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/raid1/www/Hosts/bankrupt/TCR_Public/150811.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, August 11, 2015, Vol. 19, No. 223 Headlines ACE TRACK: ValuePart's Bid to Stay Infringement Suit Granted ADAMIS PHARMACEUTICALS: Posts $3.6 Million Net Loss for Q2 AE CONCRETE: Files Bankr. in Ontario; Creditors Meeting on Aug. 24 AEMETIS INC: Posts $6.3 Million Net Loss for Second Quarter ALEXZA PHARMACEUTICALS: Incurs $12.4 Million Net Loss in Q2 ALLIED NEVADA: Seeks to Disband Equity Committee ALLISON TRANSMISSION: Fitch Hikes Issuer Default Ratings to 'BB' ALPHA NATURAL: Has Interim Nod to Obtain Financing From Citigroup AMERICAN BANCORPORATION: Carl Marks Acted as Advisor on Sale ANACOR PHARMACEUTICALS: Reports 2nd Qtr. 2015 Financial Results APPLIED MINERALS: Incurs $2.7 Million Net Loss in Second Quarter ARCH COAL: Dispute with Senior Lenders Puts Debt Plan at Risk ARICENT TECHNOLOGIES: Moody's Retains B2 CFR on $180MM Acquisition ASCENT RESOURCES: Moody's Lowers CFR to 'Caa2', Outlook Negative ASHER INVESTMENT: Court Dismisses Ch. 11 Case ATLANTIC & PACIFIC: Faces Objections to Store Sales and Closings ATLANTIC & PACIFIC: Urstadt Biddle Buys Harrison Shopping Center BAHA MAR: Can Appeal Rejection of Recognition of Ch.11 Proceedings BAXANO SURGICAL: Court Amends Final DIP Order BUILDERS FIRSTSOURCE: Posts $3.5 Million Net Income in Q2 CAESARS ENTERTAINMENT: Examiner to Issue Findings Later This Year CAESARS ENTERTAINMENT: Reports Second Quarter 2015 Results CAN AM DEVELOPMENT: Case Summary & 4 Largest Unsecured Creditors CANAL ASPHALT: CL Consulting Reserves Right to Cash Use Bid CARLOS CASTILLO: Bank's Bid for Summary Judgment Granted CENTRAL ENERGY: Incurs $667,000 Net Loss in Second Quarter CHROMCRAFT REVINGTON: To Be Liquidated by Ch. 7 Trustee COCO BEACH GOLF: U.S. Trustee Objects to Golf Course Sale COMMUNICATIONS SALES: Moody's Lowers Corp. Family Rating to 'B2' CORPORATE RESOURCE: Files Schedules of Assets and Liabilities CORPORATE RESOURCE: Wells Fargo Reserves Right to Cash Use Bid COYNE INT'L: Can Employ Rust Consulting as Claims Agent COYNE INT'L: Has Interim Authority to Obtain DIP Loan from NXT COYNE INT'L: Has Interim OK to Pay $650K to Critical Vendors COYNE INT'L: Has Until Aug. 28, 2015 to File Schedules COYNE INT'L: Nov. 16, 2015 Fixed as General Claims Bar Date CRAIG WALKER: Files for Ch 11; Wells Fargo Wants Case Dismissed CTP TRANSPORTATION: S&P Puts 'B+' CCR on CreditWatch Negative DORAL FINANCIAL: Files Bankruptcy Rule 2015.3 Report DOWLING COLLEGE: S&P Cuts 1996/2002 Bond Ratings on Missed Payments DPL INC: Moody's Affirms Ba3 Sr. Unsecured Long Term Debt Rating DUFF & PHELPS: S&P Affirms 'B' CCR, Outlook Remains Stable EL PASO CHILDREN'S: Oct. 30 Hearing on Bid to Use Cash Collateral ERG INTERMEDIATE: Files Bankruptcy Rule 2015.3 Report ESCALERA RESOURCES: Enters Into Forbearance Agreement FAMILY CHRISTIAN: Most Creditors Favor Sale, Attorney Says FILMED ENTERTAINMENT: Case Summary & 20 Top Unsecured Creditors FILMED ENTERTAINMENT: Files for Ch. 11 Protection FJK PROPERTIES: Files Bankruptcy Rule 2015.3 Report FRAC SPECIALISTS: Agrees to Additional Adequate Protection for CNB FRAC SPECIALISTS: PCLC Wants Stay Lifted to Repossess Equipment GENERAL NUTRITION: Moody's Raises CFR to Ba3, Outlook Positive GILBERT HOSPITAL: Lays Off Florence Hospital Administrative Staff GOLDEN COUNTY: $379,000 in Claims Switched Hands in July 2015 GOOD TIME STORES: Voluntary Chapter 11 Case Summary GOSPEL LIGHT: Case Summary & 20 Largest Unsecured Creditors GT ADVANCED: Files Bankruptcy Rule 2015.3 Report HOLMES TESTING: Case Summary & 20 Largest Unsecured Creditors ICONIX BRAND: S&P Puts 'B+' CCR on CreditWatch Negative IMPERIAL METALS: S&P Raises CCR to 'CCC+', Outlook Stable J & M VALLEY: Case Summary & 7 Largest Unsecured Creditors JBI LLC: Case Summary & 6 Largest Unsecured Creditors JTS LLC: Files Schedules of Assets and Liabilities JW RESOURCES: Gets Final Approval to Use $2-Mil. DIP Loan KRONOS ACQUISITION: S&P Assigns Prelim. 'B-' Corp. Credit Rating LAURA GENS: U.S. Trustee's Bid to Dismiss Ch. 11 Case Granted LIGHTSQUARED INC: District Court Throws Out Ex-CEO's Plan Appeal LONESTAR GEOPHYSICAL: Wants to Hire Deloitte Tax as Accountant LUCA INTERNATIONAL: Files for Chapter 11 to Sell Assets LUCA INTERNATIONAL: Proposes $2MM DIP Loan from Schumann/Steier LUCA INTERNATIONAL: Proposes to Pay $214,000 to Critical Vendors LUCA INTERNATIONAL: Seeks to Reject 3 Leases METROPOLITAN PIER: Skips Debt-Fund Payment Due to Budget MG GLOBAL: Supplemental Admin. Claims Bar Date Set for Sept. 4 MGM RESORTS: Posts $97.4 Million Net Income for Second Quarter MIDSTATES PETROLEUM: Incurs $598 Million Net Loss in Q2 MILLENNIUM HEALTH: Faces Humana Damages Claim MOBILESMITH INC: Incurs $1.8 Million Net Loss in Second Quarter MONAKER GROUP: Posts $2.7 Million Net Loss for May 31 Quarter MOUNTAINEER GAS: Fitch Affirms 'BB+' LT Issuer Default Rating MTL PUBLISHING: S&P Affirms 'B+' Corp. Credit Rating NAKED BRAND: Amends 6% Senior Secured Convertible Debentures NAKED BRAND: Notifies FINRA of Reverse Common Stock Split NAKED BRAND: Receives $2.3 Million From Warrant Exercise NATIONAL CINEMEDIA: Reports Results for Fiscal 2nd Quarter 2015 NAVISTAR INTERNATIONAL: Hotchkis and Wiley Reports 10.4% Stake NEW YORK MILITARY: Town Wants Access to Sale Documents NIPPERS BEACH: Files for Chapter 11 Bankruptcy Protection OAKFABCO INC: Case Summary & 20 Largest Unsecured Creditors OAKFABCO INC: Files for Chapter 11 to Resolve Asbestos Claims OAKFABCO INC: Wants Until September to File Schedules ONE SOURCE: Caterpillar Fin'l Seeks Additional Adequate Protection OVERSEAS SHIPHOLDING: Investors Settle Lawsuit with Execs, Others PATRIOT COAL: Hirschler Fleischer Files Rule 2019 Statement PATRIOT COAL: Sierra Liquidity Acquires $11,000 Trade Claim PLUG POWER: Posts $9.2 Million Net Loss for Second Quarter PMC MARKETING: San Sebastian's Bid to Dismiss Clawback Suit Granted QUALITY DISTRIBUTION: Reports $2.1 Million Net Income for Q2 QUANTUM CORP: Posts $10.7 Million Net Loss for First Quarter QUICKSILVER RESOURCES: Bankruptcy Filing in Delaware Irks Judge RADIOSHACK CORP: Bankruptcy Filing in Delaware Irks Judge RESPONSE GENETICS: Case Summary & 20 Largest Unsecured Creditors RICE BUILDING: Case Summary & 2 Largest Unsecured Creditors SABINE OIL: Has Authority to Hire Prime Clerk as Claims Agent SABINE PASS: Amends Q2 Form 10-Q for Additional Disclosure SAGITTARIUS RESTAURANTS: S&P Affirms Then Withdraws 'B+' CCR SCIENTIFIC GAMES: Incurs $102.2-Mil. Net Loss in Second Quarter SNOWFLAKE COMMUNITY: Files Bankruptcy Rule 2015.3 Report SPIG INDUSTRY: Claims Bar Date Set for October 9 SPRINGLEAF HOLDINGS: Moody's Continues to Review 'B2' CFR STANDARD REGISTER: Changes Corporate Name After Sale STANDARD REGISTER: Taylor Completes Acquisition of Assets STEREOTAXIS INC: Incurs $1.5 Million Net Loss in Second Quarter SUN BANCORP: Reports $2.8 Million Net Income for Second Quarter TELEMANAGEMENT INC: Case Summary & 20 Top Unsecured Creditors TERRAFORM GLOBAL: Moody's Affirms 'B1' Corp. Family Rating TRANS-LUX CORP: Amends Form S-1 Preliminary Prospectus TRUMP ENTERTAINMENT: Paza Associates OK'd to Move Slot Machines UNIVERSAL HEALTH: Trustee Has Settlement with Ad Hoc Committee UTSTARCOM INC: Shah Capital Reports 28.6% Stake as of Aug. 6 VICEROY HOMES: Canadian Court Sets Sept. 8 Claims Bar Date WALDRON ENERGY: Receives Demand Notice From Sub. Debenture Lender WALL STREET SYSTEMS: Moody's Raises CFR to B2, Outlook Stable WAYNE COUNTY, MI: To Enter Deal with State to Fix $52M Deficit WESTMORELAND RESOURCE: Amends Agreement of Limited Partnership WHISKEY ONE: Files Schedules of Assets and Liabilities WHITTEN FOUNDATION: Gov't Units Must File Claims By Sept. 28 WINDSTREAM SERVICES: Moody's Lowers Corporate Family Rating to B1 WPCS INTERNATIONAL: Sells 134,600 Common Shares YRC WORLDWIDE: Marc Lasry Reports 17.9% Stake as of Aug. 6 YRC WORLDWIDE: S&P Raises CCR to 'B-' on Strengthening Conditions ZLOOP INC: Case Summary & 20 Largest Unsecured Creditors [*] Heyer-Bednar to Lead Roetzel's Business Litigation Practice [^] Large Companies With Insolvent Balance Sheet ********* ACE TRACK: ValuePart's Bid to Stay Infringement Suit Granted ------------------------------------------------------------ Judge Jon P. McCalla of the United States District Court for the Western District of Tennessee, Western Division, granted ValuePart, Inc.'s motion to stay a lawsuit filed by USCO S.p.A. On July 30, 2014, USCO filed a complaint asserting allegations of infringement of U.S. Patent No. 6,412,267 against VPI, ACE Track Co., Ltd., and REONE Track Co., Ltd. The 267 patent protects a "method of manufacturing an openable link of a track." VPI filed a motion to stay proceedings. USCO argued that it will suffer prejudice as a result of a stay of proceedings "because the average pendency of an ex parte reexamination would leave little or no life to the '267 Patent for injunctive relief." Judge McCalla ordered that all proceedings in the case are stayed until the latter of (1) a final determination of the reexamination of the '267 patent; or (2) lifting of the automatic stay of proceedings as to ACE Track. Judge McCalla held that although a delay of 20-27 months in the proceedings is not insignificant, the delay is not overly burdensome when compared to the potential for substantial expenditure on duplicative proceedings absent a stay of proceedings. The judge also found that a stay of proceedings pending reexamination of the '267 patent will simplify the issues in the instant case, and that the current stage of litigation is not so advanced that a stay would be harmful. In addition to a stay of proceedings pending reexamination of the '267 patent, VPI also requested for the extension of ACE Track's automatic stay to include VPI. Judge McCalla found that an identity of interests exists between VPI and ACE Track and that an extension of the automatic stay to include VPI is appropriate. The judge also found that the principles of the customer suit exception favor a stay of proceedings pending conclusion of ACE Track's bankruptcy proceedings. The case is USCO S.P.A., Plaintiff, v. VALUEPART, INC., ACE TRACK CO., LTD., and REONE TRACK CO., LTD., Defendants, NO. 2:14-CV-02590-JPM-TMP (W.D. Tenn.) A full-text copy of Judge McCalla's July 29, 2015 order is available at http://is.gd/pR4Xjpfrom Leagle.com. USCO S.p.A. is represented by: Amy Pepke, Esq. Clifford Ragsdale Lamar, II, Esq. Frank M. Holbrook, Esq. BUTLER SNOW LLP Crescent Center 6075 Poplar Avenue, Suite 500 Memphis, TN 38119 Tel: (901) 680-7200 Fax: (901) 680-7201 Email: amy.pepke@butlersnow.com dale.lamar@butlersnow.com frank.holbrook@butlersnow.com ValuePart, Inc. is represented by: Regina Worley Calabro, Esq. OGLETREE DEAKINS NASH SMOAK & STEWART, P.C. 4208 Six Forks Road Suite 100 Raleigh, NC 27609 Tel: (919) 787-9700 Email: regina.calabro@ogletreedeakins.com -- and -- Russell J. Genet, Esq. Eliza Townsend Davis, Esq. Lisa Colleen Sullivan, Esq. NIXON PEABODY LLP 70 West Madison, Suite 3500 Chicago, IL 60602 Tel: (312) 977-4400 Fax: (312) 977-4405 Email: rgenet@nixonpeabody.com etdavis@nixonpeabody.com lcsullivan@nixonpeabody.com -- and -- Clifford Ragsdale Lamar, II, Esq. BUTLER SNOW LLP Crescent Center 6075 Poplar Avenue, Suite 500 Memphis, TN 38119 Tel: (901) 680-7200 Fax: (901) 680-7201 Email: dale.lamar@butlersnow.com ACE Track Co., Ltd. is represented by: Glen G. Reid, Jr., Esq. Matthew Mahoney Lubozynski, Esq. WYATT, TARRANT & COMBS LLP 1715 Aaron Brenner Drive Suite 800 Memphis, TN 38120 Tel: (901) 537-1000 Fax: (901) 537-1010 Email: greid@wyattfirm.com mlubozynski@wyattfirm.com South Korea-based Ace Track Co., Ltd., sought protection under Chapter 15 of the U.S. Bankruptcy Code on April 17, 2015 Chapter 15 (Bankr. N.D. Ill., Case No. 15-13819). The Chapter 15 Petition was filed by Sooan Cho. The Chapter 15 case is assigned to Judge Jacqueline P. Cox. The Chapter 15 Petitioner is represented by Mark L Radtke, Esq., and Brian L Shaw, Esq., at Shaw Fishman Glantz & Towbin LLC, in Chicago, Illinois. ADAMIS PHARMACEUTICALS: Posts $3.6 Million Net Loss for Q2 ---------------------------------------------------------- Adamis Pharmaceuticals Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.6 million on $0 of revenue for the three months ended June 30, 2015, compared to a net loss of $2.8 million on $0 of revenue for the same period during the prior year. The Company reported a net loss of $6.7 million on $0 of revenue for the six months ended June 30, 2015, compared to a net loss of $4.4 million on $0 of revenue for the same period a year ago. As of June 30, 2015, the Company had $16.9 million in total assets, $2.1 million in total liabilities and $14.8 million in total stockholders' equity. Bankruptcy Warning "Our management intends to attempt to secure additional required funding through equity or debt financings, sales or out-licensing of intellectual property assets, seeking partnerships with other pharmaceutical companies or third parties to co-develop and fund research and development efforts, or similar transactions. However, there can be no assurance that we will be able to obtain any required additional funding. If we are unsuccessful in securing funding from any of these sources, we will defer, reduce or eliminate certain planned expenditures and delay development or commercialization of some or all of our products. If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy protection or other alternatives that could result in our stockholders losing some or all of their investment in us," the Company stated in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/5nHwXi About Adamis San Diego, Calif.-based Adamis Pharmaceuticals Corporation (OTC QB: ADMP) is a biopharmaceutical company engaged in the development and commercialization of specialty pharmaceutical and biotechnology products in the therapeutic areas of respiratory disease, allergy, oncology and immunology. Mayer Hoffman McCann, P.C., in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the transition period ended Dec. 31, 2014, citing that the Company has incurred recurring losses from operations, and is dependent on additional financing to fund operations. The Company disclosed a net loss of $9.31 million on $0 of revenue for the nine months ended Dec. 31, 2014, compared to a net loss of $8.15 million on $0 of revenue for the 12 months ended March 31, 2014. AE CONCRETE: Files Bankr. in Ontario; Creditors Meeting on Aug. 24 ------------------------------------------------------------------ A.E. Concrete Precast Products Ltd. and its debtor-affiliates each filed a voluntary assignment in bankruptcy on July 31, 2015, in Ontario, Canada. Armtec LP, which carries on the business previously operated by certain of entities, has not filed an assignment in bankruptcy. The first meeting of creditors will be held on Aug. 24, 2015, at the offices of Ernst & Young Inc., located at 222 Bay, 31st Floor in Toronto, Ontario at these times: -- A.E. Concrete 9:00 a.m. -- Pre-con Inc. 9:20 a.m. -- 2148960 Ontario Linited 9:40 a.m. -- 1748612 Limited Partnership 10:00 a.m. along with its partners: 1748612 Ontario Limited and 1625410 Ontario Limited. -- 2242749 Ontario Limited 10:30 a.m. -- 188761 canada Limited 10:50 a.m. -- 10531337 Ontario Limited 11:10 a.m. To be eligible to vote, creditors must file with the trustee, prior to the meeting, proofs of claim, and where necessary, proxies. The firm can be reached at: Ernst & Young Inc. P.O. Box 251, 222 Bay Street Toronto, Ontario M5K 1J7 Contact: Franca Mazzulla Tel: (855) 941-1795 Fax: 416-943-3300 Eamil: armte@ca.ey.com Website: http://www.ey.com/ca/artmtec Based in Ontario, Canada, A.E. Concrete Precast Products Ltd. -- https://www.armtec.com/ - supplies precast, corrugated steel and HDPE products. AEMETIS INC: Posts $6.3 Million Net Loss for Second Quarter ----------------------------------------------------------- Aemetis, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $6.3 million on $38.1 million of revenues for the three months ended June 30, 2015, compared to net income of $2.7 million on $57.2 million of revenues for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $14.9 million on $72.8 million of revenues compared to net income of $10.4 million on $117.8 million of revenues for the same period a year ago. As of June 30, 2015, the Company had $91.1 million in total assets, $114.8 million in total liabilities and a $23.7 million total stockholders' deficit. Cash and cash equivalents were $3.3 million at June 30, 2015, of which $2.2 million was held in the Company's North American entities and $1.1 million was held in the Company's Indian subsidiary. The Company's current ratio at June 30, 2015, was 0.41 compared to a current ratio of 0.29 at Dec. 31, 2014. The Company expects that its future available capital resources will consist primarily of cash generated from operations, remaining cash balances, EB-5 program borrowings, amounts available for borrowing, if any, under the Company's senior debt facilities and our subordinated debt facilities, and any additional funds raised through sales of equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/w6EpsX About Aemetis Cupertino, Calif.-based Aemetis, Inc., is an international renewable fuels and specialty chemical company focused on the production of advanced fuels and chemicals and the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products and convert first- generation ethanol and biodiesel plants into advanced biorefineries. ALEXZA PHARMACEUTICALS: Incurs $12.4 Million Net Loss in Q2 ----------------------------------------------------------- Alexza Pharmaceuticals, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $12.4 million on $1.8 million of total revenue for the three months ended June 30, 2015, compared to a net loss of $5.9 million on $1.5 million of total revenue for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $12.8 million on $2.5 million of total revenue compared to a net loss of $16.7 million on $3.6 million of total revenue for the same period during the prior year. As of June 30, 2015, the Company had $32.6 million in total assets, $96.5 million in total liabilities and a stockholders' deficit of $63.9 million. "We continue to see the incremental growth in the ADASUVE global launch. ADASUVE is now available in 18 countries and we see continued increases in the number of hospitals stocking and using the product," said Thomas B. King, president and CEO of Alexza Pharmaceuticals. "Importantly, we believe the sales during the ADASUVE launch do not reflect the clinical benefits ADASUVE can convey to patients, and we remain confident in ADASUVE's long-term commercial prospects. Feedback from physicians and patients corroborate the positive clinical profile we observed with ADASUVE during its clinical development." A full-text copy of the Form 10-Q is available for free at: http://is.gd/BCdSYm About Alexza Mountain View, California-based Alexza Pharmaceuticals, Inc., was incorporated in the state of Delaware on Dec. 19, 2000, as FaxMed, Inc. In June 2001, the Company changed its name to Alexza Corporation and in December 2001 became Alexza Molecular Delivery Corporation. In July 2005, the Company changed its name to Alexza Pharmaceuticals, Inc. The Company is a pharmaceutical development company focused on the research, development, and commercialization of novel proprietary products for the acute treatment of central nervous system conditions. Alexza Pharmaceuticals reported a net loss of $36.7 million in 2014 compared to a net loss of $39.6 million in 2013. Ernst & Young LLP, in Redwood City, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. ALLIED NEVADA: Seeks to Disband Equity Committee ------------------------------------------------ Bill Rochelle, a bankruptcy columnist for Bloomberg News, reported that Allied Nevada Gold Corp. will ask a bankruptcy judge at an Aug. 20 hearing to disband the official committee of equity security holders, saying the shareholders "relentlessly" pursued "scorched-earth litigation" by continually opposing routine motions. According to the report, the Debtors assert that the equity committee has become a financial drain, with current and former professionals seeking more than $850,000 in combined fees. About Allied Nevada Allied Nevada Gold Corp. (OTCMKTS: ANVGQ), a Delaware corporation, is a 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 (Bankr. D. Del. Lead 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. The U.S. Trustee appointed three creditors of the company to serve on the official committee of unsecured creditors. The Committee retained Arent Fox LLP as co-counsel, and Polsinelli PC as conflicts counsel. It hired Zolfo Cooper, LLC as bankruptcy consultant and financial advisors, and Upshot Services LLC as information agent. The U.S. Trustee also named an Official Committee of Equity Security Holders. The Equity Committee is represented by Cole Schotz P.C.'s Patrick J. Reilley, Esq., and Nicolas J. Brannick, Esq.; and LeClairRyan's Janice B. Grubin, Esq., Gregory J. Mascitti, Esq., Richard A. McGuirk, Esq., and Michael J. Crosnicker, Esq. The Equity Committee has hired Navigant Consulting, Inc. as financial advisor; and Runge, Inc. dba RungePincockMinarco as technical mining expert. * * * Allied Nevada Gold Corp., et al.'s joint 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 A hearing will be held before Judge Walrath on August 20, 2015, at 11:30 a.m. (Prevailing Eastern Time), to consider approval of the disclosure statement explaining the Plan. ALLISON TRANSMISSION: Fitch Hikes Issuer Default Ratings to 'BB' ---------------------------------------------------------------- Fitch Ratings has upgraded the Issuer Default Ratings (IDRs) for Allison Transmission Holdings, Inc. (ALSN) and its Allison Transmission, Inc. (ATI) subsidiary to 'BB' from 'BB-'. In addition, Fitch has upgraded the ratings on ATI's secured term loans and secured revolving credit facility to 'BB+' from 'BB' and assigned a Recovery Rating of 'RR1'. A full list of the rating actions follows at the end of this release. The ratings apply to $2.4 billion in secured term loans and a $465 million secured revolving credit facility. The Rating Outlooks for ALSN and ATI are Stable. KEY RATING DRIVERS The upgrade of the ratings of ALSN and ATI is driven by the improvement in the company's credit profile as it has steadily reduced debt over the past several years while producing high margins and strong free cash flow (FCF). The company continues to lead the global market for fully automatic transmissions for commercial vehicles, industrial machinery and military equipment. ALSN has a very strong market position in North America, with 95% of all school buses and nearly three-quarters of medium-duty commercial trucks manufactured with the company's transmissions in 2014. In addition, over half of the Class 8 straight trucks and nearly half of the Class A motorhomes sold in North America in 2014 were manufactured with the company's transmissions, and unlike most Tier 1 suppliers, ALSN's brand name commands a price premium from end users. Fitch expects the market for on-highway automatic transmissions to continue growing in North America as operators seek to improve fuel economy and as they look to grow the pool of available drivers. Automatic transmissions help in this regard as they do not require the skills needed to shift a manual transmission. ALSN's market position outside North America is significantly smaller, as commercial vehicles in most global markets continue to be produced with manual transmissions. Nonetheless, global acceptance of fully automatic transmissions is growing, particularly for certain vocations, such as buses and emergency vehicles. This has been particularly true in emerging markets like China and India, where ALSN is well positioned for future growth opportunities. Over time, Fitch expects developing markets to follow the lead of North America in embracing the benefits of automatic transmissions as well. Fitch's concerns continue to include the heavy cyclicality of the global commercial vehicle and industrial equipment markets, volatile raw material costs, the lack of global diversification in ALSN's current business, moderately high leverage and a concentrated debt maturity schedule. However, credit facility amendments over the past three years have shifted nearly 90% of ALSN's term loan maturity obligations to 2019, removing the company's near-term refinancing risk, and the company's strong profitability and FCF generating capability provide it with meaningful financial flexibility to weather economic cycles. It is also notable that ALSN's transmissions are currently used primarily in the vocational truck market, which tends to be less cyclical than the manual transmission-dominated Class 8 linehaul market. Nevertheless, a broad-based global downturn in commercial vehicle and industrial equipment production would likely pressure ASLN's profitability and FCF. Although ALSN's leverage is somewhat high for the rating category, the company has consistently used FCF over the past several years to reduce debt, including a $255 million decline in the 12 months ended June 30, 2015. However, Fitch does not expect further debt reduction to be a significant priority going forward as the company's net leverage has declined to slightly below its targeted range (net debt/adjusted EBITDA, as calculated by the company) of 3x to 3.5x. A strong liquidity position, modest pension obligations, and manageable near-term debt service requirements are other credit positives. In April 2015, ATI increased its term loan B-3 by $470 million and used the proceeds to fully redeem its $471 million in 7.125% senior unsecured notes due 2019. Following the redemption, all of the company's remaining debt is comprised of secured term loans. ALSN's credit profile is characterized by relatively high margins, strong FCF and moderate leverage. Fitch-calculated leverage (debt/Fitch-calculated EBITDA) at June 30, 2015, was 3.2x, with $2.4 billion in debt and last 12 months (LTM) Fitch-calculated EBITDA of $762 million. The Fitch-calculated EBITDA margin, at 36.1%, remained very strong for a capital goods manufacturer and was up from 34.5% in the LTM ended June 30, 2014. However, Fitch expects leverage may trend up slightly to the mid-3x range by year-end of 2015 as EBITDA declines on lower sales volumes. Funds flow from operations (FFO) adjusted leverage was 3.5x at June 30, 2015, down from 4x at June 30, 2014. With consistently strong FCF and all of its debt in the form of term loans, ALSN has the financial flexibility to reduce leverage further in the intermediate term if it chooses to do so, although, as noted earlier, the company's net leverage has declined slightly below its targeted range. As such, Fitch expects the company will prioritize cash returns to shareholders over further discretionary debt reduction. That being said, the company's strong liquidity position at June 30, 2015 was more than sufficient to meet its near-term cash obligations and included $217 million in cash and cash equivalents, augmented by $456 million in availability on its $465 million secured revolving credit facility (after accounting for $9.2 million in letters of credit). Over the past two years, Carlyle and Onex fully exited their collective equity stake in ALSN. Although Fitch did not previously view the concentrated ownership structure as a significant credit risk, it is nonetheless a mild credit positive that the company's ownership base has become more diversified. However, the company has recently begun to focus more heavily on returning cash to shareholders through dividends and share repurchases now that its shareholder composition is less concentrated and as it has reached its net leverage target range of 3.0x to 3.5x. The company currently has board authorization to repurchase up to $500 million in shares, which it plans to complete by year-end 2016. Through July 28, 2015, the company had repurchased $208 million in shares in 2015. Although ALSN's shareholder composition is now less concentrated, ValueAct Capital has accumulated an equity stake in the company of nearly 11%, making it ALSN's largest shareholder. In December 2014, ALSN and ValueAct entered into a cooperation agreement pursuant to which the company gave ValueAct the option of having their representative join ALSN's Board of Directors, and in return, ValueAct agreed to several stipulations regarding its trading in the company's stock and limiting its ability to influence the company's corporate governance. ValueAct's representative joined ALSN's Board of Directors in May 2015. Fitch views the cooperation agreement favorably and does not believe ValueAct's ownership stake or Board representation poses a meaningful risk to creditors. Fitch expects FCF to remain solid over the intermediate term and FCF margins to remain strong by industry standards. LTM FCF was $390 million at June 30, 2015, leading to a strong 18.5% FCF margin. FFO was $579 million in the LTM period, with working capital using a modest $31 million in cash. LTM capital spending was $56 million, equal to only 2.7% of revenue. The company has guided to full-year 2015 capital spending in the range $60 million to $70 million, and with no significant plant construction activity expected over the intermediate term, capital spending needs are likely to remain relatively low over the next several years. ALSN instituted a common stock dividend in 2012 and spent $102 million on dividends in the LTM period ended June 30, 2015, which is included in Fitch's FCF calculation. ALSN's pension obligations are modest, with an overfunded status of $1.8 million as of year-end 2014. The company's salaried pension plan was closed to new entrants in 2007, and its hourly plan was closed to new entrants in 2008. Benefits for hourly employees who retired prior to Oct. 2, 2011, are covered under General Motors Company's (GM) hourly plan. Fitch does not view ALSN's pension obligations as a meaningful credit risk. The secured revolver and term loans that comprise ATI's credit facility are rated at 'BB+/ RR1', one notch above ATI's IDR, due to their collateral coverage, which includes virtually all of ATI's assets. Fitch notes that property, plant, and equipment and intangible assets (including intellectual property) comprised $1.9 billion of the $4.7 billion in assets on ALSN's consolidated balance sheet at June 30, 2015. In April and May 2015, ATI fully redeemed its senior unsecured notes with proceeds from its upsized term loan B-3. KEY ASSUMPTIONS -- Overall demand remains mixed in 2015, with continued weakness in the global off-highway and defense end markets, flat to slightly better demand in the on-highway market outside the U.S. and relatively strong demand in the North American on- highway market; -- Global demand strengthens modestly after 2015; -- ALSN continues to make progress in penetrating the global on- highway markets, especially in emerging markets; -- Margins are forecast to be relatively steady through the forecast period, with EBITDA margins in the mid-30% range; -- Capital spending equals about 3.5% of annual revenue for the next several years; -- The company produces over $300 million in free cash flow annually, equating to free cash flow margins in the 15% to 17% range; -- The company completes its current $500 million share repurchase program in 2016 and continues to use share repurchases to regulate its cash position going forward. RATING SENSITIVITIES Positive: With the company having achieved its net leverage target, Fitch does not expect to upgrade the ratings of ALSN or ATI in the intermediate term. However, future developments that may, individually or collectively, lead to a positive rating action include: -- A decline in Fitch-calculated EBITDA leverage to below 3.0x; -- An increase in the global diversification of its revenue base; -- Maintaining EBITDA and FCF margins at or above current levels; -- Continued positive FCF generation in a weakened demand environment. Negative: Future developments that may, individually or collectively, lead to a negative rating action include: -- A sustained significant decline in EBITDA margins or an extended period of negative FCF; -- A competitive entry into the market that results in a significant market share loss; -- An increase in leverage to above 4.0x for a prolonged period; -- A merger or acquisition that results in higher leverage or lower margins over an extended period. Fitch has upgraded the ratings of ALSN and ATI as follows: ALSN -- IDR to 'BB' from 'BB-'. ATI -- IDR to 'BB' from 'BB-'; -- Senior secured revolving credit facility to 'BB+/RR1' from 'BB'; -- Senior secured term loan B-2 to 'BB+/RR1' from 'BB'; -- Senior secured term loan B-3 to 'BB+/RR1' from 'BB'. The Rating Outlook for both ALSN and ATI is Stable. ALPHA NATURAL: Has Interim Nod to Obtain Financing From Citigroup ----------------------------------------------------------------- Ashley Burgess, C. Thomas Ebel, William Gray, John Smith, and Roy Terry at Sands Anderson PC, writing for Jdsupra.com, report that the Bankruptcy Court granted Alpha Natural Resources, Inc., interim approval to obtain post-petition financing from Citigroup Global Markets, Inc., despite opposition from a group of unsecured noteholders. Citigroup Global will replace the current lender General Electric Capital Credit, Jdsupra.com says. The report states that the next hearings in the bankruptcy case are set for Sept. 1, 2015. The report adds that prior to that date, the creditors' committee will likely be appointed by the U.S. Trustee. According to Jdsupra.com, a business plan is being prepared which will likely include a future downsizing of coal operations and diversification into natural gas. Jdsupra.com relates that the Bankruptcy Court also approved during the first-day hearings the Company's motion to: (i) pay out an aggregate of $44.5 million toward prepetition obligations owed to essential suppliers; (ii) provide assurance to vendors that they will be paid for the provision of post-petition goods and services as a Chapter 11 administrative expense; (iii) pay goods sold in the ordinary course of business within 20 days prior to the bankruptcy filing as an administrative expense. Seekingalpha.com reports that the low bond prices and a stock price of $.035 indicate investors are expecting little recovery from the Company's Chapter 11 filing. According to the report, the assets of $10.1 billion will be drastically written down and mine clean-up costs will effectively increase the reported $7.1 billion liability. The report says that there seems to be no sense of urgency for the Company to exit Ch 11 because the coal industry is in terrible condition. The Company owes the state of Wyoming $411 million in mine reclamation costs, The Associated Press relates. The state's top legal adviser is trying to determine where Wyoming sits at the table as the bankruptcy process proceeds, the report says, citing Department of Environmental Quality spokesperson Keith Guille. Benjamin Storrow at Casper Star-Tribune recalls that state regulators gave the Company 90 days in May 2015 to pay the debt, after the Company a financial test which would have qualified the company for a program called self-bonding that allows mining firms to use their assets as collateral on their cleanup costs. About Alpha Natural Alpha Natural -- http://www.alphanr.com-- is a coal supplier, ranked second largest among publicly traded U.S. coal producers as measured by 2014 consolidated revenues of $4.3 billion. Alpha Natural Resources, Inc. (Bankr. E.D. Va. Case No. 15-33896) and its affiliates filed separate Chapter 11 bankruptcy petitions on Aug. 3, 2015, listing $9.9 billion in total assets as of June 30, 2015, and $7.3 billion in total liabilities as of June 30, 2015. The petition was signed by Richard H. Verheij, executive vice president, general counsel and corporate secretary. Judge Kevin R. Huennekens presides over the case. David G. Heiman, Esq., Carl E. Black, Esq., and Thomas A. Wilson, Esq., at Jones Day serve as the Debtors' general counsel. Tyler P. Brown, Esq., J.R. Smith, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq., serve as the Debtors' local counsel. Rothschild Group is the Debtors' financial advisor. Alvarez & Marshal Holdings, LLC, is the Debtors' investment banker. Kurtzman Carson Consultants, LLC, is the Debtors' claims and noticing agent. * * * As of Dec. 31, 2014, the Company operated 60 mines and 22 coal preparation plants in Northern and Central Appalachia and the Powder River Basin, with approximately 8,900 employees. Alpha Natural reported a net loss of $874.9 million in 2014, a net loss of $1.1 billion in 2013 and a net loss of $2.4 billion in 2012. * * * As reported by the TCR on June 4, 2015, Standard & Poor's Ratings Services said it lowered its corporate credit rating on Alpha Natural Resources Inc. to 'CCC+' from 'B'. The TCR reported on April 8, 2015, that Moody Investor's Service downgraded the corporate family rating of Alpha Natural Resources, Inc. to Caa3 from Caa1 and the probability default rating to Caa3-PD/LD from Caa1-PD. AMERICAN BANCORPORATION: Carl Marks Acted as Advisor on Sale ------------------------------------------------------------ Carl Marks Securities LLC on July 30 disclosed that it acted as investment banker and exclusive financial advisor to American Bancorporation in the sale of substantially all of its assets pursuant to Sec. 363 of the U.S. Bankruptcy Code. The sale of the assets of the Minnesota-based bank holding company, which closed on June 18, 2015, generated net proceeds of approximately $24 million. Engaged by the Board of Directors, Carl Marks led the transaction for American Bancorporation. After an initial marketing period that involved a substantial number of parties, Carl Marks helped structure a unique stalking horse agreement in which Deerwood Bank would purchase either the bank subsidiary in a stand-alone transaction, or the bank and its wholly-owned mortgage subsidiary combined, at the discretion of American Bancorporation. This unique and flexible structure allowed for a highly competitive auction in which the bank and the mortgage subsidiary were ultimately agreed to be sold to two separate buyers, Deerwood Bank and OSP, LLC. "We are very pleased to have brought the sale of American Bancorporation to a successful conclusion, leveraging our deep experience in the community banking sector to help guide the Board through a challenging process," said Evan Tomaskovic, CEO of Carl Marks Securities. "We expect to see a significant surge in mergers and acquisitions in the community banking sector over the next 12 months," added Mr. Tomaskovic. Legal counsel was provided by Lindquist & Vennum LLP, led by partners George Singer and Scott Coleman. About Carl Marks Securities Carl Marks Securities LLC -- http://www.carlmarksadvisors.com-- is the broker-dealer affiliate of Carl Marks Advisor Group LLC. It provides financial advisory services related to private placement of debt and equity capital. Serving middle market companies, it provides a broad range of capital market alternatives as they seek financing for growth, mergers or acquisitions, restructurings or other purposes. Carl Marks Securities LLC is a member FINRA and SIPC. About American Bancorporation Alesco Preferred Funding XV, Ltd., and two related entities filed an involuntary Chapter 11 bankruptcy petition for St. Paul, Minnesota-based American Bancorporation (Bankr. D. Minn. Case No. 14-31882) on May 1, 2014. The involuntary petition filed in St. Paul Minnesota indicates that the three alleged creditors are owed in excess of $48 million: Creditor Amount of Claim -------- --------------- Alesco Preferred Funding XV, Ltd. $27,374,356 Alesco Preferred Funding XVI, Ltd. $13,728,562 Alesco Preferred Funding II, Ltd. $7,000,000 plus interest The alleged creditors are represented by Jeffrey Klobucar, Esq., at Bassford Remele, PA. Judge Katherine A. Constantine handles the case. She has entered an order for relief, officially placing American Bancorporation in Chapter 11. Judge Kathleen H. Sanberg was originally assigned to the case but she disqualified herself in the case, according to her May 1, 2014 order of recusal. ANACOR PHARMACEUTICALS: Reports 2nd Qtr. 2015 Financial Results --------------------------------------------------------------- Anacor Pharmaceuticals, Inc., reported a net loss of $13.2 million on $21.3 million of total revenues for the three months ended June 30, 2015, compared to a net loss of $24.5 million on $2.9 million of total revenues for the same period during the prior year. For the six months ended June 30, 2015, the Company reported a net loss of $26.1 million on $36.6 million of total revenues compared to a net loss of $45.7 million on $7.1 million of total revenues for the same period a year ago. Cash, cash equivalents and investments totaled $176.9 million at June 30, 2015, compared to $191.6 million at Dec. 31, 2014. Balances at June 30, 2015, and Dec. 31, 2014 included cash and cash equivalents of $7.5 million and $16 million, short-term and long-term investments of $167.2 million and $171.9 million and restricted investments of $2.2 million and $3.7 million, respectively. "2015 continues to be a very productive year for Anacor. We recently announced that crisaborole, our novel non-steroidal topical anti-inflammatory phosphodiesterase-4 (PDE-4) inhibitor in development for the potential treatment of mild-to-moderate atopic dermatitis in children and adults, achieved statistically significant results on all primary and secondary endpoints in two Phase 3 pivotal studies and demonstrated a safety profile consistent with previous studies. If approved, we believe crisaborole could offer an important treatment option for the many patients living with this serious skin disease, as well as the physicians who treat them," said Paul L. Berns, chairman and chief executive officer of Anacor. "In addition, we are pleased with the recently announced amendment to the Sandoz Agreement. We believe the increased investment in KERYDIN commercial activities will help increase brand awareness among the patients suffering from onychomycosis who are most likely to use KERYDIN, and motivate them to seek treatment from their physicians." A full-text copy of the press release is available at: http://is.gd/U5p5MY About Anacor Pharmaceuticals Palo Alto, Calif.