/raid1/www/Hosts/bankrupt/TCR_Public/150903.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, September 3, 2015, Vol. 19, No. 246
Headlines
1111 MYRTLE AVENUE: Files Schedules of Assets & Debt
AMERICAN RENAL: Moody's Retains B2 CFR on IPO Intentions
ARCH COAL: Extends Private Debt Exchange Offers & Support Pact
BOOMERANG TUBE: Taps Great American to Handle Dispute with SBI
BUCKINGHAM OIL: Voluntary Chapter 11 Case Summary
BULLIONDIRECT INC: Wants Claims Bar Date Moved to Jan. 25, 2016
BUNKERS INTERNATIONAL: Section 341 Meeting Scheduled for Sept. 28
BUNKERS INTERNATIONAL: Wants Joint Administration of Cases
CAESARS ENTERTAINMENT INC: 2020 Bank Debt Trades at 5% Off
CASA EN DENVER: U.S. Trustee Won't Form Committee For Now
CHINA PRECISION: CFO and COO Resign
CHINOS INTERMEDIATE: Moody's Affirms B3 CFR, Outlook Negative
CLARKE REAL ESTATE: Voluntary Chapter 11 Case Summary
CORINTHIAN COLLEGES: Judge Allows AIG to Pay Defense Costs
CORINTHIAN COLLEGES: Judge Grants BB&S Bid to Lift Automatic Stay
CRUMBS BAKE SHOP: Lemonis Relinquishes Stake to Dippin' Dots Owner
CYPRESS FINANCIAL: Dismissal of Chapter 7 Bankruptcy Affirmed
DAYTON SUPERIOR: Moody's Withdraws B2 Corporate Family Rating
DEWEY & LEBOEUF: Defense Loses Bid to Toss Fraud Case
DOMARK INTERNATIONAL: Delays Fiscal 2015 Annual Report
DRAGONWAVE INC: NASDAQ Extends Listing Rules Compliance Deadline
DYNAMIC DRYWALL: McPherson's Bid to Withdraw Reference Granted
ENNIS WEST END: Case Summary & 6 Largest Unsecured Creditors
FAIRWAY GROUP: S&P Revises Outlook to Neg. & Affirms 'B-' CCR
FEDERAL-MOGUL CORP: Bank Debt Trades at 2% Off
FLEXERA SOFTWARE: S&P Affirms B Rating Following $45MM Loan Add-On
FORTESCUE METALS: Bank Debt Trades at 20% Off
GETTY IMAGES: Bank Debt Trades at 37% Off
GLOBALSTAR INC: Issues 9.3 Million Common Shares to Terrapin
GREYSTONE LOGISTICS: Posts $57,000 Net Income for Fiscal 2015
GROVE ESTATES: M&T Bank Withdraws Objection to Sale of Properties
GYMBOREE CORP: Bank Debt Trades at 35% Off
HALCON RESOURCES: Moody's Assigns Caa2 Rating on $1.02BB Notes
HCA INC: Fitch Hikes Issuer Default Rating to 'BB'
HOWREY LLP: Claims for Unpaid Rent Entitled to Priority
HYPNOTIC TAXI: Creditors' Meeting Adjourned to Sept. 25
HYPNOTIC TAXI: U.S. Trustee Forms Three-Member Committee
INFORMATICA LLC: S&P Assigns 'B' CCR, Outlook Negative
J. CREW: Bank Debt Trades at 20% Off
LOCAL CORPORATION: Creditors' Panel Hires Robins Kaplan as Counsel
LOCAL CORPORATION: Creditors' Panel Taps FTI Consulting as Advisor
LOCAL CORPORATION: Hires Baker & McKenzie as Corporate Counsel
MCCLATCHY CO: Larry Edgar Resigns as Controller
MILLENNIUM HEALTH: S&P Lowers CCR to 'CCC+', Outlook Negative
PATRIOT COAL: Judge Urges Buyer, Union to Continue Talks
PITTSBURGH CORNING: Court Has No Authority Over Insurers' Bids
QUANTUM CORP: Stockholders Elect Nine Directors
RAYONIER ADVANCED: S&P Lowers CCR to 'BB' & Puts on Watch Negative
REPUBLIC AIRWAYS: Squeeze Worsens as Union Lets Local Skip Vote
ROTONDO WEIRICH: Files List of 30 Largest Unsecured Creditors
ROTONDO WEIRICH: Seeks Joint Administration of Cases
ROTONDO WEIRICH: Seeks to Hire ESBA as Financial Advisors
ROTONDO WEIRICH: Seeks to Use Cash Collateral
ROTONDO WEIRICH: Wants 30-Day Extension for Schedules & Statements
SEARS HOLDINGS: Announces Final Results of Cash Tender Offer
STOCKTON REDEVELOPMENT: S&P Lowers Rating on 2004 Bonds to 'D'
SULLIVAN INTERNATIONAL: Sept. 11 Hearing on Sale and Stay Relief
TEMPNOLOGY LLC: Case Summary & 21 Largest Unsecured Creditors
TERVITA CORP: Bank Debt Trades at 22% Off
TOPS HOLDING: Suspending Filing of Reports with SEC
TRONOX INC: Bank Debt Trades at 6% Off
TRONOX LTD: S&P Lowers CCR to 'BB-', Outlook Remains Negative
TXU CORP: Bank Debt Trades at 56% Off
ULTIMATE NUTRITION: Sues Mr. Olympia Contest
US RENAL: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable
WAYNE CHARTER: S&P Affirms 'BB+' Rating on GO Bonds, Outlook Neg.
XRPRO SCIENCES: Changes Name to "Icagen, Inc."
ZUCKER GOLDBERG: Taps Brown Moskowitz as Litigation Counsel
ZUCKER GOLDBERG: Taps Zucker Goldberg as Attorneys
[*] Sarah Frankel Launches Recruiting Firm for Bankruptcy Industry
[*] Two Business Bankruptcy Attorneys Join Morris Polich & Purdy
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
1111 MYRTLE AVENUE: Files Schedules of Assets & Debt
----------------------------------------------------
1111 Myrtle Avenue Group, LLC, filed with the U.S. Bankruptcy Court
for the Southern District of New York its schedules of assets and
liabilities, disclosing:
Name of Schedule Assets Liabilities
---------------- ----------- -----------
A. Real Property $22,000,000
B. Personal Property $7,685,301
C. Property Claimed as
Exempt
D. Creditors Holding
Secured Claims $6,167,670
E. Creditors Holding
Unsecured Priority
Claims $0
F. Creditors Holding
Unsecured Non-priority
Claims $60,312
----------- -----------
TOTAL $29,685,301 $6,227,982
A copy of the schedules filed together with the petition is
available for free at:
http://bankrupt.com/misc/nysb15-12454_SAL.pdf
About 1111 Myrtle Avenue Group
1111 Myrtle Avenue Group LLC owns a commercial property located at
1103-1111 Myrtle Avenue, Brooklyn, New York. The property is
leased to two tenants: (a) the United States of America occupies
most of the commercial space as a Social Security office, pursuant
to a lease coming up for renewal, and (b) Eagle 99 Cents Store
Inc., which runs a retail store, occupies the remainder of the
premises.
1111 Myrtle Avenue Group LLC filed a Chapter 11 bankruptcy petition
(Bankr. S.D.N.Y. Case No. 15-12454) on Sept. 1, 2015, after Myrtle
Property Holdings LLC backed out of a deal to buy the Debtor's
property.
The petition was signed by Aaron C. Ambalu as manager. Judge
Shelley C. Chapman is assigned to the case. Goldberg Weprin Finkel
Goldstein LLP serves as counsel to the Debtor.
The Debtor disclosed total assets of $29.6 million and total
liabilities of $6.23 million. The secured creditor is United
International Bank, which is owed $6.18 million on a first
mortgage.
According to the docket, the statement of financial affairs is due
Sept. 15, 2015. The Chapter 11 plan and disclosure statement are
due Dec. 30, 2015. The initial case conference is due Oct. 1,
2015.
AMERICAN RENAL: Moody's Retains B2 CFR on IPO Intentions
--------------------------------------------------------
Moody's Investors Service commented that American Renal Holdings,
Inc.'s filing of Form S-1 with the U.S. Securities and Exchange
Commission on Aug. 31 2015, indicating the company's intentions of
making a public equity offering, is credit positive. There is no
change to any of American Renal's ratings including the B2
Corporate Family Rating or stable outlook.
Although the IPO is positive for the overall credit profile,
changes in American Renal's capital structure could result in lower
loss absorption for first lien creditors, potentially resulting in
a lower instrument rating. Moody's estimates that should the $240
million second lien term loan be repaid in full, that it will
likely result in a downgrade of the existing senior secured first
lien credit facilities rating to B2 from Ba3. Such a downgrade
would also reflect the fact that the remaining facilities represent
the preponderance of debt in the capital structure.
ARCH COAL: Extends Private Debt Exchange Offers & Support Pact
--------------------------------------------------------------
Arch Coal, Inc. announced the extension of its (i) pending private
offer to exchange new 6.25% Trust Certificates due 2021 and a cash
payment for any and all of its outstanding 7.25% Senior Notes due
2020 and (ii) pending concurrent private offer to exchange Trust
Certificates, 8.00% Senior Secured Notes due 2022 and 12.00% Senior
Secured Second Lien Notes due 2023 for its outstanding 7.000%
Senior Notes due 2019, 9.875% Senior Notes due 2019 and 7.250%
Senior Notes due 2021.
The 2020 Exchange Offer, previously set to expire at 12:00
midnight, New York City time, on Aug. 28, 2015, has been extended
and is now set to expire at 12:00 midnight, New York City time, on
Sept. 23, 2015. The Concurrent Exchange Offer, previously set to
expire at 12:00 midnight, New York City time, on Aug. 28, 2015, has
been extended and is now set to expire at 12:00 midnight, New York
City time, on Sept. 23, 2015. Additionally, the Early Tender Time
for the Concurrent Exchange Offer, previously set to expire at
12:00 midnight, New York City time, on Aug. 28, 2015, has been
extended and is now set to expire at 12:00 midnight, New York City
time, on Sept. 23, 2015. The Withdrawal Deadline for the Exchange
Offers has passed, so 2020 Notes tendered in the 2020 Exchange
Offer and Old Notes tendered in the Concurrent Exchange Offer may
no longer be withdrawn.
As of 5:00 p.m. New York City time on Aug. 28, 2015, approximately
$421 million aggregate principal amount of 2020 Notes have been
validly tendered pursuant to the 2020 Exchange Offer, and
approximately $491 million aggregate principal amount of Old 7.000%
2019 Notes, $173 million aggregate principal amount of Old 9.875%
2019 Notes and $402 million aggregate principal amount of Old
7.250% 2021 Notes have been validly tendered pursuant to the
Concurrent Exchange Offer.
As previously disclosed, Arch has made alternative arrangements on
similar economic terms for holders of the 2020 Notes not eligible
to participate in the 2020 Exchange Offer. The Ineligible Holders
Offer, previously set to expire at 12:00 midnight, New York City
time, on Aug. 28, 2015, has also been extended and is now set to
expire at 12:00 midnight, New York City time, on Sept. 23, 2015.
As of 5:00 p.m. New York City time on Aug. 28, 2015, approximately
$38 million aggregate principal amount of 2020 Notes have been
validly tendered pursuant to the Ineligible Holders Offer.
On July 1, 2015, Arch entered into an agreement with holders of
approximately 56.9% in aggregate principal amount of the 2020
Notes. The Support Agreement was previously scheduled to terminate
if the 2020 Exchange Offer was terminated, or not consummated,
within 60 calendar days after the date of the Support Agreement,
unless extended by the parties. On Aug. 28, 2015, the parties to
the Support Agreement agreed to an extension of such agreement
until Sept. 23, 2015. All other terms and conditions of the
Support Agreement remain unchanged and in full force and effect.
As previously announced, on July 28, 2015, certain unidentified
term loan lenders under Arch's Amended and Restated Credit
Agreement dated as of June 14, 2011, purporting to hold more than
50% of the term loans under the Credit Agreement delivered a letter
to the administrative agent in respect of the term loan facility
under the Credit Agreement directing the Term Loan Administrative
Agent to refrain from executing any documentation relating to the
Exchange Offers. No approval by or consent of the existing term
loan lenders is required in connection with the Exchange Offers.
However following receipt of the Direction Letter, the Term Loan
Administrative Agent tendered its resignation under the Credit
Agreement, effective upon the earliest date allowed under the
Credit Agreement. The Term Loan lenders have appointed a new Term
Loan Administrative Agent, but we have received no assurances that
the new agent will be prepared to execute the required documents
for the Exchange Offers absent direction from the lenders. As
such, Arch can provide no assurances as to when, or if, any or all
of the Exchange Offers may be consummated.
The terms of the 2020 Exchange Offer are set forth in the
Confidential Offering Memorandum and Consent Solicitation Statement
and the accompanying Consent and Letter of Transmittal related to
the 2020 Exchange Offer. The terms of the Concurrent Exchange
Offer are set forth in the Confidential Offering Memorandum and the
accompanying Letter of Transmittal related to the Concurrent
Exchange Offer. The 2020 Exchange Offer is made only by, and
pursuant to the terms of, the 2020 Exchange Offering Memorandum and
the Consent and Letter of Transmittal, and the Concurrent Exchange
Offer is made only by, and pursuant to the terms of, the Concurrent
Exchange Offering Memorandum and the Letter of Transmittal.
The offering documents for the 2020 Exchange Offer and the
Concurrent Exchange Offer will be distributed only to holders of
2020 Notes and holders of Old Notes, respectively, that complete
and return a letter of eligibility confirming that they are
Eligible Holders (as defined below). Copies of the eligibility
letter are available to holders through the information agent for
the Exchange Offers, Ipreo LLC, at (888) 593-9546 (U.S. toll-free)
or (212) 849-3880.
Holders of the 2020 Notes that are not Eligible Holders will not be
able to receive the 2020 Exchange Offering Memorandum and the
Consent and Letter of Transmittal or to participate in the 2020
Exchange Offer. However, Arch is conducting the Ineligible Holders
Offer, pursuant to which Arch has made alternative arrangements on
equivalent economic terms to the 2020 Exchange Offer for holders
ineligible to participate in the 2020 Exchange Offer. Those
holders should contact Investor Relations at Arch by calling (314)
994-2700, and, after furnishing proof that they are not Eligible
Holders, will receive information about the Ineligible Holders
Offer. Holders of the Old Notes that are not Eligible Holders will
not be able to receive the Concurrent Exchange Offering Memorandum
and the Letter of Transmittal or to participate in the Concurrent
Exchange Offer.
The Exchange Offers are being made, and the Trust Certificates, the
New 2022 Secured Notes and the New 2023 Secured Notes are being
offered and issued, solely to holders of 2020 Notes or Old Notes,
as applicable, who are both "qualified institutional buyers" as
defined in Rule 144A under the Securities Act of 1933, as amended,
and "qualified purchasers" as defined in Section 2(a)(51) of the
Investment Company Act of 1940, as amended, in private placements
in reliance upon an exemption from the registration requirements of
the Securities Act. The holders of 2020 Notes or Old Notes, as
applicable, that are eligible to participate in the Exchange Offers
pursuant to the foregoing conditions are referred to as "Eligible
Holders." The Trust Certificates, the New 2022 Secured Notes and
the New 2023 Secured Notes have not and will not be registered
under the Securities Act and may not be transferred or resold
except as permitted under the Securities Act and other applicable
securities laws, pursuant to registration or exemption therefrom.
Additionally, Arch Pass Through Trust (issuer of the Trust
Certificates) has not been and will not be registered as an
investment company under the Investment Company Act, in reliance on
the exemption set forth in Section 3(c)(7) thereof.
About Arch Coal
Arch Coal, Inc.'s primary business is the production of thermal and
metallurgical coal from surface and underground mines located
throughout the United States, for sale to utility, industrial and
steel producers both in the United States and around the world. The
Company currently operates mining complexes in West Virginia,
Maryland, Virginia, Illinois, Wyoming and Colorado.
Arch Coal reported a net loss of $558.3 million in 2014, a net loss
of $641.8 million in 2013 and a net loss of $683.7 million in
2012. As of June 30, 2015, the Company had $8 billion in total
assets, $6.6 billion in total liabilities and $1.4 billion in total
stockholders' equity.
* * *
The Troubled Company Reporter, on July 8, 2015, reported that
Fitch Ratings has downgraded the Issuer Default Rating of Arch
Coal, Inc. to 'C' from 'CCC'. The downgrade follows Arch Coal's
announcements of exchange offers which Fitch considers Distressed
Debt Exchanges in accordance with Fitch's Distressed Debt Exchange
criteria.
The TCR, on May 6, 2015, reported that Moody's Investors Service
downgraded the corporate family rating of Arch Coal, Inc to Caa3
from Caa1 and the probability default rating to Caa3-PD from
Caa1-PD. The downgrade follows the continued stress on the coal
sector, and the resulting deterioration in the company's credit
metrics. At the same time, Moody's downgraded the ratings on the
senior secured term loan and bank revolving facility to Caa1 from
B2, the second lien notes to Caa3 from Caa1, and all unsecured
notes to Ca, from Caa2. Moody's also affirmed the Speculative
Grade Liquidity rating of SGL-3. The outlook is negative.
As reported by the TCR on July 9, 2015, Standard & Poor's Ratings
Services said it lowered its corporate credit rating on St.
Louis-based Arch Coal Inc. to 'CC' from 'CCC+'. Standard & Poor's
Ratings Services said it lowered its corporate credit rating on St.
Louis-based Arch Coal Inc. to 'CC' from 'CCC+'. The rating action
reflects Arch Coal's July 3, 2015, announcement of a private debt
exchange offer for its senior unsecured debt.
BOOMERANG TUBE: Taps Great American to Handle Dispute with SBI
--------------------------------------------------------------
Boomerang Tube, LLC, asks the U.S. Bankruptcy Court for the
District of Delaware for permission to pay fees and expenses of
Great American Group Advisory & Valuation Services, L.L.C. in
connection with the ongoing dispute with SB Boomerang Tubular, LLC
concerning confirmation of the Debtors' Joint Prearranged Chapter
11 Plan.
The Debtor financed the acquisition of certain heat treatment
quench and temper equipment for its manufacturing facility in
Liberty, Texas by means of a so-called "Equipment Lease Agreement"
with SBI dated as of Feb. 18, 2011. The Debtors believe the
agreement, though styled as a lease, is properly considered a
secured financing agreement under applicable nonbankruptcy law and
must be recharacterized as such in the chapter 11 cases, and the
Plan seeks such relief. SBI opposes such recharacterization.
In the event the recharacterization relief requested pursuant to
the Plan is granted, the Heat Treat Line must be appraised so that
the Debtors can appropriately value SBI's secured claim for
purposes of Sections 506(a)(1) and 1129(b)(2)(A) of the Bankruptcy
Code.
The parties are engaged in discovery relating to the
recharacterization pursuant to the stipulated order regarding
discovery between Debtors, SB Boomerang Tubular, LLC, SB American
Tubulars, LLC, and Pinnacle Machine Works, LLC.
On Aug. 17, 2015, the Debtors agreed to the terms of a contract
with Great American. Pursuant to the contract, Great American has
agreed to provide the services of William E. Cook, ASA, CEA with
respect to the SBI Litigation. In particular, the expert will be
available for:
i) review of any appraisal of the Heat Treat Line performed for
SBI;
ii) an expert deposition; and
iii) a plan confirmation hearing.
The contract provides that the expert's consultations and
Great American administration costs will be billed at these rates:
Time Period Rate
----------- ----
Hour $300
Up to four hours as a half $1,400
day rate
Full day rate of over four hours $2,500
The Debtor also agreed to pay all reasonable out-of-pocket expenses
for travel, hotels, and meals.
The Debtor proposed a hearing on the matter on Sept. 21, at
10:30 a.m. Objections, if any, are due Sept. 4, at 4:00 p.m.
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 Debtor disclosed $272,205,337 in assets and $300,375,946 in
liabilities as of th Chapter 11 filing.
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.
Boomerang Tube disclosed $272,205,337 in assets and $300,375,946 in
liabilities as of the Chapter 11 filing.
On June 30, 2015, the Debtor filed a bankruptcy-exit plan and
explanatory disclosure statement.
The U.S. Trustee overseeing the Chapter 11 case appointed five
creditors to serve on an official committee of unsecured
creditors. The Committee is represented by Brown Rudnick LLP., and
Morris, Nichols, Arsht & Tunnel LLP.
BUCKINGHAM OIL: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Buckingham Oil Interests, Inc.
15 Carey Lane
Falmouth, MA 02540
Case No.: 15-13441
Chapter 11 Petition Date: September 1, 2015
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: Hon. Joan N. Feeney
Debtor's Counsel: Francis C. Morrissey, Esq.
MORRISSEY, WILSON & ZAFIROPOULOS, LLP
35 Braintree Hill Office Park, Suite 404
Braintree, MA 0218A4
Tel: 781-353-5501
Fax: (617) 369-4742
Email: fcm@mwzllp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Janet Buckingham, sole director,
president and shareholder.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
BULLIONDIRECT INC: Wants Claims Bar Date Moved to Jan. 25, 2016
---------------------------------------------------------------
BullionDirect, Inc., asks the U.S. Bankruptcy Court for the Western
District of Texas to extend until Jan. 25, 2016, the deadline for
creditors to file proofs of claim. The Court previously set Nov.
23, 2015, as the deadline for filing proofs of claim.
According to the Debtor, it filed schedules and the statement of
financial affairs on Aug. 12, 2015, but the information available
to Debtor has been incomplete and, therefore, unreliable for many
purposes, including the listing of potential claims against BDI
arising from transactions at the website (at which virtually all
business was transacted).
In this relation, the Debtor's counsel and the attorney for the
U. S. Trustee have been exploring a process for resolving the issue
of the ownership of all of the metals held in the name of BDI.
The Debtor's attorneys can be reached at:
Joseph D. Martinec, Esq.
MARTINEC,WINN & VICKERS, P.C.
