/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/150813.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, August 13, 2015, Vol. 19, No. 225 Headlines 22ND CENTURY: Reports $1.3 Million Net Loss for Second Quarter AEROGROW INTERNATIONAL: Incurs $1.2 Million Net Loss in Q1 AMERICAN APPAREL: Needs to Raise Money or Refinance Debt AMERICAN INT'L: U.S. to Appeal Ruling in Bailout Dispute ANACOR PHARMACEUTICALS: Posts $13.2 Million Net Loss for Q2 ARICENT TECHNOLOGIES: S&P Retains 'B' CCR on Proposed Add-On ASG CONSOLIDATED: S&P Lowers Corporate Credit Rating to 'SD' BAHA MAR: Files Bankruptcy Rule 2015.3 Report BERNARD L. MADOFF: Feeder Fund Suit Approved to Move Forward BIOSCRIP INC: S&P Lowers CCR to 'CCC+', Outlook Negative CAESARS ENTERTAINMENT: Sued for Paying Creditors for Plan Support CANCER GENETICS: Incurs $4.9 Million Net Loss in Second Quarter CARBON ENERGY: U.S. Trustee Seeks Conversion to Ch. 7 CENTRUS ENERGY: Posts Net Loss of $15.1 Million in 2nd Qtr. 2015 CORD BLOOD: Shareholders Elect Five Directors CUI GLOBAL: Incurs $503,876 Net Loss in Second Quarter ELEPHANT TALK: Reports $9.5 Million Net Income for Second Quarter ELITE PHARMACEUTICALS: Posts $16 Million Net Income for Q1 ENERGY FUTURE: Noteholders Unveil Confidentiality Agreements ERG INTERMEDIATE: Opts to Cancel 363 Sale Process, To File Plan EXELIXIS INC: FMR LLC Reports 14.9% Equity Stake EXELIXIS INC: T. Rowe Price Reports 10.9% Stake as of July 31 FINJAN HOLDINGS: Posts $2.6 Million Net Loss for Second Quarter FREE GOSPEL: US Trustee Unable to Form Creditor's Committee GELTECH SOLUTIONS: Issues $200,000 Convertible Note GENESIS HOLDINGS: Trial Court Erroneously Granted Summary Judgment GLOBALSTAR INC: Posts $204.8-Mil. Net Income for Second Quarter GLOBALSTAR INC: Signs $75 Million Purchase Agreement with Terrapin HEALTHWAREHOUSE.COM INC: Incurs $159,600 Net Loss in 2nd Quarter HOLIDAY MARINAS: Case Summary & 20 Largest Unsecured Creditors HYDROCARB ENERGY: Sells $1 Million Convertible Note to JMJ IDERA PHARMACEUTICALS: To Issue 6.2M Shares Under Incentive Plan IMAGEWARE SYSTEMS: Posts $2.1 Million Net Loss for Second Quarter INFOR INC: S&P Rates Proposed $400MM Sr. Secured Notes 'B+' INSITE VISION: Gets Unsolicited Proposal from Pharma Company INVENTIV HEALTH: Second Quarter Conference Call Set for Aug. 17 JONES ENERGY: Fitch Assigns 'B' Long-term Issuer Default Rating LOST ACRES: Voluntary Chapter 11 Case Summary MALIBU ASSOCIATES: Disclosure Statement Hearing Moved to Aug. 27 MALIBU ASSOCIATES: Seeks Jan. 4 Extension of Solicitation Period MALIBU ASSOCIATES: U.S. Bank Wants Ch. 11 Case Converted to Ch. 7 MARINA BIOTECH: Announces $1.1-Mil. Preferred Stock Financing MARINA BIOTECH: CEQ508 Granted FDA Fast Track Designation MARKHAM, IL: S&P Puts 'BB+' GO Debt Rating on CreditWatch Negative MERRIMACK PHARMACEUTICALS: Incurs $22.9 Million Net Loss in Q2 MIDSTATES PETROLEUM: Amends Credit Agreement with SunTrust Bank MILLER BRANGUS: Case Summary & 10 Largest Unsecured Creditors MISSISSIPPI PHOSPHATES: Cancels Auction After Failure to Draw Bids MOSHAASHAEE: Bid to Reconsider Appointment of Examiner Denied MOTORS LIQUIDATION: Liquidation of New GM Common Stock Completed MSAA LV PARTNERS: Case Summary & 20 Largest Unsecured Creditors MUSCLEPHARM CORP: Posts $7 Million Net Loss for Second Quarter NEPHROS INC: Posts $1.8 Million Net Loss for Second Quarter NII HOLDINGS: Reports Financial Results for 2nd Quarter 2015 OWENS-BROCKWAY GLASS: S&P Rates New $1BB Sr. Notes 'BB' OXFORD RESOURCE: Westmoreland Holds 93.8% Equity Interests PARKVIEW ADVENTIST: Court Declines Appointment of PCO PARKVIEW ADVENTIST: Wants Skelton Taintor DQ'd as CMHC Counsel PARU SELVAM: Default Judgment and Receiver Appointment Upheld PHOTOMEDEX INC: Posts $6 Million Net Income in Second Quarter PLY GEM HOLDINGS: Reports $30.4M Net Income for Second Quarter PROSPECT SQUARE: Court Dismisses Ch. 11 RETROPHIN INC: Incurs $25.5 Million Net Loss in Second Quarter REYES: Ch. 11 Case Dismissed, Filed in Bad Faith RICHCOURT EURO: Chapter 15 Case Summary SABINE OIL: Taps Lazard Freres as Investment Banker SABINE OIL: U.S. Trustee Forms Five-Member Creditors' Committee SABLE NATURAL: Jonathan Rich Quits as Director SAN JUAN RESORT: SJ Beach Declared Successful Bidder SEMCRUDE: Decision on Kivisto Motion Reversed SMILE BRANDS: S&P Lowers CCR to 'CCC+', Outlook Negative STACKPOLE INTERNATIONAL: S&P Puts 'B+' CCR on CreditWatch Positive STAR BODY EXPERT: Case Summary & 9 Largest Unsecured Creditors STELLAR BIOTECHNOLOGIES: Reports $464,000 Net Income in Q2 SUMMIT BUILDING: Case Summary & 6 Largest Unsecured Creditors TELEPHONE AND DATA: Fitch Affirms 'BB+' Issuer Default Ratings THERAKOS INC: S&P Puts 'B' CCR on CreditWatch Positive THORNTON & CO: Proposes to Pay Critical Vendors THORNTON & CO: Seeks to Use PUB's Cash Collateral THORNTON & CO: Wants Oct. 30 Bar Date for 503(b)(9) Claims TRISTAR WELLNESS: David Horin Resigns as Chief Financial Officer TWIN RINKS: Court Approves Aug. 19 Auction for Assets TWIN RINKS: Files Revised Bid to Employ Greenspan as Accountants UNI-PIXEL INC: Approves CEO Salary Increase UNI-PIXEL INC: Posts $15.7 Million Net Loss of Second Quarter VERMILLION INC: FMR LLC Reports 12.2% Stake as of August 7 VIRTUAL PIGGY: Incurs $2.4 Million Net Loss in Second Quarter WALTER ENERGY: Has Green Light to Form Retired Employee's Panel WAYNE COUNTY, MI: Seeks to Avoid Bankruptcy Through Consent Pact WESTMORELAND COAL: Has 93% Equity Interest in Westmoreland Resource ZOGENIX INC: Posts $72.4 Million Net Income for Second Quarter ********* 22ND CENTURY: Reports $1.3 Million Net Loss for Second Quarter -------------------------------------------------------------- 22nd Century Group, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.3 million on $2.3 million of revenue for the three months ended June 30, 2015, compared to a net loss of $1.9 million on $16,114 of revenue for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $5.4 million on $2.9 million of revenue compared to a net loss of $7.3 million on $463,649 of revenue for the same period last year. As of June 30, 2015, the Company had $23.3 million in total assets, $6.7 million in total liabilities and $16.5 million in total shareholders' equity. As of June 30, 2015, the Company had positive working capital of approximately $9.2 million compared to positive working capital of approximately $8.0 million at Dec. 31, 2014, an increase of approximately $1.2 million. The increase in the Company's working capital position was mainly the net result of the sale of common stock during the second quarter of 2015 partially offset by working capital consumed in our operating activities. A full-text copy of the Form 10-Q is available for free at: http://is.gd/LnBaSc About 22nd Century Clarence, New York-based 22nd Century Group, Inc., through its wholly-owned subsidiary, 22nd Century Ltd, is a plant biotechnology company using technology that allows for the level of nicotine and other nicotinic alkaloids (e.g., nornicotine, anatabine and anabasine) in tobacco plants to be decreased or increased through genetic engineering and plant breeding. 22nd Century reported a net loss of $15.6 million on $529,000 of revenue for the year ended Dec. 31, 2014, compared to a net loss of $26.2 million on $7.27 million of revenue during the prior year. AEROGROW INTERNATIONAL: Incurs $1.2 Million Net Loss in Q1 ---------------------------------------------------------- Aerogrow International, inc. filed with the Securites and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.2 million on $1.5 million of net revenue for the three months ended June 30, 2015, compared to a net loss of $857,000 on $1.6 million of net revenue for the same period during the prior year. As of June 30, 2015, the Company had $4.6 million in total assets, $4.2 million in total liabilities, all current, and $442,000 in total stockholders' equity. "The June quarter marks the nadir of our traditional summer slow period, with sales in the quarter representing less than 10% of our last year's annual sales," said President and CEO J. Michael Wolfe. "As such, minor fluctuations in order timing can result in oversize percentage increases or decreases in the quarterly results that in fact have little relative impact on annual sales results. That was the case this quarter in our retail channel due to timing of reorders. Moreover, last year nearly 20% of our entire Q1 sales were from a single counter-seasonal test which was not repeated. Increased sales to other retailers virtually offset this gap. Our DR business also experienced headwinds as last year's quarterly sales benefited from 3/31 backorders for LED gardens that were shipped during the June quarter, and by our burgeoning business at Amazon, which creates on-line competition for us." "Looking forward, our team is working on the key initiatives that will continue to drive growth in our seasonally strong October to April time frame. We've continued to drive product costs down, while pushing toward major new product introductions this fall. In addition, we're planning a major category and brand building campaign during the holiday season as we look to increase awareness of the indoor gardening category generally, and AeroGardens specifically, in the minds of targeted consumers. As these efforts come together in our peak selling season beginning this November, I'm optimistic we'll drive continued substantial top line growth, with an emphasis on improved bottom line performance." A full-text copy of the Form 10-Q is available for free at: http://is.gd/Gma8HA About AeroGrow Boulder, Colo.-based AeroGrow International, Inc., is a developer, marketer, direct-seller, and wholesaler of advanced indoor garden systems designed for consumer use and priced to appeal to the gardening, cooking, and healthy eating, and home and office decor markets. AeroGrow reported a net loss attributable to common shareholders of $1.5 million on $17.9 million of net revenue for the year ended March 31, 2015, compared with a net loss attributable to common shareholders of $4.1 million on $9.3 million of of net revenue for the year ended March 31, 2014. AMERICAN APPAREL: Needs to Raise Money or Refinance Debt -------------------------------------------------------- Maria Armental, writing for The Wall Street Journal, reported that American Apparel Inc. warned it had about $13 million of available cash and risked default if it didn't raise money or refinance its debt. According to the report, the retailer, which also said it would miss a regulatory deadline to file its June quarter financial results, toughened its language from a month earlier, when it disclosed it was running short of cash to meet its obligations over the next 12 months and said it intended to close several stores as part of an aggressive cost-cutting plan. The Journal noted that American Apparel has staved off bankruptcy through cash infusions. About American Apparel American Apparel is a vertically-integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of Sept. 30, 2014, American Apparel had approximately 10,000 employees and operated 245 retail stores in 20 countries including the United States and Canada. American Apparel also operates a global e-commerce site that serves over 60 countries worldwide at http://www.americanapparel.com. In addition, American Apparel operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. Amid liquidity problems and declining sales, American Apparel in early 2011 reportedly tapped law firm Skadden, Arps, Slate, Meagher & Flom and investment bank Rothschild Inc. for advice on a restructuring. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Under the deal, the investors were buying 15.8 million shares of common stock at 90 cents apiece. The deal allows the investors to purchase additional 27.4 million shares at the same price. American Apparel reported a net loss of $68.8 million in 2014, a net loss of $106 million in 2013 and a net loss of $37.3 million in 2012. As of March 31, 2015, the Company had $271 million in total assets, $416 million in total liabilities and a $144 million total stockholders' deficit. * * * The TCR reported on Nov. 21, 2013, that Moody's Investors Service downgraded American Apparel Inc.'s corporate family rating to Caa2. The clothing retailer's probability of default was also lowered one level and the outlook is negative. As reported by the TCR on Sept. 2, 2014, Standard & Poor's Ratings Services lowered its corporate credit rating on Los Angeles-based American Apparel Inc. to 'CCC-' from 'CCC'. The outlook is negative. AMERICAN INT'L: U.S. to Appeal Ruling in Bailout Dispute -------------------------------------------------------- Angela Chen, writing for Dow Jones' Daily Bankruptcy Review, reported that the U.S. government on Aug. 12 filed to appeal a judge's ruling that it violated the law when it took a controlling stake in American International Group Inc. in 2008. According to the report, Judge Thomas C. Wheeler ruled in June that the government action, during the most dramatic stretch of the financial crisis, was unlawful. Still, he accepted the government's arguments that without a Federal Reserve bank's $85 billion loan to AIG , the company would have filed for bankruptcy and shareholders likely would have been left with nothing, the report noted. The case is Starr International Co. v. U.S., 11-cv-00779, U.S. Court of Federal Claims (Washington). About AIG With corporate headquarters in New York, American International Group, Inc., is an international insurance company, serving customers in more than 130 countries. AIG companies serve commercial, institutional and individual customers through property-casualty networks of any insurer. In addition, AIG companies are providers of life insurance and retirement services. At the height of the 2008 financial crisis, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. AIG almost collapsed under the weight of bad bets it made insuring mortgage-backed securities. The Company, however, was bailed out by the Federal Reserve, but even after an initial infusion of $85 billion, losses continued to grow. The later rescue packages brought the total to $182 billion, making it the biggest federal bailout in U.S. history. AIG sold off a number of its businesses and other assets to pay down loans received from the U.S. government. ANACOR PHARMACEUTICALS: Posts $13.2 Million Net Loss for Q2 ----------------------------------------------------------- Anacor Pharmaceuticals, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing 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 in 2014. 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 $45.6 million on $7.1 million of total revenues for the same period during the prior year. As of June 30, 2015, the Company had $195.7 million in total assets, $125.5 million in total liabilities, $4.9 million in redeemable common stock and $65.2 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/3UmzXI 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. ARICENT TECHNOLOGIES: S&P Retains 'B' CCR on Proposed Add-On ------------------------------------------------------------ Standard & Poor's Ratings Services said that its recovery rating on Aricent Technologies' (B/Stable/--) first-lien credit facility remains unchanged following the company's announcement of a proposed $75 million add-on. The '3' recovery rating indicates S&P's expectation for meaningful (50% to 70%; in the higher end of the range) recovery in the event of a payment default. Subsequently, the issue-level rating on this debt remains at 'B', in accordance with S&P's notching criteria. The company will use proceeds from the proposed add-on for general corporate purposes and as part of financing to acquire an undisclosed company that provides semiconductor design and embedded software solutions. The transaction is leverage neutral and S&P expects leverage to remain in the mid-5x area. The acquisition will provide additional capabilities in semiconductor design and embedded software solutions, some diversification to Aricent's core engineering business, and access to new verticals such as automotive and industrials. S&P's 'B' corporate credit rating on Aricent remains unchanged. The outlook is stable and reflects S&P's expectation that the company will increase annual organic revenues by a rate in the low-single-digit area while generating consistent profitability and positive free operating cash flow. Under Standard & Poor's policies, only a Rating Committee can determine a Credit Rating Action (including a Credit Rating change, affirmation or withdrawal, Rating Outlook change, or CreditWatch action). This commentary and its subject matter have not been the subject of Rating Committee action and should not be interpreted as a change to, or affirmation of, a Credit Rating or Rating Outlook. RATINGS LIST Ratings Unchanged Aricent Technologies Inc. Corporate credit rating B/Stable/-- 1st-lien cred fac B Recovery rating 3H 2nd-lien cred fac CCC+ Recovery rating 6 ASG CONSOLIDATED: S&P Lowers Corporate Credit Rating to 'SD' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit rating on Seattle-based ASG Consolidated LLC to 'SD' from 'CC'. The rating action followed the company's transfer of its Holdco payment-in-kind (PIK) notes at a substantial discount. "The rating action reflects our assessment of credit quality following the company's partial exchange of its Holdco PIK notes due 2017," said Standard & Poor's credit analyst Kim Logan. "We lowered the corporate credit rating to 'SD' after the company completed the transfer of the notes at a substantial discount, thereby, in our opinion, not meeting the full obligation on the security that is payable in May 2017. According to our criteria, we consider the transfer of the notes as tantamount to default." The ratings on ASG reflect its highly leveraged financial profile (including S&P's estimate of debt to EBITDA in excess of 9x as of June 30, 2015) and near-term potential for declining liquidity due to tightening financial covenants and pending debt maturities). The company expects to refinance its senior credit facility and senior subordinated notes within the next few weeks. The company has a narrow product focus and participates in the commodity-oriented, highly regulated, and somewhat volatile commercial fishing industry, albeit with a strong asset base including exclusive fishing rights to a significant share of the North American Bering Sea and several commercial fishing vessels equipped with on-board processing capacity. Also, S&P believes operating performance is subject to supply-and-demand vagaries related to its products, variable catch volumes, and worldwide pricing movements that can affect financial performance. BAHA MAR: Files Bankruptcy Rule 2015.3 Report --------------------------------------------- Baha Mar Enterprises Ltd. and its affiliated debtors filed a report with the U.S. Bankruptcy Court in Delaware, disclosing that they hold 100% interest in these companies: Companies Interest of Estate --------- ------------------ Baha Mar Convention Center Company Ltd. 100% Baha Mar CHC Ltd. 100% Baha Mar Convention Hotel Company Ltd. 100% Baha Mar Luxury Company Ltd. 100% Baha Mar Lifestyle Hotel Company Ltd. 100% Baha Mar filed the report pursuant to Bankruptcy Rule 2015.3. The report dated July 27, 2015, is available for free at http://is.gd/DIAVMW 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. BERNARD L. MADOFF: Feeder Fund Suit Approved to Move Forward ------------------------------------------------------------ Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review, reported that a lawsuit seeking to reclaim $825 million from two major funds that invested with Bernard Madoff may move forward largely intact, a bankruptcy judge ruled on Aug. 11. According to the report, Judge Stuart M. Bernstein of the U.S. Bankruptcy Court in Manhattan largely rejected a bid by the funds, Kingate Global Fund Ltd. and Kingate Euro Fund Ltd., to dismiss litigation brought by the Irving Picard, the trustee winding down Mr. Madoff's investment firm. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has commenced distributions to victims. As of the end of May 2015, the SIPA Trustee has recovered more than $10.699 billion and has distributed approximately $7.576 billion. When additional settlements awaiting distribution are taken into account, the recovery in the Madoff liquidation proceeding totals $10.734 billion. BIOSCRIP INC: S&P Lowers CCR to 'CCC+', Outlook Negative -------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on home infusion services provider BioScrip Inc. to 'CCC+' from 'B-'. The rating outlook is negative. S&P also lowered the issue-level rating on BioScrip's senior secured term loan to 'B-' from 'B'. S&P's recovery rating on this debt remains '2', indicating its expectation for meaningful (50% to 70%; at the lower end of the range) recovery of principal in the event of a payment default. In addition, S&P lowered the issue-level rating on the company's senior unsecured notes to 'CCC-' from 'CCC'. The recovery rating on this debt remains '6', indicating S&P's expectations of negligible (0% to 10%) recovery in the event of default. "The company's operating performance in the second quarter fell meaningfully short of our expectations for sequential improvement," said Standard & Poor's credit analyst David Kaplan. This follows weaker-than-expected results in the first quarter in the wake of significant billing and collection issues in 2014 stemming from the integration of an acquisition. This pattern is prompting us to again reassess our forecast for 2015 and 2016. The company also announced initiatives to reduce costs, the sale of its PBM business, and that it plans to explore more divestitures and other strategic options, including the possible sale of the company. Given debt levels, S&P believes the company will likely default if it is unable to improve profitability; moreover, given the company's pattern of falling short of its guidance S&P's confidence in the company's ability to execute on its ambitious turnaround plan is limited. S&P's negative outlook reflects the downside risk to its revised base case given its decreased confidence in the company's ability to execute on its plan to quickly improve profitability in 2016. S&P would likely lower the rating if it expects adjusted EBITDA (including recurring "one-time" items) in 2015 or 2016 to fall short of about $35 million, or if liquidity becomes constrained. In this scenario, S&P could conclude that BioScrip's capital structure is unsustainable over the near term. S&P would consider revising the outlook to stable or an upgrade, if it develops greater confidence the company can meet its base-case expectation, including ultimately growing EBITDA to about $50 million. CAESARS ENTERTAINMENT: Sued for Paying Creditors for Plan Support ----------------------------------------------------------------- Steven Church, writing for Bloomberg News, reported that creditors of Caesars Entertainment Operating Co. sued the bankrupt casino company, accusing it of trying to buy votes for its reorganization plan. According to the report, a group of mid-level bondholders said in a complaint filed in Chicago bankruptcy court that Caesars promised $200 million in improper payments to other creditors to secure their support. The second-lien noteholders, who have been the company's most vocal opponents, claimed Caesars "has pledged to continue its illegal vote-buying campaign" to persuade more creditors to back the proposal, the report related. The noteholders asked U.S. Bankruptcy Judge A. Benjamin Goldgar to issue a restraining order preventing Caesars from continuing to solicit support for the restructuring agreement, the report further related. 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. CANCER GENETICS: Incurs $4.9 Million Net Loss in Second Quarter --------------------------------------------------------------- Cancer Genetics, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $4.9 million on $4.2 million of revenue for the three months ended June 30, 2015, compared to a net loss of $4.2 million on $1.5 million of revenue for the same period during the prior year. For the six months ended June 30, 2015, the Company reported a net loss of $9.2 million on $8.5 million of revenue compared to a net loss of $6.6 million on $2.9 million of revenue for the same period a year ago. As of June 30, 2015, the Company had $39.8 million in total assets, $13.1 million in total liabilities and $26.7 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/fcZGiS About Cancer Genetics Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve and personalize the diagnosis, prognosis and response to treatment (theranosis) of cancer. Cancer Genetics reported a net loss of $16.6 million in 2014, a net loss of $12.4 million in 2013 and a net loss of $6.66 million in 2012. CARBON ENERGY: U.S. Trustee Seeks Conversion to Ch. 7 ----------------------------------------------------- Tracy Hope Davis, the United States Trustee for Region 17, asks the U.S. Bankruptcy Court for the District of Nevada to convert the Chapter 11 cases of Carbon Energy Holdings, Inc., et. al., to cases under Chapter 7 of the Bankruptcy Code, or dismiss the cases based on the Debtors' failure to confirm a plan within the time allowed for small business cases under the Bankruptcy Code. The U.S. Trustee explains that it has been more than 300 days since the petition was filed and the Debtors have not filed a plan. The U.S. Trustee has not appointed an unsecured creditors' committee and no order has been entered to extend the time periods for confirmation of a plan in a small business case. In this case, the deadline for the Debtors to file a plan pursuant to Section 1121(e)(2) was April 23, 2012, and no order was entered prior to that date extending the time. It is now too late to file a plan, the U.S. Trustee adds. The hearing to consider the conversion request is scheduled for September 9, 2015, at 02:00 PM. The U.S. trustee is represented by: Nicholas Strozza William B. Cossitt Justice Department, US Trustees Office 300 Booth Street, #3009 Reno NV 89509 Tel:(775) 784-5335 Fax:(775) 784-5531 Email: USTPRegion17.RE.ECF@usdoj.gov About Carbon Energy Holdings Based in Wickenburg, Arizona, Carbon Energy Holdings LLC and Carbon Energy Reserve Inc. filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case Nos. 11-52099 and 11-52101) on June 28, 2011. Judge Bruce T. Beesley presides over the cases. Carbon Energy Holdings Inc. disclosed $0 in assets and $146,270 in liabilities in its schedules filed in court. Carbon Energy Reserve Inc. scheduled $40,000,000 in assets and $2,009,573 in liabilities. Kolesar & Leatham Chtd. acts as the Debtors' general counsel. CENTRUS ENERGY: Posts Net Loss of $15.1 Million in 2nd Qtr. 2015 ---------------------------------------------------------------- Centrus Energy Corp. on Aug. 7 reported a net loss of $15.1 million or $1.68 per basic and diluted share for the quarter ended June 30, 2015, compared to a net loss of $28.0 million or $5.71 per basic and diluted share for the second quarter 2014. For the six months ended June 30, 2015, Centrus reported a net loss of $30.5 million compared to a net loss of $78.8 million in the same period of 2014. Gross profit increased $0.8 million in the three months and $28.6 million in the six months ended June 30, 2015, compared to the corresponding periods in 2014, reflecting charges in the prior periods related to the wind-down of the Paducah Gaseous Diffusion Plant (GDP). "With our long track record as a reliable supplier and our broad relationships across the global industry, we are well positioned to promote reliable and commercially attractive supplies to our customers," said Daniel B. Poneman, Centrus president and chief executive officer. "We are intently focused on securing new business and diverse sources of supply to support our growth in the coming years. We are taking a customer-first approach, since competitively priced nuclear power will drive Centrus' long-term success." "While we are in the early stages of our fresh start following reorganization and still have a lot of work to do, we believe the company is on the right trajectory. Our second quarter results reflect our declining costs, improving margins, and actions to manage our order book effectively," Mr. Poneman said. Revenue Revenue for the second quarter of 2015 was $63.3 million, a decrease of $57.9 million or 48 percent compared to the same quarter of 2014. In the sixth month period ending June 30, 2015, revenue was $231.1 million, a decrease of $38.7 million or 14 percent from the same