/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/150917.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 17, 2015, Vol. 19, No. 260 Headlines 800 BUILDING: Can Hire Wyatt Tarrant as Special Counsel A123 SYSTEMS: Dismisses Securities Case Against Four Executives AC I INV: Has Until Sept. 30 to Propose Plan of Reorganization ALPHA NATURAL: Tweaks Bankruptcy Loans AMERICAN AGENCIES: Case Summary & 20 Largest Unsecured Creditors ATLANTIC & PACIFIC: Hires FTI Consulting as Financial Advisor AUDATEX HOLDINGS: Moody's Puts B1 CFR Under Review for Downgrade BAHA MAR: Comments on US Court Ruling on Chapter 11 Process BDC SHARED SERVICES: Case Summary & 20 Top Unsecured Creditors BLACK ELK ENERGY: Sec. 341 Meeting Set for Oct. 19 CAESARS ENTERTAINMENT: TJM Offers $3MM for Shuttered Miss. Casino CALIFORNIA RESOURCES: Moody's Lowers Corp. Family Rating to B1 CARE CAPITAL: S&P Assigns 'BB+' Corp. Credit Rating CLAIRE'S STORES: Incurs $18.8 Million Net Loss in Second Quarter CRP-2 HOLDINGS: Court Approves Hiring of FrankGecker as Counsel CUMULUS MEDIA: Moody's Lowers CFR to B3, Outlook Stable DECATUR HOSPITAL: S&P Affirms 'BB+' Rating on 2014 Revenue Bonds DUNE ENERGY: Combined Disclosure and Plan Hearing Today E*TRADE FIN'L: Credit Profile Affected by Response to Challenges ENDEAVOUR INT'L: Wants Ch 11 Case Dismissed by End of October ENERGY FUTURE: UST Says Creditor Accord Improperly Solicits Votes FLEXERA SOFTWARE: $45MM Debt Increase No Impact on Moody's CFR FOUNTAIN VALLEY: Moody's Hikes 1998 Bonds Rating From Ba1 FOURTH QUARTER: Court Okays Jackson Hole as Real Estate Broker FOURTH QUARTER: Files Disclosure Statement on Liquidating Plan FRESNO, CA: Moody's Hikes 2004/2008/2009 Bonds Rating to Ba1 GLOBAL MARITIME: Case Summary & 50 Largest Unsecured Creditors GLOBAL MARITIME: Files for Chapter 11 to Wind Down Operations GOLFSMITH INTERNATIONAL: S&P Cuts CCR to CCC on Liquidity Concerns GRASS VALLEY: Court Approves Durham Jones as Special Counsel GRASS VALLEY: Names Squire & Company as Accountant GRASS VALLEY: Selects Valbridge Property as Appraiser HAGGEN HOLDINGS: Court Orders Joint Administration of Cases HOVENSA L.L.C: Case Summary & 20 Largest Unsecured Creditors HOVENSA LLC: Files for Ch.11; to Sell Assets to Limetree for $184MM IMPAC LAB: Moody's Assigns Ba1 Rating to New $100MM Revolver Loan IMPAX LABORATORIES: S&P Affirms 'BB' CCR & Revises Outlook to Neg. LEAP TRANSIT: Auctions Off Buses After Filing for Chapter 7 LIFE PARTNERS: Trustee Files Multi-Million Dollar Suit Against CEO LJ/HAH HOLDINGS: S&P Withdraws 'B' Corporate Credit Rating MALIBU ASSOCIATES: US Bank, US Trustee Object to Plan Disclosure MOLYCORP INC: Gets Approval to Reject Contracts at Calif. Mine NEWZOOM INC: Proposes Prime Clerk as Noticing and Claims Agent NEWZOOM INC: Section 341 Meeting Scheduled for October 6 ONEX TSG: Moody's Assigns B2 CFR, Outlook Stable PACIFIC RECYCLING: U.S. Trustee Forms Four-Member Creditors' Panel PATRIOT COAL: In "Advanced" Talks with Rival Bidders for Mines PETTERS COMPANY: Court Approves WayPoint as Trustee's Consultant PETTERS COMPANY: Ritchie Loses Round in Suit Against JPMorgan PHILADELPHIA PERFORMING: S&P Affirms BB- Rating on 2013 Rev. Bonds QUIKSILVER INC: Court Approves KCC as Claims and Noticing Agent QUIKSILVER INC: Court Enforces Automatic Stay Protection QUIKSILVER INC: Wins Interim OK to Pay $30-Mil. to Critical Vendors RADIOSHACK CORP: Liquidation Plan Moves Closer to Final Approval RANCHO MIRAGE, CA: Moody's Hikes TABs Rating From Ba1 REGNIS MANAGEMENT: Case Summary & 12 Largest Unsecured Creditors REICHHOLD HOLDINGS: Stepan Co. Steps Down From Creditors' Panel REVEL AC: Utility Says New Owner Wants to Resell, Not Reopen ROTONDO WEIRICH: Sec. 341 Meeting Set for October 13 SCOOTER STORE: Wants Case Dismissed, Says No Assets to Liquidate SPRINT CORP: Moody's Lowers CFR to B3, Outlook Still Negative TARGET CANADA: Spars With Creditors Over $1.9 Billion Debt Claims TECH LINK: Receiver Puts 0.5-Hectare Property on Sale UFS HOLDINGS: S&P Assigns 'B' Corp. Credit Rating, Outlook Stable UNIVERSAL FIBER: Moody's Assigns First Time 'B2' CFR VANTAGE DRILLING: Receives NYSE Share Delisting Notice VIRGIN ISLANDS: Retirement System Seeks $600MM Aid to Stay Solvent WALLDESIGN INC: Centex Seeks to Prosecute Indemnity Actions WALLDESIGN INC: Centex Seeks to Prosecute Products Liability Action WELLSVILLE FOUNDRY: Case Summary & 20 Largest Unsecured Creditors [*] Alabama Bankruptcy Judge Thomas Bennett Joins Bailey Glasser [*] Judge Thomas Ambro to Receive American Inns of Court Award [^] Recent Small-Dollar & Individual Chapter 11 Filings ********* 800 BUILDING: Can Hire Wyatt Tarrant as Special Counsel ------------------------------------------------------- The Hon. Jacqueline P. Cox of the U.S. Bankruptcy Court for the Northern District of Illinois authorized The 800 Building LLC asks for permission to employ Wyatt, Tarrant & Combs LLP as its special counsel to provide the Debtor with legal services with respect to the sale of The 800 Building pursuant to a purchase agreement entered into by the Debtor before the petition date, and to assist the Debtor with the closing of the sale. The Wyatt Tarrant professional most active with respect to the firm's representation of the Debtor has been, and will continue to be, Michael B. Vincenti, Esq. Mr. Vincenti's current hourly billing rate is $440. The Debtor assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Mr. Vincenti can be reached at: Michael B. Vincenti, Esq. Wyatt, Tarrant & Combs LLP West Jefferson Street, Suite 2800 Louisville, KY 40202 Tel: 502-562-7518 Fax: 502-589-0309500 Email: mvincenti@wyattfirm.com About The 800 Building The 800 Building, LLC, owns and operates two adjacent but related rental properties in downtown Louisville, Kentucky: (a) a 246-unit residential apartment building known as The 800 Building, with a street address of 800 South 4th Street; and (b) a 48-slot parking garage, with a street address of 820 South 4th Street. The company is owned by Leon and Helen Petcov and is managed by Leon Petcov. The 800 Building, LLC sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 15-17314) on May 15, 2015. The Debtor disclosed $21,564,298 in assets and $33,706,487 in liabilities as of the Chapter 11 filing. The case is assigned to Judge Pamela S. Hollis. The Debtor tapped Phillip W. Nelson, Esq., at Locke Lord LLP, in Chicago, as counsel. A123 SYSTEMS: Dismisses Securities Case Against Four Executives --------------------------------------------------------------- Cara Salvatore at Bankruptcy Law360 reported that a Manhattan federal judge has dismissed a securities case against four executives of A123 Systems Inc., a company that made batteries for electric cars but allegedly kept mum about the imminent failure of its biggest customer, saying on Sept. 8, 2015, that the investors who brought the suit didn't back up their claims with strong evidence. The plaintiffs said the executives -- David Vieau, John Granara, Jason Forcier and David Prystash -- failed to communicate to investors that car maker Fisker Automotive, a big customer, was headed toward bankruptcy. About A123 Systems Based in Waltham, Massachusetts, A123 Systems Inc. designed, developed, manufactured and sold advanced rechargeable lithium-ion batteries and battery systems and provided research and development services to government agencies and commercial customers. A123 was the recipient of a $249 million federal grant from the Obama administration. A123 and U.S. affiliates, A123 Securities Corporation and Grid Storage Holdings LLC, sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 12-12859 to 12-12861) on Oct. 16, 2012. A123 disclosed assets of $459.8 million and liabilities totaling $376 million. Lawyers at Richards, Layton & Finger, P.A., and Latham & Watkins LLP serve as the Debtors' counsel. Lazard Freres & Co. LLC acts as the Debtors' financial advisors, while Alvarez & Marsal serves as restructuring advisors. Logan & Company Inc. serves as the Debtors' claims and noticing agent. Brown Rudnick LLP and Saul Ewing LLP serve as counsel to the Official Committee of Unsecured Creditors. Prior to the bankruptcy filing, A123 had an agreement to sell an 80% stake in the business to Chinese auto-parts maker Wanxiang Group Corp. U.S. lawmakers opposed the deal over concerns on the transfer of American taxpayer dollars and technology to China. When it filed for bankruptcy, the Debtors presented a deal to sell all assets to Johnson Controls Inc., subject to higher and better offers. At the auction in December 2012, most of the assets ended up being sold for $256.6 million to Wanxiang. The deal received approval from the Committee on Foreign Investment in the U.S. on Jan. 29, 2013. A123 Systems was renamed B456 Systems Inc., following the sale. Wanxiang America Corporation and Wanxiang Clean Energy USA Corp. are represented in the case by lawyers at Young Conaway Stargatt & Taylor, LLP, and Sidley Austin LLP. JCI is represented in the case by Josh Feltman, Esq., at Wachtell Lipton Rosen & Katz LLP. In May 2013, the Delaware bankruptcy court confirmed the liquidation plan for A123 Systems Inc. The Plan repays all secured creditors in full with some money left over for unsecured creditors. Holders of $143.8 million in subordinated notes are projected to recoup 36.3 percent. If B456 Systems Inc., the company's new name, reduces claims to amounts the company believes correct, the recovery on the subordinated notes could increase to 62.9 percent, according to the disclosure statement. General unsecured creditors, who previously were said to have $124 million in claims, would have roughly the same recovery. AC I INV: Has Until Sept. 30 to Propose Plan of Reorganization -------------------------------------------------------------- The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York further extended AC I Inv Manahawkin LLC, et al.'s exclusive periods to file a plan of reorganization until Sept. 30, 2015, and solicit acceptances for that plan until Nov. 30, 2015. As reported by the Troubled Company Reporter on Aug. 5, 2015, Inv owns a 100% interest in Mezz, a holding company, which in turn owns a 100% interest in AC I Manahawkin LLC. The sale of the Manahawkin Commons Property closed on June 15, 2015. The remaining proceeds, after LLC's plan payments are completed, will be utilized to fund Mezz's liquidating plan. The Debtors are engaged in continuing settlement negotiations in connection with the disputed claim by Acadia Realty Limited Partnership. A consensual and global resolution of the Acadia disputed claim will have a substantial impact on the amount of the sale proceeds. The Debtors will have to escrow an amount in excess of $6,000,000 in connection with Acadia's disputed claim, which will significantly decrease the amount to be distributed to Mezz. The Debtors need the extension to be able to focus their energies on potential resolutions of disputed claims, including the Acadia disputed claim, which if successful, will inure to the benefit of creditors by eliminating the need to reserve funds for disputed claims and limiting time consuming and costly litigations. About AC I Inv AC I Inv Manahawkin LLC, AC I Manahawkin Mezz LLC and AC I Manahawkin LLC filed separate Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Case Nos. 14-22791, 14-22792 and 14-22793) on June 4, 2014. The petitions were signed by David Goldwasser, of GC Realty Advisors LLC, managing member. The Debtors estimated assets of $50 million to $100 million and debts of $0 to $50 million. Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtors' counsel. Judge Robert D. Drain presides over the cases. Affiliates of AC I Inv., et al., have pending bankruptcy cases before Judge Drain. NY Affordable Housing Albany Assocs. LLC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 13-20007) on July 26, 2013. First Bronx LLC sought bankruptcy protection (Bankr. S.D.N.Y. Case NO. 14-22047) on Jan. 13, 2014. Ollie Allen Holding Company LLC sought bankruptcy (Case NO. 14-22204) on Feb. 18, 2014. U.S. Trustee was unable to form an official unsecured creditors' committee. ALPHA NATURAL: Tweaks Bankruptcy Loans -------------------------------------- Peg Brickley, writing for The Wall Street Journal, reported that Alpha Natural Resources has hammered out deals with unhappy creditors and representatives of its coal mine workforce in a bid to win court approval of a $692 million bankruptcy loan. According to the report, told that negotiations cleared up criticism that threatened to derail the deal, Judge Kevin Huennekens indicated at a hearing on Sept. 15 in the U.S. Bankruptcy Court in Richmond, Va., that he will sign off on the chapter 11 financing for the company. Some final details remain to be worked out before the order is ready for the judge's signature, the Journal reported. The bankruptcy loan Alpha brought to court on Sept. 15 marks a "dramatic change" from an earlier version that drew a volley of criticism, said Andrew Leblanc, lawyer for the official committee representing Alpha's unsecured creditors, the Journal cited. Changes negotiated in recent weeks persuaded the committee to drop its opposition to Alpha's bankruptcy financing, he said, the Journal further cited. About Alpha Natural Alpha Natural -- http://www.alphanr.com-- is a coal supplier, ranked second largest among publicly traded U.S. coal producers as measured by 2014 consolidated revenues of $4.3 billion. Alpha Natural Resources, Inc. (Bankr. E.D. Va. Case No. 15-33896) and its affiliates filed separate Chapter 11 bankruptcy petitions on Aug. 3, 2015, listing $9.9 billion in total assets as of June 30, 2015, and $7.3 billion in total liabilities as of June 30, 2015. The petition was signed by Richard H. Verheij, executive vice president, general counsel and corporate secretary. Judge Kevin R. Huennekens presides over the case. David G. Heiman, Esq., Carl E. Black, Esq., and Thomas A. Wilson, Esq., at Jones Day serve as the Debtors' general counsel. Tyler P. Brown, Esq., J.R. Smith, Esq., Henry P. (Toby) Long, III, Esq., and Justin F. Paget, Esq., serve as the Debtors' local counsel. Rothschild Group is the Debtors' financial advisor. Alvarez & Marshal Holdings, LLC, is the Debtors' investment banker. Kurtzman Carson Consultants, LLC, is the Debtors' claims and noticing agent. The U.S. Trustee for Region 4 appointed seven creditors of Alpha Natural Resources Inc. to serve on the official committee of unsecured creditors. AMERICAN AGENCIES: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- American Agencies Co., Inc. 15-07088 Urbanizacion Caribe Sector El Cinco 1554 Avenida Ponce De Leon Barrio Monacillos San Juan, PR 00926 New Steel, Inc. 15-07090 Carr. 887 KM 0.7 Ind. Julio N. Matos Bo. Saint Just Carolina, PR 00986 Nature of Business: Manufacturer of steel structures Chapter 11 Petition Date: September 15, 2015 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtors' Counsel: Carmen D Conde Torres, Esq. C. CONDE & ASSOC. 254 San Jose Street, 5th Floor San Juan, PR 00901-1523 Tel: 787-729-2900 Fax: 787-729-2203 Email: notices@condelaw.com Debtors' Doris Barroso Vicens, CPA Accountant: RSM ROC & COMPANY Total Total Assets Liabilities ---------- ----------- American Agencies Co. $6.8-Mil. $9.7-Mil. New Steel, Inc. $8.4-Mil. $12.2-Mil. Total Assets: $6.8 million Total Liabilities: $9.7 million The petition was signed by Omir Mendez, president. A. List of American Agencies Co.'s 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Air Louvers Vendor $10,545 Blueline Rental PR, Inc. Vendor $7,030 Cal-Royal Products, Inc. Vendor $14,364 Carribean Express Freight, Inc. Freight Services $16,667 Caribe Tecno, S.E. Overpayment $197,968 Daniel Delgado Lopez Prof. Services $17,635 Gonzalez Trading Corp. Vendor $21,719 Hager Hinge Company Vendor $23,795 Joviri, Inc. Credit Facility $420,000 Ave. Ponce De Leon, #1554 Bo. Monacillos San Juan, PR 00927 Lawrence Hardware 1, Inc. Vendor $6,780 Linde Gas PR. Inc. Vendor $8,047 Luis Figueroa Prof. Services $4,840 Master Lock Company, LLC Vendor $7,610 New Steel, Inc. Inventory & $6,188,833 PO Box 9021516 Services San Juan, PR 00902-1216 Nu-Vue Industires of PR Vendor $4,534 Overly Door Company Vendor $6,225 Pioneer Industries, Inc. Vendor $91,109 PR Wire Products, Inc. Vendor $32,458 Sargent MFG. Co. Vendor $26,625 Trujillo Trucking Rental, Inc. Vendor $5,800 B. List of New Steel's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Anacleto Jimenez Vacation Salary $1,710 Angel Rodriquez Gonzalez Preferred Stocks $6,455,773 Las Flores De Type "A" Montehiedra 300 Blvd. De La Montana APT #646 San Juan, PR 00926-7029 Carolina Building Materials Vendor $9,926 Guillermo Menendez Rodriquez Preferred Stock $578,578 URB. Sagrado Corazon Type "B" 354 Calle San Gerardo San Juan, PR 00926 Infra-Metals Company Vendor $4,350 Jorge Velazquez Vacation Salary $789 Jose Lajara Vacation Salary $773 Jose Perez Vacation Salary $829 Linde Gas PR, Inc. Vendor $2,998 Lucy Rodriquez Preferred Stock $1,818,304 URB. Sagrado Corazon Type "B" 354 Calle San Gerardo San Juan, PR 00926 Power Security, Inc. Security Services $5,500 Praxair PR Vendor $4,122 Prendes Safety Vendor $870 Priscilla Menendez Preferred Stock $578,578 URB. Sagrado Corazon Type "B" San Genero 354 San Juan, PR 00926 Rafael Benitez Vendor $1,016 Rimco, Inc. Vendor $798 Rodriquez Vacuum Services, Inc. Vendor $2,250 Sherwin Williams Co. Vendor $3,789 Sigma Sales, Inc. Vendor $8,215 Steel Services & Supplies, Inc. Vendor $6,978 ATLANTIC & PACIFIC: Hires FTI Consulting as Financial Advisor ------------------------------------------------------------- The Great Atlantic & Pacific Tea Company, Inc., et al., seek permission from the U.S. Bankruptcy Court for the Southern District of New York to employ FTI Consulting, Inc. as financial advisor, nunc pro tunc to the July 19, 2015 commencement date. FTI Consulting agreed to provide the following financial advisory and consulting services to: Financial Advisory Services: (a) rendering general financial advice, financial analytics and modeling as directed by Weil or the Debtors; (b) assisting in the development and analysis of various strategic alternatives available to the Debtors; (c) determining potential creditor recoveries under alternative scenarios; (d) assisting with analyzing and developing strategies to address the Debtors' existing obligations; (e) assisting in developing tactics and strategies for negotiating with the holders of the Debtors' obligations; (f) assisting with evaluating the Debtors' cash flows under a variety of scenarios; (g) assisting with sizing and securing DIP financing as needed to pursue potential asset sale strategies; (h) attending meetings, presentations and negotiations as may be requested by Weil or the Debtors; and (i) providing other services as requested by Weil or the Debtors. Contingency Planning: (a) assisting with developing accounting and operating procedures to segregate prepetition and post-petition business transactions; (b) supporting the preparation of first day motions and developing procedures and processes necessary to implement such motions; (c) assisting in the development of a creditor matrix; (d) working with the Debtors and their communications advisors to develop chapter 11 communications; (e) developing training materials and assist in training the Debtors' personnel with respect to chapter 11 procedures; (f) assisting with developing a process and infrastructure to respond to and track calls received from suppliers, employees and other constituents, including the production of various management reports reflecting call center activity; (g) assisting in the identification of executory contracts and unexpired leases and performing cost/benefit evaluations with respect to the assumption or rejection of each, as needed; (h) preparing the Debtors with respect to financial related disclosures that will be required by the Court; (i) assisting in the development of a key employee bonus plan, if needed; and (j) rendering such other restructuring and general business consulting or such other assistance for the Debtors as the Debtors' management or Weil may request. Asset Sales: (a) assisting with data collection and information gathering for third party due diligence relating to potential transactions with financial and strategic buyers; (b) assisting in developing, negotiating and executing plan of reorganization scenarios, 363 sales or other potential sales of all or portions of the Debtors' assets; and (c) rendering such other advice or providing assistance to the Debtors' as the Debtors' management or Weil may request. The Debtors have agreed to pay FTI the compensation set forth in the Engagement letter (the "Fee Structure"). The principal terms of the Fee Structure are as follows: -- Hourly Fees: Fees for services rendered by FTI pursuant to the Engagement Letter will be based upon time incurred in providing such services, multiplied by 75% of FTI's standard hourly rates, which are as follows: Senior Managing Directors $800-$975 Directors/Managing Directors $595-$795 Consultants/Senior Consultants $315-$570 Administrative/Paraprofessionals $125-$250 -- Completion Fee. The Debtors, in their discretion, and subject to this Court's approval, may pay FTI a fee (the "Completion Fee") in an amount up to $2,000,000. -- Expenses. The Debtors will reimburse FTI for reasonable and customary out-of-pocket expenses incurred during the engagement, including telephone, overnight mail, messenger, travel, meals, accommodations and other expenses specifically related to the engagement. -- Court Testimony. In addition, if FTI and/or any of its employees are required to testify or provide evidence at or in connection with any judicial or administrative proceeding relating the engagement, the Debtors will compensate FTI at its regular hourly rates and reimburse FTI for reasonable allocated and direct expenses with respect thereto. Prior to the Commencement Date, the Debtors provided FTI with a retainer of $18,809.81 in December 2013 then increased the retainer by $700,000.00 in June 2015 (these amounts together, the "Retainer"). Michael R. Nowlan, 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: Michael R. Nowlan FTI CONSULTING, INC. 200 State Street, 9th Floor Boston, MA 02109 Tel: (617) 897-1500 Fax: (617) 897-1510 About Atlantic & Pacific Based in Montvale, New Jersey, The Great Atlantic & Pacific Tea Company, Inc., and its affiliates are one of the nation's oldest leading supermarket and food retailers, operating approximately 300 supermarkets, beer, wine, and liquor stores, combination food and drug stores, and limited assortment food stores across six Northeastern states. The primary retail operations consist of supermarkets operated under a variety of well known trade names, or "banners," including A&P, Waldbaum's, SuperFresh, Pathmark, Food Basics, The Food Emporium, Best Cellars, and A&P Liquors. The Company employs approximately 28,500 employees, over 90% of whom are members of one of twelve local unions whose members are employed by the Debtors under the authority of 35 separate collective bargaining agreements. Then with 429 stores, A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010, and in 2012 emerged from Chapter 11 bankruptcy as a privately held company with 320 supermarkets. On July, 19, 2015, with 300 stores, A&P and 20 affiliated debtors each filed a Chapter 11 petition (Bankr. S.D.N.Y.) after reaching deals for the going concern sales of 120 stores. The Debtors are seeking joint administration under Case No. 15-23007. As of Feb. 28, 2015, the Debtors reported total assets of $1.6 billion and liabilities of $2.3 billion. The Debtors tapped Weil, Gotshal & Manges LLP as counsel, Evercore Group L.L.C., as investment banker, FTI Consulting, Inc., as financial advisor, Hilco Real Estate, LLC, as real estate advisor, and Prime Clerk LLC, as claims and noticing agent. The U.S. Trustee for Region 2 appointed seven creditors to serve On the official committee of unsecured creditors. Elise S. Frejka was appointed as consumer privacy ombudsman. AUDATEX HOLDINGS: Moody's Puts B1 CFR Under Review for Downgrade ---------------------------------------------------------------- Moody's Investors Service placed the ratings of Audatex Holdings, LLC and Audatex North America, Inc. ("Audatex" or "Solera"), including the B1 Corporate Family Rating, under review for a downgrade, upon Audatex's September 14th announcement that it had entered into a definitive merger agreement with an affiliate of Vista Equity Partners ("Vista") for a Vista-led investment consortium to acquire Audatex. The transaction's enterprise valuation, approximately $6.5 billion, is about $3.5 billion in excess of Audatex's existing debt, and represents a multiple of roughly 15.0 times Moody's-adjusted EBITDA for the fiscal year ended June 30, 2015. The valuation reflects the consortium's offer to purchase Solera for $55.85 per share, a 13% premium over the company's September 11th closing share price of $49.45. Moody's also affirmed Audatex's SGL-1 liquidity rating. Moody's took the following rating actions on Audatex Holdings, LLC: Ratings placed on review for downgrade: B1 CFR Ba3-PD PDR B1 Senior Unsecured notes Ratings affirmed: Speculative Grade Liquidity rating at SGL-1 RATINGS RATIONALE The review reflects Moody's expectation that the acquisition's financing structure will likely result in a meaningful increase in debt and raise the company's Moody's-adjusted debt to EBITDA leverage to above its already high 7.0 times. In its review, Moody's will also consider Solera's ability to capitalize on its competitive position, growth prospects to mitigate the effects of higher leverage, as well as the effect on Audatex's existing debt and the final terms and composition of the transaction's financing. The company indicated existing debt would be a part of the acquisition financing. However, Audatex's existing senior unsecured notes have a change-of-control put right. If the notes remain outstanding following the acquisition, the notes could be notched below the CFR since the indentures provide the company the ability to issue secured debt up to 3.75x and up to an additional $100 million of secured bank debt without having to pledge the collateral to the note holders. Audatex does not currently have material secured debt. A shift to a multi-layered debt structure would also likely result in a downgrade of the Probability of Default Rating to a level in line with the CFR. Moody's affirmed the SGL-1 speculative-grade liquidity rating because the acquisition will not have an immediate effect on the company's liquidity position. However, the SGL rating could be lowered in conjunction with the acquisition financing if liquidity is weakened by factors such as a reduction in cash or free cash flow or the introduction of debt with maintenance covenants. The closing of the merger is expected no later than the first calendar quarter of 2016, and is conditioned upon customary closing events, including regulatory approval and the approval of Solera's stockholders (its board of directors has already unanimously approved the transaction). Audatex Holdings, LLC is a wholly-owned subsidiary of Solera Holdings, Inc. ("Solera", ticker: SLH) and a leading provider of risk and asset management software and services to the automotive and property marketplace, including the global property and casualty industry. Customers for automobile insurance-claims-processing solutions include automobile insurance companies, collision repair facilities, appraisers, and dealers. Moody's expects revenues, with the benefit of significant recent acquisitions, of approximately $1.3 billion for the 2016 