/raid1/www/Hosts/bankrupt/TCR_Public/150828.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, August 28, 2015, Vol. 19, No. 240
Headlines
21ST CENTURY ONCOLOGY: Incurs $64.5 Million Net Loss in Q2
30DC INC: Divests Non-Core Assets, Changes Management
AEOLUS PHARMACEUTICALS: Incurs $784,000 Net Loss in 2nd Quarter
ALLIED NEVADA: Amends Ch. 11 Plan of Reorganization
ALLIED NEVADA: Exclusive Plan Filing Date Extended to Nov. 5
AMERICAN LIBERTY: Needs to Borrow $100K in DIP Loan
AMERICAN LIBERTY: Wants Ranchland General Partner Replaced
AMERICAN POWER: Incurs $1.8 Million Net Loss in Third Quarter
ANDALAY SOLAR: Delays Second Quarter Form 10-Q
APOLLO MEDICAL: Delays Second Quarter Form 10-Q
ARKANOVA ENERGY: Incurs $960,000 Net Loss in Second Quarter
ATLANTIC & PACIFIC: Allowed to Pay Suppliers, Service Providers
ATLANTIC & PACIFIC: Has Final Authority to Obtain $100MM DIP Loan
ATLANTIC & PACIFIC: Wants $5M Incentive Pay for Key Employees
BAHA MAR: Files Ch. 11 Plan to Complete Bahamas Project
BAHA MAR: Files Chapter 11 Plan of Reorganization
BERNARD L. MADOFF: Judge Authorizes Latest Fee Request for Trustee
BG MEDICINE: Reports $2 Million Net Loss for Second Quarter
BON-TON STORES: Announces Quarterly Cash Dividend
BOOMERANG TUBE: Court Sets Confirmation Hearing on Sept. 21
BRAND ENERGY: Bank Debt Trades at 7% Off
BREITBURN ENERGY: Moody's Cuts Corporate Family Rating to 'B2'
BUILDING #19: $75,000 in Claims Switched Hands in August 2015
CAESARS ENTERTAINMENT INC: 2020 Bank Debt Trades at 6% Off
CAESARS ENTERTAINMENT INC: 2021 Bank Debt Trades at 17% Off
CALIFORNIA COMMUNITY: Wants Access to Cash Collateral Until Dec. 31
CANICKEL MINING: TSX Review Continued Listing Eligibility
CHINA GERUI: Receives Nasdaq Listing Non-Compliance Notice
CHINA GINSENG: Changzhen Liu Quits as Chairman and CEO
CITRUS VALLEY: Moody's Hikes Rating on 1998 Rev. Bonds From Ba2
COCRYSTAL PHARMA: Incurs $2.6 Million Net Loss in Second Quarter
COCRYSTAL PHARMA: Intends to Offer $150-Mil. Common Shares
CORD BLOOD: Posts $397,000 Net Income for Second Quarter
CORINTHIAN COLLEGES: Court Confirms 3rd Amended Liquidation Plan
CUI GLOBAL: Names Oil & Gas Executive as Director
DEWEY & LEBOEUF: Inflated Key Financial Metrics, Witness Says
DEX MEDIA: Bank Debt Trades at 33% Off
DOMARK INTERNATIONAL: CEO and CFO Hold Majority Stake
DR HORTON: S&P Hikes Corp. Credit Rating to 'BB+', Outlook Stable
DRD TECHNOLOGIES: Gets Final Approval to Use Cash Collateral
DVF ADVISORY GROUP: Case Summary & 18 Top Unsecured Creditors
FINANCIAL HOLDINGS: Court Authorizes Bank Share Sale to Lender
FIRST DATA: Files Amendment to Preliminary Form S-1 Prospectus
FLOATEL INTERNATIONAL: Bank Debt Trades at 27% Off
FORTESCUE METALS: Bank Debt Trades at 18% Off
FREEDOM GROUP: S&P Lowers Corp. Credit Rating to B-, Outlook Stable
FUEL PERFORMANCE: Delays Q2 Quarterly Report Over Limited Staff
GATES GROUP: Bank Debt Trades at 3% Off
GEODEX MINERALS: Expects to File Financial Statements by Sept. 4
GLYECO INC: Posts $1.07 Million Net Loss for Second Quarter
GOODING COUNTY, ID: Moody's Cuts GO Bonds Rating to 'Ba2'
GREEN AUTOMOTIVE: Fred Luke Rejoins as President and Secretary
GREENSHIFT CORP: Delays Filing of Second Quarter Form 10-Q
HERCULES OFFSHORE: Files Fleet Status Report
HS 45: Madison Lenders Seek Additional Adequate Protection
HUISH DETERGENTS: Bank Debt Trades at 3% Off
INDEPENDENCE TAX II: Incurs $81,400 Net Loss in June 30 Quarter
INFINITY ENERGY: Incurs $7.58 Million Net Loss in Second Quarter
INGWALL HOLDINGS: Case Summary & Largest Unsecured Creditors
INTERLEUKIN GENETICS: Incurs $2.16 Million Net Loss in Q2
INTERNATIONAL BRIDGE: Creditors Have Until This Week to File Claim
INVENTIV HEALTH: Posts $30.2 Million Net Income for 2nd Quarter
KEITH HALL: Case Summary & 5 Largest Unsecured Creditors
LIQUIDMETAL TECHNOLOGIES: Ricardo Salas Quits as EVP and Director
MIDWAY GOLD: Committee Gets Approval to Hire Financial Advisor
MOUNTAIN PROVINCE: Incurs C$5.7 Million Net Loss in 2nd Quarter
MUSCLEPHARM CORP: To Position Company for Future Profitability
OPTIMUMBANK HOLDINGS: Reports $6,000 Net Earnings for 2nd Quarter
OSAGE EXPLORATION: Incurs $1.91 Million Net Loss in Second Quarter
PACIFIC GOLD: Delays June 30 Form 10-Q Filing
PARKER DRILLING: Moody's Cuts Senior Unsecured Notes Rating to B2
PATRIOT COAL: Greer Industries Sells $26,000 Claim to CRG
PATRIOT COAL: Unsecured Creditors Fear Mine Workers May Strike
PEABODY ENERGY: Said to Hire Lazard on Advise on Debt Restructuring
PEAK AERO GROUP: Case Summary & 20 Largest Unsecured Creditors
PHARMACYTE BIOTECH: Incurs $546,000 Net Loss in First Quarter
POSITRON CORP: Incurs $375,000 Net Loss for Second Quarter
PRESSURE BIOSCIENCES: Reports $1.39 Million Net Loss for Q2
PROTOM INTERNATIONAL: Court Approves Jackson Walker as Counsel
PROTOM INTERNATIONAL: KeyBanc Capital OK'd as Investment Banker
PURADYN FILTER: Incurs $322,000 Net Loss in Second Quarter
QUICK CHANGE ARTIST: Case Summary & 20 Top Unsecured Creditors
RADIOSHACK CORP: Court Approves Settlement with ABL Agent
REICHHOLD HOLDINGS: Seeks $1.2 Mil. Sale of Real Estate to Steiner
REICHHOLD HOLDINGS: Textron Withdraws Limited Objection to Sale
RELATIVITY MEDIA: Stung by Request to Delay Key Hearing
REPUBLIC AIRWAYS: Pilots Nix Vote on Contract Offer
REPUBLIC AIRWAYS: Teamsters Local 357 Snubs Contract Offer
RESPONSE GENETICS: Meeting of Creditors Set for Sept. 16
RESPONSE GENETICS: U.S. Trustee Appoints Creditors' Committee
ROADRUNNER ENTERPRISES: Court OKs Waverly Property Sale for $75K
SABINE OIL: Committee Seeks Green Light to Investigate
SABINE OIL: Creditors Committee Hires Lawyers, Advisors
SABINE OIL: Proposes Performance and Fixed Bonus Programs
SABINE OIL: UST Says Appendix B Guidelines Apply in Case
SABLE NATURAL: Incurs $669,000 Net Loss in Second Quarter
SALON MEDIA: Incurs $644,000 Net Loss in Fiscal First Quarter
SAN BERNARDINO, CA: Dissolves Fire Dept., Hands Contract to County
SANTA FE GOLD: Files Voluntary Chapter 11 Bankruptcy Petition
SANTA ROSA ACADEMY: S&P Revises Rating Outlook to Positive
SEADRILL LTD: Bank Debt Trades at 30% Off
SEANERGY MARITIME: Inks Pact to Acquire 7 Dry Bulk Vessels
SFX ENTERTAINMENT: Moody's Cuts Corporate Family Rating to 'Caa3'
SINO CLEAN: Judge Orders Dismissal of Ex-Chair's Bankruptcy Filing
SOLAR POWER: Incurs $14.2 Million Net Loss in Second Quarter
SOLYNDRA LLC: Misrepresented Facts for Loan Guarantee, Report Says
SPANISH BROADCASTING: Incurs $3.5 Million Net Loss in 2nd Qtr.
TENDER HANDS: Case Summary & 20 Largest Unsecured Creditors
TEXAS REGENCY: US Trustee Unable to Form Creditors' Committee
TONGJI HEALTHCARE: Incurs $87,900 Net Loss in Second Quarter
TRIUMPH GROUP: S&P Lowers Corp Credit Rating to 'BB', Outlook Neg
TRONOX INC: Bank Debt Trades at 5% Off
TXU CORP: Bank Debt Trades at 53% Off
UNITED BANCSHARES: Incurs $118,000 Net Loss in Second Quarter
UNITED BANCSHARES: Reports $14,600 Net Income for First Quarter
USA DISCOUNTERS: In Chapter 11 to Wind Down Business
USA DISCOUNTERS: Proposes KCC as Claims & Noticing Agent
USA DISCOUNTERS: Seeks Approval to Use Cash Collateral
USA DISCOUNTERS: Wants Until Oct. 23 to File Schedules
VERITEQ CORP: Needs More Time to File Form 10-Q
VERTICAL COMPUTER: Needs More Time to File Q2 Form 10-Q
VYCOR MEDICAL: Reports $420K Net Loss for Second Quarter
WALTER ENERGY: Bank Debt Trades at 55% Off
WALTER ENERGY: Faces Objections to Debt-for-Equity Swap
WNA HOLDINGS: S&P Hikes Corp. Credit Rating to 'BB', Off Watch Pos.
ZLOOP INC: Meeting of Creditors Set for Sept. 24
[*] Marijuana Businesses Ineligible for Bankruptcy, Report Says
[^] BOOK REVIEW: Landmarks in Medicine - Laity Lectures
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21ST CENTURY ONCOLOGY: Incurs $64.5 Million Net Loss in Q2
----------------------------------------------------------
21st Century Oncology Holdings, Inc., filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss attributable to shareholder of $64.5 million on $285
million of total revenues for the three months ended June 30, 2015,
compared with a net loss attributable to the Company's shareholder
of $208 million on $266 million of total revenues for the same
period during the prior year.
For the six months ended June 30, 2015, the Company reported a net
loss attributable to the Company's shareholder of $79.8 million on
$564 million of total revenues compared to a net loss attributable
to the Company's shareholder of $238 million on $499 million of
total revenues for the same period a year ago.
As of June 30, 2015, the Company had $1.14 billion in total assets,
$1.28 billion in total liabilities, $378 million in series A
convertible redeemable preferred stock, $68.8 million in
non-controlling interests - redeemable, and total deficit of $588
million.
"We are highly leveraged. As of June 30, 2015, we had $1.0 billion
of long-term debt outstanding. We have experienced and continue to
experience losses from operations. We reported a net loss of
approximately $343.2 million, $78.2 million, and $151 million for
the years ended December 31, 2014, 2013, and 2012, respectively,
and $75.4 million and $234 million for the six month periods ended
June 30, 2015 and 2014, respectively. At June 30, 2015, we had $62
million of unrestricted cash and $122 million of availability under
our revolver," the Company said in the filing.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/plWJLm
About 21st Century
21st Century Oncology, Inc., formerly known as Radiation Therapy
Services, Inc. ("RTS") owns and operates radiation treatment
facilities in the US and Latin America.
* * *
As reported by the TCR on Feb. 27, 2015, Moody's Investors Service
upgraded 21st Century Oncology, Inc.'s Corporate Family Rating and
Probability of Default Rating to B3 and B3-PD, respectively.
The upgrade of the Corporate Family Rating to B3 and SGL to SGL-2
reflects the receipt of a $325 million preferred equity investment
from the Canada Pension Plan Investment Board and subsequent debt
reduction.
In the April 16, 2015, edition of the TCR, Standard & Poor's
Ratings Services affirmed its 'B-' corporate credit rating on Fort
Myers-based cancer care provider 21st Century Oncology Holdings
Inc.
30DC INC: Divests Non-Core Assets, Changes Management
-----------------------------------------------------
30DC, Inc., announced that following an extensive review, the
Company has made the strategic decision to focus on its core
digital publishing solutions. The Company has completed the
divesture of a portfolio of non-core assets and is focusing its
resources and product development effort on its digital publishing
technology. Edward Dale, who has served as 30DC's chief executive
officer since the Company's inception, through a services contract
with Marillion Partnership, has stepped down as CEO and will remain
on the board of directors. Henry Pinskier, the 30DC board
chairman, has agreed to step in as interim CEO.
30DC's digital publishing technology supports the Company's
innovative MagCast Digital Publishing Platform, for which the
Company also offers related training courses and service offerings.
MagCast is aimed at enterprise, bloggers, writers and other
creators of original content. Tablet and smart phone penetration
is driving the usage of digital magazines and other publications to
reach target audiences through mobile applications or "apps."
Publishing software provider Adobe, Inc. estimated that digital
content revenue will grow by five times from $275 million in 2012
to $1.4 billion in 2017. The transition of advertising from print
to digital is also revealed by the building importance of digital
publications to advertisers. The accounting firm Price Waterhouse
Coopers estimated that digital consumer magazine advertising will
more than double in value in five years, growing to $13.6 billion
by 2019 from to $6.4 billion in 2014, and representing 37% of total
global magazine advertising. Focusing resources and product
development in the market for digital publishing tools and services
will afford 30DC the greatest opportunity to achieve long-term
growth.
The non-core portfolio of assets, which consist primarily of
Internet training and e-commerce tools and include The Challenge
and Market Pro Max, were divested in two transactions. For 30DC's
fiscal year ending June 30, 2015, the Company estimates total
revenue from the divested businesses as approximately $335,000. The
Challenge was sold to the Marillion Partnership and Market Pro Max
was sold to Netbloo Media, Ltd., both of which had become
significant shareholders in 30DC when these businesses were
originally purchased by 30DC through the issuance of common stock.
The Marillion transaction included The Challenge, rights to the
Company's coaching and mentoring business, and affiliate marketing
rights. Consideration for the Marillion transaction was the return
of 10 million common shares in 30DC. The Netbloo transaction
included Market Pro Max and a portfolio of e-commerce training
courses. Consideration for the Netbloo transaction was the return
of 6,743,681 common shares in 30DC. As a result of these two
transactions, 30DC has reduced outstanding common shares from
76,853,464 to 60,109,783. Following the transactions Marillion
will hold 8,188,440 shares and Netbloo will hold 6,743,682 shares
in 30DC.
Henry Pinskier, 30DC chairman and Interim CEO who joined the board
in October 2012 and has been chairman since January 2013, commented
that, "there is great opportunity in mobile digital publishing.
30DC's MagCast platform has been well received by content creators
and has been among the top publishing platforms represented in
Apple's iTunes store. We believe it is timely to build on this
success." Mr. Pinskier has agreed to serve as interim CEO until a
permanent CEO is hired and has agreed to be compensated with 30DC
shares and/or stock options.
To reflect the Company's size after the divestitures, 30DC has
reduced operating costs, including administrative support and
professional contractors working with the company. These savings
in addition to the savings from the services contract with
Marillion, through which Mr. Dale served as CEO, total in excess of
$500,000 per year.
About 30DC Inc.
New York-based 30DC, Inc., provides Internet marketing services
and related training to help Internet companies in operating their
businesses. It operates in two divisions, 30 Day Challenge and
Immediate Edge.
As of March 31, 2015, the Company had $2.49 million in total
assets, $2.24 million in total liabilities and $252,000 in total
stockholders' equity.
MaloneBailey, LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the
year ended June 30, 2014. The independent auditors noted that
the Company has accumulated losses from operations since
inception and has a working capital deficit as of June 30, 2014.
These conditions raise substantial doubt about the Company's
ability to continue as a going concern.
AEOLUS PHARMACEUTICALS: Incurs $784,000 Net Loss in 2nd Quarter
---------------------------------------------------------------
Aeolus Pharmaceuticals, Inc., filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $784,000 on $63,000 of contract revenue for the three
months ended June 30, 2015, compared to net income of $1.5 million
on $4.9 million of contract revenue for the same period in 2014.
For the six months ended June 30, 2015, the Company reported a net
loss of $2.2 million on $2.1 million of contract revenue compared
to net income of $445,000 on $7.2 million of contract revenue for
the same period during the prior year.
As of June 30, 2015, the Company had $1.2 million in total assets,
$1.5 million in total liabilities and a stockholders' deficit of
$289,000.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/DmGIvU
About Aeolus Pharmaceuticals
Mission Viejo, California-based Aeolus Pharmaceuticals, Inc., is a
Southern California-based biopharmaceutical company leveraging
significant government investment to develop a platform of novel
compounds in oncology and biodefense. The platform consists of
over 200 compounds licensed from Duke University and National
Jewish Health.
The Company's lead compound, AEOL 10150, is being developed as a
medical countermeasure ("MCM") against the pulmonary sub-syndrome
of acute radiation syndrome ("Pulmonary Acute Radiation Syndrome"
or "Lung-ARS") as well as the gastrointestinal sub-syndrome of
acute radiation syndrome ("GI-ARS"). Both syndromes are caused by
acute exposure to high levels of radiation due to a radiological
or nuclear event. It is also being developed for use as a MCM for
exposure to chemical vesicants such as chlorine gas, sulfur
mustard gas and nerve agents.
Aeolus Pharmaceuticals reported a net loss of $80,000 for the
fiscal year ended Sept. 30, 2014, compared with a net loss of $3.21
million for the fiscal year ended Sept. 30, 2013.
Grant Thornton LLP, in San Diego, California, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Sept. 30, 2014. The independent auditors noted
that the Company has incurred recurring losses and negative cash
flows from operations, and management believes the Company does not
currently possess sufficient working capital to fund its operations
through fiscal 2014. These conditions, among other things, raise
substantial doubt about the Company's ability to continue as a
going concern.
ALLIED NEVADA: Amends Ch. 11 Plan of Reorganization
---------------------------------------------------
Allied Nevada Gold Corp., et al., filed with the U.S. Bankruptcy
Court for the District of Delaware an amended joint Chapter 11 plan
of reorganization ahead of their Aug. 27 disclosure statement
hearing.
The Amended Plan, which has the support of the Official Committee
of Unsecured Creditors and the Official Committee of Equity
Security Holders, provides that holders of Unsecured Claims, which
are estimated to range from $348.5 million to $396.4 million, will
recover 3.3% to 3.8% of their total allowed claim amount. The
Amended Plan also provides that each Holder of an Allowed Unsecured
Claim will receive its Pro Rata share of either (i) 100% of the New
Common Stock, subject to dilution on account of: (a) the conversion
of the New Second Lien Convertible Notes, and (b) the exercise of
the New Warrants or (ii) the Convenience Claim Distribution. Each
Holder of an Allowed Subordinated Securities Claim will receive its
Pro Rata share of the New Warrants. Each Holder of an Allowed
Existing Equity Interest will receive its Pro Rata share of the New
Warrants.
A blacklined version of the Amended Plan dated Aug. 26 is available
at http://bankrupt.com/misc/ANGCds0826.pdf
The voting deadline to accept or reject the plan is Sept. 28.
The Debtors are represented by Ira S. Dizengoff, Esq., Philip C.
Dublin, Esq., Alexis Freeman, Esq., and Matthew C. Fagen, Esq., at
Akin Gump Strauss Hauer & Feld LLP, New York; and Stanley B. Tarr,
Esq., Michael D. DeBaecke, Esq., and Victoria A. Guilfoyle, Esq.,
at Blank Rome LLP, in Wilmington, Delaware.
About Allied Nevada
Allied Nevada Gold Corp. (OTCMKTS: ANVGQ), a Delaware corporation,
is a U.S.-based gold and silver producer engaged in mining,
developing and exploring properties in the State of Nevada. ANV
was spun off from Vista Gold Corp. in 2006 and began operations in
May 2007. Nevada-based mining properties acquired from Vista
include the Hycroft Mine, an open-pit heap leach operation located
54 miles west of Winnemucca, Nevada. ANV controls 75 exploration
properties throughout Nevada as of Dec. 31, 2014.
On March 10, 2015, ANV and 13 affiliated debtors each filed a
voluntary petition for relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 15-10503). The cases
are assigned to Judge Mary F. Walrath.
The Debtors have tapped Blank Rome LLP and Akin Gump Strauss Hauer
& Feld LLP as attorneys; FTI Consulting Inc. as financial advisor;
Moelis & Company as financial advisor; and Prime Clerk LLC as
claims and noticing agent.
ANV disclosed $941 million in total assets and $664 million in
total debt as of Dec. 31, 2014.
The U.S. Trustee appointed three creditors of the company to serve
on the official committee of unsecured creditors. The Committee
retained Arent Fox LLP as co-counsel, and Polsinelli PC as
conflicts counsel. It hired Zolfo Cooper, LLC as bankruptcy
consultant and financial advisors, and Upshot Services LLC as
information agent.
The U.S. Trustee also named an Official Committee of Equity
Security Holders. The Equity Committee is represented by Cole
Schotz P.C.'s Patrick J. Reilley, Esq., and Nicolas J. Brannick,
Esq.; and LeClairRyan's Janice B. Grubin, Esq., Gregory J.
Mascitti, Esq., Richard A. McGuirk, Esq., and Michael J.
Crosnicker, Esq. The Equity Committee has hired Navigant
Consulting, Inc. as financial advisor; and Runge, Inc. dba
RungePincockMinarco as technical mining expert.
* * *
Allied Nevada Gold Corp., et al.'s joint plan of reorganization
incorporates the terms of the prepetition plan support agreement
reached by the Debtors with holders of at least 67% of the
aggregate outstanding principal amount of the Notes and 100% of the
Holders of Secured ABL Claims and Secured Swap Claims.
Pursuant to the plan support agreement, each Holder of an Allowed
Secured ABL Claim will receive (i) its Pro Rata share of the
Secured ABL/Swap Cash Payments not made prior to the Effective Date
and (ii) an amount of New First Lien Term Loans in an aggregate
principal amount equal to (A) the amount of allowed claims pursuant
to Section 2.7(b) of the Plan minus (B) the amount paid in cash in
respect of the Secured ABL Claims pursuant to clause (i) of Section
2.7(c) of the Plan. In addition, for the avoidance of doubt, any
unpaid amounts owed to the holders of Secured ABL Claims pursuant
to Section 11 of the DIP Facility Order will be due and payable in
cash on the Effective Date.
A full-text copy of the Disclosure Statement dated April 24, 2015,
is available at http://bankrupt.com/misc/ALLIEDds0424.pdf
ALLIED NEVADA: Exclusive Plan Filing Date Extended to Nov. 5
------------------------------------------------------------
Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District
of Delaware extended Allied Nevada Gold Corp., et al.'s exclusive
plan filing period through and including Nov. 5, 2015, and their
exclusive plan solicitation period through and including Jan. 4,
2016.
About Allied Nevada
Allied Nevada Gold Corp. (OTCMKTS: ANVGQ), a Delaware corporation,
is a U.S.-based gold and silver producer engaged in mining,
developing and exploring properties in the State of Nevada. ANV
was spun off from Vista Gold Corp. in 2006 and began operations in
May 2007. Nevada-based mining properties acquired from Vista
include the Hycroft Mine, an open-pit heap leach operation located
54 miles west of Winnemucca, Nevada. ANV controls 75 exploration
properties throughout Nevada as of Dec. 31, 2014.
On March 10, 2015, ANV and 13 affiliated debtors each filed a
voluntary petition for relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 15-10503). The cases
are assigned to Judge Mary F. Walrath.
The Debtors have tapped Blank Rome LLP and Akin Gump Strauss Hauer
& Feld LLP as attorneys; FTI Consulting Inc. as financial advisor;
Moelis & Company as financial advisor; and Prime Clerk LLC as
claims and noticing agent.
ANV disclosed $941 million in total assets and $664 million in
total debt as of Dec. 31, 2014.
The U.S. Trustee appointed three creditors of the company to serve
on the official committee of unsecured creditors. The Committee
retained Arent Fox LLP as co-counsel, and Polsinelli PC as
conflicts counsel. It hired Zolfo Cooper, LLC as bankruptcy
consultant and financial advisors, and Upshot Services LLC as
information agent.
The U.S. Trustee also named an Official Committee of Equity
Security Holders. The Equity Committee is represented by Cole
Schotz P.C.'s Patrick J. Reilley, Esq., and Nicolas J. Brannick,
Esq.; and LeClairRyan's Janice B. Grubin, Esq., Gregory J.
Mascitti, Esq., Richard A. McGuirk, Esq., and Michael J.
Crosnicker, Esq. The Equity Committee has hired Navigant
Consulting, Inc. as financial advisor; and Runge, Inc. dba
RungePincockMinarco as technical mining expert.
* * *
Allied Nevada Gold Corp., et al.'s joint plan of reorganization
incorporates the terms of the prepetition plan support agreement
reached by the Debtors with holders of at least 67% of the
aggregate outstanding principal amount of the Notes and 100% of the
Holders of Secured ABL Claims and Secured Swap Claims.
Pursuant to the plan support agreement, each Holder of an Allowed
Secured ABL Claim will receive (i) its Pro Rata share of the
Secured ABL/Swap Cash Payments not made prior to the Effective Date
and (ii) an amount of New First Lien Term Loans in an aggregate
principal amount equal to (A) the amount of allowed claims pursuant
to Section 2.7(b) of the Plan minus (B) the amount paid in cash in
respect of the Secured ABL Claims pursuant to clause (i) of Section
2.7(c) of the Plan. In addition, for the avoidance of doubt, any
unpaid amounts owed to the holders of Secured ABL Claims pursuant
to Section 11 of the DIP Facility Order will be due and payable in
cash on the Effective Date.
A full-text copy of the Disclosure Statement dated April 24, 2015,
is available at http://bankrupt.com/misc/ALLIEDds0424.pdf
AMERICAN LIBERTY: Needs to Borrow $100K in DIP Loan
---------------------------------------------------
American Liberty Oil Company, LP, seeks authority from the United
States Bankruptcy Court for the Northern District of Texas Dallas
Division, to borrow $100,000, secured by liens on unencumbered
property of the estate, and make drop down loans to its subsidiary,
Star Brand Cattle Company, for purposes of business operating
expenses.
The Debtor explains that credit is needed to fund operations during
its bankruptcy case. Accordingly, to avoid any disruption in
operations resulting from changes in cash flow, the Debtor believes
that it is essential and prudent to obtain additional financing on
a secured basis reasonable terms and conditions in accordance with
Sections 363 and 364 of the Bankruptcy Code.
Climbing Tree Holdings LLC, the DIP Lender, agrees to provide for a
non-amortizing revolving credit facility of up to $100,000 for
revolving advances to the Borrower. The DIP Loan bears interest on
the unpaid principal amount thereof from the date the Loan is
advanced until maturity at a rate per annum equal to the sum of
8.0% payable by the Debtor monthly in arrears on the last day of
each calendar month in each year and at maturity.
The Debtor asserts that Drop Down Loans will allow the it to pay
employees, suppliers, and service providers and run the business to
the greatest extent possible as it did prior to the Petition Date.
Making the Drop Down Loans is essential to the maximize value for
the creditors and successfully reorganize, the Debtor adds.
The Debtor is represented by:
Hudson Jobe, Esq.
Timothy A. York, Esq.
QUILLING SELANDER LOWNDS, WINSLETT & MOSER, P.C.
2001 Bryan Street, Suite 1800
Dallas, Texas 75201
Tel: (214) 871-2100
Fax: (214) 871-2111
Email: hjobe@qslwm.com
tyork@qslwm.com
About American Liberty
Kaufman, Texas-based American Liberty Oil Company, LP filed a
Chapter 11 bankruptcy petition (Bankr. N.D. Tex. Case No.
15-32019)
on May 6, 2015. The petition was signed by Wreno S. Wynne, Jr.,
as
managing partner of ALOC LLC.
The Hon. Stacey G. Jernigan presides over the case. Quilling,
Selander, Lownds, Winslett & Moser, P.C., serves as the Debtor's
counsel.
AMERICAN LIBERTY: Wants Ranchland General Partner Replaced
----------------------------------------------------------
American Liberty Oil Company, LP, seeks authority from the United
States Bankruptcy Court for the Northern District of Texas, Dallas
Division, to call and cast votes at meeting of Ranchland Holdings
Ltd. for the purpose of removing Celadon Development, LLC, and
electing a new entity as general partner of Ranchland that will be
under the control of Wes and Erin Wynne and that will authorize the
bankruptcy filing of Ranchland and take other appropriate actions
on Ranchland's behalf.
The Debtor owns 99% of Ranchland, while Celadon is its 1% owner
general partner. Ranchland owns 335 acres of undeveloped ranchland
that is contiguous with the Debtor's real property. This land
serves as security for a debt to Citizens National Bank of Texas in
the approximate amount of $600,000. The Debtor has been evaluating
a possible bankruptcy filing by Ranchland, and that filing is now
required for several reasons, including CNB's July 15, 2015 notice
of default to Ranchland.
JW GST Exempt Trust and James Y. Wynne object to the Debtor's
request and complain that the motion is an attempt to vest the
bankruptcy court with jurisdiction over the "power struggle" and
utilize the bankruptcy court's mantel of authority to funnel money
around the Debtor -- due to this "power struggle" -- to another
limited partnership in which the Debtor has a limited interest:
Ranchland. JW and James Wynne ask the Bankruptcy Court to withdraw
the reference for the motion to serve the interests of judicial
efficiency, avoid unnecessary delay and expense, and forestall the
Debtor's clear attempt to engage in forum shopping.
JW and James Wynne also asks the Bankruptcy Court to (a) abstain
from hearing the Motion under 28 U.S.C. section 1334(c)(2); and (b)
abstain from hearing the Motion until the Tyler bankruptcy court
has determined whether to remand pursuant to section 1452(b). JW
and James Wynne explain that the calling of a Ranchland meeting is
not even a "civil action," and arguably, absent the presumed
"related to" jurisdiction provided for under 11 U.S.C. section
1334(b), the Bankruptcy Court, and the district court from which
this case was referred, would lack jurisdiction over the Motion and
abstention is therefore mandatory.
The Debtor is rpresented by:
Hudson Jobe, Esq.
Timothy A. York, Esq.
QUILLING SELANDER LOWNDS, WINSLETT & MOSER, P.C.
2001 Bryan Street, Suite 1800
Dallas, Texas 75201
Tel: (214) 871-2100
Fax: (214) 871-2111
Email: hjobe@qslwm.com
tyork@qslwm.com
JW GST Exempt Trust and James Y. Wynne are represented by:
Alan B. Padfield, Esq.
Mark W. Stout, Esq.
Christopher V. Arisco, Esq.
PADFIELD & STOUT, L.L.P.
421 W. Third Street, Suite 910
Fort Worth, Texas 76102
Tel: (817) 338-1616
Fax: (817) 338-1610
Email: abp@livepad.com
About American Liberty
Kaufman, Texas-based American Liberty Oil Company, LP filed a
Chapter 11 bankruptcy petition (Bankr. N.D. Tex. Case No.
15-32019)
on May 6, 2015. The petition was signed by Wreno S. Wynne, Jr.,
as
managing partner of ALOC LLC.
The Hon. Stacey G. Jernigan presides over the case. Quilling,
Selander, Lownds, Winslett & Moser, P.C., serves as the Debtor's
counsel.
AMERICAN POWER: Incurs $1.8 Million Net Loss in Third Quarter
-------------------------------------------------------------
American Power Group Corporation filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss available to common stockholders of $1.8 million on
$555,662 of net sales for the three months ended June 30, 2015,
compared to net income available to common stockholders of $7.6
million on $1.7 million of net sales for the same period a year
ago.
For the nine months ended June 30, 2015, the Company reported net
income available to common stockholders of $883,183 on $2.1 million
of net sales compared to a net loss available to common
stockholders of $3 million on $4.8 million of net sales for the
same period last year.
As of June 30, 2015, the Company had $8.9 million in total assets,
$7.7 million in total liabilities and $1.1 million in total
stockholders' equity.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/T0R60w
About American Power Group
American Power Group's alternative energy subsidiary, American
Power Group, Inc., provides a cost-effective patented Turbocharged
Natural Gas conversion technology for vehicular, stationary and
off-road mobile diesel engines. American Power Group's dual fuel
technology is a unique non-invasive energy enhancement system that
converts existing diesel engines into more efficient and
environmentally friendly engines that have the flexibility to run
on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and
compressed natural gas; (3) diesel fuel and pipeline or well-head
gas; and (4) diesel fuel and bio-methane, with the flexibility to
return to 100 percent diesel fuel operation at any time. The
proprietary technology seamlessly displaces up to 80% of the
normal diesel fuel consumption with the average displacement
ranging from 40 percent to 65 percent. The energized fuel balance
is maintained with a proprietary read-only electronic controller
system ensuring the engines operate at original equipment
manufacturers' specified temperatures and pressures. Installation
on a wide variety of engine models and end-market applications
require no engine modifications unlike the more expensive invasive
fuel-injected systems in the market. Additional information at
http://www.americanpowergroupinc.com/
American Power reported a net loss available to common stockholders
of $2.92 million on $7.01 million of net sales for the year ended
Sept. 30, 2013.
ANDALAY SOLAR: Delays Second Quarter Form 10-Q
----------------------------------------------
Andalay Solar, Inc., was unable, without unreasonable effort or
expense, to file its quarterly report on Form 10-Q for the three
and six months ended June 30, 2015, by the Aug. 14, 2015, filing
date applicable to smaller reporting companies due to a delay
experienced by the Company in completing its financial statements
and other disclosures in the Quarterly Report. As a result, the
Company is still in the process of compiling required information
to complete the Quarterly Report and financial statements to be
incorporated in the Quarterly Report. The Company anticipates that
it will file the Quarterly Report no later than the fifth calendar
day following the prescribed filing date.
About Andalay Solar
Founded in 2001, Andalay Solar, Inc., formerly Westinghouse Solar,
Inc., is a provider of innovative solar power systems. In 2007,
the Company pioneered the concept of integrating the racking,
wiring and grounding directly into the solar panel. This
revolutionary solar panel, branded "Andalay", quickly won industry
acclaim. In 2009, the Company again broke new ground with the
first integrated AC solar panel, reducing the number of components
for a rooftop solar installation by approximately 80 percent and
lowering labor costs by approximately 50 percent. This AC panel,
which won the 2009 Popular Mechanics Breakthrough Award, has
become the industry's most widely installed AC solar panel. A new
generation of products named "Instant Connect" was introduced in
2012 and is expected to achieve even greater market acceptance.
Andalay Solar reported a net loss attributable to common
stockholders of $1.87 million for the year ended Dec. 31, 2014,
compared with a net loss attributable to common stockholders of
$3.85 million for the year ended Dec. 31, 2013.
As of March 31, 2015, the Company had $2.55 million in total
assets, $4.68 million in total liabilities and a $2.12 million
total stockholders' deficit.
Burr Pilger Mayer, Inc., in San Jose, California, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2014, citing that the Company's significant
operating losses and negative cash flow from operations raise
substantial doubt about its ability to continue as a going concern.
APOLLO MEDICAL: Delays Second Quarter Form 10-Q
-----------------------------------------------
Apollo Medical Holdings, Inc., filed with the U.S. Securities and
Exchange Commission a Notification of Late Filing on Form 12b-25
with respect to its quarterly report on Form 10-Q for the quarter
ended June 30, 2015. The Company said the compilation,
dissemination and review of the information required to be
presented in the Form 10-Q has imposed time constraints. The
Company expects to file that report no later than five days after
its original prescribed due date.