period in 2014. The volume of separative work units (SWU) sales declined 63 percent in the three-month period and 46 percent in the six-month period, reflecting the variability of timing of customer orders and the expected decline in SWU deliveries in 2015 compared to 2014. The average price billed to customers for sales of SWU increased 9 percent in both the three- and six-month periods reflecting the particular contracts under which SWU were sold during the period. Revenue from the contract services segment increased $4.4 million or 26 percent in the three months and $22.4 million or 114 percent in the six months ended June 30, 2015, compared to the corresponding periods in 2014, reflecting American Centrifuge work performed under the American Centrifuge Technology Demonstration and Operations (ACTDO) Agreement beginning May 1, 2014, partially offset by a decline in contract services work performed for the Department of Energy (DOE) and DOE contractors. In a number of sales transactions, Centrus transfers title and collects cash from customers but does not recognize the revenue until the LEU is physically delivered. At June 30, 2015, deferred revenue totaled $70.3 million compared to $100.9 million at December 31, 2014. The gross profit associated with deferred revenue as of June 30, 2015, was $11.4 million. Cost of Sales and Gross Profit Margin Cost of sales for the quarter ended June 30, 2015, was $59.0 million, a decrease of $58.7 million or 50 percent compared to the corresponding period in 2014. For the six-month period of 2015, cost of sales was $219.9 million, a reduction of $67.3 million or 23 percent compared to the same period in 2014 due to lower SWU sales volume and lower direct charges. Direct charges to cost of sales include logistics support and inventory management and disposition. In the prior periods, direct charges included costs associated with the transitioning of the Paducah GDP to DOE. Direct charges totaled $3.9 million and $8.6 million in the three and six months ended June 30, 2015, and $14.3 million and $49.2 million in the corresponding periods in 2014. Cost of sales per SWU, excluding direct charges, increased 2 percent in the three months and 7 percent in the six months ended June 30, 2015, compared to the corresponding periods in 2014, primarily due to the increase to book value of SWU inventories recorded as of September 30, 2014, as part of the application of fresh start accounting. In addition, approximately one-half of our sales in the prior six-month period were derived from previously deferred sales, whereby customers made advance payments to be applied against future deliveries. The unit cost per SWU for these sales reflects the average inventory cost when the customer took title to the SWU. These costs were accumulated in deferred costs and were then recognized as cost of sales as the SWU is delivered. Cost of sales for the contract services segment increased $5.4 million or 32 percent in the three months and $22.5 million or 107 percent in the six months ended June 30, 2015, compared to the corresponding periods in 2014, primarily due to American Centrifuge work performed under the ACTDO Agreement in the current periods. Our gross profit margin was 6.8 percent in the three months ended June 30, 2015 compared to 2.9 percent in the corresponding period in 2014, and 4.8 percent in the six months ended June 30, 2015 compared to a loss of (6.4 percent) in the corresponding period in 2014. Advanced Technology, SG&A, Amortization, Special Charges and Other Income Advanced technology costs declined $14.0 million in the three months and $45.5 million in the six months ended June 30, 2015, compared to the corresponding periods in 2014, reflecting development work performed in the prior periods under the Cooperative Agreement with DOE, which expired in accordance with its terms on April 30, 2014. American Centrifuge costs incurred by the Company that are outside of the current ACTDO Agreement are included in advanced technology costs, including certain demobilization and maintenance costs. Such costs totaled $4.0 million in the three months and $5.8 million in the six months ended June 30, 2015, and $7.0 million in May-June 2014. Selling, general and administrative (SG&A) expenses declined $3.8 million in the three months and $3.2 million in the six months ended June 30, 2015, compared to the corresponding periods in 2014. Salaries, benefits and other compensation declined $4.5 million in the three-month period and $5.4 million in the six-month period, including a gain of $3.9 million resulting from the remeasurement of pension obligations under the Employees' Retirement Plan of Centrus Energy Corp. and the non-qualified supplemental executive pension plans. The remeasurements resulted from the level of lump-sum payments to former employees including those affected by workforce reductions. Consulting costs increased $0.3 million and $1.0 million in the three- and six-month periods, respectively. Office related expenses increased $0.9 million in the six-month period. Amortization commenced in the fourth quarter of 2014 for the intangible assets resulting from the Company's emergence from bankruptcy and adoption of fresh start accounting. The cessation of enrichment at the Paducah GDP and evolving business needs have resulted in workforce reductions since July 2013. In the three and six months ended June 30, 2015, special charges consisted of termination benefits of $2.9 million and $3.8 million, respectively, less $0.3 million in the six-month period for severance paid by the Company and invoiced to DOE for its share of employee severance. In the three and six months ended June 30, 2014, special charges for termination benefits consisted of $4.1 million in the three-month period and $4.2 million in the six-month period, less amounts paid by the Company and invoiced to DOE of $1.6 million in the three-month period and $2.2 million in the six-month period. In the three and six months ended June 30, 2015, other income consisted of net gains on sales of assets and property. DOE and the Company provided cost-sharing support for American Centrifuge activities under the Cooperative Agreement, which expired in accordance with its terms on April 30, 2014. DOE's cost share of qualifying American Centrifuge expenditures in the three and six months ended June 30, 2014 was recognized as other income. Cash Flow We ended the second quarter of 2015 with a consolidated cash balance of $218.5 million. Cash used in operations in the six-month period of 2015 was $5.8 million compared to $193.4 million in the same period last year. Monetization of inventory purchased or produced in prior periods provided cash flow in the six months ended June 30, 2015 as inventories declined $118.1 million due to sales deliveries exceeding product received under SWU purchase agreements. In addition, accounts receivable declined $31.8 million due to monetization in the first quarter without increased sales and billings. The net reduction of the SWU purchase payables balance of $116.9 million, due to the timing of purchase deliveries, was a significant use of cash flow in the six-month period. The net loss of $30.5 million in the six months ended June 30, 2015, net of non-cash charges including depreciation and amortization, was a use of cash flow. In the corresponding period in 2014, payment of the SWU purchase payables balance of $340.7 million, due to the timing of purchase deliveries, was a significant use of cash flow, as was the net reduction in accounts payable and accrued liabilities by $34.8 million due to reduced operational activity. The net loss of $78.8 million, net of non-cash charges including depreciation and amortization, was a use of cash flow. Monetization of inventory purchased or produced in prior periods provided cash flow in the six-month period as accounts receivable declined $137.9 million and inventories declined $127.7 million. 2015 Outlook Centrus will continue its transition during 2015, and we expect to deliver significantly less SWU to customers than when we began our transition in 2013. In 2013, we delivered approximately 8 million SWU, and during 2014, we delivered approximately 3 million SWU. The Company expects to deliver approximately 2 million SWU in 2015. It will also continue to execute our contract with ORNL to conduct research, development and demonstration of the American Centrifuge technology under the terms of the ACTDO Agreement. Specifically, the Company anticipates SWU and uranium revenue in 2015 in a range of $350 million to $375 million and total revenue in a range of $425 million to $450 million. It expects to end 2015 with a cash and cash equivalents balance in a range of $175 million to $200 million. The Company's financial guidance is subject to a number of assumptions and uncertainties that could affect results either positively or negatively. Variations from the Company's expectations could cause differences between its guidance and its ultimate results. Among the factors that could affect the Company's results are: -- Additional short-term sales; -- Timing of customer orders and related SWU deliveries; -- The outcome of legal proceedings and other contingencies; -- Funding of the ACTDO Agreement or a successor agreement beyond its current contract expiration date of September 30, 2015; and -- The cost of any American Centrifuge demobilization or additional costs related to the overall transition of Centrus. Investor Call Centrus plans to hold an investor call on August 26, 2015, to discuss the second quarter results. Details about the call will be announced in the near future and will be available on the Company's website http://www.centrusenergy.com About Centrus Energy Corp. Centrus Energy Corp. is a supplier of enriched uranium fuel for nuclear power plants. Centrus is working to deploy the American Centrifuge technology for commercial needs and to support U.S. energy and national security. Centrus, then known as USEC Inc., filed a Chapter 11 bankruptcy petition (Bank. D. Del. Case No. 14-10475) on March 5, 2014. The Debtor tapped Latham & Watkins LLP, as general counsel; Richards, Layton & Finger, P.A., as Delaware counsel; Vinson & Elkins as special counsel; and Lazard Freres & Co. LLC as investment banker. USEC Inc. won confirmation its reorganization plan and emerged from Chapter 11 on Sept. 30, 2014, as Centrus Energy Corp. CORD BLOOD: Shareholders Elect Five Directors --------------------------------------------- Cord Blood America, Inc., held its annual meeting of shareholders on Aug. 6, 2015, at which the shareholders: (1) elected Joseph Vicente, Timothy McGrath, David Sandberg, Adrian Pertierra and Anthony Snow as directors; (2) ratified the appointment of De Joya Griffith, LLC as the Company's independent registered certified public accounting firm for the fiscal year ending Dec. 31, 2015; (3) did not approve a proposal to amend the Amended and Restated Articles of Incorporation of the Company to declassify the Board of Directors and to require that all directors stand for annual election; (4) did not approve a proposal to amend the Amended and Restated Articles of Incorporation to change the shareholder vote required to amend Articles III, IV, and V of the Articles of Incorporation from a supermajority common shareholder vote requirement to a majority vote requirement; (5) approved an amendment to the Amended and Restated Articles of Incorporation to require that, in the case of a combination, the authorized shares should be reduced commensurately with the reduction in outstanding shares and approval to conform cross-references and other immaterial clean-up changes in the Amended and Restated Articles of Incorporation; (6) approve (on an advisory basis) the Company's executive compensation; and (7) approved a proposal to conduct an advisory vote on the frequency of future advisory votes on executive compensation every three years. Adrian Pertierra and Anthony Snow will continue until the 2018 annual meeting of shareholders; Timothy McGrath and Joe Vicente will continue until the 2017 annual meeting of shareholders; and David Sandberg will continue until the 2016 annual meeting of shareholders. About Cord Blood America Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily a holding company whose subsidiaries include Cord Partners, Inc., CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc. D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel Inc, D/B/A Rainmakers International. Cord specializes in providing private cord blood stem cell preservation services to families. BodyCells is a developmental stage company and intends to be in the business of collecting, processing and preserving peripheral blood and adipose tissue stem cells allowing individuals to privately preserve their stem cells for potential future use in stem cell therapy. Properties was formed to hold the corporate trademarks and other intellectual property of CBAI. Rain specializes in creating direct response television and radio advertising campaigns, including media placement and commercial production. The Company has been the subject of a going concern opinion by its independent auditors who have raised substantial doubt as to the Company's ability to continue as a going concern. De Joya Griffith, LLC, in Henderson, NV, noted that the Company has incurred losses from operations, which losses have caused an accumulated deficit of approximately $53.46 million as of Dec. 31, 2014. The Company disclosed net income of $240,000 on $4.33 million of revenue for the year ended Dec. 31, 2014, compared to a net loss of $2.97 million on $3.82 million of revenue for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $3.79 million in total assets, $4.69 million in total liabilities and a $899,954 total stockholders' deficit. CUI GLOBAL: Incurs $503,876 Net Loss in Second Quarter ------------------------------------------------------ CUI Global, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $503,876 on $22.9 million of total revenue for the three months ended June 30, 2015, compared to a net loss of $66,462 on $19.2 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 $39.8 million of total revenue compared to a net loss of $554,380 on $36.1 million of total revenue for the same period during the prior year. As of June 30, 2015, the Company had $93.3 million in total assets, $31.1 million in total liabilities and $62.2 million in total stockholders' equity. As of June 30, 2015, CUI Global held cash and cash equivalents of $5.2 million and investments of $4 million. Operations, acquisitions, investments, patents, equipment, land and buildings have been funded through cash on hand. A full-text copy of the Form 10-Q is available for free at: http://is.gd/MgQj8o About CUI Global Tualatin, Ore.-based CUI Global, Inc., formerly known as Waytronx, Inc., is a platform company dedicated to maximizing shareholder value through the acquisition, development and commercialization of new, innovative technologies. CUI Global reported a consolidated net loss of $2.80 million in 2014, a consolidated net loss of $943,000 in 2013 and a consolidated net loss of $2.52 million in 2012. ELEPHANT TALK: Reports $9.5 Million Net Income for Second Quarter ----------------------------------------------------------------- Elephant Talk Communications Corp. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $9.5 million on $19.2 million of revenues for the three months ended June 30, 2015, compared to a net loss of $6.4 million on $5 million of revenues for the same period in 2014. For the six months ended June 30, 2015, the Company reported net income of $7.4 million on $24.2 million of revenues compared to a net loss of $11.6 million on $10.4 million of revenues for the same period during the prior year. As of June 30, 2015, the Company had $32.2 million in total assets, $12.8 million in total liabilities and $19.4 million in total stockholders' equity. "With a cash balance at June 30, 2015 of $1.2 million, the net receipt of funding by Atalaya/Corbin of $4.2 million in July 2015 combined with the effects of the expense reduction, the Company believes it can sustain its operational plans for the coming 12 months. However, if we are unable to meet our sales objectives and financing becomes restrictive for our capital expenditures for growth purposes, we may be required to attract additional financing. Although we have previously been able to raise capital as needed, such capital may not continue to be available to us at all, or if available, on reasonable terms as required. Further, the terms of such financing may be dilutive to our existing stockholders or otherwise on terms not favorable to us or our existing stockholders. If we are unable to secure additional capital, as circumstances require, or do not succeed in meeting our sales objectives we may be required to change or delay our operations. As of June 30, 2015, these conditions raise substantial doubt about the Company's ability to continue as a going concern." A full-text copy of the Form 10-Q is available at: http://is.gd/D07LW7 About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk reported a net loss of $21.9 million in 2014, a net loss of $25.5 million in 2013 and a net loss of $23.1 million in 2012. ELITE PHARMACEUTICALS: Posts $16 Million Net Income for Q1 ---------------------------------------------------------- Elite Pharmaceuticals, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to common shareholders of $16.1 million on $7.1 million of total revenues for the three months ended June 30, 2015, compared to a net loss attributable to common shareholders of $4.4 million on $1.1 million of total revenues for the same period in 2014. As of June 30, 2015, the Company had $29.9 million in total assets, $45.2 million in total liabilities and a $15.3 million total stockholders' deficit. As of June 30, 2015, the Company had cash on hand of $11.6 million and a working capital surplus of $12.5 million. The Company believes that those resources, combined with the Company's access to the remaining $24.6 million available pursuant to the $40 million equity line with Lincoln Park, and approximately $0.6 million available under the Hakim Credit Line are sufficient to fund operations through the current operating cycle. A full-text copy of the Form 10-Q is available at: http://is.gd/e5uBL9 About Elite Pharmaceuticals Northvale, New Jersey-based Elite Pharmaceuticals, Inc., is a specialty pharmaceutical company principally engaged in the development and manufacture of oral, controlled-release products, using proprietary technology and the development and manufacture of generic pharmaceuticals. The Company has one product, Phentermine 37.5mg tablets, currently being sold commercially. Elite Pharmaceuticals reported net income attributable to common shareholders of $28.9 million on $5 million of total revenues for the year ended March 31, 2015, compared to a net loss attributable to common shareholders of $96.5 million on $4.6 million of total revenues for the year ended March 31, 2014. ENERGY FUTURE: Noteholders Unveil Confidentiality Agreements ------------------------------------------------------------ Pursuant to the terms of Confidentiality Agreements (the "Confidentiality Agreements") among Energy Future Holdings Corp, Energy Future Competitive Holdings Company LLC, Texas Competitive Electric Holdings Company LLC and Energy Future Intermediate Holding Company LLC (collectively, the "Company Parties"), on the one hand, and, individually, certain holders of EFIH Second Lien Notes (the "Disclosing EFIH Second Lien Noteholders"), on the other hand, the Disclosing EFIH Second Lien Noteholders on Aug. 3 disclosed certain information received pursuant to the Confidentiality Agreements. The Confidentiality Agreements provide that, upon the earliest of several events, including August 1, 2015, the Company Parties will publicly disclose certain cleansing materials, and that if, following the disclosure, the EFIH Second Lien Noteholders believe the information is insufficient, they may file their own materials. On August 3, 2015, the Company Parties disclosed certain information, including financial information about Oncor and a joint proposal supported by the ad hoc group of EFIH Second Lien Noteholders and the ad hoc group of EFIH Unsecured Noteholders. However, the Disclosing EFIH Second Lien Noteholders believe in good faith that certain additional information, as set for the below, needs to be disclosed to avoid imposition of material risk of trading restrictions on the Disclosing Second Lien Noteholders, and are therefore issuing this press release. The Disclosing EFIH Second Lien Noteholders understand that an ad hoc group of TCEH First Lien Creditors (the "TCEH First Lien Group") and an ad hoc group of TCEH Unsecured Creditors (the "TCEH Ad Hoc Unsecured Group") are working on a joint plan proposal. The Disclosing EFIH Second Lien Noteholders do not have copies of the latest proposals from the TCEH Ad Hoc Unsecured Group or the TCEH First Lien Group. However, on July 15, 2015, advisors to the Disclosing EFIH Second Lien Noteholders were informed that, at that point, the joint proposal included a construct where the TCEH Ad Hoc Unsecured Group would only have until April 30, 2016 (which such date may be subject to some fluctuation) to implement a REIT Reorganization and therefore consummate a plan of reorganization under the Merger Scenario. During that meeting and subsequent conversations, it was discussed that if the Merger and the REIT Reorganization do not occur by April 30, 2016, the TCEH First Lien Group may be able to proceed with a taxable transaction. (The terms "REIT Reorganization," "Merger Scenario" and "Merger" are defined in the Second Amended Plan of Reorganization of Energy Future Holdings Corp., et al., filed with the bankruptcy court on August 3, 2015.) This information was communicated to the Disclosing EFIH Second Lien Noteholders. Counsel to the TCEH Ad Hoc Unsecured Group has confirmed that, as of Aug. 3, they do not have a signed agreement with the Company Parties or the Steering Committee of the TCEH First Lien Group. The Disclosing EFIH Second Lien Noteholders and their advisors make no representations or warranties as to the factual accuracy or reliability of any of the information disclosed in this press release or of its materiality for any purpose. About Energy Future Holdings Corp. Energy Future Holdings Corp., formerly known as TXU Corp., is aprivately held diversified energy holding company with a portfolioof competitive and regulated energy businesses in Texas. Oncor,an 80 percent-owned entity within the EFH group, is the largestregulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created inOctober 2007 in a $45 billion leverage buyout of Texas powercompany TXU in a deal led by private-equity companies KohlbergKravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del.Lead Case No. 14-10979) after reaching a deal with some keyfinancial stakeholders to keep its businesses operating whilereducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their casesjointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee forthe second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed inthe case. The Committee represents the interests of the unsecured creditors of ONLY of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energyrestructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. ERG INTERMEDIATE: Opts to Cancel 363 Sale Process, To File Plan --------------------------------------------------------------- ERG Intermediate Holdings LLC and its affiliates ERG Resources Inc. LLC, ERG Operating Company, LLC, ERG Interests, LLC, and West Cat Canyon, LLC., all of which filed for Chapter 11 protection in the Northern District of Texas on April 30, 2015, on Aug. 12 disclosed that the Companies have cancelled the 363 Sale Process previously underway and instead will shortly file a Plan of Reorganization. The Companies did not receive an acceptable bid as required under the Bidding and Sale Procedures previously approved by the Bankruptcy Court. Instead, the Companies' prepetition Lender and Debtor-in-Possession Financing Lender provided a proposal whereby the Lenders will support a Plan of Reorganization and provide significant exit financing to maintain and potentially expand the Companies' California operations and assets. Kelly Plato, the Sole Manager of the Companies, said "We believe that a Plan of Reorganization which provides for significant new capital in the form of exit financing and which is supported by our current Lenders provides the best opportunity to maximize the value of the Companies. We also appreciate the continuing support of our vendors and employees as we work to put our plan in place." Also, on August 7, 2015, the Companies' Unsecured Creditors' Committee filed a Motion seeking approval for the compromise of controversies in accordance with a Settlement and Transaction Support Agreement executed between the Lenders and the Committee. Among other terms, the settlement provides for the waiver of certain liens by the Lenders and the establishment of a Liquidation Trust, which will be initially funded by the Lenders and which will receive a transfer of the Companies' assets excluding those related to the Companies' California operations. The Bankruptcy Court in the Northern District of Dallas will consider the Committee's request at a hearing currently scheduled for August 25, 2015. 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. EXELIXIS INC: FMR LLC Reports 14.9% Equity Stake ------------------------------------------------ In an amended Schedule 13G filed with the Securities and Exchange Commission, FMR LLC, Edward C. Johnson 3d and Abigail P. Johnson disclosed that as of Aug. 7, 2015, they beneficially owned 33,153,128 shares of common stock of Exelixis Inc., which represents 14.999 percent of the shares outstanding. Edward C. Johnson 3d is a director and the Chairman of FMR LLC and Abigail P. Johnson is a director, the vice chairman, the chief executive officer and the president of FMR LLC. A copy of the regulatory filing is available at: http://is.gd/gTJpnW About Exelixis Inc. Headquartered in South San Francisco, California, Exelixis, Inc., develops innovative therapies for cancer and other serious diseases. Through its drug discovery and development activities, Exelixis is building a portfolio of novel compounds that it believes has the potential to be high-quality, differentiated pharmaceutical products. Exelixis reported a net loss of $269 million on $25.1 million of total revenues for the year ended Dec. 31, 2014, compared with a net loss of $245 million on $31.3 million of total revenues in 2013. As of March 31, 2015, the Company had $283 million in total assets, $430 million in total liabilities and a $147 million total stockholders' deficit. EXELIXIS INC: T. Rowe Price Reports 10.9% Stake as of July 31 ------------------------------------------------------------- In an amended Schedule 13G filed with the Securities and Exchange Commission, T. Rowe Price Associates, Inc. disclosed that as of July 31, 2015, it beneficially owned 24,136,650 shares of common stock of Exelixis, Inc., which represents 10.9 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/RKQ13T About Exelixis Inc. Headquartered in South San Francisco, California, Exelixis, Inc., develops innovative therapies for cancer and other serious diseases. Through its drug discovery and development activities, Exelixis is building a portfolio of novel compounds that it believes has the potential to be high-quality, differentiated pharmaceutical products. Exelixis reported a net loss of $269 million on $25.1 million of total revenues for the year ended Dec. 31, 2014, compared with a net loss of $245 million on $31.3 million of total revenues in 2013. As of March 31, 2015, the Company had $283 million in total assets, $430 million in total liabilities and a $147 million total stockholders' deficit. FINJAN HOLDINGS: Posts $2.6 Million Net Loss for Second Quarter --------------------------------------------------------------- Finjan Holdings, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $2.6 million on $700,000 of revenues for the three months ended June 30, 2015, compared to a net loss of $3.2 million on $0 of revenues for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $6.8 million on $700,000 of revenues compared to a net loss of $5.2 million on $0 of revenues for the same period during the prior year. As of June 30, 2015, the Company had $14 million in total assets, $2.3 million in total liabilities and $11.7 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/oT5tyz About Finjan Finjan, formerly known as Converted Organics, is a leading online security and technology company which owns a portfolio of patents, related to software that proactively detects malicious code and thereby protects end-users from identity and data theft, spyware, malware, phishing, trojans and other online threats. Founded in 1997, Finjan is one of the first companies to develop and patent technology and software that is capable of detecting previously unknown and emerging threats on a real-time, behavior-based basis, in contrast to signature-based methods of intercepting only known threats to computers, which were previously standard in the online security industry. Finjan reported a net loss of $10.47 million in 2014 following a net loss of $6.07 million in 2013. FREE GOSPEL: US Trustee Unable to Form Creditor's Committee ----------------------------------------------------------- Judy A. Robbins, the U.S. Trustee for Region 4, told the U.S. Bankruptcy Court for the District of Maryland that she has not appointed creditors to serve on the official committee of unsecured creditors in the Chapter 11 Bankruptcy case of The Free Gospel of the Apostles Doctrine because the number of persons eligible and willing to serve on the committee is presently insufficient. The U.s. Trustee said it will appoint creditors to the committee upon the request of an adequate number of eligible unsecured creditors. The Free Gospel of the Apostles' Doctrine filed a Chapter 11 bankruptcy petition (Bankr. D. Md. Case No. 15-18209) on June 9, 2015. The petition was signed by Antoinette Green-Snow as executive administrator. The Debtor estimated assets of $10 million to $50 million and debts of $1 million to $10 million. Frank Morris, II, Esq., at Law Office of Frank Morris II, serves as the Debtor's counsel. GELTECH SOLUTIONS: Issues $200,000 Convertible Note --------------------------------------------------- GelTech Solutions, Inc., issued Mr. Reger a $200,000 7.5% secured convertible note in consideration for a $200,000 loan on Aug. 7, 2015, according to a document filed with the Securities and Exchange Commission. The note is convertible at $0.64 per share and matures on Dec. 31, 2020. Repayment of the note is secured by all of the Company's assets including its intellectual property and inventory in accordance with a secured line of credit agreement between the Company and Mr. Reger. Additionally, the Company issued Mr. Reger 156,250 two-year warrants exercisable at $2.00 per share. All of the securities were issued without registration under the Securities Act of 1933 in reliance upon the exemption provided in Section 4(a)(2) and Rule 506(b) thereunder. About GelTech Jupiter, Fla.