-based Anacor Pharmaceuticals (NASDAQ: ANAC) is a biopharmaceutical company focused on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. Anacor has discovered eight compounds that are currently in development. Its two lead product candidates are topically administered dermatologic compounds - tavaborole, an antifungal for the treatment of onychomycosis, and AN2728, an anti-inflammatory PDE-4 inhibitor for the treatment of atopic dermatitis and psoriasis. Anacor reported a net loss of $87.1 million on $20.7 million of total revenues for the year ended Dec. 31, 2014, compared with net income of $84.8 million on $17.2 million of total revenues for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $214.88 million in total assets, $137.34 million in total liabilities, $4.95 million in redeemable common stock and $72.59 million in total stockholders' equity. APPLIED MINERALS: Incurs $2.7 Million Net Loss in Second Quarter ---------------------------------------------------------------- Applied Minerals, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.7 million on $65,848 of revenues for the three months ended June 30, 2015, compared to a net loss of $3 million on $47,993 of revenues for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $6.9 million on $228,595 of revenues compared to a net loss of $3.4 million on $59,007 of revenues for the same period during the prior year. As of June 30, 2015, the Company had $12.6 million in total assets, $25.9 million in total liabilities and a $13.2 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/q5W0PU About Applied Minerals New York City-based Applied Minerals, Inc. (OTC BB: AMNL) is a leading global producer of halloysite clay used in the development of advanced polymer, catalytic, environmental remediation, and controlled release applications. The Company operates the Dragon Mine located in Juab County, Utah, the only commercial source of halloysite clay in the western hemisphere. Halloysite is an aluminosilicate clay that forms naturally occurring nanotubes. Applied Minerals reported a net loss of $10.3 million in 2014, a net loss of $13.06 million in 2013 and a net loss of $9.73 million in 2012. ARCH COAL: Dispute with Senior Lenders Puts Debt Plan at Risk ------------------------------------------------------------- Jodi Xu Klein and Laura J. Keller, writing for Bloomberg News, reported that Arch Coal Inc. is caught in a dispute with senior lenders that's thwarting its plan to cut debt costs and avoid the fate of four industry peers that have filed for bankruptcy protection. According to the report, a group of investors that holds the company’s $1.9 billion term loan is seeking to block a proposed debt swap, which would allow Arch Coal to replace its credit line with one that has less restrictive terms. The miner's cash and available credit is declining toward the $550 million minimum mandated by its loan covenants, the Bloomberg report noted. About Arch Coal Arch Coal, Inc.'s primary business is the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. The Company currently operates mining complexes in West Virginia, Maryland, Virginia, Illinois, Wyoming and Colorado. Arch Coal reported a net loss of $558.3 million in 2014, a net loss of $641.8 million in 2013 and a net loss of $683.7 million in 2012. As of March 31, 2015, Arch Coal had $8.3 billion in total assets, $6.7 billion in total liabilities and $1.5 billion in total stockholders' equity. * * * The Troubled Company Reporter, on July 8, 2015, reported that Fitch Ratings has downgraded the Issuer Default Rating of Arch Coal, Inc. to 'C' from 'CCC'. The downgrade follows Arch Coal's announcements of exchange offers which Fitch considers Distressed Debt Exchanges in accordance with Fitch's Distressed Debt Exchange criteria. The TCR, on May 6, 2015, reported that Moody's Investors Service downgraded the corporate family rating of Arch Coal, Inc to Caa3 from Caa1 and the probability default rating to Caa3-PD from Caa1-PD. The downgrade follows the continued stress on the coal sector, and the resulting deterioration in the company's credit metrics. At the same time, Moody's downgraded the ratings on the senior secured term loan and bank revolving facility to Caa1 from B2, the second lien notes to Caa3 from Caa1, and all unsecured notes to Ca, from Caa2. Moody's also affirmed the Speculative Grade Liquidity rating of SGL-3. The outlook is negative. As reported by the TCR on July 9, 2015, Standard & Poor's Ratings Services said it lowered its corporate credit rating on St. Louis-based Arch Coal Inc. to 'CC' from 'CCC+'. Standard & Poor's Ratings Services said it lowered its corporate credit rating on St. Louis-based Arch Coal Inc. to 'CC' from 'CCC+'. The rating action reflects Arch Coal's July 3, 2015, announcement of a private debt exchange offer for its senior unsecured debt. ARICENT TECHNOLOGIES: Moody's Retains B2 CFR on $180MM Acquisition ------------------------------------------------------------------ Moody's Investors Service said that there is no impact on Aricent Technologies' B2 corporate family rating ("CFR"), B1 (LGD3) first lien term loan rating or Caa1 (LGD5) second lien term loan rating, following the announcement of a proposed approximate $180 million acquisition by Aricent of an undisclosed semiconductor design & embedded software company ("Acquisition"). ASCENT RESOURCES: Moody's Lowers CFR to 'Caa2', Outlook Negative ---------------------------------------------------------------- Moody's Investors Service downgraded Ascent Resources -- Marcellus, LLC's (ARM) Corporate Family Rating (CFR) to Caa2 from B2, Probability of Default Rating (PDR) to Caa2-PD from B2-PD, Senior Secured First Lien rating to Caa1 from Ba3 and Senior Secured Second Lien rating to Caa3 from Caa1. Moody's also lowered the Speculative Grade Liquidity Rating to SGL-4 from SGL-3 to underscore weak liquidity. The rating outlook is negative. "The downgrade reflects our view that ARM has an unsustainable capital structure and that it will struggle with weak liquidity and limited cash flow generation in a low commodity price environment," said John Thieroff, Moody's VP-Senior Analyst. "While we anticipate the company will be able to fully access its currently restricted cash balances through an equity infusion by the company's sponsors, the absence of additional external sources of liquidity and the expectation of persistent low oil and natural gas prices call into question ARM's ability to cover its interest expense or fund capital spending in the second half of 2016." Downgraded: Corporate Family Rating, Downgraded to Caa2 from B2 Probability of Default Rating, Downgraded to Caa2-PD from B2-PD Senior Secured First Lien Bank Credit Facility, Downgraded to Caa1(LGD3) from Ba3(LGD2) Senior Secured Second Lien Bank Credit Facility, Downgraded to Caa3(LGD5) from Caa1(LGD5) Speculative Grade Liquidity Rating, Lowered to SGL-4 from SGL-3 Outlook changed to Negative from Stable RATINGS RATIONALE The Caa2 CFR reflects ARM's weak liquidity, poor asset coverage, high leverage, and Moody's view that the company will have difficulty funding its spending program through 2016; production growth from projected spending is necessary to generate sustaining cash flow over the longer term. The need to reduce to a one-rig drilling program because of a sharp drop in commodity prices since late 2014 has had a dramatic effect on the company's production and growth expectations. Compounding the effect of lower drilling activity is the company's plan to move to an eight well-per-pad drilling program, significantly increasing the time needed to bring new production online. As a result, Moody's now anticipates 2015 and 2016 aggregate production to be only one-third of what Moody's expected when the ratings were assigned in July 2014, leading to very weak cash flow generation in Moody's view. Based on Moody's commodity price assumptions, the company will not generate sufficient EBITDAX to cover its interest expense through 2016. The Caa2 rating incorporates the benefits of ARM's natural gas hedges that cover about 70% of expected gas production for the remainder of 2015 at favorable prices. ARM's weak liquidity is reflected by the SGL-4 rating. Even when incorporating full access to restricted cash balances of $196 million as of June 30, 2015 we anticipate that ARM's internally generated cash flow and available sources of liquidity will not cover interest expense and capital spending through 2016. Because ARM's secured net debt to EBITDAX exceeds 4x, the company's private equity sponsors (The Energy & Minerals Group and First Reserve; both unrated) are required to inject one dollar of equity into ARM for every three dollars withdrawn as required by the first lien term loan. As of June 30, 2015, ARM's parent had received $30 million of the $65 million necessary to unlock the entire amount. The company has no revolving credit facility. Cash on hand was $18 million at June 30, 2015. The Caa1 rating on ARM's $750 million first-lien term loan is one notch above the Caa2 CFR. Moody's Loss Given Default Methodology indicates that the notes could be rated two notches above the CFR because of the significant amount of junior debt in the capital structure. However, due to what Moody's views as thin asset value coverage of the first-lien term loan, Moody's believes a Caa1 rating is more appropriate. The negative outlook reflects the high degree of uncertainty around ARM's ability to shore up liquidity and the risk of further credit deterioration. Moody's will downgrade the CFR if the company is unable to raise additional liquidity to fund operations in advance of the second half of 2016. An upgrade is unlikely in 2015. However, if the company can show a stable to growing production trend, EBITDAX to interest coverage above 1.5x, and adequate liquidity, an 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. Ascent Resources - Marcellus, LLC is a privately-owned independent E&P company headquartered in Oklahoma City, Oklahoma. The company's operations are concentrated in the southern Marcellus Shale in northern West Virginia. ASHER INVESTMENT: Court Dismisses Ch. 11 Case --------------------------------------------- The United States Bankruptcy Court for the Central District of California dismissed the Chapter 11 cases of Asher Investment Properties, LLC, effective March 2, 2015 since it appears that no further matters are required that the case remain open or that the jurisdiction of the Court continue. About Asher Investment Asher Investment Properties, LLC, owner of a $10 million property in Beverly Hills, California, filed a Chapter 11 bankruptcy petition (Bankr. C.D. Cal. Case No. 14-21172) in Los Angeles, on June 6, 2014. Yossi Dina signed the petition as managing member. Asher, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), disclosed $11.5 million in assets and $10.7 million in liabilities. Gershuni & Kate, ALC, serves as the Debtor's counsel. Hon. Barry Russell presides over the case. ATLANTIC & PACIFIC: Faces Objections to Store Sales and Closings ---------------------------------------------------------------- Joseph Checkler, writing for The Wall Street Journal, reported that The Great Atlantic & Pacific Tea Co. is facing opposition to its plan to quickly sell or close nearly half of its stores in bankruptcy court, including from landlords and the Pension Benefit Guaranty Corp. According to the Journal, in an August 6 filing with U.S. Bankruptcy Court in White Plains, N.Y., PBGC, the pension insurer, said the grocery chain should change its auction procedures to "encourage assumption" of pension liabilities by a proposed buyer. Pensions for 25,815 A&P workers under multi-employer plans are currently underfunded by $302.5 million, according to the filing, the Journal related. 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: Urstadt Biddle Buys Harrison Shopping Center ---------------------------------------------------------------- Urstadt Biddle Properties Inc. on Aug. 5 disclosed that it has purchased The Harrison Shopping Center in Harrison, New York. The Harrison Shopping Center is located on Halstead Avenue in the affluent community of Harrison, New York (Westchester County). The 25,000 square foot shopping center is anchored by an A&P Fresh Supermarket which will most likely be replaced by a prominent grocer, subject to bankruptcy court approval. Other long-term tenants in the shopping center include a bakery, a hair salon, a florist, restaurants and AT&T. The shopping center was built in 1957 by the selling family and has been a mainstay in downtown Harrison for generations. Willing Biddle, President of Urstadt Biddle Properties Inc. said, "We are very pleased that we continue to acquire grocery-anchored shopping centers in the metro-NY market in a challenging acquisitions environment. Harrison is an important commuter town and we now own the best position in town, directly across from the Metro-NY train station with express service to Manhattan." James Aries, Director of Acquisitions at Urstadt Biddle Properties Inc. adds, "Our long-standing relationship with the selling family which began in a management role, enabled us to close on this acquisition quickly and quietly which was critical to the selling family. Harrison is less than 10 miles from our home office in Greenwich, CT and we look forward to making improvements to the center which will largely be driven by the replacement grocer." About Urstadt Biddle Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust, which owns or has equity interests in 74 properties containing approximately 5.2 million square feet of space. Listed on the New York Stock Exchange since 1969, it provides investors with a means of participating in ownership of income-producing properties. It has paid 182 consecutive quarters of uninterrupted dividends to its shareholders since its inception and raised its dividends to its shareholders for the last 21 consecutive years. 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: Can Appeal Rejection of Recognition of Ch.11 Proceedings ------------------------------------------------------------------ Baha Mar on Aug. 4 stated it is gratified that the Supreme Court of The Bahamas has granted leave to appeal the Court's decision to reject Baha Mar's application seeking the recognition of the U.S. Chapter 11 proceedings in the Delaware Court. 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 counselare 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 Amends Final DIP Order --------------------------------------------- The U.S. Bankruptcy Court in Delaware issued an order modifying its final order that approved a $425,000 financing to get Baxano Surgical Inc. through bankruptcy. The revised order authorizes the company to use cash collateral to pay post-petition operating expenses and other administrative expenses without regard to any budget. The term "maturity date" is also replaced with the earlier of the effective date of Baxano Surgical's Chapter 11 plan of reorganization, and September 22, 2015, solely for purposes of the company's continued use of cash collateral, according to the court filing. A copy of the revised order is available without charge at http://is.gd/ggj4nm 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 its 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. BUILDERS FIRSTSOURCE: Posts $3.5 Million Net Income in Q2 --------------------------------------------------------- Builders Firstsource, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $3.5 million on $461.5 million of sales for the three months ended June 30, 2015, compared to net income of $10.6 million on $426.5 million of sales for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $3.5 million on $832.5 million of sales compared to net income of $7.2 million on $772.4 million of sales for the same period during the prior year. As of June 30, 2015, the Company had $662.4 million in total assets, $614.2 million in total liabilities and $48.1 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/veIQuL About Builders FirstSource Headquartered in Dallas, Texas, Builders FirstSource -- http://www.bldr.com/-- is a supplier and manufacturer of structural and related building products for residential new construction. The Company operates 56 distribution centers and 56 manufacturing facilities in nine states, principally in the southern and eastern United States. Manufacturing facilities include plants that manufacture roof and floor trusses, wall panels, stairs, aluminum and vinyl windows, custom millwork and pre-hung doors. Builders FirstSource also distributes windows, interior and exterior doors, dimensional lumber and lumber sheet goods, millwork and other building products. Builders Firstsource reported net income of $18.2 million on $1.60 billion of sales for the year ended Dec. 31, 2014, compared to a net loss of $42.7 million on $1.48 billion of sales in 2013. * * * As reported by the TCR on May 15, 2013, Standard & Poor's Ratings Services Inc. said it raised its corporate credit rating on Dallas-based Builders FirstSource to 'B' from 'CCC'. "The upgrade acknowledges U.S.-based building materials manufacturer and distributor Builders FirstSource's 'strong' liquidity based on the company's proposed recapitalization," said Standard & Poor's credit analyst James Fielding. In the May 13, 2014, edition of the TCR, Moody's Investors Service upgraded Builders FirstSource's Corporate Family Rating to 'B3' from 'Caa1'. The upgrade reflects Moody's expectation that BLDR's operating performance will continue to benefit from improved housing construction, repair and remodeling. CAESARS ENTERTAINMENT: Examiner to Issue Findings Later This Year ----------------------------------------------------------------- Maria Chutchian at Debtwire reports that Caesars Entertainment Corporation is working with an independent examiner, who is charged with reviewing the pre-bankruptcy asset transfers and is expected to issue his complete findings later this year. According to Debtwire, the Company is racing to put plan in place before lawsuits trigger bankruptcy, and with litigation chugging along and a debt restructuring proposal that has yet to bring in the necessary support, the Company has to move quickly if it wants to keep its precarious situation from spiraling completely out of control. Debtwire relates that the Company's bankrupt operating unit has been negotiating with a small group of second-priority bondholders to make a previously proposed debt restructuring deal more attractive to other creditors. The report states that as part of the deal, the Company agreed to make substantial contributions to the operating entity's estate that court documents indicate could be worth around $2.5 billion. The first-priority bondholders backs that deal, according to the report. In the event of a bankruptcy filing by the Company, the negotiated mechanics of that contribution would presumably need to be rethought, the report says. Debtwire states that the latest version of the proposal offers creditors new secured debt in exchange for their support, and would reduce the operating entity's debt by about $10 billion. George Zack, writing for Bidnessetc.com reports that the Company's stock traded higher by almost 10% during the trade on Wednesday after the Company posted its second quarter earnings for the fiscal year 2015, wherein the Company the Company announced earnings that came out better than what the analysts had predicted on consensus. Bidnessetc.com relates that adjusted earnings per share clocked in at 10 cents, surpassing the analysts' expectations of a loss of $0.92 by $1.20 per share, while revenues came in at $1.14 billion, reflecting 46.7% decline from a year earlier. According to Bidnessetc.com, revenues also lagged behind consensus estimate of $1.91 billion by $770 million. 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. CAESARS ENTERTAINMENT: Reports Second Quarter 2015 Results ---------------------------------------------------------- Caesars Entertainment Corporation on Aug. 4 reported second quarter 2015 results, which highlights certain GAAP and non-GAAP financial measures on a consolidated basis. Caesars Entertainment Corporation is primarily a holding company with no independent operations of its own. It owns Caesars Entertainment Resort Properties, LLC ("CERP") and an interest in Caesars Growth Partners, LLC ("CGP"). It also owns 89% of Caesars Entertainment Operating Company, Inc. ("CEOC"). The results of CEOC and its subsidiaries are no longer consolidated with CEC subsequent to CEOC's Chapter 11 filing on January 15. Caesars Enterprise Services, LLC ("CES") provides certain enterprise services to properties owned and/or operated by CERP, CGP and CEOC, and this press release at times refers to system-wide trends and dynamics, inclusive of CEOC and its subsidiaries. In the discussion in this release, the word "CEC" refers to Caesars Entertainment Corporation without its consolidated entities, and the words "Company," "Caesars," "Caesars Entertainment," "Continuing CEC," "we," and "our" refer to Caesars Entertainment Corporation and its consolidated entities, and not CEOC unless otherwise stated or the context requires otherwise. "Second quarter performance system-wide was strong, delivering the best quarterly EBITDA margins since 2007," said Mark Frissora, President and CEO of Caesars Entertainment. "These results demonstrate our ability to deliver growth while driving operational efficiencies. We are focused on growing the business, continually improving efficiency and expanding margins. To support further improvements in profitability, we plan to invest more in our hospitality assets across the system, which generate some of the highest capital returns across the Total Rewards network of properties." Highlights -- Net revenues for Continuing CEC increased 17.4% year-over-year to $1,141 million mainly due to strong performance at Caesars Interactive Entertainment ("CIE"), the openings of Horseshoe Baltimore and The Cromwell, the renovation of The LINQ Hotel & Casino and continued growth in hospitality amenities in Las Vegas. -- Adjusted EBITDA for Continuing CEC grew 55.6% year-over-year to $347 million primarily driven by marketing and operational efficiencies and other EBITDA enhancing initiatives, which resulted in strong flow through from top-line growth. -- CERP results reflect increased gaming revenues due to increases in slot revenue and favorable hold year-over-year in Las Vegas, higher room revenues driven by cash ADR growth, and improved hotel and food and beverage margins. -- CGP performance attributable to record results in its social and mobile games business, the additions of Horseshoe Baltimore and Cromwell and the renovation of The LINQ Hotel & Casino. Effective January 15, 2015, CEC deconsolidated CEOC subsequent to its voluntarily filing for reorganization under Chapter 11 of the United States Bankruptcy Code. As such, all amounts presented in this earnings release exclude the operating results of CEOC subsequent to January 15, 2015. Prior period results have not been recast to reflect the deconsolidation of CEOC. Because CEOC operating results for 2015 are not comparable with 2014 as a result of CEOC's deconsolidation, the analysis of our operating results in this release will include discussion of the components that remain in the consolidated CEC entity subsequent to the deconsolidation of CEOC. Second Quarter 2015 Financial Results The Company views each casino property and CIE as operating segments and aggregate all such casino properties and CIE into four reportable segments based on management's view of these properties. Segment results in this release are presented consistent with the way Caesars management assesses these results, except that for financial reporting purposes our results exclude CEOC results subsequent to its deconsolidation. Segment results in this release are adjusted for the impact of certain transactions between reportable segments within Caesars. Therefore, the results of certain reportable segments presented in this release differ from the financial statement information presented in their separate filings. All comparisons are to the same period from the previous year. CERP CERP owns and operates six casinos in the United States, along with The LINQ promenade and Octavius Tower at Caesars Palace Las Vegas. Net revenues for the second quarter of 2015 were $566 million, a 5.2% increase. Casino revenues were $299 million in the second quarter 2015, a 6.0% increase primarily driven by higher gaming revenues due to increases in slot revenues and favorable hold year-over-year largely at Paris. Room revenues rose 8.7% in the quarter to $138 million due to a 10.5% increase in cash ADR. Food and beverage revenues in the second quarter of 2015 were $137 million, up 2.2% driven by the ramp up of new outlets. Income from operations of $126 million was primarily attributable to a reduction in operating expenses associated with operational initiatives and increased marketing efficiencies as well as improved profitability in hotel and food and beverage outlets. Favorable hold year-over-year contributed an additional $8 million in adjusted EBITDA. CGP Casinos CGP Casinos owns and operates six casinos in the United States, primarily in Las Vegas. Net revenues for the second quarter of 2015 were $390 million, a 32.6% increase primarily due to the opening of The Cromwell and Horseshoe Baltimore in the second and third quarters of 2014, respectively, and the room renovation of The LINQ Hotel & Casino, which was completed in the second quarter of 2015. Casino revenues were $245 million in the second quarter of 2015, a 39.2% increase driven by the addition of Horseshoe Baltimore. However, the Company did experience lower gaming volumes at Harrah's New Orleans, which was impacted by the smoking ban that went into effect in local bars, restaurants and casinos citywide on April 22, 2015. Horseshoe Baltimore performance was also adversely affected by the civil unrest in the city at the end of April and into May. Room revenue increased 26.2% in the quarter to $82 million as a result of the completed new rooms at The LINQ Hotel & Casino. Food and beverage revenues were $66 million in the second quarter of 2015, up 15.8%, primarily from the opening of new outlets at Horseshoe Baltimore, The Cromwell and The LINQ Hotel & Casino. Income from operations of $44 million was primarily driven by increased revenues and improvements in marketing and operational efficiencies partially offset by increased expenses associated with the openings of Horseshoe Baltimore and The Cromwell and management fees incurred after the acquisition of the four casino properties in May 2014. Horseshoe Baltimore and The Cromwell generated an incremental $12 million in adjusted EBITDA in the quarter. CIE CIE, a subsidiary of CGP, owns and operates (1) an online games business providing social and mobile games and (2) the World Series of Poker ("WSOP") and regulated real-money online gaming. Net revenues for the second quarter of 2015 were $186 million, a 28.8% increase driven primarily by strong organic growth in the social and mobile games business. Income from operations of $54 million was primarily driven by the income impact of increased revenues. CEOC and CES CEOC owns and operates 19 casinos in the United States and nine internationally, most of which are located in England. Managed 15 casinos, which included the six CGP casinos and nine casinos for unrelated third parties. Effective October 2014, substantially all the Company's properties are managed by CES (and the remaining properties will be transitioned upon regulatory approval). CES is a joint venture among CERP, CEOC, and a subsidiary of CGP for which it provides certain corporate and administrative services to their casino properties, including substantially all of the 28 casinos owned by CEOC and nine casinos owned by unrelated third parties (including three Indian tribes) and manages certain assets for the casinos to which it provides services and the other assets it owns, licenses or controls, and employs certain of the corresponding employees. A complete copy of the Company's financial results for the second quarter of 2015 is available for free at: http://is.gd/LhM75I 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. CAN AM DEVELOPMENT: Case Summary & 4 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Can Am Development Wichita LLC 5915 N Echo Canyon Ln Phoenix, AZ 85018-1249 Case No.: 15-10052 Nature of Business: Single Asset Real Estate Chapter 11 Petition Date: August 7, 2015 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Hon. Brenda K. Martin Debtor's Counsel: Richard A Drake, Esq. DRAKE LAW FIRM PLC 14500 N Northsight Boulevard, Suite 208 Scottsdale, AZ 85260 Tel: 602-687-8800 Fax: 602-387-8979 Email: rdrake@bdlawyers.com Total Assets: $1.2 million Total Liabilities: $2.1 million The petition was signed by Bernard Weiner, member. A list of the Debtor's four largest unsecured creditors is available for free at http://bankrupt.com/misc/azb15-10052.pdf CANAL ASPHALT: CL Consulting Reserves Right to Cash Use Bid ----------------------------------------------------------- C.L. Consulting & Management Corp. filed a statement with the U.S. Bankruptcy Court for the Southern District of New York saying it supports Canal Asphalt, Inc.'s ongoing operations and is not demanding adequate protection at this time, but reserves all its rights with respect to the Debtor's request to use cash collateral. Attorney for C.L. Consulting: David M. Capriotti, Esq. HARRIS BEACH PLLC 333 West Washington St., Suite 200 Syracuse, NY 13202 Tel: (315) 423-7100 Email: dcapriotti@harrisbeach.com Canal Asphalt Inc. filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 15-23094) on July 31, 2015. The petition was signed by August Nigro III as president. The Debtor disclosed total assets of $20.3 million and total liabilities of $23 million. Goetz Fitzpatrick LLP serves as the Debtor's counsel. Hon. Robert D. Drain presides over the case. CARLOS CASTILLO: Bank's Bid for Summary Judgment Granted -------------------------------------------------------- New York Community Bank moved for summary judgment on its complaint for foreclosure against Carlos Castillo, contending that Castillo breached his obligations under the terms of his loan agreement and mortgage by failing to tender monthly payments commencing with his January 1, 2010 payment and subsequent payments thereafter. Judge Joseph Farneti of the Supreme Court for Suffolk County granted NY Community's motion, holding that Castillo failed to raise any triable issues of fact as to a bona fide defense to the action, like waiver, estoppel, bad faith, fraud, or oppressive or unconscionable conduct on the part of the plaintiff. Judge Farneti also noted that Castillo does not deny that he has not made payments of interest or principal on the note. The case is NEW YORK COMMUNITY BANK, Plaintiff, v. CARLOS CASTILLO A/K/A CARLOS E. CASTILLO: MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. AS NOMINEE FOR OHIO SAVINGS BANK; CAPITAL ONE BANK. "JOHN DOE #1-5", and "JANE DOE #1-5", said names being fictitious, it being the intention of Plaintiff to designate any and all occupants, tenants, persons or corporations, if any, having or claiming an interest in or lien upon the premises being foreclosed herein, Defendant, DOCKET NO. 20063-12, MOTION SEQ. NO. 003-MG (N.Y.). A full-text copy of Judge Farneti's July 10, 2015 order is available at http://is.gd/aMts28from Leagle.com. Plaintiff is represented by: STAGG, TERENZI, CONFUSIONE & WABNIK, LLP 401 Franklin Avenue, Suite 300 Garden City, N. Y. 11530 Tel: (516) 812-4500 Fax: (516) 812-4600 Carlos Castillo is represented by: THE RANALLI LAW GROUP PLLC 742 Veterans Memorial Highway Hauppauge, N. Y. 11788 Tel: (631) 780-6917 Fax: (631) 780-5755 CENTRAL ENERGY: Incurs $667,000 Net Loss in Second Quarter ---------------------------------------------------------- Central Energy Partners LP filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $667,000 on $686,000 of revenues for the three months ended June 30, 2015, compared to a net loss of $97,000 on $1.2 million of revenues for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $1.3 million on $1.6 million of revenues compared to a net loss of $408,000 on $2.5 million of revenues for the same period during the prior year. As of June 30, 2015, the Company had $7.4 million in total assets, $9.2 million in total liabilities and a $1.8 million total partners' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/VJwAiN About Central Energy Partners Dallas, Tex.-based Central Energy Partners LP is a publicly-traded Delaware limited partnership. It currently provides liquid bulk storage, trans-loading and transportation services for hazardous chemicals and petroleum products through its wholly-owned subsidiary, Regional Enterprises, Inc. Central Energy reported a net loss of $284,000 on $5.07 million of revenues for the year ended Dec. 31, 2014, compared to a net loss of $521,000 on $4.75 million of revenues for the year ended Dec. 31, 2013. Montgomery Coscia Greilich, LLP, in Plano, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that Central has incurred recurring losses and has a deficit in working capital that raise substantial doubt about its ability to continue as a going concern. CHROMCRAFT REVINGTON: To Be Liquidated by Ch. 7 Trustee ------------------------------------------------------- Bill Rochelle, a bankruptcy columnist for Bloomberg News, reported that the attempted reorganization of Chromcraft Revington Inc. was converted to a Chapter 7 liquidation, with the appointment of separate trustees for the company and its bankrupt parent. According to the report, the U.S. Trustee sought conversion to Chapter 7 after the secured lender decided to stop providing financing for the Chapter 11 effort, which began in March. The company didn't oppose, the report said. About Chromcraft Revington Chromcraft Revington, Inc., a Delaware corporation incorporated in 1992, is engaged in the design, import, manufacture and marketing of residential and commercial furniture. The Company is headquartered in West Lafayette, Indiana with furniture manufacturing, warehousing and distribution operations in Senatobia, Mississippi and Compton, California; and through the second quarter of 2013, warehouse and distribution operations in Delphi, Indiana. As reported in the Troubled Company Reporter on March 9, 2015, Katy Stech, writing for Daily Bankruptcy Review, reported that furniture seller Chromcraft Revington Inc., which halted operations last year, filed for bankruptcy on March 5 to shut down operations under the court's watch. COCO BEACH GOLF: U.S. Trustee Objects to Golf Course Sale --------------------------------------------------------- Kirk O'Neil, writing for The Deal, reported that Guy G. Gebhardt, Acting U.S. Trustee for Region 21, objected to a proposed sale of Coco Beach Golf & Country Club SE, a bankrupt Puerto Rico golf course that licenses the Trump brand, on grounds that include concerns that the $2.04 million purchase price may be too low. According to the report, the U.S. Trustee asserted that the Debtor's assets, which include two 18-hole championship golf courses and a luxury clubhouse, were originally transferred to the debtor by an insider and valued at $16.6 million. The property now allegedly has a value of $1 million and the stalking-horse bidder OHorizons Global LLC has offered to buy the assets for $2.04 million, the report said, citing court papers. Coco Beach Golf & Country Club, S.E., owner of a first class golf and country club in Rio Grande, Puerto Rico, currently operating under the name of Trump International Golf Club Puerto Rico, sought Chapter 11 protection (Bankr. D.P.R. Case No. 15-05312) in Old San Juan, Puerto Rico, on July 13, 2015, and immediately filed a motion seeking to sell most of the assets for $2.04 million in cash to OHorizons Global, LLC, subject to higher and better offers. Charles Alfred Cuprill, Esq., at Charles A Cuprill, PSC Law Office, serves as counsel to the Debtor. The case is assigned to Judge Enrique S. Lamoutte Inclan. COMMUNICATIONS SALES: Moody's Lowers Corp. Family Rating to 'B2' ---------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating (CFR) of Communications Sales & Leasing, Inc. ("CS&L" or "the company") to B2 from B1 following a downgrade of its sole tenant Windstream Services, LLC. Moody's has also downgraded CS&L's senior unsecured notes to Caa1 from B3 and senior secured notes and 1st lien credit facilities to B1 from Ba3. The outlook is stable. Downgrades: Issuer: Communications Sales & Leasing, Inc Corporate Family Rating, downgraded to B2 from B1 Probability of Default Rating, downgraded to B2-PD from B1-PD Senior Secured Bank Credit Facility, downgraded to B1, LGD3 from Ba3, LGD3 Senior Secured Regular Bond/Debenture, downgraded to B1, LGD3 from Ba3, LGD3 Senior Unsecured Regular Bond/Debenture, downgraded to Caa1, LGD5 from B3, LGD5 Affirmations: Issuer: Communications Sales & Leasing, Inc Speculative Grade Liquidity Rating, Affirmed SGL-2 RATINGS RATIONALE The downgrade of CS&L to B2 reflects the deteriorating credit profile of Windstream, CS&L's sole tenant and the source of nearly all its revenues. The B2 rating reflects CS&L's stable predictable revenues and high margins, offset by its high leverage of over 5x, the near 100% revenue concentration with Windstream (B1 stable) as its only tenant and its weak retained free cash flow as a result of its high dividend payout. With a single tenant, CS&L is fully dependent upon and inextricably linked to the credit strength of Windstream. The rating also reflects the amount and structure of liabilities within Windstream relative to the lease obligation. While CS&L meets the IRS standard for a REIT, Moody's does not believe that CS&L's credit profile is comparable to the rated universe of traditional real-estate entities and has, therefore, applied Moody's Global Communications Infrastructure Methodology to the assessment of CS&L's creditworthiness. The master lease with Windstream Holdings Inc., parent of Windstream Services LLC, represents nearly all of CS&L's revenues, and is funded via inter-company dividends from Windstream Services LLC to Windstream Holdings Inc. Moody's views the lease as an unsecured obligation of Windstream Holdings Inc., subordinate to all liabilities of Windstream Services LLC, where all cash flows originate. The subordinate position of the master lease creates an effective upper limit on the credit rating of CS&L which is capped by the corporate family rating of Windstream and influenced further by the amount and structure of debt senior to the master lease. Given the nature of CS&L's assets and the tight link that the company has to Windstream, the lease payment is likely to be treated by Windstream as a high priority payable. CS&L's rights to terminate the lease under certain conditions and effectively evict Windstream from the leased assets gives CS&L some negotiating power in a distressed scenario. The combination of strong contract terms and a mutual dependency between CS&L and Windstream provides CS&L some additional credit strength versus a strict structural interpretation of the lease obligation within the priority of claims of Windstream. The strong contract terms and the strategic importance of the lease to Windstream result in approximately 1-notch of uplift for CS&L's corporate family rating versus a strict structural interpretation of its position within the combined priority of claims. Moody's expects CS&L to have good liquidity over the next 12-18 months, supported by $100 million of cash and an undrawn $500 million revolver. Moody's expects CS&L to be approximately free cash flow neutral for the next several years, primarily due to its high dividend payout. The relative stability of the company's cash flow generation and good visibility into capital expenditures eliminates the risk of unforeseen liquidity needs. The ratings for the debt instruments reflect both the probability of default of CS&L, to which Moody's assigns a PDR of B2-PD, and individual loss given default assessments. Moody's rates CS&L's senior secured credit facilities and senior secured notes at B1 (LGD3). CS&L's senior unsecured notes are rated Caa1 ( LGD5), reflecting their junior position in the capital structure. The stable outlook reflects Moody's view that CS&L will be able to generate modest revenue growth and stable cash flows. Moody's could lower the ratings if leverage were to rise or if there is any negative change in the credit profile or shifts within the capital structure at Windstream. While unlikely given the dependency on Windstream's credit profile, Moody's could raise CS&L's ratings if leverage were to be sustained below 4x (Moody's adjusted). CS&L's rating could become decoupled from Windstream's ratings if it achieves sufficient revenue diversification such that a stand alone credit assessment is warranted. Communications Sales & Leasing, Inc ("CS&L" or "the company") is a publicly traded, real estate investment trust (REIT) that was spun off from Windstream Holdings, Inc. in April of 2015. The principal methodology used in these ratings was Global Communications Infrastructure Rating Methodology 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. CORPORATE RESOURCE: Files Schedules of Assets and Liabilities ------------------------------------------------------------- Corporate Resource and its debtor affiliates filed with the U.S. Bankruptcy Court for the District of Delaware schedules of assets and liabilities and statements of financial affairs disclosing the following: Debtor Assets Debts ------ ----------- ----------- Corporate Resource Services, Inc. $136,800 $45,388,666 AccountAbilities, Inc. $1,935,297 $116,158 Insurance Overload Services, Inc. $0 $396,801 Integrated Consulting Group, Inc. $443,500 $5,520 Corporate Resource Development, Inc. $1,854,018 $430,187 The CRS Group, Inc. $0 $172,199 Diamond Staffing Services, Inc. $9,390,473 $2,011,099 TS Staffing Services, Inc. $15,917,641 $766,586 Full-text copies of Corporate Resource Services' Schedules and Statement are available at http://is.gd/WQJPtcand http://is.gd/OirxOa Full-text copies of AccountAbilities' Schedules and Statement are available at http://bankrupt.com/misc/CRSI11547sal.pdfand http://bankrupt.com/misc/CRSI11547sofa.pdf Full-text copies of Insurance Overload's Schedules and Statement are available at http://bankrupt.com/misc/CRSI11548sal.pdfand http://bankrupt.com/misc/CRSI11548sofa.pdf Full-text copies of Integrated Consulting's Schedules and Statement are available at http://is.gd/ma3h2Land http://is.gd/l4RNVe Full-text copies of Corporate Resource Development's Schedules and Statement are available at http://is.gd/Or6AOTand http://is.gd/Sydmxs Full-text copies of CRS Group's Schedules and Statement are available at http://bankrupt.com/misc/CRSI11551sal.pdfand http://bankrupt.com/misc/CRSI11551sofa.pdf Full-text copies of Diamond Staffing's Schedules and Statement are available at http://bankrupt.com/misc/CRSI11552sal.pdfand http://bankrupt.com/misc/CRSI11552sofa.pdf Full-text copies of TS Staffing's Schedules and Statement are available at http://bankrupt.com/misc/CRSI11553sal.pdfand http://bankrupt.com/misc/CRSI11553sofa.pdf About Corporate Resource Corporate Resource Services, Inc., was a New York-based provider of employment and human resource solutions for corporations throughout the United States. CRS leases its headquarters and does not own any real property. About 90% of CRS shares are owned by Robert Cassera and the balance are traded OTC. As of Dec. 31, 2014, CRS was one of the largest employment staffing companies in the U.S., providing employment and human resources solutions for corporations with annual sales of about one billion dollars. In February 2015, CRS began an orderly wind down of operations after discovering that TS Employment, Inc., a privately held company owned by Mr. Cassera, failed to remit tens of millions of dollars of the Debtors' withholding taxes to taxing authorities. TS Employment Inc., a professional employer organization that provided payroll-related services for CRS, sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10243) in Manhattan on Feb. 2, 2015. TSE tapped Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, in New York, as counsel. Realization Services Inc. serves as the Debtor's consultant. CRS and its subsidiaries sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 15-11546) on July 23, 2015, to complete their orderly wind down of operations. Judge Kevin J. Carey presides over the Chapter 11 cases. The Debtors tapped (a) Gellert Scali Busenkell & Brown, LLC, as bankruptcy counsel, (b) Wilmer Cutler Pickering Hale & Dorr LLP, as special counsel; (c) Carter Ledyard & Milburn LLP, as special SEC counsel, (d) SSG Capital Advisors as financail avisors and investment bankers, and (e) Rust Omni LLC as claims agent. CRS estimated $10 million to $50 million in assets and $50 million to $100 million in debt. CORPORATE RESOURCE: Wells Fargo Reserves Right to Cash Use Bid -------------------------------------------------------------- Wells Fargo Bank, National Association, notifies the U.S. Bankruptcy Court for the District of Delaware that it does not object to Corporate Resource Services, Inc., et al.'s request to use its cash collateral on an interim basis, Wells Fargo expressly reserves its rights to object to the further use of Cash Collateral on a further interim or final basis, file an objection to the Cash Collateral Motion, raise any arguments in connection with the use of Cash Collateral at any further interim and final hearing concerning the use of Cash Collateral and to call any witnesses, and present any evidence in support of its positions, at any hearing on these matters. As previously reported by The Troubled Company Reporter, U.S. Bankruptcy Judge Mary F. Walrath gave the Debtors interim authority to use cash collateral until Aug. 31, 2015. As of Jan. 27, 2015, the Debtors owed Wells Fargo $60,000,000. As a result of the wind down imposed by Wells Fargo, the principal and interest obligations on the loans, have been satisfied in full. Attorneys for Wells Fargo: Jonathan N. Helfat, Esq. Daniel F. Fiorillo, Esq. OTTERBOURG P.C. 230 Park Avenue New York, NY 10169 Tel: (212) 661-9100 Email: jhelfat@otterbourg.com dfiorillo@otterbourg.com About Corporate Resource Corporate Resource Services, Inc., was a New York-based provider of employment and human resource solutions for corporations throughout the United States. CRS leases its headquarters and does not own any real property. About 90% of CRS shares are owned by Robert Cassera and the balance are traded OTC. As of Dec. 31, 2014, CRS was one of the largest employment staffing companies in the U.S., providing employment and human resources solutions for corporations with annual sales of about one billion dollars. In February 2015, CRS began an orderly wind down of operations after discovering that TS Employment, Inc., a privately held company owned by Mr. Cassera, failed to remit tens of millions of dollars of the Debtors' withholding taxes to taxing authorities. TS Employment Inc., a professional employer organization that provided payroll-related services for CRS, sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10243) in Manhattan on Feb. 2, 2015. TSE tapped Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, in New York, as counsel. Realization Services Inc. serves as the Debtor's consultant. CRS and its subsidiaries sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 15-11546) on July 23, 2015, to complete their orderly wind down of operations. Judge Kevin J. Carey presides over the Chapter 11 cases. The Debtors tapped (a) Gellert Scali Busenkell & Brown, LLC, as bankruptcy counsel, (b) Wilmer Cutler Pickering Hale & Dorr LLP, as special counsel; (c) Carter Ledyard & Milburn LLP, as special SEC counsel, (d) SSG Capital Advisors as financail avisors and investment bankers, and (e) Rust Omni LLC as claims agent. CRS estimated $10 million to $50 million in assets and $50 million to $100 million in debt. COYNE INT'L: Can Employ Rust Consulting as Claims Agent ------------------------------------------------------- Judge Margaret Cangilos-Ruiz of the U.S. Bankruptcy Court for the Northern District of New York authorized Coyne International Enterprises Corp. to employ Rust Consulting/Omni Bankruptcy as claims and noticing agent. Coyne International Enterprises Corp. filed a Chapter 11 bankruptcy petition (Bankr. N.D.N.Y. Case No. 15-31160) on July 31, 2015. The petition was signed by Mark Samson as CEO. The Debtor estimated assets of $10 million to $50 million and liabilities of at least $50 million. Herrick Feinstein LLP serves as the Debtor's general counsel. Phillips Lytle LLP acts as the Debtor's local bankruptcy counsel. Cohnreznick LLP is the Debtor's financial advisor. SSG Capital Advisors LLC is the Debtor's investment banker. Rust Omni serves the Debtor as claims and administrative agent. Raab, Sturm & Ganchrow, LLP acts as labor counsel to the Debtor. Harbridge Consulting Group, LLC serves as the Debtor's pension consultant. Beveridge & Diamond PC is the Debtor's environmental counsel. GZA Geoenvironmental, Inc., represents the Debtor as environmental