The Company has experienced organic growth, made various
acquisitions and entered into various strategic transactions during
the periods since the quarter ended June 30, 2014, that have had a
significant effect on its results of operations. As a result, for
the three months ended June 30, 2015, compared to the three months
ended June 30, 2014, the Company currently expects net revenues
will have increased to approximately $10.2 million from
approximately $4.1 million and net loss will have increased to
approximately $2.3 from approximately $1.5 million.
About Apollo Medical
Glendale, Calif.-based Apollo Medical Holdings, Inc., provides
hospitalist services in the Greater Los Angeles, California area.
Hospitalist medicine is organized around the admission and care of
patients in an inpatient facility such as a hospital or skilled
nursing facility and is focused on providing, managing and
coordinating the care of hospitalized patients.
Apollo Medical reported a net loss attributable to the Company of
$1.8 million on $32.9 million of net revenues for the year ended
March 31, 2015, compared to a net loss attributable to the Company
of $5 million on $10.5 million of net revenues for the year ended
Jan. 31, 2014.
As of March 31, 2015, the Company had $14.9 million in total
assets, $15.9 million in total liabilities and a $990,184 total
stockholders' deficit.
ARKANOVA ENERGY: Incurs $960,000 Net Loss in Second Quarter
-----------------------------------------------------------
Arkanova Energy Corporation filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $960,293 on $114,292 of total revenue for the three months ended
June 30, 2015, compared to a net loss of $999,806 on $231,847 of
total revenue for the same period during the prior year.
For the nine months ended June 30, 2015, the Company reported a net
loss of $2.7 million on $364,600 of total revenue compared to a net
loss of $2.4 million on $657,665 of total revenue for the same
period a year ago.
As of June 30, 2015, the Company had $4.1 million in total assets,
$18.4 million in total liabilities and total stockholders' deficit
of $14.3 million.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/92LeKW
About Arkanova
Austin, Tex.-based Arkanova Energy Corporation is a junior
producing oil and gas company and is also engaged in the
acquisition, exploration and development of prospective oil and
gas properties. It holds mineral leases in Delores County, Lone
Mesa State Park, Colorado and leasehold interests located in
Pondera and Glacier Counties, Montana.
The Company reported a net loss of $3 million on $844,000 of total
revenue for the year ended Sept. 30, 2014, compared with a net loss
of $2.73 million on $849,900 of total revenue for the year ended
Sept. 30, 2013.
ATLANTIC & PACIFIC: Allowed to Pay Suppliers, Service Providers
---------------------------------------------------------------
The Great Atlantic & Pacific Tea Company, Inc. received court
approval to pay what they owe to their suppliers and service
providers.
The order, issued by U.S. Bankruptcy Judge Robert Drain, allows
Great Atlantic to pay Blackhawk Network Inc., Western Union
Financial Services Inc., lottery agencies and suppliers of the
company.
The company is also allowed to honor its obligations under its
consignment agreements with suppliers, and an agreement with
Coinstar Inc., a supplier of automated coin counting machines.
As of July, 19, 2015, Great Atlantic owes Blackhawk about $1.1
million in gift card proceeds while it owes $500,000 to lottery
agencies for products sold.
Meanwhile, the company owes Western Union $500,000 in money order
funds and $100,000 in convenience pay funds, court filings show.
About Atlantic & Pacific
Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea
Company, Inc., and its affiliates are one of the nation's oldest
leading supermarket and food retailers, operating approximately 300
supermarkets, beer, wine, and liquor stores, combination food and
drug stores, and limited assortment food stores across six
Northeastern states. The primary retail operations consist of
supermarkets operated under a variety of well known trade names, or
"banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food
Basics, The Food Emporium, Best Cellars, and A&P Liquors. The
Company employs approximately 28,500 employees, over 90% of whom
are members of one of twelve local unions whose members are
employed by the Debtors under the authority of 35 separate
collective bargaining agreements.
Then with 429 stores, A&P and its affiliates filed Chapter 11
petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and
in 2012 emerged from Chapter 11 bankruptcy as a privately held
company with 320 supermarkets.
On July 19, 2015, with 300 stores, A&P and 20 affiliated debtors
each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching
deals for the going concern sales of 120 stores. The Debtors are
seeking joint administration under Case No. 15-23007.
As of Feb. 28, 2015, the Debtors reported total assets of $1.6
billion and liabilities of $2.3 billion.
The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore
Group L.L.C., as investment banker, FTI Consulting, Inc., as
financial advisor, Hilco Real Estate, LLC, as real estate advisor,
and Prime Clerk LLC, as claims and noticing agent.
The U.S. Trustee for Region 2 appointed seven creditors of The
Great Atlantic & Pacific Tea Co. to serve on the official committee
of unsecured creditors.
ATLANTIC & PACIFIC: Has Final Authority to Obtain $100MM DIP Loan
-----------------------------------------------------------------
Judge Robert D. Drain of the United States Bankruptcy Court
Southern District of New York gave The Great Atlantic & Pacific Tea
Company, Inc., et al., final authority to obtain $100,000,000 in
secured third priority postpetition financing and use cash
collateral securing their prepetition indebtedness.
Fortress Credit Corp., and a consortium of lenders, committed to
provide the DIP Loan, which accrues interest at LIBOR + 11.5%.
Default interest rate is the base rate plus 2.00% per annum. The
Debtors, under the DIP Loan Documents, are required to sell their
stores, other real estate, and personal property having a minimum
value of $275.0 million.
As of the Petition Date, the Debtors are liable to the following
lenders:
Prepetition ABL Secured Parties $198,063,821
Prepetition Term Loan Lenders $262,500,000
Also, as of the Petition Date, the outstanding face amount of the
Prepetition PIK Notes was $215 million and the outstanding face
amount of the Prepetition Convertible Notes was $250 million.
Judge Drain overruled the objections raised by the Official
Committee of Unsecured Creditors and the Pension Benefit Guaranty
Corporation.
The Committee contended that the Court should only approve a DIP
financing only if that financing is in the best interest of the
general creditor body. Here, the DIP Facility is nothing more than
the foundation of a scheme by the prepetion lenders and the Debtors
to effectuate a controlled liquidation for the benefit of the
secured creditors, the Committee argued.
The PBGC informed the Court that it does not object to DIP
financing that is necessary, reasonable, and adequate for the
Debtors. However, the need for DIP Financing does not justify
entry of an order with improper provisions, the PBGC asserted.
PBGC objected to inclusion in a Final Order of the following
unacceptable terms: (1) liens on proceeds of avoidance actions; (2)
short sale deadlines; (3) unreasonable challenge or investigation
limits; (4) failure to reserve recharacterization rights; and (5)
automatic validation of prepetition debts and credit bid amounts.
The Debtors, in response to the Committee's objection, explained
that the Financing Package is necessary to allow the Debtors to
complete each phase of the Sale Strategy, which is designed to
facilitate going concern sales for as many of the Debtors' stores
as possible, in an effort to save as many jobs as possible. The
Creditors' Committee offers no evidence to support its assertion
that administrative insolvency is a foregone conclusion, the
Debtors said.
The prepetition term loan lenders and prepetition ABL lenders, in
opposition to the Committee's objection, stated that the universal
recognition of the oversecured status of the Prepetition ABL and
the Term Lenders means that approving the cash collateral use on
the agreed terms not only provides the Debtors with a consensual
financing package to implement its business plan but means that
there is little risk to unsecured creditors that they will be
harmed by approval of the agreed adequate protection.
The Majority Holders of Prepetition PIK Notes also contradicted the
Committee's allegations and asserted that the Committee seeks to
effectively re-write the DIP Order and selectively choose those
aspects of the integrated financing and adequate protection package
it deems appropriate. Borrowings from the DIP Financing, coupled
with the Debtors' access to Cash Collateral, will enable the
Debtors to maintain the going concern bids currently in hand, avoid
cessation of operations and pursue their sale strategy—which
maximizes value for the benefit of all constituencies and preserves
jobs, the Holders added.
The Debtors are represented by:
Ray C. Schrock, P.C., Esq.
Garrett A. Fail, Esq.
WEIL, GOTSHAL & MANGES LLP
767 Fifth Avenue
New York, New York 10153
Tel: (212) 310-8000
Fax: (212) 310-8007
Email: ray.schrock@weil.com
Garrett.fail@weil.com
The Official Committee of Unsecured Creditors is represented by:
Robert J. Feinstein, Esq.
Bradford J. Sandler, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
780 Third Avenue, 34th Floor
New York, New York 10017
Tel: (212) 561-7700
Fax: (212) 561-7777
Email: rfeinstein@pszjlaw.com
bsandler@pszjlaw.com
Wells Fargo Bank, National Association, as Prepetition Term Loan
Agent are represented by:
Jonathan N. Helfat, Esq.
Daniel F. Fiorillo, Esq.
OTTERBOURG P.C. 230 Park Avenue
New York, New York 10169
Tel: (212) 661-9100
Fax: (212) 682-6104
Email: jhelfat@otterbourg.com
dfiorillo@otterbourg.com
-- and --
Kevin Simard, Esq.
John F. Ventola
CHOATE HALL & STEWART LLP
Two International Place
Boston, MA 02110
Tel: 617-248-5297
Fax: 617-502-4000
Email: ksimard@choate.com
jventola@choate.com
Pension Benefit Guaranty Corporation is represented by:
Israel Goldowitz, Esq.
Charles L. Finke, Esq.
Lori A. Butler, Esq.
Damarr M. Butler, Esq.
Thea D. Davis, Esq.
Office of the Chief Counsel
1200 K Street, N.W.
Washington, D.C. 20005
Tel: (202) 326-4020, ext. 6883
Fax: (202) 326-4112
Emails: butler.damarr@pbgc.gov
efile@pbgc.gov
The Majority Holders of Prepetition PIK Notes is represented by:
Kristopher M. Hansen, Esq.
Erez E. Gilad, Esq.
Joshua M. Siegel, Esq.
STROOCK & STROOCK & LAVAN LLP
180 Maiden Lane
New York, New York 10038-4982
Tel: (212) 806-5400
Fax: (212) 806-6006
Email: egilad@stroock.com
jsiegel@stroock.com
khansen@stroock.com
About Atlantic & Pacific
Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea
Company, Inc., and its affiliates are one of the nation's oldest
leading supermarket and food retailers, operating approximately
300
supermarkets, beer, wine, and liquor stores, combination food and
drug stores, and limited assortment food stores across six
Northeastern states. The primary retail operations consist of
supermarkets operated under a variety of well known trade names,
or
"banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food
Basics, The Food Emporium, Best Cellars, and A&P Liquors. The
Company employs approximately 28,500 employees, over 90% of whom
are members of one of twelve local unions whose members are
employed by the Debtors under the authority of 35 separate
collective bargaining agreements.
Then with 429 stores, A&P and its affiliates filed Chapter 11
petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010,
and in 2012 emerged from Chapter 11 bankruptcy as a privately held
company with 320 supermarkets.
On July 19, 2015, with 300 stores, A&P and 20 affiliated debtors
each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching
deals for the going concern sales of 120 stores. The Debtors are
seeking joint administration under Case No. 15-23007.
As of Feb. 28, 2015, the Debtors reported total assets of $1.6
billion and liabilities of $2.3 billion.
The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore
Group L.L.C., as investment banker, FTI Consulting, Inc., as
financial advisor, Hilco Real Estate, LLC, as real estate advisor,
and Prime Clerk LLC, as claims and noticing agent.
The U.S. Trustee for Region 2 appointed seven creditors of The
Great Atlantic & Pacific Tea Co. to serve on the official
committee
of unsecured creditors.
ATLANTIC & PACIFIC: Wants $5M Incentive Pay for Key Employees
-------------------------------------------------------------
Hoa Nguyen at Lohud.com reports that the Great Atlantic & Pacific
Tea Co. is asking the Hon. Robert Drain of the U.S. Bankruptcy
Court for the Southern District of New York to approve a $5 million
incentive pay for the Company's "key" non-union employees.
Lohud.com relates that the Company, which has lost 54 key workers
since its bankruptcy filing in July, wants to set aside funds to
pay selected employees an extra 4 to 63 percent of their base
salary in exchange for them continuing to do their job. The report
states that under the Company's proposed key employee retention
program, 495 non-union workers who work at corporate headquarters
or at various stores would receive a round of incentive pay in
October. The Company said in court documents that about half would
lose their jobs while the other half would be eligible for a second
round of incentive pay if they continue working through Decembe.
Christopher McGarry, the Company's chief restructuring officer,
said in court documents, "Indeed, valuable employees have resigned
at an alarming rate."
According to Lohud.com, the Company said that losing additional
employees with deep knowledge of store operations, security,
merchandising, legal, finance, human resources and information
technology would threaten its sales strategy. The report states
that the Company is in the midst of shutting down 25 stores in New
Jersey, Long Island and Pennsylvania, and selling the rest of its
roughly 300 locations to pay off creditors.
Mr. McGarry, Lohud.com relates, said that union employees working
in the Company's stores are "incentivized" to continue working to
make a good impression on potential future owners, and they have
better benefits than non-union ones. If they were to be included
in the program, they would be eligible for "as low as a few hundred
dollars," the report adds, citing Mr. McGarry.
About Atlantic & Pacific
Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea
Company, Inc., and its affiliates are one of the nation's oldest
leading supermarket and food retailers, operating approximately 300
supermarkets, beer, wine, and liquor stores, combination food and
drug stores, and limited assortment food stores across six
Northeastern states. The primary retail operations consist of
supermarkets operated under a variety of well known trade names, or
"banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food
Basics, The Food Emporium, Best Cellars, and A&P Liquors. The
Company employs approximately 28,500 employees, over 90% of whom
are members of one of twelve local unions whose members are
employed by the Debtors under the authority of 35 separate
collective bargaining agreements.
Then with 429 stores, A&P and its affiliates filed Chapter 11
petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010,
and in 2012 emerged from Chapter 11 bankruptcy as a privately held
company with 320 supermarkets.
On July 19, 2015, with 300 stores, A&P and 20 affiliated debtors
each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching
deals for the going concern sales of 120 stores. The Debtors are
seeking joint administration under Case No. 15-23007.
As of Feb. 28, 2015, the Debtors reported total assets of $1.6
billion and liabilities of $2.3 billion.
The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore
Group L.L.C., as investment banker, FTI Consulting, Inc., as
financial advisor, Hilco Real Estate, LLC, as real estate advisor,
and Prime Clerk LLC, as claims and noticing agent.
The U.S. Trustee for Region 2 appointed seven creditors of The
Great Atlantic & Pacific Tea Co. to serve on the official committee
of unsecured creditors.
BAHA MAR: Files Ch. 11 Plan to Complete Bahamas Project
-------------------------------------------------------
Northshore Mainland Services, Inc., and its debtor affiliates,
including Baha Mar Enterprises Ltd., filed with the U.S. Bankruptcy
Court for the District of Delaware a Joint Chapter 11 Plan of
Reorganization to present the best available alternative to allow
for the expeditious resumption and completion of construction of
the 3.3 million square foot resort complex located in Cable Beach,
Nassau, The Bahamas.
Once completed, the Project is projected to generate nearly 5,000
new jobs and have an annual payroll in excess of $130 million,
representing 12% of the GDP of The Bahamas. All cash
considerations necessary for the Reorganized Debtors to make Plan
Distributions will be obtained from existing cash balances, the
operations of the Debtors or the Reorganized Debtors, or the Exit
Financing. In accordance with the Plan, Baha Mar Ltd. will issue
or authorize the issuance of the New Baha Mar Common Equity.
The Debtors sought leave to file the Plan without filing an
accompanying disclosure statement regarding the Plan. The Debtors
said they are currently anticipate filing a Disclosure Statement in
the near term. In addition to operating their businesses in
Chapter 11, the Debtors said they have had to devote significant
efforts to, including, without limitation, negotiating,
documenting, and implementing their debtor-in-possession financing;
and objecting to motions to dismiss the Chapter 11. The Debtors
said they have been able to formulate the Plan and sought to file
it at this time without concurrently filing the Disclosure
Statement to provide the Court with insight regarding the Debtors'
vision of the forward progression of the Chapter 11 Cases. The
Debtors added that they have not been able to complete a Disclosure
Statement to accompany the Plan due to the urgency of matters
described above, but currently anticipate completing and filing the
Disclosure Statement in the near term.
A full-text copy of the Plan is available at
http://bankrupt.com/misc/BAHAplan0826.pdf
The Debtors are represented by Laura Davis Jones, Esq., James E.
O'Neill, Esq., Colin R. Robinson, Esq., Peter J. Keane, Esq., at
Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware; Paul S.
Aronzon, Esq., and Mark Shinderman, Esq., at Milbank, Tweed, Hadley
& McCloy LLP, in Los Angeles, California; and Tyson Lomazow, Esq.,
Thomas J. Matz, Esq., and Steven Z. Szanzer, Esq., at Milbank,
Tweed, Hadley & McCloy LLP, in New York.
About Baha Mar
Orlando, Florida-based Northshore Mainland Services Inc., Baha
Mar Enterprises Ltd., and their affiliates sought protection
under Chapter 11 of the Bankruptcy Code on June 29, 2015 (Bankr.
D.Del., Case No. 15-11402). Baha Mar owns, and is in the final
stages of developing, a 3.3 million square foot resort complex
located in Cable Beach, Nassau, The Bahamas.
The case is assigned to Judge Kevin J. Carey.
The Debtors are represented by Paul S. Aronzon, Esq., and Mark
Shinderman, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Los
Angeles, California; and Gerard Uzzi, Esq., Thomas J. Matz, Esq.,
and Steven Z. Szanzer, Esq., at Milbank, Tweed, Hadley & McCloy
LLP, in New York. The Debtors' Delaware counsel are Laura Davis
Jones, Esq., James E. O'Neill, Esq., Colin R. Robinson, Esq., and
Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware. The Debtors' Bahamian counsel is Glinton
Sweeting O'Brien. The Debtors' special litigation counsel is
Kobre & Kim LLP. The Debtors' construction counsel is Glaser
Weil Fink Howard Avchen & Shapiro LLP.
The Debtors' investment banker and financial advisor is Moelis
Company LLC. The Debtors' claims and noticing agent is Prime
Clerk LLC.
BAHA MAR: Files Chapter 11 Plan of Reorganization
-------------------------------------------------
Baha Mar on Aug. 27 disclosed that its affiliated entities that
commenced chapter 11 cases before the United States Bankruptcy
Court for the District of Delaware on June 29, 2015 have filed a
Chapter 11 Plan of Reorganization with the Bankruptcy Court.
Baha Mar stated, "The filing of the chapter 11 plan is an important
step in Baha Mar's restructuring efforts. The plan presents a
viable framework for Baha Mar's emergence from Chapter 11 and the
expeditious resumption and completion of the construction of Baha
Mar. Most notably, the plan provides that valid claims of Bahamian
creditors and the Government of the Bahamas will be unaffected by
the Chapter 11 and, upon implementation of the plan, would be paid
in the ordinary course of business.
"Baha Mar's priority is to complete the resort's construction
properly and open successfully as soon as possible. The plan is
structured to enable Baha Mar to achieve this objective. Once
completed, Baha Mar is projected to generate nearly 5000 new jobs
in The Bahamas and have an annual payroll in excess of $130
million, representing nearly 12% of the GDP of The Bahamas."
The Baha Mar entities that are debtors in the chapter 11 cases
currently pending before the United States Bankruptcy Court for the
District of Delaware are: Northshore Mainland Services Inc. (9087);
Baha Mar Enterprises Ltd.; Baha Mar Entertainment Ltd.; Baha Mar
Land Holdings Ltd.; Baha Mar Leasing Company Ltd.; Baha Mar Ltd.;
Baha Mar Operating Company Ltd.; Baha Mar Properties Ltd.; Baha Mar
Sales Company Ltd.; Baha Mar Support Services Ltd.; BML Properties
Ltd.; BMP Golf Ltd.; BMP Three Ltd.; Cable Beach Resorts Ltd.; and
Riviera Golf Ventures Ltd.
About Baha Mar
Orlando, Florida-based Northshore Mainland Services Inc., Baha Mar
Enterprises Ltd., and their affiliates sought protection under
Chapter 11 of the Bankruptcy Code on June 29, 2015 (Bankr. D.Del.,
Case No. 15-11402). Baha Mar owns, and is in the final stages of
developing, a 3.3 million square foot resort complex located in
Cable Beach, Nassau, The Bahamas.
The case is assigned to Judge Kevin J. Carey.
The Debtors are represented by Paul S. Aronzon, Esq., and Mark
Shinderman, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Los
Angeles, California; and Gerard Uzzi, Esq., Thomas J. Matz, Esq.,
and Steven Z. Szanzer, Esq., at Milbank, Tweed, Hadley & McCloy
LLP, in New York. The Debtors' Delaware counsel are Laura Davis
Jones, Esq., James E. O'Neill, Esq., Colin R. Robinson, Esq., and
Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware. The Debtors' Bahamian counsel is Glinton
Sweeting O'Brien. The Debtors' special litigation counsel is Kobre
& Kim LLP. The Debtors' construction counsel is Glaser Weil Fink
Howard Avchen & Shapiro LLP.
The Debtors' investment banker and financial advisor is Moelis
Company LLC. The Debtors' claims and noticing agent is Prime Clerk
LLC.
BERNARD L. MADOFF: Judge Authorizes Latest Fee Request for Trustee
------------------------------------------------------------------
Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review,
reported that the law firm leading the charge to recover the funds
that Bernard Madoff stole from investors will receive nearly $50
million in fees, a bankruptcy judge ruled.
According to the report, Judge Stuart Bernstein of the U.S.
Bankruptcy Court in Manhattan authorized the fees charged by
liquidation trustee Irving Picard and his law firm, Baker &
Hostetler LLP, for four months of work, as well as the release of
previously approved fees that had been held back.
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.
BG MEDICINE: Reports $2 Million Net Loss for Second Quarter
-----------------------------------------------------------
BG Medicine, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $2 million on $505,000 of product revenues for the three months
ended June 30, 2015, compared to a net loss of $2.16 million on
$799,000 of product revenues for the same period during the prior
year.
For the six months ended June 30, 2015, the Company reported a net
loss of $3.3 million on $942,000 of product revenues compared to a
net loss of $4.3 million on $1.5 million of product revenues for
the same period a year ago.
As of June 30, 2015, the Company had $1.3 million in total assets,
$3.7 million in total liabilities and a stockholders' deficit of
2.3 million.
"Our primary focus in the first half of 2015 has been to ensure
that we have adequate resources to provide support to the
development, market introduction and market expansion of automated
testing for galectin-3 by our automated partners," said Paul R.
Sohmer, M.D., president and chief executive officer of BG Medicine.
"To this end, we raised additional capital, we continued to reduce
our operating expenses and cash burn, and we paid off our secured
term loan and are now debt free."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/qu6CKR
About BG Medicine
Waltham, Mass.-based BG Medicine is a diagnostics company focused
on the development and commercialization of novel cardiovascular
diagnostic tests to address significant unmet medical needs,
improve patient outcomes and contain healthcare costs. The
Company is currently commercializing two diagnostic tests, the
first of which is the BGM Galectin-3 test, a novel assay for
measuring galectin-3 levels in blood plasma or serum for use as an
aid in assessing the prognosis of patients diagnosed with heart
failure. The Company's second diagnostic test is the CardioSCORE
test, which is designed to identify individuals at high risk for
near-term, significant cardiovascular events, such as heart attack
and stroke.
BG Medicine reported a net loss of $8.06 million in 2014, a
net loss of $15.8 million in 2013 and a net loss of $23.8 million
in 2012.
Deloitte & Touche LLP, in Boston, Massachusetts, 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, recurring cash used in operating activities
and accumulated deficit raise substantial doubt about its ability
to continue as a going concern.
BON-TON STORES: Announces Quarterly Cash Dividend
-------------------------------------------------
The Bon-Ton Stores, Inc., announced the Board of Directors declared
a cash dividend of five cents per share on the Class A Common Stock
and Common Stock of the Company payable Nov. 2, 2015, to
shareholders of record as of Oct. 16, 2015.
About Bon-Ton Stores
The Bon-Ton Stores, Inc., with corporate headquarters in York,
Pennsylvania and Milwaukee, Wisconsin, operates 270 stores, which
includes nine furniture galleries and four clearance centers, in 26
states in the Northeast, Midwest and upper Great Plains under the
Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman,
Herberger's and Younkers nameplates. The stores offer a broad
assortment of national and private brand fashion apparel and
accessories for women, men and children, as well as cosmetics and
home furnishings. For further information, please visit the
investor relations section of the Company's Web site at
http://investors.bonton.com.
Bon-Ton Stores reported a net loss of $6.97 million on $2.75
billion of net sales for the fiscal year ended Jan. 31, 2015,
compared to a net loss of $3.55 million on $2.77 billion of net
sales for the fiscal year ended Feb. 1, 2014. The Company reported
a net loss of $21.6 million for the fiscal year ended Feb. 2,
2013.
As of Aug. 1, 2015, Bon-Ton Stores had $1.6 billion in total
assets, $1.58 billion in total liabilities and total shareholders
equity of $15.52 million.
* * *
As reported by the TCR on May 15, 2013, Moody's Investors Service
upgraded Bon-Ton Stores's Corporate Family Rating to 'B3' from
'Caa1' and its Probability of Default Rating to 'B3-PD' from
'Caa1-PD'.
"The upgrade of Bon-Ton's Corporate Family Rating considers the
company's ability to drive modest same store sales growth as well
as operating margin expansion beginning in the second half of 2012
and that these positive trends have continued, with the company
reporting that its same store were positive, and EBITDA margins
expanded, in the first fiscal quarter of 2013," said Moody's Vice
President Scott Tuhy.
As reported by the TCR on May 17, 2013, Standard & Poor's Ratings
Services affirmed the 'B-' corporate credit rating on Bon-Ton
Stores.
BOOMERANG TUBE: Court Sets Confirmation Hearing on Sept. 21
-----------------------------------------------------------
Boomerang Tube, LLC, has secured approval of its Amended Disclosure
Statement in support of its Joint Prearranged Chapter 11 Plan dated
Aug. 13, 2015.
The hearing to confirm the Plan will commence on Sept. 21, 2015 at
10:30 a.m. (prevailing Eastern Time). The Court set Sept. 14,
2015, at 4:00 p.m. (prevailing Eastern Time), as the deadline to
submit objections to the Plan. The voting deadline is Sept. 14,
2015, at 5:00 p.m.
The Joint Prearranged Plan reduces the Debtors' funded debt
obligations by converting approximately $214 million in outstanding
principal of Term Loan Facility obligations into (i) 100% of the
New Holdco Common Stock (subject to dilution for (1) the payment of
the Exit Term Facility Backstop Fee and the Exit Term Facility
Closing Fee in the aggregate equal to collectively 20% of the New
Holdco Common Stock as of the closing date of the Exit Term
Facility and (2) issuances of equity under a management incentive
plan not to exceed 5% of the total outstanding equity of New
Holdco) and (ii) $55 million of subordinated secured notes issued
by New Opco. The Plan provides that New Holdco will hold 100% of
the New Opco Common Units. Holders of Allowed General Unsecured
Claims will receive their pro rata share of the GUC Trust Proceeds
allocated to holders of General Unsecured Claims in accordance with
the GUC Trust Waterfall.
Pursuant to the DIP Term Facility Loan Agreement, dated as of June
11, 2015, the Term Loan Lenders provided the $60 million DIP Term
Facility, which will be paid in cash on the Effective Date with the
proceeds of the Exit Term Facility. Pursuant to an Exit Commitment
Letter, dated as of June 8, 2015 and attached hereto as Exhibit C,
the DIP Term Facility Lenders have committed to provide the Exit
Term Facility. Pursuant to the DIP ABL Facility Loan Agreement,
dated as of June 11, 2015, the ABL Facility Lenders provided the
$85 million DIP ABL Facility, which will refinanced by the Exit ABL
Facility. Pursuant to an Exit Commitment Letter, dated as of June
8, 2015, the DIP ABL Facility Lenders have committed to provide the
Exit ABL Facility.
A copy of the Amended Disclosure Statemet is available at:
http://is.gd/DEXT81
About Boomerang Tube
Boomerang Tube, LLC, is a manufacturer of welded Oil Country
Tubular Goods ("OCTG") in the United States. OCTG are used by
drillers in exploration and production of oil and natural gas and
consist of drill pipe, casing and tubing. Boomerang has corporate
offices in Chesterfield, Missouri and manufacturing facilities in
Liberty, Texas, strategically located near major steel production
centers and end-user markets. With a 487,000 square foot plant
that houses two mills and heat treat lines and a contingent 119
acres, these facilities constitute the second largest alloy OCTG
mill in North America. Access Tubulars, LLC, owns 81% of the
equity interests in Boomerang.
Boomerang Tube and its subsidiaries BTCSP LLC and BT Financing
sought Chapter 11 protection (Bankr. D. Del. Lead Case No.
15-11247) on June 9, 2015, with a deal with lenders on a balance
sheet restructuring that would convert $214 million of debt to
100%
of the common stock of the reorganized company. The cases are
assigned to Judge Mary F. Walrath.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP, as
attorneys; Lazard Freres & Co. LLC, as financial advisor; and
Donlin, Recano & Co., Inc., as claims and noticing agent.
BRAND ENERGY: Bank Debt Trades at 7% Off
----------------------------------------
Participations in a syndicated loan under which Brand Energy &
Infrastructure Services is a borrower traded in the secondary
market at 93.45 cents-on-the-dollar during the week ended Friday,
August 21, 2015, according to data compiled by LSTA/Thomson Reuters
MTM Pricing and reported in the August 25, 2015, edition of The
Wall Street Journal. This represents a decrease of 1.55 percentage
points from the previous week, The Journal relates. Brand Energy &
Infrastructure Services pays 375 basis points above LIBOR to borrow
under the facility. The bank loan matures on November 12, 2020.
Moody's rates the loan 'B1' and Standard & Poor's gave a 'B' rating
to the loan. The loan is one of the biggest gainers and losers
among 244 widely quoted syndicated loans with five or more bids in
secondary trading for the week ended Friday, August 21.
BREITBURN ENERGY: Moody's Cuts Corporate Family Rating to 'B2'
--------------------------------------------------------------
Moody's Investors Service downgraded Breitburn Energy Partners LP's
(Breitburn or BBEP) Corporate Family Rating (CFR) to B2 from B1,
its Probability of Default Rating (PDR) to B2-PD from B1-PD, and
its unsecured notes rating to Caa1 from B3. Moody's also affirmed
BBEP's SGL-3 Speculative Grade Liquidity Rating. The outlook
remains negative.
"Moody's downgrade of Breitburn reflects the company's
deteriorating leverage metrics in a low commodity price
environment," commented Amol Joshi, Moody's Vice President. "We
positively note that Breitburn has lowered its unit distribution
and has a significant portion of its 2015 and 2016 production
volumes hedged to protect its cash margins. However, the company
may face negative free cash flow after 2016 with its hedge
positions rolling off, due to low netback per boe given expected
low commodity prices."
Issuer: Breitburn Energy Partners LP
Corporate Family Rating (CFR), downgraded to B2 from B1
Probability of Default Rating (PDR), downgraded to B2-PD from
B1-PD
Senior Unsecured Notes, downgraded to Caa1 (LGD-5) from B3 (LGD-5)
Speculative Grade Liquidity Rating (SGL), affirmed at SGL-3
Outlook negative
RATINGS RATIONALE
Breitburn's B2 CFR reflects its high financial leverage profile,
and the structural risks inherent in the master limited partnership
(MLP) business model which entails cash distributions and external
funding requirements in order to fund growth. The B2 rating also
reflects constrained financial flexibility due to the company's
high cost of capital. Breitburn's B2 CFR is supported by its size
on both production and reserves basis, basin diversification, and
relatively high liquids mix. If the weak commodity price
environment continues, Moody's expects the company to continue
focusing its curtailed capital budget on maintaining production.
Moody's expects Breitburn's debt to average daily production and
debt to proved developed reserves through mid-2016 to be roughly
$55,000 per barrel of oil equivalent (boe) and about $13 per boe,
respectively.
Breitburn's senior notes are rated two notches below Breitburn's B2
CFR under Moody's Loss Given Default Methodology because of the
priority claims of its relatively large secured revolving credit
facility, which has a borrowing base of $1.8 billion with
approximately $1.31 billion drawn under the revolver as of June 30,
2015, and its $650 million in second lien secured notes
outstanding.
The rating outlook is negative. "We could further downgrade the
ratings if Breitburn is not successful in maintaining adequate
liquidity and retained cash flow/debt falls below 10% on a
sustained basis. While unlikely in the near-term, we could upgrade
the ratings if Breitburn is able to maintain its production base
and its retained cash flow/debt is expected to approach 15% when
its existing hedge positions mostly roll off."
Breitburn Energy Partners LP is a publicly traded independent oil
and gas master limited partnership focused on the acquisition,
development and production of oil and gas properties throughout the
United States. Breitburn's producing and non-producing crude oil
and natural gas reserves are located in the following seven areas:
the Permian Basin, Michigan/Indiana/Kentucky, Ark-La-Tex, the
Midcontinent, the Rockies, Florida, and California.
BUILDING #19: $75,000 in Claims Switched Hands in August 2015
-------------------------------------------------------------
In the Chapter 11 cases of Building #19, Inc., et al., three claims
switched hands between Aug. 11 and 24, 2015:
Transferee Transferor Claim Amount
---------- ---------- ------------
Argo Partners Hermann Leasing Company $33,213.71
Liquidity Solutions, Inc. Concepts In Time $14,335.00
Liquidity Solutions, Inc. Industrial Fleet $27,480.00
Management of N.E., Inc
About Building #19, Inc.
Building #19, Inc., and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code on Nov. 1, 2013 (Bankr. D. Mass.
Case No. 13-16429). The other debtors are (a) Paperworks #19,
Inc., Case No. 13-16430; (b) Beth's Basics, Inc., Case No.
13-16433; (c) Furniture #19, Inc., Case No. 13-16431; (d) PB&J
Kids #19, Inc., Case No. 13-16434; and (e) Footwear #19 Plus, Inc.
Case No. 13-16432.
Donald Ethan Jeffery, Esq., and Harold B. Murphy, Esq., at Murphy
& King, Professional Corporation, in Boston, Massachusetts, serve
as the Debtors' bankruptcy counsel. The Tron Group, LLC, serve as
their financial advisers.
The U.S. Trustee for Region 1 appointed five members to the
official committee of unsecured creditors. Newburg & Company
LLP is the financial advisor to the Committee.
CAESARS ENTERTAINMENT INC: 2020 Bank Debt Trades at 6% Off
----------------------------------------------------------
Participations in a syndicated loan under which Caesars
Entertainment Inc. is a borrower traded in the secondary market at
93.89 cents-on-the-dollar during the week ended Friday, August 21,
2015, according to data compiled by LSTA/Thomson Reuters MTM
Pricing and reported in the August 25, 2015, edition of The Wall
Street Journal. This represents a decrease of 0.46 percentage
points from the previous week, The Journal relates. Caesars
Entertainment Inc. pays 600 basis points above LIBOR to borrow
under the facility. The bank loan matures on September 24, 2020.
Moody's rates the loan 'B2' and Standard & Poor's gave a 'CCC+'
rating to the loan. The loan is one of the biggest gainers and
losers among 244 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday, August 21.
CAESARS ENTERTAINMENT INC: 2021 Bank Debt Trades at 17% Off
-----------------------------------------------------------
Participations in a syndicated loan under which Caesars
Entertainment Inc. is a borrower traded in the secondary market at
84.40 cents-on-the-dollar during the week ended Friday, August 21,
2015, according to data compiled by LSTA/Thomson Reuters MTM
Pricing and reported in the August 25, 2015, edition of The Wall
Street Journal. This represents an increase of 0.23 percentage
points from the previous week, The Journal relates. Caesars
Entertainment Inc. pays 525 basis points above LIBOR to borrow
under the facility. The bank loan matures on April 2, 2021. Moody's
rates the loan 'B2' and Standard & Poor's gave a 'B+' rating to the
loan. The loan is one of the biggest gainers and losers among 244
widely quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday, August 21.