-based GelTech Solutions. Inc., is a Delaware corporation organized in 2006. The Company markets four products: (1) FireIce(R), a water soluble fire retardant used to protect firefighters, structures and wildlands; (2) Soil2O(R) 'Dust Control', its new application which is used for dust mitigation in the aggregate, road construction, mining, as well as, other industries that deal with daily dust control issues; (3) Soil2O(R), a product which reduces the use of water and is primarily marketed to golf courses, commercial landscapers and the agriculture market; and (4) FireIce(R) Home Defense Unit, a system for applying FireIce(R) to structures to protect them from wildfires. GelTech incurred a net loss of $7.1 million for the year ended June 30, 2014, compared to a net loss of $5.2 million for the year ended June 30, 2013. As of March 31, 2015, the Company had $1.47 million in total assets, $3.93 million in total liabilities, and a $2.46 million total stockholders' deficit. Salberg & Company, P.A., in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2014, citing that the Company has a net loss and net cash used in operating activities in 2014 of $7,111,945 and $5,132,019 respectively and has an accumulated deficit and stockholders' deficit of $35,133,578 and $1,898,315, respectively, at June 30, 2014. These matters raise substantial doubt about the Company's ability to continue as a going concern. GENESIS HOLDINGS: Trial Court Erroneously Granted Summary Judgment ------------------------------------------------------------------ Judge J. Beach of the Appellate Court of Connecticut granted the appeal filed by defendant Professional Services Group, Inc., finding that the trial court improperly rendered summary judgment in favor of the plaintiff Astoria Federal Mortgage Corporation. Judge Beach also concluded that contrary to the Plaintiff's claims, the Defendant's claims are not barred by the doctrine of collateral estoppel. Judge Beach held that the trial court properly concluded that the doctrine of collateral estoppel was not applicable as the prior action involved a different debtor, different property, and different encumbrances. He says that the court in the prior case never directly addressed the issues raised in the present case concerning the scope of the relief from stay granted by the Bankruptcy Court. Judge Beach concluded that the trial court erroneously rendered summary judgment in favor of the plaintiff. He asserts that the order of the Bankruptcy Court clearly stated that the relief from the automatic stay is granted to allow the parties to move forward with the proceedings in the Connecticut Superior Court for the limited purpose of determining the extent, validity and priority of the Defendant's claimed mechanic's lien. He says that the order clearly contemplated the Superior Court's deciding only the specifically referred issues and that further disposition was to occur in Bankruptcy Court. He further says that the defendant could not lawfully have proceeded to foreclose its lien in any event because no party, nor the court, had the authority to proceed with foreclosure under the circumstances. The case is ASTORIA FEDERAL MORTGAGE CORPORATION v. GENESIS HOLDINGS, LLC, ET. AL., AC 36590. A full-text copy of Judge Beach's Opinion dated Aug. 4, 2015 is available at http://is.gd/FnB6Jifrom Leagle.com GLOBALSTAR INC: Posts $204.8-Mil. Net Income for Second Quarter --------------------------------------------------------------- Globalstar, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $204.7 million on $23 million of total revenue for the three months ended June 30, 2015, compared to a net loss of $433.7 million on $23.9 million of total revenue for the same period in 2014. For the six months ended June 30, 2015, the Company reported net income of $75 million on $44 million of total revenue compared to a net loss of $684.2 million on $44.5 million of total revenue for the same period last year. As of June 30, 2015, the Company had $1.2 billion in total assets, $1 billion in total liabilities and $223.7 million in total stockholders' equity. Jay Monroe, Chairman and CEO of Globalstar, commented, "We continued our principal initiatives in the second quarter including hitting critical milestones for the deployment of our second-generation ground infrastructure, continuing our geographical expansion, introducing new products and continuing to make progress with the TLPS proceeding before the FCC. During the quarter we added 24,000 subscribers and over 72,000 since this time last year. We are pleased to announce that the Hughes-based Radio Access Networks have now been installed at all North American gateways with additional installations going forward on schedule. The completion of readiness of the next generation service also remains on schedule for early 2016, and we are looking forward to releasing products that take advantage of the full capabilities of our new infrastructure. Our operations in Central and South America have continued the trend over the past few quarters of producing meaningful new subscriber results, despite currency headwinds. The FCC proceeding has also been very active over the past few months, and we are looking forward to a conclusion." A full-text copy of the Form 10-Q is available for free at: http://is.gd/cT3rxN About Globalstar, Inc. Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial and recreational users in more than 120 countries around the world. The company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Globalstar customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. Globalstar reported a net loss of $463 million in 2014, a net loss of $591 million in 2013 and a net loss of $112.19 million in 2012. GLOBALSTAR INC: Signs $75 Million Purchase Agreement with Terrapin ------------------------------------------------------------------ Globalstar, Inc., entered into a common stock purchase agreement dated as of Aug. 7, 2015, with Terrapin Opportunity, L.P. pursuant to which the Company may, subject to certain conditions, require Terrapin to purchase up to $75 million of shares of its voting common stock over the 24-month term following the date of the agreement. The Company may not sell to Terrapin under the Purchase Agreement any shares of voting common stock which, if aggregated with all other shares of voting common stock then beneficially owned by Terrapin and its affiliates, would result in the beneficial ownership by Terrapin and its affiliates of more than 9.9% of the number of the Company's shares of voting common stock outstanding at the date of the sale. Furthermore, the Company may not sell to Terrapin under the Purchase Agreement more than 177,944,443 shares of voting common stock (19.9% of the outstanding shares of the Company's voting common stock immediately prior to the execution of the Purchase Agreement) in the aggregate, unless and until the Company's stockholders approve the transactions contemplated by the Purchase Agreement in accordance with the rules of the NYSE MKT. The Company has agreed to pay up to $35,000 of Terrapin's legal fees and expenses. No additional legal fees incurred by Terrapin are payable by the Company in connection with any sale of shares to Terrapin. The issuance of the shares of common stock to Terrapin pursuant to the terms of the Purchase Agreement has been registered by the Company under a registration statement on Form S-3, Commission File Number 333-205968, filed by the Company with the U.S. Securities and Exchange Commission under the Securities Act. The Company has agreed to indemnify Terrapin and its affiliates for losses related to a breach of the representations and warranties by the Company under the Purchase Agreement or any action instituted against Terrapin or its affiliates due to the transactions contemplated by the Purchase Agreement, subject to certain limitations. Financial West Group, member FINRA SIPC, served as the Company's placement agent in connection with the financing arrangement contemplated by the Purchase Agreement. Pursuant to their Engagement Letter, the Company has agreed to indemnify and hold harmless FWG against certain liabilities, including certain liabilities under the Securities Act. About Globalstar, Inc. Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial and recreational users in more than 120 countries around the world. The company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Globalstar customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. Globalstar reported a net loss of $463 million in 2014, a net loss of $591 million in 2013 and a net loss of $112.19 million in 2012. As of June 30, 2015, the Company had $1.2 billion in total assets, $1 billion in total liabilities and $223.7 million in total stockholders' equity. HEALTHWAREHOUSE.COM INC: Incurs $159,600 Net Loss in 2nd Quarter ---------------------------------------------------------------- HealthWarehouse.com, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $159,642 on $1.8 million of net sales for the three months ended June 30, 2015, compared to a net loss attributable to common stockholders of $439,771 on $1.4 million of net sales for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss attributable to common stockholders of $440,391 on $3.4 million of net sales compared to a net loss attributable to common stockholders of $820,142 on $3.1 million of net sales for the same period during the prior year. As of June 30, 2015, the Company had $1.2 million in total assets, $4.7 million in total liabilities and a $3.5 million total stockholders' deficiency. Since inception, the Company has financed its operations primarily through debt and equity financings and advances from related parties. As of June 30, 2015, the Company had a working capital deficiency of $4,102,320 and an accumulated deficit of $30,653,255. During the six months ended June 30, 2015, and the year ended Dec. 31, 2014, the Company incurred net losses of $280,469 and $1,783,279, respectively and used cash in operating activities of $288,043 and $875,769, respectively. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "The Company recognizes it will need to raise additional capital in order to fund operations, meet its payment obligations and execute its business plan. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, attempt to extend note repayments, attempt to negotiate the preferred stock redemption and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. If the Company is unable to obtain financing on a timely basis, the Company could be forced to sell its assets, discontinue its operation and /or seek reorganization under the U.S. bankruptcy code," the Company stated in the Quarterly Report. A full-text copy of the Form 10-Q is available at: http://is.gd/eVBFY1 About HealthWarehouse.com HealthWarehouse.com, Inc., headquartered in Florence, Kentucky, is a U.S. licensed virtual retail pharmacy ("VRP") and healthcare e-commerce company that sells brand name and generic prescription drugs as well as over-the-counter medical products. Healthwarehouse.com reported a net loss attributable to common stockholders of $2.08 million on $6.12 million of net sales for the year ended Dec. 31, 2014, compared with a net loss attributable to common stockholders of $7.3 million on $10.23 million of net sales in 2013. Marcum LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. HOLIDAY MARINAS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Holiday Marinas, Incorporated 14900 Winnwood Road Dallas, TX 75254 Case No.: 15-33301 Chapter 11 Petition Date: August 11, 2015 Court: United States Bankruptcy Court Northern District of Texas (Dallas) Judge: Hon. Stacey G. Jernigan Debtor's Counsel: Rakhee V. Patel, Esq. SHACKELFORD, MELTON, MCKINLEY & NORTON LLP 3333 Lee Parkway, Tenth Floor Dallas, TX 75219 Tel: 214-780-1400 Fax: 214-780-1401 Email: rpatel@shacklaw.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $100,000 to $500,000 The petition was signed by Jeff Lagow, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/txnb15-33301.pdf HYDROCARB ENERGY: Sells $1 Million Convertible Note to JMJ ---------------------------------------------------------- Hydrocarb Energy Corporation, on July 28, 2015, sold JMJ Financial a convertible promissory note in the principal amount of up to $1,000,000, according to a Form 8-K document filed with the Securities and Exchange Commission. The initial amount received in connection with the sale of the JMJ Convertible Note was $300,000, and the JMJ Convertible Note currently has a face amount of $330,000, as all amounts borrowed under the note include a 10% original issue discount. Moving forward, JMJ may loan the Company additional funds (up to $900,000 in aggregate) at the Company's request, provided that JMJ has the right in its sole discretion to approve any future request for additional funding. Each advance under the JMJ Convertible Note is due two years from the date of that advance, with the $330,000 initially owed under the note due on July 28, 2017. The JMJ Convertible Note is convertible into the Company's common stock, beginning 180 days after the date the note was sold (Jan. 24, 2016), at the lesser of $1.23 per share or 60% of the lowest trading price of the Company's common stock in the 25 trading days prior to the date of any conversion, provided that if the Company is not DWAC eligible at the time of any conversion an additional 10% discount applies, and in the event the Company's common stock is not DTC eligible at the time of any conversion, an additional 5% discount applies. The JMJ Convertible Note provides that unless the Company and JMJ agree in writing, JMJ is not eligible to convert any amount of the note into common stock which would result in JMJ owning more than 4.99% of the Company's common stock. A one-time interest charge of 12% was applied to the principal amount of the note, which remains payable regardless of the repayment (or conversion) date of the note. JMJ agreed to subordinate all amounts owed to it under the JMJ Convertible Note to the amounts the Company owes to its senior lender. For so long as the JMJ Convertible Note is outstanding JMJ agreed not to effect any "short sales" of the Company's common stock. The Company agreed to use $190,000 of the amount received in connection with the sale of the JMJ Convertible Note to repay in full the Feb. 23, 2015, convertible promissory note sold to JSJ Investments Inc. In the event the Company fails to use those funds for such purpose, the Company is required to pay JMJ liquidated damages in the amount of $100,000. About Hydrocarb Energy Hydrocarb Energy, formerly known as Duma Energy Corp, is a publicly-traded Domestic and International energy exploration and production company targeting major under-explored oil and gas projects in emerging, highly prospective regions of the world. With exploration concessions in Africa, production in Galveston Bay and Oil Field Services in the United Arab Emirates, the Company maintain offices in Houston, Texas, Abu Dhabi, UAE and Windhoek, Namibia. Hydrocarb Energy reported a net loss of $6.55 million on $5.06 million of revenues for the year ended July 31, 2014, compared to a net loss of $37.5 million on $7.07 million of revenues for the year ended July 31, 2013. As of April 30, 2015, the Company had $27.6 million in total assets, $24.2 million in total liabilities and $3.4 million in total equity. "A decline in the price of our common stock could result in a reduction in the liquidity of our common stock and a reduction in our ability to raise additional capital for our operations. Because our operations to date have been largely financed through the sale of equity securities, a decline in the price of our common stock could have an adverse effect upon our liquidity and our continued operations. A reduction in our ability to raise equity capital in the future could have a material adverse effect upon our business plan and operations, including our ability to continue our current operations," the Company stated in its annual report for the year ended July 31, 2014. IDERA PHARMACEUTICALS: To Issue 6.2M Shares Under Incentive Plan ---------------------------------------------------------------- Idera Pharmaceuticals, Inc. filed a Form S-8 registration statement with the Securities and Exchange Commission to register the offer and sale of an additional 6,226,438 shares of the Company's common stock, $0.001 par value per share, to be issued under its 2013 Stock Incentive Plan, as amended. The Company separately registered 275,000 shares issuable under its Inducement Stock Option Award pursuant to a nonstatutory stock option agreement entered into with Mark Casey on June 29, 2015. About Idera Cambridge, Massachusetts-based Idera Pharmaceuticals, Inc., is a clinical stage biotechnology company engaged in the discovery and development of novel synthetic DNA- and RNA-based drug candidates that are designed to modulate immune responses mediated through Toll-like Receptors, or TLRs. The Company has two drug candidates, IMO-3100, a TLR7 and TLR9 antagonist, and IMO-8400, a TLR7, TLR8, and TLR9 antagonist, in clinical development for the treatment of autoimmune and inflammatory diseases. Idera Pharmaceuticals reported a net loss attributable to common stockholders of $39.2 million in 2014, a net loss applicable to common stockholders of $21.09 million in 2013 and a net loss applicable to common stockholders of $22.5 million in 2012. As of June 30, 2015, the Company had $109.8 million in total assets, $7.3 million in total liabilities and $102.5 million in total stockholders' equity. IMAGEWARE SYSTEMS: Posts $2.1 Million Net Loss for Second Quarter ----------------------------------------------------------------- Imageware Systems, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss available to common shareholders of $2.1 million on $1.7 million of revenues for the three months ended June 30, 2015, compared to a net loss available to common shareholders of $2.1 million on $937,000 of revenues for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss available to common shareholders of $4.6 million on $2.6 million of revenues compared to a net loss available to common shareholders of $3.7 million on $2 million of revenues for the same period last year. As of June 30, 2015, the Company had $11.1 million in total assets, $3.7 million in total liabilities and $7.4 million in total shareholders' equity. At June 30, 2015, the Company's principal sources of liquidity consisted of cash and cash equivalents of $6,448,000 and accounts receivable, net of $313,000. As of June 30, 2015, the Company had positive working capital of $5,462,000, which included $650,000 of deferred revenue. The Company has a history of recurring losses, and as of June 30, 2015, it has incurred a cumulative net loss of approximately $140,895,000. A full-text copy of the Form 10-Q is available for free at: http://is.gd/VRldzy About ImageWare Systems Headquartered in San Diego, California, ImageWare Systems, Inc., is a leader in the emerging market for software-based identity management solutions, providing biometric, secure credential, law enforcement and enterprise authorization. Its "flagship" product is the IWS Biometric Engine. Scalable for small city business or worldwide deployment, the Company's biometric engine is a multi- biometric platform that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. The Company's identification products are used to manage and issue secure credentials, including national IDs, passports, driver licenses, smart cards and access control credentials. Its law enforcement products provide law enforcement with integrated mug shot, fingerprint LiveScan and investigative capabilities. The Company also provides comprehensive authentication security software. Imageware Systems incurred a net loss of $9.84 million in 2013, a net loss of $10.2 million in 2012 and a net loss of $3.18 million in 2011. INFOR INC: S&P Rates Proposed $400MM Sr. Secured Notes 'B+' ----------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'B+' issue-level rating and '2' recovery rating to New York City-based enterprise resource planning (ERP) software provider Infor Inc.'s proposed $400 million senior secured notes due 2020. The '2' recovery rating indicates S&P's expectation for substantial recovery (70% to 90%; lower half of the range) in the event of payment default. These ratings are the same as S&P's ratings on the company's existing secured debt, but the incremental issuance results in S&P's recovery expectation for secured lenders shifting to the lower half of the 70% to 90% range. S&P's ratings on the company's unsecured debt and holding company notes are unchanged. S&P expects Infor to use the proceeds to partly fund the acquisition of a cloud-based global trade and supply chain management software provider. S&P's 'B' corporate credit rating and stable rating outlook on Infor are unchanged. The rating reflects S&P's view of the competitive ERP marketplace with significantly larger players and meaningful exposure to manufacturing and distribution end-markets, but also the company's strong position among midmarket customers. The rating also reflects S&P's view of Infor's leverage, which S&P expects to peak in the 9x area in fiscal 2016, up from the low 8x area as of April 30, 2015 pro forma for the acquisition, as EBITDA declines because of a strengthening U.S. dollar, increased costs to support software-as-a-service (SaaS) offerings, and SaaS offerings cannibalizing license sales, which S&P views favorably over the long term but which will cause revenue to decline over the next year because of differences in the revenue recognition patterns of both models. S&P expects leverage to fall to the mid- to high 8x area in 2017 on margin expansion as the company benefits from operating leverage on SaaS offerings. In fiscal years 2016 and 2017 S&P expects annual free operating cash flow (FOCF) to be above the low $200 million area and interest coverage to be in the low-2x area. S&P's forecast does not include assumptions about acquisitions, but if the company were to complete tuck-in acquisitions funded from FOCF, as it has in the past, leverage would fall more quickly than S&P expects. The stable outlook reflects S&P's view of Infor's revenue visibility, good FOCF, and interest coverage that is strong for the 'B' rating. S&P could lower the rating if increased business investment in support of the company's SaaS products or more compelling offerings from competitors result in declines in profitability, or if the company pursues an acquisition or shareholder distribution such that it sustains leverage above the 9x area. S&P is unlikely to raise the rating during the next 12 months because of the company's high leverage and S&P's view that its private equity ownership structure likely precludes sustained leverage reduction. RATINGS LIST Infor Inc. Corporate credit rating B/Stable/-- New Rating Infor Inc. $400 mil sr sec nts due 2020 B+ Recovery rating 2L INSITE VISION: Gets Unsolicited Proposal from Pharma Company ------------------------------------------------------------ InSite Vision Inc. announced that it has received an unsolicited proposal from a multi-national pharmaceutical company pharmaceutical company to acquire all outstanding shares of its common stock at a price of $0.25 per share in cash. The proposal is non-binding and is subject to further due diligence. As previously announced, InSite Vision is party to a merger agreement with QLT Inc. pursuant to which QLT would acquire InSite in an all-stock transaction in which InSite Vision's stockholders would receive 0.048 QLT shares for each share of InSite Vision that they hold. Consistent with its fiduciary duties and in accordance with its existing merger agreement with QLT, InSite Vision's Board of Directors, in consultation with its financial and legal advisors, will carefully review all aspects of the new proposal and pursue the course of action that it believes is in the best interests of InSite's stockholders. InSite's stockholders do not need to take any action at this time. InSite Vision remains subject to its existing merger agreement with QLT and the InSite Vision Board of Directors, has not changed its recommendation in support of the QLT transaction, the exiting merger agreement with QLT or its recommendation that InSite Vision stockholders adopt the existing merger agreement with QLT. Guggenheim Securities, LLC is acting as financial advisor to InSite Vision, Roth Capital Partners provided an independent fairness opinion and Jones Day is acting as legal advisor to InSite. InSite Vision Based in Alameda, California, InSite Vision Incorporated (OTCBB: INSV) -- http://www.insitevision.com/-- is committed to advancing new and superior ophthalmologic products for unmet eye care needs. The company's product portfolio utilizes InSite Vision's proven DuraSite(R) bioadhesive polymer core technology, a platform that extends the duration of drug retention on the surface of the eye, thereby reducing frequency of treatment and improving the efficacy of topically delivered drugs. Burr Pilger Mayer, Inc., in E. Palo Alto, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's recurring losses from operations, available cash balance and accumulated deficit raise substantial doubt about its ability to continue as a going concern. Insite Vision reported net income of $26.8 million in 2014 compared to net income of $5.7 million in 2013. As of March 31, 2015, the Company had $4.09 million in total assets, $12.23 million in total liabilities and a $8.13 million total stockholders' deficit. INVENTIV HEALTH: Second Quarter Conference Call Set for Aug. 17 --------------------------------------------------------------- inVentiv Health, Inc. will hold a conference call at 1:00 p.m. Eastern Time on Aug. 17, 2015, during which it will discuss the Company's financial results for the second quarter of 2015. The U.S. dial-in for the call is (800) 901-5213 ((617) 786-2962 for non-U.S. callers) and the passcode is 49616487. A replay of the conference call will be available until Aug. 24, 2015, by dialing (888) 286-8010 ((617) 801-6888 for non-U.S. calls) and the passcode is 70578543. About inVentiv Health inVentiv Health, Inc., is privately owned by inVentiv Group Holdings, Inc., an organization sponsored by affiliates of Thomas H. Lee Partners, L.P., Liberty Lane Partners and members of the inVentiv Health management team. inVentiv Health is a top-tier professional services organization that accelerates the clinical and commercial success of biopharmaceutical companies worldwide. The Company's combined Clinical Research Organization and Contract Commercial Organization helps clients improve their performance to deliver much-needed therapies to market. With 13,000 employees providing services to clients in 70 countries, inVentiv Health designs best practices, processes and systems to enable clients to successfully navigate an increasingly complex environment. - See more at: http://www.inventivhealth.com/our-company/investors#sthash.Oi040G6G.dpuf * * * As reported by the TCR on May 22, 2015, Moody's Investors Service affirmed the Caa1 Corporate Family Rating and Caa1-PD Probability of Default Rating of inVentiv Health, Inc. as well as all of the instrument ratings. The Caa1 rating reflects inVentiv's very high leverage, history of negative free cash flow and significant interest burden which will make a default event likely if the company does not significantly improve its EBITDA performance well ahead of 2018, when all of the company's debt matures. The TCR reported on Dec. 12, 2012, that Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating on Burlington, Mass.