consultant. COYNE INT'L: Has Interim Authority to Obtain DIP Loan from NXT -------------------------------------------------------------- Judge Margaret Cangilos-Ruiz of the U.S. Bankruptcy Court for the Northern District of New York gave Coyne International Enterprises Corp. interim authority to obtain postpetition financing from NXT Capital LLC and a consortium of lenders. NXT Capital is also the Debtor's prepetition lender. As of the Petition Date, the Debtor is liable for payment of the Prepetition Senior Debt, and the Prepetition Senior Debt will be an allowed secured claim in an amount not less than $30,000,000 and an allowed claim in an amount not less than $33,918,000. As of the Petition Date, the Debtor is liable for payment of the Prepetition Junior Debt, and the Prepetition Junior Debt will be an allowed claim in an amount not less than $28,660,610. The Debtors are authorized to obtain Postpetition Debt at an amount not to exceed the sum of $3,500,000 plus the amount of Prepetition Senior Debt paid or deemed repaid or refinanced with proceeds of Postpetition Debt; provided, however that pending the Final Hearing, the maximum principal amount of Postpetition Debt outstanding will not at any time exceed the Interim Amount. The Postpetition Debt will bear interest at the same existing default rate of interest in respect of the Prepetition Senior Debt under the Prepetition Credit Agreement. Base Rate Loans under the Postpetition Credit Agreement bear interest at a per annum rate at the Base Rate plus 7%. LIBOR Loans under the Postpetition Credit Agreement bear interest at LIBOR plus 8%. The Final Hearing is scheduled for August 31, 2015. A full-text copy of the Interim Order with Budget is available at http://bankrupt.com/misc/COYNEdipord0805.pdf Coyne International Enterprises Corp. filed a Chapter 11 bankruptcy petition (Bankr. N.D.N.Y. Case No. 15-31160) on July 31, 2015. The petition was signed by Mark Samson as CEO. The Debtor estimated assets of $10 million to $50 million and liabilities of at least $50 million. Herrick Feinstein LLP serves as the Debtor's general counsel. Phillips Lytle LLP acts as the Debtor's local bankruptcy counsel. Cohnreznick LLP is the Debtor's financial advisor. SSG Capital Advisors LLC is the Debtor's investment banker. Rust Omni serves the Debtor as claims and administrative agent. Raab, Sturm & Ganchrow, LLP acts as labor counsel to the Debtor. Harbridge Consulting Group, LLC serves as the Debtor's pension consultant. Beveridge & Diamond PC is the Debtor's environmental counsel. GZA Geoenvironmental, Inc., represents the Debtor as environmental consultant. COYNE INT'L: Has Interim OK to Pay $650K to Critical Vendors ------------------------------------------------------------ Judge Margaret Cangilos-Ruiz of the U.S. Bankruptcy Court for the Northern District of New York gave Coyne International Enterprises Corp. interim authority to pay not more than $650,000 to satisfy critical vendor claims. The Debtor is directed to take all appropriate efforts to cause each Critical Vendor to enter into a Trade Agreement with the Debtor based on customary trade terms or other favorable trade terms as mutually agreed to by the Debtor and the Critical Vendor. Coyne International Enterprises Corp. filed a Chapter 11 bankruptcy petition (Bankr. N.D.N.Y. Case No. 15-31160) on July 31, 2015. The petition was signed by Mark Samson as CEO. The Debtor estimated assets of $10 million to $50 million and liabilities of at least $50 million. Herrick Feinstein LLP serves as the Debtor's general counsel. Phillips Lytle LLP acts as the Debtor's local bankruptcy counsel. Cohnreznick LLP is the Debtor's financial advisor. SSG Capital Advisors LLC is the Debtor's investment banker. Rust Omni serves the Debtor as claims and administrative agent. Raab, Sturm & Ganchrow, LLP acts as labor counsel to the Debtor. Harbridge Consulting Group, LLC serves as the Debtor's pension consultant. Beveridge & Diamond PC is the Debtor's environmental counsel. GZA Geoenvironmental, Inc., represents the Debtor as environmental consultant. COYNE INT'L: Has Until Aug. 28, 2015 to File Schedules ------------------------------------------------------ Judge Margaret Cangilos-Ruiz of the U.S. Bankruptcy Court for the Northern District of New York gave Coyne International Enterprises Corp. until August 28, 2015, to file their schedules of assets and liabilities and statement of financial affairs. The Debtor sought and obtained Court authority to file its Schedules, Statement of Financial Affairs, and all their supplements, and matrices, which redact identifying information relating to its Customers and Customer Accounts. Coyne International Enterprises Corp. filed a Chapter 11 bankruptcy petition (Bankr. N.D.N.Y. Case No. 15-31160) on July 31, 2015. The petition was signed by Mark Samson as CEO. The Debtor estimated assets of $10 million to $50 million and liabilities of at least $50 million. Herrick Feinstein LLP serves as the Debtor's general counsel. Phillips Lytle LLP acts as the Debtor's local bankruptcy counsel. Cohnreznick LLP is the Debtor's financial advisor. SSG Capital Advisors LLC is the Debtor's investment banker. Rust Omni serves the Debtor as claims and administrative agent. Raab, Sturm & Ganchrow, LLP acts as labor counsel to the Debtor. Harbridge Consulting Group, LLC serves as the Debtor's pension consultant. Beveridge & Diamond PC is the Debtor's environmental counsel. GZA Geoenvironmental, Inc., represents the Debtor as environmental consultant. COYNE INT'L: Nov. 16, 2015 Fixed as General Claims Bar Date ----------------------------------------------------------- Judge Margaret Cangilos-Ruiz of the U.S. Bankruptcy Court for the Northern District of New York issued an order fixing November 16, 2015, as the deadline for any entity, other than a governmental unti, to file proofs of claim or interest against Coyne International Enterprises Corp. The deadline to file proofs of claim or interest for a governmental unit is fixed at January 27, 2016. Coyne International Enterprises Corp. filed a Chapter 11 bankruptcy petition (Bankr. N.D.N.Y. Case No. 15-31160) on July 31, 2015. The petition was signed by Mark Samson as CEO. The Debtor estimated assets of $10 million to $50 million and liabilities of at least $50 million. Herrick Feinstein LLP serves as the Debtor's general counsel. Phillips Lytle LLP acts as the Debtor's local bankruptcy counsel. Cohnreznick LLP is the Debtor's financial advisor. SSG Capital Advisors LLC is the Debtor's investment banker. Rust Omni serves the Debtor as claims and administrative agent. Raab, Sturm & Ganchrow, LLP acts as labor counsel to the Debtor. Harbridge Consulting Group, LLC serves as the Debtor's pension consultant. Beveridge & Diamond PC is the Debtor's environmental counsel. GZA Geoenvironmental, Inc., represents the Debtor as environmental consultant. CRAIG WALKER: Files for Ch 11; Wells Fargo Wants Case Dismissed --------------------------------------------------------------- Cathy Proctor at Denver Business Journal reports that Craig Walker and his wife Susan filed for Chapter 11 bankruptcy protection on July 24, 2015, estimating their assets at between $100 million and $500 million and liabilities at between $10 million and $50 million. The Walkers' businesses "should not be impacted by the Chapter 11 filing. The whole point of a Chapter 11 is to continue the operation of the entities," Business Journal quoted Christopher (C.J.) Conant, Esq., who serves as the Walkers' bankruptcy counsel, as saying. Business Journal relates that Wells Fargo Bank, one of the Walkers' largest creditors and owed more than $28 million, is asking the Bankruptcy Court to dismiss the case, saying that the bankruptcy petition was an effort to "avoid" repayment of a 2002 loan to refinance a downtown Chicago office building. The Bank said in court filings, "The Walkers have filed this case in continuation of an 11-year effort to avoid payment of loan indebtedness owed by Mr. Walker to Wells Fargo . . . . It is clear from this history that this bankruptcy is not about seeking an equitable distribution of assets. It is about thwarting the receiver's efforts and avoiding paying the judgment entered against the Walkers . . . . The court should not allow the Walkers to shop for a new forum -- after losing in two prior forums -- in order to shield assets already under a receiver's control." The Bank said in court documents that a receiver has taken possession of most of the Walkers' property in order to sell it to repay the debt. According to the Bank's court filings, a Cook County Court judge in 2012 ruled that Mr. Walker was obligated to repay a loan that that "had been procured by fraud." The case started with the acquisition of an office building in Chicago in 2000 for $11.4 million by Mr. Walker and partner Steven Byers. The two men formed in 2002 the 318 West Adams LLC to refinance the property with CIBC Inc. Business Journal relates that the Bank got involved because the 2002 loan was pooled with other loans and put into a commercial mortgage-backed securities trust that had the Bank as the trustee. The Bank claims in court filings that CIBC granted the loan after "misrepresentations as to the building's occupancy, the rents being paid by the tenants and the price Byers and Mr. Walker had paid for the building." According to the Bank, the borrowers made nine payments on the 2002 loan, then stopped paying, sending the loan into default. Business Journal recalls that the Bank began foreclosure proceedings on the loan in February 2004 and a year later amended its complaint to ask that Mr. Walker be made personally liable for the loan. The Bank said in court filings that the case ultimately went to the Illinois Surpeme Court, but the decisions were in the Bank's favor, and within three months of the ruling, Mr. Walker had transferred assets that a Douglas County District Court later determined to be worth more than $27 million. A Douglas County District Court judge found on July 2, 2015, that the transfer was done with the "intent to hinder, delay or defraud Wells Fargo," and Mr. Walker was held in contempt of court for transferring the assets against the court's orders. The Bank said in court documents that it has asked an Illinois court to issue a bench warrant for Mr. Walker's arrest, and also filed a request that he be held in contempt by the Douglas County District Court. Daniel Hefter, Esq., represents the Bank, Business Journal reports. Craig Walker owns ranches, a bank, and a manufacturing company in Colorado. CTP TRANSPORTATION: S&P Puts 'B+' CCR on CreditWatch Negative ------------------------------------------------------------- Standard & Poor's Ratings Services said that it has placed its 'B+' corporate credit rating on Franklin, Tenn.-based CTP Transportation Products Holdings LLC on CreditWatch with negative implications. At the same time, S&P placed its 'B+' issue-level rating on the company's 8.25% senior secured notes due 2019 on CreditWatch with negative implications. The '4' recovery rating on the notes remains unchanged, indicating S&P's expectation for average (30%-50%; upper half of the range) recovery in the event of a payment default. "The CreditWatch placement follows CTP's announcement that it will sell its belts business to The Timken Co. for $220 million," said Standard & Poor's credit analyst James Siahaan. "We do not currently expect the company to use the proceeds from this sale to reduce its debt." CTP's senior secured notes are not callable until the end of 2016, and, even then, we view the likelihood that the company would pay a call premium to tender the bonds as remote. S&P expects that CTP's remaining business lines will generate roughly $49 million in pro forma EBITDA. Pro forma for the transaction (which S&P expects will close within the next couple of months), it expects that CTP's adjusted debt-to-EBITDA metric will weaken to over 6.5x from 5.1x as of March 31, 2015. This would be inconsistent with S&P's existing "aggressive" assessment of the company's financial risk profile, thus S&P will likely revise its financial risk assessment on CTP to "highly leveraged" upon the completion of this transaction. S&P expects to resolve the CreditWatch placement once the transaction is finalized, or whenever the company releases more details to the public. S&P could lower its corporate credit rating on CTP by one notch or more depending on the impact of the transformation on the company. Specifically, S&P could lower its corporate credit rating on the company by two notches to 'B-' if it expects that CTP's debt leverage will persistently remain over 6.0x or if its liquidity becomes pressured during the next year. S&P could also lower its corporate credit rating on the company by one notch to 'B' if CTP uses some of the proceeds from the sale to reduce its debt but is unable to prevent its adjusted debt-to-EBITDA ratio from exceeding 5.0x on a sustained basis. DORAL FINANCIAL: Files Bankruptcy Rule 2015.3 Report ---------------------------------------------------- Doral Financial Corp. filed a report with the U.S. Bankruptcy Court for the Southern District of New York, disclosing that it holds 100% interest in these companies: Companies Interest of Estate --------- ------------------ Doral Insurance Agency LLC 100% Doral Properties Inc. 100% Doral Recovery Inc. 100% The company filed the report pursuant to Bankruptcy Rule 2015.3. The report dated June 19, 2015, is available for free at http://is.gd/nlkJpj About Doral Financial Doral Financial Corporation is a holding company whose primary operating asset was equity in Doral Bank. DFC maintains offices in New York City, Coral Gables, Florida and San Juan, Puerto Rico. DFC has three wholly-owned subsidiaries: (i) Doral Properties, Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and (iii) Doral Recovery, Inc. On Feb. 27, 2015, regulators placed Doral Bank into receivership and named the Federal Deposit Insurance Corp. as receiver. Doral Bank served customers through 26 branches located in New York, Florida, and Puerto Rico. DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 15-10573) in Manhattan on March 11, 2015. The case is assigned to Judge Shelley C. Chapman. DFC estimated $50 million to $100 million in assets and $100 million to $500 million in debt as of the bankruptcy filing. The Debtor tapped Ropes & Gray LLP as counsel. The U.S. trustee overseeing the Chapter 11 case of Doral Financial Corp. appointed five creditors of the company to serve on the official committee of unsecured creditors. DOWLING COLLEGE: S&P Cuts 1996/2002 Bond Ratings on Missed Payments ------------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its rating on the Suffolk County Industrial Development Agency, N.Y.'s series 1996 and the Brookhaven Industrial Development Agency's series 2002 revenue bonds issued for Dowling College, to 'D' from 'B'. "The downgrade reflects our assessment of Dowling College's missed interest payments on its series 2002 and 1996 bonds in April and May 2015, respectively," said Standard & Poor's credit analyst Emily Avila. Approximately $295,000 of interest was due in April 2015 and approximately $104,000 of interest was due in May 2015. Management had the funds available to make the interest payments but elected not to pursuant to the terms of a forbearance agreement that it entered into on June 15, 2015. According to S&P's timeliness of payments criteria, it will apply the 'D' rating if it expects payment will not be made within the earlier of the stated grace period or 30 calendar days after the due date. According to management, Downing College does not expect to make debt service payments until the forbearance agreement that it entered with a majority of its long-term debtholders terminates on June 30, 2016, unless terminated earlier in accordance with the covenants in the agreement. DPL INC: Moody's Affirms Ba3 Sr. Unsecured Long Term Debt Rating ---------------------------------------------------------------- Moody's Investors Service affirmed the Ba3 senior unsecured long term debt rating of DPL Inc and Dophin Sub II, Inc. (assumed by DPL Inc). Concurrently, Moody's also affirmed the ratings of Dayton Power & Light Company (DP&L) including its Baa3 Issuer rating, its Baa2 senior secured rating and its Ba2 preferred stock rating. The rating outlooks are stable. Moody's also withdrew the public ratings of both issuer's previously existing bank credit arrangements that were scheduled to expire in May 2018. These consisted of two unsecured revolving credit facilities executed by DP&L (up to $300 million) and DPL (up to $100 million) as well as DPL's unsecured bank loan (outstanding amount March 2015: $130 million). On July 31, 2015, the issuers replaced these liquidity arrangements with the following; DPL executed a five year secured revolving credit facility for up to $300 million as well as an amortizing $125 million bank loan due, both due in 2020; DP&L executed a new 5-year unsecured revolving credit facility for up to $200 million scheduled to expire in 2020. RATINGS RATIONALE The affirmations of DPL's and DP&L's ratings are largely driven by Moody's acknowledgement of the group's prudent risk management initiatives to enhance the group's liquidity profile. The previous existing bank arrangements were scheduled to expire in May 2018; however, DPL's previous revolving credit facility and bank loan were subject to an earlier expiration in 2016 if the holding company failed to refinance its 6.5% notes due in 2016. Therefore, the execution of the new bank arrangements well ahead of the 2016 notes maturity date is a significant credit positive. Moody's also understands that the increase in the size of DPL's revolving credit facility to $300 million (the facilities were increased to $205M with an ability to go up to $300M subject to certain conditions) aims to enhance the group's ability to support the unregulated power generation operations. At the same time, the reduction in DP&L's revolving credit facility is driven by management's anticipation of the utility's smaller liquidity requirement upon the implementation of the power generation assets separation on January 1, 2017. Moody's notes that DPL's new revolving credit facility and term loan are now secured with collateral, including capital stock in DP&L (including capital stock in DP&L limited to the amount permitted to be pledged in DPL Inc's 2011 & 2014 Bond Indentures) and a guarantee provided by DPL Energy, LLC, the owner of the group's current 556MW merchant peaking generation capacity. While this collateral package enhances the recovery expectations of these two pieces of DPL's indebtedness compared to the rest of its outstanding unsecured indebtedness, Moody's does not believe that the additional value provided by this collateral is enough to trigger a downgrade of DPL's Ba3 outstanding notes. This view also considers that the legal documentation explicitly excludes DP&L's current generation assets from becoming part of the collateral package. The affirmation of DP&L's Baa3 Issuer rating also reflects the issuer's efforts to reduce the significant financial leverage that will remain at the utility upon the separation of its generation assets from its transmission and distribution operations on January 1, 2017. To this end, DP&L has recently redeemed $114.1 million in Pollution Control Bonds (PCBs) due in 2028 and 2034, namely the 2005 Boone County PCBs of $35.3 million, the 2005 Ohio Water PCBs of $41.3 million, and $37.8 million of the $137.8 million 2005 Ohio Air PCBs. The utility further used the proceeds from the August 3, 2015 issuance of $200 million of 2015 Series A and Series B PCBs to refinance the $100 million balance of the $137.8 million 2005 Ohio Air PCBs and the $100 million 2008 Series A & Series B Ohio Air Quality PCBs. That said, the rating action is largely predicated on the assumption that the Ohio regulatory environment will remain credit supportive and that PUCO's temporary relief regarding the utility's 50% debt capital structure requirement will remain in place. This is an important consideration because according to Moody's calculations and despite the utility's deleveraging efforts DP&L will not be able to return to a 50% capital structure before the 2019/2020 timeframe. In September 2014, the PUCO temporarily allowed the utility to record long-term debt that will account for 75% of its $1 billion rate base upon the separation of the generation assets on Jan. 1, 2017. The ratings of DP&L and DPL remain constrained by the group's significant financial leverage including the material amount of holding company indebtedness. DP&L is expected to remain a significant source of cash flows to service this holding-company indebtedness. Moody's expects DPL's holding company debt will approximate $1.25 billion at year-end 2015 with further reduction upon the repayment of the $130 million outstanding under its 6.5% notes due in 2016; however, Moody's also anticipates that the holding-company indebtedness will continue to constitute 60% of the total consolidated debt over the next several years despite both issuer's efforts to reduce their respective outstanding indebtedness. DPL's ability to reduce the group's indebtedness will also depend on the financial performance of the unregulated power generation assets and the power markets. In this regard, Moody's considers credit positive for DPL the recent developments in the PJM capacity market including the regulatory approval of its Capacity Performance Plan. This is expected to boost generators' revenues as they factor potential penalties into their bid auction albeit this also exposes their financial performance to operational risks, a credit negative. The stable outlook of DP&L assumes that the utility will continue to benefit from a supportive regulatory environment including regulatory decisions beyond the tenor of its current ESP-II. It further assumes that excess cash flows will be further used to reduce its outstanding indebtedness to achieve a capital structure commensurate with an investment grade regulated utility. The stable outlook also assumes that the utility will be able to record cash flow credit metrics that are well positioned within the low end of the Baa-rating category even after the separation of its generation assets; specifically, interest coverage and retained cash flow (RCF) to debt credit metrics of 4x and mid-teens, respectively. The stable outlook assumes that that the company will also prudently manage its debt maturities, including its $445 million First Mortgage Bonds due in 2016. The stable outlook of DPL assumes that the holding company will continue decreasing its indebtedness, including its 6.5% Notes due in 2016. It further assumes that its unregulated operations will be able to generate cash flows which along with any excess cash flows received from DP&L will be used to further reduce DPL's outstanding debt. The stable outlook assumes that that the company will also prudently manage its debt maturities. An upgrade of DPL's rating over the short-term is unlikely given DP&L's anticipated capital structure upon separation and the material amount of holding-company indebtedness. That said, an upgrade could be triggered if the holding company is able to materially reduce its holding company debt either through an equity infusion from AES and/or if DPL chooses to divest its generation assets and use the proceeds to reduce outstanding indebtedness and improve its capital structure while also reducing the group's exposure to unregulated operations. Given the structural subordination considered in DPL's rating, a material reduction in the holding company indebtedness along with the utility's ability to achieve a 50% debt to rate base capital structure as required by the PUCO could also trigger positive momentum on DP&L's ratings. DPL's ratings could come under pressure should the PUCO change its decision under the September 17, 2014 Order such that it imposes significant dividend restriction on DP&L or if the requirement to improve DP&L's debt to total capitalization ratio results in a significant curtailment of the ability to upstream cash from DP&L or if DPL increases its holding company indebtedness if required to infuse equity into the utility. A downgrade of DP&L's rating could also trigger a downgrade of DPL's rating if the holding company debt remains material and without a reduction in the group's expected increased exposure to unregulated operations. The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in December 2013. DPL Inc. is a regional energy company headquartered in Dayton, Ohio and is the parent company of The Dayton Power and Light Company, a regulated electric utility. DP&L provides electric service to more than 515,000 retail customers in West Central Ohio. Its primary source of internal generating capacity is from ownership in seven coal-fired power plants with a combined generating capacity of 2,465 megawatts (MW). Additionally, DP&L owns in aggregate 432 MWs of incremental solar/natural gas/diesel-fired generating capacity. Moody's understands that the issuers is currently involved in the procedures required to release the generation assets from the collateral package provided to the utility's outstanding secured indebtedness. DPL Energy, LLC (DPLE; the guarantor of DPL's new revolver and term loan), owns and operates 556MW merchant peaking capacity in Ohio and Indiana. DPL owns the retail energy supplier DPL Energy Resources, Inc. or DPLER after selling MC Squared Energy Services, LLC. earlier this year. DPL is a subsidiary of The AES Corporation (AES: Ba3 Corporate Family Rating, stable), a globally diversified power holding company. Outlook Actions: Issuer: Dayton Power & Light Company Outlook, Remains Stable Issuer: DPL Inc. Outlook, Remains Stable Affirmations: Issuer: Dayton Power & Light Company Issuer Rating, Affirmed Baa3 Pref. Stock Preferred Stock, Affirmed Ba2 Senior Secured First Mortgage Bonds, Affirmed Baa2 Issuer: Dolphin Sub II, Inc. Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 Issuer: DPL Inc. Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 Issuer: Ohio Air Quality Development Authority (Supported by Dayton Power & Light Company) Senior Secured Revenue Bonds, Affirmed Baa2 DUFF & PHELPS: S&P Affirms 'B' CCR, Outlook Remains Stable ---------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'B' corporate credit rating on New York City-based Duff & Phelps Corp. The outlook remains stable. At the same time, S&P assigned its 'B' issue-level and '3' recovery ratings to Duff & Phelps' proposed first-lien secured credit facilities, which consist of a $75 million revolving credit facility due 2019 and a $675 million term loan due 2020. The '3' recovery rating indicates S&P's expectation for meaningful recovery (50%-70%; lower half of the range) of principal in the event of a payment default. S&P also assigned its 'CCC+' issue-level and '6' recovery rating to the company's proposed $110 million second-lien term loan due 2021. The '6' recovery rating indicates S&P's expectation for negligible recovery (0%-10%) of principal in the event of a payment default. S&P's 'B' corporate credit rating on Duff & Phelps is based on S&P's assessment of the company's business risk profile as "fair" and its financial risk profile as "highly leveraged." S&P based its business risk assessment on Duff & Phelps' position as a midsize consulting firm that primarily operates in a highly competitive national marketplace. It has a well-recognized brand name and a good reputation in the market, with a market-leading share in valuation advisory services. The company has a diverse offering of niche services that contributes to relatively stable operating performance over the business cycle. Pro forma for the proposed financing and acquisitions completed in early 2015, the company is highly leveraged with an adjusted total debt to EBITDA of 6.7x as of June 30, 2015. As a private equity owned firm, Duff & Phelps has an "aggressive" financial policy and a history of debt-financial acquisitions and special dividends. "The stable outlook reflects our expectation that Duff & Phelps will experience healthy growth over the next two years, which should enable the company to lower its adjusted pro forma debt leverage to 6.2x by year-end 2015," said Standard & Poor's credit analyst Elton Cerda. The company's pro forma adjusted debt leverage of 6.7x exceeds S&P's long-term debt leverage threshold for the 'B' corporate credit rating. S&P could lower the rating if the company is unable to quickly deleverage. More specifically, S&P could lower the rating if the company's operating performance deteriorates and causes adjusted debt leverage to remain above 6.5x into 2016 (without the prospect of a quick reversal). S&P views the probability of a one-notch upgrade to 'B+' as low. The company has an "aggressive" financial policy on shareholder returns and acquisitions. The proposed recapitalization will be the company's second debt-financed special dividends to its private equity owners since its leveraged buyout in 2013. An upgrade would require that the company implements a more conservative financial policy and decreases its adjusted debt leverage to below 5x through a combination of EBITDA growth and debt repayment. EL PASO CHILDREN'S: Oct. 30 Hearing on Bid to Use Cash Collateral ----------------------------------------------------------------- U.S. Bankruptcy Judge H. Christopher Mott will consider final approval of El Paso Children's Hospital Corp.'s bid to use its cash collateral at a hearing on Oct. 30. The company earlier received interim approval from the bankruptcy judge to use the cash collateral until Oct. 27. El Paso will use the cash collateral to fund its operating expenses and employee payroll expenses in accordance with the court-approved budget for the period May 19 to Oct. 27, 2015. University Medical Center, Cardinal Health Inc., AmerisourceBergen Drug Corp. and ASD Specialty Healthcare will receive monthly payments as "adequate protection" of their security interests in El Paso's assets. They will also get administrative claims, court filings show. UMC had earlier expressed its opposition to El Paso's request to use the cash collateral. In a court filing, UMC said it doesn't approve the use of its cash collateral to fund a challenge to its lien. The hospital also complained that it wasn't adequately protected given El Paso's "declining cash position." In response, El Paso argued that under U.S. bankruptcy law, the company may use cash collateral to avoid a lien on its assets and that UMC is already protected with the provision of replacement liens. El Paso also received objections from Cardinal Health and AmerisourceBergen. The lienholders also complained that they were not adequately protected. About El Paso Children's Hospital El Paso Children's Hospital Corporation operates the El Paso Children's Hospital, the only not-for-profit children's hospital in the El Paso region. The hospital opened its doors in February 2012, features 122 private pediatric rooms, and is located at the campus of El Paso County Hospital District dba University Medical Center of El Paso. The Company sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 15-30784) on May 19, 2015. The case is assigned to Judge H. Christopher Mott, following disputes with UMC. The Debtor tapped Jackson Walker LLP as counsel. ERG INTERMEDIATE: Files Bankruptcy Rule 2015.3 Report ----------------------------------------------------- ERG Intermediate Holdings LLC filed a report with the U.S. Bankruptcy Court for the Northern District of Texas, disclosing that ERG Holdings LLC is 100% owned by ERG Resources LLC. ERG Holdings' income statement for the year ending Dec. 31, 2014, showed a net loss of $1.14 million on total revenue of $625,202. As of Dec. 31, 2014, ERG Holdings had total assets of $7.24 million; total current liabilities of $1.73 million; total non-current liabilities of $5.48 million; and members' equity of $29,768. ERG Holdings had $99,460 cash at the beginning of the year, and $157,136 cash at the end of the year, court filings show. ERG Intermediate filed the report pursuant to Bankruptcy Rule 2015.3. The report dated June 2, 2015, is available for free at http://is.gd/s1prpK About ERG Resources ERG Resources, LLC, is a privately owned oil & gas producer that was formed in 1996. Since 2010, ERG Resources and ERG Operating Co. have been primarily engaged in the exploration and production of crude oil and natural gas in the Cat Canyon Field in Santa Barbara County, California. ERG Resources owns 19,027 gross lease acreage in the Cat Canyon Field. ERG Resources also owns and operates oil & gas leases representing 683 gross acres of leasehold located in Liberty County, Texas. The Company's corporate headquarters is located in Houston, Texas. Scott Y. Wood, through two of his affiliates, owns 100% of the membership units in ERG Intermediate Holdings LLC, the parent company. ERG Intermediate Holdings, ERG Resources and three affiliates sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 15-31858) on April 30, 2015, in Dallas, Texas. The Debtors tapped Jones Day as counsel; DLA Piper as co-counsel; AP Services, LLC, to provide a CRO; and Epiq Bankruptcy Solutions, LLC. ERG Intermediate estimated $100 million to $500 million in assets and debt. The U.S. Trustee overseeing the Chapter 11 case of ERG Intermediate Holdings LLC appointed five creditors of the company to serve on the official committee of unsecured creditors. ESCALERA RESOURCES: Enters Into Forbearance Agreement ----------------------------------------------------- Escalera Resources Co. on Aug. 3 diclosed that, effective July 31, 2015, the borrowing base under its credit facility has been decreased from $50 million to $44 million in connection with the Company's regularly scheduled semi-annual redetermination by its lenders. This decrease has resulted in a borrowing base deficiency of approximately $3.5 million. In connection with the borrowing base redetermination, the Company entered into a Forbearance Agreement and First Amendment to Credit Agreement, which provides that the Company's lenders will forbear from exercising certain rights under the credit facility relating to Designated Defaults, as defined in the Agreement, subject to the Company's compliance with the terms of the Agreement. The Agreement terminates at the earlier of September 1, 2015 or any event of termination under the Agreement. In exchange for entering the Agreement, the Company has agreed to, among other things, sell certain assets with all net proceeds going to reduce amounts outstanding under the credit facility, execute mortgages further encumbering certain assets already pledged under the Company's credit facility and the partial unwind of certain 2015 commodity hedges. The Company's compliance with the terms of the Agreement will defer any additional payments to cure the borrowing base deficiency through September 1, 2015. Sale of Pinedale Assets On July 16, 2015, the Company entered into an agreement to sell its non-operated Pinedale Anticline properties for $12 million cash, subject to closing adjustments. The closing of this sale occurred on July 31, 2015 and net proceeds of $10.5 million were used for the reduction of amounts outstanding under the Company's credit facility. The sale of these assets did not materially reduce the aforementioned borrowing base deficiency. About Escalera Resources Co. Escalera Resources Co. is headquartered in Denver, CO, with executive offices in Houston, TX and a regional office in Casper, WY. Escalera explores, develops and transports natural gas in the U.S. Escalera is seeking strategic acquisitions of abundant, low cost natural gas assets that are currently undervalued or underutilized; and identifying alternative ways to enhance the value of its dry natural gas reserves. FAMILY CHRISTIAN: Most Creditors Favor Sale, Attorney Says ---------------------------------------------------------- Family Christian Stores creditors are voting overwhelmingly in favor of a bankruptcy sale that would keep the Company's stores operating, Jim Harger at Mlive.com reports, citing A. Todd Almassian, Esq., the attorney for the Company. Mlive.com relates that most of the creditors and vendors, who stand to lose millions by the sale, were expected to vote in favor instead of liquidating the chain. Family Christian Acquisition has offered to pay between $52.4 million and $55.7 million for the Company's assets and inventory without assuming its debt, the report adds. Citing Mr. Almassian, Mlive.com states that as of Aug. 6, 2015, more than 97.6% consignment creditors who are owed more than $16 million had voted for the plan, representing 99.9% of the amount owed. Mr. Almassian said that unsecured creditors who are owed $12.8 million also were voting overwhelming in favor of the plan, and that 93.75% voted to accept the plan, Mlive.com reports. The report says that if creditors vote in favor of the plan, the Company will ask U.S. Bankruptcy Judge John Gregg to approve it at a hearing set for Aug. 11. Mlive.com recalls that Judge Gregg rejected an auction in which Family Christian Acquisition was declared the winning bidder, saying that the auction was tainted by behind-the-scenes contact between the buyer's chief, Richard Jackson, and the Company's CEO, Chuck Benochea, therefore denying fair access by competing bidders who wanted to close the stores and liquidate its assets. 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. FILMED ENTERTAINMENT: Case Summary & 20 Top Unsecured Creditors --------------------------------------------------------------- Debtor: Filmed Entertainment Inc. aka BMG Columbia House aka Bertelsmann Direct North America, Inc. aka Direct Group North America, Inc. aka Direct Brands, Inc. 2 Park Avenue, 10th Floor New York, NY 10016 Case No.: 15-12244 Nature of Business: FEI owns and operates the "Columbia House DVD Club," a direct-to-customer distributor of movies and television series in the United States. Chapter 11 Petition Date: August 10, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Hon. Shelley C. Chapman Debtor's Counsel: Scott Anthony Griffin, Esq. Michael D. Hamersky, Esq. GRIFFIN HAMERSKY P.C. 485 Madison Avenue, 7th Floor New York, NY 10022 Tel: 212-710-0338 Fax: 212-710-0339 Email: sgriffin@grifflegal.com mhamersky@grifflegal.com Debtor's PRIME CLERK LLC Claims and Noticing Agent: Estimated Assets: $1 million to $10 million Estimated Liabilities: $50 million to $100 million The petition was signed by Glenn Langberg, independent director. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Pension Benefit Guaranty Qualified $1,829,462 Corporation Pension 1200 K Street, N.W. Contribution Washington, DC 20005-4026 Attn: Michael Strollo Financial Analyst Corporate Finance & Restructuring Department Tel: 202-326-4000 x4907 Email: strollo.michael@pbgc.gov Bookspan LLC Trade $1,150,000 2 Park Ave New York, NY 10016 Attn: Blake Orlandi Chief Operating Officer Tel: (212) 596-2248 Email: Blake.orlandi@bookspan.com Universal Studios Home Trade $1,016,279 Entertainment LLC 10 Universal City Plaza, 4th Floor Universal City, CA 91608 Attn: Jed Lackman Sr. VP, Business Affairs Tel: 818-777-4380 Email: jed.lackman@nbcuni.com Verizon Business Network Services, Trade $800,000 Inc. on behalf of Cybertrust, Inc. 22001 Loudon County Parkway Ashburn, VA 20147 Email: notice@verizonbusiness.com Cognizant Technology Solutions U.S. Trade $492,000 Corp. 500 Frank W. Burr Blvd., Suite 50 Teaneck, NJ 07666 C/O John C. Scalzo, Esq. Reed Smith LLP 599 Lexington Avenue New York, NY 10022 Tel: (212) 521-5400 Email: jscalzo@reedsmith.com Warner Home Entertainment, Inc. Trade $290,894 4000 Warner Blvd. Burbank, CA 91522 Attn: Michael Rweyemamu SVP Global Digital Sales Tel: (818) 977-6836 Email: Michael.Rweyemamu@warnerbros.com Lions Gate Films, Inc. Trade $167,598 Paramount Home Entertainment Inc. Trade $146,019 Najafi Companies Legal $137,500 Settlement The Bank of New York Mellon Rent $127,731 Avalara, Inc. Trade $115,600 Anchor Bay Entertainment, LLC Trade $96,862 Avaya Inc. Trade $79,000 Sony Pictures Home Entertainment, Inc. Trade $64,778 Equinix, Inc. Trade $61,048 Level 3 Communications, LLC Trade $51,000 RLJ Entertainment, Trade $42,265 Inc., successor-in- interest to Image Entertainment, Inc. Summit Distribution, LLC Trade $41,158 CBS Home Entertainment Inc. Trade $36,623 Highwinds Network Group, Inc. Trade $32,000 FILMED ENTERTAINMENT: Files for Ch. 11 Protection ------------------------------------------------- Filmed Entertainment Inc., owner of onetime mail-order giant Columbia House, filed for Chapter 11 in the U.S. Bankruptcy Court in Manhattan on Aug. 10. Tom Corrigan, writing for Dow Jones' Daily Bankruptcy Review, reported that the company seeks to sell what remains of its business after almost two decades of declining revenue. Filmed Entertainment filed for Chapter 11, citing the advent of digital media and dramatic changes in technology that are threatening to render CDs and DVDs obsolete. FJK PROPERTIES: Files Bankruptcy Rule 2015.3 Report --------------------------------------------------- FJK Properties Inc. filed a report with the U.S. Bankruptcy Court for the Southern District of Florida, disclosing that it does not hold a substantial or controlling interest in any company. FJK Properties filed the report pursuant to Bankruptcy Rule 2015.3. The report dated July 16, 2015, is available for free at http://is.gd/jsZmHv About FJK Properties FJK Properties Inc. filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 15-19494) on May 26, 2015. The Debtor tapped Robert C. Furr and the law firm Furr and Cohen, P.A., as its counsel. Hon. Paul G. Hyman, Jr., is assigned to the case. FRAC SPECIALISTS: Agrees to Additional Adequate Protection for CNB ------------------------------------------------------------------ Frac Specialists, LLC, et al., ask the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division, to approve an agreement providing Community National Bank with additional adequate protection for the Debtors' continued use of cash collateral. The agreement provides that, as adequate protection for the Debtors' use of the Collateral, the Debtors will pay monthly adequate protection payments of $1,564 per month to CNB, which is equal to 1/12 of 5% of the outstanding balance of CNB's claim, beginning on August 25 and will continue to make payments on the 25th day of each consecutive month until the earliest to occur of (1) March 25, 2016, (2) effectivity of the Debtors' Chapter 11 Plan, and (3) the conversion or dismissal of the Debtors' bankruptcy cases. The Debtors tell the Court that the agreement is fair and in the best interest of their estate. The Debtors are represented by: Lynda L. Lankford, Esq. Jeff P. Prostok, Esq. Clarke V. Rogers, Esq. FORSHEY & PROSTOK LLP 777 Main Street, Suite 1290 Fort Worth, Texas 76102 Tel: (817) 877-8855 Fax: (8/17) 877-4151 Email: jpostok@forseyprostok.com llankford@forseyprostok.com crogers@forseyprostok.com About Frac Specialists Frac Specialists, LLC, Cement Specialists, LLC, and Acid Specialists, LLC, are oilfield service providers serving the exploration and production industry within the Permian Basin. Noble Natural Resources, LLC, Javier Urias and Alex Hinojos collectively own 100% of the membership interests in the Companies. The Companies sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Lead Case No. 15-41974), on May 17, 2015. Larry P. Noble signed the petitions as manager. On May 27, 2015, the Court directed the joint administration of the cases. The Debtors estimated assets and debts of $50 million to $100 million. Judge Michael Lynn presides over the cases. The Debtors tapped Lynda L. Lankford, Esq., and Jeff P. Prostok,Esq., at Forshey & Prostok, LLP, as their counsel. The U.S. Trustee appointed five creditors to serve on an official committee of unsecured creditors. FRAC SPECIALISTS: PCLC Wants Stay Lifted to Repossess Equipment --------------------------------------------------------------- People's Capital and Leasing Corp. asks the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division, to lift the automatic stay imposed in the Chapter 11 cases of Frac Specialists, LLC, et al., to allow it to repossess a variety of equipment under a Master Equipment Lease Agreement dated June 5, 2014. PCLC asserts that the Debtors do not have equity in the Equipment. The cost of the Equipment was $6,287,891. PCLC further assets that the Debtors continue to be in possession of the Equipment and have not made the monthly rental payment due of $173,570 in May 2015. Furthermore, PCLC believes that the Debtors may continue to use and operate the Equipment, and accordingly, the Equipment is declining in value through use, as well as wear and tear. People's Capital and Leasing Corp. is represented by: J. Scott Rose, Esq. Jeffrey G. Hamilton, Esq. Jennifer F. Wertz, Esq. JACKSON WALKER L.L.P. 901 Main Street, Suite 6000 Dallas, Texas 75202 Tel: (214) 953-6000 Fax: (214) 953-5822 Email: srose@jw.com jhamilton@jw.com jwertz@jw.com About Frac Specialists Frac Specialists, LLC, Cement Specialists, LLC, and Acid Specialists, LLC, are oilfield service providers serving the exploration and production industry within the Permian Basin. Noble Natural Resources, LLC, Javier Urias and Alex Hinojos collectively own 100% of the membership interests in the Companies. The Companies sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Lead Case No. 15-41974), on May 17, 2015. Larry P. Noble signed the petitions as manager. On May 27, 2015, the Court directed the joint administration of the cases. The Debtors estimated assets and debts of $50 million to $100 million. Judge Michael Lynn presides over the cases. The Debtors tapped Lynda L. Lankford, Esq., and Jeff P. Prostok,Esq., at Forshey & Prostok, LLP, as their counsel. The U.S. Trustee appointed five creditors to serve on an official committee of unsecured creditors. GENERAL NUTRITION: Moody's Raises CFR to Ba3, Outlook Positive -------------------------------------------------------------- Moody's Investors Service upgraded all ratings of General Nutrition Centers, Inc. ("GNC"), including the Corporate Family Rating to Ba3 from B1, the Probability of Default Rating to Ba3-PD from B1-PD, and the Senior Secured Credit Facility to Ba2 from B1. The ratings outlook is positive. This concludes the review for upgrade that commenced on June 16, 2015. "The upgrade reflects the reduction in adjusted debt due to changes in Moody's approach for capitalizing operating leases," said Moody's Analyst, Mike Zuccaro. 