CALIFORNIA COMMUNITY: Wants Access to Cash Collateral Until Dec. 31
-------------------------------------------------------------------
California Community Collaborative, Inc., asks the U.S. Bankruptcy
Court for the Eastern District of California for authority to
continue using cash collateral consisting of rents collected from
tenants at its building located in 655 West 2nd Street, San
Bernardino, California, to pay expenses incurred from the real
property and the operation of its business for the period Sept. 1,
2015 to Dec. 31, 2015. The Debtor also asks for authority to
continue making adequate protection payments to its secured
creditors San Bernardino County Tax Collector and the California
Bank and Trust.
Judge Christopher M. Klien had previously issued a final order
approving the Debtor's continued use of the cash collateral and to
make adequate protection payments to the Bank and the County for
the period July 1, 2015 through Aug. 31, 2015.
The Judicial Council of California, which operates the Child
Support Division of the Superior Court for the County of San
Bernardino, is currently leasing approximately 26,500 square feet
of space in the Debtor's two-storey office building. The gross rent
and CAM charges due from the Council currently totals approximately
$67,000 per month and the lease extends to February 2018. With the
Court's approval, the Debtor entered a 10-year lease of 39,000
square feet of space on the first floor of the building with the
Rex and Margaret Fortune School of Education. Fortune is
anticipated to occupy the leased premises in December 2015.
Anthony Asebedo, Esq., at Meegan, Hanschu & Kassenbrock, in Gold
River, California, tells the Court that the Debtor had just learned
that the Judicial Council of California, which has agreed to terms
for a 10-year extension of its lease with the Debtor. He adds that
the Debtor has submitted bids with the County of San Bernardino for
the lease of remaining space at its building. Mr. Asebedo notes
that the County and the Bank may assert a security interest in the
building, which may extend to the rents and profits from the
building.
Mr. Asebedo tells the Court that in the ordinary course of the
Debtor's business, it will be necessary and vital for the Debtor to
continue to use the rents from the building. He believes that it is
in the best interest of the estate and creditors that the Debtor
continue to operate its business so as to obtain Fortune's
occupancy under the new lease and to otherwise increase the
occupancy rate at the building, so that the increased rental income
can be used to fund a Plan of Reorganization. Mr. Asebedo further
tells the Court that cash from rents received by the Debtor
postpetition may be considered cash collateral.
The Debtor's attorneys can be reached at:
David Meegan, Esq.
Anthony Asebedo, Esq.
MEEGAN, HANSCHU & KASSENBROCK
11341 Express Drive, Suite 110
Gold River,CA 95670
Telephone: (916)925-1800
Facsimile: (916)925-1265
About California Community Collaborative
California Community Collaborative owns and rents to
non-residential tenants an office building located at 655 West 2nd
Street, San Bernardino, California. The building was previously a
Mervyn's retail shopping center before it was acquired and later
remodeled into a two-story, 88,000 square foot office building.
The company was formed by Merrell Schexnydre, who is presently the
sole shareholder and president.
The Judicial Council of California leases about 26,000 square feet
of space at the building.
California Community filed a Chapter 11 bankruptcy petition (Bankr.
E.D. Cal. Case No. 14-26351) on June 17, 2014. Mr. Schexnydre
signed the petition. Judge Christopher M. Klein presides over the
case. The Debtor estimated assets of at least $10 million and
liabilities of $1 million to $10 million.
The Debtor tapped Meegan, Hanschu & Kassenbrock as counsel and
CBRE-Inland Commercial Real Estate as broker.
The Debtor has filed a plan that promises to pay creditors in
installments and allows the owner to retain control of the company.
The Debtor will sell or refinance the real property, and net
proceeds after payment of the claims secured by the property will
be used to pay in full all allowed claims secured by the property
and to fund distributions under the Plan.
CANICKEL MINING: TSX Review Continued Listing Eligibility
---------------------------------------------------------
CaNickel Mining Ltd. on Aug. 25 disclosed that it has received
notice from the Toronto Stock Exchange that TSX is reviewing the
eligibility of the Company's common shares for continued listing on
the TSX.
Specifically, the TSX has advised that it is reviewing whether the
Company meets the TSX's continued listing criteria in the following
areas: (i) the Company's financial condition and operating results,
and (ii) whether the Company has adequate working capital and an
appropriate capital structure.
CaNickel is being reviewed under the TSX's remedial review process
and has been granted 120 days to comply with all requirements for
continued listing. If the Corporation cannot demonstrate that it
meets all TSX requirements set out in Part VII of The Toronto Stock
Exchange Company Manual on or before December 24, 2015, CaNickel's
common shares will be delisted 30 days from such date.
CaNickel intends to cooperate fully with the TSX review process,
including with respect to the consideration of listing alternatives
for its common shares. Any continued listing or alternate listing
of the Company's common shares will be dependent on a number of
factors. In light of the status of CaNickel's operations under the
current nickel price environment, there can be no assurance that
the Company will be able to maintain a listing of its common shares
on the TSX, or obtain an alternate listing on another exchange.
About CaNickel
CaNickel Mining Limited is a Canadian junior mining company that
owns the Bucko Lake Nickel Mine, currently on care and maintenance,
near Wabowden, Manitoba. The Company also holds nickel, copper and
Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt.
CHINA GERUI: Receives Nasdaq Listing Non-Compliance Notice
----------------------------------------------------------
China Gerui Advanced Materials Group Limited, a high-precision,
cold-rolled steel producer in China, on Aug. 25 disclosed that on
August 19, 2015, it received a written notice from the Listing
Qualifications department of The Nasdaq Stock Market indicating
that the Company is not in compliance with the Nasdaq Listing Rule
5450(b)(1)(c) because the market value of publicly held shares
("MVPHS") of the Company's ordinary shares has fallen below the
minimum $5,000,000 requirement for continued listing for a period
of at least 30 consecutive business days. However, the Nasdaq
Listing Rules also provides the Company a compliance period of 180
calendar days, or until February 16, 2016, to regain compliance.
If at any time before February 16, 2016, the MVPHS of the Company's
ordinary shares is at least $5,000,000 for a minimum of 10
consecutive business days, the Company will regain compliance with
this rule.
In the event the Company does not regain compliance with the Nasdaq
Rules prior to the expiration of the 180-day compliance period, it
will receive written notification from Nasdaq that the Company's
ordinary shares are subject to delisting. Alternatively, Nasdaq
may permit the Company to transfer its ordinary shares to The
Nasdaq Capital Market if, at that time, the Company satisfies the
Nasdaq Capital Market's continued listing requirements.
At present, China Gerui will strategically review its business
outlook and determine whether and how it can regain compliance
during the initial 180 day compliance period and will actively
monitor its performance with respect to the listing standards. The
Notice has no immediate effect at this time on the listing of the
Company's ordinary shares, which will continue to trade on the
Nasdaq Global Select Market under the ticker symbol "CHOP."
About China Gerui
China Gerui Advanced Materials Group Limited is a steel processing
company in China. The Company produces high-end, high-precision,
ultra-thin, high- strength, cold-rolled steel products that are
characterized by stringent performance and specification
requirements that mandate a high degree of manufacturing and
engineering expertise. China Gerui's products are not standardized
commodity products. Instead, they are tailored to customers'
requirements and subsequently incorporated into products
manufactured for various applications. The Company sells its
products to domestic Chinese customers in a diverse range of
industries, including the food and industrial packaging,
construction and household decorations materials, electrical
appliances, and telecommunications wires and cables.
CHINA GINSENG: Changzhen Liu Quits as Chairman and CEO
------------------------------------------------------
Mr. Changzhen Liu tendered his resignation to China Ginseng
Holdings, Inc. as the Company's chairman, director and chief
executive officer on Aug. 18, 2015. Mr. Liu's resignation did not
result from any disagreement regarding any matter related to the
Company's operations, policies or practices, according to a
document filed with the Securities and Exchange Commission.
On Aug. 19, 2015, the Company's Board of Directors accepted Mr.
Liu's resignation and simultaneously appointed Mr. Guoqin Yin as
its chairman, director and chief executive officer.
Mr. Yin has profound experience as an entrepreneur and managing
companies. He established and serves as the legal representative
of the following companies: Danyang Youde Healthcare Consulting
Co., Ltd and Changfeng Youde Liquor Co., Ltd. since in June 2015,
Danyang Youde Commodity Trading Co., Ltd. since September 2014, and
Danyang City Haifei Lock Factory since 2008. During the period of
1986 to 2002, he was also a director of Fangxian Town Jinmei Paper
Box Factory (name changed to Danyang City Xinhua Paper Product
Factory) in Danyang City Jiangsu Province. One of his companies
was elected as one of the top 10 individually-owned businesses of
Danyang City in 1999, and he also received Glory Star issued by
Zhenjiang City Danyang Commerce and Industry Bureau for five
consecutive years. Mr. Yin graduated from Danyang City Fangdxian
Town Zhulin Middle School in 1979.
The Company said it is currently negotiating the terms of Mr. Yin's
employment agreement.
"I am honored to be appointed by the Board of the Directors of the
Company to be a member of management," said Mr. Yin. "I am hoping
that I could bring new manage concept, expand multiple distribution
and sale channels of our products and improve the Company's sale
and operation position to bring the Company to a new starting
point."
About China Ginseng
Changchun City, China-based China Ginseng Holdings, Inc., conducts
business through its four wholly-owned subsidiaries located in
China. The Company has been granted 20-year land use rights to
3,705 acres of lands by the Chinese government for ginseng
planting and it controls, through lease, approximately 750 acres
of grape vineyards. However, recent harvests of grapes showed
poor quality for wine production which indicates that the
vineyards are no longer suitable for planting grapes for wine
production. Therefore, the Company has decided not to renew its
lease for the vineyards with the Chinese government upon
expiration in 2013 and, going forward, it intends to purchase
grapes from the open market in order to produce grape juice and
wine.
China Ginseng reported a net loss of $4.76 million on $2.61
million of revenue for the year ended June 30, 2014, compared to a
net loss of $3.64 million on $3.56 million of revenue for the year
ended June 30, 2013.
As of March 31, 2015, the Company had $8.92 million in total
assets, $16.2 million in total liabilities, and a $7.24 million
total stockholders' deficit.
Cowan, Gunteski & Co., P.A., in Tinton Falls, NJ, issued a "going
concern" qualification on the consolidated financial statements
for the year ended June 30, 2014. The independent auditors noted
that the Company has incurred an accumulated deficit of
$14.2 million since inception, has a working capital deficit of
$11.6 million, and there are existing uncertain conditions the
Company faces relative to its ability to obtain working capital
and operate successfully. These conditions raise substantial
doubt about its ability to continue as a going concern.
CITRUS VALLEY: Moody's Hikes Rating on 1998 Rev. Bonds From Ba2
---------------------------------------------------------------
Moody's Investors Service upgrades Citrus Valley Health Partner's
(CA) underlying revenue bond ratings to Baa3 from Ba2. The rating
action affects the Series 1998 Certificates of Participation (COP)
issued through the California Statewide Communities Development
Authority. The COPs have $63 million remaining outstanding (as of
fiscal year end (FYE) 2014), and have their final maturity in 2028.
The outlook is stable at the new rating.
SUMMARY RATING RATIONALE
The upgrade to Baa3 reflects Citrus Valley Health Partner's (CVHP)
very significantly improved balance sheet measures, the
stabilization of core operating performance measures, the extension
of the California State Provider Fee program, and ongoing
deleveraging of the balance sheet. Challenges include a very
challenging payer mix, a fragmented provider market, a highly
unionized workforce, and high reliance on supplemental governmental
funding.
OUTLOOK
The stable outlook is based on the assumption that underlying core
performance will remain at current levels, and that the balance
sheet will remain strong.
WHAT COULD MAKE THE RATING GO UP
-- Adoption of a California State Provider Fee Program that is
stable and predictable
-- Significant improvement of underlying operating performance
measures
WHAT COULD MAKE THE RATING GO DOWN
-- Disruption or discontinuation of the California State Provider
Fee Program
-- Drop in underlying operating performance measures
-- Very significant increase in capital spending
OBLIGOR PROFILE
CVHP is a non-for-profit health system located in east San Gabriel
Valley of Los Angeles County. The health system operates three
acute care hospitals located in contiguous service areas. In FY
2014, the system generated $417 million of revenues (excluding the
California State Provider Fee), approximately 30,000 admissions,
and 94,000 outpatient visits. The system has leading market share
in its primary service area receiving approximately 31% of all
admissions.
LEGAL SECURITY
The outstanding COPs are secured by a pledge of gross revenues of
the obligated group which includes Citrus Valley Health Partners
(the parent corporation), Citrus Valley Medical Center (CVMC), and
Foothill Presbyterian Hospital (FPH). The obligated group
represents 98% of system revenues and 98% of system net assets.
Unless otherwise noted, all references in this report are based on
the system and consolidated financial statements. The obligated
group is required to meet annual minimum 60 days cash on hand
liquidity covenant (tested at FYE December 31) under the Series
1998 COPs bond insurance policy. The insurer of the bonds has the
right to accelerate bonds upon failure to meet the liquidity test.
Bonds have a debt service coverage test of 1.1 times.
USE OF PROCEEDS
Not applicable
COCRYSTAL PHARMA: Incurs $2.6 Million Net Loss in Second Quarter
----------------------------------------------------------------
Cocrystal Pharma, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $2.6 million on $27,000 of grant revenues for the three months
ended June 30, 2015, compared to net income of $4.7 million on $0
of grant revenues for the same period in 2014.
For the six months ended June 30, 2015, the Company reported a net
loss of $19.16 million on $53,000 of grant revenues compared to net
income of $4.3 million on $0 of grant revenues for the same period
a year ago.
As of June 30, 2015, the Company had $269.12 million in total
assets, $72.6 million in total liabilities and $196.52 million in
total stockholders' equity.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/e8sZ27
About Cocrystal Pharma
Cocrystal Pharma, Inc., formerly known as Biozone Pharmaceuticals,
Inc., is a pharmaceutical company with a mission to discover novel
antiviral therapeutics as treatments for serious and/or chronic
viral diseases. Cocrystal Pharma employs unique technologies and
Nobel Prize winning expertise to create first- and best-in-class
antiviral drugs. These technologies and the Company's market-
focused approach to drug discovery are designed to efficiently
deliver small molecule therapeutics that are safe, effective and
convenient to administer.
The Company's primary business going forward is to develop novel
medicines for use in the treatment of human viral diseases.
Cocrystal has been developing novel technologies and approaches to
create first-in-class and best-in-class antiviral drug candidates
since its initial funding in 2008. Subsequent funding was
provided to Cocrystal Discovery, Inc., by Teva Pharmaceuticals
Industries, Ltd., or Teva, in 2011. The Company's focus is to
pursue the development and commercialization of broad-spectrum
antiviral drug candidates that will transform the treatment and
prophylaxis of viral diseases in humans. By concentrating the
Company's research and development efforts on viral replication
inhibitors, the Company plans to leverage its infrastructure and
expertise in these areas.
Cocrystal Pharma reported a net loss of $99,000 in 2014 following a
net loss of $3.8 million in 2013.
COCRYSTAL PHARMA: Intends to Offer $150-Mil. Common Shares
----------------------------------------------------------
Cocrystal Pharma, Inc. filed with the Securities and Exchange
Commission a Form S-3 registration statement relating to the sale
of $150 million worth of its common stock. The Company may offer
and sell these securities to or through one or more underwriters,
dealers or agents, or directly to purchasers on a continuous or
delayed basis. The Company's common stock is traded on the OTCQB
under the symbol "COCP." On Aug. 13, 2015, the last reported sales
price of the Company's common stock on the OTCQB was $0.88 per
share. A full-text copy of the preliminary prospectus is available
at http://is.gd/qQz2KK
About Cocrystal Pharma
Cocrystal Pharma, Inc., formerly known as Biozone Pharmaceuticals,
Inc., is a pharmaceutical company with a mission to discover novel
antiviral therapeutics as treatments for serious and/or chronic
viral diseases. Cocrystal Pharma employs unique technologies and
Nobel Prize winning expertise to create first- and best-in-class
antiviral drugs. These technologies and the Company's market-
focused approach to drug discovery are designed to efficiently
deliver small molecule therapeutics that are safe, effective and
convenient to administer.
The Company's primary business going forward is to develop novel
medicines for use in the treatment of human viral diseases.
Cocrystal has been developing novel technologies and approaches to
create first-in-class and best-in-class antiviral drug candidates
since its initial funding in 2008. Subsequent funding was
provided to Cocrystal Discovery, Inc., by Teva Pharmaceuticals
Industries, Ltd., or Teva, in 2011. The Company's focus is to
pursue the development and commercialization of broad-spectrum
antiviral drug candidates that will transform the treatment and
prophylaxis of viral diseases in humans. By concentrating the
Company's research and development efforts on viral replication
inhibitors, the Company plans to leverage its infrastructure and
expertise in these areas.
Cocrystal Pharma reported a net loss of $99,000 in 2014 following a
net loss of $3.8 million in 2013.
As of June 30, 2015, the Company had $269.12 million in total
assets, $72.6 million in total liabilities and $196.52 million in
total stockholders' equity.
CORD BLOOD: Posts $397,000 Net Income for Second Quarter
--------------------------------------------------------
Cord Blood America, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing net income
of $396,917 on $1.4 million of revenue for the three months ended
June 30, 2015, compared to a net loss of $926,674 on $1 million of
revenue for the same period during the prior year.
For the six months ended June 30, 2015, the Company reported net
income of $188,211 on $2.7 million of revenue compared to a net
loss of $1.5 million on $1.9 million of revenue for the same period
a year ago.
As of June 30, 2015, the Company had $3.8 million in total assets,
$3.6 million in total liabilities and $224,713 in total
stockholders' equity.
A full-text copy of the Form 10-Q is available at:
http://is.gd/gDXx5C
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.
CORINTHIAN COLLEGES: Court Confirms 3rd Amended Liquidation Plan
----------------------------------------------------------------
Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware has confirmed Corinthian Colleges Inc., et al.'s Third
Amended and Modified Combined Chapter 11 Plan of Liquidation and
Disclosure Statement, according to Stephanie Gleason, writing for
Dow Jones' Daily Bankruptcy Review.
Judge Carey confirmed the Plan after an overwhelming majority of
creditors entitled to vote on the Plan voted to accept the Plan.
In a declaration filed with the Court, Catherine Nownes-Whitaker of
Rust Consulting/Omni Bankruptcy related that 100% of holder of
Class 1 - Prepetition Lenders Secured Claim, 93.77% of holders of
Class 4 - General Unsecured Claims, and 93.32% of holders of Class
5 - Student Claims and Government Education Claims voted to accept
the Plan. A full-text copy of the Plan Tabulation Declaration is
available at http://bankrupt.com/misc/CCIplantab0824.pdf
Prior to the Confirmation Hearing, the Debtors received numerous
objections from attorneys general from various states and
commonwealths relating to injunctions proposed under the Plan. In
response to the objections, the Debtors modified the injunction. A
full-text copy of the Modified Plan Injunction is available at
http://bankrupt.com/misc/CCIplaninjc0820.pdf
In support of Plan confirmation, the Debtors maintain that the is
the result of extensive negotiations between the Debtors, the
Administrative Agent, the Official Committee of Unsecured
Creditors, and the Official Committee of Student Creditors. Since
the Court's approval of the Disclosure Statement on July 27, 2015,
the Debtors said they have continued to negotiate with the parties,
as well as various other parties, including the Department of
Education and other governmental entities, to resolve outstanding
issues and potential objections to the Plan. As a result of those
efforts, the Debtors, on Aug. 25, filed the Third Amended and
Modified Combined Disclosure Statement and Plan of Liquidation, a
blacklined version of which is available at
http://bankrupt.com/misc/CCIplan0825.pdf
The Creditors' Committee joined in the Debtors' response to the
Confirmation and Disclosure Statement objections.
The Students' Committee, in support of confirmation of the Plan,
told the Court that it supports confirmation of the Plan because
the Plan, as modified, is in the best interest of Students and does
not do any of the following: (i) violate the absolute priority
rule; (ii) distribute property improperly; (iii) discharge the
Debtors' from any obligations; or (iv) bar any pending or future
litigation. The Student Committee added that it supports the
requests by the various Attorneys General seeking clarification on
certain points because any ambiguity could threaten what little
relief is afforded to Students pursuant to the Plan.
William J. Nolan, the Chief Restructuring Officer of Corinthian
Colleges, Inc., and its debtor affiliates, also filed a declaration
in support of confirmation of the Plan.
The Plan provides that if the Plan is confirmed and becomes
effective, a Student Trust will be established for the benefit of
holders of Allowed Student Claims and Allowed Government Education
Claims. The Student Trust will be administered by a Student
Trustee and a five-person Managing Board, consisting of four
members appointed by the Student Committee and one member appointed
by the attorney generals' officers for the states or commonwealths
that have filed claims in the cases.
In addition, pursuant to the Plan, the initial members Oversight
Board of the Distribution Trust will be (i) Neil F. Luria, as the
Creditors' Committee's appointed member; (ii) Janet Sleeper, Senior
Vice President at Bank of America, N.A., (the Administrative
Agent), as the Prepetition Secured Parties' appointed member; and
(iii) Craig R. Jalbert, as the Distribution Trustee.
Some parties, including Alief Independent School District, who
objected to the confirmation of the Plan withdrew their
confirmation objection prior to the confirmation hearing.
The Debtors are Mark D. Collins, Esq., Michael J. Merchant, Esq.,
Marisa A. Terranova, Esq., and Amanda R. Steele, Esq., at Richards,
Layton & Finger, P.A., in Wilmington, Delaware.
The Creditors' Committee is represented by Frederick B. Rosner,
Esq., and Julia B. Klein, Esq., at The Rosner Law Group LLC, in
Wilmington, Delaware; and H. Jeffrey Schwartz, Esq., and Bennett S.
Silverberg, Esq., at Brown Rudnick LLP, in New York.
The Students Committee is represented by Christopher A. Ward, Esq.,
Shanti M. Katona, Esq., at Polsinelli PC, in Wilmington, Delaware;
and Scott F. Gautier, Esq., Lorie A. Ball, Esq., and Cynthia C.
Hernandez, Esq., at Robins Kaplan LLP, in Los Angeles, California.
Mark Rosenbaum, Esq., Anne Richardson, Esq., Alisa Hartz, Esq., and
Dexter Rappleye, Esq., at Public Counsel LLP, in Los Angeles,
California, serve as special counsel to the Students Committee.
About Corinthian Colleges
Corinthian Colleges, Inc., Pegasus Education, Inc., and 23
affiliated entities filed voluntary Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 15-10952) on May 4, 2015, to complete an orderly
wind down of its operations. The cases are jointly administered
Case No. 15-10952.
Judge Kevin J. Carey presides over the case. Richards, Layton &
Finger, P.A., represents the Debtors in their restructuring
efforts; FTI Consulting, Inc., serves as restructuring advisors;
and Rust Consulting/Omni Bankruptcy serves as claims and noticing
agent.
Corinthian Colleges, Inc., disclosed $721,596,789 in assets and
$2,929,448,278 in liabilities as of the Chapter 11 filing.
The U.S. Trustee for Region 3 appointed five creditors to serve on
the official committee of unsecured creditors.
CUI GLOBAL: Names Oil & Gas Executive as Director
-------------------------------------------------
CUI Global, Inc. announced the appointment of Joseph A. Mills as an
independent director of the company, effective immediately. Mr.
Mills' appointment expands the Board to seven directors, five of
whom are independent directors.
"Joe's 30+ years of broad experience across the energy value chain,
from the Upstream, Midstream and mineral industries will add a
valuable perspective to our Board of Directors," said William
Clough, CUI Global's president & CEO. "We appreciate his
willingness to serve as a director and look forward to benefitting
from his experience, judgment, and counsel."
Mr. Mills is currently chairman of the Board and chief executive
officer of Eagle Rock Energy G&P, LLC, the General Partner of Eagle
Rock Energy Partners, LP. Mr. Mills has served in this capacity
since May of 2007. Eagle Rock is a growth MLP focused on the
upstream sectors. In addition, Mr. Mills serves as Chief Executive
Officer of Montierra Minerals & Production, LP, a privately held
partnership focused on the upstream and mineral segment in the
United States.
Before becoming the Chairman & CEO of Eagle Rock and launching
Montierra Minerals, Mr. Mills served as senior vice president of
operations for Black Stone Minerals Company and was responsible for
managing all the drilling, leasing and technical operations for the
Company. Before that, Mr. Mills served in a variety of executive
positions at El Paso Production Company, which included roles as
the senior vice president of Acquisitions, Technical Services and
Gulf of Mexico Division. In this capacity, Mr. Mills was
responsible for all the acquisition and divestiture activities
worldwide at the E&P Company as well as managing the drilling,
development and production activities in the Gulf of Mexico
region.
Mr. Mills is a member of the board of directors at The Texas
Alliance of Energy Producers and an active member in various
professional organizations, including: IPAA; TIPRO; Texas Pipeline
Association; Houston Association of Professional Landmen (HAPL);
and American Association of Professional Landmen (AAPL).
"I am very pleased to welcome such an experienced industry
professional as Joe Mills to the CUI Global board," said William
Clough. "He brings extensive expertise in areas vital to CUI
Global, particularly our Natural Gas Division. He is a genuine
global oil & gas expert with an exceptional rolodex and
understanding of the fundamentals of the industry."
Mr. Mills commented, "I am delighted to be joining such a
progressive, growth oriented company as CUI Global, whose recent
performance I have observed with great interest. I am looking
forward to contributing to further profitable growth and enhancing
shareholder value at CUI Global as it expands its commercial
footprint in the natural gas industry, one of the fastest growing
energy sectors."
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.
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.
DEWEY & LEBOEUF: Inflated Key Financial Metrics, Witness Says
-------------------------------------------------------------
Sara Randazzo, writing for The Wall Street Journal, reported that
Dewey & LeBoeuf LLP inflated key financial metrics by as much as
1,000% in the years leading up to the law firm’s 2012 collapse,
jurors were told, as prosecutors presented their final round of
evidence in a case against three former Dewey leaders.
According to the report, a forensic accountant talked jurors
through years of data compiled by prosecutors from the Manhattan
district attorney's office, ultimately showing that between 2008
and 2012, the firm's net income was allegedly adjusted upward by as
much as 10% each year and its net assets in those years boosted by
as much as 1,040%.
About Dewey & LeBoeuf
Dewey & LeBoeuf LLP sought Chapter 11 bankruptcy (Bankr. S.D.N.Y.
Case No. 12-12321) to complete the wind-down of its operations.
The firm had struggled with high debt and partner defections.
Dewey disclosed debt of $245 million and assets of $193 million in
its chapter 11 filing late evening on May 29, 2012.
Dewey & LeBoeuf LLP operated as a prestigious, New York City-
based, law firm that traced its roots to the 2007 merger of Dewey
Ballantine LLP -- originally founded in 1909 as Root, Clark & Bird
-- and LeBoeuf, Lamb, Green & MacCrae LLP -- originally founded in
1929. In recent years, more than 1,400 lawyers worked at the firm
in numerous domestic and foreign offices.
At its peak, Dewey employed about 2,000 people with 1,300 lawyers
in 25 offices across the globe. When it filed for bankruptcy,
only 150 employees were left to complete the wind-down of the
business.
Dewey's offices in Hong Kong and Beijing are being wound down.
The partners of the separate partnership in England are in process
of winding down the business in London and Paris, and
administration proceedings in England were commenced May 28. All
lawyers in the Madrid and Brussels offices have departed. Nearly
all of the lawyers and staff of the Frankfurt office have
departed, and the remaining personnel are preparing for the
closure. The firm's office in Sao Paulo, Brazil, is being
prepared for closure and the liquidation of the firm's local
affiliate. The partners of the firm in the Johannesburg office,
South Africa, are planning to wind down the practice.
The firm's ownership interest in its practice in Warsaw, Poland,
was sold to the firm of Greenberg Traurig PA on May 11 for
$6 million. The Pension Benefit Guaranty Corp. took $2 million of
the proceeds as part of a settlement.
Judge Martin Glenn oversees the case. Albert Togut, Esq., at
Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy
Solutions LLC serves as claims and notice agent. The petition was
signed by Jonathan A. Mitchell, chief restructuring officer.
JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the
lenders under the Revolver Agreement, hired Kramer Levin Naftalis
& Frankel LLP. JPMorgan, as Collateral Agent for the Revolver
Lenders and the Noteholders, hired FTI Consulting and Gulf
Atlantic Capital, as financial advisors. The Noteholders hired
Bingham McCutchen LLP as counsel.
The U.S. Trustee formed two committees -- one to represent
unsecured creditors and the second to represent former Dewey
partners. The creditors committee hired Brown Rudnick LLP led by
Edward S. Weisfelner, Esq., as counsel. The Former Partners hired
Tracy L. Klestadt, Esq., and Sean C. Southard, Esq., at Klestadt &
Winters, LLP, as counsel.
FTI Consulting, Inc. was appointed secured lender trustee for the
Secured Lender Trust. Alan Jacobs of AMJ Advisors LLC, was named
Dewey's liquidation trustee. Scott E. Ratner, Esq., Frank A.
Oswald, Esq., David A. Paul, Esq., Steven S. Flores, Esq., at
Togut, Segal & Segal LLP, serve as counsel to the Liquidation
Trustee.
Dewey's liquidating Chapter 11 plan was approved by the bankruptcy
court in February 2013 and implemented in March. The plan created
a trust to collect and distribute remaining assets. The firm
estimated that midpoint recoveries for secured and unsecured
creditors under the plan would be 58.4 percent and 9.1 percent,
respectively.
DEX MEDIA: Bank Debt Trades at 33% Off
--------------------------------------
Participations in a syndicated loan under which Dex Media West LLC
is a borrower traded in the secondary market at 67.20
cents-on-the-dollar during the week ended Friday, August 21, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the August 25, 2015, edition of The Wall Street
Journal. This represents an increase of 0.20 percentage points from
the previous week, The Journal relates. Dex Media West LLC pays 450
basis points above LIBOR to borrow under the facility. The bank
loan matures on October 24, 2016. Both Moody's and Standard &
Poor's gave the loan a 'N.R.' status. The loan is one of the
biggest gainers and losers among 244 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday, August 21.
DOMARK INTERNATIONAL: CEO and CFO Hold Majority Stake
-----------------------------------------------------
In a Schedule 13D filed with the Securities and Exchange
Commission, Andrew Ritchie, chief executive officer of Domark,
disclosed that as of Aug. 13, 2015, he beneficially owned
9,377,000,000 shares of common stock of Domark International, Inc.,
which represents 51.93 percent of the shares outstanding. Arthur
Thomas Crompton, the Company's chief financial officer, also
reported beneficial ownership of 6,260,000,000 common shares or
41.9 percent equity stake as of that date.
On Aug. 12, 2015, Domark designated its Series B Convertible
Preferred Stock, which allows the holder to convert each share of
Series B Convertible Preferred Stock into 8,000 shares of Domark
common stock. In addition, the holders of Series B Convertible
Preferred Stock have voting rights, voting separately as a class,
to an amount of votes equal to 51% of the voting power of Domark.
On Aug. 13, 2015, Mr. Ritchie was issued 1,170,000 shares of Series
B Convertible Preferred Stock, thereby entitling him to convert
these shares into 9,360,000,000 shares of Domark common stock and
to 5,421,266,090 votes.
On Aug. 13, 2015, Mr. Crompton was issued 780,000 shares of Series
B Convertible Preferred Stock, thereby entitling him to convert
these shares into 6,240,000,000 shares of Domark common stock and
to 3,614,177,394 votes.
Domark agreed to issue these shares and Mr. Ritchie and Mr.
Crompton agreed to accept them in exchange for their accrued
compensation and in repayment of their advances to Domark on
Aug. 12, 2015. However, these issuances did not become effective
until the Secretary of State of Nevada recorded Domark's
Certificate of Designation of its Series B Convertible Preferred
Stock on Aug. 13, 2015.
The purpose of this transaction was to place the majority of the
voting power of Domark into the control of Mr. Crompton and Mr.
Ritchie. Mr. Crompton and Mr. Ritchie intend to cause Domark to
undertake a reverse split of Domark's common stock. Mr. Crompton
and Mr. Ritchie may cause Domark to undertake other actions to its
corporate structure as well.
As a result of the designation of Series B Convertible Preferred
Stock and the issuance of this stock to Mr. Ritchie and Mr.
Crompton, acquisition of control of Domark will not be possible
unless Mr. Crompton and Mr. Ritchie agree to that acquisition.
A full-text copy of the regulatory filing is available at:
http://is.gd/IUrINR
About Domark International
Based in Lake Mary, Florida, DoMark International, Inc., was
incorporated under the laws of the State of Nevada on March 30,
2006. The Company was formed to engage in the acquisition and
refinishing of aged furniture using exotic materials and then
reselling it through interior decorators, high-end consignment
shops and online sales. The Company abandoned its original
business of exotic furniture sales in May of 2008 and pursued the
acquisition of entities to best bring value to the company and its
shareholders.
For the nine months ended Feb. 28, 2015, the Company reported a net
loss of $1.86 million on $0 of sales compared to a net loss of
$2.34 million on $0 of sales for the same period a year ago.
As of Feb. 28, 2015, the Company had $1.33 million in total assets,
$3.53 million in total liabilties and a $2.19 million total
stockholders' deficit.
The Company said it has inadequate working capital to maintain or
develop its operations, and is dependent upon funds from private
investors, promissory notes from lenders, and the support of
certain stockholders. These factors raise substantial doubt about
the ability of the Company to continue as a going concern,
according to the Company's quarterly report for the period ended
Feb. 28, 2015.
DR HORTON: S&P Hikes Corp. Credit Rating to 'BB+', Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its corporate
credit rating on D.R. Horton Inc. to 'BB+' from 'BB'. The outlook
is stable. At the same time, S&P raised its issue-level rating on
the company's senior unsecured debt to 'BB+' from 'BB', in line
with the corporate credit rating. The recovery rating on the
senior unsecured debt is '3', reflecting S&P's expectations for
recovery in the upper half of the meaningful range (50% to 70%) in
the event of a payment default.
The upgrade reflects the improvement in debt to EBITDA to 2.4x for
the 12 months ended June 30, 2015 from 3.0x on June 30, 2014, as
well as S&P's forecast for leverage to remain at the lower end of
the 2x to 3x range over the next year. The improvement stems from
a 28% increase in homes sold (due to favorable demand and a higher
community count) and a 3% increase in average selling price.
"The stable outlook reflects our expectation that D.R. Horton Inc.
will continue to benefit from an improving housing market over the
next two years and maintaining leverage at the low end of the 2x to
3x EBITDA range while continuing to use a moderate amount of debt
to finance inventory and land investment," said Standard & Poor's
credit analyst Maurice Austin.
S&P could take a negative rating action in the next 12 months if
the company issues substantial debt to fund spending on land
acquisition that is materially more aggressive than S&P's forecast,
such that debt to EBITDA exceeds 3x and debt to capital exceeds
45%.
S&P believes upside is currently limited due to the company's
strategy of issuing debt to drive growth. However, S&P would
consider raising the rating one notch if gross debt to EBITDA fell
below 2x, in line with S&P's assessment of the financial risk
profile as intermediate.
DRD TECHNOLOGIES: Gets Final Approval to Use Cash Collateral
------------------------------------------------------------
DRD Technologies Inc. received final approval to use the cash
collateral of ServisFirst Bank to support its operations.
The order, issued by U.S. Bankruptcy Judge Clifton Jessup, Jr.,
allowed DRD Technologies to use the cash collateral of the bank,
which is owed more than $3.26 million as of May 19, 2015.