919 Congress Avenue, Suite 200
Austin, TX 78701- 2117
Tel: (512) 476-0750
Fax: (512) 476-0753
E-mail: martinec@mwvmlaw.com
About BullionDirect
BullionDirect, Inc. filed a Chapter 11 bankruptcy petition (Bankr.
W.D. Tex. Case No. 15-10940) on July 20, 2015. Dan Bensimon signed
the petition as president. The Debtor disclosed total assets of
$48,107 and total liabilities of $16,955,330 as of the Chapter 11
filing. Joseph D. Martinec, Esq., at Martinec, Winn & Vickers,
P.C., represents the Debtor as counsel. Judge Tony M. Davis
presides over the case.
The U.S. Trustee for Region 7 appointed three creditors to serve on
an official committee of unsecured creditors.
BUNKERS INTERNATIONAL: Section 341 Meeting Scheduled for Sept. 28
-----------------------------------------------------------------
A meeting of creditors in the bankruptcy cases of Bunkers
International Corp., et al., will be held on Sept. 28, 2015, at
10:00 a.m. at Orlando, FL (687) Suite 1203B, George C. Young
Courthouse, 400 West Washington Street. Creditors have until
Dec. 14, 2015, to submit their proofs of claim.
This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in all bankruptcy cases.
All creditors are invited, but not required, to attend. This
meeting of creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.
About Bunkers International
Based in Lake Mary, Florida, Bunkers International trades and
provides fuel for ships at sea. It provides physical supply,
trading, and brokering services from a number of global locating
including those in the U.S., Singapore, Greece, and the United
Kingdom, and says it is the largest marine fuel supplier in
Colombia through its BunkersOil Colombia joint venture with Vanoil,
S.A. The Company started in Colombia in 1995.
Bunkers International Corp. and three affiliates sought Chapter 11
bankruptcy protection (Bankr. M.D. Fla. Proposed Lead Case No.:
15-07397) on Aug. 28, 2015. The petition was signed by John T.
Canal as president/CEO. The Debtors estimated assets of $10
million to $50 million and liabilities of at least $10 million.
Latham, Shuker, Eden & Beaudine, LLP represents the Debtors as
counsel.
BUNKERS INTERNATIONAL: Wants Joint Administration of Cases
----------------------------------------------------------
Bunkers International Corp. seeks joint administration of its
bankruptcy case with the cases of its affiliates: Americas
Bunkering, LLC (Case No. 6:15-bk-07400-CCJ); Atlantic Gulf
Bunkering, LLC (Case No. 6:15-bk-07402-CCJ); and Dolphin Marine
Fuels, LLC (Case No. 6:15-bk-07404-CCJ).
Bankruptcy Rule 1015(b) provides, in relevant part: "If a joint
petition or two or more petitions are pending in the same court
against a debtor and an affiliate, the court may order a joint
administration of the estates."
The Debtor asserts that joint administration of their Chapter 11
cases will expedite the administration of these cases and reduce
administrative expenses without prejudicing any creditor's
substantive rights.
The Debtor anticipates numerous notices, applications, and other
pleadings and motions in their cases. Joint administration will
permit counsel for all parties-in-interest to include the Debtors'
respective cases in a single caption on the numerous documents that
will be filed and served in these cases. Joint administration also
will enable parties-in- interest in each of the Chapter 11 cases to
be apprised of the various matters before the Court in all of these
cases, the Debtor tells the Court.
The rights of parties-in-interest will not be prejudiced by the
proposed joint administration of these cases, as each creditor may
still file its claim against a particular estate.
The Debtor has proposed that a docket entry be made in each of
their cases substantially as follows:
"An order has been entered in this case for the joint
administration of the chapter 11 bankruptcy cases of BUNKERS
INTERNATIONAL CORP., Case No. 6:15-bk-07397-CCJ; AMERICAS
BUNKERING, LLC (Case No. 6:15-bk-07400-CCJ); ATLANTIC
GULF BUNKERING, LLC (Case No. 6:15-bk-07402-CCJ); and
DOLPHIN MARINE FUELS, LLC (Case No. 6:15-bk-07404-CCJ)
for procedural purposes only and providing for its joint
administration in accordance with the terms thereof. The
Docket in Case No.: 6:15-bk-07397-CCJ should be consulted for
all matters affecting the jointly-administered cases."
About Bunkers International
Bunkers International Corp. and three affiliates sought Chapter 11
bankruptcy protection (Bankr. M.D. Fla. Proposed Lead Case No.:
15-07397) on Aug. 28, 2015. The petition was signed by John T.
Canal as president/CEO. The Debtors estimated assets of $10
million to $50 million and liabilities of at least $10 million.
Latham, Shuker, Eden & Beaudine, LLP represents the Debtors as
counsel.
The Debtors offer trading services to ship owners, ship operators,
charterers, brokers, and traders through its global sales offices
located in Lake Mary, Florida, Singapore, South Africa, Greece, New
York, the UK, and Turkey.
CAESARS ENTERTAINMENT INC: 2020 Bank Debt Trades at 5% Off
----------------------------------------------------------
Participations in a syndicated loan under which Caesars
Entertainment Inc. is a borrower traded in the secondary market at
94.63 cents-on-the-dollar during the week ended Friday, August 28,
2015, according to data compiled by LSTA/Thomson Reuters MTM
Pricing and reported in the September 1, 2015, edition of The Wall
Street Journal. This represents a decrease of 0.66 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 235 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday, August 28.
CASA EN DENVER: U.S. Trustee Won't Form Committee For Now
---------------------------------------------------------
The Office of the U.S. Trustee will not appoint a committee to
represent unsecured creditors of Casa En Denver Inc. and Casa Media
Partners LLC until further notice, according to an August 25 filing
with the U.S. Bankruptcy Court for the Southern District of
Florida.
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.
Casa Media Partners, LLC, and Casa en Denver, Inc., commenced
Chapter 11 bankruptcy cases (Bankr. S.D. Fla. Case Nos. 15-16741
and 15-16746) in Miami, Florida on April 15, 2015. The petition
was signed by Juan Salvador Gonzalez, the chief financial officer.
Judge Hon. Robert A Mark presides over the cases. The Debtors are
represented by Kristopher Aungst, Esq., at Tripp Scott, P.A., as
their counsel. According to the docket, the deadline to file
claims for governmental units is on Oct. 13, 2015.
CHINA PRECISION: CFO and COO Resign
-----------------------------------
Leada Tak Tai Li resigned from the Board of Directors, and from the
position of chief financial officer of China Precision Steel, Inc.,
on Aug. 31, 2015, according to a document filed with the Securities
and Exchange Commission. Also on that date, Zu De Jiang resigned
from the position of chief operating officer.
According to the filing, none of the resignations were the result
of any disagreement with the Company on any matter relating to its
operation, policies or practices.
Hai Sheng Chen, the current chief executive officer and director of
the Company, will remain as the sole director, and will serve in
the position of chief financial officer as well as chief executive
officer.
About China Precision Steel
China Precision Steel -- http://chinaprecisionsteelinc.com/-- is
a niche precision steel processing company principally engaged in
the production and sale of high precision cold-rolled steel
products and provides value added services such as heat treatment
and cutting medium and high carbon hot-rolled steel strips. China
Precision Steel's high precision, ultra-thin, high strength (7.5
mm to 0.05 mm) cold-rolled steel products are mainly used in the
production of automotive components, food packaging materials, saw
blades, steel roofing and textile needles. The Company sells to
manufacturers in the People's Republic of China as well as
overseas markets such as Nigeria, Ethiopia, Thailand and
Indonesia. China Precision Steel was incorporated in 2002 and is
headquartered in Sheung Wan, Hong Kong.
China Precision reported a net loss of $37.5 million on
$47.2 million of sales revenues for the year ended June 30, 2014,
compared to a net loss of $68.9 million on $36.5 million of
sales revenues in 2013.
As of Dec. 31, 2014, the Company had $66.3 million in total assets,
$63.7 million in total liabilities, all current, and $2.61 million
in total stockholders' equity.
MSPC Certified Public Accountants and Advisors, A Professional
Corporation, in New York, issued a "going concern" qualification on
the consolidated financial statements for the year ended
June 30, 2014. The independent auditors noted that the Company
suffered very significant losses for the years ended June 30, 2014,
and 2013, respectively. Additionally, the Company defaulted on
interest and principal repayments of bank borrowings that raise
substantial doubt about its ability to continue as a going
concern.
CHINOS INTERMEDIATE: Moody's Affirms B3 CFR, Outlook Negative
-------------------------------------------------------------
Moody's Investors Service revised the ratings outlook on Chinos
Intermediate Holdings A, Inc., the indirect parent company of J.
Crew Group, Inc. to negative from stable, and affirmed the
company's B3 Corporate Family Rating, B3-PD Probability of Default
Rating and Caa2 rating on its PIK Toggle Notes due 2019. The
company's Speculative Grade Liquidity Rating was also lowered to
SGL-2 from SGL-1. Concurrently, Moody's affirmed J. Crew Group's
$1.5 billion Secured Term Loan due 2021 at B2.
The outlook change to negative reflects J. Crew's ongoing weak
operating performance resulting from poor execution in a highly
challenging and promotional apparel retail environment. Declining
sales have triggered inventory markdowns and cost de-leveraging,
pressuring margins. J. Crew's year-to-date August 1, 2015 revenue
and adjusted EBITDA (as defined by the company) declined 3.6% and
35.1%, respectively, while EBITDA margin declined to 7.3% from
10.9% last year. As a result, Debt/EBITDA (using Moody's standard
analytic adjustments, including capitalizing leases at 5x rent)
deteriorated to about 8x from around 6.3x at this point last year,
and interest coverage (EBITA/Interest) dipped below 1.0x. Given
that interest coverage is below 1.0x, should the company's
performance not begin to improve, its capital structure will become
increasingly unsustainable.
The change in J. Crew's Speculative Grade Liquidity Rating to SGL-2
from SGL-1 reflects the modest decline in balance sheet cash and
negative free cash flow, but still reflects Moody's expectation for
good liquidity over the next twelve months. Balance sheet cash at
the operating company, J. Crew, was $41 million as of August 1,
2015, excluding approximately $19 million of cash that was
distributed to Chinos in advance of the November 1 PIK Toggle Note
interest payment. This, when combined with operating cash flow,
should be more than sufficient to support cash flow needs over the
next twelve months. Liquidity is also supported by ample excess
availability under the company's $300 million ABL revolver, lack of
financial maintenance covenants, and a long-dated maturity profile
with the nearest maturity being May 2019 when the Chinos' PIK
Toggle Notes mature. Given the company's weak performance and
limited Restricted Payment capacity under its credit agreement at
this time, Moody's believes that J.Crew has the ability to not make
its May 1, 2016 PIK Toggle Note interest payment in cash, which is
a feature that supports liquidity in times of stress.
These ratings were affirmed:
Chinos Intermediate Holdings A, Inc.
-- Corporate Family Rating at B3
-- Probability of Default Rating at B3-PD
-- $500 million Senior PIK toggle notes due 2019 at Caa2 (LGD6)
J. Crew Group, Inc.
-- $1.57 billion term loan B due 2021 at B2 (LGD3)
Ratings lowered:
Chinos Intermediate Holdings A, Inc.
-- Speculative Grade Liquidity rating lowered to SGL-2 from
SGL-1.
The ratings outlook is negative
RATINGS RATIONALE
J.Crew's B3 Corporate Family Rating reflects its high debt burden
stemming from its 2011 LBO, aggressive financial policies and
declining operating earnings. The rating is also constrained by J.
Crew's relatively small scale and high business risk as a specialty
apparel retailer, which exposes the company to performance
volatility as a result of fashion risk or changes in consumer
spending. The rating is supported by J. Crew's merchandising
skills as reflected by its historical track record of sales and
earnings growth, credible market position in the highly fragmented
specialty apparel retailing segment, very well recognized lifestyle
brand names, and historically strong margins relative to peers.
The company's good liquidity profile, including its lack of
near-dated debt maturities, also provides significant ratings
support.
The negative outlook reflects the persistent declines in J. Crew's
operating performance due to weak execution and challenging
industry environment, and its highly levered capital structure.
Ratings could be lowered if the company is unable to return to
profitable growth on a sustainable basis, which would be evidenced
by an inability to pay any future PIK Toggle Note interest in cash.
A deterioration in liquidity could also lead to a ratings
downgrade, particularly if free cash flow remains negative.
Interest coverage (EBITA/Interest) remaining below 1.0 time could
also prompt a downgrade.
A stable outlook would require that the company return to
profitable growth and positive annual free cash flow, and improve
EBITA/Interest above 1.0x on a sustainable basis. While unlikely
in the near term, J. Crew's ratings could be upgraded if the
company sustainably improves performance and profitability such
that debt/EBITDA approaches 6 times and interest coverage exceeded
1.75 times while maintaining a good liquidity profile.
Chinos Intermediate Holdings A, Inc. ("J. Crew") is the indirect
parent company of J. Crew Group Inc., a multi-channel retailer of
women's, men's and children's apparel, shoes and accessories. As
of Aug. 27, 2015, the Company operated 283 J. Crew retail stores,
92 Madewell stores), jcrew.com, jcrewfactory.com, the J.Crew
catalog, madewell.com, the Madewell catalog, and 148 factory stores
(including 1 J. Crew Mercantile store). The company is owned by
TPG Capital, L.P., Leonard Green & Partners, L.P. and certain
members of the executive management team.
The principal methodology used in these ratings was Global Retail
Industry published in June 2011.
CLARKE REAL ESTATE: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Clarke Real Estate Development, LLC
1735 Market Street, Suite A454
Philadelphia, PA 19103
Case No.: 15-16299
Type of Business: Single Asset Real Estate
Chapter 11 Petition Date: September 1, 2015
Court: United States Bankruptcy Court
Eastern District of Pennsylvania (Philadelphia)
Judge: Hon. Ashely M. Chan
Debtor's Counsel: Thomas Daniel Bielli, Esq.
O'KELLY ERNST & BIELLI, LLC
1500 Walnut Street, Suite 900
Philadelphia, PA 19102
Tel: 215-543-7182
Fax: 215-525-9648
Email: tbielli@oeblegal.com
Estimated Assets: $10 million to $50 million
Estimated Debts: $10 million to $50 million
The petition was signed by Donovan Clarke, sole member.
The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.
CORINTHIAN COLLEGES: Judge Allows AIG to Pay Defense Costs
----------------------------------------------------------
A bankruptcy judge lifted the so-called automatic stay allowing
Corinthian Colleges Inc.'s insurance provider to pay the defense
costs incurred by the company.
The order, issued by U.S. Bankruptcy Judge Kevin Carey, allowed
American International Group Inc. to pay the defense costs incurred
by Corinthian Colleges in connection with the lawsuits brought
against the company prior to its bankruptcy filing.
The insurance company was also allowed to pay the defense costs
incurred or will be incurred by former and current directors,
officers and employees of Corinthian Colleges who are facing
lawsuits for alleged violations of labor practices.
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.
CORINTHIAN COLLEGES: Judge Grants BB&S Bid to Lift Automatic Stay
-----------------------------------------------------------------
U.S. Bankruptcy Judge Kevin Carey lifted the so-called automatic
stay allowing BB&S Development LLC to set off Heald College LLC's
security deposit against its claim.
Heald College, an affiliate of Corinthian Colleges Inc., owes BB&S
Development $744,453 for unpaid rent and damages suffered by the
landlord from the rejection of their lease agreement.
BB&S Development presently holds $62,863 that it received from its
former tenant as security deposit, court filings show.
Under Section 362 of the Bankruptcy Code, the filing of a
bankruptcy case triggers an injunction against the continuance of
an action by any creditor against the debtor or its property.
The automatic stay gives the debtor protection from its creditors
subject to the oversight of the bankruptcy judge.
Separately, Stan Mortensen and Beth Wilson, creditors of Corinthian
Colleges, dropped their claims against the company totaling $1.54
million, court filings show.
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.
CRUMBS BAKE SHOP: Lemonis Relinquishes Stake to Dippin' Dots Owner
------------------------------------------------------------------
Stephanie Gleason, writing for The Wall Street Journal, reported
that just more than a year since his 11th-hour move to resurrect
Crumbs Bake Shop Inc., investor and television personality Marcus
Lemonis announced that he's selling his stake in the bakery.
According to the report, Fischer Enterprises LLC, which owns
Dippin' Dots and which currently holds the majority stake in the
business, has purchased his piece of the company, Mr. Lemonis said
on Sept. 1. The investor and television personality added that
he's taking a "sizable loss" in the deal that was brokered during
Crumbs' bankruptcy case last year but didn't name a purchase price,
the report related.
About Crumbs Bake Shop
Crumbs Bake Shop, Inc., and 22 of its affiliates filed separate
Chapter 11 bankruptcy petitions (Bankr. D.N.J. Lead Case No.
14-24287) on July 11, 2014. John D. Ireland signed the petitions
as chief financial officer. Crumbs Bake Shop estimated assets of
$10 million to $50 million and the same range of liabilities.
Cole, Schotz, Meisel, Forman & Leonard, P.A., acts as the Debtors'
counsel. Prime Clerk LLC is the Debtors' claims and noticing
agent. Judge Michael B. Kaplan oversees the jointly administered
cases.
The U.S. Trustee appointed three creditors to serve in the
Official
Committee of Unsecured Creditors. Sharon L. Levine, Esq., at
Lowenstein Sandler LLP serves as Committee's counsel.
* * *
On July 7, 2014, the Board of Directors of Crumbs Bake Shop
determined to cease operations effective immediately. The Board's
determination was made after the Company lacked sufficient
liquidity to maintain current operations.
On the petition date, Crumbs entered into an Asset Purchase
Agreement through which Lemonis Fischer Acquisition Company, LLC,
a
joint venture created by Marcus Lemonis LLC and Fischer
Enterprises, L.L.C., will acquire the Crumbs' business as part of
the Company's Chapter 11 filing. Lemonis Fischer Acquisition is
represented by Louis Price, Esq., at McAfee Taft PC.
On Aug. 29, 2014, Crumbs Bake Shops completed the sale of its
assets for a credit bid of $7,140,000 and the assumption of
various
liabilities. There are no cash proceeds and the credit bid
resulted in the repayment of all indebtedness to Lemonis Fischer
Acquisition, which held a first priority security interest in the
assets of the Company. The Company's remaining assets will be
liquidated and the proceeds thereof will be utilized to pay
unsecured liabilities in accordance with applicable law and
certain
advisors' fees and expenses. The Company said it does not expect
that there will be any proceeds available for distribution to
shareholders.
CYPRESS FINANCIAL: Dismissal of Chapter 7 Bankruptcy Affirmed
-------------------------------------------------------------
The United States Court of Appeals for the Fifth Circuit affirmed
the district court's dismissal of Cypress Financial Trading
Company, L.P.'s Chapter 7 bankruptcy.
Cypress is a limited partnership whose sole function was to invest
in Petters Company, Inc. Over several years, Cypress received
approximately $11.4 million from its investments, approximately
$500,000 of which was profit. PCI turned out to be a large Ponzi
scheme and subsequently filed bankruptcy. In October 2010, PCI's
Chapter 11 trustee sued Cypress to avoid and recover the $11.4M in
transfers.
On December 4, 2012, Cypress filed its Chapter 7 bankruptcy case.
Three months later, Cypress' trustee filed a "Report of No
Distribution," certifying that Cypress has no assets or claims of
any kind and requesting that the case be closed. PCI's trustee
then moved to dismiss Cypress' bankruptcy under 11 U.S.C. Section
707(a). The bankruptcy court denied the motion, but was reversed
by the district court. The district court held that because
Chapter 7 provides Cypress no benefit and harms its only
non-insider creditor, the bankruptcy court abused its discretion.
The Fifth Circuit agreed with the district court's conclusion that
the bankruptcy court abused its discretion in not finding "cause"
to dismiss under Section 707(a). The Fifth Circuit explained that
without any conceivable benefit to the debtor or creditors, a
bankruptcy loses its raison d'etre. The court further stated that
Cypress' bankruptcy case served unreasonably and unjustifiably to
delay the PCI Trustee's suit.
The appeals case is DOUGLAS A. KELLEY, in his capacity as chapter
11 trustee of Petters Company, Inc., Appellee, v. CYPRESS FINANCIAL
TRADING COMPANY, L.P., Appellant, NO. 14-10956, SUMMARY CALENDAR
(5th Cir.), relating to In the Matter of: CYPRESS FINANCIAL TRADING
COMPANY, L.P., Debtor.
A full-text copy of the Fifth Circuit's August 12, 2015 opinion is
available at http://is.gd/Fr1iPAfrom Leagle.com.
About Petters Company
Based in Minnetonka, Minn., Petters Group Worldwide LLC is a
collection of some 20 companies, most of which make and market
consumer products. It also works with existing brands through
licensing agreements to further extend those brands into new
product lines and markets. Holdings include Fingerhut (consumer
products via its catalog and Web site), SoniqCast (maker of
portable, WiFi MP3 devices), leading instant film and camera
company Polaroid (purchased for $426 million in 2005), Sun Country
Airlines (acquired in 2006), and Enable Holdings (online
marketplace and auction for consumers and manufacturers' overstock
inventory). Founder and chairman Tom Petters formed the company
in
1988.
Petters Company, Inc., is the financing and capital-raising unit
of
Petters Group Worldwide.
Thomas Petters, the founder and former CEO of Petters Group, has
been indicted and a criminal proceeding against him is proceeding
in the U.S. District Court for the District of Minnesota.
Petters Company, Petters Group Worldwide and eight other
affiliates filed separate petitions for Chapter 11 protection
(Bankr. D. Minn. Lead Case No. 08-45257) on Oct. 11, 2008. In its
petition, Petters Company estimated its debts at $500 million and
$1 billion. Parent Petters Group Worldwide estimated its debts at
not more than $50,000.
Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing
business as Sun Country Airlines, Inc., and MN Airline Holdings,
Inc., filed separate petitions for Chapter 11 bankruptcy
protection
(Bankr. D. Minn. Case Nos. 08-45136, 08-35197 and 08-35198) on
Oct.