fiscal year (ending in June 2016). BAHA MAR: Comments on US Court Ruling on Chapter 11 Process ----------------------------------------------------------- Baha Mar on Sept. 15 stated that it is disappointed that the motions by China State Construction and The Export-Import Bank of China to vacate Baha Mar's Chapter 11 process have been granted by the U.S. Court, with the exception of the Chapter 11 case of Northshore Mainland Services. Accordingly, Baha Mar will explore its alternatives with respect to the Sept. 15 Court decision. Baha Mar stated, "With respect to the decision, we do note that the Court affirmed that it was appropriate for Baha Mar to file for Chapter 11 in the U.S. Court and that the Chapter 11 filings were made in good faith." In its ruling, the Court made clear that the Chapter 11 process "with all stakeholders participating, under these circumstances, would be an ideal vehicle for the restructuring of this family of related companies with the ultimate goal of finishing a project said to be 97% complete and, upon its exit from Chapter 11, to be in sound financial footing, with appropriate treatment of creditors." The Court also made the point: "If I were convinced that denying the Dismissal Motions would have the effect desired by the Debtors -- bringing CCA, CEXIM and the government of The Bahamas back to the bargaining table, I might consider denying the Dismissal Motions. But the evidence does not reflect this and I am not convinced this will happen in short order." Furthermore, in his decision, Judge Carey of the U.S. Court noted, "It may well be that the Northshore Chapter 11 case could serve as a useful vehicle for the parties as part of an overall resolution of the corporate family's difficulties, in concert with the proceedings in The Bahamas." Baha Mar emphasized, "Our priority continues to be ensuring Baha Mar is in a position to be completed properly and opened successfully as soon as possible. We are continuing to do all we realistically can, including working with the provisional liquidators appointed by The Bahamian Supreme Court, to try to resolve the issues that have prevented Baha Mar from opening." About Baha Mar Orlando, Florida-based Northshore Mainland Services Inc., Baha Mar Enterprises Ltd., and their affiliates sought protection under Chapter 11 of the Bankruptcy Code on June 29, 2015 (Bankr. D.Del., Case No. 15-11402). Baha Mar owns, and is in the final stages of developing, a 3.3 million square foot resort complex located in Cable Beach, Nassau, The Bahamas. The bankruptcy cases are assigned to Judge Kevin J. Carey. The Debtors are represented by Paul S. Aronzon, Esq., and Mark Shinderman, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Los Angeles, California; and Gerard Uzzi, Esq., Thomas J. Matz, Esq.,and Steven Z. Szanzer, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York. The Debtors' Delaware counsel are Laura Davis Jones, Esq., James E. O'Neill, Esq., Colin R. Robinson, Esq., and Peter J. Keane, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware. The Debtors' Bahamian counsel is Glinton Sweeting O'Brien. The Debtors' special litigation counsel is Kobre & Kim LLP. The Debtors' construction counsel is Glaser Weil Fink Howard Avchen & Shapiro LLP. The Debtors' investment banker and financial advisor is Moelis Company LLC. The Debtors' claims and noticing agent is Prime Clerk LLC. BDC SHARED SERVICES: Case Summary & 20 Top Unsecured Creditors -------------------------------------------------------------- Debtor: BDC Shared Services LLC 46 Vreeland Drive, Suite 6 Skillman, NJ 08558 Case No.: 15-27374 Chapter 11 Petition Date: September 15, 2015 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Hon. Michael B. Kaplan Debtor's Counsel: Barry J. Roy, Esq. RABINOWITZ LUBETKIN & TULLY, LLC 293 Eisenhower Parkway, Suite 100 Livingston, NJ 07039 Tel: 973-597-9100 Fax: 973-597-9119 Email: broy@rltlawfirm.com Total Assets: $107,722 Total Liabilities: $20.5 million The petition was signed by Todd Singer, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/njb15-27374.pdf BLACK ELK ENERGY: Sec. 341 Meeting Set for Oct. 19 -------------------------------------------------- A Meeting of Creditors pursuant to Sec. 341(a) of the Bankruptcy Code is scheduled for Oct. 19, 2015 at 1:30 p.m. in the case of Black Elk Energy Offshore Operations, LLC. The meeting will be held at Houston, 515 Rusk Suite 3401. Proofs of claim are due by Jan. 17, 2016. Black Elk holds oil and natural gas interests in offshore properties in the Gulf of Mexico. CAESARS ENTERTAINMENT: TJM Offers $3MM for Shuttered Miss. Casino ----------------------------------------------------------------- Jonathan Randles at Bankruptcy Law360 reported that Caesars Entertainment Operating Co. told an Illinois bankruptcy court that it has reached a deal in place to sell its shuttered Harrah's Tunica Casino in Mississippi for $3 million to TJM Properties Inc. after spending three years looking for a potential suitor. CEOC filed a motion seeking approval of the proposed sale, saying it will continue seeking better offers for the property but that TJM's stalking horse bid "provides significant value" to the debtors estate. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc., is one of the world's largest casino companies. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's in mid-November 2010. In January 2015, Caesars Entertainment and subsidiary Caesars Entertainment Operating Company, Inc., announced that holders of more than 60% of claims in respect of CEOC's 11.25% senior secured notes due 2017, CEOC's 8.5% senior secured notes due 2020 and CEOC's 9% senior secured notes due 2020 have signed the Amended and Restated Restructuring Support and Forbearance Agreement, dated as of Dec. 31, 2014, among Caesars Entertainment, CEOC and the Consenting Creditors. As a result, The RSA became effective pursuant to its terms as of Jan. 9, 2015. Appaloosa Investment Limited, et al., owed $41 million on account of 10% second lien notes in the company, filed an involuntary Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case No. 15-10047) on Jan. 12, 2015. The bondholders are represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP. CEOC and 172 other affiliates -- operators of 38 gaming and resort properties in 14 U.S. states and 5 countries -- filed Chapter 11 bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and total debt of $19.8 billion as of Sept. 30, 2014. Delaware Bankruptcy Judge Kevin Gross entered a ruling that the bankruptcy proceedings will proceed in the U.S. Bankruptcy Court for the Northern District of Illinois. Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is the Debtors' restructuring advisors. Prime Clerk LLC acts as the Debtors' notice and claims agent. Judge Benjamin Goldgar presides over the cases. The U.S. Trustee has appointed seven noteholders to serve in the Official Committee of Second Priority Noteholders and nine members to serve in the Official Unsecured Creditors' Committee. The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner. * * * The Troubled Company Reporter, on April 27, 2015, reported that Fitch Ratings has affirmed and withdrawn the Issuer Default Ratings (IDR) and issue ratings of Caesars Entertainment Operating Company (CEOC). These actions follow CEOC's Chapter 11 filing on Jan. 15, 2015. Accordingly, Fitch will no longer provide ratings or analytical coverage for CEOC. In addition, Fitch has affirmed the IDR and issue rating of Chester Downs and Marina LLC (Chester Downs) and the ratings have been simultaneously withdrawn for business reasons. CALIFORNIA RESOURCES: Moody's Lowers Corp. Family Rating to B1 -------------------------------------------------------------- Moody's Investors Service downgraded California Resources Corporation's (CRC) Corporate Family Rating (CFR) to B1 from Ba2, reflecting weak financial performance in the current commodity price environment. The company's senior unsecured notes were downgraded to B2 from Ba2 and its term loan and revolving credit facility was upgraded to Ba1, as a result of becoming secured under the terms of the existing credit agreement. Moody's also affirmed CRC's SGL-3 Speculative Grade Liquidity Rating. The rating outlook is negative. "CRC's debt structure and relatively high cost position in the current low oil price environment has stressed its credit metrics," said James Wilkins, a Moody's Vice President. "It will be difficult for the company to realize meaningful debt reduction from generation of positive free cash flow." The following summarizes the ratings actions. California Resources Corporation Ratings Downgraded: Corporate Family Rating: B1 from Ba2 Probability of Default Rating: B1-PD from Ba2-PD Senior unsecured notes: B2 (LGD4) from Ba2 (LGD4) Ratings Upgraded: Revolving credit facility: Ba1 (LGD2) from Ba2 (LGD4) Term loan: Ba1 (LGD2) from Ba2, LGD4 Ratings affirmed: Speculative Grade Liquidity Rating, affirmed at SGL-3 Outlook: Negative RATINGS RATIONALE The downgrade of CRC's CFR to B1 reflects its weak credit metrics for leverage, cash flow coverage, and operating and capital efficiency, that are more typical of single-B or Caa rated peers. CRC's relatively high cost production (production, SG&A and interest costs totaled $31.71 per boe for the second quarter 2015) and weak commodity prices that Moody's does not expect to improve materially in 2016, leaves CRC will a limited ability to generate positive free cash flow and reduce balance sheet debt. Given CRC's high cost structure, we expect to see leveraged cash margins between $8-$11 per boe over the next 12 to 18 months. The company has relatively little of its 2016 production hedged (just 5,000 bpd or less than 5%). The company has stated that it plans to monetize assets and will potentially consider other transactions that would allow it to reduce balance sheet debt to $5 billion by year-end 2016. Even so, its leverage and cash flow metrics will be weak for the B1 CFR. In 2015, CRC has limited its capital expenditures to levels that can be funded by internally generated cash flow. The company has reduced the number of rigs working to three in January 2015 from a peak of 27 in October 2014. Moody's believes this level of spending and drilling activity could lead to only a small decline in production in 2015 and 2016 compared to 2014. In addition, with the reinvestment of its cash flow, there is little ability to reduce the company's debt burden using free cash flow. CRC's B1 CFR is supported by the company's large scale and legacy production as one of the largest operators in California. At year-end 2014, the company reported roughly 550 million boe of proved developed reserves and during the second quarter 2015 reported 161,000 boe of production per day. This scale is larger than other oil-focused B1-rated companies. The quality of CRC's reserve base is another credit positive. CRC's production is mature with a well-defined and shallow decline rate. The reserves are well-diversified and have a reserve life index that is longer than most peers. CRC's SGL-3 Speculative Grade Liquidity Rating reflects Moody's expectation the company will have adequate liquidity through 2016 supported by its funds from operations, modest cash balances ($37 million as of June 30, 2015) and availability under its revolving credit facility due 2019. The credit facility agreement covering the term loan and revolving credit facility calls for the loans to be secured when the CFR is Ba3 or lower. As a result of the CFR downgrade to B1, the revolving credit facility loans are subject to a borrowing base. Moody's expects that the borrowing base will be sufficient for CRC to have access to the full $1.25 billion in commitments, but such borrowing base is a function of crude oil and natural gas commodity prices. The company had $590 million of borrowings and $27 million of letters of credit as of June 30, 2015, and will remain reliant on its revolver. CRC expects to limit capital spending such that its free cash flow is breakeven or positive. It does not have near-term debt maturities. The company does not pay material dividends in its common stock. In February 2015, the credit facility was amended to relax its financial covenants. In return, a liquidity requirement was added that effectively reduces availability under the revolving credit facility to $1.25 billion and the rating trigger was modified so that a Ba3 CFR would give the lenders an annual borrowing base to govern availability, as well as collateral security. Moody's expects the company will remain in compliance with the two financial covenants in the revolver -- a maximum debt to EBITDAX and minimum EBITDAX to interest expense. The term loan and revolving credit facility are rated three notches above the B1 CFR to reflect their secured nature and priority of claim on assets over unsecured debt (including $5 billion of senior notes) in accordance with Moody's Loss-Given-Default rating methodology. The senior unsecured notes are now rated B2, one notch below the B1 CFR, as a result of being contractually subordinated in claim to the secured debt. The negative outlook reflects uncertainty in CRC's ability to improve its cash flow and leverage metrics to levels supportive of the B1 CFR. The ratings could be downgraded if retained cash flow to debt is not expected to increase above 10% on a sustained basis, CRC does not continue to generate positive free cash flow or CRC does not improve its leverage. It is unlikely that the ratings will be upgraded given current cash flow and leverage expectations. To be considered for an upgrade, the ratio of retained cash flow to debt should be projected to be sustained above 20%. California Resources Corporation, headquartered in Los Angeles, is an independent, exploration and production company with operations exclusively in California. It was spun out of Occidental Petroleum in November 2014. CARE CAPITAL: S&P Assigns 'BB+' Corp. Credit Rating --------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' corporate credit rating to Care Capital Properties Inc. (CCP). The outlook is stable. "Our corporate credit rating on CCP incorporates the company's mid-sized portfolio of health care assets, the reimbursement risk inherent in the SNF industry, and very manageable debt leverage," said credit analyst Michael Souers. "We believe CCP's management is committed to a conservative financing strategy, and we expect it to fund future investments in a leverage-neutral manner." The outlook is stable. S&P expects stable cash flows from CCP's portfolio of triple-net leased properties and believe tenant-level rent coverage will remain relatively flat in a generally unchanged reimbursement environment. S&P thinks coverage metrics will weaken as CCP issues long-term fixed-rate debt, but expects debt to EBITDA will remain around 5.0x over the next two years. S&P could consider a downgrade if tenant concentration rises modestly or operating results deteriorate, possibly driven by reimbursement issues that cause rent coverage levels to drop meaningfully. Moreover, S&P would also consider lowering the rating if the company aggressively pursues large debt-financed acquisitions that cause debt to EBITDA to rise above 6.5x for a sustained period, given the potential volatility associated with government reimbursement programs. While unlikely in the near term, S&P would consider a positive rating action if CCP builds scale in a leverage-neutral fashion while improving tenant and geographic diversification. Moreover, S&P would also need to see the company maintain or improve its tenant-level rent coverage and grow into a more mature capital structure, with far less reliance on floating-rate debt. The reimbursement risk inherent with the skilled nursing business also reduces the likelihood of an upgrade over the next 12 months. CLAIRE'S STORES: Incurs $18.8 Million Net Loss in Second Quarter ---------------------------------------------------------------- Claire's Stores, Inc. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $18.8 million on $347.58 million of net sales for the three months ended Aug. 1, 2015, compared to a net loss of $20.6 million on $377.8 million of net sales for the three months ended Aug. 2, 2014. For the six months ended Aug. 1, 2015, the Company reported a net loss of $54.3 million on $667.6 million of net sales compared to a net loss of $58.7 million on $731.2 million of net sales for the six months ended Aug. 2, 2014. As of Aug. 1, 2015, the Company had $2.5 billion in total assets, $2.9 billion in total liabilities and $390.22 million in stockholders' deficit. Cash Position As of Aug. 1, 2015, the Company had cash and cash equivalents of $83 million and all cash equivalents were maintained in one money market fund invested exclusively in U.S. Treasury Securities. In addition, as of Aug. 1, 2015, the Company's foreign subsidiaries held cash and cash equivalents of $41.7 million. During the six months ended Aug. 1, 2015, the Company repatriated cash held by foreign subsidiaries but did not accrue U.S. income taxes since the amount of its remaining U.S. net operating loss carry forwards was sufficient to offset the associated income tax liability. During the remainder of Fiscal 2015, the Company expects a portion of its foreign subsidiaries' future cash flow generation to be repatriated to the U.S. to meet certain liquidity needs. Based upon the amount of the Company's remaining U.S. net operating loss carryforwards as of Aug. 1, 2015, the Company does not expect to pay U.S. income tax on future Fiscal 2015 repatriations. When the Company's U.S. net operating loss carryforwards are no longer available, the Company would be required to accrue and pay U.S. income taxes, net of any foreign tax credit benefit, on any such repatriation. "We anticipate that cash generated from operations, borrowings under our Credit Facilities, and future refinancings of our indebtedness will be sufficient to allow us to satisfy payments of interest and principal on our indebtedness as they become due, to fund new store expenditures, and future working capital requirements in both the next twelve months and over the longer term. However, this will depend, in part, on our future operating performance. Our future operating performance and liquidity, as well as our ability to refinance our indebtedness, may be adversely affected by general economic, financial, and other factors beyond our control," the Company states in the report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/c2rDV0 About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- operates as a specialty retailer of fashion accessories and jewelry for preteens and teenagers, as well as for young adults in North America and internationally. It offers jewelry products that comprise costume jewelry, earrings, and ear piercing services; and accessories, including fashion accessories, hair ornaments, handbags, and novelty items. Based in Pembroke Pines, Florida, Claire's Stores operates under two brands: Claire's(R), which operates worldwide and Icing(R), which operates only in North America. As of Jan. 31, 2009, Claire's Stores, Inc., operated 2,969 stores in North America and Europe. Claire's Stores also operates through its subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. The Company also franchises 198 stores in the Middle East, Turkey, Russia, South Africa, Poland and Guatemala. Claire's reported a net loss of $212 million for the fiscal year ended Jan. 31, 2015, compared to a net loss of $65.3 million for the fiscal year ended Feb. 1, 2014. * * * As reported by the TCR on April 13, 2015, Moody's Investors Service downgraded Claire's Corporate Family Rating (CFR) to Caa2 from Caa1. The downgrade of Claire's ratings reflect continued weak operating performance and deterioration of its liquidity profile. The TCR reported in April 2015 that Standard & Poor's Ratings Services lowered its corporate credit rating on Claire's Stores Inc. to 'CCC' from 'B-'. "The rating action reflects our belief that Claire's could violate its financial covenant under its revolving credit facility in the upcoming quarters, given continuously weak operating trends," said credit analyst Mariola Borysiak. CRP-2 HOLDINGS: Court Approves Hiring of FrankGecker as Counsel --------------------------------------------------------------- CRP-2 Holdings AA, L.P. sought and obtained permission from the Hon. Donald R. Cassling of the U.S. Bankruptcy Court for the Northern District of Illinois to employ FrankGecker LLP as counsel, retroactive to the July 21, 2015 petition date. The Debtor requires FrankGecker to: (a) advise the Debtor concerning its powers and duties as a debtor in possession in the continued operations of its business and management of its properties; (b) attend meetings and negotiate with representatives of creditors and other parties in interest; (c) advise the Debtor on the conduct of its chapter 11 case, including all of the legal and administrative requirements of operating in chapter 11; (d) represent the Debtor in proceedings and hearings in the United States District and Bankruptcy Courts for the Northern District of Illinois; (e) act to help protect, preserve and maximize the value of the Debtor's estate; (f) analyze proofs of claim filed against the Debtor and potential objections to such claims; (g) prosecute and defend litigation matters and such other matters that might arise during the Debtor's chapter 11 case; (h) prepare or assist in the preparation of all necessary motions, applications, reports, and pleadings in connection with the Debtor's chapter 11 case, including the solicitation of the chapter 11 plan filed herein and related documents; and (i) perform such other legal services for the Debtor in connection with its chapter 11 case that the Debtor determines are necessary and appropriate. FrankGecker will be paid at these hourly rates: Partners $695 Senior Counsel $430 Associates $310-$410 Paraprofessionals $145-$200 FrankGecker will also be reimbursed for reasonable out-of-pocket expenses incurred. As of the Petition Date, FrankGecker holds $195,322.72 as a retainer for post-petition services. Joseph D. Frank, partner of FrankGecker, 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. FrankGecker can be reached at: Joseph D. Frank, Esq. FRANKGECKER LLP 325 North LaSalle St., Ste 625 Chicago, IL 60654 Tel: (312) 276-1400 Fax: (312) 276-0035 E-mail: jfrank@fgllp.com About CRP-2 Holdings CRP-2 Holdings AA, L.P., a Delaware limited partnership that was formed in May of 2006 for the primary purpose of acquiring and managing real property, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Ill. Case No. 15-24683) on July 21, 2015. Neil Waisnor signed the petition as vice president. FrankGecker LLP serves as the Debtor's counsel. The Debtor disclosed total assets of $171,349,208 and total liabilities of $166,637,095. Judge Donald R. Cassling is assigned to the case. The U.S. Trustee appointed two creditors to serve on the official committee of unsecured creditors. CUMULUS MEDIA: Moody's Lowers CFR to B3, Outlook Stable ------------------------------------------------------- Moody's Investors Service downgraded Cumulus Media Inc.'s Corporate Family Rating to B3 from B2, Probability of Default Rating to B3-PD from B2-PD, and Speculative Grade Liquidity Rating to SGL-3 from SGL-2. Moody's also downgraded the company's secured credit facilities to B2 from B1 and senior unsecured 7.75% notes to Caa2 from Caa1. The downgrades reflect Moody's view that the pace of debt repayment and delevering will be slower than expected. Although $200 million of pending asset sales are to be completed within the next 18 months, Moody's now believes revenue and EBITDA growth will remain below the agency's prior expectations reflecting underperformance in key markets and with the company's radio networks. The outlook is stable. Issuer: Cumulus Media Inc. Downgraded: Corporate Family Rating: Downgraded to B3 from B2 Probability of Default Rating: Downgraded to B3-PD from B2-PD Speculative Grade Liquidity (SGL) Rating: Lowered to SGL-3 from SGL-2 Outlook Actions: Outlook is Stable Issuer: Cumulus Media Holdings Inc. Downgraded: $200 million 1st Lien Senior Secured Revolver due 2018 (undrawn): Downgraded to B2, LGD3 from B1, LGD3 1st Lien Senior Secured Term Loan due 2020 ($1.9 billion outstanding): Downgraded to B2, LGD3 from B1, LGD3 $610 million of 7.75% senior notes due 2019: Downgraded to Caa2, LGD5 from Caa1, LGD6 RATINGS RATIONALE Cumulus' B3 Corporate Family Rating reflects Moody's expectation that debt-to-EBITDA will remain elevated and in the mid to high 8x through FYE2015 (including Moody's standard adjustments) due to continued revenue declines in core ad sales and network revenue as well as the absence of political ad spending in 2015, an odd numbered year. We expect leverage to improve in 2016 through a combination of EBITDA growth and debt repayment with free cash flow plus proceeds from planned asset sales ($125 million in 1Q2016 plus another $75 million within 12 months). Despite the decline in EBITDA margins to roughly 25% for 2015 compared to 33% in 2013, we expect the company to generate low single digit percentage free cash flow-to debt in 2015 improving to the mid single digit percentage range in 2016. Management is intent on turning around performance and has hired numerous executives with experience in businesses Cumulus has targeted for growth. Ratings are supported by Cumulus' national scale and our expectation that revenue will stabilize in 2016 as increased demand for political advertising in the second half of 2016, an election year, and incremental sales from newer revenue streams (sports businesses including the NFL and NASH country music initiatives) offset flat to low single digit percentage declines in core time sales. Management is committed to debt repayment and has repaid more than $500 million of debt and preferred stock since the Citadel acquisition at the end of 2011. Lower leverage will provide some financial flexibility and partially offset risks related to the maturing demand for radio advertising, media fragmentation and potential for increased competition within its markets. Management stated its target reported gross debt-to-EBITDA leverage is 4.0x or better and we expect the company will apply most of its free cash flow to repay debt until leverage comes closer to this target. After which, Cumulus may look to fund dividends from a portion of free cash flow, step up investments in organic growth, or fund tuck-in acquisitions. The stable outlook reflects Moody's expectations for Cumulus to achieve generally flat revenue growth over the next 18 months as political ad demand in 2016 and improved network results add to flat to low single digit percentage declines in core time sales. The outlook incorporates an improvement in leverage and coverage ratios as free cash flow and asset sale proceeds (roughly $200 million) are applied to reduce debt balances. The outlook does not include debt financed acquisitions or distributions. Ratings could be downgraded if we expect debt-to-EBITDA will be sustained above 8.0x (including Moody's standard adjustments) after the sale of real estate in LA (expected 1Q2016) due to deterioration in performance as a result of increased competition or weak ad demand in key markets, or audience and advertising revenue migration to competing media platforms. Deterioration in liquidity could also result in a downgrade. We could consider an upgrade of ratings if the company sustains leverage under 6.5x (including Moody's standard adjustments) with expectations for stable operating performance. Liquidity would also need to be