ServisFirst provided a $3.25 million loan to DRD Technologies prior
to its bankruptcy filing, which is secured by a "first priority
security interest" in some of the company's assets, court filings
show.
In return for allowing the company to use its cash collateral,
ServisFirst will have a "first priority replacement lien" on assets
that the company offered as collateral for the loan, according to
the bankruptcy judge's order issued on August 25.
Prior to Judge Jessup's final approval, DRD Technologies obtained
three interim orders to use the cash collateral. The last one
expired by its terms on July 28 but was extended to August 7.
About DRD Technologies
Huntsville, Alabama-based logistics provider DRD Technologies,
Inc., sought Chapter 11 protection (Bankr. N.D. Ala. Case No.
15-81366) on May 19, 2015, to halt efforts by creditor ServisFirst
Bank to appoint a receiver.
The Debtor tapped Stuart M. Maples, Esq., at Maples Law Firm, PC,
as counsel.
The Debtor disclosed $205,849,965 in assets and $4,289,268 in
liabilities as of the Chapter 11 filing.
DVF ADVISORY GROUP: Case Summary & 18 Top Unsecured Creditors
-------------------------------------------------------------
Debtor: DVF Advisory Group Inc.
fka Certified Home Loans of Florida
9415 Sunset Drive Suite 274
Miami, FL 33173
Case No.: 15-25404
Chapter 11 Petition Date: August 26, 2015
Court: United States Bankruptcy Court
Southern District of Florida (Miami)
Judge: Hon. Jay Cristol
Debtor's Counsel: Aramis Hernandez, Esq.
DOWNTON MIAMI LEGAL CENTER LLC
139 NE 1st St #600
Miami, FL 33132
Tel: 305-374-7744
Email: aramis@miamilegalcenter.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Salvatore J. Davide, president.
A list of the Debtor's 18 largest unsecured creditors is available
for free at http://bankrupt.com/misc/flsb15-25404.pdf
FINANCIAL HOLDINGS: Court Authorizes Bank Share Sale to Lender
--------------------------------------------------------------
The United States Bankruptcy Court of the Eastern District of
Kentucky, Lexington Division, authorized Financial Holdings, Inc.,
to sell its shares of American Founders Bank, Inc., common stock to
WPB-AFB, LLC, after the Debtor notified the Court that it received
no qualified bids for the bank shares.
The Debtors have entered into a Stock Purchase Agreement with
WPB-AFB to purchase the assets. Subject to the terms of a
settlement agreement, which permitted WPB-AFB to credit bid its
Allowed Prepetition Claim in the amount $14,352,488, the
Transferred Assets will be sold free and clear of all existing
liens, claims and encumbrances. WPB-AFB will also have to pay
$225,000 to Wilmington Trust Company on account of its claim
against the Debtor's estate relating to American Founders Statutory
Trust I and the Fixed/Floating Rate Junior Subordinated Deferrable
Interest Debentures Due 2036.
The Debtor is represented by:
Adam M. Back, Esq.
Jessica L. Haurylko, Esq.
STOLL KEENON OGDEN PLLC
300 West Vine Street, Suite 2100
Lexington, Kentucky 40507
Tel: (859) 231-3000
Fax: (859) 253-1093
Email: adam.back@skofirm.com
jessica.haurylko@skofirm.com
Wilmington Trust Company is represented by:
Shane G. Ramsey, Esq.
KILPATRICK TOWNSEND & STOCKTON LLP
1100 Peachtree Street NE, Suite 2800
Atlanta, Georgia 30309-4528
Tel: (404) 745-2429
Email: SRamsey@kilpatricktownsend.com
WPB-AFB, LLC is represented by:
Ellen Arvin Kennedy, Esq.
DINSMORE & SHOHL LLP
Lexington Financial Center
250 West Main Street
Suite 1400
Lexington, KY 40507
Email: ellen.kennedy@dinsmore.com
About Financial Holdings
Financial Holdings, Inc., is a bank holding company, organized
under the laws of the Commonwealth of Kentucky, that owns 100% of
the common stock of two subsidiaries: (i) American Founders Bank,
Inc. and (ii) American Founders Statutory Trust I. The Bank, in
turn, owns 100% of the voting common stock of American Founders
Loan Corporation.
Financial Holdings sought Chapter 11 protection (Bankr. E.D. Ky.
Case No. 15-51187) on June 16, 2015, in Lexington, Kentucky. The
Bank, Statutory Trust, and AFLC, are not debtors in the Chapter 11
case.
The Debtor disclosed total assets of $11.9 million and total
liabilities of $40.6 million.
The case is assigned to Judge Gregory R. Schaaf.
The Debtor tapped Stoll Keenon Ogden, PLLC, as counsel, and Austin
Associates, LLC, as financial advisors.
Counsel to the proposed purchaser, WPB-AFB, LLC, are Michael G.
Dailey, Esq., Uday Gorrepati, Esq., and Susan Zaunbrecher, Esq.,
at
Dinsmore & Shohl, LLP, in Cincinnati, Ohio.
FIRST DATA: Files Amendment to Preliminary Form S-1 Prospectus
--------------------------------------------------------------
First Data Corporation filed with the Securities and Exchange
Commission an amended Form S-1 registration statement relating to
an initial public offering of shares of Class A common stock of the
Company. The Company has amended the Registration Statement to
delay its effective date.
Prior to this offering, there has been no public market for the
Company's Class A common stock. The Company currently expects that
the initial public offering price of its Class A common stock will
be between $____ and $_____ per share. The Company intends to
apply to list its Class A common stock on ______ under the symbol "
."
Upon consummation of this offering, the Company will have two
classes of common stock: Class A common stock and Class B common
stock.
After the completion of this offering, affiliates of Kohlberg
Kravis Roberts & Co. L.P. will continue to control a majority of
the voting power of the Company's common stock. As a result, the
Company will be a "controlled company" within the meaning of the
corporate governance standards of the applicable stock exchange.
A copy of the Form S-1/A is available for free at:
http://is.gd/9KlC67
About First Data
Based in Atlanta, Georgia, First Data Corporation provides
commerce and payment solutions for financial institutions,
merchants, and other organizations worldwide.
First Data reported a net loss attributable to the Corporation of
$458 million on $11.2 billion of total revenues for the year ended
Dec. 31, 2014, compared with a net loss attributable to the
Corporation of $869 million on $10.8 billion of total revenues
during the prior year.
As of March 31, 2015, the Company had $34.13 billion in total
assets, $31.7 billion in total liabilities, $78 million in
redeemable noncontrolling interest, and $2.35 billion in total
equity.
* * *
The Company carries a 'B3' corporate family rating, with a
stable outlook, from Moody's Investors Service, a 'B' corporate
credit rating, with stable outlook, from Standard & Poor's, and
a 'B' long-term issuer default rating from Fitch Ratings.
FLOATEL INTERNATIONAL: Bank Debt Trades at 27% Off
--------------------------------------------------
Participations in a syndicated loan under which Floatel
International AB is a borrower traded in the secondary market at
73.40 cents-on-the-dollar during the week ended Friday, August 21,
2015, according to data compiled by LSTA/Thomson Reuters MTM
Pricing and reported in the August 25, 2015, edition of The Wall
Street Journal. This represents a decrease of 0.70 percentage
points from the previous week, The Journal relates. Floatel
International AB pays 500 basis points above LIBOR to borrow under
the facility. The bank loan matures on May 16, 2020. Moody's rates
the loan 'B2' and Standard & Poor's gave a 'B' rating to the loan.
The loan is one of the biggest gainers and losers among 244 widely
quoted syndicated loans with five or more bids in secondary trading
for the week ended Friday, August 21.
FORTESCUE METALS: Bank Debt Trades at 18% Off
---------------------------------------------
Participations in a syndicated loan under which Fortescue Metals
Group Ltd is a borrower traded in the secondary market at 81.88
cents-on-the-dollar during the week ended Friday, August 21, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the August 25, 2015, edition of The Wall Street
Journal. This represents an increase of 1.13 percentage points from
the previous week, The Journal relates. Fortescue Metals Group Ltd
pays 275 basis points above LIBOR to borrow under the facility. The
bank loan matures on June 13, 2019. Moody's rates the loan 'Ba1'
and Standard & Poor's gave a 'BB+' rating to the loan. The loan is
one of the biggest gainers and losers among 244 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, August 21.
FREEDOM GROUP: S&P Lowers Corp. Credit Rating to B-, Outlook Stable
-------------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its corporate
credit rating on Madison, N.C.-based Freedom Group Inc. to 'B-'
from 'B'. The outlook is stable.
"At the same time, we lowered our issue-level rating on the
company's $575 million senior secured term loan due 2019 (issued by
subsidiary FGI Operating Co. LLC) to 'B-' from 'B'. Our recovery
rating remains '3', reflecting our expectation for meaningful (50%
to 70%; lower end of the range) recovery for lenders in the event
of a payment default. We also lowered our issue-level rating on
the company's senior secured notes due 2020 (co-issued by
subsidiaries FGI Operating Co. LLC and FGI Finance Inc.) to 'CCC'
from 'CCC+'. The recovery rating on these notes remains '6',
indicating our expectation for negligible (0% to 10%) recovery for
lenders in the event of a payment default," S&P noted.
"The downgrade reflects our expectation that EBITDA at Freedom
Group will be weaker through 2016 than we previously anticipated
and, as a result, credit measures will be very weak, with operating
lease- and pension-adjusted debt to EBITDA above 10x and EBITDA
interest coverage in the low to mid-1x area through 2016," said
Standard & Poor's credit analyst Shivani Sood.
The lowered EBITDA forecast in 2015 is the result of
lower-than-expected demand and lower average selling prices for
firearms and ammunition in the first half of 2015 due to
discounting and a mix shift toward lower priced products. This is
in addition to the meaningful decline in revenue and EBITDA in 2014
after the 36% increase in revenue in 2013 related to the sales
surge by consumers concerned about additional firearms and
ammunition regulation related to school shootings in 2012. S&P
believes demand patterns may begin to stabilize and EBITDA may
begin to recover modestly in the second half of 2015, as the
company completes its restructuring of manufacturing and production
facilities into its Huntsville, Ala. facility and several large
one-time expenses in the first half of 2015 do not recur. In
addition, a modest positive trend in firearm background checks in
recent months could indicate that the decline in firearm demand
since the 2013 surge could stabilize over the next few quarters and
begin to recover modestly in 2016.
The stable outlook reflects S&P's expectation for liquidity in the
form of high cash balances and revolver availability to remain
adequate despite S&P's estimate for negative free cash flow through
2016. S&P's stable outlook also reflects a modest positive trend
in firearm background checks in recent months, which could indicate
that the decline in firearm demand since the 2013 surge could
stabilize over the next few quarters and begin to recover modestly
in 2016.
S&P would lower the rating if operating performance continues to
deteriorate, as a result of operating missteps or continued
weakness in demand, such that cash balances deteriorate faster than
S&P's base-case forecast assumes, and liquidity becomes strained.
S&P would consider raising the rating by one notch once it is
confident that operating performance has recovered sufficiently
such that operating lease- and pension-adjusted debt to EBITDA
would be sustained below the 7x area and EBITDA coverage of
interest would remain at 1.5x or higher.
FUEL PERFORMANCE: Delays Q2 Quarterly Report Over Limited Staff
---------------------------------------------------------------
Fuel Performance Solutions, Inc., was unable to file its quarterly
report on Form 10-Q for the period ended June 30, 2015, in a timely
manner without unreasonable effort or expense due to the Company's
limited labor resources and such resources being allocated to
obtaining financing necessary to fund the Company's ongoing
operations.
The Company expects to have the June 30, 2015, quarterly review and
related financial statements completed within the automatically
granted five day extension of time to file its second quarter 2015
Quarterly Report on Form 10-Q.
About Fuel Performance
Fuel Performance Solutions, Inc., was incorporated in Nevada on
April 9, 1996, by a team of individuals who sought to address the
challenges of reducing harmful emissions while at the same time
improving the operating performance of internal combustion
engines, especially with respect to fuel economy and engine
cleanliness. After the Company's incorporation, its initial focus
was product research and development, but over the past few years,
the Company's efforts have been directed to commercializing its
product slate, primarily DiesoLiFTTM and the PerfoLiFTTM BD-
Series, for use with diesel fuel and bio-diesel fuel blends, by
focusing on marketing, sales and distribution efforts in
conjunction with our distribution partners. On Feb. 5, 2014, the
Company changed its name from International Fuel Technology, Inc.,
to Fuel Performance Solutions, Inc.
Fuel Performance reported a net loss of $1.65 million on $1.72
million of net revenues for the year ended Dec. 31, 2014, compared
with a net loss of $1.39 million on $704,000 of net revenues for
the year ended Dec. 31, 2013.
MaloneBailey, LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2014, noting that the Company has suffered recurring
loss from operations and has a working capital deficit. This
factor, the auditors said, raises substantial doubt about the
Company's ability to continue as a going concern.
GATES GROUP: Bank Debt Trades at 3% Off
---------------------------------------
Participations in a syndicated loan under which Gates Group is a
borrower traded in the secondary market at 97.15
cents-on-the-dollar during the week ended Friday, August 21, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the August 25, 2015, edition of The Wall Street
Journal. This represents a decrease of 1.43 percentage points from
the previous week, The Journal relates. Gates Group pays 325 basis
points above LIBOR to borrow under the facility. The bank loan
matures on June 18, 2021. Moody's rates the loan 'B2' and Standard
& Poor's gave a 'B+' rating to the loan. The loan is one of the
biggest gainers and losers among 244 widely quoted syndicated loans
with five or more bids in secondary trading for the week ended
Friday, August 21.
GEODEX MINERALS: Expects to File Financial Statements by Sept. 4
----------------------------------------------------------------
Geodex Minerals on Aug. 27 provided a default status report in
accordance with the alternative information guidelines set out in
National Policy 12-203 - Cease Trade Orders for Continuous
Disclosure Defaults.
On July 30, 2015, the Company disclosed that it had not filed its
annual financial statements and management discussion and analysis
for the year ended March 31, 2015, together with the related
certification of filings under National Instrument 52-109 -
Certification of Disclosure in Issuers' Annual and Interim Filings
by the prescribed deadline of July 29, 2015.
Except as discussed below, there have been no material changes to
the information contained in the Default Announcement or any other
changes required to be disclosed under NP 12-203.
The Company was unable to complete the audit prior to August 21,
2015, as previously anticipated. However, the Company expects the
audit process to be completed shorty and to file the Continuous
Disclosure Documents on or before September 4, 2015. The Company
will continue to provide bi-weekly updates, as contemplated by NP
12-203, until the Continuous Disclosure Documents have been filed.
In the event that the Company does not file the Continuous
Disclosure Documents by September 28, 2015, the Canadian Securities
Regulatory Authorities may impose an issuer cease trade order on
the outstanding securities of the Company. The Company intends to
satisfy the provisions of the Alternative Information Guidelines
during the period it remains in default of the filing
requirements.
Headquartered in Toronto, Canada, Geodex Minerals Ltd. is a
Canada-based mineral resource company with a focus on the
consolidation of past-producing and producing Antimony and Tin
mines in Canada and Internationally. The Company is engaged in the
acquisition and exploration of mineral properties. The Company's
projects include West Gore Antimony Gold Project, west-central Nova
Scotia; Benjamin Copper, Molybdenum Project, Bathurst, New
Brunswick; South Dungarvon Tin Property, central
New Brunswick; Dungarvon Tungsten-Molybdenum-Tin Property, central
New Brunswick; Mount Pleasant West Project; and southwestern New
Brunswick. Geodex also pursues Tungsten and Indium along with
Tin.
GLYECO INC: Posts $1.07 Million Net Loss for Second Quarter
-----------------------------------------------------------
Glyeco, Inc., filed with the Securities and Exchange Commission its
quarterly report on Form 10-Q disclosing a net loss of $1.07
million on $2.04 million of net sales for the three months ended
June 30, 2015, compared to a net loss of $1.11 million on $1.60
million of net sales for the same period during the prior year.
For the six months ended June 30, 2015, the Company reported a net
loss of $2.05 million on $3.38 million of net sales compared to a
net loss of $2.30 million on $3.26 million of net sales for the
same period a year ago.
As of June 30, 2015, the Company had $15.90 million in total
assets, $2.59 million in total liabilities and $13.31 million in
total stockholders' equity.
"We assess our liquidity in terms of our ability to generate cash
to fund our operating, investing and financing activities.
Significant factors affecting the management of liquidity are cash
flows generated from operating activities, capital expenditures,
and acquisitions of businesses and technologies. Cash provided
from financing activities continues to be the Company's primary
source of funds. We believe that we can raise adequate funds
through issuance of equity or debt as necessary to continue to
support our planned expansion," the Company said in the report.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/OcD8c7
About GlyEco, Inc.
Phoenix, Ariz.-based GlyEco, Inc., is a green chemistry company
formed to roll-out its proprietary and patent pending glycol
recycling technology that transforms waste glycols, a hazardous
material, into profitable green products.
Glyeco reported a net loss attributable to common shareholders of
$8.73 million on $5.89 million of net sales for the year ended Dec.
31, 2014, compared with a net loss of $4 million on $5.53 million
of net sales for the year ended Dec. 31, 2013.
Semple, Marchal & Cooper, LLP, in Phoenix, Arizona, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2014, citing that the Company has yet to
achieve profitable operations and is dependent on its ability to
raise capital from stockholders or other sources to sustain
operations and to ultimately achieve viable operations. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
GOODING COUNTY, ID: Moody's Cuts GO Bonds Rating to 'Ba2'
---------------------------------------------------------
Moody's Investors Service has downgraded to Ba2 from Ba1 the rating
on Gooding County School District No. 232 (Wendell), Idaho's
general obligation bonds. The outlook remains negative.
SUMMARY RATING RATIONALE
The downgrade to Ba2 from Ba1 reflects weaker than anticipated
audited financial results for fiscal 2014 that included the use of
debt service funds to manage operating cash flows and a deeply
negative general fund position. The rating also incorporates the
district's small scale of operations and limited tax base, elevated
debt burden, and manageable pension and OPEB liabilities.
OUTLOOK
The negative outlook is based on Moody's expectation that the
district's finances are unlikely to improve in the near term given
its historic trend of structural imbalance, the absence of voter
support to finance capital improvements, and recent evidence of
weak management practices, including use voter-approved debt
service funds for operating cash-flow purposes.
WHAT COULD MAKE THE RATING GO UP
-- Substantial and sustained improvement in the district's
financial position, including reserve levels and liquidity
-- Massive growth in the district's tax base size and economic
diversity
-- Decline in the district's overall debt burden
WHAT COULD MAKE THE RATING GO DOWN
-- Further weakening of the district's financial position
-- Decline in the district's tax base
-- Decline in the district's student enrollment
OBLIGOR PROFILE
Located in Gooding County, the district provides K-12 education to
residents of the City of Wendell and surrounding areas.
LEGAL SECURITY
The bonds are secured by the district's full faith, credit and
unlimited property tax pledge, and also backed by the Idaho School
Bond Guaranty Program, which maintains a Aaa rating.
USE OF PROCEEDS
Not applicable.
GREEN AUTOMOTIVE: Fred Luke Rejoins as President and Secretary
--------------------------------------------------------------
Green Automotive Company announced that Fred G. Luke has agreed to
rejoin the Company as its president and secretary.
Ben Rainwater, the Company's CEO, commenting on Fred Luke's return
to management said, "Fred served as the Company's President during
2011-2013 and was the driving force behind the Company's initial
restructuring, re-capitalization and taking it from a non-reporting
'shell' company to a fully reporting 'non-shell' company."
"During Fred's two year tenure", Ben Rainwater went on say, "the
Company's Market Capitalization rose to approximately $490 Million.
He further successfully renegotiated the contract with the
original Chinese maker of the All-Electric Sport Utility Vehicle
and took it through the U.S. regulatory testing before determining
that the electric car sector was becoming too competitive and
shifted the Company's focus to All-Electric, CNG and
conventional-fueled shuttle buses, and municipal and school bus
conversions."
Mr. Luke stated that "my original objective was to get the
All-Electric Sport Utility Vehicle approved for consumer sales in
the U.S., while restructuring the Company to qualify for listing on
the OTC Markets' OTCQB Tier, which I accomplished in December of
2012. However, the All-Electric SUV did not pass the Federal Motor
Vehicle Safety Standards tests, forcing us to change direction and
focus the Company's resources on the bus market, which at the time
appeared to me to be wide-open."
Following the decision to "change direction", the Company acquired
Liberty Electric Cars Ltd, a U.K.-based company which represented
to have successfully converted Range Rovers into All-Wheel Drive
All-Electric vehicles. Mr. Luke also acquired a newly formed
company, Newport Coachworks Inc., and hired Mr. Carter Read to
begin building and converting buses, starting with shuttle buses.
Shortly after the acquisition of Newport Coachworks Inc., Mr. Luke
resigned from management but remained as a member of the Board of
Directors.
"Recent events", said CEO Ben Rainwater, "including a dispute with
the landlord of Newport Coachwork's Wilson Street manufacturing
facility resulting in Newport Coachworks allegedly receiving a
Notice to Quit or Pay and then being locked out of the facility,
together with the recent resignation of Mr. Carter Read from his
positions with Green Automotive Company and Newport Coachworks,
have led the Company to turn back to Mr. Luke to assist with these
issues and others facing the companies. Currently, we are
attempting to determine from Mr. Read and the landlord at the
Wilson Street facility exactly what has happened with Newport
Coachworks and its assets and determine the exact nature of the
relationship, if any, between those parties. However, so far no
litigation has been filed by any of the parties."
"Fred has over 40 years in cleaning up problems like the ones
Newport Coachworks is facing now," said Mr. Rainwater, "as he did
in 2011, I expect him to get to the bottom of the problems with
Newport Coachworks quickly, take swift and appropriate action,
and begin to rebuild as he has done in the past. He has already
retained counsel to investigate the current status of the Wilson
Street manufacturing facility and the circumstances and events
leading up to Mr. Read's resignation, and the involvement; if any,
of any other third party companies.
"As to the recent Message Board comments, and other rumors being
circulated," said Mr. Luke, "I would recommend that everyone
refrain from putting too much value in the Message Board 'reports'
until my investigation of the activities and actions of Mr. Read
and others has been completed, which I expect to conclude in the
near future. We have already made contact with certain third
parties that may be involved, as well as legal counsel for the
Landlord, and we expect to file our Form 8-K relating to Mr. Read's
resignation and other management changes by today. We will have
further announcements as the requested documentation is produced
and the facts come to light."
About Green Automotive Company
Green Automotive Company is a vehicle design, engineering,
manufacturing and distribution company. The Company also provides
after sales program. It possesses a portfolio of businesses and
is active in three main market segments: Cutting edge technology
development, engineering and design with a focus on zero and low
emission vehicle solutions; Manufacturing and customization of
vehicles for markets with the potential to be converted into low
emission or electric vehicles, such as shuttle buses, taxis,
commercial vehicles, and After sales services for electric or low
emission vehicles, including servicing and repair.
The Company's balance sheet at June 30, 2014, showed $1.47 million
in total assets, $17.9 million in total liabilities, and a
stockholders' deficit of $16.5 million.
The Company has sustained recurring operating losses and past due
payables. These conditions, among others, give rise to
substantial doubt about its ability to continue as a going
concern, according to the Company's Form 10-Q for the period ended
June 30, 2014.
GREENSHIFT CORP: Delays Filing of Second Quarter Form 10-Q
----------------------------------------------------------
GreenShift Corporation filed with the U.S. Securities and Exchange
Commission a Notification of Late Filing on Form 12b-25 with
respect to its quarterly report on Form 10-Q for the quarter ended
June 30, 2015. The Company said its Quarterly Report on Form 10-Q
could not be filed within the required time because there was a
delay in completing the procedures necessary to close the books for
the quarter.
About Greenshift Corporation
Headquartered in New York, GreenShift Corporation develops and
commercializes clean technologies designed to integrate into and
leverage established production and distribution infrastructure to
address the financial and environmental needs of its clients by
decreasing raw material needs, facilitating co-product reuse, and
reducing waste and emissions.
Greenshift reported net income of $1.97 million on $12.8 million of
total revenue for the year ended Dec. 31, 2014, compared with a net
loss of $4.43 million on $15.5 million of total revenue for the
year ended Dec. 31, 2013.
As of March 31, 2015, the Company had $1.28 million in total
assets, $41.97 million in total liabilities and a $40.7 million
total stockholders' deficit.
HERCULES OFFSHORE: Files Fleet Status Report
--------------------------------------------
Hercules Offshore on August 25, 2015, posted on its website a
report entitled "Hercules Offshore Fleet Status Report". The Fleet
Status Report includes the Hercules Offshore Rig Fleet Status (as
of August 25, 2015), which contains information for each of the
Company's drilling rigs, including contract dayrate and duration.
The Fleet Status Report also includes the Hercules Offshore
Liftboat Fleet Status Report, which contains information by
liftboat class for July 2015, including revenue per day and
operating days.
A full-text copy of the Fleet Status Report is available at
http://is.gd/BOseNo
About Hercules Offshore
Headquartered in Houston, Hercules Offshore, Inc. --
http://www.herculesoffshore.com/-- operates a fleet of 27 jackup
rigs, including one rig under construction, and 21 liftboats. The
Company offers a range of services to oil and gas producers to
meet their needs during drilling, well service, platform
inspection, maintenance, and decommissioning operations in
several key shallow water provinces around the world.
On Aug. 13, 2015 Hercules Offshore and 14 affiliated debtors each
filed a voluntary petition for relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 15-11685) in the
U.S. Bankruptcy Court for the District of Delaware. The cases
are pending before the Honorable Kevin J. Carey.
The Debtors on the Petition Date filed a pre-packaged Chapter 11
plan that would convert $1.2 billion of outstanding senior notes
to 96.9% of new common equity. A hearing will be held on
Sept. 24 to consider approval of the explanatory Disclosure
Statement and confirmation of the Debtors' Prepackaged
Chapter 11 Plan of Reorganization.
The Debtors tapped Emanuel C. Grillo, Esq., Christopher Newcomb,
Esq., James Prince II, Esq., C. Luckey McDowell, Esq., and
Meggie S. Gilstrap, Esq., at Baker Botts LLP as counsel; and
Robert J. Dehney, Esq., Eric D. Schwartz, Esq., Matthew B.
Harvey, Esq., and Tamara K. Minott, Esq., at Morris, Nichols,
Arsht & Tunnell, as local counsel. The Debtors also hired
Andrews Kurth LLP, as general corporate counsel; Lazard Freres
& Co. LLC, as investment banker, Alvarez & Marsal, as
restructuring advisor; and Prime Clerk, LLC, as claims and
noticing agent.
The Steering Group of Holders of Senior Notes is represented by
Akin Gump Strauss Hauer & Feld LLP's Arik Preis, Esq., and Michael
S. Stamer, Esq.
HERO disclosed $546 million in assets and $1.306 billion in debt
as of Aug. 11, 2015.
HS 45: Madison Lenders Seek Additional Adequate Protection
----------------------------------------------------------
SDF81 45 John Street 1 LLC and SDF81 45 John Street 2 LLC, ask the
United States Bankruptcy Court for the Southern District of New
York to direct HS 45 JOHN LLC to provide the lenders adequate
protection, and to the extent that the Debtor continues to remain
in custody, possession and control of the 45 John Street Property,
further direct the Debtor to comply with the laws of the City and
State of New York pursuant to 28 U.S.C. section 959.
The Debtor filed an objection alleging that Madison Lenders played
a key role in the diversion of its deposit and had actual knowledge
that Chaim Miller and Sam Sprei utilized the bulk of the deposit of
approximately $9,750,000 to fund the so-called buy out of Bo Jin
Zhu relating to four properties in Brooklyn, thus, the Madison
Lenders' request for adequate protection should be denied.
Messrs. Miller and Sprei stated that they do not concede the
characterization of the Debtor and reserved their rights to dispute
the Debtor's alleged status as a vendee-in-possession.
The Madison Lenders asserted that they were not privy to the fact
that any funds used in connection with the Zhu Buyout came from the
Debtor's Downpayment. The closing statement from the release of
the Debtor's Downpayment was in no way connected with loans made by
the Madison Lenders to entities controlled by Miller, the proceeds
from which, Miller allegedly utilized to advance his own agenda.
The Madison Lenders also asserted that the Debtor cannot be
permitted to continuously propound a series of misstatements in
order to paint itself as a victim without providing any basis in
fact or law. While the Debtor attempts to fortify its meritless
claims of being unapprised of the events of default which were
triggered prior to the execution of the Contract due to the
Debtor's own lack of diligence, and the fact that the Property
which the Debtor is seeking to interfere, it is encumbered an
indebtedness exceeding $60,000,000 upon which the Debtor has failed
to tender a single payment notwithstanding the fact that it has
been in possession, custody and control of the Property for
approximately the last ten months, the Madison Lenders added.
The Debtor is represented by:
Kevin J. Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP
1501 Broadway, 22nd Floor
New York, New York 10036
Tel: (212) 221-5700
Fax: (212) 422-6836
Email: KNash@gwfglaw.com
-- and --
Vadim J. Rubinstein, Esq.
LOEB & LOEB LLP
345 Park Avenue
New York, New York 10154
Tel: (212) 407-4000
Fax: (212) 656-1307
Email:vrubinstein@loeb.com
The Secured Creditors are represented by:
Jerold C. Feuerstein, Esq.
Jason S. Leibowitz, Esq.
KRISS & FEUERSTEIN LLP
360 Lexington Avenue, Suite 1200
New York, New York 10017
Tel:(212) 661-2900
Fax:(212) 661-9397
Chaim Miller and Sam Sprei are represented by:
Edward E. Neiger, Esq.
Dina Gielchinsky, Esq.
ASK LLP
151 West 46th Street, 4th Floor
New York, New York 10036
Tel: (212) 267-7342
Fax: (212) 918-3427
Email: eneiger@askllp.com
dgielchinsky@askllp.com
About HS 45
HS 45 John LLC, a single asset real estate, filed a Chapter 11
bankruptcy petition (Bankr. S.D.N.Y. Case No. 15-10368) on
Feb. 20, 2015. The Debtor estimated $50 million to $100 million
in
assets and liabilities.
The case is assigned to Judge Sean H. Lane. Kevin J. Nash, Esq.,
at Goldberg Weprin Finkel Goldstein LLP, represents the Debtor in
its restructuring effort.
HUISH DETERGENTS: Bank Debt Trades at 3% Off
--------------------------------------------
Participations in a syndicated loan under which Huish Detergents
Inc. is a borrower traded in the secondary market at 96.85
cents-on-the-dollar during the week ended Friday, August 21, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the August 25, 2015, edition of The Wall Street
Journal. This represents a decrease of 0.40 percentage points from
the previous week, The Journal relates. Huish Detergents Inc. pays
425 basis points above LIBOR to borrow under the facility. The bank
loan matures on March 19, 2020. Moody's rates the loan 'B1' and
Standard & Poor's gave a 'B-' rating to the loan. The loan is one
of the biggest gainers and losers among 244 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, August 21.
INDEPENDENCE TAX II: Incurs $81,400 Net Loss in June 30 Quarter
---------------------------------------------------------------
Independence Tax Credit Plus L.P. II filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $81,388 on $220,826 of total revenues for the three
months ended June 30, 2015, compared to a net loss of $118,862 on
$213,343 of total revenues for the same period during the prior
year. As of June 30, 2015, the Company had $2.7 million in total
assets, $17 million in total liabilities and a total partners'
deficit of $14.3 million. A full-text copy of the Form 10-Q is
available for free at http://is.gd/QhfSL7
About Independence Tax Credit Plus L.P. II
Based in New York, Independence Tax Credit Plus L.P. II was
organized on Feb. 11, 1992, and commenced its public offering on
Jan. 19, 1993. The general partner of the Partnership is Related
Independence Associates L.P., a Delaware limited partnership. The
general partner of Related Independence Associates L.P. is Related
Independence Associates Inc., a Delaware Corporation. The
ultimate parent of Related Independence Associates L.P. is
Centerline Holding Company.
The Partnership's business is primarily to invest in other
partnerships owning leveraged apartment complexes that are
eligible for the low-income housing tax credit enacted in the Tax
Reform Act of 1986, some of which may also be eligible for the
historic rehabilitation tax credit.
The Partnership is in the process of developing a plan to dispose
of all of its investments.
INFINITY ENERGY: Incurs $7.58 Million Net Loss in Second Quarter
----------------------------------------------------------------
Infinity Energy Resources, Inc., filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $7.58 million for the three months ended June 30, 2015,
compared with a net loss of $625,070 for the same period a year
ago.
For the six months ended June 30, 2015, the Company reported a net
loss of $7.8 million compared to a net loss of $2.5 million for the
same period during the prior year.
The Company had no revenues in either 2015 or 2014. It focused
solely on the exploration, development and financing of the
Nicaraguan Concessions.
As of June 30, 2015, the Company had $9.6 million in total assets,
$19.3 million in total liabilities and a stockholders' deficit of
$9.61 million.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/O0Sz1x
About Infinity Energy
Overland Park, Kansas-based Infinity Energy Resources and its
subsidiaries, are engaged in the acquisition and exploration of
oil and gas properties offshore Nicaragua in the Caribbean Sea.
In its report on the consolidated financial statements for the
year
ended Dec. 31, 2014, RBSM, LLP, expressed substantial doubt about
the Company's ability to continue as a going concern, citing that
the Company has suffered recurring losses, has no on-going
operations, and has a significant working capital deficit.
The Company reported a net loss of $3.68 million for the year ended
Dec. 31, 2014, compared with a net loss of $2.43 million during the
prior year.
As of March 31, 2015, Infinity Energy had $9.72 million in total
assets, $11.9 million in total liabilities, all current, and a
$2.21 million total stockholders' deficit.
INGWALL HOLDINGS: Case Summary & Largest Unsecured Creditors
------------------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Ingwall Holdings, LLC 15-08709
2233 3rd Avenue South
Saint Petersburg, FL 33712
Island Nautical Enterprises, Inc. 15-08710
2233 3rd Avenue South
Saint Petersburg, FL 33712
Chapter 11 Petition Date: August 26, 2015
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtors' Counsel: Jake C Blanchard, Esq.
BLANCHARD LAW, PA
1501 S. Belcher Rd. Unit 2B
Largo, FL 33771
Tel: 727-531-7068
Fax: 727-535-2086
Email: jake@jakeblanchardlaw.com
Total Total
Assets Liabilities
----------- -----------
Ingwall Holdings $667,568 $2.21MM
Island Nautical Enterprises $555,606 $2.31MM
The petition was signed by Robert A. Ingwall, president of Island
Nautical Ent. Inc.
A list of Ingwall Holdings' four largest unsecured creditors is
available for free at http://bankrupt.com/misc/flmb15-08709.pdf
A list of Island Nautical Enterprises' 20 largest unsecured
creditors is available for free at:
http://bankrupt.com/misc/flmb15-08710.pdf
INTERLEUKIN GENETICS: Incurs $2.16 Million Net Loss in Q2
---------------------------------------------------------
Interleukin Genetics, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $2.16 million on $376,051 of total revenue for the three months
ended June 30, 2015, compared to a net loss of $1.57 million on
$528,595 of total revenue for the same period during the prior
year.
For the six months ended June 30, 2015, the Company reported a net
loss of $4 million on $779,263 of total revenue compared to a net
loss of $3.24 million on $1 million of total revenue for the same
period a year ago.
As of June 30, 2015, the Company had $9.42 million in total assets,
$8.51 million in total liabilities and $918,742 in total
stockholders' equity.
The Company said it continues to take steps to reduce genetic test
processing costs. Cost savings are primarily achieved through test
process improvements. Management believes that the current
laboratory space is adequate to process high volumes of genetic
tests.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/1nQcxC
About Interleukin
Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized
health company that develops unique genetic tests to provide
information to better manage health and specific health risks.
Grant Thornton LLP, in Boston, Massachusetts, issued a "going
concern" qualification in its report on the consolidated financial
statements for the year ended Dec. 31, 2014, citing that the
Company has incurred recurring losses from operations and has an
accumulated deficit that raise substantial doubt about the
Company's ability to continue as a going concern.