6, 2008. Petters Aviation is a wholly owned unit of Thomas
Petters
Inc. and owner of MN Airline Holdings, Sun Country's parent
company.
The Official Committee of Unsecured Creditors is represented by
David E. Runck, Esq., Lorie A. Klein, Esq., at Fafinski Mark &
Johnson, P.A.
Trustee Douglas A. Kelley is represented by James A. Lodoen, Esq.,
Mark D. Larsen, Esq., Kirstin D. Kanski, Esq., Adam C. Ballinger,
Esq., at Lindquist & Vennum LLP.
DAYTON SUPERIOR: Moody's Withdraws B2 Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has withdrawn all of the ratings assigned
to Dayton Superior Corporation including the B2 Corporate Family
Rating and the B3 rating on Dayton Superior's proposed 7-year $185
million first lien term loan. The B2-PD Probability of Default
Rating has also been withdrawn. The stable outlook was also
withdrawn.
RATINGS RATIONALE
The withdrawal of the ratings follows Dayton Superior's
announcement that due to adverse market conditions, the company has
elected to indefinitely postpone the offering of the proposed term
loan.
Headquartered in Miamisburg, Ohio, Dayton Superior Corporation is a
leading North American manufacturer and distributor of metal
accessories and forms used in concrete construction. Dayton
Superior also makes metal accessories used in masonry construction.
The company's products are sold to non-residential construction
including infrastructure (35% of FY 2014 sales), institutional
(30%), commercial and industrial (30%). For FY 2014 residential
sales were 5% of total. Oaktree Capital is the sponsor. All
Moody's calculations include Moody's standard adjustments.
Withdrawals:
Corporate Family Rating, Withdrawn , previously rated B2
Probability of Default Rating, Withdrawn , previously rated
B2-PD
$185 million First Lien Term Loan due 2022, Withdrawn ,
previously rated B3 (LGD4).
Outlook Actions:
Outlook, Changed To Rating Withdrawn From Stable
DEWEY & LEBOEUF: Defense Loses Bid to Toss Fraud Case
-----------------------------------------------------
Joanna Chung, writing for The Wall Street Journal, reported that
defense lawyers for three former Dewey & LeBoeuf LLP leaders
accused of committing financial fraud failed get the case tossed
out on Sept. 1, as a judge ruled there was enough evidence to send
the matter to a jury for deliberation.
According to the report, New York state court Judge Robert Stolz
did reserve the right to dismiss some of the 100 counts against the
trio -- Dewey's former chairman, Steven Davis, ex-chief financial
officer, Joel Sanders, and former executive director, Stephen
DiCarmine -- before sending it to the jury.
Assistant District Attorney Steve Pilnyak argued in court that
prosecutors have laid out enough evidence over 3 months, through 41
witnesses, to prove the ex-Dewey leaders oversaw a scheme to
manipulate the fallen law firm’s books in the years leading up to
its 2012 bankruptcy, the report related. Mr. Pilnyak argued that
Mr. Davis, as head of the firm, knew improper accounting
adjustments were being made by lower-level employees, but distanced
himself from the action the way a drug king pin talks in "code"
when overseeing a drug conspiracy.
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.
DOMARK INTERNATIONAL: Delays Fiscal 2015 Annual Report
------------------------------------------------------
Domark International Inc. filed with the U.S. Securities and
Exchange
Commission a Notification of Late Filing on Form 12b-25 with
respect to its annual report on Form 10-K for the year ended May
31, 2015.
Domark International said it could not complete the filing of its
Annual Report due to a delay in obtaining and compiling information
required to be included in that Report, which delay could not be
eliminated by the Company without unreasonable effort and expense.
In accordance with Rule 12b-25 of the Securities Exchange Act of
1934, as amended, the Company will file its Form 10-K no later than
the fifteenth calendar day following the prescribed due date.
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.
DRAGONWAVE INC: NASDAQ Extends Listing Rules Compliance Deadline
----------------------------------------------------------------
DragonWave Inc., a global supplier of packet microwave radio
systems for mobile and access networks, on Sept. 1 disclosed that
its request to transfer the listing of its securities from The
NASDAQ Global Market to The NASDAQ Capital Market has been approved
by the Staff of the NASDAQ Listing Qualifications Department,
effective with the open of trading on August 28, 2015. The
Company's common shares will continue to trade under the symbol
"DRWI".
As previously announced, on March 5, 2015, the Company received
notice that its closing bid price had been below US$1.00 per share
for 30 consecutive business days and that, accordingly, the NASDAQ
Staff had granted the Company an extension through August 31, 2015
to regain compliance with the US$1.00 per share bid price
requirement. The Company has not been able to regain compliance
with this requirement within such period, and the Company
transferred the listing of its common shares from The NASDAQ Global
Market to The NASDAQ Capital Market. In connection with such
transfer, the Company was granted an additional 180 days to regain
compliance with the minimum $1.00 bid price per share requirement.
The new extension period runs through February 29, 2016. In order
to regain compliance with the $1.00 per share bid price
requirement, the Company's common stock must close at $1.00 per
share or more for a minimum of 10 consecutive business days
(subject to being increased to 20 consecutive business days at the
discretion of NASDAQ's Staff) prior to the end of the new extension
period. If the Company cannot demonstrate compliance with this
requirement by February 29, 2016, or it does not comply with the
terms of the extension granted by the NASDAQ Staff, the Company's
common stock may then be subject to delisting.
About DragonWave
DragonWave(R) -- http://www.dragonwaveinc.com-- is a provider of
high-capacity packet microwave solutions that drive next-generation
IP networks. DragonWave's carrier-grade point-to-point packet
microwave systems transmit broadband voice, video and data,
enabling service providers, government agencies, enterprises and
other organizations to meet their increasing bandwidth requirements
rapidly and affordably. The principal application of DragonWave's
portfolio is wireless network backhaul, including a range of
products ideally suited to support the emergence of underlying
small cell networks. Additional solutions include leased line
replacement, last mile fiber extension and enterprise networks.
DragonWave's corporate headquarters is located in Ottawa, Ontario,
with sales locations in Europe, Asia, the Middle East and North
America.
DYNAMIC DRYWALL: McPherson's Bid to Withdraw Reference Granted
--------------------------------------------------------------
Judge J. Thomas Marten of the United States District Court for the
District of Kansas adopted U.S. Chief Bankruptcy Judge Robert E.
Nugent's Report and Recommendation and granted the Motion to
Withdraw Reference filed by the defendants McPherson Contractors,
Inc., and Fidelity and Deposit Company of Maryland.
On June 14, 2014, Dynamic Drywall, Inc., entered into a subcontract
with McPherson to provide labor and materials for the drywall and
ceiling components of a school renovation project, in which
McPherson was the general contractor and Fidelity was the surety.
A statutory payment bond was executed by McPherson and Fidelity on
the project under Kan. Stat. Ann. Section 60-1110 (2005).
On January 9, 2015, DDI filed an adversary proceeding against
McPherson and Fidelity alleging non-payment under the subcontract.
DDI asserted three causes of action:
(1) Against Fidelity, DDI alleged that as an intended
beneficiary, DDI is entitled to recover under the Kansas statutory
payment bond its unpaid materials and labor of $519,144.19 provided
in the project.
(2) Against McPherson, DDI sought damages of $519,144.19 for
breach of the subcontract by failing to pay for labor and materials
provided.
(3) DDI also sought additional damages of $98,873.12 for
McPherson's alleged conversion of miscellaneous equipment belonging
to DDI, measured by the value of the equipment at the time of
conversion.
The defendants filed a motion to withdraw reference, claiming that
DDI's claims are state law legal claims subject to trial by jury.
The defendants also expressly withheld their consent to the trial
being conducted by the bankruptcy judge.
Judge Marten agreed with Judge Nugent's recommendation, concluding
as follows:
-- all of DDI's claims are non-core state law claims;
-- all of DDI's claims are legal causes of action for which
there is a right to a jury trial;
-- both defendants made timely jury trial demands, and are
entitled to have that trial conducted in the district court;
-– neither defendant filed a statement of consent to have a
bankruptcy judge conduct a jury trial or enter a final order or
judgment on the non-core state law claims.
Judge Marten agreed with Judge Nugent's recommendation that the
District Court immediately withdraw the reference in the adversary
proceeding so that all discovery and pretrial proceedings can be
conducted "under one roof."
The case is DYNAMIC DRYWALL, INC., Plaintiff, v. McPHERSON
CONTRACTORS, INC., and FIDELITY AND DEPOSIT COMPANY of MARYLAND,
Defendants, CASE NO. 6:15-CV-1229-JTM (D. Kan.).
A full-text copy of Judge Marten's August 11, 2015 memorandum and
order is available at http://is.gd/WJ0TXIfrom Leagle.com.
Dynamic Drywall, Inc. is represented by:
Mark J. Lazzo, Esq.
MARK J. LAZZO, PA
3500 N. Rock Road
Building 300, Suite B
Wichita, KS 67226
Tel: (316) 263-6895
Fax: (316) 264-4704
McPherson Contractors, Inc. and Fidelity and Deposit Company of
Maryland are represented by:
Randall J. Forbes, Esq.
FRIEDEN, UNREIN & FORBES LLP
1414 SW Ashworth Pl., Suite 201
Topeka, Kansas 66604
Tel: (785) 354-1100
Email: rforbes@fuflaw.com
About Dynamic Drywall
Dynamic Drywall Inc., based in Wichita, Kansas, filed for Chapter
11 bankruptcy (Bankr. D. Kan. Case No. 14-11131) on May 21, 2014.
Judge Robert E. Nugent presides over the case. Mark J. Lazzo,
P.A., serves as the Debtor's counsel. In its petition, Dynamic
Drywall estimated $1 million to $10 million in assets and $0 to
$50,000 in liabilities. The petition was signed by Randall G.
Salyer, president.
ENNIS WEST END: Case Summary & 6 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Ennis West End, Inc.
2200 West Lake Bardwell
Ennis, TX 75119
Case No.: 15-33620
Chapter 11 Petition Date: September 1, 2015
Court: United States Bankruptcy Court
Northern District of Texas (Dallas)
Judge: Hon. Harlin DeWayne Hale
Debtor's Counsel: Areya Holder, Esq.
HOLDER LAW
800 W. Airport Freeway, Suite 800
Irving, TX 75062
Tel: 972-438-8800
Fax: 972-438-8825
Email: areya@holderlawpc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Anwar T. Ahmand, president.
A list of the Debtor's six largest unsecured creditors is available
for free at http://bankrupt.com/misc/txnb15-33620.pdf
FAIRWAY GROUP: S&P Revises Outlook to Neg. & Affirms 'B-' CCR
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on New York
City-based Fairway Group Holdings Corp. to negative from stable and
affirmed its 'B-' corporate credit rating on the company.
At the same time, S&P affirmed its 'B-' issue-level ratings on
Fairway's $40 million 2017 revolver and $275 million 2018 term
loan. S&P also revised the recovery rating to '4' from '3'. The
'4' recovery rating reflects S&P's expectation for average recovery
in the event of payment default in the upper half of the 30% to 50%
range.
The outlook revision on Fairway reflects continued weak operating
results, as competitors including Whole Foods continue to take
market share specifically from the company's flagship Upper East
Side location. Amid eroding profitability and free cash flow
generation, Fairway has also had to scale back on formerly
aggressive expansion plans related to a high-growth strategy, S&P
believes in part to reduce capital spending and preserve cash for
debt repayment. For instance, a significant cost this quarter
included $3.7 million to terminate a notable expansion into
Manhattan's new Hudson Yards complex, limiting the company's
already narrow competitive position in the New York area.
The negative outlook reflects S&P's view that it would lower the
rating if Fairway was unable to improve its performance and avoid
covenant violations, perhaps through equity infusions. A downgrade
would reflect S&P's view that weak performance and lack of third
party capital would lead to an unsustainable capital structure.
Regardless, S&P expects continued performance strain and lack of
debt repayment to continue pressuring credit metrics and free cash
flow in the coming six months.
S&P could lower the rating to the 'CCC' category if continued
negative same-store sales and margin pressure hinder the company's
ability to remain compliant with its leverage covenant, either
because it cannot obtain an immediate equity cure through its
financial sponsor owners, successfully refinance, outgrow its
capital structure, or amend covenants. A downgrade could also
occur if liquidity continues to remain pressured. For example, the
company cannot absorb low-probability adversities, even when
factoring in capital spending cuts or asset sales.
Given S&P's current forecast, it believes Fairway will remain
highly leveraged with thin credit protection metrics and do not
believe an outlook revision to stable is likely over the coming
year. Any consideration for a stable outlook would be predicated
on restoring a covenant cushion of at least 10% on a sustained
basis and generating positive free operating cash flow. S&P views
this scenario as unlikely given its performance expectations.
FEDERAL-MOGUL CORP: Bank Debt Trades at 2% Off
----------------------------------------------
Participations in a syndicated loan under which Federal-Mogul Corp
is a borrower traded in the secondary market at 97.71 cents-on
the-dollar during the week ended Friday, August 28, 2015, according
to data compiled by LSTA/Thomson Reuters MTM Pricing and reported
in the September 1, 2015, edition of The Wall Street Journal. This
represents a decrease of 0.69 percentage points from the previous
week, The Journal relates. Federal-Mogul Corp pays 300 basis
points above LIBOR to borrow under the facility. The bank loan
matures on April 4, 2018, and carries Moody's B1 rating and
Standard & Poor's B rating. The loan is one of the biggest gainers
and losers among 235 widely quoted syndicated loans with five or
more bids in secondary trading for the week ended Friday, August
28.
FLEXERA SOFTWARE: S&P Affirms B Rating Following $45MM Loan Add-On
------------------------------------------------------------------
Standard & Poor's Ratings Services announced that it affirmed its
ratings on Flexera Software LLC (B/Stable/--) following the
company's announcement that it would increase its first-lien term
loan due 2020 by $45 million. The company will use net proceeds
from the transaction to fund an acquisition.
The ratings reflect S&P's view of Flexera's modest business
position in the highly competitive integrated information
technology solutions, license, and compliance tracking space.
The ratings also reflect S&P's view of the company's
trailing-12-month adjusted leverage in the mid-8x area, pro forma
for the proposed $45 million first lien add-on, with preferred
equity representing about 2x of the adjusted leverage.
RATINGS LIST
Ratings Affirmed
Flexera Software LLC
Corporate credit rating B/Stable/--
$390 mil 1st lien term ln* B
Recovery rating 3H
*Following $45 million add-on
FORTESCUE METALS: Bank Debt Trades at 20% Off
---------------------------------------------
Participations in a syndicated loan under which Fortescue Metals
Group Ltd is a borrower traded in the secondary market at 79.70
cents-on-the-dollar during the week ended Friday, August 28, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the September 1, 2015, edition of The Wall Street
Journal. This represents a decrease of 2.35 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 235 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, August 28.
GETTY IMAGES: Bank Debt Trades at 37% Off
-----------------------------------------
Participations in a syndicated loan under which Getty Images Inc.
is a borrower traded in the secondary market at 62.90
cents-on-the-dollar during the week ended Friday, August 28, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the September 1, 2015, edition of The Wall Street
Journal. This represents a decrease of 2.18 percentage points from
the previous week, The Journal relates. Getty Images Inc. pays 350
basis points above LIBOR to borrow under the facility. The bank
loan matures on October 14, 2019, and carries Moody's B2 rating and
Standard & Poor's B- rating. The loan is one of the biggest
gainers and losers among 235 widely quoted syndicated loans with
five or more bids in secondary trading for the week ended Friday,
August 28.
GLOBALSTAR INC: Issues 9.3 Million Common Shares to Terrapin
------------------------------------------------------------
Globalstar, Inc., settled with Terrapin Opportunity, L.P. on the
purchase of 9,336,160 shares of its voting common stock under a
purchase agreement on Aug. 31, 2015, for an aggregate purchase
price of $15 million. The Company received estimated net proceeds
from the sale of these shares of approximately $14.9 million after
deducting its estimated offering expenses.
As previously disclosed in the Company's Current Report on
Form 8-K filed Aug. 10, 2015, the Company entered into a Common
Stock Purchase Agreement dated as of Aug. 7, 2015, with Terrapin
pursuant to which the Company may, from time to time and subject to
certain conditions, require Terrapin to purchase up to $75 million
of shares of its voting common stock over the 24-month term.
"Basing our opinion on the foregoing, we are of the opinion that,
upon the issuance by the Company of the Common Stock pursuant to
the Agreement against payment of the agreed consideration, the
Common Stock will be duly authorized, validly issued, fully paid
and nonassessable," says Taft Stettinius & Hollister LLP, counsel
for the Company in connection with the registration of the Shares.
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and
data services. Globalstar offers these services to commercial and
recreational users in more than 120 countries around the world.
The company's products include mobile and fixed satellite
telephones, simplex and duplex satellite data modems and flexible
service packages. Many land based and maritime industries benefit
from Globalstar with increased productivity from remote areas
beyond cellular and landline service. Globalstar customer
segments include: oil and gas, government, mining, forestry,
commercial fishing, utilities, military, transportation, heavy
construction, emergency preparedness, and business continuity as
well as individual recreational users. Globalstar data solutions
are ideal for various asset and personal tracking, data monitoring
and SCADA applications.
Globalstar reported a net loss of $463 million in 2014, a net loss
of $591 million in 2013 and a net loss of $112.19 million in 2012.
As of June 30, 2015, the Company had $1.2 billion in total assets,
$1 billion in total liabilities and $223.7 million in total
stockholders' equity.
GREYSTONE LOGISTICS: Posts $57,000 Net Income for Fiscal 2015
-------------------------------------------------------------
Greystone Logistics, Inc., filed with the Securities and Exchange
Commission its annual report on Form 10-K disclosing net income
attributable to common stockholders of $57,565 on $22.3 million of
sales for the year ended May 31, 2015, compared to net income
attributable to common stockholders of $2.6 million on $23.4
million of sales for the year ended May 31, 2014.
As of May 31, 2015, the Company had $14.4 million in total assets,
$15.5 million in total liabilities and a total deficit of $1.1
million.
Greystone had a working capital deficit of $(30,559) at May 31,
2015. The exclusion of accrued interest payable to Robert B.
Rosene, Jr., a member of Greystone's board of directors, in the
amount of $2,143,275 as of May 31, 2015 results in working capital
of $2,112,716.
A full-text copy of the Form 10-K is available for free at:
http://is.gd/AU441s
About Greystone Logistics
Tulsa, Okla.-based Greystone Logistics, Inc. (OTC BB: GLGI.OB -
News) -- http://www.greystonelogistics.com/-- manufactures and
sells plastic pallets through its wholly owned subsidiary,
Greystone Manufacturing, LLC. Greystone sells its pallets through
direct sales and a network of independent contractor distributors.
Greystone also sells its pallets and pallet leasing services to
certain large customers direct through its President, Senior Vice
President of Sales and Marketing and other employees.
GROVE ESTATES: M&T Bank Withdraws Objection to Sale of Properties
-----------------------------------------------------------------
Manufacturers and Traders Trust Company notified the U.S.
Bankruptcy Court for the Middle District of Pennsylvania that it
has withdrawn its objection to Grove Estates LP's motion to sell
real estate, pursuant to a stipulation.
The Debtor filed a motion on June 22, 2015, to sell eight lots on
Darlene Street, York Township, York County, Pennsylvania.
The stipulation entered between the Debtor and M&T Bank provides
that, among other things
1. M&T Bank withdraws its objection to the Debtor's motion;
2. Sale proceeds will be distributed to pay all closing costs,
real estate taxes and payment of quarterly trustee fees;
3. Proceeds from the sale of four lots of the real estate (first
closing Aug. 31, 2015) after payment of closing expenses, will be
paid to M&T Bank to partially collateralize letter of credit
obligation in the amount of $192,830. Prior to, or, at first
closing, the Debtor will add to the sale proceeds held by
M&T Bank immediately available funds in an amount equal to the
difference between the sale proceeds held by M&T Bank immediately
available funds in an amount equal to the difference between the
sale proceeds held by M& and the letter of credit to fully
collateralize the letter of credit; and
4. The sale proceeds from the sale of the set two lots of the
real property (on or before July 15, 2016 Third Closing), after
payment of closing expenses will be paid to M&T Bank to pay the
loan in full.
As reported in the Troubled Company Reporter on July 30, 2015, M&T
Bank objected to the Debtor's motion to sell certain real property
numbered as 305, 315, 325, 330, 335, 340, 345, and 360 Darleen
Street, York Township, in the County of York, Pennsylvania, to NADU
Construction for $375,000. M&T Bank asserts that its claims,
totaling more than $3.5 million, are secured by mortgages against
the Real Estate. M&T said it cannot consent to the sale of the
Real Estate and the distribution of the sale proceeds proposed in
Debtor's motion as the Debtor proposes to distribute the remaining
proceeds from the sale to Debtor's Counsel, in trust, rather than
being paid directly to M&T Bank.
About Grove Estates
Grove Estates, LP, an operator of land development business in
York, Pennsylvania, sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Pa. Case No. 14-04368) on Sept. 23,
2014. The case is assigned to Judge Robert N Opel II.
The Debtor's counsel is Robert L Knupp, Esq., at Smigel, Anderson &
Sacks, LLP, in Harrisburg, Pennsylvania. The Debtor's accountant
is Francis C. Musso, CPA, MPA, P.C.
Following a hearing on June 3, 2015, Judge Robert N. Opel, II,
entered an order confirming Grove Estates, L.P.'s Chapter 11 plan,
as filed on Nov. 3, 2014, and modified on April 27, 2015. Judge
Opel ruled that the Amended Plan has satisfied the requirements of
confirmation set forth in 11 U.S.C. Sec. 1129(a).
Secured creditors Susquehanna Bank and M&T Bank (Class 2) voted to
accept the Plan. Unsecured claims and equity interests are
unimpaired under the Plan.