-based contract research organization (CRO) inVentiv Health Inc. JONES ENERGY: Fitch Assigns 'B' Long-term Issuer Default Rating --------------------------------------------------------------- Fitch Ratings has assigned a Long-term Issuer Default Rating of 'B' to Jones Energy Holdings, LLC (JEH), a subsidiary of Jones Energy Inc. (NYSE: JONE). The Rating Outlook is Stable. KEY RATING DRIVERS Ratings for JEH reflect a competitive full-cycle cost structure, strong hedge positions and defensive hedging philosophy, reasonable credit metrics for the category, and an adequate liquidity profile considering the 2015 investment program. Company strengths are offset by small size, geographic concentration, and the potential for sustained lower oil and natural gas prices, which places additional importance on lowering drilling and production costs and maintaining adequate hedge coverage. COMPETITIVE FULL-CYCLE COST STRUCTURE JONE has a long track record in its primary basin (Cleveland Basin, located in the OK and TX Panhandle), and has developed and improved drilling & completion techniques specific to the Cleveland. This allows the company to achieve competitive internal rates of return (IRRs) by reducing costs in a lower commodity price environment. JONE has lowered well costs approximately 32% thus far in 2015 (from $3.8 million/well to $2.6 million/well), driven largely by reductions in frac services and rig rates. JONE generated cash netbacks of $29/boe in 2014, which is competitive with liquids-focused peers. Fitch views the company's focus on returns rather than production volumes as a credit-positive considering its asset size and positioning in the context of a challenging commodity price environment. Over 80% of acreage is held by production, reducing the need to spend additional capital to hold lease positions. The company's production mix for the first half of 2015 (1H15) was 30% oil, 27% NGL, and 43% natural gas. GOOD HEDGE POSITIONS THROUGH 2016 JONE's hedge positions provide significant cash flow protection and serve to differentiate JONE from high-yield E&P peers. The company has a track record of aggressively hedging production volumes through a variety of commodity price environments. This provides increased confidence in cash flow and credit metrics forecasts due to more certainty on top-line forecasts. JONE currently has 100% of 2H15 oil hedged at $84.11/bbl. For 2016, on a barrel of oil equivalent basis, JONE has 75% of expected oil and natural gas production hedged at prices of $82.74/bbl for oil and $4.44/mcf for gas. The mark-to-market value of hedges was $220 million as of the company's 2Q earnings release on August 6. REASONABLE CREDIT METRICS As calculated by Fitch, JONE debt/EBITDA was 3.2x at June 30, 2015. Fitch expects leverage of 3.5x and 3.7x in 2015 and 2016, respectively, driven by moderately lower hedge coverage and Fitch's base case price deck. Interest coverage is expected to remain above 4x in 2015 and 2016. While out-year credit metrics will depend in part on the path of future commodity prices and the ability of JONE to economically hedge, Fitch believes that metrics will remain in line for the rating at our base case price deck (long term: $70/bbl oil, $3.75/mcf natural gas). ADEQUATE LIQUIDITY POSITIONING JONE was active in the capital markets in 1H15, issuing $123 million in equity and selling $250 million in senior notes, terming out credit facility borrowings, and bolstering liquidity. JONE had total liquidity of $485.5 million at June 30, consisting of $23 million in cash and $462.5 million available on the credit facility. The company's liquidity position is adequate relative to Fitch's cash flow forecasts, which are helped by lower capex in 2015 and cash flow uplift from hedge positions. JONE's borrowing base was affirmed at $562.5 million in April 2015, indicating that the bank group is taking a constructive view of JONE's ability to economically produce the reserve base. GEOGRAPHIC CONCENTRATION JONE's single-basis focus in the Cleveland has both positive and negative credit quality factors. On one hand, a single-asset focus has allowed the company to eke out production efficiencies and asset-specific techniques, with lower costs relative to basin peers. On the other hand, JONE is uniquely exposed to the geology of the Cleveland, including expected ultimate recoveries, decline rates, and issues including local rig availability and changes in service costs. Fitch believes the positives outweigh the negatives in the case of JONE, but a single-basin focus does serve to limit ratings upside in the near term. SMALL SIZE RELATIVE TO PEERS JONE 2015 YTD production was 25,862 barrels of oil equivalent per day, which is small relative to Fitch's actively monitored E&P peer universe. Fitch believes that, while the current rating is supported by the other factors mentioned, ratings upside will likely be limited in the near-term due to size and asset diversity issues. RECENT FINANCIAL PERFORMANCE As calculated by Fitch and including the effect of settled derivative contracts, LTM free cash flow (FCF) was negative $210 million at June 30, 2015, driven by higher capex run rates in the last half of 2014. Fitch expects that lower capex exit rates in 2015 will lead to a FCF neutral-to modestly negative position, with leverage under 4x, in the current commodity price environment. Current hedge positions will provide meaningful amounts of cash flow protection through 2016, and give the company some flexibility in managing production growth relative to changes in commodity prices. RECOVERY ANALYSIS JONE recoveries are estimated as outstanding ('RR1' - 100%) at the first-lien secured level and as average ('RR4' - 31% to 50%) at the unsecured level. Recovery estimates are influenced by reduced value estimates for oil and gas reserves. Recovery values are based on estimated liquidation values of proved (1P) reserves. Fitch begins with a standard value of $12.50/boe for an average producer based on our long-term price deck ($70/bbl oil, $3.75/mcf natural gas). Fitch makes adjustments for location and quality, oil & gas mix, as well as adjustments related to the recent decline in commodity prices. KEY ASSUMPTIONS -- WTI oil prices of $50/bbl in 2015, $60/bbl in 2016, increasing to $70/bbl in 2018; -- Natural gas prices of $3.00/mcf in 2015, increasing to $3.75/mcf in 2018; -- Production volumes grow at a 4% CAGR through 2018; -- 2015 capex is consistent with management guidance of $240 million. In out-years, capex trends in-line with the price deck and supports higher YoY production growth in 2017-2018; -- Existing hedge positions protect cash flow through 2016, with more modest protection in 2017 and 2018. RATING SENSITIVITIES Positive: Future developments that may lead to positive rating actions include: -- Growth in production volumes and EBITDA leading to production greater than 50 mboe/day and/or EBITDA over $500 million; -- Maintenance of debt/EBITDA in the 3.5x-4.0x range and debt/Proved Developed in the $14-$16/boe range; -- Maintenance of a balanced financing policy and an adequate hedging program for growth in the face of higher commodity prices. Fitch views positive rating actions as unlikely in the near term. Pressures from lower commodity prices will likely inhibit production growth, which will be a key factor in improving credit quality. Negative: Future developments that may lead to negative rating actions include: -- Debt/EBITDA sustained above 5x, driven by the inability to hedge future production at economic prices or increases in debt, -- Debt/PD of $17-$18/boe; -- Adoption of less conservative hedging policy, leading to reduced visibility on cash flows and increased vulnerability to sustained lower oil and gas prices; -- Significant reduction in liquidity following aggressive use of revolver for growth, or lower borrowing base redeterminations. FULL LIST OF RATING ACTIONS Fitch assigns the following ratings: Jones Energy Holdings, LLC (JEH) -- Long-term Issuer Default Rating (IDR) 'B'; -- Senior secured first lien revolver 'BB/RR1'; -- Senior unsecured notes 'B/RR4'. The Rating Outlook is Stable. LOST ACRES: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Lost Acres, LLC 3148 N. 400 E. Monticello, IN 47960 Case No.: 15-40390 Chapter 11 Petition Date: August 11, 2015 Court: United States Bankruptcy Court Northern District of Indiana (Hammond Division at Lafayette) Judge: Hon. Robert E. Grant Debtor's Counsel: David A. Rosenthal (VM), Esq. 410 Main Street Lafayette, IN 47901 Tel: (765) 423-5375 Fax: (765) 423-2597 Email: darlaw@nlci.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Angela M. Holbrook, member. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. MALIBU ASSOCIATES: Disclosure Statement Hearing Moved to Aug. 27 ---------------------------------------------------------------- The United States Bankruptcy Court for the Central District of California, Northern Division, approved a stipulation under which Malibu Associates, LLC, and U.S. Bank National Association agreed to reschedule to Aug. 27, 2015, the hearing on the approval of the Debtor's disclosure statement explaining its reorganization plan and U.S. Bank's motion to lift stay and motion to convert the Chapter 11 case to a Chapter 7 case. Because of the vacation schedule of Debtor's counsel, and to coordinate discovery, the parties agreed to reschedule the hearings on the Proceedings. The parties agreed to cooperate in good faith in connection with any other discovery propounded in advance of the hearings on the Proceedings. The parties further agreed that the briefing schedule on the Proceedings shall be set by the Local Bankruptcy Rules based on the continued hearing date. The Debtor is represented by: David Neale, Esq. Lindsey L. Smith, Esq. LEVENE, NEALE, BENDER, YOO & BRILL LLP 10250 Constellation Boulevard Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 FAX: (310) 229-1244 Email: dln@lnbyb.com lls@lnbyb.com U.S. Bank National Association is represented by: Joshua D. Wayser, Esq. Cristina E. Bautista, Esq KATTEN MUCHIN ROSENMAN LLP 2029 Century California East, Suite 2600 Los Angeles, California 90067-3012 Tel: (310)788-4400 Fax: (310) 788-4471 Email: joshua.wayser@kattenlaw.com cristina.bautista@kattenlaw.com About Malibu Associates Headquartered in Malibu, California, Malibu Associates, LLC, owns the Malibu Golf Club. The club has a restaurant and clubhouse, in addition to an 18-hole golf course, on its 650-acre property in the Santa Monica Mountains. Malibu Associates sought Chapter 11 protection (Bankr. C.D. Cal. Case No. 15-10477) in Santa Barbara, California, on March 10, 2015, disclosing $76.2 million in total assets and $47.8 million in total liabilities. Thomas Hix, the managing member of the Debtor, signed the bankruptcy petition. The Debtor owns real property located at 901 Encinal Canyon Road, Malibu, California. The property secures a $46.8 million debt to U.S. Bank, National Association, which is secured by a first deed of trust on the property. The Los Angeles County Treasurer and Tax Collector is also owed $459,800, secured by a tax lien on the property. The case is assigned to Judge Deborah J. Saltzman. David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, serves as counsel to the Debtor. The Debtor previously sought bankruptcy protection on Nov. 3, 2009, in the Central District of California, San Fernando Valley Division (Bankr. C.D. Cal. Case No. No. 9-24625). That case was assigned to the Honorable Maureen A. Tighe, but was later dismissed. The real property in Malibu was included in the prior filing. MALIBU ASSOCIATES: Seeks Jan. 4 Extension of Solicitation Period ---------------------------------------------------------------- Malibu Associates, LLC, asks the United States Bankruptcy Court for the Central District of California, Northern Division, to extend its exclusive period to obtain acceptances of their plan of reorganization through and including January 14, 2016. David Neale, Esq., at Levene, Neale, Bender, Yoo & Brill LLP, in Los Angeles, California, relates that the Debtor's case has some complexity to it because its property, which is the Debtor's primary asset, is a very valuable and unique Property, a sale of which is bound to be complicated. Notwithstanding, the Debtor has already filed the Plan and is solely requesting an extension of the exclusivity period to obtain acceptance of that Plan. Thomas C. Hix, the President of the co-managing member of Malibu Associates, LLC, declared that the Debtor filed a plan of reorganization and is moving forward with obtaining approval of the Disclosure Statement and thereafter intends to promptly seek confirmation of the Plan. The Debtor is represented by: David Neale, Esq. Lindsey L. Smith, Esq. LEVENE, NEALE, BENDER, YOO & BRILL LLP 10250 Constellation Boulevard Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 FAX: (310) 229-1244 Email: dln@lnbyb.com lls@lnbyb.com About Malibu Associates Headquartered in Malibu, California, Malibu Associates, LLC, owns the Malibu Golf Club. The club has a restaurant and clubhouse, in addition to an 18-hole golf course, on its 650-acre property in the Santa Monica Mountains. Malibu Associates sought Chapter 11 protection (Bankr. C.D. Cal. Case No. 15-10477) in Santa Barbara, California, on March 10, 2015, disclosing $76.2 million in total assets and $47.8 million in total liabilities. Thomas Hix, the managing member of the Debtor, signed the bankruptcy petition. The Debtor owns real property located at 901 Encinal Canyon Road, Malibu, California. The property secures a $46.8 million debt to U.S. Bank, National Association, which is secured by a first deed of trust on the property. The Los Angeles County Treasurer and Tax Collector is also owed $459,800, secured by a tax lien on the property. The case is assigned to Judge Deborah J. Saltzman. David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, serves as counsel to the Debtor. The Debtor previously sought bankruptcy protection on Nov. 3, 2009, in the Central District of California, San Fernando Valley Division (Bankr. C.D. Cal. Case No. No. 9-24625). That case was assigned to the Honorable Maureen A. Tighe, but was later dismissed. The real property in Malibu was included in the prior filing. MALIBU ASSOCIATES: U.S. Bank Wants Ch. 11 Case Converted to Ch. 7 ----------------------------------------------------------------- U.S. Bank National Association asks the United States Bankruptcy Court for the Central District of California, Northern Division, to convert the Chapter 11 case of Malibu Associates, LLC, to one under Chapter 7 of the Bankruptcy Code. The Banks asserts that the Debtor simply has been unable to manage its property -- known as 901 Encinal Canyon Road, in Malibu, California -- and the loans encumbering it. Thus, a Chapter 7 Trustee should be brought in to promptly dispose of the Property, the Bank adds. The Bank also asks the Court to lift the automatic stay to allow it to foreclose upon and obtain possession of the Malibu property. The Bank believes that the Debtor lacks equity in its sole asset -- the golf club Property -- as the Property's market value is only $15,000,000, and there is at least $49,796,422 in secured claims on the Property. Meanwhile, the Bank asserts that the value of the Property is declining, and real property taxes on the Property are unpaid and continue to accrue penalties and interest. The Property is not necessary to an effective reorganization, the Bank adds. U.S. Bank National Association is represented by: Joshua D. Wayser, Esq. Cristina E. Bautista, Esq. KATTEN MUCHIN ROSENMAN LLP 2029 Century California East, Suite 2600 Los Angeles, California 90067-3012 Tel: (310)788-4400 Fax: (310) 788-4471 Email: joshua.wayser@kattenlaw.com cristina.bautista@kattenlaw.com About Malibu Associates Headquartered in Malibu, California, Malibu Associates, LLC, owns the Malibu Golf Club. The club has a restaurant and clubhouse, in addition to an 18-hole golf course, on its 650-acre property in the Santa Monica Mountains. Malibu Associates sought Chapter 11 protection (Bankr. C.D. Cal. Case No. 15-10477) in Santa Barbara, California, on March 10, 2015, disclosing $76.2 million in total assets and $47.8 million in total liabilities. Thomas Hix, the managing member of the Debtor, signed the bankruptcy petition. The Debtor owns real property located at 901 Encinal Canyon Road, Malibu, California. The property secures a $46.8 million debt to U.S. Bank, National Association, which is secured by a first deed of trust on the property. The Los Angeles County Treasurer and Tax Collector is also owed $459,800, secured by a tax lien on the property. The case is assigned to Judge Deborah J. Saltzman. David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, serves as counsel to the Debtor. The Debtor previously sought bankruptcy protection on Nov. 3, 2009, in the Central District of California, San Fernando Valley Division (Bankr. C.D. Cal. Case No. No. 9-24625). That case was assigned to the Honorable Maureen A. Tighe, but was later dismissed. The real property in Malibu was included in the prior filing. MARINA BIOTECH: Announces $1.1-Mil. Preferred Stock Financing ------------------------------------------------------------- Marina Biotech, Inc., has entered into a definitive agreement with existing investors, led by Steven T. Newby and James H. Stebbins, for the issuance of convertible preferred stock at a conversion price equivalent to $0.40 per share of common stock resulting in gross proceeds to the company of $1.1 million. In addition, the Company will issue to the investors warrants to purchase up to 3,437,500 shares of common stock. The warrants will have an exercise price of $0.40 per share and are exercisable for a period of six years after the date of issuance. The offering is expected to close on or about Aug. 7, 2015, subject to the satisfaction of customary closing conditions. "Coming on the heels of the FDA's Fast Track designation for CEQ508, this investment will permit us to focus on business development related transactions intended to significantly improve our value and bring in non-dilutive capital," stated J. Michael French, president and chief executive officer at Marina Biotech. "We appreciate the continued confidence of our investors and the future opportunities open to us through this financing." About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. Marina Biotech reported a net loss of $6.47 million on $500,000 of license and other revenue for the year ended Dec. 31, 2014, compared to a net loss of $1.57 million on $2.11 million of license and other revenue in 2013. As of March 31, 2015, the Company had $8.04 million in total assets, $11.69 million in total liabilities and a $3.65 million total stockholders' deficit. Wolf & Company, P.C., in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing the Company has suffered recurring losses from operations, has a significant accumulated deficit and has been unable to raise sufficient capital to fund its operations through the end of 2015. This raises substantial doubt about the Company's ability to continue as a going concern, the auditors noted. MARINA BIOTECH: CEQ508 Granted FDA Fast Track Designation --------------------------------------------------------- Marina Biotech, Inc., announced that the U.S. Food and Drug Administration has granted Fast Track designation to CEQ508, an investigational RNAi therapeutic for the treatment of Familial Adenomatous Polyposis. Currently, there is no pharmaceutical approach available to treat FAP, which affects an estimated one in 10,000 people worldwide and is associated with a near 100% risk of colon cancer if untreated. In addition, the Company announced the allowance of US 13/196,436 covering the tkRNAi delivery technology - the delivery technology for CEQ508 - in the U.S. The patent broadly covers a wide range of vectors for bacterial mediated gene silencing, as well as the fundamental invasive bacterium for delivering RNA therapeutics. Fast Track is a process designed by the FDA to facilitate the development, and expedite the review of new drugs to treat serious conditions and fill an unmet medical need. Fast Track designated drugs are eligible for more frequent communication with the FDA and may receive Accelerated Approval and Priority Review. "We believe that Fast Track designation, together with Orphan Drug status previously granted by the FDA for CEQ508, provides Marina a unique opportunity to address an unmet medical need and bring CEQ508 to patients with Familial Adenomatous Polyposis as quickly as possible," said Michael French, president and chief executive officer. "The Fast Track designation for CEQ508 can significantly reduce the review time of a new drug application and therefore reduce the time to market. In addition, the recent U.S. patent allowance for the tkRNAi delivery technology expands the broad international coverage of this technology, which now includes related patents granted in Europe, Japan, Korea, Australia and Canada. Fast Track designation for CEQ508 and the further expansion of the intellectual property estate surrounding the tkRNAi platform continues to build the value of our pipeline and, in particular, our lead clinical program." Marina's START-FAP (Safety and Tolerability of An RNAi Therapeutic in Familial Adenomatous Polyposis) is a single-center, US-based study to evaluate safety and tolerability of CEQ508 in patients with FAP. The study is also evaluating the inhibition of β-catenin messenger RNA (mRNA), the gene target for CEQ508. The first two cohorts in the dose escalation phase of the START-FAP clinical trial have been completed. Six patients with FAP completed the study, three in Cohort 1 at a dose of 1×108 colony forming units (cfu)/day and three in Cohort 2 at 1×109 cfu/day. Each patient received once daily CEQ508 orally for 28 days and was monitored by study staff on a daily basis. With the support of a development/marketing partner or the receipt of sufficient direct funding, the company expects to initiate Cohort 3 in 2016. "The oral delivery of CEQ508 is unique in the RNAi and nucleic acid space," said Alan W. Dunton, MD, chief medical officer. "CEQ508 has been well tolerated and no serious adverse events have been reported. The data collected for Cohorts 1 and 2 indicates some impact on mRNA, an encouraging finding at this stage of development." About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. Marina Biotech reported a net loss of $6.47 million on $500,000 of license and other revenue for the year ended Dec. 31, 2014, compared to a net loss of $1.57 million on $2.11 million of license and other revenue in 2013. As of March 31, 2015, the Company had $8.04 million in total assets, $11.69 million in total liabilities and a $3.65 million total stockholders' deficit. Wolf & Company, P.C., in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing the Company has suffered recurring losses from operations, has a significant accumulated deficit and has been unable to raise sufficient capital to fund its operations through the end of 2015. This raises substantial doubt about the Company's ability to continue as a going concern, the auditors noted. MARKHAM, IL: S&P Puts 'BB+' GO Debt Rating on CreditWatch Negative ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it placed its 'BB+' underlying rating (SPUR) on Markham, Ill.'s previously rated general obligation (GO) debt on CreditWatch with negative implications. This action follows repeated attempts by Standard & Poor's to obtain timely information of satisfactory quality to maintain S&P's rating on the securities in accordance with its applicable criteria and policies. Failure to receive the requested information by Aug. 24, 2015 will likely result in S&P's withdrawal of the affected rating, preceded, in accordance with S&P's policies, by any change to the rating that it considers appropriate given available information. MERRIMACK PHARMACEUTICALS: Incurs $22.9 Million Net Loss in Q2 -------------------------------------------------------------- Merrimack Pharmaceuticals, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $22.9 million on $36.5 million of collaboration revenues for the three months ended June 30, 2015, compared to a net loss of $18.3 million on $27.8 million of collaboration revenues for the same period during the prior year. For the six months ended June 30, 2015, the Company reported a net loss of $57.3 million on $51.4 million of collaboration revenues compared to a net loss of $46 million on $40.8 million of collaboration revenues for the same period a year ago. As of June 30, 2015, the Company had $105 million in total assets, $248.1 million in total liabilities, $273,000 in non-controlling interest and a stockholders' deficit of $143.3 million. As of June 30, 2015, within the Company's unrestricted cash and cash equivalents, $1.4 million was cash and cash equivalents held by its majority owned subsidiary, Silver Creek Pharmaceuticals, Inc., which is consolidated for financial reporting purposes. This $1.4 million held by Silver Creek is designated for the operations of Silver Creek. A full-text copy of the Form 10-Q is available at: http://is.gd/HB9NmR About Merrimack Cambridge, Mass.-based Merrimack Pharmaceuticals, Inc., a biopharmaceutical company discovering, developing and preparing to commercialize innovative medicines consisting of novel therapeutics paired with companion diagnostics. The Company's initial focus is in the field of oncology. The Company has five programs in clinical development. In it most advanced program, the Company is conducting a pivotal Phase 3 clinical trial. Merrimack reported a net loss of $83.6 million on $103 million of collaboration revenues for the year ended Dec. 31, 2014, compared with a net loss of $131 million on $47.8 million of collaboration revenues during the prior year. MIDSTATES PETROLEUM: Amends Credit Agreement with SunTrust Bank --------------------------------------------------------------- Midstates Petroleum Company, Inc. and Midstates Petroleum Company LLC ("Midstates Sub"), a wholly owned subsidiary of Midstates, entered into an Eighth Amendment to its Second Amended and Restated Credit Agreement dated as of June 8, 2012, among Midstates, Midstates Sub, as borrower, SunTrust Bank, N.A., as administrative agent, and the lenders and other parties thereto. The Eighth Amendment increases the limitation on certain leases and lease agreements into which Midstates and Midstates Sub may enter into in any period of 12 consecutive calendar months during the life of those leases from $2,000,000 to $3,500,000. A copy of the Eight Amendment to Credit Agreement is available for free at http://is.gd/5yS7d5 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. As of Dec. 31, 2014, the Company had $2.47 billion in total assets, $2 billion in total liabilities and $466 million in total stockholders' equity. 