INTERNATIONAL BRIDGE: Creditors Have Until This Week to File Claim
------------------------------------------------------------------
Creditors of International Bridge Corp. has until this week to file
their pre-bankruptcy claims against the company, according to court
filings.
Proofs of claim must be filed on or before the August 31 deadline
approved by Judge Robert Berger, who oversees the company's
bankruptcy case.
This deadline is called a "bar date" because it means that
creditors who come forward after that date may be "barred" from
ever filing a claim against the company.
About Int'l Bridge Corp.
International Bridge Corporation, a contractor for government
projects in the South Pacific and Guam, sought Chapter 11
protection (Bankr. D. Kan. Case No. 15-20951) in Kansas City on May
7, 2015. Robert Toelkes, the sole shareholder and manager, signed
the petition. The Debtor disclosed total assets of $17.4 million
and total debts of $27.4 million.
The case is assigned to Judge Robert D. Berger. The Debtor tapped
Stevens & Brand, LLP, as its counsel. Foulston Siefkin, LLP,
serves as the Debtor's special litigation counsel. Robert G. Nath,
PLLC, represents the Debtor as special tax counsel.
On June 16, 2015, the U.S. trustee overseeing the Debtor's
bankruptcy case announced that it wasn't able to form a committee
to represent unsecured creditors of the company.
According to the docket, the Debtor's Chapter 11 plan and
disclosure statement are due by Sept. 4, 2015.
INVENTIV HEALTH: Posts $30.2 Million Net Income for 2nd Quarter
---------------------------------------------------------------
Inventiv Health, Inc. filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
attributable to the Company of $30.2 million on $489.4 million of
net revenues for the three months ended June 30, 2015, compared to
a net loss attributable to the Company of $52.9 million on $449.5
million of net revenues for the same period a year ago.
For the six months ended June 30, 2015, the Company reported a net
loss attributable to the Company of $75.3 million on $1.1 billion
of total revenues compared to a net loss attributable to the
Company of $102.2 million on $991.7 million of total revenues for
the same period during the prior year.
As of June 30, 2015, the Company had $2.1 billion in total assets,
$2.8 billion in total liabilities and a stockholders' deficit of
$689.9 million.
"We finance our operations, growth and business acquisitions with
cash flow from operations and borrowings under our credit
facilities. Investing activities primarily reflect the costs of
acquisitions and capital expenditures. As of June 30, 2015 and
December 31, 2014, we had unrestricted cash and cash equivalents of
$51.6 million and $57.1 million, respectively. As of June 30,
2015, approximately $16.6 million is held by non U.S. subsidiaries
and may be remitted without materially impacting future tax
provisions."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/6O7B8P
inVentiv Health discussed the Company's financial results for the
second quarter of 2015 during a conference call at 1:00 p.m.
Eastern Time on Aug. 17, 2015. During this conference call, the
Company used a presentation, a copy of which is available for free
at http://is.gd/wxH8hc
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.
KEITH HALL: Case Summary & 5 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Keith Hall Properties, Inc.
7318 Parkway Drive
Leeds, AL 35094
Case No.: 15-03412
Chapter 11 Petition Date: August 26, 2015
Court: United States Bankruptcy Court
Northern District of Alabama (Birmingham)
Judge: Hon. Tamara O Mitchell
Debtor's Counsel: Andre' M. Toffel, Esq.
ANDRE' M. TOFFEL, P.C.
450A Century Park South, Suite #206A
Birmingham, AL 35226
Tel: 205-252-7115
Email: ATOFFEL@toffelpc.COM
Total Assets: $6 million
Total Liabilities: $4.2 million
The petition was signed by James Keith Hall, president.
A list of the Debtor's five largest unsecured creditors is
available for free at http://bankrupt.com/misc/almb15-03412.pdf
LIQUIDMETAL TECHNOLOGIES: Ricardo Salas Quits as EVP and Director
-----------------------------------------------------------------
Ricardo Salas resigned as an employee, executive vice president,
and director of Liquidmetal Technologies, Inc., on Aug. 20, 2015,
in order to focus on other business interests. According to a
regulatory filing with the Securities and Exchange Commission, Mr.
Salas did not resign because of a disagreement with the Company on
any matter relating to the Company's operations, policies or
practices.
In connection with his resignation, on Aug. 21, 2015, Mr. Salas
entered into a Confidential Separation Agreement and Release of
Claims with the Company. Under the Separation Agreement, if Mr.
Salas elects to continue receiving group medical insurance
coverage, the Company will reimburse him for the associated premium
costs for up to nine months following his August 20 termination
date. In addition, the Company will continue to pay Mr. Salas his
salary until May 14, 2016, for so long as he complies with the
Separation Agreement. The Company has also agreed that it will
permit Mr. Salas to continue to vest in certain awards granted
under the Company's equity incentive plans at the regular monthly
vesting rate until the End Date, at which time all those awards
will terminate and cease to be exercisable.
In consideration for these severance arrangements, Mr. Salas has
agreed (1) to release the Company and its affiliates from any
claims and liabilities arising out of his employment with or
separation from the Company, (2) not to make any disparaging
statements regarding the Company, and (3) not to nominate or
propose himself, or permit himself to be nominated or proposed, for
election or appointment to the Company's board of directors at any
time on or prior to Dec. 31, 2017. Mr. Salas has also agreed to be
available to consult with the Company, at the Company's request,
for up to three hours per week for no additional compensation. If
Mr. Salas provides consulting services in excess of three hours in
one week, the Company will pay Mr. Salas compensation at an hourly
rate equal to his annual salary as of the Termination Date divided
by 2,080.
About Liquidmetal Technologies
Based in Rancho Santa Margarita, Cal., Liquidmetal Technologies,
Inc., and its subsidiaries are in the business of developing,
manufacturing, and marketing products made from amorphous alloys.
Liquidmetal Technologies markets and sells Liquidmetal(R) alloy
industrial coatings and also manufactures, markets and sells
products and components from bulk Liquidmetal alloys that can be
incorporated into the finished goods of its customers across a
variety of industries. The Company also partners with third-
party licensees and distributors to develop and commercialize
Liquidmetal alloy products.
Liquidmetal Technologies reported a net loss and comprehensive loss
of of $6.55 million on $603,000 of total revenues for the year
ended Dec. 31, 2014, compared to a net loss and comprehensive loss
of $14.2 million on $1.02 million of total revenue in 2013.
As of June 30, 2015, the Company had $9.5 million in total assets,
$3.9 million in total liabilities and $5.5 million in total
stockholders' equity.
SingerLewak LLP, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31, 2014,
citing that the Company has suffered recurring losses from
operations, has negative cash flows from operations and has an
accumulated deficit. This raises substantial doubt about the
Company's ability to continue as a going concern.
MIDWAY GOLD: Committee Gets Approval to Hire Financial Advisor
--------------------------------------------------------------
Midway Gold U.S. Inc.'s official committee of unsecured creditors
received court approval to hire Gavin/Solmonese LLC as its
financial advisor.
As financial advisor, Gavin/Solmonese will provide the following
services:
(1) Review and analyze the businesses, management, operations,
properties, financial condition and prospects of the
company and its affiliated debtors;
(2) Review and analyze historical financial performance, and
transactions between and among the companies, their
creditors, affiliates and other entities;
(3) Review the assumptions underlying the business plans and
cash flow projections for the assets involved in any
potential asset sale or plan of reorganization;
(4) Determine the reasonableness of the projected performance
of the companies, both historical and prospective;
(5) Monitor, evaluate and report to the committee with respect
to the companies' near-term liquidity needs, material
operational changes and related financial and operational
issues;
(6) Review and analyze all material contracts and agreements;
(7) Assist in the procurement of and assemble any necessary
validations of asset values;
(8) Assist the committee and its legal counsel;
(9) Evaluate the companies' capital structure and make
recommendations to the committee with respect to their
efforts to reorganize their business operations and confirm
a restructuring or liquidating plan;
(10) Assist the committee in preparing documentation required in
connection with creating, supporting or opposing a plan and
participate in negotiations on behalf of the committee with
the companies or any groups affected by the plan;
(11) Assist the committee in marketing the companies' assets
with the intent of maximizing the value received for any
such assets; and
(l2) Provide ongoing analysis of the companies' financial
condition, business plans, capital spending budgets,
operating forecasts, management and the prospects for their
future performance; and
Gavin/Solmonese will be paid on an hourly basis and will be
reimbursed for work-related expenses. The firm has agreed to a
10% reduction from its customary base hourly rates:
Personnel Status Hourly Rates
--------- ------ ------------
Edward Gavin Managing Director $650
Wayne Weitz Managing Director $525
Stanley Mastil Director $400
Kathryn McGlynn Director $400
Joseph Richman Consultant $295
Charles Lewis Consultant $295
The firm does not presently provide services to a creditor or
equity interest holder of the companies, or to a person otherwise
adverse to the companies, according to a declaration by Mr. Weitz.
About Midway Gold
Midway Gold Corp., incorporated on May 14, 1996 under the laws of
the Province of British Columbia, Canada, is engaged in the
acquisition, exploration and development of mineral properties
located in the state of Nevada and Washington.
Midway Gold operates primarily through its wholly-owned subsidiary
located in the United States, Midway Gold US Inc. The executive
offices are in Englewood, Colorado. Midway US currently has one
gold producing property: the Pan gold mine located in White Pine
County, Nevada. Midway also has gold properties which are
exploratory stage projects where gold mineralization has been
identified, such as the Tonopah project in Nye County, Nevada, the
Gold Rock project in White Pine County, Nevada, and the Golden
Eagle project in Ferry County, Washington. Out of these projects,
a permitting process has been undertaken only for the Gold Rock
project. Finally, Midway's Spring Valley property, another gold
property located in Pershing County, Nevada, is subject to a joint
venture with Barrick Gold Exploration Inc.
On June 22, 2015, Midway Gold US Inc. and 12 related entities,
including parent Midway Gold Corp. each filed a petition in the
U.S. Bankruptcy Court for the District of Colorado seeking relief
under Chapter 11 of the U.S. Bankruptcy Code. The Debtors' cases
have been assigned to Judge Michael E. Romero. The Debtors sought
to have their cases jointly administered for procedural purposes,
with all pleadings will be maintained on the case docket for Midway
Gold US Inc.; Case No. 15-16835.
The Debtors tapped Squire Patton Boggs (US) LLP as bankruptcy
counsel; Sender Wasserman Wadsworth, P.C., as special bankruptcy
and restructuring counsel; DLA Piper (Canada) LLP, as Canadian
bankruptcy counsel; Ernst & Young Inc., as information officer of
Canadian court; RBC Capital Markets, as investment banker; FTI
Consulting as financial advisor; and Epiq Solutions, as claims and
noticing agent.
In July, the U.S. trustee overseeing the Debtors' cases appointed
seven creditors to serve on the official committee of unsecured
creditors. The creditors are American Assay Laboratories, EPC
Services Company, InFaith Community Foundation, Jacobs Engineering
Group Inc., SRK Consulting (US) Inc., Sunbelt Rentals, and Boart
Longyear.
Midway Gold disclosed $184 million in assets and $62.4 million in
liabilities as of March 31, 2015.
MOUNTAIN PROVINCE: Incurs C$5.7 Million Net Loss in 2nd Quarter
---------------------------------------------------------------
Mountain Province Diamonds Inc. filed with the Securities and
Exchange Commission its quarterly report disclosing a net loss of
C$5.7 million for the three months ended June 30, 2015, compared to
a net loss of C$1.7 million for the same period during the prior
year.
For the six months ended June 30, 2015, Mountain Province reported
a net loss of C$6.3 million compared to a net loss of C$2.9 million
for the same period a year ago.
As of June 30, 2015, the Company had C$510.3 million in total
assets, C$165.7 million in total liabilities and C$344.6 million in
total shareholders' equity.
A full-text copy of the Quarterly Report is available at:
http://is.gd/5x2M2x
About Mountain Province Diamonds
Headquartered in Toronto, Canada, Mountain Province Diamonds Inc.
(TSX: MPV, NYSE AMEX: MDM) -- http://www.mountainprovince.com/--
is a Canadian resource company in the process of permitting and
developing a diamond deposit known as the "Gahcho Kue Project"
located in the Northwest Territories of Canada. The Company's
primary asset is its 49 percent interest in the Gahcho Kue
Project.
Mountain Province incurred a net loss of C$4.39 million in 2014, a
net loss of C$26.6 million in 2013 and a net loss of C$3.33 million
in 2012.
KPMG LLP, Toronto, Canada, issued a "going concern" qualification
on the consolidated financial statements for the year ended
Dec. 31, 2014, citing that the Company's ability to continue
operations is dependent upon its ability to obtain sufficient
financing to fund its operations and development costs.
MUSCLEPHARM CORP: To Position Company for Future Profitability
--------------------------------------------------------------
MusclePharm Corporation announced plans to better focus and align
the Company's resources toward profitable growth. The Company
believes this initiative could yield cost savings in excess of $20
million on an annual basis going forward, and profitability in 2016
and beyond. MusclePharm will be working to increase operating
profit margins to 10 percent and earnings before interest, taxes,
depreciation and amortization margins to 15 percent by 2020.
The announcement follows recent moves by MusclePharm to build on
its core strengths as a leading sports nutrition brand. As
detailed in the Company's second quarter results ended June 30,
2015, recent highlights include:
* Net quarterly revenue of a record $50.5 million;
* $3.5 million operating cash flow positive for Q2 with $4.2
million in cash on hand;
* $8.5 million sales backlog;
* Gross margin was 34.7%, up 3.1 percentage points versus 2014
full year results;
In addition, the Company continues to focus on instituting best
practices in corporate governance at the Board level. Ryan
Drexler, an experienced nutrition and fitness executive and
investment manager, was recently appointed as the new Chairman of
the Board who will also play an executive role in the company. The
Company also recently appointed three additional independent
Directors to MusclePharm Board, thereby expanding the total Board
to seven Directors.
"I joined the board to help position the company as it continues
pursuing future growth opportunities, while also providing an
investor perspective to the management of our growth," said Mr.
Drexler. "I believe this is the first in many steps we are taking
to position the company for profitability and success."
As a result of the restructuring announcement, MusclePharm
anticipates the closure of certain facilities, employee reductions
and the termination of contracts which could result in a one-time
charge of up to $20 million to $30 million. The amount of the
anticipated charge is under review and preliminary and therefore is
subject to change.
"Reducing costs will unfortunately include the elimination of some
positions throughout the company," said Brad Pyatt, MusclePharm's
CEO. "These staffing reductions are intended to rightsize our
business and reduce related costs as we work toward profitability
and long-term shareholder value creation."
Although MusclePharm does not expect these cost savings initiatives
to affect top line revenue, the Company is adjusting its full year
projected revenue range to between $190 million and $200 million.
MusclePharm expects to make further announcements as details of the
restructuring are implemented. At this time, the Company is not
able to make a more precise determination of the estimated amount
or range of amounts to be incurred for each major type of cost
reduction, nor the exact charges and future cash expenditures.
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.
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.
OPTIMUMBANK HOLDINGS: Reports $6,000 Net Earnings for 2nd Quarter
-----------------------------------------------------------------
OptimumBank Holdings, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing net
earnings of $6,000 on $1.1 million of total interest income for the
three months ended June 30, 2015, compared to net earnings of $1.3
million on $1.8 million of total interest income for the same
period in 2014.
For the six months ended June 30, 2015, the Company reported a net
loss of $176,000 on $2.2 million of total interest income compared
to net earnings of $1.6 million on $3 million of total interest
income for the same period in 2014.
As of June 30, 2015, the Company had $132.6 million in total
assets, $129.7 million in total liabilities and $2.9 million in
total stockholders' equity.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/BM5eMq
About OptimumBank Holdings
OptimumBank Holdings, Inc., headquartered in Fort Lauderdale,
Fla., is a one-bank holding company and owns 100 percent of
OptimumBank, a state (Florida)-chartered commercial bank.
The Company offers a wide array of lending and retail banking
products to individuals and businesses in Broward, Miami-Dade and
Palm Beach Counties through its executive offices and three branch
offices in Broward County, Florida.
Optimumbank reported net earnings of $1.6 million on $5.39 million
of total interest income for the year ended Dec. 31, 2014, compared
to a net loss of $7.07 million on $5.28 million of total interest
income for the year ended Dec. 31, 2013.
Hacker, Johnson & Smith PA, in Fort Lauderdale, Florida, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2014. The independent
auditors noted that the Company is in technical default with
respect to its Junior Subordinated Debenture. The holders of the
Debt Securities could demand immediate payment of the outstanding
debt of $5,155,000 and accrued and unpaid interest, which raises
substantial doubt about the Company's ability to continue as a
going concern.
Effective April 16, 2010, the Bank consented to the issuance of a
consent order by the Federal Deposit Insurance Corporation and the
Florida Office of Financial Regulation.
OSAGE EXPLORATION: Incurs $1.91 Million Net Loss in Second Quarter
------------------------------------------------------------------
Osage Exploration and Development, Inc. filed with the Securities
and Exchange Commission its quarterly report on Form 10-Q
disclosing a net loss of $1.91 million on $2.11 million of total
operating revenues for the three months ended June 30, 2015,
compared to a net loss of $4.39 million on $2.47 million of total
operating revenues for the same period during the prior year.
For the six months ended June 30, 2015, the Company reported a net
loss of $2.67 million on $5.02 million of total operating revenues
compared to a net loss of $5.33 million on $5.11 million of total
operating revenues for the same period a year ago.
As of June 30, 2015, the Company had $25.07 million in total
assets, $39.72 million in total liabilities and a stockholders'
deficit of $14.64 million.
Bankruptcy Warning
"The Company's operating plans require additional funds which may
take the form of debt or equity financings. The Company's ability
to continue as a going concern is dependent upon achieving
profitable operations and obtaining additional financing. Our cash
flows and results of operations depend to a great extent on the
prevailing prices for oil and gas. Prolonged or substantial
declines in oil / and/or gas prices may materially and adversely
affect our liquidity, the amount of cash flows we have available
for our capital expenditures and other operating expenses, our
ability to access credit and capital markets and our results of
operations. There is no assurance additional funds will be
available on acceptable terms or at all. In the event the Company
is unable to continue as a going concern, management may elect or
be required to seek protection from creditors by filing a voluntary
petition in bankruptcy or may be subject to an involuntary petition
in bankruptcy," the Company said in the filing.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/bDwSxZ
About Osage Exploration
Based in San Diego, California with production offices in Oklahoma
City, Oklahoma, and executive offices in Bogota, Colombia, Osage
Exploration and Development, Inc. (OTC BB: OEDV) --
http://www.osageexploration.com/-- is an independent exploration
and production company with interests in oil and gas wells and
prospects in the US and Colombia.
The Company incurred a net loss of $34.5 million on $12.7 million
of total operating revenues for the year ended Dec. 31, 2014,
compared with net income of $3.85 million on $8.02 million of total
operating revenues for the year ended Dec. 31, 2013.
Mayer Hoffman McCann P.C., 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 has incurred recurring losses from operations and, as of
Dec. 31, 2014, has current liabilities significantly in excess of
current assets. These conditions, among others, raise substantial
doubt about its ability to continue as a going concern, the
auditors said.
PACIFIC GOLD: Delays June 30 Form 10-Q Filing
---------------------------------------------
Pacific Gold Corp. filed with the U.S. Securities and Exchange
Commission a Notification of Late Filing on Form 12b-25 with
respect to its quarterly report on Form 10-Q for the quarter ended
June 30, 2015.
"The compilation, verification and review by management of the
information and disclosure required to be presented in the Form
10-Q for the period ended June 30, 2015, requires additional time
which renders the timely filing of the Form 10-Q impracticable
without undue hardship and expense to the Registrant," the Company
said in the filing.
About Pacific Gold
Las Vegas, Nev.-based Pacific Gold Corp. is engaged in the
identification, acquisition, and development of prospects believed
to have gold mineralization. Pacific Gold through its
subsidiaries currently owns claims, property and leases in Nevada
and Colorado.
The Company reported a net loss of $696,000 on $0 of revenue for
the three months ended June 30, 2014, compared with a net loss of
$515,000 on $0 of revenue for the same period in 2013.
The Company's balance sheet at Sept. 30, 2014, showed $1.1 million
in total assets, $3.81 million in total liabilities and a
stockholders' deficit of $2.71 million.
Silberstein Ungar, PLLC, issued a "going concern" qualification on
the consolidated financial statements for the year ended Dec. 31,
2013, citing that the Company has incurred losses from operations,
has negative working capital, and is in need of additional capital
to grow its operations so that it can become profitable. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
PARKER DRILLING: Moody's Cuts Senior Unsecured Notes Rating to B2
-----------------------------------------------------------------
Moody's Investors Service downgraded Parker Drilling Company's
senior unsecured notes rating to B2 from B1 and changed its rating
outlook to negative from stable. Concurrently, Moody's affirmed
Parker's B1 Corporate Family Rating (CFR) and B1-PD Probability of
Default Rating (PDR), and changed its Speculative Grade Liquidity
Rating to SGL-2 from SGL-1.
"These actions reflect our view that Parker's earnings and cash
flows will remain weak through 2016 and leverage will rise
significantly above the company's historical levels," said Sajjad
Alam, Moody's Assistant Vice President. "Parker's US rental tools
and US inland barge businesses will be most challenged. However,
the company has significant exposure to international markets that
has been more resilient than US markets, flexibility in its capital
spending program, and good liquidity to weather the downturn."
Issuer: Parker Drilling Company
Downgraded:
Senior Unsecured Regular Bond/Debenture, Downgraded to B2 (LGD4)
from B1
Outlook Action:
Changed to Negative from Stable
Affirmations:
Corporate Family Rating, Affirmed B1
Probability of Default Rating, Affirmed B1-PD
Changes:
Speculative Grade Liquidity Rating, downgraded to SGL -- 2 from SGL
-- 1
RATINGS RATIONALE
Parker's B1 Corporate Family Rating (CFR) reflects the company's
limited scale within the greater oilfield service industry,
exposure to the cyclical contract drilling markets and volatile
upstream capital spending levels, the capital intensity of its
drilling and rental tools businesses, and the inherent business and
political risks in its international operations. "The B1 CFR also
reflects our expectation of a significant increase in leverage
during this industry downturn." The rating is supported by Parker's
globally diversified geographic footprint that moderates cash flow
volatility, its niche position as a provider of specialized
drilling rigs and ability to work on complex wells or in remote and
harsh locations, good liquidity and the scalability of its rental
tools business both in the US and in international markets.
Moody's anticipates a large drop in Parker's overall utilization
rate, revenues and margins in 2015 relative to 2014 levels because
of low oil prices, and potentially further declines in 2016. While
the company's rigs working in Alaska and in certain international
markets have strong revenue backlog backed by multi-year contracts,
the barge rigs in the US and several land rigs in other
international locations have limited revenue visibility. However,
Parker has significant balance sheet flexibility to weather a
protracted downturn in the oilfield services industry. The
company's leverage stood at 2.7x at June 30, 2015 based on Moody's
adjusted LTM EBITDA of $244 million and Moody's adjusted debt of
$650 million (including $65 million of operating leases). "However,
we expect that leverage will rise above 4.0x in 2016 should
commodity prices remain depressed."
"Moody's expects Parker to maintain good liquidity through 2016,
which is captured in our SGL-2 rating." The company has a
substantial cash balance ($117 million at June 30, 2015) and a $200
million revolving credit facility (~$187 million available), which
was upsized from $80 million in January 2015 and matures in January
2020. Based on Moody's projected EBITDA of $120-$130 million and
capital expenditures of $80-$90 million through mid-2016, the
company should generate break-even to slightly positive cash flow
during that period. "We also expect that management will further
reduce capital spending if needed and manage the business within
operating cash flow in 2016. There is high likelihood that the
company will breach its leverage covenant in early 2016, however,
we expect the company to work with its bank group to amend the
covenants and ensure sufficient headroom through 2016. The current
revolver financial covenants include a maximum debt/EBITDA ratio of
4.0x, a maximum secured debt/EBITDA ratio of 1.5x, a minimum
EBITDA/interest expense ratio of 2.5x and a minimum asset coverage
ratio of 1.25x."
"Parker's senior notes are rated B2, one notch below B1 CFR under
our Loss Given Default Methodology. The notching reflects the
significant size of the $200 million secured revolver in the
capital structure that has a first-priority claim to Parker's
assets. Given our expectation of a prolonged downturn, there is
increased potential for the revolver to be utilized and therefore,
the notes were downgraded to B2 from B1."
"The negative outlook reflects poor industry conditions and our
view that Parker's leverage will continue to weaken in coming
quarters." A downgrade may occur if the debt to EBITDA ratio
remains above 4.5x over a sustained period or the interest coverage
ratio approaches 2.5x. Any significant erosion in liquidity could
also trigger a downgrade. Given the inherent volatility in Parker's
operating environment, increased scale and stronger contracted
revenue backlog would be viewed as credit enhancing. "We could
consider an upgrade if Parker reduced leverage near 2x in a stable
industry environment."
Parker Drilling Company, headquartered in Houston, Texas, provides
rental tools and contract drilling services to the oil & gas
industry globally.
PATRIOT COAL: Greer Industries Sells $26,000 Claim to CRG
---------------------------------------------------------
In the Chapter 11 cases of Patriot Coal Corporation, et al., one
claim switched hands on July 14, 2015:
Transferee Transferor Claim Amount
---------- ---------- ------------
Claims Recovery Group LLC Greer Industries Inc $26,039.28
About Patriot Coal
Patriot Coal Corporation is a producer and marketer of coal in the
United States. Patriot and its subsidiaries control 1.4 billion
tons of proven and probable coal reserves -- including owned and
leased assets in the Central Appalachia basin (in West Virginia
and Ohio) and Southern Illinois basin (in Kentucky and Illinois)
and their operations consist of eight active mining complexes in
West Virginia.
Patriot Coal first sought Chapter 11 protection on July 9, 2012,
and, on Dec. 18, 2013, won approval of its bankruptcy-exit plan
from the U.S. Bankruptcy Court for the Eastern District of
Missouri. The plan turned over most of the ownership of the
company to bondholders that include New York hedge fund Knighthead
Capital Management LLC. The linchpins of the plan were a global
settlement among the Debtors, the United Mine Workers of America,
and two third parties -- Peabody Energy Corporation and Arch Coal,
Inc. -- and a commitment by a consortium of creditors, led by
Knighthead, to backstop two rights offerings that funded the plan.
Patriot Coal and its subsidiaries commenced new Chapter 11 cases
(Bankr. E.D. Va. Lead Case No. 15-32450) in Richmond, Virginia, on
May 12, 2015. Patriot Coal estimated more than $1 billion in
assets and debt. The cases are assigned to Judge Keith L.
Phillips.
The Debtors tapped Kirkland & Ellis LLP as counsel; Kutak Rock
L.L.P., as co-counsel; Centerview Partners LLC as investment
bankers; Alvarez & Marsal North America, LLC, as restructuring
advisors; and Prime Clerk LLC, as claims and administrative agent.
The U.S. trustee overseeing the Chapter 11 case of Patriot Coal
appointed seven creditors of the company to serve on the official
committee of unsecured creditors. The Unsecured Creditors
Committee is represented by Morrison & Foerster LLP's Lorenzo
Marinuzzi, Esq., and Jennifer L. Marines, Esq.; and Tavenner &
Beran, PLC's Lynn L. Tavenner, Esq., and Paula S. Beran, Esq.
The U.S. Trustee also has appointed an Official Retiree Committee,
which is represented by lawyers at Stahl Cowen Crowley Addis LLC.
On June 22, 2015, Joseph Bean, Patriot Coal's senior
vice-president, was designated by the court to perform the duties
imposed upon the company by the Bankruptcy Code. This designation
will remain in effect during the entire pendency of Patriot Coal's
case until altered by order of the court.
* * *
According to a report by the Troubled Company Reporter, Patriot
Coal has filed with the Bankruptcy Court a letter of intent for a
proposed sale of a substantial majority of its operating assets to
Blackhawk Mining, LLC, as well as a motion outlining bidding
procedures. Under the terms of the letter of intent, Blackhawk
would issue to Patriot's secured lenders new debt securities
totaling approximately $643 million plus Class B Units providing
them an ownership stake in Blackhawk. In addition, Blackhawk would
assume or replace surety bonds supporting reclamation and related
liabilities associated with the purchased assets.
There's a Sept. 4, 2015 deadline to file bids for the Debtors'
assets. An auction to test bids will take place on Sept. 9, at
10:00 a.m.
PATRIOT COAL: Unsecured Creditors Fear Mine Workers May Strike
--------------------------------------------------------------
Jim Christie, writing for Reuters, reported that unsecured
creditors in Patriot Coal Corp's latest bankruptcy are calling for
the coal producer, its mine workers and a company planning to buy
parts of it to come to terms on union contracts to avert a strike
that could unravel its reorganization.
According to the report, Patriot's official committee of unsecured
creditors urged the three parties to reach a consensual agreement
before Sept. 1, when a hearing is scheduled to take up a plan for
rejecting collective bargaining agreements with the United Mine
Workers of America.
About Patriot Coal
Patriot Coal Corporation is a producer and marketer of coal in the
United States. Patriot and its subsidiaries control 1.4 billion
tons of proven and probable coal reserves -- including owned and
leased assets in the Central Appalachia basin (in West Virginia
and Ohio) and Southern Illinois basin (in Kentucky and Illinois)
and their operations consist of eight active mining complexes in
West Virginia.
Patriot Coal first sought Chapter 11 protection on July 9, 2012,
and, on Dec. 18, 2013, won approval of its bankruptcy-exit plan
from the U.S. Bankruptcy Court for the Eastern District of
Missouri. The plan turned over most of the ownership of the
company to bondholders that include New York hedge fund Knighthead
Capital Management LLC. The linchpins of the plan were a global
settlement among the Debtors, the United Mine Workers of America,
and two third parties -- Peabody Energy Corporation and Arch Coal,
Inc. -- and a commitment by a consortium of creditors, led by
Knighthead, to backstop two rights offerings that funded the plan.
Patriot Coal Corporation and its subsidiaries commenced new
Chapter 11 cases (Bankr. E.D. Va. Lead Case No. 15-32450) in
Richmond, Virginia, on May 12, 2015. The cases are assigned to
Judge Keith L. Phillips.
Patriot Coal estimated more than $1 billion in assets and debt.
The Debtors tapped Kirkland & Ellis LLP as counsel; Kutak Rock
L.L.P., as co-counsel; Centerview Partners LLC as investment
bankers; Alvarez & Marsal North America, LLC, as restructuring
advisors; and Prime Clerk LLC, as claims and administrative agent.
The U.S. trustee overseeing the Chapter 11 case of Patriot Coal
Corp. appointed seven creditors of the company to serve on the
official committee of unsecured creditors. The Committee is
represented by Morrison & Foerster LLP as its counsel, and
Tavenner
& beran, PLC, as its local counsel. Jefferies LLC serves as its
investment banker.
The directed the U.S. Trustee to form an official committee of
retirees at the behest of Patriot Coal Non-Union Retiree VEBA.
* * *
The deadline to file bids for the Debtors' assets is Sept. 4,
2015,
at 5:00 p.m. An auction will take place on Sept. 9, at 10:00 a.m.
Patriot Coal has filed with the Bankruptcy Court a letter of
intent
for a proposed sale of a substantial majority of its operating
assets to Blackhawk Mining, LLC, as well as a motion outlining
bidding procedures. Under the terms of the letter of intent,
Blackhawk would issue to Patriot's secured lenders new debt
securities totaling approximately $643 million plus Class B Units
providing them an ownership stake in Blackhawk. In addition,
Blackhawk would assume or replace surety bonds supporting
reclamation and related liabilities associated with the purchased
assets.
PEABODY ENERGY: Said to Hire Lazard on Advise on Debt Restructuring
-------------------------------------------------------------------
Jodi Xu Klein and Tim Loh, writing for Bloomberg News, reported
that Peabody Energy Corp. hired Lazard Ltd. to advise the coal
miner how to restructure its $6.3 billion of debt, according to two
people with knowledge of the matter.
According to the report, citing the people, who asked not to be
named because the conversations are private, the largest U.S. coal
producer, which is suffering from a collapse in demand for the
commodity, is talking to creditors about ways to cut its debt load,
including swapping obligations for new shares or convertible notes.
That kind of arrangement could allow the company to avoid filing
for bankruptcy, which other miners have done in the current coal
slump, the report noted.
The company has engaged Jones Day as legal counsel, the people
said, the report related.
* * *
The Troubled Company Reporter, on July 29, 2015, reported that
Fitch Ratings has downgraded Peabody Energy Corporation's Issuer
Default Rating (IDR) to 'CCC' from 'B'. Approximately $8.4 billion
in face amount of debt and commitments is affected by the rating
actions.
The downgrade reflects Fitch's view that liquidity could become
constrained in the absence of higher metallurgical coal prices.
For
2015, Fitch believes EBITDA could be about $400 million and free
cash flow burn could reach about $500 million. While Fitch
believes
the cash burn would slow in 2016 and reverse in 2017 with the
roll-off of hedges, halt of LBA and VEBA payments and modest
recovery in metallurgical coal prices, the total debt with equity
credit to EBITDA could be above 7x in 2017, which could limit
access to capital to refinance the $1.5 billion notes due 2018.
Fitch believes the coal markets are at or near the bottom of the
cycle and should show slow recovery but that excess capacity has
been slow to rationalize.
PEAK AERO GROUP: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Peak Aero Group, Inc.
1500 Last Dollar Road, Suite 9
Telluride, CO 81435
Case No.: 15-19573
Chapter 11 Petition Date: August 26, 2015
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Hon. Sidney B. Brooks
Debtor's Counsel: Phillip Jones, Esq.
WILLIAMS, TURNER & HOLMES, P.C.
200 N. 6th St
PO Box 338
Grand Junction, CO 81502
Tel: 970-242-6262
Email: pjones@wth-law.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Charle Edward Cope, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/cob15-19573.pdf
PHARMACYTE BIOTECH: Incurs $546,000 Net Loss in First Quarter
-------------------------------------------------------------
Pharmacyte Biotech, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $546,164 on $0 of revenue for the three months ended July 31,
2015, compared to a net loss of $1.58 million on $0 of revenue for
the same period a year ago.
As of July 31, 2015, the Company had $8.14 million in total assets,
$1.18 million in total liabilities and $6.95 million in total
stockholders' equity.
As of July 31, 2015, the Company's cash totaled approximately $2.9
million, compared to approximately $2.7 million at April 30, 2015.
Working capital was approximately $1.8 million at July 31, 2015,
and approximately $800,000 at April 30, 2015. The increase in cash
is attributable to the sale of the Company's common stock.
"We expect that our cash as of July 31, 2015 will be sufficient to
fund our current operations and provide working capital for general
corporate purposes for the foreseeable future. As a result, we may
undertake additional opportunities in planning and implementing
clinical trials. We intend on continuing the sale of our common
stock to raise capital to fund our clinical trials," the Company
states in the report.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/tqNk0K
About PharmaCyte Biotech, Inc.
PharmaCyte Biotech, Inc., formerly known as Nuvilex Inc, is
dedicated to bringing to market scientifically derived products
designed to improve the health, condition and well-being of those
who use them. The Company is a clinical stage biotechnology
company focused on developing and preparing to commercialize
treatments for cancer and diabetes based upon a proprietary
cellulose-based live-cell encapsulation technology known as
Cell-in-a-Box. The Company intends to use this unique and patented
technology as a platform upon which to build treatments for several
types of cancer, including advanced, inoperable pancreatic cancer,
and diabetes.
Pharmacyte reported a net loss of $10.8 million for the year ended
April 30, 2015, a net loss of $27.2 million for the year ended
April 30, 2014 and a net loss of $1.6 million for the year ended
April 30, 2013.