GYMBOREE CORP: Bank Debt Trades at 35% Off
------------------------------------------
Participations in a syndicated loan under which Gymboree Corp is a
borrower traded in the secondary market at 65.75
cents-on-the-dollar during the week ended Friday, August 28, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the September 1, 2015, edition of The Wall Street
Journal. This represents a decrease of 1.42 percentage points from
the previous week, The Journal relates. Gymboree Corp pays 350
basis points above LIBOR to borrow under the facility. The bank
loan matures on February 23, 2018. Moody's rates the loan 'B3' and
Standard & Poor's gave a 'CCC+' rating to the loan. The loan is
one of the biggest gainers and losers among 235 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, August 28.
HALCON RESOURCES: Moody's Assigns Caa2 Rating on $1.02BB Notes
--------------------------------------------------------------
Moody's Investors Service assigned a Caa2 rating to Halcon
Resources Corporation's $1.02 billion senior secured third lien
notes due 2022, issued in exchange for $1.57 billion of its
existing senior unsecured notes. Moody's downgraded Halcon's
senior secured second lien notes to B3 from B2. Moody's affirmed
Halcon's Caa2 Corporate Family Rating (CFR), Caa2-PD Probability of
Default Rating (PDR), Caa3 senior unsecured note rating, and SGL-3
Speculative Grade Liquidity Rating. The rating outlook was revised
to stable from negative.
Moody's views Halcon's exchange of third lien debt for unsecured
debt as a distressed exchange, which is an event of default under
Moody's definition of default. It should be noted that Halcon's
earlier exchange of equity for unsecured debt in April 2015 was
also a distressed exchange and event of default under Moody's
definition of default. Moody's views this more recent distressed
exchange (i.e., third lien debt for unsecured debt) as a
continuation of the original April 2015 default event. As a
result, Moody's will not now append Halcón's PDR with an "/LD"
designation since that designation was already appended in April
2015.
Assignments:
Issuer: Halcon Resources Corporation
Senior Secured Third Lien Notes, Assigned Caa2 (LGD4)
Rating Actions:
Issuer: Halcon Resources Corporation
Corporate Family Rating (Local Currency), Affirmed Caa2
Probability of Default Rating, Affirmed Caa2-PD
Senior Secured Second Lien Notes, Downgraded to B3 (LGD2) from
B2 (LGD2)
Senior Unsecured Notes, Affirmed Caa3 (LGD5)
Speculative Grade Liquidity Rating (SGL), affirmed SGL-3
Outlook Actions:
Outlook, Revised to Stable from Negative
RATINGS RATIONALE
The third lien notes are rated Caa2 under Moody's Loss Given
Default Methodology, at the same level as Halcon's CFR, reflecting
their priority claim over the unsecured notes. The second lien
notes are rated B3, two notches above Halcon's CFR, reflecting
those notes' priority claim to the company's assets over the third
lien notes and unsecured notes, partially offset by the senior
secured revolving credit facility's first lien claim to the assets.
Halcon's unsecured notes are rated Caa3, which is one notch below
the company's Caa2 CFR. This notching reflects the priority claim
given to the senior secured revolving credit facility, the second
lien notes, and the third lien notes.
Halcon's Caa2 CFR reflects risk to the company's business profile
because of high leverage and limited financial flexibility, despite
roughly $550 million in debt reduction achieved through its
exchange of third lien debt for unsecured debt. Moody's expects
Halcón's debt-to-average daily production metric to exceed $80,000
per barrel of oil equivalent (boe) per day and debt-to-proved
developed (PD) reserves figure to exceed $40 per boe over the next
12 months. Halcon's rating also reflects the elevated risk that
the company will have difficulty growing out of its levered capital
structure as it continues to be burdened by high interest expense
and as the reduced roughly $350 million capital expenditures
budgeted for 2015 will impact production and EBITDA.
Halcon's SGL-3 Speculative Grade Liquidity Rating reflects its
adequate liquidity profile over the next 12 months. Pro forma as
of June 30, 2015, Halcon had over $800 million of liquidity
including cash and availability under its revolving credit facility
with an expected $850 million borrowing base.
The stable rating outlook reflects the company's adequate liquidity
at a time of low commodity prices.
A downgrade is possible if liquidity falls below $200 million. An
upgrade will not be considered until the company achieves a
substantial reduction in debt resulting in a more sustainable
capital structure. EBITDA to Interest Expense maintained above
2.0x combined with adequate liquidity could result in a ratings
upgrade.
The principal methodology used these ratings was Global Independent
Exploration and Production Industry published in December 2011.
Halcon Resources Corporation is an independent exploration and
production (E&P) company focused on onshore oil and gas production
in unconventional liquids-rich basins and fields. The company
primarily operates in North Dakota and Texas and has its
headquarters in Houston, Texas.
HCA INC: Fitch Hikes Issuer Default Rating to 'BB'
--------------------------------------------------
Fitch Ratings has upgraded HCA Inc.'s (HCA) Issuer Default Rating
(IDR) to 'BB' from 'BB-'. The Rating Outlook is Stable. A full list
of rating actions follows at the end of this release. The ratings
apply to $29.7 billion of debt outstanding at June 30, 2015.
KEY RATING DRIVERS
Industry-Leading Financial Flexibility: HCA's financial flexibility
has improved significantly in recent years as a result of organic
growth in the business as well as proactive management of the
capital structure. The company has industry-leading operating
margins and generates consistent and ample discretionary FCF
(operating cash flows less capital expenditures and distributions
to minority interests).
Transition to Public Ownership Complete: The sponsors of a 2006 LBO
previously directed HCA's financial strategy, but their ownership
stake decreased steadily following a 2011 IPO and HCA has appointed
four independent members to the 11-member board of directors (BOD),
bringing the total to seven.
More Predictable Capital Deployment: Under the direction of the LBO
sponsors, HCA's ratings were constrained by shareholder-friendly
capital deployment; the company has funded $7.5 billion in special
dividends and several large repurchases of the sponsors' shares
since 2010. Fitch thinks HCA will have a more consistent and
predictable approach to funding shareholder payouts under public
ownership and an independent BOD.
Expect Stable Leverage: Fitch forecasts that HCA will produce
discretionary FCF (operating cash flows less capital expenditures
and distributions to minority interests) of about $1.7 billion in
2015, and will prioritize use of cash for organic investment in the
business, acquisitions and share repurchases. At 3.8x, HCA's gross
debt/EBITDA is below the average of the group of publicly traded
hospital companies, and Fitch does not believe that there is a
compelling financial incentive for HCA to apply cash to debt
reduction.
Secular Headwinds to Operating Outlook: Measured by revenues, HCA
is the largest operator of for-profit acute care hospitals in the
country, with a broad geographic footprint. The company benefited
from this favorable operating profile during a period of several
years of weak organic operating trends in the for-profit hospital
industry. Although operating trends improved industrywide starting
in mid-2014, secular challenges, including a shift to lower-cost
care settings and health insurer scrutiny of hospital care, are a
continuing headwind to organic growth.
Decent but Slower Growth in Q2'15: Although organic volume growth
of 4.9% was substantial for HCA in the Q2'15, growth in same
hospital admissions adjusted for outpatient activity for the
company was 190 bps less than the first quarter 2015 and 70 bps
less than fourth quarter 2014. This mirrored the trend in the rest
of the industry; growth in same hospital adjusted admissions across
the Fitch-rated group of for-profit hospital providers dropped 210
bps to 2.8% on average versus 4.9% in first quarter 2015.
Expect Ongoing Tapering in 2H'15: Fitch expects slower organic
growth in patient volumes in the for-profit hospital sector in the
second half of 2015 but also believes that the recent rebound in
growth has some legs, and is unlikely to revert to the depressed
levels experienced for much of 2010-2013. This is partly because
the hospital industry seems to be finally emerging from a prolonged
and delayed effect of the great recession. In addition, management
initiatives to sustainably boost volumes in light of secular
headwinds to utilization of inpatient hospital care, such as
expansion of outpatient services and capabilities, will help
sustain growth.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for HCA include:
HCA's very strong organic patient volume growth (same hospital
growth in adjusted admissions) in the first half of 2015, supported
by a ramp up of Affordable Care Act related benefits and improving
economic conditions, will taper to a more normalized 2-3% later in
the year;
Modest Operating EBITDA margin compression of less than 100 bps in
later 2015 through 2016, primarily the result of negative operating
leverage as volume growth rates normalize and pricing trends remain
stable;
Fitch forecasts EBITDA of $7.9 billion and discretionary FCF of
$1.7 billion in 2015 for HCA, with capital expenditures of about
$2.5 billion. Higher capital spending is related to growth projects
that support the expectation of EBITDA growth through the forecast
period;
The majority of discretionary FCF is directed towards share
repurchases and acquisitions, and most debt due in 2015-2018 is
refinanced resulting in gross debt/EBITDA of between 3.5x-4.0x
through the forecast period.
RATING SENSITIVITIES
Maintenance of a 'BB' IDR will require HCA to operate with debt
leverage sustained around 4.0x and with a FCF-margin of 4-5% or
higher. A downgrade of the IDR to 'BB-' is unlikely in the near
term, since these targets afford HCA with significant financial
flexibility to increase acquisitions and organic capital investment
while still returning a substantial amount of cash to shareholders
through share repurchases.
An upgrade to a 'BB+' IDR would require HCA to maintain debt
leverage of 3.0x-3.5x. In addition to a commitment to operate with
lower leverage, sustained improvement in recently better organic
operating trends in the hospital industry would support a higher
rating for HCA. Evidence of an improved operating trend would
include positive growth in organic patient volumes, sustained
improvement in the payor mix with fewer numbers of uninsured
patients and correspondingly lower bad debt expense, and limited
concern that profitability will suffer from drops in reimbursement
rates.
LIQUIDITY
At June 30, 2015, HCA's liquidity included $673 million of cash on
hand, $2.7 billion of available capacity on its bank facility
revolving loans excluding $43 million outstanding LOCs, and LTM
discretionary FCF of about $2.1 billion. HCA's EBITDA/gross
interest expense is solid for the 'BB' rating category at 4.7x and
the company had about a 45% EBITDA cushion under its bank facility
financial maintenance covenant, which requires debt net of cash
maintained at or below 6.75x EBITDA.
Fitch believes that HCA's favorable operating outlook and financial
flexibility afford the company good market access to refinance
upcoming maturities. Near-term debt maturities include $57 million
of bank term loans and $150 million of HCA Inc. unsecured notes
maturing in 2015 and $114 million bank term loans and $1 billion
unsecured notes maturing in 2016.
FULL LIST OF RATING ACTIONS
Fitch has taken the following rating actions:
HCA, Inc.
-- IDR upgraded to 'BB' from 'BB-';
-- Senior secured credit facilities (cash flow and asset backed)
affirmed at 'BB+'; assigned 'RR1';
-- Senior secured first lien notes affirmed at 'BB+'; assigned
'RR1';
-- Senior unsecured notes upgraded to 'BB' from 'BB-'; assigned
'RR4'.
HCA Holdings Inc. (Hold Co.)
-- IDR upgraded to 'BB' from 'BB-';
-- Senior unsecured notes upgraded to 'B+' from 'B'; assigned
'RR6'.
The Rating Outlook is Stable.
Total debt at June 30, 2015 was approximately $27.7 billion, which
was primarily comprised of $8.3 billion of first-lien secured bank
debt, $11.7 billion of first-lien secured notes, $8.9 billion of
HCA Inc. unsecured notes, and $1 billion of Hold Co. unsecured
notes. HCA's bank debt is comprised of approximately $5.7 billion
in term loans maturing through June 2020, a $2 billion capacity
cash flow revolving loan, and a $3.25 billion capacity asset backed
revolving loan (ABL facility).
The secured debt rating is one notch above the IDR, illustrating
Fitch's expectation of superior recovery prospects in the event of
default. The first-lien obligations, including the bank debt and
the first-lien secured notes, are guaranteed by all material wholly
owned U.S. subsidiaries of HCA, Inc. that are 'unrestricted
subsidiaries' under the HCA Inc. unsecured note indenture dated
Dec. 16, 1993.
Because of restrictions on the guarantor group as stipulated by the
1993 indenture, the credit facilities and first-lien notes are not
100% secured. At June 30, 2015, the subsidiary guarantors of the
first-lien obligations comprised about 45% of consolidated total
assets. The ABL facility has a first-lien interest in substantially
all eligible accounts receivable (A/R) of HCA, Inc. and the
guarantors, while the other bank debt and first-lien notes have a
second-lien interest in certain of the receivables.
The HCA Inc. unsecured notes are rated at the same level as the IDR
despite the substantial amount of secured debt to which they are
subordinated, with secured leverage of 2.5x at June 30, 2015. Fitch
often notches ratings on unsecured debt obligations below the IDR
level when secured debt leverage is greater than 2.5x. If HCA were
to layer more secured debt into the capital structure, such that
secured debt leverage is greater than 3.0x, it could result in a
downgrade of the rating on the HCA Inc. unsecured notes, to 'BB-'.
The bank agreements include a 3.75x first lien secured leverage
ratio debt incurrence test.
The HCA Holdings Inc. unsecured notes are rated two-notches below
the IDR to reflect the substantial structural subordination of
these obligations, which are subordinate in right of payment to all
debt outstanding at the HCA Inc. level. At June 30, 2015, leverage
at the HCA Inc. and HCA Holdings Inc. level was 3.6x and 3.8x,
respectively.
HOWREY LLP: Claims for Unpaid Rent Entitled to Priority
-------------------------------------------------------
Judge Dennis Montali of the United States Bankruptcy Court for the
Northern District of California concluded that claims of landlords
for unpaid rent accruing during the interval between the filing of
an involuntary petition and the order for relief are entitled to
gap priority, and thus overruled objections to the landlords'
claims.
Five landlords or sublessors filed claims based upon Debtor Howrey
LLC's rejection of their leases or subleases after June 6, 2011,
when an order for relief was entered on Howrey's voluntary
conversion of its Chapter 7 bankruptcy case to Chapter 11. The
Landlords included in their claims, and asserted priority for, the
rent accrued during the period between the filing of the
involuntary Chapter 7 petition and the order for relief.
On June 22, 2015, the Official Committee of Unsecured Creditors
objected to the Landlords' claims, focusing only on the assertion
of statutory priority for the claims.
Judge Montali rejected the Committee's theory that the Landlords'
claims arose at the time of execution of the respective leases and
that the Landlords' claims did not arise in the ordinary course of
Howrey's business after the petition date. Accordingly, Judge
Montali concluded that the Landlords' claims are entitled to
statutory priority under Section 507(a)(3).
The case is In re HOWREY LLP, Chapter 11, Debtor, BANKRUPTCY CASE
NO. 11-31376DM (Bankr. N.D. Cal.).
A full-text copy of Judge Montali's August 11, 2015 memorandum
decision is available at http://is.gd/Fvqikufrom Leagle.com.
About Howrey LLP
Three creditors filed an involuntary Chapter 7 petition (Bankr.
N.D. Cal. Case No. 11-31376) on April 11, 2011, against the
remnants of the Washington-based law firm Howrey LLP. The filing
was in San Francisco, where the firm had an office. The firm
previously was known as Howrey & Simon and Howrey Simon Arnold &
White LLP. The firm at one time had more than 700 lawyers in 17
offices. The partners voted to dissolve in March 2011.
The firm specialized in antitrust and intellectual-property
matters. The three creditors filing the involuntary petition
together have $36,600 in claims, according to their petition.
The involuntary chapter 7 petition was converted to a chapter 11
case in June 2011 at the request of the firm. In its schedules
filed in July, the Debtor disclosed assets of $138.7 million and
liabilities of $107.0 million.
Representing Citibank, the firm's largest creditor, is Kelley
Cornish, Esq., a partner at Paul, Weiss, Rifkind, Wharton &
Garrison. Representing Howrey is H. Jason Gold, Esq., a partner at
Wiley Rein.
The Official Committee of Unsecured Creditors is represented in the
case by Bradford F. Englander, Esq., at Whiteford, Taylor And
Preston LLP.
In September 2011, Citibank sought conversion of the Debtor's case
to Chapter 7 or, in the alternative, appointment of a Chapter 11
Trustee. The Court entered an order appointing a Chapter 11
Trustee. In October 2011, Allan B. Diamond was named as Trustee.
He is represented by Andrew Baxter Ryan, Esq., and Stephen Todd
Loden, Esq., at Diamond McCarthy LLP as counsel.
HYPNOTIC TAXI: Creditors' Meeting Adjourned to Sept. 25
-------------------------------------------------------
The meeting of creditors of Hypnotic Taxi LLC has been adjourned to
Sept. 25, 2015, at 1:00 p.m., according to a filing with the U.S.
Bankruptcy Court for the Eastern District of New York.
The meeting, which was supposed to be held last week, will take
place at the Office of the U.S. Trustee, Conrad B. Duberstein U.S.
Courthouse, Room 2579, 271-C Cadman Plaza East, in Brooklyn, New
York.
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 Hypnotic Taxi
Hypnotic Taxi LLC and 21 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. E.D.N.Y. Lead Case No. 15-43300) on
July 22, 2015. The petition was signed by Evgeny Freidman as sole
and managing member.
Klestadt Winters Jureller Southard & Stevens LLP serves as the
Debtors' counsel. Judge Carla E. Craig presides over the case.
The Debtors each own either two or three medallions issued by the
New York City Taxi and Limousine Commission that permit taxi
services to be performed by the Debtors.
HYPNOTIC TAXI: U.S. Trustee Forms Three-Member Committee
--------------------------------------------------------
The U.S. Trustee for Region 2 appointed three creditors of Hypnotic
Taxi LLC to serve on the official committee of unsecured creditors.
The unsecured creditors are:
(1) Juan Abreu
765 FDR Drive, Apt. 12E
New York, NY 10009
Telephone: 212-460-5711
(2) American Transit Insurance Company
One Metro Tech Center-North, 8th Fl.
Brooklyn, NY 11201
Attention: Michael Castronovo, COO
Telephone: 212-845-8752
(3) Jeremy Joseph
1673 President Street
Brooklyn, NY 11213
Telephone: 718-781-6341
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 Hypnotic Taxi
Hypnotic Taxi LLC and 21 of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. E.D.N.Y. Lead Case No. 15-43300) on
July 22, 2015. The petition was signed by Evgeny Freidman as sole
and managing member.
Klestadt Winters Jureller Southard & Stevens LLP serves as the
Debtors' counsel. Judge Carla E. Craig presides over the case.
The Debtors each own either two or three medallions issued by the
New York City Taxi and Limousine Commission that permit taxi
services to be performed by the Debtors.
INFORMATICA LLC: S&P Assigns 'B' CCR, Outlook Negative
------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Redwood City, Calif.-based Informatica LLC. The
outlook is negative.
At the same time, S&P assigned its 'B' issue-level rating and '3'
recovery rating to the company's $1.71 billion and EUR250 million
senior secured term loans due 2022 and to its $150 million
revolving credit facility due 2020. The '3' recovery rating
indicates S&P's expectation for meaningful (50%-70%; lower half of
the range) recovery in the event of a payment default.
S&P also assigned its 'CCC+' issue-level rating and '6' recovery
rating to the company's $650 million senior unsecured notes due
2023. The '6' recovery rating indicates S&P's expectation for
negligible (0%-10%) recovery in the event of a payment default.
Private equity firm Permira and the Canada Pension Plan Investment
Board, along with strategic investors Microsoft Corp. and
Salesforce Ventures, closed their leveraged buyout of U.S.-based
Informatica LLC, a global provider of enterprise data integration
software and services.
"The rating on Informatica reflects our forecast that adjusted
leverage will fall to less than 8x over the next 12 to 18 months,"
said Standard & Poor's credit analyst Christian Frank. "The rating
also reflects our view of the company's narrow market focus and
competitive operating environment, but also its market leadership
positions and good exposure to high-growth segments," Mr. Frank
added.
The negative outlook reflects S&P's view that Informatica's high
leverage, as well as the risks associated with implementing its
targeted cost savings, could lead to lower ratings over the next 12
to 18 months.
J. CREW: Bank Debt Trades at 20% Off
------------------------------------
Participations in a syndicated loan under which J. Crew is a
borrower traded in the secondary market at 80.00
cents-on-the-dollar during the week ended Friday, August 28, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the September 1, 2015, edition of The Wall Street
Journal. This represents a decrease of 1.71 percentage points from
the previous week, The Journal relates. J. Crew pays 300 basis
points above LIBOR to borrow under the facility. The bank loan
matures on February 27, 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 235 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, August 28.
LOCAL CORPORATION: Creditors' Panel Hires Robins Kaplan as Counsel
------------------------------------------------------------------
The Official Committee of Unsecured Creditors of Local Corporation
seeks authorization from the Hon. Scott C. Clarkson of the U.S.
Bankruptcy Court for the Central District of California to retain
Robins Kaplan LLP as bankruptcy counsel to the Committee, effective
July 7, 2015.
The Committee requires Robins Kaplan to:
(a) advise the Committee on matters arising in the
administration of the Debtor's estate;
(b) assist the Committee with an investigation of the acts,
conduct, assets, liabilities and financial condition of the
Debtor, the operation of the Debtor's business and the
desirability of the continuance of such business and such
other matters relevant to the case or to the formulation of
a plan;
(c) assist in the formulation of any plan;
(d) appear for, prosecute, defend and represent the Committee's
interest— the interests of general unsecured
creditors—in
the proceedings arising in, or related to, this case;
(e) advise the Committee generally with respect to its
obligations;
(f) assist in the preparation of such pleadings, applications,
motions, complaints, orders and other documents as may be
reasonably required;
(g) pursue, if appropriate, potential causes of action on
behalf of the Committee acting for the estate, including
preferences, fraudulent transfers, other possible avoidance
actions, and litigation pending, or to be commenced, in
state courts; and
(h) such other services as are typically rendered by counsel
for the Committee in a chapter 11 case.
Robins Kaplan will be paid at these hourly rates:
Partners $400-$850
Principals $400-$650
Counsel/Of Counsel $390-$925
Associates $255-$575
Paralegals $80-$295
Investigators/Science
Advisors/Financial
Experts, etc. $150-$450
Robins Kaplan will also be reimbursed for reasonable out-of-pocket
expenses incurred.
David B. Shemano, partner of Robins Kaplan, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
Robins Kaplan can be reached at:
David B. Shemano, Esq.
