inc said on Thursday it expects to file for
Chapter 11 bankruptcy protection in August 2015 and emerge with a
restructured balance sheet in the fourth quarter.
Reuters recalls that the Company said in June 2015 that it had
entered into a restructuring agreement with a majority of its
debtors and would file for Chapter 11 by July 8.
The Company's CEO and President John T. Rynd said that offshore
services companies are muddling through one of the worst downturns
in the industry's history with too many rigs chasing too little
work, a trend that seems unlikely to reverse itself anytime soon,
Rhiannon Meyers at Fuelfix.com relates.
Fuelfix.com quoted Mr. Rynd as saying, "These are very challenging
times for our business. We are aggressively competing for work for
each of our rigs and liftboats and will continue to focus on the
things we can control: the safety of our people and our costs . . .
. It's been a difficult time for this Company and a difficult
decision to choose this path. But it is the right one . . . .
Once the restructuring is completed, the new capital structure
provides a solid foundation on which we can strengthen and deepen
our relationship with customers and vendors alike. And it will
position us to meet the challenges in the global offshore drilling
market that lay ahead."
About Hercules Offshore
Hercules Offshore Inc. (NASDAQ: HERO) --
http://www.herculesoffshore.com/-- provides shallow-water drilling
and marine services to the oil and natural gas
exploration and production industry in the United States, Gulf of
Mexico and internationally. The Company provides these services
to integrated energy companies, independent oil and natural gas
operators and national oil companies. The Company operates in six
business segments: Domestic Offshore, International Offshore,
Inland, Domestic Liftboats, International Liftboats and Delta
Towing.
Hercules Offshore reported a net loss of $216 million in 2014,
compared with a net loss of $68.1 million in 2013.
As of March 31, 2015, the Company had $1.93 billion in total
assets, $1.37 billion in total liabilities and $559 million in
stockholders' equity.
* * *
The TCR reported in March 2015 that Moody's Investors Service
downgraded Hercules Offshore, Inc.'s Corporate Family Rating to
Caa2 from B2. The Caa2 Corporate Family Rating (CFR) reflects the
company's contract roll-off and sparse contract coverage through
the June 2016, its aging fleet, and the projection for a
deterioration of its liquidity position.
As reported by the TCR on June 22, 2015, Standard & Poor's Ratings
Services lowered its corporate credit rating on Houston-based
offshore driller Hercules Offshore Inc. to 'CC' from 'CCC+'.
The downgrade follows the Company's announcement that it has
entered into a restructuring support agreement with a steering
group of the company's senior noteholders, collectively owning or
controlling in excess of 67% of the aggregate outstanding principal
amount of the company's 10.25% senior notes due 2019, 8.75% senior
notes due 2021, 7.5% senior notes due 2021, and 6.75% senior notes
due 2022.
HOLY HILL: 1111 Sunset Is Back-Up Bidder for Sunset Blvd. Property
------------------------------------------------------------------
The Julia W. Brand of the U.S. Bankruptcy Court for the
Central District of California approved on July 17, 2015, on a
final basis, the sale of Holy Hill Community Church's parcel of
real property located at 1111 Sunset Boulevard, in Los Angeles,
California, to Palisades Capital Partners, LLC, for $29.75 million,
or, if this winning bidder fails to close, to the back-up bidder,
1111 Sunset, LLC, for $28.80 million.
As reported by the Troubled Company Reporter on April 6, 2015, 1111
Sunset was the stalking horse bidder. The Court authorized the
estate to pay any and all amounts owing to the stalking horse
bidder on account of the break-up fee, which amount will be no more
than $300,000 inclusive of all expenses and costs, in accordance
with the terms of the agreement with the stalking horse bidder and
the bidding procedures order, without further action or order by
the Court.
The estate is authorized to pay any and all amounts owing on the
initial bidder's advances in the amount of $300,000 and the
stalking horse bidder's advance in the amount of up to $500,000,
together with interest earned thereon as provided in the
agreements. The estate is authorized to pay to the initial bidder
the expense reimbursement amount in an amount not to exceed
$400,000, subject to proof to the Chapter 11 Trustee by the initial
bidder.
The Chapter 11 Trustee and the escrow holder is authorized to pay
CBRE, Inc., a commission payment of $892,500 upon closing of the
sale of the Property to the winning bidder or $864,000 if the
Property is sold and the sale closes to the Back-Up Bidder.
A copy of the order is available for free at:
http://bankrupt.com/misc/HOLYHILL_268_saleord.pdf
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 $35.4 million in total
assets and $16.7 million 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.
JAGUAR HOLDINGS: Moody's Affirms B2 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service affirmed the B2 Corporate Family Rating
and B2-PD Probability of Default Rating of Jaguar Holding Company I
(a parent of Pharmaceutical Product Development, LLC. and Jaguar
Holding Company II (together, "PPD")) in conjunction with the
company's refinancing transaction. The outlook is stable.
Moody's also assigned a B1 rating to the proposed $2.9 billion
senior secured credit facility and a Caa1 rating to the proposed
$1.1 billion unsecured notes offering. The proceeds of the credit
facility and notes will be used to refinance all existing debt, to
pay a dividend of around $400 million to shareholders, including
affiliates of The Carlyle Group and Hellman & Friedman, and to fund
related fees and expenses.
At the close of the refinancing transaction, Moody's will withdraw
the ratings on existing debt at Jaguar Holding Company I and
Pharmaceutical Product Development, LLC. Moody's is also
reassigning the Corporate Family Rating and Probability of Default
Rating at Jaguar Holding Company II, which will be the only entity
with rated debt going forward. Concurrently, Moody's will withdraw
the Corporate Family Rating and Probability of Default Rating that
currently resides at Jaguar Holding Company I.
Ratings assigned:
Jaguar Holding Company II:
Corporate Family Rating of B2
Probability of Default Rating of B2-PD
Jaguar Holding Company II and Pharmaceutical Product Development,
LLC. (as co-borrowers):
$300 million senior secured revolving credit facility expiring
2020, B1 (LGD3)
$2.575 billion senior secured term loan due 2022, B1 (LGD3)
$1.125 billion senior unsecured notes due 2023, Caa1 (LGD5)
Ratings affirmed, to be withdrawn at the close of the transaction:
Jaguar Holding Company I:
Corporate Family Rating of B2
Probability of Default Rating of B2-PD
Ratings to be withdrawn at the close of the transaction:
Jaguar Holding Company I:
$1.125 billion unsecured notes due 2017, Caa1 (to LGD5)
Pharmaceutical Product Development, LLC.:
$175 million Senior Secured Revolver Due 2016, Ba2 (LGD2)
$1.6 billion Senior Secured Term Loan due 2018, Ba2 (LGD2)
$575 million Senior Unsecured Notes due 2019, B3 (LGD4)
The outlook is stable.
RATINGS RATIONALE
PPD's B2 CFR rating reflects the company's very high financial
leverage and aggressive financial policies, including a significant
amount of shareholder dividends paid since the company's leveraged
buyout. The proposed dividend will increase adjusted debt/EBITDA
to around 7.5x for the twelve months ended March 30, 2015, up from
6.7x. The ratings also reflect risks inherent in the CRO industry,
which is highly competitive, has high reliance on the
pharmaceutical industry, and is subject to cancellation risk.
The B2 rating is supported by PPD's significant scale, leading
breadth of services and strong reputation, which Moody's believes
gives the company competitive ad vantages over many peers in the
highly fragmented CRO industry. The ratings are supported by
Moody's view that PPD has good revenue and earnings growth
prospects due to increased outsourcing of R&D by the pharmaceutical
industry and a healthy biotechnology funding environment. As a
result, the B2 incorporates the expectation that leverage will
decline below 7.0x over the next year due to EBITDA growth. The B2
is also supported by Moody's expectation for positive free cash
flow and good liquidity.
While not anticipated, Moody's could upgrade the ratings if PPD
repays debt with free cash flow and grows EBITDA such that adjusted
debt to EBITDA is expected to be sustained below 5.5 times and free
cash flow to debt is expected to be sustained above 8%. Moody's
could downgrade the ratings if leverage is expected to remain above
6.5 times for a protracted period of time. Further, if free cash
flow to debt is expected to be negative for a sustained period, or
liquidity is expected to materially worsen, Moody's could downgrade
the ratings.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014. Other
methodologies used include Loss Given Default for Speculative-Grade
Non-Financial Companies in the U.S., Canada and EMEA published in
June 2009.
Pharmaceutical Product Development, Inc. is a leading global
contract research organization. The company provides preclinical
drug discovery, Phase I through Phase IV clinical development,
post-approval services as well as laboratory services to
pharmaceutical, biotechnology and academic customers, among others.
PPD is owned by The Carlyle Group and Hellman & Friedman. Net
revenues for the twelve months ended March 31, 2015 approximated
$1.9 billion.
LEHMAN BROTHERS: Owes $41.9-Mil. Damages, Spanish Broadcasting Says
-------------------------------------------------------------------
Patrick Fitzgerald, writing for Dow Jones' Daily Bankruptcy Review,
reported that a Miami-based Spanish language broadcaster says
Lehman Brothers Holdings Inc. owes it more than $40 million for
failing to fund a loan after the investment bank's collapse.
According to the report, Spanish Broadcasting System Inc., the
nation's largest publicly traded Hispanic-controlled media company,
said in court papers on July 23 that Lehman's failure to fund a $10
million draw request in October 2008 cost it $41.9 million.
About Lehman Brothers
Lehman Brothers Holdings Inc. 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.
LOMPOC RDA SUCESSOR: Moody's Hikes Rating on TABS From Ba1
----------------------------------------------------------
Moody's Investors Service has upgraded to Baa1 from Ba1 the
Successor Agency to the City of Lompoc Community Redevelopment
Agency's Tax Allocation Bonds.
Moody's said, "On June 24, 2015, in connection with the release of
our Tax Increment Debt methodology, we placed the ratings for
nearly all California tax allocation bonds (TABs) on review for
upgrade, including this successor agency's (SA) TABs. This rating
action completes our review for this SA."
SUMMARY RATING RATIONALE
The upgrade to Baa1 takes into account the successor agency's large
project area encompassing most of the City's downtown, a sizeable
tax base with resumed growth, adequate debt service coverage levels
and somewhat high taxpayer concentration. The rating also
incorporates the two sources of repayment securing the Series 2004
Revenue Bonds: payments pursuant to a loan agreement supported by
tax increment revenues from the project area on an outstanding
$5.88 million, and payments on the $2.14 million in outstanding
assessment bonds issued by the City and secured by a citywide
property tax assessment.
The rating factors in the successor agencies' successful adaptation
to post dissolution processes and administrative procedures and our
expectation that this trend will continue. The rating also
incorporates our generally positive assessment of the
implementation of redevelopment agency dissolution legislation by
most successor agencies over the last three years, leading to
timely payment of debt service on California TABs.
In 2012, state legislation dissolved all California redevelopment
agencies, replacing them with "successor agencies" to serve as
fiduciary agents. The dissolution effectively changed the flow of
funds and processes around the payment of debt service on TABs. Tax
increment revenue is placed in trust with the county auditor, who
makes semi-annual distributions of funds sufficient to pay debt
service on tax allocation bonds and other "enforceable
obligations."
As our administrative concerns related to the payment of debt
service have lessened, we are now placing greater weight on some of
the positive features of the dissolution legislation including the
closed lien status of the bonds and continued distribution of TAB
revenues associated with the successor agency's administrative
costs.
OUTLOOK
Outlooks are not typically assigned to issuers with this amount of
debt outstanding.
WHAT COULD MAKE THE RATING GO UP
-- Sizable increase in incremental AV of the project area to pre-
recessionary levels, leading to greater debt service coverage
-- Increased diversification among top ten taxpayers
WHAT COULD MAKE THE RATING GO DOWN
-- Future declines in AV
-- Erosion of debt service coverage by either of the pledged
repayment sources
-- Additional state administrative or legislative changes that
create uncertainty as to the timely payment of debt service
OBLIGOR PROFILE
The SA is a separate legal entity from the City of Lompoc. The SA
is responsible for winding down the operations of the former RDA,
making payments on state approved "Enforceable Obligations" and
liquidating any unencumbered assets to be distributed to other
local taxing entities.
LEGAL SECURITY
The legal security for the loan agreement consists of tax increment
revenue net of any senior pass-throughs.
While not legally pledged, the dissolution laws permit the TABs to
be paid from all available monies in the Redevelopment Property Tax
Trust Fund, after payment of senior pass through payments and
certain administrative charges. This includes any excess housing
set aside tax increment revenues.
The assessment bond securing 26.6% of the Series 2004 outstanding
debt service is secured by a citywide assessment approved by
voters. The City and assessment district are covered by the
County's teeter program under which the County absorbs any payment
delinquencies. While the assessment bond lacks a reserve account,
it is the City's practice to maintain the next six-month debt
service payment in the redemption account prior to payment.
Pursuant to the bond resolution, the city many not issue additional
debt secured by these assessment revenues.
MARINA DISTRICT: S&P Assigns 'BB' Rating on $650MM Loan Facility
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' issue-level
rating and '1' recovery rating to Atlantic City, N.J.-based Marina
District Development Co. LLC's (MDDC) subsidiary Marina District
Finance Co. Inc.'s $650 million incremental term loan facility due
2023, consisting of an initial draw component of $420 million and a
delayed draw component of $230 million. The '1' recovery rating
indicates S&P's expectation for very high (90% to 100%) recovery
for lenders in the event of a payment default. This facility ranks
pari passu in seniority with the existing $380 million senior
secured term loan due 2018.
The company will use proceeds from the initial draw to refinance
its existing $400 million senior secured notes due 2018 and to pay
early call premiums and fees. S&P plans to withdraw its ratings on
the existing senior secured notes once the debt is repaid. Although
the $230 million delayed draw commitment was undrawn at the close
of the transaction, S&P has assumed in its recovery analysis that
the company draws and uses the delayed draw proceeds to partially
repay outstanding amounts under its existing $380 million senior
secured term loan.
At the same time, S&P raised the issue-level rating on MDFC's $380
million senior secured term loan due 2018 to 'BB' from 'BB-' and
revised the recovery rating on this debt to '1' from '2'. S&P has
revised the recovery rating on this debt to reflect improved
recovery prospects due to a lower estimated amount of senior
secured debt outstanding at default than S&P assumed in its
previous analysis. The lower debt balances under the $380 million
senior secured debt facility are largely the result of voluntary
debt repayments. Through the first half of 2015, MDDC repaid over
$40 million of term loan debt. S&P's 'B+' corporate credit rating
on MDDC and its 'BB' issue-level rating on MDFC's priority revolver
are unchanged.
"We expect the refinancing transaction will improve interest
coverage to the low-3x area from our previous expectation in the
high-2x area in 2016. We anticipate MDDC will continue to use free
cash flow to repay debt and further improve credit measures through
2016. We anticipate lease-adjusted debt to EBITDA to improve to
the low-4x area and funds from operations to debt to improve to the
low- to mid-teens percentage by 2016. Our base-case forecast does
not currently incorporate the recent $63 million favorable property
tax ruling for property tax appeals for 2009 and 2010, or the $88
million tax settlement from property tax appeals for 2011 to 2013,
because there are significant uncertainties regarding the timing or
amount of any proceeds received because of the City of Atlantic
City's ongoing financial distress. If, and when, the company
receives any settlement proceeds from the city, we expect the
company to use them to repay balances under the existing senior
secured term loan facility," S&P said.
RECOVERY ANALYSIS
Key Analytical factors:
S&P's simulated default scenario contemplates a default in 2018,
reflecting continued operating weakness and increased competitive
pressures in the AC market, as well as from casinos in neighboring
states.
S&P assumes a reorganization following default and used an
emergence EBITDA multiple of 7x to value the company.
Simulated default assumptions:
-- Simulated year of default: 2018
-- EBITDA at emergence: $110 million
-- EBITDA multiple: 7x
Simplified waterfall:
-- Net enterprise value (after 5% admin. costs): $732 mil.
-- Secured debt (priority revolver): $62 mil.
-- Recovery expectation: 90% to 100%
-- Secured debt (senior secured term loans): $730 mil.
-- Recovery expectation: 90% to 100%
Note: all debt amounts include six months of prepetition interest.