POSITRON CORP: Incurs $375,000 Net Loss for Second Quarter
----------------------------------------------------------
Positron Corporation filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
and comprehensive loss of $375,000 on $328,000 of sales for the
three months ended June 30, 2015, compared to a net loss and
comprehensive loss of $201,000 on $355,000 of sales for the same
period a year ago.
For the six months ended June 30, 2015, the Company reported a net
loss and comprehensive loss of $929,000 on $674,000 of sales
compared to a net loss and comprehensive loss of $1.06 million on
$811,000 of sales for the same period during the prior year.
As of June 30, 2015, the Company had $1.64 million in total assets,
$2.97 million in total liabilities and a stockholders' deficit of
$1.32 million.
Cash and cash equivalents at June 30, 2015, were $89,000 compared
to $208,000 at Dec. 31, 2014. Accounts receivable were $170,000 at
June 30, 2015, compared to $175,000 at Dec. 31, 2014.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/x5kWNL
About Positron Corporation
Headquartered in Fishers, Indiana, Positron Corporation is a
molecular imaging company focused on nuclear cardiology.
Positron reported a net loss of $2.58 million on $1.46 million of
sales for the year ended Dec. 31, 2014, compared to a net loss of
$7.1 million on $1.63 million of sales for the year ended Dec. 31,
2013.
Sassetti LLC, in Oak Park, Illinois, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2014, citing that the Company has a significant
accumulated deficit which raises substantial doubt about the
Company's ability to continue as a going concern.
PRESSURE BIOSCIENCES: Reports $1.39 Million Net Loss for Q2
-----------------------------------------------------------
Pressure Biosciences, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
applicable to common shareholders of $1.39 million on $413,104 of
total revenue for the three months ended June 30, 2015, compared to
a net loss applicable to common shareholders of $720,789 on
$307,464 of total revenue for the same period a year ago.
For the six months ended June 30, 2015, the Company reported a net
loss applicable to common shareholders of $2.79 million on $853,238
of total revenue compared to a net loss applicable to common
shareholders of $3.80 million on $711,611 of total revenue for the
same period during the prior year.
As of June 30, 2015, the Company had $1.36 million in total assets,
$5.69 million in total liabilities and a $4.32 million total
stockholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/pOklJb
About Pressure Biosciences
Pressure BioSciences, Inc., headquartered in South Easton,
Massachusetts, holds 14 United States and 10 foreign patents
covering multiple applications of pressure cycling technology in
the life sciences field.
Pressure Biosciences reported a net loss applicable to common
shareholders of $6.25 million on $1.37 million of revenue for the
year ended Dec. 31, 2014, compared to a net loss applicable to
common shareholders of $5.24 million on $1.5 million of total
revenue for the year ended Dec. 31, 2013.
Marcum LLP, in Boston, Massachusetts, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2014, noting that the Company has had recurring net
losses and continues to experience negative cash flows from
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern, the auditors
said.
PROTOM INTERNATIONAL: Court Approves Jackson Walker as Counsel
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
authorized Protom International, Inc., and Protom International,
LLC, to employ Jackson Walker L.L.P as counsel.
No objection to the application was filed.
The Debtors tapped Jackson Walker as their attorneys under a
general retainer to give the Debtors legal advice with respect to
the Debtors' powers and duties as debtors in possession and to
continue in operation of the Debtors' business and management of
the Debtors' property and perform all legal services for the
Debtors that may be necessary.
Kenneth Stohner, Jr., and James s. Ryan, III, will be the attorneys
who will lead the arrangement.
The hourly rates of the attorneys and legal assistants who will
primarily be providing services for the Debtors are:
Name Title Hourly Rate
---- ----- -----------
Kenneth Stohner, Jr. Partner $625
James S. Ryan, III Partner $625
Heather Forrest Partner $485
Jennifer Wertz Associate $375
Christopher Rosa Associate $375
Jillian Harris Associate $325
Terri Salter Paralegal $220
Carole Thomas Paralegal $205
Matt Deegan Specialist $230
During the year preceding the filing of the Petitions, the Debtors
paid Jackson Walker an aggregate amount of $425,000. Of this
amount, $230,000 was paid during the period prior to 90 days before
the Petition Date.
Mr. Stohner attests that Jackson Walker is a "disinterested person"
within the meaning of Sec. 101(14) of the Bankruptcy Code.
About ProTom International
ProTom International Inc. is a medical technology focused on proton
therapy for cancer patients. The Company and affiliate ProTom
International, LLC, have the exclusive rights to sell in the U.S.
the compact accelerators developed by Russia-based ZAO Protom and
owner Vladimir E. Balakin. The ZAO system and technology were
lighter and cheaper than proton therapy systems then in operation
in the U.S. This technology has been the basis on which ProTom has
developed its Radiance 330 Proton Therapy System.
ProTom International, Inc., and ProTom International, LLC, sought
Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No.
15-32065 and 15-32066) in Dallas on May 12, 2015. The cases are
assigned to Judge Barbara J. Houser.
The Debtors tapped Jackson Walker, LLP as counsel, and Lain,
Faulkner & Co., P.C., as accountant.
ProTom Inc. estimated $10 million to $50 million in assets and
debt. ProTom International Inc., disclosed $1,728,894 in assets
and $22,283,648 in liabilities as of the Chapter 11 filing.
PROTOM INTERNATIONAL: KeyBanc Capital OK'd as Investment Banker
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
authorized Protom International, Inc., and Protom International,
LLC, to employ KeyBanc Capital Markets, Inc. as investment banker,
nunc pro tunc to May 12, 2015.
The Court ordered that KeyBanc may be paid under the agreement by
payment at closing of the applicable transaction without a prior
fee application or further order of the Court.
About ProTom International
ProTom International Inc. is a medical technology focused on proton
therapy for cancer patients. The Company and affiliate ProTom
International, LLC, have the exclusive rights to sell in the U.S.
the compact accelerators developed by Russia-based ZAO Protom and
owner Vladimir E. Balakin. The ZAO system and technology were
lighter and cheaper than proton therapy systems then in operation
in the U.S. This technology has been the basis on which ProTom has
developed its Radiance 330 Proton Therapy System.
ProTom International, Inc., and ProTom International, LLC, sought
Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No.
15-32065 and 15-32066) in Dallas on May 12, 2015. The cases are
assigned to Judge Barbara J. Houser.
The Debtors tapped Jackson Walker, LLP as counsel, and Lain,
Faulkner & Co., P.C., as accountant.
ProTom Inc. estimated $10 million to $50 million in assets and
debt. ProTom International Inc., disclosed $1,728,894 in assets
and $22,283,648 in liabilities as of the Chapter 11 filing.
PURADYN FILTER: Incurs $322,000 Net Loss in Second Quarter
----------------------------------------------------------
Puradyn Filter Technologies Incorporated filed with the Securities
and Exchange Commission its quarterly report on Form 10-Q
disclosing a net loss of $322,159 on $519,700 of net sales for the
three months ended June 30, 2015, compared to a net loss of
$251,517 on $772,880 of net sales for the same period during the
prior year.
For the six months ended June 30, 2015, the Company reported a net
loss of $588,142 on $1.22 million of net sales compared to a net
loss of $469,603 on $1.66 million of net sales for the same period
a year ago.
As of June 30, 2015, the Company had $1.67 million in total assets,
$13.38 million in total liabilities and a $11.71 million total
stockholders' deficit.
"We continue to address our liquidity and working capital issues
through the utilization of the borrowing agreement with the
Company's Chairman. During the quarter ended June 30, 2015 we
borrowed an additional $800,150 from him, and at June 30, 2015 we
owed our Chairman $11,374,517 which represented approximately 85%
of our total liabilities. Subsequent to June 30, 2015, he has
advanced an additional $125,025 in working capital funding. While
he has continued to fund our working capital needs and extend the
due date of the $6.1 million credit agreement, he is under no
contractual obligation to do so and there are no assurances he will
continue to make funds available to us or extend the due date of
the obligations."
Kevin G. Kroger, president and COO, noted, "Our second quarter
numbers continue to reflect the decline of crude oil prices, and
instability of the economy. However, activity in other industries
is showing stronger interest in finding new ways to reduce
operating costs and logistical issues. Several potential customers
have started evaluations of our systems with anticipation the cost
savings will provide a positive return on their investment.
"Based on our current level of activity in the different
industries, we remain positive about 2015."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/cynIjK
About Puradyn Filter
Boynton Beach, Fla.-based Puradyn Filter Technologies Incorporated
(OTC BB: PFTI) designs, manufactures and markets the puraDYN's Oil
Filtration System.
Puradyn Filter reported a net loss of $1.15 million on $3.11
million of net sales for the year ended Dec. 31, 2014, compared to
a net loss of $1.33 million on $2.53 million of net sales for the
year ended Dec. 31, 2013.
Liggett, Vogt & Webb, P.A., in Boynton Beach, Florida, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2014. The independent
auditors noted that the Company has incurred net losses each year
since inception and has relied on the sale of its stock and loans
from third parties and related parties to fund its operations.
These conditions raise substantial doubt about the Company's
ability to continue as a going concern.
QUICK CHANGE ARTIST: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: Quick Change Artist, LLC
1210 Gateway Road #7
Lake Park, FL 33403
Case No.: 15-25377
Chapter 11 Petition Date: August 26, 2015
Court: United States Bankruptcy Court
Southern District of Florida (West Palm Beach)
Judge: Hon. Paul G. Hyman, Jr.
Debtor's Counsel: Chance McClain, Esq.
LAW OFFICES OF CHANCE MCCLAIN
12894 N. Normandy Way
West Palm Beach, FL 33410
Tel: 561 818 9811
Email: chancemcclainaal@onesole.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Dominique Barteet, president.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/flsb15-25377.pdf
RADIOSHACK CORP: Court Approves Settlement with ABL Agent
---------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware, at
the behest of the Official Committee of Unsecured Creditors in the
Chapter 11 cases of RadioShack Corporation, approved a settlement
with Cantor Fitzgerald Securities in its capacity as DIP
administrative agent and as Pre-Petition ABL administrative agent,
and the First Out Lenders.
Under the settlement, the ABL Agent and the First Out Lenders will
be entitled to reimbursement from amounts in both Reserves to the
extent of any Liabilities imposed on or incurred by the ABL Agent
and the First Out Lenders related to, arising out of or as a result
of the SCP Adversary Proceeding.
BankruptcyData reported that "under the order, dated April 1, 2015,
approving the sale of certain of the Debtors' assets to General
Wireless and Sprint Solutions...the Debtors were required to
provide to the ABL Agent two cash collateral reserves: (1) an
expense reserve of $5 million to reimburse the reasonable fees and
expenses of the First Out Lenders and the ABL Agent that would
otherwise be payable under Section 9.5 of the DIP Credit Agreement,
including amounts incurred in connection with the adversary
proceeding initiated by SCP, as agent for the SCP Lenders; and (2)
an indemnification reserve of $7 million to reimburse valid
indemnification claims of the First Out Lenders and the ABL Agent,
as provided in the DIP Credit Agreement, including without
limitation Sections 9.6 and 8.10(b) (iii) of the DIP Credit
Agreement." On April 30, 2015, the Committee delivered to the ABL
Agent and the First Out Lenders the Notice of Potential Challenges
Against First Out ABL Lenders (the Committee's Notice of Potential
Claims), as it was required to under paragraph 44 of the Sale
Order. Among the potential claims and challenges listed are claims
sounding in fraudulent conveyance (under both state and federal
law), aiding and abetting breach of fiduciary duty, and
restitution/unjust enrichment, as well as challenges to the First
Out Lenders' collateral package, allocation of unencumbered estate
assets, and allow ability of the First Out Lenders' indemnification
and reimbursement claims.
Salus Capital Partners, LLC, Wells Fargo Bank, N.A., Standard
General L.P., objected to the settlement. In response to the
objections, the Committee revised the form of order granting the
Settlement Motion and approving the settlement agreement.
The Revised Form of Order provides the following additional
language:
". . . notwithstanding anything in this Order or the Settlement
Agreement to the contrary, any and all claims and rights (other
than Barred Claims) of Wells Fargo (solely in its capacity as a
Non-Settling Party) relating to the Debtors or their estates
(including but not limited to any claims for indemnification or
expense reimbursement or rights to object to approval of the
Disclosure Statement or confirmation of the Plan), are fully
preserved, and shall not be deemed to have been released, waived or
otherwise affected or impaired; provided that any such claims and
rights that are Barred Claims shall be subject to the provisions of
the Settlement and Bar Order;"
". . . without limiting the Bar Order and the releases in favor
of the Lender Releasees hereunder and in the Settlement Agreement,
notwithstanding anything contained in this Order, the Settlement or
the Settlement Agreement, the terms of this Order, the Settlement
and the Settlement Agreement shall not otherwise amend, modify,
waive, release or otherwise impair (i) any claims or rights that
the Agent exercises on behalf or on the instructions (to the extent
any Non-Settling Party (as defined in the Settlement Agreement) has
authority to instruct the Agent) of any Non-Settling Party pursuant
to the terms of the Pre-Petition ABL Credit Agreement, the DIP
Credit Agreement or the Loan Documents (as defined in either the
Pre-Petition ABL Credit Agreement or the DIP Credit Agreement) or
(ii) any defenses, counterclaims or cross claims against the Agent
(solely in such capacity) or any Non-Settling Party with respect to
such claims and rights referenced in clause (i);"
". . . nothing in this Order or the Settlement Agreement shall
adversely affect, impair, prejudice or otherwise adversely impact
the rights, claims, defenses, and recoveries, if any, of the SCP
Agent and the SCP Lenders or the ABL Agent, the First Out Lenders
or any other defendant, in each case in connection with the pending
SCP Adversary Proceeding; provided, however, that if the SCP Agent
and/or the SCP Lenders seek to further amend the Salus Complaint,
such amended complaint shall not assert new claims or causes of
action that are Barred Claims;"
The Official Committee of Unsecured Creditors is represented by:
Christopher M. Samis, Esq.
L. Katherine Good, Esq.
WHITEFORD, TAYLOR & PRESTON LLC
The Renaissance Centre, Suite 500
405 North King Street
Wilmington, Delaware 19801
Tel: (302) 353-4144
Email: csamis@wtplaw.com
kgood@wtplaw.com
--- and ---
Susheel Kirpalani, Esq.
Robert Loigman, Esq.
Kate Scherling, Esq.
QUINN EMANUEL URQUHART & SULLIVAN, LLP
51 Madison Avenue
New York, New York 10010
Tel: (212) 849-7000
Fax: (212) 849-7100 Email:
susheelkirpalani@quinnemanuel.com
robertloigman@quinnemanuel.com
katescherling@quinnemanuel.com
About RadioShack Corporation
Headquartered in Fort Worth, Texas, RadioShack is a retailer of
mobile technology products and services, as well as products
related to personal and home technology and power supply needs.
RadioShack's retail network includes more than 4,300
company-operated stores in the United States, 270 company-operated
stores in Mexico, and approximately 1,000 dealer and other outlets
worldwide.
RadioShack Corporation and affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 15-10197) on Feb. 5, 2015. Judge
Kevin J. Carey presides over the case.
David G. Heiman, Esq., Greg M. Gordon, Esq., Amanda M. Suzuki,
Esq., Jonathan M. Fisher, Esq., Thomas A. Howley, Esq., and Paul
M.
Green, Esq., at Jones Day serve as the Debtors' bankruptcy
counsel.
David M. Fournier, Esq., Evelyn J. Meltzer, Esq., and John H.
Schanne, II, Esq., at Pepper Hamilton LLP serve as co-counsel.
Carlin Adrianopoli at FTI Consulting, Inc., is the Debtors'
restructuring advisor. Maeva Group, LLC, is the Debtors'
Turnaround
advisor. Lazard Freres & Co. LLC is the Debtors' investment
banker.
A&G Realty Partners is the Debtors' real estate advisor. Prime
Clerk is the Debtors' claims and noticing agent.
In their Petitions, the Debtors disclosed total assets of $1.2
billion, versus total debts of $1.3 billion.
Quinn Emanuel Urquhart & Sullivan, LLP and Cooley LLP represent
the
Official Committee of Unsecured Creditors as co-counsel. Houlihan
Lokey Capital, Inc., serves as financial advisor and investment
banker. The bankruptcy case is assigned to Judge Brendan L.
Shannon.
REICHHOLD HOLDINGS: Seeks $1.2 Mil. Sale of Real Estate to Steiner
------------------------------------------------------------------
Reichhold Holdings US, Inc., and its affiliated debtors ask the
U.S. Bankruptcy Court for the District of Delaware to approve the
sale of its real property located at 144 Fork Branch Road,
Cheswold, Delaware to Michael Steiner for $1.2 million, free and
clear of liens, claims and encumbrances.
Marion M. Quirk, Esq., at Cole Schotz P.C., in Wilmington,
Delaware, relates that the Property is one of the Debtors' various
nonresidential real properties which was excluded from the
Court-approved sale of substantially all of the Debtors' assets to
Reichhold, LLC. She adds that at the time of the sale to
Reichhold, LLC, the Property was no longer occupied or utilized for
the Debtors' operations. She says that following the sale of the
Debtors' operating assets to Reichhold, LLC, all liens on the
Property were satisfied. Ms. Quirk tells the Court that the Debtors
are proceeding in good faith and will make a showing at the Sale
Hearing that Steiner has acted in good faith.
The sale motion was scheduled for hearing on Aug. 27, 2015.
Reichhold's attorneys can be reached at:
Norman L. Pernick, Esq.
Marion M. Quirk, Esq.
David W. Giattino, Esq.
COLE SCHOTZ P.C.
500 Delaware Avenue, Suite 1410
Wilmington, DE 19801
Telephone: (302)652-3131
Facsimile: (302)652-3117
E-mail: npernick@coleschotz.com
mquirk@coleschotz.com
dgiattino@coleschotz.com
- and -
Gerald H. Gline, Esq.
Kenneth L. Baum, Esq.
COLE SCHOTZ P.C.
25 Main Street
Hackensack, NJ 07602-0800
Telephone: (201)489-3000
Facsimile: (201)489-1536
E-mail: ggline@coleschotz.com
kbaum@coleschotz.com
About Reichhold Holdings
Founded in 1927, Reichhold, with its world headquarters and
technology center in Durham, North Carolina, is one of the world's
largest manufacturer of unsaturated polyester resins and a leading
supplier of coating resins for the industrial, transportation,
building and construction, marine, consumer and graphic arts
markets. Reichhold -- http://www.Reichhold.com/-- has
manufacturing operations throughout North America, Latin America,
the Middle East, Europe and Asia.
As of June 30, 2014, the Reichhold companies had consolidated
assets of $538 million and liabilities of $631 million.
Reichhold Holdings US, Inc., Reichhold, Inc., and two U.S.
affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case
No. 14-12237) on Sept. 30, 2014.
Cole, Schotz, Meisel, Forman & Leonard, P.A. (legal advisor) and
CDG Group LLC (financial advisor) are representing Reichhold, Inc.
Latham & Watkins LLP (legal advisor) and Moelis & Company
(investment banker) are serving Reichhold Industries, Inc. Logan
& Company is the company's claims and noticing agent. The cases
are assigned to Judge Mary F. Walrath.
The U.S. Trustee for Region 3 appointed seven creditors of
Reichhold Holdings US, Inc. to serve on the official committee of
unsecured creditors.
On April 1, 2015, the U.S. Trustee named three non-union retirees
of Debtors to serve as the official Non-Union Retiree Committee.
Each of the Retiree Committee members is receiving retiree welfare
benefits from one or more of the Debtors.
On April 2, 2015, Reichhold disclosed that the purchase of most of
the assets of the U.S. business was completed. This transaction,
approved by the Delaware Bankruptcy Court on January 12, 2015,
allows Reichhold's U.S. businesses to successfully emerge from
bankruptcy and re-join the rest of the global Reichhold
organization. Concurrent with this purchase, Reichhold completed
a debt-for-equity exchange with a group of investors led by Black
Diamond Capital Management LLC and including J.P. Morgan
Investment Management, Inc., Third Avenue Management LLC, and
Simplon Partners LP.
REICHHOLD HOLDINGS: Textron Withdraws Limited Objection to Sale
---------------------------------------------------------------
Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District
of Delaware approved Reichhold Holdings Us, Inc., et al.'s sale of
these real properties to their respective buyers: (a)46 Albert
Avenue, Newark, New Jersey, to Albert and Cornelia LLC; (b) 45-5
Cornelia Street, Newark, New Jersey, to Albert and Cornelia LLC;
(c) 3101 South California Avenue, Chicago, Illinois, to Pioneer
Environmental Services, LLC; and (d) 400 Doremus Avenue, Newark,
New Jersey, to Value Industry, Inc.
Judge Walrath approved the sale of the real properties free and
clear of liens, claims and encumbrances, and authorized the Debtors
to execute, assume, assign and deliver all contracts, agreements,
assignments, conveyances, or other documents to take such other
action that may be necessary to fulfill the terms and provisions of
their Agreement of Sale and letter agreement, with each respective
Buyer. With regard to the sale of the Doremus property, Judge
Walrath directed the Debtors to assume and assign the Deed Notice
Agreement dated January 22, 2010 between Reichhold, Inc. and
Textron to the Purchaser. Judge Walrath relates that such
assumption and assignment is conditioned on Textron's withdrawal of
its Limited Objection to the Motion and closing of the sale of the
Property to the Purchaser. She says that upon such assumption and
assignment, the Debtors shall be relieved of any further liability
with respect to the Deed Notice Agreement.
Textron, Inc. had filed its limited objection to the Debtors'
motion. Its objection was limited to the fact that the terms of
the proposed Sale did not include an unequivocal assumption of the
Deed Notice Agreement by the prospective purchaser. The Deed
Notice Agreement set forth the parties' respective obligations
including the obligations of the current and future owners of the
Doremus Property to consent to and cooperate with Textron with
respect to the recording of a Deed Notice and installation and
maintenance of engineering controls as part of a restricted use
remedial action for the Doremus Property for the Textron ISRA
Case.
Textron is represented by:
Kathleen M. Miller, Esq.
SMITH, KATZENSTEIN & JENKINS LLP
Brandywine Building
100 West Street, Suite 1501
Wilmington, DE 19801
Telephone: (302)652-8400
E-mail: kmiller@skjlaw.com
About Reichhold Holdings US
Founded in 1927, Reichhold, with its world headquarters and
technology center in Durham, North Carolina, is one of the world's
largest manufacturer of unsaturated polyester resins and a leading
supplier of coating resins for the industrial, transportation,
building and construction, marine, consumer and graphic arts
markets. Reichhold -- http://www.Reichhold.com/-- has
manufacturing operations throughout North America, Latin America,
the Middle East, Europe and Asia.
As of June 30, 2014, the Reichhold companies had consolidated
assets of $538 million and liabilities of $631 million.
Reichhold Holdings US, Inc., Reichhold, Inc., and two U.S.
affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case
No. 14-12237) on Sept. 30, 2014.
Cole, Schotz, Meisel, Forman & Leonard, P.A. (legal advisor) and
CDG Group LLC (financial advisor) are representing Reichhold, Inc.
Latham & Watkins LLP (legal advisor) and Moelis & Company
(investment banker) are serving Reichhold Industries, Inc. Logan
& Company is the company's claims and noticing agent. The cases
are assigned to Judge Mary F. Walrath.
The U.S. Trustee for Region 3 appointed seven creditors of
Reichhold Holdings US, Inc. to serve on the official committee of
unsecured creditors.
On April 1, 2015, the U.S. Trustee named three non-union retirees
of Debtors to serve as the official Non-Union Retiree Committee.
Each of the Retiree Committee members is receiving retiree welfare
benefits from one or more of the Debtors.
On April 2, 2015, Reichhold disclosed that the purchase of most of
the assets of the U.S. business was completed. This transaction,
approved by the Delaware Bankruptcy Court on January 12, 2015,
allows Reichhold's U.S. businesses to successfully emerge from
bankruptcy and re-join the rest of the global Reichhold
organization. Concurrent with this purchase, Reichhold completed
a debt-for-equity exchange with a group of investors led by Black
Diamond Capital Management LLC and including J.P. Morgan
Investment Management, Inc., Third Avenue Management LLC, and
Simplon Partners LP.
RELATIVITY MEDIA: Stung by Request to Delay Key Hearing
-------------------------------------------------------
Tom Corrigan, writing for The Wall Street Journal, reported that an
affiliate of Paul Singer's Elliott Management has asked a
bankruptcy judge to push back a hearing on Relativity Media LLC's
proposed sale by a few days, saying anything less would amount to a
"trial by ambush."
According to the report, in court papers filed Aug. 24 with the
U.S. Bankruptcy Court in Manhattan, the affiliate, Manchester
Securities Corp., said Relativity waited until the 11th hour to
foist new and conflicting information on its creditors, violating
"basic notions of due process and fundamental fairness."
Manchester asked Judge Michael Wiles to delay a key hearing
scheduled for Aug. 25 until Friday, saying the postponement would
have no negative consequences for Relativity or other creditors,
the Journal related.
The new information disclosed on Aug. 21 -- some of it under seal
-- includes essential facts and figures related to the company's
plan to hand its assets to a group of lenders, some of whom have
also agreed to provide $45 million in financing to fund
Relativity's operations while in bankruptcy, the Journal said.
About Relativity Fashion
Based in New York, Relativity Fashion LLC dba M3 Relativity --
http://relativitymedia.com/-- is a privately-held entertainment
company with an integrated and diversified global media platform
that provides, among other things, film and television financing,
production and distribution. Relativity was founded in 2004 by
Ryan
Kavanaugh as a films late cofinancier partnering with major
studios
such as Sony and Universal. In addition, the Company engages in
content production and distribution, including movies, television,
fashion, sports, digital and music.
The Company and its affiliates filed for Chapter 11 protection on
July 30, 2015 (Bankr. S.D. N.Y. Lead case No. 15-11989). Judge
Michael E. Wiles presides over the Debtors' Chapter 11 cases.
Craig A. Wolfe, Esq., Malani J. Cademartori, Esq., and Blanka K.
Wolfe, Esq., at SHEPPARD MULLIN RICHTER & HAMPTON LLP, and Richard
L. Wynne, Esq., Bennett L. Spiegel, Esq., and Lori Sinanyan, Esq.,
at JONES DAY, represent the Debtors in the bankruptcy cases.
The Debtors reported total assets of $559.9 million, and total
debts: $1.1 billion as of Dec. 31, 2014.
REPUBLIC AIRWAYS: Pilots Nix Vote on Contract Offer
---------------------------------------------------
Michael Sasso, writing for Bloomberg News, reported that Republic
Airways Holdings Inc.'s future was in doubt after the local pilots'
union recommended against allowing members to vote on the carrier's
contract offer.
According to the Bloomberg report, the leadership of the Teamsters'
local objects to language in the contract preventing it from
encouraging members from taking positions at other regional
airlines, Local 357 President Jim Clark said. The national union
could override the local's decision and present it to members, he
said, the report cited.
The lack of an agreement is one reason behind a pilot shortage that
Republic has warned threatens the company's future, Bloomberg said.
The alternative to an accord is court-supervised restructuring,
said Matt Koscal, vice president of human resources for the
carrier, which makes regional flights for larger airlines, the
report related.
As previously reported by The Troubled Company Reporter, Republic,
which flies on behalf of major U.S. airlines, made a final contract
offer to its pilots after eight years of negotiations in a bid to
avoid a chapter 11 restructuring largely caused by a shortage of
pilots. Republic has been the highest-profile victim so far of a
long-anticipated pilot shortage in the U.S. airline industry,
partly fueled by new regulations that increase the requirements to
become a commercial airline pilot.
Republic Airways Holdings Inc. is the holding company of Chautauqua
Airlines, Inc., Shuttle America Corporation and Republic Airline
Inc. The Republic-owned airlines offer scheduled passenger
services on 1,253 flights daily to 105 cities in the U.S. and
Canada.
REPUBLIC AIRWAYS: Teamsters Local 357 Snubs Contract Offer
----------------------------------------------------------
Michael Sasso at Bloomberg Business reports that the International
Brotherhood of Teamsters Local 357, which represents Republic
Airways Holdings Inc.'s 2,200 pilots, has recommended against
allowing members to vote on the Company's contract offer.
As reported by the Troubled Company Reporter on Aug. 24, 2015, Jack
Nicas, writing for Dow Jones' Daily Bankruptcy Review, reported
that the Company made a final contract offer to its pilots after
eight years of negotiations in a bid to avoid a Chapter 11
restructuring largely caused by a shortage of pilots.
Citing Local 357 President Jim Clark, Bloomberg Business relates
that the leadership of the Teamsters' local objects to language in
the contract preventing it from encouraging members from taking
positions at other regional airlines, but the national union could
override the local's decision and present it to members. According
to the report, Galen Munroe, spokesperson for the International
Brotherhood of Teamsters, said that a decision hasn't been made yet
on whether to overrule Local 357.
Bloomberg Business states that Matt Koscal, vice president of human
resources for the Company, called Local 357's decision an attempt
to undermine the Company's efforts to reach goals that are good for
both the pilots and the airline. The report quoted Mr. Koscal as
saying, "I think their concerns are without merit and a continued
effort by this leadership team to prevent the pilots from approving
this contract and improving their pay and quality of life."
CH-Aviation relates that the Company presented last week what it
termed its "last, best and final offer" to Local 357. According to
Bloomberg, the Company offered a 74% pay increase for new first
officers, and a smaller raise for more-senior aviators.
CH-Aviation adds that the agreement would give pilots a
ratification bonus of $1,000 to $11,000, based on length of
service, as well as another bonus on the one-year anniversary of
ratification.
Bloomberg Business recalls that the Company hired Seabury Group LLC
in July to help stabilize its operations and finances, and has been
in talks with American Airlines Group Inc., Delta Air Lines Inc.
and United Continental Holdings Inc. to lessen regional flights the
rest of 2015 and possibly into 2016. Helane Becker, a Cowen & Co.
analyst, said in an Aug. 12 report that bankruptcy could be the
only option if management is not able to resolve both of the
negotiations positively.
Republic Airways Holdings Inc. is the holding company of
Chautauqua Airlines, Inc., Shuttle America Corporation and Republic
Airline Inc. The Republic-owned airlines offer scheduled passenger
services on 1,253 flights daily to 105 cities in the U.S. and
Canada.
RESPONSE GENETICS: Meeting of Creditors Set for Sept. 16
--------------------------------------------------------
The meeting of creditors of Response Genetics Inc. is set to be
held on Sept. 16, 2015, at 10:00 a.m. (prevailing Eastern time),
according to a filing with the U.S. Bankruptcy Court in Delaware.
The meeting will be held at J. Caleb Boggs Federal Courthouse, Room
2112, 844 King Street, in Wilmington, Delaware.
The court overseeing the bankruptcy case of a company schedules the
meeting of creditors usually about 30 days after the bankruptcy
petition is filed. The meeting is called the "341 meeting" after
the section of the Bankruptcy Code that requires it.
A representative of the company is required to appear at the
meeting and answer questions under oath. The meeting is presided
over by the U.S. trustee, the Justice Department's bankruptcy
watchdog.
About Response Genetics
Los Angeles, California-based Response Genetics, Inc. (otcqb:RGDX)
-- http://www.responsegenetics.com-- is a CLIA-certified clinical
laboratory focused on the development and sale of molecular
diagnostic testing services for cancer. The Company's technologies
enable extraction and analysis of genetic information derived from
tumor cells stored as formalin-fixed and paraffin-embedded
specimens. The Company's principal customers include oncologists
and pathologists. In addition to diagnostic testing services, the
Company generates revenue from the sale of its proprietary
analytical pharmacogenomic testing services of clinical trial
specimens to the pharmaceutical industry.
Response Genetics, fdba Bio Type, Inc., filed for Chapter 11
bankruptcy (Bankr. D. Del. Case No. 15-11663) on Aug. 9, 2015,
represented by James E. O'Neill, Esq., at Pachulski Stang Ziehl &
Jones LLP. Canaccord Genuity, Inc., serves as its investment
banker; and Rust Consulting Omni Bankruptcy acts as its claims and
noticing agent.
The Company disclosed total assets of $10.7 million and total debts
of $15.7 million. The petition was signed by Thomas Bologna,
chairman and chief executive officer.
* * *
Response Genetics has executed a "stalking horse" agreement to sell
all of its business assets to Cancer Genetics, Inc. for
$14,000,000, comprised of a 50/50 split in value of cash and the
common stock of CGI.
CGI is represented by Kramer Levin Naftalis & Frankel LLP's James
A. Grayer, Esq.
RESPONSE GENETICS: U.S. Trustee Appoints Creditors' Committee
-------------------------------------------------------------
The U.S. trustee overseeing the Chapter 11 case of Response
Genetics Inc. appointed three creditors of the company to serve on
the official committee of unsecured creditors.
The unsecured creditors are:
(1) Xifin, Inc.
Attn: James C. Malone
12225 El Camino Real
San Diego, CA 92130
Phone: 858-436-1139
Fax: 858-793-5701
(2) University of Southern California
Office of General Counsel
Attn: Monica Y. Kim
3551 Trousdale Pkwy., Adm 352
Los Angeles, CA 90089
Phone: 213-740-7922
Fax: 213-740-3249
(3) Sincerus Solutions Inc.
Attn: Leah Serrano
1605 Hope St., Ste. 320
South Pasadena, CA 91030
Phone: 714-986-5529
Fax: 888-505-8603
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 Response Genetics
Los Angeles, California-based Response Genetics, Inc. (otcqb:RGDX)
-- http://www.responsegenetics.com-- is a CLIA-certified clinical
laboratory focused on the development and sale of molecular
diagnostic testing services for cancer. The Company's technologies
enable extraction and analysis of genetic information derived from
tumor cells stored as formalin-fixed and paraffin-embedded
specimens. The Company's principal customers include oncologists
and pathologists. In addition to diagnostic testing services, the
Company generates revenue from the sale of its proprietary
analytical pharmacogenomic testing services of clinical trial
specimens to the pharmaceutical industry.
Response Genetics, fdba Bio Type, Inc., filed for Chapter 11
bankruptcy (Bankr. D. Del. Case No. 15-11663) on Aug. 9, 2015,
represented by James E. O'Neill, Esq., at Pachulski Stang Ziehl &
Jones LLP. Canaccord Genuity, Inc., serves as its investment
banker; and Rust Consulting Omni Bankruptcy acts as its claims and
noticing agent.
The Company disclosed total assets of $10.7 million and total debts
of $15.7 million. The petition was signed by Thomas Bologna,
chairman and chief executive officer.
* * *
Response Genetics has executed a "stalking horse" agreement to sell
all of its business assets to Cancer Genetics, Inc. for
$14,000,000, comprised of a 50/50 split in value of cash and the
common stock of CGI.
CGI is represented by Kramer Levin Naftalis & Frankel LLP's James
A. Grayer, Esq.
ROADRUNNER ENTERPRISES: Court OKs Waverly Property Sale for $75K
----------------------------------------------------------------
Roadrunner Enterprises, Inc., sought for and obtained from Judge
Kevin R. Huennekens of the U.S. Bankruptcy Court for the Eastern
District of Virginia, Richmond Division, authorization for the sale
of two parcels located at 906-916 W. Main Street, Waverly, Virginia
to Sondra Parham for $75,000.
David K. Spiro, Esq., at Hirschler Fleischer, in Richmond,
Virginia, tells the Court that the sale of the Property represents
the Debtor's best opportunity under the circumstances to maximize
the value of the Property at a minimal cost. He further tells the
Court that the proposed sale will reduce the aggregate debt owed to
one of the Debtor’s secured creditors. Mr. Spiro relates that
although the Purchase Price is less than the value for the Real
Property, which is $100,000, the Debtor, in the exercise of its
business judgment, believes that the Purchase Price is fair and
reasonable under the circumstances.
Roadrunner Enterprises is represented by:
David K. Spiro, Esq.
Rachel A. Greenleaf, Esq.
HIRSCHLER FLEISCHER, P.C.