ROBINS KAPLAN LLP
2049 Century Park East Ste 3400
Los Angeles, CA 90067
Tel: (310) 229-5894
E-mail: dshemano@robinskaplan.com
About Local Corporation
Local Corporation, a publicly traded Delaware corporation (NASDAQ
symbol LOCM), is in the business of providing search results to
consumers who are searching online for local businesses, products
and services. Founded in 1999, the Irvine, California-based
company went public in 2004 and has been one of the fastest growing
online local media businesses for a number of years, and for the
past four years it has been listed by Deloitte on its Technology
Fast 500. The Company's search results are provided through the
Company's flagship Local.com Web site and through other proprietary
Web sites, and they are also delivered to a network of over 1,600
other Web sites that rely on search syndication services to provide
local search results to their own users. The Company generates
revenue from ad units placed alongside its search results, which
include pay-per-click, pay-per-call, and display ad units.
The Company reported a net loss of $5.50 million on $83.1 million
of revenue for the year ended Dec. 31, 2014, compared with a net
loss of $10.4 million on $94.4 million of revenue in the prior
year. The Company's balance sheet at March 31, 2015, showed $36.8
million in total assets, $25.7 million in total liabilities, and
stockholders' equity of $11.2 million.
Local Corp. filed a Chapter 11 bankruptcy petition (Bankr. C.D.
Cal. Case No. 15-13153) in Santa Ana, California, on June 23, 2015.
The Debtor disclosed $16,141,222 in assets and $29,519,418 in
liabilities as of the Chapter 11 filing.
The case is assigned to Judge Scott C. Clarkson. The Debtor tapped
Winthrop Couchot as counsel.
Robins Kaplan LLP represents as counsel to the Official Committee
of Unsecured Creditors.
LOCAL CORPORATION: Creditors' Panel Taps FTI Consulting as Advisor
------------------------------------------------------------------
The Official Committee of Unsecured Creditors of Local Corporation
seeks authorization from the Hon. Scott C. Clarkson of the U.S.
Bankruptcy Court for the Central District of California to retain
FTI Consulting, Inc. as financial advisor to the Committee.
The Committee requires FTI Consulting to:
(a) advise the Committee on matters arising in the
administration of the Debtor's estate;
(b) assist in the review of financial related disclosures
required by the Court, including the Schedules of Assets
and Liabilities, the Statement of Financial Affairs and
Monthly Operating Reports;
(c) assist with the assessment and monitoring of the Debtor's
short term cash flow, liquidity, and operating results;
(d) assist with the review of any proposed key employee
retention or other employee benefit programs;
(e) assist with the review of the Debtor's analysis of core
business assets and the potential disposition or
liquidation of non-core assets;
(f) assist with the review of the Debtor's cost/benefit
analysis with respect to the affirmation or rejection of
various executory contracts and leases;
(g) assist in the review and monitoring of the Debtor's asset
sale process, including, but not limited to an assessment
of the adequacy of the marketing process, completeness of
any buyer lists, review and quantifications of any bids;
(h) assist in the review of other financial information
prepared by the Debtor, including, but not limited to, cash
flow projections and budgets, business plans, cash receipts
and disbursement analysis, asset and liability analysis,
and the economic analysis of proposed transactions for
which Court approval is sought;
(i) assist in the review and/or preparation of information and
analysis necessary for the confirmation of a plan and
related disclosure statement in these chapter 11
proceedings;
(j) assist in the prosecution of Committee responses/objections
to the Debtor's motions, including attendance at
depositions and provision of expert reports/testimony on
case issues as required by the Committee; and
(k) render such other general business consulting or such other
assistance as the Committee or its counsel may deem
necessary that are consistent with the role of a financial
advisor and not duplicative of services provided by other
professionals in this proceeding.
FTI Consulting will perform all services to the Committee for a
fixed fee of $150,000, plus reimbursement of actual and necessary
expenses incurred by FTI Consulting, including legal fees related
to this retention application and future fee applications as
approved by the Court.
Andrew Hinkelman, senior managing director of FTI Consulting,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and their
estates.
FTI Consulting can be reached at:
Andrew Hinkelman
FTI CONSULTING, INC.
1 Front St # 1500
San Francisco, CA 94111
Tel: (415) 283-4214
E-mail: andrew.hinkelman@fticonsulting.com
About Local Corporation
Local Corporation, a publicly traded Delaware corporation (NASDAQ
symbol LOCM), is in the business of providing search results to
consumers who are searching online for local businesses, products
and services. Founded in 1999, the Irvine, California-based
company went public in 2004 and has been one of the fastest growing
online local media businesses for a number of years, and for the
past four years it has been listed by Deloitte on its Technology
Fast 500. The Company's search results are provided through the
Company's flagship Local.com Web site and through other proprietary
Web sites, and they are also delivered to a network of over 1,600
other Web sites that rely on search syndication services to provide
local search results to their own users. The Company generates
revenue from ad units placed alongside its search results, which
include pay-per-click, pay-per-call, and display ad units.
The Company reported a net loss of $5.50 million on $83.1 million
of revenue for the year ended Dec. 31, 2014, compared with a net
loss of $10.4 million on $94.4 million of revenue in the prior
year. The Company's balance sheet at March 31, 2015, showed $36.8
million in total assets, $25.7 million in total liabilities, and
stockholders' equity of $11.2 million.
Local Corp. filed a Chapter 11 bankruptcy petition (Bankr. C.D.
Cal. Case No. 15-13153) in Santa Ana, California, on June 23, 2015.
The Debtor disclosed $16,141,222 in assets and $29,519,418 in
liabilities as of the Chapter 11 filing.
The case is assigned to Judge Scott C. Clarkson. The Debtor tapped
Winthrop Couchot as counsel.
Robins Kaplan LLP represents as counsel to the Official Committee
of Unsecured Creditors.
LOCAL CORPORATION: Hires Baker & McKenzie as Corporate Counsel
--------------------------------------------------------------
Local Corporation seeks authorization from the U.S. Bankruptcy
Court for the Central District of California to employ Baker &
McKenzie LLP as special corporate counsel, effective July 13,
2015.
The Debtor requires Baker & McKenzie to:
(a) advise the Debtor on the de-registration process from the
Securities and Exchange Commission and de-listing from the
NASDAQ;
(b) assist the Debtor in connection with its corporate filing
obligations with the Securities and Exchange Commission;
(c) prepare and file all public documents and reports as
required by the Securities and Exchange Commission;
(d) if necessary and requested, review that certain Asset
Purchase Agreement related to the anticipated sale of the
Debtor's assets; and
(e) perform such other corporate or business services as the
Debtor may require of the Firm in connection with this
case.
Baker & McKenzie will be paid at these hourly rates:
Partners $610-$895
Associates $320-$600
Legal Assistants $215-$475
Baker & McKenzie will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Christopher M. Bartoli, partner of Baker & McKenzie, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.
Baker & McKenzie can be reached at:
Christopher M. Bartoli, Esq.
BAKER & MCKENZIE LLP
300 East Randolph Street, Ste 5000
Chicago, IL 60601
Tel: (310) 861-8676
Fax: (312) 698-2055
E-mail: christopher.bartoli@bakermckenzie.com
About Local Corporation
Local Corporation, a publicly traded Delaware corporation (NASDAQ
symbol LOCM), is in the business of providing search results to
consumers who are searching online for local businesses, products
and services. Founded in 1999, the Irvine, California-based
company went public in 2004 and has been one of the fastest growing
online local media businesses for a number of years, and for the
past four years it has been listed by Deloitte on its Technology
Fast 500. The Company's search results are provided through the
Company's flagship Local.com Web site and through other proprietary
Web sites, and they are also delivered to a network of over 1,600
other Web sites that rely on search syndication services to provide
local search results to their own users. The Company generates
revenue from ad units placed alongside its search results, which
include pay-per-click, pay-per-call, and display ad units.
The Company reported a net loss of $5.50 million on $83.1 million
of revenue for the year ended Dec. 31, 2014, compared with a net
loss of $10.4 million on $94.4 million of revenue in the prior
year. The Company's balance sheet at March 31, 2015, showed $36.8
million in total assets, $25.7 million in total liabilities, and
stockholders' equity of $11.2 million.
Local Corp. filed a Chapter 11 bankruptcy petition (Bankr. C.D.
Cal. Case No. 15-13153) in Santa Ana, California, on June 23, 2015.
The Debtor disclosed $16,141,222 in assets and $29,519,418 in
liabilities as of the Chapter 11 filing.
The case is assigned to Judge Scott C. Clarkson. The Debtor tapped
Winthrop Couchot as counsel.
Robins Kaplan LLP represents as counsel to the Official Committee
of Unsecured Creditors.
MCCLATCHY CO: Larry Edgar Resigns as Controller
-----------------------------------------------
The McClatchy Company announced that Larry Edgar, corporate
controller since October 2013, has resigned effective Sept. 11, to
become controller for another company. A search for his
replacement has begun.
"Larry has been a tremendous asset to this company, a wonderful
colleague and an accomplished corporate controller," said Elaine
Lintecum, McClatchy's CFO. "We thank Larry for his many
contributions and wish him all the best in the future."
"The past two years have been characterized by exciting changes at
McClatchy," said Edgar. "I'm proud to have helped support the
company’s ongoing digital transformation and its strengthened
financial position."
About The McClatchy Company
Sacramento, Cal.-based The McClatchy Company (NYSE: MNI)
-- http://www.mcclatchy.com/-- is a media company that provides
both print and digital news and advertising services. Its
operations include 30 daily newspapers, community newspapers,
websites, mobile news and advertising, niche publications, direct
marketing and direct mail services. Its owned newspapers include,
among others, the (Fort Worth) Star-Telegram, The Sacramento Bee,
The Kansas City Star, the Miami Herald, The Charlotte Observer,
and The (Raleigh) News & Observer. The Company holds interest in
digital assets which include CareerBuilder, LLC, Classified
Ventures, LLC, HomeFinder, LLC, and Wanderful Media.
McClatchy Co reported net income of $374 million on $1.14 billion
of net revenues for the year ended Dec. 28, 2014, compared with net
income of $18.8 million on $1.21 billion of net revenues for the
year ended Dec. 29, 2013.
As of June 28, 2015, the Company had $1.9 billion in total assets,
$1.7 billion in total liabilities and $201.9 million in
stockholders' equity.
* * *
McClatchy carries a 'Caa1' corporate family rating from Moody's
Investors Service. In May 2011, Moody's changed the rating
outlook from stable to positive following the company's
announcement that it closed on the sale of land in Miami for
$236 million. The outlook change reflects Moody's expectation
that McClatchy will utilize the net proceeds to reduce debt,
including its underfunded pension position, which will reduce
leverage by approximately half a turn and lower required
contributions to the pension plan over the next few years.
As reported by the TCR on April 2, 2014, Standard & Poor's Ratings
Services affirmed all ratings on U.S. newspaper company The
McClatchy Co., including the 'B-' corporate credit rating, and
revised the rating outlook to stable from positive. The outlook
revision to stable reflects S&P's expectation that the
timeframe for a potential upgrade lies beyond the next 12 months,
and could also depend on the company realizing value from its
digital minority interests.
MILLENNIUM HEALTH: S&P Lowers CCR to 'CCC+', Outlook Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on San Diego-based clinical toxicology laboratory services
provider Millennium Health LLC to 'CCC+' from 'B', and removed the
rating from CreditWatch, where it was placed with negative
implications on July 21, 2015. The rating outlook is negative.
At the same time, S&P lowered its issue-level rating on
Millennium's senior secured term loan to 'CCC+' from 'B' and
removed the rating from CreditWatch. S&P revised its recovery
rating on this debt to '4' from '3', reflecting its expectation for
average (30% to 50%, at the high end of the range) recovery in the
event of payment default. S&P also withdrew its rating on
Millennium's revolving credit facility because the facility was
terminated in the second quarter.
"Our rating action on Millennium follows another quarter of
declining EBITDA, reflecting falling net revenue per specimen for
the company's core urine drug testing franchise and higher costs
associated with the company's ongoing litigation," said Standard &
Poor's credit analyst Shannan Murphy. It also reflects S&P's view
that, at run-rate levels of EBITDA, the company will be unable to
support both its existing debt service obligations and its likely
annual payments as a result of the company's pending settlement
with the DOJ relating to alleged Medicare billing irregularities.
As a result, S&P views a debt restructuring (which S&P's criteria
treats as a default) as increasingly likely at some point. However,
given the company's healthy cash balance and no covenants on its
remaining debt obligations, S&P believes that the company has
sufficient resources that it could choose to continue operating
with the existing capital structure for at least another year.
S&P's negative outlook on Millennium reflects S&P's view that there
is further downside risk to its base-case expectation that the
company has sufficient cash to continue to support its existing
capital structure for at least another year.
S&P could lower the rating if it believes that Millennium is likely
to run out of cash within a one-year time frame, as this would be
more consistent with a 'CCC' rating. S&P could also lower the
rating if the company moves to restructure its debt sooner than S&P
anticipates, as it would likely view a debt restructuring as
tantamount to a default.
S&P could raise the rating if it gains increased confidence that
Millennium can generate EBITDA such that it can both fund its
government settlement obligations and continue to service its
existing debt. In S&P's view, this could happen if the company is
able to sustainably generate about $220 million in annual EBITDA,
which is meaningfully above S&P's current expectation for $160
million to $170 million of EBITDA generation over the near term.
PATRIOT COAL: Judge Urges Buyer, Union to Continue Talks
--------------------------------------------------------
Jacqueline Palank, writing for The Wall Street Journal, reported
that Judge Keith Phillips of the U.S. Bankruptcy Court in Richmond,
Va., "strongly" recommended that Patriot Coal Corp.'s would-be
buyer and the union representing its miners head back to the
bargaining table one last time to try to reach a deal on the
miners' future employment.
According to the Journal, after presiding over a four-hour trial,
Judge Phillips declined to rule on Patriot's request to reject the
collective bargaining agreements with the United Mine Workers of
America union. Patriot has warned that its pending sale to
Blackhawk Mining LLC -- and the ultimate survival of its business
-- depends on its ability to shed the agreements, though the union
says Patriot hasn't made a good-faith effort to negotiate new
deals, the Journal reported.
Bill Rochelle, a bankruptcy columnist for Bloomberg News, reported
that the United Mine Workers objected to Patriot Coal's disclosure
statement, saying the materials include no information about the
economics of the liquidation trust to be unsecured creditors' only
source of recovery.
According to Bloomberg, the union and the U.S. Trustee both fault
the plan for providing immunity from lawsuits to non-bankrupt third
parties. The union said the releases will preclude the trust from
suing third parties and making recoveries for unsecured creditors,
the Bloomberg report related.
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 court 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.
PITTSBURGH CORNING: Court Has No Authority Over Insurers' Bids
--------------------------------------------------------------
Judge Joy Flowers Conti of the United States District Court for the
Western District of Pennsylvania ruled that the motion for relief
from judgment filed by Mt. McKinley Insurance Company and Everest
Reinsurance Company will be denied if the case was remanded for the
purpose of considering the motion.
Mt. McKinley objected to the Modified Third Amended Plan of
Reorganization of Pittsburgh Corning Corporation and appealed the
bankruptcy court's confirmation order to the district court. The
district court held that McKinley lacked standing to challenge the
plan. On September 30, 2014, the district court adopted the
bankruptcy court's opinion and confirmation order and issued the
accompanying asbestos channeling injunction. The parties
stipulated that the plan would not take effect until after the
resolution of Mt. McKinley's appeal to the Court of Appeals for the
Third Circuit.
On October 28, 2014, Mt. McKinley filed a notice of appeal, and on
March 26, 2015, it filed its motion for relief from judgment.
Judge Conti held that because an appeal is pending before the U.S.
Court for Appeals for the Third Circuit, she had no authority to
grant Mt. McKinley's motion for relief from judgment. However, if
the case was remanded by the Third Circuit for the purpose of
considering the motion, Judge Conti concluded that she will deny
the motion because the evidence relied upon by Mt. McKinley does
not show the confirmation order was procured by fraud and the court
cannot revoke the confirmation order for any other reason.
Mt. McKinley also sought to have the district court reconsider its
decision that Mt. McKinley lacks standing, but Judge Conti held
that she has no legal authority to reconsider the decision at this
time.
The case is MT. McKINLEY INSURANCE COMPANY and EVEREST REINSURANCE
COMPANY, Appellants, v. PITTSBURGH CORNING CORPORATION, et al.,
Appellees, CIVIL ACTION NO. 13-1639 (W.D. Pa.).
A full-text copy of Judge Conti's August 12, 2015 memorandum
opinion is available at http://is.gd/XtjcQUfrom Leagle.com.
Mt. McKinley Insurance Company and Everest Reinsurance Company are
represented by:
James R. Walker, Esq.
BUCHANAN INGERSOLL & ROONEY
One Oxford Centre
301 Grant Street, 20th Floor
Pittsburgh, PA 15219-1410
Tel: (412) 562-8800
Fax: (412) 562-1041
Email: james.walker@bipc.com
-- and --
Tony L. Draper, Esq.
Charles B. Walther, Esq.
WALKER WILCOX MATOUSEK LLP
1001 McKinney Street Suite 2000
Houston, TX 77002
Tel: (713) 654-8001
Fax: (713) 343-6571
Email: tdraper@wwmlawyers.com
bwalther@wwmlawyers.com
-- and --
Fred L. Alvarez, Esq.
WALKER WILCOX MATOUSEK LLP
One North Franklin Street Suite 3200
Chicago, IL, 60606
Tel: (312) 244-6700
Fax: (312) 244-6800
Email: falvarez@wwmlawyers.com
Pittsburgh Corning Corporation is represented by:
James J. Restivo, Jr., Esq.
Andrew J. Muha, Esq.
David Ziegler, Esq.
Douglas E. Cameron, Esqs.
REED SMITH
Reed Smith Centre
225 Fifth Avenue
Pittsburgh, PA 15222
Tel: (412) 288-3131
Fax: (412) 288-3063
Email: jrestivo@reedsmith.com
amuha@reedsmith.com
dziegler@reedsmith.com
dcameron@reedsmith.com
-- and --
Rosalie J. Bell, Esq.
PITTSBURGH CORNING CORPORATION
800 Presque Isle Drive
Pittsburgh, PA 15239
Official Committee of Asbestos Creditors is represented by:
Peter Van N. Lockwood, Esq.
CAPLIN & DRYSDALE
One Thomas Circle, NW, Suite 1100
Washington, DC 20005-5802
Tel: (202) 862-5000
Fax: (202) 429-3301
Email: plockwood@capdale.com
-- and --
David B. Salzman, Esq.
Philip E. Milch, Esq.
CAMPBELL & LEVINE
310 Grant Street, Suite 1700
Pittsburgh, PA 15219
Tel: (412) 261-0310
Fax: (412) 261-5066
Email: dbs@camlev.com
pem@camlev.com
Lawrence Fitzpatrick is represented by:
Joel M. Helmrich, Esq.
DINSMORE & SHOHL
One Oxford Centre
301 Grant St., Suite 2800
Pittsburgh, PA 15219
Tel: (412) 281-5000
Fax: (412) 281-5055
Email: joel.helmrich@dinsmore.com
-- and --
Edwin J. Harron, Esq.
Sara Beth A.R. Kohut, Esq.
YOUNG, CONAWAY, STARGATT & TAYLOR LLP
Rodney Square 1000 North King Street
Wilmington, DE 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
Email: eharron@ycst.com
skohut@ycst.com
About Pittsburgh Corning
Pittsburgh Corning Corporation filed for Chapter 11 bankruptcy
protection (Bankr. W.D. Pa. Case No. 00-22876) on April 16, 2000,
to address numerous claims alleging personal injury from exposure
to asbestos. At the time of the bankruptcy filing, there were
about 11,800 claims pending against the Company in state court
lawsuits alleging various theories of liability based on exposure
to Pittsburgh Corning's asbestos products and typically requesting
monetary damages in excess of $1 million per claim.
Judge Thomas Agresti handles the bankruptcy case. Reed Smith LLP
serves as counsel and Deloitte & Touche LLP as accountants to the
Debtor.
The U.S. Trustee appointed a Committee of Unsecured Trade Creditors
on April 28, 2000. The Bankruptcy Court authorized the retention
of Leech, Tishman, Fuscaldo & Lampl, LLC, as counsel to the
Committee of Unsecured Trade Creditors, and Pascarella & Wiker,
LLP, as financial advisor.
The U.S. Trustee also appointed a Committee of Asbestos Creditors
on April 28, 2000. The Bankruptcy Court authorized the retention
of these professionals by the Committee of Asbestos Creditors: (i)
Caplin & Drysdale, Chartered as Committee Counsel; (ii) Campbell &
Levine as local counsel; (iii) Anderson Kill & Olick, P.C. as
special insurance counsel; (iv) Legal Analysis Systems, Inc., as
Asbestos-Related Bodily Injury Consultant; (v) defunct firm, L.
Tersigni Consulting, P.C. as financial advisor, and (vi) Professor
Elizabeth Warren, as a consultant to Caplin & Drysdale, Chartered.
On Feb. 16, 2001, the Court approved the appointment of Lawrence
Fitzpatrick as the Future Claimants' Representative. The
Bankruptcy Court authorized the retention of Meyer, Unkovic &
Scott LLP as his counsel, Young Conaway Stargatt & Taylor, LLP, as
his special counsel, and Analysis, Research and Planning
Corporation as his claims consultant.
In 2003, a plan of reorganization was agreed to by various
parties-in-interest, but, on Dec. 21, 2006, the Bankruptcy Court
issued an order denying the confirmation of that plan, citing that
the plan was too broad in addressing independent asbestos claims
that were not associated with Pittsburgh Corning.
On Jan. 29, 2009, an amended plan of reorganization (the Amended
PCC Plan) -- which addressed the issues raised by the Court when
it denied confirmation of the 2003 Plan -- was filed with the
Bankruptcy Court.
As reported by the TCR on April 25, 2012, Pittsburgh Corning,
which is a joint venture between Corning Inc. and PPG Industries
Inc., filed another amendment to its reorganization plan designed
to wrap up a Chapter 11 begun 12 years ago.