good with improved availability under the company's committed revolver facilities and free cash flow-to-debt in the high single digit percentage range. The company is not able to draw under the revolver as reported 1st lien net leverage of 6.3x as of June 30, 2015 exceeds the 5.5x test. Headquartered in Atlanta, GA, Cumulus Media Inc. is the largest pure-play radio broadcaster in the U.S. with roughly 460 stations in 90 markets, a nationwide network serving approximately 8,500 broadcast affiliates and numerous digital channels. Cumulus is publicly traded with Crestview Radio Investors, LLC owning an estimated 27% interest. The Dickey family owns roughly 5.1% with Ares Management and Neuberger Berman LLC each owning roughly 4.9% with the remainder being widely held. The company reported $1.1 billion of net revenue for LTM June 30, 2015. DECATUR HOSPITAL: S&P Affirms 'BB+' Rating on 2014 Revenue Bonds ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook to positive from stable and affirmed its 'BB+' long-term rating on Decatur Hospital Authority, Texas' series 2014 hospital revenue bonds. The authority does business as Wise Regional Health System, Decatur Texas (Wise). "The positive outlook reflects our view of Wise's improved operations and maximum annual debt service coverage through the year-to-date period ended June 30, 2015," said Standard & Poor's credit analyst Robert Dobbins. "Furthermore, debt metrics have moderated modestly since we assigned the rating in 2014," Mr. Dobbins added. Wise Regional Health System is a 196-licensed-bed, currently four-campus regional health system located in Decatur, Texas, about 60 miles northwest of Dallas. Facilities include: -- 99-licensed-bed medical-surgical hospital in Decatur (East hospital, main); -- 49-licensed-bed west campus location that offers inpatient rehabilitation, inpatient behavioral medicine, and some ambulatory services; -- 36-licensed-bed inpatient acute-care facility in Bridgeport, Texas, acquired in March 2013 (this facility currently provides emergency care but offers no inpatient services); and -- 12-licensed-bed Parkway surgical and cardiovascular hospital that Wise opened in May 2014 in north Fort Worth. In addition to the hospitals, Wise has eight primary/specialty clinics, six imaging centers, three bariatric surgery program offices, and dialysis and physical therapy centers located in growing population areas on the west side of the Dallas-Fort Worth metroplex. DUNE ENERGY: Combined Disclosure and Plan Hearing Today ------------------------------------------------------- Parties in the Chapter 11 case of Dune Energy, Inc. will reconvene in bankruptcy today, Sept. 17. U.S. Bankruptcy Judge H. Christopher Mott is slated to hold a combined hearing on the Chapter 11 Plan and Disclosure Statement at 10:00 a.m. (Central Time). The Plan provides for the resolution of Claims against and Equity Interests in the Debtors and implements a Distribution scheme derived from the effectuated Sale of the Debtors' Asset to the Buyer. In concert with the First Lien Agent and the Committee, the Debtors have designed a structure whereby Administrative Claims and Priority Claims will be satisfied, the First Lien Lenders will receive the Class 3.1 Recoveries, and the Plan Trust will be created to provide meaningful recoveries to the Debtors' Creditors. Finally, the Plan provides for the wind down of the Debtors in an orderly and cost efficient manner. The Plan provides that Claims will be satisfied through either Distributions from reserves out of the Sale Proceeds or Distributions from the liquidation of Plan Trust Assets. The Plan Trust will be managed by the Plan Trustee, subject to oversight by the Oversight Committee. The Plan Trustee will be responsible for, among other things, the Distribution of proceeds of the liquidation of the Plan Trust Assets. On the Effective Date under the Plan, the Debtors will (i) enter into the Plan Trust Agreement with the Plan Trustee, and (ii) transfer and convey the Plan Trust Assets to the Plan Trust. The Plan Trust Assets include all of the Estate Property except for the Administrative and Priority Claim Reserve, the Professional Compensation Claim Reserve, the Lien Reserve, the Remaining Assets, and the Net Sale Proceeds. On the Effective Date, the Remaining Assets will vest in the Reorganized Debtors. On the Effective Date, the New Equity Interest in the Reorganized Debtors will be issued to the Plan Trustee, free and clear of all Liens, Claims, interests and encumbrances. Distribution of the Plan Trust Assets will be accomplished through operation of the Plan Trust. The general purpose of the Plan Trust is to provide a mechanism for the disposition of the Plan Trust Assets, and to distribute the proceeds of such assets, net of all expenses, charges, liabilities, and obligations of the Plan Trust, to the holders of Beneficial Interests in accordance with the terms of the Plan. The Plan Trust will not conduct or engage in any trade or business activities, other than those associated with or related to the Plan Trust Assets and the distributions to the Beneficiaries. A copy of the Disclosure Statement is available for free at: http://is.gd/gk9IzH About Dune Energy Dune Energy, Inc. (OTCMKTS: DUNR) is an independent energy company based in Houston, Texas. Since May 2004, the Company has been engaged in the exploration, development, acquisition and exploitation of natural gas and crude oil properties, with interests along the Louisiana/Texas Gulf Coast. The Company's properties cover over 90,000 gross acres across 27 producing oil and natural gas fields. Affiliates Dune Energy, Inc. (Bankr. W.D. Tex. Case No. 15-10336), Dune Operating Company (Bankr. W.D. Tex. Case No. 15-10337), and Dune Properties, Inc. (Bankr. W.D. Tex. Case No. 15-10338) filed separate Chapter 11 bankruptcy petitions on March 8, 2015. The petitions were signed by James A. Watt, president and chief executive officer. Judge Christopher H. Mott presides over the case. Charles A. Beckham, Jr., Esq., Kourtney P. Lyda, Esq., and Kelli M. Stephenson, Esq., at Haynes And Boone, LLP, serve as the Debtors' bankruptcy counsel. Deloitte Transactions And Business Analytics LLP is the Debtors' restructuring advisors. Parkman Whaling LLC is the Debtors' sale professionals. The Debtors listed $229 million in total assets and $144 million in total debts as of Sept. 30, 2014. In their schedules, Dune Energy Inc., et al., disclosed $263,337,172 in assets and $107,981,306 in liabilities. The U.S. trustee overseeing the Chapter 11 case of Dune Energy appointed three creditors to serve on the official committee of unsecured creditors. The Committee is represented by Hugh M. Ray, Esq., at McKool Smith, P.C. E*TRADE FIN'L: Credit Profile Affected by Response to Challenges ---------------------------------------------------------------- E*TRADE's progress in reconstructing its balance sheet has substantially improved the company's key financial metrics, putting it in a position to place more focus on developing its strategic profile in the retail brokerage market and leaving open questions for the company and its creditors, said Moody's Investors Service. In a new report, Moody's said E*TRADE's plans to eliminate the entirety of its $4.4 billion of legacy wholesale funding obligations by the end of Q3 2015 would significantly reduce its annual operating interest expense and further improve its credit profile. "E*TRADE's plans to eliminate all of its wholesale funding obligations is another example of the company's credit-positive capital utilization decisions, since it removes reliance on expensive and confidence-sensitive short-term repurchase (repo) funding" said Moody's Vice President Donald Robertson. "The company continues to make steady progress in improving its balance sheet and earnings from its core retail brokerage franchise." Following E*TRADE's announcement of its plans on September 8, Moody's placed the ratings of E*TRADE Financial Corporation (E*TRADE) (Ba2 senior unsecured) and the long-term ratings of E*TRADE Bank (Baa2 deposits) on review for upgrade, and affirmed E*TRADE Bank's Prime-2 short-term deposit rating. Moody's said its consideration of the company's positive developments and credit challenges could result in an upgrade of its senior unsecured and issuer ratings of up to two notches into investment grade status. However, Moody's said that its review would incorporate several strategic considerations beyond E*TRADE's financial metrics. "Now that E*TRADE has mitigated much of its legacy risk, there may be more calls from shareholders for the company to close the earnings gap with competitors in the retail brokerage space, especially Charles Schwab and TD Ameritrade," said Robertson. "As part of our evaluation, we'll be looking closely at management's options in responding to these challenges." Moody's said that E*TRADE's traditional focus on self-directed electronic retail trading would make it hard for the company to produce strong organic growth in recurring fee-based revenues. In addition, the report notes that the company continues to face heavy competition in its commission-based trading activities. "Should emphasis on growth and increased profitability cause E*TRADE to move into areas of increased risk, such as debt-funded M&A activity, that could be negative to its creditors," said Robertson. "The company's plans on the timing and magnitude of shareholder distributions are also an important part of its credit profile." ENDEAVOUR INT'L: Wants Ch 11 Case Dismissed by End of October ------------------------------------------------------------- Endeavour Operating Corp. said that dismissing its Chapter 11 bankruptcy case by the end of October 2015 would bring an "efficient, timely and economical" resolution by providing for an orderly wind-down. The Company said in court filings that none of its creditors would benefit from having its bankruptcy converted to Chapter 7 as its official committee of unsecured creditor wants. About Endeavour International Houston, Texas-based Endeavour International Corporation (OTC: ENDRQ) (LSE: ENDV) is an oil and gas exploration and production company focused on the acquisition, exploration and development of energy reserves in the North Sea and the United States. On Oct. 10, 2014, Endeavour International and five affiliates filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 14-12308, Endeavour Operating Corp.). The Hon. Kevin J. Carey presides over the cases. As of June 30, 2014, the Company had $1.55 billion in total assets, $1.55 billion in total liabilities, $43.7 million in Series C convertible preferred stock, and a $41.5 million stockholders' deficit. Endeavour Operating Corporation, in its schedules, disclosed $808,358,297 in assets and $1,242,480,297 in liabilities as of the Chapter 11 filing. The Debtors have tapped Weil, Gotshal & Manges LLP as counsel; Richards, Layton & Finger, P.A., as co-counsel; The Blackstone Group L.P., as financial advisor; AlixPartners, LLP, as restructuring advisor; and Kurtzman Carson Consultants LLC, as claims and noticing agent. The U.S. Trustee for Region 3 has appointed three members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Endeavour Operating Corporation and its debtor affiliates. The Committee is represented by David M. Bennett, Esq., Cassandra Sepanik Shoemaker, Esq., and Demetra L. Liggins, Esq., at Thompson & Knight LLP, and Neil B. Glassman, Esq., Scott D. Cousins, Esq., and Evan T. Miller, Esq., at Bayard, P.A. Alvarez & Marsal North America, LLC, serves as financial advisors to the Committee, while UpShot Services LLC serves as website administrator. * * * U.S. Bankruptcy Judge Kevin J. Carey in of Delaware, on Dec. 22, 2014, approved the disclosure statement explaining Endeavour Operating Corporation, et al.'s joint plan of reorganization. The Amended Plan, dated Dec. 19, 2014, provides that it is supported by creditors who collectively hold 82.99% of the March 2018 Notes Claims (Class 3), 70.88% of the June 2018 Notes Claims (Class 4), 99.75% of the 7.5% Convertible Bonds Claims (Class 5), and 69.08% of the Convertible Notes Claims (Class 6). The Amended Plan also provides that holders of general unsecured claims will recover an estimated 15% of the total claims amount, which is estimated to be $6,000,000. The hearing to consider confirmation of the Amended Joint Plan of Reorganization, dated Dec. 23, 2014, of Endeavour Operating Corporation and its affiliated debtors, including Endeavour International Corporation, has been adjourned to a date to be determined. On April 29, 2015, the Debtor announced that, as a result of recent declines in oil and gas prices, the Company withdrew the proposed Plan. ENERGY FUTURE: UST Says Creditor Accord Improperly Solicits Votes ----------------------------------------------------------------- Peter Hall at Bankruptcy Law360 reported that the U.S. trustee's office asked a Delaware bankruptcy court to reject Energy Future Holdings Corp.'s pact with creditors on its $13 billion Chapter 11 reorganization proposal, saying it amounts to an impermissible solicitation of votes by giving some favorable treatment. The trustee's objection to EFH's plan support agreement accompanied a filing critical of the Texas-based electricity giant's Chapter 11 disclosure statement, saying the filing lacks adequate information about fees for professionals, a post-bankruptcy management incentive program and other details of the costs. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80 percent-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. On April 29, 2014, Energy Future Holdings and 70 affiliated companies sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 14-10979) after reaching a deal with some key financial stakeholders to keep its businesses operating while reducing its roughly $40 billion in debt. The Debtors' cases have been assigned to Judge Christopher S. Sontchi (CSS). The Debtors are seeking to have their cases jointly administered for procedural purposes. As of Dec. 31, 2013, EFH Corp. reported assets of $36.4 billion in book value and liabilities of $49.7 billion. The Debtors have $42 billion of funded indebtedness. EFH's legal advisor for the Chapter 11 proceedings is Kirkland & Ellis LLP, its financial advisor is Evercore Partners and its restructuring advisor is Alvarez & Marsal. The TCEH first lien lenders supporting the restructuring agreement are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP as legal advisor, and Millstein & Co., LLC, as financial advisor. The EFIH unsecured creditors supporting the restructuring agreement are represented by Akin Gump Strauss Hauer & Feld LLP, as legal advisor, and Centerview Partners, as financial advisor. The EFH equity holders supporting the restructuring agreement are represented by Wachtell, Lipton, Rosen & Katz, as legal advisor, and Blackstone Advisory Partners LP, as financial advisor. Epiq Systems is the claims agent. Wilmington Savings Fund Society, FSB, the successor trustee for the second-lien noteholders owed about $1.6 billion, is represented by Ashby & Geddes, P.A.'s William P. Bowden, Esq., and Gregory A. Taylor, Esq., and Brown Rudnick LLP's Edward S. Weisfelner, Esq., Jeffrey L. Jonas, Esq., Andrew P. Strehle, Esq., Jeremy B. Coffey, Esq., and Howard L. Siegel, Esq. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee represents the interests of the unsecured creditors of ONLY of Energy Future Competitive Holdings Company LLC; EFCH's direct subsidiary, Texas Competitive Electric Holdings Company LLC; and EFH Corporate Services Company, and of no other debtors. The Committee has selected Morrison & Foerster LLP and Polsinelli PC for representation in this high-profile energy restructuring. The lawyers working on the case are James M. Peck, Esq., Brett H. Miller, Esq., and Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP; and Christopher A. Ward, Esq., Justin K. Edelson, Esq., Shanti M. Katona, Esq., and Edward Fox, Esq., at Polsinelli PC. FLEXERA SOFTWARE: $45MM Debt Increase No Impact on Moody's CFR -------------------------------------------------------------- Moody's Investor Service said Flexera Software LLC's B2 Corporate Family Rating ("CFR") and stable outlook are not affected by an approximate $45 million increase in debt incurred to acquire "Secunia". All other ratings for Flexera are unchanged too, including the B2-PD Probability of Default rating and existing debt instrument ratings. FOUNTAIN VALLEY: Moody's Hikes 1998 Bonds Rating From Ba1 --------------------------------------------------------- Moody's Investor's Service has upgraded to A2 from Ba1 the Successor Agency to Fountain Valley Agency for Community Development's 1998 Tax Allocation Refunding Bonds (Industrial Area Redevelopment Project). Moody's said, "On June 24, 2015, in connection with the release of our Tax Increment Debt methodology, we placed the ratings for nearly all California tax allocation bonds (TABs) on review for upgrade, including this successor agency's (SA) TABs. This rating action completes our review for this SA." "Three years post-dissolution, the administrative risks related to the payment of debt service have significantly lessened, so we are now placing greater weight on the fundamental project area characteristics and some of the positive features of the dissolution legislation, including the closed lien status of the debt and the availability of the 20% of tax increment (TI) revenues previously restricted for use on affordable housing to pay debt service." SUMMARY RATING RATIONALE Moody's said, "The upgrade to A2 takes into account high debt service coverage, moderate sized incremental assessed value which has displayed a healthy growth trend over the last few years, strong ratio of incremental AV to total AV that minimizes revenue volatility, and the above average socioeconomic profile of area residents. The rating also incorporates the high taxpayer concentration in the mostly industrial and commercial project area and small geographical size of the project area. Additionally, the rating reflects the presence of a cash funded debt service reserve which will be utilized for the last debt service payment at the beginning of 2016. While we recognize the short time to maturity, our analysis still takes into account long-term fundamental credit factors." "The rating factors in the SA's successful adaptation to post dissolution processes and administrative procedures and our generally overall positive assessment of the implementation of the legislation that dissolved redevelopment agencies (RDAs) by most successor agencies over the last three years, leading to timely payment of debt service on California TABs. "In 2012, state legislation dissolved all California RDAs, replacing them with "successor agencies" to serve as fiduciary agents. Dissolution effectively changed the flow of funds and processes around the payment of debt service on TABs. Tax increment revenue is placed in trust with the county auditor-controller, who makes semi-annual distributions of funds sufficient to pay debt service on TABs and other "enforceable obligations" approved by the state." OUTLOOK Outlooks are generally not applicable for local government credits of this size. WHAT COULD MAKE THE RATING GO UP -- An upgrade is unlikely due to the short time to maturity for the bonds WHAT COULD MAKE THE RATING GO DOWN -- While unlikely due to the short time to maturity of the bonds, any additional legislative or administrative changes that create uncertainty as to the timely payment of debt service OBLIGOR PROFILE The Successor Agency to the Fountain Valley Agency for Community Development is a separate legal entity from the City of Fountain Valley. The SA is responsible for winding down the operations of the former RDA, making payments on state-approved "enforceable obligations" and liquidating any unencumbered assets to be distributed to other local taxing entities. LEGAL SECURITY The legal security for bonds is tax increment revenue from the project area net of housing set asides and senior pass-through payments. While not legally pledged, the dissolution laws permit TAB debt service to be paid from tax increment revenues deposited in the SA's Redevelopment Property Tax Trust Fund (RPTTF), less amounts disbursed for pass-through payments and certain administrative charges. This includes the 20% of tax increment revenue previously considered restricted housing set aside. FOURTH QUARTER: Court Okays Jackson Hole as Real Estate Broker -------------------------------------------------------------- Fourth Quarter Properties 86, LLC sought and obtained permission from the Hon. W. Homer Drake of the U.S. Bankruptcy Court for the Northern District of Georgia to employ Jackson Hole Real Estate Associates, LLC as real estate broker for the Debtor in its proposed sale of Little Jennie Ranch located in Sublette County, Wyoming (the "Property"). Jackson Hole's primary role in this case would be to assist the Debtor in selling the Property from Aug. 7, 2015 to Aug. 8, 2016. Jackson Hole will receive a 4.5% commission for selling the Property and requires the Debtor to pay limited marketing costs as they occur for a total of $9,250. Upon successful closing, the marketing costs will be refunded back to the Debtor. Richard Lewis of Jackson Hole 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. Jackson Hole can be reached at: Richard Lewis JACKSON HOLE REAL ESTATE ASSOCIATES, LLC 80 W Broadway Jackson, WY 83001 Tel: (888) 733-6060 About Fourth Quarter Fourth Quarter Properties 86, LLC, sought Chapter 11 protection (Bankr. N.D. Ga. Case No. 15-10135) in Newnan, Georgia, on Jan. 22, 2015. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due May 22, 2015. Little Suwanee Holdings, LLC, owns 95 percent of the membership interests in the Debtor while J. Bruce Williams, Jr., holds the remaining 5 percent. The Debtor is represented by Ward Stone, Jr., Esq., at Stone & Baxter LLP, in Macon, Georgia. The Debtor disclosed $49,124,608 in assets and $75,377,946 in liabilities in its schedules. FOURTH QUARTER: Files Disclosure Statement on Liquidating Plan -------------------------------------------------------------- Fourth Quarter Properties 86, LLC, has filed a Disclosure Statement in support of its Liquidating Plan dated Aug. 28, 2015. The Plan is a liquidating chapter 11 plan. The funds required for implementation of the Plan and repayment of the DIP financing will be generated from operating the cattle ranch and proceeds of the sale of personal property, and funds required the distributions hereunder shall be provided from the proceeds of the sale of the Real Property and Personal Property of the Debtor. The Plan designates six Classes of Claims and one Class of Equity Interests. These Classes take into account the differing nature and priority under the Bankruptcy Code of the various Claims and Interests. A Claim or Interest will be deemed classified in a particular Class only to the extent that the Claim or Interest qualifies within the description of that Class, and will be deemed classified in a different Class to the extent that any remainder of such Claim or Interest qualifies within the description of such different Class. A Claim or Interest is in a particular Class only to the extent that such Claim or Interest is allowed in that Class and has not been paid or otherwise settled prior to the Effective Date. To the extent that the holders of any Allowed Claims or Interests object to Debtor’s classification scheme, such objections will be considered at the Confirmation Hearing, and, if sustained, the classifications outlined below will be deemed modified in accordance with any order sustaining such objections. Any Class of Claims that, as of the date of the commencement of the Confirmation Hearing, contains no Allowed Claims will be deemed deleted from the Plan for purposes of determining acceptance or rejection of the Plan by such Class under Section 1129(a)(8) of the Bankruptcy Code. A copy of the Disclosure statement is available for free at: http://is.gd/oHvcoD About Fourth Quarter Fourth Quarter Properties 86, LLC, sought Chapter 11 protection (Bankr. N.D. Ga. Case No. 15-10135) in Newnan, Georgia, on Jan. 22, 2015. According to the docket, the Debtor's Chapter 11 plan and disclosure statement are due May 22, 2015. Little Suwanee Holdings, LLC, owns 95 percent of the membership interests in the Debtor while J. Bruce Williams, Jr., holds the remaining 5 percent. The Debtor is represented by Ward Stone, Jr., Esq., at Stone & Baxter LLP, in Macon, Georgia. The Debtor disclosed $49,124,608 in assets and $75,377,946 in liabilities in its schedules. FRESNO, CA: Moody's Hikes 2004/2008/2009 Bonds Rating to Ba1 ------------------------------------------------------------ Moody's Investors Service has upgraded the City of Fresno's GOULT-equivalent rating (otherwise known as the "issuer" rating) to A3 from Baa1. "In addition, we have also upgraded the following lease-backed obligations by one notch to Ba1 from Ba2: Series 2004 A & C, Series 2008 A, C, E, F and Series 2009A. We have also upgraded to Ba2 from Ba3 the ratings on the city's 2006A Convention Center bonds, 2002 Pension Obligation Bonds and 2002 Judgment Obligation Bonds. Approximately $306 million in rated debt is affected by these rating actions," Moody's said. "We have revised the outlook on the city's issuer rating to stable from positive. The outlook on the city's other obligations is positive," according to Moody's. SUMMARY RATING RATIONALE The rating upgrades reflect improvement in the city's fundamental economic profile, with recent growth in taxable property values, sales tax collections and employment. The city's strengthened credit also reflects consecutive operating surpluses in fiscal 2014 and 2015; the elimination of deficit available General Fund balances; repayment of inter-fund borrowing; and sound management practices that have guided the city through the adoption of updated zoning laws and economic development objectives, a revised reserve policy and a favorable settlement with the police union. The A3 issuer rating represents what the city's general obligation bond rating would be if the city had outstanding GO debt. Under California law, a city's GO pledge is an unlimited ad valorem pledge of the city's tax base. The city must raise property taxes by whatever amount necessary to repay the obligation, irrespective of its underlying financial position. The Ba1 rating on most of the city's lease secured obligations reflects the significantly weaker security of these obligations compared to general obligation pledges in California. The four notch distinction between Fresno's issuer rating and the ratings on these lease-secured obligations reflect the city's relatively weak financial position, the above average burden of these obligations on the city's finances and continued weakness of the city's economy. The Ba2 rating on the 2006A convention center bonds reflects the lesser essentiality of the leased assets relative to the leased assets for those obligations rated Ba1. The Ba2 rating on the pension and judgment obligations incorporates the weak credit factors mentioned above and the additional weakness resulting from the absence of assets securing these obligations. OUTLOOK The positive outlooks assigned to the city's lease revenue, pension and judgment bonds reflect Moody's expectation that key fundamental credit factors undergird the city's ratings at potentially higher levels should current trends continue. Audited fiscal 2015 results that are in line with projections and continued economic growth will both represent critical factors in future reviews. WHAT COULD MAKE