RATINGS LIST
Marina District Development Co. LLC
Corporate Credit Rating B+/Stable/--
New Rating
Marina District Finance Co. Inc.
$650 mil. term loan due 2023
Senior Secured BB
Recovery Rating 1
Upgraded; Recovery Rating Revised
Marina District Finance Co. Inc.
To From
Senior Secured BB BB-
Recovery Rating 1 2
MDC PARTNERS: CEO Departure Will Not Impact Moody's Ratings
-----------------------------------------------------------
Moody's Investors Service says the recent departure of MDC Partners
Inc.'s CEO, Miles Nadal, will not impact the current B2 corporate
family rating or B3 rating on the senior unsecured notes. However,
the CEO and founder's departure from the firm as well as an ongoing
SEC investigation have the potential to impact the ability of the
firm to win new business and maintain existing clients as well as
its ability to attract and retain employees. Moody's will closely
follow any signs of client and employee loses to competing
agencies. Elevated levels of client or employee loses have the
potential to impact operating results and lead to a downgrade of
the ratings as could negative actions against the company by the
SEC.
MDC PARTNERS: S&P Raises CCR to 'B+', Outlook Stable
----------------------------------------------------
Standard & Poor's Ratings Services said that it raised its
corporate credit rating on New York City-based MDC Partners Inc. to
'B+' from 'B'. The rating outlook is stable.
At the same time, S&P raised its issue-level rating on the
company's senior unsecured debt to 'B+' from 'B'. The '4' recovery
rating remains unchanged, indicating S&P's expectation for average
recovery (30%-50%; upper half of the range) of principal in the
event of a payment default.
"The upgrade follows MDC's recent announcements addressing the
SEC's inquiries into its travel and entertainment (T&E) expense
reimbursement practices," said Standard & Poor's credit analyst
Naveen Sarma. Most notably, the company has announced that Miles
Nadal, its founder, chairman, and CEO has retired, and that he will
reimburse the company an additional $12.5 million ($1.9 million in
improper payments and the clawback of $10.6 million in retention
payments) above the previously disclosed $8.6 million payment that
he had already made.
"The stable outlook reflects uncertainty in MDC's overall strategic
direction, given the new CEO and the turnover in the board," said
Mr. Naveen. This is tempered by S&P's expectations that MDC's
adjusted leverage could decline to under 5x by 2016. The outlook
also incorporates S&P's expectation that there will be no further
material impact on the company or its credit quality from the SEC
investigations.
S&P could lower the rating if the company's operations weakens such
that its adjusted leverage increases above 6x. Alternately, S&P
could lower the rating if the company makes a sizable debt financed
acquisition that increases adjusted leverage above 6x.
S&P could raise the rating if it become convinced that the new CEO
is committed to lowering and maintaining adjusted leverage below 5x
on a sustained basis. An upgrade would also involve the SEC issues
clearing with no further material impact on the company or its
credit quality.
MF GLOBAL: Brokerage to Sell Litigation Rights to Parent
--------------------------------------------------------
Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review,
reported that MF Global will hand pending litigation against its
leaders -- including former Chief Executive Jon Corzine -- to its
parent company under a newly announced deal that will allow the
defunct brokerage to pay its unsecured creditors nearly in full.
According to the report, in papers filed on July 24 with the U.S.
Bankruptcy Court in Manhattan, MF Global's liquidation trustee
requested court permission to sell the brokerage's assets,
including its right to pursue pending litigation, to its parent
company.
About MF Global
New York-based MF Global was one of the world's leading brokers of
commodities and listed derivatives. MF Global provides access to
more than 70 exchanges around the world. The firm also was one of
22 primary dealers authorized to trade U.S. government securities
with the Federal Reserve Bank of New York. MF Global's roots go
back nearly 230 years to a sugar brokerage on the banks of the
Thames River in London.
On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance
USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y.
Case Nos. 11-15059 and 11-5058), after a planned sale to
Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF
Global had $41,046,594,000 in total assets and $39,683,915,000 in
total liabilities.
On Nov. 7, 2011, the United States Trustee appointed the statutory
creditors' committee in the Debtors' cases. At the behest of the
Statutory Creditor's Committee, the Court directed the U.S.
Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the
Bankruptcy Court entered an order approving the appointment of
Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC,
as Chapter 11 trustee.
On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services
LLC and MF Global FX Clear LLC filed voluntary Chapter 11
petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and
11-15810). On Dec. 27, the Court entered an order installing Mr.
Freeh as Chapter 11 Trustee of the New Debtors.
On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary
Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr.
Freeh also was installed as its Chapter 11 Trustee.
Judge Honorable Martin Glenn presides over the Chapter 11 case.
J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric
Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve
as bankruptcy counsel. The Garden City Group, Inc., serves as
claims and noticing agent. The petition was signed by Bradley I.
Abelow, Executive Vice President and Chief Executive Officer of MF
Global Finance USA Inc.
The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan
LLP, as investigative counsel; (ii) FTI Consulting Inc., as
restructuring advisors; (iii) Morrison & Foerster LLP, as
bankruptcy counsel; and (iv) Pepper Hamilton as special counsel.
The Official Committee of Unsecured Creditors has retained
Capstone Advisory Group LLC as financial advisor, while lawyers at
Proskauer Rose LLP serve as counsel.
The Securities Investor Protection Corporation commenced
liquidation proceedings against MF Global Inc. to protect
customers. James W. Giddens was appointed as trustee pursuant to
the Securities Investor Protection Act. He is a partner at Hughes
Hubbard & Reed LLP in New York.
Jon Corzine, the former New Jersey governor and co-CEO of
Goldman Sachs Group Inc., stepped down as chairman and chief
executive officer of MF Global just days after the bankruptcy
filing.
In April 2013, the Bankruptcy Court approved MF Global Holdings'
plan to liquidate its assets. Bloomberg News reported that the
court-approved disclosure statement initially told
creditors with $1.134 billion in unsecured claims against the
parent holding company why they could expect a recovery of 13.4%
to 39.1% from the plan. As a consequence of a settlement with
JPMorgan, supplemental materials informed unsecured creditors
their recovery was reduced to the range of 11.4% to 34.4%. Bank
lenders will have the same recovery on their $1.174 billion claim
against the holding company. As a consequence of the settlement,
the predicted recovery became 18% to 41.5% for holders of $1.19
billion in unsecured claims against the finance subsidiary,
one of the companies under the umbrella of the holding company
trustee. Previously, the predicted recovery was 14.7% to 34% on
bank lenders' claims against the finance subsidiary.
MF GLOBAL: SIPC Praises Trustee on Liquidation Milestone
--------------------------------------------------------
The Securities Investor Protection Corporation (SIPC) praised James
W. Giddens, Trustee for the liquidation of MF Global Inc. (MFGI),
and the Plan Administrator of MF Global Holdings Ltd. (MFGH) who on
July 24 filed a joint motion with the U.S. Bankruptcy Court for the
Southern District of New York seeking approval for a final,
cumulative 94 to 95 percent distribution by the MFGI Trustee on all
allowed general unsecured creditor claims other than the MFGH
claims.
SIPC President Stephen Harbeck said: "The size and scope of the
case, coupled with a 94 to 95 percent distribution, make this case
virtually unprecedented under the Securities Investor Protection
Act, or any other bankruptcy. This is an extraordinary achievement
and Trustee Giddens and his staff have demonstrated that the
Securities Investor Protection Act is an effective mechanism in the
most complex liquidation proceedings."
This significant milestone in the MFGI liquidation follows the
Trustee's full satisfaction of allowed customer, secured,
administrative and priority claims, and two interim distributions
for allowed unsecured claims. Thus far, the Trustee has
distributed:
-- Customer claimants - $6.7 billion to cover 100 percent of
allowed claims
-- Secured, administrative and priority general claimants -
$33.2 million to cover 100 percent of allowed claims
-- Unsecured general claimants - $991.6 million in two interim
distributions to cover 74 percent of allowed claims
Seven claims against MFGI remain in dispute, and the Trustee is
seeking to establish a final unsecured claims reserve to account
for those claims, while releasing all unnecessary reserves. After
the remaining claims are resolved, the Trustee intends to close the
MFGI estate, ending the liquidation proceeding.
About SIPC
The Securities Investor Protection Corporation --
http://www.sipc.org-- is the U.S. investor's first line of defense
in the event of the failure of a brokerage firm owing customers
cash and securities that are missing from customer accounts. SIPC
either acts as trustee or works with an independent court-appointed
trustee in a brokerage insolvency case to recover funds.
The statute that created SIPC provides that customers of a failed
brokerage firm receive all non-negotiable securities -- such as
stocks or bonds -- that are already registered in their names or in
the process of being registered. At the same time, funds from the
SIPC reserve are available to satisfy the remaining claims for
customer cash and/or securities held in custody with the broker for
up to a maximum of $500,000 per customer. This figure includes a
maximum of $250,000 on claims for cash. From the time Congress
created it in 1970 through December 2014, SIPC has advanced $ 2.3
billion in order to make possible the recovery of $134 billion in
assets for an estimated 773,000 investors.
About MF Global
New York-based MF Global -- http://www.mfglobal.com/-- was one of
the world's leading brokers of commodities and listed derivatives.
MF Global provides access to more than 70 exchanges around the
world. The firm also was one of 22 primary dealers authorized to
trade U.S. government securities with the Federal Reserve Bank of
New York. MF Global's roots go back nearly 230 years to a sugar
brokerage on the banks of the Thames River in London.
On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA
Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case
Nos. 11-15059 and 11-5058), after a planned sale to Interactive
Brokers Group collapsed. As of Sept. 30, 2011, MF Global had
$41,046,594,000 in total assets and $39,683,915,000 in total
liabilities.
On Nov. 7, 2011, the United States Trustee appointed the statutory
creditors' committee in the Debtors' cases. At the behest of the
Statutory Creditor's Committee, the Court directed the U.S. Trustee
to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy
Court entered an order approving the appointment of Louis J. Freeh,
Esq., of Freeh Group International Solutions, LLC,
as Chapter 11 trustee.
On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services
LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions
(Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On
Dec. 27, the Court entered an order installing Mr. Freeh as Chapter
11 Trustee of the New Debtors.
On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary
Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr.
Freeh also was installed as its Chapter 11 Trustee.
Judge Honorable Martin Glenn presides over the Chapter 11 case. J.
Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester,
Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as
bankruptcy counsel. The Garden City Group, Inc., serves as claims
and noticing agent. The petition was signed by Bradley I. Abelow,
Executive Vice President and Chief Executive Officer of MF Global
Finance USA Inc.
The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP,
as investigative counsel; (ii) FTI Consulting Inc., as
restructuring advisors; (iii) Morrison & Foerster LLP, as
bankruptcy counsel; and (iv) Pepper Hamilton as special counsel.
The Official Committee of Unsecured Creditors has retained Capstone
Advisory Group LLC as financial advisor, while lawyers at Proskauer
Rose LLP serve as counsel.
The Securities Investor Protection Corporation commenced
liquidation proceedings against MF Global Inc. to protect
customers. James W. Giddens was appointed as trustee pursuant to
the Securities Investor Protection Act. He is a partner at Hughes
Hubbard & Reed LLP in New York.
Jon Corzine, the former New Jersey governor and co-CEO of Goldman
Sachs Group Inc., stepped down as chairman and chief executive
officer of MF Global just days after the bankruptcy filing.
In April 2013, the Bankruptcy Court approved MF Global Holdings'
plan to liquidate its assets. Bloomberg News reported that the
court-approved disclosure statement initially told creditors with
$1.134 billion in unsecured claims against the parent holding
company why they could expect a recovery of 13.4% to 39.1% from the
plan. As a consequence of a settlement with JPMorgan, supplemental
materials informed unsecured creditors their recovery was reduced
to the range of 11.4% to 34.4%. Bank lenders will have the same
recovery on their $1.174 billion claim against the holding company.
As a consequence of the settlement, the predicted recovery became
18% to 41.5% for holders of $1.19
billion in unsecured claims against the finance subsidiary, one of
the companies under the umbrella of the holding company trustee.
Previously, the predicted recovery was 14.7% to 34% on bank
lenders' claims against the finance subsidiary.
MID-AMERICA DIESEL: Files for Chapter 7 Liquidation
---------------------------------------------------
Mid-America Diesel, Inc., filed for Chapter 7 liquidation (Bankr.
E.D. Mich. Case No. 15-50755) on July 17, 2015. Judge Phillip J.
Shefferly presides over the case.
Jeffrey A. Chimovitz, Esq., represents the Company in this case.
The Company's schedules of assets and liabilities and statement of
financial affairs is due July 31, 2015.
Kenneth Nathan is appointed as interim trustee.
The Sec. 341(a) meeting will be held on Aug. 26, 2015, at 9:00 a.m.
at Room 315, 211 W. Fort Street Building, Detroit 341.
Mid-America Diesel, Inc., is headquartered in Holly, Michigan.
OAKLAND PHYSICIANS: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------------
Oakland Physicians Medical Center, LLC, filed for Chapter 11
bankruptcy protection (Bankr. E.D. Mich. Case No. 15-51011) on July
22, 2015, estimating its assets at between $1 million and $10
million and its liabilities at between $10 million and $50 million.
The petition was signed by Yatinder M. Singhal, M.D.,
member/chairman of the Board.
Carol Hopkins at The Oakland Press recalls that the Hospital was
ordered in June 2015 to pay more than $2.7 million as a result of a
lawsuit regarding loans, some of which were paid by a doctor who,
as recently as February 2015, had been listed as a member of the
Hospital's four-person board of directors. Crain's Detroit
Business relates that the Hospital had been trying to cope with a
lawsuit filed by the Shree Investment Group and several physician
investors for unpaid loans of about $2 million.
Citing Cost Report Data, Crain's Detroit Business reports that the
Hospital lost $59.5 million from 2009 to 2013. Crain's says
there's no financial information available for 2014 and 2015.
According to the report, the Hospital tried over the past several
years to lessen operating expenses. The report states that the
Hospital closed its emergency department in October 2013 but in
January 2014 expanded its urgent care center to 24 hours. The
Hospital laid off in April some 40 of the estimated 300 employees
and earlier this year, more than 170 hospital retirees were
notified their life insurance coverage was terminated, effective
Dec. 31, 2015, the report adds.
Judge Walter Shapero presides over the case.
Thomas B. Radom, Esq., at Butzel Long, A Professional Corporation,
serves as the Company's bankruptcy counsel.
The physician-owned 47-bed hospital Oakland Physicians Medical
Center, LLC, is headquartered in Bloomfield Hills, Michigan.
Oakland Physicians is the legal name of Doctors Hospital.
ORLANDO GATEWAY: UST Opposes Bid to Hire Restructuring Adviser
--------------------------------------------------------------
The U.S. trustee overseeing the Chapter 11 case of Orlando Gateway
Partners LLC asked a bankruptcy court to deny the company's bid to
hire a restructuring adviser.
In a court filing, the Justice Department's bankruptcy watchdog
said it is "too early" for anyone to determine whether the hiring
of a restructuring adviser is appropriate or not.
According to the U.S. trustee, the court must issue a ruling first
on the motions seeking the dismissal of the case and the
appointment of an outside trustee.
The agency on June 8 asked the bankruptcy court to dismiss Orlando
Gateway's case or convert it to a Chapter 7 liquidation. A week
after, creditors Good Gateway LLC and SEG Gateway LLC proposed the
appointment of a bankruptcy trustee.
The U.S. trustee also questioned the absence of an agreement
between the company and the restructuring adviser it proposed to
hire, court filings show.
Orlando Gateway on June 16 filed an application with the U.S.
Bankruptcy Court for the Middle District of Florida to hire Larry
Hyman as its restructuring adviser and chief restructuring officer,
with the assistance of staff at Hyman and Associates.
In its application, the company said it needs a restructuring
adviser to prepare financial reports, assist in the formulation of
a bankruptcy plan, and help the company get financing and sell its
assets.
Orlando Gateway proposed to pay $195 to $325 per hour for
professionals, and $95 to $110 per hour for paraprofessionals,
court filings show.
About Orlando Gateway
Nilhan Hospitality, LLC, and Orlando Gateway Partners, LLC
commenced Chapter 11 bankruptcy cases (Bankr. M.D. Fla. Case No.