PCC's balance sheet at Sept. 30, 2012, showed $29.4 billion in
total assets, $7.52 billion in total liabilities and $21.9 billion
in total equity.
QUANTUM CORP: Stockholders Elect Nine Directors
-----------------------------------------------
At an annual meeting of stockholders of Quantum Corporation held on
Aug. 31, 2015, the stockholders of the Company:
(1) elected Robert J. Andersen, Paul R. Auvil III, Philip Black,
Louis DiNardo, Dale L. Fuller, Jon W. Gacek, David A. Krall,
Gregg J. Powers and David E. Roberson to the Board of
Directors to serve until the next Annual Meeting or until
their successors are elected and duly qualified;
(2) ratified the appointment of PricewaterhouseCoopers LLP as
the independent registered public accounting firm of the
Company for the fiscal year ending March 31, 2016;
(3) voted for the adoption of a resolution approving, on an
advisory basis, the compensation of the Company's named
executive officers; and
(4) approved and ratified an amendment to the Company's 2012
Long-Term Incentive Plan to increase the number of shares of
Common Stock available for issuance under the Plan by
8,750,000 shares.
About Quantum Corp.
Based in San Jose, California, Quantum Corp. (NYSE:QTM) --
http://www.quantum.com/-- is a storage company specializing in
backup, recovery and archive. Quantum provides a comprehensive,
integrated range of disk, tape, and software solutions supported
by a world-class sales and service organization.
Quantum reported net income of $16.7 million on $553 million of
total revenue for the year ended March 31, 2015, compared to a net
loss of $21.5 million on $553 million of total revenue for the year
ended March 31, 2014.
As of June 30, 2015, the Company had $314.6 million in total
assets, $382.6 million in total liabilities and a $67.9 million
total stockholders' deficit.
RAYONIER ADVANCED: S&P Lowers CCR to 'BB' & Puts on Watch Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its corporate
credit rating on Rayonier Advanced Materials Inc. to 'BB' from
'BB+' and placed it on CreditWatch with negative implications.
At the same time, in conjunction with the lowering of the corporate
credit rating, S&P lowered its issue-level rating on the company's
$500 million 5.5% senior notes due 2024 to 'BB' from 'BB+' and
placed it on CreditWatch with negative implications.
The CreditWatch placement reflects the continuing trend of the past
two years of weak demand and prices for cellulose specialty
products. It also incorporates RYAM's risk that an adverse ruling
in its contract dispute with largest customer Eastman could lead to
lower pricing on RYAM's products in 2016, resulting in reduced
earnings. This could result in leverage deteriorating further into
the aggressive category or possibly reaching the "highly leveraged"
category, with debt to EBITDA approaching 5x or higher.
"We will resolve our CreditWatch on RYAM once we receive clarity as
to the outcome of the court's decision regarding the contract
between RYAM and Eastman Chemical and the potential impact on
pricing and volumes for RYAM for 2016," said Standard & Poor's
credit analyst Thomas Nadramia.
S&P could affirm its ratings at the 'BB' level if expected pricing
and volume levels for 2016 remain roughly in line with current
levels, resulting in projected EBITDA of about $200 million to $230
million for 2016 and resulting projected debt leverage of below
5x.
S&P could lower its ratings if 2016 EBITDA is projected to be less
than $200 million, resulting in debt leverage of 5x or more.
S&P views an upgrade scenario as unlikely over the next year, but
one could occur if 2016 cellulose pricing levels improve
sufficiently to increase EBITDA to above $250 million on a
sustained basis, which would result in debt leverage below 4x.
REPUBLIC AIRWAYS: Squeeze Worsens as Union Lets Local Skip Vote
---------------------------------------------------------------
Mary Schlangenstein, writing for Bloomberg News, reported that
Republic Airways Holdings Inc. may be moving closer to a possible
bankruptcy after national Teamster officials backed a local pilot
union's decision against voting on the carrier's final contract
offer.
According to the report, the Teamsters' General President James
Hoffa said in a letter dated Sept. 1 to Local 357 that the union
"will not take the extraordinary step of ordering an election over
the unanimous and emphatic objections of Local 357's democratically
elected local leadership." Republic shares plunged in late trading
on the Teamsters' decision, because the airline has said it might
be forced into a court-supervised restructuring if a new contract
isn't secured, the report related.
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.
ROTONDO WEIRICH: Files List of 30 Largest Unsecured Creditors
-------------------------------------------------------------
Rotondo Weirich Enterprises, Inc., et al., filed with the
Bankruptcy Court a consolidated list of creditors holding the 30
largest unsecured claims:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Helser Industries $1,822,072
10750 SW Tualatin Road
P.O. Box 1569
Tualatin, OR 97062
RJC Contracting, Inc. $1,306,533
2824 N. Power Road
Suite 113
PMB 116
Mesa, AZ 85215
MIJACK TSI $620,805
P.O. box 88486
Chicago, IL 60682-1486
White Caps Industries $408,371
P.O. Box 4852
Orlando, FL 32802-4852
Pro Detention, Inc. $396,871
d/b/a Viking Products Inc.
P.O. Box 41047
Baton Rouge, LA 70835
Associated Ready Mix $396,696
4621 Teller Ave #130
Newport Beach, CA 92660
Acorn Engineering $231,432
Bragg Heavy Transport $230,792
American Express $203,733
PPG Protective & Marine Coatings $170,772
Sunbelt Rentals $147,462
Pennoni Associates $141,849
Global Security Glazing $133,308
Primoris Demolition $117,968
CCC Group, Inc. $111,298
Bennett International Logistics $107,533
Bragg Crane Service $107,100
Hinckley Allen & Snyder LLP $78,152
ABG Caulking Contractors $76,772
ZFA Structural Engineers $75,000
Kirk Cote Manufacturing $71,759
Fastenal $62,252
BJ Rentals $61,090
Coreslab $56,982
Tanner Bolt & Nut $54,204
Kimmel & Associates $51,750
United Healthcare $44,415
Complete Trucking $41,280
Anchor 36, LLC $37,575
Hub Construction $29,098
Rotondo Weirich Enterprises, Inc. and five of its affiliates sought
Chapter protection (Bankr. E.D. Pa. Case Nos. 15-16146 - 15-16151)
on Aug. 27, 2015. The petition was signed by Steven J. Weirich as
president & CEO. The Debtors estimated assets and liabilities of
at least $10 million. Maschmeyer Karalis
P.C. represents the Debtors as counsel.
ROTONDO WEIRICH: Seeks Joint Administration of Cases
----------------------------------------------------
Rotondo Weirich Enterprises, Inc., Rotondo Weirich, Inc., Three
North Pointe Associates, LLC, RW Lederach, LLC, RW 675, LLC and RW
Motorsports, Inc. filed with the Bankruptcy Court a motion for an
order directing the joint administration of their Chapter 11 cases
pursuant to Fed.R.Bankr.P. 1015(b).
That rule provides in pertinent part that if a joint petition or
two or more petitions are pending in the same court by or
against... a debtor and an affiliate, the court may order a joint
administration of the estates.
Steven J. Weirich and Mario Rotondo each own a 50 percent interest
in Rotondo Weirich Enterprises, Inc. and Rotondo Weirich, Inc.
Rotondo Weirich Enterprises, Inc. is the sole interest holder of
Three North Pointe Associates, LLC; RW Lederach, LLC; RW 675, LLC;
and RW Motorsports, Inc. Therefore, the Debtors assert they are
"affiliates" under Section 101(2)(B) of the Bankruptcy Code and
their bankruptcy cases are appropriate for joint administration
under Rule 1015(b).
The Debtors believe that joint administration of their Chapter 11
cases will allow the cases to be administered more efficiently,
expeditiously and economically, and will not prejudice any
creditors of their individual estates.
The Debtors propose that their cases be jointly administered under
Lead Case No. 151-16146 (ELF).
If approved, the caption of the Debtors' jointly administered cases
will read:
______________________________
In re: : CHAPTER 11
:
ROTONDO WEIRICH : Bankruptcy Nos. 15-16146 (ELF)
ENTERPRISES, INC., et al. : through 15-16151)
: (Jointly Administered)
Debtors :
_______________________________:
Rotondo Weirich Enterprises, Inc. and five of its affiliates sought
Chapter protection (Bankr. E.D. Pa. Case Nos. 15-16146 - 15-16151)
on Aug. 27, 2015. The petition was signed by Steven J. Weirich as
president & CEO. The Debtors estimated assets and liabilities of
at least $10 million. Maschmeyer Karalis P.C. represents the
Debtors as counsel.
ROTONDO WEIRICH: Seeks to Hire ESBA as Financial Advisors
---------------------------------------------------------
Rotondo Weirich Enterprises, Inc. and its debtor affiliates
submitted with the Bankruptcy Court an application to employ
Executive Sounding Board Associates LLC as their financial
advisors. ESBA will:
(a) assess the Debtors' cash flow requirements including the
preparation and maintenance of short-term cash flow
projections and reporting;
(b) develop, prepare and present operating plans and financial
projections, as agreed upon;
(c) prepare reports and communications with the Debtors'
creditor constituencies;
(d) prepare for and manage a bankruptcy filing and its
administrative reporting requirements;
(e) develop, negotiate and execute a plan of reorganization or
restructuring, or refinancing transaction, including a 363
sale process and its associated due diligence processes;
(f) monitor business operations and compliance reporting;
(g) assist with the analysis and reconciliation of financial
information as requested by management and/or counsel;
(h) participate in court hearings and, if necessary, provide
expert testimony in connection with any hearing before the
Court regarding the Debtors' proceedings; and
(i) perform other tasks as appropriate and as may be requested
by the Debtors' management and/or counsel.
On the Petition Date, ESBA received a retainer of $10,302 from the
Debtors. The retainer was funded by Mario Rotondo, a principal of
the Debtors.
The Debtors intend to pay ESBA based on the firm's current hourly
rates as follows:
Managing Directors $495-$550
Directors $350-$425
Consultants and Staff $250-$345
Michael DuFrayne will lead the project but other ESBA professionals
will work as needed. Mr. DuFrayne's standard billing rate is $525
per hour; however, for this engagement, his rate will be discounted
to $495 per hour.
The Debtors have agreed to reimburse ESBA for its out-of-pocket
expenses and indemnify the firm.
The Debtors assures the Court that ESBA does not hold any interest
materially adverse to their estates.
Rotondo Weirich Enterprises, Inc. and five of its affiliates sought
Chapter protection (Bankr. E.D. Pa. Case Nos. 15-16146 - 15-16151)
on Aug. 27, 2015. The petition was signed by Steven J. Weirich as
president & CEO. The Debtors estimated assets and liabilities of
at least $10 million. Maschmeyer Karalis
P.C. represents the Debtors as counsel.
ROTONDO WEIRICH: Seeks to Use Cash Collateral
---------------------------------------------
Rotondo Weirich Enterprises, Inc., Rotondo Weirich, Inc., Three
North Pointe Associates, LLC, RW Lederach, LLC, RW 675, LLC and RW
Motorsports, Inc. seek authority from the Bankruptcy Court to use
cash, proceeds of prepetition collateral, and other funds that they
obtain post-petition which may be subject to Univest Bank and Trust
Company's pre-petition security interest. The Debtors said the use
of cash collateral is necessary in order for them to be able to
operate and pay their post-petition obligations as they come due.
As of the Petition Date, the Debtors' secured obligations due
Univest Bank are approximately $4.4 million and consisted of, among
other things, revolving credit facilities, and two term loans. The
obligations due Univest Bank are as follows:
a. Revolving Credit Facility. On Nov. 17, 2008, RWE entered
into a credit agreement with Univest Bank, providing for a
revolving credit facility of up to $4 million, as amended.
As of the Petition Date, outstanding principal obligations
under the Univest Line of Credit were approximately
$4 million.
b. RW 675 Term Loan. On March 26, 2009, RW 675 executed and
delivered to Univest Bank a Promissory Note in the original
principal amount of $318,750, as amended. As of the
Petition Date, outstanding principal obligations under the
RW 675 Term Loan were approximately $218,738.
c. RWL Term Loan. On April 30, 2013, RWL executed and
delivered to Univest Bank a Promissory Note in the original
principal amount of $450,000, as amended. As of the
Petition Date, outstanding principal obligations under the
RWL Term Loan were approximately $124,033.
Univest Bank asserts that the Pre-petition Credit Facilities are
secured by all assets of the RWE, and the real estate owned by RWL
and RW 675, and any proceeds and products of the foregoing located
in all business locations. Univest Bank also asserts that all of
the Debtors guaranteed the Pre-petition Credit Facilities. Univest
Bank further asserts that it is secured by a majority of the real
and personal property owned by the Debtors.
The Debtors' primary assets are cash, accounts receivable,
machinery, equipment, and real estate.
The Debtors said they have been in discussions with Univest Bank to
reach a consensual agreement on the use of cash collateral and the
adequate protection to be afforded to Univest Bank after the
Petition Date. No agreement has been reached as of press time.
The Debtors' counsel is still reviewing all of the relevant loan
documents to determine the extent of Univest Bank's security
interest in the Debtors' assets.
The Debtors request that the use of cash collateral first be
preliminary approved and then subsequently be finally approved at a
subsequent hearing upon further notice to parties-in-interest.
Rotondo Weirich Enterprises, Inc. and five of its affiliates sought
Chapter protection (Bankr. E.D. Pa. Case Nos. 15-16146 - 15-16151)
on Aug. 27, 2015. The petition was signed by Steven J. Weirich as
president & CEO. The Debtors estimated assets and liabilities of
at least $10 million. Maschmeyer Karalis P.C. represents the
Debtors as counsel.
ROTONDO WEIRICH: Wants 30-Day Extension for Schedules & Statements
------------------------------------------------------------------
Rotondo Weirich Enterprises, Inc., and its Debtor affiliates ask
the Bankruptcy Court to extend their deadline to file their
schedules of assets and liabilities and statements of financial
affairs until Oct. 9, 2015.
The Debtors tell the Court that prior to the Petition Date, they
and their professionals have focused on numerous tasks relating to
their Chapter 11 cases, including: (a) reviewing documents, (b)
analyzing the Debtors' cash flow projections; (c) addressing issues
relating to the Debtors' various obligations; (d) negotiating with
their secured lender, Univest Bank and Trust Co., and other
parties, (e) and preparing the various "First Day Motions".
The collection of information necessary to complete the Schedules
and SOFAs will require expenditure of substantial time and effort
on the part of the Debtors' management and many of the Debtors'
employees, the Debtors maintain.
"The Debtors are working diligently to gather the necessary
information; however, given the complex nature of the Debtors'
business affairs and the need to continue to operate the Debtors'
businesses while the necessary information is being compiled, the
Debtors simply are unable to complete the preparation of the
Schedules and SOFAs in order to allow such documents to be filed
with the fourteen (14) days of the commencement of these Chapter 11
cases," says Robert W. Seitzer, Esq., at Maschmeyer Karalis P.C.,
counsel to the Debtors.
Rotondo Weirich Enterprises, Inc. and five of its affiliates sought
Chapter protection (Bankr. E.D. Pa. Case Nos. 15-16146 - 15-16151)
on Aug. 27, 2015. The petition was signed by Steven J. Weirich as
president & CEO. The Debtors estimated assets and liabilities of
at least $10 million. Maschmeyer Karalis P.C. represents the
Debtors as counsel.
SEARS HOLDINGS: Announces Final Results of Cash Tender Offer
------------------------------------------------------------
Sears Holdings Corporation announced the final tender results of
its tender offer to purchase for cash up to $1,000,000,000
principal amount of its outstanding 6 5/8% Senior Secured Notes Due
2018. As of 11:59 p.m., New York City time, on Aug. 28, 2015,
approximately $936.2 million principal amount of the Notes were
validly tendered and not validly withdrawn in the Offer, including
approximately $0.6 million principal amount of the Notes that were
validly tendered and not validly withdrawn after the early tender
date of Aug. 14, 2015, and at or prior to the Expiration Date.
The terms and conditions of the Offer are set forth in an Offer to
Purchase and related Letter of Transmittal, each dated Aug. 3,
2015. Consummation of the Offer, and payment for the tendered
Notes, is subject to the satisfaction or waiver of certain
conditions described in the Offer to Purchase.
Subject to the terms and conditions of the Offer, the Company
expects that it will accept for purchase all of the Notes validly
tendered and not validly withdrawn pursuant to the Offer at or
prior to the Expiration Date and not previously accepted for
purchase.
Holders who validly tendered and did not validly withdraw Notes at
or prior to the Early Tender Date received the "Total
Consideration" of $990 per $1,000 principal amount of Notes that
were accepted for purchase, which included an early tender payment
of $30 per $1,000 principal amount of Notes accepted for purchase,
plus accrued and unpaid interest up to, but excluding, the
settlement date. Holders who validly tendered and did not validly
withdraw Notes after the Early Tender Date but at or prior to the
Expiration Date will receive the "Tender Offer Consideration" of
$960 per $1,000 principal amount of Notes accepted for purchase,
plus accrued and unpaid interest up to, but excluding, the
settlement date.
The settlement for those Notes validly tendered and not validly
withdrawn after the Early Tender Date, and at or prior to the
Expiration Date, and accepted by the Company is currently expected
to be Monday, Aug. 31, 2015. Notes tendered pursuant to the Offers
may no longer be withdrawn, unless otherwise required by law.
Jefferies LLC is serving as dealer manager for the Offer.
Questions regarding the Offer may be directed to the Dealer Manager
at (877) 877-0696 (toll free) or (212) 284-2435 (collect).
Requests for the Offer to Purchase or the Letter of Transmittal or
the documents incorporated by reference therein may be directed to
D.F. King & Co., Inc., which is acting as the Tender Agent and
Information Agent for the Offer, at the following telephone
numbers: banks and brokers, (212) 269-5550; all others, toll free
at (800) 330-5136. Offer materials are available at the following
Web site address: www.dfking.com/sears.
About Sears
Sears Holdings Corporation (NASDAQ: SHLD) --
http://www.searsholdings.com/-- is an integrated retailer focused
on seamlessly connecting the digital and physical shopping
experiences to serve members. Sears Holdings is home to Shop Your
Waytm, a social shopping platform offering members rewards for
shopping at Sears and Kmart as well as with other retail partners
across categories important to them.
The Company operates through its subsidiaries, including Sears,
Roebuck and Co. and Kmart Corporation, with more than 2,000 full-
line and specialty retail stores in the United States and Canada.
Kmart Corporation and 37 of its U.S. subsidiaries filed voluntary
Chapter 11 petitions (Bankr. N.D. Ill. Lead Case No. 02-02474) on
Jan. 22, 2002. Kmart emerged from chapter 11 protection on May 6,
2003, pursuant to the terms of an Amended Joint Plan of
Reorganization. Skadden, Arps, Slate, Meagher & Flom, LLP,
represented Kmart in its restructuring efforts. Its balance sheet
showed $16,287,000,000 in assets and $10,348,000,000 in debts when
it sought chapter 11 protection.
Kmart bought Sears, Roebuck & Co., for $11 billion to create the
third-largest U.S. retailer, behind Wal-Mart and Target, and
generate $55 billion in annual revenues. Kmart completed its
merger with Sears on March 24, 2005.
For the year ended Jan. 31, 2015, the Company reported a net loss
attributable to Holdings' shareholders of $1.68 billion compared
to a net loss attributable to Holdings' shareholders of $1.36
billion for the year ended Feb. 1, 2014. As of May 2, 2015, Sears
Holdings had $13.3 billion in total assets, $14.5 billion in total
liabilities, and a $1.20 billion total deficit.
* * *
Moody's Investors Service in January 2014 downgraded Sears
Holdings Corporate Family Rating to 'Caa1' from 'B3'. The rating
outlook is stable.
The downgrade reflects the accelerating negative performance of
Sears' domestic business with comparable sales falling 7.4% for
the quarter to date ending January 6th, 2014 compared to the prior
year. The company now expects domestic Adjusted EBITDA to decline
to a range of ($80 million) to $20 million for the fourth fiscal
quarter, compared with $365 million in the year prior period. For
the full year, Sears expects domestic Adjusted EBITDA loss between
$(308) million and $(408) million, as compared to $557 million
last year. Moody's expects full year cash burn (after capital
spending, interest and pension funding) to be around $1.2 billion
in 2013 and we expect Sears' cash burn to remain well above $1
billion in 2014. "Operating performance for fiscal 2013 is
meaningfully weaker than our previous expectations, and we expect
negative trends in performance to persist into 2014" said Moody's
Vice President Scott Tuhy. He added "While Sears noted improved
engagement metrics for its "Shop Your Way" Rewards program,
Moody's remains uncertain when these improved engagement metrics
will lead to stabilization of operating performance."
As reported by the TCR on March 26, 2014, Standard & Poor's
Ratings Services affirmed its ratings on the Hoffman Estate, Ill.-
based Sears Holdings Corp., including the 'CCC+' corporate credit
rating.
Fitch Ratings had downgraded its long-term Issuer Default Ratings
(IDR) on Sears Holdings Corporation (Holdings) and its various
subsidiary entities (collectively, Sears) to 'CC' from 'CCC',
according to a TCR report dated Sept. 12, 2014.
STOCKTON REDEVELOPMENT: S&P Lowers Rating on 2004 Bonds to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its underlying rating
(SPUR) to 'D' from 'CC' on Stockton Redevelopment Agency, Calif.'s
lease revenue bonds, series 2004 (Stockton Events Center-Arena
Project). The 'AA-' long-term rating on the series 2004 is
unchanged, reflecting a financial commitment by National Public
Finance Guarantee Corp.
"The rating actions reflect our view of the city's partial payment
of debt service due on Sept. 1, 2015, that is required under the
terms of the series 2004 bonds' original indenture and our view
that the city is unlikely to make the full payment within five days
after the payment date," said Standard & Poor's credit analyst
Misty Newland.
Debt service payments are due March 1 and Sept. 1.
The partial payment is consistent with city's plan of adjustment to
exit protection from creditors under Chapter 9 of the U.S.