THE RATING GO UP -- Operating surpluses in line with expectations for fiscal 2015 and budgeted 2016 figures -- Continued progress in meeting the city's reserve targets -- Final settlement with the fire union that will enhance predictability of future expenditure requirements -- Continued economic growth with improvement in employment figures WHAT COULD MAKE THE RATING GO DOWN -- Operating deficits with erosion in reserves and liquidity -- Economic weakening with declines in taxable values or key revenue streams -- Declines in employment or agricultural production driven by the drought OBLIGOR PROFILE Fresno is California's fifth largest city by population (515,609) and the economic center of the San Joaquin Valley, one of the most productive agricultural centers in the U.S. LEGAL SECURITY Fresno's lease revenue bonds are secured by lease payments subject to annual appropriation and abatement. The pension and judgment bonds are an unconditional obligation of the city, and payment of debt service is not limited to any special source of city funds. The pension bonds are additionally secured by a tax levy limited to $0.32438 per $100 of assessed valuation. The tax levy currently covers close to 60% of annual debt service payments, although this figure is expected to increase over time with tax base growth and given the level debt service structure of the pension bonds. GLOBAL MARITIME: Case Summary & 50 Largest Unsecured Creditors -------------------------------------------------------------- Debtor affiliates filing separate Chapter 11 bankruptcy petitions: Debtor Case No. ------ -------- GMI USA Management, Inc. 15-12552 21 Whitefriars Street London, UK EC4Y 8JJ United Kingdom Global Maritime Investments Cyprus Limited 15-12553 Global Maritime Investments Holdings Cyprus Limited 15-12554 GMI Resources (Singapore) PTE Limited 15-12555 Global Maritime Investments Vessel Holdings PTE Ltd 15-12556 Type of Business: Dry Bulk Shipping Chapter 11 Petition Date: September 15, 2015 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Debtors' Counsel: John P. Melko, Esq. Michael K. Riordan, Esq. GARDERE WYNNE SEWELL, LLP 1000 Louisiana, Suite 3400 Houston, TX 77002-5007 Tel: (713) 276-5727 Fax: (713) 276-6727 Email: jmelko@gardere.com mriordan@gardere.com Debtors' AMA CAPITAL PARTNERS Financial Advisor: Estimated Assets: $1 million to $10 million Estimated Debts: $100 million to $500 million The petition was signed by Justin Knowles, chief restructuring officer. Consolidated List of Debtors' 50 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Draco Shipping PTE Ltd. Contractual $2,600,000 80 Robinson Rd #02-00 Singapore 068898 Singapore Pegasus Shipping PTE Ltd. Contractual $2,600,000 2 Beach Rd. Singapore 199589 Singapore ADM Investor Services Limited Trade Debt $1,890,349 4th Flr Millennium Bridge House 2 Lambeth Hill London EC4V 3TT United Kingdom OW Supply & Trading Trade Debt $1,620,745 Stigsborgvej 60, PO Box 215 Norresundby, DK99400 Denmark Dynamic Oil Trading (S) Trade Debt $663,120 Pte Ltd. 600 North Bridge Rd #11-09-10 Parkview Sq Singapore 188778 Singapore EDF Trading Trade Debt $464,887 80 Victoria St. Cardinal Place, 3rd Flr London, SW1E 5JL United Kingdom Southport Agencie Inc. Trade Debt $357,798 2700 LakeVilla Dr. Ste. 180 Metairie, Louisiana 70002 Calisto Trading Inc. Trade Debt $341,891 Trust Co. Complex, Ajeltake Rd Ajeltake Island Majuro, MH96960 Marshall Islands Chimbusco Europe BV Trade Debt $330,201 Weena 280 Weena 200 Bldg 8th Flr. Rotterdam, 3012 Netherlands Jia Foison Shipping Co., Ltd. Trade Debt $264,175 7 Flr, EIB Cenre 40 Bonham Strand Hong Kong Gard P&I (Bermuda) Ltd. Trade Debt $258,447 PO Box 789 Stoa Arendal, No-4809 Norway Mardinik Shipping Co. Ltd. Trade Debt $217,528 Kumiai Navigation (Pte) Ltd. Trade Debt $213,728 Ifchor SA Trade Debt $193,586 D/S Norden AS Trade Debt $190,956 Arrow Chartering UK Ltd. Trade Debt $159,809 Southport Agencie Inc. Trade Debt $139,429 Gains Inc. Trade Debt $137,487 Jia Da Shipping Co., Ltd. Trade Debt $134,827 Cosco Bulk Carriers Co., Ltd. Trade Debt $129,106 Aegean Breeze Shipping Ltd. Trade Debt $94,697 Thurlestone Shipping (Singapore) Trade Debt $93,598 Pte Ltd. F.H. Bertling Chartering & Ship Trade Debt $87,547 Management Agencia Maritime Nabsa S.A. Trade Debt $86,524 M/S Mercator Lines (Singapore) Trade Debt $74,020 PTE Ltd. MUR Shipping BV Trade Debt $70,671 Pacific Bulk Cape Company Ltd. Trade Debt $66,587 Kawasaki Kisen Kaisha, Ltd. Trade Debt $62,373 Moore Stephens LLP Trade Debt $54,429 Bunge S.A. Trade Debt $52,145 Norvic Shipping North America Inc. Trade Debt $47,600 Waterfront Shipping & Trading Ltd. Trade Debt $47,411 Pacnav SA Panama Trade Debt $41,362 Hong Kong Grace Shipping Co. Ltd. Trade Debt $40,951 E.A. Gibson Shipbrokers Ltd. Trade Debt $40,724 Monson Agencies Pte Ltd. Trade Debt $40,521 Bancosta (UK) Ltd. Trade Debt $37,282 Sulnorte Servicos Maritimos Ltda. Trade Debt $31,527 Simpson Sence Young Trade Debt $24,180 China Shipping (HK) Maritime Inc. Trade Debt $21,585 Bay-Houston Towing Co. Trade Debt $20,607 ICAP Shipping Ltd. Dry Trade Debt $20,498 Freight Investor Services Ltd. Trade Debt $13,952 D. Oltman (Hamburg) Trade Debt $13,079 ADM Intermara Trade Debt $11,753 Bernhard von Blomberg Trade Debt $11,357 Maersk Broker (UK) Ltd. Trade Debt $10,864 LBH Australia Pty Ltd. Trade Debt $10,058 Moore Stephens (Limassol) Ltd. Trade Debt $9,165 Raffles Shipping Group Trade Debt $8,477 GLOBAL MARITIME: Files for Chapter 11 to Wind Down Operations ------------------------------------------------------------- Global Maritime Investments Cyprus Limited and four of its affiliates have sought Chapter 11 bankruptcy protection due to "an extraordinary downturn" in dry bulk shipping industry over the past three years. The Debtors filed the Chapter 11 cases in New York to wind down their businesses and operations and liquidate their assets in an orderly fashion. Global Maritime, et al., are engaged in three segments of the dry bulk shipping markets, utilizing Freight Forward Agreements, physical "trading" or supplying of ships for hire, and management of a dry bulk shipping pool on behalf of ships owned directly or indirectly by the Debtors, as well as for third party owners. In 2011 and 2012, the Debtors employed a fleet of over 60 vessels offered for hire. As of the Petition Date, the Debtors only have 15 ships in their fleet. "The dry bulk shipping market ... has been especially hard hit by economic downturn," says Justin Knowles, chief restructuring officer of the Debtors. "Although charter rates were at record levels in 2007 and 2008, charter rates in recent years in many sectors of the shipping industry have plummeted to decade-low levels as a result of an excess supply of ships," he adds. In each of 2012, 2013, and 2014, the Debtors incurred net losses of $93 million, $7 million, and $47.8 million, respectively. Despite efforts to restructure their debt, in fiscal year 2015, the Debtors posted a net loss of $67.6 million. Under the pressure of extremely low charter rates for their vessels, the Debtors have faced liquidity in servicing their debt and funding their operating expenses. Last month, Francolin, a lender under a credit agreement dated Nov. 1, 2014, notified Global Maritime of its decision not to provide further funding under the Credit Facility based on, among other things, the existence of events of defaults. As of the Petition Date, $32,616,184 principal amount is outstanding under the Credit Facility plus accrued and unpaid interest. The Debtors have no secured debt, other than the possibility of maritime liens, and a relatively small amount of trade debt. A substantial majority of the Debtors' liabilities -- in excess of $169 million -- consisted of funded debt. As of the Petition Date, the Debtors have $59,000 in cash, $2.6 million in accounts receivable and an undetermined amount of investment in GMI Panamax Pool Limited. The Debtors have been involved in litigation in the United States District Courts for the Southern District of New York and Southern District of Texas both as either plaintiff or defendant. To minimize disruption to their international operations and preserve the value of their businesses, the Debtors have filed with the Court certain "first day" motions seeking, among other things: (a) joint administration of their cases, (b) permission to obtain post-petition financing, (c) permission to pay foreign and critical vendors, and (d) permission to continue using existing cash management system. A copy of the declaration in support of the First Day motions is available for free at http://bankrupt.com/misc/2_GMI_Affidavit.pdf About Global Maritime GMI USA Management, Inc., Global Maritime Investments Cyprus Limited, Global Maritime Investments Holdings Cyprus Limited, GMI Resources (Singapore) PTE Limited and Global Maritime Investments Vessel Holdings PTE Ltd filed Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Case Nos. 15-12552 to 15-12556) on Sept. 15, 2015. Debtor GMI USA Management is a recently formed New York corporation. All of the other Debtors are foreign corporations based in either Singapore or Cyrus. Global Maritime Investments Holdings Cyprus Limited is a holding company that owns 100% of the outstanding shares of each of (i) Debtor GMI USA Management, Inc., (ii) Debtor Cyprus Tradeco, (iii) Debtor Vessel Holdings, and (iv) non-Debtor GMI Panamax Pool Limited. Gardere Wynne Sewell, LLP, represents the Debtors as counsel. AMA Capital Parnters serves as the Debtors' financial advisor. GOLFSMITH INTERNATIONAL: S&P Cuts CCR to CCC on Liquidity Concerns ------------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its long-term corporate credit rating on Golfsmith International Holdings L.P. to 'CCC' from' B-'. The outlook is negative. At the same time, Standard & Poor's lowered its issue-level rating on the company's C$125 million senior secured second-lien notes to 'CC' from 'CCC+' and revised its recovery rating on the debt to '6' from '5'. A '6' recovery rating reflects S&P's expectation of negligible (0%-10%) recovery in a default scenario. S&P also revised its liquidity score to "weak" from "less than adequate," reflecting potential covenant restrictions and weak cash flow through the seasonally important second quarter of 2015. "We base the downgrade on poor operating performance, weak liquidity, and high likelihood of a covenant breach," said Standard & Poor's credit analyst Donald Marleau. "Golfsmith's sales and earnings remain weak along with intense competitive conditions and a secular decline in demand for golf equipment in North America," Mr. Marleau added. S&P's 'CCC' rating incorporates its view that it is likely that Golfsmith will default without an unforeseen positive development, such as liquidity support and covenant relief, along with improved earnings prospects after several years of weak sales and deteriorating margins. Golfsmith is indirectly majority-owned by OMERS Administration Corp., the pension system for Ontario's municipal employees, with the remainder held by current and former members of management. The negative outlook incorporates Standard & Poor's view that Golfsmith's credit profile depends on favorable events to avoid a payment default. The company will likely require external support to fund working capital investments and an interest payment over the next four months. S&P could lower the rating if the company is unable to make an interest payment or breaches a financial covenant. S&P could revise the outlook to stable if Golfsmith receives external support that alleviates its near-term liquidity concerns. GRASS VALLEY: Court Approves Durham Jones as Special Counsel ------------------------------------------------------------ The Hon. R. Kimball Mosier of the U.S. Bankruptcy Court for the District of Utah authorized Grass Valley Holdings LP to employ Durham Jones & Pinegar as its special counsel. The Debtor related it was one of several defendants in a lawsuit commenced in February 2013 by Garth O. Green Enterprises in Fourth District Court for Utah County, Utah, case No. 130400184 ("Green Enterprises Lawsuit"). The original defendants in the Green Enterprises Lawsuit were Debtor Grass Valley Holdings, LP, Randall Harward, Richard Harward, and Harward Irrigation Systems, Inc., the Debtor noted. The firm will represent the Debtor with respect to the Green Enterprises Lawsuit and related proceedings concerning the estimation or allowance of claims asserted against the Debtor in the Green Enterprises Lawsuit and related matters, and in connection with a Adv. No. (15-02141), and (15-02141), a lawsuit commenced by the Debtor in the Fourth District Court, Utah County, State of Utah as Case No. 159402466, entitled Grass Valley Holdings, LP v. Bitner, and the claims asserted therein. The Debtor noted, as of the petition date, it owed the firm $25,000 for legal services related to the Green Enterprises Lawsuit. Evan A. Schmutz, Esq., shareholder of the firm, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: Evan A. Schmutz, Esq. Durham Jones & Pinegar Tel: 801.375.6600 Direct: 801.655.4763 Email: eschmutz@djplaw.com About Grass Valley Based in Springville, Utah, Grass Valley Holdings, L.P., is a holding company for real property located in Utah as well as an interest in real property located in Idaho Falls, Idaho. Grass Valley Holdings commenced a Chapter 11 bankruptcy case (Bankr. D. Utah Case No. 15-24513) in Salt Lake City, Utah, on May 15, 2015. The Debtor disclosed $21,478,874 in assets and $13,187,245 in liabilities as of the Chapter 11 filing. The case is assigned to Judge R. Kimball Mosier. The Debtor is represented by Gary E. Jubber, Esq., and Douglas J. Payne, Esq., at Fabian and Clendinin, in Salt Lake City. GRASS VALLEY: Names Squire & Company as Accountant -------------------------------------------------- The Hon. R. Kimball Mosier of the U.S. Bankruptcy Court for the District of Utah authorized Grass Valley Holdings LP to employ Shane D. Wood and Squire & Company PC as its accountant for the estate. The Debtor told the Court that it needs accounting services in order to be able to complete its tax filings in a timely manner and at a reasonable cost to the estate. The firm's normal for entry level professional is $105 per hour and partners is $225 per hour. The Debtor said the firm had an unsecured claim against it in the amount of $16,298, and the firm has agreed to waive its claims against the bankruptcy estate. Shane D. Wood, a certified public accountant of the firm, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Shane D. Wood Squire & Company PC 1329 South 800 East Orem, UT 84097 Tel: 801-494-6037 Email: shanew@squire.com About Grass Valley Based in Springville, Utah, Grass Valley Holdings, L.P., is a holding company for real property located in Utah as well as an interest in real property located in Idaho Falls, Idaho. Grass Valley Holdings commenced a Chapter 11 bankruptcy case (Bankr. D. Utah Case No. 15-24513) in Salt Lake City, Utah, on May 15, 2015. The Debtor disclosed $21,478,874 in assets and $13,187,245 in liabilities as of the Chapter 11 filing. The case is assigned to Judge R. Kimball Mosier. The Debtor is represented by Gary E. Jubber, Esq., and Douglas J. Payne, Esq., at Fabian and Clendinin, in Salt Lake City. GRASS VALLEY: Selects Valbridge Property as Appraiser ----------------------------------------------------- The Hon. R. Kimball Mosier of the U.S. Bankruptcy Court for the District of Utah authorized Grass Valley Holdings LP to employ Stan Craft and Valbridge Property Advisor | Free and Associates Inc. as its appraiser for the estate. The firm is expected to testify in the Court with respect to the value of the Debtor's properties as necessary. Additionally, the firm will perform appraisal services with respect to the commercial real property owned by the Debtor in Springville, Utah. The Debtor informed the Court that Valbridge Property Advisors | Free and Associates Inc. prepared an appraisal of the Spanish Fork Property for Central Bank in approximately 2010. The Debtor will pay Stan Craft and Valbridge Property Advisors | Free and Associates Inc. $4,400 upon completion of the appraisal of the Spanish Fork Property and the Lehi Property. Stan Craft, certified appraise of the firm, assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: Stan Craft Valbridge Property Advisors | Free and Associates Inc. 1100 East 6600 South, Suite 201 Salt Lake City, Utah 84121 Tel: 801.492.0000 800.409.9328 (toll-free) Fax: 801.492.1420 Email: scraft@valbridge.com About Grass Valley Based in Springville, Utah, Grass Valley Holdings, L.P., is a holding company for real property located in Utah as well as an interest in real property located in Idaho Falls, Idaho. Grass Valley Holdings commenced a Chapter 11 bankruptcy case (Bankr. D. Utah Case No. 15-24513) in Salt Lake City, Utah, on May 15, 2015. The Debtor disclosed $21,478,874 in assets and $13,187,245 in liabilities as of the Chapter 11 filing. The case is assigned to Judge R. Kimball Mosier. The Debtor is represented by Gary E. Jubber, Esq., and Douglas J. Payne, Esq., at Fabian and Clendinin, in Salt Lake City. HAGGEN HOLDINGS: Court Orders Joint Administration of Cases ----------------------------------------------------------- Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware has entered an order directing the consolidation and joint administration, for procedural purposes only, of the cases of Haggen Holdings, LLC, Haggen Operations Holdings, LLC, Haggen Opco South, LLC, Haggen Opco North, LLC, Haggen Acquisition, LLC and Haggen, Inc., under Lead Case No. 15-11874. The Clerk of the Court is directed to maintain one file and one docket for all of the Debtors' cases. About Haggen Haggen Holdings, LLC, and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del., Case Nos. 15-11874 to 15-11879) on Sept. 8, 2015. The petitions were signed by Blake Barnett as chief financial officer. Young, Conaway, Stargatt & Taylor, LLP, is serving as the Debtors' local counsel. Stroock & Stroock & Lavan LLP acts as the Debtors' general counsel. Alvarez & Marsal North America, LLC, represents as the Debtors' financial advisor. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. The Debtors have estimated assets of $50 million to $100 million and estimated liabilities of $10 million to $50 million. HOVENSA L.L.C: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Hovensa L.L.C. 1 Estate Hope Christiansted, VI 00820 Case No.: 15-10003 Type of Business: Energy Chapter 11 Petition Date: September 15, 2015 Court: United States Bankruptcy Court District of the Virgin Islands (St. Croix) Judge: Hon. Mary F. Walrath Debtor's Counsel: Richard H. Dollison, Esq. LAW OFFICES OF RICHARD H. DOLLISON, P.C. 48 Dronningens Gade, Suite 2C 5302 Store Tvaer Gade, PMB 111 St. Thomas, VI 00802 Tel: 340-774-7044 Fax: 340-774-7045 Email: rhd@rdollisonlaw.com Debtor's PRIME CLERK LLC Claims and Noticing Agent: Estimated Assets: $100 million to $500 million Estimated Liabilities: More than $1 billion The petition was signed by Sloan Schoyer, authorized signatory. List of Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ VWNA Caribbean, LLC Trade Debt $1,225,000 1131 King Street Christiansted, VI 00820-4971 United States Geogas Trading SA Trade Debt $840,000 28 Boulevard Pont D'Arve Geneva, 1205 Switzerland Pinnacle Services LLC Trade Debt $501,600 6002 Diamond Ruby - Ste 3-125 Christiansted, VI 00820 United States Groundwater & Environmental Trade Debt $336,847 440 Creamery Way, Suite 500 Exton, PA 19341-2577 United States AON Risk Services Companies, Inc. Trade Debt $191,198 AON Risk Services, Inc. of New York Trade Debt $135,873 Seven Seas Water Corp. Trade Debt $131,547 Christiansted Equipment, Ltd. Trade Debt $120,000 I-Tech Trade Debt $96,000 Marine Services Tug & Tankers, Ltd. Trade Debt $93,391 Morgan Lewis & Bockius LLP Legal Services $61,703 National Response Corporation Trade Debt Undetermined Pension Benefit Guaranty Corp Pension Plan Undetermined United States Environmental Environmental undetermined Protection Agency, Region 2 Obligations United Steel Workers AFL/CIO-CLC Union Undetermined Obligations United Industrial Workers of the Union Undetermined Seafarers International Union Obligations of North America AFL/CIO Government of the Virgin Islands Litigation Undetermined Commonwealth of Puerto Rico Litigation Undetermined Francisca Almestica and Avilio Litigation Undetermined Navarro Jr., et al. Cruz, Elvira, Et al., v. Litigation Undetermined Hovensa, LLC HOVENSA LLC: Files for Ch.11; to Sell Assets to Limetree for $184MM ------------------------------------------------------------------- Hovensa L.L.C. has filed for Chapter 11 bankruptcy protection blaming, among other things, fluctuating crude oil prices due to the 2008 economic downturn. Hovensa's oil refinery operations suffered approximately $1.3 billion in financial losses between 2009 and 2011. In addition to significant challenges from competition from other fuel suppliers, the Debtor said it also faces additional potential liabilities, including those relating to environmental compliance and remediation obligations and pending and potential lawsuits. Hovensa idled some of its refinery operations in 2011 and its remaining refinery operations in February 2012, terminating close to 300 employees (including independent contractors). Hovensa continued to operate its facility solely as an oil storage terminal. The Debtor believes that the marketing and sale process for its assets is the only and best path forward. To this end, the Debtor entered into a definitive stalking horse asset purchase agreement with Limetree Bay Holdings, LLC, pursuant to which Limetree will acquire the Debtor's assets for $184 million, subjec to higher and better bids. "If consummated, the sale transaction with the Stalking Horse Bidder . . . will generate proceeds sufficient to pay in full in cash the $40 million secured claim asserted by the Government of the Virgin Islands in connection with certain prepetition litigation regarding alleged environmental liability," says Thomas E. Hill, proposed chief restructuring officer of the Debtor. As of the Petition Date, the Debtor has approximately $750,000 in cash on hand. Hovensa has no outstanding secured or unsecured funded debt, other than with respect to the promissory note obligations, and does not have a credit facility with any lender. Hovensa is a joint venture between Hess Oil Virgin Islands Corporation, a subsidiary of Hess Corporation, and PDVSA V.I., Inc. HOVIC and PDV-VI have agreed to provide the Debtor with $40 million of additional liquidity through a debtor-in-possession financing facility. DPNR Settlement Hovensa became subject to a lawsuit initiated by the Virgin Islands Department of Planning and Natural Resources on May 5, 2005, which alleged that HOVIC's and Hovensa's operations at the refinery contaminated and injured the public's natural resources, the marine environment, plant life, and wildlife. The DPNR sought damages, the reimbursement of costs associated with the government's investigation and litigation, and the performance of environmental cleanup and remediation. Following extensive litigation, in which a number of the DPNR's claims were dismissed, Hovensa decided that despite its view that the remaining claims were without merit, it needed to settle the DPNR Litigation in order to allow it to pursue a marketing and sale process free from the overhang of litigation. Accordingly, on May 28, 2014, in anticipation of a sale, HOVIC and Hovensa entered into a settlement agreement with the DPNR, pursuant to which Hovensa agreed to pay the GVI $43.5 million in settlement of the purported $800 million in claims raised by the DPNR complaint. Hovensa paid $3.5 million of the settlement amount immediately upon the execution of the DPNR Settlement Agreement. The remaining $40 million obligation remains outstanding as of the bankruptcy filing date. Pursuant to the DPNR Settlement Agreement, in consideration for Hovensa's agreement to pay $43.5 million to the GVI and to grant a first priority lien on certain of its assets, the GVI released HOVIC, Hovensa, and related parties from all claims asserted in the DPNR Litigation and associated litigation costs. Hovensa expected that it would be able to pay the remaining $40 million payment in respect of the DPNR Settlement Agreement by Dec. 31, 2014, in connection with a sale transaction with Atlantic Basin Refining. However, when the ABR Sale Transaction was rejected by the USVI Senate, Hovensa was unable to make the additional payment by that date. On Jan. 26, 2015, the GVI commenced a Superior Court foreclosure action to collect the $40 million payment under the DPNR Settlement Agreement, despite the USVI Senate's decision to reject the ABR Operating Agreement that would have funded the payment. On March 17, 2015, Hovensas filed an answer to the GVI's complaint. As of the Petition Date, the Foreclosure Action remains in its preliminary stages. The Honorable Douglas A. Brady, presiding over the Foreclosure Action, has issued, sua sponte, an order requiring Hovensa and the GVI to meet and confer on a discovery schedule to be put into place by Sept. 30, 2015. Sale Agreement Beginning in November 2013, Hovensa and its professional advisors engaged in an extensive marketing and sale process to find a purchaser for all of its assets. Nearly a year after the failed ABR Sale Transaction, the Debtor ultimately entered into the APA with Limetree, an affiliate of ArcLight Capital Partners, LLC. Under the APA, the Debtor has agreed to sell, subject to higher and better offers and approval of the Court, certain assets, including all of its oil storage terminal assets, for a purchase price of $184 million. Simultaneously with the commencement of the chapter 11 case, the Debtor has filed a motion seeking approval of bidding procedures pursuant to which a competitive sale process will take place. By this process, the Debtor will solicit bids for the sale of the its assets. Amanda Rayborn at Platts, citing people familiar with the matter, says Limetree Bay wants to scrap plans to operate the complex as a refinery and instead reboot it as a storage facility with 15 million barrels of operable capacity. "Other parties will have the opportunity to submit competing offers for Hovensa's assets . . . and a federal judge will ensure that the 'highest and best' offer is approved," Platts quoted the Company as saying. Citing the Company, Lauren Baccus and Stephanie Hanlon-Nugent at St. Croix Source report that proceeds from any sale will be used to repay creditors, and the the U.S. Virgin Islands -- owed at $40 million -- will be the first creditor paid. Gov. Kenneth Mapp insists that the government is owed a total of $92 million and hopes that through the lawsuit, the government would get $1.5 billion in damages for the territory in addition to the sale of the terminal, St. Croix Source says. The sale, according to St. Croix Source, hinges on the approval of an operating accord with the V.I. government, and then approval of that agreement by the V.I. Senate and the Bankruptcy Court. As reported by the Troubled Company Reporter on Sept. 16, 2015, citing an Associated Press article, the V.I. Government sued the Company for more than $1 billion, alleging that the Company abandoned a massive oil refinery it had pledged to run through the year 2022. The complaint alleged that Hess conspired to strip the facility's assets in order to leave the government with claims against a broke, polluted and inoperable refinery, the report further noted. First Day Motions To enable the Debtor to achieve its objectives in this chapter 11 case, the