15-03447 and 15-03448, respectively) on April 20, 2015.
Chittranjan Thakkar, the manager, signed the petitions.
Orlando Gateway, Orlando Sentinel states, is a $500 million retail
and residential complex -- which includes two restaurants, a
Bonefish Grill and Carraba's, and plans for additional commercial
and residential build out -- near Orlando International Airport.
Nilhan estimated $1 million to $10 million in assets and $10
million to $50 million in debt while Orlando Gateway estimated at
least $10 million in assets and debt.
The Debtors are represented by Kenneth D Herron, Jr., Esq., at
Wolff, Hill, McFarlin & Herron, P.A.
According to the docket, the Debtors' Chapter 11 plan and
disclosure statement are due Aug. 18, 2015.
The initial meeting of creditors was held and concluded on July 6,
2015, court filings show.
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.
PACIFIC RUBIALES: Moody's Lowers CFR to Ba3; Outlook Negative
-------------------------------------------------------------
Moody's Investors Service downgraded Pacific Rubiales Energy
Corp.'s (PRE) Corporate Family Rating and senior unsecured rating
to Ba3 from Ba2. The ratings outlook was changed to negative from
stable.
Downgrades:
Issuer: Pacific Rubiales Energy Corp.
Corporate Family Rating, Downgraded to Ba3 from Ba2
Senior Unsecured Regular Bond/Debenture, Downgraded to Ba3 from
Ba2
Outlook Actions:
Issuer: Pacific Rubiales Energy Corp.
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
The downgrade of PRE's ratings to Ba3 reflects Moody's view that
company's already weak leverage and cash flow metrics will
deteriorate further in 2015 and remain weak for the next few years,
which will increase liquidity risk. A higher debt burden since
2013 coupled with low oil prices since the third quarter 2014 have
negatively impacted the company's credit metrics.
The negative outlook is based on Moody's expectation that the
company's liquidity position and credit metrics are vulnerable to
volatile oil prices, increasing the risk of it breaching financial
covenants.
Moody's acknowledges PRE's cost reduction efforts since late 2014.
The company estimates that, from the second quarter 2014 to second
quarter 2015, total operating costs and general & administrative
expenses, per barrel, fell by 27% and 29%, respectively. However,
these have not been enough to fully offset the impact of low crude
prices on profits. Moreover, it will be difficult for PRE to
reduce costs further.
Moody's believes that PRE's free cash flow will continue to be
negative over the next two to three years, because of low oil
prices and increasing capex, adversely impacting credit metrics. As
of March 31, 2015, PRE's EBITDA/interest was 5.7 times and its
RCF/debt was at 25.5%. Under Moody's base case scenario of WTI
averaging $55 and $60 per barrel in 2015 and 2016, respectively,
these credit metrics should be 3.8 times and 16.1% by the end of
2016.
Although price conditions are not particularly favorable for sale
of oil assets, Moody's believes that PRE could divest about $300
million in non-core assets in the next couple of quarters, which
would strengthen the company's liquidity position, especially in
context of PRE's large debt repayment of $1.2 billion dollars due
in the second quarter 2017. However, the prospect of asset sales
is not incorporated into Moody's assessment of PRE's liquidity
situation.
PRE's Ba3 ratings continue to incorporate other risks such as asset
concentration in Colombia and a short proved reserve life of 5.8
years. The ratings also consider the development and financing
risks associated with the company's heavy oil fields and large
infrastructure investments. Moody's continues to incorporate into
PRE's ratings that the company will not rapidly replace the
Rubiales-Piriri field, which represented 35% of production as of
the first quarter 2015 and will be returned to Ecopetrol in
mid-2016.
The ratings are supported by PRE's technically capable and seasoned
management team. In addition, the company amended the maintenance
financial covenant under the credit agreement last February, which
is now at 4.5x gross debt/EBITDA, up from 3.5x. Other cash saving
efforts include a sharp cut in capex of 60% in 2015 to
approximately $ 1.3 billion dollars.
An upgrade of PRE's ratings is unlikely in the short to medium term
but RCF/debt sustained above 40% and a proved reserve life above
seven years could result in an upgrade of its ratings.
Conversely, higher liquidity risk in the form of low available cash
or tight financial covenants could result in negative rating
actions.
The principal methodology used in these ratings was Global
Independent Exploration and Production Industry published in
December 2011.
Pacific Rubiales Energy Corp. (PRE) is a Canadian-based exploration
and production (E&P) company with production operations primarily
in Colombia, where it is the second largest producer, operating in
partnership with Ecopetrol S.A., the national oil company. It also
has other assets in Peru, Guatemala, Brazil, Guyana, Belize and
Papua New Guinea. The company is predominantly a heavy oil
producer (89% oil production) in the Llanos Basin. As of March 31,
2015, the company had last twelve month revenues of $4.5 billion
dollars, $13.5 billion dollars in total assets and an average daily
production of 148 MBOE/day.
PARK FLETCHER: Closes Sale of Marion County Assets
--------------------------------------------------
Park Fletcher Realty, LLC, closed on June 18, 2015, the sale of
substantially all of its assets located in Marion County,
Indiana, to PF Realty, LLC, and Exchange Services Group LLC as
intermediary for JKB Properties, LLC, free and clear of interests,
liens, claims and encumbrances.
The closing statement for the sale transaction is available for
free at http://bankrupt.com/misc/PARKFLETCHER_88_salestatement.pdf
The U.S. Bankruptcy Court for the Southern District of Indiana
approved the sale on June 18, 2015. Pursuant to the sale order,
the proceeds of the auction were to be paid first to the Marion
County Treasurer, then to Filbert Orton Eat, LLC, and lastly to the
Debtor representing the net proceeds of the sale in excess of all
claims herein.
Pursuant to the acquisition agreement entered into between the
Debtor, PR Realty, LLC, and JKB Properties, LLC, as tenants inc
common, together with its or their assignees permitted under the
agreement, the property will be sold for $15 million to PF
Properties, LLC. Copies of the sale order and the Agreement are
available for free at:
http://bankrupt.com/misc/PARKFLETCHER_86_sale_ord.pdf
http://bankrupt.com/misc/PARKFLETCHER_86_purchaseagreement.pdf
About Park Fletcher
Park Fletcher Realty, LLC filed a Chapter 11 bankruptcy
petition (Bank. S.D. Ind. Case No. 15-00843) on Feb. 15, 2015.
The petition was signed by Shawn Williams as managing member.
Judge Jeffrey J. Graham presides over the case. KC Cohen, Esq., at
KC Cohen, Lawyer, PC, serves as the Debtor's counsel. Park
Fletcher Realty LLC disclosed $15,201,760 in assets and $13,187,177
in liabilities as of the Chapter 11 filing.
PETER WOJTKUN: Bid to Dismiss Suit vs. Wojtkun Partially Granted
----------------------------------------------------------------
Judge William C. Hillman of the United States Bankruptcy Court for
the District of Massachusetts, Eastern Division, granted in part
and denied in part the motion to dismiss the case captioned JOSEPH
G. BUTLER, TRUSTEE, Chapter 7, Plaintiff v. PETER WOJTKUN, SUSAN
WOJTKUN, INDIVIDUALLY AND AS TRUSTEE OF THE SUSAN R. WOJTKUN LIVING
TRUST, AND S.R.W. REALTY CORP., Defendants, ADVERSARY PROCEEDING
CASE NO. 15-1016 (Bankr. D. Mass.).
On January 13, 2015, the Trustee filed an adversary proceeding
against Peter Wojtkun, his wife, Susan Wojtkun, individually and as
trustee of the Susan R. Wojtkun Living Trust, and S.R.W. Realty
Corp. The Defendants sought to dismiss 13 counts of the Trustee's
complaint through which he sought:
(1) a declaration that a resulting trust exists for an
interest in the sale proceeds of real property in
Georgetown, Massachusetts that Susan sold in 2014;
(2) a declaration that a constructive trust exists for an
interest in the sale proceeds of the Georgetown Property;
(3) a declaration that a resulting trust exists in a
condominium S.R.W. Realty Corp. holds title to in Puerto
Rico;
(4) a declaration that a constructive trust exists in the
Condominium;
(5) avoidance of transfers of income from the Debtor to Susan
as actual fraud pursuant Section 548(a)(1)(A) of the
Bankruptcy Code;
(6) avoidance of transfers of income from the Debtor to Susan
as constructive fraud pursuant to Section
548(a)(1)(B)(ii)(I);
(7) avoidance of transfers of income from the Debtor to Susan
as constructive fraud pursuant to Section
548(a)(1)(B)(ii)(IV);
(8) avoidance of transfers of income from the Debtor to Susan
pursuant to Mass. Gen Laws ch. 109A, Section 5(a)(1);
(9) avoidance of transfers of income from the Debtor to Susan
pursuant to Mass. Gen. Laws ch. 109A, Section 6(a);
(10) avoidance of transfers of income from the Debtor to Susan
pursuant to Mass. Gen. Laws ch. 109A, Section 6(b);
(11) avoidance of transfers of income from the Debtor to Susan
pursuant to Section 547(b);
(12) equitable reach and apply of the Debtor's interest in the
Condominium and the Georgetown Property or their sale
proceeds; and
(13) damages for grossly excessive compensation through a
shareholder derivative action on behalf of Peter Wojtkun
DMD P.C. against Susan for aiding and abetting a breach of
fiduciary duty and unjust enrichment.
The bankruptcy case is IN RE: PETER WOJTKUN, Chapter 7, DEBTOR,
CASE NO. 13-12719-WCH (Bankr. D. Mass.).
In a July 20, 2015 memorandum of decision, a copy of which is
available at http://is.gd/CFgPGSfrom Leagle.com, Judge Hillman
entered an order granting the Motion to Dismiss as to Counts II,
III, IV, X, and XI, and denying it as to Counts I, V, VI, VII,
VIII, IX, XII, and XIII.
Joseph G. Butler is represented by:
James M. Liston, Esq.
HACKETT, FEINBERG, P.C.
155 Federal Street, 9th Floor
Boston, MA 02110
Tel: (617) 422-0200
Fax: (617) 422-0383
Email: jml@bostonbusinesslaw.com
Susan Wojtkun and S.R.W. Realty Corp. are represented by:
John W. Moran, Esq.
LECLAIR RYAN, P.C.
One International Place, Eleventh Floor
Boston, MA 02110 US
Tel: (617) 502-8200
Fax: (617) 502-8201
Email: john.moran@leclairryan.com
Peter Wojtkun is represented by:
John F. Sommerstein, Esq.
LAW OFFICES OF JOHN F. SOMMERSTEIN
98 N Washington St., Suite 104
Boston, MA 02114
Tel: (617) 523-7474
Fax: (617) 523-7484
PHARMACEUTICAL PRODUCT: S&P Affirms 'B' CCR, Outlook Stable
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Wilmington, N.C.-based Pharmaceutical Product
Development LLC (PPD). The outlook is stable.
At the same time, S&P is assigning a 'B' rating and '3' recovery
rating to PPD's new senior secured credit facilities. PPD's
upstream parent, Jaguar Holding Co. II (DE), will be a co-borrower
under the new facilities. The '3' recovery rating indicates S&P's
expectation for meaningful (50% to 70%, in the lower half of the
range) recovery of principal in the event of payment default.
In addition, S&P is assigning a 'B-' rating and '5' recovery rating
to PPD's planned senior unsecured note issuance. Jaguar Holding
Co. II (DE) will be a co-issuer of the new notes. The '5' recovery
rating indicates S&P's expectation for modest (10% to 30%, in the
lower half of the range) recovery of principal in the event of
payment default.
"We currently assess PPD's business risk as 'fair,' based on our
view that the contract research organization [CRO] sector is
inherently cyclical given its dependence on pharma research and
development expenditures and the risk of contract cancellation, and
PPD's market position within the industry," said Standard & Poor's
credit analyst Colm Kelly.
While favorable industry trends, including growth in overall pharma
research spending and increased levels of outsourcing by pharma
customers of the clinical research function, are likely to result
in mid-single-digit revenue growth over the next few years, even
the largest CROs are much smaller than their pharmaceutical company
customers, which limits pricing power.
S&P's stable rating outlook on PPD reflects S&P's expectation that
mid-single-digit revenue and EBITDA growth, which is slightly above
S&P's expectations for industry growth, will result in positive
free cash flow generation over the near term. However, despite
growing EBITDA, S&P also expects that adjusted leverage will remain
above 5x over time due to elevated debt levels and leverage
following $1 billion in debt-financed sponsor distributions in the
past year.
S&P could lower the rating if an unforeseen quality event led to
contract cancellations and a sharp decline in new contract awards.
Under this instance, S&P could revise its view of business risk to
"weak". Separately, S&P could lower the rating if
greater-than-anticipated competitive pressure or weak operating
performance caused EBITDA to decline by 20% or more.
Upgrade consideration is unlikely because S&P thinks sponsor
ownership will continue to shape an aggressive financial policy,
where cash flow is prioritized toward shareholder return, as
opposed to permanent debt repayment. Even if PPD were able to
reduce leverage below 5x over the next two years, S&P would be
unlikely to raise the rating because we believe any improvement in
leverage would be temporary.
PREMIER ENVIRONMENTAL: Files for Chapter 11 Bankruptcy Protection
-----------------------------------------------------------------
Premier Environmental Solutions, LLC, filed for Chapter 11
bankruptcy protection (Bankr. E.D. Mich. Case No. 15-50976) on July
22, 2015, estimating its assets and liabilities at between $100,000
and $500,000 each. Judge Thomas J. Tucker presides over the case.
The Company filed a motion on July 24, 2015, for court
authorization to employ Yuliy Osipov, Esq., at Osipov Bigelman,
P.C., as bankruptcy counsel.
A Sec. 341(a) meeting will be held on Aug. 31, 2015, at 2:00 p.m.
at Room 315 E, 211 W. Fort Street Building Detroit 341.
Proofs of claim must be filed by Nov. 30, 2015. The schedules of
assets and liabilities and statement of financial affairs are due
Aug. 5, 2015.
The Company must file its Chapter 11 plan on Jan. 19, 2016.
Premier Environmental Solutions, LLC, is headquartered in Sterling
Heights, Michigan.
PROLAMPAC INTERMEDIATE: S&P Assigns 'B' CCR, Outlook Stable
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B' corporate credit rating to Prolampac Intermediate Inc. The
outlook is stable.
At the same time, S&P assigned its 'B' issue-level rating and '3'
recovery rating to Prolampac and borrowers Prolamina Corp. and
Ampac Packaging LLC's proposed $450 million senior secured
first-lien credit facilities. The '3' recovery rating indicates
S&P's expectation of meaningful recovery (50%-70%; upper half of
the range) in the event of a payment default. The credit
facilities include a $50 million revolver due 2020, which will be
undrawn at closing, and a $400 million term loan due 2022.
S&P also assigned its 'CCC+' issue-level rating and '6' recovery
rating to the companies' proposed $110 million senior secured
second-lien term loan due 2023. The '6' recovery rating indicates
S&P's expectation of negligible recovery (0%-10%) in the event of a
payment default. The company will use the proceeds from this loan
along with equity contributions from its sponsor to fund the
acquisition and pay related fees and expenses.
"Prolampac Intermediate Inc. will operate in the highly fragmented
and competitive flexible packaging industry," said Standard &
Poor's credit analyst Jaissy Lorenzo. With pro forma revenues of
nearly $700 million for the last 12 months ended June 30, 2015,
Prolampac is a midsize company in its industry and has some
moderate customer concentrations, with its largest customer
accounting for about 7% of its combined sales. The company is also
exposed to volatile raw material costs. These factors are
partially offset by the company's long-standing and mostly
contractual relationships with its well-established customers, its
exposure to the relatively stable food, consumer products, and
medical end markets, and its good market positions in certain
industry niches.
The stable outlook reflect that S&P expects the company to
gradually delever so that its adjusted debt-to-EBITDA metric falls
below 6x over the next 12-18 months as its margins improve because
of cost synergies from the proposed merger. S&P expects that
Prolampac's margins will also be supported by the company's stable
food, consumer products, and medical end markets.