Bankruptcy Code. Under the plan, which was executed on Feb. 26,
2015, S&P understands that the city is required to make partial
payments, equal to about 95% of annual debt service on the series
2004 bonds between fiscal 2016 and fiscal 2037, with National
Public Finance Guarantee Corp. covering the shortfall.
SULLIVAN INTERNATIONAL: Sept. 11 Hearing on Sale and Stay Relief
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of California
will convene a hearing on Sept. 11, 2015, at 10:00 a.m., to
consider:
1. High Desert Support Services, LLC's motion seeking relief
from the automatic stay, or, in the alternative, directing Sullivan
International Group, Inc., to immediately assume or reject its
executory contract with High Desert; and
2. the Debtor's motion for sale of assets, bidding procedures,
assumption and assignment of contracts and sale hearing.
The Debtor on Aug. 4 submitted a copy of the assets purchase
agreement. The Court approved on July 31 the sale procedures to
govern the sale of substantially all of the Debtor's assets, which
provides that, among other things:
Bid Deadline: Aug. 5, at 4:00 p.m.
Auction: Aug. 10, at 9:00 a.m. at the
offices of Sullivan Hill
Lewin Rez & Engel, APLC, 550
West "C" Street, 15th Floor,
San Diego, California
Sale Hearing: Aug. 10, at 2:30 p.m.
The Debtor's assets generally consist of (i) prime contracts with
both governmental and private customers for which the Debtor serves
as a prime contractor; (ii) subcontracts under which the Debtor is
providing services to prime contractors that are parties to
contracts with both governmental and private customers; (iii)
interests in joint ventures that are party to contracts with both
governmental and private customers; and (iv) assets related to the
Debtor's contracting business, including accounts receivable
and unbilled work in process.
On July 7, 2015, the Debtor and the Committee reached agreement
that the Committee's Court-approved financial advisors (Crowe
Horwath) would take over from 3C in leading the efforts to locate
purchasers for the Debtor's assets.
Secured creditors are represented by:
Gerald P. Kennedy, Esq.
Zagros S. Bassirian, Esq.
PROCOPIO, CORY, HARGREAVES & SAVITCH LLP
525 B Street, Suite 2200
San Diego, CA 92101
Tel: (619) 238-1900
Fax: (619) 235-0398
The Committee is represented by:
Thomas R. Fawkes, Esq.
Brian J. Jackiw, Esq.
GOLDSTEIN & MCCLINTOCK LLLP
208 S. LaSalle Street, Suite 1750
Chicago, IL 60604
Tel: (312) 337-7700
Fax: (312) 277-2305
Christopher Celentino, Esq.
Dawn A. Messick, Esq.
BALLARD SPAHR LLP
655 West Broadway, Suite 1600
San Diego, CA 92101-8494
Tel: (619) 487-0797
Fax: (619) 969-9269
James P. Hill, Esq.
Christopher V. Hawkins, Esq.
SULLIVAN HILL LEWIN REZ & ENGEL
A Professional Law Corporation
550 West "C" Street, Suite 1500
San Diego, CA 92101
Tel: (619) 233-4100
Fax: (619) 231-4372
About Sullivan International
Sullivan International Group, Inc., an environmental engineering
provider, commenced a Chapter 11 bankruptcy case (Bankr. S.D. Cal.
Case No. 15-02281) in San Diego, California, on April 6, 2015.
Steven E. Sullivan signed the petition as chief executive officer.
The Debtor disclosed total assets of $16.27 million and total
Debts of $17.25 million. James P. Hill, Esq., at Sullivan, Hill,
Lewin, Rez & Engel, APLC, in San Diego, represents the Debtor as
counsel. 3C Advisors & Associates, Inc., serves as financial
advisor.
In an amended schedules, the Debtor disclosed total assets of
$16,154,825 and total liabilities of $17,542,093 as of the Petition
Date.
The U.S. Trustee overseeing the Debtor's bankruptcy case appointed
DeNovo Constructors Inc., Tetra Tech Inc., Park Construction Co.,
Energy Solutions, Wittie Letsche & Waldo LLP, Lawson Environmental
Service, Meyer Construction Inc., Cascade Drilling LP, and McMillin
NTC 903/904 LLC to serve on the official committee of unsecured
creditors. The Committee is represented by Thomas R. Fawkes, Esq.,
and Brian J. Jackiw, Esq., at Goldstein & McClintock LLLP, and
Ballard Spahr LLP as its local co-counsel.
TEMPNOLOGY LLC: Case Summary & 21 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Tempnology LLC
dba Coolcore
210 Commerce Way, Ste. 100
Portsmouth, NH 03801-8204
Case No.: 15-11400
Chapter 11 Petition Date: September 1, 2015
Court: United States Bankruptcy Court
District of New Hampshire (Manchester)
Judge: Hon. Bruce A. Harwood
Debtor's Counsel: Daniel W. Sklar, Esq.
NIXON PEABODY LLP
900 Elm Street
Manchester, NH 03101
Tel: (603) 628-4000
Fax: 603-628-4040
Email: dsklar@nixonpeabody.com
Debtor's PHOENIX CAPITAL PARTNERS
Investment
Banker:
Total Assets: $2.7 million
Total Liabilities: $6.2 million
The petition was signed by Kevin McCarthy, CEO.
A list of the Debtor's 21 largest unsecured creditors is available
for free at http://bankrupt.com/misc/nhb15-11400.pdf
TERVITA CORP: Bank Debt Trades at 22% Off
-----------------------------------------
Participations in a syndicated loan under which Tervita Corp is a
borrower traded in the secondary market at 78.30
cents-on-the-dollar during the week ended Friday, August 28, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the September 1, 2015, edition of The Wall Street
Journal. This represents a decrease of 1.20 percentage points from
the previous week, The Journal relates. Tervita Corp pays 500
basis points above LIBOR to borrow under the facility. The bank
loan matures on January 24, 2018. Moody's rates the loan 'B3' and
Standard & Poor's gave a 'B-' rating to the loan. The loan is one
of the biggest gainers and losers among 235 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, August 28.
TOPS HOLDING: Suspending Filing of Reports with SEC
---------------------------------------------------
Tops Holding LLC, Tops Markets, LLC, Tops Markets II Corporation,
Tops Gift Card Company, LLC and Tops PT, LLC have suspended their
reporting obligations under Section 15(d) of the Securities
Exchange Act of 1934, as amended, by filing a Form 15 with the
Securities and Exchange Commission on Aug. 31, 2015, with respect
to their:
-- 8.875% Senior Secured Notes due 2017;
-- Guarantees of Notes by Tops Gift Card Company, LLC; and
-- Guarantee of Notes by Tops PT, LLC.
About Tops Markets
Privately owned Tops Markets, LLC headquartered in Williamsville,
New York, operates a chain of 71 owned Tops supermarkets and 5
franchised stores ("legacy stores") in western New York state,
with approximately $1.7 billion of annual revenues. In February
2010, Tops acquired 79 stores from the bankruptcy estate of Penn
Traffic. Tops continues to operate 55 stores, of which 7 may sold
or closed as a result of a preliminary FTC order. The remaining
48 stores are in the final process of being re-branded as Tops
stores. Tops' primary markets have historically been the Buffalo
and Rochester metro areas, and will expand to the south and east
with the acquisition of the Syracuse-based Penn Traffic stores.
The company is 75% owned by Morgan Stanley Capital Partners, with
remaining ownership held largely by a unit of HSBC and company
management.
The Company's balance sheet at Oct. 6, 2012, showed $661.49
million in total assets, $705.22 million in total liabilities and
a $43.73 million total shareholders' deficit.
* * *
In the Nov. 25, 2011, edition of the TCR, Moody's Investors
Service upgraded the Corporate Family and Probability of Default
Ratings of Tops Holding Corporation ("Tops") to B3 from Caa1.
Tops Corporate Family Rating of B3 reflects the company's weak
credit metrics, its modest size relative to competitors, regional
concentration and aggressive financial policies. The rating is
supported by its stable operating performance in a challenging
business and competitive environment, its good regional market
presence and its good liquidity.
As reported by the TCR on May 10, 2015, Standard & Poor's Ratings
Services said it lowered its corporate credit rating on the
Buffalo, N.Y.-based Tops Holding Corp. to 'B' from 'B+'. "The
ratings on Tops reflect our view of the company's financial
risk profile as "highly leveraged", and we base our assessment on
our forecast of credit ratios, which incorporate the increased
debt, moderate profit growth, and some improvement in credit
ratios in the next year," said credit analyst Charles Pinson-Rose.
TRONOX INC: Bank Debt Trades at 6% Off
--------------------------------------
Participations in a syndicated loan under which Tronox Inc. is a
borrower traded in the secondary market at 93.70
cents-on-the-dollar during the week ended Friday, August 28, 2015,
according to data compiled by LSTA/Thomson Reuters MTM Pricing and
reported in the September 1, 2015, edition of The Wall Street
Journal. This represents a decrease of 1.38 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 235 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, August 28.
TRONOX LTD: S&P Lowers CCR to 'BB-', Outlook Remains Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Stamford, Conn.-based Tronox Ltd. to 'BB-' from 'BB'. The
outlook remains negative.
As a result, S&P is lowering its issue-level ratings on the
company's senior secured debt to 'BB+' from 'BBB-', two notches
above the issuer rating. The recovery rating remains '1',
indicating S&P's expectation for very high (90%-100%) recovery in
the event of a payment default.
S&P is also lowering its issue-level ratings on the company's
unsecured debt to 'B+' from 'BB-', one notch lower than the issuer
rating. The recovery rating remains '5', indicating S&P's
expectation of modest recovery (high end of the 10% to 30% range)
in the event of a payment default.
The ratings on Tronox reflect S&P's assessment of the company's
business risk profile as "fair" and its financial risk profile as
"aggressive." S&P characterizes Tronox's liquidity as "adequate."
"The negative outlook reflects our view of the risk that Tronox
will not be able to raise FFO to debt above 12% in 2016, as we
assume in our base case," said Standard & Poor's credit analyst
Sebastian Pinto-Thomaz. "Although we believe Tronox is committed
to reducing pro forma leverage in 2016, we believe TiO2 market
conditions could extend this process," he added.
S&P will review the rating within six months to see if announced
capacity closures in the sector are likely to contribute to EBITDA
improvements in 2016 and a consequent strengthening of leverage in
2016 as S&P assumes in its base case.
S&P could lower the ratings in the next six months if it expects a
somewhat slower recovery in TiO2 industry conditions or a more
expensive integration of the alkali chemicals business, such that
it would prevent Tronox from realizing FFO/debt above 12% in 2016.
S&P could also lower ratings if the company pursues additional
debt-financed acquisitions or returns to shareholders such that
leverage does not meet S&P's expectations in 2016.
S&P could revise its outlook to stable if the company meets S&P's
base-case expectations and realizes FFO/debt above 12%. S&P will
review the rating in the next six months if it believes FFO/debt
will be materially above 20% in 2016. S&P could also revise its
outlook if the company's financial policy decisions in the next six
months lead to improved leverage in the absence of expected
operating performance improvements.
TXU CORP: Bank Debt Trades at 56% Off
-------------------------------------
Participations in a syndicated loan under TXU Corp is a borrower
traded in the secondary market at 43.30 cents-on-the-dollar during
the week ended Friday, August 28, 2015, according to data compiled
by LSTA/Thomson Reuters MTM Pricing and reported in the September
1, 2015, edition of The Wall Street Journal. This represents an
increase of 1.95 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'
status to the loan. The loan is one of the biggest gainers and
losers among 235 widely quoted syndicated loans with five or more
bids in secondary trading for the week ended Friday, August 28.
ULTIMATE NUTRITION: Sues Mr. Olympia Contest
--------------------------------------------
Katy Stech, writing for The Wall Street Journal, reported that
Ultimate Nutrition Inc. is suing the organizers of the upcoming Mr.
Olympia contest to try to block them from making major sponsorship
deals with the manufacturer's competitors.
According to the report, with its lawsuit, Connecticut-based
Ultimate Nutrition said the organizers of Mr. Olympia -- the top
U.S. bodybuilding competition, held in Las Vegas -- are advertising
new sponsorship deals for companies that want their "brand front
and center" at the Sept. 17-20 event. Those offers infringe on
Ultimate Nutrition's exclusive sponsorship deal, the Journal said,
citing the company.
About Ultimate Nutrition
Ultimate Nutrition, Inc., develops and distributes nutritional
supplements for body building, enhanced athletic performance and
fitness. The products are sold worldwide in over 100 countries.
The business was founded in 1979 by the late Victor H. Rubino, one
of the top amateur power lifters in the United States at that
time.
The company has two facilities located in Farmington, Connecticut,
one product distribution center in New Britain, Connecticut and a
research and development center in West Palm Beach, Florida.
Ultimate Nutrition and affiliate Prostar, Inc., sought Chapter 11
bankruptcy protection (Bankr. D. Conn. Case Nos. 14-22402 and
14-22403) on Dec. 17, 2014. On Dec. 19, 2014, the Court entered an
order directing the joint administration of the Debtors' cases for
procedural purposes.
The Debtors have tapped Pullman & Comley, in Bridgeport,
Connecticut, as counsel; LaQuerre Michaud & Company, LLC, as
accountant; and Marcum LLP, as financial advisor.
Ultimate Nutrition disclosed $20,157,424 in assets and $19,885,142
in liabilities as of the Chapter 11 filing.
The U.S. Trustee for Region 2 appointed three creditors of to serve
on the official committee of unsecured creditors. The Committee
has selected Lowenstein Sandler, LLP to serve as its counsel, and
Neubert, Pepe & Monteith, P.C. to serve as its local counsel.
GlassRatner Advisory & Capital Group LLC, serves as its financial
advisor.
US RENAL: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Plano, Texas-based dialysis services provider U.S.
Renal Care Inc. (USRC). The outlook is stable. At the same time,
S&P affirmed its 'B' issue-level rating on the company's first-lien
debt and 'CCC+' rating on the second-lien debt. The recovery
rating on the first-lien debt is '3' (in the lower range of the
band) and the recovery rating on the second-lien debt is '6'.
"The ratings on USRC take into account its increased size following
the proposed merger with Dialysis NewCo, which would firmly
entrench USRC as the number-three provider of dialysis services in
the U.S.," said Standard & Poor's credit analyst Tulip Lim.
However, this is mitigated by its narrow business focus,
reimbursement risk, and the fact that it remains a distant third to
market leaders DaVita and Fresenius. The ratings also reflect the
company's financial risk profile, which S&P expects to remain
within the range of "highly leveraged."
"We view USRC's business as having a narrow scope of operations,
reimbursement pressure from Medicare and other third-party payors,
and fair geographic diversity. Reimbursement risk is a
particularly key credit factor considering that Medicare and some
other government programs account for more than 75% of USRC's total
treatments and 50% of its revenues. However the significantly
higher rates paid by commercial insurers as compared with Medicare
suggest that the percent of treatments that commercial insurers
cover, the commercial insurers' pricing, and efficient management
practices are important. The business risk profile also recognizes
positive attributes of the sector, such as steady demand from
patients with end-stage renal disease for essential dialysis
treatments, favorable demographic trends, and relatively low
investment requirements. USRC operates in 18 states and Guam,
serving about 15,500 dialysis patients," S&P said.
S&P's stable rating outlook reflects its expectation that the
company will be successful with its integration of Dialysis NewCo
and will continue to generate free operating cash flow over the
next two years.
S&P could lower its rating if the company struggles to integrate
Dialysis NewCo and fails to generate enough cash flow to meet its
operating and capital needs. Events that could contribute to such
a decline may include an inability to realize synergies,
difficulties managing transaction costs, and reimbursement cuts
from commercial payers. Given recent clarity on Medicare
reimbursement, S&P do not expect adverse reimbursement changes over
the next few years.
S&P could raise its ratings if USRC steadily deleverages through
EBITDA growth to achieve sustained adjusted leverage at or below
5x. Given the presence of a financial sponsor and in light of its
recent debt-financed special dividend to shareholders, S&P believes
a reduction in leverage would likely be an opportunity to
releverage the company to benefit shareholders.
WAYNE CHARTER: S&P Affirms 'BB+' Rating on GO Bonds, Outlook Neg.
-----------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB+' rating on
Wayne Charter County, Mich.'s limited-tax general obligation (GO)
bonds and removed the rating from CreditWatch with negative
implications, where it had been placed June 23, 2015. The outlook
is negative.
"The affirmation and removal from CreditWatch follow the county's
adoption of a consent agreement," said Standard & Poor's credit
analyst Jane Ridley.
The county has no unlimited-tax debt rated by Standard & Poor's;
all debt affirmed is secured by a limited-tax GO (LTGO) pledge. The
2012 series of bonds is additionally secured by a tourism tax, but
the rating is based on the LTGO.
Standard & Poor's had placed the rating on CreditWatch based on its
concern that as actions under Michigan Act 436 progressed, the
county could lose some of the autonomy held by the CEO and his
staff. However, with the county board's approval and adoption of a
consent agreement in August 2015, Wayne County's staff will
maintain control over the county's day-to-day operations and also
continue to direct the long-term issues addressed in the consent
agreement; in S&P's view, this autonomy is critical to the county's
ability to make the meaningful changes necessary to improve its
financial position.
As outlined in the county's consent agreement, remedial measures to
be taken under the agreement include improvements to the county's
cash position; reductions to long-term costs associated with
pensions and other postemployment benefits (OPEB); and elimination
of the county's $52 million accumulated deficit. The county
projects achieving these goals by calendar year-end 2015 or sooner.
Given the magnitude of the changes and the expediency needed to
make them to avert further financial deterioration, S&P has
assigned a negative outlook, reflecting the both the urgency and
long-term budget pressures facing the county.
"Although the rating has not changed since our last review in June
2015, Wayne Charter County has reported progress in cost reduction
changes for pensions and retiree health care, and projects that
fiscal 2015 operations will be structurally balanced. However,
given the magnitude of the challenges, in our view the
determination of structural balance can only be made on analyzing
final results for the fiscal year. Current projections as provided
by the county for 2015 do not result in an improvement in operating
performance as assessed by our GO criteria, so we factored in
potential deterioration to our assessment of the county's expected
financial performance. As noted above, under the consent
agreement, the county is addressing its large unfunded pension
obligation, although the changes are not yet known. In our view,
the magnitude of the changes—and their impact on the overall
pension funding level—will be very important in determining the
county's ability to regain structural balance, especially given the
current low pension funding level," S&P said.
"The negative outlook reflects Standard & Poor's expectation that
making the significant, meaningful adjustments necessary could take
longer than anticipated, and absent these fundamental operating
changes the county's financial position will continue to
deteriorate. Without the county's clear, demonstrable progress to
regain structural balance and reduce its sizable pension and OPEB
burden, we could lower the rating. In addition, should Wayne
Charter County's liquidity position deteriorate significantly, we
would lower the rating. An outlook revision to stable within the
one-year outlook horizon is possible if there is evidence of what
we view as meaningful changes to the county's operations,
specifically with regard to structural balance and the
manageability of the long-term pension burden. However, without
Standard & Poor's seeing clear evidence of the ability to execute
structural reforms timely and the elimination of political gridlock
within the county's operations, the rating is precluded from going
any higher, and could well be lowered," S&P noted.
XRPRO SCIENCES: Changes Name to "Icagen, Inc."
----------------------------------------------
XRpro Sciences, Inc. filed a Certificate of Amendment to the Second
Amended and Restated Certificate of Incorporation with the
Secretary of State of Delaware to change the name of the Company to
Icagen, Inc., which amendment became effective Aug. 28, 2015.
About XRpro Sciences
XRpro Sciences, Inc., formerly known as Caldera Pharmaceuticals
Inc. -- http://www.xrpro.com/-- provides a unique platform for
drug discovery and development services featuring high throughput
screening of ion channel assays for the pharmaceutical industry.
The Company's proprietary advances in X-ray fluorescence provide
measurements that would otherwise be difficult or impossible
applying other readily available technologies. XRpro technology
directly measures the activity of a drug target, without the need
for costly and artifact-causing chemical dyes or radiolabels.
XRPro Sciences reported a net loss applicable to common stock of
$569,000 in 2014 following a net loss applicable to common stock of
$5.88 million in 2013.
As of June 30, 2015, the Company had $8.86 million in total assets,
$1.45 million in total liabilities, $133,350 in series A cumulative
convertible redeemable preferred stock, and $7.27 million in total
stockholders' equity.
ZUCKER GOLDBERG: Taps Brown Moskowitz as Litigation Counsel
-----------------------------------------------------------
Zucker, Goldberg & Ackerman, LLC, filed with the U.S. Bankruptcy
Court for the District of New Jersey an application to employ
Brown, Moskowitz & Kallen, P.C., as special litigation counsel.
BMK has experience in litigation matters and will be representing
the Debtor with its billing disputes with certain companies as
outlined in the attached Retention Agreement.
Shalom Stone, a partner with the firm, attests that the firm is a
disinterested person under 11 U.S.C. Sec. 101(14).
The firm disclosed Daniel M. Stolz, Esq. is of counsel to the firm.
Mr. Stolz is also a member of Wasserman, Jurista & Stolz, P.C.,
bankruptcy counsel to the Debtor.
About Zucker Goldberg
Formed in 1923 as Zucker & Goldberg, law firm Zucker, Goldberg &
Ackerman, LLC, is primarily engaged in the representation of
lenders and secured parties in foreclosure matters, insolvency
proceedings and related matters. The sole members of ZGA are
Michael S. Ackerman, Esq. and Joel Ackerman, Esq. Michael S.
Ackerman is the managing member of the firm. ZGA's primary offices
are in Mountainside, New Jersey.
Zucker, Goldberg & Ackerman, LLC, sought Chapter 11 protection
(Bankr. D.N.J. Case No. 15-24585) in Newark, New Jersey, on Aug. 3,
2015, to complete the orderly liquidation of the business.
The case is assigned to Judge Christine M. Gravelle.
The Debtor disclosed total assets of $11.5 million and total
liabilities of $53.3 million as of June 30, 2015.
ZGA tapped Wasserman, Jurista & Stolz, P.C. as bankruptcy counsel;
Brown, Moskowitz & Kallen, P.C., as special litigation counsel;
Genova Burns as labor counsel; and BMC Group, Inc., as noticing and
balloting agent.