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. MILLER BRANGUS: Case Summary & 10 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Miller Brangus LLC 106 Mission Ct Ste 402 Franklin, TN 37067 Case No.: 15-05524 Chapter 11 Petition Date: August 11, 2015 Court: United States Bankruptcy Court Middle District of Tennessee (Nashville) Judge: Hon. Keith M Lundin Debtor's Counsel: Griffin S Dunham, Esq. EMERGE LAW PLC 2021 Richard Jones Rd Suite 240, Nashville, TN 37215 Tel: 615-953-2682 Fax: 615-953-2955 Email: griffin@emergelaw.net Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by David Doyle Miller, member. A list of the Debtor's 10 largest unsecured creditors is available for free at http://bankrupt.com/misc/tnmb15-05524.pdf MISSISSIPPI PHOSPHATES: Cancels Auction After Failure to Draw Bids ------------------------------------------------------------------ Mississippi Phosphates Corp. canceled an auction for most of its assets after it did not receive any bid prior to the July 24 deadline, according to a filing it made in U.S. Bankruptcy Court for the Southern District of Mississippi. In February this year, the bankruptcy court approved a bidding process, which allowed Mississippi Phosphates to solicit offers from potential buyers. A hearing to approve the sale was initially scheduled for May 22. Prior to the hearing, the bankruptcy court issued an order, which set a new bid deadline of July 24 and a sale hearing for August 6. The court order also set a deadline of June 1 for the company to submit a proposed order to reflect a new bidding process approved by the unsecured creditors' committee, the Environmental Protection Agency, the Mississippi Department of Environmental Quality and the lenders' administrative agent STUW LLC. That date was extended to June 22, court filings show. On June 22, Mississippi Phosphates asked the court to approve the new bidding process, which incorporated key provisions of the settlement agreements it made with the unsecured creditors' committee and with government agencies, including the Justice Department, that resolve environmental issues. The key provisions included a minimum bid of $15 million in cash consideration, payment of post-petition financing, closing no later than Sept. 1, and an alternative transaction. The alternative transaction proposed a transfer of the assets of the bankruptcy estates to two trusts and a sale of those assets. The new bidding process was opposed by The Chemours Company LLC, a supplier of the company. In its objection, Chemours argued that the proposed sale and the settlement agreements together "constitute a sub rosa plan" that fails to comply with the Bankruptcy Code. In response, Mississippi Phosphates and the lenders' agent argued they did not violate the Bankruptcy Code since no distribution of the company's assets will occur pursuant to the settlements. They further said that "no requirements are imposed on any party regarding a vote on a future plan of reorganization." The new bidding process was approved on July 24, court filings show. About Mississippi Phosphates Mississippi Phosphates Corporation is a major United States producer and marketer of diammonium phosphate ("DAP"), one of the most common types of phosphate fertilizer. MPC, which was formed is a Delaware corporation in October 1990, owns a DAP facility in Pascagoula, Mississippi, which was acquired from Nu-South, Inc. in its 1990 bankruptcy. Phosphate rock, the primary raw material used in the production of DAP, is being supplied by OCP S.A., a corporation owned by the Kingdom of Morocco. The parent, Phosphate Holdings, Inc., was formed in December 2004 in connection with the bankruptcy reorganization of MPC and its then-parent Mississippi Chemical Corporation, the first fertilizer cooperative in the United States. As of Oct. 27, 2014, MPC has a work force of 250 employees, broken into 224 regular employees and 26 "nested" third-party contract employees. MPC and its subsidiaries, namely Ammonia Tank Subsidiary, Inc., and Sulfuric Acid Tanks Subsidiary, Inc., sought Chapter 11 bankruptcy protection (Bankr. S.D. Miss. Lead Case No. 14-51667) on Oct. 27, 2014. Judge Katharine M. Samson is assigned to the cases. Mississippi Phosphates disclosed $98.8 million in assets and $141 million plus an unknown amount in liabilities. Affiliates Ammonia Tank and Sulfuric Acid Tanks each estimated $1 million to $10 million in both assets and liabilities. The Debtors have tapped Stephen W. Rosenblatt, Esq., at Butler Snow LLP as counsel. The official committee of unsecured creditors tapped Burr & Forman LLP as its counsel. MOSHAASHAEE: Bid to Reconsider Appointment of Examiner Denied ------------------------------------------------------------- Judge David M. Warren of the U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, denied the emergency motion to reconsider the appointment of Johnny Bass as Chapter 11 examiner in Mehdi Moshaashaee and Leandra Colleen Moshaashaee's Chapter 11 case. The Examiner was required to investigate the Debtors' prepetition and postpetition financial affairs, as well as those of the Debtors' companies, and report the findings to the court. The Court ordered the Debtors to apprise the Examiner of all anticipated expenditures exceeding $500 and all expenditures of their companies exceeding $1,000. The Debtors argued that the Court did not have the authority to appoint the Examiner because 11 U.S.C. Section 1104(c) requires that an examiner be appointed only "on the request of a party in interest or the United States Trustee, after notice and hearing." The Debtors contend that the cost of the Examiner, which is $125 per hour, did not justify the appointment. They further contend that expenditure reporting requirement is unnecessarily burdensome and will cause irreparable harm. Judge Warren held that the Court has authority to appoint an examiner without motion or request by a party in interest. He further held that the appointment of the Examiner was not to hinder or harm the Debtors' efforts in bankruptcy, but to aid them in proceeding through their case successfully, ultimately to receive a fresh start. Judge Warren says that the benefit and protection that the Examiner can provide to the Debtors, the estate, and the creditors far outweighs the cost of the Examiner. He further says that the Court chose the Examiner over appointing a trustee in order to save costs. The case is IN RE: MEHDI MOSHAASHAEE, LEANDRA COLLEEN MOSHAASHAEE, Chapter 11, Debtor, Case No. 15-02941-5-DMW. A full-text copy of Judge Warren's Order dated Aug. 6, 2015, is available at http://is.gd/C1G7f9from Leagle.com. MOTORS LIQUIDATION: Liquidation of New GM Common Stock Completed ---------------------------------------------------------------- Wilmington Trust Company, solely in its capacity as trust administrator and trustee of the Motors Liquidation Company GUC Trust, completed sales in the aggregate of 23,748,829 shares of New GM Common Stock, comprising all of its holdings of New GM Common Stock, at a weighted average price of $31.2311 per share in the open market for a total consideration, net of transaction expenses, of $741,701,486 in cash, according to a document filed with the Securities and Exchange Commission. As of Aug. 3, 2015, the GUC Trust had completed sales in the aggregate of 19,787,128 shares of New GM Common Stock at a weighted average price of $31.2104 per share in the open market for a total consideration, net of transaction expenses, of $616,859,891 in cash. On August 4 and Aug. 5, 2015, the GUC Trust completed the liquidation of all of its shares of New GM Common Stock pursuant to the Liquidation Order, consisting of further sales in the aggregate of 3,961,701 shares of New GM Common Stock at a weighted average price of $31.5121 per share in the open market for a total additional consideration, net of transaction expenses, of $124,841,595 in cash since the filing of the Current Report on Form 8-K on Aug. 3, 2015. Pursuant to an order of the Bankruptcy Court for the Southern District of New York, Wilmington Trust received authority to, among other actions, liquidate all or substantially all of its holdings of shares of common stock, par value $0.01 per share, of General Motors Company into cash. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. On Dec. 15, 2011, Motors Liquidation Company was dissolved. On the Dissolution Date, pursuant to the Plan and the Motors Liquidation Company GUC Trust Agreement, dated March 30, 2011, between the parties thereto, the trust administrator and trustee -- GUC Trust Administrator -- of the Motors Liquidation Company GUC Trust, assumed responsibility for the affairs of and certain claims against MLC and its debtor subsidiaries that were not concluded prior to the Dissolution Date. As of March 31, 2015, Motors Liquidation had $1.01 billion in total assets, $69.23 million in total liabilities and $944.73 million in net assets in liquidation. MSAA LV PARTNERS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: MSAA LV Partners, LLC 5299 Alton Pkwy., Suite 216 Irvine, CA 92602 Case No.: 15-14589 Chapter 11 Petition Date: August 11, 2015 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Hon. August B. Landis Debtor's Bankruptcy HELLER, DRAPER, PATRICK, HORN & Counsel: DABNEY, LLC Debtor's Local Counsel: Talitha B. Gray Kozlowski GARMAN TURNER GORDON, LLP 650 White Drive, Suite 100 Las Vegas, NV 89119 Tel: (725) 777-3000 Email: tgray@gtg.legal Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Zafar Jafrey, member. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nvb15-14589.pdf MUSCLEPHARM CORP: Posts $7 Million Net Loss for Second Quarter -------------------------------------------------------------- MusclePharm Corporation filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $7 million on $50.4 million of net revenues for the three months ended June 30, 2015, compared to a net loss of $935,000 on $46.7 million of net revenue for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $14.5 million on $91.7 million of net revenue compared to net income of $1.8 million on $96.9 million of net revenue for the same peirod during the prior year. As of June 30, 2015, the Company had $75.1 million in total assets, $56.9 million in total liabilities and $18.1 million in total stockholders' equity. "MusclePharm is a company that has consistently demonstrated strong growth potential and the ability to capitalize on opportunities, illustrated by record revenue for the quarter and improved gross margin," said Brad Pyatt, MusclePharm's chief executive officer. "Sequentially our revenue has increased primarily due to organic growth with existing customers and sales from new product introductions. We closed the quarter with $8.5 million in sales backlog, illustrating consumer adoption of our brands resulting in significant continued growth potential. Our Adjusted EBITDA was $1.1 million, for which we expect to see continued improvement as we move forward in the second half of the year. We are excited by this quarter's results, and expect that our business strategy will continue to grow our top line as we work toward profitability and long-term shareholder value creation." A full-text copy of the Form 10-Q is available for free at: http://is.gd/1SpIOt About MusclePharm Headquartered in Denver, Colorado, MusclePharm Corporation (OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life- style company that develops and manufactures a full line of National Science Foundation approved nutritional supplements that are 100 percent free of banned substances. MusclePharm is sold in over 120 countries and available in over 5,000 U.S. retail outlets, including GNC and Vitamin Shoppe. MusclePharm products are also sold in over 100 online stores, including bodybuilding.com, Amazon.com and Vitacost.com. MusclePharm Corporation reported a net loss of $13.8 million in 2014, a net loss of $17.7 million in 2013 and a net loss of $19 million in 2012. NEPHROS INC: Posts $1.8 Million Net Loss for Second Quarter ----------------------------------------------------------- Nephros, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.8 million on $567,000 of total net revenues for the three months ended June 30, 2015, compared to a net loss of $5.3 million on $441,000 of total net revenues for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $1.5 million on $1.1 million of total net revenues compared to a net loss of $8.8 million on $915,000 of total net revenues for the same period during the prior year. As of June 30, 2015, the Company had $3.4 million in total assets, $9.3 million in total liabilities and a stockholders' deficit of $5.9 million. A full-text copy of the Form 10-Q is available for free at: http://is.gd/YUfIzt About Nephros River Edge, N.J.-based Nephros, Inc., is a commercial stage medical device company that develops and sells high performance liquid purification filters. Its filters, which it calls ultrafilters, are primarily used in dialysis centers and healthcare facilities for the production of ultrapure water and bicarbonate. Nephros reported a net loss of $7.37 million on $1.74 million of total net revenues for the year ended Dec. 31, 2014, compared to net income of $1.32 million on $1.74 million of total net revenues for the year ended Dec. 31, 2013. Withum Smith+Brown PC, in Morristown, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has incurred negative cash flow from operations and recurring net losses since inception. These conditions, among others, raise substantial doubt about its ability to continue as a going concern. NII HOLDINGS: Reports Financial Results for 2nd Quarter 2015 ------------------------------------------------------------ NII Holdings, Inc. on Aug. 7 announced its consolidated financial results for the second quarter of 2015. The Company reported a net loss of 64,000 subscribers for the quarter as iDEN subscriber losses in Brazil and Argentina exceeded 3G net additions in Brazil. The Company ended the quarter with 6.3 million total subscribers, a 2 percent increase from a year ago. For the quarter, the Company generated consolidated operating revenues of $421 million, a consolidated adjusted OIBDA loss of $75 million, and a consolidated operating loss of $179 million. Capital expenditures were $58 million for the quarter. The Company's consolidated adjusted OIBDA excludes the impact of non-cash asset impairments, restructuring charges and other unusual items. The Company ended the quarter with $672 million in consolidated cash, cash equivalents and short-term investments. The Company's results for the second quarter of 2015 exclude the Company's operations in Mexico that were sold to AT&T on April 30, 2015 and reflect the implementation of fresh start accounting in connection with its emergence from bankruptcy on June 26, 2015. "We are disappointed in our performance during the second quarter including the sequential decline in our adjusted OIBDA, which fell short of our expectations due to our inability to deliver on our revenue growth goals," said Steve Shindler, NII Holdings' chief executive officer. "Subscriber growth on our 3G network in Brazil was offset by iDEN subscriber losses in both Brazil and Argentina. Our results reflect the impact of a challenging macroeconomic environment that is affecting the entire wireless industry as well as the deterioration in foreign currency exchange rates that are expected to continue to affect our businesses in Brazil and Argentina for the remainder of 2015. Our results to date and the negative economic outlook put us well behind the goals we set for ourselves in the business plan that was developed last year in connection with our Chapter 11 restructuring process. We are implementing contingency plans designed to help us reach our long-term goals, but our focus for the remainder of this year will be to build our 3G subscriber base in Brazil and pursue cost saving strategies to help improve our profitability." NII Holdings' consolidated average monthly service revenue per subscriber (ARPU) was $19 for the second quarter of 2015, down from $25 in the same quarter last year, due to the year over year decline in local currency values. The Company's consolidated average monthly churn rate for the quarter increased to 3.69 percent from 3.30 percent in the second quarter last year due to an increase in iDEN subscriber churn in both Brazil and Argentina. Consolidated cost per gross addition (CPGA) was $176 for the second quarter of 2015, a $34 decrease from the year ago period, primarily due to an increase in new 3G postpaid subscribers in Brazil who use their own handsets rather than purchasing a new one from the Company. "During the quarter we successfully emerged from bankruptcy as a more streamlined company focused on creating value through driving quality subscriber growth," said Juan Figuereo, NII Holdings' executive vice president and chief financial officer. "We believe in the long-term opportunity in Brazil, but anticipate that our financial results will continue to be volatile in the near-term as we strive to capture that opportunity in an uncertain economic environment. We will deal with that volatility using the same disciplined process that we used to manage our liquidity during our restructuring process, prioritizing our investments while delivering an outstanding customer experience using our high quality network in Brazil." The Company will not provide a financial outlook and will not host financial results conference calls for the remainder of 2015 due to the challenging economic conditions, foreign currency exchange rate volatility, and the recently announced transitions in its management team. The Company currently expects to be in a position to provide additional details about its business outlook in connection with its report of fourth quarter and year-end 2015 results. About NII Holdings, Inc. NII Holdings Inc. through its subsidiaries provides wireless communication services for businesses and consumers in Brazil, Mexico and Argentina. NII Holdings has the exclusive right to use the Nextel brand in its markets pursuant to a trademark license agreement with Sprint Corporation and offers unique push-to-talk ("PTT") services associated with the Nextel brand in Latin America. NII Holdings' shares of common stock, par value $0.001, are publicly traded under the symbol NIHD on the NASDAQ Global Select Market. NII Holdings and its affiliated debtors sought bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 14-12611) in Manhattan on Sept. 15, 2014. The Debtors' cases are jointly administered and are assigned to Judge Shelley C. Chapman. The Debtors tapped Jones Day's Scott J. Greenberg, Esq. and Michael J. Cohen, Esq., as counsel and Prime Clerk LLC as claims and noticing agent. NII Holdings disclosed $1.22 billion in assets and $3.068 billion in liabilities as of the Chapter 11 filing. The U.S. Trustee for Region 2 appointed five creditors of NII Holdings to serve on the official committee of unsecured creditors. The panel is represented by Kenneth H. Eckstein, Esq. and Adam C. Rogoff, Esq. of Kramer Levin Naftalis & Frankel LLP. Kurtzman Carson Consultants LLC is the panel's information agent. On Jan. 26, 2015, the Debtors reached an agreement for the sale of their operations in Mexico, operated by non-debtor Comunicaciones Nextel de Mexico, S.A. de C.V., to an affiliate of AT&T for $1.875 billion, subject to adjustments. The sale was approved on March 23, 2015, and completed on April 30, 2015. On June 19, 2015, Judge Shelley C. Chapman confirmed the First Amended Joint Plan of Reorganization proposed by the Debtors and the Creditors' Committee. The Plan embodies the sale transaction. Under the Plan, approximately 100 million shares of NII Holdings' new common stock and $745 million in cash will be distributed to holders of senior notes issued by the Company's subsidiaries, NII Capital Corp. and NII International Telecom S.C.A. The Company has applied to list the shares of NII Holdings' new common stock on the NASDAQ Stock Exchange. The Plan was declared effective on June 26, 2015, signalling the emergence of NII Holdings, et al., from the bankruptcy proceedings. OWENS-BROCKWAY GLASS: S&P Rates New $1BB Sr. Notes 'BB' ------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' issue-level rating and '5' recovery rating to Owens-Brockway Glass Container Inc.'s proposed $1 billion senior notes, which the company will issue with varying maturities, and placed the issue rating on CreditWatch with negative implications. If the Vitro acquisition is completed as proposed, S&P plans to lower its corporate credit rating and issue-level ratings on the company by one notch and remove them from CreditWatch. The '5' recovery rating indicates S&P's expectation of modest (10%-30%; upper half of the range) recovery in the event of a payment default. Owens-Brockway Glass Container Inc. is a subsidiary of Owens-Illinois Inc. The company will use the proceeds from this offering, along with $1.25 billion in proposed term loans, to fund its acquisition of Vitro S.A.B. de C.V.'s (Vitro) food and beverage glass container business. S&P's ratings on Owens-Illinois Inc. remain on CreditWatch, where S&P placed them with negative implications on May 13, 2015, following the company's announcement that it has reached a definitive agreement with Vitro to acquire the firm's food and beverage glass container business in an all-cash transaction valued at approximately $2.15 billion. The acquisition is being financed with $1.25 billion in proposed term loans and $1 billion in proposed unsecured notes. Upon the completion of the Vitro acquisition, which is subject to regulatory approval and expected to close in the second half of 2015, S&P expects to lower its corporate credit rating on Owens-Illinois to 'BB' and assign a stable outlook. Accordingly, S&P also expects to lower its issue-level ratings on the company's debt by one notch. Owens-Illinois is a global leader in glass packaging, with leading market shares in each of its four regions--North America, Europe, South America, and Asia-Pacific. RATINGS LIST Owens-Illinois Inc. Corporate Credit Rating BB+/Watch Neg/-- Ratings Assigned; CreditWatch Action Owens-Brockway Glass Container Inc. Proposed $1 Bil. Snr Notes BB/Watch Neg Recovery Rating 5H OXFORD RESOURCE: Westmoreland Holds 93.8% Equity Interests ---------------------------------------------------------- Westmoreland Coal Company disclosed in an amended Schedule 13D filed with the Securities and Exchange Commission that as of Aug. 1, 2015, it beneficially owned 19,820,008 shares of common stock of Westmoreland Resource Partners, LP. On Aug. 1, 2015, pursuant to the terms of the Amended and Restated Contribution Agreement, dated July 31, 2015, between the Issuer and WCC, WCC made the Contribution to the Issuer in exchange for 15,251,989 Series A Units of the Issuer and $115 million in cash, which the Issuer funded with borrowings under its credit facility. WCC purchased Warrants to acquire a total of 55,519 Common Units in June 2015, consisting of a Warrant to acquire 11,659 Common Units from A54 Acquisition-B LLC on June 10, 2015, and a Warrant to acquire 43,860 Common Units from A54 Acquisition LLC on June 11, 2015, for a total purchase price of $627,365. WCC funded the purchase price for the Warrants with available cash on hand. Together with the Common Units previously held by WCC, the Series A Units and the Warrants purchased by WCC represent an aggregate of 93.8% of the Issuer's outstanding equity interests on a fully diluted basis. A copy of the regulatory filing is available for free at: http://is.gd/w0bWM4 About Oxford Resource Columbus, Ohio-based Oxford Resource Resource Partners, LP, is a low-cost producer of high value steam coal, and is the largest producer of surface mined coal in Ohio. The Company reported a net loss of $20.2 million on $287 million of revenues for the nine months ended Sept. 30, 2012, compared with a net loss of $4 million on $304.1 million of revenues for the same period of 2011. The Company's balance sheet at Sept. 30, 2014, showed $203.9 million in total assets, $218 million in total liabilities, and a partners' deficit of $14.2 million. PARKVIEW ADVENTIST: Court Declines Appointment of PCO ----------------------------------------------------- Judge Peter G. Cary of the U.S. Bankruptcy Court for the District of Maine exercised its discretion and declined to appoint a patient care ombudsman for Parkview Adventist Medical Center following a hearing held on July 8, 2015, where Judge Cary found and determined that his order for the Debtor to show cause why a PCO must not be appointed in the case has been satisfied by the presentation of good and sufficient evidence supporting a declination to appoint a PCO. The Debtor, in response to the Court's show cause order, explained that the appointment of a PCO is not necessary for the protection of patients under the specific facts of its case. The Debtor said the additional cost to the estate of an appointed PCO is an unnecessary expense and would further divert the Debtor's limited resources from patient care related activities. Judge Cary said his Order is entered without prejudice to the right of the United States Trustee to seek the appointment of a PCO in the future, upon due notice and after hearing, should it determine that circumstances warrant a request for an appointment. The Debtor is represented by: George J. Marcus, Esq. Jennie L. Clegg, Esq. David C. Johnson, Esq. Andrew C. Helman, Esq. MARCUS, CLEGG & MISTRETTA, P.A. One Canal Plaza, Suite 600 Portland, ME 04101 Tel: (207) 828-8000 Fax: (207)-773-3210 Email: gmarcus@mcm-law.com Jclegg@mcm-law.com djohnson@mcm-law.com ahelman@mcm-law.com About Parkview Adventist Parkview Adventist Medical Center, a Maine non-profit corporation, operates the Parkview Hospital, a faith-based acute care community hospital located in Brunswick, Maine, affiliated with the Seventh Day Adventist Church. Its mission is to provide services supporting the physical, emotional and spiritual wellness of its patients. Parkview sought Chapter 11 protection (Bankr. D. Maine Case No. 15-20442) in Portland, Maine, on June 16, 2015. The case is assigned to Judge Peter G Cary. The Debtor estimated $10 million to $50 million in assets and debt. The deadline for filing claims is Oct. 7, 2015. The Debtor's plan and disclosure statement are due Oct. 14, 2015. The Debtor is represented by George J. Marcus, Esq., at Marcus, Clegg & Mistretta, PA, in Portlane, Maine. PARKVIEW ADVENTIST: Wants Skelton Taintor DQ'd as CMHC Counsel -------------------------------------------------------------- The Parkview Adventist Medical Center asks the U.S. Bankruptcy Court for the District of Maine to disqualify the law firm of Skelton, Taintor & Abbott from serving as counsel to Central Maine Healthcare Corporation and its affiliated entities. The Debtor explains that ST&A has represented Parkview on a number of separate occasions, two of which create a conflict of interest with respect to its continued representation of CMHC. Specifically, in 2006, Parkview retained ST&A and Michael R. Poulin, Esq., of that firm to advise it with respect to a potential unfriendly merger with Midcoast Hospital. During the course of that representation ST&A and Mr. Poulin developed a detailed strategy for defeating any attempt by Midcoast Hospital to form a combination with Parkview. In addition, in 2010, while Parkview was negotiating its loan documents with MHHEFA, Parkview sought and received advice from ST&A and Mr. Poulin regarding certain provisions in the MHHEFA loan documents. The Debtor asserts that ST&A cannot now advise CMHC on exactly the same issues that were the subject of the prior representation. CMHC, in response, argues that ST&A did receive confidential information from the 2006 representation and that ST&A did not provide any legal services to Parkview in 2010, thus, there is no ethical issue raised by ST&A's continued representation of its longstanding client, CMHC, in the Debtor's bankruptcy proceeding. The Debtor responded back, arguing that CMHC misapprehends the import of Maine Rule of Professional Conduct 1.9, which prohibits a lawyer who has formally represented a client from thereafter representing another person in the same or substantially related matter in which that person's interests are materially adverse to the interests of the former client. It would be highly prejudicial to Parkview to allow ST&A to continue to represent CMHC in this proceeding, the Debtor asserted. Central Maine Healthcare Corporation is represented by: Michael R. Poulin, Esq Skelton, Taintor & Abbott 95 Main Street Auburn, ME 04210 Tel: (207)784-3200 