S&P could lower its ratings on Prolampac if the company's operating
performance deteriorates materially because of increasingly
competitive market conditions, volatile raw material costs, or the
loss of a key customer, such that its total adjusted debt-to-EBITDA
metric trends above 6.5x without any prospect for improvement. S&P
could also lower the ratings if the company becomes more aggressive
than it expects with respect to acquisitions or shareholder
distributions, causing its debt-to-EBITDA metric to trend above
6.5x for an extended period.
S&P could raise its ratings on the company if management committed
to a financial policy that would cause its leverage to fall below
5x and its FFO-to-debt ratio to exceed 12% for a sustained period.
REFCO GROUP: Bid to File Docs under Seal in Suit vs. Cantor Granted
-------------------------------------------------------------------
In the case captioned REFCO GROUP LTD., LLC, Plaintiff, v. CANTOR
FITZGERALD, L.P., et al., Defendants, NO. 13 CIV. 1654 (RA)(HBP)
(S.D.N.Y.), Judge Henry Pitman of the United States District Court
for the Southern District of New York granted Refco's application
to file, under seal, certain documents that were submitted in
support of its motion to amend the Second Amended Complaint and to
file redacted versions of those documents on the Court's ECF
system.
On December 6, 2012, Refco Group Ltd., LLC, commenced an adversary
proceeding by filing a complaint, under seal, in the bankruptcy
court. On March 22, 2013, the parties' stipulation withdrawing the
reference of the adversary proceeding was approved and the case was
allowed to proceed in the district court.
On December 10, 2014, RGL sought leave to file the SAC and
requested permission to file its motion and accompanying documents,
as well as the SAC itself, under seal and to file redacted versions
of those documents on the Court's publicly accessible ECF system.
The request to seal and redact the documents is based "solely" on
defendants' designation of the material as "confidential" and the
parties' approved stipulated confidentiality agreement.
Judge Pitman found that the presumption of access to these
documents is low, because the redacted information is minimally
relevant to the parties' claims and does not appear necessary to or
helpful in resolving the motion for leave to amend. Further, he
also found that the defendants' interest in maintaining the
confidentiality of the information appears to outweigh any public
interest in disclosure.
A full-text copy of Judge Pittman's July 15, 2015 opinion and order
is available at http://is.gd/CDjllGfrom Leagle.com.
About Refco Inc.
Headquartered in New York, Refco Inc. was a diversified financial
services organization with operations in 14 countries and an
extensive global institutional and retail client base. Refco's
worldwide subsidiaries were members of principal U.S. and
international exchanges, and were among the most active members of
futures exchanges in Chicago, New York, London and Singapore.
Refco was also a major broker of cash market products, including
foreign exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC
financial and commodity products. Refco was one of the largest
global clearing firms for derivatives. The Company had operations
in Bermuda.
The Company and 23 of its affiliates filed for Chapter 11
protection on October 17, 2005 (Bankr. S.D.N.Y. Case No.
05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, represented the Debtors in their restructuring
efforts. Milbank, Tweed, Hadley & McCloy LLP, represented the
Official Committee of Unsecured Creditors. Refco reported US$16.5
billion in assets and US$16.8 billion in debts to the Bankruptcy
Court on the first day of its Chapter 11 cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on December 15, 2006. That Plan became effective on Dec. 26,
2006. Pursuant to the plan, RJM, LLC, was named plan administrator
to reorganized Refco, Inc., and its affiliates, and Marc S.
Kirschner as plan administrator to Refco Capital Markets, Ltd.
RELATIVITY MEDIA: Weighs Filing for Chapter 11 Protection
---------------------------------------------------------
Sharon Waxman, writing for TheWrap, reports that Ryan Kavanaugh's
Relativity Media is considering filing for Chapter 11 bankruptcy.
According to TheWrap, the Company has been seeking new funding for
weeks to respond to demands of its lenders. An insider told
TheWrap that the Company is seeking to raise funds before the end
of July.
Citing insiders, TheWrap relates that Mr. Kavanaugh is seeking a
one-year extension on his $30 million in debt as well as new equity
investment.
TheWrap says that the Company had been attempting to satisfy almost
$150 million in senior secured debt, on top of squabbling with
subordinate debt holders and attempting to find equity investors to
finance ongoing and new film projects.
Mr. Kavanaugh said in a statement that Catalyst Capital agreed to
absorb $130 million in debt, which was then bought up by senior
creditors led by Anchorage Capital. Catalyst, TheWrap states, had
agreed to give the Company a one-year extension on its debt
repayment.
The Company hasn't yet reached an extension agreement with
Anchorage Capital and the new lenders, TheWrap reports, citing an
insider close to the Company.
Relativity Media is an indie film distributor founded in 2004 by
Ryan Kavanaugh. It is one of Hollywood's mini-major film studios,
which produces, acquires and distributes films, and has divisions
in television, sports, music and fashion.
RICHMOND CHRISTIAN: Files Plan, Eyes Ch 11 Exit in September
------------------------------------------------------------
Michael Schwartz at Richmond BizSense reports that Richmond
Christian Center filed on July 8, 2015, a reorganization plan that
will refinance the debt on RCC's main church building near
Manchester, institute steps to draw in new sources of revenue and
add new leadership and procedures to better monitor its finances.
According to BizSense, the Bankruptcy Court has preliminarily
approved the plan and will next be voted on by the RCC's creditors.
Ballots will be mailed to creditors by Aug. 5, 2015, and will be
due back by Sept. 2, 2015, with a confirmation hearing planned for
Sept. 9, 2015, the report states, citing Chris Perkins, Esq., at
LeClairRyan, who has worked with RCC on behalf of Chapter 11
trustee Bruce Matson.
BizSense relates that the plan states that: (i) RCC has negotiated
a reduction and restructuring of its debt with lender Foundation
Capital Resources, whose dealings with RCC led the church to
Chapter 11 bankruptcy; and (ii) RCC will lease much of its unused
facilities to outside tenants as a way to bring in revenue. The
report adds that church members have committed to raise $200,000
among themselves to be used to help fund the administrative costs
of the reorganization.
Citing Calvin Yarbrough, one of three RCC members who are taking a
greater leadership role at the church as part of the
reorganization, the report states that the plan is to get 400
people to put in $500.
RCC said it will hold a celebration on Sept. 13, 2015, to celebrate
its emergence from Chapter 11, BizSense reports.
About Richmond Christian
Headquartered in Richmond, Virginia, Richmond Christian Center
filed for Chapter 11 bankruptcy protection (Bankr. E.D. Va. Case
No. 13-35141) on Sept. 24, 2013, estimating its assets and debts
at $1 million to $10 million each. The petition was signed by Dr.
Stephen A. Parson, Sr., pastor.
Ronald A. Page, Jr., Esq., at Ronald Page, PLC, serves as the
Debtor's bankruptcy counsel. Judge Kevin R. Huennekens presides
over the case.
ROBERT DEMAURO: Johnson & Wales Battle to Keep Tuition Money
------------------------------------------------------------
Katy Stech, writing for The Wall Street Journal, reported that
Johnson & Wales University is fighting to keep $46,909 in tuition
paid by a Connecticut couple for their daughter's education against
the demands of a bankruptcy court-official, who sued to get that
money back.
According to the report, the private, Rhode Island-based college
has asked a bankruptcy judge to throw out the lawsuit that arose
when Robert and Jean DeMauro filed for bankruptcy last year. A
bankruptcy trustee who examined the DeMauros' finances argued that
the couple didn’t get any benefit from the tuition payments made
from March 2011 to December 2013 -- their daughter did, the report
said.
ROMAN SLEDZIEJOWSKI: TRO Extends to Habringer, Pojest, PPJ
----------------------------------------------------------
In the case captioned MARIANNE T. O'TOOLE, as Chapter 7 Trustee of
the Estate of Roman Sledziejowski, Plaintiff, v. MONIKA WROBEL, RML
DEVELOPMENT, INC., JACRS, LLC, MLR DEVELOPMENT, INC., POL
MARKETING, INC., JERZY SLEDZIEJOWSKI, ELZBIETA SLEDZIEJOWSKI, PAUL
FOLKES, IRA S. KARABA, VIET HA DO, LAWRENCE W. JACKSON, ESQ., JANE
DOE "1" through "10" and JOHN DOE "1" through "10", Defendants,
(RDD), ADV. NO. 13-08317 (SHL) (Bankr. S.D.N.Y.), Judge Sean H.
Lane of the United States Bankruptcy Court for the Southern
District of New York granted the Trustee's motion for a preliminary
injunction against Habringer Group Inc., Pojest Apartments, LLC,
and PPJ Capital, Inc.
On August 22, 2013, an order granting preliminary injunction was
issued, preventing Viet Ha Do and Paul Folkes from transferring,
hypothecating, encumbering or otherwise disposing of assets of the
estate of the debtor, Roman Sledziejowski.
The Chapter 7 Trustee of Sledziejowski's bankruptcy case sought the
extension of the 2013 Injunction to also cover Habringer and
Pojest, entities that are owned by Do and Folkes, as well as to
cover Pawel and Maria Jankowski and their company PPJ Capital that
are involved in real estate purchases with Habringer and Pojest.
The Trustee also sought to expand the scope of the injunction to
restrict the movement of all assets by these parties until he is
able to determine whether these parties have assets of the estate.
On July 1, 2015, the Court granted the Trustee a temporary
restraining order to apply the 2013 Injunction to Habringer,
Pojest, Pawel and Maria Jankowski and PPJ Capital.
On July 13, 2015, Judge Lane granted the Trustee's motion and
converted the temporary restraining order into a preliminary
injunction against Habringer, Pojest and PPJ Capital.
Judge Lane concluded that the injunction should cover both
Habringer and Pojest as they are wholly owned and controlled by Do
and Folkes and are the means by which Do and Folkes are conducting
business, which business includes the disposition of significant
assets. Judge Lane also concluded that it is appropriate to extend
the injunction to PPJ Capital due to serious questions raised about
its dealings with Habringer.
The Court also entered additional relief to restrict, preserve and
track assets that may be assets of the estate.
As to Pawel and Maria Jankowski and their company, PPJ Spolka
Jawna, Judge Lane declined to enter any relief against these Polish
persons and entity at this time after concluding that the Trustee
has not satisfied its burden for obtaining an injunction against
these three persons, all of whom reside in Poland.
The bankruptcy case is In re: ROMAN SLEDZIEJOWSKI, Chapter 7,
Debtor, CASE NO. 13-22050 (Bankr. S.D.N.Y.).
A copy of the July 20, 2015 memorandum of decision is available at
http://is.gd/vpPAjsfrom Leagle.com.
Marianne T. O'Toole is represented by:
Joseph S. Maniscalco, Esq.
Holly R. Holecek, Esq.
LAMONICA HERBST & MANISCALCO, LLP.
3305 Jerusalem Avenue
Wantagh, NY 11793
Tel: (516) 826-6500
Fax: (516) 826-0222
Email: jsm@lhmlawfirm.com
Habringer Group, Inc., Pojest Apartments, LLC and Viet Ha Do are
represented by:
Kathy S. Marks, Esq.
Russell M. Yankwitt, Esq.
YANKWITT LLP
140 Grand Street
White Plains, NY 10601
Tel: (914) 368-7410
Fax: (914) 801-5930
Pawel Jankowski, Maria Jankowska, and PPJ Spolka Jawna are
represented by:
Janusz Marzurek, Esq.
Stephen Terrett, Esq.
SPACZYNSKI, SZCZEPANIAK I WSPOLNICY S.K.A.
Rondo ONZ 1, 12th floor
00-124 Warsaw, Poland
Tel: +48 (22) 544-8700
Fax: +48 (22) 544-8701
Email: janusz.mazurek@ssw.pl
stephen.terret@ssw.pl
Roman Sledziejowski filed a petition for relief under Chapter 11 of
the Bankruptcy Code on January 15, 2013. On March 27, 2013, the
U.S. Bankruptcy Court for the Southern District of New York entered
an order directing the appointment of a Chapter 11 Trustee in
Sledziejowski's case. Marianne T. O'Toole was subsequently
appointed as Chapter 11 Trustee of the Debtor's estate. On April
15, 2013, a stipulation and order was entered converting
Sledziejowski's case from Chapter 11 to Chapter 7 of the Bankruptcy
Code and Ms. O'Toole was subsequently appointed as the Chapter 7
Trustee.
ROSETTA RESOURCES: S&P Raises Corp. Credit Rating From 'BB-'
------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Rosetta Resources Inc. to 'BBB' from 'BB-' and removed it
from CreditWatch, where S&P placed it with positive implications on
May 12, 2015. This action followed the completion of Noble Energy
Inc.'s acquisition of Rosetta on July 20, 2015. Subsequently S&P is
withdrawing the corporate credit rating on Rosetta Resources
because Noble has merged Rosetta Resources into NBL Texas LLC, a
wholly-owned subsidiary of Noble.
At the same time, S&P raised the issue-level ratings on NBL Texas'
(formerly Rosetta Resources') senior unsecured debt to 'BBB' (in
line with the rating on Noble's unsecured debt) from 'B+' and
withdrew the recovery rating on this debt, given that the company
is now rated investment grade.
The rating action follows the closing of Noble Energy's acquisition
of Rosetta Resources Inc. for a total value of $3.9 billion.
Following the transaction, Noble merged Rosetta Resources into NBL
Texas LLC, a wholly-owned subsidiary of Noble. S&P has equalized
the issue-level ratings on NBL Texas' (formerly Rosetta Resources)
unsecured debt with the 'BBB' issue-level rating on Noble's
unsecured debt. S&P assesses NBL Texas as a "core" subsidiary of
Noble Energy.
SAGICOR FINANCIAL: Fitch Assigns Initial 'B' IDR, Outlook Positive
------------------------------------------------------------------
Fitch Ratings has assigned an initial 'B' long-term Issuer Default
Rating to Sagicor Financial Corporation (SFC) and a rating of 'B
(EXP)' to the planned issue of senior unsecured notes, issued by
Sagicor Finance (2015) Ltd and guaranteed by SFC and Sagicor Life
Inc. Fitch has also assigned a Recovery Rating of 'RR5(EXP)' to
the planned note issue. The Rating Outlook is Positive.
Fitch expects SFC to issue between $200 million to $320 million of
senior unsecured notes. Proceeds from the planned issuance will be
used to refinance the company's existing debt due in 2016.
KEY RATING DRIVERS
Fitch's ratings for SFC reflects the challenging operating and
economic environments of the main insurance subsidiaries domiciled
in Barbados and Jamaica, and very high exposure to below investment
grade sovereign debt, partially offset by strong operating company
capitalization, and reasonable, but volatile, profitability. The
ratings also consider the company's high financial leverage,
macroeconomic challenges associated with low interest rates, high
quality of the investment-grade portion of the investment
portfolio, and asset liability duration mismatches in the
operations of Barbados and Trinidad.
Of SFC's total revenues, 58% come from Jamaica and Barbados. In
addition, the insurer holds high levels of Jamaica and Barbados'
sovereign debt in its investment portfolio, which together equate
to over 150% of SFC's consolidated shareholders' equity.
Capitalization ratios are strong but potentially more volatile than
those of many insurers rated by Fitch. Management uses Canadian
regulatory capital standards to help manage capital, and the
consolidated MCCSR for SFC is strong and has remained above 250%
since 2011. Fitch expects the MCCSR to remain close to this level
over the medium term. However, the capital exposure to the
sovereign debt of Jamaica and Barbados could result in sharp
declines in capitalization ratios in adverse sovereign scenarios.
Management is trying to reduce the exposure to these sovereign
instruments, but Fitch believes this process will be relatively
slow.
SFC's financial leverage ratio (FLR) is high at 46% as of year-end
2014 (adjusted to exclude non-controlling interests from capital).
SFC's fixed-charge coverage ratio, as calculated by Fitch, remained
at 4.1x at 2014, which is modest. The near-term maturity of all of
SFC's outstanding debt is in 2016, which creates significant
near-term refinancing risks. SFC is planning to issue new debt to
refinance 100% of the two senior unsecured notes in the near term.
Reduced refinancing risk via these issuances is an important
consideration in Fitch's ratings of SFC.