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 direct result of this change, GNC's leverage has improved to around 3.5 times from around 4.5 times under the prior methodology. Zuccaro added, "The positive outlook considers our expectation for continued modest improvement in operating performance and credit metrics as the company continues to focus on growing its domestic business, improve marketing and managing inventory levels." The upgrade of the term loan to Ba2 reflects the significant increase in junior level support provided by the proposed issuance of $250 million 1.5% Unsecured Convertible Notes due 2020. Upgrades: Issuer: General Nutrition Centers, Inc. Probability of Default Rating, Upgraded to Ba3-PD from B1-PD Corporate Family Rating (Local Currency), Upgraded to Ba3 from B1 Senior Secured Bank Credit Facility, Upgraded to Ba2(LGD3) from B1(LGD3) Outlook Actions: Issuer: General Nutrition Centers, Inc. Outlook, Changed To Positive From Rating Under Review Affirmations: Issuer: General Nutrition Centers, Inc. Speculative Grade Liquidity Rating, Affirmed SGL-1 RATINGS RATIONALE GNC's Ba3 Corporate Family Rating is supported by the company's well-known brand name in its target markets along with Moody's favorable view of the vitamin, mineral, and nutritional supplement ("VMS") category which accounts for about one-third of GNC's consolidated revenues. Despite the recent sales decline, Moody's anticipates that operating performance will rebound in 2015 as GNC focuses on realigning its pricing and promotional cadence. In addition, Moody's expects the company to prioritize product innovation in order to grow brand equity over time. The rating also reflects GNC's stable credit metrics, with moderate lease-adjusted debt leverage of around 3.7x as of June 30, 2015 and solid interest coverage (EBITA to interest) of 4.3x pro forma for the proposed $250 million 1.5% Convertible Note Offering announced on Aug. 4, 2015. Key credit concerns include GNC's sizable concentration in sports nutrition which is a much more limited product segment with a relatively smaller target market than the VMS product category. Also considered is the potential risk arising from adverse publicity and product liability claims with regard to certain products sold by GNC, particularly diet products and herbs, two faddish product categories that are more exposed to such product liability risks and earnings volatility. GNC's ratings could be upgraded over time if the company demonstrates stable growth while maintaining strong operating margins in the mid-teens. An upgrade would require that GNC continue to adhere to a financial policy that would support credit metrics remaining at current levels, including lease adjusted debt/EBITDA below 3.5x. Ratings could be downgraded if the company were to see a material decline in sales trends or if operating margins were to erode, either through a weakening competitive profile or material product-related risks. Ratings could also be lowered if the company's financial policies were to become aggressive, such as maintaining higher leverage due to increased shareholder friendly activities. Quantitatively, a ratings downgrade could occur if it appears that leverage will rise above 4.5x or interest coverage fall near 2.5x on a sustained basis. General Nutrition Centers, Inc., ("GNC") headquartered in Pittsburgh, PA, manufactures and retails vitamins, minerals, nutritional supplements domestically and internationally. About 75% of its revenue is generated by over 3,500 company owned stores and website. It also has nearly 3,200 franchise locations in the U.S. and over 50 countries that generate about 15% of its revenue, and 2,300 stores within-a-stores with Rite Aid. Total revenues are about $2.6 billion. The principal methodology used in these ratings was Global Retail Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. GILBERT HOSPITAL: Lays Off Florence Hospital Administrative Staff ----------------------------------------------------------------- Mark Cowling at Florence Reminder & Blade reports that Gilbert Hospital has let go almost all of the Florence Hospital administrative staff as part of a tentative plan for the two hospitals to exit Chapter 11 bankruptcy under joint ownership and operation. According to Florence Reminder, the two hospitals' websites list the same CEO, chief financial officer, chief nursing officer and chief medical officer. The report says that the changes started late in July 2015. Bryan J. Hargis, CEO of Gilbert since two weeks before it filed for bankruptcy protection, is now interim CEO of Florence as well, and that "will become permanent once we get the Chapter 11 plan confirmed," the report states, citing Daniel E. Garrison, Esq., lead bankruptcy attorney for Gilbert. Florence Reminder relates that Mr. Garrison couldn't say for certain how many administrators had been replaced, but he said that the process was not yet complete. About Gilbert Hospital Gilbert Hospital has 21 private ER beds, 16 inpatient beds and three intensive care unit rooms. Arizona Republic said Gilbert Hospital had $20 million in cash in 2011. However, hospital investors have since sued Dr. Johns, saying that "financial mismanagement" and the transferring of funds from Gilbert Hospital to PRMC has led to massive losses. Gilbert Hospital, LLC, in Gilbert, Arizona, filed for Chapter 11 bnakruptcy (Bankr. D. Ariz. Case No. 14-01451) on Feb. 5, 2014, in Phoenix. Judge Randolph J. Haines oversees the case. Pernell W. McGuire, Esq., at Davis Miles Mcguire Gardner, PLLC, and Bryce A. Suzuki, Esq., at Bryan Cave LLP, serve as the Debtor's counsel. In its petition, the Hospital estimated under $50,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Bradley Newswander, board chair. GOLDEN COUNTY: $379,000 in Claims Switched Hands in July 2015 ------------------------------------------------------------- In the Chapter 11 cases of Golden County Foods, Inc., et al., 13 claims switched hands between July 15, 2015, and July 22, 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Cedar Glade Capital, LLC Genesis Baking Company $97,459.20 Claims Recovery Group LLC Olsen Safety Equipment $34,419.28 Corp. Fair Harbor Capital, LLC A1 Services LLC $700.00 Fair Harbor Capital, LLC Badger Scale Inc. $1,764.71 Fair Harbor Capital, LLC Brabzon Pumpe Co. Ltd $5,168.40 Fair Harbor Capital, LLC Haza Mechanical Inc. $8,614.95 Fair Harbor Capital, LLC L & S Electric Inc. $1,369.00 Fair Harbor Capital, LLC Matrix Packaging $10,257.41 Machinery Liquidity Solutions, Inc. Hydroblend, Inc. $117,178.91 Liquidity Solutions, Inc. Kriss Premium Products $6,058.64 Inc. Liquidity Solutions, Inc. Roto-Rooter Sewer $3,915.04 & Drain Inc Sonar Credit Partners Anderson Daymon $81,699.83 III, LLC Worldwide LLC Sonar Credit Partners I.D. Technology- $11,001.07 III, LLC Glennon Grp 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. GOOD TIME STORES: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Good Time Stores, Inc. aka GTS Beverage, LLC 7108 Airport Rd. El Paso, TX 79925 Case No.: 15-31243 Chapter 11 Petition Date: August 7, 2015 Court: United States Bankruptcy Court Western District of Texas (El Paso) Judge: Hon. Christopher H. Mott Debtor's Counsel: E. P. Bud Kirk, Esq. TERRACE GARDENS 600 Sunland Park Drive, Bldg 4, #400 El Paso, TX 79912 Tel: (915) 584-3773 Fax: (915) 581-3452 Email: budkirk@aol.com Estimated Assets: $1 million to $10 million Estimated Debts: $10 million to $50 million The petition was signed by Bruce Nelson, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. GOSPEL LIGHT: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Gospel Light Publications 1923 Eastman Avenue, Suite 200 Ventura, CA 93003 Case No.: 15-11586 Chapter 11 Petition Date: August 7, 2015 Court: United States Bankruptcy Court Central District of California (Santa Barbara) Judge: Hon. Peter Carroll Debtor's Counsel: Jeremy Faith, Esq. MARGULIES FAITH LLP 16030 Ventura Blvd Ste 470 Encino, CA 91436 Tel: 818-705-2777 Fax: 818-705-3777 Email: Jeremy@MarguliesFaithlaw.com Total Assets: $2.3 million Total Liabilities: $3.3 million The petition was signed by David Thornton, chief executive officer. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb15-11586.pdf GT ADVANCED: Files Bankruptcy Rule 2015.3 Report ------------------------------------------------ GT Advanced Technologies Inc. filed with the U.S. Bankruptcy Court for the District of New Hampshire a periodic report under Bankruptcy Rule 2015.3 for the period ending March 28, 2015. GT Advanced and its affiliated debtors reported that they hold a substantial or controlling interest in these companies: Companies Interest of Estate --------- ------------------ GT Advanced Technologies Taiwan Ltd. 100% GT Solar Mauritius Ltd. 100% GT Advanced Technologies GmbH 100% GT Advanced Technologies Luxembourg SARL 100% The report dated July 10, 2015, is available for free at http://is.gd/hjO6g3 About GT Advanced Headquartered in Merrimack, New Hampshire, GT Advanced Technologies Inc. -- http://www.gtat.com/-- produces materials and equipment for the electronics industry. On Nov. 4, 2013, GTAT announced a multiyear supply deal with Apple Inc. to produce sapphire glass material for use in consumer electronics products. Under the deal, Apple would provide GTAT with a prepayment of approximately $578 million paid in four installments and, starting in 2015, GTAT would reimburse Apple for the prepayment over a five-year period. GT is a publicly held corporation whose stock was traded on NASDAQ under the ticker symbol "GTAT." GTAT was de-listed from the NASDAQ stock exchange in October 2014. As of June 28, 2014, the GTAT Group's unaudited and consolidated financial statements reflected assets totaling $1.5 billion and liabilities totaling $1.3 billion. As of Sept. 29, 2014, GTAT had $85 million in cash, $84 million of which is unencumbered. On Oct. 6, 2014, GT Advanced Technologies and eight affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.H. Lead Case No. 14-11916). GT says that it has sought bankruptcy protection due to a severe liquidity crisis brought about by its issues with Apple. The Debtors have tapped Nixon Peabody LLP and Paul Hastings LLP as attorneys and Kurtzman Carson Consultants LLC as claims and noticing agent. The U.S. Trustee has named seven members to the Official Committee of Unsecured Creditors. The Committee' professionals are Kelley Drye as its bankruptcy counsel; Devine, Millimet & Branch, Professional Association as local counsel; EisnerAmper LLP as financial advisors; and Houlihan Lokey Capital, Inc. as investment banker. GTAT has reached a settlement with Apple. The settlement gives Apple an approved claim for $439 million secured by more than 2,000 sapphire furnaces that GT Advanced owns and has four years to sell, with proceeds going to Apple. In addition, Apple gets royalty-free, non-exclusive licenses for GTAT's technology. The bankruptcy case is assigned to Judge Henry J. Boroff. HOLMES TESTING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Holmes Testing, Inc. 170 Shepard Ave. Wheeling, IL 60090 Case No.: 15-27112 Chapter 11 Petition Date: August 7, 2015 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Hon. Jack B. Schmetterer Debtor's Counsel: Bradley Block, Esq. LAW OFFICES OF BRADLEY BLOCK 707 Skokie Blvd., Suite 600 Northbrook, IL 60062 Tel: (224) - 5331075 Email: brad.block@bradblocklaw.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Jerome Dykstra, president. A list of the Debtor's 23 largest unsecured creditors is available for free at http://bankrupt.com/misc/ilnb15-27112.pdf ICONIX BRAND: S&P Puts 'B+' CCR on CreditWatch Negative ------------------------------------------------------- Standard & Poor's Ratings Services said it placed its 'B+' corporate credit rating on New York City-based Iconix Brand Group Inc. on CreditWatch with negative implications. "The Creditwatch placement follows Iconix Brands' announcement yesterday that Neil Cole is stepping down from his position as CEO, chairman, and president, and as a member of the board of directors," said Standard & Poor's credit analyst Diane Shand. Iconix board member Peter Cuneo has been appointed chairman of the board and interim CEO. Neil Cole's departure follows the resignation of its chief operating officer and chief financial officer earlier this year. Although the company has indicated that all the departures are unrelated, they nevertheless heighten the risk that operating performance will deteriorate because licensees' renewals may decline as a result of senior management turnover, and changes in management that could slow growth over the next one to two years as new management develops and implements its strategy. S&P expects to resolve the CreditWatch listing after a closer review and assessment of the implications of the leadership change and its impact on the company. S&P could lower the rating on the company if it revises its management and governance assessment to "weak" from "fair" or if operating performance and credit measures deteriorate because of a decline in licensing renewals. S&P could affirm the rating if it believes the recent changes in management will not materially affect operating performance and there are no meaningful changes in the company's financial policy. IMPERIAL METALS: S&P Raises CCR to 'CCC+', Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services said it raised its long-term corporate credit and issue-level ratings on Vancouver-based Imperial Metals Corp. to 'CCC+' from 'CCC' and removed the ratings from CreditWatch, where they had been placed with developing implications on May 20, 2015. The outlook is stable. The '4' recovery rating on the senior unsecured notes, which indicates S&P's expectation for average recovery (lower half of the 30% to 50% range) in its simulated default scenario, is unchanged. "The upgrade primarily reflects our view that Imperial Metals' default risk has declined following the receipt of a temporary covenant waiver under its credit facility," said Standard & Poor's credit analyst Jarrett Bilous. In addition, S&P believes that the forthcoming capital injection will reduce liquidity pressure and support the continued ramp-up of Red Chris and restart of Mount Polley. Imperial Metals recently obtained a long-term tailings discharge permit for Red Chris, which S&P believes is critical for sustainable production at the mine, and a permit amendment that will enable the modified restart of mining at Mount Polley. The company's credit facility lenders extended the required date of Red Chris mine completion under the agreement from June 1 to Dec. 1, 2015. S&P assumes the mine will achieve design levels of throughput and production prior to the deadline, as S&P understands that previous issues (i.e., water supply) have largely been resolved. In addition, S&P expects Imperial Metals to raise gross proceeds of C$80 million from the issuance of rights, common shares, and a convertible debenture this month. The financing is fully backstopped by the company's two largest shareholders. Notwithstanding the above, S&P believes the company remains vulnerable to and dependent on favorable business, financial, and economic conditions to support its financial commitments beyond the next 12 months. Specifically, Imperial Metals' credit facility lenders could potentially file a notice of default if Red Chris is not completed by Dec. 1, 2015 and a further extension is not provided. In addition, the credit facility matures in October 2016, which could lead to increased refinancing risk –- particularly in the event of weaker-than-expected operating results from Red Chris. In S&P's view, these risks are consistent with its criteria for issuers rated 'CCC+'. The stable outlook reflects S&P's expectation that the company will have sufficient liquidity in the next 12 months to fund the continued ramp-up of the Red Chris mine and restart of Mount Polley, mainly from proceeds from its planned financing. S&P also expects Imperial Metals will meet the completion test under its credit facility, and refinance the facility in advance of its maturity. S&P could lower the rating in the event that the company does not meet the Red Chris completion test under its credit facility. In addition, materially weaker liquidity resulting from operating disruptions or sharply weaker commodity prices, or heightened risk that the credit facility will not be refinanced prior to its maturity, could also pressure the rating. Although unlikely in the next 12 months, an upgrade could result from a material improvement in liquidity, which S&P assumes would result primarily from higher-than-expected output and cash flow generation from Red Chris, and refinancing of its credit facility. J & M VALLEY: Case Summary & 7 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: J & M Valley Investments, LLC 2808 Chateau Street Edinburg, TX 78539 Case No.: 15-70412 Chapter 11 Petition Date: August 7, 2015 Court: United States Bankruptcy Court Southern District of Texas (McAllen) Judge: Hon. Eduardo V Rodriguez Debtor's Counsel: John Kurt Stephen, Esq. CARDENAS AND STEPHEN, L.L.P. 100 S Bicentennial Blvd McAllen, TX 78501-7050 Tel: 956-631-3381 Fax: 956-687-5542 Email: kurtstep@swbell.net Total Assets: $5.3 million Total Liabilities: $3.8 million The petition was signed by Homero Jasso, Jr., member. A list of the Debtor's seven largest unsecured creditors is available for free at http://bankrupt.com/misc/txsb15-70412.pdf JBI LLC: Case Summary & 6 Largest Unsecured Creditors ----------------------------------------------------- Debtor: JBI, LLC 64113 260 St Litchfield, MN 55355 Case No.: 15-42790 Nature of Business: Construction and trucking Chapter 11 Petition Date: August 7, 2015 Court: United States Bankruptcy Court District of Minnesota (Minneapolis) Judge: Hon. Katherine A. Constantine Debtor's Counsel: Robert Kalenda, Esq. KALENDA LAW OFFICE 919 W St Germain St Ste 2000 St. Cloud, MN 56301 Tel: 320-255-8840 Email: info@kalendalaw.com Total Assets: $352,500 Total Liabilities: $1.6 million The petition was signed by Curtis Trude, controlling member. A list of the Debtor's six largest unsecured creditors is available for free at http://bankrupt.com/misc/mnb15-42790.pdf JTS LLC: Files Schedules of Assets and Liabilities -------------------------------------------------- JTS LLC with the U.S. Bankruptcy Court for the District of Alaska its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------------ ----------- A. Real Property $10,600,000 B. Personal Property $4,508,348 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $10,817,698 E. Creditors Holding Unsecured Priority Claims $19,812 F. Creditors Holding Unsecured Non-priority Claims $2,553,736 ----------- ----------- TOTAL $15,108,348 $13,391,246 A full-text copy of the Debtor's schedules is available for free at http://is.gd/GR633i About JTS JTS, LLC, doing business as Johnson's Tire Service, sought Chapter 11 protection (Bankr. D. Alaska Case No. 15-00167) in Anchorage, Alaska, on June 15, 2015, without stating a reason. JTS, in the business of retail tire sales and automobile maintenance and repair, estimated $10 million to $50 million in assets and debt. The formal schedules of assets and liabilities and the statement of financial affairs are due June 29, 2015. The Debtor tapped David H. Bundy, Esq., at David H. Bundy, PC, in Anchorage, as counsel. The U.S. Trustee for Region appointed creditors to serve on the Official Committee of Unsecured Creditors for the Debtor's bankruptcy case. JW RESOURCES: Gets Final Approval to Use $2-Mil. DIP Loan --------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Kentucky authorized, on a final basis, JW Resources, Inc., et al., to obtain postpetition secured financing from Gordon Brothers Finance Company, as administrative agent, up to the amount of the prepetition revolver of $2 million. As reported in the Troubled Company Reporter on July 15, 2015, for each loan disbursed pursuant to the DIP Facility, the Debtors promise to pay at a rate per annum equal to the LIBOR Rate plus 6.75% with an interest rate floor of 1%. The Debtors said they will use cash collateral securing their prepetition indebtedness. As of the Petition Date, the Debtors are indebted to the following creditors: GB Credit Partners, LLC $11,000,000 Bayside JW Resources, Inc. $55,000,000 Bell County (Tax Liens) $420,867 Harlan County (Tax Liens) $393 A full-text copy of the final DIP order together with the cash collateral budget is available for free at http://is.gd/RoCgLB About JW Resources JW Resources Inc. and its subsidiaries are U.S. producers of thermal coal with mineral reserves, mining operations and coal properties located in the Central Appalachian ("CAPP") regions of Kentucky. JW acquired the thermal coal mining operations of Xinergy in eastern Kentucky for $47.2 million in February 2013. JW's business operations comprise what is known as the "Straight Creek" operations located in Bell, Leslie and Harlan Counties, Kentucky, and the "Red Bird" operations located in Bell, Leslie, Knox, and Clay Counties, Kentucky. JW Resources is the parent and sole shareholder of SCRB Properties, Inc., Straight Creek Coal Mining, Inc. and SCRB Processing, Inc. JW Resources and its subsidiaries sought Chapter 11 bankruptcy protection (Bankr. E.D. Ky. Lead Case No. 15-60831) in London, Kentucky on June 30, 2015. The Debtors tapped Frost Brown Todd LLC as counsel, and Energy Ventures Analysis, Inc., as sale advisor. JW Resources estimated $1 million to $10 million in assets and $50 million to $100 million in debt. Straight Creek estimated $10 million to $50 million in assets and $50 million to $100 million in debt. KRONOS ACQUISITION: S&P Assigns Prelim. 'B-' Corp. Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its preliminary 'B-' long-term corporate credit rating to Kronos Acquisition Holdings Inc. The outlook is stable. At the same time, Standard & Poor's assigned its preliminary 'B-' issue-level rating to the company's proposed US$850 million senior secured term loan, and its 'CCC' issue-level rating to the proposed US$390 million senior unsecured notes. "The ratings reflect our view of the proposed leveraged buyout," said Standard & Poor's credit analyst Donald Marleau. Kronos was created to acquire KIK Custom Products Inc. for about US$1.6 billion. The ratings reflect S&P's view of the proposed leveraged buyout. Upon the transaction's closing, S&P will finalize the ratings on Kronos and withdraw S&P's ratings on KIK. The ratings on Kronos reflect Standard & Poor's view of the company's "weak" business risk profile and "highly leveraged" financial risk profile, which result in an anchor score of 'b/b-'. S&P selects the lower anchor based on weaker cash flow and leverage ratios for the range of anchor outcomes. For analytical purposes, S&P bases its rating conclusions on the operations and financials of the consolidated entity, which includes the core operating subsidiary, KIK. The stable outlook on Kronos reflects Standard & Poor's expectation that the leveraged buyout will increase fully adjusted debt leverage to about 8x in the next two years, and the company will generate modest free operating cash flow that it could use for debt reduction. Considering its heavy debt load, S&P could lower the ratings on Kronos if the company generates sustained negative free cash flows (excluding growth capital expenditures) such that it is unable to cover its fixed charges. S&P is unlikely to raise the ratings over the next two years, given its expectation of high debt leverage and the company's ownership by a financial sponsor. S&P could, however, raise its ratings if Kronos reduces fully adjusted debt leverage to below 6x and improves EBITDA interest coverage to 2.5x-3x. LAURA GENS: U.S. Trustee's Bid to Dismiss Ch. 11 Case Granted ------------------------------------------------------------- Judge Alan Jaroslovsky of the United States Bankruptcy Court for the Northern District of California granted the motion filed by the U.S. Trustee to dismiss Laura Gens' third Chapter 11 case. Laura Gens filed her third Chapter 11 on January 8, 2013, three months and four days after the dismissal of her second case. On April 29, 2013, the U.S. Trustee moved to dismiss the third case, citing as cause Gens' two prior cases and her failure to provide reasonable information or file monthly operating reports. Judge Jaroslovsky explained that pursuant to Section 1112(b)(4)(F) of the Bankruptcy Code, cause to dismiss includes the unexcused failure to satisfy timely any reporting requirement established by any rule applicable to the case. The judge found that Gens has failed to demonstrate any valid excuse for her delinquent operating reports. Judge Jaroslovsky also found that Gens has failed to demonstrate that there is a reasonable likelihood that she can confirm a plan within a reasonable time and that it is highly dubious that she could ever meet the good faith requirement for confirmation contained in Section 1129(a)(3). The case is In re LAURA GENS, Debtor(s), NO. 13-50106 (Bankr. N.D. Cal.). A full-text copy of Judge JAROSLOVSKY's July 24, 2015 memorandum is available at http://is.gd/xBBbctfrom Leagle.com. LIGHTSQUARED INC: District Court Throws Out Ex-CEO's Plan Appeal ---------------------------------------------------------------- Judge Katherine B. Forrest of the United States District Court for the Southern District of New York affirmed a bankruptcy court's order confirming Lightsquared Inc., et al.'s Modified Second Amended Joint Plan. The Plan was proposed by a group including Fortress Credit Opportunities Advisors LLC, Centerbridge Partners, L.P., Harbinger Capital Partners LLC, and the Debtors, with the additional support of SIG Holdings, Inc., and/or one of its designated affiliates, MAST Capital Management, LLC, and the Prepetition Agent. The bankruptcy court confirmed the Plan on March 27, 2015. Sanjiv Ahuja, former Chief Executive Officer and holder of approximately 8% of the existing common equity interests of debtor LightSquared, Inc., filed an appeal, arguing that (1) the Plan violates the "fair and equitable" requirements of 29 U.S.C. Section 1129, (2) the Plan violates the equality of treatment rule of Section 1123(a)(4) of the Bankruptcy Code, and (3) the Plan was not proposed in good faith. Judge Forrest concluded that none of Ahuja's arguments had merit. Judge Forrest found that as an equity holder in LightSquared, Inc., Ahuja does not participate in the Plan, no such equity holder does, and no class junior to Ahuja "leaps over" his class. Thus, the judge found no violation of the absolute priority rule. Judge Forrest also determined that the Plan does not violate Section 1123(a)(4) since the bankruptcy court specifically found that Harbinger's participation was based on its preferred equity interests in LightSquared and the contributions of Harbinger's litigation claims. Judge Forrest also found no merit in Ahuja's claim that he was misled into thinking that when signing a settlement agreement he would necessarily receive shares in the reorganized debtor. The judge held that the claim is one for breach of the Settlement Agreement, but do not amount to a plan proposed in bad faith. The case is SANJIV AHUJA, Appellant, v. LIGHTSQUARED INC., et al., Appellees, NO. 15-CV-2342 (KBF) (S.D.N.Y.), relating to In re LIGHTSQUARED, INC., et al., Debtors. A full-text copy of appellate court's July 27, 2015 opinion is available at http://is.gd/19xZEffrom Leagle.com. LightSquared Inc. is represented by: Alan Joseph Stone, Esq. Matthew Scott Barr, Esq. MILBANK, TWEED, HADLEY & MCCLOY LLP 28 Liberty Street New York, NY 10005-1413 Tel: (212) 530-5000 Fax: (212) 530-5219 Email: astone@milbank.com Sanjiv Ahuja is represented by: Avery Daniel Samet, Esq. Bijan Amini, Esq. Jaime Burton Leggett, Esq. STORCH AMINI MUNVES, P.C. 2 Grand Central Tower 140 East 45th Street 25th Floor New York, NY 10017 Tel: (212) 490-4100 Fax: (212) 490-4208 Email: asamet@samlegal.com bamini@samlegal.com jleggett@samlegal.com Harbinger Capital Partners LLC is represented by: Adam L.. Shiff, Esq. David M. Friedman, Esq. KASOWITZ, BENSON, TORRES & FRIEDMAN L.L.P. 1633 Broadway New York, NY 10019 Tel: (212) 506-1700 Fax: (212) 506-1800 Email: ashiff@kasowitz.com dfriedman@kasowitz.com Centerbridge Partners L.P. is represented by: Aaron Stephen Rothman, Esq. Brad Eric Scheler, Esq. Peter Brian Siroka, Esq. FRIED, FRANK, HARRIS, SHRIVER & JACOBSON LLP One New York Plaza New York, NY 10004 Tel: (212) 859-8000 Fax: (212) 859-4000 Email: aaron.rothman@friedfrank.com brad.scheler@friedfrank.com peter.siroka@friedfrank.com JPM Investment Parties is represented by: Elisha David Graff, Esq. SIMPSON THACHER & BARTLETT LLP 425 Lexington Avenue New York, NY 10017 Tel: (212) 455-2000 Fax: (212) 455-2502 Email: egraff@stblaw.com About LightSquared Inc. LightSquared Inc. and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on May 14, 2012, to resolve regulatory issues that have prevented it from building its coast-to-coast integrated satellite 4G wireless network. LightSquared had invested more than $4 billion to deploy an integrated satellite-terrestrial network. In February 2012, however, the U.S. Federal Communications Commission told LightSquared the agency would revoke a license to build out the network as it would interfere with global positioning systems used by the military and various industries. In March 2012, the Company's partner, Sprint, canceled a master services agreement. LightSquared's lenders deemed the termination of the Sprint agreement would trigger cross-defaults under LightSquared's prepetition credit agreements. LightSquared and its prepetition lenders attempted to negotiate a global restructuring that would provide LightSquared with liquidity and runway necessary to resolve its issues with the FCC. Despite working diligently and in good faith, however, LightSquared and the lenders were not able to consummate a global restructuring on terms acceptable to all interested parties. Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to the Debtors. Alvarez & Marsal North America, LLC, is the financial advisor. Kurtzman Carson Consultants LLC serves as claims and notice agent. * * * Bankruptcy Judge Shelley C. Chapman in late March 2015, approved LightSquared Inc.'s Chapter 11 reorganization plan. As previously reported by The Troubled Company Reporter, the Debtors, in December, filed a joint plan and disclosure statement, which contemplate, among other things, (A) new money investments by the New Investors in exchange for a combination of preferred and common equity, (B) the conversion of the Prepetition LP Facility Claims into new second lien debt obligations, (C) the repayment in full, in cash, of the Inc. Facility Prepetition Inc. Facility NonSubordinated Claims immediately following confirmation of the Plan, (D) the payment in full, in cash, of LightSquared's general unsecured claims, (E) the provision of $1.25 billion in new money working capital for the Reorganized Debtors, (F) the assumption of certain liabilities, (G) the resolution of all inter-Estate disputes, and (H) the contribution by Harbinger of the Harbinger Litigations. LONESTAR GEOPHYSICAL: Wants to Hire Deloitte Tax as Accountant -------------------------------------------------------------- Lonestar Geophysical Surveys, LLC, asks the U.S. Bankruptcy Court for the Western District of Oklahoma for permission to employ Deloitte Tax LLP, as accountants. Deloitte Tax will assist the Debtor in the preparation of its 2014 federal, state and local income tax returns. The hourly rates charged by Deloitte Tax for the work are: Partner/Director-Specialist $465 Partner/Director $425 Senior Manager $375 Manager $325 Senior $270 Associate $215 Project Professional $140 To the best of the Debtor's knowledge, the firm does not represent any interest adverse to the estate and the matters upon which it is to be retained. About Lonestar Geophysical Lonestar Geophysical Surveys, LLC, which acquires seismic data and provides services and products to the oil and gas industry, sought bankruptcy protection (Bankr. W.D. Okla. Case No. 15-11872) on May 18, 2015. Judge Hon. Sarah A. Hall presides over the case. The Debtor tapped Ross A. Plourde, Esq., at McAfee & Taft, as counsel. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due Sept. 15, 2015. Governmental proofs of claim are due Nov. 16, 2015. The Debtor, in an amended schedules, disclosed total assets of $21,643,793 and total liabilities of $12,311,768. LUCA INTERNATIONAL: Files for Chapter 11 to Sell Assets ------------------------------------------------------- Houston-based oil and gas producer Luca International Group sought bankruptcy protection due to cash woes and a move by the U.S. Securities and Exchange Commission for the appointment of a receiver. Loretta Cross, who was brought to the Company as its chief restructuring officer, said the purpose of the Chapter 11 filing is to sell the Debtors' assets and create a source of funds that can be used to repay creditors (including claims by litigants) and return any remaining amounts to investors. According to a draft reserve report prepared in March, the Debtors have proved developed non-producing and prove behind pipe net reserves of approximately 3.2 billion cubic feet of gas and 450 million barrels of oil. Bingqing Yang, the owner, financed the Debtors and affiliated companies primarily by raising money from investors in China and Japan. Some of the investors participated in an EB5 visa program that Ms. Yang organized. These funds were typically placed into one entity and then used to pay expenses for one of the operating companies or lent to one of the operating companies. The SEC on July 6, 2015, filed with the Northern District of California a suit against the Luca entities, Bingqing Yang, Lei (lily) Lei, Anthony V. Pollace, and Yong (Michael) Chen. The SEC litigation alleges that investors' funds were not spent appropriately or in accordance with the fund raising documents. The SEC has moved for the appointment of a receiver along with other restrictive measures. The Luca entities are in the process of assessing the SEC's requests and will determine what actions they can agree to accept and which will be made moot by the filing of the Chapter 11 proceeding. According to the CRO, the Company is simply out of cash. The Company owes more to trade creditors than it can pay for out of its current operating cash flow. Over $500,000 of liens have been placed against the Belle Grove #1 well. Exploration and development costs were apparently excessive and drained the Debtors' cash. The debtor entities have been selectively marketing the properties for sale to foreign buyers. They were not successful in finding a buyer for the assets in a time frame that would have avoided a Chapter 11 filing. The Debtors say they have obtained Debtor In Possession ("DIP") financing of up to $2 million, which they believe will be sufficient to fund the company during the sales process. The Debtors intend to use the next month to prepare the assets for a sale. This will include addressing maintenance needs, hiring an investment banker, stabilizing the production numbers and updating the reserve report. The intention is to spend a reasonable period of time marketing the assets, estimated to be three to four months. This will ensure that they give new buyers tune to do adequate due diligence, thus enhancing the value of the bids. In addition, they will re-engage with potential buyers that have already been in discussions with the Luca entities. In addition to the sales process, a forensic investigation must be done to assess if funds received from the investors, or borrowed from other sources left the Luca entities for inappropriate uses. The CRO says he will utilize the bankruptcy court as a means to pursue the recovery of those funds. First Day Motions The Debtors on the Petition Date filed motions to: -- jointly administer their Chapter 11 cases; -- employ a claims, noticing and balloting agent; -- extend the deadline to file schedules; -- maintain their prepetition bank accounts; -- pay claims of critical vendors; -- incur postpetition indebtedness; -- reject a lease or executory contract; -- employ a CRO; and -- pay wages and employee benefits. A copy of the affidavit in support of the first day motions is available for free at: http://bankrupt.com/misc/Luca_Int_1st_Day_Affidavit.PDF About Luca International Luca International Group LLC and Luca Operation, LLC, and their affiliates are engaged in the exploration and production of natural gas, petroleum and related hydrocarbons. The primary assets are located in Iberville and Ascension Parishes in Louisiana. These assets include 3 operating oil and gas wells -- Belle Grove 1, Dugas & Leblanc 1 and Jumonville 2. In addition, the assets include a water disposal well, Acosta 1, and a shut-in-oil and gas well, Jumonville 1. The Luca entities also own oil and gas leases in Texas and working interests in various locations. The Luca entities are owned by Bingqing Yang. Luca International Group and 11 related entities sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 15-34221) in Houston, Texas, on Aug. 6, 2015. The cases are assigned to Judge David R Jones. The Debtors tapped Hoover Slovacek, LLP, and BMC Group, Inc. Luca International estimated $50 million to $100 million in assets and debt. The petitions were signed by Loretta R. Cross, the CRO. LUCA INTERNATIONAL: Proposes $2MM DIP Loan from Schumann/Steier --------------------------------------------------------------- Luca International Group LLC and Luca Operation LLC ask the U.S. Bankruptcy Court for the Southern District of Texas for authority to obtain postpetition financing of up to $2,000,000 from Schumann/Steier Holdings, LLC. Schumann/Steier Holdings or its designee has agreed to provide secured DIP financing, pursuant to 11 U.S.C. Sec. 364(b), of up to $2,000,000 to cover the projected shortfalls in operating expenses and professional fees provided for in a budget. The salient terms of the DIP facility are: * Interest rate: LIBOR plus 15%, with a LIBOR floor of 3%. Upon disbursement of the Interim Draw, interest will at all times accrue on the greater of: (1) the Borrowers' outstanding balance under the DIP Facility; or (2) $1 million, until all amounts owed by the Borrowers under the DIP Facility have been paid in full. * Commitment Fee: 2.5% of the Facility Amount, payable upon funding of the Interim Draw. * Collateral Monitoring Fee: $11,000 per month; no additional financial advisory or collateral monitoring fees of the Lender will be billed to Luca. * Due diligence expense reimbursement: Initial advance of $30,000, reasonable expenses only. * Interim Draw: $200,000, funded upon approval of the Interim DIP Motion to be filed as one of the first day motions by an Order acceptable to the DIP Lender in its sole discretion. * Maturity: Nine months from approval of the Interim DIP Motion * Liens: In order to secure the Postpetition Debt, effective immediately upon entry of the Interim Order, the DIP Lender will be granted continuing, valid, binding, enforceable, non-avoidable, and automatically and properly perfected postpetition security interests in and liens, on all assets of the Debtors. * Priority of Liens: To the extent permissible under the Bankruptcy Code, pursuant to Sec. 364(d)(1) of the Bankruptcy Code, the Postpetition Liens will be senior in priority and superior to any security, mortgage collateral interest, lien or claim on or to any of the Collateral. * Superpriority Claim: Upon entry of the Interim Order, the DIP Lender will be granted, pursuant to section 364(c)(1) of the Bankruptcy Code, an allowed superpriority claim against each of the Debtors in the Chapter 11 cases and any successor cases for all Postpetition Debt. About Luca International Luca International Group LLC and Luca Operation, LLC, and their affiliates are engaged in the exploration and production of natural gas, petroleum and related hydrocarbons. The primary assets are located in Iberville and Ascension Parishes in Louisiana. These assets include 3 operating oil and gas wells -- Belle Grove 1, Dugas & Leblanc 1 and Jumonville 2. In addition, the assets include a water disposal well, Acosta 1, and a shut-in-oil and gas well, Jumonville 1. The Luca entities also own oil and gas leases in Texas and working interests in various locations. The Luca entities are owned by Bingqing Yang. Luca International Group and 11 related entities sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 15-34221) in Houston, Texas, on Aug. 6, 2015. The cases are assigned to Judge David R Jones. The Debtors tapped Hoover Slovacek, LLP, and BMC Group, Inc. Luca International estimated $50 million to $100 million in assets and debt. The petitions were signed by Loretta R. Cross, the CRO. LUCA INTERNATIONAL: Proposes to Pay $214,000 to Critical Vendors ---------------------------------------------------------------- Luca International Group LLC, et al., filed with the U.S. Bankruptcy Court for the Southern District of Texas a motion seeking authority to pay the prepetition claims of critical vendors in an amount less than $213,942 or 68% of the total estimated amount owed to these critical vendors. Counsel to the Debtors, Brendetta A. Scott, Esq., at Hoover Slovacek LLP, explains that many of the vendors provide critical safety and environmental services, the loss of which could expose the Debtors to significant remediation liability and compliance costs. Also, the vendors have liens or the right to file liens, which are not barred by the automatic stay. The Debtors provided a summary of the estimated total amount due to each Critical Vendor, the requested amount, and the ratio of requested amount to estimated total amount due: Est. Amount Proposed % of Vendor Due Payment Est. ------ ----------- ------- ---- Coastal Chemical Co. LLC $2,181 $2,181 100% Core Laboratories, LP 4,167 4,167 100% DNOW L.P. 9,108 9,108 100% F.A.S. Environmental Services, LLC 56,014 41,912 75% Global Logistics, LLC 14,176 10,000 71% Gustavson Associates, LLC 20,036 20,036 100% Ingo Energy, LLC 5,031 5,031 100% Ingo Gauging Services, LLC 30,856 30,856 100% K-J Company, Inc. 2,000 2,000 100% Ranger Specialty & Supply 651 651 100% Ric Bajon & Associates, LLC 172,536 88,000 51% ----------- ------- ---- $316,756 $213,942 68% About Luca International Luca International Group LLC and Luca Operation, LLC, and their affiliates are engaged in the exploration and production of natural gas, petroleum and related hydrocarbons. The primary assets are located in Iberville and Ascension Parishes in Louisiana. These assets include 3 operating oil and gas wells -- Belle Grove 1, Dugas & Leblanc 1 and Jumonville 2. In addition, the assets include a water disposal well, Acosta 1, and a shut-in-oil and gas well, Jumonville 1. The Luca entities also own oil and gas leases in Texas and working interests in various locations. The Luca entities are owned by Bingqing Yang. Luca International Group and 11 related entities sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 15-34221) in Houston, Texas, on Aug. 6, 2015. The cases are assigned to Judge David R Jones. The Debtors tapped Hoover Slovacek, LLP, and BMC Group, Inc. Luca International estimated $50 million to $100 million in assets and debt. The petitions were signed by Loretta R. Cross, the CRO. LUCA INTERNATIONAL: Seeks to Reject 3 Leases -------------------------------------------- Luca International Group LLC, et al., are asking the U.S. Bankruptcy Court for the Southern District of Texas for approval to reject these executory contracts: -- an office space lease for the premises at 600 Travis Street, Suite B1.009 in Houston, signed by Luca International Group (Texas) LLC with Texas Tower Limited; -- Vehicle Lease CSOOW4 signed by Luca Operation LLC with Fletcher Jones of Motorcars of Freemont; and -- Vehicle Lease S550V signed by Luca Operation LLC with Fletcher Jones of Motorcars of Freemont. T. Josh Judd, Esq., at Hoover Slovaceck LLP, explains that the Debtors are currently undergoing a comprehensive review of their executory contracts to determine which contracts to assume and which to reject. Because the Debtors have reduced operations and anticipate selling substantially all of their physical assets, the Debtors no longer require certain executory contracts and will seek to reject those contracts that provide no meaningful value or benefit to the Debtors' estates. About Luca International Luca International Group LLC and Luca Operation, LLC, and their affiliates are engaged in the exploration and production of natural gas, petroleum and related hydrocarbons. The primary assets are located in Iberville and Ascension Parishes in Louisiana. These assets include 3 operating oil and gas wells -- Belle Grove 1, Dugas & Leblanc 1 and Jumonville 2. In addition, the assets include a water disposal well, Acosta 1, and a shut-in-oil and gas well, Jumonville 1. The Luca entities also own oil and gas leases in Texas and working interests in various locations. The Luca entities are owned by Bingqing Yang. Luca International Group and 11 related entities sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 15-34221) in Houston, Texas, on Aug. 6, 2015. The cases are assigned