Post Office Box 500
Richmond, VA 23218-0500
Telephone: (804)771-9500
Facsimile: (804)644-0957
E-mail: dspiro@hf-law.com
rgreenleaf@hf-law.com
About Roadrunner Enterprises
Headquartered in Chesterfield County, Virginia, Roadrunner
Enterprises Inc. owns the Roadrunner Campground and more than 70
rental properties, lots, and other real estate interests.
Roadrunner Enterprises filed for Chapter 11 bankruptcy protection
(Bank. E.D. Va. Case No. 15-30604) on Feb. 6, 2015. The petition
was signed by Carl Adenauer, president. David K. Spiro, Esq., at
Hirschler Fleischer, P.C., serves as the Debtor's counsel. Judge
Kevin R. Huennekens presides over the case. The Debtor estimated
assets and liabilities of at least $10 million.
SABINE OIL: Committee Seeks Green Light to Investigate
------------------------------------------------------
The Official Committee of Unsecured Creditors of Sabine Oil & Gas
Corporation, et al., asks the U.S. Bankruptcy Court, pursuant to
Rule 2004 of the Federal Rules of
Bankruptcy Procedure, for authority to conduct discovery relating
to, inter alia:
(a) potential claims and causes of action arising from or
related to (i) a December 2014 business combination of
privately-held Sabine Oil & Gas LLC -- Legacy Sabine Parent -- and
publicly traded Forest Oil Corp. -- Legacy Forest Parent -- into a
new enterprise, the Reconstituted Sabine/Forest; and (ii) the
financing transactions and amendments of pre-existing financing
documents occurring at that time;
(b) other claims that may be asserted by the Committee during
the Challenge Period as defined in the Court order authorizing the
Debtors' use of cash collateral; and
(c) any other potential claims that are necessary or desirable
for the Committee to investigate in conjunction with its
investigation of either the claims relating to the Combination or
the other Challenge Period-governed claims.
According to the Committee, the issues requiring investigation
include, without limitation:
-- whether the Combination, in whole or in part, was a
constructive or intentional fraudulent conveyance with respect to
one or more estates (including the quality and quantity of proof of
relevant parties' intent to hinder, delay or defraud creditors);
-- whether there are lender liability claims against the
pre-petition lenders and/or lenders under an $850 million of
unsecured bridge financing from a syndicate of lenders that
included Wells Fargo Bank, N.A. and certain of its affiliates, and
Barclays Bank PLC. Wells Fargo, Barclays, and five other lenders
(Capital One, National Association, Citibank N.A., Bank of America,
N.A., UBS AG, Stamford Branch, and Natixis, New York Branch) were
also part of a so-called Post-Combination RBL lending syndicate
that agreed contemporaneously to fund a post-Combination first lien
reserve-based lending facility or RBL;
-- whether there are claims against other third parties that
should be asserted concurrently with claims relating to the
Combination;
-- the impact of the potential harm of the Combination and
financings on the Debtors' estates and their unsecured creditors;
-- constructive trust and other theories that have been raised
with respect to the $253 million of cash on hand at the Petition
Date;
-- avoidance actions against the secured creditors including a
review of any value or other defenses that the secured creditors
may assert; and
-- the extent to which the secured lenders were granted and
perfected their security interests in the Debtors' assets,
including the Debtors' oil and gas
wells.
The Committee noted that the Reconstituted Sabine/Forest appears to
have become obligated for all of the Legacy Companies' financial
debt obligations (either through the issuance of new guarantees or
assumption agreements) and the new Post-Combination RBL. The
subsidiaries of Legacy Sabine became obligated for all Legacy
Forest's
financial debt (either through the issuance of new guarantees or
the incurrence of new debt used to repay or otherwise satisfy
Legacy Forest obligations).
As of the Petition Date, all of the Debtors were obligated on:
(i) $927 million outstanding under the Post-Combination RBL,
(ii) $700 million outstanding under the Second Lien Loan,
(iii) $1.150 billion outstanding under the Unsecured Notes, and
(iv) unpaid trade and other non-money-borrowed obligations.
Among others, the Committee pointed out that less than three months
after the Combination, the Reconstituted Sabine/Forest reported
that it had substantial liquidity concerns and was evaluating a
potential chapter 11 filing.
On the day of the bankruptcy filing, the Committee related that the
Reconstituted Sabine/Forest filed an adversary proceeding
complaint, alleging a single claim
against a single defendant, second lien loan agent Wilmington
Trust, N.A., the Second Lien Agent, for constructive fraudulent
transfer in the granting of liens to secure the Second Lien Loan
debt. The Second Lien Action seeks only to avoid the liens granted
on Legacy Forest's assets to secure the Second Lien Loan. The
Second Lien Action (i) does not include any cause of action seeking
avoidance of obligations owed to the Second Lien Agent and lenders,
or any avoidance at all from the PostCombination RBL agent and
lenders, (ii) does not include any allegation of a transfer of
liens, or incurrence of obligations, with intent to hinder, delay
or defraud creditors, (iii) does not assert any causes of action on
behalf of any subsidiary debtors, and (iv) does not assert any
nonavoidance theories.
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.
The U.S. Trustee for Region 2 has appointed five creditors to serve
on the official committee of unsecured creditors. The Committee is
represented by Mark R. Somerstein, Esq., Keith H. Wofford, Esq.,
and D. Ross Martin, Esq., at Ropes & Gray LLP as their counsel.
The Committee is also hiring Blackstone Advisory Partners L.P. as
investment banker; and Berkeley Research Group, LLC as financial
advisor.
SABINE OIL: Creditors Committee Hires Lawyers, Advisors
-------------------------------------------------------
A team of lawyers from Ropes & Gray LLP is representing the the
Official Committee of Unsecured Creditors of Sabine Oil & Gas
Corporation, et al., according to court filings. The Ropes & Gray
team are:
Mark R. Somerstein, Esq.
Keith H. Wofford, Esq.
D. Ross Martin, Esq.
ROPES & GRAY LLP
1211 Avenue of the Americas
New York, NY 10036-8704
Telephone: (212) 596-9000
Facsimile: (212) 596-9090
E-mail: mark.somerstein@ropesgray.com
keith.wofford@ropesgray.com
ross.martin@ropesgray.com
On Monday, the Committee filed papers with the Bankruptcy Court to
seek approval of Ropes & Gray LLP as their counsel, nunc pro tunc
to July 28, 2015. The Committee is also hiring Blackstone Advisory
Partners L.P. as investment banker; and Berkeley Research Group,
LLC as financial advisor.
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.
The U.S. Trustee for Region 2 has appointed five creditors to serve
on the official committee of unsecured creditors.
SABINE OIL: Proposes Performance and Fixed Bonus Programs
---------------------------------------------------------
Sabine Oil & Gas will appear before the Bankruptcy Court on Sept.
10 to seek approval of a performance award program and a fixed
bonus award program.
According to a report by BankruptcyData, the Company explains, "By
this Motion, the Debtors seek approval of two Employee Incentive
Programs - the Performance Award Program and the Fixed Bonus Award
Program - which are continuations of the Debtors' historical
practices, consistent with industry standards, and necessary for
the Debtors to provide market-based compensation to their
employees. The Performance Award Program provides nine members of
the Debtors' management team with the opportunity to earn quarterly
incentive-based cash awards if the Debtors achieve pre-established
financial and operational milestones. The Fixed Bonus Award Program
provides for the payment of quarterly fixed cash bonus awards to
the Debtors' 145 remaining employees. Both of these programs are in
the best interests of the Debtors' 154 employees, the Debtors'
estates, and all stakeholders. . . . The Debtors have an immediate
and compelling need to provide competitive compensation packages
for their employees. Recruiters are actively targeting certain
members of the Debtors' management team and other employees."
Objections to the request are due by September 3.
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.
The U.S. Trustee for Region 2 has appointed five creditors to serve
on the official committee of unsecured creditors.
SABINE OIL: UST Says Appendix B Guidelines Apply in Case
--------------------------------------------------------
William K. Harrington, the United States Trustee for Region 2, said
in a bankruptcy court filing that based on the information reported
in the Chapter 11 petitions of Sabine Oil & Gas Corp. and its
affiliated debtors, their cases involve more than $50 million in
assets and $50 million in liabilities, and are not a single asset
real estate case. As a result, the U.S. Trustee will review
attorney fee applications in this case in accordance with the
Appendix B of the Guidelines for Reviewing Applications for
Compensation and Reimbursement of Expenses.
The U.S. Trustee said it has consulted with Kirkland & Ellis, LLP,
counsel for the Debtors, and Ropes & Gray, LLP, counsel for the
Official Committee of Unsecured
Creditors, regarding the Appendix B Guidelines. As stated in their
respective retention applications, each of these firms has
represented that it intends to make a reasonable effort to comply
with the U.S. Trustee's Appendix B Guidelines. It is anticipated
that all other attorneys retained in the case will comply with the
U.S. Trustee.
Among other provisions, the Appendix B Guidelines direct the U.S.
Trustee to request that attorneys file disclosures and adopt
practices that will better enable the U.S. Trustee, the court, and
other parties to ascertain whether those attorneys have met their
evidentiary burden of establishing their entitlement to fees under
11 U.S.C. Section 330.
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.
The U.S. Trustee for Region 2 has appointed five creditors to serve
on the official committee of unsecured creditors.
SABLE NATURAL: Incurs $669,000 Net Loss in Second Quarter
---------------------------------------------------------
Sable Natural Resources Corporation filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $669,139 on $270,284 of total revenues for the three
months ended June 30, 2015, compared to a net loss of $163,982 on
$364,604 of total revenues for the same period a year ago.
For the six months ended June 30, 2015, the Company reported a net
loss of $2.7 million on $531,434 of total revenues compared to a
net loss of $605,209 on $441,071 of total revenues for the same
period during the prior year.
As of June 30, 2015, the Company had $15.5 million in total assets,
$20.5 million in total liabilities, $1.3 million in preferred
stock, series A convertible, and a total stockholders' deficit of
$6.4 million.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/geQ1gp
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.
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.
SALON MEDIA: Incurs $644,000 Net Loss in Fiscal First Quarter
-------------------------------------------------------------
Salon Media Group, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $644,000 on $1.69 million of net revenues for the three months
ended June 30, 2015, compared to a net loss of $886,000 on $1.24
million of net revenues for the same period during the prior year.
As of June 30, 2015, the Company had $2.22 million in total assets,
$9.37 million in total liabilities and a $7.15 million total
stockholders' deficit.
"The media landscape is dramatically shifting as audience demand
for on-the-go yet immersive content grows," said Cynthia Jeffers,
CEO of Salon Media Group. "Salon is navigating this change with an
unwavering focus on high-quality editorial content including a
newly launched editorial video program and a consistently updated
and innovative mobile experience. As a result, we are seeing an
all-time high in unique visitor traffic. Our focus on these core
principals continues to provide opportunity for future growth."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/EtDblX
About Salon Media
San Francisco, Calif.-based Salon Media Group (OTC BB: SLNM.OB)
-- http://www.Salon.com/-- is an online news and social
networking company and an Internet publishing pioneer.
Salon Media reported a net loss of $3.9 million on $4.9 million of
net revenues for the year ended March 31, 2015, compared to a net
loss of $2.2 million on $6 million of net revenues for the year
ended March 31, 2014.
Burr Pilger Mayer, Inc., in San Francisco, California, issued a
"going concern" qualification on the consolidated financial
statements for the year ended March 31, 2015, citing that the
Company has suffered recurring losses and negative cash flows from
operations and has an accumulated deficit of $122.6 million as of
March 31, 2015. These conditions raise substantial doubt about its
ability to continue as a going concern.
SAN BERNARDINO, CA: Dissolves Fire Dept., Hands Contract to County
------------------------------------------------------------------
Imran Ghori at The Press-Enterprise reports that the San Bernardino
city council approved on Monday a proposal to dissolve the city's
137-year-old Fire Department and turn over fire protection to the
county agency based in the city.
According to The Press-Enterprise, council members Rikke Van
Johnson, Virginia Marquez, Jim Mulvihill and Fred Shorett voted in
favor, while Benito Barrios, Henry Nickel and John Valdivia voted
against outsourcing the fire services. The report says that
outsourcing is a key element in the city's bankruptcy plan that was
released in May. That plan of adjustment also calls for
contracting out other functions like as garbage collection, the
report states.
The Press-Enterprise relates that the city had been paying its fire
department $28.6 million, which included 38 firefighters.
According to the report, the county agency proposed to have 41
firefighters on duty at all times, operate 11 fire stations and
cost $26.7 million annually. The county plan will save the city
$4.7 million in annual pension, health care and workers'
compensation costs, the report says, citing consultants.
The county proposal also comes with a proposed $143 annual parcel
tax that would be levied on property owners, which some residents
opposed, The Press-Enterprise reports.
The Press-Enterprise states that City Manager Allen Parker and a
group of city consultants recommended the county as the best option
for the city in terms of cost and service, over private firm
Centerra. According to the report, Mr. Parker and the city
consultants said were unsure if the firm could enter into mutual
aid with neighboring agencies and whether it could handle serving a
large city.
About San Bernardino
San Bernardino, California, filed an emergency petition for
municipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code
(Bankr. C.D. Cal. Case No. 12-28006) on Aug. 1, 2012. San
Bernardino, a city of about 210,000 residents roughly 65 miles (104
km) east of Los Angeles, estimated assets and debts of more than $1
billion in the bare-bones bankruptcy petition.
The city council voted on July 10, 2012, to file for bankruptcy.
The move lets San Bernardino bypass state-required mediation with
creditors and proceed directly to U.S. Bankruptcy Court.
The city is represented that Paul R. Glassman, Esq., at Stradling
Yocca Carlson & Rauth.
San Bernardino joined two other California cities in bankruptcy:
Stockton, an agricultural center of 292,000 east of San Francisco,
and Mammoth Lakes, a mountain resort town of 8,200 south of
Yosemite National Park.
The City was granted Chapter 9 protection on Aug. 28, 2013.
The City filed on May 14, 2015, a Plan to exit court protection.
The Plan proposes to some bondholders a penny on the dollar but
maintains pension benefits for retired city workers. The Plan
proposes to make full payments into the pension fund run by
California Public Employees' Retirement System.
SANTA FE GOLD: Files Voluntary Chapter 11 Bankruptcy Petition
-------------------------------------------------------------
Santa Fe Gold Corporation on Aug. 27 disclosed that the Company and
three of its subsidiaries filed voluntary petitions under Chapter
11 of the Bankruptcy Code in U.S. Bankruptcy Court for the District
of Delaware.
The Debtors are continuing in possession of their properties and
are managing their businesses, as debtors in possession, in
accordance with the applicable provisions of the Bankruptcy Code
and orders of the Court.
Santa Fe is being advised by the investment banking firm of
Canaccord Genuity Inc. Young, Conaway, Stargatt & Taylor LLP acts
as legal counsel to Santa Fe in this process.
About Santa Fe Gold
Headquartered in Albuquerque, New Mexico, Santa Fe Gold Corporation
acquires and develops mining properties. In January 2014, the
Company entered into a definitive merger agreement with Tyhee Gold
Corp but terminated the agreement due to Tyhee's failure to close a
qualified financing of $20 million as part of the merger.
SANTA ROSA ACADEMY: S&P Revises Rating Outlook to Positive
----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook to positive
and affirmed its 'BB' long-term rating on the California Municipal
Finance Authority's series 2012 charter school revenue bonds,
issued for Santa Rosa Academy Inc (SRA). At the same time,
Standard & Poor's assigned its 'BB' long-term rating to the
authority's series 2015 charter school revenue bonds, issued for
SRA.
"The positive outlook reflects our view of SRA's compiled
financials for fiscal 2015," said Standard & Poor's credit analyst
Robert Dobbins. "Additionally, when taking into consideration the
amount and structure of the series 2015 bonds, SRA's balance sheet,
and debt metrics in particular, are not as weak on a pro forma
basis as we anticipated," Mr. Dobbins added.
The series 2015 bonds will fund the acquisition, construction,
improvement, renovation and equipment of a 31,000 square foot,
one-story gymnasium, a baseball field with a snack bar and two
restrooms, three storage buildings, and additional parking spaces
and landscaping. The new debt will be issued as public, fixed-rate
notes on parity with outstanding series 2012 bonds.
Located in Menifee, approximately 75 miles southeast of Los
Angeles, Santa Rosa Academy is a kindergarten through 12th-grade
charter school, the charter for which was first approved in April
2005 for a period of five years. The charter was renewed in 2014
for five years and expires June 30, 2019. With the opening of the
new campus, the school consists of two separate campuses that were
consolidated into one.
SEADRILL LTD: Bank Debt Trades at 30% Off
-----------------------------------------
Participations in a syndicated loan under which Seadrill Ltd is a
borrower traded in the secondary market at 70.00
cents-on-the-dollar during the week ended Friday, August 21, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the August 25, 2015, edition of The Wall Street
Journal. This represents a decrease of 0.40 percentage points from
the previous week, The Journal relates. Seadrill Ltd pays 300 basis
points above LIBOR to borrow under the facility. The bank loan
matures on February 17, 2021. Moody's rates the loan 'Ba3' and
Standard & Poor's gave a 'BB-' rating to the loan. The loan is one
of the biggest gainers and losers among 244 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, August 21.
SEANERGY MARITIME: Inks Pact to Acquire 7 Dry Bulk Vessels
----------------------------------------------------------
Seanergy Maritime Holdings Corp. announced that it has entered into
a purchase agreement to acquire seven secondhand dry bulk vessels,
consisting of five Capesize and two Supramax vessels, for a gross
purchase price of approximately $183 million.
Upon completion of the acquisition of the vessels, the Company will
have a modern fleet of eight dry bulk carriers, consisting of six
Capesizes and two Supramaxes, with a combined cargo-carrying
capacity of approximately 1.1 million DWT and an average fleet age
of about 7.1 years. The vessels are expected to be employed in the
spot market and the Company will start earning revenue immediately
upon completion of the transaction and delivery of the vessels.
The acquisition cost of the vessels will be funded by senior
secured loans with reputable financial institutions and a private
placement by the Company's sponsor. The transaction is subject to
standard closing conditions and legal documentation and is expected
to be completed by Nov. 30, 2015. The sellers of the vessels are
entities affiliated with certain of the Company's major
shareholders. The transactions were approved by both an
independent committee of the Company's Board of Directors and the
Company's Board of Directors.
Stamatis Tsantanis, the Company's chairman and chief executive
officer, stated: "We are very pleased to announce a
transformational transaction for Seanergy that significantly
increases our fleet size from one to eight vessels, exceeding 1.1
million DWT of combined cargo-carrying capacity. We also believe
that the timing of this acquisition is optimal given the positive
long term fundamentals of the dry bulk sector and, in particular,
of the Capesize segment. Additionally, we have achieved
advantageous terms with our lenders that will enable us to
materially improve our cash flow at a time when the dry bulk
markets are still recovering. Seanergy will continue to cautiously
pursue acquisition opportunities that we believe can further
enhance value for our shareholders."
About Seanergy
Athens, Greece-based Seanergy Maritime Holdings Corp. is an
international company providing worldwide seaborne transportation
of dry bulk commodities. The Company owns and operates a fleet
of seven dry bulk vessels that consists of three Handysize, two
Supramax and two Panamax vessels. Its fleet carries a variety of
dry bulk commodities, including coal, iron ore, and grains, as
well as bauxite, phosphate, fertilizer and steel products.
Ernst & Young (Hellas) Certified Auditors-Accountants S.A., in
Athens, Greece, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31, 2014,
citing that following the disposal of the Company's entire fleet in
early 2014 in the context of its restructuring plan, the Company
was unable to generate sufficient cash flow to meet its obligations
and sustain its continuing operations that raise substantial doubt
about the Company's ability to continue as a going concern.
As of March 31, 2015, the Company had $19.8 million in total
assets, $13.3 million in total liabilities and $6.5 million in
total stockholders' equity.
The Company disclosed net income of $80.3 million on $2.01 million
of net vessel revenue for the year ended Dec. 31, 2014, compared
with net income of $10.9 million on $23.1 million of net vessel
revenue for the year ended Dec. 31, 2013.
SFX ENTERTAINMENT: Moody's Cuts Corporate Family Rating to 'Caa3'
-----------------------------------------------------------------
Moody's Investors Service downgraded SFX Entertainment, Inc.'s
(SFXE) corporate family rating two notches to Caa3 from Caa1 and
revised the ratings outlook to negative from ratings under review.
At the same time, ratings for SFXE's Second Lien Senior Secured
Notes were downgraded to Caa3 from Caa1, the company's First Lien
Senior Secured Revolving Credit Facility was downgraded to B2 from
B1, and the company's speculative grade liquidity rating was
lowered to SGL-4 (weak) from SGL-3 (adequate). The rating actions
conclude a review initiated on May 27, 2015.
The following summarizes Moody's ratings and today's rating actions
for SFX:
Issuer: SFX Entertainment, Inc.
Corporate Family Rating: Downgraded to Caa3 from Caa1
Probability of Default Rating: Downgraded to Caa3-PD from Caa1-PD
First Lien Senior Secured Revolving Credit Facility: Downgraded to
B2 (LGD1) from B1 (LGD1)
Second Lien Senior Secured Notes: Downgraded to Caa3 (LGD4) from
Caa1 (LGD3)
Outlook: Changed to Negative from Ratings Under Review
RATINGS RATIONALE
SFX's Caa3 corporate family rating (CFR) stems primarily from
Moody's view that the company will require external funding and may
be unable to obtain it. With negative EBITDA and no tangible signs
of operations becoming cash flow positive, and with a limited and
depleting cash balance, Moody's thinks that the company requires
additional financing. It is not clear that alternative funding is
available.
Rating Outlook
The outlook is negative because the company has very weak liquidity
and requires external financing to continue operating.
What Could Change the Rating - Up
The Caa3 CFR might be upgraded if Moody's was to develop good
visibility and confidence in SFX's ability to generate at least
breakeven cash flow, coupled with adequate liquidity.
What Could Change the Rating - Down
SFX's Caa3 rating would be downgraded if Moody's was to expect an
imminent default.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014. Other
methodologies used include Loss Given Default for Speculative-Grade
Non-Financial Companies in the US, Canada and EMEA published in
June 2009. Please see the Credit Policy page on www.moodys.com for
a copy of these methodologies.
Corporate Profile
Headquartered in New York, New York, SFX Entertainment, Inc.,
(SFX), is a leading producer of live events and media and
entertainment content focused exclusively on electronic music
culture (EMC).
SINO CLEAN: Judge Orders Dismissal of Ex-Chair's Bankruptcy Filing
------------------------------------------------------------------
Robert W. Seiden, Esq., Court-Appointed Receiver of Sino Clean
Energy, Inc. has successfully beaten back Baowen Ren, the former
chairman of SCEI, in the Nevada bankruptcy court where the
Honorable Judge Bruce T. Beesley ruled on Aug. 26 that Ren's
unauthorized bankruptcy filing of SCEI had to be dismissed.
Mr. Ren and his Nevada lawyers filed a bankruptcy petition on July
7, 2015, seeking U.S. Bankruptcy Code protection for SCEI and
availing the company of the automatic stay after SCEI was placed
into receivership by the Nevada state court last year for failing
to report to the SEC and going dark.
Mr. Ren's timing of the bankruptcy petition was especially suspect
as it came on the heels of the Receiver's filing of a motion in the
Nevada state court asking that Mr. Ren be held in civil and
criminal contempt.
The Receiver's lawyers at Foley & Lardner successfully persuaded
the Bankruptcy Judge that the bankruptcy filing was not only
impermissible but in violation of the receivership order and was
filed based in part on false statements. Katherine Catanese, the
lead bankruptcy lawyer for the Receiver, who successfully argued
the case before the Bankruptcy Court, cited powerful facts and law
that led to today's victory for US shareholders. Ms. Catanese was
assisted by Ryan Works of McDonald Carano in Nevada, Douglas
Spelfogel of Foley & Lardner and several staff members of the
Receiver including Nathaniel Francis and Heike Vogel, Esq.
In the wake of the Aug. 26 ruling, Mr. Ren must now face the
contempt of court proceeding pending in Nevada state court for his
actions in violation of the Nevada state court order and in
defiance of the Receiver's demands. Mr. Ren is also subject to an
active criminal investigation in Hong Kong by the Commercial Crimes
Bureau for his actions in falsifying documents in Hong Kong that
was uncovered by the Receiver's auditors there.
About Sino Clean Energy Inc.
Sino Clean Energy Inc. -- http://www.sinocei.net/-- is a holding
company. The Company is a producer of clean coal heating and
energy solutions for residential, commercial and industrial uses in
the People's Republic of China. The Company produces and
distribute coals water slurry fuel (CWSF), which is a liquid fuel
that consists of fine coal particles suspended in water, mixed with
chemical additives, and is used to fuel boilers and furnaces to
generate steam and heat for both residential / commercial heating
and industrial applications. As of December 31, 2011, the Company
had total annual production capacity 1,150,000 metric tons of CWSF.
The Company uses washed coal to produce CWSF, which the Company
procures from local coal mines. The Company sells its CWSF
exclusively in the People's Republic of China to residential
complex development management companies, commercial businesses,
industrial users, and government organizations.
SOLAR POWER: Incurs $14.2 Million Net Loss in Second Quarter
------------------------------------------------------------
Solar Power, Inc. filed with the Securities and Exchange Commission
its quarterly report on Form 10-Q disclosing a net loss of $14.2
million on $43.6 million of total net sales for the three months
ended June 30, 2015, compared to a net loss of $1.3 million on $6.3
million of total net sales for the same period a year ago.
For the six months ended June 30, 2015, the Company reported a net
loss of $51.6 million on $59.8 million of total net sales compared
to a net loss of $2.1 million on $9.9 million of total net sales
for the same period during the prior year.
As of June 30, 2015, the Company had $731.2 million in total
assets, $420.3 million in total liabilities and $310.8 million in
total equity.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/0TUkjA
About Solar Power
Roseville, Cal.-based Solar Power, Inc., is a global solar
energy facility developer offering its own brand of high-
quality, low-cost distributed generation and utility-scale SEF
development services. Primarily, the Company works directly with
and for developers around the world who hold large portfolios of
SEF projects for whom it serves as an engineering, procurement and
construction contractor. The Company also performs as an
independent, turnkey SEF developer for one-off distributed
generation and utility-scale SEFs.
Solar Power reported a net loss of $5.19 million in 2014, a net
loss of $32.2 million in 2013 and a net loss of $25.4 million in
2012.
SOLYNDRA LLC: Misrepresented Facts for Loan Guarantee, Report Says
------------------------------------------------------------------
The Associated Press reported that a four-year investigation by the
Energy Department's inspector general has concluded that officials
of the solar company Solyndra misrepresented facts and omitted key
information in their efforts to get a $535 million loan guarantee
from the U.S. government.
According to the AP, Solyndra was the first company to get federal
loan guarantees under a program that was created in 2005 and
expanded by President Barack Obama's 2009 economic stimulus
package. The report, AP said, is designed to provide federal
officials with lessons learned as it proceeds to grant billions of
dollars in additional loan guarantees. The inspector general found
fault with the department, describing its due diligence work as
"less than fully effective," the AP said.
About Solyndra LLC
Founded in 2005, Solyndra LLC was a U.S. manufacturer of solar
photovoltaic solar power systems specifically designed for large
commercial and industrial rooftops and for certain shaded
agriculture applications. The Company had 968 full time employees
and 211 temporary employees. Solyndra has sold more than 500,000
of its panels since 2008 and generated cumulative sales of over
$250 million.
Fremont, California-based Solyndra and affiliate 360 Degree Solar
Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at
least the third solar company to seek court protection from
creditors since August 2011.
Judge Mary F. Walrath presides over the Debtors' cases. The
Debtors are represented by Pachulski Stang Ziehl & Jones LLP as
legal adviser. AlixPartners LLP serves as noticing claims and
balloting agent. Imperial Capital LLC serves as the company's
investment banker and financial adviser. The Debtors also tapped
former Massachusetts Governor William F. Weld, now with the law
firm McDermott Will & Emery, to represent the company in
government investigations and related litigation. BDO Consulting,
a division of BDO USA, LLP, as financial advisor and BDO Capital
Advisors, LLC, serves as investment banker for the creditors'
panel.
The Official Committee of Unsecured Creditors of Solyndra LLC has
tapped Blank Rome LLP as counsel and BDO Consulting as financial
advisors.
In October 2011, the Debtors hired Berkeley Research Group, LLC,
and designated R. Todd Neilson as Chief Restructuring Officer.
Solyndra owed secured lenders $783.8 million, including
$527.8 million to the U.S. government pursuant to a federal loan
guarantee, and held assets valued at $859 million as of the
Petition date. The U.S. Federal Financing Bank, owned by the U.S.
Treasury Department, is the Company's biggest lender.
When they filed for Chapter 11, the Debtors pursued a two-pronged
strategy to effectuate either a sale of their business to a
"turnkey" buyer who may acquire substantially all of Solyndra's
assets or, if the Debtors were unable to identify any potential
buyers, an orderly liquidation of the assets for the benefit of
their creditors.
Solyndra did not receive acceptable offers to buy the business as
a going concern. Two auctions late last year brought in a total
of $8 million. A three-day auction in February generated another
$3.8 million. An auction in June generated $1.79 million from the
sale of 7,200 lots of equipment.
Solyndra filed a liquidating plan at the end of July and scheduled
a hearing on Sept. 7 for approval of the explanatory disclosure
statement. The Plan is designed to pay 2.5% to 6% to unsecured
creditors with claims totaling as much as $120 million. Unsecured
creditors with $27 million in claims against the holding company
are projected to have a 3% dividend.
The TCR reported on Nov. 12, 2012, Bloomberg News said Solyndra
LLC gave formal notice that its reorganization plan was confirmed
and substantially consummated. The amended joint Chapter 11 plan
became effective Nov. 7, according to a court filing that fixed
Jan. 13 as the professional fee bar date and Dec. 7 as the bar for
administrative claims.
About Suntech
Suntech Power Holdings Co., Ltd. (OTC: STPFQ) produces solar
products for residential, commercial, industrial, and utility
applications. Suntech has delivered more than 25,000,000
photovoltaic panels to over a thousand customers in more than 80
countries.
Suntech Power Holdings Co., Ltd., received from the trustee of its
3 percent Convertible Notes a notice of default and acceleration
relating to Suntech's non-payment of the principal amount of
US$541 million that was due to holders of the Notes on March 15,
2013. That event of default has also triggered cross-defaults
under Suntech's other outstanding debt, including its loans from
International Finance Corporation and Chinese domestic lenders.
Suntech Power had involuntary Chapter 7 bankruptcy proceedings
initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in
White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by
holders of more than $1.5 million of defaulted securities under a
2008 $575 million indenture. The Chapter 7 Petitioners are
Trondheim Capital Partners, L.P., Michael Meixler, Longball
Holdings, LLC, and Jiangsu Liquidators, LLC. They are
represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP,
in White Plains, New York.
Suntech Power on Jan. 31, 2014, disclosed that it has signed a
Restructuring Support Agreement relating to the petition for
involuntary bankruptcy filed against it under chapter 7 of the
U.S. Bankruptcy Code. Under the RSA, the parties agreed that
chapter 7 proceedings will be dismissed following recognition of
the provisional liquidation proceeding previously filed by the
Company in the Cayman Islands under chapter 15 of the U.S.
Bankruptcy Code.
On Feb. 21, 2014, David Walker and Ian Stokoe, the joint
provisional liquidators of Suntech Power Holdings Co., Ltd.,
appointed by the Grand Court of the Cayman Islands, commenced a
Chapter 15 proceeding (Bankr. S.D.N.Y. Case No. 14-10383). The
Chapter 15 Petitioners are represented by Jennifer Taylor, Esq.,
and Diana Perez, Esq., at O'Melveny & Myers LLP. According to the
Chapter 15 petition, Suntech has more than $1 billion in both
assets and debts.
In November 2014, Judge Bernstein issued Findings of Fact and
Conclusions of Law granting the petition for Chapter 15
recognition
of Suntech Power Holdings's provisional liquidation in the Cayman
Islands as a foreign main proceeding.
SPANISH BROADCASTING: Incurs $3.5 Million Net Loss in 2nd Qtr.
--------------------------------------------------------------
Spanish Broadcasting System, Inc. filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $3.5 million on $38.1 million of net revenue for the
three months ended June 30, 2015, compared to a net loss of $3.2
million on $40.8 million of net revenue for the same period during
the prior year.
For the six months ended June 30, 2015, the Company reported a net
loss of $12.2 million on $70.2 million of net revenue compared to a
net loss of $9.3 million on $73.6 million of net revenue for the
same peirod a year ago.
As of June 30, 2015, Spanish Broadcasting had $448 million in total
assets, $534.3 million in total liabilities and a stockholders'
deficit of $86.3 million.
"During the second quarter, we continued to invest in the build-out
of our AIRE Radio Network platform, which is gaining traction with
listeners, advertisers and station partners," commented Raúl
Alarcón, Jr., Chairman and CEO. "Our radio stations also continue
to rank among the most successful platforms serving the
Spanish-speaking population in the nation's largest Hispanic media
markets. Looking ahead, we remain focused on strengthening our
content offerings, expanding our digital footprint and leveraging
our multi-media assets to further build our audience and connect
advertisers with the rapidly expanding Latino population."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/Cm5V0V
About Spanish Broadcasting
Headquartered in Coconut Grove, Florida, Spanish Broadcasting
operates 21 radio stations targeting the Hispanic audience. The
Company also owns and operates Mega TV, a television operation
with over-the-air, cable and satellite distribution and affiliates
throughout the U.S. and Puerto Rico. Its revenue for the twelve
months ended Sept. 30, 2010, was approximately $140 million.
Spanish Broadcasting reported a net loss of $20.0 million on $146
million of net revenue for the year ended Dec. 31, 2014, compared
with a net loss of $88.6 million on $154 million of net revenue in
2013.
* * *
In November 2010, Moody's Investors Service upgraded the corporate
family and probability of default ratings for Spanish Broadcasting
System, Inc., to 'Caa1' from 'Caa3' based on improved free cash
flow prospects due to better than anticipated cost cutting and the
expiration of an unprofitable interest rate swap agreement.
Moody's said Spanish Broadcasting's 'Caa1' corporate family rating
incorporates its weak capital structure, operational pressure in
the still cyclically weak economic climate, generally narrow
growth prospects (though Spanish language is the strongest growth
prospect) given the maturity and competitive pressures in the
radio industry, and the June 2012 maturity of its term loan
magnify this challenge.
In July 2010, Standard & Poor's Ratings Services raised its
corporate credit rating on Miami, Fla.-based Spanish Broadcasting
System Inc. to 'B-' from 'CCC+', based on continued improvement in
the company's liquidity position. The rating outlook is stable.
"The rating action reflects S&P's expectation that, despite very
high leverage, SBS will have adequate liquidity over the
intermediate term to meet debt maturities, potential swap
settlements, and operating needs until its term loan matures on
June 11, 2012," said Standard & Poor's credit analyst Michael
Altberg.
TENDER HANDS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Tender Hands Home Health Care, Inc.
co Angela Masters, Administrator
11320 Essex Dr.
Cedar Hill, TX 75104
Case No.: 15-43390
Nature of Business: Health Care
Chapter 11 Petition Date: August 26, 2015
Court: United States Bankruptcy Court
Northern District of Texas (Ft. Worth)
Judge: Hon. Michael Lynn
Debtor's Counsel: Marilyn D. Garner, Esq.
LAW OFFICES OF MARILYN D. GARNER, PLLC
2007 E. Lamar Boulevard, Ste 200
Arlington, TX 76006
Tel: (817) 588-3075
Fax: 817-704-6361
Email: mgarner@marilyndgarner.net
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Angela Masters, secretary.
A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/txnb15-43390.pdf
TEXAS REGENCY: US Trustee Unable to Form Creditors' Committee
-------------------------------------------------------------
The U.S. trustee overseeing the Chapter 11 case of Texas Regency
Apartments LP said it wasn't able to form a committee to represent
unsecured creditors of the company.
The Justice Department's bankruptcy watchdog said it wasn't able to
solicit "sufficient interest" from unsecured creditors to form a
committee.