SFC's profitability ratios are good but with higher volatility than
peers. Consolidated net income has been affected by currency
retranslation losses of foreign operations and losses from Sagicor
Europe. SFC sold Sagicor Europe in 2013 and as of March 2015, the
company recognized $47.6 million of net losses and other
liabilities associated with the pre-2014 underwriting years and has
capped its potential future loss liability on the business for up
to an additional $20 million.
As a result of the lack of availability of long duration assets in
Barbados and Trinidad and Tobago, the company has a duration
mismatch, where liabilities are much longer than assets. Concern
over this duration mismatch is somewhat mitigated by the company's
use of a Canadian accounting framework that requires SFC to set
aside reserves to address the rollover risk associated with the
duration mismatch.
Customarily, holding company senior debt is notched down by one
from the IDR at a Recovery Rating of 'RR5(EXP)'. However, in the
case of SFC the IDR has been pulled down due to concerns over risks
tied to the company's business concentration in Barbados and
Jamaica, including transfer and convertibility (T&C) risks.
T&C exposure is somewhat mitigated by substantial assets held in
U.S. external accounts that is a source of debt service in the
event of adverse sovereign scenarios. While Fitch does not publish
a sovereign rating or a country ceiling for Barbados, Fitch does
maintain internal viewpoints that the agency considered in
establishing its rating on SFC. Fitch's sovereign rating for
Jamaica is 'B-' (local and foreign currency IDR) and the country
ceiling is 'B'. The current use of external accounts, which are
largely owned by non-Barbados subsidiaries, reduces much but not
all T&C exposure to Barbados, but T&C risks to Jamaica remain due
to the potential move back of funds into the Jamaican subsidiaries
and imposition of foreign exchange controls in an adverse Jamaica
scenario.
Thus, Jamaica's country ceiling of 'B' has been applied to SFC's
ratings. Further, the Positive Outlook on SFC's IDR is based on
the Positive Outlook Fitch has for Jamaica's sovereign ratings and
country ceiling. As a result, any future upgrade of Jamaica's
country ceiling, together with completion of the below noted
reorganization would trigger an upgrade of SFC's IDR to 'B+'.
The Positive Outlook is also based on Fitch view that SFC's
proposed reorganization plans as outlined in the Offering
Memorandum of the expected new debt issuance as a credit positive
in further reducing the exposure to T&C risk. The proposed
reorganization includes the redomiciliation of SFC, a
Barbados-based holding company, to an investment-grade
jurisdiction. It also includes a reorganization of the corporate
structure such that the non-Barbados Caribbean operating
subsidiaries, including those in Jamaica, are no longer rolled up
underneath the Barbados operating entity and instead held directly
by SFC. The reorganization is expected to be completed within the
next six months.
SFC is a Barbados-based financial holding company and leading
provider of insurance products and financial services in the
Caribbean region. It also provides insurance products in the U.S.
as well as banking and investment management services in Jamaica.
Primary insurance subsidiaries and the corresponding regions for
SFC include Sagicor Group Jamaica Ltd. (Jamaica and Cayman
Islands), Sagicor Life Inc. (Barbados and Trinidad and Tobago), and
Sagicor Life USA (U.S.). Aside from these main subsidiaries and
regions, the company also has insurance operations in many of the
Eastern Caribbean islands.
RATING SENSITIVITIES
Key rating triggers that could result in an upgrade of the ratings
for Sagicor Financial Corporation include:
-- A higher country ceiling of Jamaica, without any heightened
sovereign concerns in Barbados, together with successful
completion of the reorganization as outlined in the Offering
Memorandum;
-- A shift in country mix, including a significantly greater
percentage of operations and invested assets in countries
with higher sovereign ratings, such as the U.S. and Trinidad
and Tobago;
-- Improvements in key financial metrics, including
consolidated MCCSR above 250%, financial leverage below 30%,
and consolidated ROE above 10%.
Key rating triggers that could result in a downgrade include:
-- Perceived deterioration by Fitch in the economic
environments of Jamaica or Barbados, including a downgrade
in Sovereign rating and country ceiling of Jamaica;
-- Inability to term out a majority of debt maturing in 2016;
-- Deterioration in key financial metrics, including
consolidated MCCSR falling below 180% (with operating
leverage above 5x) and financial leverage exceeding 50% and
ROE below 5% on a sustained basis.
Fitch assigns these ratings with a Positive Outlook:
Sagicor Financial Corporation
-- IDR 'B'.
Sagicor Finance (2015) Limited
-- Senior unsecured notes 'B(EXP)/RR5(EXP)'.
In accordance with Fitch's policies the issuer appealed and
provided additional information to Fitch that resulted in a rating
action which is different than the original rating committee
outcome.
SAMUEL MORTON: Bank of Camden Wins Conditional Stay Relief
----------------------------------------------------------
Bankruptcy Judge Suzanne H. Bauknight of the United States
Bankruptcy Court for the Eastern District of Tennessee granted the
Bank of Camden's motion for relief from the automatic stay in the
bankruptcy cases of Samuel Robert Morton, Jr. and Sharon K. Morton,
Case No.: 3:15-BK-30892-SHB, (Bankr. E.D. Tenn.)
The Debtors executed a note payable to BankEast in the original
principal amount of $2,418,000.00 (First Note) on March 30, 2006.
The First Note is secured by real property located at 1506 Callahan
Drive, Knoxville, Tennessee, together with furniture, fixtures, and
equipment (Jubilee Center Property) through a Construction Deed of
Trust, Security Agreement, Assignment, Assignment of Leases and
Rents, and Fixture Filing and a Collateral Assignment of Rents,
Leases, Profits and Income.
The Debtors renewed the First Note in the principal amount of
$3,051,317.00 on November 1, 2007, followed by eight subsequent
modifications to increase the loan amount, extend the maturity
date, or both.
The Debtors also executed a note in the amount of $55,000.00
(Second Note) on September 30, 2009, which was likewise secured by
the Jubilee Center Property.
The Debtors filed their Chapter 11 case on March 24, 2015. As of
the petition date, the indebtedness on the First Note was
$4,434,166.95, and $29,271.94 was owed on the Second Note. Both
notes are held now by Apex Bank, formerly known as Bank of Camden,
by virtue of an Assignment of Deed of Trust and Other Loan
Documents from BankEast to U.S. Bank, effective January 27, 2012,
and a Bill of Sale and Assignment of Construction Deed of Trust,
Security Agreement, Assignment of Leases and Rents and Fixture
Filing from U.S. Bank to Bank of Camden, both dated December 11,
2014.
The Bank has an interest in cash collateral derived from rents on
the Jubilee Center Property, which houses approximately fourteen
tenants including a hair salon, a boutique, an alarm company, an
accountant, a dance studio, a dog groomer, a window company, two
photographers, a concrete company, National Branding Solutions, and
Debtors' wholly owned business, Jubilee Banquet Facility, LLC.
Debtors are permitted to use the cash collateral only in accordance
with the terms of an Order entered on May 18, 2015; the Agreed
Interim Order for Use of Bank of Camden's Cash Collateral entered
on June 19, 2015; and the Second Agreed Interim Order for Use of
Apex Bank's Cash Collateral entered on July 7, 2015, which extended
the "authorized period" during which Debtors may use the Bank's
cash collateral to the earlier of August 27, 2015, at 5:00 p.m. or
entry of the court's order resolving the Motion for Stay Relief.
In her Memorandum dated July 17, 2015 available at
http://is.gd/9KJlgwfrom Leagle.com, Judge Bauknight granted Bank
of Camden's motion for relief from the automatic stay. The court
noted, however, that it has discretion to condition the automatic
stay instead of lifting it outright." Judge Bauknight said the
stay will be modified and conditioned on the following:
(1) the Debtors must file a proposed plan of reorganization no
later than 90 days from the date of entry of the Order granting
Apex Bank's Motion for Stay Relief. Affording the Debtors an
opportunity to work with their newly hired counsel to propose a
plan offers them an opportunity to reorganize without prejudicing
them for the mistakes made during the course of the prior
representation, but also protects Apex Bank and all other creditors
by imposing such a deadline;
(2) the Debtors must obtain confirmation of a plan of
reorganization no later than November 30, 2015. In the event a plan
has not been confirmed by this date, the automatic stay will be
lifted as to Apex Bank to allow it to foreclose its liens
encumbering the Jubilee Center Property without further notice or
hearing;
(3) the Debtors shall provide Apex Bank, through its attorneys
or designated representative, copies of all bank statements and
rental revenues, together with its monthly operating reports, filed
with the court by the 15th day of each month;
(4) Effective beginning August 1, the Debtors shall collect
from JBF monthly rent of $6,500.00, and the Debtors shall be
allowed a management fee of 4% calculated on gross rents for the
Jubilee Center Property;
(5) With the increase in rents, the cash collateral of Apex
Bank will increase, resulting in the need for a determination of
whether the monthly adequate protection payment should increase.
This issue will be heard on August 13, 2015, at 10:00 a.m., with
Debtors' Motion for Modification of Second Agreed Interim Order for
Use of Apex Bank's Cash Collateral, filed July 15, 2015. The Cash
Collateral Orders will remain in effect until that time, and
Debtors must continue making all payments as required therein.
Notwithstanding, on motion of Apex Bank containing certification
that any of the conditions have not been met or that the value of
its collateral otherwise has been placed in jeopardy, and after
notice and an expedited hearing, the automatic stay may be modified
to allow Apex Bank to foreclose its lien encumbering the Jubilee
Center Property.
James H. Price, Esq. -- jhp123@sctriallawyers.com -- of Lacy, Price
& Wagner, PC serves as counsel for Debtors
Maurice K. Guinn, Esq. -- mkg@tennlaw.com -- of Gentry, Tipton &
McLemore, PC serves as counsel for Bank of Camden
SIGNAL INT'L: Has Interim OK to Obtain $2.5M in DIP Loans
---------------------------------------------------------
Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District
of Delaware gave Signal International, Inc., et al., interim
authority to obtain postpetition financing in an amount not to
exceed $2.5 million from the Teachers' Retirement System of
Alabama, and the Employees' Retirement System of Alabama.
The DIP Lenders committed to provide (i) $91 million of
postpetition, consisting of $20 million of new money financing and
a $70 million roll-up of the Debtors' entire prepetition first lien
debt.
The Debtors are also given interim authority to use cash collateral
securing their prepetition indebtedness.
The Final Hearing on the Motion will be held on Aug. 12, 2015, at
11:30 a.m., prevailing Eastern time. If any party-in-interest will
have an objection, that party may assert that objection on or
before Aug. 5.
About Signal International
Signal International Inc. -- http://www.signalint.com/-- primarily
engages in the business of offshore drilling rig overhaul, repair,
upgrade, and conversion, as well as new shipbuilding construction.
Additionally, Signal provides services to the general marine and
heavy fabrication markets for barges, power plants, and modular
construction.
Signal International, LLC ("SI LLC"), was organized on Dec. 6,
2002, as a limited liability company after acquiring the assets of
the Offshore Division of Friede Goldman Halter from bankruptcy. SI
Inc. was incorporated on Oct. 12, 2007, and began operations
with offshore fabrication and repair in Mississippi. Today,
Signal's corporate headquarters are in Mobile, Alabama, with
operations in Alabama and Mississippi, and a sales office in
Texas.
On Oct. 3, 2014, Signal International Texas, L.P., sold
substantially all of its assets to Westport Orange Shipyard, LLC,
in a partially seller-financed transaction for a total purchase
price of $35,900,000. As part of the transaction, Westport
provided a down payment of $7,000,000 and delivered a promissory
note in the principal amount of $28,900,000 to SI Texas due on or
before Oct. 3, 2019 (the "Texas Note").
On July 12, 2015, SI Inc. and its direct and indirect wholly owned
subsidiaries, including SI LLC, commenced cases under chapter 11 of
title 11 of the United States Code (Bankr. D. Del. Lead Case No.
15-11498).
The Debtors tapped Young Conaway Stargatt & Taylor LLP as
bankruptcy counsel, Hogan Lovells US LLP as general corporate
counsel, GGG Partners, LLC, as financial and restructuring
advisors, and Kurtzman Carson Consultants LLC as claims and
noticing agent.
Signal International Inc. estimated $10 million to $50 million in
assets and $50 million to $100 million in debt.
SOUTHERN PAIN: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Southern Pain Institute, P.C.
1930 W Wesley Rd NW
Atlanta, GA 30327-2022
Case No.: 15-11593
Nature of Business: Health Care
Chapter 11 Petition Date: July 24, 2015
Court: United States Bankruptcy Court
Northern District of Georgia (Newnan)
Judge: Hon. Homer W. Drake
Debtor's Counsel: Eric E. Thorstenberg, Esq.
ERIC THORSTENBERG
6065 Roswell Rd., NE, Suite 621
Atlanta, GA 30328
Tel: (404) 843-8491
Total Assets: $886,897
Total Liabilities: $2.3 million
The petition was signed by Anthony T. Clavo, Sr., CEO.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/ganb15-11593.pdf
SUNLAND INC: Saylor's Proof of Claim Disallowed
-----------------------------------------------
Bankruptcy Judge David T. Thuma of the United States Bankruptcy
Court for the District of New Mexico granted in part the Chapter 7
Trustee's motion for summary judgment that John L. Saylor's proof
of claim against debtor Sunland Inc. be disallowed.
Saylor is the President and owner of Saylor Investments, Inc. SII
and Saylor are creditors of the Debtor. SII and Saylor each
contracted to grow and sell peanuts to the Debtor.
The Bankruptcy Noticing Center (BNC) served a Notice of Chapter 7
Bankruptcy Case on October 10, 2013 on the creditor matrix. Notices
were addressed and mailed to SII and Saylor at their respective
addresses set out above. Saylor received the notice addressed to
SII at the Muleshoe Address, but did not receive the notice
addressed to him at the Farwell Address. Although Saylor knew the
Debtor had filed bankruptcy (because he received SII's notice, as
president of SII), he did not file a request for notice or inquire
why he had not received a notice addressed to him personally.
On March 13, 2014, the Debtor filed an amended Schedule E which,
inter alia, corrected Saylor's address to the Muleshoe Address. On
the same date the Debtor served on Saylor at the Muleshoe Address a
Notice of Bankruptcy Case, Meeting of Creditors, and Deadlines
Given to Parties. Included with this third notice was the notice of
bar date (which had passed by then).
On May 30, 2014, Saylor and SII filed proofs of claim for
$28,732.42 and $8,397, respectively. Both were signed by Saylor,
and both listed the Muleshoe, Texas address.
In his Memorandum Opinion dated July 17, 2015 available at
http://is.gd/0hPcmQfrom Leagle.com, Judge Thuma granted in part
the Chapter 7 Trustee's motion for summary judgment that John L.
Saylor's proof of claim be disallowed. He said the undisputed
facts in this case demonstrate that Saylor had actual notice of
both the bankruptcy case and the claims bar date, yet failed to
file a timely proof of claim. Saylor was afforded full due process.
Subordination of Saylor's claim pursuant to 11 U.S.C. Sec.
726(a)(3) is required, and the Court's equitable powers cannot be
exercised to extend the filing deadline. Fact issues remain,
however, about the documentation of Saylor's amended proof of
claim, so summary judgment on that issue will be denied.
About Sundland Inc.
Sunland Inc. produced and distributed peanuts, peanut butter, and
other nut products. The Company filed a voluntary Chapter 7
bankruptcy petition on Oct. 9, 2013, in the U.S. Bankruptcy Court
for the District of New Mexico (Bankr. D. N.M. Case No. 13-13301).
Clarke C. Coll serves as Chapter 7 Trustee.
In September 2012, the Company issued a voluntary recall of certain
products in connection with an outbreak of Salmonella Bredeney
potentially linked to its products. Recall information may be
found at http://is.gd/Rg4sMg
SUNWEST MANAGEMENT: Fraud Scheme Exceeds 2 Counts of Conviction
---------------------------------------------------------------
In the case captioned UNITED STATES OF AMERICA, v. JON MICHAEL
HARDER, Defendant, CASE NO. 3:12-CR-485-SI (D. Or.), Judge Michael
H. Simon of the United States District Court for the District of
Oregon found that the scope of Mr. Harder's scheme to defraud
exceeds the two counts of conviction to which defendant pleaded
guilty.