to Judge David R Jones. The Debtors tapped Hoover Slovacek, LLP, and BMC Group, Inc. Luca International estimated $50 million to $100 million in assets and debt. The petitions were signed by Loretta R. Cross, the CRO. METROPOLITAN PIER: Skips Debt-Fund Payment Due to Budget -------------------------------------------------------- Elizabeth Campbell, writing for Bloomberg News, reported that Chicago's Metropolitan Pier and Exposition Authority was unable to make a monthly payment into the fund that cover its debt bills because of the political impasse that's left Illinois without a budget for more than a month. According to the report, citing a filing with the Municipal Securities Rulemaking Board, the authority failed to make a required July deposit of $20.8 million for debt service on the convention center's bonds, which are backed by Illinois sales taxes and other levies collected by the authority. The agency said that it has the money for the reserve payment but can't transfer the funds until the legislature allows it to do so, the report related. MG GLOBAL: Supplemental Admin. Claims Bar Date Set for Sept. 4 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York set Sept. 4, 2015, at 5:00 p.m. (prevailing Pacific Time), as the deadline for each person or entity to file supplemental administrative proofs of claim against MF Global Inc. with respect to administrative expenses arising between Sept. 1, 2013, and July 31, 2015. The Court noted the deadline for asserting customer or general creditor claims that arose before Oct. 31, 2011, and June 2, 2012, and any such claim is now time-barred. The MF Global trustee has issued determinations allowing or denying all customer claims. The deadline for asserting administrative proofs of claim with respect to administrative expenses arising between Oct. 11, 2011, and Aug. 31, 2013, was Nov. 10, 2013. All supplemental administrative proofs of claim must be filed at: a) if by overnight courier or hand delivery to: MG Global Inc. Claims Processing center c/o Epiq Bankruptcy Solutions LLC 10300 SW Allen Blvd. Beaverton, OR 97005 b) if by first-class mail to: MG Global Inc. Claims Processing center c/o Epiq Bankruptcy Solutions LLC P.O. Box 4420 Beaverton, OR 970764420 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. MGM RESORTS: Posts $97.4 Million Net Income for Second Quarter -------------------------------------------------------------- MGM Resorts International filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to the Company of $97.4 million on $2.3 billion of revenues for the three months ended June 30, 2015, compared to net income attributable to the Company of $110 million on $2.5 billion of revenues for the same period during the prior year. For the six months ended June 30, 2015, the Company reported net income attributable to the Company of $267.3 million on $4.7 billion of revenues compared to net income attributable to the Company of $212.6 million on $5.2 billion of revenues for the same period in 2014. As of June 30, 2015, the Company had $27.1 billion in total assets, $17.9 billion in total liabilities, $5 million in redeemable noncontrolling interest and $9.1 billion in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/jZhpPw About MGM Resorts MGM Resorts International (NYSE: MGM) a global hospitality company, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The Company also owns 51% of MGM China Holdings Limited, which owns the MGM Macau resort and casino and is in the process of developing a gaming resort in Cotai, and 50% of CityCenter in Las Vegas, which features ARIA resort and casino. For more information about MGM Resorts International, visit the Company's Web site at www.mgmresorts.com. MGM Resorts reported a net loss attributable to the Company of $156.60 million in 2013 following a net loss attributable to the Company of $1.76 billion in 2012. Bankruptcy Warning The Company stated in its 2013 Annual Report, "The agreements governing our senior secured credit facility and other senior indebtedness contain restrictions and limitations that could significantly affect our ability to operate our business, as well as significantly affect our liquidity, and therefore could adversely affect our results of operations. Covenants governing our senior secured credit facility and certain of our debt securities restrict, among other things, our ability to: * pay dividends or distributions, repurchase or issue equity, prepay certain debt or make certain investments; * incur additional debt; * incur liens on assets; * sell assets or consolidate with another company or sell all or substantially all assets; * enter into transactions with affiliates; * allow certain subsidiaries to transfer assets; and * enter into sale and lease-back transactions. Our ability to comply with these provisions may be affected by events beyond our control. The breach of any such covenants or obligations not otherwise waived or cured could result in a default under the applicable debt obligations and could trigger acceleration of those obligations, which in turn could trigger cross defaults under other agreements governing our long-term indebtedness. Any default under our senior secured credit facility or the indentures governing our other debt could adversely affect our growth, our financial condition, our results of operations and our ability to make payments on our debt, and could force us to seek protection under the bankruptcy laws." * * * As reported by the TCR on Nov. 14, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on MGM Resorts International to 'B-' from 'CCC+'. In March 2012, S&P revised the outlook to positive from stable. "The revision of our rating outlook to positive reflects strong performance in 2011 and our expectation that MGM will continue to benefit from the improving performance trends on the Las Vegas Strip," S&P said. In March 2012, Moody's Investors Service affirmed its B2 corporate family rating and probability of default rating. The affirmation of MGM's B2 Corporate Family Rating reflects Moody's view that positive lodging trends in Las Vegas will continue through 2012 which will help improve MGM's leverage and coverage metrics, albeit modestly. Additionally, the company's declaration of a $400 million dividend ($204 million to MGM) from its 51% owned Macau joint venture due to be paid shortly will also improve the company's liquidity profile. The ratings also consider MGM's recent bank amendment that resulted in about 50% of its $3.5 billion senior credit facility being extended one year from 2014 to 2015. As reported by the TCR on Sept. 29, 2014, Fitch Ratings has upgraded MGM Resorts International's (MGM) and MGM China Holdings Ltd's (MGM China) IDRs to 'B+' from 'B' and 'BB' from 'BB-', respectively. Fitch's upgrade of MGM's IDR to 'B+' and the Positive Outlook reflect the company's strong performance on the Las Vegas Strip and in Macau as well as Fitch's longer-term positive outlooks for these markets. MIDSTATES PETROLEUM: Incurs $598 Million Net Loss in Q2 ------------------------------------------------------- Midstates Petroleum Company, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $598.4 million on $74.7 million of total revenues for the three months ended June 30, 2015, compared to a net loss of $2.1 million on $147.9 million of total revenues for the same period last year. For the six months ended June 30, 2015, the Company reported a net loss of $791.9 million on $185.9 million of total revenues compared to a net loss of $85.7 million on $292.6 million of total revenues for the same period a year ago. As of June 30, 2015, the Company had $1.7 billion in total assets, $2.1 billion in total liabilities and a $322.7 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/7DqiXJ About Midstates Petroleum Company Midstates Petroleum Company, Inc. -- http://www.midstatespetroleum.com/-- is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. Midstates' drilling and completion efforts are currently focused in the Mississippian Lime oil play in Oklahoma and Anadarko Basin in Texas and Oklahoma. The Company's operations also include the upper Gulf Coast tertiary trend in central Louisiana. Midstates reported net income of $117 million on $794 million of total revenues for the year ended Dec. 31, 2014, compared to a net loss of $344 million on $470 million of total revenues for the year ended Dec. 31, 2013. The Company's independent auditor, Deloittee & Touche LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that Midstates' projected debt covenant violation and resulting lack of liquidity raise substantial doubt about its ability to continue as a going concern. * * * Midstates Petroleum carries a 'B' corporate credit rating from Standard & Poor's Ratings Services. As reported by the TCR on April 8, 2013, Moody's Investors Service affirmed Midstates Petroleum's 'B3' Corporate Family Rating. MILLENNIUM HEALTH: Faces Humana Damages Claim --------------------------------------------- Laura J. Keller, writing for Bloomberg News, reported that Millennium Health LLC is contending with more legal fallout after reaching a tentative deal to settle a government probe over alleged billing irregularities. According to the report, citing two people familiar with the situation, Humana Inc. has sought monetary damages tied to allegedly unlawful insurance claims made by the drug tester. Humana sought the damages, along with injunctive relief, through a demand for arbitration dated May 29, the people said, the report related. * * * The Troubled Company Reporter, citing The Wall Street Journal, reported that Millennium Health LLC is working with restructuring advisers at Lazard Ltd. to explore options for bolstering its finances as it looks to move past a billing dispute with the U.S. government. The TCR, on July 30, 2015, reported that Moody's Investors Service downgraded Millennium Health, LLC's Corporate Family Rating to Caa2 from B2 and Probability of Default Rating to Caa2-PD from B2-PD. Additionally, Moody's downgraded the ratings on the company's senior secured credit facilities to Caa2 (LGD 4) from B2 (LGD 4). The ratings remain under review for further downgrade. The TCR, on July 23, 2015, reported that Standard & Poor's Ratings Services placed all of its ratings, including its 'B' corporate credit rating, on San Diego-based clinical toxicology laboratory services provider Millennium Health LLC on CreditWatch with negative implications. "The CreditWatch listing reflects our view that there is considerable uncertainty regarding Millennium's ability to service its debt over the long term, given the ongoing, rapid deterioration in the reimbursement rates that the company receives for urine drug testing as well as the company's need to fund its pending settlement regarding Medicare overbilling allegations," said credit analyst Shannan Murphy. "While the amount and timing of any settlement has not yet been disclosed, we believe the amount will likely significantly exceed the approximately $60 million in cash the company held at March 31, 2015. Further, we believe the company's financial covenants and falling EBITDA would preclude it from accessing the revolver to fund any settlement. As such, we believe a lump-sum payment requirement could result in a liquidity event." MOBILESMITH INC: Incurs $1.8 Million Net Loss in Second Quarter --------------------------------------------------------------- MobileSmith, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.8 million on $407,545 of total revenue for the three months ended June 30, 2015, compared to a net loss of $1.6 million on $194,783 of total revenue for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $3.7 million on $833,733 of total revenue compared to a net loss of $3.2 million on $382,729 of total revenue for the same period during the prior year. As of June 30, 2015, the Company had $1.9 million in total assets, $37.3 million in total liabilities and a $35.4 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/P9Fo2I About MobileSmith Inc. MobileSmith, Inc. (formerly, Smart Online, Inc.) was incorporated in the State of Delaware in 1993. The Company changed its name to MobileSmith, Inc., effective July 1, 2013. The Company develops and markets software products and services tailored to users of mobile devices. The Company's flagship product is The MobileSmithTM Platform. The MobileSmithTM Platform is an innovative, patents pending mobile app development platform that enables organizations to rapidly create, deploy, and manage custom, native smartphone apps deliverable across iOS and Android mobile platforms. MobileSmith reported a net loss of $7.33 million on $879,000 of total revenue for the year ended Dec. 31, 2014, compared to a net loss of $27.5 million on $339,000 of total revenue in 2013. Cherry Bekaert LLP, in Raleigh, North Carolina, issued a "going concern" qualification in its report on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has suffered recurring losses from operations and has a working capital deficiency as of Dec. 31, 2014. These conditions raise substantial doubt about the Company's ability to continue as a going concern. MONAKER GROUP: Posts $2.7 Million Net Loss for May 31 Quarter ------------------------------------------------------------- Monaker Group, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.7 million on $336,093 of total revenues for the three months ended May 31, 2015, compared to a net loss of $546,288 on $344,957 of total revenues for the same period in 2014. As of May 31, 2015, the Company had $7.4 million in total assets, $10.2 million in total liabilities and a $2.8 million total stockholders' deficit. At May 31, 2015, the Company had $96,778 cash on-hand, a decrease of $129,634 from $226,412 at the start of fiscal 2016. The decrease in cash was due primarily to operating expenses, website development costs and advances to affiliates. A full-text copy of the Form 10-Q is available for free at: http://is.gd/veUr4r About Monaker Group Monaker Group, Inc., formerly known as Next 1 Interactive, Inc., is a digital media marketing company focusing on lifestyle enrichment for consumers in the travel, home and employment sectors. Core to its marketing services are key elements including proprietary video-centered technology and established partnerships that enhance its reach. Video is quickly becoming consumer's preferred method of searching and educating themselves prior to purchases. Monaker's video creation technology and film libraries combine to create lifestyle video offerings that can be shared both to its customers and through trusted distribution systems of its major partners. The end result is better engagement with consumers who gain in-depth information on related products and services helping to both inform and fulfill purchases. Unlike traditional marketing companies that simply charge for advertising creation, Monaker holds licenses and/or expertise in the travel, real estate and employment sectors allowing it to capture fees at the point of purchase while the majority of transactions are handled by Monaker's partners. This should allow the company to capture greater revenues while eliminating much of the typical overhead associated with fulfillment. Monaker core holdings include Maupintour, NameYourFee.com, RealBiz Media Group - helping it to deliver marketing solutions to consumers at home, work and play. Next 1 Interactive reported a net loss of $50,486 on $1.1 million of total revenues for the year ended Feb. 28, 2015, compared to a net loss of $18.3 million on $1.5 million of total revenues for the year ended Feb. 28, 2014. D'Arelli Pruzansky, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Feb. 28, 2015, citing that the Company has incurred an operating loss of $5,437,235 and net cash used in operations of $2,624,822 for the year ended Feb. 28, 2015, and the Company had an accumulated deficit of $86,078,617 and a working capital deficit of $12,811,302 at February 28, 2015. These conditions raise substantial doubt about the Company's ability to continue as a going concern. MOUNTAINEER GAS: Fitch Affirms 'BB+' LT Issuer Default Rating ------------------------------------------------------------- Fitch Ratings has affirmed Mountaineer Gas Company's (MGC) Long-Term Issuer Default Rating (IDR) at 'BB+' and Senior Unsecured Debt rating at 'BBB-'. The Rating Outlook is Stable. These rating actions affect $90 million of long-term debt. The ratings on MGC primarily reflect balanced recent rate case outcomes in an otherwise challenging regulatory environment in West Virginia. The ratings also incorporate an elevated capex program and a private equity ownership structure with an aggressive financial policy. KEY RATING DRIVERS Pending Approval of 2015 General Rate Case Settlement Fitch considers the 2015 general rate case (GRC) settlement agreement to be balanced and consistent with prior rate case outcomes. In July 2015, MGC, the Public Service Commission of West Virginia (PSCWV) staff, the Consumer Advocate Division of the Commission, and selected commercial customers that have collectively intervened as the West Virginia Energy Users Group joined in a joint stipulation and agreement for settlement regarding MGC's 2015 GRC. The joint stipulation is subject to the PSCWV's acceptance and approval, which Fitch expects to occur by the beginning of November. The joint stipulation would result in a base rate increase of $7.7 million, or 3.0%, which is based on a historical test year ended Sept. 30, 2014, and an authorized return on equity (ROE) of 9.75%. MGC had requested a $12.2 million base rate increase based on a forecasted test year ending Sept. 30, 2016. The joint stipulation includes MGC's proposal to decrease its purchased gas adjustment (PGA) rate, which would result in a net decrease in overall rates even after factoring in the proposed base rate increase. The requested effective date of implementation for the base rate increase and PGA rate decrease is Nov. 1, 2015. MGC received a balanced ruling in its last GRC. The PSCWV approved a $6.265 million rate increase effective Nov. 1, 2012, representing approximately 60% of MGC's revised revenue request. The rates were based on an authorized ROE of 9.9%. In April 2013, the PSCWV authorized an additional $522,000 annual revenue increase. Challenging Regulatory Environment Fitch considers the West Virginia regulatory environment to be challenging, despite MGC receiving relatively constructive base rate increases and slightly better than average authorized ROEs for gas distribution utilities during its recent rate cases. The PSCWV does not currently allow MGC the use of many regulatory mechanisms authorized in more-supportive regulatory jurisdictions, which would provide greater stability and predictability to cash flows. MGC does not have revenue decoupling or weather normalization, nor does it have riders for infrastructure replacement costs, pension expense, bad debt expense, or property taxes. In addition, the PSCWV uses a historical test year, as opposed to a forecasted test year, for determining rate increases. As a result, MGC is expected to continue to under-earn on its authorized ROE and experience significant volatility in cash flows. Elevated Capex MGC projects annual capex spending to range between $19 million and $21 million from 2015 through 2018, about 40% higher than the average capex over 2011-2013. MGC, similar to the rest of the natural gas distribution industry, is incurring higher spending for pipe integrity and safety inspections as well as replacement of older bare steel pipe, which accounts for roughly a quarter of its pipeline system. The full replacement of MGC's bare steel pipe is expected to take several decades at the current rate. MGC has requested approval of a multi-year infrastructure improvement rider that would allow for contemporaneous recovery of replacing, upgrading, and expanding gas infrastructure. Fitch would view approval of such a rider as credit-supportive in its ability to help reduce regulatory lag associated with MGC recovering its infrastructure investment costs. Legislation was signed by West Virginia Governor Tomblin in March 2015, and Fitch expects a PSCWV decision before the end of 2015. Private Equity Ownership Structure MGC is owned by Mountaineer Gas Holdings Limited Partnership (MGH), which is composed of general partner MGH LLC and limited partner Mid Mountain Holdings II LLC. IGS Utilities LLC, a partner in MGH LLC, provides general management oversight of MGC. Fitch considers the private equity ownership structure to present an increased level of credit risk due to an aggressive dividend payout policy and weak financial flexibility. MGC's dividend payout ratio was nearly 90% in 2014, significantly higher than the industry average of roughly 65%. Fitch expects MGC to continue with an above average dividend payout ratio close to 100% in future years. Capital access is limited, although MGC received a $20 million equity infusion in 2014. MGC may require further equity infusions and/or revolver borrowings to fund its elevated capex program and maintain its aggressive dividend policy. Supportive, But Volatile, Financial Metrics Fitch expects MGC's financial profile to remain supportive of the ratings, but the company's small size, seasonal working capital borrowings, and exposure to the effects of weather result in significant swings in financial metrics, both on a seasonal basis and year-to-year. Due to the seasonal nature of the winter heating season, short-term debt used to finance natural gas inventories and carry customer receivables normally peaks in late December and then is typically paid down by the end of the first quarter. There were $36 million of short-term borrowings at year-end 2014 and none at June 30, 2015. For the year ended Dec. 31, 2014 and the LTM ended June 30, 2015, FFO fixed-charge coverage was 4.4x and 3.4x, FFO-adjusted leverage 3.3x and 3.0x, and adjusted debt/EBITDAR 3.6x and 2.9x, respectively. Financial metrics in 2014, and also in 2013, benefited from colder-than-average weather conditions. Assuming normal weather conditions going forward, Fitch forecasts FFO fixed-charge coverage to average 3.7x - 4.1x, FFO-adjusted leverage 4.0x - 4.3x, and adjusted debt/EBITDAR 3.7x - 4.1x. The weaker projected leverage metrics account for increased revolver borrowings associated with the larger capex program. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for MGC include: -- PSCWV approval of the 2015 GRC settlement agreement, with a $7.7 million annual base rate increase effective Nov. 1, 2015; -- Implementation of an infrastructure replacement program rider, effective in 2016; -- O&M increases at an average annual rate of 2.5% over 2015 - 2018; -- Capex averaging $20 million per year over 2015 - 2018; -- Normal weather. RATING SENSITIVITIES Positive: A positive rating action is not likely, given the challenging regulatory environment in West Virginia, volatility of MGC's financial metrics, and ownership's aggressive financial policy. However, a positive rating action could occur if the PSCWV were to implement regulatory mechanisms that were sufficient enough to provide a greater level of stability and predictability to cash flows. In addition, Fitch would look for stability and sustainability among the following financial metrics: FFO fixed-charge coverage greater than 4.1x, FFO-adjusted leverage to remain less than 5.0x, and adjusted debt/EBITDAR less than 4.0x. Negative: Factors that could lead to a downgrade include future unfavorable regulatory orders that restrict MGC's ability to recover costs in a timely manner, a more-aggressive management policy that leads to greater distributions to owners and increased leverage, and a failure to maintain FFO-adjusted leverage of less than 6.0x and FFO fixed-charge coverage of at least 3.5x on a sustained basis. LIQUIDITY Fitch considers MGC's liquidity to be adequate, primarily supported by a $100 million unsecured revolving credit facility. The five-year facility expires Dec. 1, 2019, and includes an accordion feature that could expand the size of the facility up to $170 million to account for unusually high natural gas prices and volumes that can occur during the winter heating season. This facility should provide MGC with sufficient availability for its working capital needs following the May 2013 expiration of the utility's gas asset management agreement with Sequent. As of June 30, 2015, there were no borrowings outstanding under the facility, leaving $100 million of availability. The credit facility includes financial covenants to maintain EBITDA interest coverage of at least 2.0x and a debt/capitalization ratio no greater than 65%. There is also an annual cap of $25 million for capex. MGC is in compliance with all of its financial covenants. MGC's next long-term debt maturity is in 2017 when its $70 million, 7.58% unsecured senior notes come due. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings with a Stable Outlook: Mountaineer Gas Company -- Long-Term IDR at 'BB+'; -- Senior Unsecured Debt 'BBB-'. MTL PUBLISHING: S&P Affirms 'B+' Corp. Credit Rating ---------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'B+' corporate credit rating on U.S.-based MTL Publishing LLC. The rating outlook remains stable. At the same time, S&P assigned its 'BB-' issue-level rating and '2' recovery rating to the company's proposed first-lien senior secured credit facility, which consists of a $1.12 billion term loan due 2022 and a $50 million revolving credit facility due 2020, which will be undrawn at closing. The '2' recovery rating reflects S&P's expectation for substantial recovery (70%-90%; upper half of the range) of principal in the event of default. The company will use the proceeds from the transaction to refinance its existing term loan and to fund a $100 million special dividend to its owners. The company will also commit $80 million of the proceeds to partially prepay the term loan or the existing senior unsecured notes (not rated) within 12 months following the transaction. "The 'B+' corporate credit rating reflects our view that MTL will continue to generate consistent and predictable cash flows, adjusted debt leverage will remain above 6x, and free operating cash flow to debt will remain above 5% over the next 12-18 months," said Standard & Poor's credit analyst Naveen Sarma. Pro forma for the transaction, the company's adjusted debt to EBITDA ratio was 6.1x as of June 30, 2015 (5.8x pro forma if the $80 million debt is repaid). S&P expects that company's leverage will decline to the low-6x area in fiscal 2017 and the mid-5x area in fiscal 2018 as the company continues to prepay its debt through its excess cash flow sweep. "The stable rating outlook on MTL reflects our view that the company will continue to generate consistent and predictable free cash flow," said Mr. Sarma. "The outlook also reflects our expectation that MTL's free operating cash flow to debt will remain at least above 5% over the next 12-18 months, even though its adjusted leverage will remain above 5x." S&P could lower the rating if operating performance deterioration causes the company's cash flow metrics to weaken. This could occur if the company's performance and sync royalty streams are unable to offset a significant portion of the expected decline in mechanical physical royalties, causing free operating cash flow to debt falling below 5%. An upgrade, which S&P views as unlikely at this time, would require debt leverage declining meaningfully to below 5x, which could occur through EBITDA growth, debt repayment, and a less aggressive financial policy. NAKED BRAND: Amends 6% Senior Secured Convertible Debentures ------------------------------------------------------------ Naked Brand Group Inc. amended its 6% Senior Secured Convertible Debentures in the aggregate principal amount of $6,997,577 issued in connection with a private placement offering with respect to which closings occurred on June 10, 2014, and July 8, 2014, via the written consent of the Company and the holders of a majority of the aggregate principal amount of the Debentures outstanding. The Debentures were amended as follows: * The automatic conversion provisions of the Debentures were amended to provide that (i) the Debentures will automatically convert into shares of the Company's common stock upon the closing, or any combination of closings, of any equity offerings or financings with aggregate gross proceeds to the Company of at least $8,000,000; and (ii) the amount of principal and interest to be converted in connection with such an automatic conversion shall include an additional amount of interest equal to six months of interest that would have accrued under the terms of the Debentures. * The definition of "Permitted Lien" was amended to include liens securing the indebtedness described in the definition of "Permitted Indebtedness" in order to clarify the Company's ability to utilize receivables and inventory as collateral under factoring agreements entered into in the ordinary course of operations. About Naked Brand Naked Brand Group Inc. designs, manufactures, and sells men's innerwear and lounge apparel products in the United States and Canada. It offers various innerwear products, including trunks, briefs, boxer briefs, undershirts, T-shirts, and lounge pants under the Naked brand, as well as under the NKD sub-brand for men. The company sells its products to consumers and retailers through wholesale relationships and direct-to-consumer channel, which consists of an online e-commerce store, thenakedshop.com. Naked Brand Group Inc. is based in New York, New York. Naked Brand reported a net loss of $21.07 million for the year ended Jan. 31, 2015, compared to a net loss of $4.23 million for the year ended Jan. 31, 2014. As of April 30, 2015, the Company had $1.70 million in total assets, $1.30 million in total liabilities and $436,000 in total stockholders' equity. BDO USA, LLP, in New York, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Jan. 31, 2015, citing that the Company incurred a net loss of $21,078,265 for the year ended Jan. 31, 2015, had a capital deficit of $2,224,180 at Jan. 31, 2015, and the Company expects to incur further losses in the development of its business. These conditions raise substantial doubt about the Company's ability to continue as a going concern. NAKED BRAND: Notifies FINRA of Reverse Common Stock Split --------------------------------------------------------- The Board of Directors of Naked Brand Group Inc. previously approved a reverse stock split of the Company's common stock pursuant to which (i) the Company will effect a 1-for-40 reverse split of its common stock and (ii) the number of authorized shares of the Company's common stock will decrease from 450,000,000 to 11,250,000. Under Nevada law, shareholder consent is not required to approve or effect the reverse stock split. The Company has notified the Financial Industry Regulatory Authority of its intent to effect the reverse stock split. The reverse stock split will be effected by the Company filing a Certificate of Change with the Secretary of State of the State of Nevada. Under Nevada law, no amendment to the Company's articles of incorporation is required in connection with the reverse stock split. The reverse stock split will not be effective until the Company takes the actions required by FINRA and the State of Nevada (including the filing of the Certificate of Change). The Company anticipates that the reverse stock split will be effected on or about Aug. 10, 2015. The Company will disclose the actual effective date of the reverse stock split, if effected, on a future date by appropriate announcement. The Board of Directors may delay or abandon the reverse stock split in its sole discretion. If the reverse stock split is effected, every 40 shares of the Company's common stock that are issued and outstanding as of the applicable record date will automatically be combined into one issued and outstanding share without any change in the par value of those shares. If the reverse split is effected, no fractional shares will be issued in connection with the reverse stock split and shareholders who are entitled to a fractional share will instead receive a whole share. If the reverse stock split is effected, the reverse stock split will affect all holders of the Company's common stock uniformly and will not affect any shareholder's percentage ownership interest in the Company, except to the extent the reverse split will result in any holder being granted a whole share for any fractional share that resulted from the reverse split. All options, warrants and convertible securities of the Company outstanding immediately prior to the reverse stock split will be appropriately adjusted if the reverse stock split is effected. The Board of Directors approved the reverse stock split as part of the Company's pursuit of listing of its common stock on a national securities exchange. The Company has not yet submitted a listing application with any national securities exchange and, at present, the Company does not meet all of the initial listing requirements of any national securities exchange. The Company can make no assurance that it will meet the requirements to file a listing application with a national securities exchange or that, if such an application is filed, that such listing will be approved. About Naked Brand Naked Brand Group Inc. designs, manufactures, and sells men's innerwear and lounge apparel products in the United States and Canada. It offers various innerwear products, including trunks, briefs, boxer briefs, undershirts, T-shirts, and lounge pants under the Naked brand, as well as under the NKD sub-brand for men. The company sells its products to consumers and retailers through wholesale relationships and direct-to-consumer channel, which consists of an online e-commerce store, thenakedshop.com. Naked Brand Group Inc. is based in New York, New York. Naked Brand reported a net loss of $21.07 million for the year ended Jan. 31, 2015, compared to a net loss of $4.23 million for the year ended Jan. 31, 2014. As of April 30, 2015, the Company had $1.70 million in total assets, $1.30 million in total liabilities and $436,000 in total stockholders' equity. BDO USA, LLP, in New York, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Jan. 31, 2015, citing that the Company incurred a net loss of $21,078,265 for the year ended Jan. 31, 2015, had a capital deficit of $2,224,180 at Jan. 31, 2015, and the Company expects to incur further losses in the development of its business. These conditions raise substantial doubt about the Company's ability to continue as a going concern. NAKED BRAND: Receives $2.3 Million From Warrant Exercise -------------------------------------------------------- Naked Brand Group Inc. had received gross proceeds of approximately $2.34 million in connection with the Company's offer to amend and exercise warrants. The Company plans to use the net proceeds from the offering to fund ongoing operations, including the Company's efforts to accelerate sales and distribution of its men's collection, to launch and establish sales and distribution for its women's collection, to develop additional product lines, including its recently announced Dwyane Wade signature collection which Naked expects to launch in 2016, to implement marketing and brand awareness campaigns, and to explore opportunities to establish international distribution relationships and other strategic partnerships for the Company. In addition, the proceeds will also help the Company increase stockholders' equity, which, along with other changes to its capital structure that Naked intends to complete, is necessary to further the Company's goal to pursue a listing of its common stock on a national securities exchange such as Nasdaq or NYSE MKT. "I am thrilled with the exceptional support we have received from our investors," said Carole Hochman, the chief executive officer, chief creative officer and chairwoman of Naked. "This capital will help us continue building momentum as a brand with the success we are having with our men's collection, the launch of our first women's collection and our partnership with Dwyane Wade. I am so proud of our team and all we have accomplished in the past year. We anticipate that the year ahead will be even more exciting and productive for Naked as we focus on revenue growth, launching innovative marketing campaigns and delivering outstanding, new products to our customers." In connection with the offering, warrant holders elected to exercise a total of 23,427,779 of their $0.15 warrants at a reduced exercise price of $0.10 per share, providing a total of $2,342,777 in gross proceeds to the Company. This amount includes the exercise of 8,210,004 warrants in aggregate for a total of $821,000 by Carole Hochman, David Hochman, Vice Chairman of Naked, and Nico Pronk, CEO of Noble Financial Capital Markets, on the same terms as the warrant offering on July 7, 2015. Further, the holders of a majority in principal amount of convertible debentures that were issued together with certain of the warrants as part of an investment unit in connection with the Company's $7.3 million private placement completed in June and July 2014, voted to amend the automatic conversion provisions of the debentures to reduce the conversion threshold from $10 million gross proceeds received from an underwritten financing to $8 million in gross proceeds in the aggregate from any equity financings or combination thereof, including the proceeds of the offer to amend and restate the warrants. The Company believes this amendment to the debentures will also assist the Company in meeting certain listing requirements of either Nasdaq or NYSE MKT in the future. As part of the Company's plan to pursue a national securities exchange listing, Naked also announced that it would complete a 1-for-40 reverse split of its common stock effective. The reverse stock split is intended to better enable the Company to meet the certain requirements for listing its common stock on either Nasdaq or NYSE MKT. The Company anticipates that the reverse stock split will become effective on or about Aug. 10, 2015, but not before all regulatory approvals have been obtained and necessary filings have been made with the appropriate authorities. "Strengthening our capital markets position is an important part of our growth strategy for Naked," said Founder and president Joel Primus. "This funding and the confidence shown by our investors puts us in a stronger position and we are so excited to keep moving forward in building our company and establishing our brand. Naked's mission is to help our customers find the 'Freedom to Be You' by giving them products that set a new standard for fit, feel and function for innerwear and beyond." Noble Financial Capital Markets acted as the Company's warrant solicitation agent for this successful offering. About Naked Brand Naked Brand Group Inc. designs, manufactures, and sells men's innerwear and lounge apparel products in the United States and Canada. It offers various innerwear products, including trunks, briefs, boxer briefs, undershirts, T-shirts, and lounge pants under the Naked brand, as well as under the NKD sub-brand for men. The company sells its products to consumers and retailers through wholesale relationships and direct-to-consumer channel, which consists of an online e-commerce store, thenakedshop.com. Naked Brand Group Inc. is based in New York, New York. Naked Brand reported a net loss of $21.07 million for the year ended Jan. 31, 2015, compared to a net loss of $4.23 million for the year ended Jan. 31, 2014. As of April 30, 2015, the Company had $1.70 million in total assets, $1.30 million in total liabilities and $436,000 in total stockholders' equity. BDO USA, LLP, in New York, NY, issued a "going concern" qualification on the consolidated financial statements for the year ended Jan. 31, 2015, citing that the Company incurred a net loss of $21,078,265 for the year ended Jan. 31, 2015, had a capital deficit of $2,224,180 at Jan. 31, 2015, and the Company expects to incur further losses in the development of its business. These conditions raise substantial doubt about the Company's ability to continue as a going concern. NATIONAL CINEMEDIA: Reports Results for Fiscal 2nd Quarter 2015 --------------------------------------------------------------- National CineMedia, Inc., reported net income attributable to the Company of $10.1 million on $121.5 million of advertising revenue for the quarter ended July 2, 2015, compared to net income attributable to the Company of $3.6 million on $99.9 million of advertising revenue for the quarter ended June 26, 2015. For the six months ended July 2, 2015, the Company reported net income attributable to the Company of $1.1 million on $198.4 million of advertising revenue compared to net income attributable to the Company of $500,000 on $170.1 million of advertising revenue for the six months ended June 26, 2014. Commenting on the Company's second quarter operating results, Kurt Hall, NCM's Chairman and CEO said, "Our record second quarter advertising revenue and Adjusted OIBDA and strong third quarter guidance reflect the hard work of the NCM team." Mr. Hall continued, "A very successful upfront campaign last year and several quarters of video market share gains provides clear evidence that media buyers are looking for premium video alternatives where they know their ads will be seen." Mr. Hall concluded, "As we continue to expand our cinema network reach and improve our targeting and data analytics capabilities, I am confident that NCM will continue to strengthen its value proposition relative to other video advertising networks." The Company announced that its Board of Directors has authorized the Company's regular quarterly cash dividend of $0.22 per share of common stock. The dividend will be paid on Sept. 3, 2015, to stockholders of record on Aug. 20, 2015. The Company intends to pay a regular quarterly dividend for the foreseeable future at the discretion of the Board of Directors consistent with the Company's intention to distribute over time a substantial portion of its free cash flow in the form of dividends to its stockholders. The declaration, payment, timing and amount of any future dividends payable will be at the sole discretion of the Board of Directors who will take into account general economic and advertising market business conditions, the Company's financial condition, available cash, current and anticipated cash needs, and any other factors that the Board of Directors considers relevant. A full-text copy of the press release is available at: http://is.gd/Fa9La8 About National CineMedia National CineMedia, Inc., is the holding company of National CineMedia, LLC. NCM LLC operates the largest digital in-theatre network in North America, allowing NCM to distribute advertising, Fathom entertainment programming events and corporate events under long-term exhibitor services agreements with American Multi-Cinema Inc., a wholly owned subsidiary of AMC Entertainment Inc.; Regal Cinemas, Inc., a wholly owned subsidiary of Regal Entertainment Group; and Cinemark USA, Inc., a wholly owned subsidiary of Cinemark Holdings, Inc. NCM LLC also provides such services to certain third-party theater circuits under "network affiliate" agreements, which expire at various dates. * * * As reported by the TCR on March 24, 2011, Standard & Poor's Ratings Services raised its corporate credit ratings on Centennial, Colorado-based National CineMedia Inc. and operating subsidiary National CineMedia LLC (which S&P analyzes on a consolidated basis) to 'BB-' from 'B+'. "The 'BB-' corporate credit rating reflects S&P's expectation that NCM's EBITDA growth will enable the company to continue to de-lever over the intermediate term despite its aggressive dividend policy," said Standard & Poor's credit analyst Jeanne Shoesmith. NAVISTAR INTERNATIONAL: Hotchkis and Wiley Reports 10.4% Stake -------------------------------------------------------------- Hotchkis and Wiley Capital Management, LLC disclosed in a regulatory filing with the Securities and Exchange Commission that as of July 31, 2015, it beneficially owned 8,527,172 shares of common stock of Navistar International Corp., which represents 10.46 percent of the shares outstanding. Hotchkis and Wiley Mid-Cap Value Fund also owned 4,521,300 shares as of that date. A copy of the Schedule 13G is available at http://is.gd/Pw8raf About Navistar International Navistar International Corporation (NYSE: NAV) -- http://www.navistar.com/-- is a holding company whose subsidiaries and affiliates subsidiaries produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The Company also provides truck and diesel engine parts and service. Another affiliate offers financing services. Navistar International reported a net loss attributable to the Company of $619 million for the year ended Oct. 31, 2014, compared to a net loss attributable to the Company of $898 million for the year ended Oct. 31, 2013. * * * In the Oct. 9, 2013, edition of the TCR, Moody's Investors Service affirmed the ratings of Navistar International Corp., including the 'B3' corporate family rating. The ratings reflect Moody's expectation that Navistar's successful incorporation of Cummins engines throughout its product line up will enable the company to regain lost market share, and that progress in addressing component failures in 2010 vintage-engines will significantly reduce warranty expenses. As reported by the TCR on Oct. 9, 2013, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Navistar International to 'CCC+' from 'B-'. "The rating downgrades reflect our increased skepticism regarding NAV's prospects for achieving the market shares it needs for a successful business turnaround," said credit analyst Sol Samson. In January 2013, Fitch Ratings affirmed the issuer default ratings for Navistar International at 'CCC' and removed the negative outlook on the ratings. The removal reflects Fitch's view that immediate concerns about liquidity have lessened, although liquidity remains an important rating consideration as NAV implements its selective catalytic reduction engine strategy. NEW YORK MILITARY: Town Wants Access to Sale Documents ------------------------------------------------------ The Town of Cornwall asks the United States Bankruptcy Court for the Southern District of New York, Poughkeepsie Division, to compel the New York Military Academy to grant the Town access to all due diligence documents pertaining to the sale of the Debtor's assets. Sara C. Temes, Esq., at Bond, Schoeneck & King PLLC, in Syracuse, New York, relates that throughout the Chapter 11 case, the Town has participated and indicated its interest in the purchase of the Debtor's real property assets. At a hearing before the Court on June 1, 2015, the Debtor has represented that it had established a marketing process and had compiled due diligence materials for the prospective purchase of the Debtor's assets and had several interested parties. The Town asserts that the proposed plan and the lack of procedures and marketing efforts do not appear to provide potential purchasers access to information necessary to analyze the Debtor's assets to obtain the highest value for all parties in interest in this case. The Town of Cornwall is represented by: Sara C. Temes, Esq. BOND, SCHOENECK & KING PLLC One Lincoln Center Syracuse, New York 13202 Tel: (315) 218-8000 Fax: (315) 218-8100 Email: stemes@bsk.com About New York Military Academy New York Military Academy, a private coeducational boarding school, filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 15-35379) on March 3, 2015. David B. Fields signed the petition as first vice-president. The Debtor reported total assets of $10.5 million and total debts of $10.9 million. Lewis D. Wrobel, Esq., at Lewis D. Wrobel, represents the Debtor as counsel. The U.S. Trustee for Region 2 appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors. NIPPERS BEACH: Files for Chapter 11 Bankruptcy Protection --------------------------------------------------------- Keitha Nelson at First Coast News reports that Nippers Beach Grille filed for Chapter 11 bankruptcy protection on July 24, 2015. The restaurant said in its court filing that more than $1.1 million is owed to multiple creditors, including the IRS and the Duval County Tax Collector. Rudy Theale, the restaurant's owner, said that he's working to sell the restaurant and continue to build on its brand, First Coast relates. According to the report, Mr. Theale said that the shooting during a summer event in the restaurant in June 2014 that led to the death of Zachariah Tipton, along with other issues, left him with little choice. The report quoted Mr. Theale as saying, "After that it was very shaky for me for 90 days which I think is sort of expected . . . . There were a couple of months of down sales as you would imagine from an event like that, which put me in position where I had to take on additional debt. It just got to a point where it needed to be restructured." Nippers Beach Grille is a restaurant in Jacksonville Beach. OAKFABCO INC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Oakfabco, Inc. 1 Lincoln Center, Suite 1100 Oakbrook Terras, IL 60181 Case No.: 15-27062 Type of Business: The Debtor's sole business is defending and, where appropriate, settling asbestos claims through the use of insurance proceeds. The Debtor has not manufactured boilers since 1988 when it sold its Kewanee boiler business in a section 363 sale to Coppus Engineering Corporation. In early 2009, the Debtor sold all of its remaining assets. Chapter 11 Petition Date: August 7, 2015 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Hon. Jack B. Schmetterer Debtor's Counsel: Stephen T. Bobo, Esq. REED SMITH LLP 10 South Wacker Drive, Suite 4000 Chicago, IL 60606 Tel: 312 207-6480 Fax: 312 207-6400 Email: sbobo@reedsmith.com - and - Aaron B Chapin, Esq. REED SMITH LLP 10 S. Wacker Drive, 40th Floor Chicago, IL 60606 Tel: (312) - 207 2452 Email: achapin@reedsmith.com - and - Paul M. Singer, Esq. Luke A. Sizemore, Esq. Joseph D. Filloy, Esq. 225 Fifth Avenue, Suite 1200 Pittsburgh, PA 15222 Tel: (412) 288-3131 Fax: (412) 288-3063 Email: psinger@reedsmith.com lsizemore@reedsmith.com jfilloy@reedsmith.