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 Texas Regency
Texas Regency Apartments, L.P., owner of the Regency Square
Apartments at 7222 Bellerive Dr., Houston, Texas, sought Chapter 11
protection (Bankr. S.D. Tex. Case No. 15-33188) in Houston, Texas,
on June 10, 2015. Gordon Steele signed the petition chief
financial officer.
Judge David R. Jones presides over the case. The Debtor tapped
Matthew Hoffman, Esq., at the Law Offices of Matthew Hoffman, P.C.,
as counsel.
The Debtor disclosed total assets of $11.1 million and total debts
of $11.4 million in its schedules.
TONGJI HEALTHCARE: Incurs $87,900 Net Loss in Second Quarter
------------------------------------------------------------
Tongji Healthcare Group, Inc., filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $87,882 on $648,292 of total operating revenue for the
three months ended June 30, 2015, compared to a net loss of $18,983
on $669,760 of total operating revenue for the same period a year
ago.
For the six months ended June 30, 2015, the Company reported a net
loss of $158,078 on $1.20 million of total operating revenue
compared to a net loss of $81,996 on $1.21 million of total
operating revenue for the same period during the prior year.
As of June 30, 2015, the Company had $17.23 million in total
assets, $19.79 million in total liabilities and total stockholders'
deficit of $2.56 million.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/OmGuQL
About Tongji Healthcare
Based in Nanning, Guangxi, the People's Republic of China, Tongji
Healthcare Group, Inc., a Nevada corporation, operates Nanning
Tongji Hospital, a general hospital with 105 licensed beds.
Tongji Healthcare reported a net loss of $462,000 on $2.52 million
of total operating revenues for the year ended Dec. 31, 2014,
compared with a net loss of $730,000 on $2.37 million of total
operating revenues for the year ended Dec. 31, 2013.
TRIUMPH GROUP: S&P Lowers Corp Credit Rating to 'BB', Outlook Neg
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
corporate credit rating on Triumph Group Inc. to 'BB' from 'BB+'.
The outlook is negative.
At the same time, S&P lowered all of its issue-level ratings on the
company by one notch. S&P's recovery ratings on Triumph's debt are
unchanged.
"The downgrade reflects that Triumph Group's revenues and earnings
will likely be much lower than we had previously expected because
of cuts in the production rates of the Boeing 747-8, Airbus A330,
and Gulfstream G450/550, the end of the C-17 military cargo
aircraft program, and recently announced delays in the production
of the Bombardier Global 7000," said Standard & Poor's credit
analyst Christopher Denicolo. Triumph's cash flows over the next
two years will also be constrained by outflows related to the
Gulfstream G650/G280 wing programs and the company's transition to
become a full cash tax payer in fiscal-year 2017 (ending March 31,
2017). S&P also expects that the company will continue to pursue
small- to mid-sized acquisitions and undertake share repurchases,
so any debt reduction in excess of the scheduled amortization of
Triumph's debt is unlikely. For fiscal-year 2016, S&P now expects
Triumph to post a debt-to-EBITDA metric of 3.7x-4.1x, a funds from
operations (FFO)-to-debt ratio of 15%-19%, and a free operating
cash flow (FOCF)-to-debt ratio of 6%-10% before its metrics improve
modestly in fiscal-year 2017 as its revenue growth resumes and its
margins improve. This compares with S&P's previous expectations
for fiscal-year 2016 of a debt-to-EBITDA metric of 2.5x-3.0x, a
FFO-to-debt ratio of 30%-35%, and a FOCF-to-debt ratio of 17%-20%.
The negative outlook reflects the challenges that Triumph is facing
to improve its profitability and replace its declining sales on
certain widebody jetliners, business jets, and military programs.
These challenges could prevent the company from improving its
credit ratios over the next 12 months as S&P had expected.
S&P could lower its rating on Triumph if its debt-to-EBITDA metric
remains above 4x over the next 12 months and will not likely
improve. This could occur if the company is unable to improve its
profitability, if the declines in certain of Triumph's programs are
greater than S&P currently expects, or if the company's
acquisitions or share repurchases are significantly larger than it
had expected in its base-case forecast.
S&P could revise its outlook on the company to stable if Triumph
makes progress in addressing its declining revenues and
profitability and does not materially increase its leverage to fund
acquisitions or share repurchases, such that its debt-to-EBITDA
metric declines below 3.5x.
TRONOX INC: Bank Debt Trades at 5% Off
--------------------------------------
Participations in a syndicated loan under which Tronox Inc. is a
borrower traded in the secondary market at 94.92
cents-on-the-dollar during the week ended Friday, August 21, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the August 25, 2015, edition of The Wall Street
Journal. This represents a decrease of 0.45 percentage points from
the previous week, The Journal relates. Tronox Inc. pays 300 basis
points above LIBOR to borrow under the facility. The bank loan
matures on March 15, 2020. Moody's rates the loan 'Ba3' and
Standard & Poor's gave a 'BBB-' rating to the loan. The loan is one
of the biggest gainers and losers among 244 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, August 21.
TXU CORP: Bank Debt Trades at 53% Off
-------------------------------------
Participations in a syndicated loan under TXU Corp is a borrower
traded in the secondary market at 47.02 cents-on-the-dollar during
the week ended Friday, August 21, 2015, according to data compiled
by LSTA/Thomson Reuters MTM Pricing and reported in the August 25,
2015, edition of The Wall Street Journal. This represents an
increase of 0.35 percentage points from the previous week, The
Journal relates. TXU Corp pays 450 basis points above LIBOR to
borrow under the facility. The bank loan matures on October 10,
2017. Moody's rates the loan 'WR' and Standard & Poor's gave a 'NR'
rating to the loan. The loan is one of the biggest gainers and
losers among 244 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday, August 21.
UNITED BANCSHARES: Incurs $118,000 Net Loss in Second Quarter
-------------------------------------------------------------
United Bancshares, Inc. filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $117,949 on $629,987 of total interest income for the three
months ended June 30, 2015, compared to a net loss of $202,946 on
$700,134 of total interest income for the same period during the
prior year.
For the six months ended June 30, 2015, the Company reported a net
loss of $103,096 on $1.3 million of total interest income compared
to a net loss of $424,199 on $1.4 million of total interest income
for the same period a year ago.
As of June 30, 2015, the Company had $58.3 million in total assets,
$55.3 million in total liabilities and stockholders' equity of $3
million.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/zT3SI0
About United Bancshares
Located in Philadelphia, Pennsylvania, United Bancshares, Inc., is
an African American controlled and managed bank holding company
for United Bank of Philadelphia, a commercial bank chartered in
1992 by the Commonwealth of Pennsylvania, Department of Banking.
United Bancshares reported a net loss of $343,000 on $2.90 million
of total interest income for the year ended Dec. 31, 2014, compared
with a net loss of $669,000 on $2.90 million of total interest
income for the year ended Dec. 31, 2013.
McGladrey LLP, in Blue Bell, Pennsylvania, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2014, noting that the Company's regulatory capital
amounts and ratios are below the required levels stipulated with
Consent Orders between the Company and its regulators under the
regulatory framework for prompt corrective action. Failure to meet
the capital requirements exposes the Company to regulatory
sanctions that may include restrictions on operations and growth,
mandatory asset disposition, and seizure of the Company. These
matters raise substantial doubt about the ability of the Company to
continue as a going concern.
UNITED BANCSHARES: Reports $14,600 Net Income for First Quarter
---------------------------------------------------------------
United Banchares, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing net income
of $14,634 on $711,879 of total interest income for the three
months ended March 31, 2015, compared to a net loss of $221,253 on
$713,381 of total interest income for the same period a year ago.
As of March 31,, 2015, the Company had $58.8 million in total
assets, $55.6 million in total liabilities and $3.2 million in
total shareholders' equity.
Failure to Comply with the FDIC and
Pennsylvania Department of Banking Consent Orders
The Bank has entered into Consent Orders with the FDIC and the
Department which, among other provisions, require the Bank to
increase its tier one leverage capital ratio to 8.5% and its total
risk based capital ratio to 12.5%. As of March 31, 2015, the
Bank's tier one leverage capital ratio was 5.22% and its total risk
based capital ratio was 9.03%.
The Bank's failure to comply with the terms of the Consent Orders
could result in additional regulatory supervision and/or actions.
The ability of the Bank to continue as a going concern is dependent
on many factors, including achieving required capital levels,
earnings and fully complying with the Consent Orders. The Consent
Orders raise substantial doubt about the Bank's ability to continue
as a going concern.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/8iBza9
About United Bancshares
Located in Philadelphia, Pennsylvania, United Bancshares, Inc., is
an African American controlled and managed bank holding company
for United Bank of Philadelphia, a commercial bank chartered in
1992 by the Commonwealth of Pennsylvania, Department of Banking.
United Bancshares reported a net loss of $343,000 on $2.90 million
of total interest income for the year ended Dec. 31, 2014, compared
with a net loss of $669,000 on $2.90 million of total interest
income for the year ended Dec. 31, 2013.
McGladrey LLP, in Blue Bell, Pennsylvania, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2014, noting that the Company's regulatory capital
amounts and ratios are below the required levels stipulated with
Consent Orders between the Company and its regulators under the
regulatory framework for prompt corrective action. Failure to meet
the capital requirements exposes the Company to regulatory
sanctions that may include restrictions on operations and growth,
mandatory asset disposition, and seizure of the Company. These
matters raise substantial doubt about the ability of the Company to
continue as a going concern.
USA DISCOUNTERS: In Chapter 11 to Wind Down Business
----------------------------------------------------
USA Discounters, Ltd., owner of USA Living and Fletcher's Jewelers
stores, has sought Chapter 11 protection to wind down operations
after it was unable to locate a going concern purchaser for the
business.
At its peak, USA Discounters had 24 USA Living stores and seven
Fletcher's Jewelers stores. USA Discounters has closed its all USA
Living stores and although its seven Fletcher's Jewelers stores in
five states remain open.
Like other retailers with bricks-and-mortar stores, USA
Discounters' revenues and earnings declined due to competition from
online stores.
For the fiscal year ended April 30, 2013, the Debtors had
consolidated earnings before interest, taxes, depreciation, and
amortization ("EBITDA") of approximately $13 million, based on
total revenues of approximately $111 million. For the fiscal year
ended April 30, 2014, however, total revenues had declined to
approximately $99 million and EBITDA had dropped to approximately
$6 million. Based on the current, unaudited results, the Debtors'
fiscal year ended April 30, 2015, is expected to involve total
revenues of approximately $82.4 million and EBITDA of approximately
$2.7 million.
Beginning in early 2015, the Debtors explored numerous
alternatives, including a potential out-of-court wind down, a sale
of some or all of their assets to third parties in or out of the
bankruptcy context, a foreclosure by the prepetition agent, and
Chapter 7 bankruptcy filings.
After considering all alternatives and after consulting with USA
Discounters' secured lenders, the Debtors concluded that the path
most likely to maximize value for their respective stakeholders
would be to complete an internally-administered wind down of USA
Discounters' receivables, inventory, and other assets, including by
using the tools available to debtors in possession under chapter 11
of the Bankruptcy Code.
USA Discounters provided consumer credit through revolving or
retail installment sales contracts, the installment contracts
typically having a term of 30 months, a fixed monthly payment, and
including a security interest in the merchandise purchased by the
consumer. As of Aug. 15, 2015, the receivables consisted of 31,394
open customer contracts, with an aggregate unpaid gross balance of
approximately $11.4 million and a remaining average term of
approximately 19 months. This aggregate gross balance is subject
to reduction for impairment and doubtful accounts, which, as of
July 31, 2015, was estimated in an aggregate amount of
approximately $5.7 million. The receivables are USA Discounters'
most significant asset.
Assets Sale
On June 25, 2015, USA Discounters commenced a sales process in its
stores, with a focus on conducting special inventory or similar
sales in accordance with applicable agreements and non-bankruptcy
law. As of the Petition Date, USA Discounters has completed the
sales process in and closed all 24 of its "USA Living" stores and
all of its warehouses. USA Discounters has not completed the sales
process in any of the "Fletcher's Jewelers" stores. USA Discounters
is still evaluating the available options with respect to the
remaining "Fletcher's Jewelers" stores and related inventory.
Pending a final decision about the optimal disposition of the
stores and related inventory and the obtaining of any necessary
relief from the Court, USA Discounters is continuing the inventory
sales at the "Fletcher's Jewelers" stores that were commenced
before the Petition Date.
Although the Debtors' management believes that the
internally-administered wind-down process is likely to maximize the
value of the Receivables, the Debtors have not foreclosed other
alternatives.
Goals in the Chapter 11 Cases
The Debtors intend to utilize the bankruptcy process to facilitate
an orderly disposition of USA Discounters' assets -- including
receivables and inventory -- followed by a structured and
judicially-supervised distribution of the resulting proceeds among
the respective Debtors' stakeholders.
Discounters Holding Company, Inc.'s board believes that the
proposed path presents the best option for the Debtors to maximize
the value of their estates under the circumstances.
After filing of the Debtors' petitions, USA Discounters intends to
operate its business in the ordinary course while pursuing all
options for further maximizing value. In the various First Day
Motions, the Debtors seek relief on an expedited basis that will
help preserve the value of their assets and permit them to conduct
the Cases efficiently and economically.
First Day Motions
In order to enable the Debtors to minimize the adverse effects of
the commencement of the Chapter 11 cases, the Debtors have
requested various types of relief in the first day motions. The
Debtors are seeking approval to:
-- use cash collateral;
-- direct joint administration of their Chapter 11 cases;
-- pay employee wages and benefits;
-- continue their cash management system;
-- pay prepetition sales and use taxes;
-- prohibit utilities from discontinuing service;
-- pay prepetition obligations in the ordinary course;
-- continue their customer programs;
-- establish procedures for the rejection of leases;
-- hire Kurtzman Carson Consultants LLC as claims agent; and
-- extend the deadline to file schedules and statements.
A copy of the affidavit in support of the first day motions is
available for free at:
http://bankrupt.com/misc/USA_Disc_1st_Day_Affidavit.pdf
About USA Discounters
USA Discounters was founded in May 1991. in the City of Norfolk,
Virginia, under the name USA Furniture Discounters, Ltd. It sold
goods through two groups of stores -- one group of specialty retail
stores operating under the "USA Living" brand, typically in
standalone locations, and seven additional retail stores operating
under the "Fletcher's Jewelers" brand, typically in major shopping
malls.
USA Discounters, Ltd., and two affiliates sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 15-11755) on
Aug. 24, 2015, to wind down the business.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP and Klee,
Tuchin, Bogdanoff & Stern LLP as attorneys, and Kurtzman Carson
Consultants, LLC, as claims and noticing agent.
USA Discounters estimated $100 million to $500 million in assets
and $50 million to $100 million in liabilities.
USA DISCOUNTERS: Proposes KCC as Claims & Noticing Agent
--------------------------------------------------------
USA Discounters, Ltd., and its affiliated debtors are asking the
U.S. Bankruptcy Court for the District of Delaware to hire Kurtzman
Carson Consultants LLC as claims and noticing agent for the Office
of Clerk of the U.S. Bankruptcy Court for the District of
Delaware.
Although the Debtors have not yet filed their schedules of assets
and liabilities, they anticipate that there will be thousands of
entities to be noticed. In view of the number of anticipated
claimants of a claims and noticing agent is both necessary and in
the best interests of the Debtors' estates and their creditors.
Prior to the Petition Date, the Debtors provided KCC with a
retainer in the amount of $15,000.
According to the services agreement, KCC will charge at these
rates for these consulting services:
Discounted
Position Hourly Rate
-------- -----------
Executive Vice President Waived
Director/Senior Managing Consultant $170
Consultant/Senior Consultant $70 to $155
Project Specialist $50 to $95
Technology/Programming Consultant $35 to $70
Clerical $25 to $45
Weekend, holidays and overtime Waived
For its noticing services, KCC will waive fees for electronic
noticing, and will charge $0.08 per page for facsimile noticing.
For claims administration and management, KCC will charge $0.10 per
creditor per month for license fee and data storage. For online
claims filing (ePOC) services, the firm will waive the fees.
James Le, the COO at KCC, attests that KCC is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
KURTZMAN CARSON CONSULTANTS LLC
2335 Alaska Ave.
El Segundo, CA 90245
Attn: Drake D. Foster
Tel: (310) 823-9000
Fax: (310) 823-9133
About USA Discounters
USA Discounters was founded in May 1991. in the City of Norfolk,
Virginia, under the name USA Furniture Discounters, Ltd. It sold
goods through two groups of stores -- one group of specialty retail
stores operating under the "USA Living" brand, typically in
standalone locations, and seven additional retail stores operating
under the "Fletcher's Jewelers" brand, typically in major shopping
malls.
USA Discounters, Ltd., and two affiliates sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 15-11755) on
Aug. 24, 2015, to wind down the business.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP and Klee,
Tuchin, Bogdanoff & Stern LLP as attorneys, and Kurtzman Carson
Consultants, LLC, as claims and noticing agent.
USA Discounters estimated $100 million to $500 million in assets
and $50 million to $100 million in liabilities.
USA DISCOUNTERS: Seeks Approval to Use Cash Collateral
------------------------------------------------------
USA Discounters, Ltd., and its affiliated debtors are seeking
approval from the U.S. Bankruptcy Court for the District of
Delaware to use cash collateral of their prepetition lenders.
USA Discounters is the borrower under a Loan and Security Agreement
dated as of Oct. 3, 2012, whereby a syndicate of lenders agented by
Wells Fargo Bank, N.A., provided an asset-backed revolving credit
facility of up to an original principal amount of $85 million and
with a stated maturity date of Oct. 3, 2015. As of the Petition
Date, the outstanding principal amount of all obligations was $60
million.
The Debtors seek authority for USA Discounters to use cash
collateral in an amount consistent with the expenditures described
in a 13-week cash collateral budget.
The Debtors seek authority for USA Discounters to use cash
collateral, wherever the cash collateral may be located, in
accordance with the terms of the Interim Order for, among other
things, (i) working capital requirements, (ii) general corporate
purposes, and (iii) the costs and expenses of administering USA
Discounters' case, including, without limitation, making adequate
protection payments, paying allowed fees and expenses incurred by
the professionals retained under sections 327, 328, 363, and/or
1102 of the Bankruptcy Code by USA Discounters and by any statutory
committees appointed in its Case pursuant to Section 1102 of the
Bankruptcy Code, and making payments under the carve-out, in each
case, pursuant to and solely in accordance with the Budget.
As adequate protection, Discounters will grant to the Prepetition
Agent additional and replacement valid, binding, enforceable,
non-avoidable, and automatically perfected postpetition security
interests and liens on all property.
About USA Discounters
USA Discounters was founded in May 1991. in the City of Norfolk,
Virginia, under the name USA Furniture Discounters, Ltd. It sold
goods through two groups of stores -- one group of specialty retail
stores operating under the "USA Living" brand, typically in
standalone locations, and seven additional retail stores operating
under the "Fletcher's Jewelers" brand, typically in major shopping
malls.
USA Discounters, Ltd., and two affiliates sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 15-11755) on
Aug. 24, 2015, to wind down the business.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP and Klee,
Tuchin, Bogdanoff & Stern LLP as attorneys, and Kurtzman Carson
Consultants, LLC, as claims and noticing agent.
USA Discounters estimated $100 million to $500 million in assets
and $50 million to $100 million in liabilities.
USA DISCOUNTERS: Wants Until Oct. 23 to File Schedules
------------------------------------------------------
USA Discounters, Ltd., and its affiliated debtors are asking the
U.S. Bankruptcy Court for the District of Delaware to extend their
deadline to file schedules of assets and liabilities and statements
of financial affairs until Oct. 23, 2015.
Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP,
explains that given the size and complexity of the Debtors'
operations, and taking into account that there are three separate
debtor entities, a significant amount of information must be
accumulated, reviewed, and analyzed to properly prepare the
Schedules and Statements. The Debtors and their professionals have
been consumed with a multitude of critical administrative and
operational decisions arising in conjunction with the commencement
of the Chapter 11 cases, including preparing for the Debtors' entry
into Chapter 11.
About USA Discounters
USA Discounters was founded in May 1991. in the City of Norfolk,
Virginia, under the name USA Furniture Discounters, Ltd. It sold
goods through two groups of stores -- one group of specialty retail
stores operating under the "USA Living" brand, typically in
standalone locations, and seven additional retail stores operating
under the "Fletcher's Jewelers" brand, typically in major shopping
malls.
USA Discounters, Ltd., and two affiliates sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 15-11755) on
Aug. 24, 2015, to wind down the business.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP and Klee,
Tuchin, Bogdanoff & Stern LLP as attorneys, and Kurtzman Carson
Consultants, LLC, as claims and noticing agent.
USA Discounters estimated $100 million to $500 million in assets
and $50 million to $100 million in liabilities.
VERITEQ CORP: Needs More Time to File Form 10-Q
-----------------------------------------------
VeriTeQ Corporation filed with the U.S. Securities and Exchange
Commission a Notification of Late Filing on Form 12b-25 with
respect to its quarterly report on Form 10-Q for the quarter ended
June 30, 2015. The Company said it requires additional time to
file the subject report in order to complete auditor review
thereof.
The Company expects to report revenue of approximately $283,000 for
the first six months of 2015. Net loss is expected to be
approximately $2.9 million for the six months ended June 30, 2015,
as compared to $0.9 million for the six months ended June 30, 2014.
The net loss in 2014 includes non-cash gains related to changes in
the fair value of subordinated convertible debt and conversion
options embedded in convertible notes in the amounts of $2.8
million and $3.6 million, respectively, and a loss on the change in
fair value of warrant liabilities in the amount of $2.8 million.
About VeriTeQ
VeriTeQ (formerly known as Digital Angel Corporation) develops
innovative, proprietary RFID technologies for implantable medical
device identification, and dosimeter technologies for use in
radiation therapy treatment. VeriTeQ --
http://www.veriteqcorp.com/-- offers the world's first FDA
cleared RFID microchip technology that can be used to identify
implantable medical devices, in vivo, on demand, at the point of
care. VeriTeQ's dosimeters provide patient safety mechanisms
while measuring and recording the dose of radiation delivered to a
patient in real time.
Veriteq reported a net loss of $3.91 million on $151,000 of sales
for the year ended Dec. 31, 2014, compared to a net loss of $18.2
million on $18,000 of sales for the year ended Dec. 31, 2013.
As of March 31, 2015, the Company had $1.66 million in total
assets, $9 million in total liabilties, $1.84 million in series D
preferred stock, and a $9.18 million total stockholders' deficit.
EisnerAmper 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
recurring net losses, and at Dec. 31, 2014, had negative working
capital and a stockholders' deficit. These events and conditions
raise substantial doubt about the Company's ability to continue as
a going concern.
VERTICAL COMPUTER: Needs More Time to File Q2 Form 10-Q
-------------------------------------------------------
Vertical Computer Systems, Inc. filed with the U.S. Securities and
Exchange Commission a Notification of Late Filing on Form 12b-25
with respect to its quarterly report on Form 10-Q for the quarter
ended June 30, 2015. The Company said it has experienced delays in
resolving issues material to its financial statements. The Company
expects to file the Form 10-Q within five days after the prescribed
filing date.
Revenues for the three months ended June 30, 2015, decreased by
approximately $1.8 million or 61% compared to the three months
ended June 30, 2014, primarily due to a decrease in license fees of
SiteFlash. Revenues for the six months ended June 2015, decreased
by approximately $2.8 million or 56% over prior year primarily due
to licensing of the Company's SiteFlash technology. Total operating
expenses for the three months ended June 30, 2015, decreased by
approximately $1.4 million or 69% compared to the three months
ended June 30, 2014, primarily due to decreased legal fees to
prosecute patent infringement on the Company's intellectual
property and the impairment of software development costs. Total
operating expenses decreased approximately $2.1 million or 57% over
prior year for the six months ending June 30, 2015, primarily due
to decreased legal fees to prosecute patent infringement on the
Company's intellectual property and impairment of software
development costs.
About Vertical Computer
Richardson, Tex.-based Vertical Computer Systems, Inc., is a
multinational provider of Internet core technologies, application
software, and software services through its distribution network
with operations or sales in the United States, Canada and Brazil.
Vertical Computer reported a net loss applicable to common
stockholders of $2.07 million on $7.43 million of total revenues
for the year ended Dec. 31, 2014, compared to a net loss applicable
to common stockholders of $3.08 million on $6.05 million of total
revenues for the year ended Dec. 31, 2013.
As of March 31, 2015, the Company had $1.1 million in total
assets, $18 million in total liabilities, $9.90 million in total
convertible cumulative preferred stock, and a $26.8 million total
stockholders' deficit.
MaloneBailey, LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2014, citing that the Company suffered net losses
and has a working capital deficiency, which raises substantial
doubt about its ability to continue as a going concern.
VYCOR MEDICAL: Reports $420K Net Loss for Second Quarter
--------------------------------------------------------
Vycor Medical, inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $420,267 on $286,018 of revenue for the three months ended
June 30, 2015, compared to a net loss of $1.27 million on $298,540
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 $1.14 million on $614,570 of revenue compared to a net loss
of $2.06 million on $656,662 of revenue for the same period a year
ago.
As of June 30, 2015, the Company had $2.75 million in total assets,
$791,597 in total liabilities, all current and $1.93 million in
total stockholders' equity.
Peter Zachariou, chief executive officer of Vycor, commented: "We
continue to make progress with our VBAS product and the continuing
clinical studies together with the anticipated launch of the
smaller VBAS models makes us confident this will translate into
increased VBAS penetration and greater market acceptance.
NovaVision addresses a substantial and largely unaddressed market
opportunity. The delayed launch of the Internet-delivered therapy
suite and professional models has impacted revenues, but with their
launch NovaVision is now positioned, for the first time, with the
range of therapies and product offerings to deliver on our
strategic vision: to provide a clinically supported, affordable and
scalable visual therapy solution offering broad benefits to those
suffering visual impairment following neurological damage; and to
offer solutions for patients, physicians and rehab centers alike."
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/tOqPuR
About Vycor Medical
Boca Raton, Fla.-based Vycor Medical, Inc. (OTC BB: VYCO)
-- http://www.VycorMedical.com/-- is a medical device company
committed to making neurological brain, spinal and other surgical
procedures safer and more effective. The Company's flagship,
Patent Pending ViewSite(TM) Surgical Access Systems represent an
exciting new minimally invasive access and retraction system that
holds the potential for speedier, safer and more economical brain,
spinal and other surgeries and a quicker patient discharge.
Vycor's innovative medical instruments are designed to optimize
neurosurgical site access, reduce patient risk, accelerate
recovery, and add tangible value to the professional medical
community.
WALTER ENERGY: Bank Debt Trades at 55% Off
------------------------------------------
Participations in a syndicated loan under which Walter Energy Inc.
is a borrower traded in the secondary market at 45.1
cents-on-the-dollar during the week ended Friday, August 21, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the August 25, 2015, edition of The Wall Street
Journal. This represents a decrease of 0.15 percentage points from
the previous week, The Journal relates. Walter Energy Inc. pays 575
basis points above LIBOR to borrow under the facility. The bank
loan matures on March 14, 201. Moody's rates the loan 'WR' and
Standard & Poor's gave a 'D' rating to the loan. The loan is one of
the biggest gainers and losers among 244 widely quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday, August 21.
WALTER ENERGY: Faces Objections to Debt-for-Equity Swap
-------------------------------------------------------
Patrick Fitzgerald, writing for Dow Jones' Daily Bankruptcy Review,
reported that Walter Energy Inc.'s junior creditors are objecting
to a proposed $1.9 billion debt-for-equity swap, saying it unfairly
benefits the company's lenders and insiders at their expense.
According to the report, in papers filed on Aug. 26 in U.S.
Bankruptcy Court in Birmingham, Ala., the committee representing
Walter Energy's other unsecured creditors said the company's
proposal for a quick sale to its lenders if certain bankruptcy
milestones aren't met is at best "a means to pressure unsecured
creditors into accepting the proposed plan as the lesser of two
evils."
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.
J. Thomas Corbett, the bankruptcy administrator for the Northern
District of Alabama, has appointed 13 members to the official
committee of unsecured creditors, including Pension Benefit
Guaranty Corp. and Nelson Brothers, LLC.
WNA HOLDINGS: S&P Hikes Corp. Credit Rating to 'BB', Off Watch Pos.
-------------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Boca Raton, Fla.-based WNA Holdings Inc. to 'BB' from
'B'. The outlook is stable.
At the same time, S&P removed its ratings from CreditWatch, where
it placed them with positive implications on July 15, 2015.
S&P subsequently withdrew its 'BB' corporate credit rating and all
other ratings on WNA following its acquisition and the repayment of
all the company's existing debt.
The upgrade reflects the completion of the acquisition of
Waddington Group Inc. by consumer products company Jarden Corp.,
along with S&P's view that Waddington's credit quality is aligned
with that of the acquirer. All existing debt at WNA has been
repaid and, as a result, S&P has subsequently withdrawn all ratings
on WNA and its debt issues.
ZLOOP INC: Meeting of Creditors Set for Sept. 24
------------------------------------------------
The meeting of creditors of ZLOOP Inc. is set to be held on Sept.
24, 2015, at 9:30 a.m., according to a filing with the U.S.
Bankruptcy Court in Delaware.
The meeting will be held at J. Caleb Boggs Federal Building, Room
5209, 844 King Street, in Wilmington, Delaware.
The court overseeing the bankruptcy case of a company schedules the
meeting of creditors usually about 30 days after the bankruptcy
petition is filed. The meeting is called the "341 meeting" after
the section of the Bankruptcy Code that requires it.
A representative of the company is required to appear at the
meeting and answer questions under oath. The meeting is presided
over by the U.S. trustee, the Justice Department's bankruptcy
watchdog.
[*] Marijuana Businesses Ineligible for Bankruptcy, Report Says
---------------------------------------------------------------
Camisha Simmons, writing for Law.com, reports that recent
bankruptcy case dismissals show that marijuana businesses are
ineligible for relief under the U.S. Bankruptcy Code.
Law.com says that although Colorado and at least twenty-two other
U.S. states and the District of Columbia have legalized some form
of use of marijuana, U.S. federal law still prohibits the
possession, distribution and use of marijuana.
Law.com relates that recent dismissals of bankruptcy cases
involving marijuana businesses in Colorado include: (i) Frank
Arenas (Bankr. D. Co. Case No. 14-046), wherein the 10th Circuit
Bankruptcy Appellate Panel affirmed on Aug. 21, 2015, the
Bankruptcy Court's dismissal of the Chapter 7 bankruptcy case; and
(ii) Rent-Rite Super Kegs West Ltd., which filed for Chapter 11
bankruptcy protection (Bankr. D. Col. Case No. 12-31592) on Oct.
18, 2012.
[^] BOOK REVIEW: Landmarks in Medicine - Laity Lectures
-------------------------------------------------------
Introduction by James Alexander Miller, M.D.
Publisher: Beard Books
Softcover: 355 pages
List Price: $34.95
Review by Henry Berry
Order your own personal copy today at http://bit.ly/1sTKOm6
As the subtitle points out, the seven lectures reproduced in this
collection are meant especially for general readers with an
interest in medicine, including its history and the cultural
context it works within. James Miller, president of the New York
Academy of Medicine which sponsored the lectures, states in his
brief "Introduction" that this leading medical organization "has
long recognized as an obligation the interpretation of the
progress of medical knowledge to the public." The lectures
collected here succeed admirably in fulfilling this obligation.
The authors are all doctors, most specialists in different areas
of medicine. Lewis Gregory Cole, whose lecture is "X-ray Within
the Memory of Man," is a consulting roentgenologist at New York's
Fifth Avenue Hospital. Harrison Stanford Martland is a professor
of forensic medicine at New York University College of Medicine.
Many readers will undoubtedly find his lecture titled "Dr. Watson
and Mr. Sherlock Holmes" the most engrossing one. Other doctor-
authors are more involved in academic areas of medicine and
teaching. Reginald Burbank is the chairman of the Section of
Historical and Cultural Medicine at the New York Academy of
Medicine. He lectured on "Medicine and the Progress of
Civilization." Raymond Pearl, whose selection is "The Search for
Longevity," is a professor of biology at Johns Hopkins University.
The authors' high professional standing and involvement in
specialized areas do not get in the way of their aim to speak to a
general audience. They are all skilled writers and effective
communicators. As the titles of some of the lectures noted in the
previous paragraph indicate, the seven selections of "Landmarks in
Medicine" focus on the human-interest side of medicine rather than
the scientific or technological. Even the two with titles which
seem to suggest concern with technical aspects of medicine show
when read to take up the human-interest nature of these topics.
"The Meaning of Medical Research", by Dr. Alfred E. Cohn of the
Rockefeller Institute for Medical Research, is not so much about
methods, techniques, and equipment of medical research, but is
mostly about the interinvolvement of medical research, the
perennial concern of individuals with keeping and recovering good
health, and social concerns and pressures of the day. "The meaning
of medical research must regard these various social and personal
aspects," Cohn writes. In this essay, the doctor does answer the
questions of what is studied in medical research and how it is
studied. And he answers the related question of who does the
research. But his discussion of these questions leads to the final
and most significant question "for what reason does the study take
place?" His answer is "to understand the mechanisms at play and to
be concerned with their alleviation and cure." By "mechanisms,"
Cohn means the natural--i. e., biological--causes of disease and
illness. The lay person may take it for granted that medical
research is always principally concerned with finding cures for
medical problems. But as Cohn goes into in part of his lecture,
competition for government grants or professional or public
notoriety, the lure of novel experimentation, or research mainly
to justify a university or government agency can, and often do,
distract medical researchers and their associates from what Cohn
specifies should be the constant purpose of medical research. Such
purpose gives medicine meaning to humankind.
The second lecture with a title sounding as if it might be about a
technical feature of medicine, "X-ray Within the Memory of Man,"
is a historical perspective on the beginnings of the use of x-ray
in medicine. Its author Lewis Cole was a pioneer in the
development of x-rays in the late 1800s and early1900s. He mostly
talks about the development of x-ray within his memory. In doing
so, he also covers the work of other pioneers, notably William
Konrad Roentgen and Thomas Edison. Roentgen was a "pure scientist"
who discovered x-rays almost by accident and at first resented the
application of his discovery to practical uses such as medical
diagnosis. Edison, the prodigious inventor who was interested only
in the practical application of scientific discoveries, and his
co-worker Clarence Dally enthusiastically investigated the
practical possibilities of the discoveries in the new field of
radiation. Dally became so committed to his work in this field
that he shortly developed an illness and died. At the time, no on
knew about the dangers of prolonged exposure to x-rays. But
sensing some connection between his co-worker's untimely death and
his work with x-rays, Edison stopped his own investigations.
Cole himself became involved in work with x-rays during his
internship at Roosevelt Hospital in New York City in 1898 and
1899. His contribution to this important field was in the area of
interpretation of what were at the time primitive x-rays and
diagnosis of ailments such as tuberculosis and kidney stones. Cole
writes in such a way that the reader feels she or he is right with
him in the steps he makes in improving the use of x-rays. He adds
drama and human interest to the origins of this important medical
technology. The lecture "Dr. Watson and Mr. Sherlock Holmes" uses
the popular mystery stories of Arthur Conan Doyle to explore the
role of medicine in solving crimes, particularly murder. In some
cases, medical tests are required to figure out if a crime was
even committed. This lecture in particular demonstrates the
fundamental role played by medicine in nearly all major areas of
society throughout history. The seven collected lectures have
broad appeal. All of them are informative and educational in an
engaging way. Each is on an always interesting topic taken up by a
professional in the field of medicine obviously skilled in
communicating to the general reader. The authors seem almost mind
readers in picking out the most fascinating aspects of their
subjects which will appeal to the lay readers who are their
intended audience. While meant mainly for lay persons, the
lectures will appeal as well to doctors, nurses, and other
professionals in the field of medicine for putting their work in a
broader social context and bringing more clearly to mind the
interests, as well as the stake, of the public in medicine.
*********
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
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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 ***