Email: mpoulin@sta-law.com The Debtor is represented by: George J. Marcus, Esq. Jennie L. Clegg, Esq. David C. Johnson, Esq. Andrew C. Helman, Esq. MARCUS, CLEGG & MISTRETTA, P.A. One Canal Plaza, Suite 600 Portland, ME 04101 Tel: (207) 828-8000 Fax: (207)-773-3210 Email: gmarcus@mcm-law.com Jclegg@mcm-law.com djohnson@mcm-law.com ahelman@mcm-law.com About Parkview Adventist Parkview Adventist Medical Center, a Maine non-profit corporation, operates the Parkview Hospital, a faith-based acute care community hospital located in Brunswick, Maine, affiliated with the Seventh Day Adventist Church. Its mission is to provide services supporting the physical, emotional and spiritual wellness of its patients. Parkview sought Chapter 11 protection (Bankr. D. Maine Case No. 15-20442) in Portland, Maine, on June 16, 2015. The case is assigned to Judge Peter G Cary. The Debtor estimated $10 million to $50 million in assets and debt. The deadline for filing claims is Oct. 7, 2015. The Debtor's plan and disclosure statement are due Oct. 14, 2015. The Debtor is represented by George J. Marcus, Esq., at Marcus, Clegg & Mistretta, PA, in Portlane, Maine. PARU SELVAM: Default Judgment and Receiver Appointment Upheld ------------------------------------------------------------- Judge J. Donovan of the Court of Appeals of Ohio, Second District, Montgomery County affirmed the granting of default judgment in favor of Trustee, Lloyd T. Whitaker, as well as the appointment of Jonathan F. Hung, of the law firm of Green and Green Lawyers, as Receiver. Paru Selvam L.L.C., Siddhar Peedham Inc., and Ashok Spiritual Healing Center contend that the trial court erred in granting the default judgment in favor of the appellee because the trial court overlooked the fact that at least one of the Appellants had in fact appeared, back on July 24, 2013 and defended the case by filing its objection to the magistrate's decision. The Appellants further contend that the trial court erred in appointing a receiver because the trial court did not find by clear and convincing evidence that a receiver was appropriate. Judge Donovan held that the Court's adjudication of the Appellants' direct appeal, which affirmed the grant of default judgment in favor of Appellee, required the denial of their motion to vacate the default judgment. Judge Donovan concluded that the Trustee presented clear and convincing evidence in support of the appointment of Mr. Hung, namely that the Trustee possessed a judgment lien of substantial amount, and that the Key Bank Building lacked utilities and insurance, and was not being taken care of, such that Hung's appointment was necessary to preserve the property, ready it for sale, and subject it to the Trustee's claim pursuant to R.C. 2735.01. The case is LLOYD T. WHITAKER, TRUSTEE, et. al., Plaintiffs-Appellees, v. PARU SELVAM, LLC, et. al., Defendants-Appellants, C.A. No. 26555. A full-text copy of Judge Donovan's Opinion dated Aug. 7, 2015, is available at http://is.gd/cwgN95from Leagle.com. Llyod Whitaker, Trustee, is represented by: Ronald J. Kozar, Esq. Kettering Tower, Suite 2830 40 N. Main Street Dayton, OH 45423 Telephone: (937)222-6764 Facsimile: (937)222-6765 E-mail: ronald.kozar@gmail.com Paru Selvam, LLC, Ashok Spiritual Healing Center, Siddhar Peedam, Inc. are represented by: Stephen P. Linnen, Esq. 605 N. High Street, #612 Columbus, OH 43215 Telephone: (614)448-5182 E-mail: spl@linnenlawfirm.com PHOTOMEDEX INC: Posts $6 Million Net Income in Second Quarter ------------------------------------------------------------- PhotMedex, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $6 million on $19.9 million of revenues for the three months ended June 30, 2015, compared to a net loss of $7.5 million on $31.8 million of revenues for the three months ended June 30, 2014. For the six months neded June 30, 2015, the Company reported a net loss of $3.9 million on $40.6 million of revenues compared to a net loss of $7.8 million on $75.8 million of revenues for the same period during the prior year. As of June 30, 2015, the Company had $67.7 million in total assets, $23.9 million in total liabilities and $43.8 million in total stockholders' equity. "With the sale of the XTRAC business on June 23, 2015 enabling the extinguishment of all our outstanding bank debt, we are now focused on addressing the challenges that have affected our consumer business and on implementing the strategies and tactics we believe will improve its performance. We are pleased to have held another successful 24-hour live television home shopping weekday sales event in the U.S. earlier this month, during which consumers purchased more than $3 million of retail sales of no!no! Hair. This event highlighted the unique benefits of no!no! compared with other home hair removal treatments, and we offered a well-received summertime animal print special edition. This most recent television home shopping sales event builds upon similarly successful events held in May in the U.S. and in June in the UK," said Dr. Dolev Rafaeli, PhotoMedex CEO. As of June 30, 2015, the Company had cash, cash equivalents and short-term investments of $4.4 million including $0.8 million of restricted cash, compared with $10.4 million of unrestricted cash as of Dec. 31, 2014. A full-text copy of the Form 10-Q is available for free at: http://is.gd/eUS8hH About PhotoMedex PhotoMedex, Inc., is a global health products and services company providing integrated disease management and aesthetic solutions to dermatologists, professional aestheticians, ophthalmologists, optometrists, consumers and patients. The Company provides proprietary products and services that address skin conditions including psoriasis, vitiligo, acne, actinic keratosis, photo damage and unwanted hair, as well as fixed-site laser vision correction services at our LasikPlus(R) vision centers. PhotoMedex and its subsidiaries has entered into a second amended and restated forbearance agreement with the lenders that are parties to the credit agreement dated May 12, 2014, and with JP Morgan Chase, as administrative agent for the Lenders pursuant to which the Lender have agreed to forbear from exercising their rights and remedies with respect to certain events of default from Aug. 25, 2014, until April 1, 2016, or earlier if an event of default occurs, according to a document filed with the Securities and Exchange Commission in March 2015. Bankruptcy Warning "If, in the future, PhotoMedex is required to obtain similar forbearance agreements as a result of our inability to meet the terms of the credit agreement, there can be no assurance that those forbearance agreements will be available on commercially reasonable terms or at all. If, as or when required, we are unable to repay, refinance or restructure our indebtedness under those credit facilities, or amend the covenants contained therein, the lenders could elect to terminate their commitments under the credit facilities and institute foreclosure proceedings against our assets. Under such circumstances, we could be forced into bankruptcy or liquidation. In addition, any additional events of default or declaration of acceleration under one of those facilities or the forbearance agreement could also result in an event of default under one or more of these agreements. Such a declaration would have a material adverse impact on our liquidity, financial position and results of operations," the Company stated in its 2014 annual report. PLY GEM HOLDINGS: Reports $30.4M Net Income for Second Quarter -------------------------------------------------------------- Ply Gem Holdings, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $30.4 million on $502.3 million of net sales for the three months ended July 4, 2015, compared to net income of $11.4 million on $409.2 million of net sales for the three months ended June 28, 2014. For the six months ended July 4, 2015, the Company repored a net loss of $18.5 million on $878.4 million of net sales compared to a net loss of $40.2 million on $678.6 million of net sales for the six months ended June 28, 2014. The Company's balance sheet at July 4, 2015, showed $1.3 billion in total assets, $1.4 billion in total liabilities and a stockholders' deficit of $119.5 million. "I am pleased with our second quarter performance as both business segments made substantial contributions to adjusted EBITDA," said Gary E. Robinette, Ply Gem's Chairman and CEO. "While extreme winter weather caused a slow start to the spring building season, volumes rebounded nicely and allowed us to deliver the fifth consecutive quarterly year-over-year growth of both net sales and adjusted EBITDA. While we anticipate the housing market to continue experiencing near-term choppiness, we remain encouraged by the macro-economic trends that support the long-term recovery of the housing industry and Ply Gem is well positioned to participate in the recovery." Commenting on the Company's results, Shawn K. Poe, Ply Gem's chief financial officer added, "Both of our business segments made significant strides in improving the Company's profitability this quarter. Excluding the impact of acquisitions, we achieved a 280 basis point improvement in our gross profit margin as a result of our improved pricing and operational performance initiatives, which resulted in our best gross profit margin since the third quarter of 2009. In addition, our second quarter adjusted EBITDA was at its highest level since the second quarter of 2007." "We intend to fund our ongoing capital and working capital requirements, including our internal growth, through a combination of cash flows from operations and, if necessary, from borrowings under our ABL Facility. We believe that we will continue to meet our liquidity requirements over the next 12 months. We believe that our operating units are positive cash flow generating units and will continue to sustain their operations without any significant liquidity concerns. The performance of these operating units is significantly impacted by the performance of the housing industry, specifically single family housing starts and the repair and remodeling activity. Any unforeseen or unanticipated downturn in the housing industry could have a negative impact on our liquidity position," the Company stated in the Form 10-Q report. A full-text copy of the Quarterly Report is available at: http://is.gd/Clqdri About Ply Gem Based in Cary, North Carolina, Ply Gem Holdings Inc. is a diversified manufacturer of residential and commercial building products, which are sold primarily in the United States and Canada, and include a wide variety of products for the residential and commercial construction, the do-it-yourself and the professional remodeling and renovation markets. Ply Gem reported a net loss of $31.3 million on $1.56 billion of net sales for the year ended Dec. 31, 2014, compared to a net loss of $79.5 million on $1.36 billion of net sales for the year ended Dec. 31, 2013. * * * In May 2010, Standard & Poor's Ratings Services raised its (unsolicited) corporate credit rating on Ply Gem to 'B-' from 'CCC+'. "The ratings upgrade reflects our expectation that the Company's credit measures are likely to improve modestly over the next several quarters to levels that we would consider more in line with the 'B-' corporate credit rating," said Standard & Poor's credit analyst Tobias Crabtree. PROSPECT SQUARE: Court Dismisses Ch. 11 --------------------------------------- Judge Elizabeth E. Brown of the U.S. Bankruptcy Court for the District of Colorado dismissed the Chapter 11 cases of Prospect Square 07 A, LLC, et. al., and overruled the Limited Objection filed by MSCI 2007-IQ 16 Retail 9654. As previously reported by The Troubled Company Reporter, Patrick S. Layng, U.S. Trustee for Region 19, asked the Court to dismiss the Chapter 11 cases of the Debtors as there appears to be no assets that can be administered for the benefit of unsecured creditors. Daniel Morse, Assistant U.S. Trustee, told the Court that as a result of an order granting the motion for relief from stay on the Debtors' primary asset dated February 17, 2015, there appears to have been a substantial diminishment of the bankruptcy estate. Mr. Morse further told the Court that the continued accrual of administrative expenses, including U.S. Trustee quarterly fees and professional fees, is also diminishing the bankruptcy estate. He adds that the entry of the Stay Relief Order leaves Debtor unable to rehabilitate itself. MSCI 2007-IQ16 did not object to the dismissal of the bankruptcy case as requested by the U.S. Trustee, but objected to the form of the order and requested that the Court enter an order specifically providing that the order approving its Settlement with the Debtors and the Settlement Agreement survive the dismissal of the bankruptcy cases. About Prospect Square Prospect Square 07 A, LLC, and related entities sought Chapter 11 bankruptcy protection from creditors (Bankr. D. Colo. Lead Case No. 14-10896) in Denver on Jan. 29, 2014. Prospect Square 07 A is a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B) with principal assets located at 9690 Colerain Avenue, Cincinnati, Ohio. The Debtor listed $16 million in assets and more than $12 million in liabilities. Lee M. Kutner, Esq., at Kutner Brinen Garber, P.C., in Denver, serves as the Debtors' counsel. Lender MSCI 2007-IQ16 Retail 9654, LLC, is represented by James T. Markus, Esq., and Jeffery O. McAnallen, Esq., at Markus Williams Young & Zimmermann LLC. The U.S. Trustee for Region 19 said that no committee of unsecured creditors for the case was formed since there were too few creditors who are willing to serve on the committee. RETROPHIN INC: Incurs $25.5 Million Net Loss in Second Quarter -------------------------------------------------------------- Retrophin, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $25.5 million on $24 million of net product sales for the three months ended June 30, 2015, compared to net income of $11.8 million on $5.7 million of net product sales for the same period a year ago. For the six months ended June 30, 2015, the Company reported net income of $14.1 million on $41.4 million of net product sales compared to a net loss of $63.9 million on $5.7 million of net product sales for the same period during the prior year. As of June 30, 2015, the Company had $425.1 million in total assets, $274.3 million in total liabilities and $150.7 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/9Tsa2B About Retrophin Retrophin, Inc., develops, acquires and commercializes therapies for the treatment of serious, catastrophic or rare diseases. The Company offers Chenodal(R), a treatment for gallstones; Vecamyl(R), a treatment for moderately severe to severe essential hypertension and uncomplicated cases of malignant hypertension; and Thiola, for the prevention of kidney stone formation in patients with severe homozygous cystinuria. Retrophin reported a net loss of $111 million in 2014 following a net loss of $34.6 million in 2013. BDO USA, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014. The accounting firm noted that the Company has suffered recurring losses from operations, used significant amounts of cash in its operations, and expects continuing future losses. In addition, at Dec. 31, 2014, the Company had deficiencies in working capital and net assets of $70.2 million and $37.3 million, respectively. Finally, while the Company was in compliance with its debt covenants at Dec. 31, 2014, it expects to not be in compliance with these covenants in 2015. These matters raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. REYES: Ch. 11 Case Dismissed, Filed in Bad Faith ------------------------------------------------ Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York granted the motion to dismiss the Chapter 11 case, which was filed by Jo Anne Simon, as trustee of the Gerald Arthur Living Trust. Ms. Simon argued that Debtor David Francis Charles Reyes filed the chapter 11 case in "bad faith" as a litigation tactic for the sole purpose of transferring the state court litigations to the Bankruptcy Court. She says that the debtor had few debts, was not being pressed for payment by the few creditors that he did have and had no ability to reorganize. Ms. Simon further argued that although she was not a creditor, she was nonetheless a party-in-interest because her rights individually and as a Trustee were affected by the filing of the bankruptcy case and the removal of the Surrogate's Court proceedings to which she was a party. Judge Bernstein held that the Trustee was a party-in-interest because she was aggrieved by the filing of the chapter 11 case and the dismissal of the case will relieve her of the harm caused by the filing of the case. He adds that Ms. Simon asserted her own rights as Trustee and satisfied the requirement for prudential standing. Judge Bernstein further held that the most significant badge of bad faith in the case is that the debtor filed the bankruptcy case solely as a litigation tactic to try the dispute in a forum he deemed more favorable. He says that the debtor concedes that he filed the chapter 11 case in order to litigate his rights in the Bankruptcy Court instead of the Surrogate's Court. Judge Bernstein decided against imposing sanctions on the Debtor and his lawyer, Brian M. DeLaurentis, saying that although the Debtor and DeLaurentis filed the petition for an improper purpose, they were not seeking to delay or harass Simon or anyone else. He further says that they were trying to expedite the determination of the Debtor's rights. Judge Bernstein adds that the Debtor, though more probably DeLaurentis, clung to the sincere if misguided belief that Ms. Simon's position as a member of the New York State Assembly and the Assembly's Judiciary Committee would so affect the Surrogate as to preclude an impartial decision. He says that the fault was not raising the issue with the Surrogate's Court, and instead, filing the bankruptcy case and removing the litigation to the Bankruptcy Court as a means of avoiding the perceived bias. The case is In re: DAVID FRANCIS CHARLES REYES, Chapter 11, Debtor, Case No. 14-13233 (SMB). A full-text copy of Judge Bernstein's Memorandum Decision Granting Motion To Dismiss The Case And Denying Sanctions, dated Aug. 4, 2015, is available at http://is.gd/nRCo0dfrom Leagle.com. Jo Anne Simon, Trustee of the Gerald Arthur Living Trust, is represented by: Bruce Weiner, Esq. ROSENBURG, MUSSO & WEINER LLP 26 Court St., Suite 2211 Brooklyn, NY 11242-1125 Telephone: (718)855-6840 Facsimile: (718)625-1966 David Francis Charles Reyes is represented by: Brian M. DeLaurentis, Esq. BRIAN M. DELAURENTIS P.C. 36 West 44th Street, Suite 911 New York, NY 10036 Telephone: (212)354-6300 Facsimile: (212)954-5081 E-mail: Brian@DeLaurentisLaw.com David Carraway is represented by: Duncan Peterson, Esq. PETERSON DELLECAVE LLP 233 Broadway, Suite 1800 New York , NY 10279 Telephone: (212)240-9075 E-mail: info@petersondellecave.com RICHCOURT EURO: Chapter 15 Case Summary --------------------------------------- Chapter 15 Petitioners: John D. Ayres and Matthew Wright, in their capacity as joint liquidators Chapter 15 Debtors Case No. ------------------ -------- America Alternative Investments Inc. 15-12268 c/o Intertrust Corporate Services Ltd. 171 Main Street P.O. Box 92 Road Town VG1110 Tortola, British Virgin Islands Optima Absolute Return Fund Ltd 15-12269 Richcourt Allweather B Inc. 15-12270 Richcourt Allweather Fund Inc 15-12271 Richcourt Composite Inc. 15-12272 Richcourt Euro Strategies Inc. 15-12273 Type of Business: Open-ended investment companies Chapter 15 Petition Date: August 12, 2015 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Chapter 15 Petitioners' Counsel: Steven J. Reisman, Esq. L. P. Harrison 3rd, Esq. James V. Drew, Esq. Lauren Tauro, Esq. CURTIS, MALLET-PREVOST, COLT & MOSLE LLP 101 Park Avenue New York, NY 10178 Tel: 212-696-6065 Fax: (212) 697-1559 Email: sreisman@curtis.com lharrison@curtis.com jdrew@curtis.com ltauro@curtis.com Estimated Estimated Assets Liabilities ----------- ----------- America Alternative Investments $100K-$500K $10MM-$50MM Richcourt Euro Strategies $1MM-$10MM $1MM-$10MM SABINE OIL: Taps Lazard Freres as Investment Banker --------------------------------------------------- Sabine Oil & Gas Corporation and its debtor-affiliates ask the Honorable Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York for permission to employ Lazard Freres & Co. LLC as their investment banker. The firm will: a) review and analyze the Debtors' business, operations, and financial projections; b) evaluate the Debtors' potential debt capacity in light of its projected cash flows; c) assist in the determination of a capital structure for the Debtors; d) assist in the determination of a range of values for the Debtors on a going concern basis; e) advise the Debtors on tactics and strategies for negotiating with the stakeholders; f) render financial advice to the Debtors and participating in meetings or negotiations with the Stakeholders and rating agencies or other appropriate parties in connection with any Restructuring; g) advise the Debtors on the timing, nature, and terms of new securities, other consideration, or other inducements to be offered pursuant to any restructuring; h) advise and assist the Debtors in evaluating any potential Financing transaction by the Debtors, and subject to Lazard's agreement so to act and, if requested by Lazard, to execution of appropriate agreements, on behalf of the Debtors, contacting potential sources of capital as the Debtors may designate and assisting the Debtors in implementing such Financing; i) assists the Debtors in preparing documentation within Lazard's area of expertise that is required in connection with any restructuring; j) attends meetings of the Debtors' board of directors with respect to matters on which Lazard has been engaged to advise pursuant to the engagement letter; k) provide testimony, as necessary, with respect to matters on which Lazard has been engaged to advise pursuant to the engagement letter in any proceeding before the Bankruptcy Court; and l) provide the Debtors with other financial restructuring advice. The firm will be paid: a) Monthly Fee: A monthly fee of $150,000, payable on the first day of each month (commencing March 1, 2015) until the earlier of the consummation of the Restructuring (other than an amendment or the termination of Lazard's engagement pursuant to the Engagement Letter. One-half of the Monthly Fees paid in excess of $1.8 million shall be credited against any Restructuring Fee, Amendment Fee, or Financing Fee subsequently payable; provided that in the event of a chapter 11 filing, such credit shall only apply to the extent that such fees are approved by the Bankruptcy Court, if applicable. Notwithstanding the foregoing, the Debtors may suspend the Monthly Fee once for a period up to six-months in which services will not be requested. If the Debtors do so suspend, Monthly Fees will be resumed when services are requested. b. Restructuring Fee: A fee equal to $7.5 million, payable upon the consummation of a Restructuring; provided, however, that if a Restructuring is to be completed through a "pre-packaged" or "pre-arranged" plan of reorganization, the Restructuring Fee shall be earned and shall be payable upon the earlier of (i) execution of definitive agreements with respect to such plan and (ii) delivery of binding consents to such plan by a sufficient number of creditors and bondholders, as the case may be, to bind the creditors or bondholders, as the case may be, to the plan; provided, further, that in the event that Lazard is paid a fee in connection with a "pre-packaged" or "pre-arranged" plan and a plan of reorganization is not consummated, Lazard shall return such fee to the Debtors. c. Amendment Fee: In the event of an amendment, a fee upon the execution of a binding agreement with respect thereto equal to $500,000; provided, however, that if multiple Amendments happen simultaneously, the maximum fee payable for such simultaneous Amendments shall be $1 million. One-half of any Amendment Fee paid shall be credited against any Restructuring Fee or Financing Fee that may be earned. d. Financing Fee: A fee payable upon consummation of a Financing equal to (i) 1.50% of the total gross proceeds raised if the funds raised in the Financing are through new debt or (ii) 3.00% of the total gross proceeds raised if the funds raised in the Financing are through new equity; provided, however, that in the case of any debtor-inpossession, the Financing Fee shall be earned and shall be payable upon the execution of a definitive agreement with respect to such Financing; provided, further, that in the event that Lazard is paid a fee in connection with a Financing and the Financing is not consummated, Lazard shall return such fee to the Debtors. A portion of any Financing Fee(s) paid (and not returned pursuant to the preceding sentence) shall be credited (without duplication) against any Restructuring Fee subsequently payable, as follows: -- with respect to any Financing provided by one or more current lenders under the Debtors’ revolving credit facility, (y) 75.00% of any Financing Fee paid on account of any Financing in an amount up to the difference between (A) the borrowings outstanding under the revolving credit facility as of the date of the Engagement Letter and (B) the total commitments available under the revolving credit facility as of the Engagement Letter and (z) 50.00% of any Financing Fee paid on account of any Financing to the extent such Financing exceeds the Available RBL Amount; and -- with respect to any Financing provided by a party that is not a current lender under the Debtors’ revolving credit facility, 50.00% of the Financing Fee. e. In the event of a Restructuring which solely involves one or more Amendments, the fee payable with respect thereto shall be determined in accordance with clause (c) above and not clause (b) and more than one fee may be payable pursuant to each of clauses (c) and (d) above. In addition, if at the time of termination of the engagement Lazard has not been paid at least $2.0 million in fees, at such time the Debtors will pay Lazard an amount equal to the difference between $2.0 million and the amount of fees previously paid. Brandon Aebersold, managing director of the firm, assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Mr. Aebersold can be reached at: Brandon Aebersold Lazard Freres & Co. LLC 30 Rockefeller Plaza New York NY 10112 Tel: +1 212 632 6000 Email: Brandon.aebersold@lazard.com 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 OIL: U.S. Trustee Forms Five-Member Creditors' Committee --------------------------------------------------------------- The U.S. Trustee for Region 2 appointed five creditors of Sabine Oil & Gas Corp. and its affiliated debtors to serve on the official committee of unsecured creditors. The unsecured creditors are: (1) The Bank of New York Mellon, N.A. 101 Barclay Street New York, New York 10286 Attention: Gary S. Bush, Vice President Telephone: (212) 815-2747 (2) Aurelius Capital Partners, LP 535 Madison Avenue – 22nd Floor New York, New York 10022 Attention: Dan Gropper Telephone: ^646) 445-6570 (3) Farallon Capital Offshore Investors II, L.P. One Maritime Plaza, Suite 2100 San Francisco, California 94111 Attention: Michael Linn, Managing Member Telephone: (415) 421-2132 (4) AQR Diversified Arbitrage Fund 2 Greenwich Plaza – 4th Floor Greenwich, Connecticut 06830 Attention: Melinda C. Franek, Vice President Telephone: ((203) 742-3007 (5) Asset Risk Management, LLC 20329 State Highway 249 - Suite 450 Houston, Texas 77070 Attention: Thomas W. Heath, President Telephone: (281) 655-3206 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at a debtor's expense. They may investigate the debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. About 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. SABLE NATURAL: Jonathan Rich Quits as Director ---------------------------------------------- Jonathan Rich resigned as director of Sable Natural Resources Corporation, effective Aug. 4, 2015. Mr. Rich's resignation is not due to any disagreements with the Company or any of its policies or practices, according to a Form 8-K document filed with the Securities and Exchange Commission. About Sable Natural Sable Natural Resources Corporation is an energy holding company with principal operations centralized in its wholly-owned subsidiary, Sable Operating Company, Inc. Sable was formerly known as NYTEX Energy Holdings, Inc. and Sable Operating was formerly known as NYTEX Petroleum Inc. Sable Operating is a development stage