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by Frederick W. Stein, president. List of 20 law firms with the largest number of asbestos personal injury claims currently pending against the Debtor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Weitz & Luxenberg 700 Broadway New York, NY 10003 Perry Weitz Tel: (212) 558-5500 Same address Fax: (212) 344-5461 Cooney & Conway 120 N La Salle Dr Ste 3000, Chicago, IL 60602 John Cooney Tel:(800) 322-5573 Same address Fax: (312) 236-3029 Gori Julian & Associates 156 North Main Street Edwardsville, IL 62025 Randy Gori Tel: (618) 659-9833 Same address Fax: (618) 659-9834 The Law Offices of Peter Angelos, P.C. 100 N. Charles St., Baltimore, MD 21201 Peter Angelos Tel: (410) 649-2000 Same address Fax: (410) 649-2101 Napoli Bern Ripka Shkolnik, LLP Empire State Building 350 5th Avenue #7413, New York, NY 10118 Paul Napoli Tel: (212) 267-3700 Same address Fax: (212) 587-0031 Brent Coon & Associates 215 Orleans St., Beaumont, TX 77701 Brent Coon Tel: (409) 835-2666 Same address Fax: (409) 833-4483 Kelley & Ferraro, LLP 127 2200 Key Tower, Cleveland, OH 44114 James L. Ferraro Tel: (216) 202-3450 Same address Fax: (216) 575-0799 The Lanier Law Firm 6810 FM 1960 West, Houston, Texas 77069 W. Mark Lanier Tel: (800) 723-3216 Same address Fax: (713) 659-2204 Hissey Kientz, LLP The Arboretum at Great Hills 9442 N Capital of Texas Hwy #400, Austin, TX 78759 Rob Kientz Tel: (512) 320-9100 Same address Fax: (512) 320-9101 Reyes, O'Shea & Coloca, P.A. 345 Palermo Ave, Coral Gables, FL 33134 Angel Reyes Tel: (305) 374-8110 Same address Fax: (305) 374-8112 Shrader & Associates, LLP 3900 Essex Ln # 390, Houston, TX 77027 Justin Shrader Tel: (888) 637-6236 Same address Fax: (713) 571-9605 Nix Patterson & Roach, LLP 205 Linda Drive, Daingerfield, TX 75638 Harold W. Nix Tel: (903) 645-7333 Same address Fax (456) 456-4567 Bevan & Associates LPA, Inc. 6555 Dean Memorial Pkwy, Boston Heights, OH 44236 Thomas W. Bevan Tel: (330) 650-0088 Same address Fax: (330) 467-4493 Lundy, Lundy, Soileau & South LLP 501 Broad Street Lake Charles, LA 70601 Hunter Lundy Tel: (337) 439-0707 Same address Fax: (337) 439-1029 Mazur & Kittel, PLLC 30665 Northwestern Hwy Farmington Hills, MI 48334 John Kittel Tel: (800) 990-6380 Same address Fax: (248) 432-8010 Simmons Hanly Conroy LLC One Court Street, Alton, IL 62002 John Simmons Tel: (877) 897-4380 Same address Fax: (618) 259-2251 David C. Thompson Attorney at Law, P.C. 321 Kittson Ave, Grand Forks, ND 58201 David C. Thompson Tel: (701) 775-7012 Same address Fax: (701) 775-2520 Hossley & Embry 320 S Broadway Ave # 100, Tyler, TX 75702 D. Allen Hossley Tel: (866) 522-9265 Same address Fax: (903) 526-1773 Edward O. Moody, PA 1211 W 4th St , Little Rock, AR 72201 Edward O. Moody Tel: (501) 376-0000 Same address Fax: (501) 376-0546 SWMK Law, LLC 701 Market St #1575, St. Louis, MO 63101 Matt Morris Tel: (314) 480-5180 Same address Fax: (314 932-1566 OAKFABCO INC: Files for Chapter 11 to Resolve Asbestos Claims ------------------------------------------------------------- Oakfabco, Inc., formerly known as Kewanee Boiler Corporation, has sought bankruptcy protection to address asbestos claims, more than 25 years since selling its boilers business to Coppus Engineering Corporation in a bankruptcy sale. On Oct. 28, 1986, Kewanee filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code for the purpose of dealing with ongoing losses associated with the boiler business. During the bankruptcy case, Kewanee sold its boiler manufacturing assets to Coppus Engineering Corporation and was renamed Oakfabco, Inc. In March 1988, the Court confirmed Oakfabco's second amended chapter 11 plan of reorganization. The Debtor did not take steps in connection with its 1986 bankruptcy case to limit its liability to future tort claimants as the main reason for the 1986 filing was to deal with ongoing losses associated with the boiler business. In 1996, the Court determined that future victims of torts from defective boilers cannot be forced into participating in the limited distribution that unsecured creditors are entitled to receive under the 1988 Plan. See Kewanee Boiler Corp. v. Smith (In re Kewanee Boiler Corp.), 198 B.R. 519, 539 (Bankr. N.D. Ill. 1996). Rather, the Court determined that the tort claimants may seek to collect against the reorganized Debtor. Because no provision for future tort claims was made in the 1988 Plan, and as a consequence of the Court's decision in Smith, claimants have continued to file claims against the Debtor since confirmation of the 1988 Plan. Such claimants seek money damages for personal injury and wrongful death alleged as a result of exposure to asbestos-containing products allegedly manufactured or sold by the Debtor or a predecessor in interest. At present, the Debtor estimates that there are approximately 3,400 active Asbestos Claims and over 30,000 inactive Asbestos Claims outstanding against the Debtor. The Debtor is the policyholder under various insurance policies that provide coverage for Asbestos Claims. Among the issuers of such insurance are: (i) First State Insurance Company, New England Reinsurance Company, and Twin City Fire Insurance Company; (ii) Affiliated FM Insurance Company; and (iii) American Casualty Company, Continental Casualty Company and Columbia Casualty Company. Hartford, Affiliated FM, and CNA are referred to hereinafter collectively as the "Settling Insurers." For several years, resolution of the Asbestos Claims has been handled exclusively by the Settling Insurers, pursuant to a 2010 Cost-Sharing Agreement. After years of covering the Debtor's defense and indemnity costs relating to the Asbestos Claims, it is anticipated that the Debtor's coverage for defense costs, if not exhausted already, will be soon exhausted. As such, only those plaintiffs who rush to judgment likely will be compensated. As a result, in consultation with its counsel, the Debtor determined that it is in the best interests of the Debtor and its asbestos-related creditors for the Debtor to attempt to monetize its remaining insurance and commence the Chapter 11 case to effect a fair and efficient distribution to those creditors. To that end, the Debtor conducted negotiations with the Settling Insurers prior to filing the Chapter 11 case. Those negotiations resulted in settlement agreements that monetize the policies issued by the Settling Insurers in the amount of $17,333,079, with $4,550,000 from Affiliated FM, $3,000,000 from Hartford, and $9,783,079 from CNA. The Debtor has documented and executed settlements with Affiliated FM and Hartford. The Debtor reached an agreement with CNA. Documentation of that settlement is in process as of the filing of the Chapter 11 case. A portion of the proceeds of the settlement with the Settling Insurers will be used to fund the Chapter 11 case. Prior to the Petition Date, the Settling Insurer's each provided, for the benefit of the Debtor, an advance payment of $50,000, aggregating $150,000, to Reed Smith LLP, for professional servicers to be rendered and expenses to be incurred by Reed Smith for services to be provided to the Debtor in connection the preparation for the commencement of these proceedings. Additionally, prior to the Chapter 11 filing, Hartford and Affiliated FM made subsequent payments of $450,000 and $675,000, respectively, in connection with their obligations under their settlement agreements. All such sums provided by the Settling Insurers (which aggregate $1,275,000) were deposited in Reed Smith's client trust account. Reed Smith set-off the amount of its fees and expenses incurred to the date of this Chapter 11 filing against the balance in its trust account and has agreed to transfer the remaining balance to a debtor-in-possession account that will be used to fund the costs of administering the Chapter 11 case. It is intended that funds remaining in the debtor-in-possession account after payment of administrative expenses of the Chapter 11 case will be transferred, together with other insurance settlement payments, to the liquidating trust to pay Asbestos Claims. A copy of Frederick Stein's declaration in support of the Chapter 11 petition and first day pleadings is available for free at: http://bankrupt.com/misc/Oakfabco_1st_Day_Affidavit.pdf About Oakfabco, Inc. Oakfabco, Inc, formerly known as Kewanee Boiler Corporation, has not manufactured boilers since 1988 when it sold its Kewanee boiler business in an 11 U.S.C. Section 363 sale to Coppus Engineering Corporation. In early 2009, it sold all of its remaining assets. The Debtor has no employees, and, Frederick W. Stein is the Debtor's sole officer and director. The Debtor's sole remaining asset is its insurance, and it has no known liabilities other than asbestos claims. In January 1970, Kewanee Boiler Corp, then a newly-formed Illinois Corporation, acquired the assets and debt of American Standard, Inc.'s commercial boiler manufacturing division known as "Kewanee Boiler." The boilers manufactured and sold by Kewanee Boiler were insulated with asbestos. Oakfabco sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 16-27062) on Aug. 7, 2015, to resolve its remaining asbestos claims. Reed Smith LLP serves as counsel to the Debtor. The Debtor estimated $10 million to $50 million in assets and debt. OAKFABCO INC: Wants Until September to File Schedules ----------------------------------------------------- Oakfabco, Inc., is asking the U.S. Bankruptcy Court for the Northern District of Illinois to extend by 30 days, for a total of 44 days after the Petition Date, the deadline to file its schedules of assets and liabilities and statement of financial affairs. Stephen T. Bobo, Esq., at Reed Smith LLP, submits that "cause" exists to grant an extension. The Debtor has no employees and only one officer and director. The Debtor's sole officer and director, who has been busily engaged preparing for this Chapter 11 Case, requires additional time to compile the necessary information to complete the Schedules and the Statement. Because focusing the attention of the Debtor's sole officer and director on negotiating insurance settlement agreements, a chapter 11 plan of liquidation, and Chapter 11 compliance issues during the early days of the Chapter 11 Case will facilitate the Debtor's smooth transition into chapter 11 and an efficient resolution of asbestos claims, the Debtor believes that its request for a 30-day extension of time to file its Schedules and Statement will maximize the value of its estate for the benefit of all parties in interest. About Oakfabco, Inc. Oakfabco, Inc, formerly known as Kewanee Boiler Corporation, has not manufactured boilers since 1988 when it sold its Kewanee boiler business in an 11 U.S.C. Section 363 sale to Coppus Engineering Corporation. In early 2009, it sold all of its remaining assets. The Debtor has no employees, and, Frederick W. Stein is the Debtor's sole officer and director. The Debtor's sole remaining asset is its insurance, and it has no known liabilities other than asbestos claims. In January 1970, Kewanee Boiler Corp, then a newly-formed Illinois Corporation, acquired the assets and debt of American Standard, Inc.'s commercial boiler manufacturing division known as "Kewanee Boiler." The boilers manufactured and sold by Kewanee Boiler were insulated with asbestos. Oakfabco sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 16-27062) on Aug. 7, 2015, to resolve its remaining asbestos claims. Reed Smith LLP serves as counsel to the Debtor. The Debtor estimated $10 million to $50 million in assets and debt. ONE SOURCE: Caterpillar Fin'l Seeks Additional Adequate Protection ------------------------------------------------------------------ Caterpillar Financial Services Corporation asks the United States Bankruptcy Court for Northern District of Texas, Fort Worth Division, to direct One Source Industrial Holdings, LLC, and One Source Industrial LLC, to make additional adequate protection payments for the continued use of certain equipment. Caterpillar Financial asserts a perfected security interests in seven units of Caterpillar heavy equipment, 28 frac tanks, three trucks and two vacuum trailers. The Caterpillar Financial Equipment secures debts owed to Caterpillar Financial by Holdings in the amount of $1,843,996. Caterpillar asks that, as a condition for the Debtors' continued use of the equipment, the Debtors will make adequate protection payments to Caterpillar and maintain in effect "full coverage" insurance protection, including both liability insurance and casualty insurance, for the Caterpillar, in an amount of at least $1,000,000, with Caterpillar named as an additional loss payee as its interests may appear in the equipment, and may furnish proof of the insurance to Caterpillar. The Debtors and Caterpillar stipulated that if the automatic stay terminates as to Caterpillar Financial, the automatic stay will terminate as to Midland County Appraisal District, Andrews County Tax Office, Andrews Independent School District, Ector County Appraisal District, Reeves County and Reeves County Appraisal District (the "Taxing Authorities"), to the extent they assert a tax lien in the Equipment, at the same time. Caterpillar agrees that it will file a Notice of Termination of the Automatic Stay with the Court should the Debtors default under the terms of this Agreed Order. Caterpillar Financial further agrees to notify the Taxing Authorities not less than ten days prior to the sale of any of the Caterpillar Financial Equipment, should that occur, including the date, time and location of the sale. One Source Industrial Holdings, LLC is represented by: J. Robert Forshey, Esq. Suzanne K. Rosen, Esq. FORSHEY & PROSTOK LLP 777 Main St., Suite 1290 Fort Worth, TX 76102 Tel: (817) 877-8855 Fax: (817) 877-4151 Email: bforshey@forsheyprostok.com srosen@forsheyprostok.com Caterpillar Financial Services Corporation is represented by: John Mayer, Esq. ROSS, BANKS, MAY, CRON & CAVIN, P.C. 2 Riverway, Suite 700 Houston, TX 77056 Tel: (713) 626-1200 Fax: (713) 623-6014 Email: jmayer@rossbanks.com About One Source Industrial One Source Industrial Holdings, LLC, and One Source Industrial LLC are both limited liability companies. One Source Industrial Holdings holds equipment utilized by various related entities which provide rental equipment and industrial services to businesses in the oil and gas, refining, manufacturing, pipeline, shipping, and construction industries. Industrial provides executive management, accounting, and overhead services for Holdings. One Source Holdings sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 14-44996) on Dec. 16, 2014. One Industrial sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 15-400038) on Jan. 4, 2015. Judge Russell F. Nelms presides over the Holdings' case. J. Robert Forshey, Esq., and Suzanne K. Rosen, Esq., at Forshey & Prostok, LLP, represents the Debtors. The Debtors tapped EJC Ventures LP as financial consultant. The Debtor disclosed $12,036,897 in assets and $15,890,063 in liabilities as of the Chapter 11 filing. The U.S. Trustee appointed five creditors to serve on the official committee of unsecured creditors. OVERSEAS SHIPHOLDING: Investors Settle Lawsuit with Execs, Others ----------------------------------------------------------------- Nate Raymond, writing for Reuters, reported that Overseas Shipholding Group Inc. investors have reached $16.25 million in settlements with the executives, underwriters and an auditor of the tanker company in a lawsuit related to its 2012 bankruptcy and tax problems. According to the report, company directors and officers, including former Chief Executive Morten Arntzen and former Chief Financial Officer Myles Itkin, agreed to pay $10.5 million. Underwriters including Citigroup Inc, Deutsche Bank AG and Goldman Sachs Group Inc will pay $4 million, while accounting firm PricewaterhouseCoopers LLP will pay $1.75 million, the report added. About Overseas Shipholding Overseas Shipholding Group, Inc. (OTC: OSGIQ), headquartered in New York is one of the largest publicly traded tanker companies in the world, engaged primarily in the ocean transportation of crude oil and petroleum products. OSG owns or operates 111 vessels that transport oil and petroleum products throughout the world. Overseas Shipholding Group and 180 affiliates filed voluntary Chapter 11 petitions (Bankr. D. Del. Lead Case No. 12-20000) on Nov. 14, 2012, disclosing $4.15 billion in assets and $2.67 billion in liabilities. Greylock Partners LLC Chief Executive John Ray serves as chief reorganization officer. James L. Bromley, Esq., and Luke A. Barefoot, Esq., at Cleary Gottlieb Steen & Hamilton LLP serve as OSG's Chapter 11 counsel. Derek C. Abbott, Esq., Daniel B. Butz, Esq., and William M. Alleman, Jr., at Morris, Nichols, Arsht & Tunnell LLP, serve as local counsel. Chilmark Partners LLC serves as financial adviser. Kurtzman Carson Consultants LLC is the claims and notice agent. The Export-Import Bank of China, owed $312 million used for the construction of five tankers, is represented by Louis R. Strubeck, Jr., Esq., and Kristian W. Gluck, Esq., at Fulbright & Jaworski LLP in Dallas; David L. Barrack, Esq., and Beret Flom, Esq., at Fulbright & Jaworski in New York; and John Knight, Esq., and Christopher Samis, Esq., at Richards Layton & Finger PA. Chilmark Partners, LLC serves as financial and restructuring advisor. Akin Gump Strauss Hauer & Feld LLP, and Pepper Hamilton LLP, serve as co-counsel to the official committee of unsecured creditors. FTI Consulting, Inc., is the financial advisor and Houlihan Lokey Capital, Inc., is the investment banker. U.S. Bank National Association is the successor administrative agent under the $1.5 billion credit agreement, dated as of February 9, 2006 by and among (a) OSG, OSG Bulk Ships, Inc., and OSG International, Inc., as joint and several borrowers, (b) the Administrative Agent and (c) various lenders party thereto. Counsel to the Administrative Agent are Milbank, Tweed, Hadley & McCloy LLP; Holland & Knight LLP; and Drinker Biddle & Reath LLP. Lazard Freres & Co. LLC serves as advisor to the Administrative Agent. An official committee of Equity Security Holders has been appointed in the case. It is represented by Brown Rudnick LLP's Steven D. Pohl, Esq., James W. Stoll, Esq. and Jesse N. Garfinkle, Esq.; Fox Rothschild LLP's Jeffrey M. Schlerf, Esq., John H. Strock, Esq. and L. John Bird, Esq. Judge Walsh signed on July 18, 2014, a findings of fact, conclusions of law, and order confirming the First Amended Joint Plan of Reorganization of OSG and its debtor-affiliates. A blacklined version of the Plan dated July 17, 2014, is available at http://bankrupt.com/misc/OSGplan0716.pdf A full-text copy of Judge Walsh's Confirmation Order is available at http://bankrupt.com/misc/OSGplanord0718.pdf * * * The Troubled Company Reporter, on Aug. 14, 2014, reported that Moody's Investors Service assigned Caa1 ratings to the unsecured notes of Overseas Shipholding Group, Inc. ("OSG") that are being reinstated pursuant to its plan of reorganization which becomes effective. Moody's also affirmed the B2 Corporate Family Rating and all of the other debt ratings it assigned to OSG on June 12, 2014 in anticipation of the conclusion of the Chapter 11 reorganization. The rating outlook is stable. The TCR, on Aug. 19, 2014, also reported that Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Overseas Shipholding Group Inc. (OSG). The outlook is stable. PATRIOT COAL: Hirschler Fleischer Files Rule 2019 Statement ----------------------------------------------------------- Virginia-based law firm Hirschler Fleischer P.C. disclosed in a court filing that it represents these claimants in the Chapter 11 cases of Patriot Coal Corp. and its affiliates: (1) CSX Transportation, Inc. 500 Water Street Jacksonville, Florida 32202 (2) Bennett K. Hatfield P.O. Box 2405 Charleston, West Virginia 25302 (3) Fifth Third Bank c/o Kirk B. Burkley, Esq. Bernstein-Burkley, P.C. 707 Grant Street, Suite 2200 Pittsburgh, Pennsylvania 15219 Hirschler Fleischer made the disclosure pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. About Patriot Coal Patriot Coal Corporation is a producer and marketer of coal in the United States. Patriot and its subsidiaries control 1.4 billion tons of proven and probable coal reserves -- including owned and leased assets in the Central Appalachia basin (in West Virginia and Ohio) and Southern Illinois basin (in Kentucky and Illinois) and their operations consist of eight active mining complexes in West Virginia. Patriot Coal first sought Chapter 11 protection on July 9, 2012, and, on Dec. 18, 2013, won approval of its bankruptcy-exit plan from the U.S. Bankruptcy Court for the Eastern District of Missouri. The plan turned over most of the ownership of the company to bondholders that include New York hedge fund Knighthead Capital Management LLC. The linchpins of the plan were a global settlement among the Debtors, the United Mine Workers of America, and two third parties -- Peabody Energy Corporation and Arch Coal, Inc. -- and a commitment by a consortium of creditors, led by Knighthead, to backstop two rights offerings that funded the plan. Patriot Coal Corporation and its subsidiaries commenced new Chapter 11 cases (Bankr. E.D. Va. Lead Case No. 15-32450) in Richmond, Virginia, on May 12, 2015. The cases are assigned to Judge Keith L. Phillips. The Debtors tapped Kirkland & Ellis LLP as counsel; Kutak Rock L.L.P., as co-counsel; Centerview Partners LLC as investment bankers; Alvarez & Marsal North America, LLC, as restructuring advisors; and Prime Clerk LLC, as claims and administrative agent. The U.S. trustee overseeing the Chapter 11 case of Patriot Coal appointed seven creditors of the company to serve on the official committee of unsecured creditors. On June 22, 2015, Joseph Bean, Patriot Coal's senior vice-president, was designated by the court to perform the duties imposed upon the company by the Bankruptcy Code. This designation will remain in effect during the entire pendency of Patriot Coal's case until altered by order of the court. Patriot Coal estimated more than $1 billion in assets and debt. PATRIOT COAL: Sierra Liquidity Acquires $11,000 Trade Claim ----------------------------------------------------------- In the Chapter 11 cases of Patriot Coal Corporation, et al., one claim switched hands on July 23, 2015: Transferee Transferor Claim Amount ---------- ---------- ------------ Sierra Liquidity Fund, LLC White Armature $11,640.09 Works, Inc. About Patriot Coal Patriot Coal Corporation is a producer and marketer of coal in the United States. Patriot and its subsidiaries control 1.4 billion tons of proven and probable coal reserves -- including owned and leased assets in the Central Appalachia basin (in West Virginia and Ohio) and Southern Illinois basin (in Kentucky and Illinois) and their operations consist of eight active mining complexes in West Virginia. Patriot Coal first sought Chapter 11 protection on July 9, 2012, and, on Dec. 18, 2013, won approval of its bankruptcy-exit plan from the U.S. Bankruptcy Court for the Eastern District of Missouri. The plan turned over most of the ownership of the company to bondholders that include New York hedge fund Knighthead Capital Management LLC. The linchpins of the plan were a global settlement among the Debtors, the United Mine Workers of America, and two third parties -- Peabody Energy Corporation and Arch Coal, Inc. -- and a commitment by a consortium of creditors, led by Knighthead, to backstop two rights offerings that funded the plan. Patriot Coal Corporation and its subsidiaries commenced new Chapter 11 cases (Bankr. E.D. Va. Lead Case No. 15-32450) in Richmond, Virginia, on May 12, 2015. The cases are assigned to Judge Keith L. Phillips. The Debtors tapped Kirkland & Ellis LLP as counsel; Kutak Rock L.L.P., as co-counsel; Centerview Partners LLC as investment bankers; Alvarez & Marsal North America, LLC, as restructuring advisors; and Prime Clerk LLC, as claims and administrative agent. The U.S. trustee overseeing the Chapter 11 case of Patriot Coal Corp. appointed seven creditors of the company to serve on the official committee of unsecured creditors. Patriot Coal estimated more than $1 billion in assets and debt. PLUG POWER: Posts $9.2 Million Net Loss for Second Quarter ---------------------------------------------------------- Plug Power, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $9.2 million on $24 million of total revenue for the three months ended June 30, 2015, compared to net income attributable to common shareholders of $3.8 million on $17.3 million of total revenue for the same period during the prior year. For the six months ended June 30, 2015, the Company reported a net loss attributable to common stockholders of $20.3 million on $33.4 million of total revenue compared to a net loss attributable to common stockholders of $72 million on $22.8 million of total revenue for the same period during the prior year. As of June 30, 2015, Plug Power had $182.9 million in total assets, $40.2 million in total liabilities, $1.1 million in redeemable preferred stock and $141.5 million in total stockholders' equity. "Plug Power is experiencing continual revenue and gross margin expansion," says Plug Power CEO Andy Marsh. "We expect the third quarter to be even better than Q2 2015, with revenues of over $30 million." Cash and Liquidity Net cash used in operating activities for the second quarter 2015 was $10.6 million which stems from the ongoing investment in the Company's increased commercial activity, as well as incremental investment in working capital given the inventory build activity for third quarter programs. Plug Power had cash and cash equivalents of $109.1 million and net working capital of $135.8 million at June 30, 2015. Bankruptcy Warning "Our cash requirements relate primarily to working capital needed to operate and grow our business, including funding operating expenses, growth in inventory to support both shipments of new units and servicing the installed base, funding the growth in our GenKey "turn-key" solution which also includes the installation of our customer's hydrogen infrastructure as well as delivery of the hydrogen molecule, and continued development and expansion of our products. Our ability to achieve profitability and meet future liquidity needs and capital requirements will depend upon numerous factors, including the timing and quantity of product orders and shipments; attaining positive gross margins; the timing and amount of our operating expenses; the timing and costs of working capital needs; the timing and costs of building a sales base; the ability of our customers to obtain financing to support commercial transactions; our ability to obtain financing arrangements to support the sale or leasing of our products and services to customers; the timing and costs of developing marketing and distribution channels; the timing and costs of product service requirements; the timing and costs of hiring and training product staff; the extent to which our products gain market acceptance; the timing and costs of product development and introductions; the extent of our ongoing and new research and development programs; and changes in our strategy or our planned activities. If we are unable to fund our operations with positive cash flows and cannot obtain external financing, we may not be able to sustain future operations. As a result, we may be required to delay, reduce and/or cease our operations and/or seek bankruptcy protection," the Company said in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/k71PdJ About Plug Power Plug Power Inc. is a provider of alternative energy technology focused on the design, development, commercialization and manufacture of fuel cell systems for the industrial off-road (forklift or material handling) market. Plug Power reported a net loss attributable to common shareholders of $88.6 million on $64.2 million of total revenue for the year ended Dec. 31, 2014, compared to a net loss attributable to common shareholders of $62.8 million on $26.6 million of total revenue for the year ended Dec. 31, 2013. PMC MARKETING: San Sebastian's Bid to Dismiss Clawback Suit Granted ------------------------------------------------------------------- Judge Brian K. Tester of the United States Bankruptcy Court for the District of Puerto Rico granted the Municipality of San Sebastian's motion to dismiss a complaint filed by Noreen Wiscovitch Rentas, as Chapter 7 Trustee for PMC Marketing Corp. The Chapter 7 Trustee filed the complaint to recover monies pursuant to Section 547 of the Bankruptcy Code. The complaint alleged that the Debtor was insolvent at the time of the alleged transfer and that said transfer was made within 90 days of March 18, 2009, the date of filing of the Debtor's voluntary chapter 11 bankruptcy petition. The defendant filed a Motion to Dismiss. It argued that the complaint alleged that the debtor was insolvent at the time of the alleged transfer and that said transfer was made within 90 days of March 18, 2009, the date of filing of the debtor's voluntary chapter 11 bankruptcy petition, but the Trustee provided no facts to form the basis of her allegations. The defendant contended that no information was provided as to the debtor's economic conditions prior to the order for relief, nor are any dates given as to when the alleged transfers took place. Judge Tester held that the complaint does not state a claim upon which relief can be granted. The judge explained that while the complaint recites the statutory language of Section 547 and incorporates that "Debtor made a transfer of funds which were part of its property to the herein Defendant, a creditor of the Debtor. The transfer of funds was for the amount of $9,157.51." the complaint contains no information as to the form of payment or the dates such payments were made. The case is IN RE: PMC MARKETING CORP, Chapter 7, Debtor(s), CASE NO. 09-02048 (Bankr. D.P.R.). The adversary proceeding is NOREEN WISCOVITCH RENTAS, CHAPTER 7 TRUSTEE Plaintiff(s), v. MUNICIPALITY OF SAN SEBASTIAN Defendant(s), ADVERSARY NO. 12-00113 (Bankr. D.P.R.). A copy of the Judge Tester's July 27, 2015 opinion and order is available at http://is.gd/LU5ro7at Leagle.com. PMC Marketing Corp. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 09-02048) on March 18, 2009. The case was converted into a Chapter 7 proceeding on May 19, 2010. On May 20, 2010, Noreen Wiscovitch-Rentas was appointed the Chapter 7 trustee. QUALITY DISTRIBUTION: Reports $2.1 Million Net Income for Q2 ------------------------------------------------------------ Quality Distribution, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $2.1 million on $227 million of total operating revenues for the three months ended June 30, 2015, compared to net income of $11.3 million on $256 million of total operating revenues for the same period during the prior year. For the six months ended June 30, 2015, the Company reported net income of $4.7 million on $457 million of total operating revenues compared to net income of $14.4 million on $490 million of total operating revenues for the same period a year ago. As of June 30, 2015, the Company had $413 million in total assets, $436 million in total liabilities and a $22.9 million total shareholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/qGYLvG About Quality Distribution Quality Distribution, LLC, and its parent holding company, Quality Distribution, Inc., are headquartered in Tampa, Florida. The company is a transporter of bulk liquid and dry bulk chemicals. The company's 2010 revenues are approximately $686 million. Apollo Management, L.P., owns roughly 30 percent of the common stock of Quality Distribution, Inc. Bankruptcy Warning "We have substantial indebtedness and may not be able to make required payments on our indebtedness. We had consolidated indebtedness and capital lease obligations, including current maturities of $351.3 million, as of December 31, 2014. We must make regular payments under the ABL Facility, including the Term Loan, thereunder, and our capital leases and semi-annual interest payments under our 2018 Notes. The ABL will mature at the earlier of November 2019 and the date that is 91 days prior to the maturity of the Company's currently outstanding 2018 Notes or any replacement notes if the outstanding amount of such debt is above a certain threshold. The Term Loan matures on November 3, 2017 but we are subject to mandatory prepayment of the principal amount of the Term Loan in equal quarterly payments beginning as early as November 2015. The maturity date of the ABL Facility, including the Term Loan, may be accelerated if we default on our obligations. If the maturity of the ABL Facility and/or such other debt is accelerated, we may not have sufficient cash on hand to repay the ABL Facility and/or such other debt or be able to refinance the ABL Facility and/or such other debt on acceptable terms, or at all. The failure to repay or refinance the ABL Facility and/or such other debt at maturity would have a material adverse effect on our business and financial condition, would cause substantial liquidity problems and may result in the bankruptcy of us and/or our subsidiaries. Any actual or potential bankruptcy or liquidity crisis may materially harm our relationships with our customers, suppliers and independent affiliates," the Company states in its 2014 annual report. * * * As reported in the TCR on June 28, 2013, Moody's Investors Service upgraded Quality Distribution, LLC's Corporate Family Rating to 'B2' from 'B3' and Probability of Default Rating to 'B2-PD' from 'B3-PD'. The upgrade of Quality's CFR to 'B2' was largely driven by the expectation that credit metrics will improve over the next twelve to eighteen months, through a combination of EBITDA growth and debt paydowns, to levels consistent with the 'B2' rating level. The company is in the process of integrating the bolt-on acquisitions made in its Energy Logistics business sector since 2011. As reported by the TCR on July 17, 2015, Standard & Poor's Ratings Services said that it has lowered its corporate credit rating on Tampa-based transportation and logistics provider Quality Distribution Inc. to 'B-' from 'B' and removed the ratings from CreditWatch, where S&P had placed them with negative implications on May 8, 2015. "The downgrade reflects Quality Distribution's higher debt-leverage pro forma for its acquisition by Apax Partners," said Standard & Poor's credit analyst Michael Durand. QUANTUM CORP: Posts $10.7 Million Net Loss for First Quarter ------------------------------------------------------------ Quantum Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $10.7 million on $110.8 million of total revenue for the three months ended June 30, 2015, compared to a net loss of $4.3 million on $128.1 million of total revenue for the same period last year. As of June 30, 2015, the Company had $314.6 million in total assets, $382.6 million in total liabilities and a $67.9 million total stockholders' deficit. As of June 30, 2015, the Company had $53.7 million of cash and cash equivalents, which is comprised of money market funds and cash deposits. "We continue to focus on improving our operating performance, including efforts to increase revenue and to continue to control costs in order to improve margins, return to consistent profitability and generate positive cash flows from operating activities. We believe that our existing cash and capital resources will be sufficient to meet all currently planned expenditures, debt service and contractual obligations and to sustain operations for at least the next 12 months. This belief is dependent upon our ability to achieve gross margin projections and to control operating expenses in order to provide positive cash flow from operating activities. Should we be unable to meet our gross margin or expense objectives, it would likely have a material negative effect on our cash balances and capital resources." A full-text copy of the Form 10-Q is available for free at: http://is.gd/MsXrxZ About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. Quantum reported net income of $16.7 million on $553 million of total revenue for the year ended March 31, 2015, compared to a net loss of $21.5 million on $553 million of total revenue for the year ended March 31, 2014. QUICKSILVER RESOURCES: Bankruptcy Filing in Delaware Irks Judge --------------------------------------------------------------- U.S. Bankruptcy Judge Russell F. Nelms criticized Quicksilver Resources Inc., et al., for filing for Chapter 11 bankruptcy protection in the Delaware court rather than in a hometown court, even though the Company is based less than a mile from his courtroom on West 10th Street, Max B. Baker at Star-Telegram reports. Judge Nelms said in an Aug. 3, 2015 opinion that "although one of the goals of bankruptcy is to facilitate creditor participation, many debtors now file for bankruptcy in locations that are certain to minimize it. Various excuses are given for these remote filings. Few are convincing . . . . Some are filed with a goal of precluding easy access to the court by small creditors, especially if those creditors are soon-to-be former employees." About Quicksilver Quicksilver Resources Inc. (OTCQB: KWKA) is an exploration and production company engaged in the development and production of long-lived natural gas and oil properties onshore North America. Based in Fort Worth, Texas, the company claims to be a leader in the development and production from unconventional reservoirs including shale gas, and coal bed methane. Following more than 30 years of operating as a private company, Quicksilver became public in 1999. The Company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas; Steamboat Springs, Colorado; Craig, Colorado and Cut Bank, Montana. The Company's Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. On March 17, 2015, Quicksilver Resources Inc. and certain of its affiliates filed voluntary petitions for relief under Chapter 11 of title 11 of the United States Code in Delaware. The Debtors are seeking joint administration under the main case, In re Quicksilver Resources Inc. Case No. 15-10585. Quicksilver's Canadian subsidiaries were not included in the chapter 11 filing. The Company's legal advisors are Akin Gump Strauss Hauer & Feld LLP in the U.S. and Bennett Jones in Canada. Richards Layton & Finger, P.A., is legal co-counsel in the Chapter 11 cases. Houlihan Lokey Capital, Inc. is serving as financial advisor. Garden City Group Inc. is the claims and noticing agent. The Company's balance sheet at Dec. 31, 2014, showed $1.21 billion in total assets, $2.35 billion in total liabilities and total stockholders' deficit of $1.14 billion. The U.S. Trustee for Region 3 appointed five creditors of Quicksilver Resources Inc. to serve on the official committee of unsecured creditors. * * * The Debtors have been given exclusive right to file a bankruptcy plan through Oct. 13, 2015. RADIOSHACK CORP: Bankruptcy Filing in Delaware Irks Judge --------------------------------------------------------- U.S. Bankruptcy Judge Russell F. Nelms criticized RadioShack Corporation for filing for Chapter 11 bankruptcy protection in the Delaware court rather than in a hometown court, even though the Company is based less than a mile from his courtroom on West 10th Street, Max B. Baker at Star-Telegram reports. Judge Nelms said in an Aug. 3, 2015 opinion that "although one of the goals of bankruptcy is to facilitate creditor participation, many debtors now file for bankruptcy in locations that are certain to minimize it. Various excuses are given for these remote filings. Few are convincing . . . . Some are filed with a goal of precluding easy access to the court by small creditors, especially if those creditors are soon-to-be former employees . . . . No employee at RadioShack's corporate headquarters took off from work early and walked the few short blocks to this court to observe any proceedings in that bankruptcy case. And that's a shame, not necessarily because the result would have been different, but because that employee might have felt a little better about the result and the system after seeing the sausage being made." About RadioShack Corporation Headquartered in Fort Worth, Texas, RadioShack (OTCMKTS: RSHCQ) -- http://www.radioshackcorporation.com-- is a retailer of mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack's retail network includes more than 4,300 company-operated stores in the United States, 270 company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide. RadioShack Corporation and affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 15-10197) on Feb. 5, 2015. Judge Kevin J. Carey presides over the case. David G. Heiman, Esq., Greg M. Gordon, Esq., Amanda M. Suzuki, Esq., Jonathan M. Fisher, Esq., Thomas A. Howley, Esq., and Paul M. Green, Esq., at Jones Day serve as the Debtors' bankruptcy counsel. David M. Fournier, Esq., Evelyn J. Meltzer, Esq., and John H. Schanne, II, Esq., at Pepper Hamilton LLP serve as co-counsel. Carlin Adrianopoli at FTI Consulting, Inc., is the Debtors' restructuring advisor. Maeva Group, LLC, is the Debtors' Turnaround advisor. Lazard Freres & Co. LLC is the Debtors' investment banker. A&G Realty Partners is the Debtors' real estate advisor. Prime Clerk is the Debtors' claims and noticing agent. In an amended schedules, RadioShack disclosed total assets of $1,094,497,280 and total liabilities of $3,101,098,375. Quinn Emanuel Urquhart & Sullivan, LLP and Cooley LLP represent the Official Committee of Unsecured Creditors as co-counsel. Houlihan Lokey Capital, Inc., serves as financial advisor and investment banker. The bankruptcy case is assigned to Judge Brendan L. Shannon. RESPONSE GENETICS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Response Genetics, Inc. fdba Bio Type, Inc. 1640 Marengo Street, 7th Floor Los Angeles, CA 90033 Case No.: 15-11663 Type of Business: The Debtor is a life science company engaged in the research and development of clinical diagnostic cancer testing. Chapter 11 Petition Date: August 9, 2015 Court: United States Bankruptcy Court District of Delaware (Delaware) Debtor's Counsel: James E. O'Neill, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705 Tel: 302-652-4100 Fax: 302-652-4400 Email: jo'neill@pszjlaw.com Debtor's CANACCORD GENUITY, INC. Investment Banker: Debtor's RUST CONSULTING OMNI BANKRUPTCY Claims and Noticing Agent: Total Assets: $10.7 million Total Debts: $15.7 million The petition was signed by Thomas Bologna, chairman and chief executive officer. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Life Technologies Corporation Vendor $164,323 Abbott Molecular Inc. Vendor $115,173 The Trout Group $78,355 Affymetrix, Inc. - Active $77,296 University of Southern Landlord $60,534 California Willkie Farr & Gallagher Legal Services $45,000 XIFIN, Inc. $41,946 Los Angeles County Tax Taxing Authority $41,601 BDO USA, LLP $30,000 AST Transfer & Trust Company, LLC $19,732 Oregon Health & Science University $19,550 Hogan Lovells US LLP Legal Services $19,433 College of American Pathologists $18,793 Federal Express Vendor $14,453 Roche Diagnostics Corporation $13,137 Leica Microsystems Inc. $13,008 First Medical Recruiters $11,000 Shareholder.com $10,115 Sincerus Solutions, Inc. $10,015 Littler Mendelson, PC $7,671 RICE BUILDING: Case Summary & 2 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Rice Building LLC P.O. Box 66353 Albany, NY 12203 Case No.: 15-11654 Chapter 11 Petition Date: August 7, 2015 Court: United States Bankruptcy Court Northern District of New York (Albany) Judge: Hon. Robert E. Littlefield Jr. Debtor's Counsel: Francis J. Brennan, Esq. NOLAN & HELLER, LLP 39 North Pearl Street Albany, NY 12207 Tel: 518 449-3300 Email: fbrennan@nolanandheller.com Total Assets: $1 million Total Liabilities: $1 million The petition was signed by Mark Basco, managing member. A list of the Debtor's two largest unsecured creditors is available for free at http://bankrupt.com/misc/nynb15-11654.pdf SABINE OIL: Has Authority to Hire Prime Clerk as Claims Agent ------------------------------------------------------------- Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York authorized Sabine Oil & Gas Corporation, et al., to employ Prime Clerk LLC as claims and noticing agent. Prime Clerk will perform, among other things, the following tasks: (a) prepare and serve required notices and documents in these Chapter 11 cases in accordance with the Bankruptcy Code and the Bankruptcy Rules in the form and manner directed by the Debtors and/or the Court, including (i) notice of the commencement of these chapter 11 cases and the initial meeting of creditors under section 341(a) of the Bankruptcy Code, (ii) notice of any claims bar date, (iii) notices of transfers of claims, (iv) notices of objections to claims and objections to transfers of claims, (v) notices of any hearings on a disclosure statement or confirmation of the Debtors' plan or plans of reorganization, including under Bankruptcy Rule 3017(d), (vi) notice of the effective date of any plan, and (vii) all other notices, orders, pleadings, publications, and other documents as the Debtors or the Court may deem necessary or appropriate for an orderly administration of these chapter 11 cases; (b) maintain an official copy of the Debtors' schedules of assets and liabilities and statements of financial affairs, listing the Debtors' known creditors and the amounts owed thereto, if the requirement to file such Schedules is not waived by the Court; (c) maintain (i) a list of all potential creditors, equity holders, and other parties in interest and (ii) a "core" mailing list consisting of all parties described in Bankruptcy Rule 2002(i), (j), and (k) and those parties that have filed a notice of appearance pursuant to Bankruptcy Rule 9010; update and make said lists available upon request by a party in interest or the Clerk's Office; (d) if necessary, furnish a notice to all potential creditors of the last date for filing proofs of claim and a form for filing a proof of claim, after such notice and form are approved by the Court, and notify said potential creditors of the existence, amount, and classification of their respective claims as set forth in the Schedules, which may be effected by inclusion of such information (or the lack thereof, in cases where the Schedules indicate no debt due to the subject party) on a customized proof of claim form provided to potential creditors; (e) maintain a post office box or address for the purpose of receiving claims and returned mail, and process all mail received; (f) for all notices, motions, orders, or other pleadings or documents served, prepare and file or cause to be filed with the Clerk's Office an affidavit or certificate of service within seven business days of service which includes (i) either a copy of the notice served or the docket number(s) and title(s) of the pleading(s) served, (ii) a list of persons to whom it was mailed (in alphabetical order) with their addresses, (iii) the manner of service, and (iv) the date served; (g) process all proofs of claim received, including those received by the Clerk's Office, check said processing for accuracy, and maintain the original proofs of claim in a secure area; (h) (i) maintain the official claims register for each Debtor on behalf of the Clerk's Office; (ii) upon the Clerk's Office's request, provide the Clerk's Office with certified, duplicate unofficial Claims Registers; and (iii) specify in the Claims Registers the following information for each claim docketed: (A) the claim number assigned, (B) the date received, (C) the name and address of the claimant and agent, if applicable, who filed the claim, (D) the amount asserted, (E) the asserted classification(s) of the claim; (i) implement necessary security measures to ensure the completeness and integrity of the Claims Registers and the safekeeping of the original claims; (j) record all transfers of claims and provide any notices of such transfers as required by Bankruptcy Rule 3001(e); (k) relocate, by messenger or overnight delivery, all of the court-filed proofs of claim to the offices of Prime Clerk, not less than weekly; (l) upon completion of the docketing process for all claims received to date for each case, turn over to the Clerk's Office copies of the Claims Registers for the Clerk's Office's review; (m) monitor the Court's docket for all notices of appearance, address changes, and claims-related pleadings and orders filed and make necessary notations on and/or changes to the Claims Registers and any service or mailing lists, including to identify and eliminate duplicative names and addresses from such lists; (n) identify and correct any incomplete or incorrect addresses in any mailing or service lists; (o) assist in the dissemination of information to the public and respond to requests for administrative information regarding these chapter 11 cases as directed by the Debtors or the Court, including through the use of a case website and/or call center; (p) if these chapter 11 cases are converted to cases under chapter 7 of the Bankruptcy Code, contact the Clerk's Office within three days of notice to Prime Clerk of entry of the order converting these chapter 11 cases; (q) thirty days prior to the close of these chapter 11 cases, to the extent practicable, request that the Debtors submit to the Court a proposed order dismissing Prime Clerk as the Debtors' Claims and Noticing Agent and terminating its services in such capacity upon completion of its duties and responsibilities and upon the closing of these chapter 11 cases; (r) within seven days of notice to Prime Clerk of entry of an order closing these chapter 11 cases, provide to the Court the final version of the Claims Registers as of the date immediately before the close of these chapter 11 cases; and (s) at the close of these chapter 11 cases, box and transport all original documents, in proper format, as provided by the Clerk's Office, to (i) the Federal Archives Record Administration, located at Central Plains Region, 200 Space Center Drive, Lee's Summit, Missouri 64064 or (ii) any other location requested by the Clerk's Office. Prior to the Petition Date, the Debtors provided Prime Clerk a retainer in the amount of $50,000. Prime Clerk charges the following rates for claim and noticing services: Analyst $35 to $50 Technology Consultant $80 to $120 Consultant $95 to $145 Senior Consultant $150 to $170 Director $180 to $195 About Sabine Oil & Gas Sabine Oil & Gas Corp. is an independent energy company engaged in the acquisition, production, exploration, and development of onshore oil and natural gas properties in the U.S. The Company's current operations are principally located in the Cotton Valley Sand and Haynesville Shale in East Texas, the Eagle Ford Shale in South Texas, the Granite Wash in the Texas Panhandle, and the North Louisiana Haynesville. The Company operates, or has joint working interests in, approximately 2,100 oil and gas production sites (approximately 1,800 operating and approximately 315 non-operating) and has approximately 165 full-time employees. Sabine Oil and its affiliated entities sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 15-11835) in Manhattan on July 15, 2015. The Debtors have engaged Kirkland & Ellis LLP and Kirkland & Ellis International LLP, as counsel; Lazard Freres & Co. LLC, as investment banker, and Prime Clerk LLC as notice, claims and balloting agent. The Debtors also tapped Zolfo Cooper Management, LLC, to provide Jonathan A. Mitchell as CRO and other additional personnel. SABINE PASS: Amends Q2 Form 10-Q for Additional Disclosure ---------------------------------------------------------- Sabine Pass LNG, L.P. filed with the Securities and Exchange Commission an amendment to its quarterly report on Form 10-Q for the period ended June 30, 2015, to disclose recently provided information pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012. Pursuant to Section 13(r) of the Securities Exchange Act of 1934, as amended, if during the quarter ended June 30, 2015, the Company or any of its affiliates had engaged in certain transactions with Iran or with persons or entities designated under certain executive orders, the Company would be required to disclose information regarding those transactions in its Quarterly Report on Form 10-Q as required under Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012. During the quarter ended June 30, 2015, the Company did not engage in any transactions with Iran or with persons or entities related to Iran. Blackstone CQP Holdco LP, an affiliate of The Blackstone Group L.P., is a holder of approximately 29% of the outstanding equity interests of Cheniere Energy Partners, L.P. and has three representatives on the Board of Directors of Cheniere Partners' general partner. Accordingly, Blackstone Group may be deemed an "affiliate" of Cheniere Partners, as that term is defined in Exchange Act Rule 12b-2. Blackstone Group has included in its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015, disclosures pursuant to ITRA regarding one of its portfolio companies that may be deemed to be an affiliate of Blackstone Group. Because of the broad definition of "affiliate" in Exchange Act Rule 12b-2, this portfolio company of Blackstone Group, through Blackstone Group's ownership of Cheniere Partners, may also be deemed to be an affiliate of ours. Blackstone Group has reported that Travelport Limited has engaged in the following activities: as part of its global business in the travel industry, Travelport provides certain passenger travel related Travel Commerce Platform and Technology Services to Iran Air. Travelport also provides certain airline Technology Services to Iran Air Tours. The gross revenues and net profits attributable to those activities by Travelport during the quarter ended June 30, 2015, were reported by Travelport to be approximately $145,000 and $104,000, respectively. Blackstone Group has reported that Travelport intends to continue these business activities with Iran Air and Iran Air Tours as those activities are either exempt from applicable sanctions prohibitions or specifically licensed by the Office of Foreign Assets Control. About Sabine Pass Sabine Pass LNG, L.P. owns, develops and operates an LNG receiving and regasification terminal in western Cameron Parish, Louisiana. Based in Houston, the Company's LNG terminal includes existing infrastructure of five LNG storage tanks with 16.9 Bcfe capacity, two docks that can hold vessels up to 265,000 cubic meters, and vaporizers with capacity of 4.0 Bcf/d. As of June 30, 2015, Sabine Pass had $1.6 billion in total assets, $2.2 billion in total liabilities and a $584.7 million partners' deficit. Sabine Pass reported net income of $63.7 million on $130.7 million of total revenues for the three months ended June 30, 2015, compared to net income of $65.7 million on $131 million of total revenues for the same period during the prior year. SAGITTARIUS RESTAURANTS: S&P Affirms Then Withdraws 'B+' CCR ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its ratings on Lake Forest, Calif.-based Sagittarius Restaurants LLC including its 'B+' corporate credit rating. Subsequently, S&P withdrew all the ratings at the company's request following the repayment of the company's outstanding rated senior secured debt. The outlook at the time of the withdrawal was stable. SCIENTIFIC GAMES: Incurs $102.2-Mil. Net Loss in Second Quarter --------------------------------------------------------------- Scientific Games Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $102.2 million on $691.5 million of total revenue for the three months ended June 30, 2015, compared to a net loss of $72.4 million on $416.9 million of total revenue for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $188.6 million on $1.3 billion of total revenue compared to a net loss of $117.4 million on $805 million of total revenue for the same period during the prior year. As of June 30, 2015, the Company had $9.4 billion in total assets, $9.7 billion in total liabilities and a $260.1 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/pb40Bi About Scientific Games Scientific Games Corporation is a developer of technology-based products and services and associated content for worldwide gaming and lottery markets. The Company's portfolio includes instant and draw-based lottery games; electronic gaming machines and game content; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and social, mobile and interactive content and services. Visit http://www.scientificgames.com/ Scientific Games reported a net loss of $234 million in 2014, a net loss of $30.2 million in 2013 and a net loss of $62.6 million for 2012. * * * The TCR reported on May 21, 2014, that Moody's Investors Service downgraded Scientific Games Corporation's ("SGC") Corporate Family Rating to 'B1'. The downgrade reflects Moody's view that slower than expected growth in SGC's Gaming and Instant Products segments will cause Moody's adjusted leverage to exceed 6.0 times by the end of 2014. As reported by the TCR on Aug. 5, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating to 'B+' from 'BB-' on Scientific Games Corp. "The downgrade and CreditWatch placement follow Scientific Games' announcement that it has agreed to acquire Bally Technologies for $5.1 billion, including the refinancing of about $1.8 billion in net debt at Bally," said Standard & Poor's credit analyst Ariel Silverberg. SNOWFLAKE COMMUNITY: Files Bankruptcy Rule 2015.3 Report -------------------------------------------------------- Snowflake Community Foundation filed a report with the U.S. Bankruptcy Court for the District of Arizona, disclosing that it is the sole owner of The Apache Railway Company. Apache Railway's income statement for the year ending Dec. 31, 2014, showed a net income of $94,458 and total revenue of $1.59 million. As of Dec. 31, 2014, Apache Railway had total assets of $6.59 million; total liabilities of $372,568 and total shareholders' equity of $6.22 million. Apache Railway had $70,908 cash at the beginning of the year, and $135,570 cash at the end of the year, court filings show. Apache Railway filed the report pursuant to Bankruptcy Rule 2015.3. The report dated June 22, 2015, is available for free at http://is.gd/8KQTXO About Snowflake Community Snowflake Community Foundation, whose lone significant asset is its 100% ownership of The Apache Railway Co., sought Chapter 11 protection (Bankr. D. Ariz. Case No. 15-bk-06264) in Phoenix on May 20, 2015. The case is assigned to Judge Madeleine C. Wanslee. The Debtor tapped Rob Charles, Esq., at Lewis Roca Rothgerber LLP, in Tucson, Arizona, as counsel. SPIG INDUSTRY: Claims Bar Date Set for October 9 ------------------------------------------------ The U.S. Bankruptcy Court for the Western District of Virginia set Oct. 9, 2015, as deadline for creditors to file proofs of claim against Spig Industry LLC. The Court will hold a status conference hearing on Nov. 5, 2015, at 1:30 p.m. in the United States Bankruptcy Court located in Abingdon. Virginia. About Spig Industry Spig Industry, LLC, a Bristol, Virginia-based manufacturer of guard rails, filed a Chapter 11 bankruptcy petition (Bankr. W.D. Va. 15-70310) in Roanoke, Virginia, on March 16, 2015, with $21.0 million in assets against $11.7 million in debt. The case is assigned to Judge Paul M. Black. The Debtor tapped Robert Tayloe Copeland, Esq., at Copeland Law Firm, P.C., in Abingdon, Virginia, serves as counsel. The U.S. Trustee has named an Official Committee of Unsecured Creditors in the case. SPRINGLEAF HOLDINGS: Moody's Continues to Review 'B2' CFR --------------------------------------------------------- Moody's Investors Service continues its review for downgrade of Springleaf Holdings, Inc.'s and OneMain Financial Holdings, Inc.'s B2 corporate family ratings. The review was initiated on March 3rd, following Springleaf's announcement that it will acquire OneMain. RATINGS RATIONALE Moody's is continuing its review of Springleaf's and OneMain's B2 ratings to assess the effect of the planned acquisition on their respective credit profiles and expects to conclude the review upon the acquisition close. Springleaf does not expect the acquisition to close prior to September 10th, as per the timing agreement with the Department of Justice (DOJ), in order to provide the DOJ with sufficient time to complete its review of the acquisition from an antitrust perspective. Given that the DOJ and several Attorneys General have expressed antitrust concerns regarding two leading companies in the branch-based non-prime consumer finance sector combining, the transaction may be delayed beyond the end of the third quarter. Should the authorities object to the transaction in its current form, the DOJ may require the companies to divest certain assets, which would reduce earnings of the combined entity. Moody's review will include an assessment of the adequacy of the combined entity's tangible capital position as well as its internal capital generation capacity, given expected earnings and costs and timelines associated with its integration efforts. In the event that the DOJ requires asset divestitures, Moody's will evaluate the implications for earnings power relative to the proceeds to be collected from potential asset sales, the purchase price and the company's capitalization. In addition, Moody's is evaluating the degree to which Springleaf's post-acquisition liquidity will be adequate to cover its immediate funding and operating requirements and contingencies over the next twelve months. Moody's is also reviewing the effect of the acquisition on the relative priority of Springleaf's and OneMain's debt, given that Springleaf and OneMain will be run as two separate entities for approximately a year after the acquisition closes. On a pro-forma basis, Springleaf's balance sheet leverage, measured as Tangible Common Equity to Tangible Managed Assets, will weaken from 21% at June 30, 2015 to approximately 5% on a pro-forma basis. The diminished tangible equity buffer relative to the combined tangible assets of the two companies weakens the company's capacity to absorb unexpected losses. The company's ratings would be downgraded if Moody's concludes that the company will not be able to materially improve its capital position within the four quarters following the acquisition close. The ratings would also be downgraded if the company does not maintain sufficient liquidity to accommodate the heightened liquidity risk stemming from a large acquisition that might require additional unforeseen expenses, as well as to cover any potential contingent liabilities. Ratings could be confirmed if Moody's concludes that Springleaf is able to substantially de-lever within the four quarters following the acquisition close, and if it builds a sufficient liquidity buffer commensurate with the heightened liquidity risk stemming from a large acquisition and potentially sizeable contingent liabilities. The ratings of OneMain could be confirmed if its operating performance and capital position are maintained, and its liquidity position continues to strengthen. The principal methodology used in these ratings/analysis was Finance Company Global Rating Methodology published in March 2012. STANDARD REGISTER: Changes Corporate Name After Sale ---------------------------------------------------- The Standard Register Company, et al., requested that the U.S. Bankruptcy Court for the District of Delaware approve the change of (i) their corporate names; and case caption used in these chapter 11 cases. The changes will reflect: Old Company Name New Company Name ---------------- ---------------- The Standard Register Company SRC Liquidation Company Standard Register Holding Company SR Liquidation Holding Company Standard Register Technologies, SR Liquidation Technologies, Inc. Inc. Standard Register International, SR Liquidation Inc. International, Inc. iMedConsent, LLC iMLiquidation, LLC Standard Register of Puerto Rico SR Liquidation of Puerto Inc. Rico Inc. Standard Register Mexico Holding SR Liquidation Mexico Company Holding Company Standard Register Holding, S. SR Liquidation Holding, S. de R.L. de C.V. de R.L. de C.V. Standard Register de Mexico, SR Liquidation de Mexico, S. S. de R.L. de C.V. de R.L. de C.V. Standard Register Servicios, SR Liquidation Servicios, S. S. de R.L. de C.V. de R.L. de C.V. Standard Register Technologies SR Liquidation Technologies Canada ULC Canada ULC As reported in the Troubled Company Reporter on July 30, 2015, the Debtor said in court documents that the sale of its assets to Taylor Corp. is expected to close by July 31. The Company filed a motion with to change its corporate and business names, as required under the asset purchase agreement between Standard Register and Taylor Corp., to become SRC Liquidation Co. According to Dave Larsen at Dayton Daily News, a hearing on the name change is set for Aug. 18, 2015. Dayton Daily related that the Court extended, at the behest of the Company, the 120-day period for the Company to file a plan by an additional 90 days to Oct. 8, 2015, from the July 10, 2015. The report added that the Court extended Company's period to solicit acceptance of the plan to Dec. 7, 2015, from Sept. 8, 2015. About Standard Register Standard Register provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. The Official Committee of Unsecured Creditors tapped Lowenstein Sandler LLP as its counsel and Jefferies LLC as its exclusive investment banker. STANDARD REGISTER: Taylor Completes Acquisition of Assets --------------------------------------------------------- Taylor Corp., one of the U.S.'s largest privately held companies, on Aug. 3 disclosed that it completed its acquisition of the assets of Standard Register. The combined company has more than 12,000 employees working in more than 80 companies with operations in 32 states and nine countries. "The successful close officially turns the page for Standard Register's customers and employees and moves us into a new chapter that we believe is strengthened as a combined organization," said Deb Taylor, chief executive officer of Taylor Corp. "Moving forward together, we have an even broader range of communications services, products and technologies, and an experienced team dedicated to providing the highest quality customer service in the industry. As we integrate the two companies, we are finding even more ways to provide value to our customers." Taylor Corp. was the successful bidder for Standard Register through a bankruptcy auction held June 19, 2015. Standard Register's Chapter 11 case will conclude when all claims are settled. About Taylor Corp. Leveraging the diverse capabilities of its more than 80 companies around the world, Taylor Corporation -- http://www.taylorcorp.com -- one of the largest privately held companies in the U.S., helps millions of consumers celebrate events and milestones and enables businesses -- including more than half of the Fortune 500 -- to express their brands and differentiate themselves in the marketplace. Headquartered in North Mankato, Minn., Taylor Corp. owns world-class companies in the U.S., Canada, Mexico, the United Kingdom, France, India, China, Bulgaria and the Philippines. About Standard Register Standard Register provides market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets. The Company has operations in all U.S. states and Puerto Rico, and currently employs 3,500 full-time employees and 16 part-time employees. The Standard Register Company and 10 affiliated debtors sought Chapter 11 protection in Delaware on March 12, 2015, with plans to launch a sale process where its largest secured lender would serve as stalking horse bidder in an auction. The cases are pending before the Honorable Judge Brendan L. Shannon and are jointly administered under Case No. 15-10541. The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery & Transformation Services U.S., LLC, as restructuring advisors; and Prime Clerk LLC as claims agent. The Official Committee of Unsecured Creditors tapped Lowenstein Sandler LLP as its counsel and Jefferies LLC as its exclusive investment banker. STEREOTAXIS INC: Incurs $1.5 Million Net Loss in Second Quarter --------------------------------------------------------------- Stereotaxis, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.5 million on $9.6 million of total revenue for the three months ended June 30, 2015, compared to a net loss of $1.9 million on $8 million of total revenue for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $4.6 million on $19.2 million of total revenue compared to a net loss of $6.1 million on $16.4 million of total revenue for the same period during the prior year. As of June 30, 2015, the Company had $19.9 million in total assets, $35.8 million in total liabilities and a $15.9 million in total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/VrdEkA About Stereotaxis Based in St. Louis, Missouri, Stereotaxis, Inc., is a manufacturer and developer of a suite of navigation systems in interventional surgical procedures. The Company's Epoch Solution is used in the treatment of arrhythmias and coronary artery disease. Stereotaxis reported a net loss of $5.20 million in 2014, a net loss of $68.8 million in 2013 and a net loss of $9.23 million in 2012. Ernst & Young LLP, in St. Louis, Missouri, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred recurring operating losses and has a net capital deficiency. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SUN BANCORP: Reports $2.8 Million Net Income for Second Quarter --------------------------------------------------------------- Sun Bancorp, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income available to common shareholders of $2.8 million on $17.8 million of total interest income for the three months ended June 30, 2015, compared to a net loss available to common shareholders of $24.2 million on $23.7 million of total interest income for the same period during the prior year. For the six months ended June 30, 2015, the Company reported net income available to common shareholders of $5.6 million on $35.4 million of total interest income compared to a net loss available to common shareholders of $26.1 million on $48.4 million of total interest income for the same period a year ago. As of June 30, 2015, the Company had $2.3 billion in total assets, $2.1 billion in total liabilities and $252.9 million in total shareholders' equity. A full-text copy of the Form 10-Q is available at: http://is.gd/E6MN3l About Sun Bancorp. Inc. Sun Bancorp, Inc.is a bank holding company headquartered in Mount Laurel, New Jersey. Its primary subsidiary is Sun National Bank, a community bank serving customers throughout New Jersey. Sun National Bank -- http://www.sunnationalbank.com/-- is an Equal Housing Lender and its deposits are insured up to the legal maximum by the Federal Deposit Insurance Corporation (FDIC). On April 15, 2010, Sun National Bank entered into a written agreement with the OCC which contained requirements to develop and implement a profitability and capital plan which provides for the maintenance of adequate capital to support the Bank's risk profile in the current economic environment. Sun Bancorp reported a net loss available to common shareholders of $29.8 million in 2014, a net loss available to common shareholders of $9.94 million in 2013, and a net loss available to common shareholders of $50.49 million in 2012. TELEMANAGEMENT INC: Case Summary & 20 Top Unsecured Creditors ------------------------------------------------------------- Debtor: Telemanagement, Inc. dba bestview 5425 Peachtree Parkway Norcross, GA 30092 Case No.: 15-65140 Chapter 11 Petition Date: August 9, 2015 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Michael D. Robl, Esq. THE SPEARS & ROBL LAW FIRM, LLC Suite 250, 3754 LaVista Rd. Tucker, GA 30084 Tel: 404-373-5153 Email: mdrobl@tsrlaw.com Total Assets: $2.9 million Total Liabilities: $2.8 million The petition was signed by Thomas Van Ham, president and CEO. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ganb15-65140.pdf TERRAFORM GLOBAL: Moody's Affirms 'B1' Corp. Family Rating ---------------------------------------------------------- Moody's Investors Service affirmed the B1 Corporate Family Rating (CFR), the B1-PD Probability of Default rating (PDR) and the SGL-3 Speculative Grade Liquidity rating on TerraForm Global Operating, LLC (TGO). Moody's also affirmed the B2(LGD4) senior unsecured rating of TGO's $810 million senior unsecured notes (upsized from $800 million earlier) due in 2022. The rating outlook remains stable. The unsecured debt is rated one notch below the CFR to reflect TGO's $485 million senior secured revolving credit facility. RATINGS RATIONALE The rating affirmation incorporates the result of TGO's IPO and bond offering, which were affected by unfavorable market conditions last week. IPO proceeds were lower by $456 million and TGO had to pay a 9.75% interest rate on the bonds as opposed to 7.25% assumed earlier. The shortfall in the IPO was largely covered by the use of $248 million of cash on hand, lower project debt pay-down of $85 million, the use of shares in lieu of cash to pay $95 million to Brazilian development partner Renova for certain assets purchased as part of the initial IPO portfolio . Fees and expenses were also lower by $17 million. There is no change in the composition of projects or their cash flows, although TGO's distributable cash flow is lower in 2016 by $34 million on account of the higher interest rate. Parent Sun Edison Inc (SUNE, Not Rated) has agreed to cover debt service on the higher project-level debt, although we exclude these payments in our ratio calculations. Overall, credit metrics are somewhat weaker but not materially so, allowing us to affirm ratings. Under a P90 "no growth" scenario, TGO's consolidated Debt/EBITDA and FFO/Debt for 2016 are expected to hover around 5.1x and 10%, respectively, compared to 4.9x and 11% at the time of the initial rating. These developments highlight the capital markets sensitivity of YieldCos in general. Most YieldCos saw substantial declines in equity prices over the past month, although no one else had large transactions in the market like TGO and its affiliate TerraForm Power Operating LLC (TPO, Ba3/Positive). High dividend yields and capital costs, if they become a new reality, will make it that much more difficult for the company to achieve its growth targets. Lenders may remain relatively insulated on account of the implicit financial cushion provided by large dividend payments, but only as long as management sticks to a prudent financial policy and does not use leverage to increase dividend payments to shareholders. TGO's management has reiterated its commitment to a financial policy that targets leverage ratios of 5.0-5.5x on a consolidated Debt/EBITDA basis. The developments also further strengthen the importance of parent SUNE to TGO. Besides playing the all-important role of sponsor that drop assets into the YieldCo, SUNE also provides a variety of financial support -- (i) interest payment on the $810 million notes for five years; (ii) debt service on $78 million of project-level debt at the Orosi project in Costa Rica; (iii) purchase of 2 million Class A shares as part of the IPO for $30 million; and (iv) agreeing to defer dividends from TGO for six quarters (vs two originally) in order to add an additional $60 MM of liquidity to TGO. TGO's B1 CFR is underpinned by a diverse set of long term contracts that provide stable cash flows; have low operating risks and are comprised predominantly by wind and solar energy projects. TGO has limited structural subordination and a moderate financial policy that targets leverage level ratios of 5.0-5.5x on a consolidated Debt/EBITDA basis. TGO's cash flows draw from 42 different projects spread across 11 countries, chiefly Brazil, India and China. Liquidity TGO has a SGL-3 speculative grade liquidity rating, incorporating our expectation for adequate liquidity for the next 12 months. TGO has virtually zero cash on the balance sheet at present, as opposed to $250 million expected at the time of the initial rating. Access to $485 million revolver will be TGO's main source of liquidity. So long as the projects operate as expected, TGO should have sufficient cash flow to meet all its interest and dividend obligations, although TGO may need to rely on the revolver to manage timing mismatches, if any, in repatriations from its various markets. The need for operational liquidity at TGO is minimal and projects have their own liquidity reserves. TGO will also receive liquidity support from SUNE which will make interest payments on the unsecured bonds and interest and principal payments on the Orosi project debt besides foregoing dividends for six quarters. The SGL-3 is consistent with our expectation that any project acquisitions will require external funding. Outlook The outlook is stable reflecting the weighted average offtaker and sovereign credit quality that are both significantly stronger than TGO's CFR, low operating risks for renewable projects and expectations for stable operating performance at the various projects. What could change the rating UP TGO is expected to maintain a stable financial profile of 5.0-5.5x Debt/EBITDA as it grows. An upgrade would depend mainly upon a track record of growth backed up by reliable performance under the PPAs by counterparties. What could change the rating DOWN Moody's would lower the rating in the event that higher debt levels, poorer operating performance, currency/tax risks or pricey acquisitions pressure the financial profile. Other factors that could affect the rating include disruptive policy developments, or macroeconomic developments in emerging markets that disrupt cash flows at the projects, a decline in the quality of cash flows through shorter contracts, commodity price exposure, lower rated counterparties or risky regulatory jurisdictions. Deterioration in the credit quality of the sponsor SUNE could be another factor in a rating downgrade at TGO. The principal methodology used in these ratings was Unregulated Utilities and Unregulated Power Companies published in October 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. TRANS-LUX CORP: Amends Form S-1 Preliminary Prospectus ------------------------------------------------------ Trans-Lux Corporation filed with the Securities and Exchange Commission an amended Form S-1 registration statement relating to the distribution, at no charge, to holders of the Company's common stock non-transferable subscription rights to purchase up to [*] shares of its Series B Convertible Preferred Stock at a subscription price of $[*] per share. The Series B Preferred carries a 5.0% cumulative annual dividend on the Stated Value of $[*] per share and will be convertible into shares of the Company's common stock at an initial conversion price of $[*] per share, representing a conversion ratio of [approximately] [*] shares of common stock for each share of Series B Preferred held at the time of conversion, subject to adjustment. The subscription rights will expire if they are not exercised before 5:00 p.m., Eastern Time, on [*], 2015, the expiration date for the rights offering, unless the Company extends the rights offering period. The Company amended the Registration Statement to delay its effective date. A full-text copy of the Form S-1/A is available at: http://is.gd/JHdEYL About Trans-Lux Corporation Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a designer and manufacturer of digital signage display solutions for the financial, sports and entertainment, gaming and leasing markets. Trans-Lux Corporation incurred a net loss of $4.62 million on $24.4 million of total revenues for the year ended Dec. 31, 2014, compared with a net loss of $1.86 million on $20.9 million of total revenues for the year ended Dec. 31, 2013. BDO USA, LLP, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has suffered recurring losses from operations and has a significant working capital deficiency that raise substantial doubt about its ability to continue as a going concern. Further, the auditors said, the Company is in default of the indenture agreements governing its outstanding 9 1/2% Subordinated debentures which were due in 2012 and its 8 1/4% Limited convertible senior subordinated notes which were due in 2012 so that the trustees or holders of 25% of the outstanding Debentures and Notes have the right to demand payment immediately. Additionally, the Company has a significant amount due to their pension plan over the next 12 months. TRUMP ENTERTAINMENT: Paza Associates OK'd to Move Slot Machines --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware entered an order, at the behest of Trump Entertainment Resorts Inc., et al., i) authorizing Paza Associates to transfer title to the slot machines and licenses to Taj Mahal Associates; ii) authorizing Paza Associates and Taj Mahal Associates to enter into and perform under the assignment agreement; iii) releasing Paza Associates from any and all of its obligations under the assignment agreement. As reported in the Troubled Company Reporter on April 21, 2015, the Court extended the deadline to file slot transfer motion until April 30. The deadline may be further extended by the mutual agreement of the Debtors and IGT, without further court order. The March 12, 2015 plan confirmation order, which sets forth the negotiated resolution of the objection to confirmation filed by IGT, provides that the Debtors will file a motion with the Court for an order: (a) authorizing Debtor Trump Plaza Associates, LLC, to transfer title to certain slot machines and licenses to Debtor Trump Taj Mahal Associates, LLC; and (b) authorizing Taj Mahal Associates to assume all of Plaza Associates' obligations under a certain financing and security agreement, dated May 8, 2013, between IGT and Plaza Associates, with Plaza Associates to be released from the obligations upon Taj Mahal Associates' assumption of the obligations. The Confirmation Order further provides that the Slot Transfer Motion will be filed no later than March 27, 2015. On March 27, 2015, the Court entered an order extending the Slot Transfer Motion Filing Deadline through and including April 6, 2015. The Debtors and IGT agreed to further extend the Slot Transfer Motion Filing Deadline through and including April 30, 2015. About Trump Entertainment Resorts Trump Entertainment Resorts Inc., owner of the Atlantic City Boardwalk casinos that bear the name of Donald Trump, returned to Chapter 11 bankruptcy (Bankr. D. Del. Case No. 14-12103) on Sept. 9, 2014, with plans to shutter its casinos. TER and its affiliated debtors own and operate two casino hotels located in Atlantic City, New Jersey. TER said it will close the Trump Taj Mahal Casino Resort by Sept. 16, 2014, and, absent union concessions, the Trump Plaza Hotel and Casino by Nov. 13, 2104. The Debtors have sought an order authorizing the joint administration of their Chapter 11 cases and the consolidation thereof for procedural purposes only. Judge Kevin Gross presides over the Chapter 11 cases. The Debtors have tapped Young, Conaway, Stargatt & Taylor, LLP, as counsel; Stroock & Stroock & Lavan LLP, as co-counsel; Houlihan Lokey Capital, Inc., as financial advisor; and Prime Clerk LLC, as noticing and claims agent. TER estimated $100 million to $500 million in assets as of the bankruptcy filing. The Debtors as of Sept. 9, 2014, owe $285.6 million in principal plus accrued but unpaid interest of $6.6 million under a first lien debt issued under their 2010 bankruptcy-exit plan. The Debtors also have trade debt in the amount of $13.5 million. * * * Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware on March 12, 2015, confirmed Trump Entertainment Resorts, Inc., et al.'s Third Amended Joint Plan of Reorganization and Disclosure Statement pursuant to Section 1129 of the Bankruptcy Code. The Debtors filed on Jan. 5, 2015, the Plan and accompanying Disclosure Statement to, among other things, provide that holders of General Unsecured Claims will receive Distribution Trust Interests, which will include $1 million in cash and the proceeds, if any, of certain avoidance actions. Under the revised plan, holders of general unsecured claims are estimated to recover 0.47% to 0.43% of their total allowed claim amount. The Amended Plan also includes language reflecting the recently-approved $20 million loan from Carl Icahn. A full-text copy of the Findings of Fact is available for free at: http://bankrupt.com/misc/TRUMPENTERTAINMENT_Plan_Findings.pdf UNIVERSAL HEALTH: Trustee Has Settlement with Ad Hoc Committee -------------------------------------------------------------- Soneet R. Kapila, Chapter 11 Trustee for Universal Health Care Group, Inc., asks the United States Bankruptcy Court for the Middle District of Florida, Tampa Division, to approve a mediated settlement providing the Unofficial Ad Hoc Steering Committee an Allowed Chapter 11 Administrative Claim in the amount of $65,000 in fees and $6,075 in costs. The Trustee tells the Court that he believes the Proposed Settlement is in the best interest of the UHCG estate and its Creditors and parties in interest for the following reasons: (a) the Proposed Settlement was mediated and negotiated at arm's length; (b) the Proposed Settlement represents a significant reduction in the asserted claim; (c) the Proposed Settlement includes an accommodation for payment that will permit the Trustee to preserve funds necessary to fund post-confirmation litigation for the benefit of all Creditors; and (d) the Proposed Settlement saves the Liquidating Estate the potentially significant cost of litigating the Ad Hoc Committee's application for payment of fees due to the disputed issues of fact and law. The Trustee is represented by: Roberta A. Colton TRENAM, KEMKER, SCHARF, BARKIN, FRYE, O'NEILL & MULLIS, PA 101 E. Kennedy Blvd., Suite 2700 Tampa, FL 33602 Tel: (813) 227-7474 Email: rcolton@trenam.com About Universal Health Care Group Universal Health Care Group, Inc., owns an insurance company and three health-maintenance organizations that provide managed care services for government sponsored health care programs, focusing on Medicare and Medicaid. Universal Health was founded in 2002 by Dr. A.K. Desai and grew its operations of offering Medicare plans to more than 37,000 members to over 20 states. Universal Health filed a Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 13-01520) on Feb. 6, 2013, after Florida regulators moved to put two of the company's subsidiaries in a receivership. Universal Health Care estimated assets of up to$100 million and debt of less than $50 million in court filings in a Tampa, Florida. Harley E. Riedel, Esq., at Stichter Riedel Blain & Prosser serves as counsel to the Debtor Soneet R. Kapila has been appointed the Chapter 11 Trustee in the Debtor's case. He is represented by Roberta A. Colton, Esq., at Trenam, Kemker, Scharf, Barkin, Frye, O'Neill & Mullis, PA. Dennis S. Jennis, Esq., and Jennis & Bowen, P.L., serve as special conflicts counsel and E-Hounds, Inc., serves as a forensic imaging consultant to the Chapter 11 trustee. UTSTARCOM INC: Shah Capital Reports 28.6% Stake as of Aug. 6 ------------------------------------------------------------ Shah Capital Management, Inc. disclosed in an amended Schedule 13D filed with the Securities