Debtor is seeking approval to: (a) obtain post-petition financing; (b) use existing cash management system; (c) pay critical vendor claims; (d) honor employee obligations; (e) prohibit utility providers from discontinuing services; and (f) extend time to file Schedules and Statements. A copy of the declaration filed in support of the First Day Motions is available for free at: http://bankrupt.com/misc/3_HOVENSA_Declaration.pdf About Hovensa Hovensa, L.L.C. produces and markets refined petroleum products. The Company offers gasoline, diesel, home heating oil, jet fuel, kerosene, and residual fuel oil. Hovensa serves customers throughout North America. Hovensa L.L.C. filed a Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the District of the Virgin Islands (Bankr. D. V.I. Case No. 15-10003) on Sept. 15, 2015. The petition was signed by Sloan Schoyer as authorized signatory. The Debtor has estimated assets of $100 million to $500 million, and liabilities of more than $1 billion. The Law Offices of Richard H. Dollison, P.C., serves as the Debtor's counsel. Prime Clerk LLC is the Debtor's claims and noticing agent. Judge Mary F. Walrath is assigned to the case. IMPAC LAB: Moody's Assigns Ba1 Rating to New $100MM Revolver Loan ----------------------------------------------------------------- Moody's Investors Service affirmed the B1 Corporate Family Rating of Impax Laboratories, Inc. Moody's also assigned a Ba1 rating to the company's new $100 million senior secured revolving credit facility expiring 2020. The facility replaces a $50 million revolver expiring 2019, which has been terminated. The actions follow the refinancing of Impax's $435 million senior secured term loan on June 30, 2015 with $600 million of unsecured convertible notes. As a result of the changes to the capital structure, Moody's also upgraded the Probability of Default Rating to B1-PD from B2-PD. Moody's also raised the Speculative Grade Liquidity Rating to SGL-1 from SGL-2, signifying very good liquidity. The improvement in liquidity stems from Impax's strong cash position ($190 million at June 30) and Moody's greater confidence in free cash flow generation following the lifting of the FDA Warning Letter on the Hayward, California manufacturing facility and the approval of Rytary (a branded drug to treat Parkinson's Disease) earlier in 2015. The improvement also reflects the larger sized revolving credit facility (which we expect to remain undrawn except for acquisitions), the loosening of Impax's financial covenants in connection with the refinancing and the greater flexibility to sell assets stemming from a largely all unsecured capital structure. The outlook is stable. Ratings actions: Affirmed Corporate Family Rating, at B1 Upgraded Probability of Default Rating, to B1-PD from B2-PD Assigned Ba1 (LGD1) to $100 million revolving credit facility, expiring 2020 Speculative Grade Liquidity Rating, raised to SGL-1 from SGL-2 RATINGS RATIONALE The B1 Corporate Family Rating reflects Impax's modest size and scale in the rapidly consolidating generic drug industry, which faces pricing pressure and increasing legal and regulatory costs. The rating also incorporates our expectation that Impax will continue to be acquisitive which -- though potentially adding scale and diversity -- could further increase leverage and integration risk. The ratings are supported by Impax's modest adjusted debt to EBITDA, which Moody's projects will be between 2.5x to 3.0x for the year ending December 2015. The ratings are supported by the relatively good product diversity of Impax following the acquisition of CorePharma (which closed on March 9, 2015) as well as the potential for strong revenue and earnings growth from key products in its pipeline. While not anticipated in the near-term because of the expectation for more M&A activity, Moody's could upgrade the ratings if Impax successfully launches key products in its generic pipeline, and can successfully market and grow Rytary. Further, if Moody's expects the company to maintain adjusted debt to EBITDA below 3.0x while generating free cash flow to debt above 15%, the ratings could be upgraded. Moody's could downgrade the ratings if the company experiences significant disruption to any of its key products, competitive pressures or pursues large debt-funded acquisitions such that adjusted debt to EBITDA is expected to increase above 4.0x. Impax, headquartered in Hayward, CA, is a specialty generic and branded pharmaceutical producer operating in the US. Pro forma for the acquisition of CorePharma, Impax will generate revenue in excess of $800 million. IMPAX LABORATORIES: S&P Affirms 'BB' CCR & Revises Outlook to Neg. ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on IMPAX Laboratories Inc. and revised the rating outlook to negative from stable. At the same time, S&P assigned a 'BB' issue-level rating and '3' recovery rating to IMPAX's $600 million convertible notes. The '3' recovery rating indicates expectations of meaningful (50% to 70%; at the higher end of the range) recovery in the event of a default. "The outlook revision to negative from stable reflects our expectation that leverage will be higher than our projected 2.5x to 3.0x over the next year, and could remain elevated over the longer term if the company fails to achieve our base-case expectations for sales and EBITDA growth or if it pursues significant debt-financed acquisitions that add limited EBITDA over the next few months," said Standard & Poor's credit analyst Arthur Wong. The ratings on IMPAX reflect the company's narrow branded pharmaceutical portfolio as well as its limited scale and market share in the generic pharmaceutical industry. The company's branded specialty business focuses on treatments for the central nervous system. IMPAX has successfully launched Rytary, its extended-release capsule treatment for Parkinson's disease. The drug received U.S. Food and Drug Administration (FDA) approval in early 2015 and is IMPAX's first internally developed branded drug to be approved. The negative outlook reflects the possibility that leverage will remain at more than 3x due to EBITDA pressure from lackluster product performance or acquisitions as the company seeks to grow its portfolio and EBITDA. A downgrade could occur if the company underperforms S&P's base-case expectation that Rytary will generate $60 million sales in 2016 and overall revenue will grow by at least 15% in 2016. This would result in leverage being sustained at more than 3x. Debt-financed acquisitions could also result in that level of elevated leverage. S&P could revise the outlook back to stable if the company generates sales growth and EBITDA that enables it to reduce leverage to 3x or less. In particular, this could occur if the company makes an acquisition with cash that is meaningfully accretive to EBITDA in the near term or if the company's revenue grows at a high-teen percentage rate or more in 2016 because of stronger-than-expected performance of Rytary and an expansion in margins by at least 100 basis points. Given S&P's expectations that the company will likely remain acquisitive over the next year, a ratings upgrade is unlikely. LEAP TRANSIT: Auctions Off Buses After Filing for Chapter 7 ----------------------------------------------------------- Joe Fitzgerald Rodriguez at San Francisco Examiner reports that Leap Transit is auctioning off its remaining two buses. The Company filed for Chapter 7 liquidation on July 15, 2015, estimating its assets and liabilities at between $100,000 and $500,000 each, court documents say. Founder Kyle Kirchoff signed the petition. West Auctions: Commercial Auctions and Asset Services says that bidding for the buses will be from Oct. 6 until Oct. 8, 2015. According to Examiner, the bids start at $5. Biz Carson at Business Insider recalls that after suspending its service in May 2015, it put two of its buses up for auction in June and auctioned off more buses in July. Leap Transit is a private transit service in San Francisco. It ran tech-friendly luxury buses. LIFE PARTNERS: Trustee Files Multi-Million Dollar Suit Against CEO ------------------------------------------------------------------ Thompson & Knight LLP on Sept. 15 disclosed that H. Thomas Moran II, chapter 11 Trustee for Life Partners, filed a fraud and racketeering lawsuit against Brian Pardo, the company's CEO and chairman from 2000 until early 2015, seeking more than $40 million in damages related to monies Mr. Pardo transferred to himself and his family. The lawsuit was filed Sept. 11 in the U.S. Bankruptcy Court for the Northern District of Texas - Fort Worth Division. The suit says Mr. Pardo operated his company in such a way as to build maximum trust from investors while systematically lying to and misleading them to generate as much profit as possible for Life Partners, himself, and his family. "My investigation into the business practices of Life Partners clearly shows investors were misled at every turn -- in marketing, in life expectancy information, and in communications from Life Partners and its Licensees after their money was invested," said Mr. Moran. "The suit seeks to recover the substantial losses incurred by investors as a result of the wide-ranging, fraudulent scheme led and perpetrated by Mr. Pardo." The suit outlines that from about 2007 until 2015, Mr. Pardo and others marketed fractional interests in life insurance policies purchased by Life Partners to retail investors by utilizing a significantly underestimated life expectancy ("LE") of the insured, which was prepared at the direction of Mr. Pardo. In the marketing of these fractional interests, Mr. Pardo and others concealed the facts that (i) industry standard LE estimates predicted the insured would likely live longer than the shortened LE estimates given to investors; and (ii) Mr. Pardo and his sales team were receiving large and excessive commissions, at times exceeding the actual purchase price of the policies. In addition, Mr. Pardo used the Life Partners business to line his and his family's pockets. Millions of dollars of dividends and profits from the business were paid, at Mr. Pardo's direction, to himself, his family, and other insiders and affiliates during the course of this fraudulent scheme. The money was derived almost entirely from undisclosed fees paid to Life Partners when contract positions in the proceeds of life insurance policies were sold. The case is, Moran v. Pardo, case number 4:15-ap-4079. The trustee is represented by David M. Bennett, Katharine B. Clark, Richard B. Roper, and Jennifer R. Ecklund of Thompson & Knight LLP. About Life Partners Headquartered in Waco, Texas, Life Partners Holdings, Inc. -- http://www.lphi.com/-- is the parent company engaged in the secondary market for life insurance, commonly called "life settlements." Since its incorporation in 1991, Life Partners, Inc., has completed over 162,000 transactions for its worldwide client base of over 30,000 high net worth individuals and institutions in connection with the purchase of over 6,500 policies totaling over $3.2 billion in face value. LPHI is a publicly traded company incorporated in Texas and its common stock has been delisted from the NASDAQ (formerly trading under the symbol LPHI). Life Partners Holdings sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 15-40289) on Jan. 20, 2015. The case is assigned to Judge Russell F. Nelms. J. Robert Forshey, Esq., at Forshey & Prostok, LLP, serves as counsel to the Debtor. LPHI disclosed $2,406,137 in assets and $52,722,308 in liabilities as of the Chapter 11 filing. The official committee of unsecured creditors formed in the case tapped Munsch Hardt Kopf & Harr, P.C., as counsel. Tracy A. Bolt of BDO USA, LLP, was named as examiner for the Debtor's case. At the behest of the U.S. Securities and Exchange Commission, the U.S. Trustee, and the Creditors Committee, the Court ordered the appointment of a Chapter 11 trustee. On March 13, 2015, H. Thomas Moran II was appointed as Chapter 11 trustee in LPHI's case. The trustee is represented by Thompson & Knight LLP. The Chapter 11 trustee signed Chapter 11 bankruptcy petitions for LPHI's subsidiaries on May 19, 2015: Life Partners Inc. (Case No. 15-41995) and LPI Financial Services, Inc. (Case No. 15-41996). Life Partners is estimated to have $100 million to $500 million in assets and more than $1 billion in debt. LPI Financial estimated less than $50,000. LJ/HAH HOLDINGS: S&P Withdraws 'B' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services said that it is withdrawing its 'B' corporate credit rating on LJ/HAH Holdings Corp. as well as the 'B' issue-level rating on its term loan, under borrower Henniges Automotive Holdings Inc. The withdrawal follows Henniges' announcement that it has been acquired by AVIC Automotive Systems Holding Co. Ltd. (AVIC Auto), a wholly-owned subsidiary of Aviation Industry Corp. of China (AVIC) and receipt of documents supporting the repayment of Henniges' previously outstanding term debt. MALIBU ASSOCIATES: US Bank, US Trustee Object to Plan Disclosure ---------------------------------------------------------------- The U.S. Trustee filed an objection to the Disclosure Statement filed by Malibu Associates, LLC. Brian D. Fittipaldi, Esq., representing the U.S. Trustee, notes that the Debtor seeks to give authority to the Reorganized Debtor to employ professionals and pay them without any further Court order. The UST is concerned that there would be no notice to interested parties of professional employment, their rates, and accumulating fees. The UST requests that the Debtor be required to provide notice of any employment and proposed payments to those professionals. In addition, the UST requests that the Debtor provide a numerical rendering of the Liquidation Analysis either in the text of the Disclosure Statement or attached as an exhibit. The Debtor has subsequently agreed to all of the U.S. Trustee's requested modifications to the Disclosure Statement. The Debtor will make the changes/additions to the Disclosure Statement. U.S. Bank Objects Senior Secured Creditor U.S. Bank submits an objection to the Disclosure Statement regarding its Plan of Reorganization. Joshua D. Wayser, Esq., representing U.S. Bank, tells the Court that the Debtor filed its second bankruptcy petition to stave off a scheduled trustee sale of the Property by senior secured lender U.S. Bank. The Debtor then filed the Disclosure Statement and Plan on the last day possible to avoid U.S. Bank from being granted relief from the automatic stay regarding the Property as a matter of right under the single asset rules. While the Disclosure Statement and Plan promise to pay all of the Debtor's secured creditors in full through a future sale of the Property, it is an empty promise, as the Disclosure Statement and Plan fail to include an executed purchase agreement, fail to identify a buyer, and fail to provide any evidence that suggests that Debtor could sell the Property, which has been appraised at $16.9 million, for the over $50 million required to pay its secured creditors in full. This is all the more problematic given that Debtor has been attempting to sell the Property for a year before it filed this chapter 22, with no success, it has made no further progress during the four months it has been in this second bankruptcy, and it owes over $500,000 in property taxes that continue to accrue. According to Mr. Wayser, the Plan is nothing more than another delay tactic, further evidenced by Debtor's refusal to include a definitive effective date so as to allow Debtor to remain indefinitely in bankruptcy while U.S. Bank's senior loan -- which matured almost one year ago -- remains unpaid, with not even monthly payments being made and no payments received at all since September 2014. While U.S. Bank would be happy to be paid off in full through the sale of the Property, Debtor has admittedly tried and failed to do exactly this for the past year and a half. The Disclosure Statement and Plan provide no evidence that such a sale will ever materialize. Mr. Wayser submits that the Disclosure Statement fails to provide adequate information regarding the Plan, more specifically regarding the proposed sale of the Property and the value of the Property. And while U.S. Bank recognizes that confirmation issues normally are deferred while considering disclosure statements, the confirmation issues here are glaring enough that the Disclosure Statement should not be approved. In particular, the Plan cannot be confirmed as a matter of law, as (i) it is not feasible because it provides no evidence that the proposed sale will ever occur, (ii) it impermissibly deprives U.S. Bank, as well as all other secured creditors, a vote on the Plan even though U.S. Bank is impaired by the proposed indefinite delay between the Plan's confirmation and its effective date, (iii) the Plan was not proposed in good faith and is simply the latest in a series of tactical delays, highlighted by Debtor's insistence upon an indefinite effective date, and (iv) the Plan is not in the best interest of the creditors because there is no guaranty that the Property will ever sell for the required price, while a chapter 7 liquidation would promptly pay secured creditors. Accordingly, Mr. Wayser concludes that the Disclosure Statement and Plan are premature and incomplete at best, and, given their timing, were more likely filed to stall U.S. Bank's collection on its loan by delaying this bankruptcy indefinitely. U.S. Bank is represented by: Joshua D. Wayser, Esq. Cristina E. Bautista, Esq. KATTEN MUCHIN ROSENMAN LLP 2029 Century Park East, Suite 2600 Los Angeles, CA 90067-3012 Tel: (310) 788-4400 Fax: (310) 788-4471 Email: joshua.wayser@kattenlaw.com cristina.bautista@kattenlaw.com Debtor Defends Plan Lindsey L. Smith, Esq., at Levene Neale Bender Rankin & Brill LLP, representing the Debtor, notes that he Bank makes two primary arguments in the Opposition: (1) that the Disclosure Statement does not contain adequate information; and (2) that the Plan is patently unconfirmable. The Debtor believes the Disclosure Statement does contain information which is adequate to enable a reasonable creditor to make an informed judgment about whether to accept the Plan. However, to the extent that the Court determines that more information and details are needed, the Debtor can easily amend the Disclosure Statement to provide the requisite information and details. The Bank also argues, even though it admits that the proper context for consideration of plan confirmation issues is not at the Disclosure Statement approval phase, that the Plan is patently unconfirmable. The Debtor submits that all of the issues regarding the confirmability of the Debtor's Plan can and should be dealt with at the time of confirmation and not at this point in the process. Notwithstanding, the Debtor submits that the Plan is not patently unconfirmable because it is feasible, properly classifies the Bank's claim as unimpaired, was filed in good faith and satisfies the best interests of creditors. About Malibu Associates Headquartered in Malibu, California, Malibu Associates, LLC, owns the Malibu Golf Club. The club has a restaurant and clubhouse, in addition to an 18-hole golf course, on its 650-acre property in the Santa Monica Mountains. Malibu Associates sought Chapter 11 protection (Bankr. C.D. Cal. Case No. 15-10477) in Santa Barbara, California, on March 10, 2015, disclosing $76.2 million in total assets and $47.8 million in total liabilities. Thomas Hix, managing member of the Debtor, signed the bankruptcy petition. The Debtor owns real property located at 901 Encinal Canyon Road, Malibu, California. The property secures a $46.8 million debt to U.S. Bank, National Association, which is secured by a first deed of trust on the property. The Los Angeles County Treasurer and Tax Collector is also owed $459,800, secured by a tax lien on the property. The case is assigned to Judge Deborah J. Saltzman. David L. Neale, Esq., at Levene Neale Bender Rankin & Brill LLP, in Los Angeles, serves as counsel to the Debtor. The Debtor previously sought bankruptcy protection on Nov. 3, 2009, in the Central District of California, San Fernando Valley Division (Case No. No. 9-24625). That case was assigned to the Honorable Maureen A. Tighe, but was later dismissed. The real property in Malibu was included in the prior filing. MOLYCORP INC: Gets Approval to Reject Contracts at Calif. Mine -------------------------------------------------------------- Peter Hall at Bankruptcy Law360 reported that a Delaware bankruptcy judge on Sept. 15, 2015, permitted mine operator Molycorp Inc. to reject leases associated with its key California mine where it had scaled back production after seeking court protection in June. An attorney for Molycorp told U.S. Bankruptcy Judge Christopher S. Sontchi the company had reached a resolution of objections to its motion to reject executory contracts by creditor Veolia Water North America Operating Services LLC. About Molycorp Molycorp Inc. -- http://www.molycorp.com/-- is a global rare earths and rare metals producer. Molycorp owns several prominent rare earth processing facilities around the world. It has a workforce of 2,530 employees at locations on three continents. Molycorp's Mountain Pass Rare Earth Facility in San Bernadino County, California, is home to one of the world's largest and richest deposits of rare earths. Molycorp has corporate offices in the United States, Canada and China. CEO Geoffrey R. Bedford, and other senior management members are located in Molycorp's corporate offices in Toronto, Canada. Other senior manageemnt members are located at its U.S. corporate headquarters in Greendwood Village, Colorado. Molycorp reported a net loss of $623 million in 2014, a net loss of $377 million in 2013 and a net loss of $475 million in 2012. As of March 31, 2015, the Company had $2.49 billion in total assets, $1.78 billion in total liabilities and $709 million in total stockholders' equity. Molycorp and its North American subsidiaries, together with certain of its non-operating subsidiaries outside of North America, filed Chapter 11 voluntary petitions in Delaware (Bankr. D. Del. Lead Case No. 15-11357) on June 25, 2015, after reaching agreement with a group of lenders on a financial restructuring. The Chapter 11 cases of Molycorp and 20 affiliated debts are pending before Judge Christopher S. Sontchi. The agreement provides for a financial restructuring of the Company's $1.7 billion in debt and provides up to $225 million in gross proceeds in new financing to support operations while the Company completes negotiations with creditors. The Company's operations outside of North America, with the exception of non-operating companies in Luxembourg and Barbados, are excluded from the filings. Molycorp Rare Metals (Oklahoma), LLC, with operations in Quapaw, Oklahoma, also is excluded from the filings as it is not 100% owned by the Company. Molycorp is being advised by the investment banking firm of Miller Buckfire & Co. and is receiving financial advice from AlixPartners, LLP. Jones Day and Young, Conaway, Stargatt & Taylor LLP act as legal counsel to the Company in this process. Prime Clerk serves as claims and noticing agent. Secured creditor Oaktree Capital Management L.P., consented to the use of cash collateral and to extend postpetition financing. On July 8, 2015, the U.S. trustee overseeing the Chapter 11 case of Molycorp Inc. appointed eight creditors of the company to serve on the official committee of unsecured creditors. NEWZOOM INC: Proposes Prime Clerk as Noticing and Claims Agent -------------------------------------------------------------- NewZoom, Inc., seeks authority from the Bankruptcy Court to employ Prime Clerk LLC as noticing and claims agent. As claims and noticing agent, Prime Clerk will, among other things: (i) serve as the Court's notice agent to mail certain notices to the estate's creditors and parties-in-interest, (ii) provide computerized claims and claims objections services, and (iii) provide expertise, consultation, and assistance with claim processing and with other administrative information related to the Debtor's bankruptcy case. Prime Clerk will also maintain an official claims register and copies of all proofs of claim and proofs of interest filed. Prime Clerk will be compensated based on the services it provides at these rates: Title Hourly Rate ----------------------- ----------- Analyst $30-$45 Technology Consultant $75-$95 Consultant $90-$125 Senior Consultant $135-$155 Director $165-$185 Solicitation Consultant $175 Director of Solicitation $195 Within 20 days after the end of each month, Prime Clerk will submit to the Debtor, to the United States Trustee and counsel to the Official Committee of Unsecured Creditors, once appointed, its statement for fees and expenses incurred during the previous month. Based upon the creditor matrix, there are approximately 2,100 creditors, former employees, and other parties-in-interest who require notice of various matters. The Debtor says the size of its creditor body makes it impractical for the Clerk to send notices and to maintain a claims register. Prime Clerk is an experienced claims agent, having performed similar services in numerous cases of comparable size throughout the country. In the year prior to the Petition Date, Prime Clerk has been paid $15,000 by the Debtor. There are no amounts owed to Prime Clerk as of the Petition Date. Prime Clerk is currently holding a prepetition retainer of $15,000 from the Debtor for services rendered and to be rendered in connection with this case. To the best of the Debtor's knowledge, Prime Clerk is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About NewZoom Headquartered in San Francisco, California, NewZoom, doing business as ZoomSystems, operates an automated retail channel. It operates ZoomShops, a custom-branded automated self-service retail stores that facilitates online shopping. It has ZoomShop network locations in airports, malls, resorts, military bases, and retail stores in the United States, Europe, and Japan. The Debtor employs approximately 115 people. NewZoom, Inc. filed Chapter 11 bankruptcy petition (Bankr. N.D. Calif. Case No. 15-31141) on Sept. 10, 2015. John A. Lawrence signed the petition as president and chief executive officer. The Debtor has estimated assets and liabilities in the range of $10 million to $50 million. Pachulski Stang Ziehl & Jones LLP represents the Debtor as counsel. The case is assigned to Judge Hannah L. Blumenstiel. NEWZOOM INC: Section 341 Meeting Scheduled for October 6 -------------------------------------------------------- A meeting of creditors in the bankruptcy case of NewZoom, Inc., will be held on Oct. 6, 2015, at 9:00 a.m. at San Francisco U.S. Trustee Office. Proofs of claim are due by Jan. 4, 2016. 