On January 8, 2015, Jon Michael Harder pleaded guilty to two counts
of a 56-count amended indictment, alleging mail fraud, wire fraud,
and unlawful monetary transactions in connection with the operation
of Sunwest Management, Inc. and its affiliated businesses.
In Phase I of Harder's sentencing proceeding, Judge Simon found the
scope of Harder's scheme to defraud exceeds the two counts of
conviction and that the relevant conduct includes all Sunwest
senior housing facility and senior housing development investments
sold by Harder, directly or indirectly by persons acting under his
control, supervision, or direction, to investors from January 1,
2006, through July 7, 2008, regardless of the specific form of
those investments.
Phase II of Harder's sentencing proceeding will begin on
November 16, 2015.
A full-text copy of Judge Simon's July 20, 2015 findings of fact
and conclusions is available at http://is.gd/L4ykyofrom
Leagle.com.
The United States of America is represented by:
Billy J. Williams, Esq.
ACTING UNITED STATES ATTORNEY
1000 S.W. Third Avenue, Suite 600
Portland, OR 97204
Tel: (503) 727-1000
-- and –-
Allan M. Garten, Esq.
Michelle Holman Kerin, Esq.
ASSISTANT UNITED STATES ATTORNEYS
1000 S.W. Third Avenue, Suite 600
Portland, OR 97204
Tel: (503) 727-1000
Jon Michael Harder is represented by:
Christopher J. Schatz, Esq.
ASSISTANT FEDERAL PUBLIC DEFENDER
101 S.W. Main Street, Suite 1700
Portland, OR 97204
Tel: (503) 326-2123
-- and –-
Robert B. Hamilton, Esq.
1001 S.W. Fifth Avenue, Suite 1100
Portland, OR 97204
Tel: (503) 222-2510
-- and –-
Emily E. Elison, Esq.
CASTLEBERRY & ELISON, P.C.
500 Yamhill Plaza Building, 815 S.W. Second Avenue
Portland, OR 97204
Tel: (503) 223-0011
About Sunwest Management
Founded in Oregon in 1991, Sunwest Management was one of the
largest private senior living providers in the U.S. In March 2009,
U.S. District Judge Michael Hogan appointed Michael Grassmueck --
founder and principal of Portland, Oregon-based Grassmueck Group, a
national firm that specializes in fiduciary and insolvency services
-- as receiver for the Company after the Securities and Exchange
Commission filed suit against Sunwest and former CEO Jon Harder,
alleging securities fraud.
Sunwest Management placed 10 assisted living centers -- two in
Oregon -- into Chapter 11 bankruptcy. Briarwood Retirement and
Assisted Living Community LLC, which owns a retirement center in
Springfield, and Century Fields Retirement and Assisted Living
Community LLC, which owns a center in Lebanon, filed for Chapter
11 protection on August 19, 2008. On Aug. 17, 2008, eight
Sunwest-affiliated LLCs filed for Chapter 11 bankruptcy protection
from creditors in Tennessee.
Sunwest was later renamed Stayton SW Assisted Living. As reported
by the Troubled Company Reporter on July 16, 2010, Judge Hogan
confirmed the plan of reorganization in the Chapter 11 proceedings
of Stayton. The plan provides for the sale of up to 149 senior
living facilities to a joint venture formed by Blackstone Real
Estate Advisors VI L.P., Emeritus Senior Living and Columbia
Pacific Advisors. The Blackstone/Emeritus joint venture acquired
the properties in exchange for cash, securities and debt valued at
$1.3 billion in cash.
Under the Plan, existing Sunwest investors were permitted to
receive either cash or securities in the new company, with a
choice between Class A preferred interests paying 6%, or up to 49%
in common interests in the joint venture. The reorganization plan
also provides for the creation of a Trustco entity to hold certain
non-senior living assets, such as apartments, office buildings and
bare land, and liquidate the assets over time for the benefit of
the estate's investors and creditors. The Receiver oversees
Trustco.
In August 2010, Stayton completed the sale of 132 senior living
facilities to the joint venture. The transaction was valued at
$1.2 billion.
In December 2010, the federal equity receiver in charge of former
Oregon-based senior living provider Sunwest Management announced a
40% initial distribution to investors and other claimants in the
Sunwest securities violation case and related Chapter 11
bankruptcy proceeding. Resources for the initial distribution
total $228 million and derive from a $1.2 billion real estate
transaction closed earlier this year, in which a joint venture led
by Blackstone Real Estate Advisors VI LP and Emeritus Senior Living
acquired 144 Sunwest properties in exchange for cash, securities
and assumption of debt.
SWIFT ENERGY: Moody's Affirms Caa1 CFR & Changes Outlook to Neg.
----------------------------------------------------------------
Moody's Investors Service affirmed Swift Energy Company's Caa1
Corporate Family Rating and its Caa2 senior unsecured notes rating,
while lowering Swift's Speculative Grade Liquidity rating to SGL-4
from SGL-3. The outlook is changed to negative from stable. These
actions were taken as a result of Swift's inability to close on a
new proposed first lien debt issuance, through which it had
intended to bolster its constrained liquidity position. The B2
rating on the proposed first lien debt transaction has been
withdrawn.
"Having been unable to raise incremental liquidity through a newly
proposed first lien term loan that did not close, Swift will labor
under constrained liquidity unless it is able to source liquidity
through alternative measures, which could be limited and time
consuming to transact," commented Andrew Brooks, Moody's Vice
President. "Following several years of minimal production growth,
liquidity constraints will pose a challenging test of Swift's
ability to generate production increases and execute on improved
capital productivity under difficult commodity price conditions."
Ratings Lowered:
Issuer: Swift Energy Company
Speculative Grade Liquidity Rating, Lowered to SGL-4 from SGL-3
Affirmations:
Issuer: Swift Energy Company
Probability of Default Rating, Affirmed Caa1-PD
Corporate Family Rating, Affirmed Caa1
Senior Unsecured Regular Bond/Debenture, Affirmed Caa2 (LGD 4)
changed from (LGD 5)
Outlook Actions:
Issuer: Swift Energy Company
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
Swift Energy's Caa1 CFR reflects recent minimal production growth,
which has contributed to increased relative debt leverage, its
unhedged exposure to weak oil and natural gas prices leading to a
deterioration in cash flow and tightening liquidity. The rating is
also a function of Swift's size and scale in terms of production
and proved reserves, and a production profile which is increasingly
trending towards natural gas largely in the Eagle Ford Shale.
However, chronically weak natural gas and the late-2014 drop in
liquids prices, exacerbated by the absence of commodity price
hedges beyond 2015's first quarter, prompted Swift to drop its
planned 2015 capital spending by about 70%, and with it, the
prospects of further sustainable production growth. The company
has guided to about a 10% production decline in 2015.
The SGL-4 Speculative Grade Liquidity rating reflects Moody's view
of weak liquidity into 2016. At March 31, $247 million was
outstanding under Swift's $375 million secured borrowing base
revolving credit facility. Effective May 1, Swift's interest
coverage covenant was amended, reducing its minimum coverage
requirement to 1.5x from 2.75x, however, even at this reduced
level, compliance could be tight by year-end. An additional $175
million of liquidity had been provided in 2014 through a joint
venture with PT Saka Energi Indonesia ("Saka") that conveyed a 36%
participating interest in Swift's Eagle Ford Fasken acreage to
Saka. Swift also continues to explore the potential sale of its
Central Louisiana assets, although efforts appear to have stalled
in a difficult market for asset sales. Should a sale materialize,
proceeds are expected to be used for debt reduction. Swift's next
upcoming debt maturity is the June 1, 2017 scheduled maturity date
of its $250 million 7.125% senior notes.
The Caa2 unsecured notes rating reflects the subordination of the
senior unsecured notes to Swift's secured revolving credit
facility. The size of the claims relative to Swift's outstanding
senior unsecured notes results in the notes being rated one notch
below the Caa1 CFR under Moody's LGD methodology.
The rating outlook is negative reflecting limited cash liquidity
with which to fund growth. Should Swift bolster its liquidity
through incremental financing or through asset sale proceeds, the
outlook could be returned to stable. Ratings could be downgraded
should further liquidity limitations arise, with available
liquidity (cash plus unused revolving credit availability) dropping
below $50 million or should interest coverage fall below 1.5x.
Should Swift rebuild its liquidity and increase production while
improving it leveraged full-cycle ratio (LFCR) to over 1.0x, and
sustain RCF to debt above 10%, a ratings upgrade could be
considered.
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.
Swift Energy Company is an independent E&P company headquartered in
Houston, Texas.
TRANS COASTAL: Files for Chapter 11 Bankruptcy Protection
---------------------------------------------------------
Trans Coastal Supply Company Inc filed for Chapter 11 bankruptcy
protection (Bankr. C.D. Ill. Case No. 15-71147) on July 23, 2015,
citing more than $28 million in unsecured debt. Court filings show
that the Company's trade debt included over $12.1 million to CHS
Inc, and $3 million to The Andersons Inc.
Karl Plume at Reuters relates that other creditors included ethanol
company Green Plains Inc and commodities trader Cargill Inc.
According to Reuters, the Company is currently facing civil
litigation in U.S. district courts in Illinois and New York from
two of its creditors: (i) Evergreen Line is suing for almost
$460,000 for unpaid ocean freight and other shipping-related
charges, (ii) and JD Heiskell Holdings LLC is suing for almost $1.6
million for failure and refusal to make payment on "tens of
thousands of tons of DDGS."
Headquartered in Decatur, Illinois, Trans Coastal Supply Company
Inc ships grain and other agricultural products like the ethanol
byproduct distillers dried grains (DDGS) in containers to overseas
buyers.
WANK ADAMS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Wank Adams Slavin Associates LLP
aka WASA Studio
740 Broadway, 4th Floor
New York, NY 10003
Case No.: 15-11952
Chapter 11 Petition Date: July 27, 2015
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Debtor's Counsel: Nancy Lynne Kourland, Esq.
ROSEN & ASSOCIATES, P.C.
747 Third Avenue
New York, NY 10017
Tel: (212) 223-1100
Fax: (212) 223-1102
Email: nkourland@rosenpc.com
Total Assets: $659,379 as of June 30, 2015
Total Liabilities: $1.5 million as of June 30, 2015
The petition was signed by Harry Spring, senior managing partner.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/nysb15-11952.pdf
WAR EAGLE: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: War Eagle Investments, LLC
PO Box 297
Gulf Shores, AL 36547
Case No.: 15-02344
Chapter 11 Petition Date: July 24, 2015
Court: United States Bankruptcy Court
Southern District of Alabama (Mobile)
Debtor's Counsel: James E. Bridges, III, Esq.
132 Cove Avenue
PO Box 297
Gulf Shores, AL 36547
Tel: 251-968-3025
Fax: 251-968-3140
Email: pete@bridgeslaw.org
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by James Bridges, III, manager/member.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
WINDLE FAMILY: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Windle Family Holdings, LLC
318 East Main Street
Clayton, NC 27520
Case No.: 15-04021
Chapter 11 Petition Date: July 24, 2015
Court: United States Bankruptcy Court
Eastern District of North Carolina
Judge: Hon. Stephani W. Humrickhouse
Debtor's Counsel: J.M. Cook, Esq.
J.M. COOK, P.A.
5886 Faringdon Place, Suite 100
Raleigh, NC 27609
Tel: 919 675-2411
Email: J.M.Cook@jmcookesq.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Stewart Windle, manager.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
Z'TEJAS SCOTTSDALE: Files for Ch. 11 to Sell to Cornbread
---------------------------------------------------------
Z'Tejas Scottsdale, LLC, et al., sought bankruptcy protection, with
a deal to sell substantially all assets to Cornbread Ventures, LP,
absent higher and better offers.
Beginning in 2014, the Debtors' liquidity position continued to
deteriorate, the Debtors struggled to meet their debt service
obligations under their prepetition credit agreements, which later
resulted in defaults under the Debtors' financing facilities.
During the past twelve months, the Debtors have explored available
restructuring alternatives as part of their overall turnaround
efforts. These efforts have included various operational
initiatives designed to increase operating performance and attempts
to locate a strategic partner to invest or lend additional money
into the Debtors or acquire the Debtors’ business operations as a
going concern.
Mastodon Ventures, Inc., has been marketing the Debtors' assets for
the year prior to the Petition Date. Mastodon contacted 108
potential targets and received 8 indications of interest from
potential acquirers. Mastodon will continue this marketing process
during the postpetition period. The Debtors expect to continue to
vigorously market their assets over the next 30 to 45 days in an
effort to garner higher and better bids.
The Debtors have entered into an asset purchase agreement with a
stalking horse bidder CBV. Absent higher and better offers, CBV
will purchase the assets in exchange for a credit bid of its
secured claim and postpetition financing claim, pay $2,338,572 in
cash, and assume certain liabilities. The cash proceeds will be
used to fund the estates in an amount sufficient to satisfy the
related cure costs relating to the assumption and assignment of
contracts and leases, the budgeted postpetition expenses and
post-closing wind-down costs.
The Debtors have filed a sale motion contemporaneously by which
they are seeking approval of procedures regarding a court
supervised Sec. 363 auction process for the sale of substantially
all of their assets.
Cornbread has agreed to provide up to $725,000 in cash to finance
the Chapter 11 case.
As of the Petition Date, the Debtors have outstanding debt
obligations in the aggregate principal amount of $9,225,214
consisting primarily of approximately (a) $5,931,552 in secured
debt under a first lien secured credit facility provided by
KarpReilly Investments, LLC, as successor to National Bank of
Arizona, (b) $663,662 that is secured by a lien and judgment
against the assets of Z'Tejas Chandler, LLC, pursuant to a loan
agreement currently held by Cornbread Ventures and (c) $2,650,000
owed to trade creditors and other vendors that hold unsecured
claims, inclusive of lease rejection claims but exclusive liability
with respect to outstanding gift cards.
First Day Motions
Aside from the sale motion, the Debtors on the Petition Date filed
motions to:
-- jointly administer their Chapter 11 cases;
-- obtain secured financing and use cash collateral;
-- maintain their bank accountants;
-- pay prepetition wages and benefits;
-- grant adequate assurance to utilities;
-- remit and pay sales and use taxes;
-- continue their customer programs;
-- reject certain unexpired leases; and
-- extend the deadline to file schedules and statements.
A copy of the affidavit in support of the first day motions is
available for free at:
http://bankrupt.com/misc/Z_Tejas_1st_Day_Affidavit.pdf
About Z'Tejas Scottsdale
Based in Scottsdale, Arizona, Z'Tejas Scottsdale, LLC, et al.,
operate 9 Z'Tejas, Z'Tejas Southwestern Grill and Taco Guild
restaurants within the United States. The restaurant chain was
founded in 1989 by Larry Foels and Guy Villavso. Z'Tejas boasts of
exceptional and innovative food and a unique look at each location
to provide a "non-chain feel". Five restaurants are in Arizona,
three are in Austin, Texas, and one in Costa Mesa, California. The
company has 300 full time employees and 425 part-time employees.
Z'Tejas Scottsdale and its affiliates sought Chapter 11 protection
(Bankr. D. Ariz. Lead Case No. 15-09178) in Phoenix on July 22,
2015. The cases are assigned to Judge Paul Sala.
The Debtors have tapped Nussbaum Gillis & Dinner, P.C., and
Pachulski Stang Ziehl & Jones LLP as attorneys, and Mastodon
Ventures, Inc., as investment banker.
The 11 U.S.C. Sec. 341(a) meeting of creditors is slated for Aug.
25, 2015.
Z'TEJAS SCOTTSDALE: Has $725,000 in Financing From Buyer
--------------------------------------------------------
Z'Tejas Scottsdale, LLC, et al., are asking the U.S. Bankruptcy
Court for the District of Arizona to enter interim and final orders
authorizing them to access from stalking horse bidder and secured
creditor Cornbread Ventures, LP, a senior secured postpetition term
loan financing of up to $725,000, of which $320,000 will be
available on an interim basis.
Cornbread's DIP financing matures on the earliest to occur of (i) a
sale of substantially all assets of the Debtors, (ii) a default,
and (iii) Dec. 31, 2015. There are no milestone requirements under
the DIP financing agreement.
The postpetition borrowings will bear interest at 12% per year.
The Debtors may use cash collateral in accordance with the budget.