and Exchange Commission that as of Aug. 6, 2015, it beneficially owned 10,649,369 ordinary shares of UTStarcom Holdings Corp. which represents 28.6 percent of the shares outstanding. The following table sets forth the beneficial ownership of Ordinary Shares of the Company for each of the Reporting Persons as of Aug. 6, 2015: Shares Beneficially Percentage Name Owned of Total ---- ------------ ---------- Shah Capital Opportunity Fund 8,919,369 23.9% Himanshu H. Shah 10,649,369 28.6% Hong Liang Lu 1,090,563 2.9% Lu Charitable Remainder Trust 26,925 0.1% Lu Family Trust 16,408 0.0% The Lu Family Limited Partnership 76,333 0.2% A copy of the regulatory filing is available for free at: http://is.gd/apoYdq About UTStarcom, Inc. UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a global leader in IP-based, end-to-end networking solutions and international service and support. The Company sells its solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks. The Company's headquarters are currently in Alameda, California, with its research and design operations primarily in China. For the 12 months ended Dec. 31, 2014, the Company reported a net loss of $30.3 million on $129 million of net sales compared with a net loss of $22.7 million on $164 million of net sales during the previous year. As of Dec. 31, 2014, the Company had $279 million in total assets, $164 million in total liabilities, and $115 million in total equity. VICEROY HOMES: Canadian Court Sets Sept. 8 Claims Bar Date ----------------------------------------------------------- By orders of the Supreme Court of British Columbia on July 30, 2015, the Proposal Trustee has been authorized to conduct a claims process for the determination of any and all claims against Viceroy Homes Ltd. and Viceroy Building Solutions Ltd. Creditors having claims against the Companies must file proofs of claim before Sept. 8, 2015. Copies of a proof of claim and instructions may be obtained from the Proposal Trustee's website at http://cfcanada.fticonsulting.com/viceroy/or by sending a written request to the Proposal Trustee at: FTI Consulting Canada Inc. Pacific Centre, Suite 1502 701 West Georgia Street Vancouver, BC V7Y 1C6 Attention: Scott Gallon Tel: (604) 601-5691 Email: scott.gallon@fticonsulting.com Based in Canada, Viceroy Homes Ltd. -- http://www.viceroy.com/-- builds and designs custom built homes. WALDRON ENERGY: Receives Demand Notice From Sub. Debenture Lender ----------------------------------------------------------------- Waldron Energy Corporation on Aug. 6 disclosed that is has received a demand notice from its secured subordinated debenture lender. The Demand Notice requires the full repayment of the $6.0 million subordinated debenture plus accrued interest and fees of $0.3 million by the end of business on August 17, 2015. As a result of the Demand Notice, and in accordance with interlender and subordination agreements, the Demand Notice has resulted in a cross default on the Corporation's $7.8 million senior credit facility with the National Bank of Canada. As disclosed in the Corporation's financial statements as at and for the three months ended March 31, 2015, the maturity date of the Corporation's secured subordinated debenture was June 30, 2015. Since June 30, 2015, the Corporation has been in constant communication with its Debenture Lender and has discussed various maturity date extension scenarios. A key factor in these discussions has been a condition of the Corporation's senior lender, NBC, that interest owing to the Corporation's Debenture Lender could not be funded from existing financial resources of the Corporation. Without this payment of interest, the Debenture Lender was unwilling to grant any further extensions and served the Corporation with the Demand Notice. As previously announced on December 2, 2014, the Corporation engaged a financial advisor in order to pursue the sale of a material portion of the assets of the Corporation, either in one transaction or in a combination of transactions; a merger or other business combination; the outright sale of the Corporation; or some combination thereof. This Disposition Process resulted in a material asset sale that provided for a significant reduction in the Corporation's debt when it closed the sale of its Strachan Ricinus properties for proceeds of $12.3 million, $11.5 million of which permanently reduced the Corporation's NBC credit facility, reducing the NBC credit facility limit to $7.8 million. Subsequent to the sale of the Ricinus Strachan properties, the Corporation has been in constant negotiations with several interested parties, including entering into non-binding letters of intent, regarding both asset sales and various forms of corporate transactions. Unfortunately, the prolonged suppression of commodity prices and resulting negative impact on equity markets resulted in an inability to secure financing for these Proposed Transactions or to secure other acceptable solutions. Most recently, the Corporation had signed a non-binding letter of intent with a private company that proposed to merge with the Corporation in a recapitalization transaction in order to gain access to public markets via the Corporation's Toronto Stock Exchange listing. Unfortunately, the Corporation was unable to negotiate acceptable terms for proceeding with such transaction. About Waldron Energy Waldron -- http://www.waldronenergy.ca-- is a Calgary, Alberta-based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are currently listed on the Toronto Stock Exchange under the trading symbol "WDN." WALL STREET SYSTEMS: Moody's Raises CFR to B2, Outlook Stable ------------------------------------------------------------- Moody's Investors Service upgraded Wall Street Systems' ("WSS") Corporate Family Rating ("CFR") and Probability of Default Rating ("PDR") to B2 and B2-PD, respectively, and upgraded the Senior Secured Credit Facilities to B2. The ratings outlook is stable. This upgrade reflects WSS's continued deleveraging, which supports Moody's view that WSS is now following a financial policy more consistent with a B2 CFR. RATINGS RATIONALE "WSS's leverage has improved to about 4.2x debt to EBITDA (Moody's adjusted, trailing twelve months ended March 31, 2015), reflecting both EBITDA growth and debt repayment, with greater deleveraging expected over the next year," noted Terry Dennehy, Senior Analyst at Moody's Investors Service. The B2 CFR reflects WSS's relatively small scale as a niche provider of software and services for corporate treasury departments and financial institutions. Moreover, Moody's believes that revenue growth will be modest due to the maturity of the industry and that there will be few opportunities for further EBITDA growth given the significant cost reductions over the past several year. Further, some of the cost reductions achieved to date may prove unsustainable over the longer term. Still, WSS has a solid market position, although as a niche participant, and the company has a recurring revenue base driven by a subscription-based model and minimal client attrition (e.g., 95%+ revenue retention rate). This produces stable funds from operations (FFO) though somewhat variable cash from operations (CFO) due to working capital movements. WSS's customer base is stable, comprised of 300 global corporations, leading financial institutions, and about 30 Central Banks. Moreover, Moody's believes that WSS will maintain a conservative financial policy, and will have the capacity to quickly reduce leverage following expected periodic debt-funded equity distributions, such that debt to EBITDA (Moody's adjusted) will be maintained below 5x over time. The senior secured first lien credit facilities are rated B2, the same as the CFR, and reflects the single class of debt in the capital structure. These credit facilities are secured by substantially all assets of WSS and its subsidiaries. WSS's credit facilities also have guarantees from its U.S. operating subsidiaries, which generate nearly half of WSS's revenues and cash flow. The stable outlook reflects Moody's expectation that WSS will organically grow revenues by at least the low single digits percent over the near term and will maintain an operating margin (Moody's adjusted) in the mid to upper 30% level. Moody's expects that WSS will continue to reduce leverage through a combination of EBITDA growth and absolute debt reduction such that the ratio of debt to EBITDA (Moody's adjusted) is on course to decline to below 4x over the next 12 months. Although a rating upgrade is unlikely over the next year, the ratings could be upgraded over the longer term if WSS is growing revenues organically at least in the upper single digits percent. Furthermore, Moody's expects WSS to use free cash flow to reduce debt, refraining from equity distributions, such that we believe that the ratio of debt to EBITDA (Moody's adjusted) will be maintained below 4x. The ratings could be downgraded if FCF generation weakens, such that Moody's expects FCF to debt (Moody's adjusted) to be sustained below the mid-single digits percent. The rating could also be pressured if WSS engages in debt-funded shareholder-friendly actions, resulting in debt to EBITDA (Moody's adjusted) sustained above 6x. Upgrades: Issuer: Wall Street Systems Holdings, Inc. Probability of Default Rating, Upgraded to B2-PD from B3-PD Corporate Family Rating, Upgraded to B2 from B3 Senior Secured Bank Credit Facility, Upgraded to B2, LGD3 from B3, LGD3 Outlook Actions: Issuer: Wall Street Systems Holdings, Inc. Outlook, Remains Stable WSS, based in New York, NY, is a provider of treasury management, central banking, and foreign exchange processing software and services, owned by ION Investment Group (a TA Associates company). The principal methodology used in this rating was Global Software Industry published in October 2012. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. WAYNE COUNTY, MI: To Enter Deal with State to Fix $52M Deficit -------------------------------------------------------------- Corey Williams, writing for The Associated Press, reported that Wayne County will enter into a consent agreement with the state of Michigan in an effort to fix a $52 million structural deficit. According to the report, county commissioners voted 12-2 on August 6 to allow state Treasury officials to take an active role in the fiscal restructuring of the county, which has 1.7 million residents and Detroit as its largest city. Past deals with Detroit and other fiscally troubled Michigan communities have included the appointment of financial advisory boards, the submission of monthly reports to the Treasury Department and the creation of revenue and spending plans, the report related. * * * The Troubled Company Reporter, on June 26, 2015, reported that Moody's Investors Services has affirmed the Ba3 rating on the general obligation limited tax (GOLT) debt of Wayne County, MI. The county has a total of $654 million of long-term GOLT debt outstanding, of which $336 million is rated by Moody's. An additional $144 million of short-term GOLT delinquent tax anticipation notes (DTANs) are outstanding, with a sale for an additional $186.9 million of short-term DTANs. The TCR, on March 16, 2015, reported that Fitch Ratings has downgraded the ratings for the following Wayne County, Michigan bonds: -- $186.3 million limited tax general obligation (LTGO) bonds issued by Wayne County to 'B' from 'BB-'; -- $51.3 million building authority (stadium) refunding bonds, series 2012 (Wayne County LTGO) issued by Detroit/Wayne County Stadium Authority to 'B' from 'BB-'; -- $203.5 million building authority bonds issued by Wayne County Building Authority to 'B' from 'BB-'; -- Wayne County unlimited tax general obligation (ULTGO) (implied) to 'B' from 'BB'. On Feb. 10, 2015, the TCR reported that Moody's Investors Services has downgraded to Ba3 from Baa3 the rating on the general obligation limited tax (GOLT) debt of Wayne County, MI. The county has a total of $695 million of long-term GOLT debt outstanding, of which $336 million is rated by Moody's. An additional $302 million of short-term GOLT delinquent tax anticipation notes are outstanding. The outlook remains negative. The TCR, on Feb. 9, 2015, also reported that Fitch Ratings has placed the following Wayne County ratings on Rating Watch Negative: -- $190.9 million limited tax general obligation (LTGO) bonds issued by Wayne County 'BB-'; -- $54.9 million building authority (stadium) refunding bonds, series 2012 (Wayne County LTGO) issued by Detroit/Wayne County Stadium Authority 'BB-'; -- $207.2 million building authority bonds issued by Wayne County Building Authority 'BB-'; -- Wayne County unlimited tax general obligation (ULTGO) (implied) 'BB'. WESTMORELAND RESOURCE: Amends Agreement of Limited Partnership -------------------------------------------------------------- Westmoreland Resource Partners, LP, entered into Amendment No. 1 to its Fourth Amended and Restated Agreement of Limited Partnership. The LPA Amendment establishes the terms of the Partnership's previously disclosed Series A Convertible Units any additional Series A Convertible Units that may be issued in kind as a distribution. A copy of the Amended and Restated Agreement of Limited Partnership of Westmoreland Resource Partners, LP, dated Aug. 1, 2015, is available for free at http://is.gd/s4DSce About Westmoreland Resource Oxford Resource Partners, LP, now known as Westmoreland Resource Partners, LP, is a producer of high value steam coal, and is the largest producer of surface mined coal in Ohio. Westmoreland Resource reported a net loss of $28.6 million on $322 million of total revenues for the year ended Dec. 31, 2014, compared with a net loss of $23.7 million on $347 million of total revenues for the year ended Dec. 31, 2013. As of June 30, 2015, Westmoreland Resource had $289.9 million in total assets, $234.7 million in total liabilities and $55.2 million in total partners' capital. WHISKEY ONE: Files Schedules of Assets and Liabilities ------------------------------------------------------ Whiskey One Eight, LLC, filed with the U.S. Bankruptcy Court for the District of Maryland its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------------ ----------- A. Real Property $14,008,500 B. Personal Property $4,000,100 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $4,915,024 E. Creditors Holding Unsecured Priority Claims $116,757 F. Creditors Holding Unsecured Non-priority Claims $68,275 ----------- ----------- TOTAL $18,008,600 $5,100,057 A full-text copy of the Debtor's schedules is available for free at http://is.gd/oQAe7Q About Whiskey One Eight Whiskey One Eight, LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Md. Case No. 15-19885) on July 15, 2015. Andrew Zois signed the petition as managing member. The Debtor estimated assets of $10 million to $50 million and liabilities of at least $1 million. Lawrence Joseph Yumkas, Esq., at Yumkas, Vedmar & Sweeney, LLC as the Debtor's counsel. Judge David E. Rice presides over the case. WHITTEN FOUNDATION: Gov't Units Must File Claims By Sept. 28 ------------------------------------------------------------ The Hon. Robert Summerhays of the U.S. Bankruptcy Court for the Western District of Louisiana set Sept. 28, 2015, as deadline for all governmental units to file proofs of claim against Whitten Foundation. The deadline for creditors to file proofs of claim expired on July 31, 2015. About Whitten Foundation Whitten Foundation owns and operates two apartment complexes located in the State of Louisiana. Whitten Foundation sought Chapter 11 bankruptcy protection (Bankr. W.D. La. Case No. 15-20237) in Lake Charles, Louisiana, on March 31, 2015. The Debtor estimated $10 million to $50 million in assets and debt. Judge Robert Summerhays presides over the case. The Debtor has tapped Gerald J. Casey, Esq., in Lake Charles, Louisiana, as its counsel. The U.S. trustee overseeing Whitten Foundation's Chapter 11 case said it wasn't able to form a committee of unsecured creditors due to insufficient number of creditors willing to serve on the committee. WINDSTREAM SERVICES: Moody's Lowers Corporate Family Rating to B1 ----------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating (CFR) of Windstream Services, LLC to B1 from Ba3 and probability of default rating (PDR) to B1-PD from Ba3-PD. As part of the rating action, Moody's has also downgraded the ratings on Windstream's senior secured credit facilities to Ba3 (LGD3) from Ba2 (LGD3) and its senior unsecured notes to B2 (LGD4) from B1 (LGD4). The downgrades are the result of Windstream's capital allocation policy, which includes a recently announced $75 million share repurchase authorization. Although the amount of share repurchase is relatively modest, it represents a departure from Moody's expectation that Windstream would exhibit discipline towards its stated goal of debt repayment. In addition, the company's weak operating performance and free cash flow profile imply an ongoing inability to reduce leverage. The outlook is stable. Issuer: Windstream Services, LLC Downgrades: Corporate Family Rating, Downgraded to B1 from Ba3 Probability of Default Rating, Downgraded to B1-PD from Ba3-PD Senior Secured Bank Credit Facilities, Downgraded to Ba3 (LGD3) from Ba2 (LGD3) Senior Unsecured Regular Bond/Debentures, Downgraded to B2 (LGD4) from B1 (LGD4) Affirmation: Speculative Grade Liquidity Rating, Affirmed SGL-2 RATINGS RATIONALE The downgrade to B1 reflects Moody's view that Windstream is unlikely to reduce leverage below the ratings trigger in the near term. Following the REIT spin, Moody's had expected Windstream to implement a disciplined capital allocation framework that featured higher capital investment and debt reduction using the improved, post-spin cash flow profile. The share repurchase announcement undermines this view and implies a lack of commitment to a stronger balance sheet. Concurrent with the share repurchase announcement, Windstream has articulated a flexible approach to allocating discretionary capital (i.e. beyond maintenance capex) between shareholder returns and reinvestment. Moody's views this approach as short sighted and likely to further erode the long term value of the business. For 2015, Windstream has guided to capital spending equal to 15% of revenues, in line with the industry average of 15%. Should more capital be allocated away from reinvestment to shareholder returns the rating would face further pressure. Proceeds from the recent CAF-2 opportunity will help sustain investment levels, although the associated build out requirements will drive new projects as well. Moody's projects Windstream's leverage to approach 5x (Moody's adjusted, including the CS&L lease capitalized at 5x rent) at year end 2015, with the potential to fall upon the monetization of Windstream's remaining stake in CS&L. The timing and value of this transaction remain unclear, but Moody's expects the debt repayment from the CS&L proceeds to return leverage below the 4.75x downtrigger for the new B1 rating. Moody's views Windstream as having good liquidity, supported by $50 million of cash as of June 30, 2015 and approximately $750 million available on its $1.25 billion revolver. Moody's expects Windstream to generate approximately breakeven free cash flow in 2015. The relative stability of the company's cash flow generation and good visibility into capital expenditures eliminates the risk of unforeseen liquidity needs. The company's ability to borrow under the revolving facility is subject to leverage and interest coverage covenants. Moody's expects Windstream to have ample amount of cushion under both of its financial covenants. The ratings for the debt instruments comprise both the overall probability of default of Windstream, to which Moody's maintains a PDR of B1-PD, the average family loss given default assessment and the composition of the debt instruments in the capital structure. Moody's rates the senior secured debt including the $1.25 billion revolver and approximately $600 million of term loans at Ba3, LGD3. Windstream's secured debt benefits from a collateral package that includes a pledge of assets and upstream guarantees from subsidiaries representing approximately 20% of total company cash flow. Also, the secured debt benefits from a pledge of the equity interest in certain non-guarantor subsidiaries. The ratings recognize that regulatory restrictions may that limit the collateral pledge for certain non-guarantor subsidiaries. In addition the ratings on the secured debt reflect the change in collateral value following the contribution of Windstream's outside plant assets to the REIT entity. For this reason, the ratings gap between the secured debt and the CFR is limited despite the relatively small amount of secured debt in the total capital structure. Windstream's senior unsecured notes are rated B2, LGD4, reflecting their junior position in the capital structure. The stable outlook reflects Moody's view that Windstream will maintain approximately flat EBITDA and stable cash flows over the next few years. Moody's could raise Windstream's ratings if leverage were to be sustained below 4.25x (Moody's adjusted) and free cash flow to debt were in the mid-single digits percentage range. Moody's could lower the ratings further if leverage were to be sustained above 4.75x (Moody's adjusted) or free cash flow is negative, on a sustained basis. Additionally, the ratings would face downward pressure if capital investment is reduced below the level sufficient to improve the company's competitive position or cost structure. The principal methodology used in these ratings was Global Telecommunications Industry published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Windstream Corporation, Inc. is a telecommunications and IT services provider headquartered in Little Rock, AR. The company was formed by a merger of Alltel Corporation's wireline operations and Valor Communications Group in July 2006. Windstream has continued to grow through acquisitions and, following the acquisition of PAETEC Holding Corp. in 2011, Windstream provides services in 48 states. WPCS INTERNATIONAL: Sells 134,600 Common Shares ----------------------------------------------- WPCS International Incorporated issued 134,600 shares of its common stock, par value $0.0001 per share, from July 25, 2015, through Aug. 7 ,2015. The issuances on Aug. 3, 2015, resulted in an increase in the number of shares of Common Stock outstanding by more than 5% compared to the number of shares of Common Stock reported outstanding in the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on July 24, 2015. The Company has issued a total of 1,676,232 shares of Common Stock to holders of its Series F, F-1, G, G-1 and Series H Convertible Preferred Stock upon the conversion of shares of Series F, F-1,G, G-1 and Series H Convertible Preferred Stock. The shares of Common Stock issued upon the conversion of shares of Series F, F-1, G, G-1 and Series H Convertible Preferred Stock were issued in reliance upon the exemption from registration in Section 3(a)(9) of the Securities Act of 1933. As of Aug. 7, 2015, the Company has 2,308,649 shares of Common Stock outstanding. About WPCS International Incorporated WPCS -- http://www.wpcs.com/-- operates in two business segments including: (1) providing communications infrastructure contracting services to the public services, healthcare, energy and corporate enterprise markets worldwide; and (2) developing a Bitcoin trading platform. WPCS reported a net loss attributable to the Company's common shareholders of $11.3 million on $24.4 million of revenue for the year ended April 30, 2015, compared with a net loss attributable to the Company's common shareholders of $11.2 million on $15.7 million of revenue for the year ended April 30, 2014. As of April 30, 2015, the Company had $15.1 million in total assets, $15.3 million in total liabilities and a $139,064 total deficit. YRC WORLDWIDE: Marc Lasry Reports 17.9% Stake as of Aug. 6 ---------------------------------------------------------- Marc Lasry, managing member of Avenue Partners, LLC, disclosed in an amended schedule 13D filed with the Securities and Exchange Commission that as of Aug. 6, 2015, he beneficially owned 5,873,125 shares of common stock of YRC Worldwide which represents 17.9 percent of the shares outstanding. On Aug. 6, 2015, Avenue Investments, Avenue International, MAP-10, Avenue PPF Opportunities and Avenue EnTrust SPC (the "Selling Avenue Funds") and UBS Securities LLC ("Buyer") entered into a secondary block trade agreement, pursuant to which the Selling Avenue Funds sold an aggregate of 1,400,000 shares of Common Stock to Buyer for $19.71 per share. The sale is expected to close on or about Aug. 11, 2015. The Selling Avenue Funds agreed not to offer, issue, sell or otherwise dispose of, without the prior written consent of the Buyer, any other shares of the Issuer or securities convertible or exchangeable or carrying rights to acquire shares for a period of 30 days following the Closing Date. A copy of the regulatory filing is available for free at: http://is.gd/EFFQtZ About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. YRC Worldwide reported a net loss attributable to common shareholders of $85.8 million in 2014, a net loss attributable to common shareholders of $83.6 million in 2013 and a net loss attributable to common shareholders of $140.4 million in 2012. As of June 30, 2015, the Company had $1.9 billion in total assets, $2.4 billion in total liabilities and a $445.2 million total shareholders' deficit. * * * As reported by the TCR on Feb. 18, 2014, Moody's Investors Service had upgraded the Corporate Family Rating for YRC Worldwide Inc. ("YRCW") from Caa3 to B3, following the successful closing of its refinancing transactions. In the Jan. 31, 2014, edition of the TCR, Standard & Poor's Ratings Services said that it raised its ratings on Overland Park, Kansas-based less-than-truckload (LTL) trucker YRC Worldwide Inc. (YRCW), including the corporate credit rating to 'CCC+' from 'CCC', and removed them from CreditWatch negative, where they were placed on Jan. 10, 2014. "The upgrades reflect YRCW's improved liquidity position and minimal debt maturities as a result of its proposed refinancing," said Standard & Poor's credit analyst Anita Ogbara. YRC WORLDWIDE: S&P Raises CCR to 'B-' on Strengthening Conditions ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it has raised its corporate credit rating on Overland, Kan.-based less-than-truckload (LTL) trucking company YRC Worldwide Inc. to 'B-' from 'CCC+'. The outlook is stable. At the same time, S&P raised its issue-level rating on the company's $700 million secured term loan B due 2019 to 'B-' from 'CCC+'. The '3' recovery rating remains unchanged, indicating S&P's expectation for meaningful (50%-70%; lower half of range) recovery in the event of a payment default. "The upgrade reflects YRC's earnings growth and improved liquidity position, along with our belief that gradual improvement in the company's operating performance will result in credit measures that are commensurate with the rating," said Standard & Poor's credit analyst Michael Durand. YRC began prioritizing yield and freight mix over tonnage growth in the second quarter of 2014, after it extended its labor contract with the International Brotherhood of Teamsters. Since then, the company has delivered relatively steady profitability improvements and cash generation. YRC has increased its capital expenditures to upgrade its fleet and operating technology, which contributed to the company's improved operating efficiency. As a result, S&P has revised its assessment of the company's business risk profile to "weak" from "vulnerable". Additionally, S&P now views the company's management and governance as "fair", based on the company's improved performance, which has remained in-line with management's operating and financial goals. The stable outlook reflects S&P's belief that YRC will continue to benefit from gradually improving market conditions and favorable pricing. S&P believes that the company's credit measures will remain in line with S&P's expectations for the current rating. S&P could lower its ratings on YRC in the next year if the company faces liquidity pressures, or S&P come to believe, based on its earnings prospects and debt burden, that the company's capital structure is unsustainable over the long-term. Due to the company's highly leveraged financial risk profile, including its substantial multiemployer pension plan contingent liability, S&P views it as unlikely that it would raise the rating over the next 12 months. ZLOOP INC: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- ZLOOP, Inc. 15-11660 fka ZLOOP, LLC fka EZ Computer Recycling, LLC 816 13th Street NE Hickory, NC 28601 Zloop Nevada, LLC 15-11661 Zloop Knitting Mill LLC 15-11662 Type of Business: The Debtors operate a proprietary, state of the art, 100% landfill free eWaste recycling company headquartered in Hickory, North Carolina. Chapter 11 Petition Date: August 9, 2015 Court: United States Bankruptcy Court District of Delaware (Delaware) Debtors' Counsel: Daniel N. Brogan, Esq. DLA PIPER LLP 1201 N. Market Street, Suite 2100 Wilmington, DE 19801 Tel: 302.468.5648 Fax: 302.394.2341 Email: Daniel.Brogan@dlapiper.com - and - Stuart M. Brown, Esq. DLA Piper LLP (US) 1201 North Market Street, Suite 2100 Wilmington, DE 19801 Tel: 302-468-5640 Fax: 302-778-7913 Email: stuart.brown@dlapiper.com Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The petition was signed by Robert M. Boson, CEO. Consolidated List of Debtors' 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kendall Mosing Unsecured Line $14,000,000 James H. Gibson of Credit c/o Allen & Gooch 2000 Kaliste Saloom Road Suite 400 Lafayette, LA 70508 Kendall Mosing & Unsecured $10,189,179 ZLOOP LA, LLC Franchise James H. Gibson Recession c/o Allen & Gooch 2000 Kaliste Saloom Road Suite 400 Lafayette, LA 70508 Parker Poe Adams & Trade Debt $365,031 Bernstein LLP Doug Harmon, Partner 401 South Tryon Street Suite 300 Charlotte, NC 28202 ERS, LLC Contract $312,460 James Cunningham 5010 MacDougall Drive SW Atlanta, GA 30336 Recycling Equipment Inc. Trade Debt $234,107 Bristol Motor Speedway Contract $131,250 Panthers Stadium Contract $87,000 Layon County Treasurer Taxes $84,262 Kentucky Speedway Contract $75,000 Shumis Conrete Inc. Trade Debt $73,556 McGuireWoods LLP Trade Debt $56,910 Hickory Commercial, LLP Trade Debt $55,003 Phelps Dunbar, LLP Trade Debt $37,278 Pocono Speedway Trade Debt $36,601 Watson Insurance Insurance $28,995 Contracts Catawba County Tax Collector Real Property $21,613 Taxes American Fire & Equipment Trade Debt $14,243 Dickinson Hauling & Grading Trade Debt $13,688 Liberty Mutual Insurance Insurance $9,038 (Worker Comp Policy) Contracts Perry Johnson Registrars, Inc. Trade Debt $6,755 [*] Heyer-Bednar to Lead Roetzel's Business Litigation Practice --------------------------------------------------------------- Roetzel & Andress LPA on Aug. 5 named Fort Lauderdale attorney Lori L. Heyer-Bednar to lead the firm's Business Litigation Practice Group. Ms. Heyer-Bednar is the first woman in Roetzel's history to manage the firm's largest practice group. "We all know Lori as the confident and energetic leader of the firm's Fort Lauderdale office, a position she will continue to hold simultaneously with that of Business Litigation Practice Group Manager," said Robert E. Blackham, Partner-in-Charge, Cleveland Office and National Practice Group Chair. "I am more than confident that Lori will bring that same energy to her new and expanded role, and that the group will prosper under her leadership." Roetzel's Business Litigation group is the firm's largest practice area team, with 40 attorneys based across the firm's 13 offices located throughout Ohio and Florida, and in Chicago, New York and Washington, D.C. The group's attorneys serve a wide range of clients, from national and international corporations and closely held and family-run businesses, to institutions, organizations and individuals. The litigation group possesses substantial litigation, arbitration, and mediation experience across a number of practice areas, including "Bet-the-Company," Business & Commercial, Liability Defense, Toxic Tort, Transportation, Labor & Employment and Environmental. Ms. Heyer-Bednar handles commercial landlord-tenant litigation, creditors' bankruptcy litigation in adversary proceedings, construction litigation (lien foreclosure and construction defect cases), and business litigation (including shareholder dispute litigation). Having chaired dozens of jury and bench trials in recent years, she has extensive experience in various aspects of complex commercial litigation. In addition, Ms. Heyer-Bednar focuses a large portion of her practice on banking, commercial lending, real estate finance, commercial litigation, creditors' rights, business litigation and bankruptcy, with an emphasis on lender liability and asset-based lending matters. Her practice also involves loan workouts and loan restructuring, loan financing and title services. She represents numerous banks and financial institutions in both state and federal courts at both the trial and appellate court level. As part of her experience in lender liability, she has represented large financial institutions in defense of forgery and negligence claims based on negotiable instruments under the Uniform Commercial Code (UCC). As part of her banking experience, Ms. Heyer-Bednar has represented the Federal Deposit Insurance Corporation (FDIC) and the Resolution Trust Corporation (RTC) in connection with failed banking institutions and savings and loan associations, including fidelity bond claims, director and officer liability lawsuits, lease repudiation lawsuits and defensive matters based upon Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). Ms. Heyer-Bednar is a Florida native, born in Coral Gables. Prior to joining Roetzel, she was an equity shareholder for 16 years at Haley, Sinagra & Perez, a commercial litigation and transactional firm. Ms. Heyer-Bednar has served as Partner-in-Charge of Roetzel's Fort Lauderdale office since 2010. Ms. Heyer-Bednar earned her J.D., with honors, from the University of Miami School of Law and her B.S., with honors, from Florida State University. In 2015 she was recognized in the South Florida Legal Guide as a "Top Lawyer" in Creditors' Rights and Bankruptcy. About Roetzel Roetzel -- http://www.ralaw.com-- is a full-service law firm with nearly 180 attorneys in offices located throughout Ohio and Florida and in Chicago, New York and Washington, D.C. The firm provides comprehensive legal services to national and international corporations, closely held and family-run businesses, institutions, organizations and individuals. [^] Large Companies With Insolvent Balance Sheet ------------------------------------------------ Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE OU1 GR 111.9 (5.5) (0.6) ABSOLUTE SOFTWRE ALSWF US 111.9 (5.5) (0.6) ABSOLUTE SOFTWRE ABT CN 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 GCY TH 1,898.1 (95.6) 143.6 AEROJET ROCKETDY AJRD US 1,898.1 (95.6) 143.6 AIR CANADA AC CN 11,581.0 (1,213.0) (95.0) AIR CANADA ACDVF US 11,581.0 (1,213.0) (95.0) AIR CANADA ADH2 TH 11,581.0 (1,213.0) (95.0) AIR CANADA ADH2 GR 11,581.0 (1,213.0) (95.0) AIR CANADA ACEUR EU 11,581.0 (1,213.0) (95.0) AK STEEL HLDG AKS* MM 4,335.4 (463.0) 863.4 AK STEEL HLDG AK2 TH 4,335.4 (463.0) 863.4 AK STEEL HLDG AKS US 4,335.4 (463.0) 863.4 ALLIANCE HEALTHC AIQ US 566.4 (89.6) 50.1 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 RKDA US 19.4 (7.3) 0.3 ARCADIA BIOSCIEN 17D GR 19.4 (7.3) 0.3 ARIAD PHARM ARIAEUR EU 543.0 (13.8) 274.0 ARIAD PHARM ARIACHF EU 543.0 (13.8) 274.0 ARIAD PHARM APS GR 543.0 (13.8) 274.0 ARIAD PHARM ARIA SW 543.0 (13.8) 274.0 ARIAD PHARM ARIA US 543.0 (13.8) 274.0 ARIAD PHARM APS TH 543.0 (13.8) 274.0 ASPEN TECHNOLOGY AST GR 317.1 (26.8) (17.4) ASPEN TECHNOLOGY AZPN US 317.1 (26.8) (17.4) AUTOZONE INC AZO US 8,032.4 (1,643.2) (742.6) AUTOZONE INC AZ5 TH 8,032.4 (1,643.2) (742.6) AUTOZONE INC AZ5 GR 8,032.4 (1,643.2) (742.6) AUTOZONE INC AZOEUR EU 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) AVINTIV SPECIALT POLGA US 1,901.8 (12.6) 315.2 BARRACUDA NETWOR CUDA US 400.4 (31.3) 36.9 BARRACUDA NETWOR CUDAEUR EU 400.4 (31.3) 36.9 BARRACUDA NETWOR 7BM GR 400.4 (31.3) 36.9 BERRY PLASTICS G BP0 GR 5,011.0 (74.0) 634.0 BERRY PLASTICS G BERY US 5,011.0 (74.0) 634.0 BLUE BUFFALO PET B6B GR 423.0 (56.8) 235.4 BLUE BUFFALO PET BUFF US 423.0 (56.8) 235.4 BLUE BUFFALO PET B6B TH 423.0 (56.8) 235.4 BRINKER INTL BKJ GR 1,435.9 (78.5) (228.8) BRINKER INTL EAT US 1,435.9 (78.5) (228.8) BURLINGTON STORE BUI GR 2,683.1 (30.4) 161.9 BURLINGTON STORE BURL US 2,683.1 (30.4) 161.9 CABLEVISION SY-A CVCEUR EU 6,712.1 (4,951.2) 61.0 CABLEVISION SY-A CVC US 6,712.1 (4,951.2) 61.0 CABLEVISION SY-A CVY TH 6,712.1 (4,951.2) 61.0 CABLEVISION SY-A CVY GR 6,712.1 (4,951.2) 61.0 CABLEVISION-W/I CVC-W US 6,712.1 (4,951.2) 61.0 CABLEVISION-W/I 8441293Q US 6,712.1 (4,951.2) 61.0 CAMBIUM LEARNING ABCD US 154.9 (77.3) (19.9) CARBYLAN THERAPE CBYL US 7.7 (9.4) (6.7) CASELLA WASTE WA3 GR 657.5 (18.9) (1.2) CASELLA WASTE CWST US 657.5 (18.9) (1.2) CEDAR FAIR LP FUN US 2,076.3 (3.5) (89.1) CEDAR FAIR LP 7CF GR 2,076.3 (3.5) (89.1) CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CHARTER COM-A CHTR US 17,319.0 (31.0) (1,180.0) CHARTER COM-A CKZA GR 17,319.0 (31.0) (1,180.0) CHARTER COM-A CKZA TH 17,319.0 (31.0) (1,180.0) CHOICE HOTELS CHH US 702.6 (385.5) 195.9 CHOICE HOTELS CZH GR 702.6 (385.5) 195.9 CINCINNATI BELL CBB US 1,509.6 (403.5) (0.2) CINCINNATI BELL CIB GR 1,509.6 (403.5) (0.2) CLEAR CHANNEL-A CCO US 6,188.4 (263.3) 386.6 CLEAR CHANNEL-A C7C GR 6,188.4 (263.3) 386.6 CLIFFS NATURAL R CLF* MM 2,609.4 (1,740.2) 623.8 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 CORIUM INTERNATI CORI US 59.3 (5.4) 31.2 CORIUM INTERNATI 6CU GR 59.3 (5.4) 31.2 CYAN INC YCN GR 112.1 (18.4) 56.9 CYAN INC CYNI US 112.1 (18.4) 56.9 DELEK LOGISTICS DKL US 352.0 (15.8) 5.5 DELEK LOGISTICS D6L GR 352.0 (15.8) 5.5 DIRECTV DTV US 25,321.0 (3,463.0) 1,360.0 DIRECTV DIG1 GR 25,321.0 (3,463.0) 1,360.0 DIRECTV DTV CI 25,321.0 (3,463.0) 1,360.0 DIRECTV DTVEUR EU 25,321.0 (3,463.0) 1,360.0 DOMINO'S PIZZA EZV TH 597.9 (1,245.7) 135.3 DOMINO'S PIZZA EZV GR 597.9 (1,245.7) 135.3 DOMINO'S PIZZA DPZ US 597.9 (1,245.7) 135.3 DUN & BRADSTREET DNB1EUR EU 2,092.7 (1,217.9) (412.7) DUN & BRADSTREET DB5 GR 2,092.7 (1,217.9) (412.7) DUN & BRADSTREET DNB US 2,092.7 (1,217.9) (412.7) DUN & BRADSTREET DB5 TH 2,092.7 (1,217.9) (412.7) DUNKIN' BRANDS G 2DB GR 3,358.7 (87.9) 269.5 DUNKIN' BRANDS G 2DB TH 3,358.7 (87.9) 269.5 DUNKIN' BRANDS G DNKN US 3,358.7 (87.9) 269.5 DURATA THERAPEUT DRTXEUR EU 82.1 (16.1) 11.7 DURATA THERAPEUT DTA GR 82.1 (16.1) 11.7 DURATA THERAPEUT DRTX US 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 GR 282.9 (146.8) 66.4 EXELIXIS INC EX9 TH 282.9 (146.8) 66.4 EXELIXIS INC EXELEUR EU 282.9 (146.8) 66.4 EXELIXIS INC EXEL US 282.9 (146.8) 66.4 FENIX PARTS INC FENX US 0.9 (1.9) (1.9) FENIX PARTS INC 9FP GR 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 FSLEUR EU 3,165.0 (3,173.0) 1,257.0 FREESCALE SEMICO 1FS TH 3,165.0 (3,173.0) 1,257.0 FREESCALE SEMICO 1FS GR 3,165.0 (3,173.0) 1,257.0 FREESCALE SEMICO FSL US 3,165.0 (3,173.0) 1,257.0 GAMING AND LEISU GLPI US 2,516.0 (135.8) 5.9 GAMING AND LEISU 2GL GR 2,516.0 (135.8) 5.9 GARDA WRLD -CL A GW CN 1,401.9 (325.2) 39.5 GARTNER INC IT US 1,861.0 (170.2) (138.5) GARTNER INC GGRA GR 1,861.0 (170.2) (138.5) GENESIS HEALTHCA SH11 GR 6,103.4 (244.5) 228.5 GENESIS HEALTHCA GEN US 6,103.4 (244.5) 228.5 GENTIVA HEALTH GTIV US 1,225.2 (285.2) 130.0 GENTIVA HEALTH GHT GR 1,225.2 (285.2) 130.0 GLAUKOS CORP 6GJ GR 28.3 (4.4) (4.9) GLAUKOS CORP GKOS US 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) 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 31,710.0 (5,955.0) 2,983.0 HCA HOLDINGS INC HCA US 31,710.0 (5,955.0) 2,983.0 HCA HOLDINGS INC 2BH TH 31,710.0 (5,955.0) 2,983.0 HCA HOLDINGS INC 2BH GR 31,710.0 (5,955.0) 2,983.0 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 2,415.1 (196.4) 363.2 HERBALIFE LTD HLFEUR EU 2,415.1 (196.4) 363.2 HERBALIFE LTD HOO GR 2,415.1 (196.4) 363.2 HERBALIFE LTD HOO QT 2,415.1 (196.4) 363.2 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 13,626.9 (10,240.8) 816.5 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 LB* MM 6,638.0 (606.0) 927.0 L BRANDS INC LTD QT 6,638.0 (606.0) 927.0 L BRANDS INC LTD GR 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 LB US 6,638.0 (606.0) 927.0 LANTHEUS HOLDING 0L8 GR 248.7 (240.5) 37.4 LANTHEUS HOLDING LNTH US 248.7 (240.5) 37.4 LEAP WIRELESS LEAP US 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI TH 4,662.9 (125.1) 346.9 LEAP WIRELESS LWI GR 4,662.9 (125.1) 346.9 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) 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4,999.5 (103.4) 1,939.2 MOODY'S CORP DUT QT 4,999.5 (103.4) 1,939.2 MOODY'S CORP MCOEUR EU 4,999.5 (103.4) 1,939.2 MOODY'S CORP DUT GR 4,999.5 (103.4) 1,939.2 MORGANS HOTEL GR M1U GR 532.4 (246.2) 31.0 MORGANS HOTEL GR MHGC US 532.4 (246.2) 31.0 MPG OFFICE TRUST 1052394D US 1,280.0 (437.3) - NATIONAL CINEMED XWM GR 1,010.5 (221.6) 63.5 NATIONAL CINEMED NCMI US 1,010.5 (221.6) 63.5 NAVISTAR INTL NAV US 6,925.0 (4,744.0) 770.0 NAVISTAR INTL IHR GR 6,925.0 (4,744.0) 770.0 NAVISTAR INTL IHR TH 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 NWBO US 49.4 (70.7) (86.3) NORTHWEST BIO NBYA GR 49.4 (70.7) (86.3) NTELOS HOLDINGS NTLS US 700.2 (14.3) 185.6 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 PMI SW 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 PM1CHF EU 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 PM1 TE 32,713.0 (11,798.0) (1,614.0) PHILIP MORRIS IN PM1EUR EU 32,713.0 (11,798.0) (1,614.0) PLANET FITNESS-A PLNT US 710.3 (44.5) (10.2) 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 QTS GR 3,341.8 (701.7) 866.0 QUINTILES TRANSN Q US 3,341.8 (701.7) 866.0 RAPID7 INC R7S GR 79.4 (42.0) (14.6) RAPID7 INC RPD US 79.4 (42.0) (14.6) RAYONIER ADV RYQ GR 1,261.0 (51.0) 189.0 RAYONIER ADV RYAM US 1,261.0 (51.0) 189.0 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 RETA GR 2,484.4 (911.5) (118.6) REGAL ENTERTAI-A RGC* MM 2,484.4 (911.5) (118.6) REGAL ENTERTAI-A RGC US 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 RVL1 GR 1,926.6 (629.2) 322.1 REVLON INC-A REV US 1,926.6 (629.2) 322.1 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 2,189.6 (190.2) 819.6 SALLY BEAUTY HOL SBH US 2,189.6 (190.2) 819.6 SBA COMM CORP-A SBAC US 7,751.9 (1,133.2) 30.4 SBA COMM CORP-A SBJ QT 7,751.9 (1,133.2) 30.4 SBA COMM CORP-A SBJ TH 7,751.9 (1,133.2) 30.4 SBA COMM CORP-A SBACEUR EU 7,751.9 (1,133.2) 30.4 SBA COMM CORP-A SBJ GR 7,751.9 (1,133.2) 30.4 SCIENTIFIC GAM-A TJW GR 9,486.5 (260.1) 741.2 SCIENTIFIC GAM-A SGMS US 9,486.5 (260.1) 741.2 SEARS HOLDINGS SEE GR 13,290.0 (1,182.0) 24.0 SEARS HOLDINGS SHLD US 13,290.0 (1,182.0) 24.0 SEARS HOLDINGS SEE TH 13,290.0 (1,182.0) 24.0 SECTOR 5 INC SECT US - (0.0) (0.0) SILVER SPRING NE 9SI TH 517.9 (104.9) (38.1) SILVER SPRING NE 9SI GR 517.9 (104.9) (38.1) SILVER SPRING NE SSNI US 517.9 (104.9) (38.1) SIRIUS XM CANADA SIICF US 297.1 (132.8) (177.9) SIRIUS XM CANADA XSR CN 297.1 (132.8) (177.9) SPIN MASTER -SVC TOY CN 280.5 (52.3) (156.7) 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 SVU US 4,491.0 (561.0) (77.0) SUPERVALU INC SJ1 GR 4,491.0 (561.0) (77.0) SUPERVALU INC SJ1 TH 4,491.0 (561.0) (77.0) SYNERGY PHARMACE S90 GR 194.8 (24.7) 163.1 SYNERGY PHARMACE SGYP US 194.8 (24.7) 163.1 SYNERGY PHARMACE SGYPEUR EU 194.8 (24.7) 163.1 SYNTHETIC BIOLOG SYN US 13.7 (1.6) (1.7) THERAVANCE THRX US 462.1 (294.0) 231.7 THERAVANCE HVE GR 462.1 (294.0) 231.7 THRESHOLD PHARMA NZW1 GR 73.9 (26.3) 46.6 THRESHOLD PHARMA THLD US 73.9 (26.3) 46.6 TRANSDIGM GROUP TDG US 8,350.4 (1,169.0) 1,349.8 TRANSDIGM GROUP T7D GR 8,350.4 (1,169.0) 1,349.8 TRINET GROUP INC TNET US 1,620.2 (15.1) 15.2 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 UNISYS CORP UISCHF EU 2,163.6 (1,455.9) 177.2 UNISYS CORP USY1 GR 2,163.6 (1,455.9) 177.2 UNISYS CORP UIS1 SW 2,163.6 (1,455.9) 177.2 UNISYS CORP UISEUR EU 2,163.6 (1,455.9) 177.2 UNISYS CORP UIS US 2,163.6 (1,455.9) 177.2 UNISYS CORP USY1 TH 2,163.6 (1,455.9) 177.2 VECTOR GROUP LTD VGR QT 1,462.8 (1.7) 514.4 VECTOR GROUP LTD VGR GR 1,462.8 (1.7) 514.4 VECTOR GROUP LTD VGR US 1,462.8 (1.7) 514.4 VENOCO INC VQ US 596.0 (31.1) 52.2 VERISIGN INC VRS TH 2,570.7 (994.3) (15.0) VERISIGN INC VRSN US 2,570.7 (994.3) (15.0) VERISIGN INC VRS GR 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 WW6 TH 1,446.4 (1,385.2) (260.9) WEIGHT WATCHERS WTWEUR EU 1,446.4 (1,385.2) (260.9) WEIGHT WATCHERS WW6 GR 1,446.4 (1,385.2) (260.9) WEIGHT WATCHERS WTW US 1,446.4 (1,385.2) (260.9) WEST CORP WT2 GR 3,549.9 (625.9) 265.3 WEST CORP WSTC US 3,549.9 (625.9) 265.3 WESTERN REFINING WNRL US 434.0 (27.4) 71.5 WESTERN REFINING WR2 GR 434.0 (27.4) 71.5 WESTMORELAND COA WLB US 1,777.6 (422.8) 40.1 WESTMORELAND COA WME GR 1,777.6 (422.8) 40.1 WINGSTOP INC WING US 117.4 (17.4) 6.0 WINGSTOP INC EWG GR 117.4 (17.4) 6.0 WINMARK CORP GBZ GR 45.3 (41.5) 11.5 WINMARK CORP WINA US 45.3 (41.5) 11.5 WYNN RESORTS LTD WYNN SW 9,283.0 (110.7) 860.6 WYNN RESORTS LTD WYNNCHF EU 9,283.0 (110.7) 860.6 WYNN RESORTS LTD WYNN US 9,283.0 (110.7) 860.6 WYNN RESORTS LTD WYR TH 9,283.0 (110.7) 860.6 WYNN RESORTS LTD WYR GR 9,283.0 (110.7) 860.6 WYNN RESORTS LTD WYNN* MM 9,283.0 (110.7) 860.6 XACTLY CORP XTLY US 52.7 (25.4) (6.8) XACTLY CORP XT4Y GR 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 TH 1,968.6 (445.2) 200.4 YRC WORLDWIDE IN YEL1 GR 1,968.6 (445.2) 200.4 YRC WORLDWIDE IN YRCW US 1,968.6 (445.2) 200.4 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog, Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2015. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***