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. The Company offers an end-to-end technology and services solution that allows its customers -- major brands and retailers -- to sell its products to consumers through automated kiosks called "ZoomShops," which are installed and operated by the Company in high-traffic locations such as airports and malls. NewZoom, Inc. filed Chapter 11 bankruptcy petition (Bankr. N.D. Calif. Case No. 15-31141) on Sept. 10, 2015. John A. Lawrence signed the petition as president and chief executive officer. The Debtor has estimated assets and liabilities in the range of $10 million to $50 million. Pachulski Stang Ziehl & Jones LLP represents the Debtor as counsel. Prime Clerk LLC acts as the Debtor's claims and noticing agent. The case is assigned to Judge Hannah L. Blumenstiel. ONEX TSG: Moody's Assigns B2 CFR, Outlook Stable ------------------------------------------------ Moody's Investors Service assigned a B2 Corporate Family Rating and B2-PD Probability of Default Rating to Onex TSG Intermediate Corp., the indirect parent of The Schumacher Group ("Schumacher"). At the same time, Moody's assigned a B1 rating to Schumacher's proposed $475 million senior secured credit facilities, composed of a $75 million 1st lien revolver and a $400 million 1st lien term loan. Concurrently, Moody's also assigned a Caa1 rating to the company's $135 million 2nd lien term. The rating outlook is stable. This is the first time Moody's has assigned public ratings to Schumacher. The proceeds will be used to fund the acquisition of The Schumacher Group by financial sponsor Onex Partners Manager LP and complete the acquisition of Hospital Physician Partners ("HPP") for $271 million. HPP is an emergency and hospital medicine contract management company that operates in a similar line of business to Schumacher. The following ratings and LGD's have been assigned: Onex TSG Intermediate Corp: Corporate Family Rating at B2 Probability of Default Rating at B2-PD $75 million revolving credit facility expiring in 2020 at B1 (LGD 3) $400 million first lien term loan due in 2022 at B1 (LGD 3) $135 million second lien term loan due in 2023 at Caa1 (LGD 5) The outlook is stable RATING RATIONALE The B2 Corporate Family Rating reflects Schumacher's small size relative to larger competitors, the company's high financial leverage and its significant exposure to uninsured patients. In addition, the company's high concentration in emergency medicine is a further constraint on the rating. Schumacher's rating is supported by favorable market trends within healthcare services outsourcing, strong organic growth and no significant customer concentration. The stable outlook reflects Moody's expectation that Schumacher will continue to produce positive operating results, characterized by strong margins and steady cash flow. Moody's also believes that internal cash will likely be used for additional growth initiatives, instead of debt repayment, nonetheless Moody's expect the company to deliver to about 5 times over the next 12-18 months, primarily through EBITDA growth. Moody's does not anticipate an upgrade in the near-term, however, the rating could be upgraded if the company can grow its revenue base, while expanding its product line. More specifically, if Schumacher is able to deliver and maintain debt to EBITDA around 4.0 times, along with consistent positive free cash flow, the rating could be upgraded. The ratings could be downgraded if the company experiences a negative change in the reimbursement rate environment, such that operating profits deteriorate or credit metrics weaken. If these conditions result in sustained debt to EBITDA greater than 6.0 times, a downgrade is possible. Headquartered in Lafayette, LA, Schumacher is a national provider of integrated emergency medicine, hospital medicine services and healthcare advisory services. Schumacher operates in 28 states with over 1,143 employees and 3,406 clinicians. PACIFIC RECYCLING: U.S. Trustee Forms Four-Member Creditors' Panel ------------------------------------------------------------------ Gail Brehm GEIGER, acting U.S. trustee for Region 18, appointed four creditors of Pacific Recycling Inc. to serve on the official committee of unsecured creditors. The unsecured creditors are: (1) Steve Dorman, President Dorman Construction, Inc. steve@dorman-const.com 303 S. 5th Street Suite #135 Springfield, OR 97477 Tel: 541-984-0012 Fax: 541-984-0013 (2) Sam Jacobs Jacobs Group, LLC samjacobs88@comcast.net 2373 NE 30th Court Light House Point, FL 33064 Tel: 402-910-5078 Fax: 954-942-5356 (3) Lisa Li, CEO HMS Trading LLTrading05@gmail.com P.O. Box 403 Corte Madera, CA 94976 Tel: 415-342-0218 Fax: 415-461-2688 (4) Sarah Coffman Ideal Steel, Inc. scoffman@idealsteelinc.com 90693 Link Road Eugene, OR 97402 Tel: 541-689-0901 Fax: 541-689-6933 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 Pacific Recycling Pacific Recycling, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D. Ore. Case No. 15-62925) on Aug. 27, 2015. The petition was signed by Rodney Schultz as president. The Debtor estimated assets and liabilities of $10 million to $50 million. Hon. Frank R. Alley III is assigned to the case. Cable Huston LLP represents the Debtor as counsel. PATRIOT COAL: In "Advanced" Talks with Rival Bidders for Mines -------------------------------------------------------------- Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review, reported that talks with a rival bidder for Patriot Coal Corp.'s mining assets are in an "advanced" stage and could yield a competitive auction, according to the company's lawyer. According to the report, Patriot attorney Stephen Hessler on Sept. 16 told a bankruptcy judge that the company's talks with the potential bidder, whom he declined to name, could yield a challenge to lead bidder Blackhawk Mining LLC at next week's auction. About Patriot Coal Patriot Coal Corporation is a producer and marketer of coal in the United States. Patriot and its subsidiaries control 1.4 billion tons of proven and probable coal reserves -- including owned and leased assets in the Central Appalachia basin (in West Virginia and Ohio) and Southern Illinois basin (in Kentucky and Illinois) and their operations consist of eight active mining complexes in West Virginia. Patriot Coal first sought Chapter 11 protection on July 9, 2012, and, on Dec. 18, 2013, won approval of its bankruptcy-exit plan from the U.S. Bankruptcy Court for the Eastern District of Missouri. The plan turned over most of the ownership of the company to bondholders that include New York hedge fund Knighthead Capital Management LLC. The linchpins of the plan were a global settlement among the Debtors, the United Mine Workers of America, and two third parties -- Peabody Energy Corporation and Arch Coal, Inc. -- and a commitment by a consortium of creditors, led by Knighthead, to backstop two rights offerings that funded the plan. Patriot Coal Corporation and its subsidiaries commenced new Chapter 11 cases (Bankr. E.D. Va. Lead Case No. 15-32450) in Richmond, Virginia, on May 12, 2015. The cases are assigned to Judge Keith L. Phillips. Patriot Coal estimated more than $1 billion in assets and debt. The Debtors tapped Kirkland & Ellis LLP as counsel; Kutak Rock L.L.P., as co-counsel; Centerview Partners LLC as investment bankers; Alvarez & Marsal North America, LLC, as restructuring advisors; and Prime Clerk LLC, as claims and administrative agent. The U.S. trustee overseeing the Chapter 11 case of Patriot Coal Corp. appointed seven creditors of the company to serve on the official committee of unsecured creditors. The Committee is represented by Morrison & Foerster LLP as its counsel, and Tavenner & Beran, PLC, as its local counsel. Jefferies LLC serves as its investment banker. The directed the U.S. Trustee to form an official committee of retirees at the behest of Patriot Coal Non-Union Retiree VEBA. * * * 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. PETTERS COMPANY: Court Approves WayPoint as Trustee's Consultant ---------------------------------------------------------------- Douglas A. Kelley, the Chapter 11 trustee of Petters Company, Inc. et al., sought and obtained permission from the Hon. Gregory F. Kishel of the U.S. Bankruptcy Court for the District of Minnesota to employ WayPoint Inc. as tax and forensic accounting consultants, effective June 1, 2015. The Debtors require WayPoint Inc to provide tax consulting and forensic accounting services related to federal and state tax refunds applied for by Frank Vennes ("Vennes Refunds"). Frank Vennes was a business associate of Petters and a service agent and primary fundraiser for Petters Company, Inc. Compensation to WayPoint will be based on the current hourly rate, plus reimbursement of actual and necessary expenses incurred by WayPoint in providing services to the Trustee. The current hourly rate of Rodney E. Oakes is $350. Mr. Oakes 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. WayPoint can be reached at: Rodney E. Oakes WAYPOINT, INC. 4760 White Bear Parkway, Suite 201 White Bear Lake, MN 55110 Tel: (651) 702-0138 E-mail: roakes@waypointinc.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. PETTERS COMPANY: Ritchie Loses Round in Suit Against JPMorgan ------------------------------------------------------------- Pete Brush at Bankruptcy Law360 reported that a Minnesota federal judge on Sept. 14, 2015, denied a bid by Ritchie Capital Management LLC to lift a litigation stay shielding the $3.7 billion Thomas Petters Ponzi scheme receivership, finding the hedge fund's bid to recover from defendant JPMorgan Chase & Co. could hamper receiver Douglas A. Kelley's own litigation against the megabank. Ritchie and companion litigant Yorkville Investment I LLC extended $189 million in loans to Petters prior to the fraud's collapse in 2008. 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. PHILADELPHIA PERFORMING: S&P Affirms BB- Rating on 2013 Rev. Bonds ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook to positive from stable and affirmed its 'BB-' rating on the Philadelphia Authority for Industrial Development's series 2013 revenue bonds, issued for Philadelphia Performing Arts Charter School (PPACS). "The outlook revision reflects our view of the school's steady enrollment growth, robust demand, healthy operating surpluses (adjusted for one-time expenses associated with the bond issuance in fiscal 2014), good liquidity, improved maximum annual debt service (MADS) coverage, and moderating debt burden, all of which support potential for a higher rating," said Standard & Poor's credit analyst Avani Parikh. "The positive outlook reflects our expectation that the school will maintain operating surpluses, a stable liquidity position, and solid demand metrics, while continuing to successfully execute its growth strategy," Ms. Parikh added. "We could consider raising the rating during the one-year outlook period if MADS coverage improves to closer to 1.1x and the debt burden continues to moderate, while the school maintains positive operations, steady liquidity, and enterprise profile strength." The series 2013 bonds were loaned to the school's foundation, a legally separate tax-exempt organization from PPACS, which was organized to manage the school's annual operations, facilities, and long-term viability. The bonds are a general obligation of the foundation, payable from legally available funds generated and held by PPACS. A first-mortgage lien on the facilities secures the bonds. The school has a debt service fund, equal to MADS. The foundation and PPACS have a lease financing agreement under which the foundation leases the facilities to the school. PPACS specializes in the performing arts with dance, instrumental, and vocal music lessons. QUIKSILVER INC: Court Approves KCC as Claims and Noticing Agent --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Quiksilver, Inc. and its debtor affiliates to employ Kurtzman Carson Consultants LLC as their claims and noticing agent, nunc pro tunc to the Petition Date. KCC will perform noticing services and to receive, maintain, record and administer the proofs of claim filed in the Debtors' Chapter 11 cases. The Court authorized the Debtors to pay KCC in accordance with the terms of the Services Agreement, and to reimburse KCC for all reasonable and necessary expenses it may incur. About Quiksilver Quiksilver, Inc., designs, produces and distributes branded apparel, footwear and accessories. The Company's apparel and footwear brands, inspired by a passion for outdoor action sports, represent a casual lifestyle for young-minded people who connect with its boardriding culture and heritage. The Company's Quiksilver, Roxy, and DC brands have authentic roots and heritage in surf, snow and skate. The Company's products are sold in more than 100 countries in a wide range of distribution, including surf shops, skate shops, snow shops, its proprietary Boardriders shops and other Company-owned retail stores, other specialty stores, select department stores and through various e-commerce channels. For additional information, please visit the Company's brand Web sites at www.quiksilver.com, www.roxy.com and www.dcshoes.com. Quiksilver began operations in 1976 as a California company making boardshorts for surfers in the United States under a license agreement with the Quiksilver brand founders in Australia. The Company later reincorporated in Delaware and went public in 1986. In fiscal year 2014 (ended Oct. 31, 2014), 34% of the Company's revenue was generated by the Debtors, within the United States. The remaining 66% is attributable to the Non-Debtor Affiliates located outside the United States. Sales at Company retail stores accounted for approximately 28% of Company revenue during fiscal year 2014. The Company's retail shops include full-price stores, factory outlet stores, and "shop-in-shops." At the end of the fiscal year 2014, the Company had approximately 266 full-price core brand stores, of which 75 are located in the United States. Quiksilver, Inc., and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del., Case Nos. 15-11880 to 15-11890) on Sept. 9, 2015. Andrew Bruenjes signed the petition as chief financial officer. The Debtors disclosed total assets of $337 million and total debts of $826 million. Skadden, Arps, Slate, Meagher & Flom LLP is serving as the Debtors' legal advisor, FTI Consulting, Inc. as their restructuring advisor, and Peter J. Solomon Company as their investment banker. Kurtzman Carson Consultants LLC acts as the Debtors' claims and noticing agent. QUIKSILVER INC: Court Enforces Automatic Stay Protection -------------------------------------------------------- The Bankruptcy Court entered an order enforcing the Bankruptcy Code's automatic stay provisions and bankruptcy termination provisions in the Chapter 11 cases of Quiksilver Inc. and its debtor affiliates. The automatic stay enjoins all persons and all governmental units from, among other things, (a) commencing or continuing any judicial, administrative, or other proceeding against the Debtors that was or could have been initiated before the Debtors' Chapter 11 cases were commenced or recovering upon a claim against any of the Debtors that arose before the commencement of the Debtors' Chapter 11 cases and (b) taking any action to collect, assess, or recover a claim against any of the Debtors that arose before the commencement of the Chapter 11 cases. About Quiksilver Quiksilver, Inc., designs, produces and distributes branded apparel, footwear and accessories. The Company's apparel and footwear brands, inspired by a passion for outdoor action sports, represent a casual lifestyle for young-minded people who connect with its boardriding culture and heritage. The Company's Quiksilver, Roxy, and DC brands have authentic roots and heritage in surf, snow and skate. The Company's products are sold in more than 100 countries in a wide range of distribution, including surf shops, skate shops, snow shops, its proprietary Boardriders shops and other Company-owned retail stores, other specialty stores, select department stores and through various e-commerce channels. For additional information, please visit the Company's brand Web sites at www.quiksilver.com, www.roxy.com and www.dcshoes.com. Quiksilver began operations in 1976 as a California company making boardshorts for surfers in the United States under a license agreement with the Quiksilver brand founders in Australia. The Company later reincorporated in Delaware and went public in 1986. In fiscal year 2014 (ended Oct. 31, 2014), 34% of the Company's revenue was generated by the Debtors, within the United States. The remaining 66% is attributable to the Non-Debtor Affiliates located outside the United States. Sales at Company retail stores accounted for approximately 28% of Company revenue during fiscal year 2014. The Company's retail shops include full-price stores, factory outlet stores, and "shop-in-shops." At the end of the fiscal year 2014, the Company had approximately 266 full-price core brand stores, of which 75 are located in the United States. Quiksilver, Inc., and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del., Case Nos. 15-11880 to 15-11890) on Sept. 9, 2015. Andrew Bruenjes signed the petition as chief financial officer. The Debtors disclosed total assets of $337 million and total debts of $826 million. Skadden, Arps, Slate, Meagher & Flom LLP is serving as the Debtors' legal advisor, FTI Consulting, Inc. as their restructuring advisor, and Peter J. Solomon Company as their investment banker. Kurtzman Carson Consultants LLC acts as the Debtors' claims and noticing agent. QUIKSILVER INC: Wins Interim OK to Pay $30-Mil. to Critical Vendors ------------------------------------------------------------------- The Bankruptcy Court gave Quiksilver, Inc. and its debtor affiliates permission to pay claims of suppliers, service providers, and vendors in an amount not to exceed $30 million, on an interim basis. The Court authorized the Debtors to cause the Critical Vendors to enter into trade agreements with them as a condition to payment of their claims. If a Critical Vendor refuses to supply goods or services to the Debtors on Temporary Trade Terms following receipt of payment on its Critical Vendor Claim or fails to comply with any Trade Agreement, the Debtors may declare that any Trade Agreement is terminated and that payments made to the Critical Vendor on account of its Critical Vendor Claim be deemed to have been made in payment of then-outstanding postpetition claims of that Critical Vendor. A final hearing on the Motion is scheduled for Oct. 6. About Quiksilver Quiksilver, Inc., designs, produces and distributes branded apparel, footwear and accessories. The Company's apparel and footwear brands, inspired by a passion for outdoor action sports, represent a casual lifestyle for young-minded people who connect with its boardriding culture and heritage. The Company's Quiksilver, Roxy, and DC brands have authentic roots and heritage in surf, snow and skate. The Company's products are sold in more than 100 countries in a wide range of distribution, including surf shops, skate shops, snow shops, its proprietary Boardriders shops and other Company-owned retail stores, other specialty stores, select department stores and through various e-commerce channels. For additional information, please visit the Company's brand Web sites at www.quiksilver.com, www.roxy.com and www.dcshoes.com. Quiksilver began operations in 1976 as a California company making boardshorts for surfers in the United States under a license agreement with the Quiksilver brand founders in Australia. The Company later reincorporated in Delaware and went public in 1986. In fiscal year 2014 (ended Oct. 31, 2014), 34% of the Company's revenue was generated by the Debtors, within the United States. The remaining 66% is attributable to the Non-Debtor Affiliates located outside the United States. Sales at Company retail stores accounted for approximately 28% of Company revenue during fiscal year 2014. The Company's retail shops include full-price stores, factory outlet stores, and "shop-in-shops." At the end of the fiscal year 2014, the Company had approximately 266 full-price core brand stores, of which 75 are located in the United States. Quiksilver, Inc., and its affiliates filed Chapter 11 bankruptcy petitions (Bankr. D. Del., Case Nos. 15-11880 to 15-11890) on Sept. 9, 2015. Andrew Bruenjes signed the petition as chief financial officer. The Debtors disclosed total assets of $337 million and total debts of $826 million. Skadden, Arps, Slate, Meagher & Flom LLP is serving as the Debtors' legal advisor, FTI Consulting, Inc. as their restructuring advisor, and Peter J. Solomon Company as their investment banker. Kurtzman Carson Consultants LLC acts as the Debtors' claims and noticing agent. RADIOSHACK CORP: Liquidation Plan Moves Closer to Final Approval ---------------------------------------------------------------- Tom Corrigan, writing for Dow Jones' Daily Bankruptcy Review, reported that lawyers for the former RadioShack said Sept. 16 the defunct electronics retailer had resolved about a dozen objections to its liquidation plan and will return to a bankruptcy courtroom on Sept. 17 to seek a judge's order finalizing the proposal. According to the report, lawyers for RS Legacy Corp., the corporate shell of what was once RadioShack, spent much of the Sept. 16 hearing at the U.S. Bankruptcy Court in Wilmington, Del., outside the courtroom, attempting to work through a handful of remaining roadblocks. The Debtors amended their plan ahead of the Sept. 17 hearing. A full-text copy of the Amended Plan dated Sept. 14, 2015, is available at http://bankrupt.com/misc/RSplan0914.pdf In support of confirmation of the Plan, the Debtors maintain that the centerpiece of the Plan is the resolution of various disputes among the Debtors, the Creditors' Committee and the SCP Secured Parties. After extensive negotiations, the Debtors, the Creditors' Committee and the SCP Secured Parties entered into a settlement term sheet that resolves various disputes among them, including disputes regarding allocation of cash proceeds between the Debtors' encumbered and unencumbered assets, the SCP Secured Parties' alleged diminution and adequate protection claims, and the Debtors' alleged section 506(c) claims. The settlement not only resolves these long-standing issues among the Debtors, their unsecured creditors and the remaining unpaid secured creditor, it provides sufficient cash for the Debtors to satisfy administrative and priority claims pursuant to the agreed Wind Down Budget and creates the prospect for a distribution to general unsecured creditors. James Daloia, the Director of Solicitation and Disbursements at Prime Clerk LLC, disclosed that an overwhelming majority of creditors entitled to vote on the Plan voted to accept the Plan. According to Mr. Daloia, 100% of Class 3 - RS Legacy Corporation SCP Secured Claims, 85.71% of Class 5 - RS Legacy Corporation Dark Store Claims and 88.46% of Class 7 RS Legacy Corporation 2019 Note Claims voted to accept the Plan. No ballots for Class 4 - RS Legacy Corporation IRS Claims was returned. Carlin Adrianopoli, Chief Financial Officer of the Debtors, filed a declaration stating that the Plan complies with all applicable provisions of Section 1129(a)(1) of the Bankruptcy Code, including Sections 1122 and 1123 of the Bankruptcy Code. Among other things, Article II of the Plan properly classifies all Claims and Interests that require classification and segregates such Claims and Interests into ten separate Classes, Ms. Adrianopoli said. About RadioShack Corporation Headquartered in Fort Worth, Texas, RadioShack is a retailer of mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack's retail network includes more than 4,300 company-operated stores in the United States, 270 company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide. RadioShack Corporation and affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 15-10197) on Feb. 5, 2015. Judge Kevin J. Carey presides over the case. David G. Heiman, Esq., Greg M. Gordon, Esq., Amanda M. Suzuki, Esq., Jonathan M. Fisher, Esq., Thomas A. Howley, Esq., and Paul M. Green, Esq., at Jones Day serve as the Debtors' bankruptcy counsel. David M. Fournier, Esq., Evelyn J. Meltzer, Esq., and John H. Schanne, II, Esq., at Pepper Hamilton LLP serve as co-counsel. Carlin Adrianopoli at FTI Consulting, Inc., is the Debtors' restructuring advisor. Maeva Group, LLC, is the Debtors' Turnaround advisor. Lazard Freres & Co. LLC is the Debtors' investment banker. A&G Realty Partners is the Debtors' real estate advisor. Prime Clerk is the Debtors' claims and noticing agent. In their Petitions, the Debtors disclosed total assets of $1.2 billion, versus total debts of $1.3 billion. Quinn Emanuel Urquhart & Sullivan, LLP and Cooley LLP represent the Official Committee of Unsecured Creditors as co-counsel. Houlihan Lokey Capital, Inc., serves as financial advisor and investment banker. The bankruptcy case is assigned to Judge Brendan L. Shannon. The First Amended Plan provides that the SCP Agent will recover an estimated 80% to 90% of its allowed claim amount, estimated to total $70 million. General Unsecured Claims, estimated to total $200 to $400 million, will receive a Pro Rata share, with Allowed Claims in Classes 6 and 7, of the Remaining Liquidating Trust Assets. A blacklined version of the Disclosure Statement is available at http://bankrupt.com/misc/RSIds0810.pdf RANCHO MIRAGE, CA: Moody's Hikes TABs Rating From Ba1 ----------------------------------------------------- Moody's Investor's Service has upgraded to Baa1 from Ba1 the Successor Agency to the Rancho Mirage Redevelopment Agency's Tax Allocation Bonds. Moody's said, "On June 24, 2015, in connection with the release of our Tax Increment Debt methodology, we placed the ratings for nearly all California tax allocation bonds (TABs) on review for upgrade, including this successor agency's (SA) TABs. This rating action completes our review for this SA." "Three years post-dissolution, the administrative risks related to the payment of debt service have significantly lessened, so we are now placing greater weight on the fundamental project area characteristics and some of the positive features of the dissolution legislation, including the closed lien status of the debt and the availability of the 20% of tax increment revenues previously restricted for use on affordable housing to pay debt service." SUMMARY RATING RATIONALE The upgrade to Baa1 takes into account the sizeable incremental assessed value (AV) of the merged project area, return to healthy AV growth, average level of incremental AV to total AV, adequate debt service coverage levels, minimal tax payer concentration and an above average socio-economic profile of area residents. Moody's said, "The rating factors in the SA's successful adaptation to post dissolution processes and administrative procedures and our expectation that this will continue. The rating also incorporates our generally positive assessment of the implementation of the legislation that dissolved redevelopment agencies (RDAs) by most successor agencies over the last three years, leading to timely payment of debt service on California TABs." In 2012, state legislation dissolved all California RDAs, replacing them with "successor agencies" to serve as fiduciary agents. Dissolution effectively changed the flow of funds and processes around the payment of debt service on TABs. Tax increment revenue is placed in trust with the county auditor-controller, who makes semi-annual distributions of funds sufficient to pay debt service on TABs and other "enforceable obligations" approved by the state. OUTLOOK Outlooks are generally not applicable for local government credits of this size. WHAT COULD MAKE THE RATING GO UP -- Sizable increase in incremental AV of the project area, leading to greater debt service coverage WHAT COULD MAKE THE RATING GO DOWN -- Protracted decline in incremental AV -- Erosion of debt service coverage levels -- Additional legislative or administrative changes that create uncertainty as to the timely payment of debt service OBLIGOR PROFILE The Successor Agency to the Rancho Mirage Redevelopment Agency is a separate legal entity from the City of Rancho Mirage. The SA is responsible for winding down the operations of the former RDA, making payments on state-approved "enforceable obligations" and liquidating any unencumbered assets to be