As of the Petition Date, the Debtors have secured obligations of
(a) $5,931,552 in secured debt under a first lien secured credit
facility provided by KarpReilly Investments, LLC, as successor to
National Bank of Arizona, and (b) $663,662 that is secured by a
lien and judgment against the assets of Z'Tejas Chandler, LLC,
pursuant to a loan agreement currently held by Cornbread Ventures.
As a condition to their consent to the relief granted in the
proposed interim order authorizing access to financing and use of
cash collateral, Cornbread and KRI are entitled to adequate
protection in the form of replacement liens.
About Z'Tejas Scottsdale
Based in Scottsdale, Arizona, Z'Tejas Scottsdale, LLC, et al.,
operate 9 Z'Tejas, Z'Tejas Southwestern Grill and Taco Guild
restaurants within the United States. The restaurant chain was
founded in 1989 by Larry Foels and Guy Villavso. Z'Tejas boasts of
exceptional and innovative food and a unique look at each location
to provide a "non-chain feel". Five restaurants are in Arizona,
three are in Austin, Texas, and one in Costa Mesa, California. The
company has 300 full time employees and 425 part-time employees.
Z'Tejas Scottsdale and its affiliates sought Chapter 11 protection
(Bankr. D. Ariz. Lead Case No. 15-09178) in Phoenix on July 22,
2015. The cases are assigned to Judge Paul Sala.
The Debtors have tapped Nussbaum Gillis & Dinner, P.C., and
Pachulski Stang Ziehl & Jones LLP as attorneys, and Mastodon
Ventures, Inc., as investment banker.
The 11 U.S.C. Sec. 341(a) meeting of creditors is slated for Aug.
25, 2015.
Z'TEJAS SCOTTSDALE: Proposes Cornbread-Led Auction on Sept. 17
--------------------------------------------------------------
Z'Tejas Scottsdale, LLC, et al., are seeking approval from the U.S.
Bankruptcy Court for the District of Arizona of proposed bidding
procedures that contemplate the sale of all assets to Cornbread
Ventures, LP, absent higher and better offers.
Unless outbid at the auction, Cornbread, as stalking horse bidder,
will purchase substantially all assets to of the Debtors in
exchange of a credit bid in the amount of $1,388,662, cash in the
amount of $2,338,572, plus the assumption of certain liabilities.
The cash proceeds from purchase price will be used to fund the
estates in an amount sufficient to satisfy the related cure costs
relating to the assumption and assignment of contracts and leases,
the Debtors' budgeted postpetition expenses and post-closing wind
down costs.
Notwithstanding the extent of the Debtors' prepetition marketing
efforts (approximately one year), the Debtors intend to continue to
vigorously market their assets over the next 30 to 45 days in an
effort to garner higher and better bids.
The Debtors will entertain offers for the assets based on these
procedures:
* Any prospective bidder that wishes to participate in the
bidding process must submit an initial bid in the form of an
executed asset purchase agreement no later than Sept. 15, 2015
(prevailing Pacific time);
* Initial bids must provide for payment in cash at closing in an
initial minimum amount equal to the sum of at least: (1)
$3,727,324, plus (2) amount of the break-up fee and expense
reimbursement of $149,089, plus (3) an overbid amount of $150,000.
* Objections to the sale and the assumption and assignment of
leases and contracts be filed and served by Sept. 15, 2015 at 5:00
p.m. (Prevailing Arizona Time);
* If at least one qualified bid is received, then an auction
will be conducted on Sept. 17, 2015 at 10:00 a.m.;
* Only Cornbread and other qualified bidders may bid at the
auction;
* To the extent the proposed winning bidder at the auction is a
bidder other than Cornbread, any supplemental or further objections
to the sale to the proposed winning bidder based solely on such
alternative winning bidder's adequate assurance of future
performance will be filed by no later than Sept. 21, 2015 at 12:00
p.m. (Prevailing Arizona Time); and
* A hearing will be conducted on or about Sept. 25, 2015 to
consider the approval of the sale to the winning bidder and the
back-up bidder, if necessary, and to confirm the results of the
auction, if applicable.
If the Debtors sell the assets to another party, Cornbread will
receive a break-up fee equal to 149,089, which is 4% of the
purchase price. The break-up fee will be inclusive of any expenses
incurred by in preserving the going concern value of the purchased
assets used by the Debtors.
About Z'Tejas Scottsdale
Based in Scottsdale, Arizona, Z'Tejas Scottsdale, LLC, et al.,
operate 9 Z'Tejas, Z'Tejas Southwestern Grill and Taco Guild
restaurants within the United States. The restaurant chain was
founded in 1989 by Larry Foels and Guy Villavso. Z'Tejas boasts of
exceptional and innovative food and a unique look at each location
to provide a "non-chain feel". Five restaurants are in Arizona,
three are in Austin, Texas, and one in Costa Mesa, California. The
company has 300 full time employees and 425 part-time employees.
Z'Tejas Scottsdale and its affiliates sought Chapter 11 protection
(Bankr. D. Ariz. Lead Case No. 15-09178) in Phoenix on July 22,
2015. The cases are assigned to Judge Paul Sala.
The Debtors have tapped Nussbaum Gillis & Dinner, P.C., and
Pachulski Stang Ziehl & Jones LLP as attorneys, and Mastodon
Ventures, Inc., as investment banker.
The 11 U.S.C. Sec. 341(a) meeting of creditors is slated for Aug.
25, 2015.
[] Gov. John Kasich Blames Dishonest Brokers for 2008 Fin'l Crisis
------------------------------------------------------------------
Ohio Gov. John Kasich blamed Wall Street's virtual meltdown in 2008
on brokers "conning people into thinking they could buy homes that
they couldn't afford," Jack Torry at The Columbus Dispatch
reports.
Gov. Kasich, The Dispatch recalls, worked in a Columbus office of
Lehman Brothers, whose filing for Chapter 11 bankruptcy protection
on Sept. 15, 2008, caused the Dow Jones industrial average to drop
by more than 500 points in one day, sparking the worst recession
since the 1930s.
According to The Dispatch, Gov. Kasich said in an interview for
NBC's Meet the Press, "It was the packaging of all these mortgages.
It was investment banks doubling down on their investments. And
it was the balloon mortgages where you don't have to pay any
principal and all you do is pay interest."
[^] Large Companies With Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
ABSOLUTE SOFTWRE ABT CN 111.9 (5.5) (0.6)
ABSOLUTE SOFTWRE ALSWF US 111.9 (5.5) (0.6)
ABSOLUTE SOFTWRE OU1 GR 111.9 (5.5) (0.6)
AC SIMMONDS & SO ACSX US 1.4 (0.4) (1.5)
ADV MICRO DEVICE AMD* MM 3,381.0 (141.0) 1,052.0
ADVANCED EMISSIO OXQ1 GR 106.4 (46.1) (15.3)
ADVANCED EMISSIO ADES US 106.4 (46.1) (15.3)
ADVENT SOFTWARE AXQ GR 424.8 (50.1) (110.8)
ADVENT SOFTWARE ADVS US 424.8 (50.1) (110.8)
AEROJET ROCKETDY GCY GR 1,898.1 (95.6) 143.6
AEROJET ROCKETDY AJRD US 1,898.1 (95.6) 143.6
AIR CANADA ACEUR EU 11,581.0 (1,213.0) (95.0)
AIR CANADA ADH2 TH 11,581.0 (1,213.0) (95.0)
AIR CANADA ACDVF US 11,581.0 (1,213.0) (95.0)
AIR CANADA AC CN 11,581.0 (1,213.0) (95.0)
AIR CANADA ADH2 GR 11,581.0 (1,213.0) (95.0)
AK STEEL HLDG AKS* MM 4,556.3 (392.9) 949.0
ALLIANCE HEALTHC AIQ US 551.6 (88.9) 46.7
AMC NETWORKS-A AMCX US 4,049.4 (89.4) 597.5
AMC NETWORKS-A AMCX* MM 4,049.4 (89.4) 597.5
AMC NETWORKS-A 9AC GR 4,049.4 (89.4) 597.5
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 176.1 (21.6) (26.0)
ANGIE'S LIST INC 8AL GR 176.1 (21.6) (26.0)
ANGIE'S LIST INC 8AL TH 176.1 (21.6) (26.0)
ARCADIA BIOSCIEN 17D GR 19.4 (7.3) 0.3
ARCADIA BIOSCIEN RKDA US 19.4 (7.3) 0.3
ASPEN TECHNOLOGY AST GR 317.1 (26.8) (17.4)
ASPEN TECHNOLOGY AZPN US 317.1 (26.8) (17.4)
AUTOZONE INC AZ5 TH 8,032.4 (1,643.2) (742.6)
AUTOZONE INC AZOEUR EU 8,032.4 (1,643.2) (742.6)
AUTOZONE INC AZ5 GR 8,032.4 (1,643.2) (742.6)
AUTOZONE INC AZO US 8,032.4 (1,643.2) (742.6)
AVID TECHNOLOGY AVD GR 182.0 (344.7) (165.7)
AVID TECHNOLOGY AVID US 182.0 (344.7) (165.7)
AVINGER INC AVGR US 23.1 (16.1) 13.3
AVINTIV SPECIALT POLGA US 1,901.8 (12.6) 315.2
BARRACUDA NETWOR 7BM GR 400.4 (31.3) 36.9
BARRACUDA NETWOR CUDA US 400.4 (31.3) 36.9
BARRACUDA NETWOR CUDAEUR EU 400.4 (31.3) 36.9
BERRY PLASTICS G BP0 GR 5,214.0 (73.0) 758.0
BERRY PLASTICS G BERY US 5,214.0 (73.0) 758.0
BLUE BUFFALO PET BUFF US 423.0 (56.8) 235.4
BLUE BUFFALO PET B6B GR 423.0 (56.8) 235.4
BRINKER INTL EAT US 1,437.3 (32.1) (216.6)
BRINKER INTL BKJ GR 1,437.3 (32.1) (216.6)
BURLINGTON STORE BURL US 2,683.1 (30.4) 161.9
BURLINGTON STORE BUI GR 2,683.1 (30.4) 161.9
CABLEVISION SY-A CVCEUR EU 6,701.2 (5,022.6) 50.8
CABLEVISION SY-A CVY GR 6,701.2 (5,022.6) 50.8
CABLEVISION SY-A CVY TH 6,701.2 (5,022.6) 50.8
CABLEVISION SY-A CVC US 6,701.2 (5,022.6) 50.8
CABLEVISION-W/I 8441293Q US 6,701.2 (5,022.6) 50.8
CABLEVISION-W/I CVC-W US 6,701.2 (5,022.6) 50.8
CAMBIUM LEARNING ABCD US 154.9 (77.3) (19.9)
CARBYLAN THERAPE CBYL US 7.7 (9.4) (6.7)
CASELLA WASTE WA3 GR 654.4 (20.9) 4.9
CASELLA WASTE CWST US 654.4 (20.9) 4.9
CEDAR FAIR LP 7CF GR 2,005.9 (21.2) (74.4)
CEDAR FAIR LP FUN US 2,005.9 (21.2) (74.4)
CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1)
CHOICE HOTELS CHH US 661.1 (413.5) 175.4
CHOICE HOTELS CZH GR 661.1 (413.5) 175.4
CINCINNATI BELL CIB GR 1,733.0 (599.6) 46.3
CINCINNATI BELL CBB US 1,733.0 (599.6) 46.3
CLEAR CHANNEL-A C7C GR 6,179.8 (255.3) 410.7
CLEAR CHANNEL-A CCO US 6,179.8 (255.3) 410.7
CLIFFS NATURAL R CLF* MM 2,702.6 (1,782.1) 677.9
CODE REBEL CORP CDRB US 0.5 (1.6) (1.4)
COLLEGIUM PHARMA COLL US 5.1 (12.2) (5.9)
COMVERSE INC CNSI US 577.9 (7.2) 59.9
COMVERSE INC CM1 GR 577.9 (7.2) 59.9
CONNECTURE INC CNXR US 96.0 (33.2) (24.9)
CONNECTURE INC 2U7 GR 96.0 (33.2) (24.9)
CORIUM INTERNATI CORI US 62.7 (0.4) 35.9
CORIUM INTERNATI 6CU GR 62.7 (0.4) 35.9
CYAN INC YCN GR 112.1 (18.4) 56.9
CYAN INC CYNI US 112.1 (18.4) 56.9
DELEK LOGISTICS DKL US 332.6 (20.6) 11.8
DELEK LOGISTICS D6L GR 332.6 (20.6) 11.8
DIRECTV DTVEUR EU 24,301.0 (4,280.0) 482.0
DIRECTV DTV CI 24,301.0 (4,280.0) 482.0
DIRECTV DTV US 24,301.0 (4,280.0) 482.0
DIRECTV DIG1 GR 24,301.0 (4,280.0) 482.0
DOMINO'S PIZZA DPZ US 597.9 (1,245.7) 135.3
DOMINO'S PIZZA EZV TH 597.9 (1,245.7) 135.3
DOMINO'S PIZZA EZV GR 597.9 (1,245.7) 135.3
DUN & BRADSTREET DB5 GR 2,027.7 (1,201.3) (276.7)
DUN & BRADSTREET DB5 TH 2,027.7 (1,201.3) (276.7)
DUN & BRADSTREET DNB1EUR EU 2,027.7 (1,201.3) (276.7)
DUN & BRADSTREET DNB US 2,027.7 (1,201.3) (276.7)
DUNKIN' BRANDS G 2DB TH 3,358.7 (87.9) 269.5
DUNKIN' BRANDS G 2DB GR 3,358.7 (87.9) 269.5
DUNKIN' BRANDS G DNKN US 3,358.7 (87.9) 269.5
DURATA THERAPEUT DRTX US 82.1 (16.1) 11.7
DURATA THERAPEUT DRTXEUR EU 82.1 (16.1) 11.7
DURATA THERAPEUT DTA GR 82.1 (16.1) 11.7
EDGEN GROUP INC EDG US 883.8 (0.8) 409.2
EOS PETRO INC EOPT US 1.2 (28.0) (29.1)
EXELIXIS INC EX9 TH 282.9 (146.8) 66.4
EXELIXIS INC EXEL US 282.9 (146.8) 66.4