exploration and production company engaged in the acquisition, development, and production of liquids rich natural gas and oil reserves from low-risk, high rate-of-return wells in the Fort Worth Basin of Texas. On Dec. 31, 2014, the Company's estimated proved reserves were 669.12 MBOE, of which 100% were proved developed. The Company's portfolio of proved developed natural gas and oil reserves is weighted in favor of liquids rich natural gas, with the Company's proved reserves consisting of 15% oil, 38% natural gas liquids and 47% natural gas. Also, on Dec. 31, 2014, the Company's probable reserves were 565 MBOE consisting of 17% oil, 2% NGL, and 81% natural gas, and the Company's possible reserves were 1,231 MBOE consisting of 19% oil, 2% NGL, and 79% natural gas. Sable Natural reported a net loss of $4.62 million on $912,000 of total revenues for the year ended Dec. 31, 2014, compared with a net loss of $2.67 million on $930,000 of total revenues for the year ended Dec. 31, 2013. As of March 31, 2015, the Company had $18.6 million in total assets, $20.57 million in total liabilities, $3.72 million in mezzanine equity, and a $5.69 million total stockholders' deficit. Whitley Penn LLP, in Dallas, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company will need additional working capital to fund operations. This condition raises substantial doubt about the Company's ability to continue as a going concern. SAN JUAN RESORT: SJ Beach Declared Successful Bidder ---------------------------------------------------- San Juan Resort Owner, Inc., together with Banco Popular de Puerto Rico, notified the U.S. Bankruptcy Court for the District of Puerto Rico that SJ Beach PR LLC, which serves as the stalking horse purchaser, is the successful bidder for the sale of substantially all of its assets. As previously reported by The Troubled Company Reporter, Judge Mildred Caban Flores entered an order approving the asset purchase agreement, the bidding procedures, and the sale of San Juan Resort Owner, Inc.'s assets, free and clear, to a stalking horse purchaser or to the successful bidder. SJ Beach PR LLC, as the buyer, agrees that the purchase price for the assets is $9.45 million. The assets to be sold include all of the assets of the Debtor that are used in or related to the operation of the San Juan Beach Hotel. The parties told the Court that they are working diligently to close on the Sale to the Stalking Horse Purchaser, as authorized by the Sale Order, and will inform the Court once the closing occurs. The Debtor is represented by: William M. Vidal-Carvajal MCS Plaza Suite 801 255 Ave. Ponce de Leon Ave Hato Rey, Puerto Rico 00918 Tel: 787 764-6867 Fax: 787 764-6491 Email: William.m.vidal@gmail.com Banco Popular de Puerto Rico is represented by: Luis C. Marini O'NEILL & BORGES LLC American International Plaza 250 Munoz Rivera Avenue, Suite 800 San Juan, Puerto Rico 00918-1813 Tel: (787) 764-8181 Fax: (787) 753-8944 Email: luis.marini@oneillborges.com About San Juan Resort San Juan Resort Owners Inc. sought Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 15-01627) in Old San Juan, Puerto Rico on March 5, 2015. The petition was signed by Luis A. Carreras Perez as president. The Debtor is represented by William M. Vidal, Esq., at William Vidal Carvajal Law Offices in San Juan, Puerto Rico. The Debtor disclosed $12,787,943 in assets and $33,014,219 in liabilities as of the Chapter 11 filing. The Debtor owns a parcel of land of 1,637 square meters, with commercial property known as the San Juan Beach Hotel, a 96-room hotel. The hotel is located at 1045, Ashford Avenue, Condado, San Juan, Puerto Rico. The company claims the property is worth $11 million based on appraised value. Banco Popular de Puerto Rico is owed $17.5 million, of which $6.56 million is unsecured. SEMCRUDE: Decision on Kivisto Motion Reversed --------------------------------------------- Judge Fisher of the U.S. Court of Appeals reversed the Bankruptcy Court's decision denying appellant Thomas L. Kivisto's motion to enjoin the action brought by SemCrude L.P.'s former limited partners, known as the Oklahoma Plaintiffs, in state court which alleged breach of fiduciary duty, negligent misrepresentation, and fraud. The Oklahoma Plaintiffs alleged that: (a) they suffered injuries that were separate and distinct from the injuries suffered by SemCrude and its other equity holders; and (b) that Kivisto breached fiduciary duties owed to them as individuals. Kivisto argued that all SemCrude limited partners suffered the same loss of capital on a pro rata basis as a result of his alleged misconduct and that the Oklahoma Plaintiffs respective losses differ only in amount, not in kind, making their claims derivative. He further argues that Oklahoma courts have never identified a violation of a supposed "special duty" to a shareholder as loss "in addition to" the loss sustained by the corporation. Judge Fisher held that to the extent the Oklahoma Plaintiffs' claims are masked claims for a diminution in value of their limited partner units as a result of Kivisto's mismanagement, their claims are derivative of the claims released by the Litigation Trust. He notes that the Oklahoma Plaintiffs are unable to show that they experienced any loss "in addition to" the other equity holders or, equally, the company, who were injured by Kivisto's alleged misconduct and experienced the same pro rata loss by investing or failing to divest their units. Judge Fisher further holds that the Oklahoma Plaintiffs can show neither that they were injured separately from the company or all other unitholders on the basis of Kivisto's misconduct, nor that they were entitled to recovery of the units they allegedly would not have contributed or would have sold out but for Kivisto's misconduct. He concluded that the Oklahoma Plaintiffs' breach of fiduciary duty claim is derivative. The case is IN RE: SEMCRUDE L.P., et. al., Debtors. THOMAS L. KIVISTO, Appellant, No. 14-1204. A full-text copy of Judge Fisher's Opinion of the Court dated Aug. 5, 2015, is available at http://is.gd/9YK5l1from Leagle.com. Thomas L. Kivisto is represented by: Paul R. Bessette, Esq. James P. Sullivan, Esq. KING & SPALDING 401 Congress Avenue, Suite 3200 Austin, TX 78701 Telephone: (512)457-2050 Facsimile: (512)457-2100 E-mail: pbessette@kslaw.com jsullivan@kslaw.com The Oklahoma Plaintiffs are represented by: Andrew S. Hicks, Esq. Adam P. Schiffer, Esq. SCHIFFER ODOM HICKS & JOHNSON PLLC 700 Louisiana, Suite 2640 Houston, TX 77002 Telephone: (713)357-5150 Facsimile: (713)357-5160 E-mail: ahicks@sohjlaw.com aschiffer@sohlawfirm.com - and - Gary F. Seitz, Esq. GELLERT SCALI BUSENKELL & BROWN LLC 601 Walnut Street The Curtis Center, Suite 280 South Philadelphia, PA 19106 Telephone: (215)238-0011 Facsimile: (215)238-0016 E-mail: gseitz@gsbblaw.com About SemCRUDE L.P. SemGroup, L.P. -- http://www.semgrouplp.com/-- is a midstream service company that provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids and refined products. Services include purchasing, selling, processing, transporting, terminalling and storing energy. SemGroup serves customers in the United States, Canada, Mexico and Wales. SemGroup L.P. and its debtor-affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 08-11525) on July 22, 2008. John H. Knight, Esq., L. Katherine Good, Esq. and Mark D. Collins, Esq., at Richards Layton & Finger; Harvey R. Miller, Esq., Michael P. Kessler, Esq., and Sherri L. Toub, Esq., at Weil, Gotshal & Manges LLP; and Martin A. Sosland, Esq., and Sylvia A. Mayer, Esq., at Weil Gotshal & Manges LLP, represented the Debtors in their restructuring efforts. Kurtzman Carson Consultants L.L.C. served as the Debtors' claims agent. The Blackstone Group L.P. and A.P. Services LLC acted as the Debtors' financial advisors. Margot B. Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber Silverstein, Esq., at Potter Anderson & Corroon LLP, represented the Debtors' prepetition lenders. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc., is the appointed monitor of SemCanada Crude Company and its affiliates' reorganization proceedings before the Canadian Companies' Creditors Arrangement Act. SemGroup LP won confirmation from the Bankruptcy Court of its Fourth Amended Plan of Reorganization on Oct. 28, 2008. The Plan, which distributed more than $2.5 billion in value to stakeholders, was declared effective on Nov. 30, 2008. As part of the Plan, the Reorganized Debtors entered into two new credit facilities aggregating $625 million in financing; entered into a $300 million Second Lien Term Facility; created a new corporate structure, including issuing shares of common stock and warrants; and distributed approximately $500 million of cash and approximately $1 billion in value of new common stock and warrants to thousands of creditors in accordance with the Plan. SMILE BRANDS: S&P Lowers CCR to 'CCC+', Outlook Negative -------------------------------------------------------- Standard & Poor's Ratings Services removed its ratings on Smile Brands Group Inc. from CreditWatch, where S&P placed them with negative implications on Feb. 3, 2015. At the same time, S&P lowered its corporate credit and senior secured debt ratings on Smile Brands to 'CCC+' from 'B-'. The outlook is negative. The recovery rating on the senior secured debt remains '3', indicating expectations of meaningful (50% to 70%; at the lower end of the range) recovery in a payment default. "The ratings downgrade reflects the deterioration in Smile Brands' operating margins and credit measures due to the continued challenging reimbursement environment in its core markets, and the noncompliance with its financial covenants in the fourth quarter of 2014 that necessitates a waiver from its lenders and an equity infusion from the sponsor," said Standard & Poor's credit analyst Arthur Wong. Smile Brands has achieved some progress in cost controls and more optimized patient scheduling at its offices, resulting in slight margin improvements in the first half of 2015. However, S&P believes the company will find it difficult to materially improve operating performance and generate positive free cash flows in the next 12 to 18 months. S&P's assessment of Smile Brands' "highly leveraged" financial risk profile reflects our expectations of a leverage ratio above 10x and funds from operations (FFO) to debt of less than 5.0% for the near term. Smile Brands and its affiliates operate about 370 dental care offices in 18 states. It participates in a highly fragmented and increasingly competitive dental services industry, which has low barriers to entry and is susceptible to the growing power of private insurers which weighs on industrywide prices, reimbursement, and utilization. Smile Brands' competitors are increasingly joining networks of commercial dental insurers and offering services at discounted prices that are comparable to Smile Brands' offerings. This has contributed to the company's weakened volume and revenue growth over the past two years and, when coupled with the ongoing industry challenges, result in S&P's "vulnerable" business risk profile assessment. S&P's negative rating outlook reflects Smile Brands' need to reverse operating trends and its constrained liquidity. Standard & Poor's will focus on whether management can sustain the positive momentum achieved in the past two quarters. S&P is expecting Smile Brands' revenues and EBITDA to be relatively stable over the next year, with improvements in margin being key to generating positive free cash flows. S&P could lower its rating if free operating cash flow deficits persist, resulting in ongoing liquidity stress. This could occur if revenue growth remains stalled and the company is not able to improve EBITDA margins to the 8% to 10% range. S&P could revise the outlook to stable if it concludes that Smile Brands can reverse operating trends and generate positive free operating cash flows following an equity contribution. Free operating cash flow generation requires a combination of an improvement in profitability compared with recent quarters, curtailed capital spending, and reduced cash interest expenses. STACKPOLE INTERNATIONAL: S&P Puts 'B+' CCR on CreditWatch Positive ------------------------------------------------------------------ Standard & Poor's Ratings Services said it placed its ratings on Stackpole International group of companies (collectively, Stackpole), including its 'B+' long-term corporate credit rating on the company, on CreditWatch with positive implications. The Stackpole group of companies includes rated entities Stackpole International EP Holding Ltd., Stackpole International Global Holding Co., and Stackpole International PM Holding Ltd., as well as Stackpole International Engineered Products Inc., Stackpole International Intermediate Co. S.A., and Stackpole International Powder Metal ULC, which are subsidiaries of the rated entities and co-issuers of the senior secured notes. "The CreditWatch placement follows Johnson Electric Holdings Ltd.'s announcement that it has agreed to acquire Stackpole for C$800 million," said Standard & Poor's credit analyst Jamie Koutsoukis. "If the transaction closes as planned, we expect Stackpole will operate as a wholly owned subsidiary of Johnson Electric, which we rate 'BBB' and therefore in our opinion has a stronger credit profile," Ms. Koutsoukis added. Johnson Electric also announced that, in conjunction with the transaction, it will retire Stackpole's existing high-yield debt. The transaction is subject to the customary regulatory approvals and we expect it will close in the fourth quarter of 2015. S&P's "weak" business risk profile assessment on Stackpole incorporates the company's relatively limited size and diversity, as well as the auto parts industry's volatile demand, intense competition, and constant pricing pressure. These concerns are partially mitigated by Stackpole's leading positions in the North American niche oil pump and powder metal parts industry, where the company's products are used mostly in long-lived powertrains and their specialized nature somewhat shields Stackpole from commodity pressures many other automotive parts makers experience. S&P views Stackpole's financial policy as "FS-6," which applies a cap to the financial risk profile at "highly leveraged." This assessment reflects Stackpole's financial sponsor ownership by Crestview Partners L.P. and CITIC Holdings Ltd. At year-end 2014, Stackpole's debt leverage, adjusted for capital leases, was above 5x and funds from operations to debt was in the mid-single digits. S&P plans to resolve the CreditWatch placement after the transaction closes. At that time, S&P expects to raise the long-term corporate credit rating on Stackpole by several notches. STAR BODY EXPERT: Case Summary & 9 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Star Body Expert, Inc. 2 Rd. Km. 20.1 Candelaria Ward TOA Baja, PR 00949 Case No.: 15-06125 Chapter 11 Petition Date: August 11, 2015 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Judge: Hon. Brian K. Tester Debtor's Counsel: Gerardo L Santiago Puig, Esq. SANTIAGO PUIG LAW OFFICES Doral Bank Plaza Suite 801 33 Resolucion St San Juan, PR 00920 Tel: 787-777-8000 Fax: 787-767-7107 Email: gsantiagopuig@gmail.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Carlos Olivero Pinero, president. A list of the Debtor's nine largest unsecured creditors is available for free at http://bankrupt.com/misc/prb15-06125.pdf STELLAR BIOTECHNOLOGIES: Reports $464,000 Net Income in Q2 ---------------------------------------------------------- Stellar Biotechnologies, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $463,986 on $157,748 of revenues for the three months ended June 30, 2015, compared to net income of $3.4 million on $72,538 of revenues for the same period during the prior year. For the nine months ended June 30, 2015, the Company reported a net loss of $1.3 million on $558,036 of revenues compared to a net loss of $3.6 million on $245,734 of revenues for the same period in 2014. As of June 30, 2015, the Company had $11.2 million in total assets, $1.7 million in total liabilities and $9.4 million in total shareholders' equity. "Our working capital position at June 30, 2015 was $8,944,753, including cash and cash equivalents of $10,161,458 and noncash current portion of our warrant liability of $1,235,905. Management believes the current working capital is sufficient to meet our present requirements, including all contractual obligations and anticipated research and development expenditures for at least the next 12 months. We expect to finance our future expenditures and obligations through revenues from product sales, contract services income, grant revenues, and sales of our equity and debt securities. We expect to continue incurring losses for the foreseeable future and may need to raise additional capital to pursue our business plan and continue as a going concern. We may raise additional capital through the sale of our equity or debt securities in the public or private markets or through strategic collaborations. We cannot provide any assurances that we will be able to raise additional capital on commercially acceptable terms." "Market demand for high-quality, sustainable sources of GMP-grade KLH increases as many biotechnology companies expand their pipelines of immunotherapies based on KLH protein. These companies are seeing success in their ongoing clinical trials in a wide variety of disease indications - like our collaborator Neovacs targeting lupus, and others in the industry such as Axon and its recent progress with a KLH-based Alzheimer's vaccine to name another," said Frank Oakes, chief executive officer of Stellar Biotechnologies. "Our strategic collaboration with Ostiones Guerreros SA de CV, which we believe has transformative potential for the Company, was spurred in part by this increasing demand. With this agreement in place, we look forward to being the only company with a reliable and scalable supply of KLH as an ever-growing roster of customers and new clients with successful therapeutic candidates approach FDA approval, and eventually, commercialization." A full-text copy of the Form 10-Q is available for free at: http://is.gd/bnURew About Stellar Port Hueneme, Cal.-based Stellar Biotechnologies, Inc.'s business is to commercially produce and market Keyhole Limpet Hemocyanin ("KLH") as well as to develop new technology related to culture and production of KLH and subunit KLH ("suKLH") formulations. The Company markets KLH and suKLH formulations to customers in the United States and Europe. KLH is used extensively as a carrier protein in the production of antibodies for research, biotechnology and therapeutic applications. Stellar Biotechnologies reported a net loss of $8.43 million for the year ended Aug. 31, 2014, a net loss of $14.5 million for the year ended Aug. 31, 2013, and a net loss of $5.52 million for the year ended Aug. 31, 2012. SUMMIT BUILDING: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Summit Building and Development, LLC A New Mexico Limited Liability Company aka Summit Development of Las Cruces, LLC 7805 Arroyo Rd Las Cruces, NM 88012 Case No.: 15-12138 Chapter 11 Petition Date: August 11, 2015 Court: United States Bankruptcy Court New Mexico (Albuquerque) Judge: Hon. Robert H. Jacobvitz Debtor's Counsel: R. Trey Arvizu, III, Esq. ARVIZULAW.COM, LTD. PO Box 1479 Las Cruces, NM 88004-1479 Tel: 575-527-8600 Fax: 575-527-1199 Email: trey@arvizulaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Harlo J Dynek, managing member. A list of the Debtor's six largest unsecured creditors is available for free at http://bankrupt.com/misc/nmb15-12138.pdf TELEPHONE AND DATA: Fitch Affirms 'BB+' Issuer Default Ratings -------------------------------------------------------------- Fitch Ratings has affirmed the Issuer Default Ratings (IDR) and senior unsecured debt ratings for Telephone and Data Systems, Inc. (TDS) and its subsidiary United States Cellular Corp. (USM) at 'BB+'. In addition, Fitch has assigned an 'RR4' recovery rating to the senior unsecured debt for both companies. USM's ratings consider the consolidated ratings at TDS. The Rating Outlook remains Stable. KEY RATING DRIVERS Wireless Market Position: Fitch's current ratings reflect the challenges faced by TDS's main operating business -- USM -- which is the fifth-largest wireless operator in a market dominated by four national wireless operators. This concern is mitigated by TDS's financial flexibility arising from its healthy liquidity position and relatively low leverage for the rating. USM's subscriber trends in core markets improved in the second half of 2014; however, operating profitability in 2014 was suppressed due to billing system issues early in the year as well as higher losses on equipment driven by strong smartphone sales. Positive, though modest, net additions have continued in 2015 owing to much improved churn rates. Leverage: TDS's gross leverage was 2.33x at March 31, 2015, including a portion of partnership distributions received from noncontrolled entities (2.6x without). Partnership distributions will be temporarily lower in 2015 and 2016, due to a one-time charge at the Los Angeles partnership related to a capital lease for AWS-3 spectrum covering the partnership's market. Spectrum: USM participated in the Federal Communications Commission's (FCC) spectrum auction for AWS-3 spectrum through its limited partnership interest in Advantage Spectrum. Advantage Spectrum won 124 licenses with a total value of $338 million, net of the 25% designated entity discount. To fund the loans to Advantage Spectrum and its general partners and the capital contributions to Advantage Spectrum, USM issued $275 million of senior unsecured notes due 2063. Solid Financial Profile: The ratings at TDS and USM reflect the current strong liquidity position owing to substantial cash balances, conservative balance sheet, long-dated maturities and unused revolving credit facility capacity of $399 million and $282 million at TDS and USM, respectively. Cable Strategy: TDS has targeted the cable industry as an avenue of growth. The company acquired BendBroadband in September 2014 for $261 million in cash. BendBroadband was the second major cable acquisition for TDS, following the acquisition of Baja Broadband for $267 million in August 2013. Noncore Assets: The sale of noncore assets has mitigated the effect of negative FCF on USM and TDS. USM has sold wireless towers located in the Chicago and St. Louis markets for approximately $159 million. Of this amount, the balance of approximately $142 million was received in January 2015, following an initial amount received in 2014. The customers in these markets had been sold to Sprint in 2013. In 2015, the company has received $145 million in cash from spectrum exchanges. While Fitch believes TDS considers USM's 5.5% stake in the Los Angeles partnership and its tower portfolio as core assets, Fitch also recognizes these assets provide the company with financial flexibility should the need arise as it pursues growth in the cable industry. FCF Expectations Pressured: Fitch expects free cash flow (FCF) levels in 2015 to be negative due to the continued high level of capital investment and low margins in the wireless business. In 2015, Fitch expects negative FCF in the range of $300 million to $375 million, a material improvement relative to negative FCF of $463 million in 2014. Capital spending is estimated by TDS to approximate $830 million in 2015, up from approximately $800 million in 2014. KEY ASSUMPTIONS -- Fitch assumes a low single digit decline in wireless service ARPUs during 2015 to 2017, which is offset by moderate gross subscriber additions and growth in equipment revenues under equipment instalment plans. Churn is expected to remain around 1.4% to 1.5%, in line with levels seen in 2015 and slightly below the 1.6% rate during 2H'14. -- Wireless EBITDA margins improve to the low double digits from the 8.7% level in 2014. Higher sales on equipment installment sales are helping margins, as the loss on equipment sales decreased by $152 million in 1H'15 alone. -- TDS Telecom demonstrates revenue growth due to cable acquisitions and growth in Hosted and Managed Services. Fitch expects 2015 EBITDA in the segment to decline in a 0% to 2% range, before returning to nominal growth in the years ahead. -- Fitch estimates leverage could increase to the 2.7x to 2.9x range in 2016 (2.5x to 2.7x including a portion of partnership distributions), as USM explores the opportunity to bid on additional spectrum assets. USM's plans are not known but for forecasting purposes, Fitch assumes USM spends a similar amount to what they spent on the AWS-3 auction. RATING SENSITIVITIES Positive Rating Action: Positive actions are not contemplated at this time. Negative Rating Action: Longer term, Fitch believes TDS's and USM's ability to grow revenues and cash flows while competing effectively against much larger national operators is key to maintaining their 'BB+' Issuer Default Ratings (IDRs). In addition, if gross leverage ? calculated including partial credit for material wireless partnership distributions in EBITDA ? approaches 3.5x, a negative action could be contemplated. LIQUIDITY Strong Liquidity Profile: In relation to its total outstanding debt of $1,994 million at June 30, 2015, TDS has relatively high balances of cash, which amounted to $632 million. The ratings at TDS and USM reflect the current strong liquidity position owing to substantial cash balances, conservative balance sheet, available revolving credit facility capacity and generally long-dated maturities. Debt Maturities: At TDS, a $400 million ($399 million of capacity) revolving credit facility matures in December 2017, as does a $300 million ($282 million of capacity) revolving credit facility at USM. The only material near-term maturity is the $225 million CoBank loan, which matures in 2022. The loan was drawn in July 2015. The earliest notes at TDS are due in 2045 ($116 million) and at USM the earliest note maturity is in 2033 ($544 million face value). THERAKOS INC: S&P Puts 'B' CCR on CreditWatch Positive ------------------------------------------------------ Standard & Poor's Ratings Services placed its 'B' corporate credit rating and issue-level ratings on Therakos Inc. on CreditWatch with positive implications. "The CreditWatch placement follows Mallinckrodt PLC's announced plans to acquire Therakos," said Standard & Poor's credit analyst Tahira Wright. Therakos, a leading manufacturer of immunotherapy products and integrated systems for administering autologous immune cell therapy, is being acquired by pharmaceutical company Mallinckrodt PLC from its sponsor The Gores Group in a $1.3 billion all-stock transaction. The acquisition will aid Mallinckrodt's strategy of further diversifying its specialty brands portfolio. S&P's ratings on Mallinckrodt are unchanged following the announcement. The outlook on Mallinckrodt was revised to negative. S&P will resolve the CreditWatch placement once the transaction is closed in the latter part of the third quarter of 2015 and Therakos' outstanding debt is redeemed. S&P will likely raise its 'B' corporate credit rating on Therakos to match the 'BB-' rating on Mallinckrodt. S&P will subsequently withdraw the corporate credit and issue-level ratings on Therakos following the close of the transaction. S&P assumes the Therakos debt will be retired by Mallinckrodt at transaction close. THORNTON & CO: Proposes to Pay Critical Vendors ----------------------------------------------- Thornton & Co., Inc., is asking the U.S. Bankruptcy Court for the District of Connecticut for approval to pay the prepetition claims of critical vendors. Jeffrey M. Sklarz, Esq., at Green & Sklarz LLC, explains that it will not be possible for the Debtor to liquidate effectively without the ongoing support and participation of the Critical Vendors. If the critical vendors refuse to do business with the Debtor, then the Debtor will be unable to ship inventory for sale. This will eliminate approximately $10 million of value for the Debtor and its estate, Mr. Sklarz tells the Court. About Thornton & Co. Thornton & Co., Inc. is an international distributor, trader and wholesaler of plastic resins, providing a full offering of polyethylene and polypropylene products. J. Paul Thornton, Jr. founded TCI in 1994. As of Aug. 1, 2015, TCI had 20 employees, consisting of 12 people at its Southington, Connecticut headquarters, and 8 sales representatives who work in various locations. Thornton & Co. sought Chapter 11 protection (Bankr. D. Conn. Case No. 15-21416) on Aug. 10, 2015, in Hartford, Connecticut. Judge