distributed to other local taxing entities. LEGAL SECURITY The legal security for the bonds is tax increment revenue pledged from the specific project sub-areas, net of housing project bonds debt service and pass through payments. While not legally pledged, the dissolution laws permit TAB debt service to be paid from tax increment revenues deposited in the SA's Redevelopment Property Tax Trust Fund (RPTTF), less amounts disbursed for pass-through payments and certain administrative charges. This includes the 20% of TI revenue previously considered restricted housing set aside. The SA is responsible for notifying the county auditor-controller of any shortfall in TI revenue expected to be deposited in the RPTTF needed for the payment of TAB debt service that would result from the disbursal of the monies for subordinated pass-through payments, so that the necessary subordination can be effected through changes to the usual flow of funds. REGNIS MANAGEMENT: Case Summary & 12 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: REGNIS Management LLC 46 Vreeland Drive, Suite 6 Skillman, NJ 08558 Case No.: 15-27375 Chapter 11 Petition Date: September 15, 2015 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Hon. Christine M. Gravelle Debtor's Counsel: Barry J. Roy, Esq. RABINOWITZ LUBETKIN & TULLY, LLC 293 Eisenhower Parkway, Suite 100 Livingston, NJ 07039 Tel: 973-597-9100 Fax: 973-597-9119 Email: broy@rltlawfirm.com Total Assets: $179,592 Total Liabilities: $20 million The petition was signed by Todd Singer, member. A list of the Debtor's 12 largest unsecured creditors is available for free at http://bankrupt.com/misc/njb15-27375.pdf REICHHOLD HOLDINGS: Stepan Co. Steps Down From Creditors' Panel --------------------------------------------------------------- Stepan Company has resigned from Reichhold Holdings US, Inc.'s official committee of unsecured creditors, according to a filing with the U.S. Bankruptcy Court in Delaware. The U.S. Trustee for Region 3 appointed the Illinois-based company to serve on the committee on Oct. 14, 2014. About Reichhold Founded in 1927, Reichhold, with its world headquarters and technology center in Durham, North Carolina, is one of the world's largest manufacturer of unsaturated polyester resins and a leading supplier of coating resins for the industrial, transportation, building and construction, marine, consumer and graphic arts markets. Reichhold -- http://www.Reichhold.com/-- has manufacturing operations throughout North America, Latin America, the Middle East, Europe and Asia. As of June 30, 2014, the Reichhold companies had consolidated assets of $538 million and liabilities of $631 million. Reichhold Holdings US, Inc., Reichhold, Inc., and two U.S. affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 14-12237) on Sept. 30, 2014. Cole, Schotz, Meisel, Forman & Leonard, P.A. (legal advisor) and CDG Group LLC (financial advisor) are representing Reichhold, Inc. Latham & Watkins LLP (legal advisor) and Moelis & Company (investment banker) are serving Reichhold Industries, Inc. Logan & Company is the company's claims and noticing agent. The cases are assigned to Judge Mary F. Walrath. The U.S. Trustee for Region 3 appointed seven creditors of Reichhold Holdings US, Inc. to serve on the official committee of unsecured creditors. On April 1, 2015, the U.S. Trustee named three non-union retirees of Debtors to serve as the official Non-Union Retiree Committee. Each of the Retiree Committee members is receiving retiree welfare benefits from one or more of the Debtors. On April 2, 2015, Reichhold disclosed that the purchase of most of the assets of the U.S. business was completed. This transaction, approved by the Delaware Bankruptcy Court on January 12, 2015, allows Reichhold's U.S. businesses to successfully emerge from bankruptcy and re-join the rest of the global Reichhold organization. Concurrent with this purchase, Reichhold completed a debt-for-equity exchange with a group of investors led by Black Diamond Capital Management LLC and including J.P. Morgan Investment Management, Inc., Third Avenue Management LLC, and Simplon Partners LP. REVEL AC: Utility Says New Owner Wants to Resell, Not Reopen ------------------------------------------------------------ Alex Wolf at Bankruptcy Law360 reported that the former energy provider for the shuttered Revel Casino Hotel, now enmeshed in litigation with Revel operator Polo North Country Club Inc. over supplying power to the building, said Polo North has refused to pay for energy services while it tries to flip the complex to a new buyer. Just four months after the ill-fated Revel Casino in Atlantic City was sold off, windows are broken, the power is off and little progress has been made on reviving the facility, the former power company notes. Jeannie O'Sullivan at Bankruptcy Law360, meanwhile, reported that Polo North said ACR Energy Partners LLC has resorted to raising "irrelevant and frivolous issues" to block a motion to remand the litigation between the parties to New Jersey state court. ACR Energy has gone to "great lengths" to argue that the motion is precluded by the Entire Controversy Doctrine and to assert standing for a breach-of-contract claim, "instead of focusing on the jurisdiction issue," Polo North said. About Revel AC Revel AC, Inc. -- http://www.revelresorts.com/-- owns and operates Revel, a Las Vegas-style, beachfront entertainment resort and casino located on the Boardwalk in the south inlet of Atlantic City, New Jersey. Revel AC Inc. and five of its affiliates sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 14-22654) on June 19, 2014, to pursue a quick sale of the assets. The Chapter 11 cases of Revel AC LLC and its debtor-affiliates are transferred to Judge Michael B. Kaplan. The Debtors' cases was originally assigned to Judge Gloria M. Burns. The Debtors' Chapter 11 cases are jointly consolidated for procedural purposes. Revel AC estimated assets ranging from $500 million to $1 billion, and the same amount of liabilities. White & Case, LLP, and Fox Rothschild, LLP, serve as the Debtors' Counsel, and Moelis & Company, LLC, is the investment banker. The Debtors' solicitation and claims agent is Alixpartners, LLP. The prepetition first lenders are represented by Cadwalader, Wickersham & Taft LLP. The prepetition second lien lenders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP. The DIP agent is represented by Milbank, Tweed, Hadley & McCloy LLP. This is Revel AC's second trip to bankruptcy. The company first sought bankruptcy protection (Bankr. D.N.J. Lead Case No. 13-16253) on March 25, 2013, with a prepackaged plan that reduced debt by $1.25 billion. Less than two months later on May 15, 2013, the 2013 Plan was confirmed and became effective on May 21, 2013. * * * Revel AC, Inc., et al., on April 20, 2015, filed an amended plan of reorganization and accompanying disclosure statement to incorporate the terms of a settlement and plan support agreement entered into with the Official Committee of Unsecured Creditors, and Wells Fargo Bank, N.A., as DIP Agent, and Wells Fargo Principal Lending, LLC, as a Prepetition First Lien Lender and DIP Lender. The Settlement Agreement, among other things, provides that Wells Fargo agrees to give the general unsecured creditors $1.60 million of its recovery from the proceeds of the sale of substantially all of the Debtors' assets to Polo North Country Club, Inc., and to advance $150,000 from its recovery to fund the Debtors' reconciliation of claims and prosecution of claims or estate causes of actions. Early in April 2015, U.S. Bankruptcy Judge Gloria Burns approved an $82 million sale of the Revel Casino Hotel to Polo North Country Club, Inc., which is owned by Florida developer Glenn Straub, ending nearly 10 months of contentious legal combat for control of the Atlantic City, N.J., resort. ROTONDO WEIRICH: Sec. 341 Meeting Set for October 13 ---------------------------------------------------- The meeting of creditors of Rotondo Weirich Enterprises Inc. and its affiliates is set to be held on Oct. 13, 2015, at 2:00 p.m., according to a filing with the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. The meeting will be held at the Office of the U.S. Trustee, Meeting Room, Suite 501,833 Chestnut Street, in Philadelphia, Pennsylvania. 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 Rotondo Weirich 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. SCOOTER STORE: Wants Case Dismissed, Says No Assets to Liquidate ---------------------------------------------------------------- Patrick Danner at San Antonio Express-News reports that The Scooter Store is asking the U.S. Bankruptcy Court for the District of Delaware to dismiss its Chapter 11 bankruptcy case. A hearing is set for Oct. 1, 2015, for the Court to consider the Company's request. The Company said in a court filing on Sept. 10, 2015, that it has sold substantially all of its assets and has no other assets to liquidate. The Company said in the court filing that it is "no longer conducting any business operations. As such, there is no business to reorganize, no viable assets to liquidate, and the (companies) have no unencumbered funds available to confirm a plan of liquidation." Express-News relates that almost $9.1 million has been distributed to secured lender Personal Mobility LLC, which also now owns about $552,000 in cash remaining on The Scooter Store companies' books. According to the court filing, unsecured creditors in the cases are unlikely to get anything, while former workers who participated in the Company's stock-ownership plan and 401(k) plan can expect to receive their distributions by year-end. The Company stated in the court documents that Rincon Liquidation Partners LLC bought most of its inventory for $800,000. Express-News relates that miscellaneous assets were sold for about $900,000. The report adds that the client list was sold to Hoveround Corp. for $350,000. About The Scooter Store The Scooter Store is a supplier of power mobility solutions, including power wheelchairs, scooters, lifts, ramps, and accessories. The Scooter Store's products and services provide today's seniors and disabled persons potential alternatives to living in nursing homes or other care facilities. Headquartered in New Braunfels, Texas, the Scooter Store has a nationwide network of distribution centers that service products owned or leased by the Company's customers. It has 57 distribution centers in 41 states. Scooter Store Holdings Inc., and 71 affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-10904) in Wilmington. The closely held company listed assets of less than $10 million and debt of more than $50 million. Affiliates of private equity firm Sun Capital Partners, based in Boca Raton, Florida, purchased a majority voting interest in the debtors in 2011. Scooter Store is 66.8 percent owned by Sun Capital Partners Inc., owed $40 million on a third lien. In addition to Sun's debt and $25 million on a second lien owing to Crystal Financial LLC, there is a $25 million first-lien revolving credit owing to CIT Healthcare LLC as agent. Crystal is providing $10 million in financing for bankruptcy. SPRINT CORP: Moody's Lowers CFR to B3, Outlook Still Negative ------------------------------------------------------------- Moody's Investors Service downgraded several ratings of Sprint Corporation, including the company's Corporate Family Rating ("CFR") to B3 from B1, the company's Probability of Default Rating ("PDR") to B3-PD from B1-PD and Sprint's senior unsecured rating to Caa1 from B2. Moody's also lowered Sprint's Speculative Grade Liquidity ("SGL") Rating to SGL-4 from SGL-3. The rating action reflects Moody's view that the numerous operational and network initiatives, management changes, and funding plans recently announced by Sprint and its parent company and majority shareholder, SoftBank Group Corp. ("SoftBank"), will be insufficient to stabilize Sprint's operations in the next few years. The brutal competition now playing out in the US wireless industry will pressure the financial performance of even the strongest operators. Consequently, we expect Sprint's cash consumption to remain high, liquidity to remain weak and leverage to increase. Finally, we remain concerned about the ability of Sprint to refinance its large upcoming debt maturities absent a much stronger commitment from SoftBank to the long-term strategic importance of Sprint in SoftBank's overall plans. The outlook remains negative. Moody's believes that despite some recent improvement in operating metrics (i.e. reduced churn, decrease in postpaid handset losses) the capital markets will be disinclined to provide funding to Sprint without enhanced collateral in light of its ongoing very large cash needs. "We believe that Sprint (and Softbank) recognize this fact. To address this problem, Sprint, in conjunction with Softbank, have announced plans to establish two leasing companies in order to limit the need for any new debt or equity capital or to sell spectrum "in the foreseeable future". These new leasing companies will be set up to finance customer device leases and network equipment for its network densification program. While details haven't been finalized, the credit impact could be positive for Sprint since liquidity is a key weakness for the company as it invests in a turnaround. However, if the entity does not represent a permanent partner for Sprint, one which can endure all phases of the business or credit cycle, then the financial obligation of the leasing company would likely be added back to Sprint's adjusted credit metrics and further reflected in its long-term ratings," Moody's said. Sprint's debt maturities ramp up significantly starting in December 2016 when $2.0 billion of senior notes mature. Annual debt maturities over the following five years average about $2.5 billion per year. In addition, a major spectrum auction of low-band spectrum is expected to occur in 2016. In the past, Sprint has expressed an interest in this type of spectrum in order to complement its holdings of mid-band and high-band spectrum. Recently, it has been less clear on whether it would seek to augment its relatively shallow low-band holdings. We believe that a balanced mix of spectrum is critical for operators to compete effectively and profitably in the US over the long-term. Consequently, we believe Sprint may need to reconsider its reluctance to sell some of its very deep holdings of 2.5GHz spectrum. Moody's has taken the following rating actions: Issuer: Sprint Corporation Corporate Family Rating -- B3, from B1 Probability of Default Rating -- B3-PD, from B1-PD Speculative Grade Liquidity Rating -- SGL-4, from SGL-3 Outlook -- remains Negative Senior Unsecured Notes -- Caa1, LGD5 from B2, LGD5 Senior Unsecured Shelf -- (P)Caa1 from (P)B2 Issuer: Sprint Communications, Inc. Outlook -- remains Negative Senior Unsecured Notes -- Caa1, LGD5 from B2, LGD5 Junior Guaranteed Unsecured Notes -- B1, LGD2, from Ba2, LGD2 Senior Unsecured Gtd. Bank Credit Facility -- Ba3, LGD2, from Ba1, LGD2 Issuer: Sprint Capital Corporation Outlook -- remains Negative Senior Unsecured Notes -- Caa1, LGD5 from B2, LGD5 Senior Unsecured MTN Program -- (P)Caa1 from (P)B2 Issuer: Clearwire Communications LLC Outlook -- remains Negative Senior Secured 1st Lien Notes -- Ba3, LGD1 from Ba1, LGD1 Exchangeable Notes due 2040 -- B1, LGD3 from Ba2, LGD2 RATINGS RATIONALE Sprint's B2 CFR reflects the company's highly leveraged capital structure, intense competitive challenges, a deteriorating liquidity position, our projection for substantial negative free cash flow through at least 2017 and Sprint's need for significant additional capital to fund its network buildout and to refinance upcoming sizable maturities. The rating currently incorporates a one notch lift due to our expectation that Sprint's parent company and majority shareholder, SoftBank Group Corp. (Ba1 CFR, stable outlook) will seek to retain the viability of Sprint as a going concern. The rating also recognizes its valuable spectrum assets. The lowering of Sprint's SGL rating to SGL-4 indicates Moody's expectation that the company will sustain a weak liquidity profile through the next 12 to 18 months. We believe that additional liquidity will be required because of Sprint's aggressive pricing plans and the negative cash flow impact from installment billing plans. We expect Sprint to remain cash flow negative for CYE2015 and CYE2016, at least. As of June 30, 2015, Sprint had $2.3 billion in cash and short-term investments and $2.9 billion borrowing capacity on its $3.3 billion revolving credit facility and about $1.4 billion borrowing capacity under its $3.3 billion service receivables financing agreement. In addition, Sprint also has $1.3 billion of undrawn availability under its network vendor financing which is utilized towards the purchase of 2.5 GHz equipment. We anticipate Sprint utilizing its service receivables facility, network vendor financing and possibly its revolver to support its liquidity position. As of June 30, 2015, Sprint has $1.2 billion (including $444 million of the Clearwire Exchangeable Notes that becomes callable) and $3.6 billion of debt maturing for FYE2015 and FYE2016 respectively. The negative outlook reflects our belief that Sprint is going to need significant additional funding going forward. It remains uncertain whether or not the capital markets will be receptive to additional funding in light of Sprint's weak performance. Also, if T-Mobile US and Dish were to agree to a merger, capital market access for Sprint would be further marginalized. The outlook could be stabilized if Sprint received significant additional equity funding to ensure the company has a fully funded business plan. Also, a stronger commitment from SoftBank (i.e. debt guarantee) regarding the financial and strategic importance of Sprint to SoftBank's global strategy could stabilize the outlook. Finally, the establishment of a leasing program(s) that improves Sprint's liquidity and leverage profiles would also help stabilize the outlook. Given the negative outlook, a ratings upgrade for Sprint is very unlikely. However, if leverage were to drop and remain below 5.5x, and free cash flow were to turn positive, upward rating pressure could ensue (note that all cited financial metrics are referenced on a Moody's adjusted basis). In addition, significant financial support from Softbank in the form of a debt guarantee or material equity capital infusion could also support Sprint's ratings. Sprint's ratings would be lowered if leverage were likely to be sustained above 6.5x (Moody's adjusted) or if the company's liquidity profile does not improve soon. TARGET CANADA: Spars With Creditors Over $1.9 Billion Debt Claims ----------------------------------------------------------------- Marina Strauss at The Globe and Mail reports that a new battle is brewing over $1.9-billion of intercompany claims in Target Canada's collapse as creditors push to free up money for their own debts. According to the report, the monitor in the Target Canada insolvency case said the $1.9-billion debt the chain has said it owed its own property company should be reduced to $1.36-billion. However, the monitor, Alvarez & Marsal Canada Inc., acknowledged in a court filing that "a strict reading of the words" of the property agreements shows "drafting errors," which, the monitor adds, can be overlooked partly because of Target's "stated intention." Now, some creditors are challenging the entire so-called Propco intercompany claim -- the largest among a number of other such debts -- on the grounds that it is technically flawed, the report says. "In our view, the entire Propco claim is zero," the report quotes Lou Brzezinski, a lawyer at Blaney McMurtry LLP who represents major suppliers such as Universal Studios Canada and Nintendo of Canada, as saying. "I think it is a big problem for Target." The Globe and Mail notes that Target's intercompany claims are important to creditors because they are worried the claims could end up in U.S. parent Target Corp.'s coffers and wipe out their own recoveries. In all, creditors have been estimated to be owed more than $2-billion, which could be almost as much as the intercompany claims, the report says. Target Canada has so far raised roughly $900-million from selling off properties and inventory, the Globe and Mail discloses. Target Canada got court protection from creditors on Jan. 15 after less than two years in Canada. It closed all 133 of its discount stores by mid-April, the report says. The Globe and Mail says that at the start of the insolvency process, an affiliate of the U.S. parent agreed to subordinate to other unsecured creditors $3.1-billion it is owed by Target Canada, allowing other creditors to be paid first. But it has not said it will subordinate other intercompany claims, including the big property debt. In a filing earlier this month, the monitor said the language in the property agreements "presents certain challenges." (The property firm was set up to handle store real estate lease assignments and operations.) "The materials provided in support of this claim indicate that the assignment and assumption agreement serve to assign all the subleases and leasebacks entered into by Prop LP prior to the date of the assignment," the monitor's report said. "However, Prop LP only assigned all of its right, title, interest and obligations as 'sublessor.' Accordingly, on a strict reading of the words of the agreements, only the leasebacks were assigned," it said. "However, on balance, the monitor has concluded that these are simply drafting errors" given a number of factors, including Target's "stated intention." According to the Globe and Mail, the monitor also points to the rationale for the assignment of the leasehold arrangements; the conduct of the parties following the assignment, as shown by the information provided by it in support of its claim; and the property company not being in the position to serve "as lessor under the leasebacks without possessing the benefit of the tenancy afforded by the subleases." Excluding the $3.1-billion of subordinated debt, Target Canada filed for intercompany debts of more than $2.1-billion, the monitor report suggests. Ultimately, it approved intercompany claims against the retailer of more than $1.5-billion, the report relays. Among the intercompany claims are $12-million tied to Target's pharmacies, the report says. Earlier this month, former franchised pharmacists' representatives called on Ottawa to change the Companies' Creditors Arrangement Act -- under which Target got court protection -- to prevent other foreign companies from using it as a way of going out of business. The pharmacists estimate their claims to be between $150-million and $200-million, the Globe and Mail relates. "A fair CCAA process with Target must include a fair claim process with non-Target creditors first," Dan Dimovski, a former Target pharmacy partner and president of the Pharmacy Franchisee Association of Canada, said in a letter to its members earlier this month, adds the Globe and Mail. About Target Canada On Jan. 15, 2015, Target Canada Co. and certain entities commenced court-supervised restructuring proceedings under the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended. On the same day, the Ontario Superior Court of Justice (Commercial List) granted an order, which, among other things, provides for a stay of proceedings until February 13, 2015. The Stay Period may be extended by the Court from time to time. Although not Applicants, the protections and authorizations provided for in the Initial Order have been extended to the Partnerships. Pursuant to the Initial Order, Alvarez & Marsal Canada Inc. was appointed as monitor of the business and financial affairs of the Target Canada Entities. The Ontario Court has appointed Alvarez & Marsal Canada Inc. as monitor in Target Canada et al.'s Companies' Creditors Arrangement Act proceeding, and Koskie Minsky LLP as representative counsel of all Target employees in the proceedings. TECH LINK: Receiver Puts 0.5-Hectare Property on Sale ----------------------------------------------------- The Chronicle Herald reports that Tech Link International Entertainment Ltd.'s 0.5-hectare land and building on Kings Road in Sydney River, Nova Scotia, has been put on sale. The Chronicle Herald relates that the deadline for bids is Sept. 30. The sale is being supervised by PricewaterhouseCoopers Inc.'s Sydney office, as receiver. Tech Link International Entertainment Ltd. is a custom computer programming service company in Sydney, Nova Scotia. It is a public company founded in 1998. The Company was forced into receivership in the Summer of 2015. BDO Sydney took possession of other Tech Link assets, including equipment, machinery and intellectual property. Secured creditor Business Development Bank of Canada appointed PricewaterhouseCoopers Inc. as receiver for the Company, while Nova Scotia Business Inc. appointed a separate receiver. UFS HOLDINGS: S&P Assigns 'B' Corp. Credit Rating, Outlook Stable ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to UFS Holdings Inc. The outlook is stable. At the same time, based on preliminary terms and conditions, S&P assigned a 'B+' issue-level rating (one notch above the corporate credit rating) and a recovery rating of '2' to UFS Holdings' proposed $200 million first-lien secured credit facilities, consisting of a $35 million revolving credit facility and $165 million first-lien term loan. The '2' recovery rating indicates S&P's expectation of substantial (lower half of the 70% to 90% range) recovery in the event of a default. S&P also assigned a 'CCC+' issue-level rating (two notches below the corporate credit rating) and a '6' recovery rating to the proposed $40 million second-lien term loan. The '6' recovery rating indicates S&P's expectation for negligible (0% to 10%) recovery in the event of a default. The debt is being issued by Universal Fiber Systems LLC on behalf of UFS Holdings. "The stable outlook for UFS Holdings Inc. reflects our view that margins will improve in 2015 over their 2014 levels due to certain cost-saving initiatives, and remain stable thereafter, because the company has a leading position in the niche markets in which it operates," said Standard & Poor's credit analyst Brian Garcia. The ratings on UFS Holdings Inc. reflect S&P's assessments of the company's "weak" business risk and "highly leveraged" financial risk profiles. UFS Holdings maintains leading market shares in highly fragmented markets with weak pricing power. S&P expects the company to maintain EBITDA margins at slightly higher levels than 2014, due to certain cost-saving initiatives. Although S&P expects margins to improve from last year, it expects margins to be stable going forward, and, as a result, S&P expects debt (funds from operation [FFO]/debt) to remain near 10% over the next year. We classify UFS Holdings' liquidity as "adequate." S&P could lower the ratings if the company's performance deteriorates as a result of increased raw material costs or decreased end-market demand, causing leverage measures to weaken. In addition, S&P could also lower the ratings if the company were to make large debt-funded acquisitions or shareholder rewards. Based on S&P's downside scenario, its trigger points are FFO to total adjusted debt falling below 5% and total adjusted debt to EBITDA increasing above 6x, without prospects for improvement over the next 12 months. S&P could raise the ratings if the company reduced debt levels, such that the FFO to total adjusted debt ratio exceeded 15% on a sustainable basis. To consider a higher rating, S&P would also