EXELIXIS INC EXELEUR EU 282.9 (146.8) 66.4
EXELIXIS INC EX9 GR 282.9 (146.8) 66.4
FENIX PARTS INC 9FP GR 0.9 (1.9) (1.9)
FENIX PARTS INC FENX US 0.9 (1.9) (1.9)
FERRELLGAS-LP FGP US 1,592.9 (103.4) 23.7
FERRELLGAS-LP FEG GR 1,592.9 (103.4) 23.7
FREESCALE SEMICO FSL US 3,165.0 (3,173.0) 1,257.0
FREESCALE SEMICO 1FS TH 3,165.0 (3,173.0) 1,257.0
FREESCALE SEMICO FSLEUR EU 3,165.0 (3,173.0) 1,257.0
FREESCALE SEMICO 1FS GR 3,165.0 (3,173.0) 1,257.0
GAMING AND LEISU 2GL GR 2,552.5 (125.5) 1.1
GAMING AND LEISU GLPI US 2,552.5 (125.5) 1.1
GARDA WRLD -CL A GW CN 1,401.9 (325.2) 39.5
GARTNER INC IT US 1,789.4 (139.5) (420.1)
GARTNER INC GGRA GR 1,789.4 (139.5) (420.1)
GENESIS HEALTHCA GEN US 6,031.4 (205.5) 209.3
GENESIS HEALTHCA SH11 GR 6,031.4 (205.5) 209.3
GENTIVA HEALTH GHT GR 1,225.2 (285.2) 130.0
GENTIVA HEALTH GTIV US 1,225.2 (285.2) 130.0
GLAUKOS CORP GKOS US 28.3 (4.4) (4.9)
GLAUKOS CORP 6GJ GR 28.3 (4.4) (4.9)
GLG PARTNERS INC GLG US 400.0 (285.6) 156.9
GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9
GOLD RESERVE INC GRZ CN 17.9 (24.6) (35.0)
GOLD RESERVE INC GDRZF US 17.9 (24.6) (35.0)
GOLD RESERVE INC GOD GR 17.9 (24.6) (35.0)
GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5
GREENSHIFT CORP VD4B GR 1.3 (40.7) (39.9)
GYMBOREE CORP/TH GYMB US 1,206.6 (352.8) 30.7
HCA HOLDINGS INC HCAEUR EU 31,288.0 (6,222.0) 1,958.0
HCA HOLDINGS INC 2BH GR 31,288.0 (6,222.0) 1,958.0
HCA HOLDINGS INC 2BH TH 31,288.0 (6,222.0) 1,958.0
HCA HOLDINGS INC HCA US 31,288.0 (6,222.0) 1,958.0
HD SUPPLY HOLDIN 5HD GR 6,321.0 (498.0) 1,400.0
HD SUPPLY HOLDIN HDS US 6,321.0 (498.0) 1,400.0
HERBALIFE LTD HLF US 2,388.9 (301.2) 259.3
HERBALIFE LTD HLFEUR EU 2,388.9 (301.2) 259.3
HERBALIFE LTD HOO QT 2,388.9 (301.2) 259.3
HERBALIFE LTD HOO GR 2,388.9 (301.2) 259.3
HOVNANIAN-A-WI HOV-W US 2,517.0 (146.3) 1,516.6
HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8)
IEG HOLDINGS COR IEGH US - (3.8) (0.6)
IHEARTMEDIA INC IHRT US 13,581.9 (10,153.7) 683.9
INCYTE CORP ICY GR 862.6 (41.4) 466.6
INCYTE CORP INCY US 862.6 (41.4) 466.6
INCYTE CORP INCYEUR EU 862.6 (41.4) 466.6
INCYTE CORP ICY TH 862.6 (41.4) 466.6
INFOR US INC LWSN US 6,778.1 (460.0) (305.9)
INVENTIV HEALTH VTIV US 2,154.4 (613.8) 84.5
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 1,297.2 (638.8) (87.0)
JUST ENERGY GROU 1JE GR 1,297.2 (638.8) (87.0)
JUST ENERGY GROU JE US 1,297.2 (638.8) (87.0)
KEMPHARM INC 1GD GR 14.1 (26.1) 6.3
KEMPHARM INC KMPH US 14.1 (26.1) 6.3
L BRANDS INC LTD QT 6,638.0 (606.0) 927.0
L BRANDS INC LB US 6,638.0 (606.0) 927.0
L BRANDS INC LBEUR EU 6,638.0 (606.0) 927.0
L BRANDS INC LTD TH 6,638.0 (606.0) 927.0
L BRANDS INC LTD GR 6,638.0 (606.0) 927.0
L BRANDS INC LB* MM 6,638.0 (606.0) 927.0
LANTHEUS HOLDING LNTH US 248.7 (240.5) 37.4
LANTHEUS HOLDING 0L8 GR 248.7 (240.5) 37.4
LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9
LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9
LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9
LEE ENTERPRISES LEE US 779.6 (165.1) (20.2)
LORILLARD INC LLV GR 4,154.0 (2,134.0) 1,135.0
LORILLARD INC LLV TH 4,154.0 (2,134.0) 1,135.0
LORILLARD INC LO US 4,154.0 (2,134.0) 1,135.0
MAJESCOR RESOURC MJXEUR EU 0.1 (3.2) (3.2)
MANNKIND CORP NNF1 GR 360.0 (97.0) (222.5)
MANNKIND CORP MNKDEUR EU 360.0 (97.0) (222.5)
MANNKIND CORP NNF1 TH 360.0 (97.0) (222.5)
MANNKIND CORP MNKD US 360.0 (97.0) (222.5)
MARRIOTT INTL-A MAQ TH 6,803.0 (2,537.0) (1,202.0)
MARRIOTT INTL-A MAR US 6,803.0 (2,537.0) (1,202.0)
MARRIOTT INTL-A MAQ GR 6,803.0 (2,537.0) (1,202.0)
MARRIOTT INTL-A MAQ QT 6,803.0 (2,537.0) (1,202.0)
MCBC HOLDINGS IN MCFT US 91.6 (44.8) (38.2)
MDC COMM-W/I MDZ/W CN 1,640.1 (196.6) (284.0)
MDC PARTNERS-A MDZ/A CN 1,640.1 (196.6) (284.0)
MDC PARTNERS-A MD7A GR 1,640.1 (196.6) (284.0)
MDC PARTNERS-A MDCA US 1,640.1 (196.6) (284.0)
MDC PARTNERS-EXC MDZ/N CN 1,640.1 (196.6) (284.0)
MERITOR INC MTOR US 2,317.0 (570.0) 268.0
MERITOR INC AID1 GR 2,317.0 (570.0) 268.0
MERRIMACK PHARMA MP6 GR 127.0 (128.8) (4.4)
MERRIMACK PHARMA MACK US 127.0 (128.8) (4.4)
MICHAELS COS INC MIK US 1,922.7 (2,031.3) 471.7
MICHAELS COS INC MIM GR 1,922.7 (2,031.3) 471.7
MONEYGRAM INTERN MGI US 4,578.9 (261.8) (45.4)
MOODY'S CORP MCOEUR EU 4,999.5 (103.4) 1,939.2
MOODY'S CORP DUT TH 4,999.5 (103.4) 1,939.2
MOODY'S CORP DUT GR 4,999.5 (103.4) 1,939.2
MOODY'S CORP DUT QT 4,999.5 (103.4) 1,939.2
MOODY'S CORP MCO US 4,999.5 (103.4) 1,939.2
MORGANS HOTEL GR MHGC US 532.4 (246.2) 31.0
MORGANS HOTEL GR M1U GR 532.4 (246.2) 31.0
MOXIAN CHINA INC MOXC US 9.5 (6.4) (13.7)
MPG OFFICE TRUST 1052394D US 1,280.0 (437.3) -
NATIONAL CINEMED XWM GR 985.6 (219.8) 63.5
NATIONAL CINEMED NCMI US 985.6 (219.8) 63.5
NAVISTAR INTL NAV US 6,925.0 (4,744.0) 770.0
NAVISTAR INTL IHR TH 6,925.0 (4,744.0) 770.0
NAVISTAR INTL IHR GR 6,925.0 (4,744.0) 770.0
NEFF CORP-CL A NEFF US 634.4 (202.7) (12.8)
NEW ENG RLTY-LP NEN US 175.7 (29.1) -
NII HOLDINGS INC NIHD US 4,897.0 (2,504.0) (68.7)
NII HOLDINGS INC NJJA GR 4,897.0 (2,504.0) (68.7)
NORTHWEST BIO NBYA GR 49.4 (70.7) (86.3)
NORTHWEST BIO NWBO US 49.4 (70.7) (86.3)
OCATA THERAPEUTI T2N1 GR 4.9 (2.1) (0.3)
OCATA THERAPEUTI OCAT US 4.9 (2.1) (0.3)
OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0)
OOMA INC OOMA US 33.9 (8.3) (6.0)
PALM INC PALM US 1,007.2 (6.2) 141.7
PBF LOGISTICS LP 11P GR 402.3 (112.0) 30.1
PBF LOGISTICS LP PBFX US 402.3 (112.0) 30.1
PHILIP MORRIS IN PM US 32,713.0 (11,798.0) (1,614.0)
PHILIP MORRIS IN PM FP 32,713.0 (11,798.0) (1,614.0)
PHILIP MORRIS IN 4I1 GR 32,713.0 (11,798.0) (1,614.0)
PHILIP MORRIS IN 4I1 TH 32,713.0 (11,798.0) (1,614.0)
PHILIP MORRIS IN PM1EUR EU 32,713.0 (11,798.0) (1,614.0)
PHILIP MORRIS IN PM1 TE 32,713.0 (11,798.0) (1,614.0)
PHILIP MORRIS IN PM1CHF EU 32,713.0 (11,798.0) (1,614.0)
PHILIP MORRIS IN PMI SW 32,713.0 (11,798.0) (1,614.0)
PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9)
PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9)
PLY GEM HOLDINGS PG6 GR 1,231.9 (150.1) 241.4
PLY GEM HOLDINGS PGEM US 1,231.9 (150.1) 241.4
POLYMER GROUP-B POLGB US 1,901.8 (12.6) 315.2
PROTALEX INC PRTX US 1.0 (12.6) 0.4
PROTECTION ONE PONE US 562.9 (61.8) (7.6)
PURETECH HEALTH PRTC LN - - -
PURETECH HEALTH PRTCGBX EU - - -
QUALITY DISTRIBU QDZ GR 417.9 (26.9) 110.6
QUALITY DISTRIBU QLTY US 417.9 (26.9) 110.6
QUINTILES TRANSN Q US 3,236.7 (612.3) 778.1
QUINTILES TRANSN QTS GR 3,236.7 (612.3) 778.1
RAPID7 INC R7S GR 79.4 (42.0) (14.6)
RAPID7 INC RPD US 79.4 (42.0) (14.6)
RAYONIER ADV RYQ GR 1,281.8 (52.6) 179.2
RAYONIER ADV RYAM US 1,281.8 (52.6) 179.2
RE/MAX HOLDINGS RMAX US 362.5 (0.2) 41.0
RE/MAX HOLDINGS 2RM GR 362.5 (0.2) 41.0
REGAL ENTERTAI-A RGC US 2,484.4 (911.5) (118.6)
REGAL ENTERTAI-A RGC* MM 2,484.4 (911.5) (118.6)
REGAL ENTERTAI-A RETA GR 2,484.4 (911.5) (118.6)
RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4)
RENTPATH INC PRM US 208.0 (91.7) 3.6
REVLON INC-A REV US 1,873.7 (658.9) 315.1
REVLON INC-A RVL1 GR 1,873.7 (658.9) 315.1
RURAL/METRO CORP RURL US 303.7 (92.1) 72.4
RYERSON HOLDING 7RY GR 1,903.2 (135.0) 706.3
RYERSON HOLDING RYI US 1,903.2 (135.0) 706.3
SALLY BEAUTY HOL S7V GR 2,134.9 (261.0) 766.9
SALLY BEAUTY HOL SBH US 2,134.9 (261.0) 766.9
SBA COMM CORP-A SBJ GR 7,527.3 (1,036.8) 38.5
SBA COMM CORP-A SBACEUR EU 7,527.3 (1,036.8) 38.5
SBA COMM CORP-A SBJ QT 7,527.3 (1,036.8) 38.5
SBA COMM CORP-A SBJ TH 7,527.3 (1,036.8) 38.5
SBA COMM CORP-A SBAC US 7,527.3 (1,036.8) 38.5
SCIENTIFIC GAM-A SGMS US 9,703.4 (189.4) 686.9
SCIENTIFIC GAM-A TJW GR 9,703.4 (189.4) 686.9
SEARS HOLDINGS SEE TH 13,290.0 (1,182.0) 24.0
SEARS HOLDINGS SEE QT 13,290.0 (1,182.0) 24.0
SEARS HOLDINGS SEE GR 13,290.0 (1,182.0) 24.0
SEARS HOLDINGS SHLD US 13,290.0 (1,182.0) 24.0
SILVER SPRING NE SSNI US 528.2 (94.3) (10.2)
SILVER SPRING NE 9SI TH 528.2 (94.3) (10.2)
SILVER SPRING NE 9SI GR 528.2 (94.3) (10.2)
SIRIUS XM CANADA XSR CN 297.1 (132.8) (177.9)
SIRIUS XM CANADA SIICF US 297.1 (132.8) (177.9)
SPORTSMAN'S WARE SPWH US 305.8 (32.8) 77.8
SPORTSMAN'S WARE 06S GR 305.8 (32.8) 77.8
STINGRAY - SUB V RAY/A CN 128.2 (17.8) (41.0)
STINGRAY DIG-VSV RAY/B CN 128.2 (17.8) (41.0)
SUPERVALU INC SJ1 GR 4,485.0 (636.0) 167.0
SUPERVALU INC SVU US 4,485.0 (636.0) 167.0
SUPERVALU INC SJ1 TH 4,485.0 (636.0) 167.0
SYNERGY PHARMACE SGYP US 194.8 (24.7) 163.1
SYNERGY PHARMACE S90 GR 194.8 (24.7) 163.1
SYNERGY PHARMACE SGYPEUR EU 194.8 (24.7) 163.1
SYNTHETIC BIOLOG SFYB TH 13.7 (1.6) (1.7)
SYNTHETIC BIOLOG SYN US 13.7 (1.6) (1.7)
THERAVANCE THRX US 488.7 (260.1) 251.4
THERAVANCE HVE GR 488.7 (260.1) 251.4
THRESHOLD PHARMA NZW1 GR 88.0 (19.9) 53.1
THRESHOLD PHARMA THLD US 88.0 (19.9) 53.1
TRANSDIGM GROUP T7D GR 7,226.2 (1,326.2) 853.8
TRANSDIGM GROUP TDG US 7,226.2 (1,326.2) 853.8
TRINET GROUP INC TN3 GR 1,620.2 (15.1) 15.2
TRINET GROUP INC TNETEUR EU 1,620.2 (15.1) 15.2
TRINET GROUP INC TN3 TH 1,620.2 (15.1) 15.2
TRINET GROUP INC TNET US 1,620.2 (15.1) 15.2
UNISYS CORP USY1 TH 2,163.6 (1,455.9) 177.2
UNISYS CORP UISEUR EU 2,163.6 (1,455.9) 177.2
UNISYS CORP USY1 GR 2,163.6 (1,455.9) 177.2
UNISYS CORP UIS US 2,163.6 (1,455.9) 177.2
UNISYS CORP UIS1 SW 2,163.6 (1,455.9) 177.2
UNISYS CORP UISCHF EU 2,163.6 (1,455.9) 177.2
VENOCO INC VQ US 596.0 (31.1) 52.2
VERISIGN INC VRS TH 2,570.7 (994.3) (15.0)
VERISIGN INC VRS GR 2,570.7 (994.3) (15.0)
VERISIGN INC VRSN US 2,570.7 (994.3) (15.0)
VERIZON TELEMATI HUTC US 110.2 (101.6) (113.8)
VERSEON CORP VSN LN - - -
VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3)
WEIGHT WATCHERS WTW US 1,446.4 (1,385.2) (260.9)
WEIGHT WATCHERS WW6 TH 1,446.4 (1,385.2) (260.9)
WEIGHT WATCHERS WW6 GR 1,446.4 (1,385.2) (260.9)
WEIGHT WATCHERS WTWEUR EU 1,446.4 (1,385.2) (260.9)
WEST CORP WSTC US 3,546.2 (647.7) 247.3
WEST CORP WT2 GR 3,546.2 (647.7) 247.3
WESTERN REFINING WR2 GR 434.0 (27.4) 71.5
WESTERN REFINING WNRL US 434.0 (27.4) 71.5
WESTMORELAND COA WME GR 1,829.7 (388.7) 59.0
WESTMORELAND COA WLB US 1,829.7 (388.7) 59.0
WINGSTOP INC EWG GR 114.1 (54.0) (4.6)
WINGSTOP INC WING US 114.1 (54.0) (4.6)
WINMARK CORP GBZ GR 45.3 (41.5) 11.5
WINMARK CORP WINA US 45.3 (41.5) 11.5
WYNN RESORTS LTD WYR GR 9,151.7 (147.2) 1,135.3
WYNN RESORTS LTD WYR TH 9,151.7 (147.2) 1,135.3
WYNN RESORTS LTD WYNN US 9,151.7 (147.2) 1,135.3
WYNN RESORTS LTD WYNNCHF EU 9,151.7 (147.2) 1,135.3
WYNN RESORTS LTD WYNN* MM 9,151.7 (147.2) 1,135.3
WYNN RESORTS LTD WYNN SW 9,151.7 (147.2) 1,135.3
XACTLY CORP XT4Y GR 52.7 (25.4) (6.8)
XACTLY CORP XTLY US 52.7 (25.4) (6.8)
XERIUM TECHNOLOG XRM US 561.0 (102.9) 81.5
XERIUM TECHNOLOG TXRN GR 561.0 (102.9) 81.5
YRC WORLDWIDE IN YEL1 GR 1,966.2 (479.7) 148.7
YRC WORLDWIDE IN YEL1 TH 1,966.2 (479.7) 148.7
YRC WORLDWIDE IN YRCW US 1,966.2 (479.7) 148.7
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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.
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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 ***