ZUCKER GOLDBERG: Taps Zucker Goldberg as Attorneys
--------------------------------------------------
Zucker, Goldberg & Ackerman, LLC, filed an application to employ
Wasserman, Jurista & Stolz, P.C., as counsel in the Chapter 11
proceedings.
The Debtor has agreed to pay WJ&S a retainer of $75,000.00 to be
applied against the services to be rendered by the firm on behalf
of the Debtor.
All services to be rendered by WJ&S will be billed at the firm's
normal hourly rates.
The proposed arrangement for compensation, including hourly rates,
if applicable, is as follows:
Hourly Rate
-----------
Robert B. Wasserman, Partner $550
Steven Z. Jurista, Partner $550
Daniel M. Stolz, Partner $550
Stuart M. Brown, Of Counsel $500
Kenneth L. Moskowitz, Of Counsel $500
Norman D. Kallen, Of Counsel $500
Keith Marlowe, Of Counsel $500
Leonard C. Walczyk, Partner $425
Scott S. Rever, Associate $400
Donald W. Clarke, Associate $350
Pamela Bellina, Paralegal $175
Lorrie L. Denson, Bankruptcy Paralegal $175
Legal Assistants $125
To the best of the Debtor's knowledge, the firm is a disinterested
person under 11 U.S.C. Sec. 101(14).
The firm disclosed that Nicole Clarke, Esq., who is the spouse of
one of firm's Associates, Donald Clarke, Esq., is employed by JP
Morgan Chase, the Debtor's secured lender and a client of the
Debtor. Nicole Clarke has not and will not be involved with the
relationship between JP Morgan Chase and the Debtor, and Donald
Clarke will not be involved with any issues involving JP Morgan
Chase with regard to the file in this firm.
About Zucker Goldberg
Formed in 1923 as Zucker & Goldberg, law firm Zucker, Goldberg &
Ackerman, LLC, is primarily engaged in the representation of
lenders and secured parties in foreclosure matters, insolvency
proceedings and related matters. The sole members of ZGA are
Michael S. Ackerman, Esq. and Joel Ackerman, Esq. Michael S.
Ackerman is the managing member of the firm. ZGA's primary offices
are in Mountainside, New Jersey.
Zucker, Goldberg & Ackerman, LLC, sought Chapter 11 protection
(Bankr. D.N.J. Case No. 15-24585) in Newark, New Jersey, on Aug. 3,
2015, to complete the orderly liquidation of the business.
The case is assigned to Judge Christine M. Gravelle.
The Debtor disclosed total assets of $11.5 million and total
liabilities of $53.3 million as of June 30, 2015.
ZGA tapped Wasserman, Jurista & Stolz, P.C. as bankruptcy counsel;
Brown, Moskowitz & Kallen, P.C., as special litigation counsel;
Genova Burns as labor counsel; and BMC Group, Inc., as noticing and
balloting agent.
[*] Sarah Frankel Launches Recruiting Firm for Bankruptcy Industry
------------------------------------------------------------------
Sarah Frankel on Sept. announced the official launch of
the525group, a recruitment firm focused on bringing a more personal
and industry-specific approach to professional service firms in the
bankruptcy and restructuring industry.
Talent sourcing and recruiting efforts differ depending on the
unique needs and challenges of each industry. Despite this, the
recruiting industry has taken a "one-size-fits-all" approach that
pits a large group of candidates against varied needs, effectively
making recruiting a numbers game. Now, the525group, founded by
industry veteran Sarah Frankel, takes aim at that problem by
exclusively serving the bankruptcy and restructuring industry with
in-depth industry knowledge, a vast network of relevant
relationships and a personalized approach.
"I've spent my entire career building relationships within the
restructuring community, and was inspired to establish the525group
as a way to serve my colleagues and network in a new and meaningful
way to further their recruitment and career goals," said Frankel,
founder and CEO of the525group. "the525group provides a tailored,
personal, and informed approach that unites companies and
professionals in the bankruptcy and restructuring world by
addressing both sets of needs to get to a win-win efficiently and
easily."
Sarah Frankel previously spent more than a decade as a business
development professional at leading claims and noticing firms that
serve the bankruptcy and restructuring industry. She has long been
focused on developing relationships, creating unique networking
opportunities and bringing professionals together to further their
goals. She also serves the restructuring community on a volunteer
basis in leadership roles with the International Women's Insolvency
and Restructuring Confederation and Turnaround Management
Association NextGen NY. She was honored as the 2013 IWIRC Rising
Star for her contributions to the bankruptcy and restructuring
community.
About the525group, LLC
Headquartered in the heart of Manhattan, the525group serves the
recruitment needs of firms and professionals in the bankruptcy and
restructuring industry. The company designs tailored
talent-sourcing strategies and supports the recruitment needs for
junior- to senior-executive level positions for a variety of
professional service firms and companies within the bankruptcy and
restructuring community.
[*] Two Business Bankruptcy Attorneys Join Morris Polich & Purdy
----------------------------------------------------------------
Morris Polich & Purdy LLP on Sept. 1 disclosed that business
bankruptcy attorneys Candace Carlyon and Matthew Carlyon have
joined the firm's Las Vegas office.
Candace Carlyon has been certified as a Business Bankruptcy
Specialist by the American Board of Certification of Bankruptcy and
Creditors' Rights Attorneys since 1994. Ms. Carlyon currently
serves as a part time Judge pro tempore for the Clark County Eighth
Judicial District Court's Short Trial Program. Previously, she
served as a Nevada Supreme Court Settlement Judge and as a mediator
with the Nevada Foreclosure Mediation Program. Her legal
experience includes representation of numerous financial
institutions, hotels, casinos, creditors' committees, bondholders'
committees, title companies, real estate developers, and investment
entities. She is also a mediator through the American Arbitration
Association. Ms. Carlyon's notable recognitions include The Best
Lawyers in America in the field of bankruptcy since 1994, holding a
Martindale-Hubbell AV rating since 1989, and most recently, her
recognition as one of the top 50 women attorneys in the Mountain
States region. Her practice consists primarily of representation
of lenders and creditors in litigation, transactional and
bankruptcy matters.
Matthew Carlyon's legal experience includes lender representation
in state and bankruptcy courts, representation of debtors in
chapter 11 bankruptcy cases, personal injury, and commercial
litigation. Since law school he has spent significant time
volunteering with the Clark County Truancy Diversion Project,
helping a number of at-risk middle school students to achieve
attendance and other scholastic goals, as well as donating time
through the Legal Aid Center of Southern Nevada, from teaching a
weekly class on small claims to representation of numerous
individuals in chapter 7 bankruptcy cases. Following Law School,
Mr. Carlyon interned at the Reno Bankruptcy Court for the Honorable
Judge Bruce T. Beesley and Gregg W. Zive. He has published several
articles, most recently Bankruptcy Courts Deny Relief to Marijuana
Businesses published in the American Bankruptcy Institute Journal
in December of 2014.
"We are very excited to welcome Candace and Matthew to our firm,"
says Managing Partner Don Ridge. "Their expertise brings
tremendous value to the firm and we are extremely fortunate that
they have joined us."
About MPP
Morris Polich & Purdy LLP is a law firm, with offices in Los
Angeles, San Diego, San Francisco and Las Vegas, that works with
its clients on a national basis. The firm also represents clients
in every state, as well as many U.S. possessions, where their cases
arise. It also has a wealth of international affiliations.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re C & T Trucking, LLC
Bankr. W.D. Ark. Case No. 15-71692
Chapter 11 Petition filed June 29, 2015
See http://bankrupt.com/misc/arwb15-71692.pdf
represented by: John M. Blair, Esq.
ASSOCIATION OF ATTORNEYS FOR DEBT RELIEF
E-mail: melisechilders54@outlook.com
In re Daniel Dwayne Gordey
Bankr. C.D. Cal. Case No. 15-20324
Chapter 11 Petition filed June 29, 2015
In re Carl R. Sayers and Suzanne Sayers
Bankr. D. Conn. Case No. 15-50870
Chapter 11 Petition filed June 29, 2015
In re John C. Derickson, O.D., P.A.
Bankr. M.D. Fla. Case No. 15-02919
Chapter 11 Petition filed June 29, 2015
See http://bankrupt.com/misc/pamb15-02919.pdf
represented by: Jason A. Burgess
THE LAW OFFICES OF JASON A. BURGESS, LLC
E-mail: jason@jasonaburgess.com
In re Frederick J. Keitel, III
Bankr. S.D. Fla. Case No. 15-21654
Chapter 11 Petition filed June 29, 2015
In re Mark Thomas Conklin
Bankr. S.D. Fla. Case No. 15-21714
Chapter 11 Petition filed June 29, 2015
In re Scituate Reality LLC
Bankr. S.D Fla. Case No. 15-21716
Chapter 11 Petition filed June 29, 2015
filed Pro Se
In re Lawrence D Fromelius
Bankr. N.D. Ill. Case No. 15-22373
Chapter 11 Petition filed June 29, 2015
In re Sindesmos Hellinikes-Kinotitos of Chicago
Bankr. N.D. Ill. Case No. 15-22446
Chapter 11 Petition filed June 29, 2015
See http://bankrupt.com/misc/ilnb15-22446.pdf
represented by: David R Herzog, Esq.
HERZOG & SCHWARTZ PC
E-mail: drhlaw@mindspring.com
In re Nicola Paola and Maria Paola
Bankr. D. Mass. Case No. 15-12545
Chapter 11 Petition filed June 29, 2015
In re Harrison Benjamin Edgley, Jr. and Patrice Elizabeth Edgley
Bankr. D. Md. Case No. 15-19102
Chapter 11 Petition filed June 29, 2015
In re Charles M Tyler and Florestine R Alexander-Tyler
Bankr. D. Md. Case No. 15-19119
Chapter 11 Petition filed June 29, 2015
In re Juan C. Franco
Bankr. D. Nev. Case No. 15-13724
Chapter 11 Petition filed June 29, 2015
In re Priority One Mechanical, Inc.
Bankr. E.D. Pa. Case No. 15-14593
Chapter 11 Petition filed June 29, 2015
See http://bankrupt.com/misc/paeb15-14593.pdf
represented by: Jon M. Adelstein, Esq.
ADELSTEIN & KALINER, LLC
E-mail: jma@tradenet.net
In re Pedro Resendiz-Diaz and Silvia Resendiz
Bankr. E.D. Tex. Case No. 15-41152
Chapter 11 Petition filed June 29, 2015
In re Courage Health Care Services, Inc.
Bankr. N.D. Tex. Case No. 15-32623
Chapter 11 Petition filed June 29, 2015
See http://bankrupt.com/misc/txnb15-32623.pdf
represented by: Areya Holder, Esq.
HOLDER LAW
E-mail: areya@holderlawpc.com
In re RLH Distribution Services, Inc.
Bankr. C.D. Cal. Case No. 15-17662
Chapter 11 Petition filed July 31, 2015
See http://bankrupt.com/misc/cacb15-17662.pdf
Filed Pro Se
In re Addison Bryce, Inc.
Bankr. S.D. Fla. Case No. 15-23846
Chapter 11 Petition filed July 31, 2015
See http://bankrupt.com/misc/flsb15-23846.pdf
represented by: Angelo A. Gasparri, Esq.
THE LAW OFFICES OF ANGELO A. GASPARRI, P.A.
E-mail: angelo@drlclaw.com
In re Michael Dennis Barney and Patricia Welsh Barney
Bankr. S.D. Fla. Case No. 15-23926
Chapter 11 Petition filed July 31, 2015
In re Ralph Dean Isom and Paula Isom
Bankr. D. Idaho Case No. 15-40763
Chapter 11 Petition filed July 31, 2015
In re Winners Sports Bar and Grill, Inc.
Bankr. N.D. Ill. Case No. 15-26116
Chapter 11 Petition filed July 31, 2015
See http://bankrupt.com/misc/ilnb15-26116.pdf
represented by: Jonathon Treat, Esq.
TREAT LAW OFFICE, P.C.
E-mail: treatlaw@gmail.com
In re William Matthew Black
Bankr. E.D. La. Case No. 15-11935
Chapter 11 Petition filed July 31, 2015
In re Meredith Miller
Bankr. D. Mass. Case No. 15-13045
Chapter 11 Petition filed July 31, 2015
In re KECC, Inc.
Bankr. N.D. Miss. Case No. 15-12687
Chapter 11 Petition filed July 31, 2015
See http://bankrupt.com/misc/msnb15-12687.pdf
represented by: Dalton Middleton, Esq.
MIDDLETON LAW OFFICE, PLLC
E-mail: rb@MLawMS.com
In re Mark Alan Papp
Bankr. W.D.N.C. Case No. 15-10394
Chapter 11 Petition filed July 31, 2015
In re Dominick Polito, Jr.
Bankr. W.D. Pa. Case No. 15-22764
Chapter 11 Petition filed July 31, 2015
In re OPC Marketing, Inc.
Bankr. N.D. Tex. Case No. 15-33092
Chapter 11 Petition filed July 31, 2015
See http://bankrupt.com/misc/txnb15-33092.pdf
represented by: Robert Yaquinto, Jr., Esq.
SHERMAN & YAQUINTO, LLP
E-mail: ryaquinto@syllp.com
In re JCP Properties, Ltd.
Bankr. S.D. Tex. Case No. 15-70391
Chapter 11 Petition filed July 31, 2015
See http://bankrupt.com/misc/txsb15-70391.pdf
represented by: Antonio Martinez, Jr., Esq.
LAW OFFICE OF ANTONIO MARTINEZ, JR., P.C.
E-mail: martinez.tony.jr@gmail.com
In re Daniel S. Beecroft
Bankr. S.D. Fla. Case No. 15-23954
Chapter 11 Petition filed August 1, 2015
In re David W. McBirnie
Bankr. W.D. Tex. Case No. 15-31196
Chapter 11 Petition filed August 1, 2015
In re Detlef David Semrau
Bankr. E.D. Pa. Case No. 15-15864
Chapter 11 Petition filed August 14, 2015
In re Jose Reyes
Bankr. C.D. Cal. Case No. 15-23190
Chapter 11 Petition filed August 21, 2015
In re Elements of Sunset, LLC
Bankr. M.D. Fla. Case No. 15-07236
Chapter 11 Petition filed August 21, 2015
See http://bankrupt.com/misc/flmb15-07236.pdf
represented by: Aldo G. Bartolone, Jr., Esq.
BARTOLONE LEGAL GROUP, P.A.
E-mail: aldo@bartolonelaw.com
In re Farid Moghadasi
Bankr. M.D. Fla. Case No. 15-08562
Chapter 11 Petition filed August 21, 2015
In re Cary Paul Shahid
Bankr. N.D. Fla. Case No. 15-30868
Chapter 11 Petition filed August 21, 2015
In re Potomac Prompt Medical Care
Bankr. D. Md. Case No. 15-21673
Chapter 11 Petition filed August 21, 2015
See http://bankrupt.com/misc/mdb15-21673.pdf
represented by: Alice Pare-Johnson, Esq.
LAW OFFICE OF ALICE PARE-JOHNSON
E-mail: parebankruptcy@ymail.com
In re Alpidio Flores Chinchilla
Bankr. D. Nev. Case No. 15-14803
Chapter 11 Petition filed August 21, 2015
In re Just In Time Moving & Delivery Service, Inc.
Bankr. D.N.J. Case No. 15-25868
Chapter 11 Petition filed August 21, 2015
See http://bankrupt.com/misc/njb15-25868.pdf
represented by: Warren D. Levy, Esq.
LAW OFFICES OF KASURI & LEVY, LLC
E-mail: lawfirm@kasurilevy.com
In re Nicholas V. Rimedio, Sr.
Bankr. N.D. Ohio Case No. 15-52042
Chapter 11 Petition filed August 21, 2015
In re Professional Therapy Services, LP
Bankr. W.D. Tex. Case No. 15-52034
Chapter 11 Petition filed August 21, 2015
See http://bankrupt.com/misc/txwb15-52034.pdf
represented by: William R. Davis, Jr, Esq.
LANGLEY & BANACK, INC.
E-mail: wrdavis@langleybanack.com
In re William Riley and Althea Riley
Bankr. W.D. Wash. Case No. 15-43936
Chapter 11 Petition filed August 21, 2015
In re Thomas Nelson Payne
Bankr. D. Ariz. Case No. 15-10752
Chapter 11 Petition filed August 24, 2015
represented by: Thomas L. Allen, Esq.
ALLEN MAGUIRE & BARNES, PLC
E-mail: tallen@ambazlaw.com
In re Quality Asset Management Services, LLC
Bankr. D. Conn. Case No. 15-51199
Chapter 11 Petition filed August 24, 2015
See http://bankrupt.com/misc/ctb15-51199.pdf
filed Pro Se
In re Christine Good
Bankr. S.D. Fla. Case No. 15-25289
Chapter 11 Petition filed August 24, 2015
In re Arnold Goldberg
Bankr. N.D. Ill. Case No. 15-28900
Chapter 11 Petition filed August 24, 2015
represented by: Lawrence M. Benjamin, Esq.
NEAL, GERBER & EISENBERG
E-mail: lbenjamin@ngelaw.com
In re Luis Angel Jimenez Ramirez
Bankr. D.P.R. Case No. 15-06482
Chapter 11 Petition filed August 24, 2015
In re Timothy E. Cliggott
Bankr. E.D. Va. Case No. 15-12929
Chapter 11 Petition filed August 24, 2015
In re Virtuo Inc.
Bankr. C.D. Cal. Case No. 15-14210
Chapter 11 Petition filed August 25, 2015
See http://bankrupt.com/misc/cacb15-14210.pdf
represented by: Andrew S. Bisom, Esq.
THE BISOM LAW GROUP
E-mail: abisom@bisomlaw.com
In re Dog Wood Park of Northeast Florida, LLC
Bankr. M.D. Fla. Case No. 15-03810
Chapter 11 Petition filed August 25, 2015
See http://bankrupt.com/misc/flmb15-03810.pdf
represented by: Jason A. Burgess, Esq.
THE LAW OFFICES OF JASON A. BURGESS, LLC
E-mail: jason@jasonaburgess.com
In re Sonny Mawardi and Debra Mawardi
Bankr. S.D. Fla. Case No. 15-25344
Chapter 11 Petition filed August 25, 2015
In re Shun Lee Palace, Inc.
Bankr. D. Md. Case No. 15-21822
Chapter 11 Petition filed August 25, 2015
See http://bankrupt.com/misc/mdb15-21822.pdf
represented by: Eric Hans Kirchman, Esq.
KIRCHMAN & KIRCHMAN
E-mail: kirchlaw@cs.com
In re Kevin Michael Anselmi
Bankr. D. Md. Case No. 15-21824
Chapter 11 Petition filed August 25, 2015
In re Chatterbox Enterprises, Inc.
Bankr. D. Minn. Case No. 15-42974
Chapter 11 Petition filed August 25, 2015
See http://bankrupt.com/misc/mnb15-42974.pdf
represented by: Steven B Nosek, Esq.
STEVEN B. NOSEK, P.A.
snosek@noseklawfirm.com
In re Fischer's Auto Body, LLC
Bankr. D. Nev. Case No. 15-14856
Chapter 11 Petition filed August 25, 2015
See http://bankrupt.com/misc/nvb15-14856.pdf
represented by: Seth D Ballstaedt, Esq.
THE BALLSTAEDT LAW FIRM
E-mail: seth@ballstaedtlaw.com
In re Alma Bar LLC
Bankr.E.D.N.Y. Case No. 15-43895
Chapter 11 Petition filed August 25, 2015
See http://bankrupt.com/misc/nyeb15-43895.pdf
represented by: Lawrence Morrison, Esq.
MORRISON-TENENBAUM, PLLC
E-mail: morrlaw@aol.com
In re MWE Monaco MFG, LLC
Bankr. N.D. Ohio Case No. 15-61787
Chapter 11 Petition filed August 25, 2015
See http://bankrupt.com/misc/ohnb15-61787.pdf
represented by: Edwin H. Breyfogle, Esq.
EDWIN H. BREYFOGLE
E-mail: edwinbreyfogle@sssnet.com
In re R & J Bakery, Inc
Bankr. D.P.R. Case No. 15-06498
Chapter 11 Petition filed August 25, 2015
See http://bankrupt.com/misc/prb15-06498.pdf
represented by: Modesto Bigas Mendez, Esq.
BIGAS & BIGAS
E-mail: modestobigas@yahoo.com
In re Entertainment Consulting Group Inc.
Bankr. M.D. Tenn. Case No. 15-05936
Chapter 11 Petition filed August 25, 2015
See http://bankrupt.com/misc/tnmb15-05936.pdf
represented by: STEVEN L. LEFKOVITZ, Esq.
Law Offices Lefkovitz & Lefkovitz
E-mail: slefkovitz@lefkovitz.com
In re Daniel Richard Sigmund
Bankr. M.D. Tenn. Case No. 15-05937
Chapter 11 Petition filed August 25, 2015
In re Trever Leonard Siu and Sheila Rao
Bankr. D. Ariz. Case No. 15-10857
Chapter 11 Petition filed August 26, 2015
In re Wintergreen Mobil, Inc.
Bankr. D. Md. Case No. 15-21905
Chapter 11 Petition filed August 26, 2015
See http://bankrupt.com/misc/mdb15-21905.pdf
represented by: Carrie Crawford, Esq.
Crawford & Associates
E-mail: crawfordconsultants@gmail.com
In re Meadowlands Development LLC
Bankr. D.N.J. Case No. 15-26101
Chapter 11 Petition filed August 26, 2015
Filed Pro Se
In re Nancy Frances Michelakis
Bankr. E.D.N.Y. Case No. 15-43906
Chapter 11 Petition filed August 26, 2015
In re Jorge Luis Rivera Fernandez and Francisca Rivera Gonzalez
Bankr. D.P.R. Case No. 15-06548
Chapter 11 Petition filed August 26, 2015
In re Spencer Udorji Obie and Heidi Kurlynne Obie
Bankr. S.D. Tex. Case No. 15-34470
Chapter 11 Petition filed August 26, 2015
*********
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 ***