Ann M. Nevins presides over the case. The Debtor estimated $10 million to $50 million in assets and debt. The Debtor has tapped Green & Sklarz LLC as counsel, and Gordian Group as financial advisor. There's a meeting of creditors under 11 U.S.C. Sec. 341(a) on Sept. 4, 2015. Proofs of claim are due by Dec. 3, 2015. THORNTON & CO: Seeks to Use PUB's Cash Collateral ------------------------------------------------- Thornton & Co., Inc., is asking the U.S. Bankruptcy Court for the District of Connecticut to enter preliminary and final orders authorizing the use of cash collateral and providing adequate protection to secured creditors. People's United Bank ("PUB"), pursuant to a UCC-1 financing statement recorded on April 4, 2011 with the Secretary of the State of Delaware, may claim an interest in the Debtor's cash collateral. In April 2011, TCI and PUB entered into a $30 million revolving loan and credit facility (the "PUB Loan"). By way of multiple amendments and restatements, the PUB Loan was ultimately increased to a $40 million revolving credit facility. Beginning in 2014, PUB began requesting modification to the PUB Loan, including: requiring personal guarantees, posting of collateral, modification of borrowing base requirements, etc. At this time, PUB is owed approximately $21 million. The approximate market value TCI's inventory and accounts receivable are currently approximately $28 million. The Debtor proposes to grant PUB a replacement lien in all after acquired cash collateral, limited, however, to the same extent, priority and validity as each possessed valid, duly enforceable liens on the Petition Date and excluded from the replacement lien on post-petition assets will be bankruptcy causes of action available to the estate under 11 U.S.C. Sec. 544, 545, 547, 548, 549, 550, 551 and 553. About Thornton & Co. Thornton & Co., Inc. is an international distributor, trader and wholesaler of plastic resins, providing a full offering of polyethylene and polypropylene products. J. Paul Thornton, Jr. founded TCI in 1994. As of Aug. 1, 2015, TCI had 20 employees, consisting of 12 people at its Southington, Connecticut headquarters, and 8 sales representatives who work in various locations. Thornton & Co. sought Chapter 11 protection (Bankr. D. Conn. Case No. 15-21416) on Aug. 10, 2015, in Hartford, Connecticut. Judge Ann M. Nevins presides over the case. The Debtor estimated $10 million to $50 million in assets and debt. The Debtor has tapped Green & Sklarz LLC as counsel, and Gordian Group as financial advisor. There's a meeting of creditors under 11 U.S.C. Sec. 341(a) on Sept. 4, 2015. Proofs of claim are due by Dec. 3, 2015. THORNTON & CO: Wants Oct. 30 Bar Date for 503(b)(9) Claims ---------------------------------------------------------- Thornton & Co., Inc., is asking the U.S. Bankruptcy Court for the District of Connecticut to establish Oct. 30, 2015, as the deadline for all creditors who assert an administrative priority claim pursuant to 11 U.S.C. Sec. 503(b)(9) to file requests for payment and/or proofs of claim asserting those claims. Jeffrey M. Sklarz, Esq., at Green & Sklarz LLC, explains that the Debtor desires to ascertain the nature and extent of any Sec. 503(b)(9) claims of which it may presently be unaware. This will not only aid the Debtor in formulating a plan of reorganization by creating certainty with regard to any Sec. 503(b)(9) claims, but it will also assure that any issues concerning such claims are resolved before the plan confirmation process is underway. About Thornton & Co. Thornton & Co., Inc. is an international distributor, trader and wholesaler of plastic resins, providing a full offering of polyethylene and polypropylene products. J. Paul Thornton, Jr. founded TCI in 1994. As of Aug. 1, 2015, TCI had 20 employees, consisting of 12 people at its Southington, Connecticut headquarters, and 8 sales representatives who work in various locations. Thornton & Co. sought Chapter 11 protection (Bankr. D. Conn. Case No. 15-21416) on Aug. 10, 2015, in Hartford, Connecticut. Judge Ann M. Nevins presides over the case. The Debtor estimated $10 million to $50 million in assets and debt. The Debtor has tapped Green & Sklarz LLC as counsel, and Gordian Group as financial advisor. There's a meeting of creditors under 11 U.S.C. Sec. 341(a) on Sept. 4, 2015. Proofs of claim are due by Dec. 3, 2015. TRISTAR WELLNESS: David Horin Resigns as Chief Financial Officer ---------------------------------------------------------------- Mr. David Horin resigned from his position as Tristar Wellness Solutions, Inc.'s chief financial officer effective Aug. 4, 2015, according to a Form 8-K filed with the Securities and Exchange Commission. About TriStar Wellness TriStar Wellness Solutions, Inc., offers products and technologies in the areas of wound care, women's health and therapeutic skin care. The Company is based in Westport, Connecticut. TriStar Wellness reported a net loss of $8.87 million on $5.54 million of sales revenue for the year ended Dec. 31, 2014, compared to a net loss of $12.6 million on $3.77 million of sales revenue for the year ended Dec. 31, 2014. As of March 31, 2015, the Company had $2.69 million in total assets, $14.9 million in total liabilities and a $12.2 million total stockholders' deficit. M&K CPAS, PLLC, in Houston, TX, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company has suffered reoccurring losses from operations, and has an accumulated deficit and working capital deficit as of Dec. 31, 2014. These conditions raise substantial doubt about its ability to continue as a going concern. TWIN RINKS: Court Approves Aug. 19 Auction for Assets ----------------------------------------------------- Twin Rinks At Eisenhower, LLC, sought for and obtained from Judge Robert E. Grossman of the U.S. Bankruptcy Court for the Eastern District of New York, approval of its bidding procedures in connection with the sale of substantially all of its assets. The Bidding Procedures provide, among others, these terms: (a) Assets to be Sold: The auction will permit bidders to bid on some or all of the Twin Rinks Assets. The Twin Rinks Assets generally constitute all of the operating assets owned or leased by the Debtor including, but not limited to, a license with the County of Nassau. The Debtor may consider offers that contemplate a Sale Transaction. (b) Participation Requirements: In order to participate in the bidding process or otherwise be considered for any purposes hereunder, a person interested in entering into a Sale Transaction for some or all of the Twin Rinks Assets must first deliver an executed confidentiality agreement in form and substance satisfactory to the Debtor and its counsel. (c) Bid Deadline: Bids musts be received no later than Aug. 13, 2015 at 5:00 p.m. (d) Auction: If more than one Qualified Bid by a Qualified Bidder is received by the Bid Deadline, an Auction with respect to a sale of the Twin Rinks Assets will take place on Aug. 19, 2015 at 10:00 a.m. (e) Sale Hearing: The Court will conduct a hearing to approve the sale on Aug. 26, 2015 at 1:30 p.m. The County of Nassau sought changes to the Bidding Procedures to reflect the critical role the County must play in the sale process, which is a direct result of the terms of the its License Agreement with the Debtor. The County sought these changes: (1) The assumption of the License Agreement is a requirement for any bid on the Twin Rinks Assets to constitute a Qualified Bid; (2) At all stages of the sale process which the Debtor formerly agreed to consult with the Committee and the Secured Creditor, it now agrees to consult with the County in addition to the Committee and the Secured Creditor; (3) Although the Debtor, in consultation with the Committee, the Secured Creditor and the County may waive one or more defects which would otherwise cause a bid not to be a Qualified Bid, the requirement that a Qualified Bidder agree to an assignment of the License Agreement cannot be waived; (4) The Debtor will provide to the County of Nassau, as they are received by the Debtor or its financial advisor, (a) the names of those persons or entities that entered into non-disclosure agreements with the Debtor with respect to the proposed sale and (b) copies of all information provided by Potential Bidders. The County of Nassau will hold such information confidential pending the sale hearing; and (5) The Debtor may not exclude the License Agreement from the list of Executory Contracts and Unexpired Leases to be assumed and assigned if the Court determines that the applicable Cure Amount is greater than the Cure Amount proposed by the Debtor. The County's proposed changes to the bidding procedures were adopted by the Court in its order approving the bidding procedures. Twin Rinks At Eisenhower, LLC, is represented by: Harold D. Jones, Esq. JONES & SCHWARTZ, P.C. One Old Country Road, Suite 384 Carle Place, NY 11514 Telephone: (516)873-8700 The County of Nassau is represented by: Stephen A. Donato, Esq. Thomas L. Kennedy, Esq. BOND, SCHOENECK & KING PLLC One Lincoln Center Syracuse, NY 13202 Telephone: (315)218-8000 Facsimile: (315)218-8100 E-mail: sdonato@bsk.com tkennedy@bsk.com About Twin Rinks Twin Rinks At Eisenhower, LLC, an East Meadow, New York-based ice skating rink operator and entertainment business, sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 15-72466) on June 8, 2015, with plans to sell its business and its assets as a going concern. The Debtor disclosed $52.4 million in assets and $55.2 million in debt as of May 25, 2015. The Debtor tapped Jones & Schwartz, P.C., as counsel, and Greenspan Associates, CPAs, as accountants. The U.S. Trustee appointed three creditors to serve on the official committee of unsecured creditors. The Committee tapped Meyer, Suozzi, English & Klein, P.C., as its general counsel. TWIN RINKS: Files Revised Bid to Employ Greenspan as Accountants ---------------------------------------------------------------- Twin Rinks At Eisenhower, LLC, filed with the U.S. Bankruptcy Court for the Eastern District of New York an amended request to employ Greenspan Associates, CPAs, PC, as accountants, under a general retainer, pursuant to Section 327(a) of the Bankruptcy Code. As reported in the Troubled Company Reporter on June 12, 2015, Greenspan will be required to render, among other things, these services to the Debtor: (a) to give accounting advice with respect to the Debtor's powers and duties; (b) to analyze all transfers pre- and post-petition that may be avoidable by the Debtor; (c) to analyze all claims filed against the Debtor's estate; (d) to prepare all necessary operating statements, schedules and tax documents for filing and reviewing proposed transactions concerning any tax consequences; and (e) to perform any other accounting services for the Debtor in connection with the Chapter 11 cases. The current hourly rates which Greenspan has informed the Debtor it charges for the accounting services of its professionals are: Hourly Rate ----------- Principals $275 Senior Staff $100 to $200 The Debtor says it will pay the firm an amount not to exceed 75% of its invoices for fees and expenses in full on a monthly basis, with such payment and the balance of those invoices subject to an appropriate application for compensation. The firm estimates its fees will be in the amount of $30,000 for the entire case, the Debtor notes. Greenspan has informed the Debtor that it is a "disinterested person" as defined by Section 101(14), and used in Section 327(a) of the Bankruptcy Code. About Twin Rinks Twin Rinks At Eisenhower, LLC, an East Meadow, New York-based ice skating rink operator and entertainment business, sought Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 15-72466) on June 8, 2015, with plans to sell its business and its assets as a going concern. The Debtor disclosed $52.4 million in assets and $55.2 million in debt as of May 25, 2015. The Debtor tapped Jones & Schwartz, P.C., as counsel, and Greenspan Associates, CPAs, as accountants. The U.S. Trustee appointed three creditors to serve on the official committee of unsecured creditors. The Committee tapped Meyer, Suozzi, English & Klein, P.C. as its general counsel. UNI-PIXEL INC: Approves CEO Salary Increase ------------------------------------------- The Compensation Committee of Uni-Pixel, Inc. increased, as of Aug. 1, 2015, the annual salary of Jeff A. Hawthorne, the Company's chief executive officer, from $250,000 to $305,000. Also on Aug. 4, 2015, Mr. Hawthorne, Christine Russell, the Company's chief financial officer, and Jalil Shaikh, the Company's chief operating officer, each agreed, for the payroll period beginning on Aug. 1, 2015, through the payroll period ending on Dec. 31, 2015, to take a portion of his or her salary in shares of the Company's common stock. The common stock will be issued from the Company's 2011 Stock Incentive Plan. On an annual basis, the cash portion of Mr. Hawthorne's salary was reduced from $305,000 to $230,000, the cash portion of Ms. Russell's salary was reduced from $280,000 to $230,000 and the cash portion of Mr. Shaikh's salary was reduced from $300,000 to $230,000. The cash reduction during the Stock Compensation Period will total $31,250 for Mr. Hawthorne, $20,833 for Ms. Russell and $29,167 for Mr. Shaikh. About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. Uni-Pixel incurred a net loss of $25.7 million in 2014, a net loss of $15.2 million in 2013 and a net loss of $9.01 million in 2012. As of March 31, 2015, Uni-Pixel had $30.4 million in total assets, $7.69 million in total liabilities and $22.7 million in total shareholders' equity. UNI-PIXEL INC: Posts $15.7 Million Net Loss of Second Quarter ------------------------------------------------------------- Uni-Pixel, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $15.7 million on $1.3 million of revenue for the three months ended June 30, 2015, compared to a net loss of $6 million on $0 of revenue for the same period in 2014. For the six months ended June 30, 2015, the Company reported a net loss of $21.4 million on $1.3 million of revenue compared to a net loss of $12.2 million on $0 of revenue for the same period during the prior year. As of June 30, 2015, the Company had $33.3 million in total assets, $13.5 million in total liabilities and $19.7 million in total shareholders' equity. Jeffrey A. Hawthorne, president and chief executive officer of UniPixel, said, "The second quarter of 2015 was an important quarter in the history of the Company. We have transitioned from a technology development company to a fully integrated sales and marketing organization with a focus on driving consistent revenue growth. Revenue for the second quarter was substantially higher than the first quarter as we shipped a significantly larger number of our sensors for use by our Tier 1 OEM customers. Our manufacturing facility in Colorado Springs is operational and we expect that it will become increasingly more efficient in the coming quarters as we fully integrate the new manufacturing technology." A full-text copy of the Form 10-Q is available for free at: http://is.gd/W3IEUH About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. Uni-Pixel incurred a net loss of $25.7 million in 2014, a net loss of $15.2 million in 2013 and a net loss of $9.01 million in 2012. VERMILLION INC: FMR LLC Reports 12.2% Stake as of August 7 ---------------------------------------------------------- FMR LLC, Edward C. Johnson 3d and Abigail P. Johnson disclosed in a Schedule 13G filed with the Securities and Exchange Commission that as of Aug. 7, 2015, they beneficially owned 6,175,000 shares of common stock of Vermillion Inc., which represents 12.198% of the shares outstanding. Edward C. Johnson 3d is a director and the chairman of FMR LLC and Abigail P. Johnson is a director, the vice chairman, the chief executive officer and the president of FMR LLC. A copy of the regulatory filing is available at: http://is.gd/UaHLX4 About Vermillion Vermillion, Inc., is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 09-11091) on March 30, 2009. Vermillion's legal advisor in connection with its successful reorganization efforts wass Paul, Hastings, Janofsky & Walker LLP. Vermillion emerged from bankruptcy in January 2010. The Plan called for the Company to pay all claims in full and equity holders to retain control of the Company. Vermillion reported a net loss of $19.2 million in 2014, a net loss of $8.81 million in 2013 and a net loss of $7.14 million in 2012. As of March 31, 2015, the Company had $18.67 million in total assets, $3.48 million in total liabilities and $15.19 million in total stockholders' equity. VIRTUAL PIGGY: Incurs $2.4 Million Net Loss in Second Quarter ------------------------------------------------------------- Virtual Piggy, Inc., filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common stockholders of $2.4 million on $5,277 of sales for the three months ended June 30, 2015, compared to a net loss attributable to common stockholders of $5.3 million on $1,253 of sales 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 $5.8 million on $9,386 of sales compared to a net loss attributable to common stockholders of $13.5 million on $1,678 of sales for the same period in 2014. As of June 30, 2015, the Company had $1.6 million in total assets, $5.2 million in total liabilities, all current, and a stockholders' deficit of $3.5 million. A full-text copy of the Form 10-Q is available for free at: http://is.gd/z6w4Ot About Oink (Virtual Piggy, Inc.) Virtual Piggy is the provider of Oink, a secure online and in-store teen wallet. Oink enables teens to manage and spend money within parental controls, while gaining valuable financial management skills. The technology company also delivers payment platforms designed for the Under 21 age group in the global market, and enables online businesses the ability to function in a manner consistent with the Children's Online Privacy Protection Act and similar international children's privacy laws. The company, based in Hermosa Beach, CA, is on the Web at: http://www.oink.com/and holds three technology patents, US Patent No. 8,762,230, 8,650,621 and 8,812,395. Virtual Piggy reported a net loss of $9.65 million in 2014, a net loss of $16 million in 2013 and a net loss of $12.03 million in 2012. Morison Cogen LLP, in Bala Cynwyd, PA, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's losses from development stage activities raise substantial doubt about its ability to continue as a going concern. WALTER ENERGY: Has Green Light to Form Retired Employee's Panel --------------------------------------------------------------- The Chapter 11 cases of Walter Energy Inc. and its debtor-affiliates can have an official committee to represent retired employees pursuant to Section 1114(c)(2) and 1114(d) of the Bankruptcy Code, the U.S. Bankruptcy Court for the Northern District of Alabama ruled. The Debtors sought appointment of a retirees committee. They explained that, as of the petition date, they employ approximately 2,300 employees in the United States. These employees include about 700 salaried and 1,600 hourly individuals. Of these, approximately 1,285 and 160 hourly employees are represented by the United Mine Workers of America ("UMWA") and the United Steelworkers ("USW") respectively. The employees perform a variety of functions critical to the Debtors' operations, including coal and methane gas extraction, sales, marketing, accounting, administration and management. The Debtors provide healthcare, life-insurance and other post-retirement benefits to their retirees including: a) UMWA Retiree Medical Plan. This company-sponsored plan is maintained pursuant to the Debtors' collective bargaining agreement with the UMWA. As of Dec. 31, 2014, the Debtors have approximately 3,274 participants under the UMWA Retiree Medical Plan, of which approximately 609 are active, and approximately 2,665 are retired or disabled. As of Dec. 31, 2014, the Debtors have approximately $579.1 million in unfunded liabilities with respect to the UMWA Retiree Medical Plan. b) Taft Retiree Medical Plan. This company-sponsored plan is maintained pursuant to the Debtors' legacy collective bargaining agreement with the USW. As of Dec. 31, 2014, the Debtors have approximately 27 participants under the Taft Retiree Medical Plan, all of whom are currently retired. As of Dec. 31, 2014, the Debtors have approximately $3.4 million in unfunded liabilities with respect to the Taft Retiree Medical Plan. c) Walter Coke Retiree Medical Plan. This company-sponsored plan is maintained pursuant to the Debtors' collective bargaining agreement with the USW. As of Dec. 31, 2014, the Debtors have approximately 423 participants under the Walter Coke Retiree Medical Plan, of which approximately 170 are active, and approximately 253 are retired. As of Dec. 31, 2014, the Debtors have approximately $10.9 million in unfunded liabilities with respect to the Walter Coke Retiree Medical Plan. d) Walter Coke Retiree Life Plan. This company-sponsored plan is maintained pursuant to the Debtors' collective bargaining agreement with the USW. As of Dec. 31, 2014, the Debtors have approximately 330 participants under the Walter Coke Retiree Life Plan, of which approximately 170 are active, and approximately 160 are retired. As of Dec. 31, 2014, the Debtors have approximately $0.5 million in unfunded liabilities with respect to the Walter Coke Retiree Life Plan. e) Salaried Post-Retiree Medical Plan. The Salaried Post-Retiree Medical Plan is not maintained pursuant to any collective bargaining agreement. As of Dec. 31, 2014, the Debtors have approximately 348 participants under the Salaried Post-Retiree Medical Plan, of which approximately 246 are active, and approximately 102 are retired. As of Dec. 31, 2014, the Debtors have approximately $4.2 million in unfunded liabilities with respect to the Salaried Post-Retiree Medical Plan. According to the Debtors, their Retiree Benefits -- as defined in section 1114(a) of the Bankruptcy Code -- total approximately $598.1 million in unfunded liabilities as of Dec. 31, 2014. As part of their restructuring efforts and to return to profitability, the Debtors must, as a first step, substantially delever their balance sheets through the Chapter 11 Cases. A successful restructuring, however, demands more than just the elimination of funded debt. Confirmation of a chapter 11 plan depends on the Debtors' ability to materially reduce their legacy and existing labor costs. Towards that end, the Debtors will engage in negotiations with the UMWA, the USW and non-unionized retirees, among others, to obtain cost-savings in respect of the Company's OPEB Obligations. While the Company will strive to reach a consensual resolution with its retirees, the UMWA and the USW regarding these essential concessions, the Company may need to seek judicial relief to obtain such relief through the procedures and processes provided for in sections 1113 and 1114 of the Bankruptcy Code if no consensual resolution results. About Walter Energy Walter Energy -- http://www.walterenergy.com/-- is a publicly traded "pure-play" metallurgical coal producer for the global steel industry with strategic access to steel producers in Europe, Asia and South America. The Company also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas. Walter Energy employs approximately 2,700 employees, with operations in the United States, Canada and the United Kingdom. For the year ended Dec. 31, 2014, the Company reported a net loss of $471 million following a net loss of $359 million in 2013. Walter Energy, Inc., and its affiliates sought Chapter 11 protection (Bankr. N.D. Ala. Lead Case No. 15-02741) in Birmingham, Alabama on July 15, 2015. The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison as counsel; Bradley Arant Boult Cummings LLP, as co-counsel; Ogletree Deakins LLP, as labor and employment counsel; Maynard, Cooper & Gale, P.C., as special counsel; Blackstone Advisory Services, L.P., as investment banker; AlixPartners, LLP, as financial advisor, and Kurtzman Carson Consultants LLC, as claims and noticing agent. Walter Energy disclosed total assets of $5.2 billion and total debt of $5 billion as of March 31, 2015. WAYNE COUNTY, MI: Seeks to Avoid Bankruptcy Through Consent Pact ---------------------------------------------------------------- Elizabeth Campbell, writing for Bloomberg News, reported that Wayne County completed a consent agreement with the Michigan Department of Treasury, moving the home of Detroit a step closer to state oversight in a bid to mend its finances. The report related that the pact, which keeps local officials in charge, is an alternative to bankruptcy and becomes effective after the 15-member county commission approves it, according to an e-mailed statement dated Aug. 11 from the office of County Executive Warren Evans. Once it is approved by the commission and signed, the county executive's office has 30 days to keep negotiating with unions before Evans can use his powers under the pact to impose pay or benefit cuts, the Bloomberg report noted. * * * 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 COAL: Has 93% Equity Interest in Westmoreland Resource ------------------------------------------------------------------- Westmoreland Coal Company disclosed in an amended Schedule 13D filed with the Securities and Exchange Commission that as of Aug. 1, 2015, it beneficially owned 19,820,008 Common Units Representing Limited Partner Interests of Westmoreland Resource Partners, LP. On Aug. 1, 2015, pursuant to the terms of the Amended and Restated Contribution Agreement, dated July 31, 2015, between the Issuer and WCC, WCC made the Contribution to the Issuer in exchange for 15,251,989 Series A Units of the Issuer and $115 million in cash, which the Issuer funded with borrowings under its credit facility. WCC purchased Warrants to acquire a total of 55,519 Common Units in June 2015, consisting of a Warrant to acquire 11,659 Common Units from A54 Acquisition-B LLC on June 10, 2015, and a Warrant to acquire 43,860 Common Units from A54 Acquisition LLC on June 11, 2015, for a total purchase price of $627,365. WCC funded the purchase price for the Warrants with available cash on hand. Together with the Common Units previously held by WCC, the Series A Units and the Warrants purchased by WCC represent an aggregate of 93.8% of the Issuer's outstanding equity interests on a fully diluted basis. A full-text copy of the regulatory filing is available at: http://is.gd/w0bWM4 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. ZOGENIX INC: Posts $72.4 Million Net Income for Second Quarter -------------------------------------------------------------- Zogenix, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $72.4 million on $7.3 million of total revenue for the three months ended June 30, 2015, compared to net income of $62.8 million on $6.7 million of total revenue for the same period a year ago. For the six months ended June 30, 2015, the Company reported net income of $49.6 million on $11.9 million of total revenue compared to net income of $41.9 million on $14.1 million of total revenue for the same period a year ago. As of June 30, 2015, the Company had $246.7 million in total assets, $138.6 million in total liabilities and $108.1 million in total stockholders' equity. "With further positive data from the Belgian study of low-dose fenfluramine in Dravet syndrome, a clear development path for Phase 3 that now includes significant input from the FDA and the successful execution of a Dravet syndrome-focused KOL event, we have generated significant momentum over the past several months," said Stephen J. Farr, Ph.D., president and CEO. "From a clinical development standpoint, we are well-positioned to begin our Phase 3 program for ZX008 in the fourth quarter of 2015. In addition, following our recent capital raise, Zogenix is now in the strongest financial position in our company's history, and our cash should be sufficient to take us through the regulatory submissions, and potential approvals, of ZX008 in the U.S. and Europe." A full-text copy of the Form 10-Q is available for free at: http://is.gd/sbUhDD About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. Zogenix reported net income of $8.58 million in 2014 following a net loss of $80.85 million in 2013. Ernst & Young LLP, in San Diego, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2014, citing that the Company's recurring losses from operations and negative cash flows from operating activities raise substantial doubt about its ability to continue as a going concern. ********* 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 ***