have to be convinced that ownership is committed to maintaining leverage at these levels by maintaining a prudent approach to balancing debt reduction, growth investment, and returning capital to shareholders. UNIVERSAL FIBER: Moody's Assigns First Time 'B2' CFR ---------------------------------------------------- Moody's Investors Service assigned first-time ratings to Universal Fiber Systems, LLC, including a B2 Corporate Family Rating ("CFR"), B1 first lien senior secured ratings, and Caa1 second lien senior secured rating. Universal will be acquired by H.I.G. Capital from Sterling Group. Proceeds from $240 million of new secured debt will help fund private equity firm H.I.G. Capital's acquisition of Universal from Sterling Group for $275 million plus transaction-related fees and expenses. The rating outlook is stable. "Moderate leverage and solid expected cash flow generation relative to similarly-rated peers helps offset some notable concentrations in Universal's business model," said Ben Nelson, Moody's Vice President and lead analyst for Universal Fiber Systems LLC. Issuer: Universal Fiber Systems, LLC Corporate Family Rating, Assigned B2; Probability of Default Rating, Assigned B2-PD; $35 million Senior Secured Revolving Credit Facility, Assigned B1 (LGD3); $165 million Senior Secured First Lien Term Loan, Assigned B1 (LGD3); $40 million Senior Secured Second Lien Term Loan, Assigned Caa1 (LGD5); Outlook, Assigned Stable RATINGS RATIONALE The B2 Corporate Family Rating ("CFR") reflects a leveraged balance sheet, small size and scale, operational, supplier, and customer concentration, modest organic growth prospects, and longer-term risk associated with private equity ownership. Moody's estimates adjusted financial leverage in the high 4 times (Debt/EBITDA) and interest coverage near 3 times (EBITDA/Interest) on a pro forma basis for the twelve months ended June 30, 2015. The rating assumes that the company will generate at least $10 million of annual free cash flow starting in 2016. Good market positions help support profitability. Product, polymer, and end market diversity should also help the company maintain more stable financial performance over time compared to many rated peers in the chemical industry. The company is also expected to maintain good liquidity. The stable outlook assumes that the company will maintain leverage below 5 times, retained cash flow of at least 10% (RCF/Debt), and a good liquidity position. Moody's could upgrade the rating with expectations for leverage sustained below 4 times and retained cash flow sustained near 15%. An upgrade would require an increase in size and scale and a commitment to more conservative financial policies. Moody's could downgrade the rating with expectations for leverage sustained above 6 times, retained cash flow below 5% of debt, sustained negative free cash flow generation, or a material reduction in margins. An adverse operational event, loss of a major customer, adverse change in supplier relationships, or deterioration in liquidity could also have negative rating implications. Universal Fiber Systems is a manufacturer of solution-dyed and natural synthetic fibers that are supplied primarily to the commercial carpet, automotive, specialty apparel, and industrial markets. The company operations are located in Tennessee, Virginia, North Carolina, Thailand China, and the United Kingdom. The company generated revenues of $264 million for the twelve months ended June 30, 2015. VANTAGE DRILLING: Receives NYSE Share Delisting Notice ------------------------------------------------------ Vantage Drilling Company on Sep. 15 disclosed that it received a notice dated September 14, 2015 that the staff of NYSE Regulation, Inc. has determined to suspend trading immediately and commence proceedings to delist Vantage's ordinary shares from NYSE MKT LLC. NYSE Regulation notified the Company that it is no longer suitable for listing pursuant to Section 1003(f)(v) of the NYSE MKT Company Guide, due to the "abnormally low" trading price of its ordinary shares. The Notice further indicates that Vantage has a right to a review of this determination by a NYSE MKT Listing Qualifications Panel. The NYSE MKT will apply to the Securities and Exchange Commission to delist Vantage's ordinary shares upon completion of all applicable procedures, including any appeal by Vantage of the NYSE Regulation staff's decision. Vantage will consider all of its options, including its option to appeal, in responding to the Notice. In the meantime, Vantage's ordinary shares will trade on the over the counter markets under the trading symbol VTGDF. Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer, and four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies. VIRGIN ISLANDS: Retirement System Seeks $600MM Aid to Stay Solvent ------------------------------------------------------------------ The Virgin Islands Consortium reports that the Government Employees' Retirement System (GERS) must see an infusion of cash of $600 million if it is to remain solvent, officials testifying at a Committee of the Whole hearing at the Earl B. Ottley Legislative Hall on September 2 told senators. It also needs contributors' monthly payments to be higher as part of a plan to save the system, the report says. To survive at its current rate, the system would need a 15% rate of return every year "for the foreseeable future to just maintain its current status," said Leandro Festino, managing principal of Meketa Investment Group, the report relays. An amount that is impossible to achieve at a time when wages in the territory remain stagnant with an economy that is struggling to come out of recession, The Virgin Islands Consortium relates. According to the report, the system's current problems were longtime in the making, too, and were only exacerbated during the 2008 recession and HOVENSA's closure in 2012, coupled with government contraction over the years. And the $600 million that GERS is requesting, to be paid fully by the Government of the Virgin Islands, would only push the problem down the road some 30 years, but at least it buys the system more time to allow new contributors' benefits to kick in with changes already made to the system, while longtime members would have already been out as a result of mortality, the report states. The Virgin Islands Consortium notes that in the year 2025, GERS will have no money in the bank if the Senate fails to take action; so the funds that will be available to pay benefits will be what comes in from the employer and employee, meaning contributions coming in will be immediately paid out. At that point, beneficiaries will only receive 45% of what they're currently receiving, the report discloses. For example, "a person getting $1,000 a month in a pension now, will only be able to get $450. And that's what we're looking at if we don't have some major changes done to the system," the report quotes Leon 'Rocky' Joyner of Segal Consulting as saying. So GERS is supporting a measure that it helped create, sponsored by Senator Neville James, which includes actions aimed at saving the system, the report says. The Virgin Islands Consortium relates that the bill, if enacted, would do away with the cap placed on employee contributions. It would also change the law by making high-earning government employees pay full pension contributions on every dollar earned. The measure also intends to raise retirement ages for some GERS members while adding other types of employees to join immediately as compared to waiting. According to the Virgin Islands Consortium, the law also changes benefits for Tier 2 government employees from a final average salary form of payment to a career average salary form of payment. The change protects GERS from rapid inflation late in a person's career and also expands contributions from less than $65,000 to all salary, and adds a benefit for contributions for above $65,000 that is 1 percent on every dollar earned above that level. GERS officials said such a setup would see employees earning $100,000 making payments of $350 upon their current annual payment into the system, according to the report. But the senate must act fast as an October 1 deadline is looming, the date when Tier 2 government employees become completely secured into GERS. If changed after the aforementioned date, system members unhappy with the new law could sue, adds the Virgin Islands Consortium. WALLDESIGN INC: Centex Seeks to Prosecute Indemnity Actions ----------------------------------------------------------- Centex Homes asks the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division, to lift the automatic stay imposed in the Chapter 11 case of Walldesign Inc. to allow it to prosecute the non-bankruptcy actions docketed as Wyss v. Centex Homes and Acker v. Centex Homes, with docket numbers: S-1500-CV282168 and MCC 1400817, pending in Kern County Superior Court and Riverside County Superior Court, respectively. Richard R. Sooy, Esq., at Sooy & Schlichting, in San Diego, California, tells the Court that the causes of action or claims for relief in the non-bankruptcy actions include: (a) express indemnity; (b) implied contractual indemnity; (c) equitable indemnity; (d) breach of written contract; (e) breach of written contract to defend; (f) breach of express and implied warranties; (g) negligence; (h) contribution and apportionment; and (i) declaratory relief. Mr. Sooy tells the Court that Centex seeks recovery only from applicable insurance, if any, and waives any deficiency or other claim against the Debtor or property of the Debtor's bankruptcy estate. He further tells the Court that the actions were taken before Centex knew that the bankruptcy case had been filed, and Centex would have been entitled to relief from stay to proceed with its nonbankruptcy actions. Centex Homes is represented by: Richard R. Sooy, Esq. SOOY & SCHLICHTING 550 West C Street, Suite 1650 San Diego, CA 92101 Telephone: (619)702-8800 Facsimile: (619)702-8806 Email: rsooy@sooylaw.com About Walldesign, Inc. Walldesign Inc., incorporated in 1983, installs drywall, insulation, plaster and provides related services to single and multi-family construction projects throughout California, Nevada and Arizona. Walldesign, based in Newport Beach, California, said the global credit crisis that occurred in the third quarter of 2008 had a severe negative impact on its business: capital for construction projects dried up, buyers vacated the market for new homes and profit margins on new jobs eroded. Cash flow problems slowed payments to vendors, precipitating collection lawsuits forcing it to seek Chapter 11 protection (Bankr. C.D. Cal. Case No. 12-10105) on Jan. 4, 2012. The Debtor estimated $10 million to $50 million in assets and debt. Marc J. Winthrop, Esq., Sean A. O'Keefe, Esq., and Jeannie Kim, Esq., at Winthrop Couchot, serve as the Debtor's counsel. Brian Weiss of BSW & Associates serve as the Debtor's chief restructuring officer. The official committee of unsecured creditors tapped Jones Day as its counsel. The Court confirmed the plan of liquidation of Walldesign on July 30, 2014. The liquidation plan was jointly proposed by the company and the unsecured creditors' committee. The plan calls for the liquidation of Walldesign's assets and payments to holders of administrative claims and other creditors entitled to distributions of all cash on hand well as net proceeds realized from the litigation of claims held by the estate and liquidation of other assets. Walldesign, Inc., and the Unsecured Creditors' Committee notified the Bankruptcy Court that the Effective Date of the Plan of Liquidation is established as Jan. 2, 2015. WALLDESIGN INC: Centex Seeks to Prosecute Products Liability Action ------------------------------------------------------------------- Centex Homes asks the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division, to lift the automatic stay imposed in the Chapter 11 case of Walldesign Inc. to allow it to continue prosecuting the non-bankruptcy action, docketed as Cuervo v. Centex Homes, with docket number: RIC1504129, in Riverside County. J. Nathan Owens, Esq., at Newmeyer & Dillion LLP, in Newport Beach, California, relates that Centex is a defendant and cross-claimant in the nonbankruptcy action. Mr. Owens further relates that the causes of action or claims for relief include: (a) strict products liability; (b) breach of implied warranty; (c) breach of contract; (d) negligence; (e) breach of express warranty; and (f) violation of statute. Mr. Owens tells the Court that Centex seeks recovery only from applicable insurance, if any, and waives any deficiency or other claim against the Debtor or property of the Debtor's bankruptcy estate. He further tells the Court that the claims arise under nonbankruptcy law and can be most expeditiously resolved in the nonbankruptcy forum. Centex Homes is represented by: J. Nathan Owens, Esq. NEWMEYER & DILLION LLP 895 Dove Street, Suite 500 Newport Beach, CA 92660 Telephone: (949)854-7000 Facsimile: (949)854-7099 Email: nathan.owens@ndlf.com About Walldesign, Inc. Walldesign Inc., incorporated in 1983, installs drywall, insulation, plaster and provides related services to single and multi-family construction projects throughout California, Nevada and Arizona. Walldesign, based in Newport Beach, California, said the global credit crisis that occurred in the third quarter of 2008 had a severe negative impact on its business: capital for construction projects dried up, buyers vacated the market for new homes and profit margins on new jobs eroded. Cash flow problems slowed payments to vendors, precipitating collection lawsuits forcing it to seek Chapter 11 protection (Bankr. C.D. Cal. Case No. 12-10105) on Jan. 4, 2012. The Debtor estimated $10 million to $50 million in assets and debt. Marc J. Winthrop, Esq., Sean A. O'Keefe, Esq., and Jeannie Kim, Esq., at Winthrop Couchot, serve as the Debtor's counsel. Brian Weiss of BSW & Associates serve as the Debtor's chief restructuring officer. The official committee of unsecured creditors tapped Jones Day as its counsel. The Court confirmed the plan of liquidation of Walldesign on July 30, 2014. The liquidation plan was jointly proposed by the company and the unsecured creditors' committee. The plan calls for the liquidation of Walldesign's assets and payments to holders of administrative claims and other creditors entitled to distributions of all cash on hand well as net proceeds realized from the litigation of claims held by the estate and liquidation of other assets. Walldesign, Inc., and the Unsecured Creditors' Committee notified the Bankruptcy Court that the Effective Date of the Plan of Liquidation is established as Jan. 2, 2015. WELLSVILLE FOUNDRY: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: The Wellsville Foundry, Inc P.O. Box 424 18150 Fife Coal Road Wellsville, OH 43968 Case No.: 15-41687 Chapter 11 Petition Date: September 15, 2015 Court: United States Bankruptcy Court Northern District of Ohio (Youngstown) Judge: Hon. Kay Woods Debtor's Counsel: Guy C. Fustine, Esq. KNOX MCLAUGHLIN GORNALL & SENNETT, P.C. 120 W 10th Street Erie, PA 16501 Tel: (814) 459-2800 Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by C.H. Gilmore, president. A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/ohnb15-41687.pdf [*] Alabama Bankruptcy Judge Thomas Bennett Joins Bailey Glasser ---------------------------------------------------------------- Thomas Bennett, the judge who oversaw the $4.1 billion bankruptcy of Jefferson County, Alabama, joined Bailey Glasser LLP as a partner in August and will work out of the Washington, D.C. office, according to a firm press release. Tom was appointed a U.S. Bankruptcy Judge for the Northern District of Alabama in June 1995 and Chief U.S. Bankruptcy Judge in January 2011. During his tenure, he presided over the Jefferson County, Alabama bankruptcy, the largest municipal bankruptcy ever filed, at the time, and second today only to Detroit's bankruptcy case. In 2013, he was inducted as a Fellow in the American College of Bankruptcy, for his professional excellence and exceptional contributions to the fields of bankruptcy and insolvency. According to Katy Stech, writing for The Wall Street Journal, before becoming a judge in 1995, Mr. Bennett said he had a reputation for taking the "nasty cases" in the energy sector and other industries that no one else wanted to touch. He worked as a clerk for Judge John R. Brown of the U.S. Court of Appeals for the Fifth Circuit, who ruled on civil rights issues, and also as a partner at the law firm now known as Bowles Rice, the Journal related. Mr. Bennett may be reached at: Thomas B. Bennett, Esq. BAILEY & GLASSER LLP 1054 31st Street, NW Suite 230 Washington, DC 20007 Tel: (202) 463-2101 Fax: (202) 463-2103 Email: tbennett@baileyglasser.com [*] Judge Thomas Ambro to Receive American Inns of Court Award -------------------------------------------------------------- Judge Thomas L. Ambro has been selected to receive the prestigious A. Sherman Christensen Award by the American Inns of Court. The award will be presented at the 2015 American Inns of Court Celebration of Excellence at the Supreme Court of the United States in October; the event will be hosted by Associate Justice Elena Kagan. Ambro is a judge on the U.S. Court of Appeals for the Third Circuit. He was nominated by President William Jefferson Clinton in September 1999. Prior to taking the bench, he was in private practice in Wilmington, Delaware, from 1976 to 2000. He served as law clerk to Chief Justice Daniel L. Herrmann of the Delaware Supreme Court from 1975 to 1976. Long active in the American Inns of Court movement, Judge Ambro is a member and past president of the Richard S. Rodney American Inn of Court and an organizing member and former co-chair of the Delaware Bankruptcy American Inn of Court. He served on the American Inns of Court Board of Trustees for two terms, and has also served on the strategic planning and awards committees, the Leadership Council, and the Temple Bar Scholarships Committee. Judge Ambro is an active volunteer in the American Inns of Court Judicial Assistants Exchange Program. A magna cum laude graduate of Georgetown University, Judge Ambro worked on the staff of U.S. Senator William V. Roth, Jr. He was the first Delaware attorney to be inducted as a Fellow of the American College of Commercial Finance Lawyers. He is a member of the American Bar Association, the Delaware State Bar Association, the Board of Editors of Delaware Lawyer magazine, the American Law Institute, the National Bankruptcy Conference, and the American Bankruptcy Institute. He is an adjunct assistant professor at Georgetown University where he helped to establish a scholarship to assist students whose financial need increases after their first year. The A. Sherman Christensen Award is bestowed upon a member of an American Inn of Court who, at the local, state, or national level, has provided distinguished, exceptional, and significant leadership to the American Inns of Court movement. The award is named for the founder of the first American Inn of Court, and is funded by an endowment established by LexisNexis. Headquartered in Alexandria, Virginia, The American Inns of Court -- http://www.innsofcourt.org-- fosters excellence in professionalism, ethics, civility, and legal skills. The organization's membership includes more than 30,000 federal, state, and local judges; lawyers; law professors; and law students in more than 380 chapters nationwide and more than 100,000 alumni members. [^] Recent Small-Dollar & Individual Chapter 11 Filings ------------------------------------------------------- In re Lilian Morris Bankr. N.D. Cal. Case No. 15-42732 Chapter 11 Petition filed September 3, 2015 In re Lewis Health Institute, Inc. Bankr. S.D. Fla. Case No. 15-25980 Chapter 11 Petition filed September 3, 2015 See http://bankrupt.com/misc/flsb15-25980.pdf represented by: Craig I Kelley, Esq. KELLEY & FULTON, PL E-mail: craig@kelleylawoffice.com In re Bottle Bar Resturants LLC Bankr. N.D. Ga. Case No. 15-67095 Chapter 11 Petition filed September 3, 2015 See http://bankrupt.com/misc/ganb15-67095.pdf represented by: Leonard R. Medley III, Esq. MEDLEY & ASSOCIATES, LLC E-mail: leonard@mkalaw.com In re The Original Jerry's, LLC Bankr. D. Md. Case No. 15-22332 Chapter 11 Petition filed September 3, 2015 See http://bankrupt.com/misc/mdb15-22332.pdf represented by: Augustus T Curtis, Esq. COHEN, BALDINGER & GREENFELD, LLC E-mail: augie.curtis@cohenbaldinger.com In re Jose Antonio Guzman Bankr. D. Nev. Case No. 15-15105 Chapter 11 Petition filed September 3, 2015 In re Michael Omsted Smith and Cynthia Pittman Smith Bankr. W.D.N.C. Case No. 15-31390 Chapter 11 Petition filed September 3, 2015 In re Manfred Philip Marotta and Lynne Kane Marotta Bankr. E.D. Pa. Case No. 15-16364 Chapter 11 Petition filed September 3, 2015 In re Thomas J. Goldstein, OD, PA dba Pearle Bankr. W.D. Tex. Case No. 15-52167 Chapter 11 Petition filed September 3, 2015 See http://bankrupt.com/misc/txwb15-52167.pdf represented by: James Samuel Wilkins, Esq. WILLIS & WILKINS, LLP E-mail: jwilkins@stic.net In re Diana Lynn Tellez Bankr. E.D. Va. Case No. 15-13085 Chapter 11 Petition filed September 3, 2015 In re Caroline C Mendoza Bankr. C.D. Cal. Case No. 15-18846 Chapter 11 Petition filed September 4, 2015 In re DCI Properties, LLC Bankr. N.D. Cal. Case No. 15-52872 Chapter 11 Petition filed September 4, 2015 See http://bankrupt.com/misc/canb15-52872.pdf filed Pro Se In re Sebrenia Chambers Bankr. M.D. Fla. Case No. 15-04013 Chapter 11 Petition filed September 4, 2015 In re Georgia Prep Sports Academy, Inc. Bankr. N.D. Ga. Case No. 15-67139 Chapter 11 Petition filed September 4, 2015 See http://bankrupt.com/misc/ganb15-67139.pdf represented by: Kenneth Mitchell, Esq. GIDDENS, MITCHELL & ASSOCIATES, P.C. E-mail: gmapclaw1@gmail.com In re Andzelika Jastrzebska Bankr. N.D. Ill. Case No. 15-30418 Chapter 11 Petition filed September 4, 2015 In re SD Concrete, Inc. Bankr. D.N.J.. Case No. 15-26817 Chapter 11 Petition filed September 4, 2015 See http://bankrupt.com/misc/njb15-26817.pdf represented by: Christopher Roy Higgins, Esq. LAW OFFICE OF CHRISTOPHER R. HIGGINS E-mail: christopher@higginslawnj.com In re Dennis W. McGuirre Bankr. D.N.J. Case No. 15-26868 Chapter 11 Petition filed September 4, 2015 In re Rafael Augusto Selosse Ramirez and Carmen Migdalia Rivera Nazario Bankr. D.P.R. Case No. 15-06888 Chapter 11 Petition filed September 4, 2015 In re JLB Electrical Services, Inc. Bankr. D.P.R. Case No. 15-06892 Chapter 11 Petition filed September 4, 2015 See http://bankrupt.com/misc/prb15-06892.pdf represented by: Wanda I. Luna Martinez, Esq. LUNA LAW OFFICES E-mail: quiebra@gmail.com In re Mountain River Guides, Inc. Bankr. E.D. Tenn. Case No. 15-51384 Chapter 11 Petition filed September 4, 2015 See http://bankrupt.com/misc/tneb15-51384.pdf represented by: Mark S. Dessauer, Esq. HUNTER, SMITH & DAVIS E-mail: dessauer@hsdlaw.com In re Rushing Rivers, LLC Bankr. E.D. Tenn. Case No. 15-51387 Chapter 11 Petition filed September 4, 2015 See http://bankrupt.com/misc/tneb15-51387.pdf represented by: Mark S. Dessauer, Esq. HUNTER, SMITH & DAVIS E-mail: dessauer@hsdlaw.com In re A-1 Feed & Supply, Inc. Bankr. N.D. Tex. Case No. 15-33680 Chapter 11 Petition filed September 4, 2015 See http://bankrupt.com/misc/txnb15-33680.pdf represented by: Eric A. Liepins, Esq. ERIC A. LIEPINS, P.C. E-mail: eric@ealpc.com In re Livestock Supply, Inc. Bankr. N.D. Tex. Case No. 15-33681 Chapter 11 Petition filed September 4, 2015 See http://bankrupt.com/misc/txnb15-33681.pdf represented by: Eric A. Liepins, Esq. ERIC A. LIEPINS, P.C. E-mail: eric@ealpc.com In re Russell Lebkuecher Bankr. E.D. Pa. Case No. 15-16400 Chapter 11 Petition filed September 5, 2015 In re American Meat Company, Inc. Bankr. D. Ariz. Case No. 15-11445 Chapter 11 Petition filed September 8, 2015 See http://bankrupt.com/misc/azb15-11445.pdf represented by: Alan R. Solot, Esq. E-mail: arsolot@gmail.com In re George Wesley Teats, Jr. and Ofelia R Teats Bankr. C.D. Cal. Case No. 15-14394 Chapter 11 Petition filed September 8, 2015 represented by: Michael Jones, Esq. M JONES & ASSOICATES, PC E-mail: mike@mjthelawyer.com In re PSK Realty, LLC Bankr. D. Conn. Case No. 15-21593 Chapter 11 Petition filed September 8, 2015 See http://bankrupt.com/misc/ctb15-21593.pdf represented by: Timothy D. Miltenberger, Esq. COAN LEWENDON GULLIVER & MILTENBERGER E-mail: tmiltenberger@coanlewendon.com In re Humberto Bethencourt Bankr. S.D. Fla. Case No. 15-26161 Chapter 11 Petition filed September 8, 2015 In re Elite Imaging LLC Bankr. D. Haw. Case No. 15-01093 Chapter 11 Petition filed September 8, 2015 See http://bankrupt.com/misc/hib15-01093.pdf represented by: Sheri J. Tanaka, Esq. LAW OFFICE OF SHERI J. TANAKA E-mail: sheri.tanaka@gmail.com In re Daddy Real Entertainment, Inc. Bankr. S.D. Ind. Case No. 15-07599 Chapter 11 Petition filed September 8, 2015 See http://bankrupt.com/misc/insb15-07599.pdf represented by: Eric C Redman, Esq. REDMAN LUDWIG PC E-mail: ksmith@redmanludwig.com In re Si Hyung Cho and Sang Eun Lee Bankr. D. Md. Case No. 15-22452 Chapter 11 Petition filed September 8, 2015 In re The Metuchen Car Wash, LLC Bankr. D.N.J. Case No. 15-26946 Chapter 11 Petition filed September 8, 2015 See http://bankrupt.com/misc/njb15-26946.pdf represented by: Robert C. Nisenson, Esq. ROBERT C. NISENSON, LLC E-mail: rnisenson@aol.com In re Hitchcock Restaurant Group LLC Bankr. S.D.N.Y. Case No. 15-12498 Chapter 11 Petition filed September 8, 2015 filed Pro Se In re Francisco J Baez Rivera and Marta M Rodriguez Hernandez Bankr. D.P.R. Case No. 15-06943 Chapter 11 Petition filed September 8, 2015 In re Andrew Corbman and Bonnie Corbman Bankr. E.D. Va. Case No. 15-13119 Chapter 11 Petition filed September 8, 2015 In re Francisco O Lopez Bankr. C.D. Cal. Case No. 15-24071 Chapter 11 Petition filed September 9, 2015 In re Suzanne Marie Taylor Bankr. N.D. Cal. Case No. 15-52905 Chapter 11 Petition filed September 9, 2015 In re Carousel of Rockledge, Inc. Bankr. M.D. Fla. Case No. 15-07715 Chapter 11 Petition filed September 9, 2015 See http://bankrupt.com/misc/flmb15-07715.pdf represented by: Jeffrey Ainsworth, Esq. BRANSONLAW PLLC E-mail: jeff@bransonlaw.com In re Carousel Properties, Inc. Bankr. M.D. Fla. Case No. 15-07716 Chapter 11 Petition filed September 9, 2015 See http://bankrupt.com/misc/flmb15-07716.pdf represented by: Jeffrey Ainsworth, Esq. BRANSONLAW PLLC E-mail: jeff@bransonlaw.com In re Commercial Associates LLC Bankr. D. Md. Case No. 15-22546 Chapter 11 Petition filed September 9, 2015 See http://bankrupt.com/misc/mdb15-22546.pdf represented by: Tate Russack, Esq. RUSSACK ASSOCIATES, LLC E-mail: tate@russacklaw.com In re Wilson Reynolds, Jr. Bankr. D. Md. Case No. 15-22558 Chapter 11 Petition filed September 9, 2015 In re Constante F. Sosa and Jocyline Sosa Bankr. D.N.J. Case No. 15-27064 Chapter 11 Petition filed September 9, 2015 In re Elizabeth's Pizza Oak Ridge LLC Bankr. M.D.N.C. Case No. 15-10974 Chapter 11 Petition filed September 9, 2015 See http://bankrupt.com/misc/ncmb15-10974.pdf represented by: Joshua H. Bennett, Esq. BENNETT & GUTHRIE, PLLC Email: jbennett@bennett-guthrie.com In re MJA Properties, LLC Bankr. W.D. Pa. Case No. 15-70627 Chapter 11 Petition filed September 9, 2015 See http://bankrupt.com/misc/pawb15-70627.pdf represented by: Terry L. Graffius, Esq. LEVENTRY & HASCHAK, LLC E-mail: tgraffius@lhrklaw.com In re David B. Hooper Bankr. D. Wyo. Case No. 15-20620 Chapter 11 Petition filed September 9, 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 e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***